F ACILITATOR GUIDE Performance Management Managing Others Through Positive Leadership SUSTAINABLE MANAGEMENT DEVELOPMENT PROGRAM PERFORMANCE MANAGEMENT Performance Management CONTENTS F AC I L I T AT O R G U I D E Performance Management Sustainable Management Development Program ................................................................... ii Acknowledgements .................................................................................................................. ii Course Overview About this Facilitator Guide ......................................................................................................iii Learning Objectives..................................................................................................................iii Materials and Equipment .........................................................................................................iii Workshop Schedule ................................................................................................................ iv Class Preparation Checklist .................................................................................................... iv Classroom Setup ..................................................................................................................... iv Resources Internet Sites ........................................................................................................................... iv Textbooks ................................................................................................................................. v Instruction Notes Icon Glossary .......................................................................................................................... vi Performance Management Course Introduction .................................................................................................................. 1 Appendices The Business Case for Employee Recognition ...................................................................... 43 Praise Your Way to Success: 6 Steps to Effective Employee Recognition .......................... 46 Why Your Employees Are Losing Motivation ......................................................................... 47 CONTENTS | i PERFORMANCE MANAGEMENT Performance Management SUSTAINABLE MANAGEMENT DEVELOPMENT PROGRAM SMDP works with ministries of health, educational institutions, nongovernmental organizations, and other partners to strengthen leadership and management skills and systems to improve public health in low resource countries. Program Strategy SMDP strengthens leadership and management skills and systems through— Integration with country public health priorities. Strategic partnerships. Technical assistance and training. Policy and systems development. Advocacy and education. Evaluation. For more information, visit www.cdc.gov/smdp. ACKNOWLEDGEMENTS Performance Management was developed by SMDP as a tool for public health managers. This course is intended to introduce important principles that managers and employees can use to set performance expectations and effectively communicate in the workplace. SUSTAINABLE MANAGEMENT DEVELOPMENT PROGRAM | ii PERFORMANCE MANAGEMENT Course Overview ABOUT THIS FACILITATOR GUIDE This guide is designed to provide you the materials and direction to successfully deliver the Performance Management course in a classroom environment. It assumes the instructor has functional proficiency in the subject matter. Use the Resources section of this guide for further research into the topic. This guide includes notes about what to say and do during the class, as well as materials to help you prepare and conclude the course. Please read the description of the target audience carefully, as well as the learning objectives. By correctly positioning the course you can set reasonable expectations for the participants. LEARNING OBJECTIVES When participants complete this course they will be able to: Develop a positive work environment that encourages high performance. Align and motivate work teams to a common purpose. Adapt management style based on individual needs. Set and communicate clear expectations and objectives. Provide effective and timely feedback to both reinforce and improve performance. Address behavioral and performance problems with employees in a constructive way. Conduct a performance appraisal. MATERIALS AND EQUIPMENT MATERIALS For the Instructor: This Facilitator Guide. 1 flip chart & stand. Icebreaker materials. Sticky notes or Masking Tape. For the Participant: Participant Workbooks. Pens and paper. Job Aid Cards. EQUIPMENT For the Instructor: LCD projector. Computer with MS PowerPoint®. For the Participant: None needed. RESOURCES | iii PERFORMANCE MANAGEMENT WORKSHOP SCHEDULE TIMES DAY 1 Morning Afternoon Course Introduction. Setting and Communicating Objectives. Setting and Communicating Objectives (continued). Giving Performance Feedback. Providing Reinforcement. CLASS PREPARATION CHECKLIST TASK Obtain & test LCD projector & personal computer. Obtain flip charts & markers: 1 for every 4-5 participants. Copy participant materials for each participant: Participant Workbook. Handouts. Workshop evaluation form. Obtain & test PowerPoint file. CLASSROOM SETUP Arrange tables to encourage participant interaction. Place flip chart and easel in front of the room. Resources INTERNET SITES Business Balls (free learning and development resource). www.businessballs.com Harvard Business Publishing (fee for some articles). www.hbsp.harvard.edu Management Help (free management resource online library). www.trainingregistry.com Management Resources (free resources to improve management skills). www.management-resources.org Mind Tools (free resources for learning career-building skills). www.mindtools.com RESOURCES | iv PERFORMANCE MANAGEMENT TEXTBOOKS Bridging Differences: Effective Intergroup Communication. William B. Gudykunst. 1998. Sage. Bringing out the Best in People. Aubrey Daniels. McGraw-Hill. 1999. Coaching for Performance. John Whitmore. Nicholas Brealey. 2002. Crucial Conversations. Kerry Patterson et al. McGraw-Hill. 2002. The Emotionally Intelligent Manager. David Caruso & Peter Salovey. Jossey-Bass. 2004. First Break All the Rules. Marcus Buckingham & Curt Coffman. Simon & Schuster. 1999. Good to Great. Jim Collins. Harper Business. 2001. Management of Organizational Behavior. Paul H. Hersey. Prentice Hall. 2007. Motivating Employees. Anne Bruce & James Pepitone. McGraw-Hill. 1999. The New Global Leaders. Richard Branson, et al. Jossey-Bass. 1999. Now, Discover your Strengths. Marcus Buckingham & Donald Clifton. Free Press. 2001. On Becoming a Leader. Warren Bennis. Perseus Publishing. Revised edition. 2003. 1001 Ways to Reward Employees. Bob Nelson. Workman Publishing Company. 1994. Performance Management: Finding the Missing Pieces. Gary Cokins. Wiley. 2004. Recognizing and Rewarding Employees. R. Brayton Bowen. McGraw-Hill. 2000. The Situational Leader. Paul H. Hersey. Center for Leadership Studies, 16th edition. 1984. RESOURCES | v PERFORMANCE MANAGEMENT Instruction Notes The following notes refer to slides in the PowerPoint presentation “Performance Management.ppt.”. Suggested actions and script for the instructor are located in the Script/Key Points section of each page. Also included are references to the slide number and page number in the participant workbook, as well as instructions on when and how to use the exercises. Use these materials as you prepare for your session and to guide you during the workshop. Be sure to refer participants to the appropriate page number in their workbook throughout the session. The Appendix contains supplemental materials that may be useful to review before facilitating this course. It is recommended that you become familiar with the material so you can appropriately address questions from the audience. Script for the facilitator to SAY is written like this. Instructions for the facilitator to DO are written like this. Possible answers are written like this. SUSTAINABLE MANAGEMENT DEVELOPMENT PROGRAM ICON GLOSSARY Performance Management Managing Others Through Positive Leadership SPECIFIC SLIDE FOR USE DURING THE EXPLANATION MANAGEMENT FOR INTERNATIONAL PUBLIC HEALTH COURSE FLIP CHART USE SUPPLEMENTAL INFORMATION TO HELP PERFORM A TASK MORE EASILY SMALL GROUP EXERCISE QUESTION FOR FACILITATOR TO ASK PARTICIPANTS VIDEO PRESENTATION INSTRUCTION NOTES | vi PERFORMANCE MANAGEMENT Performance Management SUSTAINABLE MANAGEMENT DEVELOPMENT PROGRAM Course Introduction Expected Time: 60 minutes Performance Management PERFORMANCE MANAGEMENT Managing Others Through Positive Leadership MANAGEMENT FOR INTERNATIONAL PUBLIC HEALTH COURSE SCRIPT/KEY POINTS Welcome class & introduce yourself. Introduce any dignitaries. Allow dignitaries to present. Explain any housekeeping, such as break times, fire drill, restroom locations, and cell-phone use. Distribute participant workbooks and explain how they will be used. They will use it to complete exercises and take notes. Conduct icebreaker if needed. WHY AM I HERE? Why am I here? To learn how to be great boss (manager) through a performance management approach that: Gets Results and Earns Respect! SCRIPT/KEY POINTS Even bad managers can get COMPLIANCE from their staff. The challenge is getting your employee’s COMMITMENT to willingly do COURSE INSTRUCTION | 1 PERFORMANCE MANAGEMENT what’s asked of them. How do you balance “compliance” and “commitment?” How do you get people to do what is asked of them? WHAT WILL WE LEARN? What will we learn? You will learn to: Develop a positive work environment that encourages high performance. Align and motivate work teams to a common purpose. Adapt management style based on individual needs. Set and communicate clear expectations & objectives. WORKBOOK PAGE: IV SCRIPT/KEY POINTS Read objectives from the slide. WHAT WILL WE LEARN? (continued) What will we learn? You will learn to: Develop a positive work environment that encourages high performance. Align and motivate work teams to a common purpose. Adapt management style based on individual needs. Set and communicate clear expectations & objectives. WORKBOOK PAGE: IV SCRIPT/KEY POINTS Read objectives from the slide. Does anyone have any questions about the learning objectives? WHAT’S IN IT FOR ME/US? What’s in it for me? Greater employee productivity and accountability More committed and motivated employees Better working relationships Less time managing! WORKBOOK PAGE: 1 COURSE INSTRUCTION | 2 PERFORMANCE MANAGEMENT SCRIPT/KEY POINTS Studies have shown that effective managers actually spend LESS time interacting with their employees than ineffective managers. Ineffective managers are always playing “catch up.” Ineffective managers “catch up” by not communicating upfront; including what objectives are to be completed, what plans they want implemented or what corrective actions they want taken. Really effective managers master goal setting, planning and providing effective feedback. Managers who have to interact more frequently are often interrupting their employees. This course will provide you with the skills so you can save time and gain greater productivity from your employees while improving your working relationships. This will save you and your organization valuable resources, and will teach you to be a more effective manager. COURSE INSTRUCTION | 3 PERFORMANCE MANAGEMENT EXERCISE 1: FEEDFORWARD ACTIVITY Feedforward Activity 1. 