Predictive Performance Analytics

Increasing the probability of a positive outcome

Predictive

Performance Analytics

The Performance Management Challenge

58% of organizations rate their

performance as Grade C or belowOnly 8% of companies report that

their performance programmes

prove high levels of value

Only 6% of executives said their

performance management process

was an effective use of time

58%8%

) )) )))))))

feel comfortable having difficult

performance conversations

managersOnly 2 10

6%

A Shift in Perspective)

Um...good luck.

You’ ll probably

make it. I’m almost

fairly certain.

)

I’m confident you

can get there now

that we know what

it’ll take.

Performance management is about

understanding what it will take to achieve

the goals and then equipping and supporting

the person to achieve them

Performance MeasurementPerformance measurement focuses on setting,

measuring and incentivising goals, without taking

into account the person’s ability to achieve them

From performance measurement to performance management

Performance measurement Performance management

Your Role as a ManagerIn order for a performance process to

improve performance you need to:

)

A+D-A+

Understand Identify SupportEquipWhat is required

to get there

What might cause the

person to fail

The person with the

resources to achieve their

goals

The person with the skills and

resources for success

D-

The result...

92% of employees agree that corrective

feedback, if delivered correctly, is effective at

improving performance

92%

The Current Performance Paradigm

Metrics are important for managing performance:

“If we can measure it, we can manage it’

Metrics need to be SMARTThe less ambiguous a metric, the better it is

Metrics should be task specificMeasurement needs to be directly related to the context

of the job

The performance

management challenge

These paradigms are valid when the purpose is to:

MotivateReward people for the accomplishment

of a specific goal or outcome

CommunicateTell people specifically how and where

to focus their energy and effort

An additional

performance paradigm

These paradigms are NOT valid if the purpose is to:

DiagnoseUnderstand why someone

is not achieving a specific goal

PredictDetermine the likelihood that

someone will successfully achieve a goal

Note:The new approach is not a substitute for

the current performance paradigm, it is an

additional perspective for increasing the

probability of a successful outcome.

Using both

performance paradigms

Ssjsijnfnsdjvn

CommunicateScore more goals than the

other team

Motivate $1 million per player

DiagnoseWhat dimension/s of performance are

required for success? e.g. the ability of the

captain to motivate the team when down

PredictWhat is the likelihood that this will

happen? i.e. does the captain have the

ability to motivate others?

Situation: Performance manage your country’s soccer team to win the next World Cup

1 slight change

Communicate Score more goals than the other team

Score an average of 2 goals per game

When the current paradigm fails

• Individual performance is more important that team performance

• Failure to score 2 goals in one game (against a tough team) can

be compensated for by scoring more goals in another game (against an easier team)

• It doesn’t matter if the other teams score 3 goals each game, as long as you score an

average of two.

• Making enough money to pay the $1,000,000 is not my problem.

• I have no interest in whether anyone else gets a bonus, and therefore they will have no

interest in me achieving mine.

• If I score an average of 1.8 goals per game, I still want some bonus, and if I average 2.5,

I want a bigger bonus, regardless of how we perform in the league.

What will this communicate and how will it motivate?

Copyright PeopleTree Group 2016

Why the old paradigm gets in the way

While this is partly true, it relies on “managing” after the fact, i.e. only when the

person is off target, or has missed the target, which may be 12 months later,

can you act.

The new paradigm relies on predicting what factors may cause the person to

miss the target before they even start trying to achieve it.

You can then proactively allocate, or re-allocate, resources to prevent failure

and support success.

Metrics are important for managing performance:

“If we can measure it, we can manage it’


Once again, this is useful if the task or outcome is not particularly complex, i.e. it does not rely

on the co-operation of, or collaboration with other people or functions; it is achievable in the

short term; the environment doesn’t require constant adaptation to changing conditions etc.

The new paradigm deals with dimensions of performance, e.g. the quality of the work a team

produces; the ability of a person to deliver (any result) on time; the ability of a group to

innovate (when the specific outcome is undefined).

Most work takes place in a changing, ambiguous, undefined context. By being able to focus

on the dimension of performance, the specific outcome can adapt to the specific context.

“Metrics need to be SMART”

The less ambiguous a metric, the better it is



Although specific goals may change as targets shift, new projects are rolled out, processes

change and people move, research has shown that performance against a specific dimension,

e.g. on-time delivery remains relatively constant.

