5 facets of performance management for the future- Michael Schrage and Bryan Hancock

Michael Schrage, Research Fellow, MIT Center for Digital Business

From HR People + Strategy

The business value of traditional performance management models is collapsing. Instead of clarifying expectations and building morale, legacy annual appraisal models of performance management can alienate talented and typical employees alike. While personal and enterprise tools and technologies for performance enhancement have radically improved; performance management systems have not.

Recognizing these realities, growing numbers of companies are tying performance management more closely to operational success and less closely to their operations’ calendar. This shift—toward making performance management more business-value relevant—is having a dramatic effect on how human capital is managed in the enterprise. Findings from the 2019 Performance Management Global Executive Study and Research Project, sponsored by McKinsey & Company, identifies five key facets of smart investment in performance assessment, accountability, and capability:

1. On-Demand Feedback
Formal feedback processes have typically been periodic, perfunctory, and problematic. Continuousness is now becoming king. Just as people rely on Google Maps or Waze to manage real-time expectations around travel, employees need to be able to manage real-time expectations around work.

Performance management tools and platforms should facilitate ongoing feedback on individuals’ progress, growth, and development opportunities. Feedback will increasingly be automated, customized, visualized, and communicated in different ways. Executives must determine how best to define the feedback experience for their workforce. Culture will matter more. Senior management must develop shared perspectives on performance management’s purpose in their organization.

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Behold the Big Man – Ben Shields and Ivana Saric

Ben Shields, Senior Lecturer, MIT Sloan School of Management

Excerpt from MIT Sloan Management Review

In the NBA’s modern era of pace and space, small ball, and chucking away from three, it feels like there’s no more place for the lumbering 7-foot center who used to be the backbone of the league. But the burgeoning field of defensive analytics shows that this “dinosaur” might not be going extinct just yet. Ben speaks with Ivana Saric, data scientist for the Philadelphia 76ers, about how defensive analytics are changing pro basketball and the roles of the people who play it.

Listen to the podcast at MIT Sloan Management Review.

Ben Shields is a Senior Lecturer in Managerial Communication at the MIT Sloan School of Management.

It pays to have a digitally savvy board – Peter Weill, Thomas Apel, Stephanie L. Woerner, Jennifer S. Banner

Peter Weill, Senior Research Scientist and Chair of the Center for Information Systems Research, MIT Sloan School of Management

Stephanie L. Woerner, Research Scientist at the MIT Sloan Center for Information Systems Research, MIT Sloan School of Management

From MIT Sloan Management Review

Boards of directors have many issues competing for their attention, but being digitally conversant in an era of digital transformation is quickly rising to the top of the list. Nearly all companies are looking for ways that technology can be used to improve their business models, customer experience, operational efficiency, and more — and boards must help them move forward at a sufficient pace, advocating for change by supporting and sometimes nudging their CEOs. Those that do are likely to see better financial results than those that don’t.

That’s what we discovered when we did a machine learning analysis of the digital know-how of all the boards of U.S.-listed businesses. (See “About the Research.”) Our research shows that companies whose boards of directors have digital savvy outperform companies whose boards lack it. We define digital savvy as an understanding, developed through experience and education, of the impact that emerging technologies will have on businesses’ success over the next decade. We measured it by analyzing data from surveys, interviews, company communications, and the bios of 40,000 directors, extracting key words that signal exposure to digital ways of thinking and working.

Our discoveries are striking: We found that among companies with over $1 billion in revenues, 24% had digitally savvy boards, and those businesses significantly outperformed others on key metrics — such as revenue growth, return on assets, and market cap growth.

Doing business in the digital era entails risks ranging from cybersecurity breaches and privacy issues to business model disruptions and missed competitive opportunities. When a board lacks digital savvy, it can’t get a handle on important elements of strategy and oversight and thus can’t play its critical role of helping guide the company to a successful future. But companies can fix that by understanding what characteristics to look for in existing and new board members, managing board agendas differently, and cultivating new learning opportunities.

Read the full post at MIT Sloan Management Review.

Peter Weill is a Senior Research Scientist and Chair of the Center for Information Systems Research (CISR) at the MIT Sloan School of Management.

Stephanie L. Woerner is a Research Scientist at the MIT Sloan Center for Information Systems Research.

Thomas Apel is chairman of the board at Stewart Information Services Corp.

Jennifer S. Banner is CEO at Schaad Cos. and lead director of BB&T Corp.

What does the future of work look like? – Lee Ullmann

See the livestream video from

MIT’s Future of Work conference, held Aug. 29,  2019, in São Paulo, Brazil

ENGLISH

PORTUGUÊS

What does the future of work look like? How are emerging technologies, such as artificial intelligence (AI) and automation, creating opportunities for new types of jobs and demand for new types of skills? Where should industry leaders invest to foster competition, increase productivity, and create a more inclusive workplace? And what can policymakers do to ensure that the next generation of employees have the education and training to succeed?

These are pressing questions for our global economy and they are especially urgent here in Brazil. In the aftermath of a severe economic crisis and recession, Latin America’s largest and most industrialized economy is facing a slow and uneven recovery. More than 10% of the country’s workforce is unemployed, and a quarter of the unemployed population is between the ages of 18-24. Meanwhile, about 13 million Brazilians work less than they could or would like to.

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The enabling power of trust – Douglas Ready

MIT Sloan Senior Lecturer Doug Ready

MIT Sloan Senior Lecturer Doug Ready

From MIT Sloan Management Review

What will it take to become a great leader in the digital economy? What will be the differentiating skill sets (what individuals will need to do) and mind-sets (how they will need to think and behave) that will shed light on what it will take to lead next-generation organizations effectively? We have set out to address these important questions as the foundation for MIT Sloan Management Review’s newest Big Ideas Initiative: The Future of Leadership in the Digital Economy.

Since it is impossible to know the future with certainty, we started by establishing a hypothesis about what skills and attributes this future leader might possess. We laid that hypothesis out in my first blog post, “Leading Into the Future,” in which we indicated that there will be both contextual elements (meaning fit for purpose for the digital economy) and core enabling elements (meaning traits that are so important that they form the cultural fabric of an organization). Merged together, we believe these core and contextual elements will help define what great leadership will look and feel like in the digital economy.

This was a good start, but an insufficient one, because we need to bridge the gap between what we know to be true today and what we believe will be true tomorrow. To help build that bridge, we will soon be distributing a global survey to thousands of practicing managers and leaders from around the world to get their views on this matter. We have also begun conducting in-depth interviews with CEOs, C-suite team members, heads of digitalization, senior line and functional leaders, and other thought leaders in all things digital.

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