2. 3. 4. 5. 6. 7. Pick ONE behavior you would like to change. Describe this behavior in one sentence to a partner. Ask for feedforward – 2 suggestions that could help you achieve positive change in the future. Listen and take notes. Do NOT comment. Thank the other person for his/her suggestions. Then, reverse roles with your partner. (Steps 15) Find another person. Repeat the process for 8 minutes WORKBOOK PAGE: 2 SCRIPT/KEY POINTS Let’s get into the mindset of managing behaviors by taking part in an activity. Read instructions on slide. Identify a behavior that could make a significant, positive difference in your work or personal life. Describe this behavior to your partner in one sentence (i.e., “I want to be a better listener” or “I want to get my office organized”). Listen/take notes—You CANNOT comment on the suggestions your partner gives you in anyway (i.e., “I tried that”, “The problem with that is…,” or even make a positive comment such as, “That’s a good idea”). Even if you have worked with your partner in the past, you can not give ANY feedback about the past…only what should be done in the future. You should spend no more than 2-4 minutes total taking turns as partners. Everyone gives 2 suggestions. Does anyone have any questions about this activity? Walk around the room observing participants. Guide participants if necessary. COURSE INSTRUCTION | 4 PERFORMANCE MANAGEMENT GIVING AND RECEIVING FEEDBACK Giving and Receiving Feedback Letting go of the past Listening to solutions without judging Learning as much as you can Helping as much as you can WORKBOOK PAGE: 2 SCRIPT/KEY POINTS Prepare flip chart entitled, “Feedforward” How did you feel about this activity? Write down responses on flip chart. Did we discuss the “past” in this exercise? Why not? Feedback is really about the future. We can’t change the past. We CAN, however, change the future. Feedback helps people focus on a positive future, not a failed past. Did anyone receive feedback that was negative? Possible answers: No. Most of us hate to give and receive negative feedback. Why? Possible answers: Often gets personal, etc. Feedback is not judgmental, nor is it supposed to imply superiority. When your partner offered feedback to you, how did it feel to be quiet and just listen? Possible answers: Difficult, unusual. Did it make you listen more attentively? Since we only discussed the future, we didn’t have to think about a clever reply or rebuttal. We focus all of our energy in the present and concentrate about future possibilities. Many of us become defensive when feedback becomes personal. Reveal Slide. Read and summarize contents. COURSE INSTRUCTION | 5 PERFORMANCE MANAGEMENT WHAT IS PERFORMANCE MANAGEMENT? What is Performance Management? The process of creating a productive and rewarding work environment in which employees are guided and monitored to perform to the best of their abilities in order to meet and exceed specific targets and standards. WORKBOOK PAGE: 1 SCRIPT/KEY POINTS While there are many definitions of performance management, here is one that captures the essence of what we are setting out to learn today. Read slide. FIVE STEP PERFORMANCE MANAGEMENT CYCLE Five Step Performance Management Cycle Setting Setting Objectives Objectives Aligning Aligning Objectives Objectives What do you want me to do? Why is it important? Model Model&& Mentor Mentor How do I do it? Giving Giving Feedback Feedback WORKBOOK PAGE: 4 How am I doing? Positive Positive Reinforcement Reinforcement What’s in it for me? SCRIPT/KEY POINTS If you want to get the best job performance from your employees, you have to answer five critical questions which are consciously or unconsciously on the minds of every employee when it comes to doing work. This tool will help you get the best from your co-workers and foster a positive productive work environment. Setting appropriate objectives answers, “What do you want me to do?” by communicating effectively. Aligning objectives answers, “Why is this important?” because it links the employee’s goals to organizational goals. This allows the employee to understand the “bigger picture.” COURSE INSTRUCTION | 6 PERFORMANCE MANAGEMENT Modeling and Mentoring answers, “How do I do it?” Your employees learn the organizational culture and what is expected of them partly by how you work and treat others. You will receive training on this topic in other MIPH courses. Giving feedback answers, “How am I doing?” Employees need to know how they are doing to either keep doing great work, or to improve their performance. Positive reinforcement answers, “What’s in it for me or for us?” Why are these questions important? Does the employee need to see the “bigger picture”? Why? Possible answers: Important to see how they fit in and how they make a difference. This cycle is the key to focusing, motivating, and retaining talented people. You must answer all five questions in order to build or sustain good performance—not just 1 or 2. FIVE STEP PERFORMANCE MANAGEMENT CYCLE (continued) Five Step Performance Management Cycle Setting Setting Objectives Objectives Aligning Aligning Objectives Objectives What do you want me to do? Why is it important? Model Model&& Mentor Mentor How do I do it? Giving Giving Feedback Feedback WORKBOOK PAGE: 4 How am I doing? Positive Positive Reinforcement Reinforcement What’s in it for me? SCRIPT/KEY POINTS Click to initiate animation. Because of our limited time today, we are going to focus on 4 of the 5 steps in the performance management process. How does “positive reinforcement” lead back into “setting objectives?” How does positive reinforcement motivate employees? Possible answers: Increases the probability that positive or productive behavior will be repeated. COURSE INSTRUCTION | 7 PERFORMANCE MANAGEMENT DIFFERENT LEVELS OF READINESS Different Levels of Readiness Able, Willing & Confident S D Able BUT Unwilling/Insecure S Unable BUT Willing/Confident S D Unable AND Unwilling/Insecure S WORKBOOK PAGE: 7 D D SCRIPT/KEY POINTS Should we manage all people the same way? Why not? Possible answers: Different personality styles, strengths, weaknesses, needs. According to “The Situational Leader” by Dr. Paul Hersey, each employee should be managed based on his/her degree of ABILITY & WILLINGNESS which determines how much DIRECTION and SUPPORT managers must provide. DIRECTION relates to the employee’s task: how much you tell them what to do, how to do it, when to do it, etc. SUPPORT is when you communicate with them, actively listen to their concerns, provide encouragement and recognize their successes. If an employee is not able to do a task and is either unwilling or insecure about performing it, what is more important: DIRECTION or SUPPORT? Possible answers: Direction. Click. If an employee is not able to do a task, and is willing to take it as a responsibility, the employee will probably need high levels of SUPPORT and DIRECTION. Click. If an employee is able to take on a task, but doesn’t want to or feels that they aren’t prepared, they will require more SUPPORT. Click. If an employee is able to take on a task, and has the confidence to do it correctly, you may only need to provide limited support and limited direction. Click. Which of these employees will require more of your time and resources? Possible answers: Unable/Willing and Confident. How would you provide higher levels of support and direction in this case? Click. COURSE INSTRUCTION | 8 PERFORMANCE MANAGEMENT Vary your Style based on readiness Able, Willing & Confident SD Follow through Document performance Observe, monitor & track Able BUT Unwilling/Insecure SD Reinforce self esteem Assess understanding & commitment Encourage, support & motivate Unable BUT Willing/Confident SD Agree on goals Discuss activities to improve Guide, persuade & explain Unable AND Unwilling/Insecure S D EXERCISE 2: VARY YOUR STYLE BASED ON READINESS WORKBOOK PAGE: 7 Clearly communicate expectations Define role Inform, describe & direct SCRIPT/KEY POINTS Ask participants to fill in the missing boxes on the worksheet on page 7 in their participant manual. Being a good manager often requires you to adapt the appropriate style of management to the right employee. How do you approach an employee who is unable and unwilling/ insecure in their work? Possible answers: Clearly communicate what your expectations are, define your role as a manager and the employee’s role, maintain constant communication with the employee. How do you approach an employee who is unable to do a task, but is very enthusiastic and is willing to tackle the job? Possible answers: First, you must agree on what needs to be done, but discuss ways that they can improve their performance [either with additional training, or learning from their own mistakes.] Your role is also one of being a guide to the employee. Persuade them to understand your point of view and explain new and improved ways of accomplishing the task. How do you provide high support to an employee who is able to take on a task but doesn’t want to or is insecure about his or her abilities? Possible answers: First, you must reinforce their self-esteem, build up their confidence. Understand why they are reluctant to do the activity, then encourage and support them by motivating them. How do you manage the employee who has the right attitude and is confident in their abilities? Possible answers: Simply follow-through on what you promise, document their performance and monitor their work. TEN MINUTE BREAK COURSE INSTRUCTION | 9 PERFORMANCE MANAGEMENT Setting and Communicating Objectives Expected Time: 1 hour 20 minutes SETTING AND COMMUNICATING OBJECTIVES Setting and Communicating Objectives SCRIPT/KEY POINTS Before the break, we talked about the performance management cycle and the importance of feedback that is proactive and centered on the future. Now we are going to talk about the process of setting and communicating future-oriented objectives. This is the foundation of good management. By setting appropriate objectives, you can eliminate the possibility of many problems happening in the future. COURSE INSTRUCTION | 10 PERFORMANCE MANAGEMENT FIVE STEP PERFORMANCE MANAGEMENT PROCESS Five Step Performance Management Process Setting Setting Objectives Objectives Aligning Aligning Objectives Objectives What do you want me to do? Why is it important? Model Model&& Mentor Mentor How do I do it? Giving Giving Feedback Feedback WORKBOOK PAGE: 8 How am I doing? Positive Positive Reinforcement Reinforcement What’s in it for me? SCRIPT/KEY POINTS Looking at the performance management cycle, setting objectives and aligning them to organizational goals answers two of the five questions that drive performance: “What do you want me to do?” and “Why is it important?” Establishing and effectively communicating objectives is the foundation of performance. It’s about getting employees to do “what we want” and get it done on time. No matter how motivated employees are to do a good job, they will not accomplish important organizational goals unless they clearly understand what is expected of them. How much time does your organization spend on rework and correcting mistakes because goals, objectives, and directives were not carried out as originally intended? Possible answers: Lots of time. Why should performance objectives be linked to your organizational goals? How does this “align” performance objectives? Possible answers: Meets organizational goals. If you can