"Mind Bugs: The Ordinary Origins of Bias" - Dr.
Brian Nosek
Performance Management @
Stanford
Pat Keating, L&OE
Agenda
Why should you care?
What is our
approach/objectives/outcomes?
Who involved?
When will we execute?
How can you participate?
Change Drivers
80%
68%
66%
70%
54%
60%
50%
40%
30%
20%
10%
0%
57%
69%
76%
78%
79%
79%
80%
80%
The Business Case
Engagement, Performance and Retention
Business Value of Engaged Employees
The Manager, Employee Development
and Performance
Employees of managers who are very effective at development can
outperform their peers by up to 25 percent
Impact of Manager-Led Development on Employee Performance
Employees Reporting
to Manager A
Employees Reporting
to Manager B
Manager A is very
ineffective at
developing employees
Manager B is very
effective at developing
employees
25%
Performance
Improvement
directly attributable to
Manager Bs
effectiveness at
employee
development
Source: Learning and Development Roundtable 2003 Employee
7
Development Survey
FIVE LEAD ROLES FOR MANAGERS
The manager-led development activities that impact employee
performance fall into five basic roles
Planning
Execution
Evaluation
Performance and
Development
Strategist
Solutions
Enabler
LearningExperience
Architect
Opportunity
Broker
Honest
Appraiser
This role consists of activities
that ensure employees
know performance evaluation
criteria, have development
plans, and acquire
needed knowledge and skills.
This role includes activities
undertaken to help
employees apply newfound
skills and knowledge or to
help employees learn from
their managers experiences.
This role consists of
activities that enable
employees to learn from the
experiences acquired
through their projects
and assignments.
This role includes activities
undertaken to help
employees locate
development opportunities,
in their current jobs and
beyond.
Activities falling into this role
consist of apprising direct
reports of their job
performance and progress
against their development
plans.
Activity & Impact
Activity & Impact
Activity & Impact
Activity & Impact
Activity & Impact
Explain Performance
Evaluation Standards
19.8%
Help Employees Apply
New Skills/Knowledge
11.6%
Ensure Projects Are
Learning Experiences
19.8%
Help Employees Find
Training
13.6%
Assess Development
Progress
13.8%
Create Individual
Development Plans (IDPs)
12.0%
Teach New Skill
or Procedure
7.7%
Provide Experiences That
Develop Employees
19.1%
Pass Along Job Openings
10.3%
Give Feedback on
Personality Strengths
13.3%
Ensure Necessary
Skills/Knowledge
6.7%
Give Advice from Own
Experience
6.7%
Pass Along Development
Opportunities
8.7%
Give Feedback on
Performance Weaknesses
11.9%
Give Feedback on
Performance Strengths
8.0%
Average Impact of Role Activities on Employee Performance
12.8%
8.7%
19.4%
10.9%
11.8%
Source: Learning and Development Roundtable 2003 Employee Development Survey.
Our Goals
To design a best-in-class performance
management system that aligns employee
performance and development with Stanfords
mission and culture of excellence.
People
Process
Technology
Expected Outcomes
An easier, less cumbersome process
An easy-to-use performance management process
A common rating scale and set of competencies
Better performance conversations
Managers and employees will have the skills and
knowledge to have more meaningful performance
conversations
A fresh focus on employee development
Technology that drives efficiency
Easier to complete the process online
Reduces the burden on managers by reducing paperwork
and time taken to complete the process
10
Two-pronged Approach
DESIGN & IMPLEMENTATION
Focus on defining the new
process and competencies
Creating the tools, the
content and the training
etc.
Planning the logistics for
implementing the new
program
Performance Management
Program
CHANGE MANAGEMENT &
COMMUNICATION
Focus on getting leader
engagement and buy-in
Creating the plan to ensure
that changes are seamless
at all levels in the
organization
Develop communications
11
Performance Management Maturity
Model
Performance Management
Drives Development
Performance Management Drives
Accountability and Compensation
Performance Management as
Required Mandate
Performance Management as
Fragmented HR Process
12
Benchmarking Ivy Leagues
School
Uniform
Process
Online
Goals
and Yearend
Appraisal
s
Mid-year
check-ins
Stanfor
d
Pilot
phase
Some
units
Penn
Reviewin
g options
Some
units
MIT
Reviewin
g options
Informal
process
Reviewin
g options
Some
units
Recommend
ed baseline
process
across
university
Harvar
d
Forms,
scales differ,
components
of
performance
managemen
Not
a current
t are
= Consistently
One
Rating
Scale
Universal
set of
Competen
cies
13
Common Themes at Stanford
Ineffective Process
Managers dont want to deliver tough
messages around performance.
