Professional Documents
Culture Documents
Performance
enablement
Strategic insights from Global HR Experts
PREFACE Catch the new wave: Performance enablement
Combined with curated best practices from world-leading companies, this playbook will
help you learn from people who ‘have been there, done that’ and give you actionable
ideas to build your own competitive talent advantage.
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TABLE OF CONTENT Catch the new wave: Performance enablement
CHAPTER 1
Why change? Transitioning from the
‘old’ way to the ‘new’ way
CHAPTER 2
How leading companies are changing
their employee performance practice
CHAPTER 3
Specific challenges for SMBs
in developing economies
CHAPTER 4
How to revamp performance
from management to enablement - Ft. HR Experts
1 The Good, Bad, and the Ugly of traditional 6 M anagers have to play a crucial role in bringing
performance management the transformation.
3 How learning is changing @The Workplace
8 Technology is Millennials’ bread and butter.
An evolution from classroom to social
9 HRIS system - the tool you need to boost
4 Internal team training results in better performance enablement
performance
CHAPTER 5
Become a more empathetic organization
2
Catch the new wave: Performance enablement
In order to build
Julie Bevacqua
President, Co-Founder of Rise People
3
CHAPTER 1
Why change?
4
CHAPTER 1 Why change?
Transitioning from the ”old” way to the ”new” way
It departs from the old way of “Performance Management Systems” (or PMS) - a
practice that takes root in the industrial age where maximizing manufacturing output
was the name of the game.
But how can the new practice of Performance Enablement help your organization
compete more effectively in your markets? How can it help you become a talent
magnet? More importantly, how can HR professionals make the transition from the
‘old way’ of PMS to the ‘new way’ of Performance Enablement?
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CHAPTER 2 How leading companies are changing their
To gain more insights and inspiration on how to take the leap, here are
4 case studies from 4 global giants who blazed the trail for us to
follow.
ding!
7
CHAPTER 2 How leading companies are changing their
Continuous feedback
8
CHAPTER 2 How leading companies are changing their
GE - General Electric
Continuous feedback
General Electric has been in business since 1976, and so has its performance
review system. They made stack ranking famous in the '80s and '90s. When they
announced the transformation from employee Performance Management System
(PMS) to Performance Enablement, it shook the world!
With over 30,000 employees, it wasn’t easy for GE to make this transition, but
they did it anyway. GE's new approach introduced new skills and methods that
made them a more robust, agile, and customer-focused organization.
The shift from “order and control” to “empower and encourage” was made possible
by developing a customized app. Dubbed PD@GE (Performance Development at
GE), the app enabled employees to exchange notes and documents, but most
importantly, to continuously share feedback to each other and enable
conversations around personal development.
GE took performance enablement even one step further by rolling out a feature
called “touchpoints” - that ensured that employees and managers indeed had
conversations about what to improve and took the feedback seriously. By
shortening the feedback and improvement loops, PD@GE has dramatically
improved not only employee satisfaction but also business results.
While not every company has the luxury to custom-build its own App, GE clearly
demonstrated that with the right technology and management philosophy, it is
possible to thrive while developing employees continuously.
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CHAPTER 2 How leading companies are changing their
10
CHAPTER 2 How leading companies are changing their
Netflix
Honest reviews lead the way!
Over the years, Netflix has grown exponentially. So did its issues with performance
management.
With Patty McCord as Chief Talent Officer, Netflix decided to ditch the annual
performance review practice and replace it with real-time 360-performance reviews.
The practice was simple: write honest feedback to anyone, from interns to chief
executives in the company, about what to start, stop and continue doing.
To avoid fear of being ‘too honest’ in a review or feedback, Netflix made the wise
decision to decouple compensation reviews from performance reviews.
Indeed, in the old days, performance reviews were an input to compensation reviews.
Therefore, this naturally disincentivized employees to be honest and direct in their
feedback to peers or even managers.
Now, Netflix employees are free to share whatever feedback they think is relevant and
suitable without fears of punishment, which promotes a culture of transparency and
constant improvement.
