The scorecard review is started 90 days after the last scorecard review was completed. It is your responsibility, not your team leaders, to initiate the review.
You begin by adding two columns to the left of your review in your scorecard spreadsheet that should be embedded at the bottom of your one-on-one document. Copy the previous two columns from the last review into these two new columns and then update the new columns as per the following instructions.
The first section of the Scorecard details what the annual investment is that the company makes in you. Ask Accounting for you compensation details and update the following information to calculate your overall compensation:
- Your Start Date; the date you were hired on
- Eligible Time Away (Days); calculated based upon our Time Away policy
- Role; what position you hold in the company from our defined Roles
- Annual Base Compensation Actual; what your current annual base salary is as of this review
The second section of the Scorecard is the accounting of your results for this quarter and it begins with;
- Did you achieve your last Critical Number? if you hit your Gold target give yourself a 3, Silver 2, and Bronze 1, and if you missed all 3 score a 0
And then for each of the scorecard attributes below it score yourself according to the following criteria;
- 0 - I am not doing this
- 1 - I am but not consistently
- 2 - I am consistently doing this
- 3 - I am consistently doing this, I am learning how to do it better, and teaching others to achieve the same results
And apply your assessment to each of the following questions;
- How well are you fulfilling your Purpose?
- How well are you fulfilling your Influences?
- Did you achieve the Outcomes for what you are Accountable for?
- Did you achieve the Outcomes for the Processes that you are responsible for?
- How well do you adhere to the company values?
Loyalty and your overall score are calculated as follows;
- Loyalty; in our base compensation calculation we give loyalty, how long you have been with the company, a maximum weighting of 25%. We do this because we feel the longer you have been with us the more knowledge and experience you have, but, we think there is a cap to this and we think that cap is 6 years. In other words if you have been with us for 6 years there probably isn’t any difference between what you know and what someone who has been with us for 25 years knows. Therefore the 25% weighting is prorated and calculated based on the time we have been together up to the 6 year maximum.
- Overall Score; the sum of your scorecard attribute scores divided by the sum of the max scores, 3 for each question, is multiplied by 75% and that result is combined with your Loyalty score to determine your overall score out of 100%.
- Annual Base Compensation Minimum; lookup what the minimum annual base compensation paid for your role is as of now and enter it here
- Annual Base Compensation Maximum; lookup what the maximum annual base compensation paid for your role is as of now and enter it here
- Recommended Base Compensation; the difference between the min and max base compensation is multiple by the overall score percentage and added to the minimum base compensation to determine your recommended base compensation.
Below the spreadsheet in the document you then date your entry and document your thoughts on the following two questions:
- What do you think you need to start doing, keep doing, or stop doing to improve how you work? One to three points.
- What do you think your team leader needs to start doing, keep doing, or stop doing, to help them improve how they work? One to three points.
- What do you feel your critical number and one to three priorities, listed in order of priority, should be for this quarter? And why? The priorities can be epics for the overall team, which is preferred but not always possible, or they can be priorities that you are individually responsible for.
You then invite your team leader, and their leader, to review your scorecard review. Your team leader enters their scores for your scorecard attributes and they note any questions or suggestions on your insights, priorities and critical number, and together you work them through to a definitive conclusion for the coming quarter.
The scorecard review should be an affirmation of everything discussed weekly in one-on-ones. It should take no more than thirty minutes in a regularly scheduled one-on-one to pause, take score, and note what needs to be done next to get better and better at what we do. There should be no surprises. Your scores and your team leaders scores for you should be more or less the same. If there is no alignment then this is indicative of a greater problem that the two of you must resolve in the coming quarter. Once the scores, improvements, priorities and critical number are confirmed you and your team leader sign off on the conclusions and you invite your leaders leader to review and sign off as well.
Note that the results of your recommended base compensation calculation are a guideline, not a fixed rule. If you are scoring consistently for three quarters in a row higher than your current compensation then your team leader should recommend an increase for you, and if you are scoring consistently lower for three quarters than you are currently paid you and your team leader need to get the performance differences addressed. One further clarification is that we don't increase a person's compensation from one year to the next based upon a cost of living allowance or by amount of time from the last date a person's compensation was increased. We use market data and our recommended compensation calculation to determine what base compensation increases need to be made and when.