0. Performance Management Overview Spring 2005
Duke
Duke
U N I V E R S I T Y
PAY & PERFORMANCE PROGRAM
PAY & PERFORMANCE PROGRAM
Performance Management Overview
Spring 2005
Performance Management Overview
Spring 2005

1. What is Pay & Performance?
Two-Part Program
 New performance management approach
 New compensation structure
Today’s meeting will focus primarily on the new process for performance management
This is a two part program ... In many ways, the program is misnamed. It probably should be called “PERFORMANCE” & “PAY” rather than the other way around
Pay is a result of performance, which is where we begin.
We will come back in the fall to discuss the new compensation structure in greater detail.

2. Why Pay & Performance? Current State
Inconsistent processes for performance management and pay decisions
No process for performance management in some areas
Pay increases perceived by many as an annual pay adjustment rather than a reward for performance
Many managers do not have clear guidance or necessary resources for performance management
Staff members desire greater support for professional development
[Read bullets]
You may remember that several of these issues around the need for professional development and pay equity were raised through the Women’s Initiative.
The design of Pay & Performance will help address these issues and support the recommendations that came out of this campus-wide study.

3. Why Pay & Performance? Future State
Common foundation and consistent process for performance management
Consistent and fair process for pay decisions
Pay increases linked to performance
Flexibility for units to expand on common foundation
Expectations for individual performance and opportunities for professional development defined
[Read bullets]
The goal of Pay & Performance program is to enable our continued improvement and success. We don’t want to just sustain our place as a leading academic institution, we want to improve. And the only way to do that is to improve performance.
Role of merit pay will be used to explicitly reward individuals for their performance as it relates to achieving specific goals that support their unit/department and the university’s overall mission. Those who do more to help us succeed should be rewarded for doing so … and those who just show up should not expect to receive pay increases without making substantive contributions.

4. Performance Evaluation and Planning (PEP) Form
The new PEP form has two sections on two pages with expandable text sections.
Section One: Evaluation of Past Year
Section Two: Planning for Coming Year
The Pay & Performance program has been designed to be as simple as possible.
In your folder, you will find an example PEP form.
The form begins with evaluation of past year, but in Year 1 (this fiscal year): we will complete only Section II – Planning for Coming Year
Year 2 (next fiscal year): will complete Section I – the evaluation section – based on goals established this year and Section II – planning for next year
There are optional areas on the form and required areas, so that there is flexibility for different units to meet their needs but also a common foundation for all.
The bottom line: the form is only a tool … what’s really important is the discussion between supervisor and staff member … whether about setting goals and expectations or performance evaluation. The form is just a tool to help facilitate that discussion.

5. Section II: Planning for the Coming Year
Goals for the Coming Year
[Transition slide, move to more detailed view for explanation]
Let’s look at Section II first, since this is the area that we’ll be using first.

6. Planning for the Coming Year
Section II contains three areas:
Goal for the Coming Year (will discuss in a moment)
Development Plan (will discuss in a moment)
Signatures (required)
The signature really relates more to the overall form, not just Section II. The form should be signed at the end of the year when the evaluation is complete.
Remember, that while we will begin with Section II this year, this section typically is filled out as part of the overall evaluation and planning discussion with staff.
Once the document is signed, the manager should keep a copy of the form in the employee’s file within the unit.

7. Setting Goals for the Coming Year
This section lists the category of goals for the individual and a description of the goal and measures or targets.
Goals may be activities to complete that are outside the regular job responsibilities (i.e. complete a special project)
Goals may also be specific measurable targets (i.e., achieve a percentage reduction in budget, or improve quality by a certain amount)
[Read bullets]
This section is particularly important to understand now. It is the first part of PEP form to be implemented.

8. Identifying Areas for Development
Identifies the skill or behavior improvement areas and individual needs to perform in their current job or prepare for a future job.
The development plan:
Is established and agreed upon by manager and employee at the end of the performance year.
Describes the development need and how the individual will develop (i.e., through training, special assignment, coaching, practice, etc.).
[Read bullets]
Everyone should have a development plan. We want to encourage growth and professional development of our staff regardless of whether you’re a director or a staff assistant. If we’re not growing in our jobs, we begin to lose that edge … we all need to take time to “sharpen the saw.”
The development plan is particularly important for those whose performance needs improvement. This development plan provides support and direction to help those staff members improve.

9. Let’s Look at an Example – Staff Specialist
This stuff isn’t brain surgery … except maybe in the Medical Center where someone’s job may actually be brain surgery 
But it is important.
Let’s look at a quick example for a staff specialist.

10. One More Example – Financial Management Analyst
One more quick example.

11. Section I: Evaluating the Past Year
[Transition slide, move to more detailed view for explanation]
Now, let’s take a look at Section I: Evaluating the Past Year.

12. Evaluating the Past Year
Section I contains four areas (which we’ll walk through individually in just a moment):
Evaluation of Job Responsibilities
Evaluation of Individual Goals
Evaluation of Behaviors
Manager’s Overall Evaluation (required section)
Before we talk specifically about these four sections, let’s explain the performance ratings.

