1. A Future-Focused Approach
Fueling Performance
A Future-Focused Approach
Katie Mullin
VP Human Resources

2. Current State of Performance Reviews
What descriptors come to mind when you think of performance management?

3. Deloitte Insights Human Capital Trends 2017
“Today, as companies operate as a network of teams, careers and learning are strategic and companies are shifting from “jobs to work” in their operations, the need to align goals, provide feedback, and coach for performance is real-time, continuous and multi-directional.”
Performance management: Playing a winning hand
By Nathan Sloan, Dimple Agarwal, Stacia Garr, Karen Pastakia

4. Continuous Performance Management Approach
“Agile goal management, check-ins, and continuous feedback are becoming common, and new models of evaluation and rewards are being adopted next.”
Bersin calls it “Continuous Performance Management”

5. Continuous Performance Management Approach
Moving From:
Once a year review of performance with series of ratings
Leader directed feedback based on long cycles, looking backward
Moving To:
Shared, forward-focused process
In the moment feedback
Focusing on improving performance in near future

6. FCSAmerica/ Frontier Farm Credit
Our Journey: A Cross-Functional Team Approach

7. Why Change? Very time consuming Not moving the needle on performance
Backwards looking
Too much emphasis on the rating or “score”
Ratings frustrate people and are subjective
Stress-inducing for leader and employee

8. Guiding Principles Fits our Culture Future Focused
Elevates Performance
Simple/Efficient
Objective Measures
Flexible
Employee Engagement
Leader Engagement
Repeatable

9. Features Open, honest two-way communication
Frequent, real-time discussions
Teammates own their own development and performance
Performance AND development goals

10. Process Monthly employee “check-ins”
Two (2) employee “Grow 1:1s” per year
Discussions focusing primarily on the future
Using InsideOut Coaching methodology

11. Check-Ins Real-time/Future-focused coaching Brief: 10 to 15 minutes
Phone/video/Face-to-Face
Compliments longer Grow 1:1s
Brief: 10 to 15 minutes
Monthly
Informal, but meaningful
Typically undocumented

12. Check-In Questions What’s Working? Where are you getting stuck?
What might you do differently?

13. Grow 1:1s Two (2) Times a Year Scheduled (about 30 minutes)
3-6 Month Goals/Focus
One-On-One and Face-to-Face
Specific/Targeted InsideOut Coaching All leaders trained and given a conversation guide

14. InsideOut Coaching
“The biggest obstacle in performance isn’t knowing what to do; its doing what you already know.”
- Alan Fine

15. What is the Calibration Process?5
After the Snapshot conversation, the leader answers five (5) questions in our Human Capital System: TalentWORKS. (4 are rated)

16. What is the Calibration Process?
This teammate’s performance exceeds my expectations.
This teammate’s focus on development exceeds my expectations.
This teammate fully exemplifies our “Team Principles” and “We Are” Performance Expectations.
I would always want her/him on my team. 
_______________________________________
5. This team member is at risk for low performance (yes/no)
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

17. Team Principles & “We Are” Performance Expectations
Behavioral expectations that align with our culture
Our teammates understand and relate to these principles
This provides an integrated approach to expected behaviors.
Used in place of competencies

18. This Team Member is at Risk for Low Performance
If YES:
Add comments to the notes section
The system will inform the HR Generalist, so there can be a conversation

19. Development Plans & Goal Setting
Development Plans and Goals will still be required
At least one goal must be development focused
A critical part of the discussion

20. CELEBRATE TEAM ACCOMPLISHMENTS
Team Recognition
CELEBRATE TEAM ACCOMPLISHMENTS
This is CRITICAL!

21. Leader Expectations
The leader plays a big role in the success of this process
“Check-ins” and “Snapshots” – using the language
InsideOut Coaching
Open and honest two-way communication

22. Some Thoughts Concerns as we rolled this out:
Requires trust in the leader and the entire process
Requires leader to let teammate know where they stand through discussion
Teammates literally do not “see” anything
Would our analytical teammates NEED numbers and ratings?
What issues will arise that we did not think about?

23. nearly two Years Later
What we learned…

24. Observations 44% of employees believe it is more effective.
Feedback (HR Survey) confirmed the new process is working well, but there are opportunities to enhance understanding and the value derived from it.
44% of employees believe it is more effective.
43% think it’s about the same.
74% of leaders believe the new process is more effective than the previous process

25. Improvements Improvements we made based on feedback:
We needed to eliminate confusion on some wording:
We encouraged leaders to say we’re “checking in”, so employees knew it was a check in!
We created an even better InsideOut Conversation Guide for leaders
We communicated an even stronger emphasis on goals review and discussion

26. Data Impact to FCSAmerica/Frontier Thousands of hours saved
High engagement remains (88%)
Strong performance = High profitability
Effectively meeting our goals (Incentive Plan)

27. Start here: Identify a strategy and philosophy for PM
Look to peers and see what is working
Tailor PM to strategic and organizational needs
The core principles of check-ins, agile goal setting, and frequent feedback are becoming common around the world. But some companies still want formal reviews, numeric ratings, and development plans. Adopt new practices at a speed that works for the business.
Upskill managers in coaching skills
Continuous feedback for employees is a critical feature of the new PM paradigm, yet managers often need help learning how to be full-time coaches rather than part-time evaluators.
Put it all together
Determine how changes to PM will inform the organization’s rewards, incentives and compensation

28. two-way communication
“The essence for performance management is
open, honest,
two-way communication
about past performance and future expectations.”
- Center for Effective Organizations