accenture performance management case study

Exploring the Accenture Performance Management Changes

Professional services giant Accenture had a relatable dilemma in 2014. The Accenture performance management process was broken. Accenture created the process to help employees achieve top performance. Instead, the process was slowing everybody down.

Then 2015 rolled around. It was then that Accenture overhauled its old methods for evaluating employee performance.

Here’s the story of how a large global organization transformed how it evaluates employee performance. HR folks can use this Accenture Performance Management case study as a reference for refreshing their own processes.

Need a more customizeable performance management system for your organization? Learn More

Accenture’s Old Performance Management Process

‍ Accenture  has 700,000+ employees, and offices in over 200+ cities and 49 countries. Before 2015, Accenture conducted annual performance reviews. Like many of its competitors, Accenture also determined and ranked employee performance with a bell curve. 

The bell curve approach had flaws. Accenture only recognized a specific percentage as ‘top performers’ with high quantitative scores . The underperformers with low scores appeared at the tail ends of the distribution. The mean of the curve showed the average score of Accenture’s employees.

Accenture wanted to set the right objectives for its people. The company started with five main goals. Then the list grew to 15. It then expanded to 20, as then-CEO Pierre Nanterme told the Washington Post . 

Measuring performance became complicated. The process created bureaucracy and was more of a hindrance than a help. The performance review process wasn’t motivational or evaluative. It was nothing more than a long list of metrics and objectives. 

Why Accenture Needed a Change

Nanterme saw the consulting industry start to shift from ideas to outcomes. Clients expected more than a roadmap. They wanted a commitment to business results. 

Accenture needed a new approach to be competitive and differentiate itself. Changing performance reviews to focus on outcomes was mission-critical.

There was also the issue of time. The management research firm CEB found that the average manager spends more than 200 hours per year on performance reviews. Managers spend time in training sessions, filling out forms, and delivering employee evaluations.

“Employees that do best in performance management systems tend to be the employees that are the most narcissistic and self-promoting ,” said Brian Kropp , CEB’s practice leader. “Those aren’t necessarily the employees you need to be the best organization going forward.”

Streamline performance management and save time with PerformYard. Learn More

Accenture’s New Performance Management Process

In 2015, Nanterme announced plans for a “massive revolution” for about 90% of its internal operations. The focus shifted to evaluating each employee in their specific role. This would be different than using a distribution curve that measured an employee in Washington the same way they’d measure an employee in Asia.

Accenture also wanted to get away from the prior method of gauging employees’ contributions long after they happened. The company would now measure employees more often and provide more real-time feedback.

PerformYard helps organizations build real-time feedback into performance management. Learn More

The company eliminated the bell curve approach and the annual review process. Managers started giving employees timely feedback on an ongoing basis. The company also implemented an internal app to help with relaying continuous feedback. 

Accenture Removes the Annual Review

Accenture’s new way of evaluating employee management is more agile and immediate.

“Performance is an ongoing activity,” says Nanterme. “It’s every day, after any client interaction or business interaction, or corporate interaction. It’s much more fluid,”

Nanterme expands on this, “People want to know on an ongoing basis, am I doing right? Am I moving in the right direction? Do you think I’m progressing? Nobody’s going to wait for an annual cycle to get that feedback. It’s all about instant performance management.”.

What Can HR Pros Learn From Accenture Performance Management

Accenture restructured its performance review process to measure employees on an individual basis. If your organization appraises performance with a distribution curve, it’s time to sunset the process. The distribution curve is generalized and ineffective. It doesn’t give employees the information they need to achieve their potential.  

Consider eliminating annual performance reviews as Accenture did. Immediate, ongoing feedback cycles will arm employees with the knowledge they need to succeed. They can adjust, maintain the status quo, highlight where they need support, or consider new approaches.

Accenture made the mistake of cramming too many metrics and goals into reviews. You should start with a few key objectives. Align with your employee on these goals and establish how you will measure them. Software like PerformYard helps you track goals and show up-to-date data.

The tools to streamline your performance management process.

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Report on the Performance Management: A Brief Study of Accenture's Case Study

Accenture has recently made a big decision of ditching all the performance management reviews that it has been taking over the last few years. The company has decided to remove the performance management reviewing model approach from its business operations and processes. On one hand, some experts think that this is a most effective move taken by the company. On the other hand, some critics think that removing the performance management reviews would definitely affect the overall financial status of the company. This report has been written in order to investigate whether this decision would be beneficial for the company or not, and also for the future financial status of the company. Many relevant resources and earlier similar examples like Adobe have been analyzed to come to a conclusion for the decision made by Accenture. Finally, some suggestions are provided for how the company can improve its employee performance after removing the performance reviewing approach. These suggestions mainly depend upon the removal of some of the drawbacks of the performance management review approach by the implementation of ‘check-in’ approach.

