This document provides an overview of performance management. It begins with an agenda that includes objectives and introductions, why performance management is important, the performance management framework, the process, tools and resources, getting started, and next steps. It then discusses setting clear objectives and goals, identifying key result areas, agreeing on key performance indicators with supervisors, and setting targets. The benefits of performance management for both individuals and organizations are described. A three-phase performance management cycle of plan, focus, and review is outlined. Tools and resources to support the process are listed, along with tips for getting started and overcoming challenges. The presentation emphasizes linking individual and corporate goals to drive high performance results.
4. Agenda
Objectives and Introductions
Why Performance Management
Performance Management Framework
Performance Management Process
Tools and Resources
Getting Started
Next Steps
4
5. Objectives of the session
Introduce staff Performance planning and
appraisal systems
Set clear objectives and goals
Identify key result areas
Agree on the key performance indicators
with your superior
Set performance targets for the next
period
5
8. #5
PERFORMANCE IS A CONTINUOUS PROCESS
STRATEGY
60% of organizations 85% of management
don’t link strategy & update the test the teams spend less than
budgets strategy
Strategic Learning Loop
hypotheses one hour per month on
strategy issues
BALANCED
SCORECARD
BUDGET
78% of organizations lock
budgets to an annual cycle reporting 92% of organizations
funding Management Control Loop
20% of organizations take do not report on lead
more than 16 weeks to indicators
prepare a budget PERFORMANCE
Input Initiatives & Programs Output
(Resources) (Results)
9. #4 CASCADING METRICS AT ALL LEVELS
CORP
SBU
Top-Down “Bridging • EDUCATION Bottom-Up Process to
Process” To Share the Internalize & Execute
Strategy & Align the the Strategy
Workforce • PERSONAL GOAL
ALIGNMENT
• BALANCED PAYCHECKS
The Strategy Focused Workforce
10. Principles of the Strategy Focused Organization:
#3
LINK AND ALIGN THE ORGANIZATION AROUND ITS STRATEGY
#3.
#1. Each Support Unit develops a
A Corporate Scorecard defines plan and BSC for “best practice”
overall strategic priorities on a sharing to create synergies across
Balanced Scorecard (BSC). Subordinate Commands.
CORPORATE AMEDD
CORPORATE SCORECARD Major Subordinate Commands SUPPORT UNITS EXTERNAL PARTNERS
(Shared Strategic Agenda)
SBU SBU SBU SBU
Themes Measures
A B C D
1. Financial Growth xxx • Finance
2. Delight the Consumer xxx
• Marketing • Customer Scorecards
3. Win-Win Relationships xxx
• Distribution • Distributor Scorecard
4. Safe & Reliable xxx
• Procurement • Joint Venture Scorecard
5. Competitive Supplier xxx
• Purchasing • Vendor Scorecard
6. Good Neighbor xxx
• Safety • New Venture Scorecard
7. Motivated & Prepared xxx xx xx xx xx
8. Quality xxx • Human Resources • Outsourcer Scorecard
• Information Technology
#2.
Each Division develops a
BSC consistent with corporate
strategic BSC.
Strategies Are Executed Through Business Units. The Strategies of the Business Units Must Be
Integrated If Organization Purpose and Synergies Are to Be Achieved.
11. Public Service Goals and Renewal
To develop a
performance
Effective Proactive and management
Visionary
People
Strategy Leadership system that:
Progressive
Employee-
To achieve Performance • supports employees
excellence in Focused
Employer
Relations public service Workplace in achieving their
performance &
Learning and
Flexible and
Motivating
development goals
Innovative
Work
Organization
Environment
• aligns their goals
with those of the
organization. 11
12. Performance management
supports work satisfaction
“Nine out of ten employees, from all
generations, say they want:
Work that gives them personal satisfaction
Work that is valued by their employer and
their customer
Work with an employer who understands that
personal lives are important too”
Ranstad: 2001 Employee Review: Insights into Workforce
12
13. Performance management aligns
personal & corporate goals
“Employees want their organization to involve
them more in the organization’s direction.
They want to know how they can make a
contribution to the organization’s mission,
goals and strategy.
