PIHRA Woodland Hills presents . . .
Thursday, February 6, 2014
Presenter: Paul Falcone
www.PaulFalconeHR.com
Author of . . .
 2600 Phrases for Effective Performance Reviews
 2600 Phrases for Setting Effective Performance Goals
 The Performance Appraisal Tool Kit: Redesigning
Your Performance Review Template to Drive
Individual and Organizational Change (new!) 
1
Paul’s Other Books
 101 Sample Write-Ups for Documenting Employee
Performance Problems: A Guide to Corrective
Action and Termination
 101 Tough Conversations to Have with Employees:
A Manager’s Guide to Addressing Performance,
Conduct, and Discipline Challenges
 96 Great Interview Questions to Ask Before You Hire
Outline of Today’s
Presentation
 Revised Performance Appraisal Grading Scale
 Rater Definition Consistency Tool
 Calibration Sessions
 Reinventing the Appraisal Template’s Form and
Content to Drive Future Results
 The Value of Quantitative Metrics
3
Bell Curves vs. “Rising
Strings”
 A healthy bell curve might look like this:
 ≤ 5%
Distinguished performance
 30%
Superior performance
 50%
Fully successful performance
 10%
Partially successful performance
 ≤ 5%
Unsuccessful performance
4
Healthy Bell Curve
5
“Rising String” Syndrome
6
Traditional Performance
Appraisal Grading Scale
 5—Superior
 4—Exceeds Expectations
 3—Meets Expectations
 2—Partially Meets Expectations
 1—Fails to Meet Expectations
7
A. Revised Grading Scale
5 - Distinguished Performance and Role Model:
Clearly and consistently demonstrates extraordinary
and exceptional accomplishment in all major areas of
responsibility. Others rarely equal performance of this
caliber in similar roles.
4 - Superior/Highly Effective Performance:
Performance is continually and consistently superior
and regularly goes beyond what is expected.
Performance consistently exceeds expectations.
8
Revised Grading Scale
(cont.)
3 - Fully Successful/Effective Performance: Performance
consistently meets the critical requirements of the position, and
the individual continually performs at the level expected.
2 - Partially Successful Performance/Needs Improvement:
Performance does not consistently meet or occasionally falls
below what is required of the position; improvement in specific
areas is required.
1 - Unsuccessful/Unacceptable Performance: Performance
fails to meet minimum expectations for this role, and
immediate and sustained improvement is mandatory.
9
B. Rater Definition Consistency Tool
5 - Distinguished Performance (< 5%)
Role model status. Potential successor to
immediate supervisor/highly promotable
now/possibility of skipping two steps in career
progression. Performed above and beyond under
exceptional circumstances during the review
period. Generally recognized #1 (Top 5%)
ranking among peer group.
10
Rater Consistency Tool
(cont.)
4 - Superior Performance (30%)
Overall excellent performer and easy to work with—
smart, dedicated, ambitious, and cooperative, but may not
yet be ready to promote because there’s still a lot to learn
in the current role.
May not have been exposed to exceptional circumstances
or opportunities that would warrant a higher designation.
However, definitely an exceptional contributor who
exceeds people’s expectations in many ways and is a longterm “keeper”— just needs more time in current role to
grow and develop and gain additional exposure.
11
Rater Consistency Tool
(cont.)
 (3a) Consistently performs well
 (3b) Meets expectations overall
and is reliable, courteous, and
but may be challenged in
dedicated. Always tries hard and
particular performance areas.
looks for ways of acquiring new
May perform well because of
skills but doesn’t necessarily
tenure in role and familiarity with
perform with distinction. Works
workload but does not appear
to live rather than lives to work.
ambitious about learning new
May not stand out as a rarity
things or expanding beyond his
among peers but consistently
comfort zone. Conduct may at
contributes to dept’s efforts and is
times be problematic / challenge
a valuable member of team.
of working well on a team.
12
Rater Consistency Tool
(cont.)
2 - Partially Successful Performance (10%)
Fails to meet minimum performance or conduct expectations
in specific areas of responsibility. Is not able to demonstrate
consistent improvement. May have received significant
corrective action during review period. Lacks requisite
technical skills or knowledge relating to particular aspects of
role. May perform well but conduct is so problematic that the
entire year’s performance review score may be invalidated.
