Embracing New Trends in Performance Management

1. NEW TRENDS IN PERFORMANCE MANAGEMENT How can we embrace it? WINNER of Microsoft Code For Honor 2014 Large Enterprise Software Best Human Capital / Talent Management Solution

2. House Keeping Instructions All phones are set to mute. If you have any questions, please type them in the chat window located beside the presentation panel. We have already received several questions from the registrants, which will be answered by the speakers during Q&A session. We will continue to collect more questions during the session as we receive and will try to answer them during today's session. In case if you do not receive answers to your questions today, you will certainly receive answers via email shortly. Thank you for your participation and enjoy the session. Synergita.com

3. Speaker Profiles Key Note Speaker Speaker • KereeBrannen • People Operations Specialist • BusinesSuites KavithaKalyanasundaram Performance Management Specialist Synergita Synergita.com

4. The Agenda • Latest happenings in • performance management • Quick Recap and challenges • of the current performance • management process • How some companies are • embracing the new performance management practices • Keree from BusinesSuites • will present on their • Continuous feedback culture • What are some easy • practices that we can follow? Synergita.com

5. Latest News on Performance Management …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Adobe abolishes Annual Performance Review Source: Business Insider How Deloitte is Redesigning Performance Management Source: HBR Microsoft axes its controversial employee ranking system Source: theverge.com In a Big Move, Accenture will get rid of Annual Performance Reviews and Rankings Source: washingtonpost.com Synergita.com

6. According to Corporate Executive Board (CEB) Survey Of Fortune 1,000 companies According to Corporate Executive Board (CEB) survey of Fortune 1,000 companies “The number of employers that are either ditching the numerical ranking of employees or tossing out the entire performance review process has grown from 4 percent in 2012 to 12 percent in 2014” Synergita.com

7. Survey 1 Q1 YES NO PARTLY HAPPY Are you happy with your current performance management process? Synergita.com

8. Traditional Performance Management Process Goals are set at the beginning Interim /Annual Performance Reviews Employees are Categorized into Grades Salary Increments Appraisal Meeting Normalization / Bell Curve Synergita.com

9. Problem With the Current Performance Management Process… In a survey that was conducted by Deloitte, more than half the executives questioned (58%) believe that their current performance management approach drives neither employee engagement nor high performance Recency Bias in Rating Surprise element between managers and employees. Ranking employees and fitting them in predefined bell curve is a de-motivator. Too much paper work and time gets wasted on filling forms, normalizing etc., with no real “Performance” benefits . Performance reviews have become more like an annual ritual.. A check mark that it has been completed. Performance cannot be driven by just giving feedback once a year. Synergita.com

10. New Performance Management Practices – A Quick Overview Performance Management is not abolished – but organizations are embracing newer and better ways of managing performance. On analysis of the changes made by these companies, the following points emerge: What is abolished? Forced / Stacked Ranking of employees into a bell curve Annual Performance Reviews Ratings Why are people moving away from bell curve? Normal distribution equally distributes people above and below average And a small number of people fall at the extremes - two standard deviations. Synergita.com

11. New Performance Management Practices – A Quick Overview (Article written by Bersin, Source Forbes) To avoid grade inflation, companies force managers to have a certain % at the top, certain % at the bottom and a large % at the middle. For instance, top 10% should be high performers, bottom 10% should be low performers. So Even if there aren’t any low performers, people are pushed into it! Synergita.com

12. Survey 2 Q2 YES NO Does your organization force your employees performance into a bell curve ? Synergita.com

13. New Performance Management Practices – A Quick Overview According to Tom Peters, Author of the book “In Search of Excellence” Dynamic Employee Evaluation is the need of the hour. New practices that are brought in: Timely, Constructive feedback and meaningful discussions. Agile is the keyword. Focus on Employee Development. In knowledge related jobs, skills, attitude, customer empathy, ability to innovate and work in teams matter more. So focus should be on constantly developing these capabilities Synergita.com

14. New Performance Management Practices A peek into the performance review of companies like Deloitte and Adobe’s . There are no ratings or ranking. Adobe’s and Deloitte have introduced regular “check-ins”. These are brief conversations that allow leaders to set clear expectations, review priorities, give feedback both positive and constructive on recent work, and provide course correction and coaching. IN Deloitte: At the end of project/ or ever quarter, team leader is asked to respond to four future focused questions about each team member. Sample questions: Given what I know of this person’s performance, I would always want him or her on my team . This person is ready for promotion today. Synergita.com

15. Continuous Feedback Statistics at Radisson Blu GRT Radisson Blu GRT is a five star hotel in Chennai. They have a very efficient continuous performance culture and rewards mechanism for their employees. Employees can give Bravo award to other employees. Each reward has points and once they have points accumulated they can redeemthem. Total number of awards provided in the past 12 months: 2850 Synergita.com

16. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Continuous Conversations... …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

17. Continuous Feedback at BusinesSuites Headquartered in Austin Texas, BusinesSuites provides full-service executive office suites and virtual office services for entrepreneurs, professionals and Fortune 1000 companies. With 29 offices that span the country, BusinesSuites is recognized as a leader in the workspace-as-a-service industry, offering clients exceptional service in a professional, productive work environment.. They have a continuous feedback culture for managing employee performance. Keree, People Operations Specialist, is here to present how they do it and how it benefits them. About BusinesSuites Synergita.com

18. Moving from a traditional to an ongoing conversation. • Engaging in • Continuous Feedback

19. 2015 • 01 • 03 • 02 • 04 • 2013 • 2014 • 2012 • $802,068 Cost of Turnover • $2,085,378 • $1,978,436 • $1,497,195 • Calculation assumes 30 days to fill position, 60 days ramp up time, 10% recruitment cost and team member produces 5 x salary.

