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Measuring Performance vs Managing Performance – How Continuous Performance Management can make a difference to your organization

By Sarayu Raghavan, 14 July, 2016

An old cliché: “What gets measured gets done.” attributed to Peter Drucker (some say it goes back to Lord Kelvin or even Rheticus in the 1500′s! more here ), and it seems that the original phrase was actually “If you can measure it, you can manage it.” Regardless of the origin or the wording, the message is clear: measuring something gives you the information you need in order to make understand where you are relative to where you want to be.

In a corporate context, employees have “goals” that they are expected to achieve. Measuring performance (getting the actual data of what has been accomplished) is often confused with managing performance. Similar but very different. “Measurement” is objective (or at least should be, if the goals are clearly and simply defined), whereas “Management” is rarely objective. In fact, it is extremely subjective and requires a strong understanding of the individual in question and what can be done to help achieve her goals.

The annual performance management has come under quite some flak – Employees repudiate the annual performance review, HR isn’t exactly pleased with it either. There has been quite some press about removing the entire process, but it hasn’t really gone away, has it?

With most things today being available real-time, what good would a once-a-year feedback provide to an employee? At worst, it is merely a record of what was done and at best is a candid recap of the past year, with key learnings. The employees are often morose for not having known shortcomings earlier – when it could have been fixed, as opposed to learning of them when they have no way of correcting things.

So let’s nail it – we need a system, a system which can measure performance continuously, allow simple tracking and conversation through the year, as opposed to a one-time event.

SAP SuccessFactors Continuous Performance Management (CPM) focuses on structured and frequent performance reviews promoting engagement and employee participation in all levels, by simplifying measurement and letting everyone focus on managing performance to meet objectives. Let’s see how:

Figure 1 : Traditional v/s. Customized Process

Figure 1 : Traditional v/s. Customized Process

Table 1: Traditional approach Vs Customized approach

Table 1: Traditional approach Vs Customized approach

Let’s take a closer look at SAP SuccessFactors Continuous Performance Management (CPM)

An employee is a click away from a few powerful tools:

  1. Activities
  2. Achievements
  3. Annual Summary
  4. Coaching
POWER TOOL #1 : ACTIVITIES

Activities are tasks that employees are working on. Tasks are ground level and are directly linked to their goals. The status (high, medium, cancelled, completed) of the activity maybe set based on task priority and upon completion.

Figure 2: Figure showing how to add an activity

Figure 2: Figure showing how to add an activity

Now managers get a complete view of their team’s activities and can provide regular, effective guidance to employees. It also enables employees to keep track of their performance-related activities providing visibility to their managers about their work, priorities and progress. Activities can also be aligned to the goal plan (if applicable).

Additionally activities can be tracked and integrated with Goals and Development and also create Structure- a list of all activities, achievements, tasks which could be helpful during a one-on-one discussion.

POWER #2: ACHIEVEMENTS

Employees’ productivity tends to reduce when their work goes unrecognized. The Opt-in feature – CPM addresses this. Employees can take ownership of their activities and tasks. They can instantly capture their big moments and achievements on the go. Managers can also provide feedback, ensuring employees are aligned to goals.

Figure 3: CPM home screen

Figure 3: CPM home screen

POWER TOOL #3: ANNUAL SUMMARY

As the name says, it provides a summary of the employee’s activities and tasks performed throughout the year. It helps in having high-quality conversations during one-on-one meetings or performance reviews with managers.  Performance reviews or formal assessments need not be vague anymore. Managers can now stay abreast of their employees’ activities and provide more actionable feedback and guidance.

Figure 4: Annual Summary page of an employee

Figure 4: Annual Summary page of an employee

 POWER TOOL #4: COACHING

An effective way of giving feedback to employees, provide coaching and mentoring. Right from baby boomers to millennials, everyone responds positively to feedback. Recognition motivates employees and inspires them to achieve goals. They look forward to proper guidance to know areas where they outstand and those which require improvement. SAP SuccessFactors CPM is one of the most efficient ways to keep your employees happy, engaged and making them realize the value they add to the organization.

Figure 5: Sample coaching page of an employee

Figure 5: Sample coaching page of an employee

Let’s look at the Impact of CPM for the stakeholders

  • Employees
  1. Take more ownership for their performance
  2. Document their activities and achievements
  3. Receive feedback and coaching
  4. Aligned to business goals and enhance their performance
  • Managers
  1. Have a complete insight on their team’s activities
  2. It helps them provide better and effective guidance to their team
  • HR
  1. Track the frequency of meetings of one-on-ones
  2. Provide guidance to maximize the team’s potential

CPM lets your organization be agile and have an invigorating work environment that evolves with you. Any organization’s greatest asset is its employees, managing its employees and developing them to their potential is a tough task.

With SAP SuccessFactors CPM, you can manage your asset effectively; take advantage of the processes and technology which in turn helps your organization grow. Bringing a culture of continuous feedback and performance assessment and keeping it interactive makes employees more engaged plus inspired.

If you are looking at having Performance Management enabled on your SF instance or to know how Continuous Performance Management can maximize performance at your organization, please contact irene.jones@neeyamo.com.

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Implementing Objective Key Results (OKRs) on SuccessFactors PM-GM

By Shweta Patil, June 2, 2016

OKR

Let’s start at the top. What are OKRs?

OKRs are a framework for employers and employees to discuss how the work of an individual employee is connected to the overall business strategy. When championed by management and implemented throughout a business, OKRs help organizations to:

  • Impose disciplined thinking so major goals surface
  • Inform everyone about what’s important
  • Enable more accurate communication
  • Establish indicators for measuring progress
  • Focus effort and ensure alignment

Because they are visible to everyone top-down and bottom-up and cross functionally – OKRs ensure everyone is working toward the same result.

