Appreciative Performance

Communication Process

Manual

Appreciative Performance Communication Process Manual

Contents Page

Purpose Statement 3

Process Design/Development 4

Key Changes 7

The APCP Forms 8

Steps for Completing the Process 8

Pay for Performance 10

Success Skills Time Management Assertiveness Listening Goal Setting Coaching Tracking Results

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Resources Supervisor’s Guide Employee’s Guide Success Log

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Appreciative Performance Communication Process

Purpose Statement

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We practice an Appreciative Performance Communication Process (APCP) that unleashes the capacities

of individuals, teams and the organization to create extraordinary results. This process recognizes and

communicates the value of each employee. It utilizes a simple and

inspiring feedback system that celebrates past success, clarifies

roles/goals, and aligns individual goals with

the organization’s strategic priorities.

PROCESS DESIGN/DEVELOPMENTEarly in 2006 a three-person Human Resources steering committee met to discuss how we might develop a new performance evaluation process that was fair, simple, and inspiring. The steering committee quickly decided that more employee input was needed so they invited an employee design team to assist in the development of a new system. The members of the design team represented most departments at Unity. Long-term employees as well as new hires were included in order to have wide diversity of experience as well as exposure to other organizations’ ways of managing performance. The 26 members of the APCP design team are shown below:

Employee Department Job TitleMichele Bartlett Circulation Manager Magazine CirculationCarol-Jean Shepherd

Composition Editorial Assistant

Terry Newell Creative Services Supervisor of Creative ServicesEvelyn Scipho Customer Service Supervisor of Customer ServiceLaura Harvey Daily Word Assistant EditorClarinda Dir Development Direct Response StrategistKurt Cross Finance Treasury ManagerGary Hild Food, Catering,

ConferencingExecutive Chef

Peggy Ball-Coleman

Human Resources Director of Human Resources

Kim Ames Human Resources Senior H.R. GeneralistGuy Howard Information Services Project Leader – InternetMax Yost Landscape Grounds ManagerKaron Shewmaker M.E.P. Senior Office ManagerRobbie Mockobey Mail Processing LeadSharon Sartin Marketing Administrative AssistantKathleen Kimberlin

Motels Motel Supervisor

Linda Pomeroy Purchasing SecretarySandra Drake Retreats Administration Administrative AssistantLisa Hurst S.E.E. Executive SecretaryKen Dunaway Security Security OfficerPatty Martin Shipping Magazine ProcessorLynne Brown Silent Unity

AdministrationVice President of Silent Unity

Aracely Spanish Services C. S. Repr/Online Specialist

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ChristensonKimmy Laughlin Special Services Manager of Special ServicesCarolyn Fliger Telephone Prayer

MinistryTPM Associate

Jim Jackson Telephone Prayer Ministry

Director of T.P.M

The project design methodology selected was an Appreciative Inquiry one-day mini summit held on February 7, 2006 with a half-day follow-up session on March 2. At the day-long mini summit, the design team participants conducted appreciative interviews in order to identify positive performance communication experiences. They analyzed the interview results in order to discover the positive core—the forces and factors that enable people and organizations to perform at their best. Participants also created a mind map (dream board) of all the factors necessary for positive performance communication. The summit

ended with the participants, working in small teams, identifying a list of recommended changes

to the current Performance Evaluation Process along with a list of the potential benefits for

making these changes. Their suggestions, color-coded by team, are shown below:

Recommended Changes Benefits Eliminate Forced Distribution Increased MoraleNo Math Equations Well Defined Roles360º Whenever Possible Better time Management with SimplicityType of Rating “3” ConsistencySelf Evaluation Changing the System – Peer BasedNo Forced Ranking Growth Opportunity – IndividualStarting on Anniversary Then Every 6 Months

Career Pathing

Identify Growth Opportunities Training, Advancements, etc.Eliminate Forced Ranking & Distribution Positive AffirmativeAnonymous Manager Review Inclusive InvolvementPositive Feedback from Peers RecognitionCareer Development & Opportunity Building Trusting RelationshipsEmployee’s Input in Goals Building MoraleManagement and Employee TrainingRealistic Goals Clear GuidanceLess Emphasis on Divisional Goals ConsistencyReward for All CommunicationNo Forced Ranking IncentivesConsistency OpportunitiesSafe Feedback with SupervisorsNo Unattainable RatingsPeer Process Depending on DepartmentFewer Pages Energizes EmployeesNo Calculations Simple to FollowNo Forced Distribution Builds Morale

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Quarterly Dialogue MotivatesClear Guidelines: Goals Meaningful ● What it

means Training for all employees ● Goal

of Process

Empowerment

Three Categories for Goals/Objectives: Strategic Goals based on Action Plans

& Projects Operational Goals based on day-to-

day activities, job descriptions, and projects.

