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: Abolish the Annual Performance Appraisal and Move to an Agile System

The Purpose

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

  • Clarity on your organizational readiness for APM.
  • Prepared to meet with stakeholders to gain project buy-in.
  • A tailored APM model for your organization.
  • Plans to launch and sustain APM effectively in your organization.

Activities: Outputs:
1.1 Determine the effectiveness of your current performance appraisal system.
  • Determined how effective your current performance appraisal system is.
1.2 Assess your organizational readiness level.
  • Assessed how ready your organization is to adapt to APM.
1.3 Prepare for stakeholder buy-in.
  • Prepared how you will get your stakeholders to buy-in to APM.
1.4 Use the 3Cs model for feedback.
  • Used the 3Cs model to role play giving and receiving feedback.
1.5 Plan what the APM will look like.
  • Planned what the APM will look like in the organization.
1.6 Plan communication strategies.
  • Planned communication strategies from the business and from HR.
1.7 Brainstorm potential pushback from managers.
  • Prepared for potential “pushback” from managers.

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