1. Managing Performance

2. Learning Points
In Part 9, you will learn the answers to these questions:
Have you mastered performance management as a leadership skill?
Do you know how to set goals, provide feedback on progress, and correct performance problems?
What is your level of performance in the areas of statesmanship, working with and through others; entrepreneurship, achieving results; and innovation, generating new and usable ideas?

3. Learning Points
Do you model and reinforce high standards of professional conduct?
Do you uphold core values, using a caring confrontation when corrective action is necessary?

4. Introduction
Performance management is at the heart of leadership success
It is important to have:
A vision, values, leadership qualities, power of leadership position
Effective leadership requires:
Clearly communicating goals
Coaching others to succeed
Correcting poor performance

5. Managing Performance Performance planning
Establishes direction and clarity of assignment
Provides the foundation on which performance can be developed and evaluated
Performance coaching
Involves the development and encouragement of people
Help individuals grow and fulfill their personal potential
Correcting poor performance
Modify and improve performance when mistakes are made

6. Introduction
According to The One Minute Manager, three leadership techniques work at all levels, in all environments:
One-minute goal setting for performance planning
One-minute praising for performance coaching
One-minute reprimand for correcting poor performance

7. Basic Principles of Psychology
These techniques are drawn from the basic principles of behavioral psychology:
The power of goals to focus and energize behavior
The need for feedback to reinforce or modify behavior
The importance of praise as a recognition technique

8. One-Minute Goal Setting
Identify three to five goals that are critical to success
Write them on paper (250 words or less)
Include the individual in goal setting
Strong relationship between personal involvement and future success

9. One-Minute Praising Show appreciation for effort and accomplishments
Based on two ideas:
People need feedback as a way of tracking and sustaining progress
What gets rewarded gets repeated
Four characteristics:
Praise is immediate
Praise is specific
Praise is sincere
The individual is encouraged

10. One-Minute Reprimand
Saved for individuals who are trained and who know what to do, but make mistakes
Four characteristics:
Correction is immediate
Correction focuses on behavior
Correction is sincere
The individual is encouraged
By mastering one-minute manager secrets:
Effective leaders can raise the productivity of individuals and groups

11. Taking Aim and Taking Stock
Effective job performance requires:
Setting objectives
Measuring results
Charles Schwab example:
Employees had set the performance goals and enjoyed recording the results

12. Setting Performance Objectives
Peter Drucker explains the importance of setting performance objectives:
Each person should have clear objectives that support the success of the organization
Four major areas in which to set objectives:
Quantity
Quality
Timeliness
Cost
One or more will fit every person’s job

13. Setting Performance Objectives
Quantity
Most common method of measuring performance
Quality
One of the most important areas for which standards apply
Timeliness
Includes time factors as meeting deadlines
Cost
Four M’s of management: manpower, material, machines, and methods

14. Setting Performance Objectives
Performance objectives should be manageable
Examples of measurable objectives for improving customer service:
Develop and implement a system that allows tracking, following up, and resolving customer complaints
Achieve 98% on-time delivery by Jan. 1, 2008
Develop a blue-ribbon service system

15. Conducting Performance Reviews
Keep communication lines open
Help motivate employees
Give peace of mind to both employer and employee
Employees and supervisors should be trained in:
Preparation
Implementation
Follow-up

16. Conducting Performance Reviews
What to do before the performance review:
Employees should:
Consider your strong points and formulate a plan to utilize them fully
Determine the areas in which you need to improve; device a plan to strengthen your performance
Think about what your supervisor can do to help you improve

17. Conducting Performance Reviews
What to do before the performance review:
Supervisors should:
Consider your employee’s strong points and how you can reinforce or capitalize on them
Think about your employee’s weak areas and consider actions for improvement
Think about what you can do to help your employee improve
Provide advance notice of the performance review; solicit employee input

18. Conducting Performance Reviews
What to do during the performance review:
Employees should:
Explain your strengths and weaknesses
Discuss issues that may not be apparent to the supervisor that hinder your performance
Present ideas to improve future performance; don’t dwell on past mistakes
Present what you think your supervisor can do to help you improve

19. Conducting Performance Reviews
What to do during the performance review:
Employees should:
Listen carefully to your supervisor’s reactions
Obtain final agreement on what each of you will do.
Don’t settle for “Let’s discuss this again at a later date.” Get as much commitment and agreement as possible.

20. Conducting Performance Reviews
What to do during the performance review:
Supervisors should:
Create a positive climate—quiet, private, and free from interruptions
Tailor the conversation to suit the needs of your employee. Stop talking and listen
Have your employee begin by explaining each strength and weakness in his/her own words. Provide ample time for full development of each point

21. Conducting Performance Reviews
What to do during the performance review:
Supervisors should:
Ask questions based on prior preparation, as well as on new information developed during the conversation
Encourage your employee to do the same
Be open and flexible to issues that may come up that you may not know about. Take a problem-solving versus problem-blaming approach
Ask how you can help your employee do a better job: listen carefully and take notes

22. Conducting Performance Reviews
What to do during the performance review:
Supervisors should:
Establish new performance objectives, standards, and completion dates. Make your expectations clear. Be direct and honest
Write down points of discussion and agreement. Review them so that both you and the employee have the same understanding

23. Conducting Performance Reviews
What to do during the performance review:
Supervisors should:
Remember that a performance review involves two-way communication. Be prepared to compromise and be flexible. As the supervisor, you are responsible for resolving differences.
End the meeting on an upbeat, positive, and future-focused note

24. Conducting Performance Reviews
What to do after the performance review:
Employees should:
Keep your supervisor informed of progress toward meeting objectives
Discuss with your supervisor as soon as possible any changes that occur that affect your objectives

25. Conducting Performance Reviews
What to do after the performance review:
Supervisors should:
Develop a system of checks and reminders to be sure that performance objectives are being met
Show your employee that you want him or her to succeed. Provide positive reinforcement for progress made toward accomplishing objectives

26. Conducting Performance Reviews
Multisource evaluations can be useful for improving performance:
90% of Fortune 1000 companies use some form of multisource assessment
These assessments are call 360-degree feedback because the individual is rated by a circle of people
Research shows that:
Evaluation of leaders by employees is a valuable tool for improving leadership effectiveness