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• Q&A addressed at the end of today’s session – please ask them in the questions box

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Presenter Info

• Kris Dunn• CHRO at Kinetix (RPO, Recruiting)• Founder of Fistful of Talent , The HR

Capitalist • Hoops Junkie

#halogen

• Tim Sackett• President at HRU Technical Resources• Blogger #1 at the aptly named Tim

Sackett Project• Contributor at Fistful of Talent

Presenter Info

• Connie Costigan• Director of Marketing Communications,

Halogen Software• Won “Crazy Hockey Mom of The Year”

award

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• Cara Lucas• Marketing Manager, Kinetix• Editor, Fistful of Talent• Has a cat named after a Starbucks

beverage option

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1#halogen

How well are organizations doing at measuring performance & potential?

How well is your organization clarifying performance measures for current and future performance?

How well is your organization effectively assessing potential for promotion?

Senior leadership involvement and accountability for HiPo

Programs?

How well are you doing at keeping senior managers involved and committed to succession and HiPo programs?

How well are you doing at talent reviews to ensurethat promotable individuals are being properly developed?

Why Smart Companies are creating 2-D

performance management systems

using:

PERFORMANCE VS POTENTIAL

(Also known as the 9-Box Grid)

Some Deeper Notes on the 9-Box:

Performance vs Potential• Do you use to evaluate leadership or for

everyone? We think it’s a tool for all if you have discipline

• Mandates you have your act together on performance as a company

• Do you have a “Section 2” on your reviews? If so, you’re halfway home, but you still have work to do

• Rating scale considerations – easiest to do Exceeds, Meets, Does Not Meet, although solutions like Halogen can make any scale work

POLL QUESTION #1:

Which member of the Jackson family would you

define as having the second most desirable

position on a Performance vs Potential chart?

Performance vs. Potential: The Jacksons

2#halogen

LET’S DIVE DEEP:

The Difference Between Performance

and Potential When Thinking about

the 9-Box

You’re Not Doing it Wrong, You Just Need to Add to Your Game

• How many of you have a performance review system?

• How many of you attempt to give some type of feedback on non-performance items in your performance system?

• RESULTS (performance) vs HOW YOU GOT THE RESULTS (potential)

• You already do performance• Now you have to evaluate potential

effectively to use a 9-Box Grid• You can do them both inside your

performance management system, or you can evaluate potential outside of your PM system (easier to use technology)

How Do You Measure Potential?

We’ll Give you 4 Ways…

Some Better than Others…

1 - Using Company Values to Identify Potential

• Rating employees on exemplifying company values is the most common use of Section 2 in Performance Reviews

• When used this way, the same set of values measures the potential of all in a company

• Pros – you already have it• Cons – some values are really

hard to measure people on• Can your managers draw a

direct line to the potential of an employee by evaluating whether they are meets or exceeds on a company value?

If company values don’t represent how people

get rewarded, they are DEAD ON ARRIVAL

in their use in performance and

succession…

2 – Using Competencies to Identify Potential

• You know competencies – they’re a set of behaviors that are deemed to be important to a job and as a result, measured.

• Competencies are the most scientific way to measure potential

• Pros – Customize for each job, including specific sets for leadership

• Cons – Too much variation at times to create common language about what potential is at your company

• Partners like Halogen have great competency libraries.

• Easily treated as Section 2 in your PM system

3 – Using “Potential Factors” to Identify Potential

• “Potential Factors” can be half company value and half competency.

• They should answer the following question: What do all high performers in our company have in common regardless of job?

• Potential factors show what it really takes – behind the scenes – to be successful in that freak show you call a company.

• Can be used in place of values in section 2 of your performance review

Some Potential Factor Examples

• Innovates• Drive/Ambition• Smart/Figures

Things Out• Gets Stuff Done• Competes• Likable/Command• Influencer• Grit

4 – Using Simple Qualitative Measures To

ID Potential• Is doing this better or worse?• It depends• If you’re doing P vs P for your entire

company, we like values, competencies or potential factors. If you’re doing it for leadership, we like competencies or the subjective way

• To use the overall qualitative method, create a scale – capable of being promoted 2 levels or more above current level, 1 level or “well placed”

• Many start with qualitative process on leaders only, then grow it from there

Important Considerations When Thinking About Evaluating

Potential• You already measure

Performance, you’ll have to do the same with Potential

• Rating scales are necessary to move people on the 9-Box Grid

• Best practice – provide descriptive anchors to illustrate the behavior you’re trying to describe at each rating point in a value, competency, potential factor of raw qualitative measure

Examples of Anchors To Assist in Rating Potential

How technology can help with P vs P

How technology can help with P vs P

How technology can help with P vs P

3#halogen

Defining Potential Sounds Hard…

Why Should I Consider Using P v P In My Company?

