Perf mgmt tab 2 0403

g PerformanceManagement

Module 2 - page 1

PerformanceManagement

PERFORMANCEPERFORMANCE

MANAGEMENTMANAGEMENT


Module 2 - page 2


Learning ObjectivesLearning Objectives

View Performance Management as a continuous process

Understand the Performance Management Cycle

Understand the Session C Process

Structure meaningful performance feedback

Write and Deliver an Effective EMS Review

Know when and how to handle performance problems

By the end of this module you will be able to:By the end of this module you will be able to:


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Group Activity

Performance Management Performance Management

Pre-TestPre-Test

(appendix)

Pre-TestPre-Test


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Defining Performance Management The GE Session C Process Elements of Effective Feedback Assessment Tools Writing the e-EMS Document Conducting the EMS Review Dealing with Performance Problems

AgendaAgenda


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What is Performance Management?What is Performance Management?

An on-going communication process between manager and employee

Establishes clear understanding and expectations about:– The essential job functions– How the job contributes to the organization’s goals and

objectives– Working together to continuously improve employee

performance– How job performance is measured and what the ratings

mean

A Continuous Process that Begins on Day OneA Continuous Process that Begins on Day One


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What Performance Management Is NotWhat Performance Management Is Not

A one-way “appraisal” of performance

Something a manager does to an employee

“Gut Feeling” Used only in poor performance

situations About completing forms once a year


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Benefits of Performance ManagementBenefits of Performance Management

For Managers:For Managers:

Help good employees become even better by focusing

them on the most critical business issues

Reduce time-consuming misunderstandings

Reduce the frequency of situations where you don’t have

the information you need when you need it

Reduce mistakes and errors

Legally defend performance issues

Up-front Investment Pays offUp-front Investment Pays off


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Benefits of Performance ManagementBenefits of Performance Management

For Employees:For Employees:

Understanding of job responsibilities and expectations

Receive timely feedback ~ “know where they stand”

Ensures no surprises Empowerment enabler Develop new skills and identify barriers to better

performance

Career Growth and OpportunitiesCareer Growth and Opportunities


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Case StudyCase Study

Group Activity

Present Present

Case StudiesCase Studies


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New goals discussed jointlyand documented SMART

Performance Screen final-ised/recorded

Progressperiodicallyassessed

Performanceimprovementand careerplans defined

Performanceappraisaldiscussion occurs

1 over 1reviewconducted

Managercompletese-EMS

Employeecompletese-EMS

Managerprovidescoaching

THE PERFORMANCECYCLE

The Performance CycleThe Performance Cycle


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PerformanceManagementEMSEMS

StatusStatus

Submitted by Employee

Approved

Submitted by Manager

Released

Complete

None

Employee self-assessment becomes visible to managers*

Release Final

Submit EMS

Submit EMS

Discussed EMS

Return EMS

Unlock

Unlock

Direct Manager

One-Over-OneOne-Over-One HR Mgr

One-Over-OneOne-Over-One HR Mgr

Employee

Direct Manager

One-Over-One

Manager

Employee

* Managers includes Direct Manager, HR Manager, and (if applicable) dotted line and previous manager

Return Approved Return Unapproved One-Over-One

ApprovalApprovalProcessProcess

Revision Revision ProcessProcess

Complete (Discussion acknowledged by employee)

Manager assessment becomes visible to employee

(if(if req’dreq’d))


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Session C ObjectivesSession C Objectives

To review the current organization and plans to change -- both your component and the business To review and appraise the performance, promotability, strengths and developmental needs of employees To review plans and suggestions for succession planning Early identification of high potential talent A forum for special business initiatives which warrant focused attention

Your Session C input is a reflection on Your Session C input is a reflection on YOU!YOU!

Session CSession C


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Dear GE Employees:

We've just wrapped up our annual Session C process throughout the company. This review of our people and their performance against our strategic objectives is undoubtedly our most important operating process.

