Performance Management Training Program

A System for Continually Increasing Individual Performance and Organizational Productivity

Introduction
Consistently successful companies create high expectations, set highly demanding goals, and consistently achieve excellent
results. In order to fulfill its vision and ambitions, it is vital that an organization execute to the highest standards.

Performance Management is a defined process for aligning organizational, team and individual goals, and for continually
improving team and individual performance.

Where Performance Management is applied

This PM approach is used most often in the workplace but applies wherever people interact—schools, churches,
community meetings, sports teams, health setting, governmental agencies, and even political settings. PM principles
are needed wherever in the world people interact with their environments to produce desired effects. Cultures are
different but the laws of behavior are the same world-wide.

Performance management has a wide variety of applications such as employee performance, software performance,
business or corporate performance and so on.

Benefits
Managing employee or system performance facilitates the effective delivery of strategic and operational goals. There
is a clear and immediate correlation between using performance management programs or software and improved
business and organizational results.

For employee performance management, using integrated software, rather than a spreadsheet based recording
system, may deliver a significant return on investment through a range of direct and indirect sales benefits,
operational efficiency benefits and by unlocking the latent potential in every employees work day i.e. the time they
spend not actually doing their job. Benefits may include :

Direct financial gains

 Grow sales
 Reduce costs
 Stop project overruns
 Aligns the organization directly behind the CEO's goals
 Decreases the time it takes to create strategic or operational changes by communicating the changes through
a new set of goals

Motivated workforce
 Optimizes incentive plans to specific goals for over achievement, not just business as usual
 Improves employee engagement because everyone understands how they are directly contributing to the
organisations high level goals
 Create transparency in achievement of goals
 High confidence in bonus payment process
  Professional development programs are better aligned directly to achieving business leval goals

Improved management control

 Flexible, responsive to management needs
 Displays data relationships
 Helps audit / comply with legislative requirements
 Simplifies communication of strategic goals scenario planning
 Provides well documented and communicated process documentation

The Performance Management Process

Performance Management is the essential process that enables leaders and employees to set priorities in alignment with the
organization's mission, and subsequently maximize individual, team and organizational performance. Alignment within the
organization, from executive level management, to functional groups, to work teams, all the way to the individual contributor is
facilitated with a performance management process.

The process is also a tool that enables employees to know exactly where they stand and what they need to focus on to
improve their own performance and to grow within the company. This can only occur when leaders and employees work
together to define each individual’s purpose, core responsibilities, results-based goals, measures, and stretch targets against
which performance can be monitored.

But it is not enough simply to monitor progress against established objectives. Progress must be communicated by the leader
to the employee and support must be provided in the form of coaching and counseling to improve performance on an ongoing
basis.

In an organization without a performance management process, leaders often base their performance reviews on annual
meetings in which judgment or opinion form the basis of the discussion, rather than actual results based on performance. The
review and feedback sessions throughout the performance management process enable leaders to base their performance
reviews on results because of the clarity of goals and measures that have been set. Feedback sessions, whether about
productive or nonproductive performance, are important opportunities for communication and improvement.

A performance management process enables leaders, teams and employees to perform more effectively, thus improving the
performance and business results of the organization as a whole.

There are five basic steps to performance management at Commerce: planning, monitoring, developing, rating, and
rewarding. Each of these five components works together and supports each other, resulting in natural, effective
performance management.

At the beginning of each fiscal year (known as the appraisal cycle), you will enter into a “contract” with your supervisor.
That “contract” (known as your performance plan) outlines the services or deliverables (known as results) that you
must accomplish during the year. Throughout the year, you supervisor will give you ongoing feedback on how you are
doing and at the end of the year you will be evaluated (known as a summary rating) against specific measures (known
as supplemental standards) on how well you accomplished the results.

The results of your “evaluation” can have both a positive or negative impact on you. On the positive side, it can, among
other things, make you eligible for a cash award of up to 10 percent of your salary or make you eligible for a career ladder
promotion. On the negative side, it maybe used to reassign you to another position, change you to a lower grade, or
remove you from your job altogether.
Goals of the Performance Management Process

 Communicate Commerce’s organizational goals and objectives

 Reinforce individual accountability for meeting those goals, and
 Track and evaluate individual and organizational performance results.

 Focus the entire organization on business goals, create alignment to these goals at all levels of the organization, and
provide a direct linkage for every person’s individual work to those goals.
 Serve as a tool for translating the organization's vision, values, and guiding principles into defined principle-driven
behavior at all levels.
 Enhance performance results by providing clarity regarding purpose, responsibilities, goals and measures and the
 requisite freedom of action (empowerment) to achieve these goals.
 Build ongoing feedback, coaching and counseling as an integral part of the relationship between leader and employee.
 Provide a basis for measuring performance and improving the performance review process.
 Serve as a basis for improving each employee's performance and contribution to the organization for current and future
business requirements and individual employee professional and career growth.
 Establish a communications linkage with the organization’s compensation system so that rewards and recognition can
be tied to performance.

