TM - December 2007 - (Page 38)

formance appraisals.” Such marketing fosters the thinking that effective performance management is all about reducing costs and automating the appraisal. While saving time and money shouldn’t be discounted, they should not be viewed as the major benefits of performance management software. No company becomes more productive or efficient by processing appraisals faster than the competition. Ultimately, the strategic benefits of performance management come from other improvements, such as the implementation of goal-setting and business alignment, an increase in top-to-bottom transparency and accountability, and fostering employee development. Consider this example. When an international airline first implemented its online performance management system, the company focused heavily on driving 100 percent system utilization, hoping for greater efficiency and accurate data for compensation analysis. During the first two years of the rollout, the company heavily emphasized adoption of the system and training on system features. However, in year three, the company recognized that the system was not having the intended effects. While the system was being used, the airline’s stellar record for customer service was waning. Employee satisfaction was declining, and turnover was higher than ever before. lished strong guidelines for adoption and carefully monitored usage to make sure that each employee had goals, competencies and development plans tuned toward their specific jobs. After three years of effort and a highly effective software implementation, the HR manager responsible for the initiative realized that managers were actually spending even less time coaching, developing, assessing and managing employees than ever before. The system served as a replacement for the important processes related to regular communications, calibration meetings, and ongoing and informal coaching. The manager relaunched the system and this time focused on management processes, not appraisals. In both of these cases, the problems were not caused by software, but by the urgency to automate. Our research shows that it is critically important for organizations to focus first on their business problems, second on their talent strategies and third on their management and performance management processes. When companies take a reverse approach, they often end up with systems that automate processes that send them in the wrong direction. Josh Bersin is the principal and founder of Bersin & Associates, with more than 25 years of experience in corporate solutions, training and e-learning. He can be reached at editor@TalentMgt.com. While managers were using the system to comply with the documented process, the organization had lost focus on the critical values, behaviors and competencies associated with the company’s success. As a result, orgaEarn your degree in 18 months online! nizational development executives went back to the drawing board and redesigned the management model. The new model included coachingbased, goal-centric processes that focused heavily on employee empowerment and core values. This new thinkIf you’re responsible for recruiting, managing, inspiring, or retaining ing caused executives to employees, this is the degree for you. realize they needed a completely different softLearn more about these important skills and importantly, how to measure ware solution. AN NOUNCING … our NEW Master’s Degree in Human Capital Management the impact of effective human capital management from the nationally-known thought leader in human capital development and ROI – Bellevue University. Consider a second example. A large consulting company selected a software-based performance management system and rolled it out in conjunction with a detailed set of job competencies tailored for each consulting position. The company estab- Call today to enroll. 800-756-7920 • www.bellevue.edu Accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools. The Bellevue University College of Business also is accredited by the International Assembly for Collegiate Business Education (IACBE). Bellevue University does not discriminate on the basis of age, race, color, religion, sex, national origin, or disability in the educational programs and activities it operates. http://www.bellevue.edu http://www.bellevue.edu

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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