Performance Management System Development and Implementation

Edwin Ebreo
ExeQserve Corporation 2108, 88 Corporate Center, Sedeno St. Makati City 8933199 * ecebreo@exeQserve.com 9/26/2010


GOALS: a. Develop a comprehensive Performance Management System aimed at improving employee performance; b. Develop a more objective system for rating performance; c. Establish a rewards system that is focused on rewarding exceptional results and encourage continuous improvement; d. Apply a change management strategy to ensure integration of the new performance management system into COMPANY’s organizational culture; and e. Equip employees with the necessary tools to plan, monitor, provide feedback, develop capacity, evaluate and reward performance. RATIONALE: In order for any performance management system to be used effectively, members of the organization need to have a thorough understanding of how performance management systems are designed to align employee performance with the organization’s goals. Managers must learn how to effectively use the performance management tools for setting clear goals, monitoring performance, providing feedback, developing capacity to perform, appraising performance as objectively as possible and rewarding good performance. We underlined good performance because it is critical for employees to know what is being recognized. When rewards do not clearly point to the good performance, employees become confused about what defines it. ExeQserve Corporation Consultants believe that the measure of a performance management system’s effectiveness is general improvement in employees’ performance. If the system can’t do this, it is not worth the time and money invested in it. For performance improvement to take place however, users must use the system and tools according to their purpose. This can only happen if the users accept the role they play in the performance management scheme and know exactly how to use the available tools for performance management. These we believe are the causes and effects that we must address if we are to implement a useful performance management system. We propose to make some considerable revisions in COMPANY’s existing system to achieve this proposal’s objectives. Our major strategy includes: 1. Getting key employees involved in the revision process; 2. Training all involved on the concepts, development and use of performance management tools; and


3. Follow a change management model to ensure institutionalization of the desired changes and the integration of performance management in COMPANY’s culture. ExeQserve consultants have the experience and tools to carry out all attendant actions related to aforementioned objectives.

PERFORMANCE MANAGEMENT SYSTEM COMPONENTS We propose to establish a comprehensive performance management system that has the following components: 1. Planning – Setting performance goals and behavioral expectations a. Key result areas b. Key performance indicators c. Calibrated performance standards d. Clearer behavioral indicators and standard for each competency 2. Monitoring – Creating mechanisms for regular monitoring of performance and giving feedback a. Monitoring system b. Feedback mechanism 3. Developing - Clarifying managers responsibilities for developing capacity for performance through coaching and training a. Performance discussion and coaching tactics b. Maximizing effect of training on performance 4. Appraising – Establishing tools for auto-generating key performance indicators for performance evaluation and equipping managers to handle performance discussions more effectively. a. Auto generating scores for key performance indicators b. Techniques for more objective appraisal of competencies c. Performance Appraisal discussion techniques 5. Rewarding - Establish policy for more effective use of rewards to reinforce positive performance. a. Migrate to a new rewards system that reinforces and encourages consistent positive performance.


CHANGE MANAGEMENT COMPONENTS We believe that for any change to be successful, it has to be managed well. We are using John Kotter’s 8step process for leading change as a way of ensuring that all relevant issues and concerns are addressed as we pave the way for the new performance management system. This change management framework shall guide the progress of the committee as we introduce changes and fine-tune tools for performance management.
Schedule of Activities

PROJECT STAGE Stage 1: Project Briefing

CHANGE MANAGEMENT 1. Create urgency

ACTIVITY Orientation Scoping

Stage 2: PMS Committee and Raters’ Training

2. Create guiding coalition

Stage 3: Developing the new performance management system policy

3. Create a vision for change

Training on developing and implementing employee performance management system Crafting the performance management system policy

APPROXIMATE RESULT/OUTPUT TIMELINE 2 hours Proposed work plan with milestones and deliverables 2 training days PMS Development committee Finalized work plan with deliverables and milestones 2 weeks PMS Draft with Following components: 1. General policy 2. Guidelines 3. Appraisal






RESULT/OUTPUT tools 4. Rewards system Finalized policy (Included 1 day training for all raters) Comprehensive Performance goals and competency matrix

Stage 4: Communicating the new PMS draft for fine tuning

Stage 5 & 6:  Development of performance goals and competencies matrix  Establish monitoring system per KPI Stage 7: 7. Consolidate Performance and build on Appraisal dry run gains

4. Communicate envisioned change 5. Empower the people 6. Create quick wins

• • • •

Presentation of draft policy Feedback solicitation Finalization Submission of departmental and individual metrics Launching of performance monitoring matrix