Performance Management is based on the following principles:

1. The purpose of performance management is to reinforce and create the mutual success of both the employee and the
company.
o This is not a process designed to control behavior and play "gotcha" with people.
o This is not a process whose primary purpose is to drive compensation decisions.
o The performance objectives for each employee must be tied directly to the business plan of the organization.
2. Employees should know what is expected of them at all times.
o These expectations are a combination of both relatively consistent core responsibilities and frequently
changing and evolving goals.
o The process must be flexible and adaptable so that it can be modified easily for an individual as goals are
modified to meet business needs.
3. Expectations must be based on an employee’s real work - their purpose in the organization.
o A performance management process must deal with the real substance of the business and focus on real-time,
day-to-day priorities, not an administrative tool that adds paperwork.
o An employee's individual contribution should define his/her total contribution to the business. It must focus on
both the quantitative results and other very real but less measurable qualities that are essential to the success
of the business (such as customer satisfaction or enthusiasm brought to an assignment that sparks a team).
4. The key outcome of the performance management process must be improved performance (effectiveness) and
professional growth for each employee every year in his/her current work assignment.
o The focus of the process is to manage and reinforce performance in the employee's current work assignment.
o It is not primarily a career development tool. Career development is a separate activity to be conducted by the
manager.
o The process must have a strong developmental component, focusing on improving the performance of each
employee every year.
5. Performance criteria are not the same for each person in the same job title or role. Expectations are based on
experience, skill and other factors, as well as personal qualities brought to the job by both the employee and the
leader.
o Not everything in the performance management process is objective and measurable.
o There are performance criteria that are subjective, and demand the sound judgment of the leader.
6. The process is two-way between the employee and his/her leader.
o Communication and feedback must be two-way.
o Both must participate in the setting of mutual expectations if mutual trust and support are to be developed.
o Employees should receive ongoing performance feedback to enable them to develop and improve.
7. Performance management is a yearly cycle that typically ends with a formal evaluation. Results are recorded and
contribute to the employee’s future assignments, career development, and compensation.
o Single event-driven models that focus on annual performance reviews tend to be subjective and add little value
to future performance.
o If the cycle is implemented throughout the year, managers conduct regular one-on-one feedback and coaching
sessions with their employees, and performance corrections and enhancements occur throughout the year.
o If performance management is implemented as a cycle, the end-of-year review is little more than any other
regular meeting, with a future-based focus on increasing performance goals for the next year.
8. The organization's recognition and reward systems must be loosely tied or linked to the performance management
process.
o The results of the performance management process inform the compensation process to the extent that it
 should differentiate between outstanding performers, those meeting job expectations, and those not meeting
expectations.
o It is not a tool designed to influence or drive compensation decisions or recommendations at a more detailed
level.
9. The process must be simple to use and administer so that it contributes to the effectiveness of both the employee and
leader.
o It cannot be an "overhead" process that detracts from the real work of the organization.

The Performance Curve

The performance curve may be one of the most useful diagrams a leader can use with an employee to come to a common
understanding of that employee’s current level of performance, and the need for continued development in a position.

Once the performance baseline standard has been reached, it is essential for the employee to recognize that the baseline is
just that – a minimum baseline. It is not the measure of ongoing successful performance. The expectation is that the employee
now continues to progress into the competency zone.

This zone, shown below, reflects a path forward for ongoing performance growth and increased competence over time. The
expectation of movement along the performance curve through the competency zone is the reason why employees who have
been in a position for a while generally earn more compensation than those newly assigned to the job.

This is a very critical concept and often not articulated as clearly as required. Many employees have an initial negative reaction
to this concept – perceiving that advancement in the competency zone is supposed to mean longer hours or simply work faster
and faster or harder and harder. That is not the case.

There certainly is an expectation of increased efficiency with additional experience. But often performance improvements are
more qualitative – the ability to provide greater strategic inputs, develop new technologies or coach and mentor other
employees. There are many ways in which performance should continue to improve over time – as reflected in the variety of
core responsibilities established for the position.

Specific competency growth goals should be established with every employee every year. They may be reflected in some or all
of that employee’s responsibilities. But in all cases they should be both specific and measurable.

Many leaders also establish stretch targets with employees in the competency zone. They agree on what is expected and then
agree on how far the bar might be raised beyond these goals. Stretch targets can be established as the goals for such added
incentives as bonuses, or for identifying fast track paths to help employees who would like to advance their career more
quickly.