establish objectives that are aligned with organizational goals, you’ll save a lot of time managing on the back-end in a reactionary mode…due to miscommunication and misunderstandings. COURSE INSTRUCTION | 11 PERFORMANCE MANAGEMENT OBJECTIVES SHOULD BE “SMART” Objectives should be “SMART” Specific Measurable Achievable Relevant Timeime-based WORKBOOK PAGE: 9 SCRIPT/KEY POINTS Objectives should answer: What, when, and how success is measured. Does anyone know what the expression “SMART” stands for? Specific means “well defined.” The objective should be clear to anyone who has a basic knowledge of the activity or project. Measurable means “How much?” (Quantity.) Or “How well?” (Quality.) Or both. If you cannot measure it, you cannot manage it. Without a measurable standard, you have no way of knowing whether the person succeeded in achieving the objective. Achievable means “attainable.” Like an Olympic coach, you must challenge the person…you should stretch him or her to grow and to perform at a higher level. However, don’t make the objective so unrealistic as to demotivate the individual. Relevance is extremely important. Be sure to have some value or benefit, and that it supports the organization. This ties to “why is it important?” performance driver. Time-based means that the objective is deadline based. Establish a timeline that creates a sense of urgency and establishes a focus on results. The employee must have enough time to focus on results, but not too much time, which will diminish the sense of purpose. This will only demotivate the individual. COURSE INSTRUCTION | 12 PERFORMANCE MANAGEMENT EXERCISE 3: EXAMPLES OF OBJECTIVES Examples of Objectives Activity Lose weight by dieting and exercise Make a presentation to local officials Conduct an outbreak investigation Outcome Lower cholesterol to 199 to WORKBOOK PAGE: 10 reduce risk of heart disease Present a business case to local officials in order to obtain funding for our field study Conduct an outbreak investigation during the next two weeks to determine the cause of the salmonella outbreak. SCRIPT/KEY POINTS In order to write SMART objectives, it is important to identify them. Ask participants to turn to page 10 in the participant manual, and follow along with the fill-in activity. Click to reveal Activity based objectives. Often times, activity objectives don’t answer “Why is it important?” They don’t describe how an individual’s actions matter to the organization, how they benefit someone, or how to know whether they have succeeded or not. Let’s look at the first example: Does it answer “why?” Does it indicate whether or not someone succeeded? Make sure that objectives are aligned to the team and organizational goals of your work group, department or division. Click to reveal Outcome based objectives. Outcome-based objectives assure that you are asking employees to do work that matters and that you clearly understand the impact you’re your actions have on the organization. Define the right outcomes or results and then let each employee find their own route toward those outcomes. As we talked about earlier, employees are motivated by different things, and have very different ways of getting things done. The focus should be toward getting a desired outcome that has value to the organization, unless there is a specific protocol or standards involved. Defining the right outcomes expects a lot of employees, but there’s probably no better way to nurture self-awareness and self-reliance. COURSE INSTRUCTION | 13 PERFORMANCE MANAGEMENT SET STRETCH OBJECTIVES Set Stretch Objectives Self-Fulfilling Prophecy: You get what you expect SCRIPT/KEY POINTS It’s also important to avoid setting objectives that are so easy to achieve that they do not challenge or motivate employees. Setting “stretch” objectives creates a certain tension which employees must feel to achieve. Great managers create an environment where each employee feels the little thrill of pressure to achieve a very definite target. Expect the best of people and they’ll give you their best. Ask 3 volunteers to stand up against a wall and stretch their arm up the wall as far as they can. Mark how far they’ve stretched with a piece of masking tape or with a sticky note. Ask the three volunteers if they can stretch any further. (Chances are all 3 of them will be able to stretch just a little further up the wall.) Mark their new stretch accomplishment on the wall with masking tape or another sticky note. What did you see here? How could I have improved the initial directions to get that “higher” accomplishment from each of the three volunteers? Possible answers: Telling each participant EXACTLY what I expected of them, and WHY they should do it. The capability to stretch is different for each of us. It is based on our natural abilities, our experience, our motivation and our training. COURSE INSTRUCTION | 14 PERFORMANCE MANAGEMENT Sample Performance Objective EXERCISE 4: SAMPLE PERFORMANCE OBJECTIVE WORKBOOK PAGE: 11 “Return telephone calls promptly” Make it SMART! SCRIPT/KEY POINTS Look at this objective, “Return telephone calls promptly.” Is this a SMART objective? Why not? Possible answers: It is not measurable. How can we make this objective SMART? Possible answers: “Return all telephone calls by the end of the day.” Or “Return all telephone calls within 24 hours.” On page 11 of your participant manual, there is an optional exercise entitled, “SMART or Silly” where you are asked to identify if an objective is considered “SMART” or not. 60 MINUTE BREAK COURSE INSTRUCTION | 15 PERFORMANCE MANAGEMENT Write a “Smart” Objective Write ONE SMART objective for yourself or one of your employees (5 minutes) Pair off and take turns reading your SMART objective to your partner Partner: Offer suggestions to make sure the objective is SMART! (8 minutes) Switch! EXERCISE 5: WRITE A SMART OBJECTIVE WORKBOOK PAGE: 12 SCRIPT/KEY POINTS Before we left for our long break, we discussed how to drive performance by answering “What do I need to do?” and “Why is it important?” We did that by identifying and writing SMART objectives. Turn to page 12 in your Participant Manual. Take a couple of minutes to write down one SMART objective for someone who reports to you, or for yourself—something that you or someone else needs to accomplish. Remember to make sure your objective clearly states WHAT needs to be accomplished, how it will be MEASURED, and by WHEN. (5 minutes) Once you are done, share your SMART objective with a partner. Read your partner’s objective carefully and offer some feedback on how to make it “SMART-er.” Then, switch roles. (10 minutes) Remember the feedforward activity from this morning when receiving feedback. Be sure to listen and take your partner’s suggestions into consideration. While participants are working, write three columns on a flip chart. What? ----- How Measured? ----- When? After pairs have provided feedback to each other, ask volunteers to read their individual objective. Complete the flip chart by filling in “what is expected,” “how it will be measured,” and “when it should be completed” for each objective read. Get feedback from entire group if objectives are SMART or not. (10 minutes) COURSE INSTRUCTION | 16 PERFORMANCE MANAGEMENT GROWS Conversation Model Goal—define the expectation. What needs to be done? Why? GROWS CONVERSATION MODEL WORKBOOK PAGE: 13 Reality—explain the gap between the current and desired situation Options and Obstacles—listen to the other person’s perspective? How can the goal be achieved? W ho, What, When—Who will do what and when? Schedule Follow-up—schedule a follow-up date to check progress SCRIPT/KEY POINTS Now that we’ve written SMART objectives that clearly state what needs to be done, by when and how it will be measured, we next need to communicate that objective to the employee in a manner that assures: 1) they clearly understand what needs to be done; and, 2) they “buyinto” the objective and are committed to achieving it. Is it acceptable to just “email” written objectives to the employee? Possible answers: Generally not. You should have a face to face conversation if possible. Why? Understand their concerns, understand what obstacles may get in the way, discover what resources they will need, and mutually agree on the objective. The framework for communicating the objective follows a conversation model called “GROWS.” Click to reveal what each letter stands for. Here is how the GROWS conversation might take place. Read the conversation model from the slide. Did the manager do all of the talking in this model? No. Why not? Possible answers: The employee answered questions and is involved in the conversation. Why is it important for the employee to be involved? Possible answers: They will be doing the work. It opens dialogue between manager and employee—open communication is key to performance management. 15 MINUTE BREAK COURSE INSTRUCTION | 17 PERFORMANCE MANAGEMENT Giving Performance Feedback Expected Time: 1 Hour 35 minutes GIVING PERFORMANCE FEEDBACK Giving Performance Feedback WORKBOOK PAGE: 15 SCRIPT/KEY POINTS We’ve discussed how to effectively communicate with the employee what they should do and why it is important. But, how do you guide them in the right direction? Now, we are now going to focus on providing appropriate feedback. COURSE INSTRUCTION | 18 PERFORMANCE MANAGEMENT FIVE STEP PERFORMANCE MANAGEMENT PROCESS Five Step Performance Management Process Setting Setting Objectives Objectives Aligning Aligning Objectives Objectives What do you want me to do? Why is it important? Model Model&& Mentor Mentor How do I do it? Giving Giving Feedbac Feedbac kk WORKBOOK PAGE: 15 How am I doing? Positive Positive Reinforcement Reinforcement What’s in it for me? SCRIPT/KEY POINTS Once we’ve clearly stated what needs to be done, why it needs to be done, and the employee is setting out to accomplish the objective, can we assume the employee will reach the outcome we want, when we want it? Possible answers: No. Why not? Possible answers: Inadequate training, still not clear on instructions, misinterprets what we want, gets distracted by other projects, etc. We all filter information differently and have varying skills and motivations at work; each of us gets work done in very different ways. We also have competing demands for our time. There should be an individual willingness to accomplish a task. All of this increases our chances of getting distracted from what needs to get accomplished at a given time. Effective managers cannot assume employees will do as directed. We must follow up with them and give them feedback along the way. Most employees sincerely want feedback. When we assume things will get done, managers often have to correct employees and be more reactive. Have any of you ever worked for someone who never gave you feedback or told you how you were doing in your job? Select a volunteer. What was that experience like? Possible answers: Demotivated, assumed everything was alright. How did the lack of feedback affect your motivation and morale? Possible answers: Decreased my interest in my job. How many of you in this class feel you get sufficient feedback from your manager on the work you do? How many of you would like to get more feedback? COURSE INSTRUCTION | 19 PERFORMANCE MANAGEMENT FIVE STEP PERFORMANCE MANAGEMENT PROCESS (continued) Five Step Performance Management Process Setting Setting Objectives Objectives Aligning Aligning Objectives Objectives What do you want me