Redesigning and

Reimagining
Systems
Advanced Energy Economy

Chauntel Coombs, Loren Deaver, JR Nixon,

Amy Phung, and Gabriela Silva
PSYC 660
Table of
Contents

1 Executive
Summary

2 Company
Overview

3 PM System
Overview

6 Analysis of the
PM System

7 Recommendations

9 Conclusion

10 References

11 Appendix
Executive Summary
Advanced Energy Economy (AEE) is a non-profit business association based in
Washington D.C. AEE was founded in 2011 and currently has 42 employees
throughout the United States. The organization’s mission is to advocate for
renewable energy policy at the state and the federal level. While the company has
been active for 10 years, AEE struggled up until 2019 to enact an organized and
direct performance management system across the organization.
This consulting report provides an overview of AEE’s performance management
system, identifying the current problems of the organization’s PM system and
solutions to improve upon it. New and innovative approaches to the current system
are explored to be beneficial to the employees and organization.

AEE currently utilizes self-assessments, top-down appraisals and 360 degree

feedback to evaluate employee performance over the course of the year. The
current system presents two overarching pain points: (1) quality of goal setting and
(2) obtaining timely feedback. Ideally, employees are measured against the goals
that they set at the beginning of the year. Employees and management will assess
goal related behavior and accomplishments at the end-of- year review.

Through the evaluation of AEE’s current processes, recommendations were

presented to both leverage its existing methods of performance management to be
utilized more effectively, as well as introduce new concepts that would positively
impact the system as a whole. Enhancing the utilization of regular check-ins and
intentional goal setting builds upon the foundation that AEE has already established,
but suggestions to further instill these practices into the system are presented.
Further, new concepts like introducing structured evaluation guides and adopting a
coaching culture aid in the reduction of potential biases as well as ingraining
performance management into AEE’s day-to-day.

1
Company Overview
Advanced Energy Economy (AEE) is a Titles are now consistent,
non-profit business association based expectations for each professional
in Washington D.C. AEE’s mission is to level are clearly outlined, and
advocate for renewable energy policy employees have an idea of what skills
at the state and federal level. The they need to have to progress
organization currently has 42 through the organization. However,
employees throughout the United AEE experienced a significantly
States and operates mainly as a higher percentage of turnover in
remote company with approximately 2021 in which more tenured
35% of the staff living and working in employees who had been with the
the D.C. area. AEE was founded in organization for 3 to 10 years left the
2011 and receives funding primarily organization. In most cases, these
through grants, membership dues and employees left to work for larger for-
software subscriptions. profit organizations. Given the
relatively high number of turnover in
While the organization was founded in 2021, it is important to assess the
2011, AEE struggled up until 2019 to current performance management
enact an organized and direct system to ensure that it is still
performance management system relevant and adequately measures
across the organization that the performance of current
adequately measured performance. employees.
For example, prior to 2019, AEE’s
performance management system
didn’t appear to have any direct ties to
compensation. There wasn’t a
baseline yearly compensation
increase nor compensation bands in
place. Additionally, titles were
inconsistent across the organization
and employees were unsure of the
expectations for their level and how
to seek a promotion.

Since 2019, several of these issues

have been resolved. There is now a
baseline yearly compensation
increase given to each employee (3%)
and compensation bands have been
benchmarked and instilled across the
organization.
2
PM System Overview

