How to use feedback to drive organizational success
How to use feedback to drive organizational success
VP of HCM STRATEGY & IP
Director of content
Feedback as key to organizational progress
The most competitive economy in history
âBersin by Deloitte
â Ram Charan
World-renowned Business Advisor
Employee Feedback Statistics
14.9% lower turnover rates in companies that implement regular employee feedback.
2X as likely to be actively disengaged if employees are ignored by their manager.
65% of employees said they wanted more feedback
58% of managers think they give enough.
These statistics show that there is clearly something wrong with the way feedback is done in most companies.
According to research, employees crave feedback.
What they found was that by roughly a three to one margin, employees believe that constructive feedback does more to improve their performance than positive feedback.
is the Key
Annual performance review is way too long to wait for feedback. Feedback needs to be frequent and sincere.
Examples Of Companies Switching From Annual To More Frequent Feedback
âThe hope was to create a performance culture that would help to improve both individual and team performance and ultimately drive business results. The emphasis would now be on frequent feedback and coaching and to evaluate the here and now, not just the results.â
- Karen Crandall, Former Director of Compensation
âWe donât wait until the annual performance review to give feedback. You never want to have a surprise. This is especially important with millennial workers, who really want feedback. They want to always be learning, always be growing, and theyâre looking for that constant feedback. Itâs not that theyâre looking for constant praise, but rather they want to keep score. They want to know how theyâre doing.â
- Jeff Lawson, CEO
âThe check-in is far more informal. While the check-in process is regular and on-going, it starts at the beginning of the year, since itâs tied to people having yearly expectations.â
- Donna Morris, SVP
Deloitte, Accenture, and even GE are now starting to move away from annual reviews to more frequent feedback.
Instead of annual reviews, have regular one-on-oneâs (most people do it monthly)
One On One Meetings
1 hour meeting once a month to discuss informally anything on an employeeâs mind.
This is NOT a performance update. This is a conversation that is about making the employee happier and more productive at work.
Companies Swear By This Process
ââ¦if Tim doesnât meet with each one of his employees in the next 24 hours, I will have no choice but to fire him and to fire you. Are we clear?â
â Ben Horowitz, The Hard Things About Hard Things, pg. 102
Many well known companies including HubSpot, Moz, and Atlassian, use them, too.
How To Run Your One-On-One
10-minutes: Informal catch up
20-minutes: Employeeâs agenda items
20-minutes: Managerâs notes and questions
10-minutes: Action plan and next steps
Action Plan Is Most Important
What can I hold you accountable for next time we talk?
What can I be accountable to you for the next time we talk?
Culture is the story we tell ourselves, and each other, about where we work.
Corporate Culture and Performance
John Kotter & James Heskett
Increased revenues four times faster
Had 7 times higher job creation rates
Increased stock prices 12 times faster
Had 750 percent higher profits
Grew net income by 700 percent
Doubled customer satisfactionÂ
Organizations that made culture an integral part of their strategyâ¦
Feedback: part of your narrative
How welcome is it?
How is it received?
How often is it acted on?
How often is it solicited?
How often is it given?
How is it given?
1. Partner with managers
2. To create a feedback culture, create a culture for feedback
3. Ask, ask some more, then keep asking
4. Reward and recognize feedback
5. Cultivate trust
6. Architect feedback opportunities
Tips for getting started
âLike any habit, implementing an employee feedback system may take a bit of time to get used to. But the payoff is bigâempowered employees, increased productivity and extraordinary innovation.â
-David Hassell, CEO
Collecting Feedback with Surveys
Avoid Leading Words
Consider this example:
âWe recently updated our intranet to be easier to navigate and more user-friendly. What do you think of it?â
Instead, keep your question neutral and simply ask âWhat are your thoughts on the new intranet?â
The more questions you ask, the less time your respondents spend, on average, answering each question.
- SurveyMonkey Research https://www.surveymonkey.com/blog/2011/02/14/survey_completion_times/
Ask Open Ended Questions
The easiest thing to do is to ask closed questions like multiple choice and opinion scales, but youâll get the most value from open-ended questions that let employees speak their minds freely.
Only Ask Whatâs Necessary
Be relentless in removing questions from your survey. Only ask whatâs absolutely necessary.
Any distractions or other noise will only dilute the quality of what youâre really looking for.
Always start with the goal in mind.
Unfortunately, thereâs so much fear in most cultures that we need to give employees an anonymous voice to express whatâs on their mind.
Feedback and Performance
of performance reviews end up decreasing employee performance
-â Psychological Bulletin
of executives believe their current program doesnât result in performance or engagement. â Deloitte
of companies are now reconsidering their performance strategy. â Bersin
of companies surveyed think performance reviews are worth their time â Deloitte
of HR executives say yearly evaluations are useful. â Deloitte
of workers are dissatisfied with their performance reviews. â Deloitte
of employees with highest performance scores arenât actually the highest performers â CEB
-5% improvement in performance is all managers believe will be generated in the process. â CEB
âYou rate me on âMarcus makes decisions quicklyâ and your rating reveals simply whether I make decisions more quickly than you do.
