the writing revolution webinars article

Adobe ended annual performance reviews, in keeping with the famous “Agile Manifesto” and the notion that annual targets were irrelevant to the way its business operated. Can you change the way they perform through effective coaching and management and intrinsic rewards such as personal growth and a sense of progress on the job? Indeed, formal ratings may do more to reveal bias than to curb it. Or are employees malleable? Inflation rates shot up, and organizations felt pressure to award merit pay more objectively, so accountability again became the priority in the appraisal process. That’s why many organizations are moving to more-frequent, development-focused conversations between managers and employees. Social science research showed that they hated numerical scores—they would rather be told they were “average” than given a 3 on a 5-point scale. Firms that scrap appraisals are also rethinking employee management much more broadly. By some estimates, as many as one-third of U.S. corporations—and 60% of the Fortune 500—had adopted a forced-ranking system. Other firms aren’t completely reverting to old approaches but instead seem to be seeking middle ground. The reason is simple: Many of the processes and systems that HR has built over the years revolve around those performance ratings. Why are some organizations able to quickly bounce back following a catastrophe while others struggle, fail to recover, and even disappear? “They must not be guessing about what the organization thinks of them.” It’s hard to argue against candor, of course. Three other changes in the zeitgeist reinforced that shift: First, Jack Welch became CEO of General Electric in 1981. Job Description, Salary, Skills, Top 30 Companies for Flexible Work Schedules, Online Teaching With Outschool: How to Get Started, Pay, Reviews, Job Categories for Remote, Part-Time, Freelance, and Flexible Jobs, New Remote Work From Home and Flexible Jobs, Find Remote Work From Home and Flexible Jobs By Location. What Will U.S. Health Care Look Like After the Pandemic? Formal feedback from various stakeholders provided some balance when supervisors were otherwise inclined to see only the good things their stars did and failed to recognize others’ contributions. Deloitte, too, has found that its new model of frequent, informal check-ins has led to more meaningful discussions, deeper insights, and greater employee satisfaction. Some companies worry that going numberless may make it harder to align individual and organizational goals, award merit raises, identify poor performers, and counter claims of discrimination—though traditional appraisals haven’t solved those problems, either. Juniper Systems also formally asks supervisors each quarter to confirm that their subordinates are performing up to company standards. Harvard Business Publishing is an affiliate of Harvard Business School. Webinar Recording: In this quick, informative, 30-minute webinar, you'll learn how to start a freelance writing career during these uncertain times. Employees can use the app to ask for direction when they need it. Only 3%, on average, are not, and HR is brought in to address them. Nonetheless, Rob Ollander-Krane, Gap’s senior director of organization performance effectiveness, says the company needs further improvement in setting stretch goals and focusing on team performance. IBM has a similar app that adds another feature: It enables employees to give feedback to peers and choose whether the recipient’s boss gets a copy. As we’ve discussed, that’s often not the case these days, and employee goals may be pegged to specific projects. And Medtronic, which gave up ratings several years ago, is resurrecting them now that it has acquired Ireland-based Covidien, which has a more traditional view of performance management. And could that subtly undermine development by shifting managers’ focus back to accountability? Now that the labor market has tightened and keeping good people is once again critical, such companies have been trying to eliminate “dissatisfiers” that drive employees away. In some fields and industries (think sales and financial services), it still makes sense to emphasize accountability and financial rewards for individual performers. These courses provide teachers and school leaders with the tools to implement effective writing instructional strategies in all subjects. They have amassed data, invested in technologies, and paid handsomely for analytical talent. FROM  “The Performance Management Revolution,” October 2016©HBR.ORG. Typically, it’s less objective than supervisor feedback, as anyone familiar with 360s knows. At most companies, managers take the lead in setting near-term goals, and employees drive career conversations throughout the year. Gap has found that getting rid of performance scores increased fairness in pay and other decisions, but judgments still have to be made—and there’s the possibility of bias in every piece of qualitative information that decision makers consider. They especially detested forced ranking. Because organizations won’t necessarily want employees to keep doing the same things, it doesn’t make sense to hang on to a system that’s built mainly to assess and hold people accountable for past or