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January 22nd, 2010

Funny Fridays: The Real Meaning of Performance Reviews

Posted by Nathaniel Rottenberg, Community Marketing

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What do all those generic performance review phrases really mean? Probably one of life’s more important questions to answer. Courtesy of Blog Tactic, HR language translated into plain old Queen’s English:

HR: Active Socially translate English: Drinks A lot

HR: Independent Worker translate English: Nobody knows what he/she does

HR: Has Leadership Qualities translate English: Is tall or has louder voice

Read the rest of the translations in What yearly performance reviews words really mean

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January 11th, 2010

Do Amazing Things

Posted by Nathaniel Rottenberg, Community Marketing

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DoAmazingThings1-388x300I got the chance to be part of something amazing. Chris Ferdinandi, of Renegade HR, asked me to contribute to his ebook, Do Amazing Things. I was honored to be part of a project that include many leading thinkers from the HR community.

A little about Do Amazing Things:

Do Amazing Things is a collection of short, actionable ideas – things you can do this year to become a better HR professional.

The book is a great resources because it contains a diverse set of actionable ideas from leading HR thinkers. It’s licensed under creative commons so you can share it with anyone and everyone you think will benefit from it.

Enough from me, download the book! (pdf)

The Authors:

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January 5th, 2010

Balancing People and Work

Posted by Beth Steinberg, Beth Steinberg has more than 17 years of human resources experience helping leaders and companies (emerging to Fortune 500) with complex organizational and growth issues. She is currently an Organization Development Consultant living in Silicon Valley.

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Photo by James Jordan

I learned a very tough lesson about resource management pretty early in my career.

Coming from retail, I was used to the seasonal hiring and seasonal lay offs. While it was very difficult, people we hired knew the jobs were temporary and that they rarely resulted in full time employment. At my first dotcom startup, lots of hiring was done without much thought or planning. The company was growing tremendously by headcount but not by revenue. The more experienced people around me didn’t seem to worry too much, so I just went with it. Reality hit less than 6 months later and we had to lay off over 1/3 of the employee base. This huge management failing impacted me profoundly.

Too many employees can result in high fixed costs and the potential dilution of responsibilities, while too few can result in burnout and resentment. In a perfect world, human resources should align with projects and revenue growth. Adding and subtracting headcount is a very complicated issue. New products and projects can take a larger investment in people initially, but should eventually align with sales and revenue growth. When the growth does not follow, layoffs and reorganizations usually occur.

Some things to think about:

  • Know your team well enough so you can tell when they are bored or overwhelmed. If you have the right relationship, this topic should be openly discussed. Lack of challenge or burnout can result in low engagement and low productivity.
  • Be transparent about how resources are allocated in the company. The ‘req’ approval process is usually a big mystery within companies. This often makes employees think getting headcount is all about relationships and politics. Make sure employees understand the process. Educate employees on budgeting and other planning processes. This will illustrate transparency as well as serve as a way to develop employees.
  • Role your sleeves up and help. Don’t be reluctant to pitch in and help with the day to day when the workload gets too much. No line manager I know (no matter what their level) has the luxury of only doing strategic work. Ask early and often what you can do to support the team and do it.
  • Do not think a “butt in a seat” is ever the right answer. Even when you need to add resources quickly, do not rush hiring. Taking the time to find the right fit, especially cultural fit, will save you on the backside (no pun intended). Think about how you can use temporary resources or consultants to fill an urgent need and hire the best person for the permanent role. Always keep a backlog of candidates, even when you are not hiring. Building your network appropriately, can really help you when you need to ramp up.
  • Do the appropriate planning for people to resources. This is rarely a perfect process, but it can build discipline and create a structure for adding resources. Bring your team in to this process as much as possible. There is no way a few VPs can sit in a room and get this right. You need to ask first line managers, individual contributors and other people involved in doing the “real work”.

