Modernize Performance

Management
Traditional performance management
doesn’t work – shift to an approach
that’s tailored to your organization’s
context.

McLean & Company is a research and advisory firm that provides practical
solutions to human resources challenges with executable research, tools, and
advice that will have a clear and measurable impact on your business.
© 1997-2020 McLean & Company is a division of Info-Tech Research Group Inc.
Executive Summary
McLean & Company Insight
Ditching the annual performance review for agile practices won’t necessarily solve performance
management problems. Customize the building blocks of performance management to best fit
organizational needs to impact individual and organizational performance, productivity, and engagement.

Situation • The traditional approach to performance management (PM), characterized by annual performance reviews and infrequent feedback,
is ineffective in today’s increasingly fast-paced environment.
• Traditional PM negatively impacts the entire organization through lower productivity, performance, and engagement.

Complication • Many organizations believe that ditching ratings and the annual review in favor of an agile approach to managing performance that
focuses on continuous goal setting and feedback is the solution.
• However, new research shows that agile is not the cure-all to performance management that many hoped it would be. Getting rid of
ratings doesn’t get rid of the need to evaluate performance, and an agile approach is not necessarily easier for managers and
doesn’t suit every context.

Solution • Modernize performance management by selecting and customizing the following building blocks to meet your organization’s needs:
process, goal setting, competencies, feedback and coaching, crowdsourced feedback, and ratings.
• Train managers to provide employees with high-quality feedback and coaching to improve all other aspects of performance
management.

McLean & Company | 2

It’s time to move away from traditional performance
management (PM)
Traditional PM Traditional PM is ineffective because:
• Annual performance review
It’s a poor Annual reviews Feedback can be
• Goals reviewed once per year performance don’t suit today’s biased and
• Review is backward looking
driver. work context. subjective.

• Ratings used to determine • Feedback is too infrequent and • Just as organizations wouldn’t • For example, women are 1.4
compensation focused on the past to measure revenue only once a times more likely to receive
meaningfully guide performance. year, it does not make sense to critical subjective feedback than
• Annual reviews can decrease assess employee performance men, as opposed to positive or
on an annual basis. critical objective feedback
We’ve known for more than 50 employee performance and
engagement (Caprino, Duggan). Annual reviews are often biased (Cecchi-Dimeglio, 2017).
years that this approach doesn’t •
work – yet we keep using it! toward the few months prior to
• This can lead to disputes over
the review and fail to accurately
A landmark study in 1965 found ratings, disengagement, and
capture employees’ performance
traditional performance reviews at turnover.
General Electric to be largely over the full year.
ineffective (Smith et al.).

McLean & Company | 3

Insights from neuroscience help to clarify why
traditional PM often misses the mark
David Rock’s SCARF model captures the common factors that can activate a reward or threat response in common workplace
situations and helps to illuminate the challenges traditional performance management faces.

STATUS CERTAINTY AUTONOMY RELATEDNESS FAIRNESS

Our social standing in Being able to predict Sense of control over Being a part of a social Perceived equity in
relation to others what will happen next one’s environment group – friend or foe treatment
Feedback focused on past Infrequent feedback Traditional performance Traditional PM sets up Forced rankings lead to lack
failures elicits a threat increases an employee’s reviews decrease employee employees to experience of fairness: even when
response in the brain, uncertainty about whether autonomy: the timing, both managers and employees are similarly
decreasing employees’ their job performance content, and outcome of colleagues as foes: skilled or qualified, managers
sense of reputation and meets their manager’s reviews are at the manager’s managers are there to must rank them against each
connection with their team. expectations. discretion, which decreases evaluate and rank them, and other. The injustice around
an employee’s sense of colleagues are rivals in rankings (whether perceived
See McLean & Company’s Neuroscience and HR agency. The focus on past rankings. This can make it or real) decreases trust and
blueprint for more information about building neuro- performance reinforces the more difficult to collaborate empathy toward colleagues.
friendly HR practices. feeling of helplessness. effectively.
McLean & Company | 4
Ineffective PM negatively impacts the whole
organization
Managers Employees Human Resources Organization-wide

Productive time wasted: Low engagement: Productive time wasted: Ineffective performance management is
• It takes a lot of time and effort to • Lack of time spent with manager • Chasing down managers a lost opportunity to impact
gather enough information to to set and clarify expectations and employees to complete organizational performance and
conduct effective reviews. If the and lack of timely and quality reviews takes time away employee retention through engagement:
annual review does not end up feedback negatively impacts from other value-added HR
positively impacting performance, engagement scores. initiatives. • Only 2% of organizations globally believe
this is time wasted. that their approach to performance
• Feedback is a key engagement Failure to meet HR management delivers exceptional value
Delay in managing poor driver: employees whose dashboard metrics: (Mercer, 2019; N=1,154).
performance: managers provide high-quality
• Low employee engagement • Organizations with highly engaged
feedback are nearly 3.4x more
• Issues with these employees may and productivity leads to employees are 21% more profitable than
likely to be engaged (McLean &
not be apparent until it’s time to lower retention, less their competitors (Smarp, 2020).
Company Engagement Database,
prepare for the annual review. effective employee
2020; N=79,273). • Engaged employees are 4.7x more likely to
development plans, and
• Managers are not identifying low Lower than capable agree with the statement “I expect to be at
ultimately, makes
performers early enough to the organization a year from now” compared
productivity: succession planning more
provide them with the support to their disengaged or indifferent
• Untimely, ineffective feedback difficult.
they need to improve counterparts (McLean & Company
performance. does not provide enough Engagement Database, 2020; N=77,033).
information to drive productivity.
McLean & Company | 5
Dissatisfaction with traditional PM has led many to
view agile PM as the solution
Agile PM The list includes top companies such as:
• Expectations are fluid and clear. A number of Fortune 500 companies • Accenture
• Goals are reviewed monthly; no annual review. have been in the news for ditching the • General Electric
• Review is backward and forward looking. annual review and ratings in favor of • Medtronic
agile practices such as more frequent
• Feedback and coaching are given at least • Adobe
check-ins and feedback (Rock & Jones).
monthly and often from multiple sources. • Microsoft
• There are no performance ratings. • Gap

of organizations have frequent performance and goal-setting

“ Our current workforce wants more than
once-per-year feedback. In a rapidly growing
23% conversations and regular performance reviews (McLean & Company
Trends Report, 2020; N=472).
company, if you’re not communicating
regularly, people fall behind. So it makes
sense to talk more frequently. These practices are associated with a stronger ability to generate and

– Ashley Lundquist, VP of People,

” implement new ideas (7.5 average effectiveness rating out of 10) and
workforce productivity (7.4 average effectiveness rating out of 10).
Leadpages (McLean & Company Trends Report, 2020; N=454). McLean & Company | 6
However, research suggests that full agile PM is not
the cure-all many thought it would be
Getting rid of ratings Agile is not necessarily Agile doesn’t fit every
doesn’t get rid of easier for managers. context.
1 evaluation. 2 3
While time spent on annual reviews is Industries such as manufacturing or
Employee performance always needs eliminated, agile PM requires construction may not require frequent
to be evaluated in some way. managers to be more available to goal setting and check-ins, and both
employees on a regular basis and to managers and employees in these
Unless a reliable alternate method of be more involved in their development. contexts may prefer the annual review.
evaluation is put in place, there is a
risk that evaluations may be more Research shows that over time, many Different employee groups within the
subjective and inconsistent, not less managers shy away from providing same organization may also require
(Goler et al.). ongoing feedback regardless of the different performance management
software or apps at their disposal practices, such as administrative staff
(Falcone). or unionized employees.

