Managing Performance - Main Guide FV April 15 v1.1

Good performance management helps everyone in the organisation to know: •what the business is trying to achieve •their role in helping the business achieve its goals •the skill and compe

INTERNAL USE ONLY

A COMPLETE GUIDE TO

PERFORMANCE MANAGEMENT

• What is Performance Management?

• Why is Performance Management Important?

• Roles and Responsibilities

• Performance Management: The Key Elements

WHAT IS PERFORMANCE MANAGEMENT?

Managing performance is a continuous process which involves making sure

that the performance of employees contributes to the goals of their teams and the business

Good performance management helps everyone in the organisation to know:

•what the business is trying to achieve

•their role in helping the business achieve its goals

•the skill and competencies they need to fulfil their role

•the standards of performance required

•how they can develop their performance and contribute to development of the organisation

•how they are doing

•when there are performance problems and what to do about them

Helps us get the best out of employees

Which helps us achieve more as a team

Creates a fairer, consistent process where good performance is

ROLES AND RESPONSIBILITIES

The Five Key Elements Line Manager Employee

1 Setting expectations and

agreeing objectives

• Organise a meeting with each of your subordinates

to agree a set of objectives

• Do not set too many objectives.

• Make sure the objectives are achievable, but also stretching.

• Ensure employees know how the objectives relate to the organisation and department’s goals

• Ensure objectives are set together with your line manager, to ensure both of you have the correct expectations of what needs to achieved by the end of the year.

• Choose objective you are happy with and feel will challenge you throughout the year.

2 Measuring and assessing performance

• Organising monthly or more regular one-to-ones

• In these meetings discuss performance and give honest constructive feedback.

• Make sure the employee knows how well they are performing in relation to their objectives throughout the year.

• Making sure you and your line manager have a monthly one-to-one in the diary.

• Ask whether your performance is on target.

• Ask how you can improve.

3 Giving regular feedback

•You need to ensure you give employees constructive feedback to help them improve.

• This feedback should be positive as well as constructive.

• Make sure you ask for regular feedback from your line manager and other people you have produced work for

• Take the feedback on board and use it positively to improve your performance.

4 Development planning

•Ensure that each employee has a development plan.

•Work with the individual to develop this plan with areas that could be improved to achieve their target that year.

• Give advice and examples of what development objectives and plan could be in place to achieve to reach this target.

• You should think about what you want to achieve within the year and discuss this with your line manager

•Lay out an achievable number of development objectives

• You need to think of your greatest strengths and build on these as well as developing your weaknesses

•In terms of activities, will you be learning on the job or will you need some learning options outside of your role?

5 Improving performance issues

•Identify why these performance issues are happening

• Discuss them honestly with the employee and support them in combating these issues.

•You need to regularly ask for feedback

• Make sure you listen to your line manager and use their advice to improve your performance.

What are objectives?

Objectives are the activities an employee is expected to perform in their role They

typically refer to outputs, such as:

•the number of new customers recruited by the end of the year

•the time it takes to clear an invoice or process an application

•the quality of a product, for example, improving customer satisfaction by 25% over the coming year

•the money that is generated in sales

These objectives should be agreed with the employee, as this will make them more relevant If you have several people doing the same job, it may be worth agreeing

common objectives

Please refer to the “Capturing Objectives Form Template” for further information

1 SETTING EXPECTATIONS AND AGREEING OBJECTIVES

How do I set objectives?

Objectives should be based on an employee’s job description and form part of the wider aims of the team and business They provide a link between the job of the individual and the business vision, giving an employee some wider context for the work they are doing

The ‘SMART’ acronym is a useful way of getting objectives right Objectives should be Specific, Measurable, Achievable, Relevant, Timebound:

1.Specific – objectives should state a desired outcome What does the employee need to achieve?

2.Measurable – how will you and the employee know when an objective has been

achieved?

3.Achievable – is the objective something the employee is capable of achieving but also challenging?

4.Relevant – do objectives relate to those of the team/department/ business?

5.Time bound – when does the objective need to be achieved?

PERFORMANCE MANAGEMENT – THE KEY ELEMENTS

1 SETTING EXPECTATIONS AND AGREEING OBJECTIVES

What’s the difference between objectives and competencies?

