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Companies today are no longer defining employee performance simply by annual review numbers. Instead they are revamping their existing performance management process with an emphasis on ongoing, quality conversations between managers and teams.

Performance Management Traditional Reasons to

Highlights of the July 2014 InsideOut Development Survey

HERE’S WHY YOU SHOULD JOIN THEM.

DUMP4

& What to do instead

ONLY 10% of enterprise companies believe that performance management is a GOOD USE OF TIME

The traditional performance management system

DATES BACK TO THE LATE 1800’S

Output used to be the benchmark of performance; TODAY MORE THAN 70% of the U.S. workforce is employed in service or knowledge-related jobs

ONLY 8% of enterprise companies

believe the traditional performance

management process

DRIVES VALUE

10%

A�er companies remove rankings, managers talk to their teams about performance 4 TIMES MORE OFTEN

CONVENTIONAL RATINGS SYSTEMS INHIBIT COLLABORATION,

making a business less customer-focused and agile

of employees who receive the highest scores in a typical performance management system

ARE NOT ACTUALLY THE ORGANIZATION’S HIGHEST PERFORMERS

BY SEPTEMBER 2015,

were moving to a no-ratings system

51 LARGE FIRMS

23

4X

Have all transformed their

performance management models

of respondents to a recent Deloi�e survey said they had RECENTLY CHANGED THEIR

PERFORMANCE MANAGEMENT PROCESS or plan to do so within 18 months

Around 70% OF COMPANIES are now reconsidering their performance management

strategy

89%

Learn how coaching conversations can be a catalyst for higher performance in your organization.

CONTACT US TO HAVE A CONVERSATION TODAY.

Sources:Agile Performance Management: HR’s Next Big Move, Human Capital InstituteWhy More and More Companies Are Ditching Performance Ratings, Harvard Business Review, September 8, 2015Reinventing Performance Management, Harvard Business Review, April 2015Global Human Capital Trends 2015: Leading In the New World of Work, Deloitte University Press

1

2

IT’S SO OLD SCHOOL

IT’S A TIME AND RESOURCE BLACK HOLE

2 MILLION

Employees and managers spend around

HOURS A YEAR on performance reviews

Among companies with dynamic evaluation models, 88% OF EMPLOYEES

ARE COMMITTED TO RECURRING

CONVERSATIONS

55% OF EMPLOYEES said their organizations are

commi�ed to having recurring conversations between

managers and employees

The agile model ENCOURAGES A

CULTURE OF COACHING OR

DEVELOPMENT

Year-end ratings are generally less valuable than conversations conducted in the moment about actual performance conversations

“The method that is emerging [in place of traditional performance review models] is more agile and FOCUSES ON GOAL SETTING,

COACHING, AND PROVIDING MORE

CONTINUOUS FEEDBACK.” (Human Capital Institute)

88%

3 SCORES AND RANKINGS DON’T ADD UP

4 IT’S WHAT THE BEST COMPANIES ARE DOING

EXPLORING THE ALTERNATIVE: Agile Performance Management, Including Coaching Conversations