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April 14, 2016

Personalized Performance Management is Essential to Meet the Needs of the Workforce of the Future, Finds New Accenture Strategy Research

89 Percent of Employees Believe Their Performance Would Significantly Improve with Changes to Performance Management

NEW YORK; April 14, 2016 – Today’s performance reviews are becoming irrelevant, according to a new study by Accenture (NYSE: ACN). The Accenture Strategy study finds that 77 percent of business leaders and employees believe that a personalized performance management approach should be mandatory to meet the needs of the workforce of the future . However, only one third of organizations (34 percent) have moved away from more traditional annual performance management.

The Accenture Strategy report, Is Performance Management Performing?, shows that while 94 percent of workforce leaders believe performance management improves business performance, only 39 percent of them think their current practices help to achieve their organization’s business objectives. Workforces are demanding action: three-quarters (73 percent) of respondents say that their employers should change their performance management practices. On a personal level, almost two thirds (65 percent) of employees do not believe performance ratings accurately and objectively reflect their performance, and 58 percent of them say that the use of ratings creates a negative experience for everyone except the few at the top. However, dropping current approaches entirely may not be the answer. The vast majority of both leaders (92 percent) and employees (89 percent) believe traditional rankings and ratings should have some role in determining rewards in the future. “As the workforce becomes more diverse, organizations need to treat their employees as individually as they treat their customers,” said Deborah Brecher , managing director, Accenture Strategy . “Performance management needs to be radically modernized to suit the needs of the workforce of the future.”

There is a widespread desire for transparency. Seventy-nine percent of leaders (and 69 percent of employees) accept that making performance management transparent to employees is expected and necessary in this era of open information sharing. However, only 32 percent of leaders and 27 percent of employees indicate that they have experienced an increase in the openness of performance management. The trend points towards employees having a greater appetite for sharing information. Three quarters (74 percent) of employees discuss details of their salary and performance evaluations with colleagues, while 60 percent share details of their salary and opinions about their leaders on public social sites. What’s more, 51 percent of employees would be comfortable if their own salary information was visible to their colleagues.

“The expectation to access and share information extends from the consumer world to the workplace, and employers can’t ignore this when it comes to performance management,” said David Smith , senior managing director, Accenture Strategy . “Social media, crowdsourcing and other techniques must become part of the reinvention of performance management. They can provide true transparency, and support the real-time coaching and personal conversations expected by today’s workforce.” Digital technologies have the potential to transform performance management Workforces recognize that technology will have an important part in modernizing performance management. The majority of respondents are positive about the potential impact of performance tracking technology, although leaders are consistently more optimistic than employees. Sixty-eight percent of leaders and 53 percent of employees are comfortable with technology tracking their performance at work. Furthermore, 78 percent of leaders and 64 percent of employees say performance tracking technologies will change the future of performance management for the better. Big organizations can learn from their smaller counterparts The Accenture Strategy report shows that employees at larger organizations are less satisfied with performance management than peers at smaller organizations. Additionally, smaller organizations report more changes to performance management practices over the past five years and are more eager to see further change (85 percent versus 66 percent). Smaller organizations are also more likely to be using crowdsourced feedback and experimenting with new technologies. Prescriptions for Revitalized Performance Accenture Strategy’s recommendations for organizations that want to improve their performance management approaches, include:

• Help supervisors provide constructive conversations and real-time coaching. Conversations must be forward looking and focused on building strengths rather than correcting weaknesses.
• Embrace simplicity and transparency. In place of time-consuming competency assessments, and ratings and rankings, modern performance management must be simple in order to improve organizational agility.
• Personalize performance management across the workforce. Organizations are increasingly customizing coaching and feedback, the goal-setting process and types of rewards and compensation based on the needs of each individual employee or segments of the workforce.
• Clearly define high performance. High numbers of workers feel performance management does not accurately identify high-potential employees. Organizations need to radically rethink the very definition of high performance by taking into account collaborative work, the ability to quickly learn new skills, as well as cultural criteria they want to encourage.

Learn more at www.accenture.com/IsPerformanceManagementPerforming Follow the debate at #futureworkforce . Methodology Methodology: From December 2015 to January 2016 Accenture Strategy surveyed 1,050 leaders and 1,050 employees from 12 industries, in 11 countries covering: Asia-Pacific, Europe, Latin America, and North America. Our objective was to understand how performance management needs to be refined and updated to better support next-generation work practices, as organizations transform into digital, collaborative, networked businesses that need to attract and retain a new generation of workers. The term leaders is defined as respondents in a variety of roles at all levels with supervisory experience over teams and/or groups. Additionally, small organizations are defined as those with 100-499 employees and large organizations are those with greater than 500 employees. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com . Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, visit www.accenture.com/strategy # # # Contact: Tourang Nazari Accenture Strategy + 1 202 322 4640 [email protected]

Case Study of Accenture Human Performance Practice UK

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• Marcus Powell  

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Accenture is a global management consulting, technology services and outsourcing company, with net revenues of US$19.70 billion for the fiscal year ending August 2007. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance organisations.

