Performance management tool makes company more strategic

System helps firm with succession planning and career management
By Uyen Vu
|Canadian HR Reporter|Last Updated: 02/28/2006

For many organizations, getting people to rally around a performance management system isn’t easy. At Montreal-headquartered Aeroplan, a loyalty marketing company with about 1,200 employees, the job wasn’t as tough. Most of the 220 managers participating in performance management were already sold on the why. It was the how they had trouble with.

The how was a “very archaic pen-and-paper-based tool,” said Caroline Cyr, manager of organizational performance and development. “Although we had a formal process per se, we did not have any means to track it. All we had were yearly Excel spreadsheets and graphs to present to senior executives, which were based on aggregated performance management ratings across the company.”

These were ratings used to determine the level of incentive pay each year. At Aeroplan, incentive pay comprised of ratings at the corporate level, the team level and the individual level. The mix of each would vary according to an individual’s rank.