Performance Management

Performance management is a process by which managers and employees work together to plan, monitor and review
an employee’s work objectives and overall contribution to the organization. More than just an annual performance
review, performance management is the continuous process of setting objectives, assessing progress and providing
on-going coaching and feedback to ensure that employees are meeting their objectives and career goals.

An effective performance management system will:

 Be job specific, covering a broad range of jobs in the organization
 Align with your organization’s strategic direction and culture
 Be practical and easy to understand and use
 Provide an accurate picture of each employee’s performance
 Include a collaborative process for setting goals and reviewing performance based on two-way communication
between the employee and manager
 Monitor and measure results (what) and behaviors (how)
 Include both positive feedback for a job well done and constructive feedback when improvement is needed
 Provide training and development opportunities for improving performance
 Ensure that employee work plans support the strategic direction of the organization
 Establish clear communication between managers and employees about what they are expected to accomplish
 Provide constructive and continuous feedback on performance
 Identify and recognize employee accomplishments
 Identify areas of poor performance and establish plans for improving performance
 Support staff in achieving their work and career goals by identifying training needs and development opportunities
 Support administrative decision-making about promotions, terminations, compensation and rewards
 Provide legal documentation to demonstrate due diligence for legal challenges related to dismissal or vicarious
liability (an employer can be held liable for the acts or omissions by its employees during the course of
employment)
The establishment of an effective performance management system requires time and resources and therefore, the
support of the board, the executive director and other senior managers. When developing a new performance
management process, an organization can strike up a committee made up of employees, managers and board
members to increase buy-in, understanding and support for the process.

Management support to act upon the outcomes of the performance management process is also necessary to ensure
that good performance is recognized, inadequate performance results in the necessary support and/or training to
improve performance and consistently poor performance results in a change of responsibilities or termination, as
appropriate.
Whether you are introducing a new performance management system or if you are modifying an existing process, it is
critical that you communicate the purpose and the steps in the performance management process to employees before
it is implemented. Also remember to review your new performance management system after the first year and make
adjustments as necessary.

The performance management cycle

There is much more to performance management than the annual performance review meeting. As mentioned in the
introduction, performance management is a continuous process of planning, monitoring and reviewing employee
performance.
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Phase 1 — Plan
The planning phase is a collaborative effort involving both managers and employees during which they will:

 Review the employee’s job description to determine if it reflects the work that the employee is currently doing. If
the employee has taken on new responsibilities or the job has changed significantly, the job description should be
updated.
 Identify and review the links between the employee’s job description, his or her work plan and the organization’s
goals, objectives and strategic plan.
 Develop a work plan that outlines the tasks or deliverables to be completed, expected results and measures or
standards that will be used to evaluate performance.
 Identify three to five areas that will be key performance objectives for the year. The choice of areas may be
determined by the organization's strategic plan, by the employee's desire to improve outcomes in a certain part of
their job, or by a need to emphasize a particular aspect of the job at this time. These are objectives that are critical
to the overall success of the position. If the employee does not meet his/her critical objectives then overall
performance will be evaluated as unsatisfactory.
 Identify training objectives that will help the employee grow his or her skills, knowledge, and competencies related
to their work.
 Identify career development objectives that can be part of longer-term career planning.
Both the employee and manager need to sign off on the proposed work assessment plan. A copy of the plan should be
given to the employee and another should be kept in his or her confidential personnel folder.

Setting objectives and measurements

Often the most difficult part of the planning phase is finding appropriate and clear language to describe the
performance objectives and measures or indicators of success. Managers need to ensure that the objectives are a good
representation of the full range of duties carried out by the employee, especially those everyday tasks that can take
time but are often overlooked as significant accomplishments.

Objectives and indicators need to be SMART

Specific
Specify clearly what is to be done, when it is to be done, who is to accomplish it and how much is to be accomplished.
Measurable
Ask questions such as: How much? How many? How will I know when it is accomplished? Multiple measures should
be used if possible, for example, quantity, quality, time frame and cost.
Attainable
Assure there is reasonable path to achievement and feasible odds that you will get there.
Realistic
The objective needs should match the level of complexity with the employee's experience and capability and no
insurmountable forces outside the control of the employee should hinder its accomplishment.
Time-bound
Be clear about the time frame in which performance objectives are to be achieved. In most cases, objectives are to be
completed by the end of the performance review period.

http://hrcouncil.ca/hr-toolkit/keeping-people-performance-management.cfm

Mental Model: Horns Effect and Halo

Effect
One of the most powerful, and potentially harmful, mental models you will encounter in your
life is known as the horns effect and halo effect. It can cloud your judgment, and because
it is closely related to the mere association mental model, has the power to cause you to
make sub-standard decisions or hold irrational beliefs. You must train yourself to actively
fight against it.