“PIP” required.
A partial merit increase or bonus may be awarded.
13
Rater Consistency Tool
(cont.)
1 - Unsuccessful Performance (< 5%)
Fails to meet minimum performance or conduct
expectations for the role in general. The individual’s
position is in immediate jeopardy of being lost. The
performance review may be accompanied by corrective
action documentation stating that failure to demonstrate
immediate and sustained improvement will result in
dismissal.
No merit increase or bonus should be awarded.
14
C. Calibration Sessions
Call Center Rep Name Proposed Overall Review Score
1.Smith
4—Superior performance
2. Jones
3—Fully successful performance
3. Kennedy
3—Fully successful performance
4. Taylor
3—Fully successful performance
5. Gutierrez
3—Fully successful performance
6. Napolitano
2—Partially successful performance
15
Reinventing the Appraisal
Template’s Form and Content
 Traditional performance descriptor:
“Produces high-quality work on a timely basis. Meets
deadlines and maintains accurate records.”
 Enhanced performance descriptor:
 “Sustains peak performance. Exhibits in-depth product
knowledge and serves as a subject matter expert for others.”
16
Communication
(Traditional)
Communicates clearly and effectively at all
levels. Produces easily understandable
reports and presentations. Effectively deals
with others, both internally and externally.
Respects confidentiality. Provides timely
feedback and follow-up and manages
others’ expectations appropriately.
17
Communication
(Enhanced)
Cultivates a culture of openness in information sharing. Regularly
solicits constructive feedback, builds consensus, and asks well-thoughtout and well-prepared questions. Encourages open communication,
cooperation, and the sharing of knowledge. Remains open-minded and
willing to entertain others’ ideas. Builds trust through regular, open,
and honest communication. Demonstrates candor and level-headedness
in all business dealings. Listens actively and always responds in a
respectful tone. Engages appropriately when in disagreement and
pushes back respectfully and in a spirit of good-faith cooperation.
Speaks persuasively and convincingly but is not afraid to say, “I don’t
know” and then research an answer. Manages others’ expectations
appropriately, and proactively communicates any potential problems or
roadblocks. Effectively feeds information upward and rarely leaves
others flying blind or unaware of important updates.
18
Customer Satisfaction
(Traditional)
Provides prompt, courteous, and professional
customer communication. Provides timely and wellinformed advice to customers. Demonstrates sufficient
knowledge of company products and cross-selling
skills to ensure a high level of customer satisfaction.
Prioritizes workload based on customers’ needs.
Regularly adheres to scripts and selling tips. Skillfully
overcomes customer objections. Consistently gains
necessary authorizations and approvals for one-off
exceptions to policy.
19
Customer Satisfaction
(Enhanced)
Demonstrates total commitment to outstanding customer service.
Provides knock-your-socks-off service that consistently exceeds client
expectations. Consistently exhibits creativity and flexibility in resolving
customer issues. Remains customer-oriented, flexible, and responsive to
last-minute changes in plans. Regularly puts the human relationship above
the transaction. Looks always to surprise customers with unanticipated
benefits, including lower costs and shortened delivery timeframes.
Effectively exceeds customer expectations by providing timely feedback
and follow-up in an empathetic and caring way. Tactfully informs
customers when their requests cannot be met and escalates matters for
further review and approval as appropriate. Takes pride in building
relationships with even the most challenging clients. Enjoys identifying
“out-of-the-box” solutions for clients with special needs. Develops a loyal
customer base as evidenced by a high rate of repeat business.
20
Leadership (Traditional)
 Leads effectively by providing appropriate
feedback and direction to staff. Delegates and
assigns work in a manner consistent with
departmental workflow and company policy.
 Listens openly and encourages feedback, while
creating and maintaining an inclusive work
environment.
Leadership (Enhanced)
 Structures projects and assignments with clear goals and
measurable outcomes so that team members can
creatively individualize solutions. Empowers team
members to embrace change opportunities. Inspires team
members to take ownership of their own performance
improvement and career development.
 Constructively addresses minor impediments before the
become major obstacles. Manages with a conscience and
places integrity, ethics, and trust above all else.
