The Johnson & Johnson Family of Companies is on a journey to refine our performance management and development approach (P&D). The hallmark of the new P&D approach is the focus on conversations—frequent and meaningful formal and informal conversations that fuel a culture of high performance. Each employee and manager is expected to engage in clear and candid dialogue throughout the year within the “5 Conversations Framework,” which consists of the Performance Planning, Midyear, Succession Planning, and Year-end and Compensation conversations. These meaningful, ongoing conversations should reinforce each other and ultimately result in clarity of expectations, alignment across the organization and an appreciation of employee contributions.
The new P&D approach consists of two dimensions—Results and Leadership. The first dimension, Results, is based on Management by Objectives framework for aligning employees’ goals and actions with the goals of their company. The second dimension, Leadership, is based on a newly developed enterprise-wide leadership model—the Leadership Imperatives. The Leadership Imperatives—Connect, Shape, Lead and Deliver —and Our Credo, represent the key behaviors that are critical to the future success of the Johnson & Johnson enterprise. These two components—Results and Leadership—provide the basis for annual performance evaluation of all employees. The evaluation on each dimension will be based on a four point rating scale with a strong link between performance and pay. The transition to the new P&D approach is phased by level globally. The transition began with 1,200 senior company leaders in 2012.
The transition will continue with 26,000 Directors and Managers in 2013, followed by the rest in 2014. To ensure an effective transition to the new P&D approach, the Corporate P&D team is offering training to managers on mechanics (e.g., stakeholder feedback, assessment, performance calibration) and dynamics of the new approach (e.g., clear, candid and actionable conversations). Training will help managers master the new P&D approach and develop coaching and feedback skills to enable meaningful, ongoing conversations that engage and inspire our employees. To measure the effectiveness of the new P&D approach, key performance indicators (KPI) have been developed. The KPIs are designed around four pillars that measure clarity and alignment, leadership accountability, transparency and fairness, and employee growth and development.