to do? Why is it important? Model Model&& Mentor Mentor How do I do it? Giving Giving Feedbac Feedbac kk WORKBOOK PAGE: 15 How am I doing? Positive Positive Reinforcement Reinforcement What’s in it for me? SCRIPT/KEY POINTS Employees in every organization are hungry for answers to “how am I doing?” and more often than not, go hungry. It is essential to keep us focused and motivated. Feedback is our reality check. It’s what keeps us motivated and striving to succeed. Types of Feedback Informal Formal Annual or bi-annual Performance Review Infrequent Pre-planned Overall Performance over time Reviews past performance TYPES OF FEEDBACK On-the-Spot Frequent As Needed Soon after behavior occurs Focuses on a few specific behaviors Given to improve future performance SCRIPT/KEY POINTS There are two types of feedback that managers need to give their team members: FORMAL and INFORMAL Formal feedback is often conducted only once or twice a year. It is used to provide a summary of the past year’s or past mid-year’s overall performance. It answers “What went well?” and “What could be done better in the future?” By contrast, informal feedback is given “on the spot”—in the field, in the office, or wherever the behavior occurs. Informal feedback occurs as frequently as possible—whenever the employee does a good job or needs direction. Unlike formal feedback which reviews overall job performance, informal feedback focuses on one or two specific behaviors. Informal feedback COURSE INSTRUCTION | 20 PERFORMANCE MANAGEMENT is given to influence the employee. Waiting until the formal job appraisal takes place is often too late. If the manager is doing a good job of giving ongoing informal performance feedback to their employees throughout the year, then the annual or semi-annual performance appraisal should never come as a surprise to the employee. If you received feedback only semi-annually, or annually, how would you feel? Possible answers: Demotivated, paranoid, etc. Let’s talk about first giving informal performance feedback. COURSE INSTRUCTION | 21 PERFORMANCE MANAGEMENT Motivate & Develop the Person Giving Feedback Two Purposes: 1. To Reinforce Desired Behaviors 2. To Change Undesirable Behaviors MOTIVATE AND DEVELOP THE PERSON WORKBOOK PAGE: 15 SCRIPT/KEY POINTS There are 2 reasons why we give feedback to employees: – One is to reinforce the desired behaviors by acknowledging their good work and increasing the chance they will repeat that same behavior in the future. – The other is to change or correct an undesirable behavior that is unproductive or inhibiting performance. Remember the reason you are delivering the feedback, which is to reinforce or improve performance for the future, not to prove superiority. Keep feedback realistic and focus on what is actually achievable without demanding the impossible. COURSE INSTRUCTION | 22 PERFORMANCE MANAGEMENT When to give feedback WHEN TO GIVE FEEDBACK WORKBOOK PAGE: 15 Immediately after the activity Debriefing after project completion During the activity – sometimes! SCRIPT/KEY POINTS When exactly should you give feedback? Possible answers: OFTEN and SOON. When is it appropriate to give feedback during an activity? Possible answers: When it is a critical public health situation, i.e., administering a vaccine or collecting a specimen. Why would you WANT to give feedback immediately? COURSE INSTRUCTION | 23 PERFORMANCE MANAGEMENT EFFECTIVE FEEDBACK Effective Feedback Focus on the BEHAVIOR … NOT the PERSON Comment on a specific process: • Persistence • Quality / Accuracy • Working with limited resources Document the feedback session Don’t rely on your memory to recall noteworthy behavior! SCRIPT/KEY POINTS There’s a body of research that proves that people respond differently to feedback. The key to providing effective feedback is to focus on the specific actions we observe, NOT the person or his/her innate abilities and talents. For example, you shouldn’t say, “Wow! You really are intelligent and gifted!” If something happens later where the recipient experiences difficulty solving a particular problem, they may question their “gift.” Intelligence isn’t a behavior. You should say, “I want to compliment you on how hard you’ve worked on the report and how you’ve overcome several obstacles to progress to this point.” It is also important to write down and document the specific behavior you are addressing, and then place it in the employee’s individual personnel file so that you can refer to it later. This documents the issue should you need to address it again or when you need to review it at the semi- or full-year formal appraisal. Do not rely on your memory to recall specific noteworthy behaviors. Writing things down will facilitate the formal appraisal process, because everything will be written down ahead of time. It also gives you evidence should you need to make employment decisions. COURSE INSTRUCTION | 24 PERFORMANCE MANAGEMENT HOW TO GIVE FEEDBACK – FAST! How to give Feedback -- Fast! Future-focused and Frequent WORKBOOK PAGE: 17 Asks for other person’s opinions Specific Timely SCRIPT/KEY POINTS Effective feedback doesn’t have to take a lot of time—in fact it can be done FAST! In the next few minutes, I want to introduce you to 2 feedback conversation tools that can be done in less than 10 minutes. Both of these models follow the FAST approach! First, effective feedback is future-focused and frequent. Digging up past mistakes isn’t effective. You can’t change the past. We can only change today and tomorrow! Remember the future forward activity. Effective feedback asks for the person’s opinions. Asking shows that you value other people’s ideas and contributions. Effective feedback also points out specific behaviors and outcomes. This is more meaningful than a generic, “You are doing a great job!” Vague feedback doesn’t mean much to the employee. The sooner you can provide effective feedback, the better. Most of us have short memories and have difficulty recalling the facts and emotions of what occurred last week or last month. COURSE INSTRUCTION | 25 PERFORMANCE MANAGEMENT FEEDBACK REINFORCEMENT MODEL Feedback Reinforcement Model Identify a behavior to praise. Be specific! Ask how did it go? Ask what went (or is going) well? Ask twice. Ask what can be improved in the future. Summarize and reinforce the behavior. “I noticed that you … Good job!” “I’d like to thank you for…” WORKBOOK PAGE: 18 “ How do you think you did?” “ What went well about what you did?” “Anything else?” “Anything you would do differently next time?” “So, it sounds as if this was an excellent experience for you. Keep up the good work!” SCRIPT/KEY POINTS The first feedback model focuses on providing positive, or reinforcement feedback. Positive feedback, again, reinforces a particular behavior you would like repeated. Read the slide. What do you notice about employee interaction in this model? (The employee is asked questions and is brought into the conversation.) Why should you involve the employee in providing his/her own positive feedback? (He/she is more inclined to remember it and repeat the behavior in the future.) Let me demonstrate an example of how this conversation might play out...Can I get a volunteer to be my employee? Select a volunteer from the group. Demonstrate the reinforcement model and role play with the volunteer. Earlier today you made a great presentation to management. You answered everyone’s questions and received additional funding! How do you think it went? What went well? Anything else? [Allow employee to respond.] Is there anything you would like to do differently next time? [Allow employee to respond.] So what you are saying is (summarize what employee did well). You really seem to enjoy this! Keep up the good work! COURSE INSTRUCTION | 26 PERFORMANCE MANAGEMENT Feedback Reinforcement Model ~ Exercise 6 ~ 1. 2. 3. 4. 5. 6. Pair off. One partner plays the manager while the other person plays the employee. Choose a situation of your own or a Scenario in the participant manual. (Exerice Conduct the Feedback Reinforcement conversation. After the practice, partners discuss how it went and what might be improved going forward. Switch roles and follow the same process, choosing another Scenario EXERCISE 6: FEEDBACK REINFORCEMENT MODEL WORKBOOK PAGE: 19 SCRIPT/KEY POINTS Turn to page 19 (exercise 6) in your workbook, and you will see a list of different scenarios that warrant positive feedback. Find a partner and select one scenario you would like to role play. One person will be the manager, and one will be the employee. You are also encouraged to use a real-life scenario if you have one. Use the reinforcement model to provide effective feedback to your partner. (5 minutes) Walk around and listen to each pair. Offer suggestions as needed. Ask participants to switch roles after 10 minutes. (20 minutes total) How did the conversation work for you? How did you feel during the conversation? Was it difficult? What in this conversation might be useful to you when you return home? COURSE INSTRUCTION | 27 PERFORMANCE MANAGEMENT FEEDBACK CHANGE MODEL Feedback Change Model Briefly describe the performance deficiency and its impact. “I’m concerned that …” Ask for employee’s perspective. “What do you think is creating the problem?” Ask open-ended questions to find a solution. “ What are some things that will help solve this problem? Ask how you can help. “ How can I support you?” Gain mutual agreement on an improvement plan. “So at this point we agree …” End on a positive note. “I’m confident you can do this.” WORKBOOK PAGE: 20 SCRIPT/KEY POINTS Now, I’d like to introduce you to another brief conversation model you can use in less than 10 minutes to correct behaviors that inhibit performance. The key to providing effective change feedback is to be specific, factual, neutral and non-judgmental. Examine the PROBLEM not the INDIVIDUAL. It is not to blame or accuse. Click to reveal conversation model and read from slide. Asking how you can help reflects mutual responsibility. (Remember, if you agree to help in some way, you better do it!) Here is an example of how this conversation might play out....Can I get a volunteer to be my employee? Find a volunteer from the group. In this case, I’ve noticed that an employee has left 30 to 60 minutes early for the past 3 days. Demonstrate the reinforcement model and role play with the volunteer. For the past 3 days, I’ve noticed that you have left early. This is causing a bit of a problem, because there is a lot of work to be done and we have missed an important deadline. Help me understand why this situation is occurring. [Allow employee to respond.] What needs to happen in order to solve this problem? How can I support you? [Allow employee to respond.] So at this point you agree to…. I know you work hard and get a lot accomplished when you are here. I’m confident you can do this! COURSE INSTRUCTION | 28 PERFORMANCE MANAGEMENT Feedback Change Model ~ Exercise 7 ~ 1. 2. 3. 4. 5. 6. Pair off with a new partner. One partner plays the manager while the other person plays the employee. Choose a situation of your own or a Scenario in the participant manual. Conduct the Feedback Improvement conversation. After the practice, partners discuss how it went and what might be improved going forward. Switch roles and follow the same process, choosing another Scenario. 