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NATO PERFORMANCE MANAGEMENT

Intensive HRM Training Day

Dr. Eric WelchHead, Talent Management and

Organizational DevelopmentNATO HQ

HR Vision

HR Mission

NATO International Staff attracts, retains and develops a diverse and flexible cadre of highly qualified staff who can adapt to and deliver on the evolving priorities of the Alliance.

To serve as a strategic business partner by providing efficient and effective HR leadership, expertise, products and results.

NATO IS Excellence

HR Leadership

Staff Diversity and

Culture

Efficiency and Planning

Leveraging Change

Recruit the Right Talents

Evolve Training & Development Programs

Align and Manage Performance

Create Flexible Employment Framework

Balance Retention and Rotation

Enable Internal Mobility

Increase Geographic Diversity

Advance Gender Balance

ClarifyEmployment Mix

Increase Employee Engagement

Clarify Manpower Targets and Priorities

Validate IS Grade Levels

Continue Vacancy Prioritization

Finalize NNHQ Support Staff Design

Identify New Ways of Working

Develop Training for NNHQ Transition

Prepare HR Business Processes for NNHQ

Right Peoplein the

Right Jobs

EasierHR Decisions

Engaged & Representative

Workforce

Valuefor

Money

BetterService Delivery

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Describe the profile

Identify the person

Train/ Develop the

person

Design the posts

Human Resource Management Process

Strategy and Requirements

Performance (Organizational and personal)

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Director HR

Policy and Strategy Coordination Staff Services

Management and Organizational

Support

Recruitment

Talent Management and

Organizational Development

HR Advisers

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Performance Review and Development (PRD)

• Why• History• What we’re doing• How it works• Current challenges

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Why PRD?

• Ensure managers communicate with staff about how they are performing

• Provide a basis for effective HR decision-making (e.g., step increases, contract decisions, recruitment)

• Improve and standardize management practices across the Organization

• Promote and support individual development • Help ensure strategic objectives are met

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PRD History

• 2005 – Performance Management• 2009 – discontinued electronic system• 2010 – PRD creation and launch

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PRD Ongoing Goals

• Provide information to the Organization to be able to make personnel decisions based on performance

• Motivate staff by providing appreciation for their efforts and developmental feedback tailored to their situation and aspirations

• Motivate staff by providing them explicit understanding of how their objectives and efforts are consistent with Organizational priorities

• Improve Organizational performance by providing mechanisms to deal with poor individual performance

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PRD Cycle Overview

• Starts following the successful completion of the probationary period

• Phase 1: Objective setting • Phase 2: Mid-term review • Phase 3: Annual review

– Objectives, competencies, overall performance– Calibration

• Performance Improvement Program (PIP)

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How: Phase 1: Objective setting

• Set and discuss:– the results to be achieved – how these will be measured – by when

• Consider: – competencies – development/training topics

• Review the job description

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Objectives

• Cascade• Focus on:

– Goals or projects for the year, OR – Daily operational tasks based on result areas in the job

description

What are the most important things required in the job?What is the staff member expected to achieve in these

areas?What behaviors (competencies) will the staff member

have to demonstrate?

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SMART Objectives

• Specific: clear, unambiguous, straightforward, understandable

• Measurable: assesses quantity, quality, time, budget, resources

• Agreed: the meaning of the objective is agreed between the parties

• Realistic: challenging, but within the capabilities of the staff member

• Time-related: to be completed within an agreed timescale

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Description of objective: Coordinate the XYZ Conference to include

advertising, supporting the conference center in the updating and organization of the program, liaising with Procurement on the contract, and liaising with NATO-wide and Partner contacts.

Measurement: 1. Advertise the conference in January 2013 and draft list of potential speakers for review by Divisional leadership before end-April 2013. 2. Contract signed with conference centre by June 2013. 3. Coordinate preparations and logistics leading up to Sep 2013 conference. 4. Participate in lessons-learned discussions in Oct 2013.

Description of objective: Support Head ABC in the daily management

of his office, tasks and information flow, with focus in mid-year on the transition to new structure. Manage the section’s budget.

Measurement: 1. Queries and requests are dealt with as quickly as possible taking into account all necessary aspects - to the satisfaction of customers and Head ABC. 2. In the event of conflicting priorities, launch an automatic discussion of workload impact.

Example objectives: Assistant

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Description of objective: Develop financial plans that superiors

consider useful for making decisions.

Measurement: 1. Prepare and submit financial plan for XYZ project by March 2013. 2. Revise as necessary following feedback. 3. Submit final version to committee in June 2013.

Description of objective: Engage in identifying and implementing

strategies to improve productivity.

Measurement: 1. Participate in the implementation of the ERP. 2. Following identification of the implementing consultant, coordinate efforts between Division staff and consultants for implementation. This is expected to happen in Q3 and Q4, and could require approximately 20% of the staff member’s time.

