Rate this:

Introduction

As we know any company that wants to be world class should be highly customer and people focused. The processes and strategies should be supporting the intense Customer orientation and people orientation. In addition how to do things faster, better and cheaper should be a constant question.

Reviewing Our Appraisal System

In view of the above, current Performance Appraisal System might needs a review and re-visit and a few salient aspects are outlined below.

1. Software development is a team game and people work and perform together in a team. There is always an element of inter-dependence and certain factors which have impact on their productivity. A few examples of these could be behavior of peers, sub-ordinates and seniors, expectations from the boss, boss’ leadership style and availability of the required information & resources at the right point of time. If we work in an environment of inter-dependence then why our performance is measured at individual level. Can we assume that our current system is fundamentally supporting us in getting all these facts considered in the judgment?

    

2. This appraisal system is forcing people to compete against each other rather than competing against themselves i.e. improving their own capacity to accomplish their goals – and not against each other’s goals. Is our appraisal system giving a message to all that win of one person is a loss to someone else? Can we expect optimum synergy with these fundamentals at the base?

    

    

3. As we know, now the rate of change is fastest in entire human history (and it will tend to accelerate). Software Development can be compared with a game field with 2 sides. First side is composed of various E2E teams, Component teams, and various support groups and includes even the customer. Second side is composed of ‘business goals’, ‘business problems’, ‘constraints’, ‘issues’ & ‘risks’. The first side has to play with highest synergy possible to win over the second side. Even if one in the chain fails every one suffers. This encourages team work rather than individual heroism at component levels. We should encourage the same within components (project teams) also.

    

4. There are three parts of any performance system:

• Performance planning,
• Performance assurance( day to day coaching)
• Performance evaluation.

 

In the current appraisal system most of the attention is paid primarily to performance evaluation and other 2 aspects are left unheeded. The appraisers are encouraged to be transactional leaders (judges) rather than transformational leaders (performance coaches). Do we need judges or the transformational leaders? The need of the hour is possibly of transformational leaders who would mentor us in staying in the vanguard and ahead in the race.

As in Quality (QMG) we say about Prevention (training) cost, Appraisal cost and failure cost:  $ 1 spent in appraisal (reviews, testing etc.) cost will save $ 3 in failure cost and $1 spent in Prevention (training) will save $ 10 in failure cost.

Similarly for 3 parts of appraisal system, time spent in Performance planning and Performance coaching will save us enormous cost which we incur due to performance failure or (perceived) judgment failure i.e. grievance. The importance of Proper Performance Planning and day to day coaching (performance assurance) can’t be overemphasized. These elements will obviously have cost associated with them but benefits will certainly outweigh the cost by huge ratio. So investing in Performance planning and Performance Coaching is a smart investment by any yardstick.

1. The current appraisal system encourages people to put efforts in getting visibility with the decision makers. Primary focus is somewhat shifted to improving the boss’ impression and perception and having visibility with the higher-ups rather than fulfilling the customer expectations. Point to be pondered is whether this appraisal system not diverting people’s energy and focus from the basic reasons of our existence is i.e. fulfilling the needs of the customer and adding values for our shareholders. If yes then is it not proving counter-productive? Let me exaggerate this problem by comparing it with playing the tennis match with eyes on the scorecard rather than on the ball. Though this does not happen most of the time but it is bound to happen considerably. Are we not losing intangible but creative constructive energy due to this process? In a stiff cost-benefit driven environment such drainage of creative and constructive energy could prove costly.

    

2. Majority of the people will agree that, rapport and relationship with the boss will have significant (it can be deciding factor) impact on performance evaluation, as after all boss is also a human being. We tend to see positive qualities in someone who is nice to us and negative qualities in someone who is not nice to us. This emotional (subjective) factor can be very decisive.
   

    

3. Should the boss’ performance in mentoring and grooming the sub-ordinate be measured? At the time of entering PRD details should the employee’s feedback on his boss’ mentoring be considered? This would ensure a 360 Degree feedback process.

    

4. Also first impression is another factor which does not have any logical relationship with the person’s contribution in longer duration but unfortunately it also plays an important role in the last (evaluation time) impression.
   

    

5. If we don’t hire people on a performance review curve why grade them on one? Our current system forces managers to rate people as Excellent, Very good, good and poor performers. I ask managers (bosses) how many of them are thinking at hiring time ‘Let’s go out and hire some losers so we can fill some of our low slots. They laugh about it. Of course they don’t. We either hire winner or potential winners–people we think will perform well when they are trained and encouraged.

Over Hauling Present day Appraisal System

After the problem statements it is the time for solution now. Of course no performance appraisal system can be perfect. However leading Leadership and Management experts of the world have found this kind of system is not fulfilling the purpose and said that there is huge scope for improvement. It is not by internal competition but by internal collaboration we get optimum performance. It is not that improving the performance of individuals improves the performance but improving the performance of systems and processes improves the performance of the organization.

