Our Hack was inspired by Coens & Jenkin’s book “Abolishing Performance Appraisals.” There are several other academic books and papers, blog postings, and even hacks that recommend doing away with Performance Appraisals. While the original Performance Appraisal was born with worthy intentions, it has morphed into what is now perceived by many as the new “workplace tyranny.” It no longer accomplishes the intended goals, drives an overburdening bureaucracy, and worst of all a real fear amongst employees.
Coens & Jenkins outline steps to replace the appraisal with Coaching and Feedback. They also address issues of Compensation, Staffing, Promotion, Development and addressing legal myths that are ingrained in HR that make appraisals seem mandatory. All of these items should be considered systemically.
Nevertheless, this hack focuses on one portion of the entire replacement system: Feedback that Makes a Difference, and more boldly it considers the potential to move to an adaptable and agile organisational system, and more autonomous work environment that results. We show how this new system aligns to scientific theory of neuroscience as one illustrated in this hack and could also consider other approaches.
The problem is that there are many false assumptions which need to be dispelled that underly our current practices:
It's not the people but the system.
One false assumption is that people are in full control of their work performance and that by improving an individual’s performance the organisational performance is improved. The alternative assumption states that improving systems and processes, will improve the performance of the organisation.
Deming and others showed that when you look at the performance of an organisation (however you measure performance), about 85% to 95% (one can argue pointlessly about the precise figure but the scale is key) is due to the system, i.e. the way the work is designed and carried out. That leaves roughly only about 10% that is due wholly or in the total control of the person doing the work. the reality is that both people and the system are dependent on and interdependent with each other and one cannot be separated from the other. Maybe the deeper and more troubling assumption is that the manager knows best and should in effect control both.
For example, feedback is most effective when individual improvement initiatives are combined with serious efforts towards improving the system, i.e. the design of the work, work climate, systems and processes, the methods and structures, the policies and procedures, the equipment and materials, the job design and other people, the culture and environment. The clear thing here of course is that this can only be done by the people who actually do the work!
Brain-Savvy alignment is necessary
The underlying assumption is that if employees understand how their manager wants them to perform, they will change and comply. A deeper level assumption is that the manager knows best and is able to objectively assess the optimal way to carry out the role. There is also an assumption that the manager has insight into how the role should be carried out, can describe that in a useful manner and that the employee can change on command. All of these assumptions are called into question by current neuro-scientific research.
The feedback process can in fact engender a feeling of threat. From a neuro-scientific point of view this would: Create a threat response in the brain, closing down creativity and rational decision making;Threat creates an avoidance response; People will move away from a process or feedback that creates threat.
The threat is typically felt in four key areas: 1) The sense of reputation which leads to reduced connection with the group; 2) a sense of uncertainty; 3) reduced rewards for options or choice if complying with how the manager requires the role to be performaed; 4) The power is with the line manager, thus creating a sense of inequity. In addition, people are highly unlikely to have similar mental models. The manager's feedback rarely fits with the mental model held by the employee.
Research in the area of neuroscience is beginning to point out that in the area of feedback the typical approach means organisations may really be creating a ‘no win’ situation with the performance appraisal process. Traditional approaches are not brain-savvy
Why do organisations persist?
Firstly, the current approach is familiar and command and control worked in the past. The brain likes to be able to predict what is going to happen. Maybe more importantly it is brain-savvy for managers. They get a sense of reward from the process. in most performance feedback systems managers have certainty about the timing, rating and messages; they determine when and how the review takes place; they have power and their reputation is enhanced in the process. They probably feel it is fair.
The Solution is based on the following new assumptions.
Assumption A - There needs to be alignment between the system and the individual/manager's role in performance improvements and feedback. The manager's role is to remove obstacles, solve problems and facilitate improvements to systemic issues.
Assumption B -The employee's role is pivotal. The assumption is the employee understands their job role best and their own performance. Employees are the best people to seek and obtain feedback on their own performance and to determine who can best give that feedback as well as have insight into how to improve performance.
The System and Brain-Savvy focused solution
The following solution takes into account new discoveries in the field of neuroscience, which are now influencing leadership and management, and their accompanying systems and processes as well as challenging many underlying assumptions about ‘good management’. The solution works with the brain functioning rather than against it. We describe here the 'brain-savvy' solution to feedback and hence strong performance. It is important for organisations adopting such an approach to continually question whether the system they introduce works with the functioning of the brain, rather than against it, and that it mitigates against creating a threat response in people and instead where ever possible creates a reward response.
The conditions necessary for effective, brain-savvy feedback
- The manager and employee understand the fundamental functioning of the brain as it applies to work within a business. Training has been provided to ensure managers and employees can apply this understanding to their respective roles.