Template Foundation
 Performance review templates should be dynamic, not
static!
 If you’re not upgrading your template every few years,
you’re missing the point of the exercise.
 A typical organizational lifecycle includes the major stages
of Startup, Growth, Maturity, and Decline. Your appraisal
template should match your company’s current phase and
then change over time to reflect your new expectations.
23
Model Template 1: Startup
1. Creativity and Innovation
2. Strategic and Critical Thinking Skills
3. Culture and Values
4. Quality
5. Productivity and Volume
6. Problem-Solving Skills & Results Orientation
7. Job Knowledge
8. Teamwork
24
Model Template 2: Growth
1. Customer Centricity
2. Professional and Technical Knowledge
3. Leadership and Communication
4. Adaptability and Flexibility
5. Efficiency and Effectiveness
6. Creativity/Innovation
7. Quality and Reliability
8. Professionalism and Teamwork
25
Model Template 3: Mature
1. Communication and Leadership
2. Policy Compliance
3. Process Improvement
4. Problem Solving/Innovation
5. Safety
6. Teamwork
7. Professional Development
8. Corporate Image
26
Key Human Capital
Metrics
 Performance appraisal trends over time
 Succession planning exercises, bench strength,
and pipeline development
 Voluntary vs. involuntary turnover, especially for
high-performing talent (i.e., 4s and 5s)
 ROI calculations that tie human capital
performance to financial metrics
27
Human Capital Metrics
(cont.)
Premise
Performance reviews aren’t just built around
individual workers—they’re even more critical
at the enterprise level where that human capital
muscle needs to be measured and managed.
28
Dashboard Development
Year 1 (most recent)
Defining Challenges:
 Integration of XYZ Company—
systems, policies, and culture
 Challenge of union organizing efforts
in New York, Ohio, and Hawaii
29
29
Dashboard Development
(cont.)
Year 2 (two years ago)
Defining Challenges:
 Pending merger with and acquisition of XYZ
Company after receiving FCC approval
 Expansion into new green field operation in
Canada—our first venture outside the U.S.
 Outsourcing of back office operations to BPO
(business process outsourcing) partner
31
31
Dashboard Development
(cont.)
Year 3 (three years ago)
Defining Challenges:
 Consideration (pre-deal) and due diligence stage of
potential XYZ Merger
 Budget cuts and layoff of 2 percent of workforce in
light of economic downturn
 Revamp of executive compensation/total deferred
comp in light of cash flow challenges and tax changes
33
33
Most Recent Performance Scores
2009 Call Center Performance Scores
2009 West Region Performance Scores – Grand
Total TOTAL Employees reviewed = 7,786
TOTAL Employees reviewed = 1,993
(94), 1%
(400), 5%
(339), 4%
(60), 3%
(462), 6%
(123), 6%
(215), 11%
Does Not Meet Expectations
Does Not Meet Expectations
(185), 9%
Partially Meets Expectations
Partially Meets Expectations
Successfully Meets
Successfully Meets
(2844), 37%
(3647), 47%
Exceeds Expectations
Exceeds Expectations
(525), 26%
(885), 45%
Exceptional
Exceptional
Too New To Rate
Too New To Rate
2009 Biz Ops Performance Scores
2009 Tech Ops Performance Scores
(117), 4%
(19), 1%
(68), 3%
(116), 4%
(152),
6%
(1125), 42%
(1183), 44%
(64), 2%
TOTAL Employees reviewed = 2,663
(15), 1%
(161), 5%
TOTAL Employees reviewed = 3,130
Does Not Meet Expectations
Does Not Meet Expectations
Partially Meets Expectations
Partially Meets Expectations
Successfully Meets
Successfully Meets
(1136), 36%
Exceeds Expectations
Exceeds Expectations
(1637), 52%