13. Evaluating Levels of Performance
Duke is committed to linking the opportunity for annual pay increases to performance
Performance evaluations will serve as the means to create this important link
By differentiating performance, more of available budget dollars for pay will used to reward those whose performance contributes to our overall success.
[Read bullets]

14. Defining Levels of Performance
Needs Improvement (NI)
Successful (S)
Exceptional (E)
Individuals who are new in the learning curve and have not mastered key job responsibilities
Inconsistently demonstrates or may be learning the required role knowledge and does not yet fully perform all requirements and duties
Work is regularly incomplete and/or does not meet the minimal standards for quantity or quality; often misses deadlines
Takes little to no initiative, even with prompting
Requires more than the expected level of supervision due to lower quality work or level of learning required to complete role successfully
Inconsistent interactions with peers and/or management
Individuals who regularly meet and sometimes exceed expectations and role requirements
Meets goals set for the year
Possesses full depth and breadth of role knowledge
Perceived by peers, managers, students and other customers as collaborative, skilled and reliable
Consistently interacts effectively with peers and/or management
Individuals who significantly and consistently exceed expectations and role requirements
Exceeds goals set for the year
Demonstrates exceptional depth and breadth of role knowledge, highly recognized by others within the University community
Demonstrates role model behavior for other supervisors/staff members to emulate
Now, in evaluating performance, it helps to have a good understanding of what these ratings mean.
We have created three rating categories.
Needs Improvement:
This can include new employees who have not mastered their job yet as well as employees who have been here many years but are not meeting the responsibilities of their job.
Successful:
There was some debate on the name of these categories … we decided to call the next category Successful because some people tend to feel that “Meeting Expectations” is a C grade or not very good.
We have a high standard and high expectations here at Duke – that’s why we have been successful. Meeting expectations here means you are doing really well, and we want the rating to reflect that.
Exceptional:
We also wanted a category to identify and recognize the handful of people who truly rise above the high expectations and stand out above the crowd.
Not just occasionally, but consistently.
In what they do and how they do it.

15. Evaluation of Job Responsibilities
Responsibilities are based on what is included in the job description and other duties as assigned.
The evaluation is based on the extent to which the employee satisfactorily performed the regular duties of the job.
[Read bullets]

16. Evaluation of Individual Goals
Individual goals should be based on, and linked to, the needs and direction of the department.
Goals are established and agreed upon by manager and employee at the beginning of the performance year and should be expressed as measurable actions and results.
The evaluation is based on the level of achievement of goals.
[Read bullets]

17. Evaluation of Behaviors
Behaviors describe the “how” – how someone acted in performing responsibilities and achieving goals.
Behaviors:
Measure and focus on how the work gets done, not just what gets done.
Includes, but not limited to, the behaviors listed in the Duke Behavior Guidelines.
[Read bullets]
This is a new area of focus … in the past, most organizations have been focused on the results – the bottom line – not how those results were achieved.

18. Evaluation of Behaviors, cont.
Guiding Behaviors for All Staff Members
Customer Focus – Understand the needs and wants of Duke’s customers in order to provide accurate, complete and timely service
Teamwork – Work cooperatively with others to achieve organizational and team goals
Creative Problem-Solving – Create new and valuable ideas and use these ideas to solve problems and develop improved processes and methods
Continuous Learning – Show a commitment to continuous learning and improvement of self, others, and Duke practices
Diversity – Take full advantage of the rich backgrounds and abilities of all by recognizing and valuing differences, seeking inclusiveness, and considering and honoring differing points of view
[Read bullets]

19. Evaluation of Behaviors, cont.
Additional Guiding Behaviors for Those Who Supervise Staff Members
Strategic Communication – Help develop a common vision by providing clear direction and priorities, clarifying roles and responsibilities, and promoting mutual understanding through effective communication
Performance Management – Take the time to effectively plan and evaluate performance, provide feedback, recognition and coaching, and develop employees to be their personal best at Duke
Managing people carries with it additional responsibilities, so those who supervise staff are accountable for two additional behaviors.
Part of the manager’s role is helping staff members understand what is happening in the organization, the context for change and how it affects them.
Performance management is what we’re talking about today, and all managers will be accountable for carrying out this process through their own evaluation.

20. Manager’s Overall Evaluation
Provides an overall evaluation of how an individual performed based on the results of his/her role responsibilities, individual goals and behaviors.
The overall evaluation should be:
Supported by the appropriate documentation or comments
Reviewed with the employee after approval of the manager’s manager
[Read bullets]
While this is the only required section, supervisor have some flexibility in completing the section. For example, some may choose to fill out this section of the form while others may prefer to put the overall evaluation into a letter to the staff member, which can be attached to the form.
Once the form is signed by the employee, a copy should be kept in the employee’s file within the unit.

21. Self-Assessment Required for all managers
Optional for staff members (used before PEP completed)
Some of the advantages of a self-evaluation include:
Allows for self-reflection on job performance during year
Creates opportunity for dialogue about similarities and differences between manager evaluation and self-assessment
Provides time for manager to respond to the staff member’s self-evaluation
[Read bullets]

22. The PEP Annual Calendar
Process and Calendar
The following are the key steps in the annual performance calendar:
July
June
Here’s a look at the annual calendar for the performance management process.
[Walk through steps]
Identify and set goals and role responsibilities
Managers conduct mid-year check-ins with staff
Evaluations completed, ratings submitted for review by senior administration
Pay decisions communicated
Establish professional development action plan
Administration develops salary planning budget
Salary guidelines developed

23. Work with supervisor to set goals for next fiscal year.
Next Steps
Work with supervisor to set goals for next fiscal year.
Review new compensation structure portion of Pay & Performance Program in fall 2005.
[Read bullets]

24. Thank You
Thank for time and attention
Any questions?
Questions?