2012 IPMA-HR Annual Training Conference Plan, Perform, Review Repeat: Shifting Organizational Culture through Performance Management 2012 IPMA-HR Annual Training Conference September 11, 2012 Marnie to start 3:15 to 4:30 By Marnie Green, IPMA-CP, Principal Consultant

About Your Presenters Marnie E. Green Management Education Group, Inc. Gordon Beecher Human Resources Director City of Richland, WA

Employee Performance Management Stand Up Poll You or a supervisor in your organization has ever inherited an employee with a history of poor performance You have ever told a supervisor they could not terminate an employee because they didn’t have enough documentation Your employees feel entitled to pay increases when they are available Performance is valued and rewarded in your organization Marnie 3:15 – 3:20 EM Slides LM 5-30-08

Richland, WA Makes the Shift Gordon 3:20 – 3:25 Gordon: Can you insert a cleaner image or something else that helps you remind your opening story?

What’s Your Organization’s Performance Management Best Practice? Marnie 3:25 – 3:30 EM Slides LM 5-30-08

Employee Performance Management Stand Up Poll My organization has a strategic plan My organization links its strategic plan to executive performance My organization links its strategic plan to managerial and supervisory performance My organization links its strategic plan to individual employee performance 8:45 Management Education Group, Inc. 2012

Marnie Performance Management Cycle Organizational Goals and Strategic Plans Individual Performance Planning Feedback and Adjustment Performance Evaluation Discussion Documentation Marnie Performance Evaluation Preparation Supervisor LM 5-30-08

What’s a Painless Performance Evaluation? There are no surprises! Employee-driven Future-focused Marnie Supervisor LM 5-30-08 8

Giveaway Time!! Marnie 3:30 – 3:35 9

Tools for Refocusing on Performance Create a simple, easy-to-understand strategic plan Engage employees in the discussion about organizational challenges, their aspirations, and the decisions that must be made to move the organization forward Link day-to-day employee performance to the plan Reward contributions that support the plan and stop rewarding those who don’t contribute! Marnie 3:35 – 3:38 EM Slides LM 5-30-08 10

Gordon City of Richland, Washington A full service city located at the confluence of the Columbia and Yakima Rivers in the Tri-Cities region of southeastern Washington, USA.

The City of Richland provides: Police and fire protection Water Sewer / storm water Garbage collection, recycling, and landfill Electrical utilities Parks and recreation programs Street and public facility maintenance and development Library services Short and long-range planning Gordon 3:38 – 3:40 EM Slides LM 5-30-08

Big Changes in 2000 Introduction of a pay for performance system Elimination of a step based pay system Complaints and resistance from staff Marnie © Management Education Group, Inc. 2011, All Rights Reserved

The Richland Story Then Performance feedback was an afterthought “Don’t rock the boat” culture Tenured executive team Unsupported performance ratings Marnie EM Slides LM 5-30-08

The Richland Story Then Unwillingness to have tough performance conversations Rating factors the same for all, regardless of job or level 40 person management team Marnie 3:40 – 3:45 EM Slides LM 5-30-08

The Richland Story Now Every employee has a performance plan with goals Goals are tied to a strategic plan Regular feedback meetings and a mid-year assessment conducted Gordon 3:45 EM Slides LM 5-30-08

The Richland Story Now New team structure drives change Executive commitment is high Employees participate in the management of their own performance Gordon 3:45 – 3:48 EM Slides LM 5-30-08

© Management Education Group, Inc. 2011, All Rights Reserved Gordon 3:50 In 2008 the Richland City Council adopted a strategic plan, “Seven Keys to Unlock our Future” © Management Education Group, Inc. 2011, All Rights Reserved

Tools Used to Transform Richland’s Culture Organizational Goals and Strategic Plans Developed a strategic plan with stakeholder input Established clear performance expectations for executives based on Jim Collins’ Good to Great Changed weekly meeting structure to focus on shared responsibilities Introduced “undiscussables” Gordon EM Slides LM 5-30-08

Richland’s New Meeting Structure Gordon EM Slides LM 5-30-08

Tools Used to Transform Richland’s Culture Individual Performance Planning Executive team led competency model development for all leaders Gordon 3:50- 3:58 EM Slides LM 5-30-08

Employee Performance Management Stand Up Poll My organization has a competency model My organization developed our competency model with input from executives My organization developed our competency model with input from managers and employees My organization incorporates our competency model into our performance management process 8:45 Management Education Group, Inc. 2012

Competency Model Development Asked, “What does exceptional leadership look like in Richland?” Input gathered from supervisors, managers, and executives Built upon existing shared values Marnie 3:58 EM Slides LM 5-30-08

Richland’s Competency-based Performance Management Model EXECUTIVE COMPETENCIES - Manage to the Future - Have a Global Perspective - Display Political and Business Acumen MANAGERIAL COMPETENCIES SUPERVISORY COMPETENCIES - Develop Effective Intra- and Inter- Departmental Relationships - Manage Resources Effectively - Think and Plan Strategically MANAGERIAL COMPETENCIES - Foster Teamwork - Prioritize Work and Commitments - Drive for Team Results - Manage Employee Performance SUPERVISORY COMPETENCIES SUPERVISORY COMPETENCIES Marnie 3:58 – 4:05 FOUNDATIONAL COMPETENCIES Use Technical/Functional Expertise Communicate Effectively Be Accountable for Performance Work Safely Provide Excellent Customer Service TEAMWORK, INTEGRITY, AND EXCELLENCE EM Slides LM 5-30-08

Tools Used to Transform Richland’s Culture Individual Performance Planning Executive team led competency model development for all leaders Management team developed performance evaluation linked to strategic plan and competency model Annual collaborative expectation-setting meeting in January is used to set performance goals Marnie EM Slides LM 5-30-08

Tools Used to Transform Richland’s Culture Feedback, Adjustment & Documentation Employee Self-Assessment completed twice per year Mid-year evaluation provided with comments required, without ratings Goals adjusted based on shifts in the environment Marnie EM Slides LM 5-30-08

Tools Used to Transform Richland’s Culture Feedback, Adjustment & Documentation Increased use of Performance Improvement Plans Individual and group coaching with struggling supervisors Implementation of an online tool for managing performance Marnie EM Slides LM 5-30-08

Employee Performance Management Stand Up Poll My organization trains supervisors on how to complete a performance evaluation My organization trains supervisors to craft measurable goals My organization trains supervisors to lead performance-related conversations My organization trains employees on how to participate in the management of their own performance 8:45 Management Education Group, Inc. 2012

Tools Used to Transform Richland’s Culture Performance Evaluation Preparation & Discussion Provided a comprehensive guidebook to the evaluation system Training at start of year on goal and expectation setting and using the competency model to give feedback Training at mid-year on leading mid-year feedback conversations Training at year-end on applying the rating scale, writing comments, and delivering the evaluation Marnie EM Slides LM 5-30-08

Integrating the Strategic Plan into Employee Performance GOAL 1:       NI S E Strategic Key: Mid-Year Comments:       Year-End Comments:       Marnie 4:05 – 4:15 Here is an example of a portion of their new performance evaluation system that reflects the strategic keys. They also have a mandatory mid—year conversation and comments (no ratings) to ensure goals are adjusted over time. 30

Public Management December 2011 Marnie 4:15 EM Slides LM 5-30-08

Richland’s Performance Management Best Practices Move slowly toward pay for performance Focus on the competencies of employee performance management and resource allocation Link employee performance to the strategic plan Gordon 4:15 – 4:20 EM Slides LM 5-30-08

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