NATO PERFORMANCE MANAGEMENT 22/04/2017 NATO PERFORMANCE MANAGEMENT Intensive HRM Training Day Dr. Eric Welch Head, Talent Management and Organizational Development NATO HQ

“The management of an organization’s workforce”

Human Resource Management Process Describe the profile Identify the person Train/ Develop the person Design the posts Strategy and Requirements Performance (Organizational and personal) In order to Identify the Person (i.e. Recruit and Select), we have to know what we’re looking for. Post descriptions and vacancy notices are our tools for that.

Policy and Strategy Coordination Staff Services Director HR Policy and Strategy Coordination Staff Services Management and Organizational Support Recruitment Talent Management and Organizational Development HR Advisers

Performance Review and Development (PRD) Why History What we’re doing How it works Current challenges

Ensure managers communicate with staff about how they are performing Why PRD? Ensure managers communicate with staff about how they are performing Provide a basis for effective HR decision-making (e.g., step increases, contract decisions, recruitment) Improve and standardize management practices across the Organization Promote and support individual development Help ensure strategic objectives are met

2005 – Performance Management 2009 – discontinued electronic system PRD History 2005 – Performance Management 2009 – discontinued electronic system 2010 – PRD creation and launch

PRD Ongoing Goals Provide information to the Organization to be able to make personnel decisions based on performance Motivate staff by providing appreciation for their efforts and developmental feedback tailored to their situation and aspirations Motivate staff by providing them explicit understanding of how their objectives and efforts are consistent with Organizational priorities Improve Organizational performance by providing mechanisms to deal with poor individual performance Who

Starts following the successful completion of the probationary period PRD Cycle Overview Starts following the successful completion of the probationary period Phase 1: Objective setting Phase 2: Mid-term review Phase 3: Annual review Objectives, competencies, overall performance Calibration Performance Improvement Program (PIP)

How: Phase 1: Objective setting Set and discuss: the results to be achieved how these will be measured by when Consider: competencies development/training topics Review the job description How

What are the most important things required in the job? Objectives Cascade Focus on: Goals or projects for the year, OR Daily operational tasks based on result areas in the job description What are the most important things required in the job? What is the staff member expected to achieve in these areas? What behaviors (competencies) will the staff member have to demonstrate?

Specific: clear, unambiguous, straightforward, understandable SMART Objectives Specific: clear, unambiguous, straightforward, understandable Measurable: assesses quantity, quality, time, budget, resources Agreed: the meaning of the objective is agreed between the parties Realistic: challenging, but within the capabilities of the staff member Time-related: to be completed within an agreed timescale

Example objectives: Assistant Description of objective: Coordinate the XYZ Conference to include advertising, supporting the conference center in the updating and organization of the program, liaising with Procurement on the contract, and liaising with NATO-wide and Partner contacts. Measurement: 1. Advertise the conference in January 2013 and draft list of potential speakers for review by Divisional leadership before end-April 2013. 2. Contract signed with conference centre by June 2013. 3. Coordinate preparations and logistics leading up to Sep 2013 conference. 4. Participate in lessons-learned discussions in Oct 2013. Description of objective: Support Head ABC in the daily management of his office, tasks and information flow, with focus in mid-year on the transition to new structure. Manage the section’s budget. Measurement: 1. Queries and requests are dealt with as quickly as possible taking into account all necessary aspects - to the satisfaction of customers and Head ABC. 2. In the event of conflicting priorities, launch an automatic discussion of workload impact.

Example objectives: Officer Description of objective: Develop financial plans that superiors consider useful for making decisions. Measurement: 1. Prepare and submit financial plan for XYZ project by March 2013. 2. Revise as necessary following feedback. 3. Submit final version to committee in June 2013. Description of objective: Engage in identifying and implementing strategies to improve productivity. Measurement: 1. Participate in the implementation of the ERP. 2. Following identification of the implementing consultant, coordinate efforts between Division staff and consultants for implementation. This is expected to happen in Q3 and Q4, and could require approximately 20% of the staff member’s time.

