Cost pressure prompted the top management of a media agency with more than 100 employees to look at the rudimentary existing performance appraisal system (PAS). To this end, it commissioned an internal working group of managers to develop a new LBS. After several rounds of discussion, the members decided to seek professional help. The aim of the project was to create a binding LBS for managers and employees alike, on the basis of which the four pillars of performance management would be built. Specifically, these were:
- Salary structure
- Annual employee appraisal with target agreement
- Promotion practice and recruiting
- Personnel development measures
Multi-level competency model developed
After a careful clarification of the assignment, the working group agreed with the external HR interim manager to first develop a multi-level competency model tailored to the organization. The multi-stage approach and the project duration of seven months were approved by the management. During this time, the participants met regularly for working sessions. Milestones of the work-in-progress process were defined at the beginning. The systematic, structured approach created clarity and boosted the motivation of the working group. The role of the HR project manager in this first phase of the assignment was:
- to impart knowledge
- to provide assistance in formulating and structuring the competencies and
- to ensure consistency, selectivity and practicability.
The further the project progressed, the more the interim HR developer took on the role of a critical sparring partner.
The working group and project manager also agreed that the success of this measure could only be achieved through a sustainable communication process. Parallel to the work on the competency model, a graduated communication plan was developed. This plan involved top management on the one hand and also brought the other managers into the development process on the other. The project manager helped to prepare the presentations to top management and attended these meetings to answer any further questions on the system as required.
At the start of the roll-out of the LBS, a workshop provided all managers, including top management, with a discussion platform to clarify any final detailed questions in order to achieve a broad consensus.