Posts Tagged ‘performance appraisal’

Four Core Things I Believe About Life in Organizations

04/04/2012

I learned something important about myself on the weekend. I am less patient with myself now and much less accepting of some of the things others in my society believe about life in organizations. I don’t expect to be seen as being any more “right” in my views now than in my earlier years. I don’t expect folks in general to agree with me any more than they did in the past – that is up to them. But I do find that I am not prepared to engage in as much dialogue about these beliefs with those who see things differently, unless that dialogue leads to real constructive action that benefits both of us.

I have worked for a long time. Over the course of my career, I have kept up a constant involvement in academic life – as a night student, graduate student, part time lecturer and distance education participant. I have and still read widely in management and workplace psychology. I have thought hard about what I was doing at work and how I was leading the folks who worked for me.

I have come to these four conclusions by reflecting on both the reading and the experience. I have quietly held them for years. They underlie all my consulting work and business related writing.

1. Performance appraisal is a waste of time if you are looking for business results.

Our evolved instinctive approaches to living in tribes makes power based interpersonal relationships vey much part of the way that we work together. We like tribally defined hierarchies. We need leaders and followers. We need to know where we stand in these tribal power structures. Performance appraisal does a fine job of addressing these needs. But it does nothing at all to increase an organization’s ability to generate results.

I have personally appraised dozens of direct reports. I have directed the building of innovative computer based performance appraisal systems. I have led the implementation of such performance appraisal systems in large large IT organizations (> 1500 professionals).

But I now accept very little of my work around performance appraisal contributed to improving the results we delivered in the organizations for which I worked. I now know that backward looking performance appraisal simply does not justify the energy it takes to do and the anxiety and mistrust that it creates in the people who were appraised.

Forward looking performance contracting is different. Performance contracting means looking ahead, not looking back. It consists of:

  1. negotiating what an individual will do in the coming months and year,
  2. clarifying how this relates to what others, including the person whom the individual is dependent on, are doing,
  3. agreeing on how the to be delivered by the individual are going to be measured  by both the person and the boss (i.e. they each need independent access to the data that makes up the measures);
  4. and then getting together regularly to review delivered personal results against the agreed upon performance objectives.

Managers who do performance contract in this way lead at work. They inspire. They shape the future through the actions of the people who work for them.

It worked for me. I have twice created IT organizations that outside auditors independently judged to be “world class excellent”. In both organizations, I did performance contracting with my direct reports, and encouraged them to do so with the people who worked for them. Together, we supported the cascade of this approach down our organization.

Performance contracting is not easy. The boss must make a personal commitment to simultaneously treating the people who work for the boss as problem solving peers and as results-responsible direct reports. Doing so involves accepting and working with the dynamic contradictions between these two roles. As power solving peers, the two people share power and a kind of equality. As direct report and boss, they are in a clearly defined power hierarchy. Recognizing and respecting these differences, and dealing with the conflict they create, takes self awareness and self containment on the part of the boss.

Bosses must discipline themselves to continuously clarify when they are behaving as a problem solving peer and when they are behaving as a results evaluating superior.

At times, bosses must negate the “power surge” that comes from being a results evaluating superior so they can effectively coach as a problem solving peer They must resist the temptation to use the power component of the relationship to simply dictate the solutions to problems when the two of them engage as problem solving peers. They must accept that simply telling does not always lead to understanding on the part of the direct report. They must act as if this is the boss’s failure, not the direct report’s, when this occurs.

At other times, particularly at the end of the performance period, bosses must take on the tough challenge of carrying though on negative consequences when the direct report’s performance has been lacking. This is not easy if the boss has developed a “liking” for the person through working with the individual as a problem solving peer. It will be even harder if the boss has failed to coach effectively in the regular review meetings between the two.

Human beings’ instinctive approach to managing performance in organizations – power based performance appraisal – is much easier, especially on bosses. It just does not motivate the folks who are appraised to produce “above every day” or excellent results.

2. Organizations waste the dollars they spend on interpersonal skill training (e.g. programs on leading others, resolving conflict …).

If behavior on the job does not change as a result of training, the money spent on it is wasted.

Very little interpersonal behavior training leads changes on the job, despite the millions of dollars spent on managerial, supervisory and interpersonal skills training. Every one “kind of” knows this. That is why there is so few systematic follow up programs to measure actual “on the job” behavior after such training programs. As long as we don’t have to face the facts, we can continue to believe.

