Example cases:

Learn valuable lessons from these organisations:

Jewellers Mutual Insurance Co., US
 
Performance Management – changes bring clarity

An independent consultant reviewed performance management systems at JMI Co. via focus groups, gathering opinions from management, supervisors, and employees. It was desired to design a performance management system which would deliver improvements in talent development/productivity. Changes involved:
- Processes: The improved systems were easier to understand, giving clarity to all regarding goals, expectations, and accountability for achievement; whilst remaining flexible to adjust with any changing organisational priorities.
- Form: Competencies were more accurately defined and narrative based systems were used in place of ratings. Feedback was given regarding specific expectations/behaviour in connection with job requirements and company goals. Quarterly discussions were set in place to ensure that structured feedback and goal setting took place.
- Compensation Linkages; individual as well as company performance was rewarded and plans were reviewed annually. An 18 monthly staff survey was conducted giving employees an ongoing voice for change.[21]

Anonymous Electricity Company, UK
 
Performance Management Systems improve focus on company goals

An anonymous UK electricity company used performance management systems (PMS) and balanced scorecard reporting at the time of a merger involving several companies. The aims of using PMS  were to:
- Reinvent and to integrate the company;
- Create focus;
- Achieve common enterprise goals; and
- Meet new regulated y customer service standards.
The pros and cons of the PMS/balanced scorecard were reported as being:
1. Advantages:
- Focused employees on key company goals and aligned these with jobs/continuous reviews.
- Drove business improvement activities.
- Improved customer satisfaction.
- Increased productivity.
- Aligned operational performance with strategic objectives.
- Increased employee satisfaction.
- Improved Energy's reputation.
2. Disadvantages:
- Consumed excessive management time.
- Demanded considerable financial investment.
- Added bureaucracy with too many measures.
- Confused users with overcomplicated measures.
- Discouraged entrepreneurial intuition. [22]

Synygy Inc, US
 
Performance Appraisals – frequency and rapid growth

Open communications which encouraged feedback from all levels was an important facet of Synygy's culture. Employees were evaluated each quarter which enabled timely changes to behaviour to be made and helped to maintain an atmosphere of teamwork and of growth. To give the evaluation process a more tangible meaning the scores received were related directly to employee compensation. Evaluation scores could determine up to 40% of an employees bonus, which in turn could represent from 5 to 100% of base pay. Anonymous multi-level feedback proved to be valuable for reinforcing assessments. The process, whilst requiring a large commitment from supervisors and staff alike, paid off in the long run through low termination numbers and rapid organisational growth.[23]

Serono, US
 
Performance appraisals lacked consistency

Annual performance appraisals at Serono were highly time/energy consuming and tended to lack consistency. Hence Serono introduced three milestones as part of its performance appraisal improvements as follows:
- Goal setting at the beginning of the year,
- Evaluations in the middle of the year,
- Appraisals at the end of the year.
Checks and balances by senior management, HR and employees were included at each stage to ensure consistency. An online system was used to distribute information to managers concerning staff under their control. Overall data was also available which correlated the productivity and performance of employees by department. Serono's performance appraisal process required managers to provide continuous feedback to employees. Training was also provided and checks and balances were inserted into the system to create consistency across the organisation. [24]

Rea & Associates Inc
 
Performance appraisals focus on the future

This snippet and associated article outline performance appraisals at Rea & Associates Inc., US
Rea's performance appraisal system was based on six key concepts:
1.) Having clear definitions of the objectives for measuring employee behaviour/achievement. Current job descriptions, performance ratings, and specific competencies relating to what it took to be a success within Rea were drafted.
2.) Providing basic training, good orientation and mentoring which helped newcomers to adapt.
3.) Encouraging written self-evaluation enabled employees to become more critical thinkers and better participants in performance-oriented dialogue.
4.) Having multiple reviews which included other managers, clients and peers added depth to the appraisals.
5.) Giving specific comments and regular feedback on at least a weekly basis helped to create an environment of trust and of high expectations.
6.) Focusing on future performance was 75% of the process as this was where it was believed that the greatest impact for the organisation lay.[25]

Yum Brand Inc, International
 
Performance appraisal using 360-Degree assessment

360-degree assessment was used by Yum Brands to promote customer-oriented values among its employees including creativity and enthusiasm. The 360-Degree assessment was made particularly effective in Yum's environment through the use of Web based facilities which were able to pull reports on an individual's job performance from a worker's peers, managers, subordinates and customers. The performance criteria used related mainly to teamwork, communication, and leadership. The multi-rater survey evaluations were not tied to compensation. Pay was handled using a separate process spaced months apart from the 360-degree assessments. The programme fitted well with the organisation's international expansion by helping to establish a common set of values that were readily assimilated by employees as far apart as Asia and America.[26]

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