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0109-9271-HAYG Lemaire Executive Human Resource Program The Promise of Performance Management Hay Group Boston The Current Challenge of Performance Management The HR process— Is completely unrelated to other key business processes Is dreaded by managers and employees alike Does not result in any meaningful feedback Does not differentiate performance or pay Is a focus for only one or two days—or hours—per year The Promise of Performance Management Imagine a system that could— Increase the likelihood that your strategy is effectively executed Harness and direct the 10–60 minutes a day of discretionary effort that every one of your employees has Rationalize and focus the number of goals that anyone in your organization has Improve the decisive dialogue that occurs in your organization Reward performance in a way that it is motivating and engages people Differentiate performance in ways that make line managers feel good about their decisions Improving Performance Management Improves Business Results Human Resource Management Practices Drive Profitability and Productivity Improving Performance Management Improves Business Results Strategy Execution Matters to Shareholders Thirty-five percent of an institutional investor’s valuation of a company is attributable to nonfinancial information that gauges the ability of the management team to deliver results: Strategy Execution: Can management make tough decisions and seize opportunities quickly? Management Credibility: Does the company keep its commitments? Strategy Quality: Is management’s vision of the future likely to optimize value creation in a volatile, globalized, and connected economy? Innovativeness: How readily does this company adapt? Attracting and Retaining Talent: Is turnover higher or lower than key competitors? Do new hires surpass leavers in skills and experience? Management Experience: What skills and experiences does the management team bring to the table? Compensation: Do compensation policies suppor
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