Respected seniors and freinds, I have to do one assignment for hr and the topic is promoting performance-based culture -- how to be done successfully.well i have been given a hint by my prof. that I have to define the concept, when it is to be implemented, suggestion/comparisons in conclusion and i have to take one different level and one different section it can be pvt and public company. Looking forward to your replies.
From India, Delhi
6From India, Delhi
INTRODUCTION
The characteristics of a performance-based culture as follows:
"In a performance-based culture, a premium is placed on excellence in performance—obtaining desired behaviors and results"
"Organizations with performance-based cultures acknowledge that their success is contingent upon the successful performance of their employees"
"Strategic outcomes drive the work of organizations with performance-based cultures"
"Management in these organizations is strongly committed to creating conditions and consequences that support and sustain strong performance"
------------------------------------------------------------------------------------------------------
The following management practices, as being associated with performance-based cultures:
A well-articulated mission and operating system that is understood and accepted by employees
A management climate that encourages taking on new tasks/problems and improving ways to accomplish goals
Organizational goals that are measurable and credible
Clear alignment of department, work unit, and team goals
Employees participate in the development of their individual goals and measures
Investing in training and development
Regular communication with employees about performance results
Regular feedback to employees for career development
A recognition and reward system that supports the importance of good performance at all levels
Adequate funding to acquire the tools and technology needed to succeed.
-------------------------------------------------------------------------
Building a Performance-Based Culture Through Performance Leadership
Performance Leadership is the process of creating for employees a “line of sight” between their work and corporate, business unit and workgroup goals to ensure that their efforts are well-directed. Performance Leadership fully recognises that organisations today often need to shift their strategic focus to meet the changing needs of their customers. The success of the company is based in large part on how well leaders and managers drive employee efforts in the areas that will have the greatest payoff, communicate this direction effectively and reward the achievement of meaningful results. The company will need to ensure that managers are setting the “right” goals and deploying resources (people and non-human capital) effectively.
Performance Leadership is built on four key principles: alignment of goals, accountability, trust and values, and total rewards.
1.Key Principle: Alignment
What employees do and how they do it are the key components of Performance Leadership. The Performance Leadership system includes clear and consistent expectations for every key role, including the “what” (measurable job results and accomplishments) and the “how” (key knowledge, skills and abilities) that contribute to the effective accomplishment of the results.
Goals that are consistent and clearly and frequently communicated are the basis for implementing organisational strategy. The alignment of goals that cascade down from the corporate-wide strategy to the business unit, workgroups and individuals builds a line of sight so employees see where they fit in and provide value.
2.Key Principle: Accountability
Accountability across the organisation is achieved through ongoing communication. Senior management, supervisors and employees set expectations that are consistent and understood. Each member of the workforce is accountable for his own actions as well as for giving feedback that directs actions toward the right business outcomes.
3.Key Principle: Trust and Values
Performance Leadership facilitates building trust throughout the organisation. Trust is the foundation of a high-performing company. Without trusting relationships, managers are unlikely to get the needed levels of long-term commitment from employees, regardless of how effective the tools and processes may be.
Through Performance Leadership, managers develop trust. Creating a trusting relationship requires leaders to establish presence, communicate with candor, provide clarity in their expectations, and seek employees’ involvement and ideas. The end result is a productive, efficient, customer-focused organisation.
4.Key Principle: Performance Linked to Total Rewards
To motivate and reward high performers, finding the right mix of rewards that employees value is key. Both monetary rewards (merit increases, incentives and cash recognition plans) and non-monetary rewards (career development, non-monetary recognition) are valued by high performers.
Performance Leadership identifies what it takes to grow and be rewarded in the organisation. The system identifies the right people for development and advancement.
Key Success Factors
To ensure one reaps the benefits of a well-designed Performance Leadership system, one has to consider the key success factors of implementing the Performance Leadership system. An effectively designed and implemented Performance Leadership system addresses both career development and pay differentiation issues with extremely favourable financial results.
