Performance Management Animation from Disruptive HR

Summary

Performance management is evolving, with a shift towards more effective, less time-consuming approaches. Rather than relying on traditional appraisal processes, companies are focusing on frequent, employee-led conversations and team-based goals. Examples include Starbucks' emphasis on ongoing check-ins without ratings, Eli Lilly's approach of empowering employees to manage their own performance, and coaching-focused managers who prioritize team support. These new trends are designed to foster better performance through simpler, more engaging processes that benefit both employees and organizations.

Takeaways

• 😀 Traditional annual performance appraisals are often seen as ineffective and time-consuming, yet organizations continue to invest in them.
• 😀 New trends in performance management are emerging that are faster, cost-effective, and actually improve performance.
• 😀 The focus is shifting from completing numerous forms to having meaningful conversations that drive performance.
• 😀 Starbucks has moved away from traditional performance appraisals, emphasizing regular check-ins and eliminating ratings and centralized forms.
• 😀 Modern performance management emphasizes team performance rather than individual achievements, with team objectives being the focus.
• 😀 Employees are encouraged to take control of their performance, seeking feedback and driving conversations with their managers as needed.
• 😀 Managers are encouraged to act as performance coaches, not assessors, by asking their teams weekly: 'What are you working on, and how can I help?'
• 😀 A process-light approach to performance management, focused on team dynamics and employee-led development, is becoming more popular.
• 😀 The key to successful performance management is to encourage consistent, constructive conversations rather than reliance on paperwork and ratings.
• 😀 Companies like Eli Lilly empower employees to manage their own performance and feedback, fostering a culture of ownership and growth.
• 😀 The new approach to performance management is about building a supportive, coaching culture where the focus is on employee development and team success.

Q & A

What is the general feeling about the annual performance appraisal process?

The general feeling is one of dread, with many believing that the process is ineffective. Despite this, companies continue to invest time, effort, and money into it.

Why do companies continue with the traditional performance appraisal process even if it is not widely believed to work?

Companies continue because performance management is still seen as a necessary part of organizational functioning, and there's a belief that investing in it can help drive performance, even if the traditional methods aren't effective.

What new trends are emerging in performance management?

New trends focus on approaches that are less time-consuming, cost-effective, and actually improve performance. These trends include frequent check-ins, team-based performance focus, employee-led initiatives, and a performance coach model for managers.

What is the first trend in performance management mentioned in the script?

The first trend is shifting from a traditional process to an approach. Instead of focusing on completing forms, the emphasis is on having great conversations between managers and employees.

How has Starbucks changed its approach to performance management?

Starbucks has eliminated ratings and centralized forms. Instead, they focus on frequent check-ins and great conversations between employees and managers.

What is the second trend in performance management discussed in the script?

The second trend is focusing on team performance rather than individual performance. This shift encourages the development of team objectives rather than individual goals.

What does the script suggest about focusing on team performance?

The script suggests that great work happens within teams, so performance management should focus on developing and achieving team objectives rather than just individual performance metrics.

What is the third trend in performance management that is mentioned?

The third trend is making performance management employee-led. At companies like Eli Lilly, employees take the initiative in managing their performance, owning their feedback, and ensuring that conversations with managers happen as needed.

How can managers support their teams in a more effective performance management approach?

Managers can support their teams by focusing on their role as performance coaches rather than performance assessors. A simple way to do this is by regularly asking their team members, 'What are you working on and how can I help?'

What is the overall approach to performance management recommended in the script?

The recommended approach is process-light, team-focused, and employee-led. It emphasizes managers asking insightful questions to support their teams rather than focusing on traditional assessments or ratings.

How does Disruptive HR help with changing performance management approaches?

Disruptive HR offers resources and insights to help organizations change their approach to performance management, making it more effective by focusing on conversations, team performance, and empowering employees.