nonprofit performance management design strategies
DESCRIPTION
Do annual performance reviews help mission-driven organizations succeed or are they just another administrative function that takes time away from more important things? We believe that a well designed system can provide positive feedback to employees helping them do a better job and create a stronger organization. But doing so in the proper setting, context, and manner is critical to carrying out successful performance reviews. We'll show you how during this 60-minute design strategy workshop.TRANSCRIPT
Nonprofit Performance Management Design
StrategiesJulie Gallion & Dawn Taylor
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Today’s Speakers
Hosting:
Sam Frank, Synthesis Partnership
Julie GallionSenior HR Consultant,
Nonprofit HR Solutions
Assisting with chat questions: April Hunt, Nonprofit Webinars
Dawn Taylor Director of Business
Development,
Nonprofit Staffing Solutions
Julie Gallion, PHR
Senior HR Consultant
Nonprofit HR Solutions
Nonprofit Performance Management Design Strategies
Dawn Taylor, CSP
Director of Business Development
Nonprofit Staffing Solutions
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Agenda
Defining Performance Management
Performance Management System Components
Why Performance Management?
Developing a System
Ratings
– Advantages and Disadvantages
System Implementation
Legal Concerns
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Performance Management and ComponentsEnvironment and processes that ensure employees are enabled to be
productive in accomplishing the organization’s work
Key Components
– Job Description
– Orientation
– Performance Goals (the “What”)
– Competencies or Behaviors (the “How”)
– Ongoing Feedback
– Coaching (including course correction)
– Recognition and Rewards
– Career/Professional Development
– Assessment
– Performance Improvement
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Why Performance Management
Translation of Organizational Goals to Individual Activities
Clear Roadmap for Employee of Priorities and Direction
Documentation of Work Quality and Progress (including Termination
Issues)
Differentiation of High-potentials and Other Classifications
Compensation Decisions
Feedback Mechanism
Career Progression
Employee Needs
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Leadership Buy-in for Performance Management
Marketplace Best Practices
Past Successes (and Failures)
Linkage to other People Processes
Clear Overview of Change Management Processes
– Communication Plan
Use of Pilots and Staff Input
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DEVELOPING A SYSTEM
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Where to start
Know the Culture
– Level of the majority of the positions
– Competitive or Cooperative (Learning) environment
– What does the organization reward
Learn what Leadership is looking for in a system
Create a Staff Committee
– Staff committee will ensure buy-in from more of the staff if coordinated well
– Committee should include employees of all levels and in all departments
– If over 10 people consider splitting into two groups
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Staff Committee
Share with the committee what your ED/President and Senior Staff want in
a system
Ask the committee what they like and don’t like about the current system
Allow the committee to discuss the benefits and drawbacks of identified
solutions/suggestions with minimal input from you
Share the system you create with the committee before you bring it to the
ED/President and Senior Staff for approval
Share any changes suggested by the Senior Staff with the Committee and
let them come up with a compromise. Have a good example/reasons for not
incorporating any ideas expressed during committee meetings
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Ratings
Types of rating systems
– 1-5
– Needs Improvement through Exceeds Expectations (no number or letters)
What is being rated
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Advantages and Disadvantages of Rating Systems
1-5
– Provides good structure around the salary increase system
– Enables supervisor to express the level of their concerns or praise
Needs Improvement to Exceeds
Expectations
– Focus is on improving rather than their frustration over receiving a low score
– No competition
– Employees do not get a sense of failure
1-5– Temptation to give a higher score
due to guilt about pay increase related to score
– Focus is on the grade not improving the skill
Needs Improvement to Exceeds Expectations– Difficult to tie salary increases directly
to performance review
Advantages Disadvantages
•Understand the culture before choosing your rating system
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Performance Review Form
Core Competency Ratings
Goals
Major Accomplishments
Overall Strengths
Areas for Improvement
Opportunities for Job Enrichment/Personal Development
Comments
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Core Competencies
