Implementing Metrics for It Service Management

							   “Six Steps To Successfully
   Implementing Performance
    Management Software ”
                          Hosted By:
Ian Alexander
Vice President
Cytiva Software Inc.




                       Cytiva Software, Inc.
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         “ Implementing EPM Software”

   Current Landscape
    • Ten Years of Employee Performance
        Management Software (EPM)
    •   Growth of System Complexity
    •   Explosion of Vendors
    •   Key Considerations
   Six Steps
“ Implementing EPM Software”
   The Year 1995 B.E.P.M.
         “ Implementing EPM Software”
                The Year 1995 B.E.P.M.


   Performance Management Process Ineffective
    •   Typical lifespan: 3 years
   Workforce Unclear on Benefits of Evaluations
   Evaluations Inconsistent, Sporadic, Even Demoralizing
   C-Level Sees Little Value
   “Necessary Evil”
    “ Implementing EPM Software”
                       EPM to the Rescue

 1998                                            2008

Automate Process            Support Promise of   Integrate
                            Talent Management    People/Process/TM
          First Gen
        Form Focused
                                  First Gen
                                 w/modules
                                                         Second Gen
                                                        People Focused



First Generation: Electronic Forms and Workflow (Horseless Carriage)
First Generation (Plus): Add Features Like Comp, 360, Succession, etc.
Second Generation: Focus on people, user experience and interaction
   “ Implementing EPM Software”
                          EPM Explosion

  1998                         2005                  2008

                     Vendors       Adopters

       First Gen
     Form Focused

                                  First Gen
                                 w/modules             Second Gen
                                                      People Focused


2008: $409 Million Spent on EPM (Bersin)
More than 30 Vendors
Result: Complexity, slow line manager adoption, dissatisfaction
         “ Implementing EPM Software”
                The Year 2008 A.E.P.M.


   Process Automation = More Efficient Reviews
   Employees Often Forced to Use Confusing Systems in
    the Name of Data Collection/TM Process Integration
   HR Often Overwhelmed with Technology/Data Issues
    at the Expense of Strategic Outcomes
   C-Level Sees HUGE Value Beyond CYA (and are
    expecting results)
   Performance Management Process Ineffective
    •   Typical lifespan: 2 Years
     “ Implementing EPM Software”
         The Year 2008 A.E.P.M.

   OJ TRIAL ’08!
Today: EPM Data at the Heart of
Most High Value Talent Functions
   Improve
    Recruiting                      Recruiting
    Effectiveness
   Tie Pay to
    Performance
   Identify High
                      Training/
    Potential        Development
                                      EPM        Compensation
    Employees
   Focus Training
    $ Around
    Strategic                      Succession/
    Objectives                      Workforce
                                    Planning
Key Consideration: PM is a People
Process, Not a Technology Process

   Focus on People/Process                            Priority One:
                                          Recruiting
    and Choose Technology                              Get This Right
    That Supports Your
    Goals
   Take It Once Step at a  Training/
                                            EPM          Compensation
    Time                   Development


   Get PM Right Before You
    Expand
                                         Succession/
   New Gen 2 Tools                       Workforce
    Available                             Planning
“ Implementing EPM Software”
   Form Based Gen 1 Plus System
“ Implementing EPM Software”
 Employee Based Gen 2 Plus System
     “ Implementing EPM Software”
                    Six Steps

1.    Don’t Ask for a Pony
2.    Prepare Your Organization for Lasting
      Change
3.    Start Small, Roll Out in Phases
4.    Focus on the Employee-Manager
      Experience
5.    Buy Experience Not Hype
6.    Communicate Like a Marketer, Train
      Relentlessly, Adjust Accordingly
      “ Implementing EPM Software”
    Don’t Ask for a Pony – You May Just Need New
                        Socks

   Identify 2-3 key system objectives (i.e., all employees
    complete annual goals, all reviews completed on time)
    and evaluate feature “requirements” against those
    desired outcomes
   Allow managers and employees to use the system. Use
    feedback to discover what features were core to their
    needs
   Advanced functions such as metrics, dashboards, or gap
    analysis require at least a year, and often two years of
    consistent and reliable performance data to deliver value
        “ Implementing EPM Software”
    Prepare Your Organization for Lasting Change


