TM - December 2007 - (Page 36)

greater return than performance assessments and a greater than 200 percent return compared to pay-for-performance processes. 2. The development of high-value, unique and jobaligned competencies came in second. This process assesses organizational needs and gives employees a clear sense of how to succeed. 3. Third was individual goal development and alignment with organizational goals. 4. Next (and almost tied for third) was the creation of clear and consistent development plans. 5. While the manager assessment (with linked compensation) generated positive returns, it was much further down the list. This information tells us that overemphasis on competitive performance appraisals is misplaced. If we’re looking to achieve the greatest business results from performance management, the focus of supervisors and managers must be on those processes related to employee coaching and development. Recent poll findings from Harris Interactive also support this shift. According to the August 2007 survey, the leading reason employees leave their jobs is the lack of growth opportunities. ing organizations create processes that encourage managers to take on the role of coach, rather than the traditional valuator role. Consider how winning coaches operate in sports. Winning coaches have a unique ability to identify high potential players, create winning plays and inspire people to achieve. They look for the best in each player and then convince him he can do even better. They set examples and create winning strategies to bring the team to success. Consider your own career. Most likely, you’ve had at least one significant career opportunity (likely a very difficult, highpressure assignment) that stretched you beyond your existing level of confidence. While this assignment may have been difficult and stressful, it gave you a new level of confidence and new skills to translate into further success. Such experiences fall into the category of developmental activities. You also probably have had someone in your career (a manager, an executive, a coach or even a teacher) who took a personal interest in your success. This person listened to you, got to know your strengths and weaknesses, and took the time and personal interest to guide you in your decisions and actions. Our talent management research and discussions with many HR executives show that high-performing organizations create processes that encourage managers to take on the role of coach, rather than the traditional valuator role. Performance Management 2.0: Emphasizing Coaching and Development Organizations such as Cisco, Alcatel-Lucent, BAE Systems, Carlson Wagonlit, Shell, Textron and Aetna recognize that performance management takes place every day. Executives in these organizations understand that people who are developed and coached are highly engaged — and that the job of the manager is to identify the strengths in people and move them into the right jobs. They understand that performance management builds and supports the company’s entire management culture. And, they look at performance management as part of the company’s leadership development process, not just an annual process for employee evaluation. Our talent management research and discussions with many HR executives show that high-perform- Such combinations of development and coaching yield the highest impact in performance management. In view of the talent management challenges faced by businesses today, the most successful performance models — what we and others are now calling Performance Management 2.0 — will emphasize these activities over competitive evaluations. The accompanying chart compares the characteristics of the traditional performance management model (PM 1.0) with the new coaching- and development-centric model emerging today (PM 2.0). (See Figure 1, p. 34.) The Importance of Coaching for Performance Organizations that adopt coaching approaches to performance management share several distinct common practices. First, they institute coaching programs through their management training and talent management magazine www.TalentMgt.com 35 December 2007 http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - December 2007

Talent Management - December 2007 Editor's Letter Contents Letters to the Editor Human Performance Leading Edge Capabilities The Engaged Difference: What People Want Analytics in Talent Management: The Sports View The Use of Merchandise for Employee Recognition Taking Aim at Performance Appraisals Talent Management Drives Organizational Change Generational Diversity: Mastering the Boomer-X-Y Divide Dashboard: Security-Savvy Workforce: Designing a Security Awareness Program That Works Application: Hilton Hotels Corporation:Checking Out the Merits of Paperless Efficiency Insight: Unlimited Engagement: Innovative Corporate Communication at Deloitte & Touche USA Advertisers' Index Editorial Resources Foundations

TM - December 2007

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