Process Overview November 2009

Session Objectives

Understanding of Performance Management as a System

Awareness of steps involved in managing and evaluating performance

Future approach to Performance Management

Performance Management

What do you think of when you hear “Performance Management?”

An effective Performance Management System is…A comprehensive process that maximizes engagement, development, and performance by all employees in the employment lifecycle by:

Defining and communicating performance expectations in a regular, on-going manner

Aligning position responsibilities with competencies (skills, attributes, talents) needed to successfully perform role

Remaining flexible, efficient, measurable, fair, and transparent

Proactively focusing on employee development and talent management to enable succession planning and career development to retain employees and to build skills for future needs

Linking performance to compensation, recognition, and rewards

Aligning employee’s work to department goals and objectives

Why is Performance Management Important?No matter how large an organization is all performance begins with the individual

Individual performance impacts teams ,divisions, business units, and the organization

Success is achieved through people

“If people know what they are suppose to do, get feedback on how they are or are not doing it, and get rewarded for doing they are supposed to be doing, companies will

be more likely to get the results they desire.”

Why focus on Performance Management Now?

A desire to change the current process from a compliance-based performance dialogue focus to a holistic development-oriented process which will enable strategic changes as we re-imagine Cornell

Ensure a consistent focus on employee development across units and the organization, aligning performance conversations with strategic goals

How is an effective Performance Management System achieved?

TrainingTrain supervisors and employees

PlanningEstablish unit strategy & goalsAlign goals of employee & unit

Determine performance level criteria

AssessmentAnnual PD

On-going feedbackTalent Discussion

RecognitionCorrelate SIP and performance

Correlate promotions and bonusesUtilize low-cost, no-cost ideas

CareerDevelopment

Create Individual Development Plan (IDP)Utilize rotations and on-campus and

off-campus training

University MissionUnit Values and Goals

Department GoalsIndividual Goals

Assessment

Annual Performance Evaluation

Talent Review Process

On-going feedback

Performance Evaluations

Formal discussion between a supervisor and employee occurring following some time frame as determined by an organization.

A form is utilized as a tool to both drive a discussion and create a permanent document for an employee’s file.

Why are Performance Evaluations Necessary? Effectively communicate

expectations for behavior and performance

Raise overall performance of the individual, work team, unit and Cornell

Improve communication between a supervisor and employee

Identify areas where development or training is desired

Establish a consistent process to develop, communicate, assess, and reward employees

Provide historical data for future supervisors who need to understand the context in which behaviors occurred

Establish objective, defensible documentation

Why are Performance Evaluations Necessary (Cont’d)?

Required by UniversitySIP eligible employees (term/regular part-or full-time, hired on or before February 28th of any given year)

Performance rating linked to SIP

CIT HR provides attestation annually to University Compensation – confirming evaluations have occurred (ratings are NOT submitted to OHR)

Why Performance Evaluations are Viewed Negatively Information is

poorly written Comments are general

and not specific There is no link to

employee’s job description or goals

Employees perceive them as unfair

Insufficient feedback gathered

Focus is on overall rating, not on the conversation or employee development

Evaluation is the same year after year

Employee and/or supervisor is uncomfortable giving feedback, even positive, or discussing their working relationship

Potential Results of Poorly Written and/or Delivered Evaluations Employee does not feel valued Loss of respect and trust for supervisor

Confusing expectations Lower morale Lower productivity Perceived underlying reasons: retaliation, discrimination, doesn’t like me, etc.

Difficult to defend in court

Results of Inaccurately Inflated Evaluations Gives employee a false sense of security and accomplishment which impacts motivation to do better

Negative impact on high-performers

Difficult to defend in court

CIT Talent Review ProcessTalent review began 5 years ago for CIT’s Directors to talk about WHY they were provisionally considering specific performance level ratings for individuals.

Directors listened and thought about whether the REASONS being used in each case were similar to the reasons they were using,

Performance level ratings are assessed and calibrated to ensure consistency of application across the department. The result is a set of rating criteria that defines behaviors associated with each performance level (1 through 5)

Consistent RatingsSenior leaders need to agree on rating scales and definitions so that everyone has a common understanding of “what success looks like for their organization”

Consistency in ratings means that the narrative and ratings should match as well as the final overall rating should be supported in the early ratings. Inconsistencies can create problems both with employee perception and potentially legally.

Very important to use the same rating standards for people with the same level of responsibility for the same reasons as stated above.

Talent Review MythsMyth 1: Due to funding limitations, we can only allocate a certain number of 4’s & 5’s

Truth: CIT funding is not related to the number of 4’s and 5’s given out. We believe people should get the rating that represents their performance for the given review period. We do not have arbitrary caps on ratings.

