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WHITEPAPER

Performance Management

The Steps to Building a High-Performance Culture

SUCCESSFACTORS / WHITEPAPER THE STEPS TO BUILDING A HIGH-PERFORMANCE CULTURE

The Steps to Building a High-Performance Culture
Changing the way an organization operates so that employees see how their actions have direct impact on the results of the business is far more challenging than simply linkingbonus and merit increases to achievement of specific tasks. This white paper will get you started on the path to a high performance culture by laying out the process in a few steps and discussing several best practices.

The Process: How to Build a High-Performance Culture
Step 1: Getting Started Does your organization view appraisals as a once or twice a year “event?” If so, changing thisperception is the first thing that needs to happen. Research shows that when conducted as stand-alone events rather than part of an ongoing process, even the best goal setting and appraisal processes are ineffective in driving a highperformance culture.1 Second, building a high-performance culture must start at the top. In their cornerstone book, Corporate Culture and Performance, Harvard BusinessSchool professors John Kotter and James Heskett remind us that not one single effort at culture change has ever been successful starting at the bottom. Thus, in order to succeed in creating a high-performance culture, the leadership of your organization must not only want the change, but be prepared to invest the time and money in the planning technology needed to support the initiative. Step 2:Define Where You Are Before you can set about creating a high-performance culture, you have to define exactly what a highperformance culture looks like for your own specific organization. To do this, it’s important to take a very careful look at where you stand today. This will help you identify what is working so you can make sure to carry these attributes forward as you begin to map out competenciesand performance drivers. Here are questions you can use to frame your “current state” examination: • What performance management processes and tools exist today? • What competency models (if any) are in place? • Is performance management currently integrated with other processes (e.g. learning, recruiting, compensation, and succession planning)? • What challenges exist within the organization(e.g. high turnover, skills/leadership gaps, competitive challenges, etc.)? • What is the current state of employee morale? Is there an atmosphere of trust and urgency throughout the organization? • Do employees take appropriate risks, are they directly accountable for results, and are they encouraged to set and achieve stretch goals?
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Essential Guide to Performance Management Practices,Leighanne Levensaler, Bersin & Associates, October 2008.

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SUCCESSFACTORS / WHITEPAPER THE STEPS TO BUILDING A HIGH-PERFORMANCE CULTURE

• What does your organization do really well today (e.g. communications, behaviors, knowledge and best practices that contribute to the profitability and competitiveness of your organization)? Organizations that do a good job with goal alignment orcompetency management, for example, want to ensure that these core strengths are built into the new performance and talent management program. Step 3: Define Where You Want to Be and Identify Gaps Before you can develop a high-performance workforce that is aligned with corporate objectives and goals, you must define what those objectives and goals are. Taking the time to do this makes the differencebetween a performance management project and a high-performance strategy. Also remember that a high-performance culture is not just focused on HR outcomes, but also business objectives. That’s why it is critical to involve the entire business in the planning process, including managers and employees. In particular, the leadership must be actively engaged in articulating strategic business visions,...