Values Jam Values Jam BluePages Search HelpNow Feedback Search comments/replies only Help w3 Home Values Jam Discussion Forums Forum 1 Forum 2 Forum 3 Forum 4 31 Jul 2003 Values Jam time remaining: Discussion Forums > Forum 2. A First Draft Comments and Replies To respond to the comment below — or any reply shown — click "Post a Reply." To view only the comment or reply (and its associated replies) click "View this comment only." Clicking on a person's name will display their BluePages page. (>) signifies a level of reply. You can rate the content of the comment and/or any reply. (Even if it's your own!) Jam Themes Jam Ratings Think Values About Values Jam Values Jam Help Have something to say? Why not join these discussions now! Value of candor The family feeling Subject: Job Performance Comment by: Adrian C. Flores Date: 29 Jul 2003 05:31:14 GMT I have come close to resigning my management position because my hand is forced to evaluate an employee based on a predetermined number (more 3s than I would like). I am coached by HR that performance is the key to making this determination. A person performing at a 2 level should not be downgraded to a 3 because we need to meet management numbers. I can defend not giving a 2 performer an increase, but I cannot defend giving a View this comment only deserving employee a 2 because I need to meet numbers. My integrity and that of the company is at risk. I realize that these are hard economic times and a company cannot give dollars in bad times as freely as good times. However, those of us still working for IBM are doing our best to make this company profitable and if we do that then they deserve the 2 period, no matter what management needs to meet numbers. We may not get dollar increases, but we should be recognized as a 2 performer. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Benjamin D. Jones Date: 29 Jul 2003 05:38:59 GMT As an employee with thirty years of service to IBM, responding to customers in the middle of the night, working overtime without View this comment only pay, the use of numerical quotas for performance is one reason their has been a loss of innovation and motivation in IBM in my opinion. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Michael W. Brown Date: 29 Jul 2003 05:36:20 GMT I agree, The 1/2/3 system is too coarse-grained and in the end what does it mean anyway. Adding the bell-curve of numbers of 1/2/3 that management is able to give completely invalidates the system. View this comment only This system forces me a single conclusion: the best way to get raises, promotions and awards is to be the smart guy in a department full of losers. Unfortunately that's hard to come by these days. Never ever join a department full of smart people. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (1 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Martin Scott Nicklous Date: 29 Jul 2003 07:36:01 GMT I had to smile when I read this. A friend of mine once thought along these lines and announced his goal of trying to "be a big fish in a little sea." Naturally, that doesn't guarantee the most stimulating job. I don't think it helps much in developing networks with capable people, either. View this comment only But it might help provide for a better immediate-term rating. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Garhett M. Rittenhouse Date: 29 Jul 2003 05:52:14 GMT I think Adrian nailed this one. You measure people based on performance and reward them when possible, a bonus is not a guarantee of pay. When someone performs well (or poorly for that matter), they should be rated appropriately. However Micheal, I think you are being rhetorical. Who wouldn't want to work in a department with a bunch of smart? I would View this comment only love it! It would also raise your standard of performance. What a great outcome. IBM needs to reward and promote success. Keep up the Golden Ring club and the Distinguished Engineers and all of the other rewards. And, move some of those to Global Services while you are at it. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Scott D. Hicks Date: 31 Jul 2003 04:23:33 GMT What is a Golden Ring Club? I've been with the company for 18 + years in both marketing and services, and have never heard View this comment only of this. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Michael W. Brown Date: 29 Jul 2003 06:26:09 GMT I do like to work in departments full of smart people - I do right now. The risk is you may end up with an artificially low rating and a few of those puts your job at risk, even though you're doing the same quality of work that would get a higher rating in another department. POST A REPLY View this comment only RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (2 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Garhett M. Rittenhouse Date: 29 Jul 2003 07:47:20 GMT Yeah, but that is the beauty of working with great people... you are forced to strive to work harder. To work in a fantastic group is a risk. You risk failure in the eyes of your peers because they are outstanding performers. I think it answers the Forum question, IBM has to be willing to risk failure in order to compete and be the best. The market (not stock market) only rewards the best. And, if we think, "I work with smart people and I will be at the bottom of the smart people View this comment only chain because they are all smart....forget it." then, I think we will fail. Besides, I think trying to have managers look across all of IBM to rate Garhett (in Svc), next to Micheal (in the Linux center) is an impossibility. The lead would have to be "kreska of the HR world" to normalize the scores across all of IBM. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: James R. Kunz Date: 29 Jul 2003 05:40:16 GMT we need more levels like 1 thru 5 instead of 1 thru 3, with more granularity of corresponding BAP/raises .. I have heard a lot of times how how I was a "high" 2 .. but it didn't make any difference in the BAP ... View this comment only or would more levels just compound the problem .. POST A REPLY RATE THIS COMMENT Subject: Job Performance: More ratings? Reply by: Brian J. Cragun Date: 29 Jul 2003 08:57:27 GMT I disagree. It is much easier to function knowing you are in the middle of the pack, rather than worry about being 2,3,4. A two basically says, you're OK, keep going. POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance Reply by: John D. Swansey Date: 29 Jul 2003 06:14:38 GMT Adrian Thanks for your honesty. I would rather be told "no raise this year because the economy is in the toilet" than have all our ratings ratcheted down to meet the numbers, which has been View this comment only hinted is happening again this year. The zero-sum nature of the ratings: all of us in the same department fighting over a shrinking pool of raise money does not do much for teamwork. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Samuel J. Motes Date: 29 Jul 2003 06:42:08 GMT I can agree more. I think we have a lot of "self fulfilling prophecy" going on. If I work my butt off and get a 2 or 3 and I see a slacker on my team doing 1/10th the work, commitmnet and effort I put in, what are the chances I will do View this comment only it again? Not to mention the fact that is is harder to tell the outstanding managers since everyone gets the same distribution of 1/2/3 performers. Quotas on performance is a very dangerous thing. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (3 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance and PBC fairness Reply by: Gavin C. Lewis Date: 29 Jul 2003 06:09:06 GMT I absolutely agree. To impose quotas on performance within a department is absolute nonsense. If a particular manager has many employees performing at PBC 1 or 2 level, then that is the rating they should be given. If that doesn't fit the "ideal distribution" then so be it... If people feel they are regularly underrated in their PBC results, and consequently having reduced chances for promotion etc., they will perhaps start to look for other jobs where they are recognised appropriately. The current PBC scheme also makes it far too easy for some individuals to set relatively "easy" commitments which enhance their chances of obtaining a 1 or 2 result, while others will battle with a heavy-duty workload of more challenging commitments, with no chance of a 1 rating, and a big challenge to even obtain a 2, given the definitions of those ratings. The fairness of PBC View this comment only commitments between individuals in depts and perhaps even between departments needs to be monitored more closely by HR (in terms of both the workload implied by the commitments and the number of such commitments). There should be a clear way to raise concerns about PBC "workload imbalances" such that these are assessed thoroughly by an independent third-party who is familiar with the technical skills required by the PBC commitments in question. The responsible manager is not always in the position to judge this fairly and correctly. The basic principle and structure (Win, Execute, Team) of the PBC scheme is good, but these deficiencies can make it very unfair to those who take on a wide range of tasks in depts with many different skills and responsibilities. Hard work with many technical challenges should be appropriately rewarded! POST A REPLY RATE THIS COMMENT Subject: Job Performance and PBC fairness Reply by: James M. Rogowski Date: 31 Jul 2003 02:20:19 GMT I agree Gavin. My manager told me outright last PBC rating period that he would have given me a 1, but there was only one to be given out ... and another manager in the organization was adamant that he had an employee that deserved it more. So even though (according to my manager) I was a 1 performer, I View this comment only was given a 2, lost significant money in Variable Pay and don't have a 1-rating in my PBC that I can point to when job searching. So why am I not supposed to be negatively affected by this? POST A REPLY RATE THIS COMMENT Subject: This is a significant problem for 1st line managers at IBM Research Reply by: Robert J. Schloss Date: 29 Jul 2003 06:36:42 GMT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (4 of 29)7/30/2003 3:38:00 PM Values Jam I