Employees want to know how their position fits
into the big picture, and the part that will play
on the team”
Aon Consulting Canada@Work: Workforce commitment Report 2000
13
14. Shifts in Performance Management
PAST NOW
Appraisal Plan, Focus and Review
Manager driven Employee initiated and
managed
Backward looking Forward looking
Once per year 1-2 times, ongoing process
Tasks (job description) Results/Outcomes linked to
Service Plan, team goals
Minimal personal Development &
development competencies integral
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15. Do goals and measures improve
performance?
Harvard study – 7x more likely to achieve goals if they
are set and written down
Boston Consulting Group/Hewitt Associates: "companies
with year-round performance systems significantly
outperformed competitors lacking such systems in
financial measures such as return on equity,
stockholder return, sales growth and cash flow."
US HR Scorecard survey of the top 10% and bottom 10%
performing firms - “survey results clearly show that there
is a direct correlation between a strong human
relations strategy and positive business results.”
15
17. Principles in performance
management
Employee initiated and managed
Forward looking
Incorporates a plan, focus and review cycle
Results-oriented and linked to Service Plan
and team goals
Personal development & competencies key
components
Employee-supervisor dialogue is key to
success
17
19. Organizational benefits of
performance management
Common approach to setting goals and
reviewing performance & development
Aligning individual plans with corp goals
Ongoing dialogue between employees and
supervisors on performance & development
Links to corporate learning & development,
career & succession planning, rewards &
recognition
19
20. Your roles in
performance management
Understand:
How your work contributes to set goals
Key competencies required to be successful
in your job
What you need to develop in order to be
successful
How your work/performance will be measured
and recognized
20
21. performance planning is the foundation
Strategic
Planning
Service
Planning
Service
Planning
Individual
Performance 21
Planning
22. Objectives of EPDP
Develop shared expectations between
employees and supervisors on key
performance and development goals
Establish specific and measurable individual
goals that contribute to the set goals
Facilitate ongoing personal development and
career planning
Provide regular feedback and coaching on
performance
22
23. Performance Mgt– Three Phases
Plan
•Goal setting
•Competencies
•development
Review Focus
•Employee and •Dialogue and
Supervisor review realigning goals as
needed
23
24. Employee Performance and
Development Plan
Employee Performance
and Development Plan What you do
• Top 3 to 8 goals
Key Work Goals
• List key goals and objectives/
strategies/ measures for each
How you do it
• Top 2 to 3 goals
• List key competencies most
critical to your success and how
Key Competencies you will focus on them
What you will learn
Personal Learning Plan • Areas of personal
development
• How you will improve your24
skills
25. Phase I – Performance Plan
Objective: Establish your goals and plan for the
upcoming year with your superior
Review Ministry, Division and Work Unit plans
Identify key work goals
Identify key competencies
Develop personal learning plan
Meet with your supervisor
Sign off plan
25
26. Developing goals &
Selecting competencies
Goals Competencies
Specific Public Service
– Teamwork &
Measurable cooperation
Achievable – Service Orientation
– Results orientation
Reasonable
Leadership
Timely
26
27. Performance Planning brings clarity to ensure
we are heading in the right direction
Say…What’s a
mountain goat doing
way up here in a
cloud bank?”
27
28. Phase II - Focus
Objective: Assess if your plan is on track
and realign work goals as appropriate.
Review your EPDP
Meet with your supervisor
Update your plan as required
28
29. Performance focusing helps ensure we
are on track with your plan
“Well, this is just
going from bad to
worse.”
