McChrystal Group Leadership Institute

Talent Management

Drive individual performance by aligning incentives to priorities

The 21st century working environment is a knowledge-based network, buzzing with connectivity and demanding innovation. Expectations are unknown, requirements are unpredictable, and the problem-set is always shifting—which makes assessing performance all the more difficult.

Our approach focuses on creating real-time, continuous individual development, as opposed to a single year-end event that may provide an incomplete picture of performance.

Through our unique Individual Adaptability Index assessment tool and focused mentoring sessions, we equip individuals with the skills, tools, and knowledge to become the most adaptable leaders they can be.

Contact us to learn more about our talent management services.

Backstory

Our experiences, studies, and partnerships with clients have continuously revealed gaps between the 21st century environment and 20th century operating models. The organizational chart is inadequate for visualizing how a networked business really functions. The annual strategic planning process is too static for an ever-shifting environment. Leadership models predicated on micromanaging are limiting for a world in which organizations need to act fast.

Through our research of what drives adaptability at organizational, team, and individual levels, and through our practical experience on client sites, another area where current models are woefully inadequate became apparent: performance management.

The challenges facing modern businesses are changing more rapidly than ever. Individuals and teams are required to quickly adjust to execute in uncertain conditions. Most performance management systems are designed for a stable environment that no longer exists.

Traditional performance management processes were created on the assumption that annual goal setting is an effective way to manage the business. Static forms and expectations are optimized for predictable work, but the world of predictability is long gone. Detailed, complex requirements for individuals at every level and function are often outdated by the time reviews are conducted. Once or twice yearly feedback fails to motivate behavior change at a speed that keeps pace with changing requirements. And focus on individual performance alone promotes competition, rather than teamwork and collaboration.

These observations are backed up by results. Performance management systems are an oft-bemoaned part of life in corporate America and you’d be hard-pressed to find anyone who thinks current systems drive high-levels of value.

State of Performance Management

  • A 2014 CEB study found that 95 percent of managers are dissatisfied with their performance review process. In the same study, 60 percent of employees felt that performance reviews weren’t worth their time.
  • A Deloitte study in 2014 found that only 8 percent of companies say their performance management systems drive high levels of value.
  • A 2005 Harvard Business Review study showed that the compensation packages of 70 percent of middle managers and more than 90 percent of frontline employees have no link to the success or failure of strategy implementation.
  • Glassdoor found that only 54 percent of employees recommend their company as a place to work.
  • CEB research also shows that companies on average waste about 30 percent of performance potential.

Our Approach

In order to address the gap between traditional systems and the demands of the current environment, we set out to build a 21st century performance management system that creates a culture of constant feedback to ensure individuals and teams are continuously adapting to meet emerging business needs.

Our approach centers around creating real-time, continuous individual development, as opposed to a single year-end event that may provide an incomplete picture of performance.

Effective performance management should allow leaders to both:

  1. Make effective decisions about how to compensate and organize the workforce
  2. Motivate individuals and teams to achieve and maintain high performance consistently throughout the year.

Our offerings are designed to achieve these goals in adaptable, complex organizations.

Overview of Solutions

Individual 360 assessments

A highly customizable system to provide both qualitative and quantitative data to create a holistic understanding of individual performance, and evaluate actual contributions to your organization.

Team 360 assessments

A group assessment designed to evaluate each team as a unit, and motivate for team behavior by assessing quality of interactions and ability to effectively collaborate.

Performance analysis for compensation and promotion

Aggregates robust data pulled from Individual and Team 360 reports in order to organize performance measures so that leaders can efficiently make sound decisions on compensation and promotion.

Performance training and Communication

Includes custom-designed training and guidance on the review process, evaluation criteria, and decision-making. Our process incorporates additional training to managers and leaders on fair decision-making and feedback conversations.

Coaching and mentoring

Targeted solution to enhance performance by addressing individual resistance to adapt head-on through the application of feedback loops.

McChrystal Group Leadership Institute

More Information

Learn more about our research and how we work with leaders and teams within our Leadership Institute.

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