The landscape of performance management has shifted dramatically in recent years with new practices - once thought radical - now implemented as the new normal. Rating-less reviews, dynamic goal setting, continuous performance conversations, and crowdsourced feedback are taking the place of traditional annual goal setting and the now controversial annual performance rating.
Complicit in this revolution is a move toward greater employee empowerment enabled by new digital tools that allow them to drive their performance every day. When implemented successfully, these new performance practices also have the potential to help managers refocus their time on more strategic actions and personalized investments in their people. This session will share Patagonia’s journey to a new dynamic, democratized, and data-driven approach to performance and talent management.
3. Chris Mason, Ph.D.
Head of Talent Management, L&D,
Compensation, & Workforce Analytics
Chris holds a Ph.D. in I-O Psychology from DePaul
University. His career has focused on the application
of this discipline to HR practice in companies large
and small where he has led teams in Talent
Management, Learning & Leadership Development,
Compensation, and Human Capital Analytics,
including his current role at Patagonia based in
Ventura, CA. His passion is the reinvention of Talent
and HR processes with a focus on moving to much
more dynamic, democratized, and datafied
interactions enabled through new digital platforms.
6. 6
“The big inventions are so rare that even the most
brilliant geniuses think up only a few marketable
inventions in their lifetimes…Innovation can be
achieved much more quickly because you already start
with an existing product idea or design.
-YC (Let My People Go Surfing)
10. Michael (Employee) vs. Kate’s (Michael’s Manager) Roles
Manager
Driven
Actions
Layer on personalized / targeted actions to support our people.
+
Advocate with Integrity (on our people’s behalf) to help our functional
leadership make the best investments in people with limited resources
Continuously drive our growth, performance,
careers, and wellbeing
GUIDE COACH ADVOCATE
Employee
Driven
Actions
13. Next-Gen Performance = Any of The Following
More Frequent
Goal Setting
Example: Google’s
“OKRs” (quarterly
Goals)
More Frequent
Performance
Conversations
Example: Adobe’s
“Check-Ins” (Manager
& Employee one-on-
one conversations)
Crowd-
sourced
Feedback
Examples: Sears
Holdings’ digital
feedback tool called
“SoundBoard”
Rating-less
Reviews
Examples: Juniper
Networks, Kelly
Services, REI, Deloitte,
GAP (and many more)
15. 15
What our people tell us…What the data tell us…
Goal Transparency was Embraced:
98% Goals we left Visible to All
The majority of employees prefer
the new “Check-in” conversation
(to the old performance review)
Employees completing Check-Ins
are more likely to say…
- They get more quality feedback
- They know what’s expected of them
Use of Regenerative
Performance Tools Predicted:
- Higher Contributions
- More Rewards/Higher Bonuses
I wanted to share some feedback with you on the new
Compass tool - It is incredible! I am so excited to use
this system going forward and am actually looking
forward to the process at the beginning of FY2017!
-Patagonia VP
I think this (Check-In)
step is the most
important. I think having
an open conversation
reviewing goals and
accomplishments is the
best feedback.
-Patagonia Employee
It created an efficient way of
creating an agenda and interesting
insight into how I judge the work I've
done vs. how my manager looks at
the input.
-Patagonia Employee
17. 17
“Talent Action Planning”
verb.
Creating a plan of personalized/targeted actions
you will do as a manager to layer-on and support
the ongoing growth, performance, career
advancement, and engagement of your people.
Managers LAYER-ON SUPPORT
18. How TAP works (in brief) for each of your direct reports…
18
20. Michael
Kate’s Turn as Manager to Take Actions
She starts with Michael (one of her direct reports)
20
Kate
1. Kate answers a few simple questions about Michael
21. Extra Capacity
Kate’s Identifies Where to Focus Her Support
She learns about what actions Michael could benefit from most at this time
21
2. Kate feels Michael has…
He has room to take on more
He could benefit most from actions
to help him grow + expand impact
She should identify actions that
help him to expand his capabilities
and increase his impact
Michael
22. Kate’s Plan to Support Michael
She get’s suggestions for actions she can take that are
most likely to support Michael at this time
22
Role Expansion:
Look for opportunities for them to take on at
least one new responsibility in their current role
in the next 3–6 mos. to increase impact
Professional Profile:
Encourage them to fill out their Professional
Profile in Workday in the next 3 months
Cross-Functional Project:
Identify opportunities for them to participate on
a cross-functional project or assignment outside
of their role over the next 3–6 mos.
Commits to taking
up to 3 Talent Actions
3. Kate commits to Actions to support Michael
✔
✔
✔
23. Other Talent Actions
Supporting
Actions
• Manager Coaching -
Conduct regular (daily or
weekly) coaching sessions
to help them improve.
• Peer Support - Look for
someone this person can
shadow and learn from.
• HR Discussion (If they are
NOT new to role) - Talk
with HR about the need for
a formal performance
improvement plan.