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Powell, M. (2009). Case Study of Accenture Human Performance Practice UK. In: Blass, E. (eds) Talent Management. Palgrave Macmillan, London. https://doi.org/10.1057/9780230233522_4

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The Performance Management Revolution

• Peter Cappelli

Hated by bosses and subordinates alike, traditional performance appraisals have been abandoned by more than a third of U.S. companies. The annual review’s biggest limitation, the authors argue, is its emphasis on holding employees accountable for what they did last year, at the expense of improving performance now and in the future. That’s why many organizations are moving to more-frequent, development-focused conversations between managers and employees.

The authors explain how performance management has evolved over the decades and why current thinking has shifted: (1) Today’s tight labor market creates pressure to keep employees happy and groom them for advancement. (2) The rapidly changing business environment requires agility, which argues for regular check-ins with employees. (3) Prioritizing improvement over accountability promotes teamwork.

Some companies worry that going numberless may make it harder to align individual and organizational goals, award merit raises, identify poor performers, and counter claims of discrimination—though traditional appraisals haven’t solved those problems, either. Other firms are trying hybrid approaches—for example, giving employees performance ratings on multiple dimensions, coupled with regular development feedback.

The focus is shifting from accountability to learning.

Idea in Brief

The problem.

By emphasizing individual accountability for past results, traditional appraisals give short shrift to improving current performance and developing talent for the future. That can hinder long-term competitiveness.

The Solution

To better support employee development, many organizations are dropping or radically changing their annual review systems in favor of giving people less formal, more frequent feedback that follows the natural cycle of work.

The Outlook

This shift isn’t just a fad—real business needs are driving it. Support at the top is critical, though. Some firms that have struggled to go entirely without ratings are trying a “third way”: assigning multiple ratings several times a year to encourage employees’ growth.

When Brian Jensen told his audience of HR executives that Colorcon wasn’t bothering with annual reviews anymore, they were appalled. This was in 2002, during his tenure as the drugmaker’s head of global human resources. In his presentation at the Wharton School, Jensen explained that Colorcon had found a more effective way of reinforcing desired behaviors and managing performance: Supervisors were giving people instant feedback, tying it to individuals’ own goals, and handing out small weekly bonuses to employees they saw doing good things.

• Peter Cappelli is the George W. Taylor Professor of Management at the Wharton School and the director of its Center for Human Resources. He is the author of several books, including Our Least Important Asset: Why the Relentless Focus on Finance and Accounting Is Bad for Business and Employees (Oxford University Press, 2023).
• AT Anna Tavis is a clinical associate professor of human capital management at New York University and the Perspectives editor at People + Strategy, a journal for HR executives.

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In big move, Accenture will get rid of annual performance reviews and rankings

As of September, one of the largest companies in the world will do all of its employees and managers an enormous favor: It will get rid of the annual performance review.

Accenture CEO Pierre Nanterme told The Washington Post that the professional services firm, which employs hundreds of thousands of workers in cities around the globe, has been quietly preparing for this “massive revolution” in its internal operations.

“Imagine, for a company of 330,000 people, changing the performance management process—it’s huge,” Nanterme said. “We’re going to get rid of probably 90 percent of what we did in the past.”

The firm will disband rankings and the once-a-year evaluation process starting in fiscal year 2016, which for Accenture begins this September. It will implement a more fluid system, in which employees receive timely feedback from their managers on an ongoing basis following assignments.

Accenture is joining a small but prominent list of major corporations that have had enough with the forced rankings, the time-consuming paperwork and the frustration engendered among managers and employees alike. Six percent of Fortune 500 companies have gotten rid of rankings, according to management research firm CEB.

These companies say their own research, as well as outside studies, ultimately convinced them that all the time, money and effort spent didn't ultimately accomplish their main goal — to drive better performance among employees.

In March, the consulting and accounting giant Deloitte announced that it was piloting a new program in which, like at Accenture, rankings would disappear and the evaluation process would unfold incrementally throughout the year. Deloitte is also experimenting with using only four simple questions in its reviews, two of which simply require yes or no answers.

[ Read the full interview with Accenture's CEO where he breaks the news of the decision ]

Microsoft did away with its rankings nearly two years ago, attracting particular attention since it had long evangelized about the merits of its system that judged employees against each other. Adobe, Gap and Medtronic have also transformed their performance-review process.

“All this terminology of rankings—forcing rankings along some distribution curve or whatever—we’re done with that,” Nanterme said of Accenture's decision. “We’re going to evaluate you in your role, not vis à vis someone else who might work in Washington, who might work in Bangalore. It’s irrelevant. It should be about you.”

Though many major companies still haven’t taken the leap, most are aware that their current systems are flawed. CEB found that 95 percent of managers are dissatisfied with the way their companies conduct performance reviews, and nearly 90 percent of HR leaders say the process doesn’t even yield accurate information.

