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Cytiva Software, Inc. Six Steps To Successfully Implementing Performance Management Software Hosted By: Ian Alexander Vice President Cytiva Software Inc.

Talent Talk Webinar Six Steps to Implementing a Performance Management System

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Aberdeen research shows that organizations that utilize performance management technology to support a Best in Class performance management program achieve dramatically better results than those that don’t. But, far from being a panacea, performance management software can actually hinder the efforts if companies don’t take a prudent approach to adoption. Performance management software pioneer Ian Alexander shares some of the wisdom gained from 13 years of delivering performance management solutions to thousands of organizations.

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Page 1: Talent Talk Webinar Six Steps to Implementing a Performance Management System

Cytiva Software, Inc.

“Six Steps To Successfully Implementing Performance

Management Software ”Hosted By:

Ian Alexander Vice PresidentCytiva Software Inc.

Page 2: Talent Talk Webinar Six Steps to Implementing a Performance Management System

Ask Questions

Enter Question

Press Send

Page 3: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software”

Current Landscape• Ten Years of Employee Performance

Management Software (EPM)

• Growth of System Complexity

• Explosion of Vendors

• Key Considerations

Six Steps

Page 4: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” The Year 1995 B.E.P.M.

Page 5: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” The Year 1995 B.E.P.M.

Performance Management Process Ineffective• Typical lifespan: 3 years

Workforce Unclear on Benefits of Evaluations Evaluations Inconsistent, Sporadic, Even Demoralizing C-Level Sees Little Value “Necessary Evil”

Page 6: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” EPM to the Rescue

1998 2008

First Genw/modules

First GenForm Focused

Second GenPeople Focused

First Generation: Electronic Forms and Workflow (Horseless Carriage)

First Generation (Plus): Add Features Like Comp, 360, Succession, etc.

Second Generation: Focus on people, user experience and interaction

Automate Process Support Promise of Talent Management

Integrate People/Process/TM

Page 7: Talent Talk Webinar Six Steps to Implementing a Performance Management System

Vendors

“ Implementing EPM Software” EPM Explosion

2005 2008

First GenForm Focused

Second GenPeople Focused

2008: $409 Million Spent on EPM (Bersin)

More than 30 Vendors

Result: Complexity, slow line manager adoption, dissatisfaction

First Genw/modules

Adopters

1998

Page 8: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” The Year 2008 A.E.P.M.

Process Automation = More Efficient Reviews Employees Often Forced to Use Confusing Systems in

the Name of Data Collection/TM Process Integration HR Often Overwhelmed with Technology/Data Issues

at the Expense of Strategic Outcomes C-Level Sees HUGE Value Beyond CYA (and are

expecting results) Performance Management Process Ineffective

• Typical lifespan: 2 Years

Page 9: Talent Talk Webinar Six Steps to Implementing a Performance Management System

OJ TRIAL ’08!

“ Implementing EPM Software” The Year 2008 A.E.P.M.

Page 10: Talent Talk Webinar Six Steps to Implementing a Performance Management System

Today: EPM Data at the Heart of Most High Value Talent Functions

Improve Recruiting Effectiveness

Tie Pay to Performance

Identify High Potential Employees

Focus Training $ Around Strategic Objectives

Training/Development

Succession/ Workforce Planning

Compensation

Recruiting

EPM

Page 11: Talent Talk Webinar Six Steps to Implementing a Performance Management System

Key Consideration: PM is a People Process, Not a Technology Process

Focus on People/Process and Choose Technology That Supports Your Goals

Take It One Step at a Time

Get PM Right Before You Expand

New Gen 2 Tools Available

Training/Development

Succession/ Workforce Planning

Compensation

Recruiting

EPM

Priority One:

Get This Right

Page 12: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Form Based Gen 1 Plus System

Page 13: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Employee Based Gen 2 Plus System

Page 14: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Six Steps

1. Don’t Ask for a Pony 2. Prepare Your Organization for Lasting

Change3. Start Small, Roll Out in Phases4. Focus on the Employee-Manager

Experience5. Buy Experience Not Hype6. Communicate Like a Marketer, Train

Relentlessly, Adjust Accordingly

Page 15: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software”Don’t Ask for a Pony – You May Just Need New Socks

Identify 2-3 key system objectives (i.e., all employees complete annual goals, all reviews completed on time) and evaluate feature “requirements” against those desired outcomes

Allow managers and employees to use the system. Use feedback to discover what features were core to their needs

Advanced functions such as metrics, dashboards, or gap analysis require at least a year, and often two years of consistent and reliable performance data to deliver value

Page 16: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software”Prepare Your Organization for Lasting Change

Engage with senior executives early to define key business metrics such as reduced costs, or improved customer service scores, and clearly demonstrate how these metrics will be tracked, reported on, and achieved

Develop a communication and training plan to clearly communicate the changes that are coming and explain WIIFU (what’s in it for US).

