performance management guide

A Manager’s Guide to

PERFORMANCE

MANAGEMENT

A Manager’s Guide to

PERFORMANCE

MANAGEMENT

Securities Industry Association

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A MANAGER’S GUIDE TO PERFORMANCE MANAGEMENT

TABLE OF CONTENTS

Page

I. Introduction............................................................................................................................. 1 II. Performance Management Cycle............................................................................. 2 III. Goal Setting and Development Planning............................................................ 3

IV. Ongoing Feedback and Interim Review.............................................................. 6 V. Preparation for the Annual Appraisal ................................................................. 7 VI. Conducting the Performance Appraisal Discussion................................... 8 VII. Frequently Asked Questions..................................................................................... 11 VIII. Introduction to the Performance Appraisal Form................................... 16 IX. Appendix: Sample Forms

A. Performance Appraisal/Self-Assessment Form ................................... 17 B. Client Feedback Form............................................................................................ 24

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INTRODUCTION

The purpose of this Performance Management Guide is to define the key steps of a successful performance management process. The performance management process timeline is typically a 12-month cycle. The steps include setting and agreeing on goals, as well as establishing a development plan that includes coaching and providing ongoing feedback throughout the year. Once or twice a year, it is important to have a more formal performance assessment of goals, job performance and core competencies (knowledge, skills and abilities). This is critical for maximizing individual performance to achieve business results. It is also a way to link individual and teamwork behaviors to the company’s overall business strategy and values. Finally, a formal assessment serves as a measurement tool for determining salary increases, bonuses, and other performance rewards. The performance management cycle is a continuous dialogue between managers and employees to establish performance expectations, monitor progress, and evaluate results. The Performance Appraisal form is the tool designed to coach managers and employees through the process. However, the form is not the process. The process of managing performance is the day-to-day interactions of managers and employees that lead to goal achievement and demonstration of required competencies. The forms used in the performance management cycle are simply summaries of these interactions. Why is Performance Management important? Maximizing individual performance is key to achieving your firm’s business goals. When these goals are achieved, the shareholders, clients, and employees all benefit. Employee morale is enhanced when they know the firm rewards them for performance and is focused on their development. Other benefits of having an effective performance management cycle include:

• Open communication of job performance expectations • Manager and employee partnership in developing performance goals that relate to the

department and company goals • Encourages ongoing dialogue between manager and employee • Encourages planning for the employee’s professional development • Consistent method of performance evaluation for all employees.

The Performance Appraisal is the cornerstone for making compensation, promotion, and certain employment decisions. The process helps ensure consistency in how these decisions are made across the organization.

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Performance Management Cycle

Goal Setting Development

Planning

Coaching and Feedback

Interim Performance Assessment

Year-End Performance Assessment

Coaching and Feedback

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GOAL SETTING AND DEVELOPMENT PLANNING

What is a goal? There are two main types of goals that may be established for employees: performance goals and development goals. A performance goal is an explicit statement of what you expect the employee to accomplish during the current performance cycle. Once you both agree upon performance goals, development goals can be identified. Development goals include the skills, knowledge, abilities and behaviors that can be strengthened to enhance achievement of business and personal goals. It is recommended that you and the employee discuss and agree on a total of 3 to 6 annual goals, considering factors such as workload, experience, and aptitude. This process ultimately increases the employee’s level of effectiveness and productivity, as it requires both sides to enumerate, define and quantify expectations. It is your job as a manager to link employee goals and performance to business objectives. Why is setting goals important? Performance goals provide the employee with direction or a road map for the year and they also define individual performance expectations as well as a broader view of where the business is going. Specific performance goals should be based on the primary responsibilities listed in the employee’s job description, although the employee may perform additional tasks. Goal setting is the beginning of performance management and should be accomplished in the first two months of the performance management cycle. When setting development goals, discuss your employee’s personal aspirations, such as:

• Career interests and objectives • Work/position satisfaction/dissatisfaction • Work accomplishments • Work values • Competencies

