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Performance Management Workshop

NC Department of Environment and Natural Resources2007

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Introductions

• Name, years with State government

• Division, position

• Number supervised, type of work supervised

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Workshop Objectives

Increase your skill and confidence in:

Setting work goals (KRRs) with your employees

Managing your employees’ performance ongoing

Developing your employees

Preparing and conducting performance appraisals

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Why Do We Do Performance Management?

1. Meet legal requirements

2. Clarify expectations

3. Give feedback

4. Promote development

5. Produce results

6. It’s Management 101

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Where Does Your PM Policy Come From?

State Law State Law (GS 126-7)(GS 126-7)State Law State Law (GS 126-7)(GS 126-7)

State State Personnel Personnel Policies Policies (OSP)(OSP)

State State Personnel Personnel Policies Policies (OSP)(OSP)

Your Agency’s Your Agency’s Personnel Personnel PoliciesPolicies

Your Agency’s Your Agency’s Personnel Personnel PoliciesPolicies

• Further outstanding performance

• Distribute awards fairly

• 5 levels of performance

Administrative Administrative Code Code

Subchapter OSubchapter O

Administrative Administrative Code Code

Subchapter OSubchapter O

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Requirements for PM System

1. Each agency has an operative performance management system approved by OSP

2. System enables employees to:

a. Have clear performance expectations

b. Receive ongoing feedback

c. Have opportunities for training and development

d. Be rewarded fairly and equitably

3. Process is sequential and has 3 parts:

a. Planning

b. Managing

c. Appraising

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Requirements for PM System, cont.

4. Elements of an operative system:

a. A 3-part process

b. Policy tailored to needs of agency

c. NC rating scale – 5-levels as required by GS 126-7

d. Performance appraisal summary

e. Development or performance improvement plan

f. Training / information programs to enable supervisors to administer system fairly and consistently and employees to participate in process

g. Procedures to resolve disputes about performance pay or appraisal ratings

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Requirements for PM System, cont.

5. Performance management integrates with other systems – appraisals are a factor in personnel decisions

a. Selection, staffing, promotions

b. Discipline

c. Training and development

d. All performance-based disciplinary actions

e. Performance salary increases

f. Reductions in force

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Responsibilities

SupervisorSupervisor

EmployeeEmployee EmployeeEmployeeEmployeeEmployee

HRHR

Who is responsible for managing performance?

Next-level Manager

Next-level Manager

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Performance Management

Can be the primary driver of a performance culture

Is not an HR program

Is a management process and a manager’s responsibility

Is the way managers assure that the right things get done well and that they are able to deliver the results expected for their area of responsibility

Is required by policy and by State law

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Development

Development

PlanPlanDevelopment

Development

PlanPlan

Perf. Perf. Improvement

Improvement PlanPlan

Perf. Perf. Improvement

Improvement PlanPlan

AppraisingAppraisingAppraisingAppraisingPerformingPerformingPlanningPlanningPlanningPlanning

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Interim Interim ReviewReviewInterim Interim ReviewReview

ManagingManagingManagingManaging

Performance Management Cycle

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Part I:Planning

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Requirements for Work Plans

1. Every employee has work plan at beginning of cycle

2. Supervisor explains PM process to employees

3. Employees understand what is expected of them, their role in agency

4. Supervisor and employee actually meet to discuss

5. Supervisors inform employees of 5-level rating scale

6. It is supervisor’s responsibility to determine expectations, with next-level manager’s approval and involvement of employee

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Requirements for Work Plans, cont.

