Talent and Performance Development
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Talent and Performance Development
Making sense of performance and talent development systems to create & sustain high performance in organizations. For the BEST of the BEST curated news in performance, change, agile learning, innovation, motivation, social media and careers, SUBSCRIBE to Reveln.com/Tools/
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Adobe’s New Approach to Abolishing the Yearly Performance Appraisal: The Details

Adobe’s New Approach to Abolishing the Yearly Performance Appraisal: The Details | Talent and Performance Development | Scoop.it

Adobe is blazing a trail.  Rosemary Arriada-Keiper, Head of Rewards at Adobe reviews several of the compensation details of their new program.


1)  Has Adobe completely done away with performance appraisals (evaluating past performance)?

Rosemary: Yes, we no longer have performance appraisals.  While we still believe we need to evaluate performance, we believe this should be done on an on-going basis through regular feedback provided during “check-ins”.  These are on-going discussions between employees and managers about goals, status against them, what is working, what is not, whether goals need to be modified or reprioritized given the environment, etc.   ...These “check-ins” are not written. ...We encourage at a minimum that "check-ins" happen quarterly but we typically see monthly in practice.


2) Has Adobe completely stopped giving performance ratings?
 

Rosemary:  Correct, we no longer provide a rating.  ... because of  “check-ins” both managers and employees should have a very good sense of performance by the time managers need to make compensation recommendations.

4)   You mention there are rewards for key talent.  How are key/high performers selected...? 


Rosemary:  We have a separate process for that whereby discussions about key talent happen with leadership in the respective organizations.  We do identify who they are and they are “tagged” in the system as Key Talent (yes/no) but no rating per se. 

Key talent receives stock although occasionally they get cash.  Both managers and individual contributors are eligible.  The total pool is no more than 2% of the employee population.
 

5)  What has been the response from both managers and employees about this change in program?

 

Rosemary: Very positive. There’s lots of relief around not having to write annual performance reviews and label employees a certain way.  That said, the conversations managers have with their employee has had to shift from “these are the guidelines given to me by HR [to} push[ing}  managers to own their decisions and be able to articulate them (and defend if challenged). 


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Deb Nystrom, REVELN's insight:

Adobe made a huge jump away from their reviled stack ranking system, a move that even raised their stock prices.  

These are four (4) highlights from a longer article by Compensation Café shows how the revamped review, now called "check-in" without documentation, and the compensation system is now handled at Adobe.   Gone are the rankings, the yearly appraisal and ratings.

According to the head of "Rewards" at Adobe, it's been received quite positively.   It's certainly a step in the right direction.  It isn't really all that new.  The APOP or "Annual Piece of Paper" process described by an article in Fast Company in 1998 is very similar.  Here's the link.   I'll have more to say about it in my next blog post on REVELN.com.

~  Deb

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Are Annual Performance Reviews Like the Hotel California? You Can Never Leave?

Are Annual Performance Reviews Like the Hotel California?  You Can Never Leave? | Talent and Performance Development | Scoop.it

[The] diosyncratic seasonal events [for] HR .... the annual performance appraisal:

       

  • They are time-consuming, involve too much paperwork
           
  • HR would even do better to drop them altogether and find a better performance-management tool. 
       
  • ...Management consultancy Hay Group found half of public sector workers and one-third of business leaders describe appraisals as a box-ticking exercise. 
      

A recent US poll of 2,677 people (1,800 employees, 645 HR managers, and 232 CEOs) by San Francisco-based rewards-and-recognition consulting firm Achievers revealed 98% of staff find annual performance reviews unnecessary.

    

  • Among the 2,677 respondents, a quarter were HR professionals.

    

Edward Lawler, professor of business at University of Southern California, reacted by declaring: "Performance appraisals are dead." But he also unveiled research showing 93% of companies use annual appraisals, and only 6% have considered dropping them.

   

As always in our ScoopIt news, click on the photo, video or title to see the full Scooped post.

    

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  • Are you local to SE Michigan?  Find out more about horse-guided leadership development sessions (no fee demos) for individuals by contacting Deb, after reviewing her coaching page here.  
Deb Nystrom, REVELN's insight:

The song by the Eagles, regarding our long ties to performance reviews:  "You can check out any time you like, but you can never leave."

In this post, it's useful to read the comments, most of which are about still attempting to tweak performance management systems.


A final commenter suggests:

"...The fundamental false assumption is that performance is due to the people when research and case studies show that it is due almost wholly on the system, i.e. the way the work works.