If objectives describe the output achieved by an employee – the ‘ends’,

competencies describe the qualities an employee needs to reach these ends – ‘the

means’ For example, a hotel receptionist clearly needs to look after guests as they

arrive The receptionist might have:

•Objectives for checking in each guest within five minutes of arrival and answering

all calls within three rings, and

•Competencies for ‘customer care’, setting out the standards of politeness and

appearance required to meet the objectives, and ‘communication’, setting out the

oral and written clarity needed to avoid confusion or misunderstandings

Many employers, particularly in smaller firms, combine objectives and

competencies For example, you might agree that ‘customer care’ is a quality that

should be demonstrated by meeting objectives for answering the phone, smiling at

guests on arrival, wearing the correct uniform etc For other employees, particularly

those who are not customer-facing, job performance is often measured purely by

objectives met

1 SETTING EXPECTATIONS AND AGREEING OBJECTIVES

Giving regular feedback is an essential part of the performance management

process Feedback means that employees know if they are doing the right thing, how well they are doing and what they could be doing better

Feedback should be two-way (i.e colleagues should be able to feedback to their line managers too) Feedback can be:

• In the moment (i.e Just after a piece of work is completed)

• Given during scheduled one-to-ones (e.g monthly)

• Given at year end reviews

• Collected from a number of sources (i.e peers, managers, direct reports)

• Discussed regularly

A good approach to take with performance management is ‘No Surprises’, in other

words employees should know how they are performing and it shouldn’t be a surprise

if they find out they have not been doing a good enough job all year

Please refer to the “Monthly One to One Form Template” for further information

PERFORMANCE MANAGEMENT – THE KEY ELEMENTS

2 GIVING REGULAR FEEDBACK

Sometimes giving feedback involves having difficult conversations This word bank gives some suggested word patterns to use:

Positive Feedback

I was very impressed when you

You stepped out our comfort zone

to which was impressiveThe way you handled was excellent

You thought outside the box on

You’ve helped to improve

You’ve worked very well with

You’ve really helped improve

Developmental Feedback

There were quite a few errors in

I’ve had feedback that you’ve not

I thought you could have done more on

I don’t feel you have fully achieved this

objective

It would be good if you were taking more

ownership for

Open Questions

How do you think this month/year has gone?

What would you do differently?

What are your key achievements?

What do you think are your development areas?

2 GIVING REGULAR FEEDBACK

What are one-to-ones?

One-to-one meetings are part of a healthy, positive management process and are an essential process through which employees and line managers can communicate constructively about work matters and provide a valuable coaching opportunity Discussions will include:

•The employee’s work and wellbeing;

•Their team involvement; learning and development;

•The support provided by their line manager

•Values and Behaviours observed

One-to-one meetings compliment the annual performance management cycle and specifically the end of year review Effective one-to-one delivery throughout the year should result in motivation for employees and lead seamlessly to an annual review that is able to be a positive experience with

no surprises focusing on development and future planning.

PERFORMANCE MANAGEMENT – THE KEY ELEMENTS

3 MEASURING AND ASSESSING PERFORMANCE

The Purpose of One-to-One Meetings (1)

•To ensure that the employee receives support and feedback on their performance and to check that objectives remain achievable yet stretching whilst still aligned to the needs of the business

•A two way discussion to ensure that both line managers and employees are aware of each others views, ideas and feelings.

•To provide the time and space to build relationships that foster an open and trusting environment This should promote two way feedback that is prompt and direct in order to identify potential opportunities and challenges quickly.

• An opportunity for line manager and employee to discuss individual performance and to evaluate achievements and highlight problems

•A review of development / career planning should be undertaken and this should encompass developing skills, knowledge and ability.

3 MEASURING AND ASSESSING PERFORMANCE

The Purpose of One-to-One Meetings (2)

•An opportunity to raise and discuss any concerns around attendance, sickness and time keeping

•An opportunity for coaching to take place with line managers helping employees develop decision-making capabilities and problem solving skills.

•To clarify an employee’s role, responsibilities, the standards required and their accountability.

