PMF – Wayfare Wiki

How it Works

Introduction

Managing performance is...

all about coaching, guiding, appraising, motivating and rewarding people, it’s a continuous and flexible process of creating a work environment in which people are enabled and supported to achieve their full potential, to the benefit of themselves and of the company.

It is based on...

elements like agreement, measurement, feedback, positive reinforcement, and dialogue, but it is the overall system that matters, not the individual elements.

Agreement...

You can’t assess performance if you don’t have a previous agreement which clarifies the expectations and it’s also useless to have an agreement if you don’t discuss the results throughout the year and you don’t support the people whom you manage to achieve the expected results.

Inputs and outputs...

In Wayfare, the performance is a matter not only of what people achieve but also of how they achieve it. Our system is focused on what has to be done, how it should be done and on developing people. It is concerned with inputs (knowledge, skills, and behaviors required to produce the expected results) and with measuring outputs (delivered performance compared with expectations).

THE PERFORMANCE MANAGEMENT CYCLE

The phases of the performance management framework (PMF) are:

Performance planning and review
Performance and development agreement
Managing performance throughout the year

The “performance and development agreement”

is the outcome of the “performance and development planning” and provides the basis for “managing performance throughout the year”.

PERFORMANCE PLANNING & REVIEW

Performance planning

is the starting point of the performance management cycle. It is a joint exploration of what someone is expected to do and to know, of how he/she is expected to behave in order to meet the requirements and to develop their skills, but also deals with how the manager will provide the needed support and guidance to achieve the agreed objectives.

The outcome of the performance planning is the Individual development plan (IDP) which provides a structured approach on how to match the individual goals with company goals. It practically organizes the ideas discussed with the manager into a cohesive plan that starts with short-term goals and moves to mid-range and long-term objectives. It’s not a “one-time” activity, it involves preparation, dialogue, continuous evaluation, continuous feedback, and adjustments.

It is focused on people development for the current role, to improve their ability to perform according to the expected level, but also to enable people to take on wider responsibilities, to undertake a broader role.

Objectives are an important part of the performance management process. They describe what has to be accomplished and they are:

– work-related – referring to the results that need to be achieved on work-related tasks, on projects;

– personal – developmental or learning objectives that are concerned with what individuals should do to enhance their knowledge, skills, and potential and to improve their performance in specified areas.

The objectives defined should use the SMART approach:

S = Specific – clear, unambiguous, straightforward and understandable.

M = Measurable – quantity, quality, time, money, comparison.

A = Achievable – challenging but within the reach of a competent and committed person, taking into consideration the available resources.

R = Relevant – relevant to the objectives of the company so that the goal of the individual is aligned to company goals.

T = Time framed – to be completed within an agreed timescale.

Career roadmap

Performance review

Although performance management must be a continuous process, we still need a review at the end of the year. There should be no surprises in a formal review if performance issues have been dealt with as they should have been when they arise during the year. It’s an assertive discussion on what was done during the year, on where those involved are now, and where they have come from.

Such reviews are a valuable part of the performance management process because they sum up the conclusions reached earlier and provide a firm foundation for a new performance agreement, but they are not the main objective of performance management. Their true role is to look forward to what needs to be done by people to achieve the purpose of the role, to meet new challenges, to make even better use of their knowledge, skills, and abilities.

When reviewing performance, the managers need to find a good balance between:

– the achievements in relation to the agreed objectives;

– the level of behavioral and technical competencies in relation to expectations (gaps identification);

– the behavior people displayed, how they carry out their work;

– the degree to which the behavior upholds the core values of the company;

– the day-to-day effectiveness.

In Wayfare, the performance and development reviews take place as follows:

twice a year in the first 2 years of experience for the team members who are at a junior level (Mid-year and End of year review);
once a year for the team members who are at a mid-level and higher (End of the year review).

Between 1^st of October and 15^th of November, each manager will plan and facilitate the formal performance review meetings. The outcome will be filled in Wayman.

Between 15^th of November and 1^st of December, the outcome will be analyzed and necessary actions will be decided.

During the months of December and January, yearly discussions will take place. Any change in the income will become effective starting 1^st of January.

There are

12 golden rules when conducting performance review meetings:

1. Be prepared

Be prepared – managers should prepare by referring to the list of agreed objectives and their notes on performance throughout the year. They should form views about the reasons for success or failure and decide where to give praise, which performance problems should be mentioned and what steps might be undertaken to overcome them.

Individuals should also prepare in order to identify achievements and problems, and to be ready to assess their own performance at the meeting. They should also note any points they wish to raise about their work and prospects.

2. Have a clear structure

Have a clear structure – the meeting should be planned to cover all the points identified during preparation. Sufficient time should be allowed for a full discussion.

3. Create the right atmosphere

Create the right atmosphere – a successful meeting depends on creating an informal environment in which a full, frank but friendly exchange of views can take place. It is best to start with a general discussion before getting into any detail.

4. Provide feedback

Provide feedback – individuals need to know how they are getting on. Feedback should be based on factual evidence. It refers to results, events, critical incidents and significant behaviors that have affected performance in specific ways. The feedback should be presented in a manner that enables individuals to recognize and accept it – it should be a description of what has happened, not a judgment.

5. Use time productively

Use time productively – the reviewer should test understanding, obtain information, and seek proposals and support. Time should be allowed for the individual to express his or her views and to respond to any comments made by the manager. The meeting should take the form of a dialogue between two interested and involved parties who are seeking a positive conclusion.

