1. Performance Management Transformation: Cargill’s Case Study
Sharon Arad, Ph.D.
Performance Impact Solutions
CEB

2. Organizations Want to Improve Performance Management
Traditional Performance Management
Illustrative
Everyday Performance Management
Illustrative
High
Reviews Decisions
High
Goals
Activity Level
Activity Level
Low
Low
Begin Cycle
End Cycle
Begin Cycle
End Cycle
Focus on process not people
Formal and event-driven
Separate from work
3–5% impact on performance
Focus on people not process
Informal and ongoing
Integrated with work
Up to 39% impact on performance
Source: CEB 2012 High Performance Survey.
Source: CEB 2002 Building the High-Performance Workforce Survey.
© 2015 CEB. All rights reserved.

3. What the Best Companies Are Doing1 2 3
Improve Expectation Setting
Build a Culture of Coaching and Feedback
Simplify Performance Reviews
Stop
Stop
Stop
Setting SMART goals just once a year
Limiting feedback to once or twice a year
Requiring extensive and complex documentation
Start
Start
Start
Engaging in more dynamic and flexible goal-setting
Teaching managers to give ongoing, informal feedback
Streamlining documentation to the minimum required
© 2015 CEB. All rights reserved.

4. Cargill’s PM Transformation: Case Study

5. Aligning PM Approach to Cargill’s Strategic Priorities
Cargill's complex external environment was changing more rapidly and requiring the company to change the way we work
Become more agile
Reduce complexity and simplify processes
Focus on creating value to customers and generating sustainable growth

6. Cargill Performance Management Study
Key Findings
Major disconnect between PM and daily work
Managers are reluctant to give candid feedback
Managers view PM as an administrative drill
Our Opportunity
Simplify Performance Management Process & Requirements
Focus on Everyday Performance Management behaviors & practices
Strengthen Manager Capabilities

7. Adopting a New Mindset Old Mindset New Mindset
Annual, backward-looking reviews
Frequent, future focused conversations
Rule-based; focus on compliance
Principle-based; focus on empowerment
Focused on ratings
Focused on continuous improvement and development
Prescriptive processes
Flexible, on-demand tools and resources
Managers micromanaged by system
Capable managers trusted and expected to do the right thing
HR-driven process
Manager-employee driven

8. 1 4 2 3 5 Everyday Performance Management
Simplified process with fewer administrative requirements and streamlined performance plan and documentation
No Rating approach with focus on qualitative assessment of the employee achievements, contribution to business success and development opportunities
Focus on ongoing
discussions between managers and employees; informal feedback, coaching, and goal review and adjustment
Simplified and flexible goal setting with fewer, more dynamic goals aligned to business strategy and tailored to the specific job and businesses requirements
Cargill Leadership Model is the standard for how goals are achieved 1 4 2 3 5

9. Principles of Effective PM
The new mindset Everyday Performance Management that was built on a few foundational principles
Effective PM is an ongoing process
Day-to-day PM activities and practices predict the quality of PM
Employee-manager relationships are at the heart of effective PM
PM processes need to be flexible to address different business needs

10. Performance Discussions
How often?
Not prescribed; real-time, ongoing, and future focused performance discussions between managers and employees.
Who initiates? Who’ is accountable?
Manager
How much structure and standardization?
High level guidelines
What topics to include?
Each discussion should include goal alignment, goal progress, feedback, and goal adjustment.
Over the course of the year, managers should provide feedback and coaching and discuss performance goals, leadership behaviors, career aspirations.
How much documentation?
Documenting conversation comments is encouraged.
Use of technology
Simplified, home-grown technology that serves as a notes depository for employee's and managers.

11. Integrating the Coach Approach

12. Lessons Learned Linking the transformation to strategic priorities
Importance of executive champion and key advocates
The power of a successful pilot
Educating and preparing the HR function
Partnering with Compensation Team
Focus on role and capability of managers
Continue to align with changing business and strategic priorities