Continental Grain Company - ContiConnect Online

'More Than Paperwork': Leading People Through Performance Management

Writing up that dreaded list of goals and objectives--ugh! Creating an action plan. Filling out appraisal forms (all those boxes!) at year end. And having that talk with your boss ... or your employee.

From Performance ... to Pay
Today, "pay-for-performance" has<  become a common, everyday term, a philosophy shared by CGC, PSF, GenomicFX--and thousands of other companies. But how does it actually work? How does performance get turned into dollars and cents?

...click to continue...

For many people, these tasks--key parts of what's often known as "performance management"--are about as appealing as a visit with the IRS. They take time, involve plenty of work, and tend to be put off for as long as possible.

Rather than unnecessary distractions, however, they are in reality among the most important parts of your job. They're essential for building the organization and managing change, and as crucial to the company's success as finance, production, marketing, or any other business process.

Despite some minor differences, CGC and its affiliates handle performance management in similar ways and generally agree on the factors needed to make it work.



Support from the Top: Walking the Talk

For HR managers, the key ingredient is support from the top--senior executives who participate in goal setting and performance appraisals and take these responsibilities seriously. "People always want to know whether senior management is involved--that's their first question," notes PSF Training Manager Dan Tvrdy, who has worked on goal setting and performance management with hundreds of employees over the last few years.

In short, participation at the top builds credibility and helps people to see performance management as more than a bureaucratic process. "Senior management has to play an active role to make the process successful," notes Teri McCaslin, Executive Vice President of Human Resources and Information Systems. "We know that people are looking to us to set an example and demonstrate leadership in this area."


Aligning Goals Throughout the Organization

The participation of senior management also establishes broad objectives that can be passed down through the organization, and that can provide guidelines and direction for individual goal setting. This doesn't mean waiting for every last goal to come down from the mountaintop--especially since most people are able to develop reasonable goals based on experience and common sense. However, it does mean collaborating with bosses and colleagues, and developing goals that clearly support the organization's larger objectives.

"The point of the top-down approach is simply to make sure that people are spending their time well and not going off in their own direction," says Joe Dickens, Vice President of Human Resources at Wayne Farms. "They should be doing work that's on the radar screen and that the company sees as important."


A Continuous Process, Not a Once-a-year Event

In addition to having high-level support, good performance management needs to be an ongoing process. This helps people to see the final appraisal as a summary of the year's work, and not just as a ritual that precedes the merit increase. It also encourages improvement in mid stream and reduces the chance of surprise.

"If you're surprised by anything in that final appraisal, then your manager hasn't done a very good job during the year," says Mike Thoren of ContiBeef.

As Vice President of Operations, Mike conducts regular interim reviews with his six feedlot GM's and other direct reports--a practice he began a few years ago after seeing that some department heads (people just below the GM level) wanted more frequent feedback than they generally received. His interim reviews--usually a quarterly conversation followed by a summary in letter form--thus became a way of showing GM's and others how better communication might happen.

Over the years, the practice has proven to be a good model and has helped to correct a number of difficult problems. "Some GM's prefer to do more informal evaluations with their own reports," he notes, "and that's fine. The method can vary, so long as there's serious communication and a good feedback mechanism."


Developing Measurable Goals

To make the process work, goals should also be specific and measurable. Such goals are more likely to get done, notes Wayne Farms' Joe Dickens, and obviously provide a better yardstick for appraising performance. They also allow the appraisal process to continue even when a manager moves to a new job or leaves the organization.


How Specific Should You Be?

In general, the more detail the better. "Rather than just saying 'improve feed conversion,' you might say 'achieve 2.7 or less average feed conversion on all lot closeouts,'" offers Dan Tvrdy of PSF. "Instead of 'cross-train in other departments,' you could say 'spend two days training in a mega nursery and two days at a sow farm and report back findings to your team.'"


Admittedly, developing such goals may be easier for people in sales and production than for those in staff positions. However, even people in the latter group should be able to write goals that specify measurable results in terms of deadlines, budget targets, work quality and accuracy, skill acquisition, staff development, etc.

Similarly, on the appraisal side, detail helps to ensure that evaluations are as fair and objective as possible. "You might not completely eliminate subjectivity," says Joe Bongiorno of New York HR, "but you can make the process fairer and more objective by challenging managers to back up appraisals with detail." This can also open the door to a frank discussion about strengths, weaknesses, and development. "A well-documented appraisal" he notes, "can be a springboard to development."


A Shared Responsibility for Individual and the Organization

Most importantly, people need to recognize that performance management is everyone's job, and that they must take the initiative in making it work. Employees should take responsibility for setting goals that are relevant to their own job requirements, and that meet the overall needs of the organization. They should also take an active role in communicating career goals and in seeking out opportunities for training. At the same time, the company must provide a structure for ensuring good communication about job performance. In addition, managers must see the evaluation and development of their staff as a serious responsibility, and not just as a task for HR.

"No one looks forward to this work since so much of it has to be written up and documented," notes Suzanne Foley of ContiBeef. "But being able to coach and manage people is the first thing we expect from our supervisors. It's the foundation of their success with their department and their own success as managers, and it's the fundamental reason they're here."

ContiGroup Globe
 

© 2010 Continental Grain Company and its affiliates