The first thing Duan Dong did was to develop performance management. At present, the total number of employees of Sina has increased from more than 700 three years ago to more than 2,500 now. Every employee knows what his "seven things to open the door" are-of course, it is not "daily necessities and vinegar tea", but seven key performance management indicators (KPI), including five business indicators and two management or behavior indicators.
To Duan Dong's delight, performance management has played an important role in Sina. Every employee can prove his value in this system, and make his daily work closely linked with the overall strategic goal of the company through "seven things". Sina's human resources work has also risen from basic personnel management to strategic human resources management on this basis.
"seven things" communicate first
What is the first preparation for performance management?
First of all, the human resources department and the business department need to have good communication. Sina implemented performance management in 2000, invited a well-known consulting company to design a good plan, and implemented it for half a year, with no results. Because I had failed before, I was cautious before doing it this time and did some research. I found that the reason for the previous failure was that the process was too complicated, and it was not combined with the daily work tasks, that is, "key events", which made everyone feel like a movement and the participation was not high.
I made a small internal survey and asked some supervisors: Do you want to implement performance management? As a result, half told me that I wanted to do it, and the other half said that I didn't want to do it. I asked the latter why? They said: Our goals are changing so fast that every quarter is different. How do you track them?
I gave an example: there is a game called "The eagle catches the chicken"-why is it difficult for the eagle to catch the chicken? Because the head of the team swings and the tail swings far away, the eagle can't catch it at all. The same is true of performance management-a chicken is like a company's goal, and an eagle is like an employee. If your employees only know what to do today and this week and don't know what to do this month; If your supervisor only knows what to do this week and this month and doesn't know what to do this year-then where is the future of the company?
In the communication with the business department, I found that everyone is busy every day, but many things they do are not the priorities of the top management or the company. Personal tasks are not combined with the goals of departments and companies.
Where to start implementation?
The implementation of performance management needs the participation, understanding and recognition of business departments, and only in this way can the expected performance effect be achieved. Many companies dare not do performance management. They worry: what if the business department doesn't do it? I think the most important thing is to let them know what are the advantages of doing it and what are the disadvantages of not doing it. If not, what are the criteria for promotion and selection of personnel? What are the outstanding employees? What performance can prove it? When this is done, the company will have a clear basis for rewarding and punishing personnel.
Let's start from the beginning. At that time, the CEO and other senior executives were very supportive. Everyone at the top of the company should write "seven things" to do this quarter: including five business indicators and two management indicators. The Sina Management Committee composed of senior executives will discuss whether each person's seven things are consistent with the company's strategy and annual plan. Once determined through discussion, everyone's seven things will be decomposed into their own next level, and the next level will write seven things, which will be decomposed layer by layer until the grassroots employees.
Grassroots employees should also write seven things. They are not managers. They don't have those two management indicators, but they have related behavior indicators. For example, an employee may improve his communication skills this quarter, so he must plan how to improve it-either by attending training, seminars or internships in other departments. These seven things don't feel like performance appraisal and informal, but they are simple and practical. Most importantly, they are combined with the daily behavior of employees.
Tracking in execution
What difficulties have you encountered in the implementation process?
Probably the most difficult thing is to do "forced distribution".
We began to implement it in the second quarter of 2003, and at the beginning, we tried it in two departments-one is the operation center, which is our content department; The other is Sina Wireless, which is our largest business department. The most difficult thing for us to do performance management is to do "forced distribution". We have a basic normal distribution ratio: after performance evaluation, 5% of people are far above the standard, 10% is above the standard, 70% is up to the standard, 10% is close to the target, and 5% is far from the standard.
For the 5% far exceeding the standard, we will give him a generous bonus to help him participate in the quarterly innovation award or outstanding employee award. For those 5% employees who are far from meeting the standards, we ask them to put forward improvement plans, including what resources they want the company to provide and within what time limit. If it is rated far below 5% twice, the employee will be eliminated. We will eliminate about 7% in the whole year.
There was resistance when the top management discussed "forced distribution", and there was great resistance after the business department started to implement it. They say that everyone is working hard, and poor performance is the reason for market changes. I said, if everyone works hard and the company's performance is not good, it's the supervisor's responsibility. The supervisor didn't predict the future changes-are you willing to carry this board alone? Or do you want every employee to take responsibility?
Before the pilot of the two departments, we spent a lot of energy discussing with them: first, we must determine the key performance indicators of this department this year and every quarter. What indicators should be put in? Do these goals have anything to do with the overall goals of the company? After you decide, you should define: for example, when you say sales, what is sales? What are the qualitative criteria? Then use this standard to measure your performance every quarter. For example, if the goal is to increase sales by 20%, then you have to decide what to do according to this goal: it may be how many customers to visit and how to improve the system. The final goals are put forward after discussion with the business department.
After implementation, it is very important to track the implementation. The supervisor should summarize with employees every month, record key events and review them at the end of the month. If you don't make a monthly summary, you will find that the target has changed greatly by the end of the quarter, but it has not been pointed out and recorded during the implementation process, and the implementation effect will be discounted. At first, some supervisors' communication skills were immature, and key things were not written down. At the end of the quarter, they talked to the employees and said that the employees were not doing well. The employees' reaction would be: Why didn't you tell me at that time? Therefore, the supervisor should point out what the employee did badly in the implementation process, and let him correct it in time and record it. Let the supervisors and employees of the business department understand and operate the basic tools of performance management themselves, instead of pressing them from top to bottom.