The new paradigm recognizes that if time management, priority setting and technical

proficiency are not strengths of a particular individual, they will consistently struggle to deliver

on time, regardless of whether it is a new project, a new process or a new team (unless the

team are able to compensate for the weaknesses).

In other words, the likelihood that someone with a certain behavioral profile will change their

behavior, and therefore have a different performance outcome, is limited.

“Metrics should be task specific”

Measurement needs to be directly related to the context of the job


What we know from research

There are certain generic predictors of performance:

• Energy and drive (achievement orientation)

• Conscientiousness (big 5 personality factor)

• Social awareness (Emotional Intelligence)

• Functional competence (Technical proficiency)

Job specific/contextual requirements

• Extraversion (Sales)

• Agreeableness (customer service)

• Conscientiousness (Engineering)

• Emotional stability (call centers)

• Openness to new experiences (creativity/innovation)

Can we expand these dimensions to predict the

probability that an individual will successfully achieve a

given performance outcome based on the role they are

required to play?

How a performance

issue is describedWhen managers see a performance problem for

an individual contributor, they may often describe

it like this:

• Low personal motivation/Lack of drive

• Negative attitude/Lack of willingness

• Lack of initiative/proactivity

• Lack of technical competence/ability

• Lack of autonomy/Inability to work independently

• Poor quality of work/output

• Low personal productivity/ Poor use of time

• Inconsistent delivery/Lack of reliability

• Lack of responsiveness/Slow reaction time

• Lack of teamwork/collaboration

• Poor customer service level

There is a direct correlation between these

observed performance dimensions and the

behavioral characteristics of the individual.

Observed behavior: Poor quality of work/output

Identifying the underlying cause

Bright

Demonstrates

good judgment

Detail-orientated

Improves processes

Technically competent

Has difficulty grasping complex concepts or ideas, over simplifies

them and lacks the necessary depth of understanding

Shows poor judgment and does not anticipate the consequences

of decisions, or has taken wrong decisions previously

Appears disorganized and lacks attention to detail

Overlooks or appears to be disinterested in opportunities to

improve work processes

Lacks critical functional and technical knowledge and skills to do

the work

Diagnose and predict


Performance dimensions for individuals

1) Delivering high levels of customer service

Delivering a high level of customer service requires people

to build and manage relationships with customers, always

keeping the customer's needs in mind. This requires a

willingness to actively engage with people as well as using

diplomacy to manage any potential conflict. People who

excel at customer service are great listeners and make the

customer feel that they are working for them.

2) Working well with others

People who are approachable, collaborative and care about

relationships are much easier to work with than those who

don't. Almost all jobs require the help and co-operation of

other people in order to be successful.

3) Personal motivation and drive

High levels of personal motivation and drive increase the

discretionary effort that a person is willing to make. High

performance requires high levels of person energy, and if this

drive is not there, it is difficult to achieve performance targets.

4) Producing high quality work/output

To produce high quality work you need to pay attention to

the detail, reduce the number of errors in the work you do

and meet prescribed quality standards. This means constantly

learning from experience and becoming more competent at

your job.

5) Consistently delivering work on time

Delivering work on time requires planning and good time

management. People who have a high level of personal

responsibility are also more conscientious and make sure they

deliver on promises.

6) Being responsive and reacting quickly

Being responsive requires a degree of flexibility which allows

you to re-prioritize tasks so that you can react quickly to

changing needs. It also requires a sense of urgency and a

commitment to do more than only what is required.

7) Working independently

The more direction a manager has to provide to someone in

order to get there job done, the more time and effort it

requires from that manager. The better you know you job, the

more independently you can operate and this is a quality that

managers value in high performers.

8) Taking initiative

Opportunities will always arise to do things more effectively,

and these opportunities cannot be captured in a job

description or list of tasks. Seeing, and taking these

opportunities means having a problem solving mindset and

requires a willingness to take calculated risks that could lead to

better ways of doing things.


Performance dimensions for individuals (Exercise)

What this looks like

Describe what the performance

dimension would look like in the job context.

Rating

Rate 1-5

Dimensions

Identify the 3 most important

performance dimensions for this person’s job.