current practices. The Missing Link in Gender Equality Efforts. Health systems have activated emergency response plans, cancelled non-urgent procedures, and shifted non-clinical workers to work from home. And managers hated doing reviews, as survey after survey made clear. So taking days to manage the performance issues of each employee, as Douglas McGregor had advocated, was impossible. Deloitte reported that 58% of HR executives considered reviews an ineffective use of supervisors’ time. Research by Michelle King points to denial; most leaders are in denial that women have different experiences at work than […], Do you want to know how to find, engage, and grow a devoted audience of Gen Z fans across digital channels and turn these fans into brand obsessives? The Writing Revolution is a nonprofit organization created to ensure that The Hochman Method reaches as many students as possible. The answer, says Professor Yvette Mucharraz y Cano, is organizational resilience. They still differentiate rewards, usually relying on managers’ qualitative judgments rather than numerical ratings. Please note that the remote course is intended for those who are unable to At one insurance company, after formal ratings had been eliminated, merit-pay increases were being shared internally and then interpreted as performance scores. And what am I doing that I should change? But the new perspective is unlikely to be a flash in the pan because, as we will discuss, it is being driven by business needs, not imposed by HR. Too often, this plunge has not yet paid off. If so, you’ll want to hear from digital marketing expert Sara Wilson—HBR’s guest on the next Ask HBR on September 11. Many factors. This “Theory Y” approach to management—he coined the term later on—assumed that employees wanted to perform well and would do so if supported properly. Copyright © 2020 Harvard Business School Publishing. Yet they’ve been joined by a number of professional services firms (Deloitte, Accenture, PwC), early adopters in other industries (Gap, Lear, OppenheimerFunds), and even General Electric, the longtime role model for traditional appraisals. At General Electric, the PD@GE app (“PD” stands for “performance development”) allows managers to call up notes and materials from prior conversations and summarize that information. Women deal with unequal pay, sexual harassment, lack of credit for their contributions, and more. (At Amazon, the cutthroat culture encourages employees to be critical of one another’s performance, and forced ranking creates an incentive to push others to the bottom of the heap.) […], Over the past decade, firms have taken the plunge to become data driven. PwC tried it with a pilot group in 2013 and then discontinued annual reviews for all 200,000-plus employees. In a recent article for People + Strategy, a Deloitte manager referred to the review process as “an investment of 1.8 million hours across the firm that didn’t fit our business needs anymore.” One Washington Post business writer called it a “rite of corporate kabuki” that restricts creativity, generates mountains of paperwork, and serves no real purpose. So as projects unfold and tasks change, how do you coordinate individual priorities with the goals for the whole enterprise, especially when the business objectives are short-term and must rapidly adapt to market shifts? The more consequential the peer feedback, the more likely the problems. Replacing this system with feedback that’s delivered right after client engagements helps managers do a better job of coaching and allows subordinates to process and apply the advice more effectively. Other companies followed suit. And low inflation and small budgets for wage increases made appraisal-driven merit pay seem futile. With traditional appraisals, the pendulum had swung too far toward the former, more transactional view of performance, which became hard to support in an era of low inflation and tiny merit-pay budgets. Other firms are trying hybrid approaches—for example, giving employees performance ratings on multiple dimensions, coupled with regular development feedback. The firm started to go numberless like Adobe but then switched to assigning employees several numbers four times a year, to give them rolling feedback on different dimensions. But in their recent book Competing in the Age of AI, Harvard Business School professors Marco Iansiti and Karim Lakhani show how reinventing the firm around data, analytics, and AI can remove these constraints on growth. Ask HBR is a new, interactive […], In a world of unrelenting change and unprecedented challenges, we need organizations that are resilient and daring. But it will be interesting to see whether most supervisors end up reviewing the feedback they’ve given each employee over the year before determining merit increases. Taking away appraisals flies in the face of that advice—and it doesn’t necessarily solve every problem that they failed to address. It’s a valid question—but we see reasons to be optimistic. The Army devised forced ranking to identify enlisted soldiers with potential to become officers. Jeffrey Orlando, who heads up development and performance at Deloitte, says the company has been tracking the effects on business results, and they’ve been positive so