Performance assessment can be a key ingredient in successful global talent management initiatives, especially to retain and motivate existing employees (Varma, Budhwar, & DeNisi, 2008). For example, the performance assessment system at Novartis (which is similar to many firms such as GE in the US and LG in Korea) is central to its global talent management initiatives (Siegel, 2008). At the heart of it is a system that grades employees on (a) business results (the ‘‘what’’) and (b) values and behaviors (the ‘‘how’’). While the business results are unique to each business area, the values and behaviors (e.g., being innovative and creative; exercising leadership) are common across the entire firm.
Combining these two performance dimensions results in a ninebox matrix for assessing employee performance. This assessment process takes place within the context of the business performance cycle, which begins with the strategic plan for the firm and cascades down to define ‘‘what’’ each business unit is expected to accomplish.