Employee Performance Management.ppt

Florida Association of Community Health Centers

2009 Annual Conference

Performance Management, Employee Retention & Motivation

Mark E. Robledo, The Crossroads Group, Inc.

04/10/23 ©2009. The Crossroads Group, Inc. 2

Who We Are

The Crossroads Group, Inc.• Speaker: Mark Robledo, M.B.A., President and

Founder • Specialization: Organizational development, with

particular emphasis on delivering measurable outcomes.

• Mission: To help clients assess and achieve measurable client goals and objectives.

• Founder serving FQHCs since 2000


The Crossroads Group Core Competencies

Community Health Centers

Core Services:Strategic Planning Facilitation/PreparationPatient Satisfaction/Experience Measurement and

ImprovementEmployee/Provider Perception Surveys and Focus

GroupsProcess Improvement/Patient Flow ImprovementTraining and Development

For more information and references: www.CrossroadsGrp.com/chc.htm


Process + People PerformanceTwo Sides of the Same Coin

ProcessPerformance

HumanResource

Performance

OrganizationalPerformance

Our Focus Today


What is Performance Management?A Primary Management Function for all Managers and Supervisors

• Performance management is an ongoing communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations regarding job functions, organizational goals (and relationship to), performance feedback, performance measurement, barrier removal, and continuous improvement. Bacal, Robert. Performance Management. New York: McGraw-Hill. 1999.


Why Performance Management?

Why so Important? People are the most strategic asset and the greatest investment Delivery of all organizational goals and mission depends on people Most health center managers are poorly equipped to manage

subordinate performance (technically but not managerially proficient)

Performance Management Directly Impacts: Employee Retention, Engagement, and Commitment Employee Productivity and Efficiency (all levels) Process Performance Service Excellence, Patient Satisfaction, and Community Image Financial and UDS Metrics


Performance Management QuotesWhat High-Profile Business Leaders Have Said

• “My main job was developing talent. I was a gardener providing water and other nourishment to our top 750 people. Of course, I had to pull out some weeds, too.” (Jack Welch)

• “The conventional definition of management is getting work done through people, but real management is developing people through work.” (Agha Sahab, Founder of Bank of Credit & Commerce Int’l BCCI)

• “(A) myth of management is that success equals skill.” (Robert Heller)


Performance Management Quotes

• “Executives owe it to the organization and to their fellow workers not to tolerate nonperforming individuals in important jobs.” (Peter Drucker)

• “Endeavors succeed or fail because of the people involved.” (Colin Powell)

• "Never try to teach a pig to sing; it wastes your time and it annoys the pig.“ (Paul Dickson)

• "So much of what we call management consists in making it difficult for people to work.” (Peter Drucker)

Performance Management QuotesDealing With Poor Performance

• “I feel that there is no greater disrespect that you can do to a person than to let them hang out in a job where they are not respected by their peers, not viewed as successful, and probably losing their self-esteem. To do that under the guise of respect for people, is to me, ridiculous.”

(VP Strategy and Corporate Relations Hewlett Packard)

• “It’s incredibly demoralizing for the rest of the team if you don’t move poor performers out – and the leader looks blind and out of touch.” (Senior Executive, Arrow Air)



Why Managers Don’t Manage“Management Must Manage” (Harold Geenen)

• Ill Equipped – lacking tools and basic skills• Fear of being perceived as a “micro-manager”• Perceived Lack of Time

Not seen as a priority Busy “Putting out fires”

• Emotional barriers/fear of confrontation• Not able to delegate

Easier to “Just do it” than to delegate to someone else

“It is not necessary to change. Survival is not mandatory.” (W. Edwards Deming)

Leverage

Failure to Manage r

• Results: “Lose the best, keep the rest…”

• Costs of Turnover (direct and hidden)Direct: Recruitment, replacement, on-boarding, training

and development, Indirect:

– Additional burden on staff (coverage and training)

– Adverse effect on morale, knowledge drain

– Adverse impact on patients (image, relationships)

• Suggestion: Create sense of urgency. Run a turnover cost calculator for your organization.



Eight Key Elements of Performance ManagementAdditional Emphasis

1. Goal-setting (for new or established employees)

2. Motivation

3. Monitoring Performance

4. Gap Closure and Improved Performance

5. Coaching

6. Performance Appraisals

7. Development

8. Addressing Intractable Performance Problems


Goal-Setting

• Goals are not job description activities Goal provide the reason for activities. All activities should be

linked to a specific goal or goals. • While all are important, should be prioritized (e.g. service

vs. efficiency) accurately measured • Goals must be…recognized as important (by owner), clear,

specific, measurable, timely, aligned with strategy, achievable but challenging, supported by appropriate and meaningful rewards (must be a meaningful “stake” in the outcome for the employee).


Individual Goal-Setting (Cont.)

