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The Performance Management Journey
Employees understand their division’s responsibility and their manager’s share of that responsibility. This enables employees to develop objectives that support the manager and division.
Deere & Company’s CEO Robert W. Lane was named to the chief executive position in 2000 and within weeks, he announced that all salaried John Deere employees would participate in a single, global performance management process. Today, the company has nearly 47,000 employees worldwide with nearly 19,000 of them on a single performance management system, said Chip Chesmore, Manager, Organizational Development.
As with many major organization transitions, Chesmore describes the six-year effort of refining the performance management process as a journey. Currently, the process of setting annual performance management goals maps closely to the company’s fiscal year, with employees and managers sitting down to write SMART goals every November. Senior leaders align their SBU objectives with the organization’s objectives and then share them with direct reports. Each level of leadership does the same to share objectives with their teams to facilitate the alignment of individual goals with the objectives of the company.
John Deere, like many organizations, puts significant emphasis on the conversations held between employees and their managers. “Through this process, an employee understands their division’s responsibility and their manager’s share of that responsibility. This enables employees to develop objectives that support the manager and division,” Chesmore said.
Performance discussions are held at mid-year in the April to May timeframe and the final performance review takes place near the end of the fiscal year. John Deere rolled out its new global process through an 8-hour training program for managers that covered how to...
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Write SMART goals
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Provide effective feedback during performance conversations
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Create valuable development goals
The performance management process is also an input to the company’s succession planning process. Performance reviews factor into the selection processes for filling the leadership pipeline. Every two years, managers are asked to identify team members whom they expect to be candidates for new leadership roles within a 2- to 3-year period.
Chesmore said John Deere does not force rank employees, nor does it force a rating distribution. Performance is measured against the performance requirements for each individual’s position.
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