After you have determined the competencies which need further development, you can identify some of the tools for strengthening those competencies, such as on-the-job training, formal training and managerial coaching or mentoring. How do I write a goal? An easy way to remember the important characteristics of writing a goal is to follow the SMART method, as outlined below: S Goals should be Specific M Goals should be Measurable A Goals should be Achievable R Goals should be Results-oriented T Goals should be Timely

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An example of a goal containing these important characteristics is: “Provide efficient administrative support to Department X by answering the telephones within two rings and by completing all requests for typing within 24 hours.” Checklist of Goal Setting Below are questions that can be used as a checklist to help ensure the written goals are following the SMART method, which focuses on outcomes rather than activities. These questions will provide managers and/or employees greater clarity about the specifics of goal setting.

• Is the goal clear and specific? • Is the measure of the goal outlined? • Is the time period for achieving the goal clearly defined? • Is the goal too easy? Too difficult? • Is the goal relevant to larger organizational goals? Is this clear to the employee? • Does the employee understand how he/she can contribute to the goal’s achievement? • Does the goal setting include a discussion of constraints (i.e., budget)? • Is the number of goals reasonable? • Are the priorities clearly defined? • Have both parties actively participated in the goal setting discussion?

Finalizing the Goals After the goal statements have been written, you and the employee need to identify the tasks to be completed for accomplishing each goal. A task is equivalent to a major milestone in a project plan, and breaks the goal down into several major steps. For example, the goal “manage the employee department newsletter to enhance communication among department members” could be broken down into the following tasks:

• Solicit input for major project updates • Collect information on professional achievements outside company • Interview employees for feature articles • Edit information received and organize into newsletter • Reproduce and distribute newsletter

Note that each of these tasks could be broken down further into several steps. Make sure you specify the month or quarter when the employee is to complete each major task. After the tasks have been identified for each goal, the written goals and tasks can be incorporated into the Performance Appraisal form. The form becomes the official list of goals on which you rate the employee at the interim and year-end times of the performance management cycle. You and the employee should acknowledge that you have mutually agreed on and understand the goals.

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Using Goals All Year Both you and the employee should refer to the established goals throughout the performance management cycle. You should encourage your employees to review their progress and ask for feedback and support. Throughout the cycle, especially at the interim point, goals and tasks should be reviewed and updated as necessary. By setting and agreeing on goals together each year, you give employees the ability to own their performance and development. In turn, this can improve their job satisfaction, confidence, commitment and morale.

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ONGOING FEEDBACK AND INTERIM REVIEW

Ongoing coaching and feedback are critical components of the performance management cycle. It is important that you provide immediate feedback and coaching whenever possible, rather than addressing issues and behaviors only at performance appraisal meetings. The interim review is an important time to evaluate progress. It may provide an opportunity to change direction or alter how the performance and development goals should be achieved. Since all goals are written using the SMART (Specific, Measurable, Achievable, Results-oriented and Timely) criteria, assessing your employees’ performance is straightforward. You should review performance against:

• What results are/were expected • How the results are being or were achieved • When the results will be or were realized

Schedule the interim performance appraisal meeting with your employee in advance so the employee will come to the meeting prepared to discuss his/her progress. Tips on Coaching

• Discuss observations of the employee’s behavior (both positive and negative). Give examples

• Tailor your coaching to the individual employee • Ask the employee to critique his/her own work • Ask the employee what he/she could have done differently to influence a different or

better outcome • Listen • Ask the employee what roadblocks there are and how you can help him/her overcome

them • Be prepared to discuss what the employee can expect from you • Adjust or reassess previously defined goals (if applicable)

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PREPARATION FOR THE ANNUAL APPRAISAL

Overview Adequate preparation for the performance appraisal discussion can go a long way toward making the process more efficient and effective. The process provides an opportunity for you, the manager, and the employee to prepare for the meeting. It is not a time for you to pre-judge the employee’s performance and then “build a case” to defend that judgment. The meeting itself will focus on an analysis of performance by both parties. It is recommended that the compensation discussion be a separate meeting so both of you can focus solely on performance, feedback, and development. Gather Data Here are some suggested ways to gather data regarding the employee’s performance.

