Gap Inc.- Refashioning Performance Managemant

Gap Inc.: Refashioning Performance Management Rizky Adhim Reza Ariezta Dimas P Rinaldi Alvin Marveli M. Arief R.

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Company Background Gap Inc. Employees More than 140,000 worldwide. Business activities: A global fashion ● business with five brands: Gap, Banana Republic, Old Navy,Athleta and INTERMIX. Financial results: For the fiscal year 2015, the company generated net sales of ● $15.8 billion and free cash flow of about $870 million. ● World headquarters in San Francisco and HQ offices in London, Shanghai, Tokyo and Toronto, with product development offices in Los Angeles and NewYork City. ●

Gap Inc.’s clothes are available in over 90 countries through more than 3,700

company-operated and franchise stores and several e-commerce sites

FIVE OBJECTIVES FOR THE NEW SCHEME Objectives for the new performance management process: ■ Raise the bar of performance. ■ Provide meaningful reward for exceeding plan and consequences for missing. ■ Ensure managers take accountability for assessing, developing and rewarding performance. ■ Support a shift in culture from nice to nice and honest. ■ Be simple.

Questions What are the business issues? ○

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First, what was the effect of GPS on the headquarters employees who were using it? Had it improved their performance? Second, GPS had been specifically designed for the knowledge workers who made up the bulk of headquarters staff, so the team wondered whether the  tenets of GPS were applicable to store employees—could it revolutionize performance management on the retail floor?

Business Issues ●

Ollander-Krane leading a team of his HR and business colleagues, developed a process called GPS—Grow, Perform, Succeed, which completely changed the philosophy and execution of performance management and rewards for the company’s headquarters employees.

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What was the effect of GPS on the headquarters employees who were using it? Had it improved their performance? GPS had been specifically designed for the knowledge workers who made up the bulk of headquarters staff, so the team wondered whether the  tenets of GPS were applicable to store employees—could it revolutionize performance management on the retail floor?

Solution and The Implementation Plan -

Four sources became major influences in Gap Inc.’s new performance management

process -

1. traditional performance management processes were developed to improve employee productivity in factory-like settings

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2. Employees focus on their grade, not their actual performance. He suggests that a better way to drive performance is through frequent, informal conversations

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3. the feedback is not doing what it is supposed to do—help the employee better understand the way they work, what is good about their work, and what could be improved.

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4. Mindset is a must read. We wanted to instill a growth mindset at Gap Inc. through our performance management process.

Solution and The Implementation Plan

The new process had four major components 1. Performance standard 2.

Goals

3.

Touch base

4.

Rewards