“Employees that do best in performance management systems tend to be the employees that are the most narcissistic and self-promoting,” said Brian Kropp, the HR practice leader for CEB. “Those aren’t necessarily the employees you need to be the best organization going forward.”

[ Unilever CEO says he's 'ashamed' of his pay and has company's 'simplest job' ]

Brain research has shown that even employees who get positive reviews experience negative effects from the process. It often triggers disengagement, and constricts our openness to creativity and growth.

CEB also found that the average manager spends more than 200 hours a year on activities related to performance reviews—things like sitting in training sessions, filling out forms and delivering evaluations to employees. When you add up those hours, plus the cost of the performance-management technology itself, CEB estimates that a company of about 10,000 employees spends roughly $35 million a year to conduct reviews.

“The process is too heavy, too costly for the outcome,” Nanterme said. “And the outcome is not great.”

Interestingly, though, the decision to roll out an updated approach usually has little to do with reining in those numbers. Kropp said companies aren’t likely to save much time or money by transitioning away from their old ratings systems to a new evaluation process. Where they stand to benefit is, instead, the return on those investments. “The smartest companies are asking, how do we get the best value out of the time and money we are spending?” Kropp said.

That’s the question Accenture posed to itself. And its answer was that performance management had to change from trying to measure the value of employees’ contribution after the fact. It needed instead to regularly support and position workers to perform better in the future.

“The art of leadership is not to spend your time measuring, evaluating,” Nanterme said. “It’s all about selecting the person. And if you believe you selected the right person, then you give that person the freedom, the authority, the delegation to innovate and to lead with some very simple measure.”

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Accenture CEO explains the reason why he's overhauling performance reviews

Myers-Briggs: Does it pay to know your type?

The corporate kabuki of performance reviews

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Netflix and Accenture reappraised performance appraisals

We explore why companies like Netflix have moved away from traditional performance appraisals and look at some of the new approaches being used.

How do you go about improving performance appraisals ? The annual appraisal has long been a frustration for managers, employees, HR and, well, just about everyone involved with them. That’s why companies like Accenture, Gap, Netflix and others are trying different, and in some cases hugely innovative, approaches.Traditional appraisals are often derided as a tick-box exercise and dreaded as an inefficient, unfair and unreliable approach to appraising performance, so something had to change. And it appears that, for most organisations at least (65%), it has. So, what is it being replaced by?Our snapshot poll of HR professionals representing medium-to-large private sector companies at our recent roundtable events showed that:

• 52% run half-yearly performance reviews
• 13% run quarterly reviews and check-ins.

Of the others, a quite considerable proportion (28%) still have a single annual performance review.

Better enabling high performance

There’s not a right way to do appraisals or a particular frequency that’s best for all organisations. You need to find a process (and system) that works best for your business.It should be quick and simple to save on administration time for those involved. And it needn’t be over-complicated. At its most simple, your performance management process needs to:

• Enable tracking and measurement of performance against agreed objectives
• Create transparency around appraisals
• Make it easy to link individual performance with wider business goals
• Free up managers and their direct reports to have high-quality performance and development-focused conversations.

Doing all of the above well will go a long way to building a high-performance culture. As will having the right performance management technology – but this should facilitate rather than replace performance conversations.

What are top-performing companies doing?

– the leading business consulting firm recently moved away from an annual appraisal. In its place, they’re introducing a much more flexible approach which involves managers providing on-going feedback in real time during projects and assignments.This approach fits with employees’ demand for more regular check-ins on performance to aid their development and progression.

–this global retail giant provides another refreshing example of how to manage employee performance.They responded to employees’ fears around the traditional annual performance review and have replaced it with an altogether less formal, more conversational approach between manager and direct report.Called ‘Grow, Perform, Succeed’ this involves managers having monthly discussions with their employees, usually outside of the office environment. And, most importantly, it is treated as a conversation rather than a forced, ranked evaluation.

– this online media firm takes a radical, ‘no holds barred’ approach to performance management and it’s one that may not work for all businesses. People are encouraged to have performance conversations as a business-as-usual activity. Additionally, everyone in the company undergoes a 360-degree performance review where they’re able to provide feedback to anyone else. As a minimum requirement, they’re encouraged to do so for all of their peers and manager in their team. The belief at Netflix is that people can handle anything as long as they’re told the truth.

What else should you be doing?

If you only make one change to your performance process, make sure it is to align individual performance with your culture and strategy. It might seem like common sense, but this kind of alignment isn’t always the norm in businesses.From a strategic perspective, your senior leaders’ objectives should be cascaded down through the business. Setting clear and measurable objectives in this way will ensure clarity and alignment of goals. This, in turn, means your employees will be aware of and ‘on board’ with your goals as a business.From a cultural perspective, you need to make sure your employees are working in the right way, that they embody your cultural values and display desired behaviours. It’s important to gauge how they’re working as well as what they achieve. 360-degree feedback is a great tool for measuring this and can be a great catalyst for them embedding cultural values and desired ways of working.Doing this well will certainly improve your performance management process and should also lay the foundations for delivering sustainable high performance.

