Providing HR support and advice to SME across the UK since 2006
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Providing HR support and advice to SME across the UK since 2006
CASE STUDY
Our client, a key membership organisation for SME’s, had been struggling to meet its performance targets for a number of years. This has led to it consistently being in red when it came to its budgets.
The Challenge
A large contributing factor was that the organisations strategic goals were not clearly linked to any of the day-to-day tasks carried out by its employees. In addition, timelines for projects were slipping leading to a disengaged target audience who were then not interested in working with the organisation. The organisation also had no dedicated HR which it could utilise to achieve a better performance management process. HRCentral’s aim was to connect employees to the organisation’s strategic goals and hold those who were underperforming accountable.
The Solution
Phase 1: Understanding why the current system didn’t work.
HRCentral met with the CEO of the company to gain a higher-level understanding of the problems. It became clear early on that no one really understood (or liked) the way the current system within their HRIS (Human Resources Information System) had been set up.
However, the organisation still wanted to utilise this resource as a significant amount of time had already been committed to other areas of the platform.
Additionally, whilst this isn’t always possible, elements of familiarity mean the change is less scary for the people who will ultimately be managed under it.
Phase 2: What was needed from the new system
HRCentral recommended that the new performance management should include:
• The introduction of KPI’s (Key Performance Indicators).
• Incorporation of the organisation’s code of values
• An element dedicated to self-reflection and career development
Phase 3: Identifying gaps in knowledge
As none of the senior management team had ever set KPI’s, we designed a bespoke training course that focused on the fundamentals of building a good set of KPI’s. So that those lessons weren’t forgotten, part of the training included a practical exercise which resulted in a first draft of their departmental KPI’s, which were all linked to one of four strategic objectives of the company. Since there were wider issues relating to performance management, the training also included a comprehensive review of good performance management and coaching techniques.
Step 4: Working with the team to set KPI’s
In our view it was crucial that we continued to provide ongoing support to the team whilst they were working to set their KPI’s. We reviewed draft KPI’s, provided our comments working closely with each member of the team to ensure the final KPI’s would drive operational performance.
Step 5: Designing the new performance management system
The final step was to build a user-friendly performance management tool within their HRIS system. We conducted testing to make sure that the process was intuitive and developed a reference manual for everyone to use.
Step 6: Communicating the changes to the team
The introduction of KPI’s to an organisation that has never had them had the potential to result in a very negative response from the wider team. We therefore worked with the senior leadership team to craft the message which would be communicated and set out a clear process for them to follow. One of the key matters we wanted to highlight was the fact that KPI’s were not just being set for those team members at the bottom of the structure, but for everyone, including the CEO. As part of the process, we encouraged the senior leadership team to share the departmental KPI’s (for which they were responsible in achieving) with their teams so that they would know how their own KPI’s fit into those objectives.
The Result
• Clearer performance targets: These were used so that current and ongoing performance of key duties could be easily assessed. Operational KPI’s were linked to longer term strategic objectives which should drive longer term changes.
• User-friendly performance management tool that the team would want to use; a tool that helps not hinders the process.
• Succession Planning: The inclusion of longer-term career development helps to identify the set of leaders within the organisation.
• Upskilling managers: Training on good performance management techniques so that problems can be identified and acted on early.
The Conclusion
The new process has aligned the strategic goals of the organisation with the operational day to day duties that the team need to perform consistently to achieve those goals. Expectations for all are now clear and the team can see how their role fits into the larger aims of the organisation.
Businessbenefits
Enhanced Employee Engagement
Employees gained clarity on how their work contributed to the bigger picture, reducing wasted effort and increasing focus on value-driven activities.
Greater Accountability and Transparency
With clear KPI’s in place across all levels, including senior leadership, performance expectations became transparent.
More Effective Leadership and Management
Senior managers were upskilled in setting KPI’s and adopting modern performance management techniques.
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Underperforming team? Need to upskill your manager so they can conduct effective performance management sessions?
HRCentral will craft a bespoke system that can ensure you get the most out of your team.
