PMS Approaches with Examples

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Tips to create Company specific PMS (Performance Management System)

Various Popular PMS Approaches to Choose

When getting started with PMS (Performance Management System), the most frequently asked questions are how to choose, implement and adopt a suitable PMS. To help our customers we are glad to share various PMS approaches with examples, so that you can get started easily and implement a suitable PMS. Don't worry our Full PMS Services such as Workshops, Coaching, Training and Consulting retainership provide all these artifacts custom developed to help your organization. Moreover, we have made examples for these re-usable PMS artifacts library available inside our software application as well, to make it more convenient to adopt.
For CFRs (Conversations, Feedback and Recognition) we provide guidelines, templates and best practices including inside our Skills2Talent™ Software/Add-on modules, which will make easy to orient, train and institutionalize PMS & CFR. Most popular PMS approaches that are adopted widely across organizations are listed below;

  • OKR based PMS: "OKR" (Objectives & Key Results). Objective: Where do we want to go?, Key Result: How do we know if we are getting there? --> Checkout our OKR Stars™ Full OKR Services - OKR Examples page to know further.

  • SMART Goal based (MBO-PMS): Goals should be straightforward and state what you want to happen. MBO stands for Management by Objectives. The goal has to be specific and define clearly what you are going to do. Use action words in goal such as direct, coordinate, achieve, complete, deliver, organize, lead, develop, plan, accomplish etc.

       OKR and MBO-PMS Differences →

  • Company Core Values Alignment Based: Core values often reflect your organization's ethical standards, culture, or mission statements. Evaluating on core values reinforces the organization beliefs and ensures every employee demonstrates the same standards during the employment.

  • Job Specific & Behavioral Competency Based: Competencies in the context of Performance Management System is they are qualities that employees get rated on. Competencies can be mapped to R&R (Roles & Responsibilities) / JD (Job Description) and used as part of their development path (SMART Individual Development Plans).

  • Multiple Content Sections Based (with Weightage): Although performance reviews can be planned to include sections specific to organization's needs, the best practice performance review includes four main content sections (A, B, C and D). These contents cover objectives (SMART goal plans), core values (aligning to organization’s vision, mission, and value system), job specific competencies and behavioral competencies (approach/ indicators/ attributes/ components). The organization need to use at least one section or many/all. If any content section has "zero" weightage will be hidden from the performance management form (template) in Skills2Talent™ PMS. Each content section is given a weightage of the overall performance score with a total of 100. These content sections can be different for different group of employees as per the business need (i.e. The percentage can be different based on work groups' business requirements)..

  • Exclusively Competency Based (Mapping & Assessment): Competency Mapping is a process of identifying key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization. The mapping process includes defining Role specific Meta (Core) Competencies, Subset competencies (per Meta Competency) and mapping them along with proficiency levels (rating scale). The assessment framework can be designed as per the organization requirement such as employee and manager based competency assessments (Target Vs Actual) and thus identifying skill matrix and gaps. The assessment input can also be collected from peer members, program office and from subject matter experts (in addition to employee & manager's ratings). The Meta competencies can be given Weightages as well to differentiate must to have/optional/common competencies along with provision of evidence/references (soft copy attachments). A focussed competency based assessment helps matured organizations to address the major pain points systematically (Ref: People CMM Ver 2.0) that impact the PMS (Performance Management System) through data intelligence for decision makers and link with Learning & Development initiatives.

  • Questionnaire Based: Similar to performance conversation-based assessments, the questionnaire based assessment helps to approach differently but in a meaningful and structured manner. The questionnaire can be planned to have a comprehensive scope/purpose such as, about job, work output, role, stretch goals, agility, culture fit, feedback based, employee satisfaction, aspiration, soft skills, leadership capabilities and personality etc. To have 360° views for unbiased information, the same questionnaire can be re-framed to collect feedback from the selective target people such as matrix managers, program office, peers, cross functional team, or internal/external customers. For prioritized questionnaire, the weightage can be associated category wise and to make balanced assessment along with provision of evidence/references (soft copy attachments).