Managers and employees are only
evaluated on goals and not people skills,
therefore, how you achieve your goals is
not important. People can display bad
behaviors and are not accountable.
People here have been in their jobs for a
long time, there really arent any goals to
set.
Managers Are Unskilled at PM
Managers lack the skills to manage
performance effectively.
There are no career growth
opportunities here, therefore
development planning isnt that
beneficial.
Faculty and staff would rather hold on
to their people than help them advance
their careers.
No line level sponsorship
Faculty dont want to be bothered with
performance management.
Performance management is seen as
an HR practice.
This is not a true pay-for-performance
culture.
Lack Effective Tools for PM
There is limited training for managers
around how to conduct good performance
management conversations.
Managers dont have the time to focus
on performance management.
Merit increases are awarded evenly
across teams to avoid employee
dissatisfaction.
14
Current State Summary
Over 40 performance management forms across Stanford
Rating scales vary from a 3 point scale to a 7 point scale and include
numbers, letters and descriptors, makes managing talent across the
organization a challenge
At least 3 different technologies are being used for performance
management across Stanford
Performance cycles vary greatly
We measure hundreds of competencies and up to 17 competencies in one
review
Certain key elements of performance management that impact high
performance including multi-rater feedback, development planning etc. are
not done consistently
Lack the ability to track performance year-over-year
Senior leaders cannot get a snapshot of their organization (unless using an
online system)
People management skills are not evaluated resulting in an over-emphasis on
goals
$1.5 BILLION unmanaged asset in
payroll!!
15
PM Objectives:
What Are We Trying to Change Or
Improve?
Poor
Performanc
e
Stellar
Performanc
e
Improving
performance across
the organization
(raising the bar)
Greater recognition of top talent
and ready now successors
Retention &
Poor
Performanc
e
Stellar
Performanc
e
Improving manager
effectiveness with
performance management
Getting rid of old behaviors and
rewarding new behaviors
16
Behavior Change
Best in Class Performance Management
Programs
Managers meet to
calibrate performance
Final ratings are
assigned
Compensation pools are
distributed according
to performance
Pay-forperformance
approach
Compensati
on
Decisions
Solicit
feedbac
kFormal
review,
employee
writes self-review,
gives self-ratings,
manager adds
and rates
Manager and employee
meet to discuss
performance
Goal Setting
&
Development
Planning
On-going
feedback
and
coaching
throughout
the year
Year-end
Review
Set organizational ,
team and individual
goals
Communicate
goals, develop
strategy
Discuss
developmen
t
Creat
e plan
Performance
Check-in/
Feedback/ Midyear review
Solicit
feedbac
Formal
or
k
informal
performance
check-in
via a mid-year
review clear
Communicate
or feedback
messages
around
session
performance based on
goals and
competencies
17
Components of the PMP - Outline
Process
Competencies
Goal Setting
Development Planning
Mid-Year Reviews
Coaching and
Feedback
Multi-rater feedback
Year-End Reviews
Rating scales &
Calibration
Link to Compensation
Competency Model
Application
Measurement of
competencies
Behavioral Descriptors
PMP
People
University and
School/Business unit
Leadership
Manager commitment,
capability, confidence
Employee
commitment,
capability, confidence
Tools/Technolog
y for goal setting,
Form
dev planning,
appraisals etc.