• Ask the employee to complete the Performance Appraisal Form (see Appendix A) as a self-assessment and return it to you prior to the scheduled performance appraisal meeting.

• Ask the employee for a suggested list of internal/external clients who can provide feedback on his/her performance.

• Send out the Client Feedback Forms (see Appendix B) to the agreed upon list of the employee’s internal/external clients.

Complete the Performance Appraisal Form (see Appendix A)

• List mutually agreed upon goals and results achieved. • Assess job performance based on primary job responsibilities. • Identify the core competencies required for the position and evaluate the employee’s

command of each competency. • Incorporate information gathered from Client Feedback Forms and from the

employee’s self assessment (copy of completed Performance Appraisal Form). • Formulate ideas about an appropriate development plan for the next review period for

the employee (refer to Section V “Goal Setting and Development Planning”). Schedule the Meeting

• Set a mutual date and time with your employee; provide ample time so the meeting is not rushed.

• Provide several days advance notice to give the employee time to prepare. • Provide a proper setting and climate that is comfortable, private and free from

interruption. You may want to try using a room other than your office. • Make sure any aggravations, concerns, and problems from a previous meeting have

been taken care of before the meeting.

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CONDUCTING THE PERFORMANCE APPRAISAL DISCUSSION

Conducting a performance appraisal discussion with each person you supervise is an essential part of the Performance Appraisal process. This section of the Guide deals with how to conduct an effective meeting, and it contains a framework and suggestions that will help you plan and manage your appraisal discussions successfully. Start the Meeting How you handle the opening of this discussion will have a significant impact on the overall effectiveness of the interview. The appraisal discussion should be a positive exchange where you and your employee – or you and your manager, when it’s your turn – come together to pursue individual and unit business goals in a thoughtful, constructive way.

• Use a friendly, sincere tone – be yourself. • Begin with a brief but friendly greeting. • Define the roles each of you will play and how the meeting will be structured.

Listen This is a very critical part of the performance appraisal meeting. You need to apply the skills of active listening throughout the discussion, in particular for drawing out the details of the employee’s self assessment.

• Have your employee restate his/her goals for the period being reviewed, and where applicable, acknowledge how the goals have shifted.

• Have your employee present each goal and the results obtained. • LISTEN actively – ask questions for clarification and periodically summarize what

your employee has said. Remember – no judgment or rebuttals at this point. Provide Feedback At this step you now have the opportunity to present your views. Statements should be descriptive based on your observations and objective data relative to the employee’s performance. Provide Feedback on the following elements:

• Quality of projects completed • Quantity of work produced • Timeliness of productivity • Budget considerations • Customer service

Summarize your assessment of the employee’s performance, addressing successes as well as areas that need improvement. Remember, when you have to be critical, be critical of the performance, not the person. Explain why you assessed the goals, performance and competencies as you did.

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Discuss any points that arise from your assessment and confirm those points where you agree with your employee, and those where you differ. Remember, this is a two-way dialogue.

In formulating your reactions consider:

• Internal and external factors over which the employee had little control. • Performance of employees who may report to your employee. • Communication breakdowns which may have occurred. • Your own behavior during this period of time. Ask yourself: “What could I have

done more of, less of, or differently to have been of greater help?”

Summarize

• Summarize the job performance and competency assessment discussion. Remember, complete agreement is not necessary – an understanding of your assessment by the employee is what is necessary. The emphasis at this point is to focus on the future rather than belabor past results and events.

• Praise for work well done. Point out areas for improvement and the reasons why. Review and state the points on which you agree and then discuss where you differ.

• Identify the reason(s) why you differ and try to resolve them by focusing on what’s right, not who’s right.

• Discuss overall performance rating. Establish Goals and Prepare Development Plan for Next Performance Management Cycle This part of the appraisal meeting could be deferred to a later date; refer to Section V for guidance. At this point you assume the role of coach with the emphasis on helping the employee develop his or her own action plan for the future. The best results are obtained when the employee states what improvement is needed. The emphasis at this point is to focus on the next performance management cycle.

• Compliment employee for good results. Ask: “What do you think caused these good results?”

