Measures must be balanced

Leading •Lagging
Financial •Non-
financial
Objective
•Subjective
Internal
•External
Quantitative
•Qualitative
Long term
•Short term
 How many performance measures?
• “Too many measures guarantee you have virtually none”

• Measures should be
• Focused on overall corporate strategy
• Appropriate to their purpose: what and who are you measuring?
• In the right language: “translating into metrics that make sense to the
individual’s work”
• Aligned with an incentive for the individual towards motivation and
commitment to achieving objectives
• Refined only when necessary to realign with strategy
• Focused on information, not data
 Sample measures
• Financial • Customer
• Net profit • Benchmark processes
• Revenue growth • Client surveys
• ROI • Provide value for money
• Return on capital employed • Number of fee-based products
• Shareholder value offered
• % of sales from new products

• Internal processes • Organisational learning &

• New product revenue growth
• Cross –sell ratio • Revenue per employee
• Productivity levels • Employee surveys
• Quality levels of • Strategic skills coverage
products/services • Level of skills retention
• Implement cost reduction • Staff turnover
initiatives that will result in more • Cost savings
efficiencies
Setting targets
 Setting Targets
• Targets involve specifics of what you want to achieve
and by when.

• Some targets can only be set if you know what the base
is.

• One objective could have more than one target but once
again focus is the key.
 Performance Contracts
TEMPLATE
¾Page 1:
Details on person and position
¾ Page 2:
Objectives, Measures, Targets, Ratings (use job
description)
¾ Page 3:
Competencies, Skills, Knowledge and Behaviour
¾ Page 4:
Development Plan
¾ Page 5:
Comments
 Development Plans
•Bridge the gaps in performance related to
objectives and competencies and prioritise an
action plan for development
•A variety of methodologies:
− Training courses
− Education programmes
− Self-study
− Coaching
− Workshops
− Meetings
− Work tasks
− Short-term assignment
− Job rotation
 Performance management system
BALANCED
SCORECARD
Communicate the “big picture” of
the organisation’s strategies and Provide frequent informal
departmental goals to employees coaching that recognises good
and show the relationship of their performance
jobs to the organisation’s results and that gets below-target
success performers back on track
1.
Performance 2.
Planning Performance
and Coaching and
Contracting Feedback

Development
PERFORMANCE plans for each
MANAGEMENT individual

4. 3
Reward Performance
Review

Tie tangible and intangible Gather performance information

rewards to performance levels from employees and assess
each employee’s results vs.
Performance Targets
 Performance coaching and
feedback
¾ Should be on-going
and frequent
¾ Can be informal
¾ Encourage good
performance
¾ Attempt to get below
target performance
back on track
 Performance management system
BALANCED
SCORECARD
Communicate the “big picture” of
the organisation’s strategies and Provide frequent informal
departmental goals to employees coaching that recognises good
and show the relationship of their performance
jobs to the organisation’s results and that gets below-target
success performers back on track
1.
Performance 2.
Planning Performance
and Coaching and
Contracting Feedback

Development
PERFORMANCE plans for each
MANAGEMENT individual

4. 3
Reward Performance
Review

Tie tangible and intangible Gather performance information

rewards to performance levels from employees and assess
each employee’s results vs.
Performance Targets
 Potential Problems with Performance
Reviews…..
¾ Objectives not being set before assignment
¾ Objectives being set 6 months after assignment completed
¾ Staff evaluations 6 months after job completed
¾ Weaknesses identified and discussed months later (too late!)
¾ Comments on a number of assignments condensed into one
appraisal
¾ Managers not taking responsibility for Performance Mgt
¾ Managers regard it as an administrative nuisance
 Potential Problems with Reviewing…

• The Halo effect

• Shifting standards

• Bias

• Lenient/Harsh
Rater
 The appraisal interview
DO DON’T
Be supportive Be confrontational
Be developmental Apply stress
Conduct a conversation End up with a win-lose situation
with a purpose Use tricks and surprise
Engender mutual trust questions
End with a win-win situation
 Types of Employee responses
•Defensive
•
•Passive

•Hurt

•Accepting
 HOW TO HANDLE EMOTIONAL
SITUATIONS
DEFENSIVE

•Ignore the attack or excuse and stick to the

issue at hand
•Admit the truth
•Postpone employee issue until later
•Get back to the issue of performance
•Turn the question back when he/she wants to
derail you
from the topic
 HOW TO HANDLE EMOTIONAL
SITUATIONS
• Passive