Exceptional
Exceptional
Too New To Rate
35
Too New To Rate
35
Q2 2009 to Q2 2010 COMBINED CALL CENTERS CORRECTIVE ACTIONS
CALL CENTER Q2 to Q2 CORRECTIVE ACTION TOTAL = 3171
Corrective Actions - last 12 months = 2512
275
10%
9.3%
250
8.7%
225
7.4%
200
7.1%
7.6%
7.3%
8%
6.3%
7%
6.8%
6.1%
6.2%
175
6.5%
6.1%
5.3%
COUNT
9%
6%
4.8%
150
4.4%
5%
125
4%
220
100
179
165
75
153
142
150
134
129
117
2%
102
50
25
136
133
120
118
3%
156
86
76
63
18
28
51
5316
1
1
5
1
71
58
16
1
18
2
1
7
0
13
25
53
0
24
9
8
1
27 6
1
0
33 6
16
41
3
30
68
59
15
4
2
1%
0
0%
0
April 2009 May 2009 June 2009 July 2009
August
2009
September October November December
2009
2009
2009
2009
OVERALL Q2 to Q2% - Percentage of Infractions:
Attendance Infraction = 67.9% (2154)
Performance Infraction = 24.9% (788)
Policy Violation = 6.7% (211)
Attendance_Infraction
Performance_Infraction
36
January
2010
February
2010
March
2010
April 2010 May 2010 June 2010
TOTAL 2010 West Region Headcount ALL Call Centers Combined
(Excluding Hawaii, San Diego, Desert Cities) = 1770
Percentage of Population (last 12 months) = 141.9%
Policy_Violation
Other
Q2 to Q2 %
36
Q2 2009 to Q2 2010 Call Center COMBINED TERMS
CALL CENTER Q2 2009 to Q2 2010 COMBINED TERMS TOTAL = 296
Corrective Actions, Last 12 Months = 249
30
14%
12%
25
11.5%
11.5%
10%
COUNT
20
7.4%
8%
6.8%
15
6.1%
7.4%
5.4%
5.4%
6.1%
6.4%
6.4%
6.1%
6%
5.7%
24
22
4.7%
10
4%
17
15
14
12
3.0%
5
9
4
9
8
0
3
6
5
3
220
1
0
2
12
11
0
1
3
1
4
220
5
3
5
3
0
6
6
1
0
2
0
2
3
1
7
555
3
77
6
2%
8
4
1
0
2
5
0
0%
0
April 2009 May 2009 June 2009 July 2009
August
2009
September
2009
October
2009
November December
2009
2009
January
2010
February March 2010 April 2010 May 2010 June 2010
2010
TOTAL CC HEADCOUNT = 1770 % of each infraction against total
population):
Percentage of involuntary turnover (last 12 months) = 14.1%
Attendance Infraction = (131) 7.4%
Performance Infraction = (41) 2.3%
Policy Violation = (68) 3.8%
OVERALL Q2 to Q2% (Termination Activities)
Attendance Infraction = 52.4% (155)
Performance Infraction = 17.9% (53)
Policy Violation = 26.7% (79)
37
Attendance_Infraction
Performance_Infraction
Policy_Violation
Other
Q2 to Q2 %
37
Q2 2010 Terminations - ALL Categories (L.A. Area Only)
140
120
73.2%
100
115
Count
80
60
80.0%
26.8%
40
20
57.4%
48
20.0%
0.0%
12
42
0
0.0%
27
0
0
Biz Ops
Voluntary = 48 (18.2%)
Involuntary = 12 (4.5%)
Biz Ops total population
06.30.10 = 2109 (33%)
42.6%
Biz Ops % of 60 Terms:
Voluntary = 48 (80%)
Involuntary = 12 (20%)
Severance = 0 (0%)
Total quarterly turnover - Biz Ops = 22.7% (60)
Call Center
Call Center % of 154
Voluntary = 115 (43.6%)
Terms:
Involuntary = 42 (15.9%) Voluntary = 115 (73.2%)
Call Center total
Involuntary = 42 (26.8%)
population 06.30.10 =
Severance = 0 (0%)
1770 (27.7%)
Total quarterly turnover - Call Center = 59.5% (157)
0.0%
20
0
Tech Ops
Tech Ops % of 47 Terms:
Voluntary = 27 (10.2%) Voluntary = 27 (57.4%)
Involuntary = 20 (7.6%) Involuntary = 20 (42.6%)
Tech Ops total
Severance = 0 (0%)
population 06.30.10 =
2516 (39.3%)
Total quarterly turnover - Biz Ops = 17.8% (47)
Total combined Q2 2010 terminations = 264
Annualized TOTALS (and % against overall):
Q2 annualized turnover (1056) = 16.5% (out of a population of 6395)
Annualized Voluntary TO = 760 (72%)
Annualized Involuntary TO = 296 (28%)
Annualized Severance = 0 (0%)
38
Voluntary
Involuntary
Severence
38
LA Specific - Years of Service
90
83
80
70
Count
60
50
43
40
29
30
25
21
20
10
3
0
Biz Ops
Call Center
Tech Ops
18
16
6
4
1 - 2 years
3
43
4
3 - 5 years
21
83
16
11
8
