Performance Management Lecture #4

P U T T I N G T H E P I E C E S O N T H E B O A R D

P E R F O R M A N C E M A N A G E M E N T

Matthew Larsen Morava

B E F O R E W E E X P L O R E S T R AT E G Y, L E T ’ S F I R S T TA K E A L O O K AT W H AT T H E P I E C E S D O …

H I G H L E V E L O V E R V I E W

• The Egg and I — Our internal contents (values, dreams, wishes, memories, etc.) are fluid and open to influence

• Maslow’s Hierarchy — The higher you go in terms of work complexity, the more complex the reward and threat systems must be

• Herzberg’s Two Factor Theory — We can love and hate our jobs at the same time

• The Three Kinds of Happiness — Flow, as an employer/manager, is the one you have the most say over because you hire people

• Utopia, Inc. — Basically this is what’s known as HR Flow (different from Happiness Flow) which describes how people move through the organization

• E to P and P to O Ratios — The equations we make instantaneously before any undertaking

• Distorted Thinking and Vocabulary List — We don’t alway make the best assessments of our potential effort, performance and outcome

H I G H L E V E L O V E R V I E W

• Lewin’s Equation — The environment has a hell of a lot of power in shaping our behavior (performance)

• Total Compensation — Every reward an organization has to offer an employee; made up of both formal and informal

• Fred Kofman — Subsystems and Players: Subsystems are purposely made to be suboptimal, players own their power

• The Jungian Triangle — If there’s a victim, the other two roles (villain and savior) are automatically

• The Principles of Conscious Capitalism — Wall Street hates it when you won’t fire people

• Jeffrey Pfeffer’s Seven — What excellent organizations do and increase profit

• Matt’s Five C’s of Trust

• THINKING-FEELING-ACTION

• Kim Cameroon’s Cultural Model — Like people, organizations tend to follow a developmental path

• Situational Leadership

T H E E G G A N D I

Wants

Role Models

Needs

Genetic Heritage

Hopes

Goals

Knowledge

MemoriesExperiences

FearsDreams

Likes

Personality Aversions

Most of what’s inside of us is

open to revision and

manipulation. We’re not

“solid” beings in the sense of permanence.

M A S L O W ’ S H I E R A R C H Y O F N E E D S

H E R Z B E R G ’ S T W O FA C T O R T H E O R Y

http://www.mindtools.com/pages/article/newTMM_74.htm

H A P P I N E S S

Pleasure

• The ability to take pleasure in life

• The “Practices” of pleasure • Savoriness • Mindfullness • Appreciation • Gratitude

• The pursuit of pleasure doesn’t equate to more

happiness • Is the icing on the cake “if”

you have the other two forms of happiness

• Hardest happiness to change in others… some are “built” to enjoy pleasure, others not

so much, but that doesn’t make them unhappy

Flow

• Is the experience of a sense of timelessness

• Being in the zone • High levels of concentration • World slips away • Pain and being “present” in

your body is almost non-existent

• The practice of your deepest competencies

• The source for deep joy • Is the “easiest” for

organizations to create by matching talent/competencies

accurately with openings or giving time to practice

Meaning

• The active contributions one makes to a community,

organization or cause that one feels affinity towards

• Many organizations, especially in Silicon Valley, are

focusing on their “mission” first and how they care for

companies before worrying about the business and focusing on profit which

maybe hubris, but it is how things are going

• Another way to think of meaning is that it’s the

sacrifice were willing to make

http://www.ted.com/talks/martin_seligman_on_the_state_of_psychology?language=en#t-921395

U T O P I A I N C . A B B R E V I AT E D

Understand Vision, Mission, and Values Which Creates Organizational Culture

Which Create Compelling Goals VP of HR Has A Strategy for Talent & HR Flow

Starting With A Scope of Work Then Job Structures and Families

Then Talent Acquisition Plan Successful On-Boarding and Orientation

Development Plans and Training Mapped Out An Effective and Fair Performance Evaluation System

Effective Management and Leadership Succession Planning and Building Bench Strength

Dealing Directly With Performance Issues Employee Retention Strategy Employee Release Strategy Circles Back To Beginning

PS - No organization in the world has all of these moving parts down, not even the best!