far. This […]. Plus, the move toward team-based work often conflicted with individual appraisals and rewards. As GE found in 1964 and as research has documented since, it is extraordinarily difficult to have a serious, open discussion about problems while also dishing out consequences such as low merit pay. The Writing Revolution offers in-person and live online courses that prepare educators of all subjects and grades to implement the Hochman Method. Though seniority rules determined pay increases and promotions for unionized workers, strong merit scores meant good advancement prospects for managers. “The Writing Revolution, true to its name, is a truly revolutionary resource for educators. Leaders at Gap report that their new practices were driven partly by complaints and research showing that the appraisal process was often biased and ineffective. That continued as jobs became more complex and rapidly changed shape—in that climate, it was difficult to set annual goals that would still be meaningful 12 months later. Others have described annual reviews as a last-century practice and blamed them for a lack of collaboration and innovation. Such firms are doubling down on development, often by putting their employees (who are deeply motivated by the potential for learning and advancement) in charge of their own growth. But it kept other changes it had made to its performance management system, such as quarterly conversations between managers and employees, to maintain its new commitment to development. To deal with the long-standing concern that supervisors failed to label real differences in performance, Welch championed the forced-ranking system—another military creation. Companies changing their systems are trying to figure out how their new practices will affect the pay-for-performance model, which none of them have explicitly abandoned. Some firms that have struggled to go entirely without ratings are trying a “third way”: assigning multiple ratings several times a year to encourage employees’ growth. Don't forget to share this article with friends! Tell your friends about FlexJobs via email. As Wharton’s Iwan Barankay demonstrated in a field setting, performance actually declined when people were rated relative to others. These changes include: • Reimbursing providers for telemedicine services • Allowing physicians to practice across state lines • Increasing capacity by expanding the role of caregivers • […], Women are at a disadvantage in the workplace. Now two years into its new system, Gap reports far more satisfaction with its performance process and the best-ever completion of store-level goals. If these folks have already been successful, they receive more opportunities than others, and they’re pushed harder, so naturally they do better. As Megan Taylor, Adobe’s director of business partnering, pointed out at a recent conference, it’s difficult to sustain that if it’s not happening organically. Naturally, annual reviews are on that list, since the process is so widely reviled and the focus on numerical ratings interferes with the learning that people want and need to do. When human capital was plentiful, the focus was on which people to let go, which to keep, and which to reward—and for those purposes, traditional appraisals (with their emphasis on individual accountability) worked pretty well. Watch the recording below! He is the author of several books, including Will College Pay Off? Organizations got much flatter, which dramatically increased the number of subordinates that supervisors had to manage. Appraisals can be traced back to the U.S. military’s “merit rating” system, created during World War I to identify poor performers for discharge or transfer. Why is […], Historically, business growth has been restricted by a firm’s scale, scope, and learning. Such an assumption overlooks the impact of good or poor management, not to mention business conditions that are beyond employees’ control. It can be also “gamed” by employees to help or hurt colleagues. Supervisors often had discretion to give raises of 20% or more to strong performers, to distinguish them from the sea of employees receiving basic cost-of-living raises, and getting no increase represented a substantial pay cut. Find new ideas and classic advice on strategy, innovation and leadership, for global leaders from the world's best business and management experts. HBR’s 10 Must Reads 2018 + HBR IdeaCast Audio Interviews. A version of this article appeared in the October 2016 issue (pp.58–67) of Harvard Business Review. By emphasizing individual accountability for past results, traditional appraisals give short shrift to improving current performance and developing talent for the future. Organizations got flatter, which dramatically increased the number of direct reports each manager had, making it harder to invest time in developing them. The problem, says author and data visualization expert, Scott Berinato, is that most data scientists are trained to ask smart questions, wrangle the relevant data, and uncover insights. Though managers may assume they need appraisals to determine which employees aren’t doing their jobs well, the traditional process doesn’t really help much with that. But few data scientists are skilled at effectively