Overview Page

CEB Ignition™ Guide to

(Re)Defining Employee
Performance Criteria
for Human Resources
CEB Corporate Leadership Council™

This seven-step guide includes 11 documents that will help you: Time:1 4–8 Weeks
■■ Define business-aligned performance criteria (both objectives and Effort: 2–4 FTEs
2

competencies), Costs:3 $0
■■ Lay the foundation for your performance management system, Input: ■■ Organizational
■■ Evaluate employees consistently, and strategy
documents
■■ Drive performance.
■■ Existing
performance
criteria

Plan Step 1: Plan the performance criteria development process.

1 Task, 1 Document
Build Step 2: Translate organizational strategic priorities into draft
performance criteria.
3 Tasks, 1 Document
Step 3: Gather feedback to refine criteria.
2 Tasks, 2 Documents
Step 4: Choose and develop a ratings scale.
2 Tasks, 2 Documents
Step 5: Pressure-test criteria and the ratings scale with employees
and leaders.
3 Tasks, 2 Documents
Step 6: Communicate and roll out new criteria.
3 Tasks, 2 Documents
Monitor Step 7: Monitor performance criteria effectiveness.
1 Task, 1 Document
1 Time refers to the total duration for completing the activity end to end.
2 Effort refers to the total number of FTEs required to execute the activity. Get Help
3 Cost refers to the incremental expenses required for the activity, and it excludes internal resources. from Peers

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Step 1

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Step 1 of 7: Plan the Performance Criteria

Development Process
Lay the groundwork for developing your performance criteria, and ensure all
participants understand their responsibilities, the process timeline, and expected
outcomes.

Business Case
for Change
Project Outcomes Problems Addressed
■■ Performance criteria are aligned ■■ Performance criteria are
to the business. misaligned to organizational
■■ Employees have a clear, consistent strategy and goals.
set of expectations for their ■■ Performance criteria are
performance. not consistent across the
■■ Managers and employees have organization, and performance
a standardized evaluation is not measured consistently
framework. across the organization.
■■ Employees are increasingly
■■ Performance criteria are unclear
satisfied with the performance and irrelevant to employees’
management system. work, leaving managers and
employees dissatisfied and
■■ Employees’ performance improves. performance affected.

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Roles and
Responsibilities
Head of HR
CEB Ignition™ Designate ownership for the criteria development process; ensure new criteria
Project Manager align to organizational strategy.
CEO/Senior Leadership Team
Approve new criteria, ensure new criteria align to organizational strategy and
goals, and encourage their adoption.
Criteria Design Team (Composed of HR Leaders)
Drive and facilitate the new criteria development process.
Business Unit/Functional Leaders
Consult on new criteria and business unit– and functional-specific priorities.
HR Generalists/HRBPs
Consult on new criteria, represent employee voice, and provide process
support.
Employees
Provide feedback on new criteria.

Before
You Start ■■ Download the Project Plan Template within the CEB Ignition™ Project
Manager. This project plan will help your criteria design team remain
organized and on track.
■■ Ensure the HR team agrees on the project objectives and project plan.
■■ Gather and review organizational strategic planning documents.
■■ Gather feedback on current criteria and performance management process.

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Common
Pitfalls & Keys
to Success
Arbitrary Criteria Connect Criteria to
Organizational Strategy
Criteria do not relate to Derive criteria directly from
organizational goals or strategic organizational strategic goals
priorities. and priorities to ensure business
alignment and specificity.

Inconsistent Criteria and Establish Consistent

Measurement Standards Across the
Organization
Different employees are evaluated Create a consistent performance
against different competencies criteria framework by developing
and objectives. Employees are not a core set of business-aligned
held to the same standards, nor competencies, framing
are they measured by the same employees’ objectives around
standards. organization-wide priorities, and
using a standardized ratings
scale.

Unclear, Irrelevant Criteria Consult the Workforce

Criteria do not reflect employees’ Engage with business leaders

work and employees do not and with employees to ensure
understand the measures on performance criteria are clear and
which they are being evaluated. relevant to their day-to-day work.

