Designing and Implementing Performance Management

Program for Small Businesses

Presented by Joanne MelansonDirector, Professional Services

What is Performance Management (PM)?

• Setting and achieving organizational goals that produce desired business results

• Aligning individual and team goals with business strategy - organizational change, growth, finance, people

• Benchmarking; Determining and obtaining skills, knowledge and tools required for success

• Staying on track with consistent, timely communication & feedback (360 degrees)

Key Considerations for PM Program Design

• Corporate goals - short and long term plans• Team goals - group contributions to company goals• Individual goals - organizational, career, personal• Management and Leadership skills - HR knowledge• Job Descriptions - roles, relationships, accountability• People - knowledge, skills, competencies, potential• Actions - required to implement and follow-up

Business Performance Process / Key Indicators

ORGANIZATION

Business Development

Customer Service & Retention

Human Resources Strategy

Financial Success / ROI /

Profit

Market Position / Branding

TEAMProductive aligned

workforce

Synergistic collaborative teams

Future Leaders / Succession Plan

High Performance Culture

INDIVIDUAL

Career Progression/

Retention

Satisfaction/ Engagement

Training & Development

Rewards & Recognition

Benefits of Effective Performance Management

• Identify goals, challenges, strengths, gaps in performance

• Identify gaps in knowledge & skills – Training & Development / Recruiting

• Improve employee and team engagement / performance

• Identify top performers – reward & retain• Identify poor performers – correction or exit

Benefits of Effective Performance Management...cont’d

• Determine & justify decisions and actions – merit, bonus, compensation, promotion, succession, discipline, termination

• Enhance success factors / Reduce risks and exposure• Improve organization’s overall performance

HR Elements and Performance Management

• Align to organization needs

• Career progression• Coaching; Mentors

• Performance Reviews

• Reward & Retention

• Attract & hire best talent

• Job Descriptions• Orientation • Culture; Fit

• Business Plan; Goal setting

• Succession Planning

• Communication; 360 Feedback HR Strategy

Recruitment

Training & Development

Employee Engagement

Development Driven PM Model

• Coaching and development improve employees’ performance and retain most talented.

• Identifies strengths and weaknesses at individual, team and organization levels.

• Allows for input from all stakeholders.• Consistent and thorough follow-up at regular

intervals for development plan effectiveness.• Used by 64 % of companies (Bersin Research 2010)

Competitive Assessment PM Model

• Evaluates employees against goals and one another; encourages competition / high performance.

• Aim is to reward top performers and weed out poor performers; forced ranking / distribution.

• Viewed negatively due to adversarial culture• Used by 36 % of companies (Bersin Research 2010)

Performance Potential Model• Backbone (workhorses)

high performance / low potential

• Acknowledge effort and contribution.• Utilize as coaches and mentors.• Look for each person's hidden high potential,

undiscovered passions, etc., and offer new challenges and responsibilities as appropriate, so these people too can be stars, to the extent they are comfortable.

• Icebergs (deadwood)low performance / low potential

• Counsel, build trust, understand issues.• Identify hidden potential.• Facilitate better fitting roles; more direction,

purpose, opportunities, etc., linked with and perhaps dependent on performance improvement.

• Failing this, assist or enable move out of organization if best for all concerned.

• Stars (future leaders)high performance/ high potential

• Agree challenging work, projects, responsibilities, or stars are likely to leave.

• Give appropriate coaching, mentoring, training and career development.

• Explore and encourage leadership and role-model opportunities, to set and raise standards of other staff.

• Problem Children (renegades)low performance / high potential

• Confirm and acknowledge potential.• Counsel, build trust, understand issues.• Explore and agree ways to utilize and

develop identified potential via fitting tasks and responsibilities, linked with and perhaps dependent on performance improvement.

• Explore attachment to backbone or star mentors and coaches.

Performance Management Program Implementation

• Determine organization direction and HR strategy• Create customized PM systems and processes • Communication with managers and employees;

Change Management• Implementation training for managers and staff• Follow up at regular intervals, i.e. quarterly, semi-

annual, one year and each subsequent year• Adjust/realign as required – goals, criteria, purpose

Armstrong & Associates services

• Human Resources Management

• Strategic Planning

• Training and Development

• Compensation and Benefits

• Health and Safety

Client benefits from Armstrong & Associates services:

• Improved strategic focus• Reduced overhead• Increased efficiencies• Enhanced staff productivity• Increased profit• Reduced risk and conflict• Decreased employee turnover• Improved time management for leadership and staff

Q & A

Thanks!

Joanne MelansonTel: 416.697.0707

joanne@armstrongandassociates.ca