1. Conducting Effective PDP Discussions
Welcome participants and introduce self.
This workshop was developed to help you as a manager effectively manage the performance of your direct reports. We conducted interviews with managers and many responded the PDP process continued to be a management challenge. This workshop focuses specifically on how to conduct an effective performance discussion.
Performance management is the ongoing process of aligning individual goals to organizational initiatives, and evaluating results
Beryl Fajardo Jordan Chouljian
August 2011 , v. 7

2. Objectives
To understand the importance of the PDP process and how it impacts employee engagement and business results
To provide the skills and tools to help facilitate an effective PDP discussion
To increase manager’s confidence level by engaging in practice PDP discussions

3. Agenda PDP Guiding Principles and Process 5 min
Conducting an Effective PDP Discussion
30 min
Feedback and Coaching
10 min
Tools and Templates
Q&A
Skills Practice
55 min (classroom only)
Summary and Required Actions

4. What do you find most challenging about a PDP discussion?
Discussion Question
What do you find most challenging about a PDP discussion?
Use as a kickoff to the session. Depending on group size, could start discussing in pairs and then go to large group…or just start in large group. During the webinar, managers should chat in their “challenges” for all to see. Use responses to gage skill/experience level of group. Revisit when closing the training.

5. PDP Guiding Principles
Performance appraisal systems are standard in our industry and are designed to drive desired results and consistent management practices
Rating our non-contract employees and encouraging a culture of performance is central to our success as a business
Managers and employees are mutually accountable for making the process useful and valuable

6. Importance of Performance Feedback
High correlation to job satisfaction
Addresses problems early and head-on
Engages employees
Has a greater impact on employee performance than any other communication
As you can see, providing feedback is an important part of the discussion, no matter what rating the employee is getting. And here are some of the reasons…
While we all know how important feedback is…many of us find it very difficult to give, especially giving negative feedback in a constructive way. (Compare building relationships with building results).

7. Feedback Model 1 2 3 4 5 Observation Impact Check Suggestion Agreement
When you said….
I observed you doing…
When you presented…
During the meeting I remember you…
Observation
Observable Behavior without Judgment 1
Impact
How You or Others Were
Affected
The way I was impacted…
Then I noticed the impact on the group…
The impact it had on them was…. 2
Check
Check for Understanding
How did you see it?
Let me check, do you remember it differently?
Did you get the result you wanted? 3
What can help is a model…
Don’t get tied to the language…use your own words. Remember that performance feedback should be “constructive”. If done well, employees should leave the interaction clearer about what is being asked of them, and excited to get a different result next time
Suggestion
Provide Alternatives
I suggest you try…
I would consider saying/doing…
You might think about…
What would you suggest? 4
Agreement
Set Expectations or Opportunities
Here’s what I expect…
Given this, we agree to…
What are you seeing as the next steps… 5

8. Feedback Examples 1 2 3 4 5 Observation Impact Check Suggestion
I noticed you missed several important work deadlines in the last few months…
Observation
Observable Behavior without Judgment 1
Impact
How You or Others Were
Affected
…which had a significant impact on our team’s performance. 2
Check
Check for Understanding
What happened? 3
Some examples…
Suggestion
Provide Alternatives
I’d like you to give yourself more time for completing the task…and since you are working on multiple tasks, I’d like to help by prioritizing what’s more important… 4
Agreement
Set Expectations or Opportunities
How does this sound? Let’s check in next time you are working towards a deadline to see if you need any assistance. 5

9. PDP Process – 5 Steps 1 2 3 4 5 Action Description
Employee writes self appraisal
Drafted by employee and submitted to manager
Employee self-assesses performance against previous goals, and assigns self-rating
Employee drafts goals for next review period 1
Completed by manager and submitted to 2nd level manager and HR for approval
Manager reviews employee’s self assessment and meets as needed
Manager assesses employee’s performance, assigns rating, and writes development plan 2
Manager writes
employee appraisal
2nd level manager and HR review and approve electronically
2nd level manager reviews and approves electronically or submits comments back to manager
HR reviews and approves electronically
2nd level manager
and HR approve
appraisal 3
Here is our current 5-step PDP process (go over each step briefly)
Manager meets with employee to discuss PDP
Manager provides feedback and communicates final rating
Manager discusses next review period goals and development plan 4
Manager meets with
employee to review
appraisal
Sign off completed electronically by manager and employee
Manager provides final comments and signs off electronically
Employee comments and signs off electronically
Manager / Employee
Sign-off 5