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December 9th, 2009

Performance Review: A Low Performer

Posted by Nathaniel Rottenberg, Community Marketing

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Here’s an interesting stat from Ira S. Wolfe’s post Why Performance Reviews Fail:

As recently as 1982, sixty-two percent of the value of an organization was measured by its tangible assets. By 2002, nearly eighty percent of its value shifted to intangible assets

If ever there was a time to help your employees learn and develop it’s now. The value of your company depends on it. Here’s the problem: the performance review. Performance reviews don’t deliver performance and most organizations don’t have any other method to help their employees learn and develop. Here are my top 3 reasons from Ira’s article:

3.  When not provided regularly, annual (or even less periodic) reviews can be based on most recent performance, not performance over the course of the year. The results go both ways. Employees who put on their best behavior around review time get favorable ratings and the employee who has a bad couple of weeks gets punished.

We call this the recency effect. It’s been six months since you had your last performance review with John. A few months ago you noticed that he wasn’t properly following up with clients after a meeting. You told yourself that you’d mention it to him at his next performance review. John knows that review time is coming up, so he’s really cranked up his performance in the last few weeks and now you’ve forgotten about his previous issue. How does John get the feedback he needs to improve if you only meet twice a year?

6.  Annual reviews are really justification for salary freezes or smaller than expected salary increases. The manager might downgrade an employee’s performance feeling that with a high rating comes a demand for more money. Likewise, with a high rating, the employee might feel justified in requesting more salary or benefits.

People get defensive when the question of money and promotion comes into play. They’re less likely to admit to areas of weakness if they think it’s going to affect their pay. It’s no longer about improvement and feedback, but rather about balancing a compensation budget.

11.  “I really hate doing reviews but HR says I have to – so let’s just get it over with.” Performance reviews are scheduled because you’ve been told you have to do them.

If they’re hated by both parties then how is anyone benefiting? Checking boxes and writing generic comments is a waste of time. Worst of all both manager and employee don’t get feedback.

What do you think? Do you find the performance review helpful or are they just a waste of time and money?

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October 15th, 2009

Social media drives culture change

Posted by Daniel Debow, Co-CEO

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It’s not often that CEOs are excited to hear that their product could be made obsolete.

But two weeks ago at HRTech in Chicago, David and I heard just that from one of our more prominent corporate users and we couldn’t be happier!

Of course, Rypple isn’t really going anywhere and the comment was actually good news with respect to the impact of social media on organizations. Let me explain.

HRTech is an annual trade show and conference. It’s coordinated by the dean of HR technology writers, Bill Kutik, who moderates a “Cool New Technologies” panel every year. My co-CEO, David Stein, delivered a fantastic demo of Rypple at this year’s session. The feedback from the live audience was super-positive and we got some great feedback via Rypple afterward!

One of our executive users pulled me aside for a quick conversation the day before the demo. He’s the CEO of a mid-sized professional services firm who’s been using Rypple for a year.  He wanted us to know he loved Rypple.  Awesome!

Then he said:

“I think you might have a real problem.  I’m concerned that using Rypple might make Rypple obsolete. We’ve been using it for a while now, and I’ve noticed that people are much more willing to give me feedback face-to-face.  They’re willing to talk to me — and to each other.”

To which we said:

That’s the furthest thing from a problem we can imagine! In fact, your observation of “increased feedback” is actually the goal of our service.  Using a social tool like Rypple to drive an increase in face-to-face interaction is precisely what makes Rypple so compelling.

The point is: social media is not simply narcissistic self-exposure online. When carefully and thoughtfully designed, social media can enhance real world interaction (ask anyone who’s been to a TweetUp!). We’ve worked hard to help support and encourage feedback as a social behavior in our customers’ companies because we believe it leads to learning, better execution, and success.

In fact, we’ve found that when an organization or senior executive integrates Rypple into their operation, they do so because:

  • feedback, transparency, and communication are important to them
  • there is a real commitment to continuous improvement
  • what their people think matters.