This is the time I feel most proud to be a part of this company because I see firsthand the unrivaled talent in GE's businesses. This year, we emphasized our engineering talent…

All employee email from Jeff Immelt 5/5/03

Your Session C input is a reflection on Your Session C input is a reflection on YOU!YOU!

Session CSession C


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C PROCESS WITHIN BUSINESS Individual Career

Planning Managerial Review/

Discussions Organization Issues/Structure Pipeline Developmental

Actions

Individual Manager- then - One-over-One Mgr Business Manager

CEO SESSION C

SESSION C WRAP-UP

CEO SESSION C-II

Organization Individuals Backups Issues Developmental Actions

Corporate Overview Decisions Issues Replacement Planning

IssueResolution

Organization / Key Individual Update

JUNEMDCC

REVIEW

DEC.BOARDREVIEW

C-II TO BUSINESSES

Follow-up issues

JANUARY - - - - - - - - - - - - - MAY - - - - - - - - - - - - - JUNE - - - - - - - - - - - - -- - - NOVEMBER - - - DECEMBER

GE Annual Organization & StaffingGE Annual Organization & StaffingReview Process Review Process

Session CSession C


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Providing Performance FeedbackProviding Performance Feedback

Describe some of the waysDescribe some of the waysyou gather & provide performance feedbackyou gather & provide performance feedback

to your employees…...to your employees…...


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Performance Feedback FunnelPerformance Feedback Funnel

Informal, Ad-hoc Feedback and Coaching

Interim Goal Settingand Reviews

Annual Goal Settingand Reviews

Performance Improvement

Plans

Types of Performance FeedbackTypes of Performance Feedback

Least Formal

Most Formal


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Sources of InformationSources of Information

Personal observations Ongoing communication and feedback Documentation -- personal file, notes, memos Calendars, daily planners Significant event files Discussions with customers, co-workers

PreparationPreparation

360 Reviews -- useful for getting multiple viewpoints360 Reviews -- useful for getting multiple viewpoints


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Sales Calls Last WK Sales Calls this Q Sales Calls YTD Proposing Pipeline Closed Biz this Q Closed Biz YTDRep A 3 20 20 650,500 0 0Rep B Vacation Vacation Vacation 1,793,000 118,000 209,000Rep C 3 22 22 1,200,000 211,720 341,720Rep D 2 31 31 101,360 188,000 474,000Rep E 6 20 20 750,000 10,000 10,000Rep F 7 47 47 5,204,000 150,000 150,000Rep G 4 27 27 961,000 230,000 392,320Rep H 2 22 22 137,000 22,000 467,000House 140,000Region Total 27 189 189 10,796,860 1,069,720 2,044,040Region Average 3 23.625 23.625 1,349,608 116,215 255,505

My Team

Interim Review Assessment ToolsInterim Review Assessment Tools

Trotter MatrixTrotter Matrix


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SKILLS CATEGORY Criticality Rep A Rep B Rep C Rep D Rep E Rep F Rep G TEAM TeamSee below for Rating Scale Rate 1-3 Rate 1-3 Rate 1-3 Rate 1-3 Rate 1-3 Rate 1-3 Rate 1-3 Rate 1-3 Avg. MaxTechnical Skills

Product/Service Knowledge

Industry Expertise

Sales SkillsSales Process

Prospecting/Cold Calls QualifyingProposing

ClosingCustomer Presence/Management

Professional PresenceQuestioning/Probing/Listening

Consultative SellingResponsiveness

Customer RelationshipsProductivity/Personal Attributes

Energy/EdgeCrafting ROI's/Analytical Ability

Organization/Time ManagementUse of Available Tools

Deal Ownership/Working with HQAbility to Learn New Products/Technology Quality

Communication Skills (verbal, written)Positive, "Can-Do" Attitude

Total by PersonHighest Total Score =

Maximum Score Most Critical (3's)

Medium Critical (2's) Least Critical (1's)