See the Performance Management

Only 15% of organizations have eliminated ratings (Mercer, 2019), suggesting that Catalog for Wide Spans of Control for
a pure agile PM approach isn’t the answer for most organizations. more information on PM in those
contexts.
McLean & Company | 7
Modern PM offers a middle ground between
traditional and agile
Traditional Modern Agile
Expectations are often unclear with
Clear expectations are set with competencies. Expectations are fluid and clear.
no connection to competencies.

Goals are typically only reviewed once a

Goals are reviewed quarterly, as well as yearly. Goals are reviewed monthly.
year.

Review is backward looking. Review is backward and forward looking. Feedback is backward and forward looking.

Coaching and more frequent feedback are Feedback and coaching are given at least
Feedback is infrequent.
included. monthly and often from multiple sources.
Ratings (if appropriate) are more accurate and
Ratings are likely misunderstood, a cause for There are no performance ratings or annual
motivating and include employee self-
disengagement, and only used by managers. review.
assessment.

McLean & Company Insight

Modern PM should not be seen as a failure to become agile but rather as a successful alternative to traditional PM. Agile PM is not
the ultimate goal for all organizations, as it may not suit all contexts.
McLean & Company | 8
Use the PM building blocks to create the right
framework for your organization
PM Building Blocks
Customizing each of the building blocks will ensure the performance
management framework suits your organization’s context.
Process

Some of the elements of traditional PM may be retained, such as ratings Competencies

Crowdsourced
Feedback
and an annual review, but they are enhanced and supported by
incorporating agile elements to boost employee performance. Goal Setting Feedback & Ratings
Coaching

The end result may be a modern or agile performance management

framework or something in between. What’s most important is that it’s
the right fit for your organization.

McLean & Company | 9

Follow McLean & Company’s four-step process to
modernize performance management

1. Prepare to
2. Design the PM
change the PM
framework
framework

4. Communicate
3. Align related
and train to
HR programs
manage change

McLean & Company | 10

Step 1 After completing this step you will have:

• Assessed the current state of your

Prepare to change the PM framework organization’s PM framework.

• Determined high-level goals and

metrics.

• Reviewed the PM building blocks.

1. Prepare to 2. Design the PM • Gained buy-in from stakeholders.

change the PM framework
framework

3. Align related 4. Communicate

HR programs and train to
manage change

McLean & Company | 11

Evaluate the effectiveness of the current approach
to PM
Use the Performance Management
Effectiveness Scorecard to gain:
• A better understanding of the pain points from the current PM
framework and the biggest strength areas.

• A single snapshot of all the metrics relevant to the PM framework.

• Results that can be used to gain stakeholder buy-in.

• A medium to track the effectiveness of the modified PM

framework.

This tool is customizable and can be used for different departments

with different PM frameworks. Complete the rating section of the tool
to evaluate how effective the current PM framework is and where the
pain points and strengths lie.

McLean & Company Insight

Even if you know the current PM framework is not working, resist the urge to make changes before getting clarity on the pain
points. This will ensure that any changes you make address the real issues and fit the organization’s needs.
McLean & Company | 12
Define goals and metrics for the PM framework
Sample goals Sample metrics
• Number of FTEs who are engaged / Total number of FTEs.
Increase Engagement
• (Number of employees satisfied on engagement survey / Total number of
Increase the amount of engaged employees by 10% over the next employees) * 100.
year. • Use McLean & Company’s Employee Engagement Program.

• (Revenue – operating costs) / Total FTE.

• Productivity metrics for large role families:
Increase Productivity
o Sales: number of calls to close
Increase product sales revenue by 10%.
o Help Desk: number of tickets completed
o Line: consistent product quality

Frequent Feedback • Improved engagement scores related to increased satisfaction with

Increase the frequency and quality of conversations to outline feedback from managers.
career opportunities and retain employees. • Reduction in regrettable turnover.

Refer to McLean & Company’s HR Metrics Library for a full list

of metrics. McLean & Company | 13
Review the PM building blocks to determine focus
areas before gaining buy-in

Feedback & Crowdsourced

Goal Setting Competencies Ratings
Coaching Feedback

Establishing The knowledge, skills, and Performance conversations Performance feedback from Evaluation system used
expectations and attributes required in the between managers and anyone other than an to categorize employee
desired outputs. pursuit of goals. employees. employee’s reporting manager. performance.

The series of actions, steps, and timelines that define the performance cycle. The performance cycle is the period of time during which:
• Performance expectations are confirmed.
Process • Progress towards goals, expectations, and competencies is reviewed and assessed.
• There is a final review of overall performance.

McLean & Company Insight

If moving away from traditional PM was quick and simple, everyone would have done it already. Put in the time investment to identify
organizational areas to leverage to make the PM transition a smooth process.
McLean & Company | 14
Understand the current state of
each building block
Use the Modern Performance Management Worksheet to capture decision
points and rationale for customizing each building block.
To complete the worksheet:
• Start with the current state. Answer the questions under each building block section to document the
current state and make note of any concerns.
o Use the pain points identified in the Performance Management Effectiveness Scorecard to help
inform the current state and to identify focus areas based on pain ratings.
• Use the future state column to make note of desired changes for the future state. Note: The future state
column will be built out and updated in step 2 as each building block is explored. For now, document
any existing or rough ideas.

The information documented in the worksheet will be used to:

• Prepare for discussions with stakeholders to gain buy-in for changes.
• Document decisions made throughout step 2 to outline the desired future state of the performance
management framework.

Use the Modern Performance Management Worksheet to document the current and future state.
McLean & Company | 15
Obtain stakeholder buy-in to proceed with
designing a new PM framework
Use the results from the Performance Management Effectiveness Scorecard and Modern Performance Management Worksheet to gain stakeholder
buy-in by showing pain points in the current state and how the organization needs to change. Use the metrics to show how you will track progress.

