![]() ![]() In its most recent quarterly earnings announcement, Adobe got way more people to sign up for this than expected. But Adobe's new strategy of charging users a software as a service fee in the cloud instead of annual license fees is expected to boost the lifetime value of its customers. The new system always keeps me on edge,'" said Morris.Īdobe's revenues are up a mere 4.4% in the last year while its profit has been flat. ![]() "One of our best people described to me a recency effect. He said, 'When we had stack ranking, people would try to do their best right before the annual performance review. Managers are held accountable for changing out poor performers."įurthermore, Check In motivates people to perform at their peak throughout the year - instead of right before they will get their annual performance review. There is a more active dialog between managers and their people about whether they are executing relative to expectations. Morris argued, "Managers set expectations for their people that are tied to company performance. Is there a relationship between Adobe's financial performance and the way it manages people? There may be some correlation. And since we adopted Check In, we have seen much lower attrition of people we wanted to keep and involuntary attrition is up - which is good." To implement the strategy, I thought that people would need to get feedback from managers on a more regular basis. Morris explained, "Adobe adopted a new business strategy in November 2011 - focusing on tools for digital creativity - that required agility, speed, and increased collaboration. Since adopting Check In, Adobe has gotten better results. Moreover, we found that the performance review process consumed 80,000 hours every year," said Morris. And managers were not held accountable for changing out low performers. After they received their performance review and ratings, the people we wanted to keep would leave. "In January 2012, I looked at key people metrics and saw a consistent pattern. Stack ranking led Adobe to lose people it wanted to keep and keep people it wanted to lose. The managers would get a budget and make salary adjustments based on the rankings." There was no logic between the written performance reviews and the rating or ranking of the person. The managers would be forced to rank 15% as top performers. Managers would rank them - strong, solid, low. People would get written performance reviews once a year. ![]() She saw plenty of flaws with stack ranking. Morris has spent 11 years at Adobe - prior to which she was vice president of human resources and learning at Accelio Corporation, a Canadian software company that Adobe acquired in 2002 - and now reports to CEO Shantanu Narayen. ![]()
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