3's and 2'sRank of 3's and 2's

Rank of 3'sRating Scale: 3,2,1,3=Superior Expertise - Generally Self-Sufficient; Requires minimal Assistance from Mgr, CSD, others; Gets Results; Viewed as a Subject Matter Expert2=Average Competence - Requires Assistance at least 50% of the time; Longer cycle time to get Results; Theoretical Knowledge, very little Practical Application Knowledge1=Below Average Competence - Rarely completes Activities without outside Assistance; Gets very few Results; Some Theoretical Knowledge

Skills InventoriesSkills Inventories


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5 7

25

750

10

20

30

Top 10% Next 15% Middle 50% Caution 15% Least Effective 10%

All Reps Ranked by YTD Revenue All Reps Ranked by YTD Quota Realization All Reps Ranked by Sales Pipelineor Any Other Valid Metric


Vitality IndexVitality Index


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Reviewing PerformanceReviewing Performance

S Specific actions

M which had Measurable results

A that could be reasonably Attained

R with business related Results

T in the Time frame of the review

Focus is on….Focus is on….


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Use objective language of observable events & measurable results

Some subjective words require concrete explanation / example:

Giving FeedbackGiving Feedback

Good Performance Descriptions...Good Performance Descriptions...

- Professional - Unprofessional- Hard working - Lazy- Assertive - Passive- Responsible - Irresponsible


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Explain and illustrate your conclusions




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State what is being done well and what needs improvement



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Good Performance Descriptions...Good Performance Descriptions... Use objective language of observable events & measurable results


State what is being done well and what needs improvement

Are specific and complete - answer these questions:- How long? - How often?- How many? - When?- Where? - Who?


One last time: Is it SMART?One last time: Is it SMART?


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“John decreased customer complaints from 85 to 10 per month by developing a spreadsheet to analyze complaint patterns, then developing new, specialized customer training.”

“Sue led the Boundaryless Selling Team efforts with ACME Co., resulting in $450K incremental business while facilitating new relationships at ACME for GE Capital and GE Industrial Systems.”

“George received training in the Six Sigma methodology, then applied it to a greenbelt project to improve billing accuracy for ceiling maintenance customers. Results: $40,000 savings.”

Well Written Performance DescriptionsWell Written Performance Descriptions


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Add descriptions to support these conclusions:Add descriptions to support these conclusions:

Aaron has good people skills. _________________________________________________________________________________________________________________________________________________________________________________________________________________

Cindy has strong analytical and project management skills. _________________________________________________________________________________________________________________________________________________________________________________

Steve is a strong negotiator. ___________________________________________________________________________________________________________________________________________________________________________________________________________________

Jean does not aggressively drive top line growth. ______________________________________________________________________________________________________________________________________________________________________________________________

Bob lacks a sense of urgency and a commitment to results. ___________________________________________________________________________________________________________________________________________________________________________________

Writing PracticeWriting Practice


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The EMSThe EMSReviewReview


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The EMSThe EMS


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The EMS – Assessing PerformanceThe EMS – Assessing Performance


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Contribution and TrendContribution and Trend

You should…

Link to established performance objectives

Be candid and specific by highlighting observable and measurable events

List measurements met, exceeded, missed -- … be thorough, concise, specific, direct

Include facts -- €/$, dates, V$/%, VP $/%, etc.

Comment on Six Sigma activities



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Focus on…

Scope of responsibilities: Number / complexity of accounts, size of budget, training / mentoring responsibilities, championing roles

Problems faced: What difficulties were overcome? How were they addressed/not addressed?

Skills applied: What special abilities were used (or were lacking) in solving problems

Results achieved: What were the quantifiable outcomes?(€/$, V$ / %, VP $ / %)

Performance codes should be stated for all employeesPerformance codes should be stated for all employees


Contribution and TrendContribution and Trend


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Performance / Promotability CodesPerformance / Promotability Codes

A one-year, snapshot description of an employee’s performance as related to the requirements of the position.

