【人力资源绩效考核】合益HGPM【绩效管理

1、随心编辑,值得下载拥有! LOGO beikezhang YOUR COMPANY NAME IS HERE 专业I专注I精心I卓越 【人力资源绩效考核】合益 HGPM【绩效管理 Steve Sherretta August 8, 2020 Performance Management: Enhancing Execution Through a Culture of Dialogue Peter is Chief Executive Officer for a medical supply multinational that recently crafted a new strategy

2、to counter competitive threats. The plan stressed the need to cut cycle time, concentrate sales on higher-margin products and develop new markets. walkaround t Four month s after circulating the plan, Peter did a to see how things were going. He was appalled. Everywhere Peter turned people, departme

3、ntswhole business units simply didn “ get it. ” First surprise: Engineering. The group had cut product design time 30%, meeting its goal to increase speed-to-market. Good. Then Peter asked how manufacturing would be affected. It turned out the new design would take much more time to make. Total cycl

4、e time actually increased. “ Our strategic plan message is not really getting through, ”Peter thought. Second surprise: Sales. The new strategy called for a shift emphasize high margi n sales rather that push ing product dow n the pipeli ne as fast as possible. But just about every salespers on Pete

5、r spoke to was mak ing tran sacti onal sales to high-volume customers; hardly anyone was build ing relatio nships with the most profitable prospects. Sales is doing just what it s aPeOyistdonght . Worst surprise: Even his top team, the people who d helped him craft the strategy, was n ot stick ing t

6、o pla n. Peter asked a team member:“ Why are you spending all your time making sure the new mach inery is worki ng in stead of develop ing new markets?” “ Because my unit s chief goal was to improve on-time delivery,” he an swered. “ But what about company goals? ” said Peter.“ We came up with a goo

7、d pla n and com muni cated it very clearly. But no where it isn being carried out. Why?” Many orga ni zati ons create good strategies, but only the best execute them effectively. Fort une magaz ine estimates that whe n CEOs fail, 70% of the time it s because of bad execution.by Ram Charan and Geoffr

8、ey ColvFprtune magazine, June 21, 1999. Weak execution is pervasive in the bus in ess world, but the reas ons for it are largely misun derstood. Why is it that no one in Peter s organization was acting in sywcth the strategy? Uni ess we un dersta nd the reas ons, we can t hope to solve the problem.

9、Imagi ne some one hitt ing a tennis ball. When the brain says“ hit the ball, ” it doesn t automatically happen. The message travels through n erve pathways dow n the arm and crosses gaps betwee n the n erve cells. Why CEOs Fail, These gaps, or“ synapses, ” are potential breaks in the connection. If

10、neurotransmitters don t carry the message across the gap, the message never gets through, or it gets distorted. When that happens, either the arm doesn t move at all, or it moves the wrong way. Creating a“ culture of dialogue” s not. T Just like a nervous system, organizations also have gaps that bl

11、ock and distort messages. The secret to effective strategy execution lies in crossing hierarchical and functional gaps with clear, consistent messages that relay the strategy throughout the organization. Sound simple? It reason is that the“ neurotransmitters ” in organizations are human beings execu

12、tive team members, senior managers, middle managers and supervisors whose job it is to make sure that people s behavior is aligned with the overall strategy. Doing what it takes to achieve alignment is very difficult. It is what Ram Charan calls, the“ heavy lifting management, and it s the ktoeyexec

13、uting strategy. As we ll see later, there is an important difference between companies that successfully align behavior with strategy and those that do not. Companies that effectively execute strategy create a“ culture of dialogue. ” A culture odf ialogue encourages pervasive two-way communications

14、where individuals and groups 1) question, challenge, interpret and ultimately clarify strategic objectives; and 2) engage in regular performance dialogue to monitor behavior and ensure it is aligned with strategy. Three keys to managing performance A culture of dialogue doesn t happen instantly, any

15、 more than a fluid tennis stroke does. It takes practice, persistence and hard work. So how exactly can leaders ensure that strategy messages go all the way down the line that the tennis ball gets hit correctly? The three keys to managing performance effectively are: 1. Achieving radical clarity by

16、decoding strategy at the top. Many organizations think they send clear signals but don t. In some cases, managers subordinate broad strategic goals to operational goals within their silos. That s what happened with Peter s top team. Elsewhere, top team members often have too many “ top ” priorities

17、we ve seen as many as 100 in one case which results in mixed signals and blurred focus. Strategy decode requires winnowing priorities down to a manageable number as little as five. 2. Setting up systems and processes to ensure clarity.Once strategy is clear, organizations must create processes to en

18、sure that the right strategy messages cascade down the organization. These include: strategy-centered budget and planning sessions; staff and team meetings to discuss goals; performance management meetings; and talent review sessions. Dialogue drives all these processes. Each represents a “ transmit

19、ter opportunity, ” where strategic messages are conveyed and behavior is aligned with goals. 3. Aligning and differentiating rewards. Leaders must make sure rewards encourage behaviors consistent with strategy, which sounds easy but isn t. Differentiation is about making sure that stars get signific

