A
guide
g
to
Performance
This guide contains essential information on how to get the most from your team’s performance. It will compliment your
company performance management process, ensuring your team are fit to perform.
It contains the core elements of a typical process, planner, checklist, and jargon buster.
Core
elements
to
performance
management
There are essentially three elements to a performance management process.
Personal
Development Plan
Objectives
Competencies
Performance
against
business
plan
Thi id l k i t h f th l t i d t il T b i ith l t l k t th bj ti This guide looks into each of the core elements in more detail. To begin with let us look at the objectives.
Where
do
we
get
objectives
from?
We see a typical cascade process in operation as in the diagram below. The process typically runs in conjunction with the
financial year (April‐March) or with the organisation’s tax year.
Business
Plan
Contains the vision, aspirations and focus for up to next 5‐10 yearsStrategic
Objectives
Specific objectives for a range of around 1‐3 yearsFunction
Objectives
Annual objectivesfor the specific
function or
department
Individual
Objectives
Individual
objectives for the
forthcoming year next 5 10 years
Agreeing
objectives
Some objectives will directly cascade down from the business plan, strategic and functional objectives to the individual. A
lot of the time these are simply updated from the previous year, (where there is similar emphasis from the business). E.g a
sales target may increase year to year sales target may increase year to year.
Lets look at an example.
In this example we have included
the following language ‐
In order to……
by MM/YYYY To sell more Type ‘D’ products in order to
increase cross sales target, from 10 per
week, to 15 per week, by end of June and on going. Reviewed monthly and at formal reviews
Measuring
performance
by MM/YYYY from XX% to YY%
We should check that the objective ticks off the SMART principles too.
formal reviews. 5Specific 5Measurable 5Achievable 5Realistic 5Time bound
g p
Objectives should be measurable. Through the performance management process we should be looking for ways to
contribute to the bottom line of the business. It is key for managers and staff to seek ways to increase the profitability of
the organisation. Consider the following equation.
Profit
It’s best to be in
Here are just 16 ways in which we can contribute to the business.
My contribution
My salary
(and costs) or
Loss
?
the black here! Are you?
R d
d
Hi h
Reduced
production
costs
Increased
sales
Increased
customer
satisfaction
Higher
customer
numbers
Reduced
complaints
Reduction
of
accidents
Reduced
travel
costs
Higher
efficiency
Improved
cost
to
sales
Reduced
cost
to
service
Reduced
overheads
Improved
quality
Lower
absence
No.
of
leads
Environment
costs
Wastage
and
Personal
development
plan
Often derided, the personal development plan (PDP) is an integral and valuable part of the performance management
process. In some industries it is a requirement to have and evidenced and Continuous Development Plan (CDP or CPD).
If our team are not skilled and competent then how can we expect them to contribute to the business objectives? In sport
there is no way a team will be able to (consistently) perform at their best if they have not trained, developed or practiced. (Of course it does help having the best players on your team from the start!)
Below is an example of the topics on a PDP.
Name
Development Area Actions to take
(and by whom)
How will it be
measured ?
Date to be
reviewed
We can over complicate the PDP. It is quite a logistically simple document really, especially when you consider the two
main questions behind it.
What is the gap in
the individual’s
performance?
What specific
activities will help
close the gap?
From here we simply populate the plan with specific development activities. It is vital that these come from the individual
rather than the manager, the manager should coach/mentor, rather than tell. Consideration to learning styles of the
individual is very important too, as we all learn differently. Timescales and objectives help to ensure a focussed plan.
Development plan options
Examples of development options available are found below. This is list is never going to be exhaustive, it highlights
examples of ways to close the gap. Individual specific needs have to be considered, as do learning style preferences.
DVD/ Develop-Coaching Training course Skills practice Mentoring Observing experts Seminars CBT* DVD/ Audio Business simulation p ment centre Skills workshop
Competencies
Competencies are found in two main categories.
Behavioural
competencies
Technical
competencies
In simple terms:‐
Technical competencies are the WHAT Behavioural competencies are the HOW
cies
p
p
Non performance can be due to the team
Technical competen c
What
–
we need to do pmember not knowing what to do, or because
they are not doing it in a way that is acceptable.
For example
A customer services representative could handle
30 customer queries (WHAT), as targeted, yet
they may not deliver it with compassion,
Behavioural competencies
How
‐ we need to do ity y p
integrity and quality expected (HOW).
Behavioural
competencies
We often see behavioural competencies with varying levels depending on the focus required. In the example below we
see a simplified competency of ‘Customer Focus’ at 5 levels. see a simplified competency of Customer Focus at 5 levels.