Tips to implement various PMS (Performance Management System) approaches that suits your organization

SMART Goal based MBO-PMS Approach and Examples

  • "S"MART - What is your Goal, Is this "S"pecific?: An effective SMART goal should be straightforward and state what you want to happen. It has to be specific and define what you are going to do. Use action words clearly such as direct, organize, coordinate lead, develop, plan, execute, implement, etc.
  • S"M"ART - How will you "M"easure this goal?: If you can't measure a goal, you can't manage it. Thus, choose your goals with measurable progress and establish concrete criteria for measuring the success of your SMART goal.
  • SM"A"RT - Is this goal "A"ttainable?: Your SMART goals must be within your capacity to reach. If goals are set too far out of your reach, you can't commit to achieving them. Thus, SMART goals need to stretch you slightly so you feel you can do it and it will need a real commitment from you. Success in reaching attainable goals keeps you motivated.
  • SMA"R"T - Is this goal "R"elevant?: SMART goals should be relevant. Make sure each goal is consistent with your other Goals and aligned with the goals of the organization, your manager/leader, or your department.
  • SMAR"T" - What is your "T"imeline?: Set a timeframe for the goal, such as for next week, in three months, end of the quarter. Putting an end point on your SMART goal gives you a clear target to work towards. Without a time limit, there is no urgency to start taking action when the goal is defined by you.

    Skills2Talent™ "SMART" Goals Approach or Guideline: "S": Significant/Specific/Stretching; "M": Measurable/Meaningful/Motivational; "A": Achievable/Attainable/Agreed upon/Action-driven; "R": Relevant/Realistic/Results-oriented/Rewarding; "T": Time-bound/Timely/Trackable/Tangible

    • "SMART" Goal Types & Visibility: (A) Between Manager and Report (Private & individual Goal type), (B) Role/Designation/Team/Department/Company-wide goal (Common & Cascading type; But the Results are private)

    • "SMART" Goal Category (Optional): Company Defined / Balanced Scorecard Perspectives: (A) Financial, (B) Customer, (C) Internal Business and (D) Learning & Growth

    • Sub Goal/Execution Plan/Task (Optional): The sub goal is a work break-down structure, Tactical execution plan(s), Smaller or granular goals and How to-dos. The sub goal can also be assigned with a suitable performance rating scale and weight as well.

    • Milestones (Optional): This can be used for project management linked best PMS practices such as, key milestones, deliverables along with timeline (Target Vs Actual date of completion)

    • Achievement (Optional): The Ambitious Achievement Target(s) is/are forecasted at the beginning when the goal setting is done by the reporting manager. This option is not available for an employee. Whether the goal setting is done either by employee or the manager, but the Ambitious Achievement Target adding option is available only with reporting manager. At the end of the goal plan timeframe and during its review the manager can provide the actual outcome based on the Ambitious Achievement Target(s) set in the beginning. So that both the Target Vs Achievements are shown at the same place for a better clarity. Alternatively the reporting manager can also decide to update directly the Achievements at the end of the goal plan review timeframe without having set the target at the beginning. The key is highlighting the achievements made to recognize an employee!

    • Initiative (Optional): Initiative is planned at the beginning when the goal setting is done either by the employee (sent to Manager for approval) or by the reporting manager directly assigned to an employee. So, changing the Initiatives content is possible only by whom the goal was set (in the beginning). An Initiative is a description of the work an employee do to influence a Metric/KPI. Example: If a SMART goal is the product or a service launch and a Metric shows the #days to go, an Initiative describes what an employee will do to get there, (preparation tasks, project plan, getting the budget/fund, announcements in social media etc.)

  • KPI (Key Performance Indicator) Option: Target value Vs Actual value = Completed %

  • Continuous Performance Check-ins: Ideally every week, However depending on business requirements (or) as agreed between manager and report this can be practiced. In case of Integrated Agile/Project Management Tools the check-in can be achieved automatically using REST API technology. Regular check-in process helps in more transparency and updates to stake holders on Metric/KPI status (or) % of SMART goal completion. To substantiate the data the employee can provide the evidence/references. (soft copy attachments) such as major accomplishments, milestone achievement and recognition from management/customer/manager etc.

  • Conversations (Private 1:1s with MoM): How are your SMART Goals coming along? What L&D Assistance / Career Plan (SMART Individual Development Plan) do you need? Are there any roadblocks?

  • Multi-rator Feedback (Private, Positive/Negative): (A) Between Manager & Report using private 1:1 options which include automatic e-MoM in the form of "Whats-up" Chat style. (B) Peer or a Matrix reviewer include peer level team member, project partner, cross functional colleague, indirect manager who is with dotted line reporting relationship, managing counterpart who has visibility on this particular SMART goal’s progress. In addition to employee and reporting manager's goal review, this multi-rater feedback input provision give an additional data point to manager with goal's star rating, score and justifying comments. While forwarding a goal to one or multiple peer member(s) / matrix reviewer(s), the reporting manager can choose to disclose both manager’s rating along with the self-rating given by employee. The feedback / review scope covers goal, execution plan / sub goal, milestones / targets, achievements & capabilities. Thus, their comprehensive insights on a particular goal is made as transparent to the Peer(s) / Matrix reviewer(s). In addition, the employee / manager's rating can also be disclosed to Peer(s) / Matrix reviewer(s) by using show employee / manager's rating option provided.