Example objectives: Officer

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How: Phase 2: Midterm Review

• Re-examination of objectives and training topics

• Confirmation of their continued relevance or need to change them, if necessary

• Opportunity for either party to raise any concerns about performance (if applicable)

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How: Phase 3: Annual Review

• Two steps: Performance review + calibration • Formal opportunity • Progress the staff member has made towards:

– their individual objectives– competencies

• Proposed rating

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Performance review - Competencies

• Behaviors that are required for successful performance in the job

• PRD assesses the extent to which a staff member demonstrated the required competencies during the performance cycle

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Ratings

• Exceptional – in a properly managed organization, only a handful of people earn this rating occasionally throughout their career

• Excellent – this rating is normally reserved in most organizations for just a small proportion of high performing staff

• Very good –this is the rating used by organizations for the significant amount of staff whose performance is clearly better than the standard one

• Good – this is the expected rating for everyone in a good organization. The most frequent one

• Fair – this is the rating used by organizations for the small amount of staff whose performance is proficient but requires improvement

• Unsatisfactory – most organizations have some unsatisfactory performers, but they are a very small minority in most cases

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Calibration

• To improve consistency and fairness • To make sure managers apply similar

standards for all staff • To eliminate bias as much as possible • To promote discussion of performance

expectations at all levels • To bring outstanding and poor performers to

the attention of top management

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Timeline

2014 cycle

January – Feb. June - July

Objective Setting 2014 Mid-term

Review

Annual Review 2014

Objective setting 2015

Annual Review 2013 Calibration

January – Feb.

FEEDBACK

FEEDBACK

You are here

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Performance Improvement Program (PIP)

• Why– To help staff get back on track – Provide framework for managers to address

performance issues • Two phases

– Preliminary phase– IP Program phase

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1. Preliminary phase

• Whenever an aspect of performance needs improving, at any time during the year

• Or after a final rating of “Fair” • Up to 180 days• Use an Improvement Monitoring Form

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2. IP Program phase

• 30-90 days (+ 30-90 day extension if needed)• After an unsuccessful Preliminary Phase, OR • After two consecutive final ratings of “Fair”,

OR • Any time a staff member is not working up to

requirements in a critical area • Action plan established • If unsuccessful, leads to termination of

contract

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“Unsatisfactory” rating in AR

Two consecutive ratings of “Fair” in AR

Unsuccessful Preliminary phaseIP Program

IP Action Plan starts

max. 1 x

Training ?

Training ?

DecisionUn-

satisfactory result

Satisfactory results

IP file closed

Back to normal performance

Extension

Ground for dismissal

Training ?

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2012 Results2011 PRD ratings (#)

2011 PRD changes (#) in cal-ibration

Exceptional; 24 Excellent; 138

Very good; 532

Good; 303

Fair; 10Unsatisfactory; 4

2012 PRD ratings (#)

No change Changes0

100200300400500600700800900

1000

2012 PRD changes (#) in cal-ibration

Exception. Excellent Very Good Good Fair Unsatisfactory0

10

20

30

40

50

60

70

2012 PRD ratings (%) by grade family

grade Agrade Bgrade Cgrade Igrade T

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Current challenges in PRD

• Expanding the PRD system NATO-wide• Developing a performance-based reward

system• Implementation of new tools and workflows

due to ERP

ME

Objectives: I will set them with my manager

Mid-term: we will review progress

Annually: I will be evaluated on my work and on ….

My Competencies

And if I want OR I need, I can further develop my Competencies………….

Competenciestraining

NATO’s Objectives & Needs

My Post Description

My Languages

My ITBecause of

different job families and work levels

Language Courses

IT Training

NATO Executive Development Programme

Pre-deployment training

ManagementDevelopment Programme

Senior Circle

Leadership Journey

My Result Areas

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Eric Welch, Ph.D.North Atlantic Treaty Organization

Welch.eric@hq.nato.int+32 (0)2 707 3750

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Staff Skills Database

• Purpose: mechanism to expand capabilities in times of crisis (Surge Capacity) using existing resources from other divisions

• What it is: individual profiles completed and maintained by staff members – focus on the skills not used in the normal job

• Where: HR Service Portal• Additional benefit: ad-hoc support for short-

term help on other projects and initiatives

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Identify skills

• Inputs: – Education and Languages– Skill Categories, Areas, and Topics– Professional Interests– References– Career Goals and Expectations (HR eyes only)– Menus and free text

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Meet needs

• Structured + Free text search options• Production of CV-type reports• Open to all staff, on request• Result: 180 unique visitors, 60 profiles, 70

searches within 30 days of implementation• Next steps: Increase usage, expand to other

NATO bodies, create Surge Capacity Pool