Ulfa Talitha Kumalayanti

29117499
Refashioning Performance Management Case

Case Overview
The new process involves informal monthly meetings between managers and their reports,
and it is more closely tied to bonuses to business performance. This will then become a positive
consequence for desirable behavior. Gap Inc.’s Senior Leaders believe that this new method of
performance evaluation will raise the bar of performance, provide meaningful reward for
exceeding plan and consequences for missing, ensure managers take accountability for assessing,
developing and rewarding performance as well as support a shift in culture from nice to nice and
honest. They believe that a one-size-fits-all approach to managing performance doesn’t consider
what drives employees.
The new plan soon got a name- GPS Scheme (Grow. Perform. Succeed)- and was built of
four components. The four components of the GPS Scheme are performance standard, goals, touch
bases and rewards.

Business Issues
GPS had been designed with the headquarters staff in mind, but their day-to-day jobs and
work environment was very different from what was found in the company’s stores. How to
develop the GPS format at the store level and how they can implement it?

Case Analysis
To apply the new framework of performance management (GPS), company need to change step
by step the GAP’s core values. The framework that could use to this change is ADKAR method,
there are 5 steps of ADKAR:

Awareness: Make all the branches around the world feel the need of change. Several things to
increase awareness such as:
 Current conditions and why changes need to be made
 The risks if changes are not made
 The vision to be achieved with this change
 Scope, goals, time, impact and others needed

Desire: Support for the change strategy should come naturally from the employees. Rather than
forcing the change upon your employees, including them in developing the project and vision will
ensure their support for the outcome.

Knowledge: Deliver the knowledge about how the new GPS works and its relationship with
performance and results for the company. They need to understand the changes that will be made
what will change and what will remain as before. Things that can be done are training and
education, information access, examples and role models.
Ulfa Talitha Kumalayanti
29117499
Refashioning Performance Management Case

Ability: Provide the skills to implement change on a day to day basis. For example, providing day
to day involvement, access to subject matter experts, provide effect performance monitoring, hands
on exercise during training.

Reinforcement: Create the ability and environment to sustaining the change and keep it going,
keeping the momentum going. For example, celebrations and recognition, rewards, feedback to
and from employees, audits and performance measurement systems, accountability systems.

For each component of GPS

a. Performance standard had Senior leaders setting tougher objectives and motivating
employees
b. Goals began to be more personal and more inclined to motivate each individual
employee to succeed.
c. Touch Bases were the monthly meetings in which employees and managers can
converse and give each other advice or help
d. Rewards, managers have been forced to rethink how they allocate merit and bonus
payments to their employees, while the composition of the bonus itself has been
changed to place more of a focus on company performance.