Talent Review MythsMyth 2: Performance ratings are determined during the talent review meeting – even before the evaluation is written

Truth: The talent review does NOT set final ratings. The review process is incomplete at the time of the talent review meeting. Also, the conversation at the talent review is not as well-informed of specifics as is the direct supervisor and Director. The point is not about the rating of the individual but the development of a common set of criteria that divisions will use.

Remember, there are two key aspects of performance to consider:

WHAT is accomplished and HOW it was accomplished.

ResultsIntegrityCommunityInnovationRespect

ExampleEmployee A Employee B

Deliverable: Represent unit on CIT Cross Divisional Team

Result: ParticipatedRating: ?Behaviors:Attended all meetings.Shared information about meetings with workgroup.

Deliverable: Represent unit on CIT Cross Divisional Team

Result: ParticipatedRating: ?Behaviors: Attended all meetings and volunteered to create/maintain Confluence site for team.

Provided updates to entire unit at unit ‘town meeting’

Helped write and present team updates at CIT Town Meeting

Asked others in unit for input on discussion areas to bring feedback to meetings.

The Formal Evaluation ProcessNovember 2009 – Information Gathering

December 7, 2009 – Talent Review

December 2009 – Evaluations Drafted and Reviewed

January 2010 – Performance Evaluation Discussions

February 15, 2010 – Performance Evaluations submitted to CIT HR

Information GatheringStrongly encouraged and expected that everyone in CIT share feedback on their experience with others in the organization as well as request feedback on their individual performance

Collect emails, value cards, or other feedback received throughout the review period

Feedback can be given on and come from peers, internal CIT customers, and/or your management (optimal: 10)

Objective is to gather a wide range of perspectives on each person’s performance from a variety of sources.

Self-EvaluationEmployee completes self-evaluation (can complete

performance evaluation form OR use form as a guide for narrative self-evaluation)

Document can be shared with the supervisor before or at the scheduled discussion

It’s another piece of information for the final review to help identify everything the employee has accomplished throughout the review period

Helps understand where potential misperceptions may exist – where more information may need to be gathered

A mechanism for an employee to self-monitor progress

Self-Evaluation Cont’dNeeds Work Good Work Great Work

I often arrive to work and meetings late or leave early. I avoid extra work, and when working in a team, I allow my coworkers to do most of the work. I am often found making personal calls and chatting at length with others about un-related work topics. I display a lack of enthusiasm in my work. I appear overwhelmed by the demands of my high-paced environment.

I stay on-task in spite of distractions and interruptions. I don’t wait to be told to take action, and often look for an opportunity to help move a project along. I display an obvious sense of urgency. I carry out commitments displaying a high energy level. I accept personal responsibility for quality and timeliness of my work without making excuses or blaming others.

I display enthusiasm for each new project. I take pride in my work and am often asked to assume leadership positions. If I am unsure about something, or uncover an unexpected problem, I take immediate action to remedy the situation and to bring it to the attention of others in order to avoid the problem in the future.

Effective Evaluation ElementsReview employee’s position description noting any changes in job responsibilities

Compare data collected against the employee’s position description and program contributions

Review employee’s self evaluationConsider the entire review periodProvide clear explanations of ratings using specific examples

Do not use ‘generalizations’; focus on behaviors – think about the “how”

Be careful not to use language that may be legally misconstrued

Be consistent in assigning ratings with overall rating

Differentiate between employees’ performance levelsDo not avoid areas that need improvement

Common Rater Errors Halo Effect

Strictness, Leniency, and Central Tendency Bias

Recency Bias

Contrast Effect

Personal Bias

Overcoming Rater ErrorsGood performance documentation. Written notes, regularly updated, can also serve as a source of specific information for coaching and counseling and as required documentation for progressive discipline cases.

Clear definition of employee objectives and performance expectations. If both the manager and the employee have a clear understanding of what is expected on the job, the entire performance evaluation process becomes much more effective.

Ratings Supported by ExamplesThis is particularly important when ratings

are on either of the extreme ends. The more specific the examples are the better. The best examples include:

Who was involved What was expected What was accomplished (or not) What was the impact (or not) How it was accomplished Supporting feedback from others

Generalization vs. Behaviors Bob has a positive attitude. Others really enjoy

working with him. He always accepts new assignments –even things that are not included on his job description. He is a real pleasure to have on my team.

Bob always demonstrates a positive attitude – which makes others want to work with him. Recently he and a few other members of the team were assigned to the office move project – which was one of many assignments he willing accepted this year. He came to every meeting, was willing to take and distribute minutes for the rest of the team and personally walked around the new floor plan to every member of the team to discuss their needs in the new space. Not only was he integral in creating the new plan, but he really helped to convert others from being extremely negative about the move to being very supportive because of his upbeat nature, and keen listening skills. This is just one of several examples I could mention.

