Maya has just been hired as the chief executive officer (CEO) to turn around Phoenix Solutions, a once-thriving tech company now struggling with declining revenues, high turnover, and employee engagement scores that are taking a nosedive. During her first week, Maya discovered that the performance management system was in shambles. Performance reviews consisted of vague feedback such as "meets expectations" with little explanation. Goals changed constantly and were often communicated through casual hallway conversations. Job descriptions have not been updated in years. Employee development was mentioned in reviews but rarely supported with resources or opportunities. Top performers received the same annual 2% raises as underperformers, leading to lower motivation and turnover.
It is clear that the organization needs to move in a new direction. Maya believes that the organization needs a new performance management plan. You are going to be a part of Maya's transformation team. As part of the team, you are going to help advance the organization from a struggling startup to an industry leader.
Read the following article: How to Build a High-Performance Culture Framework.
Then, create a PowerPoint presentation that includes an organization’s performance management plan by addressing the following:
What are the key areas of an organization’s performance management plan?
What is the importance of SMART goal setting when designing a performance management system?
What is the role of a job description in a performance management system?
How can performance management encourage employee development?
What options can companies use to reward employee performance?
Slide 3: Key Areas of an Organization's Performance Management Plan
(Addresses: What are the key areas of an organization’s performance management plan?)
A high-performance culture framework relies on three interconnected pillars:
Goal Setting & Planning (The "What"):
Defining clear, strategic objectives at the organizational, team, and individual levels.
Establishing the metrics and standards for success (using SMART).
Continuous Coaching & Feedback (The "How"):
Moving from annual reviews to ongoing conversations (check-ins).
Providing timely, constructive, and balanced feedback, focusing on behaviors.
Performance Review & Rewards (The "Why"):
Fairly assessing performance against defined goals and competencies.
Differentiating rewards (compensation, bonuses, recognition) to drive motivation and retention.
Linking performance to development planning.
Slide 4: The Importance of SMART Goal Setting (The Foundation) 🎯
(Addresses: What is the importance of SMART goal setting when designing a performance management system?)
SMART goals replace Phoenix Solutions' current vague and shifting goals with clarity and focus.
Sample Answer
Phoenix Solutions Performance Management Transformation
Slide 1: Title Slide: Rebuilding Phoenix Solutions: A High-Performance Culture
Title: Rebuilding Phoenix Solutions: A High-Performance Culture
Subtitle: A New Performance Management Plan for Growth and Engagement
Presenter: [Your Name/Transformation Team]
Date: [Current Date]
Slide 2: The Need for Change: Current State Analysis
Current Reality (The Problem):
Declining Revenues, High Turnover, and Low Engagement.
Performance Reviews: Vague ("meets expectations") and non-specific.
Goals: Constantly changing, communicated informally (hallway conversations).
Compensation: Undifferentiated 2% raises, demoralizing top performers.
Development: Mentioned but unsupported.
Our Goal: Shift from a culture of Apathy and Ambiguity to one of Accountability and High Performance.