7. Contents of work plan:

Goals / KRRs Results expectations

1. ~~~ ~~~~

2. ~~~~~ ~~~

3. ~~~~ ~~~~

~~~~~ ~~~ ~~~~~~ ~ ~~~ ~~~

~~ ~~~ ~~~ ~~~~~ ~~ ~~~

~ ~~~~ ~~~~ ~~ ~~~~ ~~~ ~~~~ ~~

Dimensions / competencies Behavioral expectations

1. ~~~~~

2. ~~~~

3. ~~~~~~~~~

~~~ ~~~~ ~~~~~~ ~~~ ~~~~

~~~~~ ~~~~~ ~~~~~ ~~ ~~~~~~ ~~

~~~~ ~~~~ ~~~~ ~~~~~ ~ ~~

• How results measured• Defined at “Good” level• QQTC

(quality,quantity,timeliness, cost)• Headline• Priority

• Priority • Defined at “Good” level

What

How

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What Is “Performance”?

1. If you ran a zoological park, which would be more important?

A. Visitors who are happy, return to zoo, and tell their friends about their visit

B. The number of visitors

2. If you ran a training department, which would be more important?

A. Employees who could do something they couldn’t do before

B. The number of training sessions conducted

3. If you ran a retail store, which would be more important?

A. Customers who are happy with their purchases

B. A checkout procedure that was precisely followed

Adapted from Jack Zigon, “Results-Based Measurement: Better Measures in Less Time.”

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Effective Goals*

Goals should be …

* AKA key responsibilities / results

MeasurableFocused on

results

Aligned

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Statute

Alignment: Where Do Goals Come From?

KRR

KRRKRR

KRR

Customers

Responsibilities (job description)

Higher-level goals

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Results Focused and Measurable

Key responsibilities / results

Acme project completed

• Meet client requirements• Within budget• By 11/30

Results expectations

Director supported • 95% on time• 1-2 calendar conflicts

Customers served • 97% satisfaction• 24-hr resolution

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Model Work Plan

Check out an example of an effectively written work plan. It may not fit you exactly, but…

Hand out

Hand out

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Practice Writing KRRs

Take one employee’s KRRs (2 or 3 of them) and refine them to make them more aligned, results focused, and measurable.

• What is the goal?

• How will you measure its achievement?

• What will be considered “Good”?

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Part II:Managing

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Requirements for Ongoing PM

1. Supervisor and employee track employee’s performance

2. Interim review of performance

a. At least one meeting at cycle midpoint

b. Discuss overall rating – not necessary to record

3. Improvement plan

a. If performance BG or U, supervisor initiates, documents

b. Specifies actions employee and supervisor will take, results to be achieved, timeframes

4. If expectations change, should be noted on work plan

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Ongoing Performance Management

Here’s what supervisors should be doing as part of their ongoing performance management responsibilities:

Tracking performance

Giving / receiving feedback

Counseling

Documenting

Coaching

Macromanaging

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Performance Improvement Arena

Development Planning Arena

“Should”

“Actual”

“Actual”

Time

Per

form

ance

Improvement vs. Development

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Improvement plan – Short-term action plan for bringing performance up to expectations in current job

Development plan – Action plan for raising level of performance in order to excel in current job or prepare for new responsibilities

Career plan – Long-term process involving:

– Learning about self – strengths and weaknesses, satisfiers and dissatisfiers

– Learning about jobs – opportunities within organization, requirements for success

– Setting career goals

– Planning developmental experiences to acquire needed skills and credentials

Some Useful Distinctions

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Root Cause Analysis

If cause of performance issue is …

Then consider this type of approach …

Work habit Contract

Knowledge Training, work-with

Competency Development

System Fix the system

Expectation Revise the expectation

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1. ~~~ ~~~ ~~ ~ ~~~~2. ~~~~ ~~~~ ~~~~~ ~~~ ~~~3. ~~ ~~~ ~~~~