10. Today’s Focus – Step 4 1 2 3 4 5 Action Description
Employee writes self appraisal
Drafted by employee and submitted to manager
Employee self-assesses performance against previous goals, and assigns self-rating
Employee drafts goals for next review period 1
Completed by manager and submitted to 2nd level manager and HR for approval
Manager reviews employee’s self assessment and meets as needed
Manager assesses employee’s performance, assigns rating, and writes development plan 2
Manager writes
employee appraisal
2nd level manager and HR review and approve electronically
2nd level manager reviews and approves electronically or submits comments back to manager
HR reviews and approves electronically
2nd level manager
and HR approve
appraisal 3
Today we will focus on step 4 only – the PDP discussion
Manager meets with employee to discuss PDP
Manager provides feedback and communicates final rating
Manager discusses next review period goals and development plan 4
Manager meets with
employee to review
appraisal
Sign off completed electronically by manager and employee
Manager provides final comments and signs off electronically
Employee comments and signs off electronically
Manager / Employee
Sign-off 5

11. PDP Discussion Guide Step 1: Preparation Before the meeting
Review goals and past performance
Create a discussion plan
Rehearse discussion
Before the meeting
During the meeting
(beginning Aug 22)
Step 2: Discuss and Assess
Review performance against goals
Provide feedback and coaching
Communicate rating
Agree to development plan
Here’s an high level overview of the PDP discussion. An effective PDP discussion starts w/ good preparation and ends with good follow up. If these two steps are done well, the actual meeting will go much smoother…
Address any questions about salary adjustments (if applicable), salary grade, and bonus here. Your VP will get information about your area the week of Aug 8. You will have the information you need to communicate any salary adjustments before Aug 22.
After the meeting
Step 3: Act and Follow-up
Provide follow up coaching and maintain relationship 11

12. New 4-point Assessment Scale
Expected Distribution
Rating
Description
Outstanding performance
Strong performance
Satisfactory performance
Needs Improvement
Surpasses difficult goals, performs well above and beyond expectations for someone in this position and tenure
10% 4
Consistently achieves difficult goals or surpasses easy goals, often performs beyond expectations for someone in this position and tenure
30% 3
Achieves easy goals and some difficult goals, performs what is needed occasionally more than expected for this position and tenure
50% 2
This slide was taken from Mark’s town hall meeting…
Reiterate changes from last system and note expected distribution (if your whole team are 3s and 4s, there’s a problem!)
Does not achieve multiple goals, and performance below what is needed for someone in this position and tenure 1
10%

13. PDP Discussion Tips Outstanding Performance (4 Rating)1
Goal
Challenge and Grow - Retain
Employee
Needs
Provide challenging goals – but don’t overload
Find new or stretch assignments
Delegate more to help individual gain exposure and experience 2
During
Discussion
Emphasize their value to the department and organization
Focus on their strengths and areas for improvement.
Discuss their level of job satisfaction and how you can help sustain
Work closely with them on their development plan 3
The employee rating should influence how you conduct the meeting, what your objectives are, and what questions you might ask…
Outstanding Performance 10% - Surpasses difficult goals, performs well above and beyond expectations for someone in this position and tenure
You want to Retain as a business objective. Focus of the discussion is to identify opportunities and ways to challenge, stretch and grow the person. This person takes advantage of opportunities to shine.
What would you like to do more of or less of in your current role and why?
What experiences or responsibilities would you like to have that you currently don't?
Have you identified skill areas for development? What suggestions do you have on how to achieve them in your current role?
Development
Questions 4