Performance Leadership - Key Success Factors
Support at top levels of the organisation
Alignment of the individual, department and business unit goals with the organisation-wide strategy and goals
Identification of the “what” and the “how” of individual performance
Strong emphasis on implementation, with a defined change management and communication strategy from the beginning
Focus on employee development
Continuous, actionable feedback across the workforce
Transfer of responsibility for performance leadership from Human Resources to the line, with Human Resources performing a consultative role
Increased emphasis on differentially rewarding superior performers and targeting poor performers for improvement.
================================================== ============
To successfully instill a performance-based culture, a comprehensive and strategic performance management system is essential at both the organizational and employee levels. If performance management is done strategically and well, the basic ingredients for a performance-based culture will be in place.
-----------------------------------------------------------
Performance Management at the Organizational Level
Many organizations have implemented a performance management system that typically includes the following components:
* Mission, vision, and values.
* Goals and objectives focused on results or outcomes.
* Performance measures and targets.
* Strategies to achieve targets.
These key components usually comprise the organization's strategic plan. Overall, they are intended to help the organization focus on achieving meaningful, substantive results that fulfill its mission.
In addition to the strategic plan, many organizations also include the following components as part of their organizational performance management system:
* Executive management uses regular organizational performance reviews as a means of reinforcing the performance measures and monitoring progress against organizational goals.
* Organizational self-assessments are used for identifying opportunities for improvement.
-----------------------------------------------------------------------
Management Practices Associated With Performance-Based Cultures
* A well-articulated mission and operating vision that is understood and accepted; each employee understands how his/her work is linked to the organization's mission.
* A management climate that encourages people to tackle new problems and tasks and to look for new and better ways for accomplishing goals.
* Organizational goals that are credible, as well as measurable or verifiable.
* Department, work unit, and team goals that are clearly aligned to the success of the organization.
* Individual goals and measures that are related directly to successful performance; employees participate in the development of the measures.
* Training and development that is an investment in people's professional growth and performance success.
* Regular communication that keeps employees informed of performance results. Communications recognize the importance of employee efforts and help employees understand how their efforts contribute to the organization's success.
* Regular feedback to employees that guides and encourages their growth and career progression.
* A recognition and reward system that reinforces the importance of good performance at all levels, including both financial and nonfinancial rewards; the system encourages people to cooperate and work together. There are opportunities for employees to celebrate their accomplishments.
* Adequate funding to acquire the tools and technology needed to succeed.
* Continuous quality improvement efforts are utilized to address areas of strategic importance.
* Customer surveys or other means of soliciting customer needs and preferences are used.
* Employee surveys and other tools are employed for assessing workplace issues.
----------------------------------------------------------------------------------------------------
Performance Management at the Individual Level
In an organizational performance management system, the organization-wide strategic plan cascades so that each department, work unit, and team has its own linked plan. There is a fairly linear path connecting the organization's mission and expected results to the role of each subordinate unit. Unfortunately, however, that is often where the system stops; the critical process of cascading the plan down to the individual employees is not conducted.
This second-level cascading process is crucial to achieving results; it addresses "the people factor." If the right people with the right competencies are not in place or managed well, it is difficult to effectively and efficiently achieve the organization's strategic goals and objectives.
Individual performance management involves aligning the job of each employee with the organizational strategic plan so that the employee's efforts are focused on behaviors, products/services, and processes that contribute to the success of the organization as a whole. Individual performance management is a systematic approach for assigning work and expectations, supporting and enabling employee efforts, providing assessment and feedback, and following through with appropriate recognition and/or corrective action.
Key components of the individual (employee-level) performance management system include:
* Clear performance expectations for each employee that are linked directly to the desired outcomes set forth in the organization's strategic plan. These performance expectations must be observable, measurable, or otherwise verifiable. The expectations must also include two elements: results or outcomes the employee is expected to achieve in order to be fully successful, and competencies (knowledge, skills, abilities, attitudes, etc.) that the employee is expected to demonstrate behaviorally on the job in order to be fully successful.
* The organization must plan and provide for the individual training and development needed to support the achievement of performance expectations and organizational objectives.
* Management must provide ongoing coaching, feedback, and communication with employees.
