1. Trends and Business Cases of :
Performance Management 3, 4 -
( GM, Nortel )

2. Performance Management
& Best Practices

3. Practice 3 : General Motors
Companies must equip managers with relevant knowledge and tools to maximize their positive impact on performance and to ensure that performance management investments focus on highest-level contributors to the business
Upskill Managers at Performance Improvement
General Motors, the world’s largest vehicle manufacturer
has manufacturing operations in more than 30 countries and sell its vehicles
over 200 countries
employs approximately 355,000 individuals around the world,
sold more than 8.5 million cars and truck, as the end of 2001
Case Description
GM’s online “Rater Calibration Training” course educates employees in how to assess performance and deliver feedback. All employees involved in delivering 360-degree feedback must complete and pass the training course
Goals
The goal is to improve employees’ ability to effectively evaluate performance, differentiate between performance levels, and deliver feedback.
Results
The enhanced performance management process helps leaders ensure that objectives are aligned with GM’s business priorities across and down the organization, and the 360-degree feedback process affirms those cultural priorities that the CEO wants the organization to focus on.

4. Practice Driver Although there was CEO’s
strong commitment to build
a performance-driven organization…
…and although HR develops clear
principles to frame the new
High-performance organization…
“One of our most important goals at General Motors is to build a culture of high performance and accountability in which leaders take personal responsibility for coaching and developing people, in addition to driving excellent business performance”
Rick Wagoner, CEO of GM
GM’s High-Performance Culture Guiding Principles:
Performance = Results x Behaviors
Results are driven by clear, measurable objectives
Behaviors are driven by actions outlined in cultural
priorities
Performance drives pay
Leaders are accountable for differentiating performance
and pay
Leaders must dedicate time to the process to do it right
…the performance management system
itself presents some significant challenges,
clustered distribution of ranking!

5. Practice in Context GM’s PM Process
Basic Performance Tools
Phase Ⅰ: Objective Setting
Identifying five to six high-impact objectives with
metrics and timing for the year
Individual Development Planning
Discussion between manager and employees
Online construction of development plan
Phase Ⅱ: Mid-Year Review
Self assessment
Leader’s assessment on progress
Mid-year development discussion
360-Degree Review
All executives receive a 360-degree feedback
assessment every year to measure their alignment
with the company’s leadership behaviors
Phase Ⅲ: Annual Review
Similar in form to mid-year review
Includes additional 360-degree data
Reward
Annual review rating feeds into
compensation system
First Quarter
Second Quarter
Fourth Quarter
Results
PMP
Behavior
360
Performance
Grid X =
360-Degree Feedback Process
Helps leaders to determine if they exhibit leadership behaviors
aligned with the cultural priorities
Improves the executive’s job performance by providing feedback
on his/her hehavior
Rater-Calibration Training
All raters must take a short interactive online course before giving
Feedback to executives. Training aims to increase the benefit that
360-degree feedback can provide by focusing on:
Differentiated and accurate ratings of behaviors
Greater awareness of common rating tendencies
More constructive written comments

6. Rater Calibration Training
Orientation
Cultural Priorities
Confirm employees’ understanding of the performance culture
Rating Scale and Rating Tendencies
Educate employees about rating tendencies
Provides employees with the skills to recognize raters types and
improve the quality of their rating assessments
Written Comments
Recognize an opportunities to improve the quality of written feedback
to supplement numerical ratings
Provide clear guidance on constructing balanced, clear, and actionable written feedback
Certification
Employees undertake a certification exercise that they must successfully pass
in order to conduct an executive’s assessment

7. Practice 4 : Nortel Networks
Upskill Managers at Performance Improvement
Global telecommunications equipment provider based in Canada
Annual revenues of approximately USD 17 billion
Employed over 53,000 individuals in 2001
Case Description
Nortel’s biannual talent segmentation takes a holistic view of an employee’s performance by defining and assessing employee contribution to corporate success and performance. To facilitate segmentation and segment management, Nortel provides managers with tools and guidance on matching performance management strategies to an employee’s level of contribution.
Goals
To infuse a business orientation into performance management by repositioning definitions and assessments of “performance” in terms of “contribution to the business”
To maximize the impact of performance management on corporate performance through a more differentiated and efficient use of available performance management resources
Results
Nortel’s move toward a contribution-based definition of performance allows managers to better identify their subordinates’ talent groups based on employees’ contribution to the business. Managers use talent segmentation outcomes to make decisions about how to reward, motivate, and retain their subordinates.