P E R F O R M A N C E R AT I O S

E to P = If I Exert X Level of Effort, Can I Expect To Perform?

P to O = If I Perform at X Level, Are The Outcomes Compelling?

We make these calculations instantaneously and we make them for every single endeavor we undertake.

D I S T O R T E D T H I N K I N G

http://psychcentral.com/lib/15-common-cognitive-distortions/0002153

L E W I N ’ S E Q U AT I O N

Behavior = function of (Person + Environment)

When thinking about performance management, this equation is especially important because it keeps us focused on both the person and the environment. Both are equally important in performance management.

T O TA L C O M P E N S AT I O N

Formal Salary

Bonus Structure Stock Options

Medical Insurance Dental Insurance

Disability Insurance Life Insurance

Retirement Plans Paid Time Off Paid Parking

Travel Reimbursement Gym Membership

Employee Assistance Programs Relocation Expenses Education Expenses

Company Car

Informal Working Environment

Prestige Career Advancement

Professional Development Competency Training

Meaningfulness Challenge

Variety Personal Growth

Organizational Support Friendships

Sense of Accomplishment Organization Citizenship

Travel

The formal and informal represent the “carrots” most organizations provide, what are the “sticks” most organizations have at their disposal?

F R E D K O F M A N

Two Important Points:

1. That for any system to function effectively the subsystems must be

made to be suboptimal. This is done to exert greater control. While the

sub-optimization isn’t ideal, it’s better than the alternative.

2. Two ways to look at it: What you can control and what you can’t. Focusing

on what you can control gives you power, but it will cost you your

innocence.

https://www.youtube.com/watch?v=IdMvWLARF1w

T H E J U N G I A N T R I A N G L E

Victim

Villain Savior

If you have one of these archetypes, then the other two

are there somewhere, often hiding in the shadows

C O N S C I O U S C A P I TA L I S M

1. Don’t Be Evil — To People or Planet 2. Be Aware of Any “Conflict of Interest” Between Planet & People and Profit 3. People — Take care of all stakeholders from customers, suppliers,

manufacturers, and communities where raw materials originate 4. Care For The Environment — Recycle, renewables, build green, conserve

resources, use alternative energy sources, make sure the supply chain isn’t damaging the environment, work on “Cradle to Cradle” manufacturing, take

care of your “Cradle to Grave”

P F E F F E R ’ S S E V E N

1. Selective Hiring 2. Transparency 3. Self Directed Teams 4. Employment Security 5. High Wages for Position 6. Low Status Differences 7. Training and Development

M AT T ’ S F I V E C ’ S O F T R U S T

1. Competency 2. Character 3. Commitment 4. Consistency 5. Confidence

K I M C A M E R O N ’ S C U LT U R A L M O D E L

T H E D E V E L O P M E N TA L M O D E L

Symbiosis

DifferentiationPracticing

Reproachment

Direction

Support

K U R T L E W I N ’ S E Q U AT I O N R E V I S I T E D

Person Egg and I

Maslow’s Hierarchy Herzberg’s Two Factor Theory

Three Kinds of Happiness E to P Ratio P to O Ratio

Distorted Thinking The Jungian Triangle

Behavior = function of (Person + Environment)

Environment Utopia, Inc.

Total Compensation Fred Kofman

The Principles of Conscious Capitalism Pfeffer’s Seven

Kim Cameron’s Cultural Model

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N E X T S T E P S …

• Review each “piece” carefully to the point where you can talk about them with comfort

• Begin to explore how they’re interconnected

• Start thinking strategically about how you’d create effective performance management strategies