6. Use praise

Use praise – if possible, managers should begin with praise for some specific achievement, but this should be sincere and deserved. Praise helps people to relax – everyone needs encouragement and appreciation.

7. Let individuals do most of the talking

Let individuals do most of the talking – this enables them to get things off their chest and helps them to feel that they are getting a fair hearing. Use open-ended questions (i.e. questions that invite the individual to think about what to reply rather than indicating the expected answer). This is to encourage people to expand.

8. Invite self-assessment

Invite self-assessment – this is to see how things look from the individual’s point of view and to provide a basis for discussion.

9. Discuss performance, not personality

Discuss performance, not personality – discussions on performance should be based on factual evidence, not opinion. Always refer to actual events or behavior and to results compared with agreed performance measures. Individuals should be given plenty of scopes to explain why something did or did not happen.

10. Encourage analysis of performance

Encourage analysis of performance – don’t just hand out praise or blame. Analyze jointly and objectively why things went well or badly and what can be done to maintain a high standard or to avoid problems in the future.

11. Don’t deliver unexpected criticisms

Don’t deliver unexpected criticisms – there should be no surprises. The discussion should only be concerned with events or behaviors that have been noted at the time they took place. Feedback on performance should be immediate; it should not wait until the end of the year. The purpose of the formal review is to reflect briefly on experiences during the review period and on this basis to look ahead.

12. Agree on measurable objectives and a plan of action

Agree on measurable objectives and a plan of action – the aim should be to end the review meeting on a positive note.

PERFORMANCE & DEVELOPMENT AGREEMENT

A performance and development agreement can only be made when the expectations, with regards to the performance expected, are clear.

To be able to clarify these expectations

We need to put the effort into:

Having a shared understanding of our core values: Integrity, Innovation, Commitment, and Teamwork. It’s important to see what every person does to uphold these values, what each person do to sustain/promote/realize them.

Creating a shared vision of the purpose and goals of the company as it is very important to align individual objectives to the company objectives. This alignment can be achieved if:

– the managers share, through a cascading process, the objectives of the company (high-level goals);

– every person will formulate their own goals within the framework provided by the company (overall purpose; strategies; politics and values), through a bottom-up process.

Making people aware of the impact of their choices. The amount of effort and care they show towards the desired results, how they carry out their work, are the elements that make the difference between people just doing a job and people doing a great job.

It is fundamental to

reach this agreement through a very open dialogue that takes place between managers and individuals. The objectives must be agreed, not set, or imposed on people. The individuals must accept the objectives and must be supported by the managers and by the company to achieve them. In other words, the agreement is a partnership in which responsibility is shared and mutual expectations are defined.

This dialogue should take place continuously during the year. The starting point is the role profile which sets out the role purpose. During the dialogue, the gaps can be identified, the performance and development plans can be designed, the actions needed to be implemented to cover the gaps can be identified and we can agree on clear objectives to enable each person to reach the expected level.

Identified roles and purposes

Competency dictionary

Competencies represent the language of performance. They can articulate both the expected outcomes from an individual’s efforts and the manner in which these activities are carried out (Rankin, 2004). They are the observable abilities, skills, knowledge, motivations or traits, defined in terms of behaviors expected. Behavioral competencies are also known as soft skills and represent the type of behavior required to deliver results. Specific competencies define what people have to know in order to be able to carry out their roles effectively. Core competencies reflect the company’s culture and are required for all the employees. To these, leadership abilities and specific competencies (technical, functional and organizational) are added.

The competency dictionary describes the knowledge, skills, and behaviors that are expected in any role across Wayfare.

Behavioral Competencies: Commitment, Integrity, Teamwork, Innovation (also core values), Communication, Drive for results – achievement, Developing others, Making decisions;
Specific Competencies: Functional (Documentation, Testing), Technical (Guidance needed, Work independently, Architecture/design, Question level, Review, Go to person, Working methodology, Task complexity), Organizational (Planning, Processes).

Proficiency levels

At Wayfare the weight of the behavioral competencies is equally important with the weight for specific competencies because we value the way we achieve results as much as we value the result itself.

Behavioral Competencies

Tech Competencies

MANAGING PERFORMANCE THROUGHOUT THE YEAR

Continuous Process

Performance management must be a continuous process in which managers find the right way to get the best from the people they manage. It is about setting directions, making agreements, monitor, measure performance and helping each team-mate to understand and recognize their contribution to the company’s performance. It enhances “learning from experience”, treating every task as a learning opportunity (as long as the people involved reflect on what they did and how they did it and draw conclusions on how to carry out similar tasks in the future).

With shared expectations

The relationship between managers and people plays a critical role in having a successful implementation of a performance management system. The managers must interact with their team-mates as much as possible, enabling a shared understanding of what is expected, what is required to improve performance and how this could be achieved. They should regularly review the goals agreed to ensure they’re still appropriate and make sure that the individual is making good progress in achieving them. Where needed, steps should be taken to remove any obstacles in the way of their timely accomplishment.

Based on Trust and Respect

It’s always hard for managers to find the right balance when comes to managing people. They want everybody to trust and like them but, at the same time, they need to be objective and able to give critical feedback when / if needed. Therefore, one of the most important challenges for a manager is to gain the respect of the people and their confidence that they, as managers, are able to take decisions and move things forward in a fair manner.

Do not pray for tasks equal to your abilities,

but pray for abilities equal to your tasks. Then the performance of your tasks will be no miracle, but you will be the miracle.