GAP Inc.

:
REFASHIONING PERFORMANCE
MANAGEMENT
SYNDICATE 8:
AHMAD QOHAR SYAKIR 29318047
ARGA PURWANTO 29317382
BERNARD ISKANDAR 29318080
INDHIE HANIFAH 29318023
MOKHAMAD ZAFAR NUR HAKIM 29318102
TIGOR MULIA DALIMUNTHE 29318031
1. Why GAP Inc. had to refashioned its
performance management?
 Long conversation between managers and employees
once a years, spending a lot of time and energy
 Employees did not understand why they were rated where
they were. And Manager were often uncomfortable giving
feedback
 It opposite with Gap Inc. very "nice" culture. It will make
the culture to be less focused on being "nice" and more
focused on being honest
 Bonus not driven by business performance
 The Old system improve productivity, but Gap Inc. no
need that. Gap Inc. need creativity, innovation, and
cutting edge design
1. Why GAP Inc. had to refashioned its
performance management?
 Employees only focus on their grade, not their actual
performance,
 Wrong feedback from manager can create a threatening
situation, which make employees defensive,
 Employees just have one time (once a year) to review their
performance and to fix it.
2. How did Rob Ollander-Krane devise and
implement GAP Inc.’s new performance
management process?
 Having influenced through books and deep studies, he
developed a process called GPS (Grow, Perform, Succeed),
with purpose to
• Develop a simpler and easy-to-understand process
• Improve performance bar
• Shift the culture into nice and honest
• Allow the manager to take full accountability on
performance report
• Align reward with actual performance
 He wanted employees to be assessed in the same way the
Company being assessed by shareholdersThe new process had
four major components:- Performance standard- Goals- Touch
base- Rewards
3. How changes did Rob Ollander-Krane
made?
 Shifting from nice culture to nice and honest culture.
 Give the employees the sense that their performance was
being assessed in the same way that the company’s
performance was being assessed by the shareholders.
 New PM process called GPS – Grow, Performs, Succeed
 GPS had four major components:
1. Performance Standards: replacing year-end reviews with a
new performance standard such as:
• set tough objectives • if failed, learn quickly from the
• work hard experience and strive to win;
• win the market • manager inspire and drive
• live the values of the company performance of their teams
through regular coaching and
feedback
3. How changes did Rob Ollander-Krane
made?
 GPS had four major components (cont’d):
2. Goals: no more than 8 goals in a shorter or longer time
frames but all those goals should be reflected more often than
just once a year.
3. Touch base: Held “touch base” meeting/session focused on
employee performance
• Managers not to take notes at • Remove stress from discussion
this meeting of performance
• Keep them free flowing in order • Managers and employee
to better motivate and engage could decide what each
the employees touch base meeting would
focused on
4. Rewards: bonuses would no longer be determined by the
year-end review. The bonuses structure strongly link to each
business unit’s performance. annual bonuses = 75% from
business performance and 25% from individual performance
4. Can Gap Inc. use the refashioned
performance management at the store level?
Why?
 No decision had been made at the time.
 However, they had promising result through first 18 months
of GPS implementation among headquarter staff.
 Facing a highly competitive fashion apparel retail market,
Gap Inc. struggled to deliver a consistent product and
customer experience
 Gap management believed the key to future success had
to begin at the storefront where customers experience the
brand every day. With a new focus on driving top-line
sales and empowering the field.
5. Please develop the performance
management process at the store level
 To start the process of figuring out what to build, Ollander-Krane
interviewed Gap Inc.’s senior leaders on the behaviors that they
were looking for to be more competitive in the marketplace.
 Using GPS approach, GAP, Inc at store level should be focus on:
• Using store unit business' goals to determine employee's
performance standard (eliminate rating and YE review)
• Building stretch component into an outcome driven goal
setting process, avoid complexity method (aligning store
manager target with his/her team and review periodically)
• Supporting nice and honest culture, encouraging feedback
culture (ie: touch base discussion on every month for Store
Manager & Spv, weekly basis for Spv - staff)
• Focusing reward to the success of brands and business
performances (ie: 75%:25%, store: individual weight
performance measurement)