• Jointly problem solve what changes must be made to improve performance. Encourage your employee to volunteer what he/she thinks must be done and the benefits from doing so.

• Ask: “What other approaches could you have taken?” “What have you learned from this?” “How can I help?”

• Suggest specific on-the-job and/or formal training which may help improve job performance or enhance competencies for the future.

• Level with the employee – if performance must be turned around by a certain date, indicate clearly what it is and set a new performance goal.

• Share information with your employee regarding organizational/departmental objectives, conditions, etc., for the months ahead.

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• Establish goals for job performance over the next review period. Ask if there is any specific help from you that will aid in achieving good results through the next review period.

• Jointly agree on a development plan and what each person will do to implement that plan. Ask if there is any specific help from you that will aid in achieving good results through the next review period.

Conclude the Meeting An effective “wrap up” of the meeting, enables you to check your understanding of what was discussed and agreed on with your employee. The meeting should end on a positive note with a sincere expression of appreciation for the employee’s role in the meeting.

• Summarize what was discussed and mutually agreed to. • Review action plans for improvement and what each person will do. • Tell the employee what will happen next. Give the employee the Performance

Appraisal Form for comments and signature. • Set follow-up dates to review progress. • End on a positive note of encouragement.

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FREQUENTLY ASKED QUESTIONS

1. Is it necessary to conduct a Performance Appraisal discussion? Yes! Managing work through people is a fundamental requirement of the manager’s role and is essential to the work process. Performance appraisals provide a valuable window for you to see how the work gets done. Other aspects to consider are:

• Employee morale and turnover depend a great deal on performance appraisals. Individual growth, development, and productivity are linked to appraisals.

• Your advancement depends on your employees. Why? Because you are rated on the overall performance of your departments. If turnover, absenteeism, and low productivity exist, you will not be judged as functioning well. It’s also important for you to groom a replacement to take over if you move up.

• You owe it to your firm and to yourself to be on the lookout for special talents in your firm’s workforce. A firm needs to utilize the skills of all its employees in order to compete successfully in the marketplace. By the same token, you need highly motivated workers in your department who can do more than just get the job done. It’s up to you to find these people and provide an atmosphere in which they can thrive.

• Problems in the department can also be uncovered during Performance Appraisals. Regular appraisal sessions remove surprises about how the quality of work is viewed.

2. What other topics could be raised at Performance Appraisal discussion time?

• Specific reasons behind low productivity • Personal problems and conflicts that affect performance of the job • Insufficient job knowledge and training • Low morale that could spread to other employees

3. Shouldn't feedback discussions really take place the entire year? Yes! Less formal discussions may be conducted whenever the nature of the assignment or other circumstances makes it meaningful to do so. You should provide praise for achievement whenever appropriate and take prompt action to correct unsatisfactory performance when it occurs. 4. What happens if I don’t have an agreed upon set of goals written in advance? You will still need to describe what the individual’s key accomplishments have been over the reporting period. The onus will be on both you and the employee to ensure that you are thorough in reviewing the whole year, and are very clear about what was expected and what has been delivered. In preparation for the next year’s Performance Appraisal, set a time to formulate and discuss a total of 3 to 6 performance and developmental goals. Agree to them in writing.

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5. What is a performance goal? A performance goal is an explicit statement of what you expect the employee to accomplish during the current review cycle. Performance goals provide the employee with direction or a road map for the year. It also defines individual performance expectations as well as a broader view of where the business is going. Specific performance goals should be based on the primary responsibilities listed in the employee’s job description, although the employee may perform additional tasks. 6. What is a Personal Development Goal? A minimum of one personal development goal should be set for the review period for each employee. This will help him/her focus on developing or learning new skills or changing behavior to align better with business goals. It is important to be clear and specific about what needs to change and to make sure the individual is committed to further development. For supervisors or managers, goals may also include initiatives or activities for developing people on their teams. Work through the following issues to establish personal development goals:

• Identify areas to change/develop • Identify success criteria (i.e., what will the person be doing differently? How will that

be measured?) • Action Plan (what will be done, by when)

7. How should each goal be weighted? The weight assigned to each goal should be determined by the importance of the completion of that goal. In summary, the more important the goal the higher the weight it should receive. The overall weight should total 100%. The manager may also simply rank the goals, stating the most important one first. 8. How do I bring all my documentation together to write the Performance Appraisal?