* Regular performance appraisals are conducted that assess the employee's actual performance in relation to the performance expectations. Since these expectations are linked to the strategic plan, they become an evaluation of the employee's contribution to achieving the goals of the organization as a whole.
* Timely, meaningful recognition of desired performance is provided.
* Timely corrective action and disciplinary action are given when appropriate.
--------------------------------------------------------------------------------------------------
Why Performance Management is Important
Effective individual performance management is crucial to achieving an organization's vision and process of becoming a performance-based culture. It is a basic and highly important management obligation for which all managers should be held accountable.
Performance management helps avoid performance chaos, the situation that exists in many organizations where employees are working hard, but their efforts don't combine to move the organization in its desired direction. Gaps can occur when work efforts don't connect properly. Redundancies can happen when multiple employees tackle the same tasks without proper coordination. In the worst case, employees can actually contradict each other!
A performance management system that aligns individual work efforts with the organization's strategic plan and that ensures employees are adhering to the plan is the best way to avoid wasted resources, including the inefficient and ineffective use of employee effort, time, and talent.
Additionally, performance management systems provide a fundamentally fair way to guide employees' performance. People need and want to know what's expected of them, how they are doing, what's working well, and what needs improvement.
Finally, the ability to distinguish and meaningfully recognize achievements and desired behavior speaks volumes about what is important and valued in an organization. People need to know how they are contributing to organizational success, and they need appropriate recognition and rewards for their efforts. Performance-management systems are essential for linking recognition and reward to accomplishment of the organization's goals. They move the organization away from a seniority-based or best-effort culture to a true performance-based culture.
================================================== =========
How do I START?
Step 1:
Before a company jumps in, take a hard look at your current practices in people management. Determine your strengths, weaknesses and opportunities to improve.
Determine how far down the organization you want to assess.
STEP 2
Assess The Company Culture
There are many ways to assess your company culture. There are consultants who will do it for you, for a fee. The easiest way to assess your company's culture is to look around. How do the employees act; what do they do? Look for common behaviors and visible symbols.
Listen. Listen to your employees, your suppliers, and your customers. Pay attention to what is written about your company, in print and online. These will also give you clues as to what your company's culture really is.
Step 3
Decide what criteria (behaviors and outcomes) are important to your organization and develop assessment templates that incorporate the criteria. The data required can come from multiple sources.
One client developed a data-rich, one page profile detailing performance and job history, occupational profile, strengths, weaknesses, leadership style, support of corporate values along with commentary on future direction.
Step 4: After the data is collected, complete assessments by individuals. These assessments become the basis for a comprehensive capabilities review of departments and processes. Diagnostic charts highlighting organizational strengths and weaknesses help the top team quickly understand the talent status and make decisions.
STEP 5
Determine The Desired Company Culture
Before you can change the company culture, you have to decide what you want the company culture to look like in the future. Different companies in different industries will have different cultures. Look at what kind of a culture will work best for your organization in its desired future state. Review your mission, vision and values and make sure the company culture you are designing supports them.
Here are some characteristics of company cultures that others have used successfully. Decide which work for your company and implement them.
Mission clarity
Employee commitment
Fully empowered employees
High integrity workplace
Strong trust relationships
Highly effective leadership
Effective systems and processes
Performance-based compensation and reward programs
Customer-focused
Effective 360-degree communications
Commitment to learning and skill development
Emphasis on recruiting and retaining outstanding employees
High degree of adaptability
High accountability standards
Demonstrated support for innovation
STEP 6
Align The Company Culture
You need to align your company culture with your strategic goals if it isn't already.
Develop a specific action plan that can leverage the good things in your current culture and correct the unaligned areas.
Brainstorm improvements in your formal policies and daily practices.
Develop models of the desired actions and behaviors.
Communicate the new culture to all employees and then
over-communicate the new culture and its actions to everyone.
Only a company culture that is aligned with your goals, one that helps you anticipate and adapt to change, will help you achieve superior performance over the long run.
Step 7: Using the assessments, top managers
will make investment plans for groups and individuals. Talent management must build in differing levels of investment. Since dollars for development are finite, companies must decide where they will get the greatest return and make choices regarding where to invest.