What is the horns effect and halo effect? It is a

cognitive bias that causes you to allow one trait, either good (halo) or bad (horns), to
overshadow other traits, behaviors, actions, or beliefs. In psychology, horns effects and
halo effects happen all the time. Attractive people are, on average, though to be more
intelligent even though this isn’t true. Overweight people are thought to be lazy, which is
not necessarily the case.
The power of the horns effect and halo effect comes from the fact that it is closely related
with several other mental models and, working together, you get a magnified influence. On
one hand, you have mere association at work. On the other hand, you have the mental
model of implicit personality theory, which states that individuals believe traits are inter-
connected so that the presence of one traits means the presences of others, which isn’t true
(e.g., a girl who dressed provocatively might not sleep around and someone who speaks
slowly might not be unintelligent).
The best way to illustrate how powerful the horns effect and halo effect are is to give you
real life examples using extreme cases.

The Horns Effect: The Case of Ayn Rand and William

Hickman
Ayn Rand was fond of a phrase, “What is good for me is right”, that was attributed to a man
named William Hickman. In her philosophical school of thought, Rand believed that the
only way to drive the world was through the harnessing of individual selfishness into a
system that provided good benefit for everyone, which explained why Western style
capitalism resulted in far higher standards of living, despite its flaws, than any thus far
discovered model. Rand believed the quote was the closest thing to how real men and
women thought that she had ever read.
People who know Rand’s works realize she passionately disavowed the use of initiated
violence to solve a problem, believing it to be a great evil. Men must persuade one another
through facts and reasons, not bombs and guns. The central thesis was that each man
should be entitled to live as he would and achieve what he could without others trying to
take from what he had rightly acquired. One of the reasons Ayn Rand despised
redistribution of wealth through taxation is because the underlying threat was one of
restraining freedom; that is, if you don’t pay your taxes to be given to someone else as
voted by the mob, they would throw you in prison, a de facto threat of violence.
Decades later, critics who reviled Rand’s school of thought would often point to the quote
she used by William Hickman and say accusatorially, “Don’t you know what kind of man
William Hickman was?”. Thanks to essays by people such as Michael Prescott, we can tell
exactly what kind of man William Hickman was. Warning: The next few paragraphs are
graphic.
The Case of William Hickman
In 1927, William Edward Hickman, a 19 year old male, went to a Los Angeles school
and managed to get his hands on a 12-year-old girl named Marian Parker, the daughter
of a wealthy and prominent banker. He sent ransom messages to Mr. Parker
demanding $1,500, which the banker paid in gold certificates. Today, in inflation-
adjusted terms, that is roughly $18,700. Hickman said he needed the money to attend
Bible college. He would sign the messages cruelly with “Death” or “Fate”.
At the ransom drop-off point, Mr. Hickman could see his 12 year old daughter in the
car. After the money had changed hands, the car sped off, and his daughter was
dumped on the side of the road. She was dead. Her legs had been cut off, her internal
organs removed and strewn all over the city, and her eyes wired to make it appear as if
she were alive. He had drained her of blood, stuffed her with bath towels, and severed
her hands.

Hickman told police, “Marion and I were good friends, and we really had a good time
when we were together and I really liked her. I’m sorry that she was killed.”
Clearly, William Hickman was a psychopathic nut job. One could call him evil but to be evil
require a sense of accountability and Hickman just seems downright crazy.
People who disagree with Ayn Rand’s economic philosophy yet can’t come up with any
rationally stated reason will point to the attribution of one of her favorite quotes, asking
either implicitly or explicitly, “What does it say about someone that they like a quote from a
monster capable of such horrific acts?”.
This is the horns effect. The quote, “What is good is right for me,” which Ayn Rand correctly
identified as getting the heart of how most people think about the world, was cast under the
shadow of the horns of the man to whom it is attributed, William Edward Hickman, to the
point that most people would likely dismiss it out-of-hand without considering whether the
quote is true or not.
In reality, no matter who made the statement, the statement is either true or untrue on its
own merits as an independent “thing”. It can either be proven or disproven. It is what it is
regardless of origin or source.