Performance Appraisals are the easiest to write when the documentation is complete, thorough, and timely. Find a system that is comfortable for you, using notes, memos or a calendar of events or accomplishments for the employees. Make notes and comments on established goals and key responsibilities throughout the year. At the interim assessment, decide where the employee is on the rating scale. Keep notes from staff meetings or any other coaching discussions. As the year-end appraisal time approaches, have the employee complete a Performance Appraisal Form (see Appendix A) as a self-assessment tool. Another optional tool is to have the employee suggest “clients” he/she works with to assess his/her behavior. If this is an option, you can send out the Client Feedback Form (see Appendix B) to an agreed upon list of clients. Use all your materials to complete the year review. Decide on an overall rating once you have reviewed all the facts.

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9. How do I handle a discussion about unsatisfactory performance? Never ignore unsatisfactory performance. Some employees may not realize they are falling short of expectations. They assume everything is acceptable because the issue has not been addressed before or they see co-workers doing the same thing. A first step to correct unsatisfactory performance is to review expectations with the employee. If expectations are not being met, it is important to find out why and then discuss a corrective action plan with the employee. 10. How do I encourage an employee to talk freely during the Performance Appraisal discussion? Sometimes employees do not say much during the Performance Appraisal discussion. Perhaps in the past they were not given an opportunity to talk or time to prepare for the discussion, or they may have ventured comments that were ignored or discounted. You can overcome reluctance to enter into a dialogue by being supportive and accepting of comments, and by communicating a mutual desire to solve any performance or department problems through an equal effort. 11. How do I decide on an overall rating? The overall rating is not a decision based on a numerical calculation but rather your overall assessment of performance during the entire performance appraisal period. An overall rating needs to be reflective of the assessment throughout the Performance Appraisal Form. Achievement of the most important goals and key responsibilities should be given the most weight. 12. How should I structure the Performance Appraisal discussion? Your annual review discussions should cover the following:

• Setting the scene and tone - the meeting should be an open, two-way discussion • Clarifying the agenda for discussion • Exploring the employee’s perspective on the past 12 months • Reviewing the performance against targets/objectives over the last year • Assigning a performance assessment rating using the rating scale • Assessing training and development needs • Addressing any immediate career development issues • Setting a separate time for the salary discussion

13. What are some common pitfalls to avoid in the Performance Appraisal process? Even the most experienced managers may be misled by certain factors that often blind us in the appraisal process. Watch out for bias or prejudice regarding criteria that have nothing to do with performance, such as race, religion, education, family background, age and/or sex. Be aware of devoting too much time to one or two tasks that could lead to an unbalanced evaluation, or of putting too much emphasis on traits or characteristics that have little to do with

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the actual completion of the job. You must not rely on impressions, but instead get the facts and hold the employee responsible for those aspects of the job under his or her control. 14. What do I do if the employee disagrees with me? Performance review discussions can sometimes involve disagreements about expectations and results achieved. Try not to approach these situations either on the defensive or on the attack. Ask plenty of questions aimed at understanding the employee’s point of view and identify areas of agreement as well as disagreement. Make sure you have evidence and examples to back up your views. Remember that neither you nor the employee may have all the facts to start with. Treat these as problem-solving discussions rather than ‘win-lose’ arguments. Here are a few hints to keep in mind if you anticipate disagreement on some items:

• Stay calm; don’t lose your temper. • Choose words carefully; avoid negative words such as fail, neglect, forgot. • Discuss emotion; ask the employee how he or she feels. • Don’t generalize especially with negative attributes; be specific as to what’s wrong. For

example: Don’t say: “You always make mistakes.” Say: “During the past month you had six reconciliation errors on client reports.”

• Mention positive aspects to help soften the situation. • Set a separate time for the salary discussion.