Forced distribution
curves
Training curriculum
and format
Job- aids to learn the 18
new process
Performance Management
Talent
Management
Compensation
Performance
Management
Employee Survey
Experience
19
Pilot Issues
Focus
Scope
Leadership
20
Pilot Group Focus and Scope
Unit
Focus
Scope
GSB
Changing behavior, driving
innovation
Whole organization
H&S
Improving manager
effectiveness with the PMP,
recognizing top talent,
challenged with faculty
supervisor reviews
Sub group within H&S,
including some faculty
supervisors
OOD
Retention of top talent,
succession planning
Whole central OOD
organization (excludes
schools)
R&DE
Improving performance,
compliance, influencing the
design of the new PMP
Sub group within R&DE
based on leaders
support and interest, will
not include bargaining
unit employees
SOM
Employee satisfaction and
retention, challenged with
faculty supervisor reviews
Sub-group within SOM
based on leader interest
SOE
Better PMP tools, Influencing
the design of the PMP,
challenged with faculty
supervisor reviews
Sub-group within SOE
21
Executive Sponsors
David Jones, VP HR
Jeanne Berent, Executive Director of Finance and
Administration, OOD
Marcia Cohen, Sr. Associate Dean, Finance and Administration,
SOM
Shirley Everett, Sr. Associate Vice Provost, R&DE
Adam Daniel, Sr. Associate Dean, H&S
Clare Hansen-Shinnerl, Sr. Associate Dean, Finance and
Administration, SOE
Gary Edwards, Performance and Culture Strategist, GSB
22
Successful Change
23
Engaged Leadership
24
A Phased Approach (PILOT)
Phase
1 (Year 2011)
Phase
1 (FY2011)
A select pilotProgram
group will Design &
participate in Phase
Implementation
1 of the
program.
Define a high level university-wide
program which will include a
performance management
philosophy and recommended
steps as part of the program
including development planning
Review university wide and
organization specific competencies
to create a model that can be
broadly applied
Create a common rating scale and
definitions
Recommend a format for writing
appraisals
Gain line level sponsorship
Assess ePerformance to see if it will
meet the organizations needs
Design appropriate training tools
for managers and employees
Create a robust change
Phase 2 (FY2012)
Review various technology
options, costs etc. based on the
needs defined in Phase 1
Design and test online
performance management tool
Test new technology
Create appropriate training and
job-aids for employees and
managers
Launch new technology
25
Multi-Year Timeline
FY2011
Designing the
refreshed
program
FY2012
FY2013
FY2014
Launching the
Launching the
refreshed
online technology
in a paper
program
to the pilot group
process with
Launching the
pilot group
refreshed
Review and design
program in a
the technology for
paper process to
online
the rest of the
performance
organization?
management
Communicating
Evaluating the
the new program
technology on an
to the rest of the
ongoing basis
organization
Introducing
online
performance
management to
the entire
organization
26
Benefits of Participating in the
Pilot
Influence and
Co-create
Build
Higher
Manager
Engagement
and Productivity
Influence and co-createCapabilities
Improve manager
Greater employee
a performance
management program
that is meaningful to
your organization
Be part of a pilot that
will test best practices
in a variety of settings
Collaborate with peers
on a fast paced project
effectiveness
Improve
results on
the
employee
survey
under
coaching
and
feedback
engagement and
morale
Higher
productivity
27
Detailed Timeline
FEB
Solidify
timeline
Define our
performance
management
philosophy
Understanding
the unique
challenges of
performance
management
with faculty
supervisors
MARCH
Refining the
Stanford
Competencies
Defining the
components of
our refreshed
program?
Answeringwhat do we
want to
measure- single
vs. dual rating?
Rating scales
Complet
In
APRIL
Designing a
new form
Designing a
template for
multi-rater
feedback
Creating a
change
management
and
communication
plan
Defining an
implementation
Not
plan
MAY
Getting buy-in
across all levels
in the university
Testing the new
appraisal form
Define the
training needs,
identify training
format, vendors
etc.