AEE facilitates most of their Under this combined system at AEE,

performance management functions goal setting at the beginning of the
utilizing the Primalogik software year provides direction for what
system, which delivers online employees, team leads, and the
assessments and feedback forms organization as a whole want to
consistently across the organization, achieve over the course of the year.
while also housing this feedback Towards the end of the year, these
conveniently for both employee and goals will be reexamined as
management use. To complete their employees assess their own progress
performance management process, towards their goals and
AEE leverages self-assessments, top- accomplishments over that year.
down performance reviews and 360 Concurrently, direct supervisors will
degree feedback to measure evaluate associates on their
employee performance. The system contributions towards both the team
was designed by the Senior VP of and organizational goals to provide
Finance and Operations, and put into their own assessment.
effect in January of 2019, with the
system currently in its third cycle. The forms and assessments utilized
The self assessment is an opportunity by AEE are customized by level
for employees to share their own (Associate, Principal, Director and
perspective on their performance, Managing Director) and by functional
accomplishments, and choices. The area (Policy, Non-Policy and
top-down performance review is then PowerSuite). This way, although the
management’s evaluation of an assessments are universally delivered,
employee’s performance relative to the they can be specifically tailored to the
expectations of their role. The 360 unique expectations and
degree feedback is provided responsibilities of each role and job
anonymously by an employee’s co- level.
workers, which will cover their
performance from the perspective of
their teammates and provide both
praise and suggestions for
improvement. 3
PM System Timeline
Goal Setting
In January, associates are provided goal setting forms (Appendix A) to
complete. Associates and supervisors are encouraged to meet
periodically throughout the year for check-ins to discuss how the
associate is progressing towards their goals. There is no formal
structure for this check-in, and thus the meetings themselves are
either infrequent, inconsistently applied, or sometimes not conducted
at all.

Self-Assessment
In early November of the same year, employees are provided a
performance self-appraisal sheet (Appendix B) to complete. Employees
are asked to evaluate themselves based on the organizational and
positional goals outlined in the form, as well as list out their
accomplishments for the year.

Supervisor Evaluation
As the employee self-assessments are completed, direct supervisors
will review their subordinates’ self-appraisal sheets independently. The
supervisor will build upon the feedback provided by the employee,
adding their own valuation and insights as to how the employee
performed over the course of the year.

Annual Performance Meeting

During the months of November and December, the employees and
direct supervisors will meet together for a one-on-one performance
management meeting to discuss the review. This meeting will include
discussion on both the self-assessment and the direct supervisor’s
additional notes. The feedback primarily explores what the employee
had accomplished over the year, how they contributed to team
success, areas for personal or professional growth, future goals, and
ultimately expectations for the upcoming year.
Notably, the goal setting form that was completed by employees in the
beginning of the year is not currently structured into the end-of-year
performance reviews. The inconsistent application results in some
employees being evaluated against these goals, but many others not.

4
Compensation Committee Evaluations
The PM cycle is completed the following January, with the
compensation committee utilizing the new budget for the fiscal year to
determine raises, promotions and profit sharing decisions for
employees. This committee is made up of the CEO, President and SVP
Finance and Operations of AEE, who will take the feedback from the
performance review process, determine who is most deserving of
recognition and potential financial compensation for their high
performance, and deliver those benefits accordingly.

Supplemental PM Practices
The performance management cycle In addition to the 360 degree
outlined above is directly tied to feedback, some employees also
compensation decisions for the complete the 90-day review as well.
respective employee being evaluated. This review is exclusively for
Additional PM systems that exist outside employees that have recently joined
of the compensation process include the the organization, and as its namesake
360 degree feedback, the 90-day implies, it is conducted after the
review, and the performance employee has been with AEE for over
improvement plan (PIP). three months. This review is completed
with the new employee’s immediate
In January, after the PM cycle has supervisor, during which the employee
wrapped up, employees are given a two will evaluate the first several months of
week window to complete the 360 work, outline expectations going
feedback on their co-workers (Appendix forward, and set their goals for the
C). This feedback is optional, so remainder of the year.
employees can fill out as many as they
want or none at all. The feedback, if The final performance management
given, is shared with the employee by function existing outside of this cycle is
the end of the month and the employee the Performance Improvement Plan
can respond however they see fit. As the (PIP), which is leveraged when
360 degree feedback results are meant employees fall short of expectations
for the employee’s eyes only, there is no within their role. The PIP details the
formal conversation that is conducted as performance areas in need of
a result of the feedback. Thus, it is not improvement and outlines a plan to
factored into annual PM meetings with address these needs within a set
management, nor does it have any period of time (usually 3-4 weeks). If
impact on compensation decisions. the employee does not achieve the