Step 8: Follow-up must be scheduled to ensure that tough management decisions are being made and investments in people
are happening. Measures must be put in place to track outcomes. This cannot be a once a year exercise that is not followed through.
Setting Expectations
Key to improving bottom-line performance is ensuring that each employee understands what is expected of him or her. That begins with clear job descriptions — detailed descriptions that outline expectations. The job description also serves as the foundation for evaluating performance and re-directing an employee whose performance is not what it should be.
Leadership
“The reality is that only a small percentage of people are self- starters,” . “A leader motivates people. You have to be proactive to make employees successful.”
Reinforcement
The most important element in implementing a successful incentive plan is reinforcement.
Leaders use more than quantitative goals to reinforce their directives. “The employee needs to be doing the types of things that lead to bottom-line improvements.
Reinforcement systems also include a “celebration culture.”
“Celebrating milestones when they happen is one of the best ways to motivate people to continue to achieve at higher and higher levels,”.
Communication
“It is important that all participants understand exactly how the plan is designed and what they must do to influence the potential size of their rewards.”
Different types of plans need to be communicated differently.
“If all employees are eligible to the same degree, then the plan can be openly communicated to all. But if there are different levels of participation, each needs to be explained individually. And tell employees that there are different participation levels; don’t try to hide differences.”
He also recommends that the CEO meet personally with each plan participant. In larger organizations, that task might fall to a human resources director.
Rewards
suggests that COs make reward payoffs early and often.
The key elements of implementing an incentive plan go to the heart of the reasons for putting a plan in place.
OTHER IMPORTANT ELEMENTS ARE
Talent Recruitment
Effective performance management begins with talent procurement, and THE three-step process—find talent, develop talent and manage performance—starts with the Relations program. The program emphasizes college recruiting, specifically building strong relationships with universities and supporting similar feeder programs. “Selecting the right talent is very important because what people bring to the company when we hire them is a starting point,” “It’s also important to develop the right skills, and often they don’t come with the skills that fit and we need to develop a significant skill base in the use of our tools and processes.”
Talent Development
After the right employees are in place, manages their performance by setting annual goals based on business objectives. Senior leaders write goals and cascade them down through the organization so that employees receive periodic feedback and evaluation on their progress, and adjustments can be made, if needed. Decisions on pay increases or promotions are based on performance, and the appraisal process feeds into other longer-term processes, such as succession planning. “This goal-setting process is often used to sensitize people to new areas that they might not think of otherwise,” Expectations are set clearly, and you get responsiveness to an overall business objective that you would not have if it were left an informal process.”
Talent Management
Performance management involves motivating and directing what employees do on a daily basis. To create premium leadership and management behaviors or to change existing ones to promote optimal performance, actively employs a value statement and covenants, which describe how employees have agreed to treat one another and work together. These values set the standards and create the culture employees live by.
================================================== ===
CHANGING TO PERFORMANCE-BASED CULTURE IS A TRANSFORMATION.
IT REQUIRES 4 HR STRATEGIES.
1.ENGAGE EMPLOYEES.
2.DEVELOP AND MANAGE TALENT
3.ESTABLISH AND MAINTAIN MARKET BASED COMPENSATION
4.MANAGE COMPLEMENT TO ASSURE FLEXIBILITY.
1.ENGAGE EMPLOYEES.
-make the employees customer focused to grow the business.
-performance is recognized and rewarded
-continuous workforce environment improvements
-reduce disputes
-fostering an inclusive environment [ like diversity]
etc etc
2.DEVELOP AND MANAGE TALENT
-recruit and retain talent
-prepare new leaders
-develop succession planning
-develop employees [ training/coaching/developing/mentoring]
etc etc
3.ESTABLISH AND MAINTAIN MARKET BASED COMPENSATION
-expand employee participation program
-explore employee benefits options
-manage workers' compensations
-manage employees availability
etc etc
4.MANAGE COMPLEMENT TO ASSURE FLEXIBILITY.
-standardize complement management tools
-standardize analytics tools for better planning
-develop accurate model to project future needs.
