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Designing and Implementing
Created by Laurie Armstrong
Managing Director/ Human Resources Advisor
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,
• 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
Success / ROI /
Future Leaders /
Benefits of Effective Performance Management
• Identify goals, challenges, strengths, gaps in
• Identify gaps in knowledge & skills – Training &
Development / Recruiting
• Improve employee and team engagement /
• Identify top performers – reward & retain
• Identify poor performers – correction or exit
HR Elements and Performance Management
• Align to
• Career progression
• Coaching; Mentors
• Reward &
• Attract & hire best
• Job Descriptions
• Culture; Fit
• Business Plan;
360 Feedback HR Strategy Recruitment
2 Performance Management Models
1. Development Driven Model
2. Competitive Assessment Model
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
• 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, set and raise standards of
• 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
Performance Management Program
• Determine organization direction and HR strategy
• Create customized PM systems and processes
• Communication with managers and employees;
• 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
• Business and Career Coaching
• Training and Development
• Compensation and Benefits
• Health and Safety
Armstrong & Associates
• 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