CIPD

1
PEARN KANDOLA

• CIPD
• Using competencies and business values to build a
  performance management system thats linked to
  business objectives.
• John Loughran
• November 2003

2
OVERVIEW

• Performance management - the first of the
  fundamentals.
• Competencies in performance management - a lot
  done
• Values in performance management - making a good
  tool sharper.
• Discussion points.

3
PEARN KANDOLA

• Practice of occupational psychologists
• Founded in 1984
• 54 staff, 30 occupational psychologists
• Dublin and Oxford
• Focused expertise

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EXPERTISE AND VALUES

• Act with integrity
• Always deliver
• Work in partnership
• Apply psychology
• Push the boundaries

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KEY PSYCHOLOGICAL PRINCIPLES

• What gets measured - gets done.
• You get what you pay for.
• You can take a person out of the bog, but cant
  take the bog out of the person.

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PERFORMANCE MANAGEMENT THE FIRST OF THE
FUNDAMENTALS
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PERFORMANCE MANAGEMENT - THE RATIONALE

• To create organisational success by optimising
  the individuals contribution over time.

• Align contributions
• Clarify expectations
• Facilitate equitable recognition and feedback
• Ensure personal and career development
• Assist with organisational agility

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FIRST OF THE FUNDAMENTALS

• Employee engagement
• Innovation
• Work-life balance
• Ethical practice
• Talent management
• Managing diversity

Performance Management Capability
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COMPETENCIES IN PERFORMANCE MANAGEMENT A LOT
DONE...
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COMPETENCIES - KEY ISSUES

• The ideal framework making it real
• how many levels?
• how many competencies?
• Linked to reward or not?
• Coping with the complexity.
• Supporting processes.

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THE IDEAL FRAMEWORK

• Tailored to your organisation
• Future proofed
• Multiple levels as appropriate

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MULTIPLE LEVELS
Level 3
Level 2
Level 1
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THE IDEAL FRAMEWORK

• Tailored to your organisation
• Future proofed
• Multiple levels as appropriate

• Optimum competencies to ensure precision
• Complimented with a thorough expertise directory

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LINKED TO REWARD OR NOT?

• Cons
• Discourages acknowledgement of development needs.
• Inappropriate context for learning.
• Unreliable

• Pros
• Encourages impassioned discussion of objectives.
• Shows that the organisation takes development
  seriously.

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COPING WITH THE COMPLEXITY
1. Diagnosis
2. Objective setting
4. Repeat diagnosis
3. Ongoing activity and review
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SUPPORTING PROCESSES

• Development directories
• Coaching
• Mentoring
• Manager 11s
• Assignments
• 360 feedback

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COMPETENCIES IN PERF. MGMT. CRITICAL SUCCESS
FACTORS

• Shared understanding of the benefits
• Top level commitment
• Tolerance of management discretion
• Management competence
• Development focus

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VALUES IN PERFORMANCE MANAGEMENT MAKING A GOOD
TOOL SHARPER
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VALUES DEFINED
While the vision of the organisation tells the
team in which direction the organisation is going
and what it plans to accomplish, the
organisations values tell the team how to
accomplish the vision. Values are the subtle
control mechanisms that informally sanction or
prohibit behaviour. Wellins, Byham and
Wilson (1991).
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VALUES - SOME EXAMPLES

• Walt Disney (excerpt)
• No cynicism
• Creativity, dreams and imagination.
• SONY (excerpt)
• Being a pioneer - not following others doing the
  impossible.

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VALUES - SOME EXAMPLES

• Lloyds TSB (excerpt)
• Accessibility - Being approachable, honest,
  straightforward and welcoming whenever, wherever
  and however customers want us.

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COMPETENCIES VALUES

• Represent the desired style of behaviour of the
  organisation
• Explain the HOW of our actions.
• Must change over time.
• Must not be prescriptive

• Represent the true identity of the organisation
• Explain the WHY behind our actions
• Remain fixed over time
• Are non-negotiable

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VALUES - DISTINCTIVE?

• Customer Focus
• Respect for each other
• Teamwork
• Initiative
• Professionalism
• Quality

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HOW IT ALL COMES TOGETHER
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VALUES - KEY ISSUES

• Individual and organisational values - a battle
  for dominance?
• Are values-driven organisations experiencing the
  benefits?
• Values in performance management.
• Supporting practices.

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A BATTLE FOR DOMINANCE?

• Organisational behaviour
• Personal values
• I believe this is right
• Its important to me to do it this way

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A BATTLE FOR DOMINANCE?

• Organisational values
• This is what is important around here
• From experience, if I were you Id do it this
  way

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THE BENEFITS

• For the individual
• More powerful psychological contract
• Less need for personal branding
• For the organisation
• Powerful organisational branding
• Clarity of focus over time
• Consistency of behaviour
• Setting higher standards

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VALUES IN PERFORMANCE MANAGEMENT

• Review objectives
• Review values
• Establish the profile
• Link to the competencies

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SAMPLE PRO-FORMA
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THE BENEFITS

• More insightful / personal conversations
• More meaningful benchmark
• Establishes links between competencies
• Clearer focus on consequences of behaviours

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VALUES IN PERF. MGMT. CRITICAL SUCCESS FACTORS

• Shared understanding of the benefits
• Top level commitment
• Tolerance of management discretion
• Management competence
• Development focus

• Clear set of values
• Widely understood
• Widely lived
• Managers as coaches

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SUPPORTING PRACTICES

• Power structures
• Metrics
• Role modelling
• People processes
• Messages
• Rituals
• Artifacts

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PEARN KANDOLA

• CIPD
• Using competencies and business values to build a
  performance management system thats linked to
  business objectives.
• www.pearnkandola.com
• John Loughran