Replacing appraisals with a different approach frees people to do what they really want, deliver better service, reduce costs and increases morale. What more do you want!"

As for who is actually doing this, I've listed links above to help.   ~  Deb 

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The Performance Preview, an Alternative to Performance Review

The Performance Preview, an Alternative to Performance Review | Talent and Performance Development | Scoop.it

Management consultant and UCLA professor Samuel Culbert offers a solid alternatives to problematic performance review practices in his 2008 book “Get Rid of the Performance Review:” 


  • In chapters 7 and 8, I offer the alternative—the performance preview. It’s as simple and elegant as it is successful. It does all the things performance reviews are supposed to do but don’t. 
      
  • In the end you will see what many of you already know in your heart: that mainstream management is embedded in, and relies on, a culture of domination—and that the performance review is the biggest hammer management has. 
      
  • You will see how the review destroys our spirit, as well as our corporate performance. You will see how the same people who created this sorry mess have the power to undo it. And you will see that there is a way to fix it, if only we have the courage.
     

As always in our ScoopIt news, click on the photo, video or title to see the full Scooped post.

    

Related posts by Deb:

    

         

             

       
     

           

  • Are you local to SE Michigan?  Find out more about horse-guided leadership development sessions (no fee demos) for individuals by contacting Deb, after reviewing her coaching page here.  
Deb Nystrom, REVELN's insight:

"If only we have the courage," is a key observation by Culbert.

Risk-aversion, low courage, and avoidance is a malaise that can affect segements of, or even entire corporate cultures.  

Key points of Dr. Culbert's frank writings include:  

  • separating compensation from performance reviews, 
  • taking a look at the role of hierarchy to include that of a boss asking  “how can I help you achieve your best?” 
  • ending low value pratices like ranking and ratings.

     ~  Deb
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Replacing Performance Appraisal with Better Practices

Replacing Performance Appraisal with Better Practices | Talent and Performance Development | Scoop.it

"The annual performance appraisal [does NOT] actually increase performance. So, what should replace them?  There are three strategic resources to replace the performance appraisal system:


  1. Key Predictive Indicators for Knowledge Workers
  2. The Manager’s Letter
  3. After-Action 



_____________________
    
Better to be approximately relevant rather than precisely irrelevant.

_____________________


Knowledge work is not defined by quantity, but quality; not by its costs, but results. The traditional tools of measurement need to be replaced by judgment. And there is a difference between a measurement and a judgment: a measurement requires only a scale; a judgment requires wisdom.

   

....So many leaders worry that if they get rid of objective measures, they will introduce subjective bias into the decision-making process. So what? To get rid of bias we would have to give up emotions and discernment, which is too high a price to pay. Neurologist Antonio Damasio has studied brain-damaged patients, demonstrating that without emotion it is impossible to make decisions.

    

Admittedly, the following KPIs raise rather than answer questions, but at least they raise the right questions. Better to be approximately relevant rather than precisely irrelevant. Enlightened organizations allow their team members to decide which of the following KPIs are most important to track and develop.



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Deb Nystrom, REVELN's insight:

This is rich, practical post is also listed with "Innovation and Institutions"  since any organization that successfully dispenses with this deeply flawed practice is innovating indeed.  


So many leaders are reluctant to take this step under the guise of wanting to believe the metrics tied to appraisal are fully valid.  It's doubtful they are if subjective managers are making the call.   ~  Deb

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Deb Nystrom, REVELN's curator insight, June 15, 2013 3:42 PM

This is a wonderfully rich post on how to set forth good alternatives to this dreaded and deeply flawed practice.  It features how to get on the right path with "practical suggestion(s) to hold people accountable for their future contribution..."  ~  Deb

Deb Nystrom, REVELN's comment, June 16, 2013 9:41 AM
From a Google+ post discussion with Vince: I think most metrics involving human beings are rife with subjectivity under the guise of objective measurement.

In my experience working with organizations designing their perf. mgmt. processes, there was a year that a business had minimal salary to distribute for the yearly program. They decided to do across the board increases with adjustments (those paid under a certain amount had a bigger increase.) They also, that year, completely severed the performance appraisal and salary link. Result: The performance review conversations completely changed. For the first time, staffers asked for additional time to complete the year end discussion, using it to really build understanding and plan for the year ahead (feed forward concept.)

If there was one business practice that would do much better, "resting in pieces," it would be performance "management."