Dr. David Rock, Director, NeuroLeadership Institute

1. Reinvent Performance Management Dr. David Rock, Director, NeuroLeadership Institute NeuroLeadership.Org NeuroLeadership.Com

2. NeuroLeadership Institute Certificate, Post-Graduate & Masters Programs Annual summit Journal Informing HR, OD, L&D, Change Management and related communities

3. NLI Research & Education Organization 3. Applied Studies 2. Summary Frameworks • LaboratoryStudies Davis & Rock, 2012 Davis & Rock, 2012

4. Why managing performance matters Making money is getting harder Growing talent is more urgent than ever Growing talent is being pushed down to managers There’s more change than ever New generations like to learn and expect feedback Performance doesn’t necessarily improve without focus

5. How are we doing? A 1996 study showed that feedback does nothing or makes things worse 59% of the time and improves performance only 41% of the time ‘Turn the 360 around’ (NeuroLeadership Journal, 2010)

6. Performance management gets a review “Reflects employee contributions”23% (CEB) “No changes needed”14% (CEB) “Significant contribution”8% (I4CP) “Pleased” 19.8% (CB)

7. Performance management gets a review 86% Not happy Combined data from CEB, I4CP and CB

8. Performance management gets a review 67% with highest performance scores were not the top performers. CEB 2012

9. What employees say

10. And then what managers say…

11. How we get performance management wrong Not respecting how personal feedback is

12. Feedback is very personal Away Threat Toward Reward Status Certainty Autonomy Relatedness Fairness Rock (2008)

13. How we get performance management wrong Not respecting how personal feedback is ‘Branding’ of performance management creates threat

14. Branding is part of the problem ‘Annual Performance Review’ ‘Performance Evaluations’ ‘Annual Reviews’

15. How we get performance management wrong Not respecting how personal feedback is ‘Branding’ of performance management creates threat Extrinsic rewards can be a big trap

16. The trap of extrinsic rewards Extrinsic rewards require novelty, beating expectations or increases in order to be actually rewarding.

17. Strongest intrinsic rewards are social Away Threat Toward Reward Status Certainty Autonomy Relatedness Fairness Rock (2008)

18. How we get performance management wrong Not respecting how personal feedback is ‘Branding’ of performance management creates threat Extrinsic rewards can be a big trap Use 360’s for development not reviews

19. Reserve 360’s for development 360’s can impact all 5 domains of SCARF negatively. Link them to growth, not underlying threat.

20. How we get performance management wrong Not respecting how personal feedback is ‘Branding’ of performance management creates threat Extrinsic rewards can be a big trap Use 360’s for development not reviews Too much focus on the process instead of the conversation

21. Focus on the conversations Tweaking the system is easier than the hard work of training managers to have effective conversations. Managers accurately predict it is better not to give feedback.

22. How we get performance management wrong Not respecting how personal feedback is ‘Branding’ of performance management creates threat Extrinsic rewards can be a big trap Use 360’s for development not reviews Too much focus on the process instead of the conversation Am emphasis on the annual event not everyday development

23. Rethink performance management Build the business case for change Identify three clear objectives for the change Define the new mindset Rethink what to measure – linked to the objectives Rethink how to measure – time scale, continuum, method Make financial rewards less defined by the cycle review process

24. Beliefs about potential to change Nature vs. Nurture Sir Francis Galton (1874) Neuroplasticity Bach-y-rita (1969) Leaders are born or made? Hoyt, Burnette, & Innella (2012) We grow more when we believe in change. Will Power Job, Dweck, & Walton (2010) Self-efficacy Bandura (1977) Learned pessimism/helplessness Seligman (1990) Free Will Vohs (2008)

25. Philosophy Common unstated belief: “Talent is fixed, and we need to assess it.”

26. Fixed mindset • ‘Born smart’ • We can’t change much • Effort doesn’t help • Feedback is dangerous • Stretch goals are bad • Other people’s success is a problem

27. Growth mindset • ‘Born to learn’ • We can change • Effort is central • Feedback is helpful • Stretch goals are good • Other’s success is an opportunity to learn

28. We are easily primed Fixed Mindset In his talk at the American Psychological Association's annual convention held at Washington D.C. in August, Dr. George Medin argued that 'in most of us, by the age of ten, our character has set like plaster and will never soften again.' He reported numerous large longitudinal studies which show that people 'age and develop, but they do so on the foundation of enduring dispositions.' Chiu, Hwong, & Dweck (1997)

29. Fixed mindset : learn less from mistakes Negative Feedback: Individuals with a “fixed” mindset show an enhanced neural response to negative feedback on making errors. They also show less memory-related neural responses given information about correcting future mistakes. Positive Feedback: Mangels et al. (2006), SCAN

30. Growth mindset : learn from mistakes Individuals with a “growth” mindset show an enhanced neural response reflecting greater attention to making mistakes, relative to those with a “fixed” mindset. They also performed more accurately after making mistakes. Moser et al. (2011), Psych Science

31. How are we priming people today? • Categorizing people into tiers • Limited categories, limited ability to show growth • Creating ‘high potential’ talent pools • Giving unhelpful positive feedback • General philosophy focuses on assessment

32. Mindset shift

33. Rethink performance management • Rebrand performance management and cycle elements • Identify the number of types of conversations • Process map the list of dialogues as ‘quality conversations’ • Build simple learning aids • Design learning solutions that will embed new habits • Develop your technology solution

34. Rethink performance management Habit Action Insight Impasse

35. Insights and questions What would you like to understand further?

36. Further resources • Turn the 360 around. NeuroLeadership Journal 2010 • The neuroscience of performance management – June 23, NYC • Quiet Leadership, Collins 2006 • Your Brain at Work, HarperBusiness 2009 • NeuroLeadership Summits in London, DC. • NeuroLeadership Education programs

37. How to learn more • NeuroLeadership.org • Education up to Masters • Summits & Recordings • Journals • NeuroLeadership.com • Leadership development programs • Brain-Based Coach Certification Programs (ICF Accredited)

38. Connecting Books: Your Brain at Work Quiet Leadership Coaching with the Brain in Mind Twitter: davidrock101 Contact: David@neuroleadership.org