Concisely describe what needs improvement, why, consequences1

Signatures and dates5

Action steps employee will take Target dates

~/~/~~ ~/~~/~~~~/~/~~

2

3

~~~ ~~~ ~~~~

Describe how successful improvement will be measured

~~~ ~~~ ~~~~ ~~ ~~~ ~~~~ ~~ ~~~ ~~~~

~~~ ~~~ ~~~~ ~~ ~~~ ~~~~ ~~ ~~~ ~~~~

4 Resources and support to be provided

6 Follow up

Performance Improvement Plan

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You can diagnose and prepare a solution remotely

But your solution will seldom hold up when introduced into the employee’s world

The required end result is for the employee to meet performance expectations

What changes employee will make to achieve those expectations must be worked out in face-to-face

Remember, a performance problem is not resolved by completing a series of actions in an improvement plan, but only when performance expectations are met

Addressing Performance Problems

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Performance Issues

List 5-6 problems or challenges you have encountered, or are encountering, with your employees’ performance.

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Practice Addressing Performance Issues

Select one performance problem. How would you address it?

• Do a root cause analysis. What would be a reasonable solution to the problem, from your perspective?

• What would your discussion with the employee look like? Create a discussion template (or plan) that you can use with this and other, similar problems.

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Addressing Performance Issues

Here are some discussion templates to help you help employee focus on achieving expectations…

[See back of workbook]

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Reinforcing Good Things

What can you do to “lock in” an employee’s improved performance or to ensure the high performance level continues?

Acknowledge … and pinpoint

Individual differences

Keep it positive … and brief

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Development Tools

What is the most effective tool for development? Rank these development activities from most (1) to least (4) effective:

___ Read a book

___ Attend a workshop

___ Take on a special assignment

___ Observe an expert

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Secret Ingredients

Which of these characteristics is it most important to build into a development plan in order to make development really happen? Rank from most (1) to least (6) important.

___ Challenge

___ Structure

___ Support

___ Comfort

___ Feedback

___ Reflection

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1

5

2

3

4

6

Concisely describe:• Purpose of plan – KRRs to be driven, career plans to be pursued • Competencies to be developed, skills / knowledge to be acquired

~~~ ~~~ ~~~~

Development opportunities to be undertaken by employee

1. ~~~ ~~~2. ~~~~ ~~~~

~/~/~~ ~/~~/~~

~~~ ~~~ ~~~~ ~~ ~~~ ~~~~ ~~ ~~~ ~~~~ ~~~ ~~ ~~~ ~~~~~

Describe how successful development will be measured

~~~ ~~~ ~~~~ ~~ ~~~ ~~~~ ~~ ~~~ ~~~~

Time frames

Resources and support to be provided

Signatures and dates

Follow up

Development Plan

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Part III:Appraising

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Requirements for Appraisals

1. Supervisor conducts at least annually, at end of cycle

2. Supervisor documents performance, rates each expectation, rates overall performance, and writes summary statement

3. Disciplinary actions should influence overall rating

4. Overall rating submitted

5. Supervisor discusses appraisal with employee

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Requirements for Appraisals, cont.

6. Employee, supervisor, next-level manager date and sign appraisal

7. Employee may comment on rating

8. Completed appraisal

a. Supervisor gives employee copy, informs where original is kept

b. Kept in personnel file or a performance appraisal file

c. Confidential, retained for 3 years

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The Appraisal Sequence

• Collect information needed

• Enter results on work plan

• Rate performance

• Write summary

• Get approval

• Discuss with employee

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Words on an Appraisal

Read sample statements from an appraisal…

Which ones are appropriate? Which ones are not and how would you change them to make them more appropriate?

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Meets expectations

Performance improvement plan

Appraisal Rating Scale

Outstanding

Very Good

Good

Below Good

Unsatisfactory

Perform

ance bonus

Cost of Living A

djustment

Career G

rowth

Recognition A

ward

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Who, Me? Biased?

Halo

Horns

Stereotyping

Recency

Leniency

Severity

Negative Event

Comparison

Central Tendency

Similar to Me

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Model Appraisal

Check out an example of an effectively written performance appraisal. It may not fit your situation perfectly, but…

Hand out

Hand out

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Appraisal

For one of your employees:

Select one key responsibility / result and one dimension

Write a description of the employee’s performance.

Assign a rating.

Use real information and real behavior examples. Real names will not be shared.