communicating what those insights […], The lack of women in leadership is not a representation issue. What was the point of trying to draw performance distinctions when rewards were so trivial? Employees still have goals, but as at other companies, the goals are short-term (in this case, quarterly). But when you get rid of forced ranking and appraisal scores, you don’t eradicate bias. Carol Tice is a successful business book author and ghostwriter, and she also writes articles, case studies, annual reports, white papers, blog posts, and more. Though the U.S. Army had devised it, just before entering World War II, to quickly identify a large number of officer candidates for the country’s imminent military expansion, GE used it to shed people at the bottom. During that period, annual wage increases really mattered. This has become especially clear at retail companies like Sears and Gap—perhaps the most surprising early innovators in appraisals. As you might expect, technology companies such as Adobe, Juniper Systems, Dell, Microsoft, and IBM have led the way. And while many organizations say they are working to address gender equity, too many gender initiatives focus on how women should act and respond, largely leaving men out of the equation. Inflation rates shot up, and merit-based pay took center stage in the appraisal process. Anytime you exercise judgment, whether or not you translate that to numerical ratings, intuition plays a part, and bias can rear its head. FlexJobs was thrilled to host this webinar with special guest, Carol Tice, founder of Make a Living Writing and The Freelance Writer’s Den. Harvard Business Publishing is an affiliate of Harvard Business School. Moving to an informal system requires a culture that will keep the continuous feedback going. In recent years most HR information systems were built to move annual appraisals online and connect them to pay increases, succession planning, and so forth. Deloitte, PwC, and others that tried going numberless are reinstating performance ratings but using more than one number and keeping the new emphasis on developmental feedback. Reward candor. Additionally, almost all companies that have dropped traditional appraisals have invested in training supervisors to talk more about development with their employees—and they are checking with subordinates to make sure that’s happening. Yet for many, a strong, data-driven culture remains elusive and data is not universally used for decision making. This is especially true at consulting and other professional services firms, where knowledge work is the offering—and where inexperienced college grads are turned into skilled advisers through structured training. Adobe explicitly brought this notion of constant assessment and feedback into performance management, with frequent check-ins replacing annual appraisals. Unfortunately, most organizations, overburdened by bureaucracy, are sluggish and timid—which can crush creativity and stifle innovation. But this approach works only when business goals are easy to articulate and held constant over the course of a year. McKinsey’s War for Talent study pointed to a shortage of capable executives and reinforced the emphasis on assessing and rewarding performance. And throw away the standard playbook. If a company has clear appraisal scores and merit-pay indexes, it is easy to see if women and minorities with the same scores as white men are getting fewer or lower pay increases. In a study by the advisory service CEB, the average manager reported spending about 210 hours—close to five weeks—doing appraisals each year. Companies that don’t think an overhaul makes sense for them should at least carefully consider whether their process is giving them what they need to solve current performance problems and develop future talent. Writing jobs are one of our most popular categories of flexible, work-from-home jobs, and with good reason. The authors explain how performance management has evolved over the decades and why current thinking has shifted: (1) Today’s tight labor market creates pressure to keep employees happy and groom them for advancement. But now, by some estimates, more than one-third of U.S. companies are doing just that. Gap supervisors still give workers end-of-year assessments, but only to summarize performance discussions that happen throughout the year and to set pay increases accordingly. This trend seems to be extending beyond the United States as well. The U.S. military created merit-rating system to flag and dismiss poor performers. Carol Tice is a successful business book author and ghostwriter, and she also writes articles, case studies, annual reports, white papers, blog posts, and more. And all the companies we’ve observed still have “performance improvement plans” for employees identified as needing support. Trust people, not policies. At GE a new business strategy based on innovation was the biggest reason the company recently began eliminating individual ratings and annual reviews. Not all employers face the same business pressures to change their performance processes. The company was already using the agile method, breaking down projects into “sprints” that were immediately followed by debriefing sessions. Performance appraisals wouldn’t be the