6 - 8 years
6
25
8
8
9 - 11 years
11
29
8
14
12
11
6
12 - 14 years
11
18
6
4
7
3
5
15 - 17 years 18 - up years
4
12
7
5
3
14
39
39
Colorado Springs Call Center - Off Boarding Supervisor Rating (Sometimes/Never)
**In order of the most negatives to the least amount of negatives
August 2, 2007 to January 14, 2010
18
16
4
Off-Boarding Supervisor Ratings
14
COUNT
12
10
8
2
 [Insert Jabba the Hud data here]
5
3
1
2
1
2
6
3
1
2
3
5
4
4
4
7
4
2
5
6
0
Explained work responsibilities clearly
Adequate feedback on my performance
Proper training or coaching to do job
Readily Recognized Good Performance
Encouraged Staff to Contribute to the Dept
Resolved Problems and Complaints
Communicated Well with Employees
Demonstrated Fair Treatment
40
Developed Cooperation
TOTAL EE's SURVEYED
40
June 2010
1
Retirement
2
1
Unreasonable Job Performance
Expectations (e.g., scorecard)
41
July 2010
2
Overall Work Environment /
Corporate Culture
2
Nature of Job Responsibilities
2
Excessive Workload
2
3
Unsustainable Commute
3
No Answer
3
Other
4
Higher Pay
5
Resignation in lieu of Termination
2
Return to School
4
Relocation out of State / out of Area
6
Opportunity for Advancement
4
Family Reasons
COUNT
Primary Reason for Leaving June/July 2010
12
11
10
8
6
5
4
3
2
1
0
Performance Appraisal
Wisdom
 “Performance review,” in its highest form, is an
enterprise-wide assessment of the entire
organization’s human capital muscle, the asset
that drives all operations.
 Yet many senior executives view performance
appraisals as one-off assessments of individual
employees’ performance, missing awareness of the
critical link between individual contribution and
enterprise results.
42
Wisdom (cont.)
 Senior leaders should look to the annual
performance review “culmination” as a living,
breathing snapshot of their organization’s human
capital performance at a particular point in time.
 A performance review can be used as a human
capital balance sheet. At this point in time, and in
light of the challenges our organization is facing,
what percentage of our employees are meeting,
exceeding, or falling below expectations?
Wisdom (cont.)
 Performance review metrics are a measure of the
company’s assessment of its workforce muscle or
“human capital asset”.
 A strong performance management system will
not only reflect your organization’s past
performance—it will drive future change within
your company by setting your strategic direction.
 Your template holds the key to articulating and
driving your organizational goals and values!
44
Wisdom (cont.)
 Companies will best be served by a
living, breathing, changing human
capital performance management and
measurement system—not a static form
or immutable program that denies the
realities of change over time.
45
Wisdom (cont.)
 You’re the architect and designer for your
company’s performance measurement system.
 You create the descriptors that will drive
heightened performance.
 Ratcheting up expectations isn’t just a quantitative
exercise: It’s also spelled out qualitatively in the
language you use to define what’s acceptable vs.
what what’s exceptional.
46
Wisdom (cont.)
 Performance management, it turns out—
far from being a burden and onus on
managers and staffers alike—may just be
one of the “low-hanging fruits” that
could catapult your career as an effective
leader and marshal of human resources in
their truest sense.
47
Q&A
Presenter: Paul Falcone
(310) 691-3838
Paul@PaulFalconeHR.com
www.PaulFalconeHR.com
Coupon Code: PIHRA_WH
www.amacombooks.org/go/PerformanceAppraisal