The webinar provided an overview of AIG's transformation of its performance management system. It discussed how AIG's previous system focused too much on rankings and numbers, which negatively impacted employee morale. AIG then conducted extensive research, including employee focus groups and working with a behavioral economist. This informed the creation of a new system that focuses on both employees' contributions and how they worked, evaluated through self, peer and manager reviews. It aims to encourage collaboration over competition and have constructive conversations about development. AIG also created a volunteer community of over 1,200 employees to help spread the new approach.
Reframing Performance Management Conversations: AIGs Transformation Story
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Reframing
Performance
Management
Conversa6ons:
AIGs
Transforma6on
Story
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Julia
Smith
Global
Head
of
People
Excellence
AIG
Reframing
Performance
Management
Conversa6ons:
AIGs
Transforma6on
Story
11. 1111
Contents
§ Our Journey
– How we got here
§ Details
– How it works
§ Volunteer Community
– How our employees are leading the change
12. 1212
§ Global financial crisis
§ AIG under tremendous public scrutiny
§ Urgent need to demonstrate to shareholders that we could differentiate
performance
§ Implemented a Relative Performance Ranking (RPR) system
Our story begins …
The Good The Bad The Ugly
Demonstrated to our
shareholders our ability
to differentiate pay by
performance
In some cases, it was
the first time an
employee got honest
feedback on their
performance
Focus on “paper &
process”
Lack of manager
ownership (“HR made
me do it”)
Enabled bad behavior by
only measuring the
“what”
Negative impact on
employee moral
13. 1313
§ Began by listening to employees
– Conducted virtual focus groups – ThinkTank.net
– Employees at every level
– Employees in every location
§ Employees shared ideas on how to make AIG a better place to work
– Inspired to do their best work
– Real time feedback and constructive coaching
– Transformative development opportunities
A deep belief that there was a better way
14. 1414
§ Researched practices at hundreds of companies
– What are you doing?
– Why are you doing that?
– How is it working out for you?
§ Worked closely with Danny Kahneman
– Nobel Prize Winning Behavioral Economist
– Outside HR
§ Took what we learned and conducted a mid-year pilot on over 3,000 leaders
to test our ideas
§ And finally, we refined and implemented across our global population, at all
levels of the organization
We wanted to learn from the best and find the
right solution for AIG
15. 1515
§ Over 90% of employees said useful for performing better
§ 86% said useful for improving relationship with their manager
The results
16. 1616
Our solution is grounded in research &
neuroscience
Two Distinct Areas of the Brain
17. 1717
Concept is simple
How can we identify and shut down
all of the triggers of ‘fight or flight’
so that we can open the door to
trust and collaboration
18. 1818
§ Holistic view of employee
§ Multiple perspectives:
– Employee Self Review
– Upward Feedback
– Matrix Manager Review
– Direct Manager Review
§ Evaluate both the “what” and the “how”
High level overview
21. 2121
The “What”
§ The manager evaluates the employee on TWO things:
1. The employee’s performance on his/her own goals
2. If the employee contributed to the achievement of goals outside his/her
own area of responsibility
§ Recognizes that the most important things that we accomplish at AIG; we
accomplish as teams
Reward collaboration.
Discourage competition.
22. Identified ‘18 Behaviors that Matter’ at AIG
22
The “How”
… able to anticipate problems
… able to get things done in the organization
… an effective leader
… applied the right level of detail
… articulate and clear
… collaborative and helpful
… energetic and engaged
… focused in stressful situations
… focused on what matters most
… generous in sharing credit
… good at building relationships
… open to new ways of doing things
… reliable in meeting commitments
… respected by clients
… supportive of diversity
… the source of many good ideas
… thoughtful and decisive
… willing to admit mistakes
1. Frame in the positive
2. Use everyday language
3. Reinforce AIG values
4. Let evolve
25. 25
It’s All About The Conversation
Conversation guide
is generated by
system to lead both
manager and
employee through
forward looking,
constructive
conversation.
Available in advance
so employee has
time to absorb the
feedback and is
ready for a
collaborative dialog.
26. 26
It’s All About The Conversation
Conversational
excellence training
for both managers
and employees
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