Great social apps encourage people to develop real, actual social interaction.

If introducing Rypple to a firm filled with smart, high performing individuals made them more open to giving and getting feedback and increased teamwork and collaboration, then we hope more CEOs tell us that Rypple is going to be obsolete!

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September 25th, 2009

A Feedback Routine for Everyone

Posted by Jesse Goldman, Business Development

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I read a great blog post by Chris Ferdinandi on the value of continuous communication in helping people improve:

Ongoing communication around performance (a.k.a. helping your people become rockstars) is what being a manager is all about.

Definitely!

Based on my experience, one of the most effective ways to create a routine of continuous feedback is to focus advice on a small set of topics – or even just one topic.

The best manager I ever had relentlessly mentored me on a very small set of things we had agreed were important to both our team and to my development. One of these was my ability to run a meeting.

Whether I asked for it or not, he would offer me one piece of advice every couple of weeks on what I could do to be more effective in meetings. He’d always include an example. Despite the fact that every two weeks I’d hear about “what I could do to become a better facilitator,” I never found his approach to be repetitive or cumbersome. Far from it!

I welcomed – and expected – this input as a regular part of my routine. The topic never changed but the examples and advice did, helping to continuously refine my skills in this area.

Read the rest of Chris’ post on Renegade HR.

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September 23rd, 2009

Being Bold

Posted by Daniel Debow, Co-CEO

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We’ll be bold if you’ll be.  We’re talkin’ to you, HR Technology Conference attendees…

This week, we’re prepping for HR Tech. Bill Kutik, the uber-analyst,  has selected Rypple as a “cool new technology” for the show.  Sweet!  We get to demonstrate Rypple in front of a large audience.

But, we feel a bit strange about it. You see…. the magic demo can be fraught with danger, the place where your moral compass as a vendor can get warped. Demos and other heavy forms of “push” marketing are optimized to convince buyers why their solution “could be” useful.

That’s not why we started Rypple. We wanted to be bold and build a service that real people want to use and actually find useful.  So, we’ve created a consumer oriented  product for people who happen to work in the “enterprise”.  This reduces training costs for our clients and means that our primary marketing is user recommendations.

It’s all part of a bold business model, called “Freemium“: free for many, subscription for some.   Aaron Levie, the CEO of Box.net, described Freemium’s benefits best:

[Freemium means]…if the product doesn’t solve [the actual users'] problem, they move on to something else. This forces you to create better, more usable products, and not simply build your business on aggressive and costly marketing and sales. This also means your product has to rock… If you’re not, Free users will leave and the rest certainly will never pay.

This approach has worked well. CEOs, trainers, project leaders, doctors, professors, and executives have found that Rypple delivers real results for them, their teams, and their companies.  Amazing evangelists, like John Foster, the Chief Talent Officer at IDEO,  are collaborating with other users to help us make Rypple rock even more.  And, of course, free users are converting to pay users.

Next week, we’ll be spending time with lots of HR professionals at HR Tech.  These are great, hard-working people typically responsible for tens of thousands of employees and many complex systems.  They are used to the dog-and-pony-shows of buying and deploying [gulp] Enterprise Software for others.  It can be painful and we sympathize… Heck, we’ve been there!

That’s why we’ve decided to demo to these pros at HR Tech as users, not buyers.

After all, HR pros want to find out what teammates, employees and mentors really think – just like everyone else!  They also want regular, helpful feedback so they can learn and improve.   By demo-ing to them as users they’ll see that the can try Rypple for themselves or with their teams – for free and with almost no set-up. We’ve made it simple to experience Rypple with minimal effort and red tape.  The service we’ll demo is the exact service you can use, for free, today. No vaporware!

Being bold doesn’t mean being naive.  We know what the purchasing and change cycle are like in large organizations.  But, based on our experience, we believe it’s better for everyone if there are internal champions who have experienced real benefits from Rypple before the buying process starts. That’s what freemium does.