Why? We’ve Got 6 Reasons…

1. It Creates Robust Dialog2. It influences executives on

talent issues3. Calibration on Talent is easy to

achieve with the scatterplot4. It’s more accurate than one

person’s opinion5. It helps you become more

laser-focused related to development activities and $$

6. It sets you up for Succession Planning

POLL QUESTION #2

Which 80’s Brat Pack Movie epitomizes the top

right box in the 9 box grid?

Performance vs. Potential: Brat Pack Movies

4#halogen

How to Run a Talent Review

Using the 9-Box Grid

(Performance Vs Potential)

The Simple Steps to Run a First Talent Review

1. Make Sure Your System Supports2. Schedule Meeting w/Expectations3. Serve as a Resource4. Start With the Overall Picture5. Do Smaller Pictures as Necessary6. Focus on the Top and the Broad

Bottom, then Distribution7. You’re the Facilitator8. Managers Own the Answers9. End with Simple Big Picture Questions10. You Own Next Steps…

1. Make Sure Your System Supports

• Garbage In, Garbage Out• Do you have performance

vs. potential set up?• Are your potential factors

real? Can you rate someone on them?

• Does your technology support what you’re trying to do?

• Rating Scales, etc.

2. Schedule Meeting w/Expectations

• Schedule 1 month out• Tell them you’re doing a

talent review and what it means

• They’re responsible for being prepared to talk about their stars and their problem children

• You’re going to meet w/them to help them start to be prepared

• PEER PRESSURE IS IN PLAY

3. Serve as a Resource Before the Session

• You’ve got to meet with every manager who will talk at the meeting

• Your goal – make them comfortable with who they’ve got to cover

• Strengths, Weaknesses, Development Plan – You outline what you want and help them

• Retention Risk for HiPos• Next Steps for Low Performers• Great Chance for you to Connect

and be positioned as an expert

4. Start With the Overall Picture

• When you start the session, you’re the expert

• Lead with the overall scatterplot

• Walk them through – Overall Pefrm vs Pot

• What does each box mean?

• What’s a normal distribution look like?

• What do you see when you look at the overall graph?

5. Do Smaller Pictures as Necessary

• When you go to the manager/dept breakdowns, you need a clean view

• Recommend separate scatterplot for each manager, color coded overall is cool

• Your visuals should support the session

• When each manager is up, the focus is on their team

• Company vs. Division vs. Department vs. Team

6. Focus on the Distribution, then the Top and the

Broad Bottom• This is a Freshman Level

Talent Review, not Grad School

• Have managers start with a view of their team via the distribution

• Focus on the top right box• Then move to the low

performers with low, mid and high potential

• Bonus – Surprises in the middle box and elsewhere

7. You’re the Facilitator, So Act Like It• You gave an overall view• When the manager is up, you still

control (master of ceremonies, the expert)

• Best Practices:– “Give us an overview”– “Talk about your highest

performers”– “Talk to us about who is

struggling and why”– “What else do you see?”

• Be prepared to ask 3 questions in each section to bring others into the conversation

• Ask others to ask questions, give opinions

8. Managers Own the Answers

• You facilitate – don’t do the work for them

• If the manager gets stuck, don’t bail them out

• Silence is your friend, not an enemy

• Interaction with the group is key

9. End with Simple Big Picture Questions for the Team as the

Talent Leader• What do we do about the lowest performers? • How can we save low performers that have

potential? • What about the highest performers? Do we

have retention risk?• How do we give high performers a bigger piece

of the compensation and rewards pie? • Are the % in each box the right ones?• Does the data reflect our perception of the

workforce?

10. Own Next Steps as the Talent Leader

• What’s the overall plan for:– Tweaks to the performance

system we use– How often we meet to

discuss overall Talent– IDPs – for HiPos? Others?– Low performers – wrong

person, wrong job? What’s next

– Gaps in our team’s ability to manage people? Who can develop others? Who struggles? What’s that mean?

?#Chequed

Thank you to our webcast sponsor:

Kris:kdunn@kinetixhr.comwww.fistfuloftalent.comTwitter: @kris_dunnLinkedIn: www.linkedin.com/in/krisdunn

Tim:sackett.tim@hru-tech.comwww.timsackett.comTwitter: @TimSackettLinkedIn: https://www.linkedin.com/in/timsackett

Connie:ccostigan@halogensoftware.comwww.halogensoftware.comTwitter: @ConnieCostiganLinkedIn: https://www.linkedin.com/in/conniecostigan