1. June 28, 2012 1 Performance Management Overview

2. Performance Management Agenda Objectives Current and future environment What weve done to create future environment New performance management framework Automation support Personnel Reform integration Training Support 2

3. Performance Management Objectives Promote a two-way system of communication between supervisors and employees Clarify expectations Regular and transparent feedback Continuous coaching Align employee behavior with agency values, goals, strategies Help distinguish exceptional individuals that contribute to organizational success Integrate administrative decision making with succession planning, promotions, and performance pay Promote personal growth and career advancement by helping employees acquire the desired competencies, knowledge, skills, and abilities 3

4. Performance Management Current Environment Not all employees participate in a performance management process Current evaluation form is complex, cumbersome, and time consuming No automation support No integration of performance appraisal with other management decision systems (promotion, discipline, compensation) No statewide employee training 4

5. Performance Management Future Environment Most employees participate in a performance management process Simple, easy to use evaluation form Full automation support Integration of performance appraisal with other management decision systems (promotion, discipline, compensation) Statewide employee training 5

6. Performance Management Steps to Design New System Reviewed other employers; private and public sector Examined Best Practice Research; Society for Human Resource Management – best practices from academic and practitioner experience Key Findings: Rating Scale: 3 or 5 ratings (3 most common) Competencies Pre-defined Standards Process: Supervisor/Employee discussions before, during, and after evaluation period 6

7. Performance Management Steps to Design New System Created 17 baseline competencies and associated standards Formed agency workgroup ASRS, AHCCCS, DJC, DEQ, ADC, DES, DOR, ADOT, DHS, ADE, FTF Reviewed and modified baseline competencies and standards Results Added 4 new competencies Deleted 1 competency Modified 9 standards Final agreement on competency pool 7

8. Performance Management Framework Statewide competencies Three for all employees One additional for managers Agency competencies Three for all employees Selected from competency pool of 16 Agency wide, Division wide, job wide Employee specific results One required competency Two optional performance period results 8

9. Performance Management Competencies Statewide competencies Customer Service Accountability Teamwork and Cooperation Leadership and Supervision (required for supervisors) Agency competencies Creativity and Innovation Initiative Transformers of Government Problem Solving Communication Conflict Management Professional Ethics Technical/Functional Expertise Flexibility Negotiation and Influence Professional Development Project Management Team Leadership Sharing Knowledge and Expertise Safety Awareness Correctional Security and Safety 9

10. Performance Management Competency - Standards Example 10

11. Performance Management Employee Specific Results Results Orientation competency Mandatory for each employee Provides flexibility for defining results Performance Period Results Specific, measurable, time targeted Two for each employee 11

12. Performance Management Rating Scale 3-point rating scale Exceeds expectations Meets expectations Needs improvement Easy to use, quick decision making, defensible Equal weighting across all competencies 12

13. Performance Management Evaluation Process Phase 1: Employee Self-Assessment without grade Managers Evaluation of Employees Performance Phase 2: 360 feedback 13

14. Performance Management Evaluation Cycle Cycle 1: January 1, 2013 - June 30, 2013 Cycle 2: July 1, 2013 – March 31, 2014 Cycle 3: April 1 – March 31 thereafter 14 October 24, 2012

15. Performance Management Automated Solution New HRIS application – Performance Management YES access On-line planner and evaluation Efficient method for building a plan and evaluating results Employee and position data pre-filled Radio buttons for selecting rating Automated notes Final calculations built in Appropriate record keeping – system of record Paperless process flow – routing through email 15

16. Performance Management Integration New classification system Job descriptions include competencies New hires Posting include competencies Positions tagged with evaluation competencies Compensation Merit increases tied to performance Promotions Review Discipline/Dismissals RIFs tied to performance (100%) Suspensions >80hrs, Demotions and Dismissals 16

17. Performance Management Training Supervisors and managers Three classroom courses Performance planning Performance Conversations Performance Evaluations Four Webinars Conducting performance conversations Performance documentation made easy Writing about and rating employee performance Engaging employees in the performance evaluation process HRIS Performance Management for Managers CBT Employees Performance Management overview CBT HRIS Performance Management for Employees CBT 17