-utilize data to drive complement decision making.
etc etc
hope this is useful to you
REGARDS
LEO LINGHAM
From India, Mumbai
The characteristics of a performance-based culture as follows:
"In a performance-based culture, a premium is placed on excellence in performance—obtaining desired behaviors and results"
"Organizations with performance-based cultures acknowledge that their success is contingent upon the successful performance of their employees"
"Strategic outcomes drive the work of organizations with performance-based cultures"
"Management in these organizations is strongly committed to creating conditions and consequences that support and sustain strong performance"
------------------------------------------------------------------------------------------------------
The following management practices, as being associated with performance-based cultures:
A well-articulated mission and operating system that is understood and accepted by employees
A management climate that encourages taking on new tasks/problems and improving ways to accomplish goals
Organizational goals that are measurable and credible
Clear alignment of department, work unit, and team goals
Employees participate in the development of their individual goals and measures
Investing in training and development
Regular communication with employees about performance results
Regular feedback to employees for career development
A recognition and reward system that supports the importance of good performance at all levels
Adequate funding to acquire the tools and technology needed to succeed.
-------------------------------------------------------------------------
Building a Performance-Based Culture Through Performance Leadership
Performance Leadership is the process of creating for employees a “line of sight” between their work and corporate, business unit and workgroup goals to ensure that their efforts are well-directed. Performance Leadership fully recognises that organisations today often need to shift their strategic focus to meet the changing needs of their customers. The success of the company is based in large part on how well leaders and managers drive employee efforts in the areas that will have the greatest payoff, communicate this direction effectively and reward the achievement of meaningful results. The company will need to ensure that managers are setting the “right” goals and deploying resources (people and non-human capital) effectively.
Performance Leadership is built on four key principles: alignment of goals, accountability, trust and values, and total rewards.
1.Key Principle: Alignment
What employees do and how they do it are the key components of Performance Leadership. The Performance Leadership system includes clear and consistent expectations for every key role, including the “what” (measurable job results and accomplishments) and the “how” (key knowledge, skills and abilities) that contribute to the effective accomplishment of the results.
Goals that are consistent and clearly and frequently communicated are the basis for implementing organisational strategy. The alignment of goals that cascade down from the corporate-wide strategy to the business unit, workgroups and individuals builds a line of sight so employees see where they fit in and provide value.
2.Key Principle: Accountability
Accountability across the organisation is achieved through ongoing communication. Senior management, supervisors and employees set expectations that are consistent and understood. Each member of the workforce is accountable for his own actions as well as for giving feedback that directs actions toward the right business outcomes.
3.Key Principle: Trust and Values
Performance Leadership facilitates building trust throughout the organisation. Trust is the foundation of a high-performing company. Without trusting relationships, managers are unlikely to get the needed levels of long-term commitment from employees, regardless of how effective the tools and processes may be.
Through Performance Leadership, managers develop trust. Creating a trusting relationship requires leaders to establish presence, communicate with candor, provide clarity in their expectations, and seek employees’ involvement and ideas. The end result is a productive, efficient, customer-focused organisation.
4.Key Principle: Performance Linked to Total Rewards
To motivate and reward high performers, finding the right mix of rewards that employees value is key. Both monetary rewards (merit increases, incentives and cash recognition plans) and non-monetary rewards (career development, non-monetary recognition) are valued by high performers.
Performance Leadership identifies what it takes to grow and be rewarded in the organisation. The system identifies the right people for development and advancement.
Key Success Factors
To ensure one reaps the benefits of a well-designed Performance Leadership system, one has to consider the key success factors of implementing the Performance Leadership system. An effectively designed and implemented Performance Leadership system addresses both career development and pay differentiation issues with extremely favourable financial results.
Performance Leadership - Key Success Factors
Support at top levels of the organisation
Alignment of the individual, department and business unit goals with the organisation-wide strategy and goals
Identification of the “what” and the “how” of individual performance
Strong emphasis on implementation, with a defined change management and communication strategy from the beginning
Focus on employee development
Continuous, actionable feedback across the workforce
Transfer of responsibility for performance leadership from Human Resources to the line, with Human Resources performing a consultative role
Increased emphasis on differentially rewarding superior performers and targeting poor performers for improvement.