5 minutes per conversation – 10 minutes total. EXERCISE 7: FEEDBACK CHANGE MODEL WORKBOOK PAGE: 21 SCRIPT/KEY POINTS Turn to page 21 in your workbook, and you will see a list of different scenarios that would warrant improvement feedback. Find a different partner and select one scenario you would like to role play. One person will be the manager, and one will be the employee. You are also encouraged to use a real-life scenario if you have one. Use the feedback improvement model to provide effective feedback to your partner. (5 minutes) Walk around and listen to each pair. Offer suggestions as needed. Ask participants to switch roles after 10 minutes. (20 minutes total) How did the conversation work for you? How did you feel during the conversation? Was it difficult? What in this conversation might be useful to you back in your own organizations? Why do Performance Appraisals? Review employee’s overall achievement Rate overall job performance and determine rewards Assess employee’s skills and deficiencies Recognize positive achievements Support employee’s development needs Provide a baseline for establishing new objectives Lay the foundation for career development WHY DO PERFORMANCE APPRAISALS? WORKBOOK PAGE: 22 SCRIPT/KEY POINTS The purpose of annual and mid-term performance appraisals is to discuss OVERALL performance—it is not the time to give feedback about a specific activity or behavior. However, the manager should cite specific examples of behavior or activities that were observed and COURSE INSTRUCTION | 29 PERFORMANCE MANAGEMENT documented throughout the year—and during feedback sessions—to support specific points made during the review. Documentation of specific incidents and observations is crucial to conducting an impartial and meaningful performance appraisal. Pages 15-19 in the participant manual are to be used as references for when you do performance appraisals. Unfortunately, we will not have time to discuss performance appraisals in more detail today. Above all else, make sure you understand and support your organization’s performance management process. 15 MINUTE BREAK Providing Reinforcement Expected Time: 25 minutes PROVIDING REINFORCEMENT Providing Reinforcement WORKBOOK PAGE: 27 SCRIPT/KEY POINTS So far today, we have answered three of the five performance driving questions: “What do you want me to do,” “Why is it important?” and “How am I doing?” The fourth and final question we are going to answer today is, “What’s in it for me/us?” “What’s in it for me/us?” is considered a powerful performance driver. There HAS to be a benefit for us to DO ANYTHING! Why do we brush our teeth? Possible answers: So, we don’t have bad breath and cavities. Why do we go to work everyday? Possible answers: So, we can pay our bills, have a place to live and have food to eat. Everyone’s motivation is different, but everyone has one! There COURSE INSTRUCTION | 30 PERFORMANCE MANAGEMENT should also be motivation in place for employees to do good work. FIVE STEP PERFORMANCE MANAGEMENT PROCESS Five Step Performance Management Process Setting Setting Objectives Objectives Aligning Aligning Objectives Objectives What do you want me to do? Why is it important? Model Model&& Mentor Mentor How do I do it? Giving Giving Feedback Feedback WORKBOOK PAGE: 27 How am I doing? Positive Positive Reinforcemen Reinforcemen t tin it What’s for me? SCRIPT/KEY POINTS Positive reinforcement answers the last employee performance driver in the 5 step Performance Management Cycle…What’s in it for me/us? COURSE INSTRUCTION | 31 PERFORMANCE MANAGEMENT POSITIVE REINFORCEMENT Positive Reinforcement How do you ensure others repeat positive behavior? SCRIPT/KEY POINTS The definition of “reinforcement” is what happens to us AFTER the behavior or activity has occurred. It’s the consequence that is put in place as a result of what we do. How many of you have a child? How would you teach him/her to do something? Possible answers: Give him/her rewards, positive reinforcement. How did you teach them to continue that behavior? Possible answers: Continued positive reinforcement. This process is often referred to as “classical conditioning.” In order to encourage someone to carry out a behavior, they must be aware of the consequence (i.e., “I go to work and do a good job because I want to earn money and advance in my career.”) What is the difference between “feedback” and “reinforcement”? Possible answers: Feedback is “How and I doing?”—which is meant to communicate effective/ineffective behavior. Reinforcement answers “what’s in it for me?” and is meant to reward employees for positive behavior. COURSE INSTRUCTION | 32 PERFORMANCE MANAGEMENT Consequences Drive Future Behavior A-B-C Behavioral Model CONSEQUENCES DRIVE FUTURE BEHAVIOR B.F. Skinner Antecedent s Behavior Consequence s What we are asked to do What we actually do What happens as a result of the behavior WORKBOOK PAGE: 28 SCRIPT/KEY POINTS Behavioral psychologist, B.F. Skinner, introduced the A-B-C Behavioral Model in the 1940s. It says that the reason we do anything is because of future consequences. There are three parts to his model: 1. Antecedents: What we are asked to do. (Objectives, directives.) 2. Behavior: What we actually do, based on what is asked of us. 3. Consequences: What happens to us after the behavior occurs. They can be positive or punitive. Human beings need attention and accountability. We hate to be ignored! A behavior will tend to be repeated if it is reinforced. This answers “What’s in it for me/us?” For example, “An employee will regularly carry out positive behaviors, if s/he is rewarded for positive behavior.” This is an example of positive reinforcement. What would be an example of punitive reinforcement? Possible answers: Diminishing or eliminating an undesired behavior, pay reduction, less responsible tasks, etc. Immediate reinforcement has the strongest and quickest effect in managing behavior. The longer the delay, the less likely the subject will learn. Fairness is not about treating everyone the same—it’s about treating them as they deserve to be treated, based on what they have accomplished. COURSE INSTRUCTION | 33 PERFORMANCE MANAGEMENT TYPES OF REINFORCEMENT Types of Reinforcement Positive Punitive None WORKBOOK PAGES: 29 SCRIPT/KEY POINTS Skinner believed that we can modify behavior by changing the way it is reinforced. Refer to slide. Which of these types of reinforcement is most effective? Possible answers: Positive. Why? Possible answers: Rewards + behaviors. Punitive consequences are not as effective in controlling behavior. (E.g., prison as a punishment does not eliminate criminal behavior. It only encourages the one who has committed a crime to hide and avoid discovery.) If there are “no consequences” or no reinforcement, what happens? Possible answers: Behavior will eventually stop. In a laboratory, you might give a rat food each time it pushes a lever. Once you stop giving the food, the rat will eventually stop pushing the lever. However, you can bring back the behavior with positive reinforcement by providing food again. But, how is this relevant to working with a team of employees? Possible answers: Positive reinforcement generates improved performance. Let’s look at positive reinforcement in the form of recognition and rewards—and how to effectively acknowledge desired behavior and increase the probability that the behavior will be repeated in the future. COURSE INSTRUCTION | 34 PERFORMANCE MANAGEMENT EFFECTIVE POSITIVE REINFORCEMENT Effective Positive Reinforcement Specific – Given for a precise reason Immediate – as soon as possible Personal – appropriate to the person Sincere – you really mean it WORKBOOK PAGE: 30 SCRIPT/KEY POINTS When giving positive reinforcement to acknowledge, recognize or reinforce desired behavior or special accomplishments, it’s important to be: Specific: Note EXACTLY what the person did that went above and beyond what was expected (i.e., coming in on their day off to finish a project.) Immediate: The longer the delay in recognizing an effort or achievement, the less impact it will have. Personal: Positive reinforcement must be relevant to the person. Ask for a show of hands. How many would love to be congratulated in front of a large group of 100 people? Possible answers: Happy, embarrassed, etc. How many would not like it? Find a volunteer. Why? It is important to take an employee’s personal feelings into account when providing positive behavior. The manager’s idea of positive reinforcement may be punitive to the employee. Sincere. Employees can immediately detect whether managers mean what they say, or whether they are simply fulfilling an obligation and going through the motions of acknowledging a worthy action or accomplishment. COURSE INSTRUCTION | 35 PERFORMANCE MANAGEMENT Types of Positive Reinforcement Formal Public Individual Tangible Informal Private Team Symbolic TYPES OF POSITIVE REINFORCEMENT WORKBOOK PAGE: 30 SCRIPT/KEY POINTS Like feedback, there are a variety of ways to deliver positive reinforcement—based on individual preferences and the significance of accomplishment. Different types of positive reinforcement include: Formal: At a ceremony, banquet, or public event. Informal: In the office, after work, at lunch, in the field, walking to a meeting, etc. Public: When you recognize someone’s activities or accomplishments in front of a group, or wherever there is an audience. Private: One-on-one, via email or a written note, or a personal conversation. Individual: One person is recognized for an individual accomplishment. Team: A group of people are acknowledged for accomplishing something together. Tangible: There is a reward with monetary value associated with the positive reinforcement. Symbolic: A trophy, plaque, or framed certificate, which accompanies the positive reinforcement No award should be given without recognition (verbal or written, public or private, individual or team). Reward without recognition loses its value to the recipient. Can you think of and share any examples when you or someone you know was given an award inappropriately? COURSE INSTRUCTION | 36 PERFORMANCE MANAGEMENT When Performance Management Doesn’t Work When the person is … Unwilling to change Unable to learn from mistakes “Written-off” by the organization In the wrong job In the wrong organization Unethical or Lacks Integrity WHEN PERFORMANCE MANAGEMENT DOESN’T WORK WORKBOOK PAGE: 31 SCRIPT/KEY POINTS In the real world, there are times when the performance management model doesn’t work. Performance management only works when participants are willing to accept feedback and reinforcement. Sometimes, there are interpersonal dynamics present when a colleague is unwilling to change or is not willing to look at their mistakes as learning opportunities. If an employee feels their working environment doesn’t support them, they will more than likely not support the organization. In some cases, the person may be in the wrong job. They may be overwhelmed by the responsibility or bored because they are overqualified. The same is true if the organization’s mission doesn’t match the goals and aspirations of the employee. The key point about performance management is that it focuses on being open and honest with the employee. If the manager and the employee don’t respect each other, this model will not work. It is very important that everyone treats each other with respect and integrity. Have you ever worked for an organization or a manager who didn’t respect you? Possible answers: Yes. If you had a difficult manager, how would you feel about receiving feedback? Possible