How to set goals with employees• Discuss goals with employee. Obtain agreement (2-way)

Clarify importance (reason for) of goals Dialogue How To Aspect Adjust participation according to KSA and employee level

• Record Goals (copy for manager and employee) Develop action plan (best driven by employee) Record date of meeting, the goals (and targets), the actions,

resources (coaching, training, other), date of next assessment.


Individual Goal-Setting (Cont.)

• A Note on “Soft” Goals:Do not neglect to include. Tend to often be left out in

favor of “hard measures” (volume or UDI measures), but equally critical and supportive of.

– Often lead the harder lag indicatorsExamples include customer perceptions, employee

perceptions, public perception, internal service, manager behaviors.

Tools: Internal and external surveys, focus groups, mystery shop


Monitoring PerformanceBeyond the foundations

• Observe and gather data

• Avoid premature judgments or assumptions

• Consider other sources of information (validate with peers)

• Attempt to differentiate between skill and/or motivation issues

• Examine yourself. Managers may hinder performance by micromanaging the how, providing insufficient resources, not being available, or setting unclear or unrealistic time frames. Poorly designed processes may also contribute. Periodically “Step into their shoes” (spend time in their work area)


Gap Closure

• Performance Discrepancy or Gap: A mismatch between what employees are actually doing and what they should be doing, based on established manager/supervisor expectations.

• First assessment step:1. Are expectations realistic?

2. Assess the cost (impact) of the discrepancy

3. Is there a fast fix?


Gap Closure

• First Step: Differentiate whether the issue is a process issue (beyond employee), a skill issue, or a motivational issue.

• Validate over time (pattern) and with peers.• Be aware of (and sensitive to) other factors,

particularly when performance decline is sudden:

Personal problems Relational conflicts at work Work overload or burnout


Gap Closure

• Addressing with the Employee: State the observation

– Use metrics where available

Discuss behaviors, never presume motives State the implications: (Example) Plan follow-up actions


Coaching Basics: Practical Suggestions

1. Most powerful and readily available (ideally) tool in performance management

2. May address either performance or skill gaps3. Can be delegated to others ‘Coach the coach”,

especially for skill training (leverage)4. Best weighted towards employees with potential

for growth or on verge of promotion to new role Secondary Benefit: Causes the employee to be

valued. Meets need for growth and challenge.


Coaching Basics (Cont.) Practical Suggestions

5. Let new hires know to expect coaching as a normal part of management process.

6. Recommend creating a custom “Coaching Opportunity List” of your subordinates.

7. Build agreement as to the need for coaching beforehand. Performance Gap “Next Level” knowledge

8. Follow-up action plans With input from the employee


Coaching (Cont.) Situational Leadership Model

DI RECTI NGLow Com petence

HighCom m itm ent

(1)

DELEGATI NGHigh Com petence

HighCom m itm ent

(4)

COACHI NGSom e Com petence

Som eCom m itm ent

(2)

SUPPORTI NGHigh Com petence

VariableCom m itm ent

(3)

Su

pp

ort

ing

Be

ha

vio

r

D irecting Behavior

LOW

LOW

HI GH

H I GH

S ituational Leadersh ip Model ( Hersey, B lanchard)PRIMECOACHINGSTAGE


Coaching (Cont.) Important Considerations

1. Climate: Mutual trust, accountability, and growth

2. Keep focus of feedback on future3. Provide timely feedback4. Focus on specific behaviors or metrics, not

character, attitudes, or personality5. Be specific

• E.g. Praise vs. Positive Feedback


Motivating Employees

Extrinsic Rewards vs. Intrinsic Rewards1. Extrinsic more commonly focused on by

administrators (e.g. pay)– Most effective for recruiting

2. Intrinsic more powerful and readily available – Growth opportunities, meaningful work,

teamwork, positive work environment. Extrinsic dissatisfaction may be (but not

always) rooted in lack of intrinsic reward.


Intrinsic and Extrinsic DriversKey Drivers of Overall Satisfaction

1. Benefits and Compensation2. Job Security3. Communication With Management4. Work/Life Balance5. Relationship With Supervisor6. Career Development Opportunities

Source: Society For Human Resource Management (SHRM), 2003


Satisfaction MetricsSatisfaction Survey Results

(Recent Crossroads Group Survey)


Importance MetricsImportance Survey Results

(Recent Crossroads Group Survey)

10 Practical Ways to Motivate and Retain Strong Performers

Source: Harvard Business Essentials. Performance Management, 2006.

1. Demonstrate trust

2. Make jobs more complete

3. Introduce challenge

4. Encourage some to become experts

5. Drive out fear

6. Preserve subordinate dignity

7. Address poor performance

8. Empower, don’t micromanage

9. Hire self-motivated people

10. Be a good boss


Intrinsic MotivationFour Building Blocks

1. Cultivate meaning awareness Positive work environment, vision, purpose, relevance, wholeness of tasks

2. Develop a sense of choice Delegated authority, trust, security, clarity, information

3. Develop a sense of competence Knowledge, positive feedback, skill recognition, challenge, standards

4. Develop a sense of progress Collaboration, milestones, celebrations, access to customers,

improvement measuresSource: Thomas, Kenneth W. Intrinsic Motivation at Work- Building Energy and Commitment. San Francisco: Berrett-Koehler Publishers Inc. 2000.