================================================== ============
To successfully instill a performance-based culture, a comprehensive and strategic performance management system is essential at both the organizational and employee levels. If performance management is done strategically and well, the basic ingredients for a performance-based culture will be in place.
-----------------------------------------------------------
Performance Management at the Organizational Level
Many organizations have implemented a performance management system that typically includes the following components:
* Mission, vision, and values.
* Goals and objectives focused on results or outcomes.
* Performance measures and targets.
* Strategies to achieve targets.
These key components usually comprise the organization's strategic plan. Overall, they are intended to help the organization focus on achieving meaningful, substantive results that fulfill its mission.
In addition to the strategic plan, many organizations also include the following components as part of their organizational performance management system:
* Executive management uses regular organizational performance reviews as a means of reinforcing the performance measures and monitoring progress against organizational goals.
* Organizational self-assessments are used for identifying opportunities for improvement.
-----------------------------------------------------------------------
Management Practices Associated With Performance-Based Cultures
* A well-articulated mission and operating vision that is understood and accepted; each employee understands how his/her work is linked to the organization's mission.
* A management climate that encourages people to tackle new problems and tasks and to look for new and better ways for accomplishing goals.
* Organizational goals that are credible, as well as measurable or verifiable.
* Department, work unit, and team goals that are clearly aligned to the success of the organization.
* Individual goals and measures that are related directly to successful performance; employees participate in the development of the measures.
* Training and development that is an investment in people's professional growth and performance success.
* Regular communication that keeps employees informed of performance results. Communications recognize the importance of employee efforts and help employees understand how their efforts contribute to the organization's success.
* Regular feedback to employees that guides and encourages their growth and career progression.
* A recognition and reward system that reinforces the importance of good performance at all levels, including both financial and nonfinancial rewards; the system encourages people to cooperate and work together. There are opportunities for employees to celebrate their accomplishments.
* Adequate funding to acquire the tools and technology needed to succeed.
* Continuous quality improvement efforts are utilized to address areas of strategic importance.
* Customer surveys or other means of soliciting customer needs and preferences are used.
* Employee surveys and other tools are employed for assessing workplace issues.
----------------------------------------------------------------------------------------------------
Performance Management at the Individual Level
In an organizational performance management system, the organization-wide strategic plan cascades so that each department, work unit, and team has its own linked plan. There is a fairly linear path connecting the organization's mission and expected results to the role of each subordinate unit. Unfortunately, however, that is often where the system stops; the critical process of cascading the plan down to the individual employees is not conducted.
This second-level cascading process is crucial to achieving results; it addresses "the people factor." If the right people with the right competencies are not in place or managed well, it is difficult to effectively and efficiently achieve the organization's strategic goals and objectives.
Individual performance management involves aligning the job of each employee with the organizational strategic plan so that the employee's efforts are focused on behaviors, products/services, and processes that contribute to the success of the organization as a whole. Individual performance management is a systematic approach for assigning work and expectations, supporting and enabling employee efforts, providing assessment and feedback, and following through with appropriate recognition and/or corrective action.
Key components of the individual (employee-level) performance management system include:
* Clear performance expectations for each employee that are linked directly to the desired outcomes set forth in the organization's strategic plan. These performance expectations must be observable, measurable, or otherwise verifiable. The expectations must also include two elements: results or outcomes the employee is expected to achieve in order to be fully successful, and competencies (knowledge, skills, abilities, attitudes, etc.) that the employee is expected to demonstrate behaviorally on the job in order to be fully successful.
* The organization must plan and provide for the individual training and development needed to support the achievement of performance expectations and organizational objectives.
* Management must provide ongoing coaching, feedback, and communication with employees.
* Regular performance appraisals are conducted that assess the employee's actual performance in relation to the performance expectations. Since these expectations are linked to the strategic plan, they become an evaluation of the employee's contribution to achieving the goals of the organization as a whole.
* Timely, meaningful recognition of desired performance is provided.