Personal Development Goals based on identify training opportunities, career development, and recognizing strengths.

Open Communication

Builds Self Esteem

At the end of the one-day mini summit, the three-person HR steering committee took these recommended changes and drafted a new performance communication process using the Appreciative Inquiry 4-D model shown below as the framework.

As the HR steering committee worked to translate the design team’s “wish list” (recommended changes) into a new performance communication process, they explored the processes of other organizations and brainstormed options with the participants who attended a week-long

Appreciative Inquiry “4-D Model”

Dream“Imagine what might be ”

Destiny“Create what will be ”

Design“Determine what

should be”

Discovery“Appreciate what is ”

Positive Core

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Appreciative Inquiry Foundations Workshop, February 13-17 at Unity. While the steering committee experimented with new performance management design options, the design team members were busy interviewing their co-workers about their positive experiences with performance communication. On March 2 the HR steering committee and the design team reconvened to present their finding. They analyzed co-worker interview data and critiqued the draft of the new process presented by the HR steering committee. The second meeting ended with a detailed list of “next steps” and a discussion of ways to neutralize and/or transcend the perceived barriers to making these changes.

The HR steering committee made the requested revisions to the new process and presented the new form, along with recommended changes in the merit bonus system, to the Executive Team on March 29, 2006. The new Appreciative Performance Communication Process was approved with minor revisions.

KEY CHANGESOur new Appreciative Performance Communication Process (APCP) is quite different from our previous performance evaluation process. The key changes are listed below:

The APCP process focuses on the positive. It is grounded in the Unity belief that we create our reality with our thinking. What we choose to focus on increases. Thus, this new system will help both managers and employees focus on and celebrate past successes in order to create an even more successful future.

This new process is designed to promote open communication. Employees are actively involved in the performance communication process. They are involved in discussing past successes, selecting future goals, and identifying in collaboration with their supervisor their own career development needs.

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The new APCP process provides more frequent feedback. Employees schedule their own meetings with their managers and determine the frequency of feedback—two, three, or four times a year. More frequent performance communication enables managers and employees to keep their expectations aligned.

This new process is simple and easy to administer. It requires no mathematical calculations and it eliminates forced rankings among employees.

The APCP process is more objective as it uses only three rating options: Meets Goals (MG), Exceeds Goals (EG), or Growth Opportunity (GO). Three-level rating scales are more reliable than scales with more rating options. They reduce subjectivity because it is much easier to tell the difference in three levels of performance than it is to differentiate between four or more levels. Three-level systems also help break the old “academic grading” mindset which often causes people to translate five ratings into A, B, C, D, & F. Additionally, all managers and employees will be trained in how to write measurable goals which will greatly reduce the subjectivity of the rating process.

THE APCP FORMSThe new Appreciative Performance Communication forms can be found in the Resources section of this manual (pages 16-18). The forms consist of a “Supervisor’s Guide” and an “Employee’s Guide.” These two forms will be used each spring (May-June) for the annual supervisor/employee performance review session. They will also be referenced during mid-year, follow-up meetings that will be held two-four times a year (employee’s choice). The dialogue questions from the two forms are posted on the Intranet at Unity for easy pre-meeting review. The actual forms can be ordered from the Shipping Department.

STEPS FOR COMPLETING THE PROCESS

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In April of each year, the HR department will send out an all-employee email reminding employees to schedule their annual Appreciative Performance Communication meeting. In this new process, it is up to the employee to contact her/his supervisor to schedule the Appreciative Performance Communication meeting. This puts the employee in charge of assuring the timeliness of performance feedback. The supervisor should reserve an appropriate meeting room. Typically one-hour should be scheduled for each performance communication meeting.

