The PMP is a robust system that includes a year-end assessment of individuals on their goals (“a project or assignment that an employee is expected to accomplish during the performance period in areas such as growth, financial and operational performance, customer focus, talent management, quality, and innovation”) and their competencies (“the five core competencies from the McGraw-Hill leadership competencies and up to five additional job-related competencies essential for success in their current position”). The focus at mid-year is a discussion between manager and employee that reviews progress on goals and the results of a multi-rater feedback tool on competencies. Supervisory competencies are also assessed by direct reports only for those with people management responsibilities.

The Multi-Rater Competency Assessment includes a self-assessment, an assessment by the manager, and assessments by at least three additional raters. Raters are nominated by the individual and are reviewed and sometimes modified by the boss prior to the administration of the questionnaire. Once the data collection is complete, results are compiled and the composite report, to preserve confidentiality, is available to the boss. This report, which includes ratings, rankings, and gap analyses on competencies and behaviors as well as verbatim comments, becomes the basis for a mid-year discussion.

Prior to the discussion the manager provides the feedback report to the employee. “The report is a vehicle for having a conversation. In our collegial culture, the data make it easy to reinforce the competencies and behaviors that are perceived positively and make it easier to explore possible areas for improvement and to have what might otherwise be difficult conversations,” says Crane. The expectation is that both manager and employee will have reviewed the findings and will come prepared to talk about and construct a plan on what needs to be sustained, what needs to be enhanced, and what needs to be improved. As McAuley says, “This is where the manager takes off the evaluation hat and puts on the coaching hat.” And, for those managers who might need guidance on how to most effectively conduct such a coaching discussion, the organization provides training and a comprehensive coaching guide on how to have the conversation and ensure payoff and commitment to a development plan on the employee’s part.

With this process in place for over fifteen years, it is clear that Standard & Poor’s has worked to make continuous improvements. At its inception, data analysis was done on Excel spread sheets! But beyond the obvious efficiencies due to technology changes in data collection and report generation, McAuley and Crane note that what they have done and how they have done it have evolved to reflect organizational changes. And today there is an expectation in the organization that high performance is defined not solely by numbers but by proficiency in competencies, especially those related to leadership, as articulated by their president, Deven Sharma. As they look forward, they will build on the discipline that exists related to implementing the system and leverage the support of senior leadership. They will use focus groups of managers to learn how to maintain the reliability and validity of the 360 in the PMP and the talent review processes, determine how to streamline their approach and ensure ongoing value for the individual and the organization.