Role Fit
Actions
• Career Informational
Interview -Encourage them to
talk with someone in another
part of the organization in the
next 3 months
• Explore New Role -Talk with
your manager about possible
roles where this person
might be a better fit in the
broader team or org
• HR Discussion -Talk with HR
about this person's fit with
their current role and explore
another potential role for this
person in the next 3-6
months.
Leadership
Development
• Leadership Presentation -
Find an opportunity for this
person to present directly to
a leader 3 levels up from
their role today Share
Aspiration - Tell your
manager about this person's
aspiration to work at a higher
level of leadership in the
future.
• Leadership Practice - Coach
this person to take over one
task you do in your role (such
as managing a budget or an
external vendor) to help them
grow leadership skills
General
Actions
• Regenerative Performance -
Encourage them to write 3-5
Quarterly Stretch Goals in
Compass next quarter and
then set up a "Check-In"
session to kick off each
quarter.
• Development Goal -
Encourage them to write 1
quarterly development goal
next quarter
• Networking -Identify
between 1-3 key partners or
stakeholders for this person
to meet and greet
We continue to look at new evidence all the time but I want to share the results of two recent studies.
In a study with hourly inside sales associates we were able to compare their hourly sales the month prior to starting OKRs to the month after and we say a statistically and practically significant jump in sales of 8% per hour (that compared with no change in a comparable control group who did NOT use OKRs)
Among our salaried corporate workforce, we still step back at least once a year and evaluate where all members are trending on their performance and potential using a 9-box methodology. Using that approach there are 3 broad performance levels an associate can fall into (Underserving, Middle, and High Performance, which for us is roughly the top 20% of associates). We found associates who consistently used OKRs were able to improve their chances of moving up one performance level by 11.5% compared with the rest of the population. Even someone who used OKRs once improved their chances by 3.5%, while the rest of the population on average was more likely to move down a level than up.
The KEY POINT: If you knew there were a tool that took you about an hour a quarter to use, which could give you a real competitive advantage in your performance, wouldn’t you try it out?
Kate’s Manager, Michael, completes a Talent Action Planning Survey for her.
Based on those survey results, it sounds like Kate has some room to take on more. The actions that Michael will receive as recommendations to take with Kate will help her to grow and expand her impact.
Michael will pick up to three actions he will personally commit to do on behalf of (and WITH) his employee, Kate, before the end of the fiscal year, May 1, 2017. Michael chooses:
Role Expansion: Look for opportunities for them to take on at least one new responsibility in their current role in the next 3-6 months to increase their impact
Professional Profile: Encourage them to fill out their Professional Profile in Workday in next 3 months
Cross-Functional Project: Identify opportunities for associate to participate on a cross-functional project or assignment outside of their typical role over the next 3-6 months
If Michael needs any help planning these actions for Kate, he can download the Talent Action Plan from the Talent Intranet (also linked in the Survey Results email you’ll receive). This allows Michael to indicate which Actions he has committed to with Kate, and to check them off as complete once they are done. They’re in this together!
Let’s look at another example…
Kate’s Manager, Michael, completes a Talent Action Planning Survey for her.
Based on those survey results, it sounds like Kate has some room to take on more. The actions that Michael will receive as recommendations to take with Kate will help her to grow and expand her impact.
Michael will pick up to three actions he will personally commit to do on behalf of (and WITH) his employee, Kate, before the end of the fiscal year, May 1, 2017. Michael chooses:
Role Expansion: Look for opportunities for them to take on at least one new responsibility in their current role in the next 3-6 months to increase their impact
Professional Profile: Encourage them to fill out their Professional Profile in Workday in next 3 months
Cross-Functional Project: Identify opportunities for associate to participate on a cross-functional project or assignment outside of their typical role over the next 3-6 months
If Michael needs any help planning these actions for Kate, he can download the Talent Action Plan from the Talent Intranet (also linked in the Survey Results email you’ll receive). This allows Michael to indicate which Actions he has committed to with Kate, and to check them off as complete once they are done. They’re in this together!
Let’s look at another example…
Kate’s Manager, Michael, completes a Talent Action Planning Survey for her.
Based on those survey results, it sounds like Kate has some room to take on more. The actions that Michael will receive as recommendations to take with Kate will help her to grow and expand her impact.
Michael will pick up to three actions he will personally commit to do on behalf of (and WITH) his employee, Kate, before the end of the fiscal year, May 1, 2017. Michael chooses:
Role Expansion: Look for opportunities for them to take on at least one new responsibility in their current role in the next 3-6 months to increase their impact
Professional Profile: Encourage them to fill out their Professional Profile in Workday in next 3 months
Cross-Functional Project: Identify opportunities for associate to participate on a cross-functional project or assignment outside of their typical role over the next 3-6 months
If Michael needs any help planning these actions for Kate, he can download the Talent Action Plan from the Talent Intranet (also linked in the Survey Results email you’ll receive). This allows Michael to indicate which Actions he has committed to with Kate, and to check them off as complete once they are done. They’re in this together!
Let’s look at another example…