The supervisor will open the meeting by asking the employee the questions listed in Step 1 and Step 2 on the APCP “Supervisor’s Guide.” After answering these five questions, the employee will then ask the supervisor the five questions listed under Steps 1 and 2 in the APCP “Employee’s Guide.” (Please note that each of the previous year’s goals are discussed and rated after the supervisor responds to Step 1, Question 1). Both employee and supervisor should bring a copy of the previous year’s goals to this review meeting along with supporting documentation (e.g., customer letters, management reports, co-worker comments).

After both the employee and supervisor have responded to the Discovery and Dream questions (Steps 1 & 2), they will proceed to Design (Step 3). In this step, the employee and supervisor will agree upon measurable performance goals. There should be at least one goal entered in each of the three categories: 1) Individual Goals; 2) Departmental/Team Goals; and 3) Organizational Goals. Individual Goals will typically be based on needs that were identified in the Step 2 (Dream) discussion. Department Goals will be based on the overall goals of the employee’s work group. Organizational Goals will be goals that support the key strategic initiatives of Unity. It is the supervisor’s responsibility to inform the employee of the department/team’s goals for the upcoming year as well as the strategic priorities of Unity. It is of critical importance that employees have the ability to control the outcomes of the team or organizational goals selected. The

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APCP goal-setting process is collaborative. Goals should be generated and agreed upon by both employee and supervisor.

The final step in the APCP process is Destiny (Step 4). In this final step, employees choose how many times during the upcoming year, they wish to meet with their supervisors to discuss their progress toward goals or to discuss any challenges/barriers they may be encountering. At a minimum, each employee and supervisor should have at least one mid-year performance meeting in order to assure that there are absolutely no surprises at the year-end APCP meeting.

Upon completion of the four steps in the Appreciative Performance Communication Process, the supervisor will assign an overall performance rating that will be based on the majority of individual goal ratings for the previous year. For example, if an employee receives four Meets Goal (MG) ratings, two Exceeds Goal ratings, and one Growth Opportunity rating, the Overall Rating would be “Meets Goals.” If there is a tie in the number of ratings, the supervisor will determine the overall rating based on the relative weight (importance) of the individual goals. The overall rating will determine employee eligibility for the annual Unity merit bonus program.

At the end of the performance review, both the employee and the supervisor sign the “Supervisor’s Guide” form and make additional comments, if desired. A photocopy of the APCP Steps 3 and Step 4 page should be given to the employee. After the Appreciative Performance Communication meeting, the supervisor sends the “Supervisor’s Guide” to her/his next-level manager for signature. After signing, the manager forwards the completed “Supervisory Guide” to Human Resources for filing.

PAY FOR PERFORMANCE

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In order to have a fair performance review process, performance goals must be achievable and specific enough to measure results. A “pay-for-performance” system rewards different levels of performance with different levels of compensation. Most companies with pay-for-performance systems tie annual salary increases to employee performance ratings. Currently, Unity adjust base salaries based on an annual cost of living adjustment (March) and as long as financially feasible will continue to do so. The new Appreciative Performance Communication Process will not alter this pay tradition. However, beginning in the Fall of 2007, all merit increase bonuses will be based on employee APCP overall ratings and will be contingent upon Unity meeting its budget goals.

SUCCESS SKILLSIn order for this new Appreciative Performance Communication Process to work, at least six skills are needed: 1) Time Management; 2) Assertiveness; 3) Listening; 4) Goal Setting; 5) Coaching; and 6) Data Collection/Analysis. Each of these skills is discussed in detail in this section. These skills are equally important for supervisors and employees. They are not only critical to the success of the APCP, they are critical to individual career success in any position.

Time Management: In order for this new Appreciative Performance Communication Process to work, everyone must complete his/her part of the process on a timely basis. In this new process, each employee is empowered to drive the process by scheduling his/her own review. A supervisor’s responsiveness to an employee’s request for a meeting date shows respect for the employee’s need for feedback and demonstrates the supervisor’s commitment to on-going employee feedback and development. Many time-management experts suggest that the best way to tell what is important to someone is to look at their calendar. If our employees are our most important asset, setting aside time for feedback and coaching must become one of our top priorities.