29
30. Phase III – performance appraisal
Objective: Discuss and share feedback
on the successes and challenges in
achieving the goals over the past year
Compare results against target
Meet with your supervisor to discuss
results
Sign off review
30
32. A Complete Metrics is a Program for
Action
Strategy Map
Strategic Theme:
Strategic Theme:
Objectives Measures Targets Initiatives
Operations Efficiency
Operating Excellence
Profits and
Financial RONA • Profitability • 30% CAGR
Grow
Fewer planes • Grow Revenues • 20% CAGR
Revenues
• Fewer planes • 5% CAGR
Attract &
Customer Retain More • More Customers • # Customers • 12% growth •Customer
Customers • Flight is on -time • FAA On Time • Ranked #1 loyalty
On-time Lowest • Lowest prices Arrival Rating • Ranked #1 program
Service prices • Market Survey • Quality
management
Internal • On Ground Time • 30 Minutes • Cycle time
• Fast ground
Fast ground turnaround • On-Time • 90% optimization
turnaround Departure
Learning • Ground crew • % Ground crew • yr. 1 70% • Ground crew
alignment trained yr. 3 90% training
Ground crew yr. 5 100%
alignment • % Ground crew • ESOP
stockholders
33. Metric Terminology
(Southwest Airlines Example)
Strategy Map
Strategic Theme: Objectives: Measures: Targets: Initiatives:
Operating Efficiency What the How success The level of Key action
Profits and strategy is or failure performance programs
Financial RONA
trying to (performance) or rate of required to
Grow achieve against improvement achieve
Fewer planes
Revenues objectives is needed targets
Attract & monitored
Customer Retain More
Customers
On-time Lowest
Service prices
Internal Objectives Measures Targets Initiatives
Fast ground • On Ground Time • 30 Minutes • Cycle time
turnaround
• Fast ground
turnaround • On-Time • 90% optimization
Departure
Learning
Ground crew
alignment
34. Optional Elements - EPDP
Recognizing Past Performance
Service Plan Reference
Career Plan (i.e. where you want to go
in the future)
Supervisor Commitments (i.e. resource
and/or support needs)
Additional accomplishments
34
35. Performance Management Cycle
April November April
Plan Focus Review/Plan
EPDP 2005/06 EPDP REVIEW 2005/06
Key Work Goals Key Work Goals
EPDP 2006/07
Key Work Goals
360 degree
Key Competencies feedback Key Competencies
(optional)
Personal Learning Personal
Plan
Key Competencies
Personal Learning
35
Plan
36. Integrated performance management
framework - elements & linkages
Gov’t Strategic Plan,
Ministry Plan, Branch Plan
Individual Start of year
Performance
Management
Plan
Review • Goal Setting Corporate
Outcomes Opportunities
•Recognition
Review •Career Plan
mechanisms
(e.g.informal and • Results Focus •High Potential
formal rewards and • Feedback to • Progress and •Succession Plan
recognition,
development, base develop new realignment •Learning Needs
pay, pay for
En plan g & Courses
performance do oin
fy ng
ea O 36
r
Competencies
38. Performance On-line
Web-based interactive tool
Supports employee performance &
development planning
Other resources include:
– Competency development
– Building self-awareness
– Team building
– Career planning
38
40. Challenges to
performance management
Lack of current divisional/branch plan
Belief that a job description is required
Competencies not established for the job
Succinctly identifying 3-8 key goals
Identifying ‘measurable’ measures/targets
Measuring advice and support roles
Linking high level goals to daily work
Too busy to develop plan and meet with
supervisor
It’s time intensive and hard to do
40
41. Practicing Goal Setting
Identify the 3-8 key areas your are expected
to get results in your job
Practice writing a goal statement with
objectives, strategies and measures
– Measures e.g.: time, quality, quantity, cost
What are the key competencies required for
your job?
What can you develop/learn in the upcoming
year?
41
42. Next steps
Review the Guidelines
Develop a draft EPDP
Book a meeting with your supervisor to
discuss and finalize
42
Our agenda: Objectives and Introductions Why Performance Management is important The Performance Management Framework for the BC public service What the EPDP Process looks like The Tools and Resources available to assist us all Getting Started, and Next Steps Going through this will take about 2 hours. This will be a participatory session. I’ll be presenting information to you and asking questions. Please feel free to ask questions or make comments as we’re working through this material.
There are two objectives for this session: To introduce the Employee Performance and Development Plan process to you, and To help you get started on using it. After this session, you will be asked to work on your own EPDP. So, please make sure you ask about anything that is unclear, as we go along.
Before we talk about ‘how’ to do performance management, let’s just spend a couple of minutes on why this is important and why a government-wide performance management system is being put in place.