First, meet with organizational Then, check in with managers and

stakeholders to: employees:

• Review the plan for the PM framework. Seek buy-in to • When moving forward with the new PM framework, get
confirm: feedback from managers and employees:
o Areas needing change, based on results from the PM o Clarify any feedback on shortcomings of the
Effectiveness Scorecard. previous framework and gather their ideas for
improvements going forward.
o Which building blocks best fit organizational needs
and priorities. o Outline the PM building blocks and ensure they
understand and are on board with incorporating
o Steps to redesign the PM framework (customizing these where appropriate.
building blocks, aligning related HR programs).
• Managers will be leaders of change, so their buy-in is
• Solicit stakeholder feedback and answer any questions. necessary for success. Include some managers’ input
• Confirm that HR will get back to stakeholders with throughout the process of designing a new PM
proposed changes after completing the next step. framework.

McLean & Company | 16

Step 2 After completing this step you will have:
• Customized the PM process to fit your
Design the PM framework organization.
• Defined expectations and determined
a goal-setting model.
• Selected competencies with
accompanying proficiency levels.
1. Prepare to 2. Design the PM • Defined how feedback and coaching
change the PM framework will be incorporated.
framework • Determined if and how crowdsourced
feedback will be incorporated.
• Decided on whether ratings will be
included.

3. Align related 4. Communicate

HR programs and train to
manage change

McLean & Company | 17

Recognize that some PM building blocks are
mandatory and some are optional
This step is divided into each of the PM building blocks, with the relevant building block
PM Building Blocks
displayed in the top right corner of each slide.

While working through tailoring each building block, document decisions and continue
to update the future state column in the Modern Performance Management Worksheet.
Process
Mandatory Optional
Crowdsourced
Competencies
Feedback

Goal Setting Feedback & Ratings

Coaching
These building blocks are the These building blocks are optional
cornerstone of the new PM framework. elements in a PM framework:
They are necessary to ensure that • Ratings
employee performance is being • Crowdsourced feedback (CSF)
managed properly. They can help shape the PM framework
but are not necessary for every PM
framework.

For information on how to customize the PM building blocks for teams, see McLean &
Company’s Adapt Performance Management for Teams blueprint. McLean & Company | 18
Keep the PM process in mind as you work Process

through this step

The PM process is defined by the content and timing of meetings within the performance cycle (outlined below). As such, key PM process decision
P points are woven throughout the other building blocks and are highlighted by this icon. McLean & Company recommends a process that combines
multiple check-ins with an annual review.

Performance expectation meeting: Occurs at the Formal check-ins: Recurring meetings to evaluate Annual review: Occurs at the end of the
beginning of the performance cycle to discuss employees against goals, expectations, and performance cycle to review performance and
and confirm goals, expectations, and competencies. provide a final rating (if ratings are being used).
competency proficiency levels. Informal meetings: Frequent meetings to provide more Employees and managers must meet at the end
timely feedback and coaching. of the performance cycle, typically one year, to
review performance for the year.
At a minimum, employees and managers must meet
once a quarter to ensure employees are getting enough Employees must conduct a self-assessment for
feedback and coaching to drive performance annual reviews.

Goal Setting Competencies Feedback & Crowdsourced Ratings

Coaching Feedback

McLean & Company | 19

Customize the PM process to fit your organization Process

Use the information gathered in Step 1 to determine how often managers will meet with employees to discuss performance and whether annual
reviews will be used. Document these decisions in the Modern Performance Management Worksheet and Performance Review Template.

Choose the frequency of meetings to fit:

Formal check-ins:
• Manager capacity: High number of direct reports will make it difficult to meet more than quarterly.
Formal check-ins are an opportunity to provide
o Also, if managers have never done more than an annual review, it may be better to start with P feedback and coaching against performance
quarterly check-ins to give them time to learn how to have effective performance expectations and modify goals to reflect shifting
conversations. priorities, as appropriate.
• Business cadence: Align feedback frequency with work processes; evaluate the cadence of project Informal meetings:
cycles and when performance conversations would be most impactful. Informal check-ins provide the opportunity for more
timely feedback and coaching without any formal
• Industry/context: Routine work where goals don’t change often will likely require fewer check-ins,
evaluation or documentation (e.g. scrums, 1:1s).
and some employee segments within the same organization may also require fewer check-ins
depending on the nature of their work.
Determine who is responsible for booking each
• Organizational culture: An organization where people are already comfortable with giving and
type of meeting – the manager, employee, or
receiving feedback will have an easier time adopting a more frequent check-in process. Where
dual responsibility.
feedback is not the norm, twice per year may be enough of a challenge at the beginning.

McLean & Company Insight

There is no one-size-fits-all approach to PM; the process may vary not only across industries, but even within different departments or
employee segments in the same organization. Allow freedom for these groups to adapt the PM process to best fit their particular context.
McLean & Company | 20
Determine whether annual Process

reviews will be used

P Keep the annual review if:

• Compensation and other HR programs are closely tied to the

annual review and the organization isn’t ready or willing to
make changes to these programs (Caprino).
• It fits the organization’s strategic plan. Some organizations
find that the annual review is an excellent tool to capture
ongoing feedback, keeps front-line leaders accountable, and
provides important benchmarking for employee performance
(Falcone, Cookson).
o It can also keep employees focused on their goals through
self-evaluations.
• Collective agreement(s) require annual reviews.

McLean
McLean &
& Company
Company | 21
Define performance success by clearly outlining Goal Setting

role expectations
Performance expectation meeting: At the beginning of every performance cycle, and within the first week in a new role, managers
P must meet with employees to discuss specific role expectations.

Every employee needs to know what’s expected of them. Ensure managers are
• Ensure understanding – have managers and employees record these
clearly communicating role expectations and are prepared to discuss:
expectations so that they are easily accessible and can be reviewed
• What the employee is expected to do, their key responsibilities. when needed.

• How they are expected to do it. • Confirm rather than assume: Managers may think that employees
understand what’s expected of them when in fact they do not. Ask
• Role expectations typically include the day-to-day activities in a role. There are employees to repeat role expectations – taking the time to clarify early
three options of how role expectations can be used in performance reviews: on will improve performance later.

“
1. Document role expectations in the performance review as day-to-day
Traditional performance management assumes that the manager has all
activities aren’t captured in goals.
of the answers, which puts a lot of pressure on the manager.
2. Use role expectations instead of goals due to the nature of the role (e.g. Instead, we recommend putting much more emphasis on employees

3.
Data Entry Clerk).

Use goals only as role expectations are captured in goals.

understanding what’s expected of them.
”
– Jan Hills, Partner, Head, Heart + Brain Consultancy

• Accountabilities/responsibilities listed in the job description are a great source Customize the Performance Review Template to capture
for role expectations. how role expectations will be used in the PM framework.
McLean & Company | 22
Develop a uniform goal-setting model for Goal Setting

everyone to use during check-ins

Goals are the desired output for an individual in the performance cycle. Set a standard model to ensure that everyone has a process to set
meaningful goals.

