Performance Management To Value Management – Transformation of mindset is the need of hour!!!


HR fraternity is grappling today with the “Up Coming of” or should I say “Happening Of” the Disruption at Work Place, Work Environment and eventually the Work Force. This disruption is not only about the technology that is changing the way we work or the skills that organizations need to survive the onslaught of the 4th Industrial revolution but it is changing the very nature of the society which we form today. Words like VUCA, Millennial, GIG economy, Instant Gratification are doing rounds in every article, research, corporate strategy or professional conversations. One common thread that connects each of these is – How do we get the best Performance from the people that we have and How do we ensure they stay with us.

I think the answer lies in something very fundamental to Human nature – the intrinsic need to know that “I Am Valued”. Today any performance management model must focus on empowering its people to go all out to create value.

Investment in human capital must be a priority and the first step is to show “Value” to the “Individual” specially your Top performers. So how do we do it? Our Performance Management system should transform from “process” to “Value Management with tangible outcome”.

Let me share some best practices we follow in Huawei. Fundamentally “Value Management” or Non-monetary incentives are to encourage the intrinsic motivation whereas “Value Distribution” or Monetary incentives should reward on the value created. Value Management should be used to create value for a high potential or high performing talent. As new age economy is pushing for specialization and boundaries between work and personal life are getting redefined, “Individualized Experience” is the key. Top talent needs to feel that they are unique and hold a special place in the ecosystem. Some of the ways to achieve this are:

Fast Growth

By encouraging Fast Track promotions for exceptional performers to enable them take larger responsibility based on capability and not just seniority. Find people who are able to lead teams to seize a strategic high ground. Fast-track promotions are something we can do to help the younger generation rise, thus allowing for a rising positive force. And make sure it is known to all to encourage healthy competition.

High Visibility

To encourage them to take-on high value assignments in areas of interest with a senior leader sponsoring the project which gives them access to resources and support. Regular face time with

Leader is the key here and not just project assignment. Encourage them to attend and represent organization at industry forums and professional bodies to gain knowledge, confidence and build a network.

Value Recognition

Providing opportunities to aim for an Aspirational award and not just any other award. Reward at a larger platform to generate a sense of pride and make it inspirational for other employees. Share their success story via social media platforms and encourage them to share their experience with others. Make them feel special.

Thought Mentoring

For someone who is an expert with established credentials but new to your organization. Make a senior leader preferably seasoned in the organization to act as a lighthouse showing the path to success in the organization maze. A new person needs time & orientation to understand company values and work practices specially the answer to question – Why does it work in this way here?

The other aspect is “Monetary Incentives” that should focus to significantly differentiate Total Rewards to create value for top performers. As Dan Pink says, “getting the issue of money off the table” and then “giving people lots of autonomy” enables intrinsic motivation. In my organization our Long Term Incentive mechanism is based on a concept of “wealth sharing” which increases with every passing year of excellent performance with both yearly dividends and appreciation in total value. Even performance bonus is based on “the more you contribute the more you get”. In my experience across organizations, C&B models end up as “one size fits all approach” whereas we must strive to differentiate rewards and not be limited by averages across company. Best people need to see and appreciate how we reward them differently than the rest and that’s what sets them to continue to be the best.

It’s proven through numerous researches that top 10-20% of the people in any organization are the torch bearers of Innovation and Creativity while 60-70% of them drive it towards delivery excellence. So as organization its imperative for us to enable them see their Value thus helping them create value for the organization. This can happen when we all enable the Transformation of mindset of our leaders & managers from Performance Management to Value Management.


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