Abolish the Annual Performance Appraisal and Move to an Agile System

Continuous coaching and feedback are more effective than traditional, static performance appraisals.

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A performance management system that is static causes:

  • High turnover and costs for the organization.
  • The inability to meet the needs of today’s ever-changing world of work.
  • The inability of managers to identify low performers.
  • Lost coaching opportunities for employees.
  • Employees to receive feedback that is not timely and relevant.
  • Employees to feel demotivated.

An Agile performance management system results in:

  • Reducing voluntary turnover and increasing involuntary turnover.
  • Reducing management costs.
  • Developing and enhancing employee performance regularly.
  • Saving managers an average of two hours of their time per employee, per year.
  • Helping HR to focus on more value-added initiatives.
  • Increasing employee engagement.

Module 1: Determine Effectiveness and Assess Readiness

The Purpose

  • Decide what level of Agile is right for your organization by understanding the need for, and readiness for, Agile performance management (APM).
  • Prepare to launch your system by developing the skills required for Agile, and making compensation decisions that align with your system.

Key Benefits Achieved

  • Clarity on your organizational readiness for APM.
  • Prepared to meet with stakeholders to gain project buy-in.

Activities: Outputs:
1.1 Determine the effectiveness of your current performance appraisal system.
  • Performance Appraisal Effectiveness Scorecard
1.2 Assess your organizational readiness level.
  • Organizational APM Readiness Assessment Tool
1.3 Prepare for stakeholder buy-in.
  • APM Stakeholder Slides

Module 2: Understand What the APM Will Look Like; Plan Feedback and Communication

The Purpose

  • Ready your organization for the change towards APM through effective communication strategies.
  • Plan how and when to follow up with your employees and managers, and review updated scorecard results to measure effectiveness.

Key Benefits Achieved

  • A tailored APM model for your organization.
  • Plans to launch and sustain APM effectively in your organization.

Activities: Outputs:
2.1 Use the 3Cs model to role play giving and receiving feedback.
  • The 3Cs model and its use with performance appraisal feedback is understood
2.2 Plan out what the APM will look like in the organization.
  • Outlined APM plan
2.3 Plan the communication strategies from the business and from HR.
  • Determined communication strategies
2.4 Brainstorm potential pushback from managers and solutions to their issues.
  • HR is prepared for potential pushback from managers

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