performance goals or otherwise fails to
show the necessary improvements as
outlined in the PIP, they are subject to
termination from the organization.
5
PM System Analysis
The following section is an overview of The current PM system does not
the strengths and weaknesses of AEE’s account for multiple leads and
current Performance Management decreases the feedback given to
system. Insight into the system was employees. For example, an employee
provided by Allison Ingram, Senior Vice may set goals at the beginning of the
President of Finance and Operations. year then transition to a new team
where new goals are informally
Advantages implemented. The original goals are not
The Self-Assessment and Top-Down assessed which affects the employee’s
performance review are applied ability to learn and develop.
consistently across the organization from
Directors to Associates. This is Pain Points to the Ideal System
accomplished by adapting appraisals to Analysis of AEE’s PM system revealed
the expectations of each role. The goals two overarching themes for
used to measure performance are improvement: goal setting and obtaining
developed according to the timely feedback. Current goal setting
responsibilities of the role and how it does not accurately reflect
contributes to AEE’s mission. One aspect accomplishments of employees and,
of an effective PM system is the appraisal therefore, the accomplishments of AEE.
of skills in the context of a specific job at a The timeline used to evaluate those
specific level (Forbes, 2017). The current goals limits employees abilities to
PM system also serves as a formalized receive feedback throughout the year
method of feedback. As a small and apply recommendations to new
organization, employees at all levels are assignments. The combination of poor
knowledgeable of the system and its goal setting techniques and an
timeline. ineffective feedback schedule
decreases employee buy-in to the
Disadvantages system. An ideal PM system, according
Despite the consistency of the PM system to Ingram, would include more
structure, the performance feedback consistent feedback throughout the
derived from the system is inadequate. year. Informal performance
The current timeline is not conducive for management conversations between
relevant goal setting and evaluation. Often, employees and team leads would allow
the goals set at the beginning of the year for timely feedback. However, Ingram
are not evaluated at the end of the year expressed concerns regarding informal
for two reasons: (1) inconsistent practices due to the need for
participation and (2) inconsistent standardized documentation. AEE’s PM
feedback. First, the Personal Assessment system is the primary source of
form is cumbersome and time-consuming documentation for promotion,
when completed in its entirety. Employees termination, and litigation. With this in
become discouraged, which limits their mind, the following recommendations
ability to effectively set and meet goals. focus on building a workplace culture
Next, employees often report to multiple that supports the growth and
team-leads throughout the year. development of employees through
their involvement in the PM system.
6
Recommendations
Recommendation #1:
Implement Regular Check-ins
Informal check-ins are not a new concept to
practitioners, as they are a valuable feature for PM;
however, they are not well reinforced in organizations.
This first recommendation suggests AEE to consider
encouraging or even integrating check-ins into their
culture. While acting as a continuous PM tool, check-ins
enable AEE to engage the employees in PM by creating
personal relationships through meaningful casual
conversations. Additionally, regular check-ins allow the
organization to monitor progress towards set goals
year-round.
The following aspects are critical to help ensure check-ins are effective. First, besides the
frequency of check-ins, format and structure of these informal meetings also affect how
this practice benefits the organization. Check-in conversations with feedback can be one
of these three formats: coaching, appreciation, and evaluation (Stone, & Heen, 2015).
Evaluation often occurs naturally during performance review conversation; on the other
hand, for coaching and appreciation feedback types, the feedback givers may need to
know what questions to ask or what types of comments to make. Lastly, check-in
structure should be employee driven as opposed to manager driven; thus, when initiated
by employees help to ensure the frequency and consistency of these check-ins.

Recommendation #2
Make Better Use of Goal Setting
While goal setting is present in the current PM system, there is a lack of follow-through. It
is suggested that AEE adopts an approach where goals are intentionally set. To be
effective, employees should be involved in the setting of goals from start to finish, as this
secures employee buy-in and inspires ownership and commitment to actively achieving
them (Chowdhury & Hioe, 2017). Further, these intentional goals should align with those of
the organization; linking goals to business priorities allow employees to see how their
individual goals fit into the larger organization. This encourages accountability because
more of a direct impact on the organization is perceived (Chowdhury & Hioe, 2017). Goals
should be clearly defined and challenging yet achievable in order to ensure motivation to
reach them (Maheswari & Vohra, 2019). A suggested method to follow to make certain
goals are effective is the SMART method (Specific, Measurable, Attainable, Relevant, and
Time-Bound) (SHRM, 2020).