There were several factors that led to the development of this Performance Management process for government. These included: The creation of a Government Strategic Plan Public Service Renewal Research Results both within and outside Government, and Trends I’m going to review each of these briefly …
These six goals formed the basis of Public Service Renewal and are now in Government’s Corporate Human Resource Plan They were developed based on an extensive consultation process with employees. These goals are designed to contribute to the vision of ‘achieving excellence in public service’. What we’re discussing today supports the ‘Performance Focused Workplace’ goal.
And, here’s what research generally is telling us: Nine out of ten employees, from all generations, say they want: Work that gives them personal satisfaction Work that is valued by their employer and their customer Work with an employer who understands that personal lives are important too My guess is that this is pretty consistent with what all of us would like, too.
And other research has confirmed that: Employees want their organization to involve them more in the organization’s direction. They want to know how they can make a contribution to the organization’s mission, goals and strategy. Employees want to know how their position fits into the big picture, and the part that will play on the team. Knowing how your position fits into the big picture is what performance management is about. It helps to align personal and corporate goals.
Looking at the trends, performance management today may be different from what you have experienced in the past. As there have been Strategic Shifts in the ministries, there has also been a strategic shift in Employee Performance Management. In the past, we did appraisals, and now we look at on ongoing cycle of Plan Focus Review The key differences are.. (outline bullets on right hand side)
And, if you’re still wondering if this is a good thing to do and whether it really does make a difference, here’s some further research to support performance management and establishing goals and measures. A recent Harvard study shows that we are 7x more likely to achieve goals if they are set and written down A Boston Consulting Group called Hewitt Associates did research that showed that "companies with year-round performance systems significantly outperformed competitors lacking such systems in financial measures such as return on equity, stockholder return, sales growth and cash flow." And, a US human resource scorecard survey of the top 10% and bottom 10% performing firms showed that there is a direct correlation between a strong human relations strategy and positive business results.
Let’s focus specifically now on the Employee Performance and Development Plan or EPDP performance management process. It was developed by a cross ministry team specifically for the BC public service. The EPDP process has been designed to be flexible to meet our individual Ministry needs. At the same time, it has consistent foundations or principles for all of Government.
These are the principles the process is based on: No one understands your job better than you. That’s why having an employee-initiated performance management process is successful and practical. As your manager/supervisor, my job moves from putting together a summary of what you accomplished last year to coaching for the upcoming year and providing input and feedback on your individual plans and results. The emphasis has shifted to being on the dialogue that takes place between employees and supervisors. The process is forward looking to focus on getting the results we want to achieve. The process includes developing a plan, focusing or revisiting that plan and then reviewing it. Individual plans are to be results-oriented and linked to our Ministry Service Plan and our goals as a team. The process is also about determining our individual development needs and the competencies we need to be building And, as I said earlier, the key to the whole process is the dialogue that occurs between us.
Just based on those principles, what do you see as the benefits for the Ministry and Government as a whole, and for each of us individually? (You can note their responses on a flipchart, if available, for further/later reference.)
Here’s some benefits that have been defined for the organization as a whole. (Note, where any have already been identified in the earlier discussion.) We will have a common approach to setting goals and reviewing employee performance & development We will be aligning our individual plans and goals with ministry goals There will be ongoing dialogue between employees and supervisors on their performance & development plans This process links to corporate learning & development, career & succession planning,and rewards & recognition.
And, here’s some that were identified for us as individuals. (Again, acknowledging where some have already been been described.) Specifically, you will have the opportunity to understand: How your work contributes to and fits with the ministry’s goals What key competencies are needed to be successful in your job What you need to develop to build your career How your work performance will be measured and recognized
Individual performance planning is the foundation to achieving our overall goal for government. Ideally, all of these plans are developed and timed to cascade down to help us in doing our individual planning. Ministries are working hard to make this happen. However, with all of the changes Government is going through, rarely does everything synchronize perfectly here, or in other organizations. Even if we don’t have all of these plans in place to support developing our own EPDPs, we should still have a personal plan to highlight the work that we will achieve. Even with no other plans, individual plans still form the foundation for getting things done. (Be prepared at this point to share and discuss what plans exist within your Ministry.)
