A different model for team appraisals

Fernando Palomo GarcíaNovember 2013

Why traditional models suck

They are a distant system of control, not a system of engagement

Why traditional models suck

They foster competition amongst members instead of collaboration

Why traditional models suck

Top-to-down , 1 to 1. Leader to follower

Why traditional models suck

Focused in COMPLIANCE rather than COLLABORATION

Why traditional models suck

Appraisals don’t help conveying corporate values, their only focus is economic ( bonuses, salary upgrades... )

Why traditional models suck

Already identified by Deming* ( author of the Plan-Do-Check-Act cycle ) as one of the 7 deadly diseases of any organization

http://en.wikipedia.org/wiki/W._Edwards_Deming#Seven_Deadly_Diseases

Another model

The knowledge era: people are well prepared, reaching job satisfaction requires:• Mastery• Autonomy• Purpose

“When it comes to intellectual activity, money doesn’t work as motivation booster”Daniel H. Pink, ‘DRIVE’ http://www.youtube.com/watch?v=u6XAPnuFjJc

Another model

No more monetary bonuses linked to individual performance. Ensure everyone in the company feels well paid, lucky to be here.

“Pay high enough salaries to take the money off the table,so people can focus on their job”

Daniel H. Pink, DRIVE : http://www.youtube.com/watch?v=u6XAPnuFjJc

Another model

Every member must be engaged and feel responsible to educate, integrate and help the rest of members

Another model

Pay your employees what they deserve. Based on:• What the employee could get

elsewhere• What we would have to spend to

replace him• What we would be willing to pay

to keep him in his job

Another model

Evaluations should be used to educate people in the organization values.

Another model

A global bonus based on the organization results is welcomed, but NOT mandatory. Percentage should be fixed and based on employee salary.

Another model

Peers, not managers, decide who gets rewarded. Rewards must not be exclusionary.

Another model

Education is a continuous topic, not a 6 / 12 months matter.

Another model

All peers must choose their team members. The best compromise comes from our own decisions.

A practical approach

The organization discovers its own values – Courage– Openness– Technical Excellence– Quality–…

A practical approach

The members list daily actions that demonstrate commitment to the values• E.g. Openness:

– When I asked for feedback on my last task, the other person answered me honestly even though it felt uncomfortable.

– When I asked about my situation within the team, my manager didn’t hide his concerns.

– …

A practical approach

This list is alive and maintained continuously

A practical approach

The team creates “Value coins”• Courage coin• Openness coin• …

A practical approach

Every member is given a certain amount of coins periodically. The shorter the period, the better.

A practical approach

Every member gives coins to whomever sticks to the values:– If I see somebody does a good action

demonstrating she sticks to “openness”, I will pay her a coin of “openness”.

A practical approach

Teams agree on the money paid to a member.

A practical approach

Organizational managers evaluate the team members periodically, assessing their alignment to the values based on the amount of collected coins.

A practical approach

Members receive benefits based on how many coins they have received:• Per 5 “courage” coins you get a ticket for an extreme sport

activity• Per 5 “openness” coins you get a massage• Per 20 coins in the same month you get half day off• Per 60 coins covering all different values in a quarter you

get your name in any of our products• Per 2 consecutive quarters with 60 coins you get

interviewed for the internal magazine• …

A practical approach

Not just financial benefits, but mostly recognition

A practical approach

Be generous in the coin exchange to create a winning and aligned culture.

References

• http://www.danpink.com/books/drive/ , Drive from Daniel H. Pink

• http://www.management30.com/ , Management 3.0 book & courses from Jurgen Appelo

• http://techcrunch.com/2009/08/05/other-companies-should-have-to-read-this-internal-netflix-presentation/ , Netflix HR internal presentation