   Engage with senior executives early to define key business metrics
    such as reduced costs, or improved customer service scores, and
    clearly demonstrate how these metrics will be tracked, reported on,
    and achieved
   Develop a communication and training plan to clearly communicate
    the changes that are coming and explain WIIFU (what’s in it for US).
   Identify resources beyond IT and HR. Set specific roles and
    deliverables for others in the organization, including resources to
    address the myriad of change management issues
   Don’t be opposed to fielding questions, complaints, push-back and
    excuses for why things won’t work
        “ Implementing EPM Software”
               Start Small, Roll Out in Phases

   Roll out functionality in phases which can be monitored and
    adjusted, and expect the full solution implementation to take months,
    not weeks
   Consider starting with a business unit or location as a pilot group.
    Pick disciplined, motivated leader who values performance
    management and will champion the system
   Focus initial efforts on a few key outcomes (i.e., reviews completed
    on time, or all employees receiving a review) and measure results.
    Then expand feature implementation or enterprise-wide utilization.
    Extra features get discounted or ignored because their value is
    neither established nor understood by users
        “ Implementing EPM Software”
     Focus on the Employee-Manager Experience


   Median tenure of U.S. workers ages 25 to 34
    is 2.9 years (BLS)
   Employers will replace upwards of 60% of their staff
    over the next 3 years (National Institute of Business Management)
   Cost of replacing a typical professional: 1.5 X salary
    (SHRM/ASTD)
   A company of 250 employees could spend upwards of
    $11M
         “ Implementing EPM Software”
     Focus on the Employee-Manager Experience


   Employees Quit Managers- Not the Company
   Focus On Employee/Manager Interaction Over Back
    End Functionality
   Design Your Process to:
       Provide employees insight into expectation and measurement
       Give visibility to employees’ contribution to organizational objectives
       Include/encourage regular face-to-face time for career aspirations and
        personal development
       Provide tools for tracking performance, feedback and providing
        coaching
       Include peer, self and manager feedback
       Make evaluations a two-way dialog
    “ Implementing EPM Software”
              Buy Experience Not Hype
   More vendors = more choice/better products
   Who are you buying from?
      Experience/domain expertise (developers, product
       managers, sales reps, executives, etc)
      Gen 1-plus or Gen 2?

   How hands-on will vendor be?
      Longer, phased roll outs mean need for more support from
       vendor
      Will you be a key customer or one of thousands with an
       800 support number
   Avoid buzz words like web 2.0, tag clouds, spinning baseball
    cards, social networking
       “ Implementing EPM Software”
Communicate Like a Marketer, Train Relentlessly,
             Adjust Accordingly

   Selection/Implementation Just the First Step
      Sell the benefits of using the system in term of WIIFU
       – what’s in it for us
      Solicit and distribute internal success stories.

      Reward employees that make the most performance
       notes, complete reviews on time, etc
      Develop a “boot-camp” to quickly get new users up to
       speed on the system
        “ Implementing EPM Software”
Communicate Like a Marketer, Train Relentlessly,
             Adjust Accordingly


   Selection/Implementation Just the First Step
       Provide regular “feature-focused” training to allow
        those in need to dive into areas of interest and get the
        most out of their experience
       Create a forum to elicit feedback from users
       Communicate feature changes, upgrades, and
        system maintenance times well in advance and
        provide specifics relating to new feature training or
        down time
       Be willing to adjust the process
     “ Implementing EPM Software”
                    Six Steps

1.    Don’t Ask for a Pony
2.    Prepare Your Organization for Lasting
      Change
3.    Start Small, Roll Out in Phases
4.    Focus on the Employee-Manager
      Experience
5.    Buy Experience Not Hype
6.    Communicate Like a Marketer, Train
      Relentlessly, Adjust Accordingly
Cytiva’s Free Webinar series
   • Interview Techniques and Strategies for Hiring
    Top Performers
      - 10/09/08 10-11 AM PDT
   • Retention: The Key to a Successful Recruiting
    Plan
      - 11/20/08 10-11 AM PT

  Register at:
  www.sonicrecruit.com/company/events.htm
    “ Implementing EPM Software”
Cytiva Software Inc. offers a wide variety of products and services to help
   you get the most out of your recruiting efforts.
   Talent Acquisition System
     •   Custom career sites
     •   Employee referral management
     •   Career agents
     •   Ad posting and tracking
     •   Manager self-service
     •   Contact management/Outlook integration
     •   EEO/OFCCP compliance
     •   Vendor Management Module
     •   Onboarding Module
     •   Hourly Recruiting System
   Consulting
   SonicPerform Performance Management System
To learn more contact:
David Freeman
Talent Management Solutions Consultant
877-775-0888
www.sonicrecruit.com