PerformanceCode

PromotabilityCode

An assessment of future leadershippotential. Evaluated each year basedon performance, demonstration of GEValues, personal goals or restrictions.

Vitality Index: Currently being decided at the Business levelVitality Index: Currently being decided at the Business level



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Performance / Promotability CodesPerformance / Promotability Codes Many businesses have unique coding systems

Businesses with same system may define rating differently

When considering candidate from another GE business, review- The code- Written evaluations- Salary / promotion history- Stock Options received

Even if your business doesn’t require Performance Codes on EMS you should include it

Employees deserve to know how you view their performanceEmployees deserve to know how you view their performance



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Strengths and DevelopmentStrengths and Development

Refer to the employee’s side of the EMS confirm those areas which are truly strengths

Strengths should be relevant to employee’s current performance and future career goals

Growth statements describe strength improvements

Provide adequate descriptions...

EMS: Strengths and DevelopmentEMS: Strengths and Development

A single buzz word is not enough!A single buzz word is not enough!


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Problem solving - analysis - decision-making- goal setting - follow through- creativity

Application skills - initiative - decisiveness- involvement - perceptiveness- empathy - communication

Administrative skills - planning - measuring- organizing - procedures

Tie back to your sales competency Tie back to your sales competency model for a “menu” of skillsmodel for a “menu” of skills

Skills and AbilitiesSkills and Abilities



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Improvement / DevelopmentImprovement / Development

Refer to the employee’s EMS

ID the skill gap

Think out of box

Identify 2 or 3 of the most critical & define an improvement plan

Focus on skills or experiences which need improvement forthe current and future positions

...for developmental opportunities:- projects- special assignments- mentoring / training- education- x-functional assignments



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Improvement / DevelopmentImprovement / Development

Identify the Need Identify the Action

“Jack should polish his skills “Recommend Jack attendin presenting to senior Professional Presentationbusiness leaders” Skills training”

Only suggest what you can deliver:

Crotonville attendance is out of your control MBA reimbursement policies vary across businesses

The employee’s career growth could depend on your abilityThe employee’s career growth could depend on your abilityto identify problems and help develop improvement plansto identify problems and help develop improvement plans



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Job / Career RecommendationsJob / Career Recommendations

Refer to the employee’s side of the EMS -- recommend the most appropriate career direction based on:

- Performance - Skills- Experience - Capabilities- Knowledge - Leadership Values

If the employee should remain in the current position - SAY SO! If promotable discuss long-term potential - MAKE NO VERBAL OR WRITTEN PROMISES! Career discussions, employees in need of guidance may warrant partnering with Human Resources - DON’T ABDICATE YOUR RESPONSIBILITY!

Be Candid, Be Realistic, Be HonestBe Candid, Be Realistic, Be Honest

EMS: Career ObjectivesEMS: Career Objectives


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Group Activity

Writing Job / CareerWriting Job / Career

RecommendationsRecommendations

(appendix)(appendix)

Writing PracticeWriting Practice


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Managing ExpectationsManaging Expectations

The Highly Ambitious Hi PotThe Highly Ambitious Hi Pot

TIME

GR

OW

TH

ReasonableTime inPosition

GreaterCompetencies

for the Employee

ROI for theSponsoringOganization

The Hi Pot is looking to move on just as they are adding full value -- short changing the organization and, long term, the employee