am lucky enough to work at a place where we don't even let View this comment only anyone except demonstrated superachievers get in the door (T. J. Watson Research Center). The number of comments I have heard from 1st and 2nd line managers about how difficulty the forced distribution of PBC scores indicates that many are struggling with this, and some departments are becoming unbalanced because of this. For Research Staff Members, we have a hybrid system, with annual PBC scores plus a ranking system (with values of 1 to 100) that takes into account recent year contributions. Perhaps if Variable Pay stays relatively lower, people won't obsess so much about PBC scores... I would like to see a multiyear experiment. Let part of IGS have a forced PBC distribution, and part not, and look at results over several years. Same for Research. That's the only way we'll know if we are gaining more or losing more from the current forced distribution. POST A REPLY RATE THIS COMMENT Subject: This is a significant problem for 1st line managers at IBM Research Reply by: Rolf Clauberg Date: 30 Jul 2003 05:51:53 GMT If you really have to achieve the required distribution within a 1st line manager's project, then it is a significant problem. However, this is NOT what I have seen. At least in the Zurich View this comment only Research Lab distributions were achieved (and discussed between 1st line managers) on 3rd line manager level. Only at this level the number of employees was sufficiently large to fit the PBC ratings into the required distribution. POST A REPLY RATE THIS COMMENT Subject: This is a significant problem for 1st line managers all over Reply by: Brian J. Cragun Date: 30 Jul 2003 02:29:00 GMT The problem is that even though the "curve" is said to apply at a third level only, there is still plenty of pressure to push it View this comment only down to first levels. In other words, "Which of my people should I rate as under-achievers, so you can rate all your people as over acheivers?" Each manager wants to hold on to every high rating he can keep. POST A REPLY RATE THIS COMMENT Subject: This is a significant problem for 1st line managers at IBM Research Reply by: Joseph J. Ciardullo Date: 29 Jul 2003 08:37:22 GMT Robert, As for the forced PBC ratings, in research does the guy View this comment only with only 3 patents get the 3 when the other department members have 5 -10 patents? POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (5 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Evaluating Researchers Reply by: Robert J. Schloss Date: 30 Jul 2003 05:53:49 GMT As in the rest of IBM, we have job descriptions as well as individual's PBC objectives against which people's results can be judged. Patents are one factor of about a dozen that are used in evaluting the contributions of people at IBM Research. As my colleague from Zurich said, in some cases the distribution is done over a very large group; but first line View this comment only managers do spend a lot of time in discussions with their managers trying to compare relative contributions, so that these 2nd lines can be as fair as possible while living within the distributions. Because the importance of Research results might not be totally understood in November and December, this makes *me* feel like I am asked to make very fine distinctions with a precision that is difficult *for me*. (But they are paying me to do dificult things; so that comes with the territory). POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Alejandrina E. Fernandez Date: 29 Jul 2003 06:48:14 GMT Thanks for your honesty. This is an unspoken truth that we have known about for years and does not speak well about integrity at the top of our company, who actually agreed with the execution of this unfair practice. While it is treated as a way to limit expenses, View this comment only it is not fair to the employees who deserve a 2 and don't get it because the direction is to limit 1s and 2s to a minimum no matter what the results where. This creates management behavior which can't be trusted and completely destroys any perception of integrity of the management team. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Sandi Mustard Date: 29 Jul 2003 07:09:08 GMT I couldn't agree more Adrian. And the practice of routinely giving someone a 3 for the first year that they are in a new job role is also ridiculous. This is true for a first-year manager or team leader (for example), and especially true for a converted contractor, who continues in a role s/he has performed for up to 2 years already, but because s/ View this comment only he is in their first year as an IBM reg, is rated a 3 for performance. The incentive to strive in that first year as an IBM reg must be entirely internal, because one is not being rewarded for good performance by the IBM rating system. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Gabriele Avzaradel Date: 29 Jul 2003 07:13:42 GMT I agree and therefore we should change the variable pay rules to match the company's amount for payout. It wouldn't be fair to pay more for the performer of an organization that tends more tower 2's. POST A REPLY View this comment only RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (6 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: David B. Bowden Date: 29 Jul 2003 07:21:26 GMT I swas told by management that this was "skew" and we dont talk about it. Nice motivation here, regardless of how well you do, your evaluation level 1/2/3 is dependant on a "bell curve skew" as to who can get what. POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance - skew Reply by: J. Kevin Lowe Date: 29 Jul 2003 08:01:37 GMT David's note below explains the cries of "I've been skewed" coming from the bar at PBC time. :-) Job Performance Comment by: David B. Bowden Date: 29 Jul 2003 07:21:26 GMT I swas told by management that this was "skew" and we dont talk about it. View this comment only Nice motivation here, regardless of how well you do, your evaluation level 1/2/3 is dependant on a "bell curve skew" as to who can get what. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Norbert C. Warnes Date: 29 Jul 2003 07:39:12 GMT The Performance Appraisal/Recognition process is corrupt and it is unfair to all concerned. There is no objectivity, and most damning of all, it has no basis in performance or the attainment of unit business goals as expressed in PBCs. Let's review the concept: business units define goals, goals are eventually reflected in the mission statements (PBCs) of the individuals that comprise the business unit, action plans (IDPs) define a course and specific steps of individuals toward realization of business goals, specific actions are planned based upon counsel of senior View this comment only business unit members (Mentors). If the description of the concept is right, what's wrong? The process fails regardless of what direction you start- goals or results. This begs the question: why do these fictions exist? It probably has more to do with avoiding litigation, i.e., damage control by appearing to have a systematic and objective process in place. Objectivity and true performance evaluations is a myth in the process as it is practiced today. 1st and 2nd Line Managers tend to evaluate their syncophants, toadies, and favorites more generously, and can hide behind the Performance fiction. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (7 of 29)7/30/2003 3:38:00 PM Values Jam Subject: I see a pattern....do you ? IBM and its Bureaucracy getting in the way Reply by: Timothy Durniak Date: 29 Jul 2003 07:25:32 GMT I've been here 21 + years, lived through the 1-5 ratings, 1-4 ratings, PBCs, 360s and a common theme (problem) remained -"someone" (near or at the top) stating(edicting) that according to some survey there MUST be a (performance) distribution of a given shape for a given number of people. This message then gets pushed down the management chain until you end up with stories like this one. A root to this may lie in the need to feed a bureaucracy the answer it wants (which is far far easier than going head to head with it) - and since managers have less and less time and more and more work, then the bureaucracy gets View this comment only what it asked for (deserves?). Now I pose a critical THINKing question, one that someone at corporate headquarters can help answer - do IBM's performance curves fit some statistical norm too well? Are IBM's best asset (its people) being mismanaged in order to have nice charts? I posit that if you give any group of intelligent people the chance to understand the economics of the business they could easily work out how to distribute "rewards". A key component of that is trust - in both directions - that the economic information is correct, and that the people are not just looking for 'free' money. Summarizing to fit the theme of the jam - values - Honesty and Integrity (which help reinforce trust) seem to go a long way. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Vaughn R. Evans Date: 29 Jul 2003 07:32:27 GMT I don't mind not getting a raise because money is tight but you don't have to with hold the praise. The deceptive PBC process introduces the same problems that the deceptive values confusion POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance Reply by: Stephan J. Roorda Date: 30 Jul 2003 12:17:07 GMT I agree as well. I don't want my contributions and hard work minimized because the performance results have to fit a certain curve. However, if you are going to tie performance to pay you have to have a way of "ranking" employees to determine the pay. I think that there are several things here that IBM can do to improve the current system. First, there should be some sort of performance review that is not skewed and not tied to View this comment only compensation in any way. That way we can strive toward a system that truly recognizes an employee's contribution. Second, we need a different review to determine the variable pay that is now tied to PBCs. The performance review could be just one factor here, along with how the business is doing, and how many other "smart" high performing people are in your department. Maybe those suggestions don't solve the problem but, at least its a start thinking about a solution... POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (8 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Udo Kerwath Date: 30 Jul 2003 01:01:01 GMT Hmmmm.... performance not being linked to compensation? I can't agree - nothing's more demotivating than "you're great, but we don't pay you accordingly". To me, it's key to ***fairly*** link performance to compensation/promotion. The 1-2-3 bell curve on small numbers is definitely not the right way. And, assuming managers are courageous enough to spread the ratings if appropriate, on the total poulation, you'll see the bell curve again. And why not allocate the budget for raises to the "real" distribution of ratings instead. Then in a department with top people, the spread is not as high as in a more hetrogenous department. This implies that managers do use the possibilities View this comment only to spread and are not afraid of "hurting" someone (giving a 2 to everybody is actually hurting the ones that earned a 1). Summary: stay with the PBC ratings, but don't force managers to give ratings they don't want to give. The current system is at least a good try to objectify the issue of performance vs. total arbitrariness. And why don't we put more people on incentive? If you look at the eligibility criteria, it looks like only customer facing people have "earned" it. There are some others also contributing to company's success :-). To me, that's the next step to high performance culture. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Frederic A. Clark Date: 29 Jul 2003 07:40:23 GMT I asked my manager if there were a restricted number of 1's 2's and 3's, and he lied to me. He said he was not held to any quota system. View this comment only Thanks for confirming my fear. Unfortunately, I can't trust my manager anymore. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Timothy Durniak Date: 30 Jul 2003 01:27:35 GMT Whoa! Its not fair to your manager to tar him/her with the same brush - have a new (frank) discussion on the topic - citing this forum. I have had management chains that used "quotas" only as a spot check of how well they managed, and if the bell curve View this comment only wasn't there they did some checking - but honestly they did not stick to any quota (it as seen as a stupid thing to do). But I have also had managment chains who 'gave up' and accepted the edicts to fit some quota (figuring it was easier not to fight). POST A REPLY RATE THIS COMMENT Subject: Job Performance and lying Reply by: Wolfgang Singer Date: 30 Jul 2003 11:22:39 GMT I have been lied to several times by a few managers (which was always very disappointing). Since we claim to be (and are) one View this comment only of the most ethical companies, I would recommend to apply to this kind of managers the 'three strikes and you are out' concept. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (9 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance and lying Reply by: J. D. Powell Date: 30 Jul 2003 01:09:29 GMT I have a strong inclination towards this "3 strikes" approach. However, I believe it should apply to all of us, not just managers. None of us should be immune from behaving in accordance with our core values and, I believe, we need to have the guts to deal (use our disciplinary process and, if necessary, part company) with anyone who persistently behaves in a way that is contrary to our core values. POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance and lying Reply by: Douglas M. Free Date: 30 Jul 2003 10:37:20 GMT One thing I've found to be a strong positive in IBM's values is honesty and integrity. The policies and procedures to ensure fairness are extensive. So, I believe in "innocent until proven guilty".. and I trust that our investigative processes do seek View this comment only the truth. But, if an employee (manager or not) is found to be deliberately lying - why give them "3 strikes"? Once is enough if the intention was to deliberately mislead. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Ilya M. Girin Date: 29 Jul 2003 07:44:04 GMT Thank you, Adrian, for your honesty! The best way to measure performance is to get rid of all these numbers whatsoever: even if 1 or 2 gives you no raise at all your manager can easily give you View this comment only 3 just to show how he/she doesn't like you. I passed through these exercise in the former Soviet Union and was amazed how much a lot of thing are similar to that country! POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Keith E. Kistler-Glendon Date: 29 Jul 2003 08:09:45 GMT WOW!!! Your comment has corroborated something I've long suspected that there is an inequity in the performance rating system which basically amounts to outright FRAUD!! Last year, I was told by my PDM I had exceeded my Utilization target - attaining 116%. I had NO negative feedbac, unsolicited positive customer feedback, great accolades from members of my management team... and had consistently demonstrated leadership and value to the practice and the organization... I recieved a 2. Why? Because "It's been a tough year, and there's only so much money to go around" Ah-ha. View this comment only Well, it seems to me that when the market conditions result in "only so much money to go around" the effect should be that those rated a '1' will get a smaller bonus than they would had conditions been better. But what I'd suspected and what I'm hearing in your comments is that in FACT what happens is that people who are deserving of the highest rating are "downgraded"... and on what basis I wonder? Does the entire performance evaluation process then basically become a popularity contest? http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (10 of 29)7/30/2003 3:38:00 PM Values Jam STARK evidence of how far from Basic Belief #1 we've strayed as an organization! POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Barry L. Eberly Date: 29 Jul 2003 08:10:52 GMT Yes, the numerical rating of employee to fit some ideal curve, is demoralizing. Much better is rewarding good behaviour. I like the new "Thanks!" program, where employees can give others an award for work beyond the call of duty. It helps to have a way to pat each other on the back. I recommend everyone give it a try. It helps focus on what is good, and takes your mind off the PBC scores. POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance - "THANKS AWARD" Reply by: Mark C. Waitkins Date: 29 Jul 2003 09:12:27 GMT Funny....I was told by a director who i helped that he tried to give me a "thanks" award, but that my division doesn't participate. BTW, I work for Corporate!!! POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance - Respect for Employees Reply by: Gaye B. Carter Date: 29 Jul 2003 08:22:34 GMT I am glad to see there are still some managers at IBM with some integrity and are willing to stand up for their employees. Sometimes I even wonder if it is really worth the time to have PBCs if managers are not willing to give employees what they deserve or they are forced to downgrade ratings based on distributions (and usually give employees lame excuses for lower ratings). IBM needs to return to the basic beliefs, esp. respect for the individual. I understand that economic times are hard but management needs to find a way to reward their employees and improve morale of the teams. Saying "thank you" does not cost a View this comment only penny. With unrealistic schedules and understaffed teams, we are still expected to complete on time... no matter what it takes... which usually means excessive overtime and be "glad we have a job" IBM has alot of smart folks working for them who would like to have time to be innovative..... but that has not been the case in our area. You don't have the time to take on more work or even to try something new. I am afraid that IBM will continue to lose good, talented people if they don't change the way they treat their employees. I understand that this may not be the case in some areas. POST A REPLY RATE THIS COMMENT Subject: Job Performance: A Victim's Perspective Reply by: Ken Dugdale Date: 29 Jul 2003 08:57:52 GMT I have been a victim of this type of action three times, that I have been told about by the manager anyway. Having been tossed around between 15 managers in a 6 year span, the only thing that kept me working at IBM was the knowledge that I would be with View this comment only another manager within the year and could attempt to prove myself all over again. So, I can certainly relate to your comment about this type of "quota" destroying any loyalty to the company. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (11 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance - adjust the curve after layoffs Reply by: Stephen Perelgut Date: 29 Jul 2003 09:14:43 GMT Adrian has hit on a very important issue and I'd like to add one more thought. As we go through various re-sizing and reallocating exercises, we (hopefully) are using merit as one of the key criteria. If all the poor performers leave an area, how can you (fairly) put the remaining staff onto any sort of curve. View this comment only In other words, how can IBM justify telling someone that they were a '2' performer last year, they did better this year, but they're going to be ranked as a '3' performer. And, please, don't offer the excuse of "raising the bar" because it's more about fitting curves than raising requirements. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Mark Eiland Date: 29 Jul 2003 09:49:27 GMT Doing PBC reviews is the most painful part of a manager's job because of the skew ("quota") system used by IBM. People should have expectations set and be measured against those expectations. If they meet and exceed those expectations they should be recognized for that accomplishment not penalized. Each manager should strive to develop high performing teams where all View this comment only employees meet and exceed all expectations. If this goal is reached the manager should not have this quota system hanging over their head. How does that motivate anyone? What does it do to the integrity of the manager that has to give a '3' to an employee that has done everything asked of them and then some? It's splitting hairs to meet a quota. It's a lose lose situation. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Martin Scott Nicklous Date: 29 Jul 2003 10:06:59 GMT Adrian, Thank you for bringing this up. I think you have addressed one of the biggest sources of grief within the entire IBM system. As implemented, people work to achieve written goals defined in the PBC commitments. So far, so good. However, the imposed rating distribution prevents people from actually being rated according to the degree of goal achievement reached. Only through luck will the rating distribution as measured by actual achieved goals match the required rating distribution passed down from above . This leads to a very high degree of frustration in managers and employees alike. This seems to violate the value or principle of integrity. At least I, as a first line manger, feel that my integrity is compromised if I have to give a person a lower rating than would be indicated by their degree of goal achievement alone, and at the same time, have to explain the lower rating only in terms of his or her goal achievement. The PBC system results from a particular view of behavior (set of values) that I really am not sure that I understand. On the one hand, we want to set goals and then strive to achieve them. It is logical, open, and honest for me to rate according to View this comment only the actual degree of goal achievement. Everybody should, with his/her manager, set tough goals and strive to achieve them. This is the value of striving to achieve, striving to do the best we can http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (12 of 29)7/30/2003 3:38:00 PM Values Jam for the company. And managers naturally need to have the goal of setting appropriate goals. I understand this part. But how does the idea of an imposed rating distribution fit in? It puzzles me. This seems to be an idea of competition among colleagues for rewards. Is that what is intended? Do we want to nurture a value of competition amongst ourselves? If so, it should be brought out in the open by all management levels and declared as such. It might be some relief if the target rating distribution would simply be made public knowledge. That way, managers could explain that the lower rated person reasonably accomplished his/ her goals, but the other person accomplished his goals better, so the other person gets the better rating. It would be clear that we are in competition with each other irrespective of the written PBC goals. If the goal of the imposed distribution is simply saving money, then it would be better to simply abolish the imposed distribution and reduce the available money for raises & variable pay instead. I am sure that people could understand hard times = less financial reward as long as they get a fair rating. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Todd S. Chase Date: 29 Jul 2003 10:51:15 GMT I guess I have to be in the unpopular minority here and stand in front of this freight train of notes. I would make a few points in the opposite direction to get people thinking: 1. Many people who've commented to this chain of notes agree with the concept of distributing money around unequally, but don't accept the PBC rating that, in effect, does the same thing. 2. The vast majority of people get '2's. The '1' and '3' ratings go to either a truly outstanding performance or someone either struggling with or starting a new job or level of responsibility. The person who said they were given a '2' with a record of no customer complaints and slightly over 100% attainment sounds like a '2' to me also! To get a '1' takes a hell of a lot more than that - '2' by it's nature captures very many of us - it's the vast middle zone. 3. The law of large numbers states that if you take a big enough sample, the sample will fit a distribution curve. The standard deviation (difference from top to bottom) may change, but there is still a curve, not fit upon them by IBM or their manager, but imposed by the nature of the universe. The question then becomes how many ways are you going to split up that population to 'grade' them , which becomes largely a matter of choice and complexity. For instance you could just have two levels (Pass/ Fail), you could have 5 (A/B/C/D/F), you could have 3 (Our current system), or whatever. And my experience shows that the numbers given to management by personnel, pretty well fit the population, plus or minus, which reflects people changing jobs, getting promoted and yes, lower performers. I've never asked for a '3' to be given to a person to fit the curve - and indeed - IBM View this comment only does NOT have a quota system on PBC ratings. Any manager who tells an employee that we do, is copping out because they're afraid to tell them that they just didn't achieve to the level required. 4. About 'raising the bar' or whatever other term you want to coin to describe the process after a layoff eliminates the 'low performers'. Firstly, sometimes people who are laid off are not the low performers, but just in an area of the business that went away due to waning customer demand, so in those cases you're not really changing the curve of the department. But even if you had god-like intuition and truly cut the bottom 5 people in a team, the team remaining could not all be rated 1's and 2's with no 3's. http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (13 of 29)7/30/2003 3:38:00 PM Values Jam If you disagree with that statement, think about what would happen over time after multiple layoffs... management would have to say, "We're eliminating the '3' from the scale since we laid all those people off." Kind of reminds me of the Spinal Tap movie when the band wanted amplifier volume knobs that went up to "11" instead of "10". The fact is you have to readjust the grading scale to match the new population, and that means, in effect, raising the bar of performance. Now the key is ... the demotivation comes when you equate the higher performing person with the ratings and the pay that the lower-performing and now laid-off person - that's where the thing falls apart. So if you continue to have a meritocracy, you can still take yesterday's '2' and rate them a '3', but you have to pay him more than yesterday's '3' was paid. This is something IBM hasn't really done, although the salary surveys are designed to make sure we pay competitively with the labor market, which in the end is the big equalizer on pay anyway. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Garhett M. Rittenhouse Date: 30 Jul 2003 05:48:35 GMT Todd, I agree your analysis. Most of us are two's, the statistical deviation applies to most large groups, and when you go through a layoff, you are probably raising the bar (which I like... as someone stated..I like working with more smart people). However, you made a comment where the guy who was utilized a little over 100% with no customer complaints...sounds like a two. Here's the difficulty: his goal was 80% or in that area. He was 32% overbooked in hours. And, being that only about 1% of folks can ever attain that much more utilization, what was he graded on? Are the guys who received "one's" that much over the target? And, if a manager cannot describe the differences, it is frustrating. There are other factors, maybe he was poor with teaming (I don't know the guy so I am not saying he was), or some other factor. But, it would be nice to have the objective arguments reviewed by your manager. If he deserved a "one", he deserved a "one"....but it would be nice to have some View this comment only objective viewpoint. Two, just a comment on a comment made a little further down. Julie mentioned cost of living raises for everyone in fairness. I disagree, it takes away from the pool of funds for high acheivers. Three, DJ Williams compared this issue to sports. And, I think it fits nicely. Raises are "nice to have". However, if we want to be the most competitive company out there, then reward the competitive folks. If I didn't do good, maybe I should lose pay (and not just the bonus or raise). Probably a little cut throat (and I don't think I provided a good solution Julie...sorry). But, it is a thought because we all lose pay when we don't come through on deals. Finally, we are free agents and it is very exciting and competitive.... POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (14 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Christopher Nelson Date: 30 Jul 2003 12:16:23 GMT Todd, your analysis is correct. However, it misses one part of the thread that I am seeing. I was taught (outside of IBM), that an end of year employee evaluation was a means to help guide the employee. It was considered a positive thing for establishing mutual objectives. Yes it was also a method for determining salary and rewards, but if done properly employees not achieving could be turned into achievers. Our current process seems to be disconnected from this. From the comments, no one seems to really understand it, nor trust it. It may make View this comment only economic sense, but the value of the process is lost. When people either don't understand a system or don't trust a system, then both sides lose. I have never heard any good comments about our PBS process. Its original intent - of getting a person to think about what their objectives should be - has been lost. Now it is an exercise in minimizing the damage it can do you. I think IBM might be surprised if they stopped with a lot of the bureaucratic BS that stifle us, and got people to start thinking. This forum is a good example of exactly that. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Sandi Mustard Date: 29 Jul 2003 11:08:52 GMT Is this true? There is no quota system on PBC ratings? It'd be nice to know for sure one way or the other, as there is some very contradictory information out there. As to your comment about "The law of large numbers states that View this comment only if you take a big enough sample, the sample will fit a distribution curve", indeed this is true across many people, perhaps across all of IGS, and perhaps even within a given IBM location, but I don't think that a group smaller than 15 or 20 people constitutes a "big enough sample" for this distribution curve to apply. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Barry F. Ruzek Date: 30 Jul 2003 02:33:53 GMT The mathematics claimed to support the current PBC system are extermely suspect. Distribution curves and the law of large numbers apply only to large random samples of a population. To think that the typical IBM department is large enough to support it own mini bell curve of performance is silly. The degree of randomness in these samples is small to begin with due to the selection process involved in hiring and would tend View this comment only to get smaller with every removal of employees at the lowperforming end of the curve. That said, the real demoralizing effect of this system is that at its core is the belief that human beings are nothing more than sample points in a game of statistics. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (15 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance - Solving the PBC problem Reply by: Julie St James Date: 30 Jul 2003 12:51:38 GMT I think this thread is really good.We've identified the problem... and this is a good forum to provide some solutions/ recommendations. What would a GOOD employee rating sytem/ bonus structure consist of? Should they be connected? Should they be independent? Do people who work hard and contribute deserve more then same as the person who skates by? What would a "fair" structure look like...and would it be different by geography or business unit? Let's get some ideas in here and let management know we can do more than identify problems -- that we can also provide solutions. Here's my two cents - I agree that management should have the discretion to give whatever rating they like. I think a four point rating works, but let's all agree on what each point means, cause right now, getting a three isn't "satisfactory", it's getting by, and it that's not what it should mean, then we need to reconsider the ratings. I think bonuses should be given out on merit - but that everyone deserves at least a cost of living raise each year. Additionally, a manager once told me that an employee's rating should never be a "surprise" - if an employee's performance is substandard the manager should be alerting the employee to what they need to do to pull their performance up. Management needs to commit to helping their employees succeed. Any other ideas? POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance - Solving the PBC problem Reply by: Jonathan S. Czernel Date: 31 Jul 2003 03:13:53 GMT You're right, time to solve the problem. I am not an HR expert, but I've read many books that have given me some insight into how performance appraisals can work. A book that I would refer you to is Bringing Out the Best in People (Daniels, 2000, p. 168176, http://www.amazon.com/exec/obidos/tg/ detail/-/0071351450/ qid=1059620741/sr=8-2/ref=sr_8_2/002-9423665-1676041? v=gla nce&s=books&n=507846). I know most don't have this book handy, so I'll summarize... I would also note that this isn't a simple problem to solve, and I would urge individuals to look at what other organizations have done to improve their employee review processes. So, it's difficult to summarize in a simple Values Jam. First, a forced ranking system, while rewarding a few, "forces" 70% of performers to be average or below average. As an employee who has always asked what one can do to achieve a rating of "1" (and never received a reasonable answer), I agree with what the author writes - that employees who never reach this goal eventually will give up trying. Daniels writes "If you give mediocre performance ratings to a high performer, you will make that person a mediocre performer. If you give high performance ratings to a mediocre performer, you will continue to have a mediocre performer." (p. 168). The solution? According to Daniels, to use what is referred to as a Performance Matrix. This matrix, which can be updated "on demand", ties an employees success to the success of their organization. Each person has his or her own goals/targets to obtain, independent of everyone else (unlike the PBC distribution system which pits employees against each other). The Performance Matrix is created by listing 6-10 key "behaviors", or "pinpoints", each with an assigned weight. These pinpoints are analagous to what we might include in our existing View this comment only PBCs, but trimmed down to 6-10 realistic targets; but unlike PBCs, which are sometimes vague notions of what should be http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (16 of 29)7/30/2003 3:38:00 PM Values Jam done, these pinpoints are very specific items that may be easily measured over the course of time. Things like meeting a certain deadline for an assigned relatively long term project, closing some number of support tickets, publishing some number of patents, etc. There are "degrees of success' tied to each of these objectives, and ahead of time a point system is established based on these degrees that is well understood by the employee and the manager. At the end of an evaluation period, there is no question what the final "score" would be. It is based on a claculation of degrees of the "pinpoints" established, taking into account the weights of each desired "behavior" (objective). Since there is no forced distribution, everyone has the opportunity to get a high score - those who don't meet their objectives get a lower score, obviously..but the key is if they get a low score it was more tied to their own doing, and not a forced distribution system. And yes, linking this score to compensation - a reward system for top performers (even if 90% of your people are "top performers) - is acceptable and desirable. The score would be directly coupled to what we might call "Variable Pay... This covers only some of the content of the book... I urge those who have an interest in this to read this text in more detail, as it covers additional thoughts re: compensation, bonuses, equity in performance appraisals that I cannot cover or summarize here. The focus is on using behavior science to shape the culture of an organization through positive reinforcement. Sorry if my post was a little lengthy, or if it was not entirely clear. Note: Reply formatted to fit web page. POST A REPLY RATE THIS COMMENT Subject: Job Performance - Solving the PBC problem Reply by: Michael J. Kilmartin Date: 30 Jul 2003 10:26:48 GMT Over the years, IBM has required college degrees for certain jobs, certifications from independent bodies (right now PMI project managment and CCNA - netowrking are big), why not an View this comment only independent external certification in People Management for managers? Pass a test that includes, ethics, business administration, organizational structure, and of course, performance evaluation. POST A REPLY RATE THIS COMMENT Subject: Job Performance - Unshackle the managers Reply by: Brian J. Snitzer Date: 30 Jul 2003 07:13:28 GMT As a first line manager with 2.5 years in the job, the PBC rating process has been one of the most difficult things I ve encountered. IBM brought me on board because of my skills, moved me into management because of my capabilities, and trusts me to make decisions impacting massive amounts of business and the day-to-day lives of precious IBM people. When it comes time to rate them, though, I get the sense that IBM doesn t think I ll be tough enough, and so we ensure that I m living within the skew. Of course it s not done at the individual department level, but within the organization there s a very active trade (1 s for 3 s anyone?) and lots of negotiation for ratings. What I would prefer is if IBM trusted me to fairly evaluate the employees that it has trusted me to manage. If I m not doing a View this comment only good job, or if I m handing out 2s to people that really ought to be 3s, then, as a manager, *I* should receive a low rating. If we re using the skew to manage to finances, we should simply http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (17 of 29)7/30/2003 3:38:00 PM Values Jam adjust the overall variable payouts once we understand what the total breakdown is. If managers are going too easy on their employees, and not getting enough out of them, that should be handled by pushing for better PBC commitments from managers and holding them responsible for meeting them. Overall, I think we should spend more time managing to the PBC objectives that we want to see, and evaluating to how we actually achieved them. Forcing a skew on the evaluations takes away the freedom of a manager, and communicates a lack of trust in the decisions of that manager. POST A REPLY RATE THIS COMMENT Subject: Job Performance - Solving the PBC problem Reply by: Peter J. Brofman Date: 30 Jul 2003 07:11:31 GMT Julie has it right - let's focus on solutions. Let's be clear whether View this comment only itis the system or how it is executed that is the concern...and then how to fix it... POST A REPLY RATE THIS COMMENT Subject: Job Performance - Solving the PBC problem Reply by: Afsal C. Majeed Date: 30 Jul 2003 07:42:06 GMT I don't know why we abandoned the 360 degree evaluation scheme. May be it's implementation was flawed. The existing evaluation mechanism can not recognize good team View this comment only players and good people managers. It is time that we take relook at how managers evaluate how an individual has met his PBC. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Theodore Y. Tso Date: 30 Jul 2003 01:41:26 GMT This is a really, really hard problem. It's especially bad when groups that are relatively small (say 10-12 people) are asked to follow a bell curve distribution. It's especially hard when a group has been specially picked to have only the most top-notch stars. In the ideal world we would have ratings that compared each person against every other person in the company. Unfortunately, that simply isn't possible. "Grade inflation" is bound to happen, and so the forced normalization is the only way to protect against it. One solution is to simply accept is to accept the fact that normalization is a fact of life, and celebrate it. Make it clear that what is being captured is some rough approximation of a percentile scale of performance across a particular group, and don't try to hide the fact. Then, most importantly RANK AND SCORE EACH GROUP, on and up the hierarchy. Presumably, it is better to be roughly 60 percentile in a group that is ranked as being 90th percentile, as compared to being 80th percentile in a group which is ranked in the 20th percentile. View this comment only If raises were distributed this way as well, then fairness would extend to both the short-term compensation (i.e., veriable pay) as well as long-term consideration when other divisions of IBM reviews a particular employee's work record. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (18 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Timothy Durniak Date: 30 Jul 2003 05:18:54 GMT Excuse me ? "Grade inflation" is bound to happen, and so the forced normalization is the ONLY (emphasis mine) way to protect against it. Wrong. Forced Normalization, as you put it, is a lazy approach. It takes effort to understand an organization's worth and value and it takes even more effort to maintain it. Statistical analysis (in this context) has to be used as a tool for highlighting where you need to examine whats going on and not a replacement for that in-depth analysis. POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance Reply by: Afsal C. Majeed Date: 30 Jul 2003 04:28:56 GMT I fully agree with your points. There is another scenario which you have missed. You give a person a rating of 1 and then tell him/her that since he is already getting paid well, no raise for him. Do you View this comment only think that's possible. My experience tells me that that also is possible. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: H. Lakhaney Date: 30 Jul 2003 05:37:45 GMT Thanks for the honest view. I suspected that the PBCs this year were slanted (biassed) against giving out too many 2s. As a 2 grader who has recently been given a 3 has a half year View this comment only assessment I feel deflated and demotivated. Give my thanks to the "bean counter" who doesn't care about my moral or the quality of my work or the long hours I give to IBM as standard! POST A REPLY RATE THIS COMMENT Subject: Job Performance - solution? Reply by: Horst Gallo Date: 30 Jul 2003 08:29:52 GMT Theodore, these are interesting thoughts especially as it would differentiate not only people but groups. This is an interesting aspect especially in regards to teamwork. This also can link to performance of a unit in IBM. However the danger could be that when you are in a unit which is not performing you can work as View this comment only hard as you can may not get the correct rating. I agree with Julie further above. I think we should all agree on the meaning of the ratings and maybe the old 5 ratings were better than the 4 what we have now. Is there another way of linking getting our own performance in connection with IBM's overall performance? POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (19 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: N. Scarrott Date: 30 Jul 2003 08:42:13 GMT The notion that a high performer in a group of fellow high performers could get a PBC 3 rating, purely because no 2's or 1's remain in the 'kitty' and an individual in a group of lower achievers could get a PBC 1 because they achieve slightly more than the others in the team is wrong. Are the number of 1's, 2's, 3's and 4's given to a manager, purely View this comment only because it allows easier accounting when the final results are out and bonus's are calculated? If this is so, i'd rather receive less 'slice of the cake' and have more people assessed accurately (no predetermined number of x's y's or z's) than the current system which is unfair. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Antonio Fernandez De Cuevas Date: 30 Jul 2003 10:06:30 GMT I'm partially agree, I do believe the existence of quotas at the lowest departmental level are not appropriate, anyway we should understand this as a rating, the company is trying we shell to our View this comment only employees a fair method when in the other hand is pushing to apply differenciation .... and for sure is posible but incopatible with what PBC process means. POST A REPLY RATE THIS COMMENT Subject: Job Performance - analogy to Sport Reply by: D. J. Williams Date: 30 Jul 2003 12:17:54 GMT I might be the exception here but I believe the current systems works.....& here is why. I would like to use sport as an analogy. In any sport that has leagues you can only have so many sport people / teams in each league. If you were in the top league last year & perform the same/exceed this year, should you stay there ? The answer is YES if you stay ahead of everyone else, but if you are out performed then the answer is NO, you slip down a league. We see this every year in the sports we watch. View this comment only Is it not the same basis for PBC's.....4 different leagues ? To drive for excellence you have to create some form of competition. You cannot have everyone at the same level....and as with Sport some are more competitive than others & therefore its harder to get to the top...eg Tiger Woods Hopefully this will make for lively debate POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (20 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance - analogy to Sport Reply by: Robert D. Moser Date: 31 Jul 2003 04:17:24 GMT I also disagree .... at least if you are going to continue to call them Personal Business Commitments. Under PBCs I am asked to attain certain goals and my rating is merely supposed to rate my attainment of these goals. It has nothing to do with 1st team, 2nd team, etc. across a broad set of employees. I happen to be someone that believes that the PBC system (with View this comment only some modification of getting back to PERSONAL, measurable commitments) can work as it is. However, it is going to take management to step up and validate that the commitments of their direct reports do indeed upwardly attain his/her department commitments. If this is done, then those that contribute to the broader goals are rewarded and those that don't aren't. POST A REPLY RATE THIS COMMENT Subject: Job Performance - analogy to Sport Reply by: Paul C. Lasewicz Date: 30 Jul 2003 01:51:09 GMT From a big picture perspective, I agree. Think back to the issues IBM faced in the early 1990s - entitlement, productivity, insular thinking, etc.. The challenge was how to create an HR infrastructure that would a) eliminate these issues, and b) prevent them from arising again. PBCs are a part of that solution - the appropriate issuance of 3s serves to undermine a sense of entitlement and stimulate productivity. Admittedly sometimes the 3s can be unfairly assigned. But even then it works towards towards eliminating insularity by creating View this comment only enough institutional dissatisfaction to prompt employees to leave the company, thereby ensuring a degree of turnover that will hopefully lead to a continued influx of fresh ideas and perspectives. These things tend to by cyclic, and perhaps someday when the business environment evolves the values that characterized IBM relationship with employees prior to the 1990s will return to vogue. POST A REPLY RATE THIS COMMENT Subject: Job Performance - analogy to Sport Reply by: J. D. Powell Date: 30 Jul 2003 01:28:59 GMT I disagree with your analogy. PBC ratings are given to individuals, not teams. For competition to occur (which I don't necessarily agree is always healthy, especially when individual people are concerned) results need to be shared. Why are people sharing their PBC ratings? Why, as adults, are we trying View this comment only to compete with each other in this way? I believe it's more preferable for me to compete against myself. If I try to compete against someone else (as a benchmark) I will only end up (at best) being as good as them. If I complete against myself I will continue getting better & better. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (21 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance - analogy to Sport Reply by: D. J. Williams Date: 30 Jul 2003 02:22:26 GMT Agree that a PBC is personal, although it does include a team section. Please note the original statement did say "sports persons" in addition to teams. Maybe a better way to compare against sport is in being part of a "1st team". If you are out performed by others you slip to the "2nd team" etc.. Intresting comment re competing against yourself. Unfortunately though we are always measured against each other, in the same way IBM is measured against its competitors. View this comment only The Olympics are watched by billions, because we are obsessed with competition & being number one. I fully understand this is not everyone's view, but its fair to say it's the majority ? If as individuals we do not strive to be numer one, or at least part of a team that is number one, how can we expect IBM to be number 1 in the markert place ? POST A REPLY RATE THIS COMMENT Subject: Job Performance - analogy to Sport Reply by: Lori A. Blazavich Date: 30 Jul 2003 07:09:00 GMT I look at it a bit different. We are all on the same BIG team (IBM). The variable pay is the individual team performance (IGS Americas, IGS EMEA, Research, etc). The PBC rating should be the individuals performance and reflect this individuals pay. I do not feel that team performance or variable pay should be tied to the PBC or individual performance. Below is my analogy using Softball and why... It's open for debate. I think we need to find a way to separate the individual somehow from the team awards. Kind of like the individual player's salary vs team award for winning the Championship game. EXAMPLE.... The score is tied 4 to 4 and it's the bottom of the 7th inning. Your team is in the outfield with bases loaded and no outs. The third base person throws the ball to first base person. The first base person misses the ball and a run scores. Guess what? Your TEAM just lost. It didn't lose just because of the missed throw to first base. It may have lost because in the previous inning your pitcher walked 5 girls or 3 errors were made in other innings by different players on your team? The bottom line is your TEAM lost! Not due to one indivudual but due to the entire team. View this comment only Variable pay for the team should be equal to all players no matter what individual performance is. We are all in this together and on the same team. The performance (PBC) ratings should be the individual performance ratings given by the first line manager (not 2nd, 3rd, or higher). PBC ratings should be given fairly based on individual performance and not a bell curve or politics. There should be no limit to the amount of 1's, 2's, 3's or 4's handed out. The PBC or individual performance is what would be used for individual raises and/or promotions. If done fairly will motivate the individual to strive for a winning team and receive a nice variable pay team award. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (22 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Bill Brugge Date: 30 Jul 2003 03:13:54 GMT Adrian you make some valid points however I will point out that while I was a manager I spoke with my HROM about this and they realize that our current rating system is not entirely without flaws. However, I truly believe it is our role as managers to influence change within IBM when required and to fight for the people that report to us. An example of this was last year when I was told to rate my team based on HR imposed skew which I did not feel represented the performance or the contributions of my team. Even though the organization I worked in did not meet their financial targets(revenue and profit) or signings targets in 2002 this was not a result of the performance of my team. Without View this comment only getting into the details I was able to rate my team according to their performance and contributions and not based on an imposed "Skew" which I did not follow(even closely). I still believe that IBM Management Policies and Practises are best of breed and this holds true when looking out externally. I have supported many IBM Customers over the years and it never ceases to amaze me the number of IBM Customers that have adopted IBM Management Practices. Being a manager or leader comes with great responsibility and although frustrating a times this role allows us to be part of a team with the ability to influence change. Sometimes you win, sometimes you lose but it can be rewarding as well when your efforts reflect change for the better. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Michael Keller Date: 30 Jul 2003 03:29:42 GMT I've read all of the comments that are attached to the original point from Adrian Flores and there is a lot of emotion and misunderstanding out there. Firstly I have to thank Adrian for his honesty. Secondly I need to inform you that I am a first line manager and do not have a 'certain number of 1, 2, & 3's to distribute. If I want to give somebody a 3, based on facts and feedback, then I absolutely will and I will stick by it... even if they don't like it!!! Thirdly Todd S. Chase describes the process/ idea/ rational View this comment only exceptionally well. The comment which follows on from that, by Chris Nelson, hit's the nail on the head. The PBC process is there to differentiate top performers from low performers (by the way we no longer get Variable Pay ... it's included in our sales plan ...), but should be used to help the people that are not performing. That's where the focus is missing!!! Fourthly we as IBM need to make sure that we clear up all of these misconceptions. PS:-Thank you Julie St James for moving the discussion forward to 'solutions'. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (23 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Vaughn R. Evans Date: 30 Jul 2003 03:53:26 GMT I have always heard from my manager friends that they juggle the rewards of pay, raises, awards, etc. to balance their department. The good managers are advocates for their employees always looking for ways to promote them either View this comment only personally or professionally. I find it hard to believe when someone says there is not a quota system since I have been told by so many managers that they have one. Maybe this was last year's news .. still I think IBM manages labor costs via the PBC ratings. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Michael L. Mankowski Date: 30 Jul 2003 03:51:24 GMT After reading all these comments and becoming a victim of PBC "deflation" a few times with IBM, I have to support the 1/2/3 "quota" theory. Question: how much impact can individual managers have on View this comment only un-skewing the curve? For instance if a manager "goes to bat" for you up the chain will they be able to influence a higher rating vs. a manager who sits on their hands?? POST A REPLY RATE THIS COMMENT Subject: Job Performance and evaluation Reply by: Margaret A. McGuinness Date: 30 Jul 2003 04:08:21 GMT I agree with this comment both as a former manager and as an employee who has recently been impacted by the increasingly pervasive practice of "rating" performance based on factors which have little or nothing to do with an individual's actual performance. If this is the way we now do things in IBM, let's just stop pretending that it isn't. The reality is that the days of individual employee "merit pay", "pay for performance" and, most significantly, meaningful performance review processes are gone. The old rules no longer apply so let's just admit that and fully adapt our HR practices to the new ones and be clear about what they are. As it stands today, the role of the manager as a leader and/or coach of people has been greatly diminished and the hands of the manager are often tied when it comes to evaluating their people. Performance no longer speaks for itself and employees no View this comment only longer know what to expect regarding their performance ratings. The result is that more and more IBMers are becoming demoralized, loyalty is becoming a thing of the past and mistrust is getting in the way of true productivity and teamwork. We have gone from one extreme to another in IBM and neither approach works. We need to revisit how we rate our people and communicate honestly to them about how it is being done. If the process matched the reality of the environment and it was openly communicated, it would eliminate a lot of angst and save time and money. Perhaps the answer is to just announce that we will do away with the whole concept of individual performance evaluations and we'll base everything on the variable pay formula, period. At least people would know what to expect and would not be demoralized. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (24 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Scott A. Finley Date: 30 Jul 2003 04:12:28 GMT I could not agree more with Adrian on this. The office I am in went through the same thing and this past PBC I experienced the downgrading of my rating from a 2 to a 3 - because there could View this comment only only be so many 2's. It shows that they do not value your contribution, but only value their own formulas and reports. POST A REPLY RATE THIS COMMENT Subject: Job Performance and Trust Reply by: Julie St James Date: 30 Jul 2003 05:22:16 GMT It seems pretty clear that how the PBC process is designed to work -- and what employees think really happens -- are very different scenarios. And there's also confusion around the point of the PBC system - is it to compensate? To Motivate? Or to separate? No wonder there's a sense of mistrust. Clearly, the point of the current system is not to disenfranchise or demotivate any employees, but that seems to be the unfortunate results for some employees right now. I've always beleived that managers were key in this process and this thread reaffirms that. There seem to be managers that can View this comment only navigate successfully in the current structure, and managers that feel frustrated by it. Are there ways in which managers could handle the proccess better -- either by managing expectation betters upwards? And managing expectations better downward to their employees? What do you think? Lastly, I wonder what a completely egalitarian system would look like. And is that what we want? Does that promote innovation and creativiy? Has anyone worked for a company that had a better (however you define better is up to you -- more fair, more motivating, more employee based) system? POST A REPLY RATE THIS COMMENT Subject: Job Performance and Trust Reply by: Jonathan S. Czernel Date: 31 Jul 2003 03:19:01 GMT I think that anyone who thinks they can work in the current structure is fooling themselves. No matter what, you need to negatively rate (or give an "average" rating) to most of your people, even though in reality they might be performing their jobs exceptionally well. We want an organization of winners, View this comment only tied to each of our personal objectives that are in turn linked to the greater good of our department, which in turn are linked to the greater good of the organization. The focus must be on individual accomplishment of their goals, predetermined between an employee and their manager. POST A REPLY RATE THIS COMMENT Subject: Job Performance and Trust Reply by: Holland K. Hazen Date: 30 Jul 2003 07:35:42 GMT I do know from Team Concepts that a PBC Process is destructive to team building. I saw that first hand when our Department tried the team concept in the 90's. The companies at the time that were most successfull with Team Concepts did not practice PBC type ratings. POST A REPLY View this comment only RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (25 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Paul S. Faris Date: 30 Jul 2003 05:49:03 GMT Amen! This exact scenario happened to me last year (as I'm sure it did many people)and was (is) extremely frustrating. Tell the people, economic times are tough, so sorry no raises, but don't justify giving a lower performance evaluation that's not actually based on true performance. POST A REPLY View this comment only RATE THIS COMMENT Subject: Job Performance - PBC Ratings and Salary Increses Reply by: Farrell W. Reeves Date: 30 Jul 2003 07:32:58 GMT I am not currently a people manager but I was for almost a dozen years in my 25 years with IBM. All of those were as a first line manager in the field service organization. I want to make a few comments