Goal
Goal Sourcing Goal Setting Goal Achieving
Measuring

Where goals come from: • Set no more than five to maintain • Support employees by assigning • Adopt low-effort tracking.
• Organization goals focus (Heathfield). learning related to development • Adjust as needed.
• Department goals • Set specific goals with tight goals to enhance success. • Don’t over-complicate.
• Team goals deadlines to drive higher • Goal setting has a stronger • Focus on communication.
performance (Grote). positive impact on performance
• Development goals
• Use SMART to set well-defined when combined with feedback
• Past reviews (CIPD), so check in frequently and
goals; emphasize R (relevant) to
ensure goals are meaningful. review goals with employees.

McLean & Company Insight

Don’t get too hung up on finding the “perfect” goal-setting model. SMART, CLEAR, cascading, etc. are all useful models, See the Goal Management Job Aid for
but far more important than the chosen model is how it is used. To be meaningful, goals need to be clearly defined, more information on how to develop
understood and agreed upon by both managers and employees, connected to organizational results, and reviewed meaningful goals.
regularly.
McLean & Company | 23
Guide managers and employees through setting Goal Setting

meaningful goals
Use McLean’s Goal Management Model or your organization’s own model.
• Employees come to the performance expectation meeting prepared with a draft of the goals they want to achieve and
Customize the Performance Review
develop them further with their managers.
Template to reflect goal setting at
• Goals focus on current work, projects, process improvements, innovation, and development opportunities. your organization.
• Have employees and managers record these goals to encourage achievement.

Performance/Role-Related Goal Questions: Development/Career-Related Questions:

• What do you think went well on your last project/assignment? • What are your career aspirations? What skills do you want to develop?
• What do you think you could have done differently? • What strengths can you leverage or build on?
• Is there a particular initiative or project that you would like to work on? • What is one behavior that you would like to change or develop?
• Based on our organizational goals, what do you think you could contribute? • What is holding you back – if anything?
• How does this goal drive organizational, departmental, and/or team results? • What position do you see yourself moving to next?
• What improvements do you think we can make in our team or department? • What are your development objectives?

Train managers on how to navigate goal discussions and provide them with resources on questions to ask. See Step 4 for more information.

McLean & Company | 24

Define the role that competencies will play in the Competencies

PM framework
Use competencies to clarify expectations for employees’ performance. A competency is a group of knowledge, skills, and attributes demonstrated
through observable behaviors and specifies how employees successfully perform their work.

Core competencies apply to every role in the organization. At a minimum, use core competencies.
Select competencies that are tied to the achievement of Either use pre-existing core competencies or develop your own as follows:
organizational strategy and values.
• Review the organization’s mission, vision, and values. Core competencies often include
organizational values and sometimes even consist entirely of them (e.g. customer focus).
Leadership competencies apply to all leaders in the • Identify competitive differentiators that the organization wants to reinforce (e.g. creativity
organization, from managers to executives. and innovation).

Don’t overcomplicate the PM framework by having too many competencies – aim for
Functional competencies generally apply to only one job
three to five competencies total. If there are numerous competencies, select the ones
family or functional area in the organization. These can help to
determine role expectations. that are most important for employees to focus on. This may differ by function, level,
and year due to shifting priorities.
Customize the Performance Review Template to reflect how See McLean & Company’s Comprehensive Competency Library for core, leadership,
competencies will be used. and functional competency descriptions and proficiency levels.

McLean & Company Insight

Goals define what to do, while competencies tell employees how to do it. By directly shaping how work gets done, competencies play an
important role in reinforcing organizational culture and values and performance. McLean & Company | 25
Determine the appropriate competency Competencies

proficiency level for each role

McLean & Company’s proficiency levels define the degree to which an employee is required to demonstrate the competency through
observable behavior.
Adapt proficiency levels to suit different organizational needs. If there are no defined job grades:
Use job grades or tiers as an effective way to assign proficiency levels:
• Review job descriptions to determine the level of job
• Typically, all entry-level positions would be set at Level 1. Specify baseline complexity.
behavior for the role, not for a particular incumbent.
• Talk to managers to gain a better understanding of the role
• A general rule of thumb is that proficiency levels for managers and senior-level and expectations.
positions would be set at Level 3 or 4.
• Ensure roles that are the same across the organization are at
• Work with managers to ensure accuracy as you assign proficiency levels. the same proficiency level.
• Ensure the number of proficiency levels are manageable – 4 or 5 levels maximum.

Target competency proficiency levels:

Level 1: Level 2: Level 3: Level 4:
Baseline behaviors. Practical application of the behaviors. Role models, coaches, and influences Envisions and innovates the next generation of the
demonstration of the behaviors. behaviors.

McLean & Company Insight Determine the appropriate weighting of

goals and competencies in the performance
If there is variation in proficiency level for a particular job grade or tier, opt for the lowest proficiency
level. After all, this is the proficiency every employee in the job grade or tier will be expected to display. review, aligned with your organization’s
priorities. McLean & Company | 26
Make quality feedback and coaching a central Feedback &
Coaching

part of the PM framework

Feedback and coaching is the most important PM building block. Document how to build feedback and coaching capability and accountability in the
Modern Performance Management Worksheet.

Feedback and coaching is a challenge for most managers Advise managers to meet quarterly, or whatever frequency has been
decided, for formal check-ins to provide feedback and coaching.
• A study found that ongoing feedback is the most commonly used cutting-edge
Allow managers discretion to determine the frequency of informal
PM practice and the foundation of all others (Ledford et al.) P meetings. Informal meetings are short in duration, and managers
• Yet for many managers, feedback and coaching is the part of PM they struggle can ask a few simple questions such as, “how is your project
with the most. They may not know what to talk about in check-ins or how to going?” and “how can I support you?”.
respond to employee concerns. Training will help to relieve this discomfort.
As capability improves, build more frequent meetings into the PM
• Make providing feedback and coaching a part of every people manager’s cycle.
performance expectations.
Caution: These informal meetings are not work update meetings.
Advise managers to keep informal meetings separate from work
Build feedback and coaching capability by providing training and regularly update meetings.
following up to discuss any challenges and provide further support.
McLean & Company Insight

Use McLean & Company’s Feedback and Coaching Guide to help managers Feedback and coaching is the most important mandatory building block
navigate feedback and coaching discussions. For more information on of the PM framework. Yet, managers are not going to improve on their
coaching, see McLean & Company’s blueprint Train Managers to Coach for own. Build feedback and coaching capability through training and
High Performance. resources and follow up to discuss challenges.
McLean & Company | 27
Educate managers on effective feedback and Feedback &
Coaching

coaching and how it can drive performance

Feedback is essential when coaching; it allows Additionally, managers must incorporate
employees to understand their strengths and coaching in their feedback delivery to have an
development opportunities. impact on employee performance.

Feedback Coaching
• Feedback is information about the past, given in the present, with the goal of • Coaching focuses on future behavior and is developmental.
influencing behavior or performance in the future. • Coaching aims to build and develop skills that already exist for future
• Feedback in the workplace focuses on the relevant work or task being performance.
performed. • Praises effort rather than innate ability to drive performance (Trudel).