14. PDP Discussion Tips Strong/Satisfactory Performance (3 and 2 Rating)
Motivate and Grow – Increase Performance 1
Goal
Employee
Needs
Provide clear expectations with regular feedback, coaching and training
Involve in decision making and be available to advise on solutions
Ensure appropriate praise, opportunity, and recognition 2
Articulate value to the organization, describing key strengths,
Discuss unmet expectations and areas needing development
Set realistic expectations for performance rating
Be clear and specific in your feedback with concrete suggestions for improvement
During
Discussion 3
The employee rating should influence how you conduct the meeting, what your objectives are, and what questions you might ask…
Strong Performance 30% - Consistently achieves difficult goals or surpasses easy goals, often performs beyond expectations for someone in this position and tenure
Satisfactory Performance 50% - Achieves easy goals and some difficult goals, performs what is needed occasionally more than expected for this position and tenure
You want to increase their performance. Work with them to identify specifically what motivates them and ways to enhance their performance and growth.
What do you consider your top strengths and development areas?
What impact do these have on your work and/or the department?
What do you think is required for you to excel in your current role?
Knowledge of ??? is critical in our department. How can you improve in this area?
Development
Questions 4

15. PDP Discussion Tips Needs Improvement (1 Rating)
Goal
Improve Performance
Employee
Needs
Provide direct and regular feedback including role clarity, timelines and priorities
Convey how improved performance affects the team and results
Provide clear guidance and gain commitment on how to improve performance 2
During
Discussion
Raise expectations for the job performance
Define steps to improve performance and note consequences of not improving
Agree on actions and schedule follow-up meeting 3
The employee rating should influence how you conduct the meeting, what your objectives are, and what questions you might ask…
Needs Improvement 10% - Does not achieve multiple goals, and performance below what is needed for someone in this position and tenure
You want to improve their performance or realize they need to move on. The discussion is more about clarity of expectations for improvement in the short-term than it is about career development in the long-term.
What do you believe is required for you to improve in your current role?
How do your strengths and weaknesses impact your work and/or the department?
Knowledge of ??? is critical in our dept. How can you improve in this area?
I would like to see you do more of ??? and less of ???
Development
Questions 4
Note: After 2 consecutive 1 ratings, consult with HR on progressive discipline process (PIP)

16. Development Planning: A Coaches’ Mindset
Establish rapport and build relationship
Create a “coaching” contract
Notice and record performance
Frame observations in a constructive manner
Identify development opportunities and stretch goals
Discuss potential barriers to success
Identify skill gaps and provide support
To effectively manage performance, not only during the PDP discussions, but more importantly during the entire review period, managers should take on the mindset of a coach. Here are some things good coaches consistently do. Go through model highlighting each stage. Note: Good development planning begins at step 1
Why is development planning important?
Accelerates individual performance and growth
Preparation to take on increased responsibility throughout your career
Increases business performance
HA’s long-term success depends on the ability to adapt quickly to market transitions, and embrace an environment of speed and scale 16 16

17. Communicating Overall Score
Dec Jul 2011 performance review weighting is 100% Goals
Written comments should match the overall rating
Be sure to clearly explain the criteria for the overall rating (assess both hard skills and soft skills)
Existing goals imported from Ultipro
For those employees who have not set goals or whose goals are no longer relevant, ratings will be based on an assessment of their overall performance since their last review
Next review period: Weighting 40% Goals, 40% Job Specific Criteria, 20% Company-wide Criteria
Communicating an overall rating for the review
When noting the core responsibilities of the employee, be careful not to customize each person’s expectations. If you have 20 people with the same job, you should have consistent expectations for each job at each grade. Each employee should be compared against the standard expectation. Once you state the standard, then talk about performance specific to the employee. Talk in terms of results and business impact.
Concentrate on both soft skills and hard skills in your assessment. You may have a top performer who does not collaborate well with others or a team player who doesn’t show results.
And remember… even top performers have improvement opportunities. They may not have deficiencies in their current role, but there are always skills they can fine tune or develop for the next role.
Your manager summary should match the rating you assign to the review! Make sure you provide enough qualitative feedback to explain the rating given.
It’s important to keep in mind is that many employees look at the ratings given in the first section of the PDP and believe that the final rating should be an average of those ratings. You may need to remind employees that certain goals and activities are weighted more heavily than others, so the rating for one goal may have more of an impact on the overall rating than other goals. That is why it is important that the final rating is explained thoroughly and the criteria for that rating is well articulated.