There are two reasons why behavior change back on the job after participating in interpersonal skill type of training program is so hard.

1. Unless individuals are personally motivated, they are not going to change their behavior back at work (or in their personal lives), even it they learn the underlying ideas and concepts.

Self selection and self initiation of participation in such training is a good indicator of the needed motivation. Personally enrolling oneself in this type of course is a good predictor that the individual might have the needed motivation needed to actually change behavior back on the job. Expending personal resources to pay for the training is an even better one.

Being “sent” on such program by your organization has very little to do with having the level of personal motivation needed to actually change behavior on the job. Yet many organizations ask people to attend such training programs because the “boss” thinks it is a good thing, or because it is the norm for all people who first enter a certain job level, or because some executive has come to believe that this type of training has pay back.

2. Individuals behave in interlocked patterns at work. If one person changes his or her interpersonal behavior, the others the person interacts with have to change theirs as well. These other people are often not motivated to do so. Instead, they put group peer pressure on the person who changes his or her behavior after attending a training program to revert back to the old behaviors the person had before they went on the training program – the social extinction effect. Most individuals who try to implement new behaviors do revert back to the old behaviors in the face of this implicit social pressure. The training investment is lost.

The individuals who persist in wanting to change their behavior after such training often respond to the peer pressure by finding new people to work with. Usually, this means moving to a new job. Often, that new job is with another employer. The training investment is lost.

Organizations who want to really change interpersonal behavior patterns need to engage in systematic culture change programs. As well as training, such programs involve visible recognition and compensation programs that reward the “new behavior”. These programs also involve specific activities that counter “resistance” to change on the part of current members of the culture.

Such programs are difficult to plan and to execute. They must work from the top down and the bottom up in a coordinated way. They are intensely resource demanding. They require persistence over extended periods of time. Few organizations succeed at such culture change programs at the level of “walk”.  Most organizations though engage in “talk” as if they are doing such things, even if they don’t really do them.

There are a couple of simple things to consider as a result of these dynamics.

If you invest in an individual’s interpersonal behavior change, you need to move them into a new job to have a reasonable chance of recouping on your investment.

When individuals are motivated to spend personal resources on changing their interpersonal behavior at work, they are also at high risk for leaving your organization in order to find another job where they can practice those new skills.

3. Interview based recruiting is all about “good enough” hiring, not future performance excellence on the job.

The academic research is clear – talk during recruiting interviews is not correlated with eventual final candidate performance on the job. But everybody continues to do to use talk based interviewing as their primary recruiting tool. Why?

Talk based interviewing finds “good enough” candidates – both on the technical skill level and culture fit level. Talk based interviewing does not systematically succeed in finding the “best candidates”. It does not need to. Good enough is good enough for most organizations. Few organizations are really excellent. Most organizations talk ‘excellence”, even when they don’t “walk” it.

It is possible to recruit for excellence. It takes “show us how you will perform with the people that you will be working with” recruiting techniques. This means crafting work based role plays and work based simulations. They are more difficult to set up and to facilitate than interviews. Creating them, and then facilitating them, is far beyond the skill of most recruiting professionals.

The best way to see how a person will behave in the future – on the job, is to get them to behave currently.  Get candidates to do, not talk about what they have done. Even “behavior based interviewing” does not do that.

Job based role plays and work simulations go some way to allowing the assessment of performance fit. Involving future peers in interacting with candidates and then systematically collecting their impression of fit allows some level of assessment of cultural fit.

The best hires – excellent performance fit to a particular job and superb emotional fit to a specific organization’s culture – are often temporary folks who have already “demonstrated” how they will perform on the job. You see what they can do and how they will interact with their fellow co-workers during their temporary assignment. The best predictor of future behavior is always past behavior.

Bringing the person in on a temporary basis is the best way to assess both performance fit and culture fit. It remains the best hiring tactic if you are hiring for excellence. If you are not, and most organizations do hire for good enough, then the talk that happens in recruiting interviews will do.

4. Many human abilities are as much instinctive as thoughtful. Excellence at work requires thought rather than just responding instinctively.

More and more, modern research is showing how much of our human capability to do and to interact with others utilizes ability systems that located in the pre-conscious parts of our brains. These evolved ability systems let us become the dominant species on the planet hundreds of thousands of years ago.