•One-to-ones also provide an opportunity to undertake pre and post training briefings of any training during the period so that the learning can be embedded and further developed.

Please refer to the “Year End Appraisal Template” for further information.

PERFORMANCE MANAGEMENT – THE KEY ELEMENTS

3 MEASURING AND ASSESSING PERFORMANCE

Prepare Follow-up

• Schedule meeting –

ensure employee

has time to prepare

• Book meeting room

• Set aside time to

• Consider what you

are going to say

• Get in the right

frame of mind

• Document agreed actions

• Follow-up on tasks resulting from review meeting

• Monitor more closely particular areas of focus over next review period

Agree Actions &

Next Steps

Agree Actions &

Next Steps

Identify Strengths &

Areas for Development

Identify Strengths &

Areas for Development

Review Performance

& Rating

Review Performance

• Describe preparation activities

• Review objectives

• Performance against targets

• Performance against standards

• Indicative Performance rating

• Strengths based on evidence

• Areas for development based

• Grab Attention with Evidence

• Deal with Situation not Person

• Be Warm & Friendly

• Be Present

• The feedback felt objective rather than subjective

• I had time to think and a chance to respond

• I was listened to

• I understood what was being said

• I was reassured / encouraged

• I learned something about myself

• I had time to prepare

Development Plans play a key role in providing employees with a framework that will help to build new skills, refine behaviours, and acquire different experiences In turn, this will improve business performance year on year, as the employee develops both personally and professionally

Getting started

A development plan should include:

•What is needed to develop in current role, increase knowledge and skills and improve on personal behaviours.

•Development for both job specific expertise and for overall competencies.

•Aspirations for long-term career and how to work towards them.

•Realistic timescales and deadlines for accomplishing activities

•Timescales for meeting to discuss progress

PERFORMANCE MANAGEMENT – THE KEY ELEMENTS

4 DEVELOPMENT PLANNING

What does a good development plan look like?

It should contain up to three development areas to focus on to address skills, behaviours or career aspirations

An employee should ask the following questions:

•What do I want to achieve this year?

•What are my greatest strengths and how can I build on them?

•Do I have any development areas that make it difficult to do my job or prevent me from reaching my goals?

•Career discussions – where am I going, where do I want to get to?

•Do I need to consider feedback I’ve received from my manager, peers and their suggestions for being more effective?

•In terms of activities, will I be learning on the job or will you need some learning options outside of my role?

4 DEVELOPMENT PLANNING

Hints and tips for employees.

• Think creatively about development activities For example, move beyond training to consider work shadowing, mentoring, informal coaching, creating additional roles/responsibilities, team presentations etc

• Remember that great development plans are: owned by YOU, focused on strengths and include a range of targeted activities

• Development plans are about skills, personal behaviours and the realisation of career aspirations

Example Development Plan

PERFORMANCE MANAGEMENT – THE KEY ELEMENTS

4 DEVELOPMENT PLANNING

I wish to learn more about my leadership

skills and how I can alter my style to be a

more effective leader

1 Ask for 360-degree feedback and identify 2-3 development areas.

2 Undertake a mentoring role for…

3 Assess my personal style in meetings and discuss key successes and areas for development with line manager

1 By end Q1

2 By end Q2

3 By end Q3

I would like to undertake further training

on Excel to facilitate the financial

analysis undertaken within my current

Review available courses Search for online tutorials via Google Ask colleagues for support

5 IMPROVING PERFORMANCE ISSUES

Regular one-to-ones and the end of year performance review consider an employee's objectives; how well they have performed against these objectives; whether the

employee was given the tools necessary to accomplish their tasks; performance areas

to improve; and what the employee has not accomplished that was expected, and why

Where areas for improvement are identified and/or it is considered that an

employee's performance is below expectation, this should be addressed You must

begin by finding out exactly why the employee is not meeting your expectations

Perhaps the employee is unclear about what you want them to do Determine whether issues exist that limit the employee's ability to perform the task or accomplish the

objective Four common barriers are time, training, tools, and temperament

Hold a one-to-one with the employee to identify the cause for the poor performance Once you understand the issues, put steps in place to help the employee succeed and overcome the barriers

Please refer to the “Performance Improvement Plan Template” for further information