Situation
VF Corporation is the $7 billion global apparel company that owns such brands as The North Face, Wrangler, Vans, Lee, JanSport and many others. In 2010, VF launched Maximizing Performance, a company-wide performance management system that would help to build a culture of performance and improve overall company performance. VF wanted to know if the new process was working.
Approach
Capital Analytics collaborated with VF to devise a three-step measurement plan that assesses Maximizing Performance in two VF brands: Brand A and Brand B. Brand A was recently acquired, while Brand B is a legacy brand with a long and rich history. The measurement plan is aligned with VF’s Performance Cycle:
- Phase 1: Creation and quality of employees’ performance plans
- Phase 2: Performance of mid-year reviews and quality of discussions
- Phase 3: Business impact of the new performance management process
Conclusions
The study is currently in process, but the early phases have already yielded valuable findings. Plan compliance is high in both study divisions, but compliance differs by age, job role and ethnicity. Another key finding: having a manager with a Plan is a predictor of Plan compliance by employees. These findings have allowed VF to target groups that are low in compliance and encourage managers to create Plans.
The key question for the final phase of the analysis is whether the new Performance Management Process is driving business performance. The VF and Capital Analytics team will answer this question by assessing whether having a Plan can improve individual performance, as well as whether the Plan impacts such metrics as retention, engagement, promotions, and financial performance.