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Assertiveness: Empowerment requires assertiveness but many of us have not learned how to act assertively. In our society there are a lot more passive or aggressive role models than there are assertive ones. However, neither passive nor aggressive behaviors are compatible with this new Appreciative Performance Communication Process. Passive people are often victims. They let others run all over them. On the other hand, aggressive people are often perceived as abusive. They run all over others. There is a third option: assertiveness. Assertive people know how to express their needs or feelings in a way that doesn’t upset or offend others. They do so by using “I” statements. For example, if your supervisor cancels your APCP meeting, rather than passively withdrawing or aggressively criticizing, you can respond with an “I” message: “I feel disappointed (frustrated, etc.) because we have to cancel our meeting. When are you available to reschedule?” It is, of course, easier to feel victimized than it is to learn to be assertive; however the pay-off for learning this skill is huge. It can enable you to make things happen in a positive way in all aspects of your life.

Listening: A good performance feedback discussion requires two-way communication. Both the employee and the supervisor should be equally involved in speaking and listening. Both parties need to demonstrate their active listening skills. Active listening, as opposed to passive listening, means taking the time to find out if you truly understand what the other person said. Words are tricky. They don’t have universal meanings. What one person hears is not necessarily what the other person meant. The only way to prevent misunderstanding is to practice active listening by taking the time to check for understanding. Paraphrasing or summarizing what you think you heard, and asking for more information/explanation are good active listening tools. For example, if your supervisor says: “I’m really surprised by what you described as your biggest accomplishment.” Try not to jump to conclusions and immediately start defending your choice. Instead, ask for clarification. You might say: “What surprises you?” You may find that your supervisor was surprised because s/he had totally forgotten about that major success. Never

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jump to conclusions about another’s comments without taking the time to clarify. Each party should approach the APCP meeting with a willingness to seek first to understand before being understood.

Goal Setting: All people in the same job category have the same duties/responsibilities and expected results. However, people have different skill and experience levels and, therefore, may have different goals. The heart of this new Appreciative Performance Communication Process is goal setting for continuous improvement—for you and for Unity. In order to contribute effectively, you need clear direction. This direction comes through the goal-setting process. A good goal has four characteristics:

1. It begins with an action verb2. It is measurable3. It has a specific deadline4. It is realistic/achievable

Below are some example goals that meet these criteria: Eliminate unscheduled overtime hours starting 7-01 Decrease errors by 10% by 3-31 Improve communications skills (speaking and listening) by attending a

1-dayseminar and reviewing skills learned with supervisor prior to next

performancefeedback session

Using action verbs to write a goal helps you to focus on WHAT you want to accomplish. Some useful action verbs are:

Action Verbs

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Analyze Expand Produce MaintainControl Generate Write TrainDesign Implement Contact StreamlineDevelop Improve Reduce ProvideDirect Increase Complete ConductEliminate Prepare Operate Expedite

A “good” goal is always measurable. In other words, two or more people would all have some criteria by which they could agree whether or not it has been met. Performance measures typically fall into four categories:

Category

Performance Measure Example

1 Quantity Number of calls answered, number of training programs completed, number of products produces, number of employees cross-trained, etc.

2 Quality Reduction in errors, customer complaints, amount of waste OR improvement in quality, teamwork, communication, etc.

3 Cost Reduction in maintenance costs, supplies, employee overtime, turnover, travel, etc.

4 Timeliness Number of on-time projects, number of work orders completed by due date, etc.

The third characteristic of a valid goal is that it has clear time expectations. The due dates for most goals will be the date of the next performance communication session. If a goal needs to be completed prior to the next

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APCP session, the target date should be clearly indicated in Step 3 (Design) on the APCP “Supervisor’s Guide.”

Performance goals must also be realistic. It is up to you and your supervisor to determine what is realistically attainable within a specific time period given the resources available and the other expectations already in place. Sometimes it may be necessary to “carry over” goals from one year to the next due to the shifting priorities of the team/department/organization.

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Coaching: None of us ever outgrow our need for feedback and support. Without assistance from others, we tend to stay stuck in old beliefs and behaviors even though things around us are changing at warp speed. In the traditional workplace, the supervisor was the one who gave feedback and coaching. In team-based work environments, we all need to learn to act as coaches. Good coaches:

Encourage their team members to do their best Recognize and celebrate team members’ accomplishments Provide timely and specific feedback to team members when

requested Share knowledge and experience with the team

What might happen to your job satisfaction and your department’s productivity if all employees at Unity took daily time to coach their fellow team members?