20、antly more than poor performers. But almost everywhere managers distribute rewards more or less evenly. As we ll see, lack of effective performance dialogue is a key contributor to dysfunctional reward schemes. We list these three items separately but they are, of course, interconnected. Systems and

21、 processes depend on clarity from the top. Differentiation and alignment of rewards depend on managers using performance systems effectively. Dialogue is the glue that holds it all together. But not just any dialogue will do. It must be dialogue with purpose, focused on performa nee. Link to eompa n

22、y valuati on Compa nies that man age performa nee well Gen eral Electric comes to mi nd have higher market valuatio ns. Why? Because, more and more, in stituti onal in vestors view strategy executi on as a vital factor in flue ncing stock prices. Just a few years ago in stituti onal inv estors relie

23、d almost exclusively on finan cial measures for compa ny valuati ons. Now 35% of a market valuati on is in flue need bynon-finan cial,intan gible factors, accordi ng to a study by Ernst HIGHLIGHT SECTION 3; MAKE IT POP GRAPHICALLY Clarity matters Why do employees crave clarity? Think about it. What

24、could be more demoralizing than the realization that your hard work is not contributing to overall company goals? Emplo yees want to do the“ right ” thing, but they can only do so if they know what the right thi ngs are. Unfortun ately, as we saw in our ope ning vig nette, compa nies ofte n don com

25、muni cate strategic goals effectively. An oil refi nery clie nt, for example, set a strategic goal to cut costs. To see how well the message had gotte n through, an operatio ns team leader held a strategy decode sessi on where he quizzed his team members on what they felt was the chief priority. Ten

26、 team members produced four different“ top ” objectives, including cost cutting, safety, environmental compliance and reducing sales processing time. The message hadn t got through. The team leader called his team together and created a “ transmitter opportunity. ” “ Don t you guys realize that if w

27、e can t cut our refining costs by three cents a gallon, they re going to shut us down? ” he said. “ Is that all you need us to do?” replied the team members, taken aback. United by a clear direction and shared ownership of the cause, team members enthusiastically cut costs byfive cents per gallon ov

28、er the following year while continuing to maintain good safety and environmental records. Narrowing priorities Having too many priorities can lead to lack of clarity. AeroMexico, for example, had worked with a strategy consulting firm that delivered a 249- page report listing key performance indicat

29、ors (KPIs) for measuring progress by the enterprise. The good news was that the KPIs gave the top team metrics for measuring success. The bad news was that there were 100 of them, and they weren t prioritized. “ It was clear that execution would suffer unless we identified the most important ones, s

30、ays AeroMexico CEO Arturo Barahona.“ So we discussed which ones connected most directly with our strategic priorities and where we were in the business cycle, and each team member settled on five chief goals. ” By gaining clarity on key objectives, the team greatly increased the odds that signals wo

31、uld transmit clearly down the line. Getting buy-in at the top Hay re search on teams has shown that it s not uncommon for team members to nod their heads in agreement when new strategies are set in dialogue meetings, then go back to their division or department and carry on exactly as they had befor

32、e. In effect, they end up sabotaging the plan. That s why gaining buy -in is essential to effective execution, and is what makes it happen. IBM created an executive team consisting of six Ph.D-level technical leaders at an applied research unit. Their mission: build strong relationships with top res

33、earch universities so that IBM could recruit innovative scientists capable of developing breakthrough products. The problem was that the Ph.Ds, all world-class scientists, were used to competing for research dollars and dismissing each others ideas to advance their own. Getting them to work jointly

34、and be held accountable for business results was going to be very difficult. In the first group meeting, the vice president simply assigned accountabilities to the various team members. I could see the scientists digging in their heels, says Harris Ginsberg, an internal leadership consultant who att

35、ended the meeting. No one was going to dictate to them what they should do. Even if theyd said yes to the VPs directives, adds Ginsberg, they would never have followed through. Ginsberg, who helps IBM business units clarify and execute strategy, knew the key was to get the scientists talking to each

36、 other. So he coached the vice president to change her behaviors. Rather than hand out directives, he suggested ways she could stimulate team dialogue about how to meet objectives. Ginsberg also counseled other team members about the need for a consensus process on an interdependent team. They all g

37、ot it. At the next meeting the VP said, Our mandate is to create breakthrough products. Without access to talent at the top universities, we wont succeed. How are we going to get it? At first, Ginsberg recalls, she met silence. Finally one team member raised her hand. She was willing to get out ther

38、e to the universities, and be more visible, go out with the recruiter and the senior human resources people, said Ginsberg. She also agreed to help some up-and-coming scientists learn how to develop relationships with universities. A second team member said he would help her make some calls. The ice

39、 was broken and all the team members eventually took on group responsibilities. It was all about dialogue, says Ginsberg. Until the individual leaders embraced the unifying elements of the strategy for the good of the enterprise, they only attended to their own mission. The dialogue helped them buy-

