In traditional approaches, employee annual goals and evaluations are aligned with the organization’s mission and strategy. In Scrum, challenges arise when we must perform evaluations. This issue lies in the fact that teams in a Scrum environment work together to complete the commitments they have collectively committed to for a sprint. Therefore, evaluating an individual becomes difficult.
During an organizational transformation from Waterfall to Agile, consider the importance of optimizing the existing performance monitoring, reviews, and goal management processes. These reviews and processes have to shift the focus from an individual employee to a team
that is cross functional and consists of self-organized team members.
60:40 -- A new approach to appraisal
The employee appraisal should emphasize the overall team performance, with the objective of measuring individual goals as well. A weighted system is more effective: The overall employee evaluation will be a ratio of 60:40 (60 percent the team and 40 percent the individual), with the intention of more weight on team achievements than on any individual's. Scrum team goals are based on the SMART (Specific, Measurable, Attainable, Realistic, Timely) criteria. The same works for individual goals and can be applied uniformly across the team. Most rewards and recognition are determined based on the team's performance.
The suggested weighted system can incentivize the team performance, whereby each team member focuses more on their overall team performance rather than their individual performance. This indirectly helps develop a deep camaraderie and a feeling that "we're all in this together." This changes the team members' approach; each member thinks beyond his or her individual role, which leads to full participation in team achievement.
60:40 development team roles
A 60:40 weighted team performance generates the following team roles:
- Team members are self-organizing or self-managing, without externally assigned roles.
- They help negotiate commitments with the product owner.
- They help achieve tighter collaboration within the team.
Follow these guidelines when defining the team goals:
- Team goals must align with the organization’s mission and strategy.
- Goals must be clear, so that they are easy for all team members to understand.
- Goals must be accepted and recognized as important by everyone who will have to implement them.
- The team's progress toward goals must be measurable.
- The achievement of goals can be supported with rewards.
- Goals should be challenging yet achievable.
Note that the 60:40 ratio is subject to change, based on the organization's needs and overall objectives, and also based on the team's maturity regarding using Scrum processes. Organizations and projects can derive their own ratio that perfectly suits them.