least popular practice in business, as they’re widely believed to be, if something weren’t fundamentally wrong with them. A classic study by Edward Jones and Victor Harris in the 1960s demonstrated that people tend to attribute others’ behavior to character rather than circumstances. Deloitte reported in 2015 that only 12% of the U.S. companies it surveyed were not planning to rethink their performance management systems. If so, might they produce something like an annual appraisal score—even though it’s more carefully considered? Part of the problem was that supervisors were reluctant to distinguish good performers from bad. They weren’t designed to accommodate continuous feedback, which is one reason many employee check-ins consist of oral comments, with no documentation. Moving away from forced ranking and from appraisals’ focus on individual accountability makes it easier to foster teamwork. Meanwhile, greater interest in lateral hiring reduced the need for internal development. Register for as many as you’d like! When they sign up, they get up to 30% off, and you get a free month worth $14.95! Still, in most cases, sticking with old systems seems like a bad option. Although not directed at performance per se, these principles changed the definition of effectiveness on the job—and they were at odds with the usual practice of cascading goals from the top down and assessing people against them once a year. Another major turning point came in 2005: A few years after Jack Welch left GE, the company quietly backed away from forced ranking because it fostered internal competition and undermined collaboration. It will be interesting to see how well these “third way” approaches work. Hated by bosses and subordinates alike, traditional performance appraisals have been abandoned by more than a third of U.S. companies. After World War II, about 60% of U.S. companies were using them (by the 1960s, it was closer to 90%). Projects are short-term and tend to change along the way, so employees’ goals and tasks can’t be plotted out a year in advance with much accuracy. That may be partly why the model has persisted so long in the face of considerable evidence against it. That led to a rise in outcome-based bonuses for corporate leaders—a change that trickled down to frontline managers and even hourly employees—and organizations relied even more on the appraisal process to assess merit. Even when they do, waiting until the end of the year to flag struggling employees allows failure to go on for too long without intervention. Here are some of the challenges that organizations still grapple with when they replace the old performance model with new approaches: In the traditional model, business objectives and strategies cascaded down the organization. As dissatisfaction with the traditional process mounted, high-tech firms ushered in a new way of thinking about performance. All the units, and then all the individual employees, were supposed to establish their goals to reflect and reinforce the direction set at the top. In that system, development was reserved for the “A” players—the high-potentials chosen to advance into senior positions. From Silicon Valley to New York, and in offices across the world, firms are replacing annual reviews with frequent, informal check-ins between managers and employees. The issue is that leaders aren’t creating environments where everyone is valued and has an opportunity to advance. Annual goals have been replaced with shorter-term “priorities.” As with many of the companies we see, GE first launched a pilot, with about 87,000 employees in 2015, before adopting the changes across the company. , in a two-year pilot, employees, investors, and more not all employers face the same.. A valid question—but we see reasons to be seeking middle ground Services firm to drop appraisals, which something... Around over time it doesn ’ t completely reverting to old approaches but seem! Of a year middle ground pilot programs at Juniper systems and Cargill, supervisors were also expected be... Of supervisors ’ time championed the forced-ranking system—another military creation and all the companies we ve! How well these “ third way ” approaches work the tech world has responded with apps that enable to. 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And from appraisals ’ focus on individual accountability makes it easier to foster teamwork ’ t be by! For starters, individuals ’ ratings jump around over time a free month worth 14.95. Fuel improvement jury is still out on how to respond truly revolutionary resource for educators all.. Met by frequent, informal check-ins than by annual reviews for all 200,000-plus employees ” that were immediately by. Is still out on how to respond overlooks the impact of good or poor management, to!, strong merit scores meant good advancement prospects for managers to keep blinders... Data, invested in technologies, and shifted non-clinical workers to work from home and verified to individual. Often conflicted with individual appraisals and rewards recently began eliminating individual ratings and reviews... Strong ones with money and getting rid of forced ranking to identify enlisted soldiers with potential to officers... 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