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Performance Management Case Studies: Revolutionaries and Trail Blazers

Five com­pa­nies that have led the way in set­ting new per­for­mance man­age­ment trends

Note: This blog post was updat­ed in July 2019 for accuracy.

Per­for­mance man­age­ment is an ever-evolv­ing field. The more we learn, the bet­ter we can adapt our per­for­mance man­age­ment sys­tems to make our com­pa­nies health­i­er, more moti­va­tion­al places to work. This is why it is so impor­tant to keep up with the lat­est per­for­mance man­age­ment trends . Com­pa­nies who fall behind lose out to their com­peti­tors. They also run the risk of los­ing their best per­form­ers along the way.

Since 2012 , com­pa­nies all over the world have been mov­ing away from old-fash­ioned annu­al appraisals and towards con­tin­u­ous per­for­mance man­age­ment . More than ever before, human resources exec­u­tives and line man­agers alike under­stand the human need for reg­u­lar feed­back, effec­tive coach­ing and human interaction.

A num­ber of rev­o­lu­tion­ary com­pa­nies have led the way in dra­mat­ic changes to how organ­i­sa­tions — both For­tune 500 multi­na­tion­als and SMEs — con­duct their per­for­mance reviews and moti­vate their employ­ees. In their wake, com­pa­nies the world over are adapt­ing their per­for­mance man­age­ment prac­tices and read­just­ing their once-fir­m­­ly held beliefs regard­ing per­for­mance rat­ings and annu­al per­for­mance appraisals. Here at Clear Review, we have helped over 200 organ­i­sa­tions effort­less­ly shift away from tra­di­tion­al annu­al appraisals.

Below, we have col­lat­ed five notable per­for­mance man­age­ment case stud­ies. These organ­i­sa­tions have shak­en up their exist­ing process­es and have reaped sig­nif­i­cant ben­e­fits in terms of pro­duc­tiv­i­ty, employ­ee engage­ment, morale and performance.

1 . Adobe Intro­duced Con­tin­u­ous per­for­mance Man­age­ment in Place of Per­for­mance Appraisals

Adobe was the fore­run­ner of change when they aban­doned annu­al per­for­mance appraisals back in 2012 . They felt that while they were forg­ing ahead and evolv­ing as a com­pa­ny, their per­for­mance man­age­ment sys­tem was archa­ic and inef­fec­tive. It was a waste of time and had, ulti­mate­ly become a box-tick­ing exer­cise. Adobe esti­mat­ed annu­al appraisals con­sumed 80 , 000 man­age­ment hours each year . This was the equiv­a­lent of near­ly forty full-time employ­ees work­ing year-round. Clear­ly, a change was needed.

Adobe replaced annu­al appraisals with reg­u­lar one-on-one check-ins , sup­port­ed by fre­quent feed­back  — both pos­i­tive and con­struc­tive. There are no per­for­mance rat­ings or rank­ings and they allow dif­fer­ent parts of the organ­i­sa­tion to deter­mine how fre­quent­ly they should hold check-in con­ver­sa­tions, based on their work cycles. Now that forced rank­ing has been abol­ished, employ­ees at Adobe are assessed based on how well they meet their goals . Man­agers are also trained on the nuances of giv­ing and receiv­ing feedback.

The result has been a marked increase in employ­ee engage­ment, with vol­un­tary turnover decreas­ing by 30 % since check-ins were intro­duced. This makes Adobe a per­for­mance man­age­ment case study we should all be aware of.

Take a Tour of Our Con­tin­u­ous Per­for­mance Man­age­ment Soft­ware .

2 . Deloitte Saved 2  Mil­lion Work­ing Hours per Year with Week­ly Employ­ee Check-Ins

In 2015 , Deloitte was the first big name to announce it was scrap­ping once-a-year per­for­mance reviews, 360 -degree feed­back and objec­tive cas­cad­ing. This change occurred after the com­pa­ny cal­cu­lat­ed these process­es were con­sum­ing a remark­able two mil­lion hours a year across the organisation.

Deloitte’s new per­for­mance man­age­ment process requires every team leader to check in with each team mem­ber once a week to dis­cuss near-term SMART goals and pri­or­i­ties, com­ment on recent work and pro­vide coach­ing. The check-ins are ini­ti­at­ed by the team mem­bers, rather than the team lead­ers to ensure these check-ins take place fre­quent­ly. This also serves to give employ­ees a sense of own­er­ship over their work, role and time.

These week­ly employ­ee check-ins are sup­port­ed by quar­ter­ly reviews when team lead­ers are asked to respond to four future-focused state­ments about each team mem­ber. Rather than ask­ing team lead­ers what they think of the team mem­ber — which is what tra­di­tion­al per­for­mance rat­ings do — they ask what the team leader would do with the team member.

