Case Study: Performance Framework Development for an IT Services Firm

Introduction

An IT services firm in Jakarta, employing 300 staff across various agile teams, faced challenges in measuring and managing team performance effectively. Traditional performance appraisal methods did not align with the dynamic and collaborative nature of agile practices. HRConsulta was engaged to design and implement a performance framework tailored for agile teams.

Project Objectives

The project aimed to:

• Develop a performance framework that complements agile methodologies.
• Ensure alignment with organizational goals and team objectives.
• Increase transparency and fairness in performance evaluations.

Approach

The five-month project was executed in the following stages:

1. Assessment of Current Practices
   • Conducted interviews with team leaders and HR personnel to understand existing performance challenges.
   • Reviewed current appraisal methods and their impact on employee motivation.
2. Framework Design
   • Developed a performance framework emphasizing team-based goals, individual contributions, and agile principles.
   • Incorporated metrics such as sprint velocity, team collaboration, and quality of deliverables.
3. Training and Pilot Testing
   • Trained managers and team leads on the new framework.
   • Piloted the framework with three agile teams, gathering feedback and making adjustments.
4. Full Implementation
   • Rolled out the finalized framework across all teams.
   • Established a feedback loop for continuous improvement.

Solutions Delivered

HRConsulta delivered:

• Performance Framework: A system tailored to agile practices, integrating both individual and team-based metrics.
• Manager Training: Workshops to equip leaders with tools for fair and constructive evaluations.
• Continuous Feedback Mechanism: Processes for real-time feedback and performance tracking.

Results and Outcomes

1. Improved Team Collaboration: Teams reported a 25% increase in collaboration scores during retrospectives.
2. Higher Employee Engagement: Engagement surveys showed a 20% improvement in perception of fairness in appraisals.
3. Enhanced Goal Alignment: Clear performance metrics improved alignment with organizational objectives.

Lessons Learned

1. Agile teams benefit from performance metrics that balance individual and team contributions.
2. Iterative piloting ensures frameworks are practical and well-received.
3. Continuous feedback fosters an adaptive and transparent performance culture.