If you rate me on âMarcus is a good listenerâ and we learn only whether I am a better listener than you.
All of these questions are akin to you rating me on height. Whether you perceive me as short or tall, depends on how short or tall you are."
Idiosyncratic Rater Effect
Harvard Business Review
Random measurement error
Idiosyncratic rater effect
Faulty memory syndrome
Quantification of past behaviors is ineffective
We tend to let it stand for more than it should
Negative psychological impact (defensive and demotivating)
Too many variables
Too often rater is unqualified (doesnât understand job)
Shown to decrease morale
Found to create infighting
Leads to âgamingâ and politics
Too much focus on past, not enough on future
Takes too much time
âPerformance appraisals are perhaps the most reviled standard practice in all of management.â
- Peter Cappelli
Wharton School of Management
âWhy we love to hate HRâ HBR
â98% percent of human resources executives say yearly evaluations arenât useful. So why are companies still doing them?â
- Anne Fisher
70% of companies are now reconsidering their performance strategy - Bersin
The Right Way
Increase communication touch points
Signal to Noise Ratio
Increase Cycle Time
Donât wait till here
Catch them here
Ask Simple Questions
1.Â GivenÂ whatÂ IÂ knowÂ ofÂ thisÂ personâsÂ performance,Â andÂ ifÂ itÂ wereÂ myÂ money,Â IÂ wouldÂ awardÂ thisÂ personÂ theÂ highestÂ possibleÂ compensationÂ increaseÂ andÂ bonusÂ [measuresÂ overallÂ performanceÂ andÂ uniqueÂ valueÂ toÂ theÂ organizationÂ onÂ aÂ five-point scale from âStrongly agreeâ to âstrongly disagreeâ].
2.Â GivenÂ whatÂ IÂ knowÂ ofÂ thisÂ personâsÂ performance,Â IÂ wouldÂ alwaysÂ
wantÂ himÂ orÂ herÂ onÂ myÂ teamÂ [measuresÂ abilityÂ toÂ workÂ wellÂ withÂ
othersÂ onÂ theÂ five-pointÂ scale].
3.Â ThisÂ personÂ isÂ atÂ riskÂ forÂ lowÂ performanceÂ [identifiesÂ problemsÂ thatÂ mightÂ harmÂ theÂ customerÂ orÂ theÂ teamÂ onÂ aÂ yes-or-noÂ basis].
4.Â ThisÂ personÂ isÂ readyÂ forÂ promotionÂ todayÂ [measuresÂ potentialÂ onÂ aÂ yes-or-noÂ basis].
Performance Questions Now Asked By Deloitte
The secret to having employees listen to your feedback is whether or not they respect you.
Respect is earned, incredibly hard to get, and requires authenticity.
You could have the exact same thing said by two different people with two completely different effects.
Focus On The Issue, Not The Person
Example of what not to do:
âI really donât like your writing style. Your posts are too short and they add little value to our readers.â
This isnât constructive feedback, itâs a personal attack.
What you should say instead:
âBased on research Iâve seen,blog posts with more than 2,500 words tend to perform better. Maybe we could try to make our posts a little bit longer?
You can use that extra length to go way deeper into detail, which should add more value to our readers. That would be awesome!â
Make Your Feedback Specific
Example of what not to do:
âOverall, good job on the presentation but I think it could have been better.
This is so vague. What was wrong with it? Plus, just because you didnât like it, does it necessarily mean it was bad? How could it have been better?â
What you should say instead:
âHonestly, great job on the presentation! I really liked how you used animations to make your point about our Facebook marketing.
One small comment, maybe for next time, would be to put a few more statistics in there. Try and make it a bit more visual, I think it will have more of an effect.â
Make Feedback A Positive Thing
The word âfeedbackâ usually has a negative association.
The reason for this is because most of our experience with feedback has been about criticism instead of improvement.
When an employee hears their manager say âI have some feedback for youâ the first thought in their mind is âOh boy.â
As a manager, you should approach the feedback process from an angle of coaching and genuinely trying to make an employee better.
Donât Do The Feedback Sandwich
It doesn't work.
Usually, the negative feedback is buried and not specific
Employees only hear what they want. So if you say âYouâve been doing a great job, but one thing Iâd change isâ¦â, they stop listening after âyouâve been doing a great job.â
(source - A research paper, âTell Me What I did Wrong: Experts Seek and Respond to Negative Feedback,â)
"A new market has emerged: Employee feedback apps for the corporate marketplace. These tools are powerful and disruptive, and they have the potential to redefine how we manage our organizations."
-Bersin, by Deloitte
Our environments are in a constant state of change
Organizations that evolve, survive
Feedback loops are the key to evolution
3 Fundamental Truths
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