Consistent with the benefits that have been identified, the objectives of EPDP are to ….. Develop shared expectations between employees and supervisors on key performance and development goals Establish specific and measurable individual goals that contribute to ministry goals Facilitate ongoing personal development and career planning, and to Provide regular opportunities for feedback and coaching on performance
The EPDP process consists of 3 key phases: Planning - is about setting goals for our work (what we’ll accomplish), competencies (how we will go about accomplishing our work goals) and development (what skills we’ll work on developing). Ideally, this phase is done at the start of the fiscal year to coincide with our ministry’s planning cycle. However, we have the flexibility to decide what starting point works best for our work unit. Focusing - is about revisiting our plan with our supervisor and realigning our goals as needed on an ongoing basis throughout the year. We should aim to do this at least at the mid-year point. Reviewing - where together with our supervisor, we review performance.
The Employee Performance and Development Plan has three main sections: - Work goals, key competencies and a personal learning plan Work goals are about ‘what we do’. Typically you will have 3-8 of your top goals with objectives, strategies and measures for each. Setting work goals is about determining the priority areas you will focus on in your work. Try to group them according to key areas of our work such as strategy/planning, operational, project and people. Key Competencies are about ‘how we do it’. While there are many competencies we need for our job, the EPDP has us focus on 2-3 that are critical to our success, that we will pay particular attention to. Note: at a minimum refer staff to the Core public service competencies on the Public Service Agency website at gww.bcpublicservice.gov.bc.ca/competencies/ A Personal Learning Plan is about ‘what we will learn’. This is not about training courses, but what information and skills will be key to your job and your career. For example, it may include items such as interviewing 3 senior leaders to understand more about 3P’s - public private partnerships. Or making a presentation to a senior team.
Let’s take a look at Phase I – writing your Performance Plan. This is what you are working on right now. The objective is to establish your priorities and plan for the upcoming year. More details on this phase can be found in your guidebook on page 4. The essential steps you will take are: Review Ministry, Division and Work Unit plans (talk about where these are available to employees) Identify key work goals. We’re going to talk a little more about what these and the next one… Identify key competencies - …look like: Develop a personal learning plan that identifies what action you will take to further develop your skills Meet with your supervisor, review, finalize and agree on the plan, and lastly (talk about the need to ensure there is mutual agreement on the priorities outlined in the plan. It is the supervisor's responsibility to ensure all staff are focused on the priority areas for the organization) Sign off on the plan Employees are expected to take the initiative to book the performance meetings with their supervisor. As your supervisor/manager, it is my responsibility to ensure that I make the time for this.
Let’s look more closely at two areas of the plan – goals and behavioural competencies. Goals Identify three to eight key work goals that will have the greatest impact on achieving our work unit and organization goals. These goals should be SMART meaning - specific, measurable, achievable, realistic and timely. (Ask for examples of SMART work goals specific to your group and note them on a flipchart for all to see) Behavioural Competencies There are three core competencies for all public service positions - teamwork & cooperation, service orientation and results orientation - and five leadership competencies for managers and supervisors. In this section of the plan, identify the key competencies that you think you will need to focus on to achieve your work goals and how you will demonstrate these competencies during the year. Remember, behavioural competencies describe how we go about doing our job, not what we do in our job. If the core competencies do not fit with work goals for this year, look through the Competency Dictionary on the website to see if others fit more with your work goals. The website address is gww.bcpublicservice.gov.bc.ca/competencies/ Let’s look at a few examples. (Ask people to identify some ways they could demonstrate the public service competencies.)
Ultimately, phase 1 of the EPDP process should ensure we are heading in the right direction for the upcoming year. (read caption)
In Phase II - Performance Focus, the objective is to assess if your plan is on track and realign as appropriate. More details on this phase can be found in your guidebook on page 5. The steps you will take are: …. Review your EPDP. Take the time to think about whether there are any supports you need to achieve your work goals from others or your supervisor Meet with your supervisor to discuss progress and the need for any changes, and Update your plan as required Again, individual employees should take the initiative to book time with their supervisor, but as a supervisor, I have to ensure I have met with all of you. In this phase, you may need to redraft parts of your plan. If, for example, there have been fundamental changes in the team’s or ministry’s goals and direction, or if the requirements of your job have changed.