So, HR-tech-ers…. will you be bold and “turn the future into the past“?   Will you be bold and discover useful insights you would not have otherwise learned, so you can advance your own career and make your organization more productive?

We hope so.

See you at Cool New Technologies at  HR Tech!

*****

ps: We’re glad we’re not the only ones who think this way!

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July 15th, 2009

Valid and Invalid Concerns About the Validity of 360 Feedback

Posted by Ben Dattner, a workplace consultant, an industrial and organizational psychologist, and an adjunct professor at New York University.

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360 degree feedback is an increasingly popular tool for executive coaching and leadership development. An individual evaluates him or herself along some predetermined quantitative and qualitative dimensions, providing numerical ratings for the quantitative items and comments for the qualitative ones. This feedback can then provide valuable input into the individual’s strengths and areas for professional development.

Human Resources professionals are often tasked with finding a technology provider for 360 degree feedback, which is most easily collected online and tabulated automatically. Vendors like EchoSpan and SuccessFactors specialize in online performance management and 360 feedback for formal, annual reviews sponsored by the organization. In contrast, Rypple enables feedback to be collected any time on a free, informal, ad-hoc basis, initiated by the feedback recipient him or herself. Some organizations find that testing the waters with Rypple builds interest in, and support for, the concept of bringing in a more formal system like EchoSpan or SuccessFactors.

When it comes to more formal annual reviews or 360s, HR sometimes gets asked by the executives or managers who are going to be participating in the 360 process whether the particular items being asked about the individuals who are participating have been “validated”.

While having concerns about the relevance and utility of the items being asked on a 360 is understandable, there is no need to be concerned about the “validity” of the 360 items. This is because the traditional meanings of validation:

  1. Extrapolating from a sample to an entire population (e.g. if a political poll is taken before an election, do the responses from the sample provide a valid reflection of how the entire population of voters would vote if the election were held on that particular day)
  2. Making predictions about the future (e.g. does this personality or intelligence test predict who will be successful).

… are not applicable in a 360 context.

It does, however, make sense to inquire about the utility of the 360, considering questions such as:

  • Have people who have received this kind of feedback been able to improve their leadership skills?
  • Have teams who have taken a team 360 been able to build on strengths and overcome obstacles?

Whether or not statistical analysis has been conducted on items is much less important than whether those items can catalyze thought and action. The highly popular Myers-Briggs Type Indicator (MBTI) for example, is not even reliable, much less valid, yet is still the most commonly used assessment in the workplace. As long as it is used to catalyze constructive discussions and not to select employees, the validity of the MBTI is beside the point. Similarly, Rypple’s free service is intended to encourage frequent conversations about what is going well and what could go better, outside of the framework of more  stressful and fraught annual discussions about compensation or promotions.

Sometimes, there is also a concern about whether or not there are statistical “norms” for different 360 items, and people want to know how their results compare to some normative standard. While it can be helpful to have a basis for comparison, it is very hard to draw any conclusions based on data collected at other organizations. Even within an organization, comparing the 360 results of individuals at different levels, or in different departments or roles can be problematic. Comparing the results of individuals who work at the same level, in the same department, and in the same role can be potentially useful as a basis for comparison, although data is rarely collected and analyzed at that level of specificity. More useful is an analysis of an individual’s data over time, to see whether he or she is making progress.

In conclusion, a 360 should be a starting point for individuals and teams to reflect on their performance and consider ways to improve it. Whether or not a 360 has been used elsewhere in the past, and whether or not managers in other organizations have taken the 360, are much less important than whether the questions asked, and the way in which they are asked, are relevant to the user’s needs. The only “valid” concern about a 360 is whether or not it can raise awareness and help people improve their performance. However, if there are still lingering concerns about the validity of formal, annual reviews and 360s, Rypple is always an alternative. Ideally, however, organizations can utilize both Rypple’s informal, frequent, ad-hoc feedback and more formal annual reviews or 360s.

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