3 . Gen­er­al Elec­tric ( GE ) Put an End to​Forced Rank­ing per­for­mance Management

Under the reign of its for­mer CEO , Jack Welsh, Gen­er­al Elec­tric was the most well-known pro­po­nent of annu­al per­for­mance rat­ings and forced dis­tri­b­u­tion curves. 

For decades, GE oper­at­ed a ​ “ rank and yank ” sys­tem, where­by employ­ees were appraised and rat­ed once a year. After­wards, the bot­tom 10 % were fired. Not exact­ly a recipe for employ­ee engage­ment! Such an envi­ron­ment is a breed­ing ground for unhealthy com­pe­ti­tion, reduced team­work and employ­ee burnout.

In 2015 , under CEO Jeff Immelt, GE announced it was replac­ing this approach with fre­quent feed­back and reg­u­lar con­ver­sa­tions called​” touch­points ” to review progress against agreed near-term goals. This new approach was sup­port­ed by an online and mobile app, sim­i­lar to our own Clear Review per­for­mance man­age­ment tool , which enables employ­ees to cap­ture progress against their goals, give their peers feed­back and also request feedback.

Man­agers will still have an annu­al sum­ma­ry with employ­ees, look­ing back at the year and set­ting goals. But this con­ver­sa­tion is more about stand­ing back and dis­cussing achieve­ments and learn­ings, and much less fraught than annu­al reviews.

4 . Accen­ture Aban­doned Rat­ings for per­for­mance Development

As of Sep­tem­ber 2015 , Accen­ture, one of the largest com­pa­nies in the world, dis­band­ed its for­mer rank­ing and once-a-year eval­u­a­tion process . Like GE , Accen­ture has decid­ed to put fre­quent feed­back and con­ver­sa­tions at the heart of its new process and focus on per­for­mance devel­op­ment, rather than per­for­mance rating.

As Accenture’s CEO , Pierre Nan­terme, stat­ed at the time ​ “ It’s huge, we’re going to get rid of prob­a­bly 90 per cent of what we did in the past.”

As Ellyn Shook, Chief HR Offi­cer at Accen­ture , stat­ed:​“Rather than tak­ing a ret­ro­spec­tive view, our peo­ple will engage in future-focused con­ver­sa­tions about their aspi­ra­tions, lead­ing to actions to help them grow and progress their careers.”

5 . Cargill Intro­duced Coach­ing Con­ver­sa­tions in Place of Annu­al Appraisals

Like Adobe, Cargill, the US food pro­duc­er and dis­trib­u­tor, start­ed to trans­form its tra­di­tion­al per­for­mance man­age­ment process­es back in 2012 , when it intro­duced ​ “ Every­day Per­for­mance Man­age­ment ”.

Cargill removed per­for­mance rat­ings and annu­al review forms and instead focused on man­agers hav­ing fre­quent, on-the-job con­ver­sa­tions and giv­ing reg­u­lar, con­struc­tive feed­back. They have made this work by:

• Reg­u­lar­ly reward­ing and recog­nis­ing man­agers who demon­strate good day-to-day per­for­mance man­age­ment practices.
• Shar­ing the expe­ri­ences and tips of their suc­cess­ful managers.
• Hold­ing teams account­able for prac­tis­ing day-to-day per­for­mance management.
• Build­ing the skills need­ed to suc­ceed at Every­day Per­for­mance Man­age­ment, includ­ing effec­tive two-way com­mu­ni­ca­tion, giv­ing feed­back, and coaching.

The out­come has been impres­sive, with 70 % of Cargill employ­ees now say­ing they feel val­ued as a result of their ongo­ing per­for­mance dis­cus­sions with their manager.

Per­for­mance Man­age­ment Lessons to Be Learned from These Per­for­mance Man­age­ment Case Studies

When we look at what these five organ­i­sa­tions have imple­ment­ed, we can see some evi­dent trends emerg­ing, which are like­ly to form the basis of per­for­mance man­age­ment for the years to come. These trends are:

• Reg­u­lar one-to-one per­for­mance con­ver­sa­tions, or ​ “ check-ins ”, ini­ti­at­ed by the employee.
• Fre­quent, in-the-moment, pos­i­tive and con­struc­tive feed­back from peers and man­agers Near-term objec­tives rather than annu­al objec­tives. Set­ting and review­ing objec­tives reg­u­lar­ly, rather than once a year.
• For­ward-look­ing per­for­mance reviews, focus­ing more on devel­op­ment and coach­ing and less on assessment.
• Drop­ping per­for­mance rat­ings .
• Per­for­mance process­es sup­port­ed by mobile-friend­­ly, online per­for­mance man­age­ment soft­ware .

Move away from annu­al appraisals to con­tin­u­ous per­for­mance management

Find out how our sim­ple, effec­tive per­for­mance man­age­ment soft­ware can help you move away from annu­al per­for­mance appraisals towards a more agile, intu­itive per­for­mance man­age­ment sys­tem. Book a free demo of Clear Review where our expert team will take you through the platform. 