How: Phase 2: Midterm Review Re-examination of objectives and training topics Confirmation of their continued relevance or need to change them, if necessary Opportunity for either party to raise any concerns about performance (if applicable)

How: Phase 3: Annual Review Two steps: Performance review + calibration Formal opportunity Progress the staff member has made towards: their individual objectives competencies Proposed rating

Performance review - Competencies Behaviors that are required for successful performance in the job PRD assesses the extent to which a staff member demonstrated the required competencies during the performance cycle

Ratings Exceptional – in a properly managed organization, only a handful of people earn this rating occasionally throughout their career Excellent – this rating is normally reserved in most organizations for just a small proportion of high performing staff Very good –this is the rating used by organizations for the significant amount of staff whose performance is clearly better than the standard one Good – this is the expected rating for everyone in a good organization. The most frequent one Fair – this is the rating used by organizations for the small amount of staff whose performance is proficient but requires improvement Unsatisfactory – most organizations have some unsatisfactory performers, but they are a very small minority in most cases

To improve consistency and fairness Calibration To improve consistency and fairness To make sure managers apply similar standards for all staff To eliminate bias as much as possible To promote discussion of performance expectations at all levels To bring outstanding and poor performers to the attention of top management

2014 cycle Timeline FEEDBACK Annual Review 2014 You are here Objective Setting 2014 Annual Review 2014 Mid-term Review Objective setting 2015 Annual Review 2013 Calibration January – Feb. January – Feb. June - July You are here

Performance Improvement Program (PIP) Why To help staff get back on track Provide framework for managers to address performance issues Two phases Preliminary phase IP Program phase What about perf problems Why – improve or fire Who – How -

Or after a final rating of “Fair” Up to 180 days 1. Preliminary phase Whenever an aspect of performance needs improving, at any time during the year Or after a final rating of “Fair” Up to 180 days Use an Improvement Monitoring Form

30-90 days (+ 30-90 day extension if needed) 2. IP Program phase 30-90 days (+ 30-90 day extension if needed) After an unsuccessful Preliminary Phase, OR After two consecutive final ratings of “Fair”, OR Any time a staff member is not working up to requirements in a critical area Action plan established If unsuccessful, leads to termination of contract

Un- satisfactory result “Unsatisfactory” rating in AR Two consecutive ratings of “Fair” in AR Unsuccessful Preliminary phase IP Program IP Action Plan starts max. 1 x Training ? Decision Un- satisfactory result Satisfactory results IP file closed Back to normal performance Extension Ground for dismissal

2012 Results Overall, the 2012 cycle has again been a successful exercise. Completion rates are high, timelines were generally respected, and there have been good conversations about performance between managers and staff, and managers and reviewing managers.

Current challenges in PRD Expanding the PRD system NATO-wide Developing a performance-based reward system Implementation of new tools and workflows due to ERP What, Why, Who, How

Organizational Design and Development Performance Review & Development Objectives: I will set them with my manager NATO’s Objectives & Needs Mid-term: we will review progress My Post Description Annually: I will be evaluated on my work and on …. My Competencies My Result Areas My Languages Because of different job families and work levels My IT And if I want OR I need, I can further develop my Competencies…………. ME IT Training Competencies training Language Courses NATO Executive Development Programme Management Development Programme Training and Development Pre-deployment training Senior Circle Leadership Journey

North Atlantic Treaty Organization Eric Welch, Ph.D. North Atlantic Treaty Organization Welch.eric@hq.nato.int +32 (0)2 707 3750

Where: HR Service Portal Staff Skills Database Purpose: mechanism to expand capabilities in times of crisis (Surge Capacity) using existing resources from other divisions What it is: individual profiles completed and maintained by staff members – focus on the skills not used in the normal job Where: HR Service Portal Additional benefit: ad-hoc support for short-term help on other projects and initiatives

Inputs: Identify skills Education and Languages Skill Categories, Areas, and Topics Professional Interests References Career Goals and Expectations (HR eyes only) Menus and free text

Structured + Free text search options Production of CV-type reports Meet needs Structured + Free text search options Production of CV-type reports Open to all staff, on request Result: 180 unique visitors, 60 profiles, 70 searches within 30 days of implementation Next steps: Increase usage, expand to other NATO bodies, create Surge Capacity Pool