- Manager and employee are expected, and rewarded for, working towards maximising performance to meet corporate and business unit goals. Manager and employee are clear about their purpose and have jointly determined performance standards and measures related to purpose and what the customer wants.
- The employee has control of the feedback process; they determine when, with whom and in which circumstances they seek feedback. Employees are trained to assess their own performance and openly discuss that with manager, colleagues and others who can help them develop their performance to the highest standards. For example, engaging a performance coach. This approach helps to reduce the threat response.
- The manager's role is to remove obstacles, communicate changes in corporate and business unit goals, ensure there are methods and policies in place to give employees the data needed to assess performance and to provide support and, when asked coaching on performance.
- The performance system focuses on what is going well, rather than what is going poorly. Positive feedback predominates and development is strengths based. Employees have access to tools for understanding how to improve performance; tools may range from training courses, benchmarking data, performance coaching, etc.
- The culture of the organisation encourages and values time spent on assessment of performance using data, feedback from colleagues, customers and others with insight. This includes but is not limited to professional bodies, networks with competitors and suppliers, external institutions such as universities and informal networks of peers. Time is made available for development. This does not have to be 'soft' or easy. Nothing in the brain-savvy approach would stop an organisation, wishing to adopt this approach, from implementing a system that required clear links to business improvement and a business case before time and money is spent on tools or coaching. However, the underlying new paradigm of thinking and cultural values are that employees are naturally motivated, wish to perform and the organisation wishes to provide the means for maximising that performance.
The conditions necessary for effective systemic performance feedback
- Tools and processes for continuous improvement and feedback within the system are in place,using these tools are associated with a sense of reward for employees and not threat.
- There is transparency as to how the system works so performance improvements can be identified.
- It is explicitly recognised by employees and managers that focus on performance improvements is linked to a holistic approach to system improvements.
- That each employee sees it as a part of their role within the organisation to identify and appropriately highlight opportunities to improve system performance.
- That managers facilitate the implementation of improvements and provide feedback on the system in a continuous manner not just periodically.
- That the manager sees it as their responsibility that continuous improvement processes are working.
Examples of the types of support an organisation may provide:
An employee can submit their request for support (time, training, etc.);these must be aligned to the corporate and business unit goals.
An employee can request support for general development in areas not strictly aligned to organisational goals. Perhaps writing or networking skills, etc. But a business case must be made.
An employee can publish either anonymously or authored their lessons learned and is encouraged to do so. Social networking and social learning sites within the organisation encourage this type of sharing.
Employees can mentor and coach colleagues with the goal to pass on expertise and improve team performance and feedback.
Employees and managers are educated in how personal change happens so that they may factor this into how they plan development.
Frederick Herzberg once wrote that “if you want people to do a good job, give them a good job to do.” Central to a new way of working is the belief that: “Employees want to be and are fully capable of being responsible for themselves. With a supportive work culture and access to resources and training, employees will take responsibility to get timely and useful feedback, grow their skills, and improve their performance in alignment with organisational needs”
According to the title, ‘feedback that makes a difference’ means that there is action associated with the receipt of feedback. This alone is a greater level of accountability for performance improvement; the assumed goals of feedback.
This co-created, iterative, autonomous and empowered approach to feedback, will not only be more engaging but will create greater visibility of purpose, needs, successes and performance alignment or issues surrounding, and in real-time.
By abolishing the performance appraisal event and focusing on ‘feedback that makes a difference’ amongst other things, the organisation will save a great deal of time and resources normally spent preparing for the event and then doing damage control for a period thereafter. By providing feedback in a manner that is process driven rather than event driven, employees will be able to try new solutions in real time and gauge their results creating a positive performance loop.
- Average and poor managers will still exist in the organisation which indicates that average feedback, even if the intent is there, may also continue to occur,
- Dependency of an annual event runs deep into organisational culture,
- Non or mis-alignment to other systems may present barriers to use/implementation/adoption,
- There will be resistance by many who believe the performance appraisal is needed for legal and other reasons.
- The current managment paradigm of thinking that believes people need to be motivated by rewards and punishments.
- Work with the CEO & COO to determine a top performing unit or division (or two), based on engagement metrics, customer metrics and overall performance - confirm opportunity to pilot this type of feedback - can be determined within 30 days,
- Invite them to understand the concepts and the outline, and then work through gaining their collective and individual (at the manager level) input about incorporation into the organisational systems and structure - should allow for 90 days,
- HR can play a key supporting and innovative role in partnership with selected pilot division(s),
- Could be done without CEO/COO approval if needed for proof of concepts but if approval for trial/pilot can be obtained, then it will be more likely to create early and long-standing buy-in.
- Does not require additional budget with the exception of forms/support for team-members to have input and co-create their feedback plan.