40、in, agree to some shared activities, and begin to work more collaboratively. 2. Set up systems and processes to create clarity Why is executing strategy so difficult, even when the plan is clear? Because good execution only happens when employee behavior is aligned with strategy. And many managersca

41、n t, won t or don createtthe “ transmitter opportunities ” required to get people to do thgehrti things. Managers: can tbecause they don t know how to talk with their subordinates about change and/or poor performance;won t,because they find it uncomfortable to give candid feedback; or, simplydon t r

42、ealize that successful strategy execution will never happen without ongoing performance dialogue. Part of the solution to this problem is creating systems and processes that force performance dialogue. General Dynamics Defense Systems (GDDS) in Pittsfield, MA, is one company where creating such syst

43、ems has contributed to dramatic results. From 1999 to 2001, attrition among its valued software engineers dropped from 20 percent to 2.4 percent. Union grievances dropped from 57 to zero, saving hundreds of thousands of dollars. And, best of all, earnings and profit margins doubled. What GDDS did In

44、 1999 the $200 million plus defense contractor challenged its employees to improve the company s negotiating leverage on bids, and thereby increase margins and profitability. To accomplish this goal, senior management directed all departments to chase out costs, and created numerous processes to tra

45、nsmit the cost-cutting strategy down the managerial ranks right to the shop floor, which is where they felt many of the best cost-cutting ideas would come from Carmen Simonelli, director of facilities and security, says his department goal was to push labor costs 5 percent below budget, with a“ stre

46、tch goal of 6 percent. That was ambitious given that direct applied labor costs had been running 10-15 percentover budget. But Simonelli s team slashed applied labor hours to an unthinkable20 percent below budget . Annual savings amounted to about $440,000 on a $2 million budget, or nearly $10,000 p

47、er worker. How did they do it? The key, Simonelli says, was the processes the company put in place to enhance dialogue and carry the message to the shop floor. For example: The Learning Map The company made it easy for employees to understand its broad goals by creating a “ learning map, ” which gra

48、phically outlinewd heoach department and team linked directly to core objectives. All employees saw at a glance how their jobs fit in. Supervisors and assemblers in Simonelli s group, for example, could readily see that by reducing applied labor hours in a project, GDDS could increase margins, short

49、en delivery schedules and raise the chances for winning new contracts. The Scorecard Managers and direct reports at GDDS meet one on one to create Scorecards, which set out five to seven personal annual goals. For example, the goals for shipping and receiving supervisor Tom Molleurs included plans t

50、o capture all incentive payments for early delivery and to cut direct costs 5%. Once a manager and subordinate reach agreement goals, they both sign the Scorecard as if it were a contract. From the worker s perspective, this was a dramatic shift, says Newell“ Tom” Skinner, at the time director of pr

51、oduct delivery.“ In the past we just set the goals and beat up employees to try to make them, but they probably didn t even know why we h ad that goal in the first place.” Scorecards are “ transmitter opportunities ” that clarify expectations and link day-to- day activity to company goals. And they

52、work. Molleur s group ended up cutting direct costs by 50 percentnot just 5 percent. What was the key thing that made it happen? Molleurs points to his weekly progress meetings. When they were behind schedule, Molleurs used the meetings to make sure the workers understood, through the Learning Map a

53、nd Scorecards and other processes, how meeting or beating delivery schedules could increase competitiveness and win more contracts. Top management did simple things to make sure strategy messages were getting through. For example the presidentheld monthly“ pizza meetings ” with everyone whose birt h

54、day fell that month. At these “ transmitter opportunities,” he would ask attendees people to list their top three goals, and their boss top three goals. Within months, everyone could answer the questions. When effective dialogue pushes strategic imperatives downward in an organization, extraordinary

55、 things happen. Skinner extended an open invitation to any employee who wanted to attend his weekly budget meeting with his supervisors. One day an assembler showed up and said a part design was forcing ass emblers to work by hand with“ dozens of tiny screws, lock washers and nuts. ” Skinner had the

56、 assembler meet with 12 hours was cut to four. process control engineers for a redesign. The result: a job that had taken The best ideas come from the pe opinlegd the job, ” says Skinner. Once the conversation got started, it took on s office without momentum. Soon, people were coming into Skinner w

57、aiting for the weekly to discuss misalignment of strategy and behavior. Workers themselves were creating transmitter opportunities! It s about behavior change The processes GDDS installed forced performance dialogue and ultimately changed behaviors. The message got through. But, like a tennis stroke

58、, it didn t happen quickly or automatically. It took coaching a nd practice. Sometimes you have to get it wrong, then make corrections through feedback and dialogue, before you get it right. One North American insurance company embarked on a new strategy to expand sales with existing customers. The

59、president created nine core value statements and broadcast the ideas repeatedly organization-wide. Soon, every manager could recite them by heart. Employees even had cards with the core-value statements right at their desks. The message, however, wasn t sinking in.ouAtside consultant saw one of the

60、value statements on an underwriter s desk that read“ Never But the consultant listened to several knowingly undersell a customer. of her calls and realized that she consistently failed to explore customer needs or try to up- sell.“ The company had told her what to do, but didn t follow through with