1 - Well below expectations

2 - Below expectations

3 - Met expectations

4 - Above expectations

5 - Well above expectations

1) Delivering high levels of customer service

2) Working well with others

3) Personal motivation and drive

4) Producing high quality work/output

5) Consistently delivering work on time

6) Being responsive and reacting quickly

7) Working independently

8) Taking initiativev

1

2

3

Overall Rating (1+2+3)/15) x 5

Performance dimensions for managers

1) Increase levels of motivation in my team

Creating high levels of energy in a team requires high

levels of personal energy because most people will copy

what they see. Understanding and being able to apply

different motivational techniques that reward and recognize

contributions and unify people is important to get the best

out of a team. People will also contribute more discretionary

effort to a task if they feel appreciated and connect with the

person they work for.

2) Get access to resources (people/money/time)

Getting access to resources as a manager is competitive,

because resources are limited and whatever you get,

someone else loses. In order to secure the resource you will

need, you first have to know where to find them, who to speak

to and how to negotiate. Once you have the resources you

need, you need to prioritize and decide when, how and to

who you will distribute those resources to be most effective.

Making the most of the resources you have requires a

practical and resourceful mind.

3) Deliver against tight deadlines

To consistently deliver on time requires a team that

knows what they have to do and when they have to have to

do it. Empowering that team to deliver and then monitoring

progress ensures that the work is done through others, but

there are no surprises. There will inevitably be a time that

critical tasks are not done on time, at times like that quick

and decisive action is needed to confront non-performance.

Constant time pressure also means continuous high levels

of energy and determination in the face of adversity.

4) Stay customer/market focused

To be customer focused or market aware requires information

about customers and markets. Data can be a powerful tool

for analysing market forces and customer trends, but social

contacts are critical in order to get qualitative insight and

identify leading indicators of change. This information needs

to be understood in the bigger context of your business, and

new connections should be made as early as possible, which

requires keeping an open-mind.

5) Compliance to policies and procedures

Ensuring compliance to documented policies and

procedures requires a high level of conscientiousness and

detail orientation.


6) Generate innovative solutions from my team

Managing innovation in a team doesn't necessarily require you

to come up with the ideas, but it is important to have an open

mind to what is different. Innovation should focus on fixing a

particular problem in a new way that makes things easier,

faster, cheaper or better. Deciding on which ideas to invest in

and test means having a good sense of judgment which

combines analysis and intuition.

7) Work with other functions to achieve a common goal

There is a natural tension between functions in a business

which often results in a conflict of interests and competition

for resources. The ability to manage this conflict constructively

and reach win-win agreements is a critical part of building a

strong business.

8) Improve the quality of my teams output

Once people have a clear sense of what they need to do and

by when it needs to be done, the quality of team output is

driven by two forces. A pull force that encourages and

motivates people to achieve high standards, and a push force

that sanctions or holds people accountable for poor quality.

9) Set a clear direction for my team

Setting direction means understanding the big picture and

how all the pieces fit together so that you can simplify and

communicate individual responsibilities and accountability to

those involved. People need clarity of purpose and should

also feel empowered with the authority and resources to

achieve the goals that are set.

Performance dimensions for managers

Performance dimensions for manager (Exercise)

What this looks like

Describe what the performance

dimension would look like in the job context.

Rating

Rate 1-5

Dimensions

Identify the 3 most important

performance dimensions for this person’s job.

1 - Well below expectations

2 - Below expectations

3 - Met expectations

4 - Above expectations

5 - Well above expectations

1) Increase levels of motivation in my team

2) Get access to resources (people/money/time)

3) Deliver against tight deadlines

4) Stay customer/market focused

5) Compliance to policies and procedures

6) Generate innovative solutions from my team

7) Work with other functions to achieve a common goal

8) Improve the quality of my teams output

9) Set a clear direction for my team

1

2

3

Overall Rating (1+2+3)/15) x 5


Click here to see how

the Youlab process works

The new performance paradigm

does not replace the current one that is

“metric-centric”, it compliments it.

The new paradigm is future-focused

and creates the ability for diagnosis (why

something happens) and prediction (what

will most likely happen).

The new paradigm works with dimensions

of performance, rather than with specific

targets and goals, which more closely aligns

with the need for people and companies to

adapt to changing conditions.

The new paradigm correlates behavior

with the ability to achieve a particular

performance outcome when someone

is acting in a specific role.

The new paradigm recognizes that

behavioral change can be difficult and take

a long time to occur. A person’s ability to

achieve a performance outcome that is

dependent on their strengths is significantly

better than their ability to achieve an

outcome that depends on their

weaknesses.

The purpose of the new paradigm is to

increase the probability of a successful

outcome by identifying the possible causes

of failure ahead of time and taking steps to

minimize or neutralize them.

Summary

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