Changing Organization Culture through Performance Management

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Financial/Human Resource Performance

Jean Ann Larson
Chief Learning Officer
Beaumont Hospitals

This session reviews how a Pay for Performance Program, part of an overall performance management program, was implemented in order to change organizational culture to enable the healthsystem's employees to meet future competitive challenges.

There are many levers that can be used to change individuals' and organizational behavior. A leading healthcare provider realized that individual and organization performance would have to be enhanced in order to meet future challenges to maintain competitiveness. As part of the overall performance management system, a pay-for-performance philosophy, appraisal, and reward system were implemented for all 17,000 employees at all levels. The program incorporated both specific behaviors linked to organizational strategies. Organization outcomes were also used to gauge the division and organization's success. In order to assist managers and employees meet the new higher standards of performance, training and development were offered in management and leadership skills and lean six sigma methodologies.