18. PDP Discussion Tools and Templates
PDP Discussion Guide
PDP Discussion Planner
Feedback Model
Coaching Mindset
Tips for Career Coaching 18

19. Skills Practice Instructions
Step 1:
Assign roles for activity (Employee, Manager, Observer/Timekeeper)
“Manager” describes their situation. Be sure and identify any derailers that might come up during the discussion (3 min)
Step 2:
Conduct skills practice (5-7 min)
Step 3:
Provide feedback (5 min)
Manager goes first – What did you like? What would you do different next time?
Observer provides feedback to manager; one suggestion for improvement
Employee provides feedback to manager; one suggestion for improvement
Manager takes notes and says “thank you”
Note key lessons learned for class debrief later
Step 4:
Rotate until everyone has a turn or time runs out

20. Skills Practice 1. Manager 3. Observer/Time 2. Employee
Manager shares scenario – 3 min
Conduct skills practice – 5-7 min
Feedback – 5 min
Manager – What went well? What will you do different next time?
Employee/Observer – What went well? What suggestion do you have for improvement?
Give manager feedback form and rotate 20

21. Group Debrief What are some key learnings?
What went well?
What would you do differently next time?
What are some key learnings?
Review the challenges discussed at the beginning of the session – do you feel more confident in having the discussion? Why or why not?

22. Summary Prepare for each discussion; careful planning is key
Give honest feedback, consider any derailers that might take you off track
Take on the mindset of a coach, and focus on developing our company’s greatest asset – our people
Follow-up on agreed upon next steps

23. Required Actions Schedule a meeting with each of your direct reports
Prepare for each employee discussion using the PDP discussion guide and template
Begin PDP discussions on August 22
Calibration process will take place in each group and information on salary adjustments, salary grades, and bonuses will be distributed by Aug 22.
PDP discussions will begin on August 22.

24. Mahalo

25. Resources

26. PDP Discussion Planner
Date of Discussion
Employee name/job role
1. Goal/objective
2. Performance feedback notes/strengths/areas for development
3. Performance rating (trending high/low)
4. Potential employee reactions and/or discussion derailers
5. Potential actions, development opportunities and next steps
Distribute and walk through handout.
As part of your preparation, you should complete a PDP discussion planner for each employee. Note that step 5 is the development planning task 26

27. Tips for Career Coaching
To conduct career coaching conversations that drive mutual success:
- First consider your organization's strategy, future talent needs, your most pressing team priorities, and the work that needs to be done today. In other words, be crystal clear on what matters most to you and your organization.
- Then consider what you know of your employee's talents, experience, interests, goals, and preferred working conditions. Clarify your understanding during the coaching conversation. Ask questions to get to the motivation behind statements like "I want more responsibility" or "I want to do something new."
- Consider the work that needs to be done — on your team or elsewhere in the organization. Which assignments fit that person's skills and interests?
Blessing White's research indicates that about half of employees are looking for meaningful or interesting work in their next career move. Only 8% want a promotion, and only 14% want more money. Those findings support our experience that successful career coaching conversations often result in changes to the employee's current job scope, not an official change in position.
Still bothered by nightmare scenarios of unrealistic employee expectations or dead-end dialogue? Check out the Tips for Career Coaching handout for handling some of the trickier career coaching scenarios. 27 27

28. Writing SMART Goals Specific Measurable Achievable Relevant
Clearly defines the expected outcome or deliverable
Measurable
Can be measured objectively to determine how much was achieved
Achievable
Challenging and doable
Relevant
Focused on the business, and your specific department objectives, not just an activity
Time-specific
Sets realistic and explicit timeframe and dates for performance