How feedback drives performance: How coaching drives performance:

• Allows managers to address undesirable behaviors, performance gaps, and • Guides and facilitates a person toward achieving their potential.
issues before year-end review or other formal assessment, allowing for time • Encourages and motivates.
to improve. • Guides employees toward discovering their strengths and applying their
• Provides clear guidelines on what to do differently so that employees are not knowledge.
left guessing about how to improve. • Challenges the employee to push beyond their comfort zone.
• Offers examples of successful behavior to inspire higher performance. • Removes barriers and provides resources.
• Assesses competence and confidence levels.
See McLean & Company’s Foster Effective Feedback Skills for more • Celebrates “wins” with the employee.
information. McLean & Company | 28
 Proceed with caution when it comes to Crowdsourced
Feedback

crowdsourced feedback (CSF)

Benefits Risks Recommendations
• Enables employees to give valuable constructive feedback • Feedback may be too positive to meaningfully guide • Managers must have adequate feedback and coaching
to peers, since they often see behavior that managers do performance. Employees may fear offending peers or not skills before adopting CSF.
not. know how to give constructive criticism.
o Regular check-ins will give managers the chance to
• Allows employees to forward feedback to their manager to • Conversely, feedback may be overly negative and discourage learn how to give effective feedback and employees
include in performance discussions. Particularly applicable rather than drive performance. the chance to learn how to receive it in an effective
if the manager is remote or not present for significant o E.g. An individual who gives a presentation for the way.
milestones. first time and receives immediate negative feedback • A culture of trust and openness is key to ensuring that CSF
• Facilitates managers giving feedback to employees who are may be discouraged from trying again. does not veer into criticism or increase fear among
not direct reports. • If employees are not getting regular feedback from their employees.
• Decreases bias present in single source (e.g. manager only) managers and yet are encouraged to give feedback to peers, • Hold off on using this type of feedback if there is a high
feedback by providing a broader view of employee they may interpret this as managers abdicating their people degree of tension and distrust among employees and
performance. manager accountabilities. managers.
• Allows the organization to build a culture of positive • If CSF is adopted, provide training, clear guidelines, and
reinforcement and recognition (Grenchus). examples for all employees (Coy).
• Provides an opportunity for frequent and timely feedback
throughout the performance cycle.

McLean & Company Insight

Start by using CSF for recognition, since it tends to be skewed toward the positive. This will allow the organization to get accustomed to giving
feedback and will make it easier to use it to inform PM if desired in the future. McLean & Company | 29
Be deliberate about the implementation of Crowdsourced
Feedback

crowdsourced feedback
Ask: Does the organization…
• Have an established atmosphere of If the environment supports extensive CSF, then
psychological safety? continue to develop the details around the
process on the next slide.
Determine the extent • Have an environment of ongoing effective
to which CSF can be feedback and coaching from leaders? If the environment isn’t conducive to extensive
implemented • Have high levels of trust and CSF, implement a scaled-back approach and
communication? continue to work on the feedback environment to
• Currently use 360-degree surveys for move toward greater CSF over time.
development or CSF for recognition?

Crowdsourced feedback cannot be the sole source of feedback. Ensure that leaders use CSF to supplement their own feedback rather
than to replace it.

McLean & Company Insight

CSF is not a solution for distrust or poor communication. Implementing it fully before there is a strong culture of trust and openness can
exacerbate these issues rather than resolve them. McLean & Company | 30
Define the process for collecting and distributing Crowdsourced
Feedback

crowdsourced feedback
Determine distribution
CSF guidelines P Identify collection method P method
Provide employees and managers with guidelines Real-time CSF: Direct to employee:
for specific feedback to mitigate the risk of • Avoid real-time CSF for a scaled-back • Suitable if team members have strong
collecting large quantities of ineffective approach. feedback reception skills.
feedback. • Collecting real-time feedback allows for • Individuals must share the feedback
action to be taken in a timely manner but with the team leader (if applicable) and
For scaled-back CSF, provide specific questions
can also result in an overwhelming reporting manager to ensure feedback
to ensure feedback is as helpful as possible.
amount of feedback. is integrated into the overall PM
Mandate both positive and constructive feedback • Appropriate technology is required to framework.
on: collect real-time CSF.
Direct to manager:
• Team goals
Align CSF with goal milestones:
• Suitable for a scaled-back CSF
• This option aligns with a scaled-back
approach to ensure only suitable and
• Competencies approach.
constructive feedback is shared with
• Ensure the timing of CSF aligns with goal the individual.
This ensures the feedback will not be overly
milestones so feedback can be specific
positive or shallow.
and constructive.

The role of CSF is typically enabled by technology due to the high volume and frequency of feedback. Leverage existing
technology HR technology capabilities or explore vendors if that is within scope. McLean & Company | 31
Decide whether ratings will be used to evaluate Ratings

performance
Advice if keeping performance ratings: Advice if removing performance ratings:
OR
Some contexts require ratings, while others choose to keep ratings. • If ratings are currently used as an input to other HR programs, the absence
Two options: of ratings will require changes to these programs.
• Evaluate the impact to these HR programs, for example, pay for
Develop performance ratings that are unique to your organization.
1 performance, 9-box assessments, and succession planning.
Hold a focus group with managers and employees. Ask:
• Empower managers to make decisions relating to compensation, talent
1. What are the issues with the current rating scale?
management, and any other impacted HR program based on a defined
2. Five-point scale? Greater or less than five? Why? framework.
3. What language should be used?
4. How will it reflect the organization’s culture, the way Provide guidelines or additional training for managers. Do not
work is accomplished? assume managers know how to make HR-related decisions without
ratings – take the time to train them on the new framework.
Use McLean & Company’s five-point rating scale (see next slide).
2
• A five-point scale allows for distinction between why an
employee is not delivering (e.g. are they developing or McLean & Company Insight
incompetent?) or is exceeding expectations (e.g. are they a Don’t be surprised if not everyone wants to move away from ratings.
role model or consistently performing at a more senior level?). Managers may resist because they fear decisions that used to rely on
• Accurate distinctions enable managers to develop an ratings will be more difficult, and some employees may see ratings as more
intervention better aligned to the need. objective (Lighthouse). Be prepared to address and discuss these concerns.

With ratings, don’t force rank or bell curve. Neuroscience Customize the Performance Review Template to
shows they stifle healthy competition and innovation. align with whether ratings will be used.
McLean & Company | 32
Establish a performance rating scale Ratings

McLean & Company’s rating scale:

Your performance is consistently superior to the expectations and standards
Exceptional required for the position. Your job performance results in extraordinary and
McLean & Company Insight
exceptional accomplishments with significant contributions to the goals of the
department and organization. Encourage managers to use the full range of the scale.
There is often hesitancy to be honest about rating
You routinely exceed expectations; there are no areas in which you are not employees toward the bottom or even the middle of the
Exceeds entirely proficient. Your job performance is significantly better than that of your scale, which can result in inflated ratings.
peers. The high quality of your work, both in the results achieved and how you
achieve them, is an example to your colleagues.