    Examples of SMART Goals/KRA along with Metric:

  • Product Management Goal/KRA: Achieve ______ % on time product releases; Metric: Actual Vs. projected release Date-Month-YYYY
  • Product Management Goal/KRA: Develop a product roadmap with features and delivery Dates; Metric: Roadmap developed by Date-Month-YYYY

  • Software Application Development Goal/KRA: Achieve ______% bug-free code for delivery to production; Metric: Date of completion

  • Software Application Development Goal/KRA: DevOps implementation for application "XYZ"; Metric: % of completion

  • Software Application Management Goal/KRA: Identify application development process improvement ideas by (Date-Month-YYYY); Metric: No. of of process improvement ideas

  • IT-Backup & Recovery Goal/KRA: Conduct ______(No. of) dry runs of disaster recovery plan every (time period); Metric: No. of of dry runs conducted

  • IT-Data Management Goal/KRA: Develop and communicate a data retention policy by (Date-Month-YYYY); Metric: Data retention policy developed

  • IT-Information Security Goal/KRA: Achieve 100% compliance with information security regulations; Metric: Regulation compliance rate

  • IT-Networking-Network Services Goal/KRA: Develop a comprehensive set of network operations standards, practices, metrics and reporting requirements by (Date-Month-YYYY); Metric: Network operations standards developed

  • HR-Performance Management Goal/KRA: Establish continuous performance culture in the organization as against year end appraisal approach; Metric: PMS application software with continuous PMS is introduced

  • HR-Performance Management Goal/KRA: Create SMART IDPs individual development plans with each direct report by (Date-Month-YYYY); Metric: SMART (IDPs) individual development plans created by all managers

  • HR-Performance Management Goal/KRA: Introduce 360 Degree feedback system and bring fairness and objectivity in PMS processes; Metric: 360 Feedback system implemented for the PMS review cycle

  • HR-Remote Team-WFH Management Goal/KRA: Introduce WFH (Working From Home) Policy and publish to all employees after management approval; Metric: WHF Policy published across organization

  • HR-Remote Team-WFH Management Goal/KRA: Introduce Timesheet & Project resources tracking management tool to track productivity and billing hours; Metric: Timesheet tool is implemented integrated with PMS (Performance Management System) software

  • HR-Remote Team-WFH Management Goal/KRA: Conduct business continuity plan training to all employees when working from home; Metric: Training is conducted

  • HR-Remote Team-WFH Management Goal/KRA: Publish WFH internal best practices that got recognition by management/clients to create awareness among employees ; Metric: WFH best practices published across all facilities/buildings/locations

  • Channel Sales Goal/KRA: Add ______ (No. of) new resellers by (Date-Month-YYYY); Metric: No. of of new resellers

  • Direct Sales Goal/KRA: Closing efficiency; Metric: Number of quotes to closed sales

  • Individual Sales Goal/KRA: % Achieve ______ of target for _______ (product line) by (Date-Month-YYYY); Metric: Currency__ in bookings

  • Sales Management Goal/KRA: Develop and implement a strategy to increase sales in ___________ (region) by __% by (Date-Month-YYYY); Metric: Currency__ sales increase

  • Agile Management Goal/KRA: Introduce top Agile Tools in delivery to meet clients requirements by (Date-Month-YYYY); Metric: Go-live of Agile tools achieved

  • Manufacturing-Engineering Goal/KRA: Complete new design of product by (Date-Month-YYYY), meeting cost and quality specifications; Metric: On-time completion of new design

  • Customer Service Management Goal/KRA: Develop and track customer service and performance metrics by (Date-Month-YYYY); Metric: Metrics developed and tracked

  • Customer Support Goal/KRA: Increase customer satisfaction with customer support services __% by (Date-Month-YYYY); Metric: Customer satisfaction surveys

  • Finance-Audit & Compliance Goal/KRA: Contract with an outside auditing firm to evaluate effectiveness of corporate policies by (Date-Month-YYYY); Metric: Outside auditing firm contracted

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