Strategic Performance Management Creating Effective Organizations J.R. Hoyer

My Background Engineering and business degrees Most of my career has involved managing information technology organizations Diversity of organizational experiences –Four states –Five countries –Very large and very small organizations –Baby boomers and millennials –Highly technical and very non-technical –Stable and unstable Began working in the education sector in 2006

Some Things I Think I Know There is no single best way to design and implement strategic performance management –What works in one organization may fail miserably in another –Understanding the organizational culture is critical With that said, there is proven science here and a well defined and articulated process is essential Success is dependent strong leadership to: –bring the entire organization to a sense of shared purpose –ensure that every individual understands his/her personal contribution to the mission and objectives of the organization

Creating a High Performance Organization In 2002, I worked for Lucent Technologies. We were spinning off our semiconductor division into a new company called Agere Systems –17,000 employees, $4 billion in revenue In the process of talking to financial analysts and potential investors, a couple of quotes are memorable: –“When we look at the parking lot of your competitor at 6:00PM it is full of cars. Yours is empty.” –“Your employees want a dental plan. Your competitor’s employees want to drive Ferraris.” The analysts doubted our ability to perform

Creating a High Performance Organization Our company probably had a similar performance management process as our competitors. It might be tempting to dismiss the performance difference as being related to compensation or other rewards. Somehow, successful firms managed to get everyone to buy into a vision… people were excited about what they were a part of. There was a passion for excellence and success. How can we create a culture of passion, innovation, and drive that will result in high performance?

Basic Process Components of SPM I. Performance Planning  Use data analytics to identify opportunities (benchmarking)  Establish organizational goals  Define success metrics  Identify and execute communication plans II. Monitoring and Evaluating Performance  Clearly connect employee contributions to organizational objectives (goal translation)  Create clear performance evaluation criteria, based upon well-defined organizational and personal objectives  Evaluation timing and protocols

Goal Translation Process The leadership team creates high-level objectives with clearly defined metrics for success Departments and individuals are asked to identify how they will contribute to reaching these objectives and how they will measure that contribution The detailed plan is built, bottom up, through dialog This process allows team members to: –play to their strengths –clearly understand how they personally fit into the organization –have a level of control over how they will be evaluated –“buy-in” and commitment to the organizational objectives –create a system of accountability

Basic Process Components of SPM III. Employee Development  Get the right people in the right jobs. Play to strengths.  Clearly link professional development efforts to organizational and personal objectives  Potential appraisal and career planning IV. Recognition  Identify recognition and celebration activities associated with achievement of individual and organizational objectives

Focus on Strengths, not Weaknesses Gallup Research looked at thousands of organizations and interviewed over a million employees across organizations of varying levels of performance and effectiveness Standard surveys were used to judge perceptions, methods, attitudes, processes, etc. One question was most predictive in identifying high-performance organizations: “At work, do you have an opportunity to do what you do best every day?”

Focus on Strengths, not Weaknesses Find the best match between employee strengths organizational needs Don’t rely on a “deficit model” where we try to “fix” employee performance with training and development Performance reviews then become constructive and focused on contribution, rather than on shortcomings

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