The Performance Curve also shows that there is a mastery zone beyond the competency zone. Mastery recognizes that this
employee has achieved the highest levels of performance in this position as an individual contributor. Very often continued
growth at the mastery level is reflected in developing and coaching others, providing cross-functional interfaces, strategic
initiatives, process improvement, new technology development, etc. These are all examples of ways a job might be enriched
both for the personal continued growth of the employee and the continuation of added value for organization. If there is no
continued growth or contribution once the mastery zone has been reached, the employee’s compensation will similarly reach a
cap. This is generally not good for either the employee or the organization.

The time it takes for an employee to travel through the competency zone is a function of the employee’s skill and desire and
the complexity of the position. For some jobs mastery can be reached in a matter of a few months. Other positions may require
years of development and growth. This progression plan should be developed by the leader and employee together.

The Organizational Potential

The performance curve may be one of the most useful diagrams a leader can use with an employee to come to a common
understanding of that employee’s current level of performance, and the need for continued development in a position.

The research evidence of the impact of performance management on individual performance, organizational productivity,
customer satisfaction, and enhanced bottom line profitability is compelling. This research evidence is described in Dr.
Resnick’s book, "Energizing Workplace Performance".

The following diagram shows how a shift in employee performance of one standard deviation has an overall 34%
organizational productivity impact.
There is no other system or tool known that can have a similar impact on organizational productivity, individual performance,
customer satisfaction, and the creation of an organizational culture that performs its work with unparalleled passion and
energy.
What are Accomplishments?

Accomplishments are the products or services (the RESULTS) of doing your job (not tasks or activities).
Accomplishments are generally described using nouns and are those "things" (products or services) that
have resulted from your individual work activities and efforts. If you carry out the duties and
responsibilities that have been assigned to you, your accomplishments are your contribution to the
achievement of the Agency's Vision, Mission, and goals. Even if you are not directly involved with a
specific Agency or organization's project, program, or goal, your Rating Official should have explained your
organization's goals and objectives and how your work is aligned with/contributes to those goals and
objectives.

TIPS

 While writing an effective self assessment takes some effort, it does not have to be
lengthy; however, your self assessment should provide your supervisor with a clear
picture of your performance and contributions.

 The self assessment is not an exercise in good writing. Rather it is an opportunity for
you to describe your major contributions and how your work meets or exceeds the
performance expectations.
 Documenting everything you accomplish during the appraisal period is not expected. You
are encouraged to keep a journal/notes/file throughout the appraisal period to record
significant activities as they occur. This makes the self assessment activity easier to
complete and keeps the self assessment specific and relevant to the elements and
standards in the performance plan.

Be Specific:

To write specific examples of your accomplishments, think in terms of cause and effect –

"Drafted A that resulted in B which contributed to C." Do not leave it to your Rating Official or others to
presume contribution.

For example, stating, Published three technical journal articles during the performance year" implies
contribution but does not directly state one. A more specific example might be, "Published three technical
journal articles on <technical subject> which resulted in <some desired advancement in the technology>
in direct support of our <specify goal.>

Tips on How to Write Effective Accomplishment Statements:

 Modify your thinking from the activity (generally described using verbs) which is the
action taken to produce the result, to the accomplishment (generally described using
nouns) which is the product or service (the result) of your activity.

 Limit to 2 pages, if possible (first inclination is to overwrite it – the more is better

philosophy). Instead, (1) be concise, (2) Use Plain English, and (3) Use bullets, not
lengthy paragraphs.
 Arrange by performance element. It is easier for the supervisor to link the
accomplishments to each individual element.
 Describe the accomplishment. Be specific about what you did. Don’t be vague or use
general terminology.
  Describe the impact, result or outcome of accomplishment. Did it enhance a work
process? Did it have an impact on a customer? Did it help the organization achieve its
goals?
 Use your performance plan as a guide – address the standards. It is sometimes helpful
to report your accomplishments in terms of standards: (1) Quality - how well was the
work done; (2) Quantity - how many were produced; (3) Timeliness - did you meet
the deadline(s); and (4) Cost effectiveness - did you work within the cost budget?
 Do not use “I” statements. Instead, use action verbs that describe the specific role in
accomplishment such as “Managed”, “Reviewed”, “Launched”, “Conducted”,
“Revised”, “Issued”, or “Drafted.”
 Refer to journals, weekly, activity/status reports, calendars, previous accomplishment
reports, etc. TIP – Create a MS Word file or folder to record your accomplishments
throughout the year.
 Avoid laundry lists. Too much information gives the impression you didn’t do anything
specific.
 Proof read your report. Use Spell Check and Grammar Check.
 Do not hide your light under a rock. Your supervisor is not going to remember all the
details of what you did during the year. Do not underestimate the importance of what
you accomplished during the year. If you don’t report it no one else will.
 If you are part of a project or team: (1) report your specific contribution (i.e., memos,
research, etc.) that was part of the overall team effort, and (2) if the project was not
completed, report on the milestones you completed as part of the project.
 Include any kudos/thank yous from your customers. Those customers can be either
internal (fellow staff members) or external (employee/managers in other bureaus).
 You can list that you chaired a meeting or project team that yielded specific results, but
do not report that you attended a meeting or conference. Attendance is not a result.
 During the course of the year, we all get assignments, projects, etc. that are not in the
performance plan. Be sure to capture those in your accomplishments.