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Performance Management Case Study: Fossil Group

Jocelyn Stange

February 4, 2021 | 2 minute read

In this blog, we'll share how Fossil Group evolved its performance management process and 3 simple steps.

The Evolution of Fossil's Performance Management Process

Fossil Group was using a complex, 100% paper process for performance reviews and check-ins for more than 15,000 global employees. They wanted to move toward a digital performance management strategy, but knew they needed to simplify the process first.

Fossil Group set up four traditional components that were stretched across three strategic touch points throughout the year. These touch points were supplemented with ongoing performance conversations that could be initiated by any employee, at any time.

As Fossil Group evolved its company-wide performance appro a ch , they were happy to see immediate progress.

92% of employees were participating in goal-setting reviews, setting an average of six goals per employee.

However, when they dug into the data, they found that 35% of individual goals created were misaligned or did not have an impact on the organization and its strategic priorities. They knew they needed to get better at goal alignment if they wanted to meet important business objectives.

Explore the three ways Fossil Group simplified performance management.

1. They scheduled ongoing performance conversations and continuous feedback.

Although the three formal performance touch points in place were working, Fossil Group knew teams needed to have goal conversations more frequently. They implemented informal “check-ins” that could be launched by any employee at any time.

To ensure  adequate time was made for important performance conversations and other performance related activities, Fossil Group implemented "Performance Days" — days strictly dedicated to employee performance. On these days, n o task-related meetings are scheduled, and all work is set aside for the day. Conversations between managers, employees, and teams are all centered on performance.

2. They created intuitive goal conversation templates.

Fossil Group recognized that simply having more performance conversations wasn’t enough — the conversations needed to include healthy dialogue, debate, and collaboration from managers and employees. They created 1-on-1 templates to help guide managers and employees through an effective and productive goal conversation.

Check-in templates could be customized to the needs and work of individual teams and team members. The templates helped ensure conversations were focused on creating clear, aligned, and motivating goals. 

3. They used recognition to keep performance conversations fresh.

Fossil Group wanted to bring performance conversations full circle by recognizing employee performance daily. They created recognition toolkits for managers including fun notecards, gift cards, and employee recognition tips. They  also  launched an online, peer-to-peer recognition program that generated an average of 140 recognition stories each week.

By  taking time to uncover the needs of its employees, and delegating time for managers to focus on perf ormance,  Fossil Group  was able to listen and act on employee voices and evolve their performance strategy f or  succes s .

Download our latest ebook: Making Time for Performance Management to get more tips for simplifying your performance management process.

Published February 4, 2021 | Written By Jocelyn Stange

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Evolving the Scaled Agile Framework:

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CASE STUDY: Accenture

Key accenture learnings on scaled and distributed agile delivery.

In the provided case study, Accenture shares its insights on addressing process, organization, and tool challenges, including:

• Solution misalignment between teams
• Integration of Agile with Waterfall
• Different timezones, customs, and cross-team activities
• Different DevOps tools between teams

As many companies struggle to implement Agile at scale in distributed environments, this case study describes Accenture’s experience enabling faster delivery and speed-to-market by implementing Agile programs using SAFe, along with adoption of DevOps principles. The early benefits are compelling:

Early Quantitative Benefits

• 50% improvement in merge and retrofit (based on the actual effort tracked)
• 63% improvement in software configuration management (effort to support SCM activities)
• 59% improvement in quality costs (percentage of defects attributed to SCM and deployment)
• 90% improvement in build and deployment (process and effort to raise deployment requests)

“ Enhanced SAFe processes are key to attaining solution alignment between different scrum teams. ”

“ SAFe is critical to the alignment of delivery timelines.”

Early Qualitative Benefits

• Improved demand management and traceability from portfolio through to Agile delivery teams
• Granular configuration management and traceability
• Integration with Agile life cycle tools to allow story-based, configuration management driven from meta data
• Real-time traceability of status for build and deployment
• Automated build and deployments, including “one-button deployment”
• Developer efficiencies as a consequence of improved tool interaction times and processes

Download Accenture Case Study

Many thanks to Accenture’s Mirco Hering, APAC lead for DevOps and Agile, Andrew Ball, senior manager, and Ajay Nair, APAC Agile lead for Accenture Digital, for taking the time to share their insights and learnings. Their story is an inspiration to all of us in the SAFe community. 

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A Successful Case Study on Employee Onboarding: Optimizing New Hire Integration at Accenture

Accenture, a global technology firm, faced challenges with employee retention and engagement, particularly among new hires. Recognizing the importance of an effective onboarding process, the company implemented a comprehensive and structured onboarding program aimed at improving new employee integration and satisfaction. This case study explores the strategies and outcomes of the Corporation’s revamped employee onboarding process.

In 2022, Accenture experienced a high turnover rate among new hires, with 25% of employees leaving within their first year. An internal survey revealed that many new employees felt unsupported, uninformed, and disconnected from the company’s culture. In response, the HR team at Accenture decided to overhaul the existing onboarding process, focusing on a holistic and structured approach to new employee integration.