A behaviour which puts the customer at the entre of what we do. This is the desire and
ability to delivery higher than expected service to our customers. Competency definition
Customer Focus Competency name
Level 1 – Meet expectations
•Delivers service as planned
•Handles customers queries
Competency level and tag line
Handles customers queries
•Is pleasant and polite Level 2 – Exceed expectations
•Receives feedback (written and verbal) praising service delivered
•Seeks ways to exceed level of service delivered
•Handles 1stlevel customer complaints
Level 3 ‐ Focuses the team on customers
•Coaches others to deliver customer service
•Sets objectives on customer service
Behavioural indicators
The bullet points are known
as behavioural indicators
Differing levels of
competency, increasing in
j
•Gives feedback to others on service delivered
•Handles 2ndlevel customers complaints
Level 4 – Sets customer focus goals
•Sets goals to deliver customer service excellence.
•Develops plans to increase customer satisfaction
•Creates innovative ways to motivate others to deliver customer excellence
•Handles 3rdlevel customer complaints
Level 5 – Creating a vision for customers
focus. From day to day
focus, to longer term
strategic focus.
These levels increase due to
team management factors,
specialism in role and task.
Performance
manager
planner
The key activities of a typical performance management process are mapped out below. This is a ‘full fat’ version, and the
process can be condensed.
Step
One
– Initial
Review
Agree
Objectives
Agree
Development
Plan
(incl.
behaviours
and
competencies)
Start here
Daily/Weekly
adhoc,
informal
reviews
and
coaching
Step
Two
– Quarterly
Interim
Review
Review
and
update
p
Objectives
j
and
Development
p
Plan
Daily/Weekly
adhoc,
informal
reviews
and
coaching
Step
Three
– Half
Yearly
Review
Objectives
and
Development
Plan
reviewed
and
documented
Daily/Weekly
adhoc,
informal
reviews
and
coaching
Step
Four
– Quarterly
Interim
Review
Review
and
update
Objectives
and
Development
Plan
Daily/Weekly
adhoc,
informal
reviews
and
coaching
Now go to Step One
Step
Five
– Final
Review
Agree
performance
against
Objectives
Agree
performance
against
Development
Plan
(incl.
behaviours
and
competencies)
Complete documentation
Complete
documentation
Performance
manager
checklist
Use this checklist to find out why an individual is not performing. It is also useful to plan for those ‘high performers’ who
plan to move into new roles. Seven areas can be checked to diagnose how to improve future performance.
Out of 10
Clear Direction
Do they have clear objectives? Do they have clear direction?
Have they clarity over how their role and task fit into the business plan? Out of 10 how would you rate this? È Technical Competence Clear Objectives
Do they have the correct technicalcompetence?
Have they the technical skills appropriate to complete their task?
Do they understand what their objectives? And how to achieve them.
Behavioural
Competence
C it t
Do they have the correct behaviouralcompetence? Do they carry out things in to correct manner?
Are they committed to the task?
Management
style
Commitment
Are they being managed effectively?
Is you management style correct? Are you over or under leading? Are you inspiring?
Do they have the desire and commitment for the role or specific tasks within it?
Systems
Are the right systems in place?
Is performance being hampered by the wrong process, procedures and systems?
Jargon
buster
Some phrases you may hear Some phrases you may hear.
KPI Key performance indicator ‐measures of key performance areas or objectives KPA Key performance area ‐area of key focus for the coming year
ROI Return on investment ‐the return for any money spent by the business Behavioural indicator A bullet point, indicating specific evidence/examples of a behaviour Tag/Strap line A summary of the level of a competency
SMART An acronym ‐Specific, Measurable, Achievable, Realistic, Time bound PDP Personal development plan or Development plan
CPD Continuous (personal) development plan CPD Continuous (personal) development plan *CBT Computer based training
Summary
This guide has been designed to give you some important pointers on how to effectively manage your teams performance.
Ultimately we must be adding to the bottom line of the business in order to aid the long term security Ultimately we must be adding to the bottom line of the business in order to aid the long term security.
Use the space below to capture 5 things you will action over the next month with regards to managing performance in your
organisation. My 5 actions are:
2
1
2
3
4
4
5
About
the
author
of
this
guide
Phil
LaViolette
is
Managing
Director
and
founder
of
evalu8d.
He
has
worked
extensively
in
the
field
of
coaching
and
learning
&
development
with
many
blue
chip
and
FTSE
organisations.
Including
Barclays,
British
Nuclear
Group,
HBOS,
Norwich
Union,
NFU
Mutual,
Orange,
RBSG,
Royal
Sun
Alliance
Safeway,
Vodafone.
His
passion
is
creating
solutions
that
contribute
to
your
bottom
line,
and
has
a
track
record
of
improving
performance
as
a
result
of
coaching
and
training
interventions.
To
arrange
a
free
consultation,
or
to
discuss
your
organisations
needs,
then
please
contact
us.
Feel
free
to
distribute
this
within
your
network.
