Chapter 13 Case Study Salesforce—Instant Praise, Instant Criticism Instead of waiting a year for your annual performance

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Chapter 13 Case Study Salesforce—Instant Praise, Instant
Criticism Instead of waiting a year for your annual performance
review, how would you like to know where you stand by getting
immediate feedback about how you're doing? After all, the
once-a-year version might be little more than a boss-administered
exercise in unhelpful feedback. The typical annual review,
including past performance, goal setting, pay, and improvement
needs, can be information overload for many. For goals accomplished
today, how valuable and motivating is recognition and feedback 6
months from now? What if you were able to get real-time feedback
and coaching by asking colleagues, managers, and peers questions
such as “What did you think of my presentation?” or “What can be
done better?” Meaningful Recognition In today's business
environment of rapid speed, employers are beginning to realize the
true value of real-time feedback for employee recognition, control,
performance, and motivation. When Salesforce bought Rypple, a maker
of performance management social software, CEO Mark Benioff, said
that “the next generation of HCM [human capital management] is not
just about a cloud delivery model; it's about a fundamentally
better way to recruit, manage and empower employees in a social
world.” This approach is nothing new for the customer relationship
management (CRM) megafirm. For most of its almost 20 years,
Salesforce has used acquisitions to expand the CRM offerings it
makes available to clients. In 2016 alone, Salesforce spent almost
$4.5 billion acquiring 13 companies. Leading up to the acquisition,
Rypple's top management pitched their software this way:
“Performance management has become disconnected from real
performance. Today, we move faster. We're more connected. This
requires a new approach to performance.” Rather than waiting a year
to learn what managers think of them, employees using Rypple's
platform send out a quick (50 words or less) pointed question to
folks ranging from managers to peers to customers to suppliers.
Some call this just-in-time performance improvement. Benioff called
it a winner. Enter Work.com Rebranded within Salesforce as
Work.com, the Rypple product provides a real-time snapshot of
employee performance in a single place, on completion of a goal,
project, or quarter. Benefits include the ability to give public
thanks and solicit feedback in a timely way. A coaching interface
allows workers to build coaching networks to spot needed
improvements. This helps to resolve problems and issues as they
arise rather than after the fact. It also means quicker
implementation of needed changes. Salesforce is always looking to
expand the range of client needs it can serve. The CRM innovator
has continued to develop strategic partnerships to fast-track its
strategic goals. In early February 2017, Salesforce announced that
it had entered into an “artificial intelligence” partnership with
IBM, with the goal of enhancing the range of analytical tools it
provides to clients. Artificial intelligence plays a key role in
the Salesforce.com model. Said Benioff of the IBM partnership: “AI
is accelerating … partnering with IBM was a natural given ‘how I
respect how they have stayed true to customer values.’” More or
Less Motivation? Some ask if too much feedback becomes a bad thing.
Reliance on so much feedback and what other people say can be a
detriment to learning the hard way—by making mistakes. Others
believe that people are motivated to work hard when their efforts
are recognized in a public way. Are you willing to wait a year
until your next performance review to get much-needed positive
feedback? Or would you like to work in an environment where
real-time report cards of your progress are common? Case Analysis
Questions 1. DISCUSSION Is the annual performance review past its
“sell by” date or just in need of some revisions? If real-time
reviews are available using software such as Salesforce's Work.com,
is there a need for an annual performance review? (5 Points) 2.
PROBLEM SOLVING You've just taken a new job in human resource
management, and the organization's president gave you this
high-priority task: Give us a plan that can make performance
reviews motivating to employees and bosses alike. “I'm tired,” she
says, “of hearing everyone complain that annual reviews are
demotivating. We need to review performance. Surely there are ways
that we can make ours more valuable.” As you sit down to think
about this assignment, make a few notes on the major issues and
things you might recommend. Use insights from motivation theories
to justify what's on your list. (10 Points) 3. FURTHER RESEARCH How
about the real-time and Web-based approach to performance reviews
offered by Salesforce? Do some research and identify the latest
developments with it and others like it. Is this online approach to
performance assessment the right path to a more motivated
workforce? What does the evidence say about benefits? What
downsides are users reporting? Overall, what's the current verdict
on Work.com and similar products—good for bosses, employers, or
employees?