ExpectancyTheory of Motivation

Motivating Employees to Meet GoalsExpectancy Theory

MF= Motivation Force (towards goal achievement)

MF = Expectancy x Instrumentality x ValenceExpectancy asks: “Can I achieve the goal” (targets and skill level)

Instrumentality asks: “Is achievement (or non-achievement) of the goal linked to a reward (or consequence)?” Does it matter?

Valence asks: Is the reward (or consequence) meaningful to me?


Generation Y: Unique Factors (Born 1978-1998)

• Generational Factors: Entry-level EmployeesOver 14 million in workforce and growing Independent, tech smart, self-reliant, like flexibilityHigh expectations for rapid career growthGreater demand for work/life balanceHigh need for clear and frequent performance feedbackWant to be “paid volunteers” Independent, but with high socialization needsHardest group to retain


Performance Appraisals

• A formal method of assessing how well an employee is doing with respect to assigned goalsA natural extension of the performance management

continuumSoftware applications may assistAllow employee opportunity to self-evaluateSuggested 4 point Rating Scale: Did not meet

expectations, Developing, Proficient, Role Model


Performance Appraisals

• Common PitfallsA formal annual exercise with little real meaning

– Requires training for quality and consistency

– Requires real and honest evaluation, consistent with pre-established goals, coaching discussion, and measures.

Delays due to time-consuming nature, fear of confrontation (by manager), and staggered load (all at the same time).

– Delays a major dissatisfier for employees (do not care message)


Employee Development

• A key to retention, particularly for high-potential employees

• Convergence of: Company/department goals and objectives Employee aspirations and interests Employee development needs

• Assessment tools include communication, learning needs assessment surveys (manager and employee perspective), and KSA inventory databases.

• Tip: To avoid burning out talented employees, scale up and down (job re-design) when delegating new responsibilities.


Intractable Performance ProblemsConfronting Poor Performance (when all else fails)

• Confront poor performanceBased on a pattern of observation rather than an

isolated event.Directly (and privately) with the individual (not to a

group)Be specific about nature of the problem and the

ramifications on the organizationListen activelyMake specific suggestion or request. Keep a record of

what was said and agreements made.


Intractable Performance ProblemsWhat About “C” Performers?

The Toughest Challenge:• C Performers- do just enough to get by

Do not respond to performance management efforts

• Manager Barriers: Psychological and Practical• Impact of Ignoring C Performers:

Discredits leadership Block advancement of A and B Performers Poor Role Models/Examples Stifle enthusiasm of new hires and A and B performers Cause good performers to settle or leave C-performers multiply (hire other c-performers)


Intractable Performance ProblemsSteps to Address

• Decide to do something (first step)• Use “Iron Hand, Velvet Glove” approach• Identify A, B, and C Performers directly reporting to you.

(multi-rater system and scorecard)• Develop action plan with C performers through coaching

or performance evaluation process. • Hold Managers/Supervisors accountable for improvement

and/or removal of their C performers.• Look for “C” Clusters

Manager/Supervisor Issue Process improvement opportunity


Intractable Performance ProblemsWhen to Dismiss

Dismissal Almost Always Justifiable For:1. Consistently performing poorly (using objective criteria) on the

job2. Refusing to following instructions3. Have a persistently negative or destructive attitude4. Insubordinate behavior/disrespect of authority5. Abusing sick leave or other privileges6. Being chronically late or absent

1. Must be brought to employee’s attention, be documented, and persist thereafter.

2. Consult your HR Department/legal department for specific HR policies and procedures and/or state laws.

Recommended Resources

• Cole Miller, Brian. Keeping Employees Accountable for Results. New York: American Management Association, 2006.

• Thomas, Kenneth W. Intrinsic Motivation at Work- Building Energy and Commitment. San Francisco: Berrett-Koehler Publishers Inc. 2000.

• Harvard Business Review on Appraising Employee Performance. Boston: Harvard Business School Press, 2005.

• Bacal, Robert. Performance Management. New York: McGraw-Hill. 1999.

• Mager, Robert F., and Peter Pipe. Analyzing Performance Problems. Atlanta: Center for Effective Performance Press, 1997.

• Coaching and Mentoring. Boston: Harvard Business School Press, 2004.



ConclusionFollow-up Q&A, Contact Information

• Q&A

• Shared Best Practices

Mark E. Robledo

President, The Crossroads Group, Inc.

Tel. 888-412-0160, Direct 305-412-0160.

[email protected]

www.CrossroadsGrp.com/chc.htm