BUSINESS --- THE ULTIMATE RESOURCE by Advisory Board: Warren Bennis, Thomas L. Brown, James A. Champy, Stuart Crainer, Stan Davis, Helen Edwards, Daniel Goleman, Anthony Gottlieb, Robert Heller, Jean-Claude Larreche, Peter Leyden, Christopher Meyer, Bob Norton, and Jeffrey F. Rayport. Perseus Publishing, 2002

PREFACE (pxxx-xxxii)

This preface explains the expanded definition of "business intelligence" called "Emotional IQ" or "EQ" by its developer, Daniel Goleman (pxxx-xxxii)

    [1] The need to know

    [2] Business literacy --- and wisdom

    [3] About the author

    [4] See also --- "Emotional Intelligence" article in this book (p312-313)


    [1] The main objective of the "Best Practice" section is to provide insights on key problems and business issues you are likely to face at some point in your working life.

    [2] This section provides practical business advice and fresh thinking from some of the world's leading business authors and practitioners.

    [3] The essays are designed to be accessible and practical introductions to a wide variety of topics, which are extensive links to "how-to" entries in subsequent sections, and they have been organized under eleven broad themes, including (1) people and culture; (2) finance; (3) systems; (4) structure; (5) leadership; (6) renewal and growth; (7) productivity; and (8) personal effectiveness.

    [4] At the beginning of each essay is an "Executive Summary" that outlines the main points in the article and at the end is a list of recommended books and websites called "For More Information."

    [5] The "Making It Happen," section shows how you can apply the principles and concepts in practice! Specialized terms are defined and illustrative examples are provided.

    [6] Distinguished "Viewpoints" are based on a set of extensive exclusive interviews with world-class business thinkers and futurists and are interspersed in each section to stimulate, provoke and inspire!

    [7] Management in the 21st Century (p5-8)

      (1) Management --- Then (p5)

        Management is converting resources into results!

        Also, in its familiar definition, management is getting work done through others. Management operates in the context of economic variables, social norms, and politics:

          1. The challenge for all managers involves three distinct issues --- technology, people and profits!

          2. The essential question is "How do we balance these three issues into the best combination. the most productive combination, the longest sustainable combination?

          3. In short, "What is the winning combination? (See also Jack Welch's book, Straight From The Gut)

      (2) Management --- Now (p5-7)

      (3) Management --- Tomorrow (p7)

      (4) And yet --- (p7-8)


SECTION 1--- MAKING PERFORMANCE APPRAISALS --- A "Win-Win" Experience by Patrick Forsyth (p23-24)

    "It is much more difficult to measure nonperformance than performance"
    Quote = by Harold S. Green

    "Distinguish between the person and the behavior or performance"
    Quote = by Stephen Covey

EXECUTIVE SUMMARY = Despite the clear necessity for performance evaluation, many managers dislike conducting appraisals. Worse, many people rate their appraisals as worthless --- or something even less flattering. In reality, appraisals are a major opportunity for both managers and staff!


    [1] Why appraisals are necessary and what are the benefits to managers and staff. Primarily, they ensure and improve future performance.

    [2] How effective appraisals should be planned and undertaken to maximize their positive impact while avoiding negative pitfalls.

    [3] The impact of appraisals on the long-term success of your organization. Appraisals provide considerable opportunity for improving ongoing operations, effective management, and catalyzing change.

1) Introduction --- There are many reasons why appraisals are necessary. Positive reasons include the opportunity to: (p23)

    (1) Review your subordinate's past performance

    (2) Plan your subordinate's future work and role

    (3) Set and agree on specific individual goals for the future

    (4) Identify development needs and set up development activity

    (5) Provide on-the-spot coaching

    (6) Obtain feedback

    (7) Reinforce or extend the reporting relationship

    (8) Act as a catalyst to delegation

    (9) Focus on longer-term career progression

    (10) Enhance or increase motivation

Also, an important negative reason is the close relationship between appraisals and employment legislation since the lack of an appraisal may make it impossible to terminate an incompetent employee!

Overall the underlying intention is to improve a subordinate employee's future perormance. The "good appraisal" presupposes that even the "best performance" can be improved and seeks to increase the likelihood of future work plans being brought to fruition.

2) Prepare carefully --- Unsurprisingly, the key to effective appraisals is preparation by both parties. The appraiser/supervisor must --- (p23)

    [1] Spend sufficient time with stafff during the year

    [2] Communicate clearly and thoroughly the purpose and form of the appraisal so that people know what to expect. Employees should understand the need for appraisal, its importance, the specific objectives it addresses, and how both parties can get the best from it.

    [3] Prepare throughout the year, keeping clear records. Make notes and file copies of matters that can usefully be raised at appraisals. The subordinate employee being appraised should keep running records and develop a detailed plan for the kind of appraisal meeting he or she intends to have!

    Successful appraisal is the culmination of a year's worth of thinking. Recalling every significant detail of a subordinate's working year is difficult, but conducting an incomplete appraisal risks loss of credibiliity. Managers can only appriase successfuly by being informed!

    Relevant background information needs checking. For example, the subordinate's "job description" may need to be changed to check if it needs to be amended after the appraisal, specific past objectives, possible changes to the job or its responsibilities, circumstances.

    Effective appraisal preparation gives appraisal interview meetings structure!

3) Work the system --- It is not the purpose here to specify exactly how formal measurement in appraisal systems should work. But the measurement --- "rating scale" --- must ensure consistency, clarity, and fairness. Since details matter, many raters favor rating scales with the total number "even" instead of "odd" to eliminate the temptation to rate too many criteria as average! Ultimately, a systematic rating procedure works best: (p23)

    [1] Create a good, manageable system or familiarize yourself with what you must do.