In fact, we use key performance indicator evaluation (KPI) instead of 360-degree evaluation. For example, if the sales volume (key performance indicators) does not reach the target, no matter how well other work is done, it will still be rated as unqualified because the key performance indicators are not met. This kind of performance management is more practical for fast-growing enterprises: less personnel investment and simpler operation. Everything except the seven things is not the key, just do the key performance indicators well.
At the same time as the two departments tried it out, Sina executives also began to implement it. Performance evaluation process is the key step for the success of performance management. Every quarter, the human resources department will assist the CEO to evaluate everyone on the management Committee to see what goals were achieved last quarter. What are not ideal? How to improve next time?
After we tried it for two quarters, we began to implement it on a larger scale. At this time, a department manager who strongly rejected "compulsory distribution" offered: Can you help us start? Because he has seen the benefits of performance management.
Now the whole company has implemented performance management. And since last year, the whole performance appraisal process has been carried out through e-HR system.
How do employees react to performance management?
Many employees told me that performance management was useless at first, but now it is a good tool. This method has clear rewards and punishments, and can prove its value, instead of being busy every day without knowing what its contribution to the company is.
In addition, when determining the final 5% through "forced distribution", we have such a principle, that is, the method of rewarding individuals through evaluating teams. Firstly, the overall performance of the department is evaluated, and the normal proportion distribution is carried out among a certain scale of people. It is not that there are only five people in this group, but there should be one person in the bottom 5%. We are distributing in a department. If the department far exceeds the target, the normal distribution ratio of the whole department can be adjusted. The results of performance appraisal are the basis for rewarding and selecting outstanding employees. It's not that companies don't want to reward employees. The key is to know who is doing well and where.
For Sina, performance management also has a great significance, which is to upgrade Sina's human resource management from basic personnel management to strategic human resource management. This is a huge leap. In the past, human resources work was limited to service functions such as personnel file management and daily recruitment, which basically belonged to personnel management. Performance management makes everyone's work closely linked with the company's overall strategic objectives, and also makes human resources departments and business departments need to communicate frequently and have closer ties. A lot of human resources work is reflected by the implementation of business departments, and human resources should be willing to act as heroes behind the scenes.
"Humanized" cooperation
Performance management gives people the impression that it is more "institutionalized". While implementing this "institutionalized" measure, does Sina have anything "humanized" to match it?
Sina used to have a concept called "Pentium", but now our concept is "everything starts with you", because our focus has changed, we should pay attention to customers, and "you" is customers. For the human resources department, employees are our internal customers.
Sina is a very humanized company, and we have spent a lot of energy to solve the problem of children's nursery. We also have a nursery. From 8: 00 a.m. to 4: 00 p.m., employees can put children who have not yet reached kindergarten age here, and we have aunts to take care of them.
Sina has also set up an employee service center where employees can call for help when they encounter difficulties. We also set up psychological consultation and counseling services for employees, and regularly invite psychologists to provide counseling for employees.
How did you come up with the idea of giving psychological training to employees?
Here is another story: an employee is very capable, but we found that he was in a very bad state. He had a bad temper for a while and quarreled with his colleagues. We went to talk to him, and he said that he felt that work was meaningless and he didn't know where the meaning of life was. After further understanding, it was found that he had conflicts with his lover, and he often quarreled at home during that time, so he brought this emotion to the company.
Knowing this situation, we invited a psychological counselor to communicate with him, and the effect was obvious. He said, "I didn't know life could be like this!" " "
I once read a survey report abroad, which said that more than 70% of people's stress comes from family problems rather than work. The average age of Sina employees is 28 years old, with relatively high academic qualifications and intense work. Such people are more prone to psychological problems. So we began to establish a long-term mechanism to maintain employees' mental health.
If employees want to seek psychological counseling, they can make an appointment at the employee service center or call the psychological counselor directly. We also arrange a career seminar once a month, and invite experts to share with employees how to plan their lives.
What kind of working atmosphere does Sina want to create?
Sina's four core values are: "customer-oriented, breakthrough innovation, giving back to society and sustainable management". "Everything starts with you" is the concept of implementing the core values, that is, starting from every employee, you should use these four values to demand yourself, standardize your words and deeds, guide your work, and convey them to your colleagues and customers in a timely and appropriate manner to ensure a unified understanding and understanding of the company, and think and make decisions from the perspective of maintaining the long-term value of Sina brand everywhere.
Under these four core values, our concept of employing people is, firstly, to be competent at work, which is the requirement of the company, and secondly, to be happy at work. We want employees to do things related to their own career development.
While creating a pleasant working atmosphere, we also encourage employees' innovative behavior. For example, we have an employee forum where employees can express their opinions and put forward good opinions and suggestions. We also have a product management forum where many people often come to make suggestions. An employee of a research and development center once suggested that customer complaints can be analyzed and sorted out through the information system. We thought it was a good suggestion and rewarded him with a camera.
As long as the opinions put forward by employees are put forward in an appropriate way, we will see whether there is this problem, where is the crux and how to improve it.