Phase II - Performance Focusing helps to ensure you are on track with your plan, and gives you an opportunity to receive any coaching or support that may be required. (read caption)
In Phase III - Performance Review, the objective is to discuss and share feedback on the successes and challenges in achieving the goals over the past year. More details on this phase can be found in your guidebook on page 6. The steps you will take are: Summarize your results Meet with your supervisor to discuss those results, and Sign off on the review You will want to summarize both your accomplishments and shortfalls here. The manager/supervisor adds their own review of your performance. You may also want to use this meeting to get input for your plan for the next year. While it is you and your supervisor’s choice whether or not to do a review and plan for the next year together, more commonly the, review is done first, and then a second meeting for the next year’s EPDP is held.
Phase III - Performance Reviewing is about summarizing your accomplishments, assessing how you have done, and getting feedback from your supervisor on your overall results. (read caption)
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In addition to the core elements of the EPDP, there are several other sections we can choose to add. For example, if you have had no previous reviews and would like to establish a starting point for reference, you may wish to complete Phase III to recognize past performance. It may also be critical to specifically reference elements of your ministry service plan or team plan. Including a career plan is also recommended, although you may want to include this in your next year’s plan once you have had a chance to work with the core elements of the EPDP. If you need specific support from your supervisor or other teams, you may want to reference it. And we would always include additional accomplishments, whether or not they were part of your original plan.
So how does the overall cycle work? This is the typical cycle -- develop your plan in March/April, Focus in November/December, and review and plan again in March/April. In order to support linkages in plans throughout the organization and to provide solid performance measures and results in your plan, it helps to tie it to the fiscal year cycle. Performance management research shows that best results are achieved this way. 360 degree feedback surveys can also be part of the cycle. This survey is currently available for senior managers across the public service. If executive teams do the survey, it’s recommended they are conducted mid-year. This allows participants to focus on ‘how’ they are doing things versus ‘what’. It also allows participants to build in action items into their next year’s plan.
To this point, we have focused on the individual Performance Management process. But it is important to know that this is just part of a larger integrated performance management framework. Our individual plans should link to the government strategic plan, ministry plan and branch plan. Competencies should provide a foundation for ‘how’ we accomplish our goals. The development part of our plan should provide information to support government wide training, succession planning, etc. And the reviewing phase should support informal and formal recognition processes.
There are a number of tools and resources to assist you. In addition to the guide book you have and the sample forms, there are a number of resources on the Public Service Agency website for your reference. www.bcpublicservice.ca/performance_management.htm
(Use this slide if iPlan is available in your ministry) iPlan is a web-based tool that’s available for us to use for managing the EPDP process. In addition to taking you through the process, its website includes tools and information on competency development, building self-awareness, team building and career planning. To use iPlan. . . (insert how to access info for your ministry)
Having gone through the process, let’s focus specifically on getting started by discussing first of all what the challenges are. (Ask people what they see as the challenges to getting started.)
Performance management is not easy. Here are some areas that are common challenges, some of which you’ve already identified. Anyone can and should complete a plan regardless whether or not they have a divisional/team plan, or if their job description is current or even exists. In many cases, the performance plan becomes a much more reliable description of your priority work. If competencies do not exist for your role, identify the ones you feel are key to your position (see the competency dictionary) It is important to group your activities into 3-8 key work goals. It is confusing to laundry list the many activities you have. Identifying clear and practical measures can be a real challenge, especially for advice and support roles. Consider what success would look like (i.e. all customers are satisfied with service received) and identify ways to validate it. For example, we can randomly check with a few customers regarding service. Creating tight linkages to broader plans can be time consuming and restrictive. Do what feels right. Time is the biggest challenge people face. Remember, it is also the most important part of your job. It gets easier to do every time you do it.
To help get started, let’s actually do some of the pieces of the EPDP. Hand out examples from Employee Performance Management website at www.bcpublicservice.ca/performance_management.htm Give people 20 minutes to work through each section. Ask for people’s examples Review and discuss as a group
So, it is now up to use to get started. Here’s some recommended next steps.
Remember, performance planning leads to high performance results. We have a lot of strength, experience and skill on our team and know that this process will help us highlight how we contribute to a strong and progressive organization. Does anyone have any questions that they would like to bring up? Thank you everyone for your thoughtful participation and look forward to meeting with each of you about your work and personal development goals!