The performance appraisal system should be such which encourages team work, generates synergy at project, group and organization levels, creates win-win situation for Customers, Employees and Investors and most importantly ensures that the precious intangible creative energy does not go waste in unproductive activities. Here are some recommendations which can be considered to modify the appraisal system so that it promotes productivity and stakeholder’s satisfaction

 

• Performance planning should be given the deserved attention as in terms of cost-benefit ratio and people development, its importance can’t be overemphasized. Goal setting fundamentals needs to be used in our ideas system. An effective goal should be SMART. I.e. Specific, Measurable, Achievable, Relevant, Time bound.

   

  • Specific: – The goal describes a specific outcome as clearly defined, and unambiguous as possible.
  • Measurable: – If it could be made clear about what results will fetch which rating then it will not only ensure better goal achievement but also require fewer discussions at performance evaluation stage ( as the element of subjectivity will be removed).
    
  • We will arrive because the goal is Achievable. We have the skills, knowledge and resources to accomplish it.
    
  • The goal is Relevant to the larger mission of the customer or the organization or for skill development.
    
  • It’s also Time bound and can be accomplished reasonably in the intended timeframe.
    

   

• Day to Day Coaching (Performance Assurance): Feedback should be given as close as possible to the event, rather than withheld for future occasion.
  

   

  • This achieves maximum benefit in situations where:
    
    • Changes is required in event of poor performance
      
    • Positive reinforcement is required for good performance
      

 

• Many of us provide instant feedback but there appears to be a cultural shift required in the way we (many of us) provide it. People perform better we accentuate the positive and redirect the negative. A great book by Leading Management Expert Ken Blanchard ‘Whale done’ should be read by all our people managers to understand this important concept on day to day coaching.

 

• Another important Goal Setting fundamental is Goals needs to be frequently
  revisited to analyze the progress and whether any change required in strategy to achieve those. So auto generated mails can be sent to people on weekly/bi-weekly basis to remind them that ‘to help them achieve their goal this mail is sent to remind them that they need to revisit the goals in idea@s and analyze how they are progressing’.
  

   

• In our behavioral trainings ‘Goal Setting’ should be included. This will help everyone to know the ‘Goal Setting’ fundamentals and that will help them in achieving their Goals.
  

   

   

• Another point which could be considered for better goal attainment of people. Why can’t we have HR people to ensure that proper performance planning is done and proper SMART goals are set? Can some process on these lines be thought of?

   

• There can be 4 kinds of goals which can be set

   

  • Team (Shared) Goals: These goals will be common for the entire team and will be reflected in all team members Goals in ide@s.
  • Individual Goals: Individual Development goals or job requirements (expectations) goals
  • Subordinate Development Goals: For Managers to ensure people development.
  • CU/BU/Organization Goals: These can be set depending on the Seniority and expectation from the person.

     

• 50 % of the rating should be common for entire team. This will encourage team work, people’ focus on project’s goal and customer satisfaction rather than personal branding, positioning and selling. This common rating should be highly influenced by the customer’s feedback and project achieving its goals. Entire team can get 50 % common rating based on CSAT, ESAT, achieving the projects objective etc. With this the Agile concept of ‘A team wins together or loose together’ will be appropriately used.
  

   

• Concept of ‘Team Ratings adjustment factor’ can be introduced. The entire team will give 360 degree feedback for every team member based on which the Team Rating Adjustment factor for the person can be determined. The major parameter considered for this factor can be Dedication and team spirit of a person. This factor will be multiplied with the common team rating which is determined in above point.
  

   

• 35 % rating can be based on individual goals. Here important point which I would suggest is that all 100 % people can achieve full ratings if they all achieve their goals i.e. there is no relative comparison between people. All people can be winners. Bell curve can be totally removed as why we need losers anyways.

   

• 10 % rating can be given on BU achieving it goals and 5 % on Organization achieving its goals.

   

• Based on ratings calculated as per above formula, variable incentive should be given (P2P is an excellent step already taken. P2P’s semi-partnership model between the Organization and Employees is highly encouraging.).

   

• Most importantly variable pay break-up should communicate the message strongly to everyone that the team oriented culture will be encouraged.

   

• ‘Feedback is the breakfast of Champions’. As we follow Agile Methodology so some agile way of conducting quarterly appraisal needs to be figured out. The determined process should be made very clear to everyone. This process will be highly beneficial in implementing P2P as well.

   

• Feedback from the team should be taken on mentoring and performance coaching skills and people development oriented attitude of the Managers.

   

• The current appraisal system is enforcing the light green pyramid i.e. juniors work for their immediate senior, who in turn work for their seniors and so on. However to ensure the win for our customer this pyramid should be inverted and the one in sky blue should be followed i.e. everyone should be focused on the customer. Customer contact people (top layer of sky blue pyramid) will be directly working to delight the customer and all others will be working to support these customer contact people. The role of managers should be to Set Vision, Mission and Goals, define strategy, set processes, make plans, provide guidance and motivation, involve in performance planning and performance assurance (skill building) and most importantly to provide servant leadership i.e. removing obstacles from subordinate’s path. This Servant Leadership mindset by our Managers will ensure our customers win. The concept of Servant Leadership has been also proposed by leading management experts. With this approach the development of our most important asset (people) will be ensured – a significant step towards evolving into a world class organization!!!
  

 

Happy Appraisals…

Advertisement