• Draw out people by asking questions rather

than
• over-talking your points

• Don’t answer your own questions

 HOW TO HANDLE EMOTIONAL
SITUATIONS
• Hurt

• Don’t get enveloped by employee’s depressed

• reaction, instead describe the performance
• and stick to that

• Paraphrase, reflect, emphasize where appropriate

 HOW TO HANDLE EMOTIONAL
SITUATIONS

Accepting

•During the interview, point out live, here and now,

examples of relationship problems
 Managing conflict in performance
reviews
DEFINITION OF CONFLICT
Conflict can be described as a problem or
disagreement which occurs as a result of
differing ideas or goals
The way a conflict is managed

Rather than suppressed, ignored, or avoided –

contributes significantly to a company’s
effectiveness
 Conflict Modes

ASSERTIVE
COMPETING COLLABORATING

CONCERN FOR
PERSONAL COMPROMISOR
NON- ASSERTIVE

GOALS

AVOIDING ACCOMMODATING

UNCOOPERATIVE COOPERATIVE
 The Accomodator
• Conflict is disturbing
• Does not like conflict
• Will avoid it whenever possible
• Shows the opposite of inner feelings in conflict
situations(Anger = smiling; Tension = humor)
• Is convinced that only bad things can come out of conflict

PHILOSOPHY: In the final analysis it is wise to turn

the other cheek
 The Avoider
• Conflict is bad
• Avoids conflict at all costs
• Leaves the scene if possible
• Does not get personally involved. Follows the rules
• Believes he has no control over the outcome

PHILOSOPHY: It is useless to try to change a person

who seems locked in an opposing view.
 The Compromiser
• Conflict is an intellectual challenge
• No-one wins
• Don’t be confrontational
• Hide your feelings
• Resolution comes with compromise

PHILOSOPHY: Winning is rarely possible in conflict

 The Collaborator

• Conflict is good
• Parties are able to express their opinions
• All parties to a conflict have a valid contribution to make
• There is always middle ground
• Resolved conflict will bring the parties together

PHILOSOPHY: No-one has the final answer to anything

but each has something to contribute
 The Competitor (Controller)
• Conflict is energising
• Takes charge in conflict situations
• Arguments are ready and knows that his position is right
• Uses tactics which work
• Settles the conflict as quickly as possible

PHILOSOPHY: Life is conquered by those who believe

in winning
 Guidelines for managing
unsatisfactory performance
discussions.
•Step 1: Raise the self esteem of the employee
Step 2: Outline the performance areas that need improvement
Step 3: Explain why the present performance causes you
difficulty
Step 4: Find out the reasons for their present performance
and make it clear you understand the position
Step 5: Ask them for ideas on how to improve the
performance and note these ideas
Step 6: Ask them what you can do to help them
Step 7: Confirm mutual action steps to be taken by both of
you
Step 8: Agree a follow-up date
 Your role as a manager
¾ Explain the Bank and department strategy and goals –
attempt to create line of sight.
¾ Help set objectives with your people and ensure that
performance contracts are linked to departmental
objectives.
¾ Clarify job expectations with the employee.
¾ Help with drafting development plans.
¾ Assist the employee to achieve objectives.
¾ Provide on-going coaching and feedback on
performance and development progress.
¾ Collect feedback for formal reviews.
¾ Provide formal performance reviews.
¾ Discuss career aspirations
 Your role as an employee
¾ Collaborate with your manager on drafting your
performance contract.
¾ Ensure that you understand your objectives,
measures and targets.
¾ Create your development plan.
¾ Act on your development plan.
¾ Ask for coaching and feedback from your
manager and others. It is your right to get feedback.
¾ Take an active part in performance review
discussions.
¾ Give feedback to others.
 Performance management system
BALANCED
SCORECARD
Communicate the “big picture” of
the organisation’s strategies and Provide frequent informal
departmental goals to employees coaching that recognises good
and show the relationship of their performance
jobs to the organisation’s results and that gets below-target
success performers back on track
1.
Performance 2.
Planning Performance
and Coaching and
Contracting Feedback

Development
PERFORMANCE plans for each
MANAGEMENT individual

4. 3
Reward Performance
Review

Tie tangible and intangible Gather performance information

rewards to performance levels from employees and assess
each employee’s results vs.
Performance Targets
 Rewards
¾ Align tangible and intangible rewards to
performance

¾ Consequences of both achievement and non-

achievement of objectives

¾ Reinforces positive behaviours

¾ “ The behaviour that gets rewarded gets

repeated”