These are critical because… Shows employees the supervisor cares and

notices what they are doing It’s hard to argue behaviors vs. judgments Helps to clearly demonstrate specifics of what

an employee should continue/discontinue doing Provides solid information for supporting the

assigned rating(s) Provides a foundation to enable to employee to

understand expected behaviors/results that can potentially help them achieve a higher rating for the next review period.

Protects legally and in government audits

Also…Cornell’s expectations for CIT keep changing – the bar is continually rising

We are expected to do more with less – working smarter

Likewise, CIT’s bar is rising for “meeting expectations” each year.

Employees who are not making these changes will not meet expectations over time.

Legal LanguageIt is very important to avoid language that could potentially be used against the unit or a supervisor in a lawsuit. A performance evaluation is something almost always subpoenaed in a lawsuit.

Topics to avoid: gender, race, religion, marital status, kids, disability, illness, age, sexual orientation, national origin and/or other personal life situations.

Something like – “receives too many personal calls” is ok – as a general statement since it is a work related policy issue. When in doubt, ask HR.

Setting GoalsThe man who starts out going nowhere, generally gets there.Dale Carnegie, author and pioneer in self-improvement and interpersonal skills

There’s nothing so useless than executing a task efficiently when it actually never should have been executed at all.Peter Drucker, American management guru

The value of achievement lies in the achieving.Albert Einstein, German-born American theoretical physicist

Setting Goals4 Questions to consider

What is to be accomplished?How will it be measured?When should it be achieved?How will it be achieved?

Determine reasonable outcomes and/or projects for the employee to accomplish during the upcoming review period

Identify as many are needed; however, make sure the workload is realistic

Follow the SMART criteria:S – SpecificM – MeasurableA – AttainableR – RealisticT – Time Bound

Setting GoalsSupervisor and employee together may develop goals

Supervisor and employee may develop goals separately, then meet and make modifications

Supervisor develops goals and reviews them with the employee

Setting GoalsAllow flexibility when developing goals. They will need to be adjusted when work priorities change.

Joint involvement ensures shared understanding of performance expectations and accountability and responsibility of results.

Ask employee what they think they can achieve – then work together to set reasonable, obtainable expectations

Reviewing GoalsSupervisor is expected to monitor projects and assignments on a continual basis

Feedback can be given in a more timely manner and assistance can be provided, if needed

Recommended to review goals at least once during a given review period to discuss performance-to-date

Interim reviews should include a discussion about whether the stated goals have changed or should change

Sample Goals and Performance ExpectationsExample 1Objective: Coordinate the technical aspects of the Stargazer project and ensure the project is complete by February 1, within the $600,000 budget, and that the resulting system meets customer specifications.

Performance Expectation: “Fully Achieves Expectations” performance will consist of 1) completion by deadline, 2) costs at budget, 3)systems performance meets customer requirements, and 4) customer signs off that they understand user procedures and are able to operate the system

Sample Goals and Performance ExpectationsExample 2Objective: Within the next six months, the employee will define customer requirements for the Stargazer system, develop a proposed system solution to meet requirements and obtain customer approval for mock-up, including input and output formats, computational processes, and quality assurance procedures.

Performance Expectation: Customer evaluation of project produces ratings of “Frequently Exceeds Expectations” or higher on 1) responsiveness of customer needs, 2) timeliness, 3) quality of work, 4) efficiency/cost control, 5)technical performance of system.

Assessing GoalsSupervisor documents outcome of employee’s efforts to achieve stated goals. This includes:Description of extraneous factors or unanticipated events that complicated or inhibited the employee’s ability to achieve the desired result(s)

Reasons for any revisions that were made to the original goals and performance expectations as well as what adjustments were made

Discussion of how the employee performed – impact on peers, users, effectiveness of unit – focusing on behaviors, skills, knowledge, techniques involved and how the affected the effectiveness of the employee

List other accomplishments that were not included in the original list

Areas for DevelopmentTraditionally, the focus as been on areas where performance is ‘below expectations.’

In situations, where an employee has a ‘weakness’ that does or may impact their overall performance, these areas need to be discussed with the employee to ensure their success. Focus on developing strengths as well.

When the employee is fully meeting expectations, focus development on building strengths.

Work together to create more opportunities for the employee to utilize their strengths in their day-to-day work, where possible.