Netflix has another employee retention practice called the - “Keeper Test,” which
forces managers to ask themselves the tough question “Which of my employees - if
they told me they were leaving in 2 months - would I fight hard to keep?” (Employees
are invited to do the same in reverse, asking their managers “If I were to leave in 2
months, how hard would you fight to keep me?”).
While controversial, this helped Netflix maintain a voluntary attrition rate of only
3-4% and an involuntary departure rate of 8% in a hyper competitive talent market.
To learn even more about Netflix performance review, read our full case study.
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CHAPTER 2 How leading companies are changing their
12
CHAPTER 2 How leading companies are changing their
IBM
The 5-step checkpoint
IBM performance review practices were mostly inspired from General Electric.
Although IBM didn’t call it ‘stack-ranking’ (but PBC for Personal Business
Commitments), it worked in a similar way.
At the beginning of the year, managers would set goals for their employees which
would then be assessed 12 months later. This made sense in a world where things
and competition moved slowly. But in a VUCA (Volatile, Uncertain, Complex,
Ambiguous) world, the model fell apart.
Nowadays, employees routinely change goals during a quarter and work on ad-
hoc projects that were totally unplanned in the beginning of the year. To keep up
with this new reality, IBM had to ditch the old way and adapt the new way:
Performance Enablement.
Evaluation
74 %
accuracy index 55 %
Overall my value was evaluated 73 %
accurately in the new
employee evaluation system 58 %
I am evaluated
82 %
accurately in terms of
my performance 58 %
I am evaluated
74 %
accurately in terms of
my expertise 56 %
I am evaluatedaccurately in 66 %
terms of
my potential 49 %
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CHAPTER 2 How leading companies are changing their
Evaluation
56 %
usefullness index 48 %
The evaluation hashelped me 58 %
recognize my strengths and
opportunities for growth 47 %
Now I have a clearer 59 %
understanding of
my manager’s expectations 54 %
Now I have a clearer 51 %
understanding of how to
improve my performance 44 %
Evaluation discussion
56 %
satisfaction index 48 %
My manager clearly explained 81 %
the evaluation method and
my evaluation results 61 %
Now I have a clearer 74 %
understanding of
my manager’s expectations 56 %
Now I have a clearer 60 %
understanding of how to
improve my performance 41 %
Now I have a clearer 51 %
understanding of how to
improve my performance 41 %
New evaluation
Note:
The chart shows the percentages of employees who agree or strongly agree with
the statements.
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CHAPTER 2 How leading companies are changing their
Performance = Compensation
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CHAPTER 2 Why leading companies are drifting apart from
annual performance reviews
Facebook
Performance=Compensation
While keeping their consumers happy, Facebook is doing the same for its
employees. Facebook is setting benchmarks with its performance
review system that has performance assessment and 360-degree
review at the core. Loyal to their data-driven approach, Facebook has put
in place a calibration system and rating curves to determine the top-
performing employees and compensate them accordingly.
Facebook also uses 360-reviews to capture reviews from only five peers and
provide diversity in the feedback given. This two-week review process focuses
on two main questions.
What was this person’s impact this year?
How can they increase this impact?
Following this, the calibration period starts where the manager analyses all of
the peer reviews and assessments to ‘calibrate’ for fairness. The manager
also creates a "Performance Assessment" of the previous six months to
evaluate if it is time for promoting the employee.
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CHAPTER 3
Specific challenges
for SMBs
in developing economies
17
CHAPTER 3 Specific challenges for SMBs
in developing economies
In fact, being an SMB may have an edge: there is less legacy practice or
technology to change. But SMBs are facing another set of issues that
large corporations may not have to deal with.
86 % improvement
in Employee Experience quality1 70 % increase
new hire productivity2
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CHAPTER 3 Specific challenges for SMBs
in developing economies
82 % higher retention
among new hires
200 K$ yearly savings
reducing manual errors & omissions3
But picking the right HR technology comes with having a solid team of
HR professionals - another area SMBs struggle with compared to larger
competitors.