* Timely corrective action and disciplinary action are given when appropriate.
--------------------------------------------------------------------------------------------------
Why Performance Management is Important
Effective individual performance management is crucial to achieving an organization's vision and process of becoming a performance-based culture. It is a basic and highly important management obligation for which all managers should be held accountable.
Performance management helps avoid performance chaos, the situation that exists in many organizations where employees are working hard, but their efforts don't combine to move the organization in its desired direction. Gaps can occur when work efforts don't connect properly. Redundancies can happen when multiple employees tackle the same tasks without proper coordination. In the worst case, employees can actually contradict each other!
A performance management system that aligns individual work efforts with the organization's strategic plan and that ensures employees are adhering to the plan is the best way to avoid wasted resources, including the inefficient and ineffective use of employee effort, time, and talent.
Additionally, performance management systems provide a fundamentally fair way to guide employees' performance. People need and want to know what's expected of them, how they are doing, what's working well, and what needs improvement.
Finally, the ability to distinguish and meaningfully recognize achievements and desired behavior speaks volumes about what is important and valued in an organization. People need to know how they are contributing to organizational success, and they need appropriate recognition and rewards for their efforts. Performance-management systems are essential for linking recognition and reward to accomplishment of the organization's goals. They move the organization away from a seniority-based or best-effort culture to a true performance-based culture.
================================================== =========
How do I START?
Step 1:
Before a company jumps in, take a hard look at your current practices in people management. Determine your strengths, weaknesses and opportunities to improve.
Determine how far down the organization you want to assess.
STEP 2
Assess The Company Culture
There are many ways to assess your company culture. There are consultants who will do it for you, for a fee. The easiest way to assess your company's culture is to look around. How do the employees act; what do they do? Look for common behaviors and visible symbols.
Listen. Listen to your employees, your suppliers, and your customers. Pay attention to what is written about your company, in print and online. These will also give you clues as to what your company's culture really is.
Step 3
Decide what criteria (behaviors and outcomes) are important to your organization and develop assessment templates that incorporate the criteria. The data required can come from multiple sources.
One client developed a data-rich, one page profile detailing performance and job history, occupational profile, strengths, weaknesses, leadership style, support of corporate values along with commentary on future direction.
Step 4: After the data is collected, complete assessments by individuals. These assessments become the basis for a comprehensive capabilities review of departments and processes. Diagnostic charts highlighting organizational strengths and weaknesses help the top team quickly understand the talent status and make decisions.
STEP 5
Determine The Desired Company Culture
Before you can change the company culture, you have to decide what you want the company culture to look like in the future. Different companies in different industries will have different cultures. Look at what kind of a culture will work best for your organization in its desired future state. Review your mission, vision and values and make sure the company culture you are designing supports them.
Here are some characteristics of company cultures that others have used successfully. Decide which work for your company and implement them.
Mission clarity
Employee commitment
Fully empowered employees
High integrity workplace
Strong trust relationships
Highly effective leadership
Effective systems and processes
Performance-based compensation and reward programs
Customer-focused
Effective 360-degree communications
Commitment to learning and skill development
Emphasis on recruiting and retaining outstanding employees
High degree of adaptability
High accountability standards
Demonstrated support for innovation
STEP 6
Align The Company Culture
You need to align your company culture with your strategic goals if it isn't already.
Develop a specific action plan that can leverage the good things in your current culture and correct the unaligned areas.
Brainstorm improvements in your formal policies and daily practices.
Develop models of the desired actions and behaviors.
Communicate the new culture to all employees and then
over-communicate the new culture and its actions to everyone.
Only a company culture that is aligned with your goals, one that helps you anticipate and adapt to change, will help you achieve superior performance over the long run.
Step 7: Using the assessments, top managers
will make investment plans for groups and individuals. Talent management must build in differing levels of investment. Since dollars for development are finite, companies must decide where they will get the greatest return and make choices regarding where to invest.
Step 8: Follow-up must be scheduled to ensure that tough management decisions are being made and investments in people
are happening. Measures must be put in place to track outcomes. This cannot be a once a year exercise that is not followed through.