1 week

1 week

Pilot the toll to one(1) unit or department Appraisal role playing workshop

1 week

Clear expectations on performance appraisal events Mastery o the performance appraisal activities

Stage 8: Formal Implementation

8. Institutionalize • the change

Formal launch of the new performance management system Celebration

1 day


2-DAY PERFORMANCE MANAGEMENT TRAINING DESIGN Some people mistakenly assume that performance management is concerned only with following regulatory requirements to appraise and rate performance. Actually appraising performance is only one part of the overall process (and perhaps the least important part.) All organizations face the problem of directing the energies of their staff to the task of achieving organizational goals and objectives. In doing so, organizations need to devise means to influence and channel the behaviors of their employees so as to optimize their contributions. Performance management constitutes one of the major management tools employed in this process. This is based on the premise that an individual's performance in a job is improved by having definite goals, feedback about their performance and complemented by an appropriate reward system. Considering the profound objectives of performance management, it is elementary that managers and supervisors learn to employ the tools within the system. The goal of this course is to give the participants a clear view of what performance management is all about and how to utilize it in achieving organizational objectives. At the end of this workshop, the participants should be able to go full circle in implementing a complete performance management system that includes the following activities:      Setting performance goals Monitoring performance Developing employees’ capacity and capability to perform through training and coaching Objectively appraising employees’ performance Giving fair rewards and recognition for good performance.

COURSE OBJECTIVES At the end of the session, the participants are expected to be able to:      Define Performance Management; Describe the requirements for the successful implementation of a performance management system. Describe the roles managers and employees play in the implementation of a performance management system. Understand the components of Performance Management and how each relates to their managerial or supervisory tasks; Go through the steps towards successful employee performance management.



Process Objectives
Day 1  Define Performance Management  Describe the importance of managing performance in contributing to the achievement of organizational goals. • Describe the requirements for the successful implementation of a performance management system. • Enumerate Activities involved in Planning Performance

30 mins 1 hour

Opening Activities Overview of Performance Management  Introduction of the Performance Management Concept  Breaking traditional assumptions about performance  The Roles of Organizational Leaders as Performance Managers

2 hours

Designing the System • Designing the Performance Management Policy • Change management and enablement of the people involved.

2 hours

Enumerate the activities involved in monitoring performance Identify ways to help employees improve their performance

2 hours

2 hours

Planning Performance • Aligning Individual and Departmental Objectives with Organizational Objectives • KRA, KPI and KPOs • Clarifying behavioral expectations • Seeking Understanding, Acceptance and Commitment Performance Monitoring • Measuring Performance based on standard • Setting up a Performance Monitoring System • Identifying Performance Gaps • · Setting up a performance feedback system Developing the Employees Capacity to Perform • Various Activities Involved in Addressing Performance Gaps • Training as an important tool for improving performance • · Leaders’ role in ensuring success of training • • • • Coaching as an effective tool for improving performance Understanding the Coaching Mindset Establishing an environment that is ideal for coaching Offering constructive feedback

Day 2 Identify ways to help employees improve their performance

3 hours


Go through the steps of appraising performance Pursue continuous performance improvement through the performance Use rewards and recognition to continuously motivate employees to perform

3 hours

Appraising Performance • Performance Appraisal – Doing it right • Guidelines for conducting performance appraisal interviews • Setting Developmental Action plan to address performance gaps Rewarding and Recognizing Good Performance • Impact of Rewards and Recognition • Establishing a rewards and recognition program • Individual Vs. Team-based reward • · Various Tactics for recognizing good performance Re-entry action planning.

1 hour

Set Action plans to apply learning in the workplace

1 hour

PERFORMANCE MANAGEMENT POLICY, GUIDELINES AND TOOLS FEATURES 1. Policy a. Policy Statement b. Scope c. Responsibilities i. For administration ii. Implementation iii. Monitoring iv. Review Etc. d. Framework 2. Guidelines a. Setting performance goals i. Key result areas ii. Key performance indicators iii. Standards iv. Calibrating targets for fair evaluation b. Monitoring performance i. Mechanics ii. Feedback c. Developing capacity to perform i. Linkage between PMS and training ii. Coaching to improve performance d. Evaluating performance i. Evaluating results ii. Auto-generated scores iii. Evaluating competencies e. Rewarding performance


i. Performance bonus ii. Merit increase iii. Promotion 3. Tools a. b. c. d. Performance Score Card Performance Appraisal form Coaching guide Employee Developmental plan template


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