Final Thought:

As a "partner" in the performance management process, you have a responsibility and an obligation to
yourself to "Toot Your Own Horn!"

Performance Management Myths & Facts

Myth: Performance is the sole responsibility of management.

Fact: The most successful individuals take responsibility for their own growth and manage their own
performance. After all, most people no longer work for one company or one department for their entire lives.
Individuals are usually the only ones with intimate understanding of their career goals, progress, and learning.
It makes sense that people should be accountable for their performance.

That said, often people can't see themselves objectively. Managers help by providing direction and feedback
throughout the year. At the same time, people receive performance feedback from customers, peers, and
partners. The most successful performance management systems involve and take into account all
perspectives: those from managers, performers, customers, peers, and partners.

Myth: It's important to lock in goals at the beginning of the year and hold people accountable for them.

Fact: Adaptability is a new part of the performance management process. For years, companies were
satisfied with identifying goals at the beginning of the year and then reviewing them at year end. The world
has evolved. It's likely for markets to shift, new competitors to emerge, and priorities to change during the
course of a year. Adaptability is important in this world. Performance management systems must have the
flexibility and adaptability to evolve along with changing circumstances.

That said, new goals needn't be written every month. Instead, organizations strong in performance
management identify overarching strategic priorities that remain in place while supporting goals and activities
adjust. These strategic priorities create consistency amidst chaos and provide a beacon for employees to
follow even as they adapt their individual priorities to fit the environment.

Myth: Performance management works best when it focuses solely on the individual.

Fact: Ideally, individual contributors should be able to trace their own goals to department goals to division
goals and up to corporate goals. The best performance management systems link individual and
organizational goals clearly. These cascading goal systems help ensure that the organization is entirely
aligned and focused on its overarching strategies and priorities.

Myth: Performance management happens when setting goals at the beginning of the year and when
reviewing performance at the end of the year.

Fact: Performance management works most successfully when it is integrated into daily work. The best
performance managers solicit, give, and receive feedback constantly. After all, if people aren't doing what
they need to do, isn't it better that they find out quickly so they can change?

Myth: Performance management always focuses on the individual.

Fact: Innovative performance management systems include groups or teams by creating goals that require
staff to collaborate in order to achieve results. Team goals help individuals think more holistically about the
needs of the organization and its customers. While team goals can be complex and difficult to achieve, they
have the potential to bring much value to an organization.

Myth: Performance management is primarily an administrative task.

Fact: There's a portion of performance management that is administrative: logging performance review
information into an online tracking system and completing performance review documentation. However, the
best companies take performance management way beyond administration. At its most effective,
performance management is an ongoing, dynamic interplay between performers, managers, and goals.
Performers work to clarify goals, create action plans, and execute. Managers help by letting performers know
when they are off track. Goals evolve in response to changing environmental conditions, causing managers
and performers to adjust. All three-performers, managers, and goals-evolve throughout the year as people
learn what it really takes to achieve corporate objectives.

Myth: High performers are best left alone to achieve their goals without interference.
Fact: High performers need attention. All too often, managers spend their time and energy on their lowest
performers. This can be a mistake. High performers are most likely to become stars-and those most likely to
be wooed away by competitors. To keep high performers challenged and happy, good managers spend time
talking with high performers about their career goals and how the company can help achieve them. They also
help high performers grow through stretch goals, mentoring assignments for junior staff, and special projects.

Myth: The best thing to do with low performers is to show them the door.

Fact: While there certainly can be a misfit between performers and organizations, it's a mistake to jump to the
conclusion that low performers no longer fit in the organization. Before making that decision, consider these
questions:

 Are the performance problems recent or part of ongoing patterns? If the problems are recent, there
may be logical reasons for problems that can be resolved. For example, the performers may lack
clarity about expectations. Perhaps they shifted to new positions that don't capitalize on the
performers' strengths. Or there could be process bottlenecks getting in the way of success. Taking
the time to investigate the problems can help save the time, energy, and cost of releasing employees
that could become a high performer.
 Are the performers willing to learn and change? If the performers are willing to hear feedback and
improve, chances are that it is worth helping them. Positive attitudes and willingness to learn are
invaluable. If low performers have these qualities, they probably can overcome their performance
issues.

Myth: Performance management is easy.

Fact: Performance management is a skill that takes time to build and refine. There are many resources out
there to help build performance management skills: books, training courses, association events, and company
advisors such as HR staff and senior managers.