The main culprit? Their employee data and processes are not fully
digitized nor centralized, which results in a highly fragmented and
inconsistent experience.
in developing economies
Hire young and tech-savvy HR professionals who are familiar with the
use of technology - from engagement apps to communication tools
like Slack, integration tools like Zapier or modern HR platforms like
Grove HR.
Here again, HR Technology built for the modern workforce can make a
big difference when it comes to supporting middle managers in enabling
employee performance.
1 Topia Employee Experience research, “Adapt or lose the war for talent”
2 Glassdoor and Brandon Hall Group Research, “The true cost of a bad hire”
3 Grove HR ROI calculator for SMB
4 Mercer Global Talents 2020 report
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Experts contribute in this section
CHAPTER 4
How to revamp
Performance
from management
to enablement
Ft. HR Experts
21
CHAPTER 4 How to revamp performance
from management to enablement
Changes are inevitable. How well one adapts to them plays a vital role
in the company's success.
Good While some argue that we must abolish the performance review
system, it has been seen that performance review can prove to be
helpful if done precisely.
Bad Many performance reviews focus on making some people happy—at the
expense of others.
GE, the pioneer of performance evaluations and imposed rankings, has declared
that the procedure will be phased out due to its negative impact on productivity.
Author
69 % of companies
Say that they still use annual or biannual
performance assessments
— ClearCompany • talent management platform provider
While annual performance reviews may serve the goal for many companies,
it's not a growth hacking technique. On the other hand, employers and
employees can benefit from frequent performance feedback.
22 % higher productivity
Engaged employees report higher productivity
while the same organizations also see lower
turnover and lesser safety incidents.
— Jim Harter • Chief Scientist at Gallup Research
Author
Adrian Tan Global HR Tech Influencer
24
CHAPTER 4 Revamping performance
—
—Adrian
AdrianTan
monthly mini-sessions that designate a specific Tan
gLOBAL HR INFLUENCER
gLOBAL HR INFLUENCER
to employees.
The Result
% of employees
78 Feeling that their boss is open to feedback from them
approaches.
Author
25
Adrian Tan Global HR Tech Influencer
CHAPTER 4 How to revamp performance
from management to enablement
AI, IoT, NLP, Coding, etc., can now be learned through Communities (of learning),
Just-In-Time (JIT) Learning: JIT allows employees to solve issues and overcome
hurdles in real-time
employees to learn more quickly than ever before. This enables employees to
overcome chaotic and complex conditions rapidly. It also promotes discussion and
a solutions-based culture.
Author
Syukri Azman
Experiential Learning Designer
& Ian Choo Regional L&D Architect 26
CHAPTER 4 How to revamp performance
from management to enablement
E ngagement rises: Social learning encourages more dialogue & sharing of ideas
in a safe space. This builds relationships, trust, empathy, and psychological/
mental safety amongst the teams.
—
—Ian
IanChoo
Choo
On top of all the education, it can Regional
RegionalL&D
L&DArchitect
Architect
adopted correctly.
Author
Syukri Azman
Experiential Learning Designer
& Ian Choo Regional L&D Architect
27
CHAPTER 4 How to revamp performance
from management to enablement
When training is done internally, you have teachers who understand the
context of your organization and your employees. Specifics matter. This
has pushed many HR’s to take matters into their own hands and create
their own training resources.
Internal team training saves time for the company while also increasing
employee engagement. However, there is one caveat: Before
implementing anything company-wide, it is critical to conduct small-
group tests first. This will ensure that the outcomes are due to the
training.
Author
Vivek Iyyani Millennial Specialist
28
CHAPTER 4 Revamping performance
from management to enablement
29
CHAPTER 4 How to revamp performance
from management to enablement
During the internal career fair, employees get to walk around and admire
the different booths designed and learn more about the open positions
they can apply for. If employees are interested in transferring internally,
all they have to do is inform their boss.
Author
More than
78 % of employees
expect their managers to discuss career
However
37 % of employees
agree that managers actually participate.