You are consistently delivering on expectations and are fully capable in all
aspects of your role. There may be some areas in which your job performance
Delivers exceeds the role's performance expectations. Both the results you achieve and
the way in which you go about performing your job are good examples to others.
Provide training on how to have difficult
conversations, so managers don’t avoid placing
You are delivering on some expectations of the job, but not all. There are some employees in the lower categories when
Developing performance gaps that have been identified and require improvement. warranted.

Your performance does not meet the minimum expectations for this job and is
Did Not
not acceptable. There are performance gaps that have been identified and require
Deliver immediate action.
McLean & Company | 33
Support mindfulness about biases to promote Ratings

fair performance reviews

If using ratings, make sure to conduct calibration sessions with managers to level set performance within a business unit and to mitigate the impact of biases.
P See the Calibration Job Aid for guidance on how to hold effective calibration sessions.

Occurs when an employee performs particularly well (or poorly) in one

Halo/Horns Effect area and is then rated correspondingly high or low in all other areas.
See the Biases and Heuristics
Occurs when a rater wants to avoid being negative or fears Catalog for more information.
Leniency Effect repercussions, so they evaluate employees higher than is realistic.
Biases
undermine the The more characteristics a rater shares with an employee, such as age, gender, and work
integrity of Personal Bias values, the more favorably the rater will tend to assess that employee’s performance.
performance
reviews Occurs when the rater believes a specific rating or ratings will lead to a desired outcome,
Purpose Effect positive or negative, for the employee.

Occurs when a rater weighs an employee’s recent performance too heavily, as opposed
Recency Effect to assessing the employee’s average performance over the entire performance cycle.

McLean & Company Insight

Getting rid of ratings won’t necessarily make PM fairer; evaluating performance
Provide performance management refresher
inherently involves judgement on the part of managers, and this can introduce training at the beginning of the performance
biases. Ensure that standards for evaluation are fair and applied consistently. cycle that includes bias awareness. McLean & Company | 34
Step 3 After completing this step you will
have:
Align related HR programs • Aligned total rewards with the new
PM framework.

• Built learning and development

initiatives into the PM building
blocks.

1. Prepare to • Aligned talent management

2. Design your
programs to the PM framework.
change your PM PM framework
framework • Identified how the framework will
reinforce organizational culture.

3. Align related 4. Communicate

HR programs and train to
manage change

McLean
Info-Tech & Company
Research Group | 35
Align total rewards with the new PM framework
If the PM framework doesn’t include ratings, evaluate how Even if the PM framework includes ratings, they don’t have
base pay increases and bonuses will be determined. to be the main determinant of base pay increases and bonuses.
• For example, bonuses can be based on team performance for the • For example, you may want to use market adjustments instead or
successful completion of a particular project. reserve a pool of money for rewarding top talent.

Determine which objective for base pay increases and bonuses is

There are many different options other
the right fit for your organization and the PM framework:
than the traditional use of ratings to drive
base pay and allocate bonuses.
Pay for Pay for Potential Pay for
Contribution (Attraction and Retention of Performance
• Be honest and specific with what you’re trying to Key Talent + Future
(Attraction, Retention, and (Recognition for Past
drive and how programs are carried out in Recognition) Contributions) Performance)
practice. Redefine what pay for
Identify the factors that Align an employee’s pay
define contribution, e.g. with predicted future performance means for
• Have the courage to challenge the status quo
goal achievement, performance. This your organization; clearly
and think outside the norm. define the performance
market/pay band position. approach focuses base
There may be separate pay increases and bonuses you want to recognize, and
• Don’t focus on trends. Look at what you want to
factors for base pay as an attraction & retention determine how you will
pay for and why. differentiate performance.
increases and bonuses. mechanism for key talent.

For more information, see McLean & Company’s Evolve Pay for Performance and
Equip Managers to Conduct Effective Pay Conversations materials. McLean & Company | 36
Leverage L&D initiatives to build capability in the
modern PM behaviors
Who Modern PM Behaviors Where to build in L&D Use McLean & Company’s
extensive L&D resources to build
Set expectations for employees
Communications and accountability talent:
training
• Step-by-step L&D blueprints on topics
Coaching and feedback skills, including how to have such as Create a L&D Strategy and
Manager difficult conversations
PM training for managers
Build a Mentoring Program.
Effective performance and development conversations, • Customizable training decks
Leadership development programs
including goal setting designed to develop managers,
including facilitator’s notes.
Identify personal performance and development goals Onboarding
• Training programs such as
Employee Be responsible for scheduling check-ins and informal 1:1s PM training for employees Management Fundamentals.

Take accountability for results Accountability training • Workshops and advisory services to
help kick-start talent management
and L&D projects and guide you
Example through them.
Use a blended approach (e.g.70-20-10) to developing managers to have effective performance conversations.
• Provide in-class training on foundations of effective PM (10%).
Use McLean’s Learning Methods
• Provide a mentoring program for managers to develop their ability to have effective performance conversations Catalog for more on learning
(20%). methods.
• Evaluate employee feedback to ensure they meet with employees regularly throughout the year to ensure they are
regularly practicing what they’ve learned (70%). McLean & Company | 37
Adapt talent management programs and
onboarding to the new PM framework
Program Adapt to the new PM framework

Onboarding • Ask managers to introduce new employees to the PM framework early to set expectations and goals, schedule check-ins, etc.

Competencies • Use goals, competencies, and role expectations to inform employee readiness to move to other roles based on career paths.

Workforce Planning • Use information from regular check-ins to help inform workforce planning and to help develop employees for critical roles.

• Move toward evidence-informed performance assessments that are reflective of the whole performance period. Shifting the focus to be
Talent Assessment holistic and not just the last three months makes talent assessments more accurate and better supports employee development.
• Link PM to the high-potential program and 9-box assessments.
• Ensure succession decisions include the information gathered in check-ins. This is a valuable source of insight into employee interest in and
readiness for new roles and can be leveraged to make succession planning more effective. For example, in a modern PM framework,
employee aspirations should be reviewed in formal check-ins, and this can inform succession planning.
Succession Planning • If developing a high potential for a key role, include aspiration discussions as part of check-ins to help with succession planning.
• Organizationally, review and selection processes for succession planning and high-potential programs need to be linked to the PM approach
through ratings or some other form of assessment.

McLean & Company Insight of organizations say the link between performance management
70% and other talent decisions, such as promotions and succession
Performance management in isolation is not going to move the dial for the
planning, needs to be improved (Mercer, 2019).
organization’s overall performance. Ensure the PM framework is woven into talent
management across the organization to ensure your hard work pays off. McLean & Company | 38
Develop best-practice promotion guidelines
Use McLean & Company’s Create an Inclusive Promotion Process
and Policy job aid and Promotion Policy to develop best-practice
guidelines for managers.