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Step 2

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Step 2 of 7: Translate Organizational

Strategic Priorities into Draft Performance
Criteria
Identify business-aligned performance criteria.

Your Tasks
2.1 Review organizational goals and strategic priorities.
Prepare to create business-aligned criteria by reviewing organizational strategy
and goals.

ADVICE FROM PEERS

“HR’s approach to performance management must be consistent with business

strategy. Having a strategically aligned approach allows us to deliver on our goals and
create a climate where all employees can and want to do their best work.”

Head of HR, Technology Industry

2.2 Identify key categories of objectives necessary to achieve

organizational goals.
Objective and
Competency Based on organizational strategic priorities, identify key categories of objectives
Identification against which all employees should be evaluated. Draft a list of business-aligned
Template objective categories to share with business leaders and HRBPs.

2.3 Identify competencies necessary to achieve organizational goals.

Discuss the competencies necessary to achieve organizational strategic
priorities. Draft a list of competencies to share with business leaders and
HRBPs.
Refer to the Objective and Competency Identification Template from Step 2.2.

Case Study

Future-Focused Performance
Criteria

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Review Your
Progress Success Red Flags Team
Criteria Conversation
A draft list of objective ■■ List is not grounded ■■ Which categories
categories and in organizational of objectives and
competencies strategy. competencies are
■■ List is not applicable most important for
to the workforce at- us to achieve our
large. business goals and
strategic priorities?
■■ Which of these
objective categories
and competencies are
least critical for us to
achieve our business
goals and strategic
priorities?
■■ Have we overlooked
any key objective
categories and
competencies?

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Step 3

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Step 3 of 7: Gather Feedback to Refine

Criteria
Determine the relevance of new performance criteria to key stakeholders and make
necessary adjustments.

Your Tasks
3.1 Review and refine performance criteria with HRBPs.
Conversation Gather HRBP feedback on your draft lists of objective categories and
Guide: Gathering competencies to gain insight to employee voice. Make adjustments as needed.
HRBP Feedback

3.2 Review and refine performance criteria with business unit and
functional leaders.
Conversation
Guide: Gathering Gather feedback from business leaders on your draft lists of competencies and
Leader Feedback objective categories. Analyze their feedback to identify and make necessary
changes.

Review Your
Progress
Success Red Flags Team
Criteria Conversation
■■ Clear understanding HRBPs and leaders ■■ Have we effectively
of employee disagree with or captured HRBP and
perspective and are confused about leader voice?
leader priorities objective categories ■■ How can we
■■ An updated list of and competencies. demonstrate and
objective categories communicate that
and competencies we have heard and
addressed HRBP and
leader feedback?

Case Study

Personalized People MBOs

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Step 4

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Step 4 of 7: Choose and Develop a Ratings

Scale
Establish a clear framework to consistently measure performance.

Your Tasks
4.1 Select an appropriate ratings scale.
Guide to Selecting Review potential ratings scale options and determine what level of performance
an Effective differentiation your organization requires (two-seven point scale).
Ratings Scale

4.2 Align performance definitions and ratings scale.

Performance Level Define competency performance to reflect the levels of differentiation on your
Differentiator chosen ratings scale.
Note: The ratings scale may apply to both competencies and objectives.
Because objectives will vary so much from individual to individual, we have not
specified definitions for low, medium, and high levels of performance.

Case Study

Reimagined Performance
Management

Review Your
Progress
Success Red Flags Team
Criteria Conversation
■■ An agreed-upon ■■ Ratings scale does Have we captured
ratings scale not adequately and clearly articulated
■■ Behavioral differentiate the different levels of
definitions of performance. performance for each
competencies for ■■ Behavioral competency?
each layer of the definitions lack
organization specificity.

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Step 5

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Step 5 of 7: Pressure-Test Criteria and the

Ratings Scale with Employees and Leaders
Ensure updated criteria and new ratings scale are clear, relevant, and business aligned.