answers: Uncomfortable, I didn’t take it seriously. On the other hand, If you had a difficult employee, how would you approach them with honest, constructive feedback? Open, honest, assertive, try to understand their problems. COURSE INSTRUCTION | 37 PERFORMANCE MANAGEMENT FIVE STEP PERFORMANCE MANAGEMENT PROCESS Five Step Performance Management Process Setting Setting Objectives Objectives Aligning Aligning Objectives Objectives What do you want me to do? Why is it important? Model Model&& Mentor Mentor How do I do it? Giving Giving Feedback Feedback How am I doing? Positive Positive Reinforcement Reinforcement What’s in it for me? SCRIPT/KEY POINTS You’ve now been introduced to the key principles that great managers use to lead, motivate, and develop their employees. Performance management provides you with practical tools you can put to use right away to answer the five key questions that drive employee performance and results. What will you do to develop yourself into a great manager? SUMMARY Summary Are you focusing on what’s wrong or on what’s possible? Are you listening, involving and encouraging? Are you giving frequent, meaningful feedback? Are you recognizing positive efforts and achievements? What ONE thing will you do differently when you return home to be a better Manager? WORKBOOK PAGE: 33 SCRIPT/KEY POINTS Performance management focuses NOT on what’s WRONG, but on what’s POSSIBLE. The goal is to maximize human potential. Performance management is not just about TELLING and DIRECTING. It also involves a lot of asking, listening, and involving your employees to find mutually agreed solutions. Managers should treat employees as professionals who have experience and good ideas of their own. Performance management requires you to take an active interest in your people—giving them both informal and formal feedback along the way so they know where they stand, know that you care, and COURSE INSTRUCTION | 38 PERFORMANCE MANAGEMENT understand what they do well and can do better. Performance management also asks that you not ignore the efforts and achievements of your team. You also need to acknowledge, recognize, and reward good deeds. In reflecting on all that you’ve learned in this session, what one thing will you do differently with your staff when you return to your workplace? COURSE INSTRUCTION | 39 PERFORMANCE MANAGEMENT “The boss drives people; the leader coaches them. The boss depends on authority; the leader on good will. THE BOSS DRIVES PEOPLE, THE LEADER COACHES THEM The boss inspires fear; the leader inspires enthusiasm. The boss says “I”; the leader says “We”. The boss fixes the blame for the breakdown; the leader fixes the breakdown. The boss says, “Go”; the leader says “Let’s Go!” H. Gordon Selfridge Founder, London’s Selfridge Dept. Store - 1909 SCRIPT/KEY POINTS Read contents of the slide. Are there any questions or comments about anything we have discussed today? WHAT’S NEXT? What’s Next? Additional training topics for improving your performance management skills: Assertiveness Skills Coaching and Mentoring Conflict Resolution Dealing with Difficult Employees Delegating & Decision-Making Employee Motivation Listening Skills WORKBOOK PAGE: 34 Managing Diversity Organizational Change Negotiation Skills Organizational Development Performance Appraisals Strategic Planning Time Management SCRIPT/KEY POINTS Read contents of the slide. Thank audience. Ask participants to complete course evaluation forms, on page 29 of their participant manuals. Collect completed forms from workshop participants. COURSE INSTRUCTION | 40 PERFORMANCE MANAGEMENT Appendices Employee Recognition: What, Why and How ........................................................................ 41 The Business Case for Employee Recognition ...................................................................... 43 Praise Your Way to Success: 6 Steps to Effective Employee Recognition .......................... 46 Why Your Employees Are Losing Motivation ......................................................................... 47 Employee Recognition: What, Why and How Release Date: 11 / 15 / 2006 William James once said, "The deepest principle of human nature is the craving to be appreciated." Perhaps "craving" is too strong a term to apply to everyone, since the need for appreciation is less in some than others, but just about everyone shares the desire to be appreciated. If this need is not fulfilled at least to an extent, dissatisfaction can creep in, and productivity will eventually suffer. We know that pay raises and promotions serve as forms of recognition, and we're familiar with formal recognition programs, such as employee of the month and employee of the year. However, less formal, more immediate recognition practices that don't cost anything are most useful to managers. Informal employee recognition can be a manager's least expensive but most powerful motivational tool. Honest recognition addresses some of the most fundamental needs of most workers, particularly the need for acknowledgement and appreciation of a job well done. Most managers are busy people, and some give way to the pressures of the job by ignoring or even temporarily forgetting workers who are producing satisfactorily from day-to-day and causing no problems. Some managers may even assume that because the work is progressing smoothly and complaint-free, they have no reason to spend precious time on what they perceive as non-problem areas. Trouble is, these areas have a way of becoming problematic if left alone long enough. Simple recognition can be powerful, but the same kinds of recognition will not work for everyone. And whatever is done has to be taken seriously by most of the people; few practices are more frustrating than recognition that seems hollow or childish, or, as one worker said in reference to a manager's efforts, "Aren't we a little old for this gold-staron-the-report-card stuff?" In other words, whether trinkets or certificates are involved or even get-togethers like luncheons or pizza parties, what's most important is the performance feedback people receive. The strongest form of recognition is feedback that includes acknowledgement of work well done and praise for special efforts and accomplishments. Effective recognition is simple, honest and ongoing. For recognition to be fully effective, it should exhibit several characteristics: It must be earned or deserved; if it isn't, it will immediately be seen as flattery or manipulation. It should be consistent. Inconsistent recognition confuses recipients, and unequal recognition comes across as favoritism. It must be timely. Much of the value of day-to-day recognition lies in its immediacy. Personalized, spur-of-the-moment recognition is highly valued. It should be ongoing. Some managers are quick to deliver deserved criticism but not so quick to praise, even though it generally takes multiple positive strokes to neutralize the effects of one instance of criticism. EMPLOYEE RECOGNITION: WHAT, WHY AND HOW | 41 PERFORMANCE MANAGEMENT Because even marginal performers do some things right (if not, why are they still there?), positive feedback for small steps taken in the right direction can encourage more improvement. In addition to being sincere, it must be specific. "Hey, you're doing a great job!" is not specific; what's needed is positive acknowledgement of some action or task well done, delivered in timely fashion. It shouldn't embarrass. Know employees well enough to know who appreciates praise delivered in public, and who would rather hear it privately. A few precautions to consider in addressing recognition effectively are: Don't send mixed messages, such as delivering praise and criticism in the same contact. The criticism can overshadow the praise and leave employees confused and perhaps angry. Praise only what an employee has done well. Don't deliver grossly exaggerated or unmerited praise; this is essentially flattery or manipulation. Don't overlook anyone. Some employees feel that the only time their work is noticed is when they do something wrong. Too often recognition is reserved for a select few. Avoid specifying one performance outcome while rewarding another. For example, you might proclaim that quality is the first priority, but in actuality you praise those who increase productivity by cutting corners. What will honest recognition regularly dispensed do for you? One of the most important aspects of recognition is reinforcement of behavior. Behavior that is reinforced tends to be repeated. Reinforce appropriate performance and behavior and, in most instances, it will be repeated EMPLOYEE RECOGNITION: WHAT, WHY AND HOW | 42 PERFORMANCE MANAGEMENT THE BUSINESS CASE FOR EMPLOYEE RECOGNITION Effective employee recognition enhances employee motivation and satisfaction, increases employee productivity, and contributes to improved organizational performance. Organizations that do employee recognition well--and they're a minority-tend to have a recognition strategy and architecture that are integrated, multi-faceted, and multi-tiered. This means that recognition is: intended to support and value employees, to positively reinforce their initiative and creativity, and to enhance business performance; available for a wide variety of achievements and contributions, such as: innovations and improvements, excellent performance and other meritorious actions, and length of service; and presented at different levels depending on the significance of the accomplishment, e.g. the work unit level, the branch or division or ministry level, or the government-wide level. “Companies that manage people right will outperform companies that don’t by 30% to 40%.” Jeffrey Pfeffer The Human Equation: Building Profits by Putting People First Ross Porter’s “Quotes of the Day,” November 5, 1998 “…companies that manage and recognize its [sic] people outperform companies that don’t by 30 to 40%…. A recent WorldatWork study found that 85 percent to 95 percent of all incentive programs reach or exceed their goals, and that the return on investment (ROI) on non-sales employee programs (200 percent) is actually greater than the ROI on sales incentives (134 percent).” Brendan P. Keegan “Incentive Programs Boost Employee Morale & Productivity” Workspan 03/02 (March 2002), pp. 30-33. First part of the quote based on Contented Cows Give Better Milk by Robert J. Kriegel, Ph.D Some Evidence: “Canada’s ‘Best of the Best’ organizations boast highly Constructive cultures that value goal attainment, individual growth, supportiveness and teamwork – in principle and in practice….. [The leaders of these organizations cited numerous examples] concerning individual and team-based reward and recognition incentives for collaboration and team building, personal and professional development. One CEO of a high tech company even rewarded ‘failure’, by encouraging employees to ‘reframe’ that experience and ignite new ideas and possibilities. This approach resulted in several innovations.” “The Best of the Best: The role of leadership and culture in creating Canada’s best organizations” – An interim report (based on the 20 ‘Best of the Best’ Canadian organizations versus 70 ‘typical’ North American companies), FIRST LIGHT PMV Inc., October 2003, pp. 4, 7. According to “Measuring Engagement,” published Thursday, August 28, 2003, by Paul Bernthal, Ph.D., Manager, Center for Applied Behavioral Research, Development Dimensions International, Inc.: “The [U.S. Department] of Labor conducted a comprehensive review of more than 100 studies and found that people practices have significant relationships to improvements in productivity, satisfaction, and financial performance. DDI’s own research has shown that when engagement scores are high, employees are more satisfied, less likely to leave the organization, and more productive.” The 2002 report of the Office of the Auditor General of BC on Building a Strong Work Environment in British Columbia’s Public Service: A Key to Delivering THE BUSINESS CASE FOR EMPLOYEE RECOGNITION | 43 PERFORMANCE MANAGEMENT Quality Service stated that: “Recognition has been shown to motivate staff, increase morale, productivity, and employee retention, and decrease stress and absenteeism.” This report concluded that “individual recognition” was one of the top three factors for improving the levels of employee satisfaction and employee engagement in the BC public service. According to a Gallup survey of more than 80,000 employees, recognition is a key factor in employee satisfaction and retention. The purpose of the survey was “to identify the consistent dimensions of ‘quality workplaces,’ defined as those in which four critical outcomes--employee retention, customer satisfaction, productivity, and profitability--are all at high levels. Recognition and praise ranked fourth among the twelve dimensions that consistently correlated with those workgroups that have higher employee retention, higher customer satisfaction, higher productivity, and higher profits. The dimensions do not include pay and benefits. That does not mean that pay and benefits are not important. But it does mean that compensation levels do not differentiate great workgroups from the rest.” According to The Gallup Organization: "Historically, praise and recognition in the workplace has been handled from the perspective of ‘If you don't hear anything, assume you're doing a good job.’ In contrast to this ‘old industrial workplace’ mindset, the new knowledge-based worker relies and depends upon praise and recognition as the means of defining what is valued by the organization. Today, praise and recognition are communication vehicles for what is deemed as important.” They also point out that recognition “is one of the items that consistently receives the lowest rating from employees.” A 1998 report of the Conference Board of Canada, Loyal Customers, Enthusiastic Employees and Corporate Performance, summarized the findings of a number of studies that showed clear linkages between strong financial performance, loyal customers and employee enthusiasm. The 1992 book Corporate Culture and Performance (by John P. Kotter & James L. Heskett, Free Press Publishing) “established that corporate culture has a significant effect on a firm’s long-term sustainability and economic performance. They found, over an 11-year period, firms with an embedded cultural capacity for managing change achieved these results: increased revenues by an average of 682% compared to 166% in other firms; expanded workforces by 282% versus 36%; raised stock prices by 901% versus 74%; and improved net incomes by 756% versus 1%.” Quoted in Juechter, Fisher & Alford, “Five Conditions for HighPerformance Cultures,” Training & Development Magazine, May 1998. (Porter, “Quotes of the Day,” November 20, 1998.) A 1993 U.S. Department of Labor study looked at the HR practices (participation & management type; culture; organization structure; creativity; reward systems; and flexibility) of 150 organizations on the ‘Forbes 500’ list. The 150 were then divided into the 75 most progressive and the 75 least progressive. The most progressive outperformed the least progressive in terms of profits, sales, earnings per share, and dividends. (BBAWARDS 98-55.) The 61 publicly traded companies on Fortune Magazine’s 1998 100 Best Companies to Work For list outperformed the Russell 3000 Index by 10% over both 5-year and 10-year periods of time (27.5% to 17.3% for 1993-97 and 23.4% to 14.8% for 1988-97. (BBAWARDS 98-55.) According to Karen Hessian, Senior Director, Employee Performance Solutions, Carlson Marketing Group, “research clearly shows a link between organizations that have high employee engagement, and those that are the most successful at the bottom line.” (BBAWARDS 98-33.) See below. Employee Recognition, Employee Satisfaction & Organizational Performance Are Linked The Gallup organization has conducted employee surveys over the years with well over one million employees. In 1997 Gallup did a meta-analysis of some of these surveys, THE BUSINESS CASE FOR EMPLOYEE RECOGNITION | 44 PERFORMANCE MANAGEMENT which had involved over 100,000 employees. This analysis found a correlation between employee satisfaction and positive business outcomes. In 1998 the Carlson Marketing Group of Minneapolis commissioned Gallup to do a further study that concluded: Profitability, productivity, employee retention and customer satisfaction are linked to employee satisfaction Employees who receive recognition are much more likely to be extremely satisfied with their employer The vast majority of employees who receive recognition or praise feel it motivates them to improve performance The difference in satisfaction level is greatest when performance measurement and recognition are combined. THE BUSINESS CASE FOR EMPLOYEE RECOGNITION | 45 PERFORMANCE MANAGEMENT PRAISE YOUR WAY TO SUCCESS: 6 STEPS TO EFFECTIVE EMPLOYEE RECOGNITION February 05, 2008 "You're doing a good job." "That's a great idea." "Thanks for your extra effort." For some employees, hearing those words is better than a cash bonus. Yet, many managers can muster up such phrases only during annual reviews ... if at all. "The number-one reason managers don't give recognition is that they don't know how," says Bob Nelson, author of 1001 Ways to Reward Employees. That's why you need to teach supervisors how to give employee recognition and give them the tools to make it easier. Studies consistently show that "feeling appreciated" is a key reason employees stick around. And by making recognition a companywide effort, you remove a burden from you and make rewards more personal. Here are Nelson's six guidelines for effective praising: 1. Make it soon. Any recognition is good, but the best kind is given as soon as possible after the good performance. Example: When an HP software engineer told his supervisor that he fixed a software bug, the supervisor grabbed a banana from his lunch and gave it to the employee with a big "thank you." Today, the most prestigious award in that HP department is the "Golden Banana" award. 2. Make it sincere. Stop guessing at what rewards people want. Ask them. Nelson says Medtronic Corp. recently stopped giving people "stuff" for their years-ofservice awards. Instead, they give days off because the company finally asked employees, and that's what they wanted. 3. Make it specific. If possible, relate the gift to the performance being rewarded. Example: Apple Computers prints different company core values on T-shirts ("Integrity," etc.) and gives them to employees who demonstrate those values. "Apple has employees who work hard trying to collect them all," says Nelson. 4. Make it personal. One bank asks new hires on their first day to write on an index card the three things that motivate them (time off, lunch with the boss, Starbucks coffee, etc.). The card is then given to their supervisors, who can mold rewards around those "wants." 5. Make it positive and public. When praising employees, don't undercut it by concluding with a note of criticism. And, when possible, convey the praise in person and in public. With public praising, says Nelson, "you're sending the message that this is the type of thing that gets rewarded around here." 6. Make it proactive. Teach supervisors how to be on the lookout for positive behaviors. One tactic: Managers can put the name of every staff member on their weekly "to do" list. Then, managers can cross off each name as they dole out praise that week. Copyright © 2008 NIBM. All rights reserved PRAISE YOUR WAY TO SUCCESS: 6 STEPS TO EFFECTIVE EMPLOYEE RECOGNITION | 46 PERFORMANCE MANAGEMENT WHY YOUR EMPLOYEES ARE LOSING MOTIVATION HBSWK Pub. Date: Apr 10, 2006 Business literature is packed with advice about worker motivation—but sometimes managers are the problem, not the inspiration. Here are seven practices to fire up the troops. From Harvard Management Update. by David Sirota, Louis A. Mischkind, and Michael Irwin Meltzer Most companies have it all wrong. They don't have to motivate their employees. They have to stop demotivating them. The great majority of employees are quite enthusiastic when they start a new job. But in about 85 percent of companies, our research finds, employees' morale sharply declines after their first six months—and continues to deteriorate for years afterward. That finding is based on surveys of about 1.2 million employees at 52 primarily Fortune 1000 companies from 2001 through 2004, conducted by Sirota Survey Intelligence (Purchase, New York). The fault lies squarely at the feet of management—both the policies and procedures companies employ in managing their workforces and in the relationships that individual managers establish with their direct reports. Our research shows how individual managers' behaviors and styles are contributing to the problem (see sidebar "How Management Demotivates")—and what they can do to turn this around. Three key goals of people at work To maintain the enthusiasm employees bring to their jobs initially, management must understand the three sets of goals that the great majority of workers seek from their work—and then satisfy those goals: Equity: To be respected and to be treated fairly in areas such as pay, benefits, and job security. Achievement: To be proud of one's job, accomplishments, and employer. Camaraderie: To have good, productive relationships with fellow employees. To maintain an enthusiastic workforce, management must meet all three goals. Indeed, employees who work for companies where just one of these factors is missing are three times less enthusiastic than workers at companies where all elements are present. One goal cannot be substituted for another. Improved recognition cannot replace better pay, money cannot substitute for taking pride in a job well done, and pride alone will not pay the mortgage. What individual managers can do Satisfying the three goals depends both on organizational policies and on the everyday practices of individual managers. If the company has a solid approach to talent management, a bad manager can undermine it in his unit. On the flip side, smart and empathetic managers can overcome a great deal of corporate mismanagement while creating enthusiasm and commitment within their units. While individual managers can't control all leadership decisions, they can still have a profound influence on employee motivation. The most important thing is to provide employees with a sense of security, one in which they do not fear that their jobs will be in jeopardy if their performance is not perfect and one in which layoffs are considered an extreme last resort, not just another option for dealing with hard times. But security is just the beginning. When handled properly, each of the following eight practices will play a key role in supporting your employees' goals for achievement, equity, and camaraderie, and will enable them to retain the enthusiasm they brought to their