• Outline promotion triggers: Define what a promotion is and isn’t and what
triggers a promotion.

• Set promotion parameters: Set the parameters for what results in a

promotion to increase transparency, inclusion, and manage employee
expectations.

• Salary administration guidelines: Outline salary administration guidelines

for promotions that are aligned with the compensation philosophy.

Identify areas where there is potential for barriers to inclusion in

your organization’s promotion policy and include initiatives to
combat barriers.

McLean & Company | 39

 Identify how the PM framework can help reinforce Culture
organizational culture

Goal Setting Competencies Feedback & Crowdsourced

Ratings
Coaching Feedback

Help managers set employee Build core values into Train managers to coach and When used for recognition, Be sure that ratings do not
goals that build the desired competencies. give feedback to employees CSF can be a powerful way to work against organizational
culture. about how they exhibit core reinforce the desired culture. values and culture.
• E.g. if you want to create a values.
• E.g. if you want to culture that embraces • E.g. recognize employees • E.g. if collaboration is a
encourage a result- oriented diversity, a core competency • E.g. a senior manager may who go above and beyond focus value but ratings
culture, setting goals for leaders could be the coach a junior manager on for their team using an determine individual merit
clarifies and creates a ability to facilitate respectful how to build trust with internal platform visible to increases, this may
shared understanding of discussions among diverse direct reports. all employees. encourage unhealthy
outcomes that define employees. competition rather than
performance success. collaboration.

Adapt the PM process to build the desired culture.

Process • E.g. if being supportive is a focus value, increasing the frequency of formal check-ins and informal
meetings will make it easier for managers to support employees in their path to success.
McLean & Company | 40
Step 4 After completing this step you will
have:
Communicate and train to manage change • Determined a rollout plan.

• Created an action and

communication plan.

• Prepared to address pushback.

• Outlined accountabilities for HR,

1. Prepare to 2. Design your managers, and employees.
change your PM PM framework
framework • Trained managers and employees
on the new PM framework.

• Remeasured to confirm goals have

been met.

3. Align related 4. Communicate

HR processes and train to
manage change

McLean
Info-Tech & Company
Research Group | 41
Decide how to roll out the new PM framework

Pilot Rollout*
Phased Rollout Implement the framework to a select group (e.g.
Big Bang Rollout Implement the framework by starting with a cohort department, business unit) to measure impact and
of managers and direct reports, then slowly expand improve the PM framework before rolling it out to the
Implement the program in a single instance entire organization.
to other managers.
and discontinue previous PM framework.
Advantages: Advantages:.
Advantages:
• Increased sense of support and buy-in from • Demonstrated success of the pilot group can assist in
• Shorter implementation time. getting buy-in.
managers.
• Everyone in the organization is on the • Ability to create change champions from the pilot group
• Greater amount of time to ensure necessary
same framework at the same time. who have experienced the new framework and see the
coaching and feedback training for managers in
Disadvantages: smaller cohorts. benefits.
• High risk: disruptive to business. Disadvantages: • Managers who have participated are better equipped to
• Requires pristine change management • Lengthy process; however, quicker than a pilot act as mentors, coaches, or facilitators.
tactics. rollout. • Can pilot with HR before rolling out to the organization.
• If the rollout takes several years, the Disadvantages:
environment may change and the rationale and • Lengthy process – it takes time to ensure that the
desired outcomes for the change may no longer change has been fully worked through.
be relevant. • If the rollout takes several years, the environment may
change and the rationale and desired outcomes for the
change may no longer be relevant.
*McLean & Company’s Recommended Method
McLean & Company | 42
Create an action and communication plan for the
new PM framework
Many initiatives don’t achieve their full potential because focus is placed on process changes rather than people and
communications. Plan out your communication strategy with a timeline prior to communicating the changes.
Communication
• Use multiple touchpoints to ensure all aspects of the change are communicated clearly. Communicate big changes up-front and
reiterate the more granular pieces when most relevant.
• Follow these steps in the communication process to ensure that your message has a high impact on employees and managers.
Document in the HR Action
1. Communicate to key stakeholders first. They are a critical part of the PM framework, and you will need their support as and Communication Plan.
change agents. Incorporate their feedback before communicating to all employees
2. Have stakeholders or representatives from the business communicate the new framework to all employees.
3. Communicate the specifics of the change with managers to explain the reasoning behind the changes.
4. Communicate the changes with employees.

Timing See McLean & Company’s

• Introduce the framework two to three months before implementation. Ensure it’s communicated prior to the start of the Navigate Change blueprint
performance cycle to give employees time to adjust to the new framework and ask questions. for more information on
• Avoid sharing the change with employees during the height of the PA process. Fresh news of an upcoming change may be a implementing and
sustaining change.
deterrent to employees and managers to complete their performance appraisals.
• Use the advance time after the announcement to ensure all supporting tools and systems are finalized.
McLean & Company | 43
Prepare to address common objections to changes
in the PM framework
Common Objections Reframe the objection
Managers may have too many direct reports for impactful discussions on a quarterly basis. Evaluate PM
“ There’s not enough time in the day to have
frequent discussions with all direct reports.
”
delegation to a senior member of the team in conjunction with the manager. See the Performance
Management Catalog for Wide Spans of Control for more information on PM in those contexts.

“ Employees don’t listen to the feedback or

I’m uncomfortable giving difficult feedback.
”
Managers may need to address the way that they give feedback to employees. Review feedback
frameworks in the Feedback and Coaching Guide that showcase useful approaches.

Make it clear that having conversations, coaching, and developing employees is a key expectation of their
“ This isn’t part of my role as a manager.
” role.

“ Iperformance
don’t need people management skills for The new PM framework is more than just ratings – feedback and coaching play a huge role. Use manager
management.
” training to showcase the importance of the people skills aspect of their role.

“ AllhowofammyIemployees are excellent performers, Reassure managers that you will be providing training to help them. Highlight the calibration meetings that
supposed to rate them differently?
” will give them more information on how their employees are performing.

Individual and departmental goals may change more frequently based on department, but they should
“ How can we set individual/department
always be aligned with the organization’s goals, which change less frequently. Encourage managers and
goals if the goals change all the time?
” employees to review and adjust goals during check-ins.
McLean & Company | 44
Confirm accountabilities for HR, managers, and
employees

HR Managers Employees

• Support and communicate the new PM framework. • Meet with employees according to selected • Own the process by requesting and/or booking
• Provide information and resources on the new PM cadence. formal check-ins and informal meetings with
framework. • Set expectations and goals with their their manager. Refer to the assigned
employees. responsibility for booking these meetings
• Coach managers on how to apply ratings (if used).
determined in Step 2.
• Check in frequently with employees and managers on • Provide more feedback and coaching.
the new framework. • Work closely with their manager to understand
• Calibrate expectations with employees and
expectations of the role.
• Audit the process after the first quarter and at least performance appraisals with other
once each year following implementation to solicit managers. • Identify goals that support organizational goals.
feedback (using a pulse survey or informal check-ins). • Apply ratings fairly (if used). • Discuss accomplishments, progress against
• Plan and facilitate calibration meetings. goals, and challenges.
• Identify, develop, and appropriately manage
• Track progress to ensure the new PM framework is poor performance in a timely manner. • Integrate feedback and coaching tips to improve
addressing pain points. their performance.
• Identify and appropriately recognize
• Update framework and supporting tools as needed. exceptional performance. • Complete self-assessments.

