1. EFFECTIVE PERFORMANCE APPRAISALS MARCH 2009 Brought to you by

2. Organised : Skilled : Motivated Effective Performance Appraisals Phil Longhorn, Managing Director Conerstone Consulting March 2009 Introduction WIIFM Key elements Summary Q&A

3. Organised : Skilled : Motivated Introduction This presentation aims to show you that when well done, performance appraisals are one of the most effective management tools at your disposal, and as a result your team will be more: Motivated Stable Innovative Recognised Capable of delivering your objectives “Conducting performance appraisals is proven to be one of a Manager’s least favourite duties”

4. Organised : Skilled : Motivated Benefits to you as a Manager More likely to over achieve on your objectives More highly regarded by your customers (internal & external) Trusted Up to date on performance Informed on - Resource planning ( e.g. avoiding “knee jerk” recruitment) - Training needs - Competency gaps - Rewarding your people As a result of becoming more effective with performance- appraising you will be:

5. Organised : Skilled : Motivated Benefits to your Staff More likely to achieve their objectives Know where they stand and what they have to do Trusting More competitive / hungry for success More confident in their career More efficient in using their time Working with you; not for you, nor against you As a result of becoming more effective with performance- appraising your people will be:

6. Organised : Skilled : Motivated The “Golden Thread” “Leading industry studies * show that nearly 95% of workers are unaware of their employer’s specific business objectives and what they can do to help achieve them.” * Source Successfactors.co.uk Points to ponder over What is your company’s business strategy, and goals? What are your Manager’s objectives? What are your objectives? Do your people know what your objectives are? Do your people know what the organisation's goals are?

7. Organised : Skilled : Motivated The “Golden Thread” in action The Golden Thread is designed to allow specific information like goals to cascade through an organisation – to ensure that all staff know what the company needs to complete for it’s goals to be realised. Weaving the the Golden Thread will enable you and your people to; Meet your objectives Contribute directly to meeting your company’s goals Ignore meaningless work Focus on important work Know what you have to do and where you stand

8. Organised : Skilled : Motivated The “Golden Thread” in action BoardManaging DirectorDirectorsSenior ManagersMiddle ManagementSupervisorsOperational Staff BUSINESS VALUE: Delivering unparalleled, high-quality workmanship and service. Sets targets: Budget Outcomes Expectations Sets targets: Increase customer satisfaction Reduce call-backs Decrease in complaints Sets targets: Deliver unparalleled, high- quality workmanship and service Sets targets: Review suppliers Expand contact centre Amend procedures Implement training programme Sets targets: Ensure skills analysis of staff is carried out Spot check with customers after completion of jobs Sets targets: Fill out “completions checklist” after every job Courtesy call to 100% of customers after completion of work Achieve qualification

9. Organised : Skilled : Motivated Summary 1. Clearly define the WHATS Set SMART objectives Get SMART training if needed Apply the “Golden Thread” 2. Clearly define the HOWS Identify which competences are required Define competences in “local language” Apply the “Golden Thread” 3. REVIEW REVIEW REVIEW! Re-assess objectives and progress regularly – at least Quarterly Re-define objectives where necessary No surprises at annual review 3 step guide to developing a high performing team through effective performance-appraisals

10. Organised : Skilled : Motivated The “Whats” “SMART” Specific, Measurable, Achievable, Relevant & Timed Collaboration Agreement between you Reviewed The Golden Thread Instilled in individual target setting Cascades company’s vision, mission and values Feedback to staff and superiors

11. Organised : Skilled : Motivated The “Hows” Communicating Appropriately Ensure your people understand message, and reason behind message Get your people to confirm understanding Pitch to a worker on their level – avoid unnecessary “management speak” The Golden Thread Set targets for your staff after you have received your own Confirm your staff’s objectives are aligned with the mission & values of the company Allow staff to see how they are benefitting the company – this will encourage high performance Competences Understand which skills and behaviours match the job Evidence levels of achieving competences Give staff more to take on as they develop competences

12. Organised : Skilled : Motivated REVIEW, REVIEW, REVIEW Evidence Record as much information as you can Factual vs. Anecdotal evidence Makes Appraisals easy! Personal Review Self-assess your management performance Review with your manager and your people Letting staff know how they’re doing… Promotes good performance Addresses poor performance Solves HR issues EARLY instead of letting them fester

13. Organised : Skilled : Motivated Questions & Answers According to a recent Harvard Business School survey, 37% of all staff activity doesn’t relate to business objectives. Getting Appraisals right is the most effective weapon against wasting time, money and effort on irrelevant activities, and the greatest method of having everyone working towards the same objective – and it’s FREE. How can you positively affect the way appraisals are carried out in your business? Further things to ponder

14. Organised : Skilled : Motivated End of Session www.cornerstone-search.co.uk Recruitment & Training Organisational Behaviour/Development HR Efficiency Solutions Appraisal Systems PHIL LONGHORN phil@cornerstone-search.co.uk