Once intentional goals are set, it is suggested that they are used as performance criteria
(SHRM, 2020). Managers should review performance against the progress or achievement
toward these goals, whether they be project, behavioral, or stretch goals. This would
ensure that goals are not lost throughout the year as is currently the case.
7
Recommendation #3
Create a Rubric/Guide for Evaluations
AEE should strive to provide every employee with equal amounts of feedback. Creating a
structured guide for evaluating feedback provided would increase the consistency in the
amount of feedback given back to the employee. By walking managers through the
evaluation process and providing them with specific elements to evaluate, this allows for
more detailed and unbiased reviews.

In these guides, it is suggested that the criteria that managers are evaluating against are
clearly defined prior to the evaluation. This lessens the chance of biased feedback by
providing the specific elements that are being evaluated, and not relying on unconscious
stereotypes or biases to impact the feedback (SHRM, 2020). More specifically, it is
suggested that prompted questions are used as a template for managers to rate not
what they think of their employees as people, but rather what they would do with that
employee given their skills and performance thus far (Buckingham & Goodall, 2015). This
also takes the bias out of ratings since performance, not the individual, is being evaluated.

Recommendation #4:
Adopt A Coaching Culture
An organization with a coaching culture harnesses the power of coaching to unlock the
potential of each of its people and the organization as a whole. To move toward a
coaching culture, AEE can implement a seven-step process by Peter Hawkins (2012).

Successfully implementing
this 7 step process will help
AEE to create a strong
coaching culture. Coaching
allows people to do their jobs
in a way that feels authentic
for them, which makes them
more excited about projects,
thus more likely to
successfully complete them.
Coaching each person to
find the right approach for
them will help individual
differences shine through
and promote a sustainable
Table 1: Coaching Culture Implementation Process PM system at AEE.

8
Conclusion

As a small organization, AEE has the opportunity to improve their

current PM system and promote employee development. The four
recommendations focus on establishing a communicative, intrinsically
motivated, and cooperative culture that aligns employees and leaders.

As the organization grows, the recommendations contribute to

maintaining the company culture which will ensure performance
management is the core of AEE.

Thank you!

9
References
Buckingham, M., & Goodall, A. (2015). Reinventing Performance Management. Harvard
Business Review. https://hbr.org/2015/04/reinventing-performance-management

Hawkins, P. (2012). Creating a coaching culture. Open University Press.

Mackenzie, L., Wehner, J., & Correll, S. J. (2019, January 15). Why Most Performance
Evaluations Are Biased, and How to Fix Them. Harvard Business Review.
https://hbr.org/2019/01/why-most-performance-evaluations-are-biased-and-how-
to-fix-them

Maheshwari, S., & Vohra, V. (2019). Managing performance: Role of goal setting in
creating work meaningfulness. The Business and Management Review, 9(4).
https://cberuk.com/cdn/conference_proceedings/2019-07-13-10-28-50-AM.pdf

SHRM. (2020). Managing Employee Performance.

https://www.shrm.org/resourcesandtools/tools-and-
samples/toolkits/pages/managingemployeeperformance.aspx

Stone, D., & Heen, S. (2015). Thanks for the feedback: The science and art of receiving
feedback well. Portfolio Penguin.

Zenger, J. (2017, February 16). The 6 Vital Elements Of Effective Performance

Management Systems. Forbes.
https://www.forbes.com/sites/jackzenger/2017/02/16/the-6-vital-elements-of-
effective-performance-management-systems/?sh=385fc464618e

10
Appendix A
2021 Individual Goals Worksheet

11
Appendix B
PM Questionnaire

12
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Appendix C
360º Feedback Form

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