NATO PERFORMANCE MANAGEMENT

1. NATO PERFORMANCE MANAGEMENT Intensive HRM Training Day Dr. Eric Welch Head, Talent Management and Organizational Development NATO HQ

3. Human Resource Management Process Strategy and Requirements Performance (Organizational and personal)

5. Performance Review and Development (PRD) • Why • History • What we’re doing • How it works • Current challenges

6. Why PRD? • Ensure managers communicate with staff about how they are performing • Provide a basis for effective HR decision-making (e.g., step increases, contract decisions, recruitment) • Improve and standardize management practices across the Organization • Promote and support individual development • Help ensure strategic objectives are met

7. PRD History • 2005 – Performance Management • 2009 – discontinued electronic system • 2010 – PRD creation and launch

8. PRD Ongoing Goals • Provide information to the Organization to be able to make personnel decisions based on performance • Motivate staff by providing appreciation for their efforts and developmental feedback tailored to their situation and aspirations • Motivate staff by providing them explicit understanding of how their objectives and efforts are consistent with Organizational priorities • Improve Organizational performance by providing mechanisms to deal with poor individual performance

9. PRD Cycle Overview • Starts following the successful completion of the probationary period • Phase 1: Objective setting • Phase 2: Mid-term review • Phase 3: Annual review • Objectives, competencies, overall performance • Calibration • Performance Improvement Program (PIP)

10. How: Phase 1: Objective setting • Set and discuss: • the results to be achieved • how these will be measured • by when • Consider: • competencies • development/training topics • Review the job description

11. Objectives • Cascade • Focus on: • Goals or projects for the year, OR • Daily operational tasks based on result areas in the job description What are the most important things required in the job? What is the staff member expected to achieve in these areas? What behaviors (competencies) will the staff member have to demonstrate?

12. SMART Objectives • Specific: clear, unambiguous, straightforward, understandable • Measurable: assesses quantity, quality, time, budget, resources • Agreed: the meaning of the objective is agreed between the parties • Realistic: challenging, but within the capabilities of the staff member • Time-related: to be completed within an agreed timescale

13. Example objectives: Assistant Description of objective: Coordinate the XYZ Conference to include advertising, supporting the conference center in the updating and organization of the program, liaising with Procurement on the contract, and liaising with NATO-wide and Partner contacts. Measurement: 1. Advertise the conference in January 2013 and draft list of potential speakers for review by Divisional leadership before end-April 2013. 2. Contract signed with conference centre by June 2013. 3. Coordinate preparations and logistics leading up to Sep 2013 conference. 4. Participate in lessons-learned discussions in Oct 2013. Description of objective: Support Head ABC in the daily management of his office, tasks and information flow, with focus in mid-year on the transition to new structure. Manage the section’s budget. Measurement: 1. Queries and requests are dealt with as quickly as possible taking into account all necessary aspects - to the satisfaction of customers and Head ABC. 2. In the event of conflicting priorities, launch an automatic discussion of workload impact.

14. Example objectives: Officer Description of objective: Develop financial plans that superiors consider useful for making decisions. Measurement: 1. Prepare and submit financial plan for XYZ project by March 2013. 2. Revise as necessary following feedback. 3. Submit final version to committee in June 2013. Description of objective: Engage in identifying and implementing strategies to improve productivity. Measurement: 1. Participate in the implementation of the ERP. 2. Following identification of the implementing consultant, coordinate efforts between Division staff and consultants for implementation. This is expected to happen in Q3 and Q4, and could require approximately 20% of the staff member’s time.

15. How: Phase 2: Midterm Review • Re-examination of objectives and training topics • Confirmation of their continued relevance or need to change them, if necessary • Opportunity for either party to raise any concerns about performance (if applicable)

16. How: Phase 3: Annual Review • Two steps: Performance review + calibration • Formal opportunity • Progress the staff member has made towards: • their individual objectives • competencies • Proposed rating

17. Performance review - Competencies • Behaviors that are required for successful performance in the job • PRD assesses the extent to which a staff member demonstrated the required competencies during the performance cycle

18. Ratings • Exceptional – in a properly managed organization, only a handful of people earn this rating occasionally throughout their career • Excellent – this rating is normally reserved in most organizations for just a small proportion of high performing staff • Very good –this is the rating used by organizations for the significant amount of staff whose performance is clearly better than the standard one • Good – this is the expected rating for everyone in a good organization. The most frequent one • Fair – this is the rating used by organizations for the small amount of staff whose performance is proficient but requires improvement • Unsatisfactory – most organizations have some unsatisfactory performers, but they are a very small minority in most cases

19. Calibration • To improve consistency and fairness • To make sure managers apply similar standards for all staff • To eliminate bias as much as possible • To promote discussion of performance expectations at all levels • To bring outstanding and poor performers to the attention of top management

20. Timeline 2014 cycle Objective Setting 2014 Annual Review 2014 Mid-term Review Objective setting 2015 Annual Review 2013 Calibration January – Feb. January – Feb. June - July You are here

21. Performance Improvement Program (PIP) • Why • To help staff get back on track • Provide framework for managers to address performance issues • Two phases • Preliminary phase • IP Program phase

22. 1. Preliminary phase • Whenever an aspect of performance needs improving, at any time during the year • Or after a final rating of “Fair” • Up to 180 days • Use an Improvement Monitoring Form

23. 2. IP Program phase • 30-90 days (+ 30-90 day extension if needed) • After an unsuccessful Preliminary Phase, OR • After two consecutive final ratings of “Fair”, OR • Any time a staff member is not working up to requirements in a critical area • Action plan established • If unsuccessful, leads to termination of contract

24. Unsuccessful Preliminary phase IP Program “Unsatisfactory” rating in AR Two consecutive ratings of “Fair” in AR Training ? Training ? max. 1 x IP Action Plan starts IP file closed Back to normal performance Training ? Satisfactoryresults Decision Un- satisfactoryresult Extension Ground for dismissal

25. 2012 Results

26. Current challenges in PRD • Expanding the PRD system NATO-wide • Developing a performance-based reward system • Implementation of new tools and workflows due to ERP

27. Organizational Design and Development Performance Review & Development Objectives: I willset them with my manager NATO’s Objectives & Needs Mid-term: wewill review progress My Post Description Annually: Iwill be evaluated on my work and on …. My Competencies My Result Areas My Languages Because of different job families and work levels My IT And if I want OR I need, I can further develop my Competencies…………. ME IT Training Competencies training Language Courses Management Development Programme NATO Executive Development Programme Training and Development Pre-deployment training Leadership Journey Senior Circle

28. Eric Welch, Ph.D. North Atlantic Treaty Organization Welch.eric@hq.nato.int +32 (0)2 707 3750

29. Staff Skills Database • Purpose: mechanism to expand capabilities in times of crisis (Surge Capacity) using existing resources from other divisions • What it is: individual profiles completed and maintained by staff members – focus on the skills not used in the normal job • Where: HR Service Portal • Additional benefit: ad-hoc support for short-term help on other projects and initiatives

30. Identify skills • Inputs: • Education and Languages • Skill Categories, Areas, and Topics • Professional Interests • References • Career Goals and Expectations (HR eyes only) • Menus and free text

31. Meet needs • Structured + Free text search options • Production of CV-type reports • Open to all staff, on request • Result:180 unique visitors, 60 profiles, 70 searches within 30 days of implementation • Next steps: Increase usage, expand to other NATO bodies, create Surge Capacity Pool