Somewhere in the past 40,000 years or so, we began to move from being tribal creatures to being societal ones. We started to live in conglomerations of individuals which were bigger than one tribe. Previously, as simple tribal members, we might have had occasional interactions with members of a number of other geographically local tribes. But as societal creatures, we developed (i.e. added) the ability to be concurrent members of a number of tribe-like social collections that exist within our societies.

As societal creatures, we developed organizations that specialized in achieving at least some of the objectives of each of their members. We shaped these organizations in which that reflected our evolution as tribal beings. Our organizations have hierarchies and insider/outsider dynamics that we developed as tribal creatures. At the same time, as societal creatures, we developed shared mechanisms and processes for collaborating within and across these organizations.

Organizations traded with other organizations for the resources needed to achieve those objectives of each organization’s members. Thoughtful, structured, planned ways of interacting with individuals in these other organizations became as important a part of our human abilities as our instinctive ways of interacting with other individuals in families and in tribes.

Today, we have all these types of ability. Our gene based evolutionary history adds new abilities to our competency repertoires. It does replace the ones we already have with new ones. Neither does evolution act to integrate new abilities with old ones in balanced way. As a species, we have simply added the new more thought based organizational abilities to our older instinctive interpersonal familial and tribal ones.

Stress is a large of our organizational and societal life. Under stress, we tend to fall back on our instinctive abilities, even when they might not be as effective for dealing with a given situation as our thoughtful abilities. Our instinctive abilities often define our business and societal interactions. Much confusion and turbulence occurs in organizations and in societies as a result.

Understanding and mitigating the results of these dynamics requires that managers in organizations consciously override their instinctive first responses with careful, thoughtful, analytically-based responses. The next generation of organizational behavior writing and business professional development curriculum needs to be much more clearly explicit about the evolutionary nature of human abilities. We need to move from theories of “emotional intelligence” to ones that more clearly reflect the additive evolution of our abilities. We need to make sure that managers understand that they concurrently have instinctive interpersonal and thoughtful organizational abilities. We need to help them recognize that our instinctive abilities, the ones we all move to under most levels of stress, are not the best ones to use to respond to the demands of organizational and societal life.

Conclusion

There is tremendous hope for us as human beings. Our evolution has given us the ability to shape our collection future through collaborative, thoughtful organizational action. But we often do not. Our evolution has also given us the capacity to interact in ways that are firmly embedded in the pre-conscious instinctive abilities that evolved when we were members of families living in tribes. We need to move beyond the familial and tribal in organizational and societal life in order to have a future of hope, not one of self defeating strife.

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Engage your staff – start performance contracting and stop performance appraising

01/06/2012

Are you, like thousands of managers, dreading the performance appraisals that you need to do at the end of every year? You are not alone. Just about every survey of working professionals that asks questions about performance appraisal document the discontent that people feel with the performance appraisal process.

So how do you make this better? How do you avoid the year end performance appraisal blues? Simple, really. Make a resolution to move from performance appraisal to performance contracting in 2012. Here’s how to do it in seven easy steps.

1. Start by making a list of each of the people for work for you. Then for each one, brainstorm the things that they do for you. Use the outline facility in Word or a software tool like Inspiration or paper and pencil, whatever works for you.

2. Once you have an initial list, re-organize it until you have between 3 and 7 main responsibilities for each person. It’s hard to work with more. if your list is longer, group things together until you have the 3 to 7 you need.

3. Now imagine that this person is going to do a great job on each of these 3 to 7 items throughout 2012. Visualize this. Run an internal film or set of pictures if that works for you. Ask yourself the following questions about each of the 3 to 7 responsibilities. Use the following script to help you do this.

“Jack (or whatever the person’s name is) is doing a great job at xxxx (fill in one of the responsibilities in your list). So what will I be:

◦ Seeing – what’s showing me that … (the person’s name) … is doing a great at this?
◦ Hearing – who’s telling me that that …. (the person’s name) … is doing a great job at this? What are they telling me?”

4. Translate what you are imagining – seeing and hearing – into a single statement – a measure or metric that lets you and others know that this person is doing a great job at this item. Ask yourself the following question as you do this.

“Will I be hearing and seeing this every day, every week, every quarter, …?”

That adds an important time dimension. The shorter, the better. Keep then under a quarter.