Developing Core Competencies
– Based on culture
– Committee Input
– Senior Staff Input
Examples of Core Competencies
– Organizational Relationships and Communications
– Planning and Time Management
– Innovation and Change
– Decision Making and Judgment
– Professionalism
– Effectiveness and Efficiency
– Staff and Resource Management
Narrative
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Goals
SMART
– Specific
– Measureable
– Attainable
– Realistic
– Timely
Allow employees to suggest goals
Goals should drill down from organizational strategic plan. All employees
should be familiar with strategic plan
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Major Accomplishments, Overall Strengths, Areas for Improvement, Opportunities, Comments
Define a major accomplishment
List overall strengths
List areas for improvement
List any opportunities for promotion or lateral move and explain how to get
there
Comments-Supervisor and Employee
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Additional Forms
Self Review/Pre-Review form
Manager Review
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Legal Issues
“…it is almost inevitable that one or more elements of your organization’s performance appraisal system will attract legal
scrutiny at some point in time. This likely scrutiny is particularly worrisome when considering the potential for jury trials,
compensatory and punitive damages, and other burdens imposed in discrimination cases under the Civil Rights Act of 1991.”
“CURRENT LEGAL ISSUES IN PERFORMANCE APPRAISAL” Stanley B. Malos, J.D., Ph.D.
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Legal Issues Continued
Performance Management Systems should ensure consistency in
communications which is critical when trying to prove nondiscrimination
System should be able to prove to a court in a wrongful discharge case that
there have been performance issues, that those issues had been discussed
with the employee and the employee was given an opportunity to improve
Helps to ensure that all employees are treated similarly
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IMPLEMENTING A SYSTEM
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Effective Implementation Requires a Thoughtful Approach that Engages all Stakeholders
Follow-Up
Communication&
TrainingBuy-In Follow-
ThroughFeedback
FinalCustomization
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Communication & Training
Ensure knowledge is shared
Ensure clarity/understanding
Discuss motives and intents
Discuss what will look different and what will be the same
Discuss the final impact on individuals
Define critical terms
Define timelines
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Buy-In
Ultimate goal is total buy-in – Realistic goal is total
understanding
Provide opportunity to raise/discuss concerns
Invite other perspectives
Follow-UpProvide answers to questions (anticipate questions and have
answers ready)
Provide examples
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Follow-Through
Drive the process forward (consider a pilot or phase-in approach)
Ensure that results match what was communicated
Offer continual assistance and resources throughout initial implementation
Feedback
Provide opportunity/vehicle for initial participants to provide feedback
Send the message that candid feedback is truly desired
Allow anonymity
Distinguish between feedback on the process and its components vs.
dissatisfaction with appropriate results
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Final Customization & Institutionalization
Respond to all feedback
Make appropriate customizations based on lessons learned
Ensure that all critical features are maximized
Ensure that final outcomes move toward strategic business objectives
Establish protocols
Make formal resources available (i.e., additional training, advice & counsel, etc.)
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Nonprofit HR Solutions – Performance Management Program Consulting
Automating Performance Management
360 Degree Surveys
Key Features
– Library of over 350 competencies
– Fully customizable templates
– Automatic email notification of pending and past due reviews
– Goal management
– Ongoing feedback and documentation
– Statistical dashboard
Nonprofit specific pricing
Contact Julie or Dawn at 202/785-2060 for more details.
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Nonprofit HR Solutions
About Us
– Nonprofit HR Solutions is the nation's only full-service consulting firm dedicated exclusively to meeting the human resources needs of nonprofit organizations. Since 2000, Nonprofit HR Solutions has worked exclusively with the nonprofit sector, generating results for organizations supporting advocacy, health and human services, arts and culture, education, the environment, faith-based missions and more.
For more information on Nonprofit HR Solutions, please call 202.785.2060 or visit www.nonprofithr.com.
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