Adobe Systems Inc. provides multimedia and creativity

software products including Photoshop, Adobe Acrobat,

and Adobe Acrobat Reader. Adobe was experiencing an

increase in turnover, which it discovered was related to

employees dissatisfaction with the performance review

process, a lack of recognition, and the lack of regular

feedback about their performance. Like other companies,

Adobe used a performance review system in which managers

provided an overall rating of each employee on a

scale from 1 to 4, based on how the employees performance

compared to that of other employees. This created

a competitive work environment, rather than the collaborative

one that Adobe values. Each year after employees

received their reviews, HR saw a spike in voluntary

turnover, which was especially concerning because Adobe

was losing good employees.

To improve performance management, Adobe decided

to abandon annual ratings and introduced a new system

called Check-In. Check-In emphasizes ongoing feedback.

Instead of managers discussing performance with employees

only during the formal performance review, as tended

to occur in the old system, Check-In encourages managers

and employees to have informal performance discussions

at least every other month. Managers are asked to focus

performance discussions around employees performance

objectives or goals and what resources they need to

succeed. Also, employees career development needs are

part of the conversations. Managers are given complete

freedom to decide how often and in what ways they want

to set goals and provide feedback. The discussion is future

focused. That is, both the employee and the manager consider

what to change to increase the likelihood that performance

will be effective. Employees are evaluated on

the basis of how they have performed against their goals

rather than how they compare to other employees. More

frequent performance feedback is especially important

to Millennial employees, who are used to real-time communications

through texting and postings.

Managers no longer have to complete lengthy performance

evaluation forms and submit them to HR. HRs role

is to provide managers with consulting and tools to help

with performance discussions rather than policing to see if

reviews are completed or discussions have occurred. Both

managers and employees can access a resource centre that

provides materials about coaching, giving feedback, and

personal and professional development. For example, managers

might use the resource centre to help them with tough

performance conversations such as those involving giving

employees difficult feedback. HR relies on what is known as

a skip-level process to ensure that performance discussions

are occurring throughout the year. This means that the managers

own boss holds the manager accountable for having

performance discussions. The boss asks employees if discussions

are occurring and if they have a development plan.

There are several indications that Check-In is effective.

HR includes questions about performance management

in its annual employee survey. Survey results show that

80 percent of employees responded that they had regular

performance meetings with their managers and felt supported

by them. Since Check-In was introduced, voluntary

turnover has decreased by 25 percent. Also, it is estimated

that Check-In saves Adobe managers 80,000 hours each

year that were previously spent completing employee performance

evaluation forms.

Questions

1. What steps should managers take to ensure that

performance

discussions are effective?

2. What are the benefits and potential disadvantages

of more frequent performance discussions between

managers and employees?

3. Which purpose of performance management will be

more difficult to achieve for companies like Adobe

that decide to eliminate ranking or rating employee

performance?