Published on March 16, 2016
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7. #TMwebinar Sponsored by Lauren Dixon Associate Editor Talent Management magazine Reframing Performance Management Conversa6ons: AIGs Transforma6on Story
8. #TMwebinar Sponsored by Julia Smith Global Head of People Excellence AIG Reframing Performance Management Conversa6ons: AIGs Transforma6on Story
9. Partnering for Success Inspiring Great Performance at AIG Our Journey How we got here The Details How it works Volunteer Community How our employees are leading the change
10. 1010 Speaker Julia Smith Head of People Excellence, AIG
11. 1111 Contents § Our Journey – How we got here § Details – How it works § Volunteer Community – How our employees are leading the change
12. 1212 § Global financial crisis § AIG under tremendous public scrutiny § Urgent need to demonstrate to shareholders that we could differentiate performance § Implemented a Relative Performance Ranking (RPR) system Our story begins … The Good The Bad The Ugly Demonstrated to our shareholders our ability to differentiate pay by performance In some cases, it was the first time an employee got honest feedback on their performance Focus on “paper & process” Lack of manager ownership (“HR made me do it”) Enabled bad behavior by only measuring the “what” Negative impact on employee moral
13. 1313 § Began by listening to employees – Conducted virtual focus groups – ThinkTank.net – Employees at every level – Employees in every location § Employees shared ideas on how to make AIG a better place to work – Inspired to do their best work – Real time feedback and constructive coaching – Transformative development opportunities A deep belief that there was a better way
14. 1414 § Researched practices at hundreds of companies – What are you doing? – Why are you doing that? – How is it working out for you? § Worked closely with Danny Kahneman – Nobel Prize Winning Behavioral Economist – Outside HR § Took what we learned and conducted a mid-year pilot on over 3,000 leaders to test our ideas § And finally, we refined and implemented across our global population, at all levels of the organization We wanted to learn from the best and find the right solution for AIG
15. 1515 § Over 90% of employees said useful for performing better § 86% said useful for improving relationship with their manager The results
16. 1616 Our solution is grounded in research & neuroscience Two Distinct Areas of the Brain
17. 1717 Concept is simple How can we identify and shut down all of the triggers of ‘fight or flight’ so that we can open the door to trust and collaboration
18. 1818 § Holistic view of employee § Multiple perspectives: – Employee Self Review – Upward Feedback – Matrix Manager Review – Direct Manager Review § Evaluate both the “what” and the “how” High level overview
19. 1919 The “What” Employees given total freedom to shine.
20. 2020 The “What” Three additional questions: Employees encouraged to share their accomplishments outside of specific goals.
21. 2121 The “What” § The manager evaluates the employee on TWO things: 1. The employee’s performance on his/her own goals 2. If the employee contributed to the achievement of goals outside his/her own area of responsibility § Recognizes that the most important things that we accomplish at AIG; we accomplish as teams Reward collaboration. Discourage competition.
22. Identified ‘18 Behaviors that Matter’ at AIG 22 The “How” … able to anticipate problems … able to get things done in the organization … an effective leader … applied the right level of detail … articulate and clear … collaborative and helpful … energetic and engaged … focused in stressful situations … focused on what matters most … generous in sharing credit … good at building relationships … open to new ways of doing things … reliable in meeting commitments … respected by clients … supportive of diversity … the source of many good ideas … thoughtful and decisive … willing to admit mistakes 1. Frame in the positive 2. Use everyday language 3. Reinforce AIG values 4. Let evolve
23. 23 The “How” Extreme rating scales make decisions easy Step 1: Rate
24. 24 The “How” Three simple decisions are much easier than one hard one (rate, review, prioritize) Step 2: Review Step 3: Prioritize
25. 25 It’s All About The Conversation Conversation guide is generated by system to lead both manager and employee through forward looking, constructive conversation. Available in advance so employee has time to absorb the feedback and is ready for a collaborative dialog.
26. 26 It’s All About The Conversation Conversational excellence training for both managers and employees
27. 2727 Volunteer Community 1,200 (and growing) Use ‘grassroots’ to spread the message
28. 2828 Volunteer Community Let employees (and not HR) tell the story
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3/16/16 2:00 pm to 3/16/16 3:00 pm EDT Reframing Performance Management Conversations: AIGs Transformation Story ... Client Community ...
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