TM - December 2007 - (Page 37)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning leadership development programs. For example, Cisco’s multilevel leadership development program, mandated for all upper-level company leaders, has a strong coaching component. Carlson Wagonlit uses Ken Blanchard’s Coaching Essentials content in the company’s performance management and change support program. NASA and BAE Systems have developed formal coach roles within operational engineering groups, which are staffed by people with coaching training. To really make a difference, coaching must be instilled as a management value in the company. new and different way of supervising such workers. Figure 2 contrasts the emphasis on coaching and development in PM 2.0 models with the emphasis on performance appraisals in PM 1.0 models. The Role of Performance Management Software: Positives and Negatives The rush to implement software-based performance management systems is causing many organizations to evaluate their current performance management models. Software systems demand the definition of standardized processes and a more inte- Why Now Is the Right Time Josh Bersin A thoughtfully conceived, well-designed performance management model is a critical component for any company’s talent management strategy. If your company has not recently evaluated its current model, then it is likely time for such an analysis. And if you’re considering the implementation of new software in the near future, then you must make time in the schedule for this to happen well before implementation. As part of the analysis, we encourage you to think about your current management culture and the kind of culture you’d like to have in the future. Consider your next generation of employees and the different needs, life goals, skills and work ethics they have. Think about the role you want leaders and managers to take and the workforce flexibility you’ll need. Discussion and debate surrounding the performance appraisal isn’t new. But, here’s what is new: • Research that definitely proves the energy and time spent on appraisals has relatively little impact when compared with other performance processes. • Research that shows engagement and retention are driven by development and career growth, not compensation. • Talent challenges and workforce demographics that create critical shortages and require organizations to build talent internally. • Available software that can support a new model and facilitate a change. These colliding, new factors may well make now the time to finally kill the performance appraisal as we know it currently. Management-by-coaching is a concept well understood by many HR professionals, but it is often tough to institute when the business is focused on the bottom line. It takes a level of maturity and outof-the-box thinking for an organization to value coaching and make such a shift. And, of course, managers must have the opportunity and training in order to develop coaching skills. If accompanied by distributed workforces, it is often impossible for an employee to walk into a manager’s office for assistance. In such organizations, managers often do not have day-to-day contact with their employees. The coaching model serves as a grated approach to talent management. While fewer than 25 percent of organizations have such automated systems today, our research shows that the market for software-driven performance management solutions is now more than $250 million and growing at more than 30 percent per year (the fastest growing segment of HR software). Many software platforms are still built to support competitive performance appraisals. A recent promotion from a leading performance management software provider read: “Gain the benefits of online performance appraisals: reduce paperwork, save managers’ time, reduce the costly expense of manual per- 36 December 2007 talent management magazine www.TalentMgt.com 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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