20. What We Learned? • Lack of Engagement • Turnover is Costly • Current System Flawed • Turnover costs include more than job posting fees and recruiter commissions. • Opportunity to improve our methods. An integrated approach • is necessary • Engagement drives every facet of productivity and reduces turnover.

21. If a manager primarily focuses on strengths the team member’s chances of being actively disengaged go down to 1 in 100 or 1% If a manager primarily ignores a team member the team member’s chances of being actively disengaged are 4 in 10 or 40%. The Value of Conversations If a manager primarily focuses on weaknesses the team member’s chances of being actively disengaged are about 2 in 10 or 22% 1% 22% 40% Focusing on strengths reduces disengagement

22. Social Platform. Exciting option for engaging team members in new ways, transform workplace and build positive co-worker dynamics. Raise employee engagement from an “HR program” to a core business strategy. Give managers a specific yet simple practice they can adopt and hold them accountable. Continuous Feedback. Provide a robust tool that is easy to use and facilitates transparent lines of communications. Top Priorities Focus on team members and offer them robust, exciting tools to engage with the entire company. 2 3 1 Flexible system with opportunity for real conversations IMPLEMENT A BETTER SYSTEM INCREASE ENGAGEMENT INCREASE RETENTION REDUCE TURNOVER

23. z Why use a Social Media Platform? • Collaboration and visibility-T eam members can work together, seek and give advice, as well as have a sense of what others are working on. • Sales improvements- AForbes study shows engaging team members through social platforms can help bolster profits. • Continuous Feedback - Amanager’s continuous feedback to their team holds the rhythm of the work system. • Team member recognition - Everyone can praise team members for their contributions, positively reinforcing their efforts and motivating team members to give full energy to their projects. • Motivational work environment • Continuous Feedback • Collboration and Visibility • Sales Improvements • Social Recognition

24. 03 • 01 • 04 • 02 Why Continuous Feedback? • Real time feedback helps you learn, grow and deliver results • People love to hear feedback about what they’re up to • People wil love the idea of less lecturing and more guidance • People will know where they stand

25. Benefits of Continuous Feedback • Continuous feedback minimizes the time taken to complete a given task/project. • Continuous feedback increases the efficiency of the team member and the effectiveness of the job well done. • Continuous feedback gets the team member on the right track, before they complete their task • Continuous feedback boosts the team member to give their best. • Helps maintain a friendly atmosphere and culture in the organization.

26. Share Thoughts, Feelings, and Rationale • Listen Actively and Respond With Concern • Ask for Help and Encourage Involvement • Provide Support without Removing Responsibility Principles of Effective Continuous Feedback & Coaching • Maintain and Enhance Self Esteem • Team members who feel valued are more willing to share responsibility, confront challenges, and adapt well to change. • Team members want to know how you’re feeling about them in relation to their performance • Involvement increases the chance that innovative ideas and solutions will surface. • As a manager you are in a special position to provide support to your team. This may include advising, mentoring, and providing needed resources, reassigning duties, and clearing roadblocks.

27. 2 • 3 • 4 • 1 • WIN • WIN Provide ongoing positive/constructive feedback. Accentuate the positive - Discipline yourself to always start by providing positive feedback on good performance before you tackle the performance gaps. • Continue the conversations. The beauty of a loop is that it’s continuous - plan, act, assess, modify (repeat). • Start the continuous conversations. Move from a less structured and dictatedsystem to a flexible system. Design the culture we want. • Ask for feedback. This is an opportunity to share their needs for coaching, feedback, and professional development. How Will This Work? • 4 • 3 • Work in Cadence • 2 • Get feedback • Give feedback • 1 • Engage in conversation

28. Working in Cadence in 2015 01 01 Pulse Check-in Weekly meetings - short duration. 10-15 minutes of real-time feedback and coaching. Continuous Feedback

29. 2 • 3 • 4 • 1 • WIN • WIN • Offer things client service coordinators can augment to be more effective. • Be prepared to bring multiple examples with context of each situation. • Treat people holistically by observing what they’re doing well and reinforce those behaviors. • Collect data throughout the week, so when pulse check-ins occur there are meaningful things to talk about. Nuances of Pulse Check-InsFor Giving Feedback:

30. 2 • 3 • 4 • 1 • WIN • WIN • Ask thoughtful questions to enhance the nuance of the feedback. • Avoid reacting in the moment; instead, let it sink in. If further discussion is needed, come back at a later point with a thoughtful response. • Assume good intent. Listen to what the person is saying without getting defensive. • Ask for examples to have a better understanding of the suggestions with context. Nuances of Pulse Check-InsFor Receiving Feedback:

31. 02 • 01 • 03 • 01 • 02 • 03 Working in Cadence in 2016 • Weekly meetings - short duration. 10-15 minutes of real-time feedback and coaching. • Structured conversations. Team member answers brief questions that look back - look forward. Reflect on past performance and your contribution. Look forward: set expectations and predict impact of your work. • Expectations are set on first day of employment or at the beginning of the year. Determine the tempo for talks. Minimum 3 x per year. • Tempo Talks • Expectations • Pulse Check-in • Continuous Feedback • Expectations • Pulse • Check-in • Tempo Talks

32. Thank you ! Take Away:It is the focus and quality of the conversation. Pulse-check ins are weekly and short in duration. • Respectfully ~The Operations Team