Module 2 - page 42


Beware the Halo EffectBeware the Halo Effect

Recency: Judging last week’s performance vs. entire yearUnforgiveness: Not allowing improved performance to outshine

a poor pastOveremphasis: Placing too much weight on one great or poor factorPrejudice: Judging personality or looks over work performanceFavoritism: Being influenced by a person’s likableness, despite

poor performanceGrouping: Giving a good or poor evaluation based on the team’s

performance rather than the individualIndiscrimination: Being too critical or too generous with everyoneStereotyping: Basing judgments on preconceived notions such as

race, sex, religion, age, ethnic heritage

Bias Free EvaluationsBias Free Evaluations


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Bias Free ChecklistBias Free Checklist Did you evaluate full year’s performance, not most recent occurrences? Did you weigh all factors fairly, not placing too much value on one good or poor factor? Did you allow a poor performance in the past to cloud judgment? Did you evaluate performance - not personality? Did you evaluate performance regardless of friendship or personal feelings towards employee? Did you evaluate the individual rather than the function or work team as a whole? Did you evaluate this employee differently from the others? Note: If all your employees are receiving similar appraisals, you may be generalizing too much Was your appraisal done without prejudice on such things as: race, religion, sex, age, ethnic heritage?

Bias Free EvaluationsBias Free Evaluations


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Table Team Activity

EMS ExchangeEMS Exchange

and Critiqueand Critique

EMS ExchangeEMS Exchange


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Preparation and schedulingPreparation and scheduling Allow the employee plenty of time to complete his/her side of the EMS Schedule a mutually convenient time and place at least a week in advance Allow enough time for a two-way discussion - 1 hour Avoid surprises - explain to the employee the purpose of the discussion Anticipate the employee’s reaction and think through your responses

Set the climateSet the climate Don’t fill the whole day with appraisal discussions Ensure no interruptions - beepers, phones or people

Review PreparationReview Preparation


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State the purpose- Review the advantages of the appraisal process- Tell the employee the data you used for the evaluation- If necessary, explain this is not a salary review

Allow employee to review the EMS (this could occur prior to meeting)

Ask the employee’s opinion first

Manager’s EMS - Review each section, discussing areas of “disconnect”

Close the discussion - Summarize- If there is a performance issue, clearly explain next step- End with a positive comment- Make sure the employee signs the appraisal (on-line)- Thank the employee

Review DeliveryReview Delivery


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Are You Prepared to Handle the Difficult Questions???Are You Prepared to Handle the Difficult Questions???

“I don’t agree with what you wrote because....” “I want a chance to discuss this with (your manager)” “If my (promotability/performance) code is low, does this mean I can’t get promoted within GE? How will this effect my salary?” “What will my raise be this year?” “You say I have low promotability. What do I have to do differently to rated differently?” “No one pays attention to this - I keep saying I want to do (X), and nothing ever happens. Why bother?”

Difficult QuestionsDifficult Questions


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Table Team Activity

Practice EMS Practice EMS

DeliveryDelivery

Review Delivery PracticeReview Delivery Practice


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Many Factors Contribute to Performance ProblemsMany Factors Contribute to Performance Problems

Poorly defined jobs or standards Lack of clear understanding of job expectations Insufficient training Lack of performance feedback Inadequate resources to accomplish the job

Poor job placement Lack of direction Misunderstanding of priorities They think they are doing it right They think their way is better They’re not getting results YOUR way They do it wrong & are still rewarded

Is the problem with the person or the situation?Is the problem with the person or the situation?

Unsatisfactory PerformanceUnsatisfactory Performance


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Performance Issue SpectrumPerformance Issue Spectrum

CorrectiveDiscussion

PerformancePlan

Termination

Coaching,Corrective Action*

Reassignment

* Warrants a note in your file, but not necessarily a letter to the employee

PerformanceIssue

CriticalIssue?

YES

NO

PotentialLitigation

SuccessfulCompletion

Involve HR


Module 2 - page 51


Performance Issues SummaryPerformance Issues Summary

DO’s

Focus on

- Issues - Resolution required - Timetable for resolution - Consequences - Behaviors, not motivations

Schedule follow-up - AND DO IT!

