Canadian HR Reporter

CANADIAN HR REPORTER September 7, 2015 FEATURES 25 PERFORMANCE MANAGEMENT Stop wasting time on 'achieved' Performance appraisals should focus on strengths, weaknesses – and skip 'satisfactory' level, says HR executive By Norm Sabapathy I f you Google "performance appraisal," you'll receive more than seven million re- sults. So there are a lot of per- spectives on the subject. But, in general, how an organization ap- praises performance is a critical component of its performance management system. It's also a key area linked to organizational results where HR should make a significant contribution. How does human resources en- sure an effective performance ap- praisal system, particularly given that many people don't like either giving or receiving appraisals? No matter how excellent a sys- tem HR designs, it won't make a difference unless people down through the organization actually use the system and maintain its integrity. Employers struggle in this area. e traditional process of annual performance rating and ranking is widely considered broken. Or- ganizations have found the pro- cess hurts engagement, alienates high-potential employees, dem- onstrates a dubious link to pay- for-performance, wastes time and creates unhealthy competition. Organizations continue to ap- ply new solutions. Microsoft re- cently made headlines by saying it was abandoning the ranking process. Other organizations are experimenting with newer con- cepts such as crowdsourced per- formance appraisals, using social technology and feedback from across an organization as well as externally. There isn't one performance solution that works for all. HR professionals who are connected to the business and the organi- zational culture should take the lead in designing a performance appraisal system that drives the right consequences and results for their organization. For example, a crowdsourced performance appraisal system may be the best solution for em- ployers engaged in contingent and remotely executed work, particularly since the majority of employees today work in service or knowledge-related jobs. e key is for HR to ensure the organization doesn't simply water down the appraisal process just because people find it tough to identify meaningful development areas or deliver challenging mes- sages. Bill Conaty, former head of HR at General Electric under Jack Welch, often refers to the phrase "differentiation breeds meritoc- racy…. sameness breed medioc- rity." And HR, as stewards of the people system, should keep this top of mind. That said, one strong theme around the evolution of perfor- mance appraisal systems is the shift from annual, moment-in- time appraisals to ongoing feed- back and coaching — a more con- tinuous and collaborative process. At Cadillac Fairview, we're in the process of better integrating and streamlining these two approach- es, as well as using technology to ease the associated effort required from people in the business. We still see a place for the an- nual performance appraisal to calibrate employee results and behaviours, as well as to provide critical input into such areas as incentive payouts and talent re- views. We also see a place for regular manager coaching as an enabler of both employee results and development, as well as a way to reinforce the manager-employ- ee relationship. Regardless of an organization's appraisal approach, HR profes- sionals have a specific opportu- nity to boost the effectiveness of any performance appraisal system by coaching the organization to avoid wasting time in the middle of the appraisal. Given that systems can have a direct impact on employee results and development, the biggest le- verage to be gained from the sys- tem is when employees receive candid feedback about their domi- nant strengths, as well as their true weaknesses to avoid them becom- ing performance derailers. Quality over quantity Over the years, I've become more focused on quality over quantity in performance appraisals and routinely coach managers to skip needless explanations on satisfac- tory performance results. If some- one hit a target and "achieved expectations," a detailed descrip- tion saying the person success- fully achieved the target, worked hard and was a key member of the team may contain some feel good value, but it has little or no impact on real performance. Such commentary falls into the category of wasting time in the middle of the performance appraisal and it would be better to leave this comments section blank. Instead, spend time pin- pointing the top one or two results the employee achieved, then re- inforce the specific behaviours or talents she demonstrated to reach the better-than-expected results — the more observable, measur- able and specific, the better. The same applies to perfor- mance misses or leadership devel- opment areas. It would be a safe bet that every HR professional has seen comments such as "worked hard but due to a variety of fac- tors, didn't quite complete the initiative" or "develop leadership skills" or "get to know the business better" et cetera. ese types of comments are better than whitewashing perfor- mance misses or choosing safe, generic development areas like taking a course or touring com- pany locations. However, managers who do this are again wasting time in the mid- dle of the performance review and doing little to replicate or improve actual performance. Instead, managers should spend time identifying one or two specific, measurable and ob- servable behaviours that led to missing a target or would help the employee achieve greater results. For example, an employee would more greatly benefit from know- ing that "when she gets anxious in team meetings, she tends to cut people off and dominate the conversation without listening," or that "he regularly appears dis- tracted when others are talking, fails to give eye contact and fidgets with his iPhone." e manager can then help the employee see the consequences of this behaviour, identify the trig- gers and set a specific action plan to address it. at's where man- agers can pull real value from the performance appraisal process. is concept has been validat- ed through research, including a standout Gallup study of more than two million people over decades described in the book Now, Discover Your Strengths, by Marcus Buckingham and Donald Clifton. In essence, it's more pro- ductive to develop your strengths than correct your weaknesses. So managers have the opportunity to make a significant impact on em- ployees by helping them uncover dominant innate talents, to incor- porate their strengths into their leadership style, and to combine them with the right skills develop- ment for powerful results. Secondly, managers should help employees identify their true weaknesses and manage around them effectively. Years ago, I started the prac- tice of writing my employees a letter each year that outlines key accomplishments, strengths and development areas. I do this up- front, without the constraints of a performance appraisal form. I still complete the required com- pany performance appraisal but when I do, I complete it quickly, with clear messages that pinpoint the highs and lows, without com- mentary about the middle of the performance and development spectrum. Employees have rou- tinely told me they appreciate and value these letters. It takes skill and insight for managers to pinpoint specific, clear and behaviourally anchored strengths and weakness, particu- larly focusing on the ones that will have the biggest impact on an em- ployee's performance. It's an area where I regularly coach leaders and encourage them to incorporate 360-degree perspectives. But it's worth the in- vestment and, in the end, it reduc- es the amount of time managers spend on performance appraisals, helps employees realize new levels of performance and has the great- est business impact. HR professionals should be organizational experts here and coach others, as well as help build organizational courage so that giving candid, pinpointed feedback is both accepted and expected. Recall the wise words of Harvey Firestone who founded Firestone Tire back in 1900: "e growth and development of people is the highest calling of leadership." ese words remain true today and HR professionals who help others avoid wasting time in the middle of the performance ap- praisal are helping connect these words to better performance and results in their organization. Norm Sabapathy is executive vice- president of people at Cadillac Fair- view in Toronto. For more informa- tion, visit www.cadillacfairview.com. Credit: Max Griboedov (Shutterstock) Such commentary falls into the category of wasting time and it would be better to leave this section blank.

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