There's tons of stuff here that is useful, both theoretically and practically, and anything that shakes us out of the old paradigm is a good thing. However, I'm not keen on the invocation of neuroscience as an explanation because quite honestly, practicing neuroscientists, (not not the pop psych ones) will tell we we're a long way away from linking brain functioning to behavior.
You can actually end up in the same place without talking about it, since we have enough knowledge of employee behavior to make it all work. It's about leaving the stand alone reviews behind. It's about ending the process of judging, and replacing it with problem-solving. It's about doing 90% of the actual work and communication up front, so there is mutually understood expectations.
The Bacal-Hooper model, which I've outlined at http://performance-appraisals.org/Bacalsappraisalarticles/articles/hoope...
is both simple, and powerful -- a real life example of how to make it all work.
The problem isn't that we don't know how to make it work, but how to shake companies and managers out of their forms, so they focus on the communicaiton.
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Further support for our brain-savvy approach is the article in the September 2013 edition of the CIPD People Magazine, entitled "Your brain is not like a computer", written by neuroscientist David Rock. In one notable response to a question about rethinking 360-degree feedback he says"One of the best ways to create a really strong stress response is to be assessed by other people"! What more evidence is needed for abolishing performance management and appraisals. It's another example of what Dan Pink says about what science has known for some time, but management continues to ignore.
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Well done. Something to consider -- how to make this a regular practice of employees? Many may procrastinate or expect that everything is fine unless they hear otherwise. Also, I understand Adobe has eliminated the traditional performance reviews in favor of "check-in" conversations. Bersin by Deloitte is holding a webinar on this Sept. 26
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Here's an article on Adobe's scrapping of performance reviews: http://www.hreonline.com/HRE/view/story.jhtml?id=534355695&
As W Edwards Deming once said:
"Our prevailing system of management has destroyed our people. People are born with intrinsic motivation, self-respect, dignity, curiosity to learn, joy in learning. The forces of destruction begin with toddlers – a prize for the best halloween costume, grades in school, gold stars – and on up through the university.
"On the job, people, teams, and divisions are ranked, rewarded for the top, punished for the bottom. Management by Objectives, quotas, incentive pay, business plans, put together separately, division by division, cause further loss, unknown and unknowable.”
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I share your concern about the derailment of performance appraisal. That is the reason for my hack: http://www.mixhackathon.org/hack/sustainability-index. Could you look at it, to see whether it comes near anything you have thought?
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This is worth a read: http://www.psychologytoday.com/blog/wired-success/201105/why-ceos-need-s...
Also, there is a chapter in The Leader's Handbook by Peter Scholtes which a very strong and thorough case for getting rid of performance reviews.
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It is dangerous to throw the baby out with the bath water. This happens when problems are not fully diagnosed. The Check-In system is also an appraisal system! What is different is that the forms have been abolished and the ‘power of attorney’ shifted. But the vicious cycle continues until the core issue of objectivity is resolved. Objectivity puts the focus on goals, objectives, career development and strategies for improvement. It ensures that employees are evaluated on the basis of what they achieved against their goals, rather than how they compare to their peers. This is achieved on the appraised model discussed in my hack. For now, suffice it to highlight the objectivity problem.
From my understanding, the problem of objectivity is at the heart of the human dilemma.
Success that brings satisfaction follows from the choices that we make. There are two, 2 aspects of these choices:
1. The choice of desires or goals, and
2. The choice of the appropriate specifications that describe the goals accurately
The only time these can be fulfilling is when both are objective.
Get the definition of objectivity wrong, and fulfillment becomes a mirage, or at best, a fluke.
It is Immanuel Kant who made the distinction between the personal order, P-O and the natural order, N-O. Although at that time he argued that the N-O cannot be defined, today physics has done a good job of it, through the wave model and the principle of self-containment.
Then, objectivity is when the P-O approximates the N-O within an acceptable tolerance limit.
The duality series in operations research has shored up well as an acceptable outline of the N-O:
1. Maxima
2. Minimax
3. Maximin
4. Minima
Given a goal therefore, the wave model provides an objective basis for deriving SMART Objectives according to the items on the duality series. When this is done correctly, it also satisfies the requirements of self-containment.
This solves the problem with the choice of specifications.
The choice of goals or desires is approached similarly. Simply reconstruct a higher order goal, which is inclusive of the particular desire, as an objective. This is the application of self-containment. It creates a spiral that goes on and on, ad infinitum; with neither a beginning, nor an end.
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Whether the check in process is in fact an appraisal process depends on how it's done. If it's simply a less formal way of supervisor evaluating staff, then you are correct. If it's a problem solving meeting with both staff and manager working together to remove barriers to performance, than I wouldn't call it an appraisal.
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