Performance Management in the Professions 2015: research and
findings David Meagher Head of Analytics Slide 2 Research purpose
To benchmark current performance management practice in the PSF
sector To understand priorities for change in relation to
performance management practices, tools and methods Slide 3
Researchers Ray DCruz, SkillsScorecard, Australia Michael Roch,
KermaPartners, UK Rupprecht Graf von Pfiel, KermaPartners, Germany
Richard Chaplin, Managing Partners Forum, UK Slide 4 Respondent
demographics N=240 Slide 5 Strategic context Performance management
is central to productivity Identifying, engaging, rewarding and
retaining the most profitable and productive partners and staff
Managing poor performance Accelerating skills development and
behaviours (particularly in client focused capabilities such as
pricing, commerciality and cost consciousness) Systematic approach
to nurturing a culture of continuous improvement and process re-
engineering through structured learning and KM Promoting new talent
with future-oriented capabilities Profit margin squeeze Parters
significant profit expectations Lower costs More certainty Clients
Employee significant salary expectations Slide 6 Preliminary
findings 1. Firms want more regular formal and informal
conversations 2. The US-led debate about PM is off the mark 3.
Honest feedback is the most important outcome of PM 4. Developing
partner and manager skills is a priority 5. Project-based feedback
is seriously lacking in law firms 6. Financial metrics are still
skewed to personal financials 7. HR needs to take its seat at the
partner PM table 8. Technology is the enabler for streamlined PM
Slide 7 Research methods Finding #1 Firms want more regular formal
and informal performance conversations Slide 8 Frequency of formal
reviews Current versus desired Questions: How often is FORMAL
feedback (periodic review) provided on performance or progress? and
How often in your personal opinion should FORMAL feedback (periodic
review) be provided on performance or progress? Size of bubble
corresponds to the y axis and indicates the % of respondents
choosing a given option. Slide 9 Frequency of informal feedback
Current versus desired Questions: How often is INFORMAL feedback
provided on performance or progress? and How often in your personal
opinion should INFORMAL feedback be provided on performance or
progress? Size of bubble corresponds to the y axis and indicates
the % of respondents choosing a given option. Slide 10 Research
methods Finding #2 The US-led debate about performance management
is off the mark Slide 11 US focus on forced rankings and ratings is
largely irrelevant for Australian PSFs Trend line: respondents tend
to agree on where priorities lie Question: What are your priorities
for improving the periodic review process in the coming 1-2 years?
Slide 12 Research methods Finding #3 Honest feedback is the most
important outcome of performance management Slide 13 Question: How
important are the following aspects of performance management at
your firm? Honest feedback the most important outcome of
performance management Slide 14 Research methods Finding #4
Developing partner and manager skills is the most important
priority for firms Slide 15 Skills: improving partner and manager
skills through training is the number one priority Trend line:
respondents tend to agree on where priorities lie Question: What
are your priorities for improving the periodic review process in
the coming 1-2 years? Slide 16 Research methods Finding #5 Project
or matter-based feedback is seriously lacking, especially for law
firms Slide 17 After action reviews: a critical productivity
improvement tool missing in action Question: How consistently is
performance reviewed at the end of each job, project or engagement?
X axis indicates % of respondents choosing a given option. Slide 18
Discussion Why are after action reviews so important given the
challenges facing law firms? Why is the use of after action reviews
in Australian law firms so lacking? What can L&D do to change
the current state? Slide 19 Research methods Finding #6 Performance
assessment is still skewed to personal financial metrics Slide 20
Key inputs in performance assessment need to be broadened beyond
personal financials Question: What are the main inputs for periodic
reviews of partners, employees, management team members?
(respectively) Slide 21 Research methods Finding #7 HR must take a
seat at the table for partner PM by building credibility Slide 22
Role of HR in designing and implementing partner performance
reviews HR involvement in the periodic review process for partners
remains very limited yet more important is the difference in
perception between owner and HRD. Question: How closely is HR
currently involved in the design and implementation of periodic
reviews? HR point of view Owner point of view Slide 23 Use of
performance analytics: gaining credibility through data-based
insights Performance analytics - the application and analysis of
data to produce actionable insights about people and performance.
Question: To what extent are performance analytics (HR reporting,
data visualisation, etc.) used in discussions over performance of?
Slide 24 Research methods Finding #8 Technology is the enabler to
make the process easier for everyone Slide 25 Skills: improving
partner and manager skills through training is the number one
priority Trend line: respondents tend to agree on where priorities
lie Question: What are your priorities for improving the periodic
review process in the coming 1-2 years? Slide 26 Research methods
Best practice: where to from here? Slide 27 Preliminary findings 1.
Firms want more regular formal and informal conversations 2. The
US-led debate about PM is off the mark 3. Honest feedback is the
most important outcome of PM 4. Developing partner and manager
skills is a priority 5. Project-based feedback is seriously lacking
in law firms 6. Financial metrics are still skewed to personal
financials 7. HR needs to take its seat at the partner PM table 8.
Technology is the enabler for streamlined PM Slide 28 Future of
performance management Traditional approachFuture approaches Annual
formal reviewsQuarterly / six monthly formal reviews Assessment
focusedDialogue focused Periodic collection of feedbackJust-in-time
project-based feedback Annually updated objectivesOngoing
objectives updates Single source feedbackMulti source feedback
Paper-based, bureaucratic form-fillingOnline, simple and intuitive
systems Personal financial metricsPersonal and team financial
metrics Personal competency focusTeam competency focus Narrow focus
on outputsBalancing inputs and outputs Opaque compensation
processTransparent compensation process Compliance focusedBusiness
intelligence, analytics focus HR drivenSupervisor, employee and HR
driven Slide 29 Best practice framework Adjust leadership approach
Increase use of technology Evolve ways of working Increase /
improve use of technology Save time; replace manual processes with
technology Streamline and simplify existing technology Build HRs
analytics capabilities (and in doing so improve HR profile and
credibility) Adjust leadership approach Designate performance
management as the key link between positioning, strategy and
behaviour Make it important: establish good practices in your firms
DNA; hold people accountable Improve participant skills in as
coaching, feedback, objective- consensus and decision- making
Engage senior HR in partner performance management Evolve ways of
working Tightly link business planning, performance management and
remuneration processes to for effectiveness and efficiency Increase
frequency of formal and informal conversations; praise good
performance and use strengths-based dialogue Review contribution
areas and ratings for l appropriateness (be nuanced if necessary)
Abolish forced rankings Broaden and balance what performance
measures Implement after action reviews as routine business
practice Slide 30 Research methods Conclusion Firms want evolution;
more formal and informal performance conversations, kept short and
simple, and enabled by technology Slide 31 Questions? Performance
Management in the Professions 2015: research and findings David
Meagher Head of Analytics [email protected]
