Executive Human Resource Program The Promise of Performance Management Hay Group Boston The Current Challenge of Performance Management The HR process— Is completely unrelated to other key business processes Is dreaded by managers and employees alike Does not result in any meaningful feedback Does not differentiate performance or pay Is a focus for only one or two days—or hours—per year The Promise of Performance Management Imagine a system that could— Increase the likelihood that your strategy is effectively executed Harness and direct the 10–60 minutes a day of discretionary effort that every one of your employees has Rationalize and focus the number of goals that anyone in your organization has Improve the decisive dialogue that occurs in your organization Reward performance in a way that it is motivating and engages people Differentiate performance in ways that make line managers feel good about their decisions Improving Performance Management Improves Business Results Human Resource Management Practices Drive Profitability and Productivity Percentage of variation in change in company performance accounted for by managerial practices Improving Performance Management Improves Business Results Strategy Execution Matters to Shareholders Thirty-five percent of an institutional investor’s valuation of a company is attributable to nonfinancial information that gauges the ability of the management team to deliver results: 台商信息网(大量管理资料下载) Strategy Execution: Can management make tough decisions and seize opportunities quickly? Management Credibility: Does the company keep its commitments? Strategy Quality: Is management’s vision of the future likely to optimize value creation in a volatile, globalized, and connected economy? Innovativeness: How readily does this company adapt? Attracting and Retaining Talent: Is turnover higher or lower than key competitors? Do new hires surpass leavers in skills and experience? Management Experience: What skills and experiences does the management team bring to the table? Compensation: Do compensation policies support the firm’s strategic intent? Human Capital Systems Increase Shareholder Value 35% improvement in human-capital systems resulted in 10%–20% gain in shareholder value Improving Performance Management Improves Business Results High-performance companies define Performance Management in its broadest sense: it is critical to executing and implementing strategy Performance Management is now widely recognized as delivering more returns and delivering more competitive advantages than other HR investments Performance Management is the key to “raising the bar” in an organization, for all levels of performance Organizations with a high-performance orientation and strong management capability have higher revenue, profits, and market valuations Performance Management Performance Management is about improving business performance by improving team and individual performance, and ensuring that the company’s strategy is executed and implemented. It is— A process that ensures that people execute the strategy of the organization A process for establishing a shared understanding of what is to be achieved and how A process for ensuring that decisive and constructive dialogue occurs A process of managing self and others so that people do achieve A process for ensuring that people are doing the right things in the most effective ways, to the best of their ability Performance Management Stages Performance Management Stages this Best Practices Best Practices—What’s Different? There are four differentiators of best practice: Clear Strategy Translation Process Integrated Performance Processes Culture of Dialogue Multiple and Differentiated Rewards Strategy Translation Process A Definition: “Early in the history of the company, while thinking about how a company like this should be managed, I kept getting back to one concept: if we could simply get everyone to agree on what our objectives were and to unders