The Halo Effect: The Case of Joe Paterno and The

Penn State Scandal
Over the past few days, we’ve discussed the mental models at play in the Joe Paterno and
Penn State scandal. One of the things we haven’t discussed in-depth is the rioting students
at Penn State, who are defending Joe Paterno and don’t like the fact he was fired for what
appears to the outside world as a case of a man covering up and remaining complicit in the
activities of an alleged child rapist.
Why would otherwise good people jump to Paterno’s defense when his inactions appear
completely devoid of morality to the point of unquestionable moral bankruptcy? The halo
effect.
For more than half a century, Joe Paterno devoted his life to building a program that
churned out countless athlete leaders, changed the world of sports, left an enduring legacy,
and stood for excellence. He has come to be a shining beacon of good for both the
institution of Penn State and the game of college football. The “halo” of his reputation and
actions are so strong that for some people, particularly those close to the program, his firing
is incomprehensible. They are blinded by the penumbra of light that is visible from behind
the looming scandal and cannot believe that a man they respect and admire so deeply
could possibly have stood by as his former defensive coordinator allegedly brought young
boys, who many people had reason to believe were being molested and raped, to athletic
games and other events.
Unable to treat the situation objectively due to the strength of the halo, men and women
who would otherwise be demanding vengeance and blood had the same actions been
taken by their neighbor or local school counselor, are arguing we should look the other way
or forgive Paterno.
How to Protect Against the Horns Effect and Halo
Effect
The best defense against the horns effect and halo effect is to always adhere to one
rule: Every idea must stand on its own merit regardless of who proposes it.
That is easier said that done. Consider the case of the average Republican, who is
supposedly pro-tax cut. A few months ago, President Obama proposed a 50% payroll tax
cut that would have been one of the greatest middle class tax cuts in the history of the
United States. They opposed his jobs bill, which included the tax cut, in large part because
it would have been a political “win” for him. In the far-right mind, the “horns” of Obama’s
personality overshadowed their own self-interest.
Go through life evaluating every proposal and every situation on its own merits, its own
rationality, and its own opportunity costs and outcomes. This is exactly why John Stuart
Mill would read books, articles, and other evidence that he knew to be wrong in order to, ”
[see] that no scattered particles of important truth are buried and lost in the ruins
of exploded error”. He had built a system that compensated for the horns effect and halo
effect, allowing him better cognition.
It is important that you realize the horns effect and halo effect are not without merit. While
you should strive to remove them from your cognition, they should still influence
your behavior. I wouldn’t want to be around people who lie, steal, or cheat even if they are
good at their job or otherwise pleasant. There is nothing wrong with being cautious when
an otherwise bad person says something that might seem to make sense; the proverbial
“devil in a Sunday hat”.
A good idea is a good idea even if it is proposed by the town drunk. A bad idea is a
bad idea, even if it is proposed by the town hero. Never forget that and act
accordingly. This is one of the reasons that mature thinkers don’t take offense when
someone attacks their positions or ideas – they are not extensions of the person, but rather
must stand on their own. There is nothing I enjoy more than assaulting my own beliefs from
all sides to see if it can withstand the force. That approach is why I get more and more
rational with each passing year, and my real-world results reflect that. There is nothing
original in this approach. Anyone is free to adopt it.

https://www.joshuakennon.com/mental-model-horns-effect-and-halo-effect/

long Cycle Basics

Saying a sales cycle is long means different things in different industries. In a retail environment, sales cycles
are typically short because people come to the retail store to buy. However, in sales industries in which you
have to call on prospects, the cycle can take days, weeks, months or even years. In the commercial furniture
industry, for instance, months is a normal cycle time because you often sell furniture to new companies as they
await a building.

Rapport
With a long sales cycle, your rapport and eventual relationship with the prospect should become strong.
Building rapport is important to long-term customer relationships, which should serve as the goal of most
salespeople in the early 21st century. You have time to get to know the prospect when you have multiple
meetings and significant time invested. Longer cycles sometimes mean that you have to make and confirm the
sale more than once.

Short Cycle Basics

As with a long cycle, the meaning of a short sales cycle can vary. In the aforementioned commercial furniture
sales business, a cycle of a few months is often considered short. Ultimately, the key is the goal of a
salesperson should be to minimize the cycle time as much as possible without sacrificing on the rapport with
the prospect. Shorter sales cycles offer many business benefits as indicated by the common adage "time is
money" in selling.

Benefits

A shorter sales cycle means that you can meet with more prospects during the same time frame. For instance,
an average cycle time of one week with each prospect allows you to meet with many more people than if it
took two weeks on average to complete the cycle. This gives you opportunities to make more money because
you meet with more people. Plus, most prospects prefer a shorter sales cycle as long as you have a helpful
attitude, solve their problem or fill a need
http://smallbusiness.chron.com/long-sales-cycle-vs-shorter-sales-cycle-22868.html

Definition of 'Bars'
Definition: Behaviourally anchored rating scale or BARS has now become a commonly used
methodology by companies to compare the performance of its employees against specific or
predefined set of behaviour traits which are linked to specific numeric value or rating from a
scale of 1-5.

Description: Behaviourally anchored rating scale combines both qualitative as well as

quantitative aspects of assessing employees’ performance. Let’s understand how it works.
Suppose you got your car serviced from the company’s authorised dealer.

Within 24 hours of the servicing you will get a call from an independent office seeking your
feedback. They ask you varied types of questions such as were you comfortable with the time
slot give to you, seating area of customers, was your supervisor helpful, etc.