McLean & Company | 45

Communicate the new PM framework and train
managers

Communicate Train

Customize McLean & Company’s Modern Performance Use McLean & Company’s Equip Managers to Have
Management Presentation Template to introduce the new Effective Performance Appraisal Discussions for manager
PM framework to managers and employees. This training. This training covers:
presentation template covers:
• The customized building blocks of the new PM framework • Navigating the performance review process
• The PM process
• Setting clear, specific goals
• The performance review template
• The goal-setting model and the competencies that are • Communicating expected competencies
included in the PM framework
• Feedback and coaching, including CSF (if used) • Providing clear feedback
• The rating scale (if used)
• Evaluating the performance of employees
• Common biases

McLean & Company | 46

Gather and monitor data to verify the positive
impact of changes to the PM framework
Refer to the goals and metrics set up at the beginning of this project. Collect data and gather employee feedback on
areas such as:

Engagement Productivity Frequent Feedback

• Increased satisfaction with the performance • Higher overall revenue. • Increased number of conversations overall
management framework. o Increased sales calls per rep. between management and employees.
• Increased overall engagement score. o Increased number of tickets completed • Improved engagement scores related to
o Employees whose managers provide high by help desk. increased satisfaction with feedback from
quality feedback are nearly 3.4x more likely to managers.
o Consistent product quality by line
be engaged (McLean & Company workers. • Reduced regrettable turnover and turnover
Engagement Database, 2020; N=79,273). costs.

McLean & Company Insight HR needs to check in periodically to ensure that:

Don’t assume the PM process is working as you planned. Take the time • Meetings are taking place and are generating useful results.
to check in with both managers and employees to find out whether • Reviews by managers and self-assessments by employees are being completed.
they’re actually meeting regularly, how performance conversations are • There is consistency among managers’ ratings, and ratings reflect true
going, and if they need any additional support. performance.
• Documentation of the above is being completed.

McLean & Company | 47

Key Insights

There is no one-size-fits-all approach to PM; the

Modern PM should not be seen as a failure to Goals define what to do, while competencies tell
process may vary not only across industries, but
become agile but rather as a successful employees how to do it. By directly shaping how
even within different departments or employee
alternative to traditional PM. Agile PM is not the work gets done, competencies play an important
segments in the same organization. Allow
ultimate goal for all organizations, as it may not role in reinforcing organizational culture and
freedom for these groups to adapt the PM
suit all contexts. values and performance.
process to best fit their particular context.

Feedback and coaching is the most important

Getting rid of ratings won’t necessarily make PM Performance management in isolation is not
mandatory building block of the PM framework.
more fair; evaluating performance inherently going to move the dial for the organization’s
Yet, managers are not going to improve on their
involves judgement on the part of managers, and overall performance. Ensure the PM framework is
own. Build feedback and coaching capability
this can introduce biases. Ensure that standards woven into talent management across the
through training and resources and follow up to
for evaluation are fair and applied consistently. organization to ensure your hard work pays off.
discuss challenges.

For information on how McLean & Company can help, see the Workshop: Modernize Performance Management overview. McLean & Company | 48
Leverage Optimize the HR Department for Success
Feedback to
Drive Align HR initiatives with business strategy and stakeholder needs.

Performance Improve HR’s core functions and drive project success.

Improve Employee Experience and HR Processes

Identify impactful initiatives using Ensure recruiting and onboarding programs are effective by surveying new employees.

our diagnostic programs to collect

Move beyond measuring job satisfaction with a comprehensive view of engagement.
feedback from employees,
stakeholders, and the HR team. Evolve to leader-driven engagement with a real-time dashboard and results.

Understand why people leave the organization in order to proactively retain top talent.

Empower employees with a holistic view of their performance to prioritize development.

View our diagnostic programs for more information.

McLean & Company | 49

About
McLean & Company is a research and advisory firm providing practical solutions to human resources
challenges via executable research, tools, and advice that have a clear and measurable impact on your
business. Corporate Headquarters
Our research team uses a rigorous research process to identify and hone best practices; create practical 345 Ridout Street North
tools, templates, and policies; and supply clients with the insight and guidance of our subject matter
experts. McLean & Company applies this proven research approach to both human resources and London, Ontario, N6A 2N8
company management teams, creating complete solutions that supply the tools you need to get each
project done right.

McLean & Company analysts bring real-world experience to the table and apply their knowledge to solving
the challenges faced by our clients on a daily basis. This process is informed by the participation of a 888 Yonge Street
client base that includes over 30,000 members and by an evolving client-driven research agenda.
Toronto, Ontario, M4W 2J2
McLean & Company is a division of Info-Tech Research Group Inc.

North America: 1-888-670-8889 International: +1-519-936-2659

McLean & Company | 50

McLean & Company offers various levels
of support to best suit your needs

Guided
DIY Toolkit Implementation Workshop Consulting
“Our team has already made this “Our team knows that we need to fix “We need to hit the ground “Our team does not have the time or
critical project a priority, and we a process, but we need assistance running and get this project the knowledge to take this project
have the time and capability, but to determine where to focus. Some kicked off immediately. Our team on. We need assistance through the
some guidance along the way check-ins along the way would help has the ability to take this over entirety of this project.”
would be helpful.” keep us on track.” once we get a framework and
strategy in place.”

Diagnostic and consistent frameworks are used throughout all four options.

McLean & Company | 51

Research Contributors
and Experts
Andrew Bartlow Jeremy Janzen Kerry Pletch
Head of HR CHRO Manager, Talent & Organizational Development
Waypoint Homes HyLife City of Guelph

Sharon Bishop Suzanne Lahache Michele Vogt

Director, Workforce Planning and Development GM of Human Resource Preparedness Acting Vice President, People and Safety
Regina Qu’Appelle Health Region Mohawk Council of Kahnawà:ke Regina Qu’Appelle Health Region

Jan Hills Ashley Lundquist Minna Whitman

Partner and Author VP of People Manager of Learning and Employee Development
Head, Heart + Brain Consultancy LeadPages HRG Worldwide

Melanie Jacobs Maura Parda Sarah Wilson

Manager, Regional Learning Manager Executive Coach and Organizational Change Strategist Director, Talent Acquisition, Performance Management
Sappi Southern Africa 512 Leadership Group & Principal Staff Officer

Cindy James Megan Paterson

Director – Organizational Development Vice President of HR
Elbit Systems of America Kinaxis
McLean & Company | 52
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