Your Tasks
5.1 Conduct employee focus groups.
Performance Organize and conduct cross-functional employee focus groups at each level of
Criteria Employee the organization to get feedback on the criteria and ratings scale.
Focus Group
Questionnaire

5.2 Gather feedback from functional and business unit leaders.

Performance Get input from leaders on the updated, refined performance criteria and the
Criteria Leader ratings scale.
Feedback
Questionnaire

5.3 Update, refine, and finalize criteria.

Incorporate leader and employee feedback into new performance criteria and
ratings scale.
Refer to the Performance Level Differentiator Tool from Step 4.2 to update
competencies and to the Objective Category and Competency Identification
Tool from Step 2.2 to update objective categories.

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Review Your
Progress
Success Red Flags Team
Criteria Conversation
■■ Active participation ■■ Employees and ■■ Have we consulted
in focus groups leaders disagree enough stakeholders
■■ Meaningful feedback about objective to ensure our criteria
gathered and categories and are clear and relevant
addressed competencies. to employees and
■■ Employees and well aligned to
■■ A finalized list of business strategy?
objective categories, leaders are
competencies, confused. ■■ Do employees feel
and behavioral ■■ The finalized list the criteria apply
definitions does not address to their individual
employee and leader performance?
feedback.

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Step 6

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Step 6 of 7: Communicate and Roll Out New

Criteria
Integrate new criteria into performance management processes and help the workforce
understand and apply them.

Your Tasks
6.1 Integrate new criteria into performance management processes.
Checklist for Ensure all relevant parts of the performance management process reflect the
Integrating New new performance criteria (e.g., promotion decisions, pay decisions, evaluation
Criteria forms).

6.2 Communicate the new criteria to HRBPs, managers, and employees.

Checklist for Enable leaders and managers to discuss the new criteria with employees.
Communicating
New Performance
Criteria

6.3 Provide managers and employees with resources for understanding

and applying new criteria.
Enable the workforce to apply the new criteria. Update your online performance
management resource center with performance criteria application support.

ADVICE FROM PEERS

“If our employees don’t have the support and resources they need to apply the criteria,
then we’ve failed our duty as HR. We must keep a long-term lens of the future,
thinking beyond the launch of these criteria to consider their implementation and
effect on employees’ day-to-day work.”

Head of HR, Health Care Company

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Review Your
Progress
Success Red Flags Team
Criteria Conversation
■■ Common criteria ■■ Criteria do not ■■ What is our
embedded into align with core HR communication
all performance processes. strategy and timeline
management ■■ Employees and for creating support
processes managers do not resources?
■■ Employee understand how ■■ Have we successfully
and manager the criteria relate embedded the
understanding and to their individual new criteria into
application of new performance. our performance
criteria ■■ Employees and management
managers do not processes?
understand how the
new criteria impact
the performance
management
process.

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Last Step

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Step 7 of 7: Monitor Performance Criteria

Effectiveness
After implementing the performance criteria, measure their impact on performance and
adapt them as business priorities change.

Review Your
Performance
Closing the Project
CEB Ignition™ ■■ Gather feedback from key stakeholders.
Project Reviewer
■■ Assess effectiveness of performance criteria definition process.
■■ Document lessons learned, and make adjustments.
Review and Track Performance
■■ Encourage ongoing feedback from stakeholders (e.g., leaders, HRBPs,
employees).
■■ Review performance management dashboards to spot potential issues
(e.g., ratings inflation).

Keys to
Continued
Success
Update Performance Criteria as Strategic Priorities Shift
Revisit your performance criteria to ensure ongoing business alignment
as organizational strategic goals and priorities shift.

Reiterate New Criteria

Emphasize the new criteria frequently and through multiple channels to
ensure they are incorporated in employees’ daily workflow and become
part of the organization’s culture.

Maintain a Clear Line of Sight Between Criteria, Performance,

and Rewards
Make the new criteria stick by developing a clear line of sight between
them, employee performance, and your rewards system.

Related
Resources ■■ Performance Management Topic Center
■■ Manager Resource Portal

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