Next, they will ask you specific questions related to the supervisor and his/her basic etiquette
which you have to answer on a scale of 1-5 or 1-10, with 10 or five being the highest.

BARS is now commonly used across businesses which deal with the public such as customer
care units of telecom operators, banks, car rental service companies, etc.

A BARS approach usually breaks down any task into behaviour which is more cautious. This is
done to have a unified technique of attending a call. Let’s take an example, suppose you work
with a national telecom operator as a customer care executive. They would have a quality team
which would listen to your calls to gauge how you interact with the customers. Is it according to
the standard operating procedures (SOPs) or not? This would help them (company) in
assessing every employee’s performance towards the end of the year.
https://economictimes.indiatimes.com/definition/bars

The Business Operating System, or BOS, was initially developed as an early cross-
platform operating system, originally produced for Intel 8080 and Motorola 6800 computers, then
redeveloped for actual businesses and business models. The technology began subsequently
for Zilog Z80-based computers, and then later for most microcomputers of the 1980s, then ultimately
based on the Sonnet platform with Matthew Son, developed into a premium automated software
solution for Investors and Asset Managers alike. CAP Ltd, a British company and at the time one of
the world's largest Information Technology consulting firms, developed BOS. CAP designed BOS
and BOS applications for platform-independence.
Via a management buyout (MBO) in 1981, BOS was spun off to three interlinked companies, MPSL
(MicroProducts Software Ltd) which looked after the sales and marketing of BOS, MPPL
(MicroProducts Programming Ltd) which looked after both the development of BOS and various
horizontal software packages, and MicroProducts Training Ltd. BOS was distributed on a global
basis, mainly to the United States and British Commonwealth, by a variety of independent and
MPSL-owned companies. When Harrell and Son redeveloped the technology in the early 2000s, it
took akin to processing complex requests from users, and "Learned" the algorithm of its user's
selections to better predicate its automation process.
A popular version was implemented on the Sage/Stride 68000 family based computers, and sold
well in Australia. The Sage itself was initially developed using UCSD Pascal and p-code, so it fitted
well with the basic BOS design.
The small BOS dealer/distributor network and its command-line interface structure met its demise
when graphical user interfaceoperating systems became prevalent. The redevelopment of which, in
2013, was integrated with a graphical user interface, GUI, in order to provide a "simple to use"
solution, which "learned" from its user's input.
MPSL developed numerous products for BOS, generally targeting the horizontal markets, leaving
the vertical markets (i.e. niche) to independent software vendors ISV. Examples of MPSL developed
software include BOS/Finder (database), BOS/Planner (spreadsheet), BOS/Writer (word processor)
and BOS/AutoClerk (report generation). Companies sold various BOS accounting software suites in
the UK and United States. In the UK, BOS accounting packages were considered to be the industry
standard by some accountants. In 2013, the predominant BOS solution has been in the technology
of PropertyManageMATE, (With MATE being an acronym for Multi-Automation Tasking
Environment), providing an automation to asset management, maintenance, contracting, tracking,
and servicing.
BOS applications were initially compiled to a p-code and interpreted as they ran. BOS had a p-code
interpreter so efficient that programs, even the BOS/Writer word processor, ran sufficiently fast to
satisfy users. Apart from a 2-kilobyte (Kb) server (computing)/host kernel, BOS is written
in BOS/MicroCobol, a language based on COBOL but with system-level programming constructs
added and elements of structured programming, which bore a vague similarity to Pascal. In recent
computing, programming languages such as Java have re-introduced the concept of p-code "virtual
machines". As the BOS system evolved, the need for programming in ASP.net developed for quicker
accessibility and cloud computing. Harrell & Son took the next steps to bring BOS back into the
picture on a larger scale.
BOS initially required 48 Kb of RAM and two 250 Kb floppies, though it was more commonly
deployed on machines equipped with 64 kilobytes of RAM and a hard drive. A computer with
128 KB RAM and a 10-megabyte (Mb) hard drive could run as many as five concurrent users. When
the IBM PC XT came out in 1983, BOS served over eight concurrent dumb terminals on it. At the
time, this made BOS very attractive. Now, BOS runs on the same required RAM and serves up to
800,000 concurrent users as it is paired with cloud computing.
With user-management tools in the 80's, and application programming interfaces in the mid-80's,
BOS was considered an alternative even to the platform-specific operating systems on machines
such as the PDP-11 and the VAX. The new reemergence of BOS has escalated the number of users
requested to be entered into the PMM system, and may require consistent server updating.
Despite, or because of its command-line interface, BOS remains popular with medium to large
organizations in the UK and US.[
https://en.wikipedia.org/wiki/Business_Operating_System_(software)