Author: Tyler Peterson

RE: GE Re-Engineers Performance Reviews, Pay Practices

So General Electric is going Lean? It’s exciting to hear they have hired Eric Ries as a consultant to shake up the emphasis on Six Sigma. If you’re a Manager Tools fan some of the changes at GE simply match good management.

That’s right: It shouldn’t take 5 months to write your annual review. And yes, the annual review shouldn’t be the linch-pin in your performance management system. You should be getting regular, quick, fine-grained performance insight from your manager and your peers. See Feedback and Peer Feedback.

I chuckled a bit at the comment from Janis Semper saying, “It’s not realistic to expect perfection anymore.” Anymore? Yeah, we should always have high standards. We should be disappointed when we miss them. And managers should know their people aren’t going to be perfect.

I actually interviewed a guy that said he had a perfect track record over decades in software of always hitting every deadline with quality. Maybe it’s me, but that actually made me trust him less. Perfection requires artificiality. (See Ian Malcolm, Jurassic Park — the book, not the movie.) You can’t really hit it. And if you do, how low are your goals?

It’s great to hear GE will be considering giving incentives closer to the time of performance. No more home-runs in February that have to wait until next January for a raise — or similar.

Offering managers the ability to give their employees time off as a reward? That sounds a bit like HR officially blessing what managers are already doing for their people. But I’ve never worked there. Maybe managers really don’t feel they could do that there already.

Overall, GE’s emphasis on learning and improving faster is a great application of Lean principles, and plain old management feedback.

On a snarky note: the peer feedback via a tool sounds just like what engineers would do. “I want to tell Bob he did a great job here, and might want to change this over here. If only I had a mobile application so that I could type that up and send it to him.” Yeah, what about just briefly and respectfully chatting with Bob?

It sounds like the mobile app’s real purpose is to achieve that ever elusive holy grail of performance management: managing my boss.

That’s right, the company is encouraging employees to give feedback to their bosses via the app. And employees are reluctant to do that. Rightly so.

A good manager has a relationship with his directs that allows them to give “insights” to him. But it’s naïve to assume that all of the managers in a company have that relationship. A program that pushes all employees to speak to bosses with an expectation that they will always be heard, never subtly penalized, and that the boss will change her behavior… a bridge too far.

After facilitated group sessions to gather feedback for bosses “the group is expected to hold the manager accountable for changing his or her behavior, through regular check-ins, but it is a work in progress.”

Yeah, that’s not going to work. Not unless the process involves the boss’ boss.

A group of directs can’t manage their boss. And even if it happens once, it’s not reproducible.

If you want the state of management to improve in a company then directors have to manage their managers for it. You can’t delegate that to the individual contributors.

Just my prediction.

So, yes. Please adopt lean. Please give regular feedback, not just once a year. Please collect information on how management can change. Don’t promise that a group can change their manager on their own.