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And now (drum roll) … the Overall Rating

KRRs Dimensions

U BG G VG O U BG G VG O

U BG G VG O

Actual results weighted by priority and rated

Overall rating

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The Evaluation Discussion

Evaluation stirs up emotions

Describe performance, not personality

Use examples – employees long for real feedback, not platitudes

Address issues – if something is obvious and you don’t bring it up … credibility

Stay on track – points to make, actions to follow

No surprises

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Administrative MattersAdministrative Matters

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Administrative Requirements

1. Personnel decisions:

a. Must be supported by current (within past 12 months) appraisal

b. If decision inconsistent with appraisal, then written justification required

2. Probationary employee

a. Work plan within 30 days

b. Appraisal at end of agency’s work cycle

c. Review completed before moving into permanent appointment

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Administrative Requirements, cont.

3. Employee in training progression:

a. Work plan within 30 days

b. Review completed before each salary increase granted within progression

4. Employee whose responsibilities change or who is transferred:

a. New work plan within 30 days

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Administrative Requirements, cont.

5. Employee who is transferred within state government:

a. Provide receiving unit with review of employee performance, signed by employee, supervisor, next-level manager (use Summary Transfer Form)

b. New supervisor may consider performance both in former unit and in new unit in determining amount of performance increase

6. Changes in supervision:

a. Next-level manager must be aware of and document employees’ performance

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Practice

FAQs (frequently asked questions) and FEIs (frequently encountered incidents)

Read, discuss, and recommend how they should be answered or resolved

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MarketMarketMarketMarket

Pay and Performance

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Key results / Key results / responsibilitiesresponsibilities

Key results / Key results / responsibilitiesresponsibilities

Base pay rangeBase pay rangeBase pay rangeBase pay range

COLA, COLA, CGRACGRA

COLA, COLA, CGRACGRA

Perf Perf bonusbonus

Perf Perf bonusbonus

Competency Competency assessmentassessment

C, J, AC, J, A

Competency Competency assessmentassessment

C, J, AC, J, A

AppraisalAppraisalAppraisalAppraisal

Ongoing Ongoing performanceperformance

Ongoing Ongoing performanceperformance

ResultsResults

Behaviors / Behaviors / skillsskills

Behaviors / Behaviors / skillsskills

ResultsResults

Classification Classification systemsystem

Classification Classification systemsystem

Career banding Career banding systemsystem

Career banding Career banding systemsystem

Fu

nd

ing

by

Fu

nd

ing

by

Leg

islature

Leg

islature

Fu

nd

ing

by

Fu

nd

ing

by

Leg

islature

Leg

islature

53O

ngoing M

anagem

ent of P

erformance

Ong

oing Ma

nagement of

Perform

ance

May

June

July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Work Work PlanPlan

Work Work PlanPlan

Performance Performance AppraisalAppraisal

U, BG, G, VG, OU, BG, G, VG, O

Performance Performance AppraisalAppraisal

U, BG, G, VG, OU, BG, G, VG, O% of time

Engaged in managing

OPTIMIZE!

MINIMIZE!

Engaged in PM admin and

paperwork

ResultsResultsResultsResults

Manager’s Time Budget

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3-7 KRR’s reflecting primary responsibilities of job

Give focus to KRR’s based on:

– Alignment to higher goals

– Customer expectations

– Defined responsibilities

Raise “level” of KRR’s – from tasks to results

Publish SOPs / do’s-and-don’ts elsewhere

Give work plan the “newspaper” test

Simplify Work Planning

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Position PM as essence of managerial role, not an annoying add-on – it is Management 101!

Focus day-to-day conversations around KRRs

Treat issues as problem-solving / learning opportunities with twin outcomes

– Getting the work done

– Building a collaborative learning environment

Set up meaningful performance tracking mechanisms that involve employees

Simplify Ongoing Management

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OK, filling out the form is paperwork – but getting the information right is important

Have employees supply information for their KRRs, behavioral examples for their behaviors / skills … then vet the information

Be concise – don’t over-document

Appraisal discussion is managerial task

Position discussion as “quality time” with employees – opportunity to reflect and look ahead

Simplify Performance Appraisal