on this discussion of PBCs, ratings and salary increases. When we moved from the old PPC&E system to the new PBC method, I felt it was a great step forward. We need to be involved in setting goals that contribute to the objectives of our department and the organizations we support. I was never told there was a "quota" of any particular achievement rating within my department (20-30 people) but that there was a statistical model within the larger organization (100+ people). I didn't really care about that as long as I was allowed to rate my people based on goals that were set for each person and their results which in turn should support my department's goals and my own PBCs . I always reviewed my department's ratings with my second line manager and when I was challenged on why I may have had more people in the "Achieved/Exceeded Commitments" category, I was prepared to defend this with sufficient facts to back my decisions. And I was rarely overturned. If you and your manager agreed upon your objectives/goals when you submitted your PBCs in the beginning of the annual process, and you can truly document your results, it should not be difficult to know what you should be rated. Are there flaws in the system? Yes, but I still prefer it over the previous PPC&E method which View this comment only was pretty much a one way approach as seen by the manager. Now, if your manager is telling you that you are rated as "Achieved Some/Most" because times are tough and there is not enough salary/VPP dollars to go around then we have a problem. That should never be a factor in your PBC rating. As a matter of fact, I don't think the corporation determines the actual percentage of VPP distribution until all PBC ratings are completed and submitted and the business unit's performance was assessed based on it's goals. As far as salary increases go, PBC rating is only one of several factors in determining the amount of an increase. Skill level and retention are also weighted as well as your current pay relative to your band and others with similar jobs in the industry. The factors other than the PBC rating can have a significant influence. It is absolutely essential that a manager be unbiased and objective in this analysis and be forthright in their discussions with employees. We still have managers that won't address poor performance and this only makes it worse for those who are doing well. The damage to employee moral that poor IBM managers create is significant. We need managers that are LEADERS not just managers. Leaders coach, encourage, motivate, counsel and support their people. Which in turn demonstrates the value of an employee as a person and not just a means to a business objective. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (26 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance - PBC Ratings and Salary Increses Reply by: Douglas M. Free Date: 30 Jul 2003 10:00:48 GMT I think Ferrell captures most of my views - but I think there is a point or two of emphasis I'd like to make. When management teams have scopes of 100+ people, relative contribution is a valid factor to consider. It is possible that someone meeting all their commitments does not perform at the same level as their peers who are rated a '2'. I believe it is appropriate to differentiate performance of those that earned the '2' and those that earned the '3'. I do agree with comments that folks consider the '3' assessment as not satisfactory - and I believe part of that is related to the fact that we don't emphasize the comparative part of the PBC assessment process. To make that point, I stole some text from the PBC Web Site: -----Achieved some/most commitments The final results achieved met some or most of the stated commitment objectives. In some cases, the stated commitments were achieved; however, taking all relevant input into account (including a comparison of the employee's final results and behaviors against the results and behaviors of others with the same or similar job responsibilities and band), additional results View this comment only were required---- I think it would be proper to change the main text assigned to the 3 rating to state "Achieved most/all commitments and/or relative contribution was lower than peers" Seems more like "straight talk" to me than finding the relativity component in the details. Furthermore, achievement of "some" doesn't sound like a "3" to me... sounds unsat. One last comment - in the management team we need to continually remind our peers that someone with a "3" rating (or possibly consecutive ratings of this level) are not necessarily poor employees. We've gotten lean in many areas over the years and some strong contributors may earn a "3" when compared to a larger population. I've personally seen cases where a person was correctly assessed a "3" because of significant skill investment during a given year - who, because of the investment became one of the most valued folks the following year. In fact, the base pay decision for this person was very positive... the "3" from the prior year was almost irrelevant. It is impossible to manage in our complex environment by looking at just numbers. POST A REPLY RATE THIS COMMENT Subject: Job Performance Reply by: Timothy W. Budell Date: 30 Jul 2003 09:11:25 GMT I *DID* resign my managmeent position because my hand was forced to evaluate an employee based on a predetermined distribution. It was 1995 and the one time in my career I was not View this comment only proud to be an IBMer. In retrospect, I regret that I did not resign before appraising my dept. to meet the required distribution. I still see some of those people in the lunch room and the halls. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (27 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance - Managers need to be leaders Reply by: Douglas Brown Date: 30 Jul 2003 11:24:15 GMT Rating people is HARD TO DO. If it was easy, then anybody could be a manager. We as managers have the responsibility to drive our organizations to be the best that they can be. To create a HIGH PERFORMANCE TEAM. One tool for this is the rating system - the PBCs. It is hard. It can require very difficult discussions. It can cause your palms to sweat. But if you aren't committed to building the best team for IBM, then you shouldn't be a manager. You are IBM to your team. And you are there to get the best out View this comment only of your team for IBM. You are not there to be friends to your team. With that committment to IBM will come respect and committment from your teams. How do you think the people on your teams feel who are legitimate "1's" when you give someone else a "1" that doesn't deserve it? They know what is happening. You can either inspire your team to achieve more, or you can inspire each person individually to be as mediocre as everyone else. I choose the be a leader, and to use the PBC system to help me create a high performance team. POST A REPLY RATE THIS COMMENT Subject: Job Performance (walking the talk on people values) Reply by: Judith A. Quillard Date: 30 Jul 2003 11:58:51 GMT Performance evaluation (the PBC process) is not the only area where I ve seen a gap between what HR says and what actually happens. (And let me state that I don t think the problem is with HR.) My summary of the challenge to be addressed: How can IBM implement its financial controls and practices (e.g., setting the size of the variable pay pool, managing headcount) without undermining the people values that the company strives to espouse? Here s a recent example of IBM s financial silos preventing career advancement: An administrative assistant who supports several BCS executives in my office location (let s call her Jane) applied via the VM Job Posting system for a Band 6 opening in BCS. The hiring manager decided that Jane was the best qualified candidate but was told by BCS HR that Jane could not be offered the job. Why? Because View this comment only Jane s home department is in Division 12 and BCS Finance put in place a retroactive ban on transfers from other divisions. The hiring manager was told that BCS was treating requests for transfer from other IBM divisions as if they were external hires. What message do you think this delivered to Jane and other administrative assistants who watch closely to see if IBM does live up to our commitment to provide virtually unlimited opportunities for career growth within IBM? (I pulled this quote today from the announcement on w3 about the new job posting system.) None of the other eight applicants for the job were from BCS. And Jane had been part of BIS until a reorganization in late 2001 put all the administrative assistants into Division 12. Jane s case is certainly not unique and I m not trying to start a discussion thread of similar stories. I hope this example can be used to further the discussion of the importance and the challenges of walking the talk on people values. POST A REPLY RATE THIS COMMENT http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (28 of 29)7/30/2003 3:38:00 PM Values Jam Subject: Job Performance Reply by: Michael S. Reiter Date: 31 Jul 2003 12:05:46 GMT There was a strong related thread in managers jam on the quality of the review system. My major complaint is the number of ratings and how they are used. We are jamming too many people into a 2 rating, which devalues a true 2 performer and creates the perception that a 3 is the first step out the door. I was taught that View this comment only a typical spread was 5-10% (1), 25% (2), 60% (3), 5-10% (4). A 3 rating says you are meeting expectations, but that means nothing. If employees perceive a forced distribution, you've devalued your performance system. POST A REPLY RATE THIS COMMENT BACK TO FORUM ValuesJam is an open forum for IBMers to discuss the values of the corporation. Consistent with IBM Business Conduct Guidelines, solicitation, profanity, ad hominem attacks or harassment of any sort will be subject to editing or removal from the forum. All Values Jam content is proprietary to IBM and for internal use only. Copyright ©2003 IBM. All rights reserved. http://w3.ibm.com/jam/values/forumThread.do?o=d&c...3.423bbbc.VALUESJAM%40w3prime1.sby.ibm.com%3E&b=1 (29 of 29)7/30/2003 3:38:00 PM