—
—Vivek
VivekIyyani
Iyyani
Millennial
MillennialSpecialist
Specialist
their ideas onto the workforce, leaders and managers must refocus their
The more responsibilities they have, the more engaged they are.
Author
Vivek Iyyani 31
Millennial Specialist
CHAPTER 4 How to revamp performance
from management to enablement
Leaders and Managers who played with their team’s strength reported a
9 - 15 % increase in
engaged employees
— The Deloitte • Millennial Poll
Author
Vivek Iyyani Millennial Specialist 32
CHAPTER 4 How to revamp performance
from management to enablement
With older generations working past the age of retirement and the
arrival of Gen Z, for the first time in history, we see up to five
generations working alongside each other which makes achieving the
aforesaid a challenge.
productive workplace.
of employees
and
As a result,
the young ones because they don’t realize how strongly the behaviors or
r ch
a ele F c di
or a Author of R
eframin gG enerational Stereotypes
35
CHAPTER 4 How to revamp performance
Still only
Say leading the Are ready to
%
70 multigenerational workforce
10
%
address this trend.
continue to persist. The younger generations will only see their older
it out, explore it, understand it and get comfortable with it, they can
—
—rachele
racheleForcadi
Forcadi
% Say they want to find a
99
Leading Expert on Generational Diversity
Leading Expert on Generational Diversity
finally lay the foundation for future business success by unleashing the
they can genuinely help their employees become aware of the forces
So, if you wish to retain and make your company a go-to hub for
Millenials, adopting a technology-driven company culture is your way to
go! Make their lingo your company’s new motto.
—
—Vivek
VivekIyyani
Iyyani
Millennial
MillennialSpecialist
Specialist
—
—Adrian
AdrianTan
Tan
gLOBALHR
gLOBAL HRINFLUENCER
INFLUENCER
Author
Vivek Iyyani
Millennial Specialist
& Adrian Tan Global HR Tech Influencer 38
CHAPTER 4 How to revamp performance
from management to enablement
Not too long ago, only the big players had adequate resources to acquire
a sophisticated HR integrated system. A system that consists of the HR
core workforce administration module integrated with learning,
performance management, onboarding, employee engagement, etc.
The flexible work arrangement once reserved only for the larger
enterprises will now have to be adopted by SMEs.
Author
Raymund Chua Senior Director of OSI Systems, Inc
39
How to revamp performance
CHAPTER 4
from management to enablement
Our HR digital solutions allow OSI Systems employees to work virtually from
SMEs must now discover economical, practical, and easy HR tools to keep
The good news is that all kinds of HR benefits, starting from data management
Author
40
Raymund Chua Senior Director of OSI Systems, Inc
CHAPTER 5
organization
41
Be human to attract humans
CHAPTER 5
employees to succeed.
Most companies have always understood that talented people are the
now time to call out the elephant in the room: employees’ development
should be at the heart of your people strategy, but your HR teams cannot
While they can own the strategy, technology and provide resources, it is
listens to employees are the ones the most likely to get and stay ahead in
This should not come as a surprise: when employees feel they are being
taken care of, they are more likely to care about the company, go the extra
Managers can run their own team performance reviews - including self,
management, or peer reviews - using intelligently predefined questions
and templates. HR teams provide strategic input to managers as to how
to better coach employees and help them become better coaches.
43
Final thoughts Catch the new wave: Performance enablement
Final thoughts
This performance playbook aims to uncover insights and
recommendations on how the modern workforce transforms the
workplace and how companies can successfully adapt.
We hope you found this helpful and that it inspired you to shift
from performance management to Performance Enablement.
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About our contributors
Integration Council.
next generation.
— In his free time, Vivek works with youths and helps them to identify
—Vivek
VivekIyyani
Iyyani
Millennial
MillennialSpecialist
Specialist their Ikigai so that they can have a purposeful and passionate
at the center of all that he does and has worked in both the public
—
—Ian
IanChoo
Choo
Regional
RegionalL&D
L&DArchitect
Architect
He loves spending his free time with his lovely family, reading up
Employer Branding.
Agencies.