HR in Action: The Case of Accenture

Transforming Performance Management

Accenture, a global consulting and professional services firm with over 400,000 workers
worldwide, has a huge number of employees who receive performance reviews each year.
Accenture launched a global initiative to revamp its performance management process after
discovering that employees were not receiving the feedback they required.
Ellyn Shook, the firm's chief leadership and human resources officer, was responsible for most
of this effort. The process began with obtaining feedback on what employees and management
required. Employees expressed a desire for real-time feedback, individualized professional
training, and greater organizational openness. As a result of the feedback, Accenture decided to
discontinue the usage of annual reviews in favor of a system that identifies and builds on each
employee's strengths. A key component of the transition is an internal app that allows
employees to share their objectives with their colleagues and solicit feedback. Accenture
released the system globally after testing it on 20,000 employees. As of 2017, the corporation
was also in the process of training its managers in effective employee coaching. Managers and
staff will have to spend more time controlling performance as a result of the enhancements,
but they will gain more value in the process.
It's worth noting what Accenture added after dropping the annual review. It is too soon to
know whether the change was successful, but it is apparent that this was an effort to transform
the organization's performance culture rather than simply changing an appraisal system.

Case Discussion Questions

1. Which aspects of the change did you find most useful? Which aspects seemed least useful?
2. What are your thoughts on reviewing performance once a year?
3. What do you think about using apps to deliver real-time feedback to employees? Are there
downsides to this approach?