Harvard Case - Reinventing Performance Management at Deloitte (A)
"Reinventing Performance Management at Deloitte (A)" Harvard business case study is written by Francesca Gino, Paul Green Jr., Bradley R. Staats. It deals with the challenges in the field of Negotiation. The case study is 14 page(s) long and it was first published on : Jun 4, 2018
The case study focuses on Deloitte's efforts to reinvent its performance management system. The old system was based on a traditional annual review process, which was seen as being too bureaucratic and subjective. Deloitte wanted to create a new system that was more objective, transparent, and focused on development.
3. Analysis of the Case Study
The case study provides a detailed analysis of Deloitte's old performance management system and the challenges that it faced. The analysis shows that the old system was not effective in motivating employees or identifying and developing talent.The case study also provides an overview of the new performance management system that Deloitte implemented. The new system is based on the principles of outcomes, continuous feedback, development, and transparency.
4. Recommendaations
The case study recommends that Deloitte implement the new performance management system that is based on the following principles:- Focus on outcomes: The new system should focus on measuring employee performance based on the outcomes they achieve, rather than on their inputs or activities.
- Continuous feedback: Employees should receive regular feedback on their performance, so that they can make adjustments as needed.
- Development: The new system should be used to identify and develop employee talent.
- Transparency: The new system should be transparent, so that employees understand how their performance is being evaluated.
5. Basis of Recommendaations
The recommendations are based on the following considerations:- Core competencies and consistency with mission: The new performance management system is consistent with Deloitte's core competencies and mission. Deloitte is a professional services firm that provides audit, tax, consulting, and financial advisory services. The new system will help Deloitte to attract and retain top talent, and to deliver high-quality services to its clients.
- External customers and internal clients: The new performance management system will benefit both Deloitte's external customers and its internal clients. External customers will benefit from the improved quality of services that Deloitte provides. Internal clients will benefit from the increased transparency and fairness of the new system.
- Competitors: Deloitte's competitors are also implementing new performance management systems. Deloitte needs to implement a new system in order to stay competitive.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even,payback)' The new performance management system is expected to have a positive impact on Deloitte's financial performance. The system is expected to improve employee productivity and retention, and to reduce the cost of recruiting and training new employees.
- Are all assumptions explicitly stated (e.g., needs, technology trends)' The assumptions that are used to develop the recommendations are explicitly stated in the case study. The assumptions include the following:
- Employees are motivated by outcomes.
- Continuous feedback is essential for employee development.
- Development is essential for employee retention.
- Transparency is essential for employee trust.
6. Conclusion
The case study concludes that Deloitte's new performance management system is a significant improvement over the old system. The new system is more objective, transparent, and focused on development. The system is expected to have a positive impact on Deloitte's financial performance and on its ability to attract and retain top talent.7. Discussion
There are a number of other alternatives that Deloitte could have considered, such as:- Keeping the old performance management system. This would have been the easiest option, but it would not have addressed the challenges that Deloitte was facing.
- Implementing a new performance management system that was not based on the principles of outcomes, continuous feedback, development, and transparency. This would have been a less effective option than the new system that Deloitte implemented.
The main risks associated with the new performance management system are:
- Employees may not be motivated by the new system. This is a risk that Deloitte can mitigate by providing employees with clear and regular feedback on their performance.
- The new system may be too complex or bureaucratic. This is a risk that Deloitte can mitigate by making the system as simple and user-friendly as possible.
8. Next Steps
Deloitte should take the following steps to implement the new performance management system:- Communicate the new system to employees. Deloitte should communicate the new system to employees in a clear and concise way. Employees should understand the purpose of the new system, how it will be used to evaluate their performance, and what they can do to improve their performance.
- Train managers on the new system. Deloitte should train managers on the new system so that they can effectively use it to evaluate employee performance. Managers should understand the principles of the new system, how to provide feedback to employees, and how to use the system to identify and develop employee talent.
- Implement the new system. Deloitte should implement the new system in a phased approach. This will allow Deloitte to identify and address any problems with the system before it is fully implemented.
- Monitor the new system. Deloitte should monitor the new system to ensure that it is meeting its objectives. Deloitte should collect feedback from employees and managers on the system and make adjustments as needed.
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