    [2] Make its "constructive" purposes clear!

    [3] Communicate all procedures, documentation, and action clearly to all subordinate appraisees.

    [4] Use the process "objectively"

4) Before the appraisal interview --- (p23-24)

    [1] Supervisor should prepare written notification --- As well as confirming mutually convenient timing, this should recap the purpose of the appraisal and highlight background information. Any copies of documents or forms intended for use during the appraisal meeting should be distributed prior to the meeting.

    [2] Study the individual's file --- Make sure you have all the information you need about what was supposed to happen during the year and what actually did happen. Make notes of points needing discussion and see to it that you can navigate the documents easily as the appraisal meeting progresses.

    [3] Check performance factors --- Review agreed-on "rating standards" and identify any that are no longer relevant or that need to be changed!

    [4] Draft a provisional assessment --- Brief notes can provide a starting point, prompt the agenda, and link to the system. Don't prejudge the discussion or make decisions prematurely!

    [5] Critique your initial thoughts --- Check your rationale, asking yourself a "WHY QUESTION" about anything noted at this stage. If no clear answer comes, more research may be necessary!

    [6] Consider specific areas of the appraisal --- It may be clear that some training is necessary, for example. Again without prejudging, it may be useul to check out what might be appropriate and formulate a suggestion before the meeting!

    [7] Think ahead! --- Remember, the most important part of the appraisal discussion will be about the future! You may need to plan particular projects and tasks, taking both development and operational considerations into account.

    [8] Consult with others --- Speak to those who work or deal with the subordinate appraisee to get a complete picture.

    [9] Be clear about the link with pay review --- Many supervisors think this issue should be kept for a separate occasion. Otherwise it can be difficult to stop appraisees from thinking all that matters is the potential raise!

5) Setting up the interview --- (p24)

    [1] Allow enough time

    [2] Allow no disturbances

    [3] Create the right environment

    [4] Put the individual at ease

6) During the meeting --- (p24)

    [1] Spell out the agenda and how things will be handled --- Ask what priorities the appraisee wants recognized!

    [2] Act to direct the proceedings ---

    [3] Ask questions --- Open-ended questions prompt and focus discussion!

    [4] Listen --- The appraisal meeting is primarily an opportunity for the appraisee to communicate. In a well-conducted appriasal meeting, the appraisee should do most of the talking! The manager's job is to make that happen.

    [5] Keep primarily to "performance factors" Don't indulge in amateur psychology or attempt to measure personality factors!

    [6] Use the system --- Use systems and appraisal forms to guide the meeting. If you work through the form systematically, it will ensure that most of what needs to happen does.

    [7] Encourage discussion --- Consider the appraisee's personal strengths and weaknesses, successes and failures, and their implications for the future.

    [8] Set out action plans --- Describe those that can be decided there and then --- in other words, who will do what when! Also note those plans that need more deliberation in terms of when and how action will be taken. Deal with each factor separately, for example, by devoting time to develop the agreed-upon action.

    [9] Explain the basis of assessment --- Make the basis and reasons for your assessment clear! Be irm about your decisions.

    [10] Conclude on a positive note --- Always thank the appraisee or the role he or she has played and or the past year's work. Link this to any subsequent documentation.

7) After the meeting --- one key action is essential (p24)

    Complete all documentation and confirmations that are necessary promptly after the meeting, sending copies to appraisee --- flagging any opportunity for further discussion --- and sending copies to central personnel.

8) CONCLUSION --- Appraisals are not one-shot deals. No manager can afford to heave a sigh of relief afterward and forget about them for another year. Appraisals achieve most when placed in a long-term context and linked to ongoing operations! (p24)


    [1] The ongoing management relationship --- An effective appriasal should make all management processes easier throughout the year.

    [2] The link with training and development --- Consultation and counseling, mentoring and informal discussions are all just as important extensions of appriasal as formal training.

    [3] Motivation --- Appraisals must themselves be motivational! What stems from them must assist ongoing motivational activity!

For whatever reasons, and there may be many, such as unease with the process or inflexibility of systems, the considerable opportunity of appraisals is often missed or diluted.

Appraisals are not only a "vehicle for change," one that can be precise and powerful, but they can also be a catalyst for effective management which translates into effective performance!

Thus, the benefits of effective performance appraisals are considerable and tangible!

MAKING IT HAPPEN --- SIX STEPS to Successul Perormance Appraisal Management (p24)

    [1] Make sure that everybody understands the need for appraisal, its importance, its objectives, and its mutual benefits.

    [2] Prepare throughout the year, keeping clear records and notes to assist the appraisal process.

    [3] Keep primarily to performance factors, getting the appraisee (subordinate) to do most of the talking ---- while you listen hard.

    [4] Concentrate the appraisal process on future performance, and do not confuse it with discussion of remuneration.

    [5] Link appraisal deliberately with training and development, and with consultation, counseling, mentoring, and motivation.

    [6] Follow up appraisals promptly, sending all necessary written material to the appraisee (subordinate) and flagging any opportunity for further discussion.


    [1] BOOKS

      (1) Powerful Performance Appraisals by Karen McKirchy. Career Press,1998

      (2) Productive Performance Appraisals by Randi Toler Sachs. AMACOM, 1992

    [2] SEE ALSO references in this book

      (1) Matching pay to achievement (p297-98)

      (2) New yardsticks for performance and productivity in an "E-world" (p. 285-86)



PART 3 --- ACTION LISTS (p577-881)



PART 6 --- DICTIONARY (p1165-1369)



PART 9 --- INDEX (p2137-2170)

PART 10 --- CREDITS (p2171-2172)

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