Identify resources beyond IT and HR. Set specific roles and deliverables for others in the organization, including resources to address the myriad of change management issues

Don’t be opposed to fielding questions, complaints, push-back and excuses for why things won’t work

Page 17: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Start Small, Roll Out in Phases

Roll out functionality in phases which can be monitored and adjusted, and expect the full solution implementation to take months, not weeks

Consider starting with a business unit or location as a pilot group. Pick disciplined, motivated leader who values performance management and will champion the system

Focus initial efforts on a few key outcomes (i.e., reviews completed on time, or all employees receiving a review) and measure results. Then expand feature implementation or enterprise-wide utilization. Extra features get discounted or ignored because their value is neither established nor understood by users

Page 18: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Focus on the Employee-Manager Experience

Median tenure of U.S. workers ages 25 to 34 is 2.9 years (BLS)

Employers will replace upwards of 60% of their staff over the next 3 years (National Institute of Business Management)

Cost of replacing a typical professional: 1.5 X salary (SHRM/ASTD)

A company of 250 employees could spend upwards of $11M

Page 19: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Focus on the Employee-Manager Experience

Employees Quit Managers- Not the Company Focus On Employee/Manager Interaction Over Back

End Functionality Design Your Process to:

Provide employees insight into expectation and measurement Give visibility to employees’ contribution to organizational objectives Include/encourage regular face-to-face time for career aspirations and

personal development Provide tools for tracking performance, feedback and providing

coaching Include peer, self and manager feedback Make evaluations a two-way dialog

Page 20: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Buy Experience Not Hype

More vendors = more choice/better products Who are you buying from?

Experience/domain expertise (developers, product managers, sales reps, executives, etc)

Gen 1-plus or Gen 2? How hands-on will vendor be?

Longer, phased roll outs mean need for more support from vendor

Will you be a key customer or one of thousands with an 800 support number

Avoid buzz words like web 2.0, tag clouds, spinning baseball cards, social networking

Page 21: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Communicate Like a Marketer, Train Relentlessly, Adjust

Accordingly

Selection/Implementation Just the First Step Sell the benefits of using the system in term of WIIFU

– what’s in it for us Solicit and distribute internal success stories. Reward employees that make the most performance

notes, complete reviews on time, etc Develop a “boot-camp” to quickly get new users up to

speed on the system

Page 22: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Communicate Like a Marketer, Train Relentlessly, Adjust

Accordingly

Selection/Implementation Just the First Step Provide regular “feature-focused” training to allow

those in need to dive into areas of interest and get the most out of their experience

Create a forum to elicit feedback from users Communicate feature changes, upgrades, and

system maintenance times well in advance and provide specifics relating to new feature training or down time

Be willing to adjust the process

Page 23: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software” Six Steps

1. Don’t Ask for a Pony 2. Prepare Your Organization for Lasting

Change3. Start Small, Roll Out in Phases4. Focus on the Employee-Manager

Experience5. Buy Experience Not Hype6. Communicate Like a Marketer, Train

Relentlessly, Adjust Accordingly

Page 24: Talent Talk Webinar Six Steps to Implementing a Performance Management System

Cytiva’s Free Webinar series

• Interview Techniques and Strategies for Hiring Top Performers

- 10/09/08 10-11 AM PDT

• Retention: The Key to a Successful Recruiting Plan

- 11/20/08 10-11 AM PT

Register at: www.sonicrecruit.com/company/events.htm

Page 25: Talent Talk Webinar Six Steps to Implementing a Performance Management System

“ Implementing EPM Software”Cytiva Software Inc. offers a wide variety of products and services to help

you get the most out of your recruiting efforts. Talent Acquisition System

• Custom career sites• Employee referral management• Career agents• Ad posting and tracking • Manager self-service• Contact management/Outlook integration• EEO/OFCCP compliance• Vendor Management Module• Onboarding Module• Hourly Recruiting System

Consulting SonicPerform Performance Management System

To learn more contact: David FreemanTalent Management Solutions Consultant877-775-0888www.sonicrecruit.com