Performance

management in AIESEC NZ

A guide to maintain high member performance throughout the year.

Index

1. Introduction 2. Performance Management (PM) 3. Why should we manage performance? 4. Key Performance Indicators (KPIs) 5. Performance problem 6. Performance improvement 7. PM in AIESEC 8. Potential issues 9. Conclusion 10. Want to know more?

Introduction

This booklet delivers some theory of performance management and some specific suggestions to how this can be done in your entity. The booklet is a guide to start doing performance management and it is built around the process that was discussed at JulyCo 2013 in the TM functional time. As it is a guide it is a general framework on how to manage your members’ performance and as with any other process it might need customization to fit the needs of your entity. The foundation of the booklet is theory about KPIs, performance mangement and performance problems, thus providing a real life perspective on the things we try to do in AIESEC. The booklet is structured in this way: If you at any point of time need support, help or want to bounce ideas I am more than willing to do so. Have fun reading. Performance management might sound dull, but it is essential to reaching our goals. MCVPTM – Simon Thomsen

Information Framework

Why is this relevant

to me?

”By establishing a strong positive culture, TM will drive performance in order to facilitate development for the leaders of tomorrow”

The statement above is the national TM vision for the 13|14 term created by the LCVPTMs. Performance management is a really good tool to create a strong culture in the entities and manage and therefore drive the performance. As TM reponsible in your entity your are responsible for the overall development of each member in the entity. The way we develop in AIESEC is through our work and it is essential to have targets for the goals if you want to strive for excellence.

Performance

management (PM)

PM is a term that covers the activities of ensuring effective and effecient work. With a focus on PM we can make sure that A) The organisational goals are met and B) we can adjust the expectations to the reality of our members. In a few words, we can define PM as the way we align goals and members to the organisational goals. If done properly PM ensures high performance of our members through management from the EB. It is not only TM’s job to manage performance (each VP and TL should track their members), but we are responsible for the overall development of our members, which PM enhances. ”Many businesses, even those with well-made plans, fail to implement their strategy. Their problem lies in ineffectively managing their employees once their plan is in place” (Erica Olsen). We talk a lot about the importance of planning, but we need to make sure our plans are being followed throughout the entire term. Focusing on the individual performance of our members we can make sure our plans are being followed in the right manner.

Why should we manage

performance? • Define goals for member and leader

• Make sure everyone in the organisation know what is expected from them

• Track progress of organisation and people • We want our organisation to grow and we need to know how

it is growing • Evaluate performance

• Evaluate and analyse performance to see what works and what doesn’t

• ”Manage” performance • If performance is low, improve it!

• Reward and recogniton • The people who are doing well should be recognized for their

work • Ensure members are doing what they are suppose to

• Ensuring focus from members delivers results

Key Performance

Indicators (KPIs) To make sure we meet our organisational goals we need to measure our performance throughout an entire term. But how do we do that?

KPI vs MoS The organisational goal, or a goal for a specific functional area, is a Measure of Success (MoS), which we should strive for during out entire term. To measure whether or not we are reaching that goal we track KPIs throughout. If the goal for ICX is to realise 5 TNs, we need to track the entire process. KPIs for this team could be: - # of call outs - # of meetings - % Conversion rate from Raised to Matched/Realised

We can have KPIs for teams but also for individuals. Basically this means that we describe and track how the individual is supporting the overall goal of the team. When setting up KPIs for individuals or teams, make sure that they are always quantifiable. This way the process of tracking the performance is easy.

Performance problem A performance problem occurs when the member is not performing to the standards that were set for and by the member itself. We define a performance problem as a gap between the actual results and the desired results. As TM responsible you need to figure out how big the problem is and what is the root of the problem, as a lot of factors Having a focus on performance problems for individuals is beneficial because; - The individual performance problem is connected to the

performance of the team and thereby the LC - The individual performance problem is obstructing the ideal

learning experience for the member

A performance problem can occur because of lot of things, and this is why we need to analyse the problem. A performance problem can occur because of: - Working environment - Leadership - Wrong expetations - Attitude - Skills

Performance

improvement After defining whether a performance problem exists and what the reason for the problem is, we need to look into how to solve the problem, more specifically how to imporve the performance. How do we close the gap between the actual results and the desired results? There are a couple of solutions to closing the gap:

Personal change If the problem only exists for on member (and not an entire team or generally in the LC) we need to look at the things that are specifically for this member (you have to include the VP in this) - Right functional area - Role in the team - Expectations to the experience - Personal KPIs

Organisational change If the problem exists for a lot of members or if it is a general trend in the LC we need to look at what organisational changes can be made (the entire EB needs to be involved): - Leadership - Structural change in the LC

PM in AIESEC NZ

Lc vision

LC goals

Functional goals

Team goals

KPIs

Actions

Make sure you remember the ”Pyramid” when dealing with PM in AIESEC. How are the actions connected to the KPIs, and how are the KPIs connected to the goals of the team etc.

PM is a 6 months process in AIESEC NZ, which starts from the day the member is assigned to its role on myaiesec.net and the goalsetting has been done.

Potential issues • Numbers game

• Focusing on the numerical KPIs is the easiest way of doing PM, but it is not the most effective way. Performance in AIESEC is more than just deciding if a member is performing according to the numbers set. Make sure you have a focus on the development and potential of the member.

• Following a guide/focus on process rather than conversation • Having too much focus on the process of doing PM can

potentially lead to a very static conversation when doing evaluation/appraisal and reviews.

• Negative • Too much focus on ”you didn’t reach your target” instead of

”how can we improve your curent performance” makes PM look very negative in the eyes of the member.

• Responsibility • When doing individual PM it is very easy to put all responsibility

on the individual. There are however a lot of factors that needs to be taken into consideration (e.g. team members and leaders), because a member experience in AIESEC is also a team experience.

Conclusion It takes practice. It takes planning. It takes time. But. The results of doing PM will be visible and they will be tangible. This booklet provides you with some tips and tricks on how to do PM, but ultimately it is up to you to customize it to your LC’s reality. Before starting doing PM you need to: - Define JDs for everyone - Set goals with everyone - Assign roles to everyone on myaiesec.net I, Simon, will be more than happy to assist you in this process. Doing PM will remove the random factor of what we are doing. Stop being the random cat in the dryer.

Want to read more?

https://www.hr.cornell.edu/life/career/performance_management.html http://humanresources.about.com/od/glossaryp/g/perform_mgmt.htm http://www.indiana.edu/~uhrs/training/performance_management/intro.htm http://www.peoplesmart.co.nz/UserFiles/DairyNZPeopleSmart/File/Managing%20people/FS%20Performance%20management.pdf http://www.mindtools.com/pages/article/newTMM_87.htm http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-management