Wait – isn’t every performance management framework supposed to do the same thing?

In theory, yes – Every well executed measurement framework should deliver the same outcomes. However, traditional organizations have built frameworks around Management by Objectives (MBO) and measured by a Balanced Scorecard (BSC) framework that promotes cross functional thinking. Sometimes these can get really complicated with varying weightages across scorecard categories for different departments/functions.

So, what makes OKR different from MBO?

The SF PM-GM implementation is based on the Management by Objective (MBO) and a Balanced Scorecard (BSC) approach which is different from OKRs in many ways:

Review cadence: OKRs can be reviewed monthly or quarterly which differs from the MBO plan, which can be set annually or quarterly.

Measuring performance quantitatively: In the case of OKR, the measurement is always quantitative. The consistent scoring model is set up to be calculable and precise (between 0 and 1 for every KR). MBO is more flexible in its mode of measurement – it can quantitative, qualitative, or both.

Category Weights: With MBO, weightages can differ across various goals – In OKRs there are no objective wise weightages – no objective or key result is more important than other. MBO measurements are often tailored to the objective being measured, while OKR measurements are consistent regardless of the objective.

While all that sounds hunky-dory, the life of an implementation consultant is anything but!

So, what is the big deal with implementing on SuccessFactors?

Plenty actually.

SF is designed around the Balanced Score Card (BSC) approach with category weights and KRAs that can be individually weighted and rated. By design, OKR has no such weights and can have any number of objectives and key results for every individual! (Though 3-5 objectives between 3-8 KRs per objective are recommended).

Basically meant, we couldn’t use either the category-KRA or a goal-sub goal framework directly.

Calculating overall scores

For starters, Objectives carry no weightages and neither do Key Results. Only KRs should be rated during the review process (not objectives)

Formula

I’m sure the mathematically minded amongst you, already figured out that we are talking average of averages, which is not possible in SF, since there is no Count() function, that can give us the number of KRs or objectives!

Should we PM or GM?

To stay true to the tenets of OKRs, transparency of the goal and traceability to the top was vital. So we decided on using Goal Execution to allow all employees to transparently see how their goal was being mapped to the company goal. The wrinkle in the ointment was calculating overall scores since GM does not have much computational power and PM is limited to in-section calculations or overall calculations.

Route Map

The biggest challenge was to build the route map, as you are aware there is no workflow in a Goal Plan.  We used the 2 States – Approved States and Unapproved States, broke them down to 9 workflows.  While the employee cannot self-rate on KRs during the quarterly review period, the managers rating needs to come back to employee for 1:1 discussion.    Here the flexibility was provided to cascade the Objective to level up and level down.   Goal execution map was also made visible to the employee and the manager which is the pictorial representation of the cascading of OKRs.

OKR Score:

During the one on one discussion, the Manager keys in the score for each Key Result area under a Large Objective.  These KRAs then average up to provide the score for each objective.

We went one step ahead and took the average of objectives to give the employee an OKR Score. This creates focus and prioritization and aligns everybody in the organization towards the same goal.

How does this affect the Annual Performance Management?

During the annual performance evaluation, these scores can be reviewed and provides a deeper insight on the performance of the employee over the course of the last year.

To conclude, OKR sends the right signal to entire organization and these matters, OKRs are tools that can motivate, increase transparency, accountability and empowerment, so it was worth the effort and after all we have happy SuccessFactors customer.

So Next time somebody says OKR cannot be done in SuccessFactors, please talk to us.

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Talent Assessment may hold the key to bridging the competency gap

Competency Mapping

by Teena Thimothy  on 2 Apr ’14

In today’s world of cutthroat competition, companies are putting tremendous effort to hiring of skilled talent. However, to gain the needed competitive edge and survive in these dreaded times the real question is, “Should companies be fighting for limited raw resources or alternatively, should they be investing time in developing the relevant competencies in their existing employees?”

Talent assessment processes assists in analysis of the skill gap in your employees, and develop programs to bridge that gap by benchmarking with the current and future needs of the organization. Periodic Talent assessment enables organizations to reassess their current competency pool, update it and have the audacity to make the necessary changes to enhance the organization’s workforce management strategy.

The level of proficiency required in performing a said task to yield an effective output with optimum resource usage takes more than just identifying the gap in the employees’ skill set. For your organization to be the leader in its domain, your firm needs to define the set of core competencies, which corresponds directly with your key market differentiators.

HR has entered into a new age; this is the era where technology has taken a front seat. By automating your transactional HR workflow, skills assessment becomes easier. By changing from the old age HR culture will help you achieve highly optimized results, which identify talent, revolutionize performance reviews, and take them to the next level.

Periodic Talent Assessment empowers organizations to understand the in-house employee capability. This will enable charting of right resources to deliver quality output. It will invariably save on multiple factors – time, effort and cost attached with acquisition, training and delivery performance, spent while combating for raw talent from the outside world. Thus supporting the organization to achieve its principle ultimatum – that much-needed competitive edge to sustain and emerge a leader in such turbulent times.

Evaluating competency aids in analysing any gaps that may exist between your current workforce and long-term goals of the organization by making available right-training programs to nurture the talent pool, providing link to the development of an individual paralleling his growth with that of the organization and not just with rewards.
Talent assessment becomes easier to communicate across the company and hold people accountable to their goals when automated with tools like SuccessFactors’ Performance and Goal module.

SuccessFactorsPerformance and Goal automation module provides you with a SMART Goal Wizard, which enables you to quickly assess everyone on your team – in real time. It will instantly see your team ranked from top to bottom, identify your top players, cultivate them, and spot your lowest performers. There is no concept of tie scores. It supports legal check and eliminates subjectivity.