roles in the first place. WHY YOUR EMPLOYEES ARE LOSING MOTIVATION | 47 PERFORMANCE MANAGEMENT Achievement related 1. Instill an inspiring purpose. A critical condition for employee enthusiasm is a clear, credible, and inspiring organizational purpose: in effect, a "reason for being" that translates for workers into a "reason for being there" that goes above and beyond money. Every manager should be able to expressly state a strong purpose for his unit. What follows is one purpose statement we especially admire. It was developed by a threeperson benefits group in a midsize firm. Benefits are about people. It's not whether you have the forms filled in or whether the checks are written. It's whether the people are cared for when they're sick, helped when they're in trouble. This statement is particularly impressive because it was composed in a small company devoid of high-powered executive attention and professional wordsmiths. It was created in the type of department normally known for its fixation on bureaucratic rules and procedures. It is a statement truly from the heart, with the focus in the right place: on the ends—people—rather than the means—completing forms. Stating a mission is a powerful tool. But equally important is the manager's ability to explain and communicate to subordinates the reason behind the mission. Can the manager of stockroom workers do better than telling her staff that their mission is to keep the room stocked? Can she communicate the importance of the job, the people who are relying on the stockroom being properly maintained, both inside and outside the company? The importance for even goods that might be considered prosaic to be where they need to be when they need to be there? That manager will go a long way toward providing a sense of purpose. To maintain an enthusiastic workforce, management must meet all three goals. 2. Provide recognition. Managers should be certain that all employee contributions, both large and small, are recognized. The motto of many managers seems to be, "Why would I need to thank someone for doing something he's paid to do?" Workers repeatedly tell us, and with great feeling, how much they appreciate a compliment. They also report how distressed they are when managers don't take the time to thank them for a job well done yet are quick to criticize them for making mistakes. Receiving recognition for achievements is one of the most fundamental human needs. Rather than making employees complacent, recognition reinforces their accomplishments, helping ensure there will be more of them. A pat on the back, simply saying "good going," a dinner for two, a note about their good work to senior executives, some schedule flexibility, a paid day off, or even a flower on a desk with a thank-you note are a few of the hundreds of ways managers can show their appreciation for good work. It works wonders if this is sincere, sensitively done, and undergirded by fair and competitive pay—and not considered a substitute for it. 3. Be an expediter for your employees. Incorporating a command-and-control style is a sure-fire path to demotivation. Instead, redefine your primary role as serving as your employees' expediter: It is your job to facilitate getting their jobs done. Your reports are, in this sense, your "customers." Your role as an expediter involves a range of activities, including serving as a linchpin to other business units and managerial levels to represent their best interests and ensure your people get what they need to succeed. How do you know, beyond what's obvious, what is most important to your employees for getting their jobs done? Ask them! "Lunch and schmooze" sessions with employees are particularly helpful for doing this. And if, for whatever reason, you can't immediately address a particular need or request, be open about it and then let your workers know how you're progressing at resolving their problems. This is a great way to build trust. WHY YOUR EMPLOYEES ARE LOSING MOTIVATION | 48 PERFORMANCE MANAGEMENT 4. Coach your employees for improvement. A major reason so many managers do not assist subordinates in improving their performance is, simply, that they don't know how to do this without irritating or discouraging them. A few basic principles will improve this substantially. First and foremost, employees whose overall performance is satisfactory should be made aware of that. It is easier for employees to accept, and welcome, feedback for improvement if they know management is basically pleased with what they do and is helping them do it even better. Space limitations prevent a full treatment of the subject of giving meaningful feedback, of which recognition is a central part, but these key points should be the basis of any feedback plan: Performance feedback is not the same as an annual appraisal. Give actual performance feedback as close in time to the occurrence as possible. Use the formal annual appraisal to summarize the year, not surprise the worker with past wrongs. Recognize that workers want to know when they have done poorly. Don't succumb to the fear of giving appropriate criticism; your workers need to know when they are not performing well. At the same time, don't forget to give positive feedback. It is, after all, your goal to create a team that warrants praise. Comments concerning desired improvements should be specific, factual, unemotional, and directed at performance rather than at employees personally. Avoid making overall evaluative remarks (such as, "That work was shoddy") or comments about employees' personalities or motives (such as, "You've been careless"). Instead, provide specific, concrete details about what you feel needs to be improved and how. Keep the feedback relevant to the employee's role. Don't let your comments wander to anything not directly tied to the tasks at hand. Listen to employees for their views of problems. Employees' experience and observations often are helpful in determining how performance issues can be best dealt with, including how you can be most helpful. Remember the reason you're giving feedback—you want to improve performance, not prove your superiority. So keep it real, and focus on what is actually doable without demanding the impossible. Follow up and reinforce. Praise improvement or engage in course correction— while praising the effort—as quickly as possible. Don't offer feedback about something you know nothing about. Get someone who knows the situation to look at it. Equity related 5. Communicate fully. One of the most counterproductive rules in business is to distribute information on the basis of "need to know." It is usually a way of severely, unnecessarily, and destructively restricting the flow of information in an organization. Workers' frustration with an absence of adequate communication is one of the most negative findings we see expressed on employee attitude surveys. What employees need to do their jobs and what makes them feel respected and included dictate that very few restrictions be placed by managers on the flow of information. Hold nothing back of interest to employees except those very few items that are absolutely confidential. A command-andcontrol style is a surefire path to demotivation. Good communication requires managers to be attuned to what employees want and need to know; the best way to do this is to ask them! Most managers must discipline themselves to communicate regularly. Often it's not a natural instinct. Schedule regular employee meetings that have no purpose other than two-way communication. Meetings among management should conclude with a specific plan for communicating the results of the meetings to employees. And tell it like it is. Many employees are quite skeptical about management's motives and can quickly see through "spin." Get continual WHY YOUR EMPLOYEES ARE LOSING MOTIVATION | 49 PERFORMANCE MANAGEMENT feedback on how well you and the company are communicating. One of the biggest communication problems is the assumption that a message has been understood. Follow-up often finds that messages are unclear or misunderstood. Companies and managers that communicate in the ways we describe reap large gains in employee morale. Full and open communication not only helps employees do their jobs but also is a powerful sign of respect. 6. Face up to poor performance. Identify and deal decisively with the 5 percent of your employees who don't want to work. Most people want to work and be proud of what they do (the achievement need). But there are employees who are, in effect, "allergic" to work—they'll do just about anything to avoid it. They are unmotivated, and a disciplinary approach—including dismissal—is about the only way they can be managed. It will raise the morale and performance of other team members to see an obstacle to their performance removed. Camaraderie related 7. Promote teamwork. Most work requires a team effort in order to be done effectively. Research shows repeatedly that the quality of a group's efforts in areas such as problem solving is usually superior to that of individuals working on their own. In addition, most workers get a motivation boost from working in teams. Whenever possible, managers should organize employees into self-managed teams, with the teams having authority over matters such as quality control, scheduling, and many work methods. Such teams require less management and normally result in a healthy reduction in management layers and costs. Creating teams has as much to do with camaraderie as core competences. A manager needs to carefully assess who works best with whom. At the same time, it is important to create the opportunity for cross-learning and diversity of ideas, methods, and approaches. Be clear with the new team about its role, how it will operate, and your expectations for its output. Related to all three factors 8. Listen and involve. Employees are a rich source of information about how to do a job and how to do it better. This principle has been demonstrated time and again with all kinds of employees—from hourly workers doing the most routine tasks to high-ranking professionals. Managers who operate with a participative style reap enormous rewards in efficiency and work quality. Participative managers continually announce their interest in employees' ideas. They do not wait for these suggestions to materialize through formal upward communication or suggestion programs. They find opportunities to have direct conversations with individuals and groups about what can be done to improve effectiveness. They create an atmosphere where "the past is not good enough" and recognize employees for their innovativeness. Participative managers, once they have defined task boundaries, give employees freedom to operate and make changes on their own commensurate with their knowledge and experience. Indeed, there may be no single motivational tactic more powerful than freeing competent people to do their jobs as they see fit. Reprinted with permission from "Stop Demotivating Your Employees!" Harvard Management Update, Vol. 11, No. 1, January 2006. David Sirota is chairman emeritus, Louis A. Mischkind is senior vice president, and Michael Irwin Meltzer is chief operating officer of Sirota Survey Intelligence. They are the authors of The Enthusiastic Employee: How Companies Profit by Giving Workers What They Want (Wharton School Publishing, 2005). They can be reached at MUOpinion@hbsp.harvard.edu WHY YOUR EMPLOYEES ARE LOSING MOTIVATION | 50