8. Managers’ undifferentiated view of employee performance…
Practice Driver
ALL LOOK THE SAME
Managers’ undifferentiated view of employee performance…
…hampers Nortel’s ability to manage talent in line with
Strategic business requirements.
1999: Losing key technical staff
2001: Difficulty identifying key talent during restructuring
Performance Distribution
Performance
Contribution

9. Segmentation by Contribution Supports Effective Performance Management
Practice in Context
Segmentation by Contribution Supports Effective Performance Management
Nortel’s Formal
Performance Management System
Nortel’s Segmentation Cycle
Objective Setting and Development
Segment Identification
Ongoing Monitoring and Feedback
Mid-Year Review
Segment Revisited
Year-End Appraisal
Reward
Segment Definition According to Contribution
Type of Talent:
Top Talent
Core Contributor
Low Contributor
Scarce resource
Employee Segmentation
According to Contribution
Dimensions of Contribution:
Skills and Expertise
Performance and Contribution
Attributes
Guided Investment Based
on Segment Characteristics
Guidance on:
Time Spent Coaching Individuals
Development Interventions and Courses
Reward Amount and Type

10. Contribution-Based Talent Segmentation
Provide Clear Definitions of Employee Contributions to Corporate Success
Low Contribution
High Contribution
Low Contributor (LC)
Has made variable contributions and has limited depth and breadth of experience. Does not react well to change and has poor customer focus.
Core Contributor (CC)
Has made sound contributions over time and has the expertise and experience for their role. Handles change constructively and displays both good customer service and willingness to learn.
Top Talent (TT)
Exceptional contribution and personal leadership above the norm. Is a role model for others in terms of customer service, applied learning and change management.
Some Nortel employees
receive Critical Resource
or Scarce Skill “flags”,
so that Nortel can quickly
identify key talent
with Critical Resource (CC,CR)
Employees who have specific intellectual property knowledge of expertise internal to Nortel technologies, customers or markets
with Scarce Skill (CC,SS)
Skills that are in high demand and low in supply on job market. Skills are role specific and are temporary according to state of labor market and corporate strategy
with Critical Resource (TT,CR)
Employees who have specific intellectual property knowledge of expertise internal to Nortel technologies, customers or markets
with Scarce Skill (TT,SS)
Skills that are in high demand and low in supply on job market. Skills are role specific and are temporary according to state of labor market and corporate strategy

11. Contribution-Based Talent Segmentation
Assess Employees’ Contribution Levels
Manager’s own assessment of each individual
Comparative assessments within the team
Comparative assessments across teams to calibrate contributions on an organization-wide basis
Communicate Contribution Designations to Individual Employees
Offers a detailed communication guide that provides “talking point” to facilitate the communication
Emphasizes that segmentation process is in no way intended to be a “rank and yank”, it intended to
identify developmental needs and re-examination of the match between employees’ skills and their roles.
Key Communication Guidance
Introduce definition of “contribution”
Explain rationale for segmentation
Emphasize the continual and changing
nature of contribution
Explain “where employee stands”
Establish clear next steps
Explain the role of the external market
in segmentation

12. Contribution-Based Talent Segmentation
Configure Targeted Performance Management Investments
Managers should consider the following principles when managing different investments in talent segments.
Performance Management Area
Principles of Tiered Investments
Development
TT – Receive special consideration of role/project-based learning opportunities
CC – Engage in development planning to focus on achieving current goals
LC – Focus on increased contribution or alternative career matches
Compensation
TT – Move to top percentiles in compensation brackets and look for “special” reward schemes
CC – Focus compensation on middle ranges and consider motivating via non-monetary job elements
LC – Position below outside market
Retention
TT – Must engage in ongoing value proposition discussions. Use tailored strategies
CC – Have conversations if retention risk surface
LC – Managers should involve HR to get long-term picture of retention need for these contributors

13. 감사합니다. Our Customer 우리는 귀사의 유익한 파트너가 되길 원합니다. [와이즈포스트파트너즈 담당자 연락처]
와이즈포스트파트너즈 주식회사 HR부문
박 효종 수석 TEL : 02) 785 – 1112 (代) FAX : 02)