Resource: Setting up a performance management system Accion Venture Lab

Recommended system for performance management 3_84 Recommended system for performance management Below is a starting point / guideline, to be customized as needed Goal setting Check-ins Performance review Cadence Every 6 months Every week Documentation Template (below) Format 30-60 minute conversation In person or over phone Can be done in combination with review 15-30 minute conversation Email/call if not in person 60 minute conversation Roles Employee: List of ideas and affiliated metrics Manager: Collaborate and confirm list Leadership: Consolidate Employee: Deliver task list Manager: Review task list and give feedback/support Leadership: None Employee: Consent to written review Manager: Write and explain written review Leadership: Consolidate and use for bonuses, raises, promotions, etc. Output List of goals To do list logged Completed review, signed by both parties

Goal setting: What this will look like 6_85 7_85 Goal setting: What this will look like Information to be covered Guidelines What are your professional goals for the next 6 months? How do these goals tie into broader company or team objectives? What are your personal goals for the next 6 months? How are these goals related to your broader professional success? How will you achieve these goals? What are ways that your manager can support you? What are ways that your manager can check in on your progress? First goal setting session should occur within an employee’s first 90 days on the job After that, align goal-setting sessions with performance reviews Goals should be SMART (specific, measurable, attainable, relevant, time- bound) Emphasis on “measurable” especially When possible, goals should be clearly linked to team goals and OKRs Great managers will also ask employees questions about their broader career goals and integrate those as well Output: Defined list of goals with timeline, priority level, support needed, potential roadblocks and solutions

Goal setting: Examples

Check-ins: Best practices 6_85 7_85 Check-ins: Best practices Information to be covered Guidelines What were the key tasks from last week’s task list? What was completed? What faced delays? Why? What are the key tasks to be completed this week? Are there any issues that your supervisor can support with? Do you foresee any potential issues? Is there any feedback on performance? What could have been done better? Task lists must contain: All tasks and relevant descriptions Deadlines Priority level Any potential roadblocks and suggestions for problem-solving Task lists and feedback are documented and archived to track for subsequent weeks Any decisions made during the meeting are put into writing to clarify responsibilities If conversations cannot happen in person, then phone or email are also ok

Check-ins: Examples Recommendation: Use whatever software the team is already using for task management (e.g., Asana, Jira) or simply email to recap tasks and log written feedback/decisions

Performance reviews: What this will look like 6_89 Performance reviews: What this will look like Information to be covered Guidelines Illustrative example Category Description Weight Values Assessment of how well the employee lives up to the values and specific criteria within them (see subsequent slides for more detail) 50% OKRs Assessment of role- specific criteria, which will capture specific behaviors within tech, product, ops, etc. Performance review framework should be clear to entire organization, with specific criteria for each employee When possible, it is best to have transparency for how reviews/ratings tie to bonuses, raises, and promotions Guide negative feedback to be constructive, and work with employees to create action plans Great managers will provide specific, written examples to employees, on both positive and constructive points Output: Completed performance review, with quantitative and written feedback on last six months

Performance reviews: Examples KPI evaluation Qualitative evaluation

Process overview Survey (optional) Workshop Templates Roll out 4_85 Process overview Survey (optional) Workshop Templates Roll out An optional step Asking employees for their input on touchpoint cadence, impact on salary/bonus, and attitudes Can be useful to refer back to during difficult decisions Also useful for simply building employee buy-in – employees get a voice at the table Get the leadership team together, with a clear leader to spearhead the effort Goals of the workshop are to align on Criteria for evaluation Weights of each criteria Impacts of review system To gain insight into how the system will work, select a few illustrative employees to evaluate Drive to output of agreed-upon rating system and calendar to get to-do items completed After leadership has aligned, create templates for touchpoints, leveraging the outputs of the conversation (and the examples above, if helpful) Circulate among leadership to get feedback Once leadership has agreed on cadence, content, and format of all touchpoints, roll out to employees First message is best in-person during a company-wide meeting if possible Follow up with an email with comprehensive instruction Some companies like to then show employees what the review process will look like in 1:1 meetings by walking through example/ illustrative reviews