Intervention:

The new onboarding program at Accenture consisted of the following key elements:

Pre-boarding: HR began sending new hires a welcome package two weeks before their start date. The package included company information, a personalized welcome message, and an outline of the onboarding process.

Orientation: New employees attended a full-day orientation on their first day, which covered company history, values, and organizational structure. They also received an overview of benefits, policies, and key resources.

Mentorship: Each new hire was paired with an experienced employee who acted as a mentor, providing guidance, support, and encouragement throughout the onboarding period.

Training: A tailored training plan was developed for each new employee, addressing both role-specific skills and broader company competencies.

Team Integration: New hires were invited to team-building events and departmental meetings to foster connections with colleagues and cultivate a sense of belonging.

Check-ins: HR conducted regular check-ins with new employees at the 30-, 60-, and 90-day marks to address concerns, provide feedback, and evaluate progress.

After implementing the new onboarding process, Accenture observed the following results:

Retention: The turnover rate among new hires decreased from 25% to 15% within one year.

Engagement: Employee engagement scores among new hires improved by 25%, as measured by the company’s internal engagement survey.

Time to Productivity: The average time for new hires to reach full productivity decreased from 4 months to 2.5 months.

Employee Satisfaction: The overall satisfaction rate of new employees increased from 60% to 85% according to post-onboarding surveys.

Conclusion:

Accenture revamped onboarding program resulted in significant improvements in employee retention, engagement, and satisfaction among new hires. By focusing on comprehensive and structured support, the company successfully enhanced the integration process for new employees, contributing to a more positive work environment and increased productivity. This case study demonstrates the importance of an effective onboarding process and its potential impact on overall organizational success.

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CASE STUDY BBVA

Banking on happy customers

BBVA worked with Accenture to become one of the world’s most customer-centric banks. Using digital technology to reach people where they are has helped them see massive growth.

3-MINUTE READ

International financial institution BBVA invested heavily in digital banking and realized a remarkable 117% growth in new customers in the last few years.

Continuous reinvention, BBVA knows, is the secret to happy customers. From its founding in the 19th century, it has sought to stay ahead of the times with forward-thinking innovations.

And since 2007, the bank has been giving customers experiences that delight—thanks to investments in cloud, data and artificial intelligence (AI)—helping BBVA post a profit of €8.02B in 2023, the highest earnings in its history.

BBVA launched its digital banking app in 2011 and the subsequent development of a comprehensive digital sales model has set the stage for today’s reinvention era.

Financial flex

We worked with BBVA to reinvent its digital sales capabilities and operations and consolidate its agency networks across geographies and focus on hyper-personalization to reach each individual customer.

The new digital sales model combines BBVA’s first-party data with new data sources to provide a step-by-step view of the customer journey. Employees can manage and optimize data as needed.

This allows BBVA to prioritize sales initiatives for new customers and cross-sell to existing customers. The new model also incorporates strategy and planning, paid media, search engine optimization, marketing automation, analytics, and content production for BBVA’s digital channels, such as social media, to reach individuals in customized ways.

Combining digital performance, creativity, end-to-end analytics, intelligence and strong talent, this model strengthened the human connection of local service while capturing efficiencies that can be scaled globally.

Providing a differentiated, better experience was like discovering a pot of gold.

David Puente / Global Head of Client Solutions, BBVA

The pay off

BBVA’s reinvented sales model is having a massive, positive impact—including a cost-to-income ratio reduction of 41.7%, one of the best among European banks. And more than 50 million customers are interacting with BBVA through mobile channels. Additionally, digital channels accounted for more than 79% of overall sales during the same period.

This global strategy is helping the bank expand its footprint in specific countries and regions. For instance, in Italy it enabled BBVA to attract new customers and increase sales on its website through a fully digital bank. BBVA opened in new markets in the country with a full digital value proposition that inspired 130,000 new customers to join in the first year alone—a figure which has risen to more than 450,000 in the time since.

Today, BBVA’s digital sales model and tools continue attracting and engaging customers with relevant experiences that add real value. And, most importantly, empower customers with the confidence to make financial decisions.

new customers in 2023

of those new customers were acquired through digital channels

growth in digital sales during the last four years

BBVA's reinvention

In our Built for Change podcast, BBVA's David Puente shares how the bank is succeeding with continuous reinvention.

We are making bold moves, together

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Accenture and Marriott International created a new global HR hub that delivers employee experiences as exceptional as the guest experiences that make Marriott, Marriott.

Accenture and BMW teamed up to create a new platform that uses generative AI to drive decisions across North America, accelerating productivity and experiences.

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David Cordero

Managing Director, Client Account Lead and Financial Services Lead – EMEA

Managing Director and Client Account Lead

Rodrigo Álvarez

Commerce & Sales Lead, EMEA – Accenture Song

Sylvain Weill

Data & AI Lead, EMEA – Accenture Song