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Performance evaluation in IT company

This is an overview of performance evaluation process in IT company. History, current and plans for the future.

Created for HR Cafe (http://dou.ua/calendar/1280/) in Feb 2012.

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Performance evaluation in IT company

  1. 1. Building performance reviewprocess in IT companyCQG UkraineDmitry Guyvoronsky
  2. 2. BackgroundWho? What? Why?
  3. 3. About usProprietary solutions for financial trading industry Client/server software High quality and performance requirementsOwn product, almost no external customersLong-term employment (5+ years on average)
  4. 4. HistoryProduct development expansion 1980: CQG founded in Denver (2 employees) 1998: Moscow office (50+) 2004: Kiev, Samara, Yerevan (120+) 2006: Zelenograd (250+)
  5. 5. Employees over time(very approximately)
  6. 6. Present day6 development offices, 15 offices worldwide,300+ developers, 500+ employees totalAverage employee spent 5+ years in company, somespent 15+ yrs100+ projects / yearWe love numbers - and collect a lot of metrics LOCs, defects, code review rate, D/density, time distribution
  7. 7. Performance evaluationHistory
  8. 8. 1980-1990 The beginning10-50 employees, “family business”Single office, everyone knows everyoneAd-hoc performance management No formal process No defined expectations
  9. 9. 1990-2003 Sizing up60-120 employees2 PD offices, distributed developmentAnnual performance review w/ manager Basic process (paper-form feedbacks, Word documents, emails, set of questions) No software tools
  10. 10. 2004-2007 Rapid growth120-350 employees6 officesSemi-annual performance review w/ different managers Formally defined process (v1.0) For everybody (not only PD) External software - 360degree, SuccessFactors, iVantage
  11. 11. Process v1.0Roles defined Developer, Team Lead, Process Coach, Project Manager, System Owner, Resource Director, etc.Formal job description for each roleSuccess criteria for each role
  12. 12. Process v1.0Core competencies defined for each role: Developer: drive for results, quantity, quality, functional skills, timeliness Team Lead: building effective teams, motivating others, organizing Process Coach: customer focus, presentation skills Project Manager: dealing with ambiguity, negotiating, informing, ...
  13. 13. Define: Competence(y)Ability of an individual to perform a job properly. Acompetency is a set of defined behaviors that provide astructured guide enabling the identification, evaluation anddevelopment of the behaviors in individual employees.As defined, the term "competence" first appeared 1970article titled "Planning the Executive Development Program"Has since been popularized by McBer & Company(currently the "Hay Group") colleague Richard Boyatzis andmany others
  14. 14. Competency exampleBUILDS EFFECTIVE TEAMS: Blends people into teams whenneeded; creates strong morale and spirit in his/her team; shareswins and successes; fosters open dialogue; lets people finish andbe responsible for their work; defines success in terms of thewhole team; creates a feeling of belonging in the team.Unskilled: Doesn’t assemble, build or manage in a team fashion Doesn’t create a common mindset or common challenge; rewards and compliments individuals, not the team Doesn’t manage in a way that builds team morale or energy ...
  15. 15. Process v1.0 Team Process Project Self Dev Lead Coach Manager Dev + Team + + + LeadProcess + + + CoachProject + + +Manager
  16. 16. Process v1.0Semi-annual cycle, May/DecExternal tools to collect and process feedback2 weeks to collect/process feedback1 month for performance talks
  17. 17. Process v1.0Pros Defined process known to everybody Success criteria for each role Documented performance historyCons “Shtirlitz syndrome” (only last project matters) No correlation with project metrics No direct comparison External tools suck at large
  18. 18. 2008-2012 Stable success350-500+ employees6 offices, more sales/support offices worldwideSemi-annual performance review w/ different managers Formally defined process (v2.0) External tools partially replaced with internal tools Grades for developers (QA, SysAdmins, ...) Product/department goals formally defined
  19. 19. Process v2.0 Additional roles defined (Business Analyst, ...) Same competencies-based approach
  20. 20. Process v2.0 New: Project-based performance feedback 2 weeks after project went to production Collected for whole project team Discussed and corrected at project postmortem (metrics could be included)
  21. 21. Process v2.0 Semi-annual feedback form refined Competencies now include numeric ratings along with free-form text Switched from external tool to Excel forms for pilot project
  22. 22. Process v2.0 Grades introduced Junior/Regular/Senior/Lead Developer/AT engineer/Sysadm/SCM engineer Grade depends on Technical skills Leadership Process maturity English level Grades help define roadmap for personal development
  23. 23. Process v2.0Pros Defined process known to everybody Success criteria for each role Documented performance history Short-term (project-based) + long-term (6 months) feedback = more complete feedbacks Ratings = analytics & reporting becomes possible (aggregated) Grades define requirements for personal/professional growthCons Still lacking correlation with project metrics (remember, we love numbers!) Excel automation sucks too
  24. 24. What’s next?Sky is the limit
  25. 25. 2012 and beyondReplace ext. tools with in-house solution Web-based Integrated with project database Previous history imported Easy to use on daily basisUse KPI/metrics for annual performance evaluationwhere appropriate - Team Leads, Project Managers,Business Drivers, ...
  26. 26. Questions?http://about.me/dreamiurg@dreamiurg

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