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A different model for team appraisals
Fernando Palomo GarcíaNovember 2013
Why traditional models suck
They are a distant system of control, not a system of engagement
Why traditional models suck
They foster competition amongst members instead of collaboration
Why traditional models suck
Top-to-down , 1 to 1. Leader to follower
Why traditional models suck
Focused in COMPLIANCE rather than COLLABORATION
Why traditional models suck
Appraisals don’t help conveying corporate values, their only focus is economic ( bonuses, salary upgrades... )
Why traditional models suck
Already identified by Deming* ( author of the Plan-Do-Check-Act cycle ) as one of the 7 deadly diseases of any organization
http://en.wikipedia.org/wiki/W._Edwards_Deming#Seven_Deadly_Diseases
Another model
The knowledge era: people are well prepared, reaching job satisfaction requires:• Mastery• Autonomy• Purpose
“When it comes to intellectual activity, money doesn’t work as motivation booster”Daniel H. Pink, ‘DRIVE’ http://www.youtube.com/watch?v=u6XAPnuFjJc
Another model
No more monetary bonuses linked to individual performance. Ensure everyone in the company feels well paid, lucky to be here.
“Pay high enough salaries to take the money off the table,so people can focus on their job”
Daniel H. Pink, DRIVE : http://www.youtube.com/watch?v=u6XAPnuFjJc
Another model
Every member must be engaged and feel responsible to educate, integrate and help the rest of members
Another model
Pay your employees what they deserve. Based on:• What the employee could get
elsewhere• What we would have to spend to
replace him• What we would be willing to pay
to keep him in his job
Another model
Evaluations should be used to educate people in the organization values.
Another model
A global bonus based on the organization results is welcomed, but NOT mandatory. Percentage should be fixed and based on employee salary.
Another model
Peers, not managers, decide who gets rewarded. Rewards must not be exclusionary.
Another model
Education is a continuous topic, not a 6 / 12 months matter.
Another model
All peers must choose their team members. The best compromise comes from our own decisions.
A practical approach
The organization discovers its own values – Courage– Openness– Technical Excellence– Quality–…
A practical approach
The members list daily actions that demonstrate commitment to the values• E.g. Openness:
– When I asked for feedback on my last task, the other person answered me honestly even though it felt uncomfortable.
– When I asked about my situation within the team, my manager didn’t hide his concerns.
– …
A practical approach
This list is alive and maintained continuously
A practical approach
The team creates “Value coins”• Courage coin• Openness coin• …
A practical approach
Every member is given a certain amount of coins periodically. The shorter the period, the better.
A practical approach
Every member gives coins to whomever sticks to the values:– If I see somebody does a good action
demonstrating she sticks to “openness”, I will pay her a coin of “openness”.
A practical approach
Teams agree on the money paid to a member.
A practical approach
Organizational managers evaluate the team members periodically, assessing their alignment to the values based on the amount of collected coins.
A practical approach
Members receive benefits based on how many coins they have received:• Per 5 “courage” coins you get a ticket for an extreme sport
activity• Per 5 “openness” coins you get a massage• Per 20 coins in the same month you get half day off• Per 60 coins covering all different values in a quarter you
get your name in any of our products• Per 2 consecutive quarters with 60 coins you get
interviewed for the internal magazine• …
A practical approach
Not just financial benefits, but mostly recognition
A practical approach
Be generous in the coin exchange to create a winning and aligned culture.
References
• http://www.danpink.com/books/drive/ , Drive from Daniel H. Pink
• http://www.management30.com/ , Management 3.0 book & courses from Jurgen Appelo
• http://techcrunch.com/2009/08/05/other-companies-should-have-to-read-this-internal-netflix-presentation/ , Netflix HR internal presentation
