You're not a real HR professional unless you've complained about performance management systems and processes. We all go to sleep dreaming of a world where there were no performance ratings, especially on evenings where we have no Game of Thrones to dream about.
@sarahmillerau @MJCarty @DamonKlotz @HassanahRudd A world with no Perf ratings, but still Perf rated through pay decisions? Great topic!
— Mark Souter (@MarkSouterLive) May 21, 2015
We talk about it all the time - we bag the systems, but what is the solution? What would this magical world look like?
There are a few nifty examples around.
Exhibit A. Atlassian’s Big Experiment
Atlassian
are a mid-sized Australian technology company who have received corporate
attention for “sacking the performance review”. Atlassian
focus their efforts on a more regular, conversational approach to performance
management. They have a monthly strategic topic to form the basis of a somewhat
informal discussion. These conversations still hold people accountable for
performance, however to not do it in the form of a “forced” rating.
They
also provide solutions-focussed and strengths-based coaching to managers to
assist them with this change.
Atlassian's approach to performance reviews is further outlined here:
Exhibit B. Adobe's Performance System
Adobe’s
Performance System focusses on the notion of “check-ins”, smaller and more
regular conversations about performance. It
is based around the three concepts Expectations, Feedback, and Growth and Development.
Adobe’s
subtraction experiment appears to be having the desired effect. It is reducing
unnecessary cognitive load, while at the same time, nudging managers to engage
more often and more candidly with direct reports to help them develop their
skills and plan their careers. The new system amplifies also the feeling that
“I own the place, and the place owns me” – because it places the onus on
managers and their employees to make regular adjustments that improve
individual and team performance and to be accountable for such.
Adobe's performance system is further outlined here:
Exhibit C. Netflix – A Performance Culture
“Hire,
reward, and tolerate only fully formed adults,” writes Patty McCord in the Harvard Business Review. “The best
thing you can do for employees — a perk better than foosball or free sushi — is
hire only “A” players to work alongside them. Excellent colleagues trump
everything else.”
McCord’s
article, “How
Netflix Reinvented HR,” details the thinking behind such formerly radical notions as the
still-edgy notion that Performance Improvement Plans and annual reviews are
pointless, if not counterproductive.
Netflix's approach went beyond just performance management. It went to the heart of their entire culture. A modified
summary by John Zappe, ERE.net, can be found here:
Are there any other good examples, people? What about in more (with all due respect) mundane organisations, that is, not technology companies? Do any government departments have good systems? Do any banks have good systems? Do any large retailers have good systems?
So many questions.
OK HR folk, it's our turn to go from perennial performance management system critics to performance management system enablers!
The chat will be Thursday 4 June starting at 7pm AEST. Now we're in daylight savings time, find your city (or corresponding time zone) below, for the starting time:
7:00pm - Sydney, Canberra, Hobart, Melbourne (AEST)
6:00pm - Brisbane (AEST)
5:30pm - Adelaide, Darwin (ACST)
4:00pm - Perth (AWST)
We know it's such an exciting topic that our international people will want to join too! To help, we've done the maths for you - 8:00pm in Auckland, 4:00pm in Singapore, 8:00am in London, 5:00am in New York and 2:00am in LA (we know you're keen!).
Just make sure to pop a #OzHR in your tweet so we can see it, and be sure to invite others along for the ride!
The questions for this topic are:
1. What would a world without performance ratings look like? What would people in the workplace observe and feel?
2. How would managers, peers, subordinates engage with each other around performance if we got rid of outdated systems?
3. Have you seen it done well? What key elements help manage/grow/develop performance?
4. So... how does the HR profession start to turn the performance management beast around? What is the first step in taking these ideas and making them action?
3. Have you seen it done well? What key elements help manage/grow/develop performance?
4. So... how does the HR profession start to turn the performance management beast around? What is the first step in taking these ideas and making them action?
