Measuring Success Beyond performance ratings Jennifer Erickson Director, Dell IT People development

Dell - Restricted - Confidential Agenda Performance Ratings – Yes or No?

How do Performance ratings and calibration Impact the following? ManagersTeam MembersCompany

4 Juniper Adobe Gap Inc. Microsoft Dell Accenture GE Netflix Pfizer Sears FedEx Zappos Deloitte New York Life Ebay By 2015…~ 30 large companies/1.5 million employees

5 Six performance management trends - by cornerstone Reduce or Eliminate Documentation Eliminate Ratings Focus on coaching & development Emphasize rewarding exceptional performance & simplification Move toward guidance vs guidelines Introduce Social Technologies

6 14% US companies have stopped rating employees 49% HR leaders who are currently eliminating or considering eliminating ratings Direct reports of managers who consistently check in on progress towards goals are up to 24x more likely to achieve them Eliminating ratings increases time managers spend on coaching by up to 9% High quality performance conversations increase enterprise contribution by 20%

7 Our Story, looking back…Feb Sep Annual performance rating, plus mid-year review Team members … harder to develop uncertainty focused on rating vs feedback Managers … save up feedback for “reviews” hard to reach organizational goals hard to make change timeline sneaks up on them overwhelmed

8 Unsatisfactory Mixed Valued Average Poor

9 And Today…How we enable great performance at Dell Set Clear Expectations Quarterly Check-insAssess & Reward Year-End Rewards Annual Performance Review Common Goal Plans Inspiring leaders Winning together Entrepreneurial spirit Personal effectiveness Accountability | Recognition | Reward | Development

10 How we measure program and participant success 98% 98% Retention 70% 70% NPS EmployeeManagerCareer 62% participation 167 Rockstars 32 Superstars Survey & Engagement 17% Promotion 70% Rotation

11 Where we are now 80%86% I receive valuable input on my career development Inspiring Leader +8pts+7pts