Identifying StrengthsEmployees are best at identifying their strengths

Strengths are activities that make a person feel strongS – Success (when you do it, you feel effective)I – Instinct (before you do it, you actively look forward to it)

G – Growth (while doing it, you feel inquisitive and focused)

N – Needs (after you’ve done it, you feel fulfilled and authentic)

Giving Developmental Feedback Describe the specific job behavior(s) that

met/exceeded expectations and needs to be replicated OR

that failed to meet expectations and needs to be improved

Explain the “line of sight” by describing how the behavior positively or negatively impacts the employee and the work unit

Ask the employee for comments; then LISTEN and discuss

Focus on the behavior not the employee

Continued… Follow-up with feedback on growth and improvement efforts – recognize progress

Document, document, document (both positive and negative)

The evaluation should not contain surprises! Significant events or performance concerns included in the document should have been discussed with the employee during the review period.

If performance does not improve, consult with CIT HR to discuss next steps

Needs Improvement

CIT HR must be consulted if it has been determined that an employee is not meeting expectations which may potentially result in a rating of “Needs Improvement” or “Fails to Achieve Expectations.”

This must occur before the performance evaluation discussion is conducted.

Form – Changes 2009

Ratings

Personal Communication Devices

Flexible Work Arrangements

The Meeting (supervisor)RESOURCE: Preparing for the Annual Performance Dialogue (employee

and supervisor) http://www.ohr.cornell.edu/careerDev/performMng/preparingchecklists.html

Establish a convenient time and location

Allot ample time to allow for a meaningful and constructive discussion

Location should be free from interruptions (e.g. phone calls, office visitors, general conversations and other common office activities)

The Meeting (supervisor)Encourage the employee to communicate - ask the employee to start the meeting talking about things they felt went well and things they felt could have gone better; Ask how you can help.

Use “I feel”, “I believe” rather than “you” language where possible – particularly if areas are sensitive/conflict laden

Actively listen to the employee and check for clarification and understanding

Agree to disagree – be respectfulAsk what you can do better

The Meeting Cont’dBe realistic and honest – do not make promises or mislead

Agree on goalsSet dates to follow-up, if neededThank the employeeRevise evaluation, if neededHave employee sign the final revision; obtain next level of supervision signature

Employee signature indicates the evaluation discussion occurred as well as receipt of the evaluation form and does not necessarily constitute agreement with the review.

The Meeting – Potential MistakesFailure to fully explain the rationale of the evaluation process to the employee.

Rushing the meeting or allowing insufficient time for dialog.

Doing too much of the talking yourself instead of actively listening to the employee.

Discussing activities instead of the results of those activities.

Avoiding or underemphasizing performance problems.Being too negative when you do discuss problems.Over-praising, the opposite sin. Failure to cite specifics to support the rating.Comparing employees instead of making individual assessments.

The Meeting – Potential MistakesGetting sidetracked or bogged down in details.Forgetting that “facts” reported about the employee may reflect unconscious attitudes by others who gave input to the review.

Failure to build on the employee’s strengths in devising solutions.

Becoming emotionally involved and losing objectivity.

Failure to involve the employee in creating solutions to performance problems, and then to produce written plans of those solutions, with specific goals, objectives, and target dates.

Failure to close with a summary that leaves employees with a clear understanding of where they stand, what they need to do to meet standards, and how and when the supervisor will help in that process.

http://hrdailyadvisor.blr.com/archive/2007/01/17/performance_appraisal_annual_review_meeting_mistakes.aspx

Employee CommentsEvery employee has the right to include comments to their evaluation – which will become part of the employee’s permanent file.

An employee can:Provide written comments to their supervisor before signing the final evaluation

Send the written comments directly to CIT HR for inclusion in their file. All comments are reviewed by CIT HR.

Next StepsFinal evaluation signed (employee, supervisor, and next level of supervision) with a copy to the employee and the original version sent to CIT HR no later than February 15

If there are any areas of development in an employee’s current role, discuss strategies and expectations going forward.

Over the next review period, monitor employee’s progress and give frequent feedback, coaching and/or praise

Salary Improvement Plan (SIP)February/March – Cornell Compensation sends proposed SIP percentage and guidelines

March/April – CIT determines SIP allocations based on Compensation guidelines

April – Proposed allocations/budget is submitted to OHR and Finance

Late May/Early June – Board of Trustees review budget

Mid-June – communicates SIP awardsJuly 1st – SIP increases are effective

The Future

Performance Management – Systematic Approach

“New” Performance Evaluation form

Goals – Process Change

Training

ResourcesCIT processes and procedures related to University Policy 6.10.6 http://www.cit.cornell.edu/about/policies/procedures/performance_eval.cfm

University HR Policy 6.10.6 Performance Dialoguehttp://www.ohr.cornell.edu/policies/nonacademic/1011e_emplgrowth/6106.html

Treat people the way they are and they will stay that way.

Treat people the way they can become and they will become that

way.

Johann Wolfgang von Goethe, 1749-1832, German writer and author of Faust