Setting Expectations
Key to improving bottom-line performance is ensuring that each employee understands what is expected of him or her. That begins with clear job descriptions — detailed descriptions that outline expectations. The job description also serves as the foundation for evaluating performance and re-directing an employee whose performance is not what it should be.
Leadership
“The reality is that only a small percentage of people are self- starters,” . “A leader motivates people. You have to be proactive to make employees successful.”
Reinforcement
The most important element in implementing a successful incentive plan is reinforcement.
Leaders use more than quantitative goals to reinforce their directives. “The employee needs to be doing the types of things that lead to bottom-line improvements.
Reinforcement systems also include a “celebration culture.”
“Celebrating milestones when they happen is one of the best ways to motivate people to continue to achieve at higher and higher levels,”.
Communication
“It is important that all participants understand exactly how the plan is designed and what they must do to influence the potential size of their rewards.”
Different types of plans need to be communicated differently.
“If all employees are eligible to the same degree, then the plan can be openly communicated to all. But if there are different levels of participation, each needs to be explained individually. And tell employees that there are different participation levels; don’t try to hide differences.”
He also recommends that the CEO meet personally with each plan participant. In larger organizations, that task might fall to a human resources director.
Rewards
suggests that COs make reward payoffs early and often.
The key elements of implementing an incentive plan go to the heart of the reasons for putting a plan in place.
OTHER IMPORTANT ELEMENTS ARE
Talent Recruitment
Effective performance management begins with talent procurement, and THE three-step process—find talent, develop talent and manage performance—starts with the Relations program. The program emphasizes college recruiting, specifically building strong relationships with universities and supporting similar feeder programs. “Selecting the right talent is very important because what people bring to the company when we hire them is a starting point,” “It’s also important to develop the right skills, and often they don’t come with the skills that fit and we need to develop a significant skill base in the use of our tools and processes.”
Talent Development
After the right employees are in place, manages their performance by setting annual goals based on business objectives. Senior leaders write goals and cascade them down through the organization so that employees receive periodic feedback and evaluation on their progress, and adjustments can be made, if needed. Decisions on pay increases or promotions are based on performance, and the appraisal process feeds into other longer-term processes, such as succession planning. “This goal-setting process is often used to sensitize people to new areas that they might not think of otherwise,” Expectations are set clearly, and you get responsiveness to an overall business objective that you would not have if it were left an informal process.”
Talent Management
Performance management involves motivating and directing what employees do on a daily basis. To create premium leadership and management behaviors or to change existing ones to promote optimal performance, actively employs a value statement and covenants, which describe how employees have agreed to treat one another and work together. These values set the standards and create the culture employees live by.
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CHANGING TO PERFORMANCE-BASED CULTURE IS A TRANSFORMATION.
IT REQUIRES 4 HR STRATEGIES.
1.ENGAGE EMPLOYEES.
2.DEVELOP AND MANAGE TALENT
3.ESTABLISH AND MAINTAIN MARKET BASED COMPENSATION
4.MANAGE COMPLEMENT TO ASSURE FLEXIBILITY.
1.ENGAGE EMPLOYEES.
-make the employees customer focused to grow the business.
-performance is recognized and rewarded
-continuous workforce environment improvements
-reduce disputes
-fostering an inclusive environment [ like diversity]
etc etc
2.DEVELOP AND MANAGE TALENT
-recruit and retain talent
-prepare new leaders
-develop succession planning
-develop employees [ training/coaching/developing/mentoring]
etc etc
3.ESTABLISH AND MAINTAIN MARKET BASED COMPENSATION
-expand employee participation program
-explore employee benefits options
-manage workers' compensations
-manage employees availability
etc etc
4.MANAGE COMPLEMENT TO ASSURE FLEXIBILITY.
-standardize complement management tools
-standardize analytics tools for better planning
-develop accurate model to project future needs.
-utilize data to drive complement decision making.
etc etc
hope this is useful to you
REGARDS
LEO LINGHAM
From India, Mumbai
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Performance.Bas ed.Management.p df
Performance based break up.xls