28
High Level Strategy and Metrics
Adoption to Impact
Adoption
Staff is using the
new program and
ultimately the
technology
Staff finds the new
program and
technology effective
and easy to use
Performance
management is
established as a key
accountability at
every level in the
organization and
from the top down
Expertise
Managers develop
the skills to
conduct effective
performance
reviews
Managers give
more frequent and
more effective
coaching and
feedback
Stanford University
is able to track and
manage
performance and
talent across the
organization
Performance rating
distributions are
normalized
Employees
understand
Engagement
Employee
engagement,
professional
development,
employee
recognition and
employee
commitment are
higher
Discretionary effort
and intent to stay
are higher
High performing
employees are
identified and
rewarded
appropriately
Productivit
y
Employee
productivity is
higher as a
result of the new
program
It is easier to
identify poor
performers and
create an action
plan
It is easier to
identify and
reward high
performers
Turnover for high
performing
employees is
lower
Better business
results
29
The Business Case
30
Questions
31
Backup Slides
32
Recommended Plan &
Deliverables
Defining a Meaningful
Program
Define a high level university-wide
program
Performance Management
Philosophy
Recommended steps
Reviewing university wide and
organization specific competencies to
create a flexible model that can be
broadly applied and easily customized
A common rating scale and definitions
Recommended format for writing
appraisals
Selecting an Online Tool for
PM
Select an online performance
management system based on
refreshed program, feedback on current
PeopleSoft pilot and defined needs
Pilot the new online system to a small
population and solicit feedback
If feasible, roll-out new system across
the university
Line level Performance
Champions
Shift from performance management
being an HR initiative to being a line
level initiative
Sponsorship and launch at the highest
level
Identify line level performance
champions who will support a culture of
performance management
Champions model new behaviors
Build channels of accountability at the
line level to ensure that managers are
following the program
Training for Managers and
Employees
Online training for managers to
understand the refreshed philosophy
and program
Support online training with classroom
Q&A
Tools for managing performance are
available online
Online training for employees to write
an effective self-appraisal
Online and classroom seminar
for web33
based performance management
training
FOCUSING ON WHAT MATTERS MOST
Impact of Specific Manager-Led Development Activities
A Refreshing Message:
A Refreshing Message:
The most powerful
The most powerful
development activities are
development activities are
already part of you daily
already part of you daily
responsibilities.
responsibilities.
*For a complete definition of each activity,
please see the previous slide.
Source: Learning and Development Roundtable 2003 Employee Development Survey
34
Overall Employee Satisfaction Rate: 73%
Percent favorable = Total positive responses (Strongly Agree, Agree) divided by total valid
responses.
Slide 35
Overall Engagement Rate: 78%
Percent favorable = Total positive responses (Strongly Agree, Agree) divided by total valid
responses.
Slide 36
Strongest Dimension of Teamwork (tie)
Items in the Teamwork dimension:
I enjoy working with my co-workers.
My co-workers and I work well together
as a team.
There is good cooperation between my
team and others.
Teamwork is encouraged in my work
group.
Slide 37
Strongest Dimension of Supervisory Consideration (tie)
Items in the Supervisory Consideration dimension:
My supervisor holds me accountable for
my responsibilities.
When I face challenging situations at
work, my supervisor supports me.
If I speak up, my supervisor will listen.
I know what is expected of me at work.
My supervisor distributes work
appropriately.
My supervisor treats me fairly.
Slide 38
Weakest Dimension: Feedback and Coaching
Items in the Feedback and Coaching dimension:
My supervisor or someone at work
coaches me on how to improve the
way I do my job.
I regularly receive useful feedback
about my work performance.
My last performance evaluation
helped me understand my
strengths.
My last performance evaluation
Slide 39
Strongest Rated Individual Items: ~ 90% or higher Favorable
Dimensio
n
Item
%
Favorab
le (scale
of 0 to
100)
Organizatio I genuinely care about my
nal
internal/external clients (such
Direction
as students, staff, faculty,
patients, parents, alumni).
94%
Commitme I plan to stay working at
nt
Stanford for more than one
year.
90%
Job
The work I do is meaningful.
Compatibili
ty
90%
Supervisor
ySlide 40
92%
My supervisor holds me
accountable for my
Items: ~50% or lower
Favorable
%
Dimensi Item
on
Favorabl
e (scale of
0 to 100)
Feedback My supervisor or someone at
and
work coaches me on how to
Coaching improve the way I do my job.
51%
Change
When organizational changes 51%
Managem occur, I understand the
ent
rationale for those changes.
Change
I am well informed in
Managem advance of organizational
ent
changes when they occur.
49%
Profession In the last year, I have been
al
encouraged to advance my
Developm career.
Slide 41
ent
46%