5. Organize your results into a single page. List the 5 to 7 responsibilities. Put the appropriate measure or metric below each one. Title the page “Draft performance contract for … the person’s name.” Make two copies.

6. Now you are ready to have a meeting with the person. Give the person a copy of the draft performance contract. Work through it together. See if the individual is clear about each item and each measure. Listen to any issues the individual has about any item. If these concerns help clarify things and make the measures even more concrete and specific, modify the page to reflect these concerns.

7. When the two of you are through, you negotiated a straight forward performance contract between you. Turn the modified draft into a final version. Make two copies of it. Each of you sign both copies, and then take one for yourself. Doing so finalizes the contracting process between you.

Only 1 more thing to do and you are on your way a hassle free performance appraisal at year end.

Schedule a meeting once a month with each person who works for you. Bring your copies of the performance contract. As you go through your one page together, ask yourselves:

“Am I seeing and hearing what we thought we would be seeing and hearing? Are the measures being met?”

“If yes, great -.let’s keep going.”
“If no, what can we do to get back on track?”

There, you have stopped performance appraising and become a performance contractor. Instead of looking back and evaluating, you are looking ahead and coaching.

You will find that your folks appreciate knowing what they have to and how it will be measured. They will probably surprise you by exceeding some of the measures.

If performance problems do occur, then the two of you have become collaborative problems solvers. Together, you will focus on fixing performance problems as they occur, not evaluating them after the fact.

“Shape The Future, don’t appraise the past.”™

You Cannot Manage What You Cannot Measure

03/31/2011

The C-Level Consultants Network on Linked In led by Frank Feather has been having a very powerful discussion on “You Can’t Measure What You Cannot Measure”. (see http://linkd.in/gt57Ox if you are on Linked In and have the ability to follow this group.)

The discussion got me going on one of my core beliefs: performance contracting and appraisal, particularly at the senior level, are a waste of time without two factor metrics. So I posted this comment in this group.

This continuous debate about “You Can’s Manage What You Don’t Measure” has been around since Alfred Sloan. To some extent, we forget what the core of his message. “You cannot manage managers unless you have clear insight into the measures that you are going to use to measure their performance.”

As an individual who has managed managers and consulted to them at all levels, including the C level, I know how true Sloan’s prescription is. At the same time, as a work place psychologist, I know how counter intuitive measures are to our evolved “individual-relationship-family-tribal” internal psycho-dynamics. We did not evolve to measure. We evolved to act.

But management is not day-to-day life. Although it is strongly impacted by the evolution of the tribal component of our internal psycho-dynamics, and our need to act, we can also use the rational parts of our mind to provide structure to management action.

In my own career, I developed the following approach to managing managers through performance contracting and appraisal.

One:

Focus on metrics that are relevant to what they are expected to produce.

Two:

Use only output / measures – what I call two factors measures – something that manager are expected to produce over something they are expected to use to produce it. Revenue per employee and lines of software code / developer hours are two examples that I have used.

Three:

Never have more than 3 to 7 of these – remembering that short term memory really only holds only about 5 things in its view and with two factor measures we are already dealing with complex things.

Four:

Focus on the trend over time, not the absolute measure at any point in time.

Five:

Focus on the pattern of results in the trends over the whole set of measures, not any particular one.

Over the years, I have received lots of comment about how this too complicated – takes too much energy etc., often from very senior executives.

That always sounds like an excuse for me from people who prefer to drop back to our evolved “individual – relationship – family – tribal” ways of doing things rather than actually managing thoughtfully. Often, they invoke the “ASS” principle as their justification.

Who ever said that management was simple. Take Fukushima for instance, and many of the other things we do in our world today. They are not simple. “ASS” simply does not apply to such things.

It constantly amazes me how experienced managers and executive search professionals persist in their belief that somehow a desire to act before thinking is the sign of a “good manager”.

It constantly amazes me how many times I get a vague answer to the question – “how do you intend to measure this person’s success in this new job: in the first three months, in the first year, in the next year” – during the lead up interviews to search and recruitment at the senior level.

And finally, I have come to accept that the consistent resistance to two factor metric based performance contracting and appraisal that characterizes our executive and management culture is based in our evolutionary history. We evolved as tribal creatures whose internal psycho-dynamics lags behind the needs of management in today’s world. We like to think that acting is more important that thoughtful action. In management, thoughtful and successful, action requires at least two things:

◦ knowing what to measure,
◦ and actually measuring it over time.