15. How long should the discussion last? Set aside at least one hour for each individual. This will allow for a comprehensive discussion of the appraisal and the review of current goals and setting future goals, plus any other issues that you both wish to discuss. 16. When and how should I end the interview? Conclude the discussion when the employee knows where he or she stands and what plan of action is necessary for improvement.

• Summarize key points. • Review steps the employee is going to take to improve, e.g., “Okay, here’s what we’ve

agreed to do…have you any questions about it or anything else we’ve discussed?” • Put it in writing either during or after the interview. Ask the employee to sign the

agreement and date it. • Follow your firm’s policy regarding signatures and records retention.

17. Some of my supervisory staff are preparing Performance Appraisals for the first

time…what advice can I give to them as they begin the Performance Appraisal process with their groups?

Good advice is to:

• Approach the employee as an equal.

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• Maintain the employee’s self-esteem; don’t threaten or act superior. • Ask questions that require descriptive detailed responses; this will help establish two-

way communication. • Stay on track with the discussion and give the most time to the most important items. • Allow the employee to help with setting specific goals for him/her. • Make sure the employee knows how to achieve the goals that have been decided on.

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INTRODUCTION TO THE PERFORMANCE APPRAISAL FORM

An overview of the key steps in the performance management cycle was provided in previous sections of this Guide. This section provides a sample of a Performance Appraisal Form that can be used as is or customized to meet your firm’s needs. This form includes the following parts: Part I: Goals Assessment: This section is where you document the achievement of

the performance and developmental goals agreed upon with your employee during the past 12-month cycle.

Part II: Job Performance Assessment: This section allows you to list the key

responsibilities for the position being evaluated. Part III: Competency Assessment: This section identifies nine (9) core competencies

(knowledge, skills, abilities, and behaviors) applicable to many jobs. You rate the employee on those most applicable to him/her.

Part IV: Overall Performance Assessment: This section is your summary judgment

of the employee’s overall performance. Part V: Goals and Developmental Plans: This section is for new goals and

objectives for the next appraisal period.

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Company Name

Performance Appraisal/Self-Assessment

NAME REVIEWING SUPERVISOR/MANAGER

POSITION/TITLE DATE OF LAST REVIEW

DEPARTMENT/BRANCH CURRENT REVIEW DATE

Definition of Performance Ratings

When completing Sections I (Goals), II (Job Performance) and IV (Overall Performance), use the following definitions to indicate the employee’s level of performance: Far Exceeded Expectations (FE)

Consistently exceeded all established performance and developmental goals and client expectations. Other factors may include: Achieved measures that were extremely difficult Achieved results under difficult circumstances (i.e., revenue, resource, market constraints) Generated substantial cost reductions and/or revenue enhancements Successfully identified and pursued unforeseen opportunities to make a contribution

The (FE) rating is an unusually high rating of performance that is used only for top performers.

Exceeded Expectations (EX)

Exceeded expectations in many of the established performance goals, and achieved performance expectations in all others. Overall job performance was excellent. In addition, consider factors listed above.

Met Expectations (M)

Consistently achieved all agreed upon performance expectations except for those with significant unexpected constraints that prevented him/her from doing so. Overall job performance was good.

Needs Improvement to Meet Expectations (NI)

Did not achieve established goals or perform job responsibilities fully. Met expectations relative to some established goals but did not meet expectations with respect to others. This rating is an indication that further development is needed. The employee could be new to the job and not yet fully performing all aspects of it.

Failed to Meet Expectations (FM)

Consistently failed to meet established performance goals. Overall job performance is below average. Further development and/or disciplinary measures are needed.

When completing Section III (Competency Assessment), use the following definitions to indicate the employee’s level of performance: (This is ongoing and in the present tense.) Strength (3)

Performs exceptionally well in all or most areas of this competency and serves as an example to others. Results consistently surpass all defined expectations by a wide margin. Routinely demonstrates an ability to excel in a large variety of assignments. On new assignments, learning progress frequently exceeds expectations.

Fully Competent (2)

Performs effectively in many areas of this competency with few areas of improvement needed. Results consistently meet the defined expectations. On new assignments, learning progress meets expectations.

Development Needed (1)

Does not perform effectively in most of this competency, and improvement is needed in several aspects. Results fall short of defined expectations to a degree that cannot be allowed to continue. On new assignments, learning progress does not meet expectations.

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PART I: Goals Achievement Assessment List below the job goals, projects or developmental plans agreed upon during the last performance appraisal. Check the rating box to indicate the actual level of performance and write comments describing the specific results to explain each rating. Use the following to rate the level of performance:

Far Exceeded Expectations

(FE)

Exceeded Expectations

(EX)

Met Expectations

(M)

Needs Improvement to Meet Expectations

(NI)

Failed to Meet Expectations

(FM) Goal:

Rating Results Achieved:

Goal:


Goal:


Goal:


Goal:


Goal:


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PART II - Job Performance Assessment

List below the key responsibilities for the position. If there is a job description, use the duties outlined in the job description to complete this section. For each, select the rating that represents the level of performance and ability to get the job done (knowledge, quantity and quality of work). Support each rating by describing the performance results.

Far Exceeded Expectations

(FE)

Exceeded Expectations

(EX)

Met Expectations

(M)


(NI)

Failed to Meet Expectations

(FM) Key Responsibility #1

Rating

Performance Results:

Key Responsibility #2

Rating Performance Results:















Attach a separate sheet if needed.

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PART III – Competency Assessment

Record the rating below which indicates the level of competency the employee demonstrated in each area. A competency is generally defined as a group of behaviors (knowledge, skills, attributes, etc.) that distinguish excellent performers. The following reflects the firm’s core competencies and expectations for its employees. Write N/A if a competency is not required for the employee being evaluated. Record specific examples and comments to support each rating.

Strength (3)

Fully Competent (2)

Development Needed (1)

Business Knowledge Demonstrates a strong knowledge of the business. Examples include: • Has fundamental knowledge of types of investments • Understands his/her role and its contributions to the department/company • Has knowledge of operations, business systems and processes • Has solid understanding of compliance and correspondence policies • Recognizes business development opportunities

Assessment:

Examples/Comments: Communication Skills Demonstrates strong verbal and written communication skills. Examples include: • Clearly articulates thoughts and ideas • Is diplomatic in communication • Listens to ensure understanding prior to making decisions or taking action • Uses professional language • Creates clear and concise written communications • Uses electronic communications appropriately • Extracts and communicates necessary technical information • Follows appropriate business protocol and phone skills

Assessment:

Examples/Comments: Client Service Orientation Demonstrates a strong service orientation when interacting with customers. Examples include: • Conveys a “welcoming” attitude to internal and external clients • Demonstrates a sense of urgency around meeting client needs • Responds quickly and appropriately • Takes ownership/accountability of issues • Demonstrates professional demeanor in all situations (e.g., high stress, down market) • Builds rapport with clients • Knows the client (internal and external) and delivers personalized services based on that knowledge

Assessment:

Examples/Comments:

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Leadership Demonstrates strong leadership skills. Examples include: • Sets and communicates job requirements, performance goals and expectations to staff • Supports employee development with ongoing coaching and feedback; ensures subordinate

supervisors are providing feedback • Has knowledge of Human Resources and Compliance policies and practices; applies them

with consistency and good judgment • Values diversity • Encourages employees to be innovative and share ideas • Delegates effectively • Demonstrates effective budgeting and fiscal responsibility • Mentors others and “models the way”

Assessment:

Examples/Comments: Personal Resilience Demonstrates resilience when pressed or stretched. Examples include: • Demonstrates emotional and intellectual flexibility • Stays calm and focused when under pressure • Does not take things personally • Has the ability to deal with multiple personalities • Has a good sense of humor, perspective and self-awareness • Maintains objectivity

Assessment:

Examples/Comments: Problem Solving / Critical Thinking Demonstrates strong reasoning skills and judgment when solving problems. Examples include: • Differentiates between when supervisory input is needed vs. when it is not • Identifies the issue and thinks it through sequentially • Differentiates symptoms from causes • Identifies problems; gathers facts and other appropriate resources needed to resolve issues • Understands available options and recommends/implements solutions • Follows established processes and procedures

Assessment:

Examples/Comments: Productivity Demonstrates initiative and a strong work ethic; produces results. Examples include: • Manages time appropriately • Plans and organizes • Works well under pressure to meet daily deadlines and client requests • Reacts quickly and responds appropriately • Has ability to multitask and prioritize • Sees the big picture • Demonstrates initiative • Is proactive and accountable

Assessment:

Examples/Comments:

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Team Player Demonstrates a strong sense of teamwork and works effectively with others. Examples include: • Develops effective working relationships at all levels across all departments • Fosters a trusting, empowered environment • Encourages information sharing, constructive criticism and cooperation • Values differences and diversity • Fosters innovation through sharing ideas • Is skilled in negotiation and conflict resolution • Is committed to obtaining firm-wide, department and unit results • Respects and supports the ideas of others • Displays a willingness to mentor others

Assessment:

Examples/Comments: Technical Skills Demonstrates a solid understanding of the technology and technical skills needed to perform the job. Examples include: • Uses current technology and tools to solve customer issues (internal and external) and

maximizes productivity • Has ability to learn software packages • Demonstrates strong mathematical skills (e.g., numeric, computational, logic, analysis)

Assessment:

Examples/Comments: Additional Comments

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PART IV - Overall Performance Assessment

Based on the employee’s performance, results and demonstrated competencies during the appraisal period, circle the rating below that most closely summarizes his/her overall effectiveness. Additionally, provide a statement that summarizes the employee’s overall performance.

Far Exceeds Expectations

(FE)

Exceeds Expectations

(EX)

Fully Meets Expectations

(M)


(NI)

Fails to Meet Expectations

(FM)

Supervisory Summary:

PART V - Goals and Developmental Plans Step 1: List below any new goals and objectives for the employee to complete during the next appraisal period. Goals may include job goals (focusing on tasks, knowledge or projects which are measured by achieving specific results) or developmental goals (focusing on skills which are measured in terms of competency). For each goal, be specific when describing action plans, check points, target dates and results expected. Step 2: At mid-year, describe the employee’s progress and revise goals as necessary. Goal:

Mid-Year Comments:

Goal:

Mid-Year Comments:

Goal:

Mid-Year Comments:

Goal:

Mid-Year Comments:

Goal:

Mid-Year Comments:

Goal:

Mid-Year Comments:

Employee Comments: ____________________________________________ Employee’s Signature Date I have discussed this evaluation with my supervisor and have been provided a copy of my performance appraisal.

____________________________________________ Supervisor’s Signature Date I have discussed this evaluation and developmental plans with the employee.

Client Feedback Form

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Completed by: Business Unit: Employee: Date:

Describe the work being evaluated.

Please identify your performance criteria for the work completed and assess your satisfaction:

Performance

Criteria

Assessment

What are the employee’s demonstrated strengths in supporting your business? (Cite specific examples.)

What could the employee have done to more effectively support your business? (Cite specific examples.)

Can we use your name when providing this feedback? Yes ____________ No ______________

Thank you. Please return or fax this form to: ____________________.

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Client Feedback Form

Completed by: Business Unit: Employee: Date: Please rate your satisfaction:

1. Does the employee meet agreed upon objectives and commitments?

Highly Satisfied Satisfied Not Satisfied Not applicable

2. Does the employee demonstrate a sense of urgency around meeting deadlines?


3. Does the employee demonstrate ownership and accountability?


4. Does the employee identify issues and recommend solutions to improve results?


5. Does the employee develop effective work relationships?


6. Does the employee demonstrate the required knowledge and skills?


7. Does the employee demonstrate the required knowledge of your business area or function?


8. Please identify the employee’s demonstrated strengths in supporting your business. (Cite specific examples.)

9. Please identify what the employee could have done to more effectively support your business. (Cite specific examples.)

10. Please provide any additional comments:

Can we use your name when providing this feedback? Yes No

Thank you. Please return or fax this form to:_______________________.

performance management guide

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