DON’Ts

Wait until the annual appraisal Assume he-she knows there is an issue Be vague Assume the employee knows the consequences Fail to follow up Fail to bring one-over-one manager into the loop Forget documentation

““If I’m going to be involved in the end,If I’m going to be involved in the end,make sure to involve me at the start” ... HR Managermake sure to involve me at the start” ... HR Manager


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Corrective DiscussionCorrective Discussion

DO: Inquire about problems Clearly explain performance issue Focus on observable behavior, be

specific Explain expected results Determine training needed Have discussion face to face Explain consequences Document discussion to file

DON’T: Wait too long to discuss Minimize real issues by over

diagnosing them Send memo or note only State vague performance

expectations Have a performance counseling

discussion so lighthearted that employee doesn’t know he/she had one


PerformancePlan

Successful CompletionReassignmentTerminationPotential Litigation

Resolution

Communicate Expected Performance ClearlyCommunicate Expected Performance Clearly


Module 2 - page 53


Corrective DiscussionCorrective Discussion

DO: Provide ongoing verbal

feedback Communicate interest Have a presence Get HR involved Consider Performance Plan

DON’T: Wait to give feedback Say nothing Change your behavior toward

employee


PerformancePlan


Resolution

Actively Manage PerformanceActively Manage Performance


Module 2 - page 54


Performance PlanPerformance Plan

DO: Refer to prior conversation(s) Communicate to employee if problem continues,

therefore performance plan needed Explain expected results: no more, no less than

anyone else Impose realistic time limits Communicate consequences of non-performance,

document Be direct, supportive Conduct privately Follow-up with Performance Plan letter

DON’T: Be vague Speak in generalities Compromise your legitimate expectations Take it personally Wait for the EMS process Allow this to be a surprise Treat termination as a foregone conclusion,

denying the employee a fair chance to improve and successfully complete the plan


PerformancePlan


Resolution

Communicate Expectations/Consequences ClearlyCommunicate Expectations/Consequences Clearly


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Performance PlanPerformance Plan

DO: Conduct interim reviews Give continuous feedback (verbal and

written) Monitor performance objectively and

document Keep HR involved Keep commitments to support and counsel Review employee performance w/HR

during and at end of plan period

DON’T: Waiver on expectations Sugar coat message Miss review dates Give inconsistent pay

increases/awards Deny necessary training


PerformancePlan


Resolution

Monitor Performance ObjectivelyMonitor Performance Objectively


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Successful CompletionSuccessful Completion

DO: Be clear/definite about

successful completion Conduct face-to-face session Follow up with formal letter Restate expectations of

continued competent performance

DON’T: Fail to conclude plan with face-to-

face session and written follow-up Promise promotion, large salary

increase etc. immediately Overstate the positive performance

on the Plan Re-hash prior performance issues in

great detail


PerformancePlan


Resolution

Open Dialogue - Positive, But Clear & CautiousOpen Dialogue - Positive, But Clear & Cautious


Module 2 - page 57


TerminationTermination

DO: Rehearse session with HR Consider having another Manager/HRM

present Be clear/definite about the termination Communicate rationale Be brief Communicate empathy Explain next steps Alert security, if necessary

DON’T: Engage in protracted

justification Waiver Discuss other employees’

situations Argue


PerformancePlan


Resolution

Short Session… To the PointShort Session… To the Point


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TerminationTermination

DO: Document conversation to file:

- Reactions- Unusual questions

Aid employee with separation details Close loop with HR Document any/all subsequent

conversations to file

DON’T: Discuss situation with other

employees Ignore calls from the

terminated employee


PerformancePlan


Resolution

Follow-Up is CrucialFollow-Up is Crucial


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If Litigation Results...If Litigation Results...

DO: Get HR/Legal involved

immediately Disclose documentation to

the HR/Legal Participate, as needed, with

HR/ Legal in information gathering interviews

DON’T: Discuss freely inside or

outside the company


PerformancePlan


Resolution


Module 2 - page 62


Performance Management SummaryPerformance Management Summary

Performance Management is about…..Performance Management is about…..

People, communication, and working together An ongoing process throughout the year “No surprises” Preventing and solving problems Managing legal risks

Continuous Improvement of PerformanceContinuous Improvement of Performance