So, we got something from a fan and we just had to share this.
So a colleague of mine told me about this “new automated performance management system”.
I was not very excited…
Now I had the usual problems. Like people being very busy.
You have a business unit. You need to manage its performance. Seems simple enough, but what is “performance management” really?
Performance management consists of three principal steps: 1) set expectations/goals, 2) measure performance/outcomes, 3) adjust to improve.
Our Summary: Performance Reviews, as long-cycle (date-driven) top-down insincere processes, are an abomination that should be replaced by short-cycle (regular) conversation where boss and manager are codependent.
Our take: While Culbert doesn’t offer solutions per se, the very fact that WSJ posts something so black and white supports our approach. At this point, “Performance Reviews” really is taken to mean “long-cycle reviews” and here we completely agree. However, short-cycle reviews are still reviews, so we believe that the solution being proposed (albeit vague) is also a performance review… just a short-cycle review that is integrated into management. Continue reading
According to the 2012 US Census, from 1978 to 2008 individuals who aged from 18 to 44 held an average number of 11 jobs. Compare that to the industrial age, when you were lucky to have a job. Quite the change.
So what happened?
Our summary: lack of transparency creates opportunity for problems. No lack, no problem. Namaste Solar is successfully transparent about salary information. SumAll is transparent about cap table. Transparency and and having everyone participate results in better culture and retention.
Our take: YES! We are big believers in radical transparency. Bridgewater is worth mentioning. That said, it is important to ensure structured communication and distribution of information, or transparency may affect scalability. It is also important to couple transparency with fair treatment/compensation and a voice. Continue reading
Our Summary:
Our take: this is only for people who want a steady “salary”. We recommend that you focus on the value that you are bringing with a particular focus on the bottom line and impact on the business. Also, address the question of “How are my peers/company going to work with me to reach our goals?”. Granted, this advice is not for everyone, but what most outcomes-focused employers would like to hear in response to “How much should I be paid?” is “What is the value that I bring and how can it be maximized?”. As an employer ourselves, we don’t want to hire someone who walks in demanding high base and no variable outcomes-based compensation. We want people to work with us, not for us. Continue reading
Our Summary: Companies are radically changing their performance appraisal processes moving away from annual long-cycle appraisals towards short-cycle ongoing workflows. Annual reviews are an artifact of the past – they cause significant problems and the industry is evolving. Many are hesitant to embrace change, and the article offers some guidance, which is primarily focused on employee/goal-centric view with regular feedback loops.
Our opinion: we agree and consider ourselves to one of the pioneers in short-cycle live-360 appraisal process systems. Continue reading
Our Summary: Criticizing employees in private is not healthy for the team. A better approach is to, respectfully, raise the issue in a team meeting driving, peer accountability.
This relates to FairSetup in a huge way – the very process that we recommend to our clients encourages group feedback. There are several elements here: Continue reading
The author goes to an Asian city and tries to get on the bus. The bus keeps passing by. Why? Because the bus driver’s bonus is connected to being on time, not servicing customers, resulting in a behavior that is opposite to that which would be optimal. This model is the focus of the article. Conclusion: be careful about identifying what’s important and how you drive participation. Continue reading
It was fascinating for us to read about the Top 50 problems with Performance Appraisals on ERE. It was even more amusing to identify how FairSetup addresses most of these problems.
The article written by Dr. John Sullivan starts out with a promising quote:
90% of performance appraisal processes are inadequate. –Salary.com survey
OK, something we already know. He goes on to say: