The document discusses reinventing and managing performance in the 21st century. It notes that traditional annual performance reviews are outdated and drive neither engagement nor performance. Many organizations now take a more agile, continuous, and development-focused approach to performance management. This involves frequent feedback, goal setting and adjusting, coaching, and recognition. While performance management software is increasingly used, current tools often do not fully support new needs like coaching tracking and socially-derived feedback. Overall organizations are shifting to a more ongoing, flexible, and simple approach focused on growth over assessment.

1. Managing Performance in the 21st Century
Katherine Jones, Ph.D.
Vice President, HCM Technology
Bersin by Deloitte
Deloitte Consulting LLP
August 20, 2015

2. Copyright © 2015 Deloitte Development LLC. All rights reserved.1 Managing Performance in the 21st Century
Reinventing Performance Management
According to one organization
surveyed, 2 million hours a year
are spent on performance ratings
Source: “Reinventing Performance Management,” HBR.org / Marcus Buckingham and Ashley Goodall, April 2015,
https://hbr.org/2015/04/reinventing-performance-management.
58% of surveyed execs report
PM drives neither engagement
nor higher performance
Questioning Conventional
Wisdom:
• Cascading Objectives
• Once a year rankings and
reviews
• Backward-looking
assessments
• 360⁰ feedback tools

3. Copyright © 2015 Deloitte Development LLC. All rights reserved.2 Managing Performance in the 21st Century
• How Performance Management is Changing
• What Users Tell Us
• Today’s Technology Choices
Agenda

4. The purpose of Performance
Management should be to support
and improve an employee’s
performance – not just assess it

5. Copyright © 2015 Deloitte Development LLC. All rights reserved.4 Managing Performance in the 21st Century
The Evolution of Performance Management
Evolving From
Annual Event
Burdensome, Fixed
Centralized, Deferred
Appraisal Focused
Remediation
Evolving To
Ongoing
Business Process
Flexible, Agile, Simple
Local, Real-Time
Development-Focused
Continuous Improvement
Source: Bersin by Deloitte research, 2014.

6. Copyright © 2015 Deloitte Development LLC. All rights reserved.5 Managing Performance in the 21st Century
Performance Management Framework
An at-a-glance view of how PM fits together
Multi-level Structure
Key Messages
Performance Appraisal
Ongoing Performance Activities
Performance Management Outcomes
Audience
Performance Management (PM) Strategy
Technology&Infrastructure
Organization&Governance
Goal-Setting
& Revising
Managing &
Coaching
Development
Planning
Rewarding &
Recognizing
Source: “The Performance Management Framework,” Stacia Sherman Garr / Bersin & Associates, 2011.

7. Copyright © 2014 Deloitte Development LLC. All rights reserved.6 Abolishing Performance Scores: A Practical Guide
Performance Appraisal
Ongoing Performance Activities
Performance Management Outcomes
Audience
Performance Management (PM) Strategy
Technology&Infrastructure
Organization&Governance
Goal-Setting
& Revising
Managing &
Coaching
Development
Planning
Rewarding &
Recognizing
HOW WHAT
The Six Elements of a PM Strategy
Performance Management Strategy
4. Clarify expected leader behaviors
5. Design for PM Sustainability
6. Plan for TM Integration
1. Determine purpose of PM
2. Identify PM philosophy
3. Align PM philosophy to strategy and culture
Source: “The Performance Management Framework,” Stacia Sherman Garr / Bersin & Associates, 2011.
How to Manage Performance in the 21st Century

8. Copyright © 2014 Deloitte Development LLC. All rights reserved.7 Abolishing Performance Scores: A Practical Guide
2. Identify PM Philosophy
Behavior is Derived from Our Thinking
Behaviors
Systems:
Practices
Assumptions /
Theories
Source: “Getting Away from the Score: Creating Better Ongoing Performance Feedback,” Bersin & Associates, 2012.
How to Manage Performance in the 21st Century

9. Copyright © 2014 Deloitte Development LLC. All rights reserved.8 Abolishing Performance Scores: A Practical Guide
Business
Strategy
TM
Strategy
PM
Purpose &
Philosophy
3. PM Alignment to Strategy & Culture
Organizational
Culture
Organizational
Culture
Source: “High-Impact Performance Management: Designing a Strategy for Effectiveness” Stacia
Sherman Garr / Bersin & Associates, 2011.
How to Manage Performance in the 21st Century

10. Copyright © 2015 Deloitte Development LLC. All rights reserved.9 Managing Performance in the 21st Century
But Are We Very Good at it?
81% of respondents identified connecting performance goals to organizational
outcomes = Extremely important
52% of respondents thought they were successful
73% of respondents identified motivating staff to meet or exceed goals =
extremely important
42% of respondents thought they were successful in doing so…..
Source: Connecting Workforce Analytics to Better Business Results. Harvard Business School Publishing.
2013.

11. Copyright © 2015 Deloitte Development LLC. All rights reserved.10 Managing Performance in the 21st Century
What Users Tell Us: 2015
67% of surveyed buyers of talent technology were planning to
purchase performance management software, either for the first time or as
a replacement for existing solutions.
Why?
• Increasing attention to its criticality
• Current solutions are aging
• Consolidation of multiple systems reigns
75% of those respondents replacing existing software = replacing a
standalone app with an integrated suite solution.
Investments in Human Capital Management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead.
Katherine Jones. Bersin by Deloitte. April 2014.

12. Copyright © 2015 Deloitte Development LLC. All rights reserved.11 Managing Performance in the 21st Century
What technology to you use to manage your employees’ performance today?
 An application within our ERP program
 A module from an integrated talent management suite
 A standalone performance management application
 Paper and pencil
 None of the above
Question for the Audience
Henry– can we have a poll????

13. Copyright © 2015 Deloitte Development LLC. All rights reserved.12
Goals: An Overlooked Weapon for Success
SVP
VP
Director
Director
VP
Director
Director
VP
Director
Director
Underlying Assumption of Traditional Approach
Yet, network tends to be much more aligned to
the reality of how work is done
Hierarchy… …Not Network
How to Manage Performance in the 21st Century

14. Copyright © 2015 Deloitte Development LLC. All rights reserved.13 Managing Performance in the 21st Century
Why Coaching? Why Now?
Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015.

15. Copyright © 2015 Deloitte Development LLC. All rights reserved.14 Performance Management: Top Trends and Leading Practices
Surveyed Organizations That Support Performance
Coaching Report Better Talent Outcomes
3.31
4.71
5.78
1.00
2.00
3.00
4.00
5.00
6.00
7.00
No or Weak Support Good Support Excellent Support
TalentManagementIndex
Degree of Cultural Support for Coaching
Source: Bersin & Associates 2011 High Impact Performance Management research, n=193
How to Manage Performance in the 21st Century

16. Copyright © 2015 Deloitte Development LLC. All rights reserved.15 Managing Performance in the 21st Century
Coaching Support is Often Limited
21%
38%
52%
55%
24%
21%
17%
10%
55%
41%
31%
34%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Provides automated coaching
tools
Links to just-in-time coaching
information
Provides workflows to track
coaching and mentoring
conversations and activities
Enables managers to assign a
coach or mentor to the employee
Yes Partial
No
Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015.

17. Copyright © 2015 Deloitte Development LLC. All rights reserved.16 Managing Performance in the 21st Century
Perceived Efficacy of Development Plans
Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015

18. Copyright © 2015 Deloitte Development LLC. All rights reserved.17 Managing Performance in the 21st Century
Employee Recognition: Surveyed Organizations
That Recognize Employees Have Lower Voluntary
Turnover
10.5%
8.7%
7.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Poor (1-2) Fair (3-4) Excellent (5)
VoluntaryTurnoverRate
Effectiveness of Recognition Program at
Improving Engagement
31% reduction in
voluntary turnover
Source: “High-Impact Performance Management: Making Recognition &
Rewards Matter,” Stacia Sherman Garr / Bersin & Associates, 2011.

19. Copyright © 2015 Deloitte Development LLC. All rights reserved.18 Managing Performance in the 21st Century
Socially-Derived Feedback Used to
Understand Performance
.. Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015

20. Copyright © 2015 Deloitte Development LLC. All rights reserved.19 Managing Performance in the 21st Century
Socially-Derived Feedback Used to
Understand Performance
Source: Saba Software. 2014;

21. Copyright © 2015 Deloitte Development LLC. All rights reserved.20 Managing Performance in the 21st Century
What performance-related technologies would you most like to add to your PM
processes today?
 Analytic dashboards
 Socially-derived feedback
 Coaching support for managers
 Mobile support for feedback to employees
 Better alignment for with development planning
 Improved support for cross-team performance
Question for the Audience

22. Copyright © 2015 Deloitte Development LLC. All rights reserved.21 Managing Performance in the 21st Century
 Performance management apps are the most noted software
application area targeted for investment in 2014-15.
 Most buyers seek performance management software as part
of an integrated talent management suite
 Ongoing coaching and feedback is becoming a primary
element of performance development in many high-impact
organizations; only a subset of software applications are
supporting coaching management and tracking today.
 Applications supporting performance management should be
agile, simple, and responsive to real-time needs, focusing
more on development than appraisal, employee strengths
instead of remediation, and on data-driven outcomes instead
of assumptions.
Conclusion
Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. April
2014.

23. Q&A
Dr. Katherine Jones
LinkedIn: Dr. Katherine Jones
Twitter: @katherine_jones
Email: kathjones@deloitte.com
For More Information:

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