Performance Dialogue: A Vodacom Case Study
Vodacom Group Limited (Vodacom) is an African mobile communications company providing voice, messaging, data and converged services. From its roots in South Africa, Vodacom has grown its operations to include networks in Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho. Vodacom is majority owned by Vodafone, the world’s leading mobile telecommunications group and is listed on the JSE.
In planning this new approach, Vodacom identified the following important requirements (according to Hein Laubscher, the Project Manager at the time):
- The focus had to be on continuous dialogue between manager and employee
- It had to lead to improved goal setting and defining measurements
- It had to measure the What(output) and the How(behaviour)
- It had to use a simple rating scale (no "system calculations")
- It had to lead to greater consistency and fairness through calibration
- It had to assist in driving a "healthy" rating distribution curve
- It should lead to building a high performance culture
Based on these requirements a new, automated Performance Dialogue System was designed and implemented from April 2010. Mpho Nkeli, Chief Human Resources Officer at Vodacom explains that Performance Dialogue allows leaders to drive results through continuous dialogue and give them the opportunity to prepare the next generation of leaders for tomorrow. "Our performance dialogue process is build around stretching and challenging goals with regular reviews of performance and clear and honest feedback is vital." She further explains that the performance dialogue process is centered on performance goals aligned to the overall business objectives; hence the individual targets agreement is reached between the employee and his/her manager, which serves as a basis for performance dialogue.
Mho also states that Vodacom has the right processes in place to ensure quality conversations, coaching guidance and feedback to employees to build on strengths and to focus on areas of improvement. She described the principles of the Performance Dialogue system as follows, "Our performance Management System is derived on two principles, which determine how well individuals perform in their current roles. These principles are: "what" they do (achievement against goals) and "how" they do it through (living the Vodacom Way). They are weighted as follow:
- "WHAT": weight 60% of the overall performance
- "HOW": Weight 40% of the overall performance
From Mpho’s description it is clear that the system succeeded in addressing some of the key requirements that were set at the start of the project. Hein Laubscher explained to delegates at a SAPHILA conference in 2010 that there was a 100% use of the system within the first six months after the launch. He ascribed this to the following success factors:
- An easy process
- One simple integrated document and one cycle for all
- One overall Rating
- No SAP workflows (only 5 Outlook notifications)
- Dialogue must take place
- Flexibility for employee to make updates
- The manager initiates assessment
According to Mpho, the launch process was effective, and the support system to line management has always been made available. Vodacom used a "Theme" approach during the launch and also used Industrial Theatre. The HR Business Partners were trained first to help with support and an e-learning training module was used to train staff. Vodacom further created a dedicated Performance Dialogue Intranet Site and developed system reference guides and simulations. They also developed a line manager guide (booklet) and used an employee blog facility via "Our Vodacom" site and implemented a 3-Tier Support Model.
Mpho is satisfied with the progress so far and the results achieved. She does however state that Vodacom is continuously working on improving the quality of feedback to employees and is promoting performance coaching as part of the process. She explains that the goal setting process still remains the fundamental base from which effective performance dialogue can be conducted. Failure to set clear goals can lead to obstructive performance dialogue.
Mpho emphasizes the importance of Performance Dialogue as a business priority by concluding that: "Performance management is established as an organisational priority driving business results. We therefore continue to have high expectations of performance and that we support our staff to develop and improve their performance all the time. We have a vision that our people performance will distinguish us from competitors, and lead us to great shareholder returns while exploiting new business opportunities."