Tracking Results: Both employees and supervisors should track progress toward the agreed upon goals. For some jobs, performance can be tracked with existing computerized reporting systems (e.g., financial or production reports). For other jobs, a manual tracking system is required. The Resource section of this manual has a simple “Success Log” (page 19). Each employee can photocopy this log and use it to keep track of progress towards goals. Supervisors should keep a log sheet for each direct report and should enter successes as they occur. On-going performance tracking enables both employees and supervisors to have more objective performance discussions. Without this information two laws of human behavior tend to influence performance discussions: 1) the law of recency is the tendency to remember (and discuss) only recent performance rather than review the entire performance period; and 2) the law of negativity is the tendency to remember mistakes more clearly than successes. Keeping a real-time success log can neutralize these human barriers to objective performance reviews.

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RESOURCES

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Supervisor’s Guide

Employee Name: Department:

Job Title: Supervisor:

Step 1: DISCOVERY (Reviewing the Past)(Complete steps 1 and 2; employee follows with steps 1 & 2 from “Employee’s Guide”)

Reflect on your job performance over the past year…

1. As you think about your goals for last year, what accomplishments are you most proud of? What are you doing that works? Give yourself credit for even the little things you do that bring you a feeling of success or accomplishment.

2. What factors contributed to these successes? What caused things to work out well? What has allowed you to do your best work (for example your work team, co-workers, customers, or the work environment)?

3. How do your accomplishments benefit or enhance the lives of others?

Step 2 – DREAM (Imagining the Future)

1. To become even more successful in your work, what do you want to continue to do, do more of, do better, or do differently? Of all these possibilities, which are the ones you really want to focus on? (Remember to include in next year’s goals-Step 3)

2. As your supervisor, what would be the most important thing for me to do or say to support you in achieving your goals? What additional resources do you need to be successful this year? For example: training, job shadowing, coaching, equipment, materials, etc. (Remember to include in next year’s goals-Step 3)

Step 3 – DESIGN (Setting Goals)(Supervisor and employee complete this step together after the employee asks the Step 2 questions)

Rating OptionsGrowth Opportunity (GO): Additional development needed to meet targeted results.

Meets Goals (MG): Achieved the targeted results.

Exceeds Goals (EG): Performed significantly above and beyond targeted results.

Individual Goals RTG Departmental/Team Goals RTG Organizational Goals RTG

Step 4 – DESTINY (Staying on Track)1. How often would you like to meet to talk about your performance and celebrate your accomplishments?

Two times a year □ Three times a year □ Four times a year □Signatures Overall Rating:Employee: Date:Supervisor: Date:Manager/Director/V.P. Date:Employee’s Comments:

Supervisor’s Comments:

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Employee’s Guide

Employee Name: Department:

Job Title: Supervisor:

Step 1 – DISCOVERY (Reviewing the Past)(Complete steps 1 and 2 after your supervisor)

Reflect on my job performance over the past year…

1. Considering all of my goals, what do you see as my most important accomplishments? What are you most proud of? What am I doing that works well? (After your supervisor’s response, please review the status of each of last year’s goals)

2. What do you think contributed to my successes? What caused those things to work well for me? What has allowed me to do my best work?

3. What positive difference does my work make for you, my co-workers, or others at Unity?

Step 2 – DREAM (Imaging the Future)

1. To help me be even more successful in my job/career, what do you want me to continue to do, do more of, do better, or do differently? Of all these possibilities, which are your priorities? (Remember to include in next year’s goals-Step 3)

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2. What additional resources or support do you think would help me be successful this year? For example: training, job shadowing, coaching, equipment, materials, etc. (Remember to include in next year’s goals-Step 3)

APPRECIATIVE PERFORMANCE COMMUNICATION PROCESSSUCCESS LOG

Employee ________________________________ Supervisor____________________________________

Use this form to list specific examples of successful progress toward performance goals. Incidents may include comments, observations, customer feedback or any other performance-related information.

DATE COMMENT/OBSERVATION SOURCE

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