Ethical Performance & Promotion Framework

Document Purpose

This toolkit provides a comprehensive framework and practical resources to embed your company's core values and ethical principles directly into the talent management lifecycle. Its goal is to create a system where performance is defined by both results and behaviors, and where promotions are awarded to individuals who consistently demonstrate strategic integrity.

Part 1: Tool Blueprint & Overview

This section outlines the foundational design, philosophy, and components of the framework.

1.1. Primary Objective

• To create a clear, fair, and transparent talent management system that systematically rewards and promotes employees who demonstrate a strong alignment with the company's ethical values, in addition to achieving their performance goals. This ensures the organization cultivates a leadership pipeline that embodies and perpetuates a culture of strategic integrity.

1.2. Key Components

• A. The Framework Guide: A high-level guide for HR and Senior Leadership. It explains the core philosophy of the "Whole Performance" model, outlines the business case, and provides a strategic roadmap for implementation. (Content detailed in Part 2).

• B. A Manager's Toolkit for Ethical Performance Reviews: A set of practical tools for managers to conduct fair and balanced reviews. This includes updated performance review templates, behavioral competency guides, and specific question banks for assessing values alignment. (Content detailed in Part 3).

• C. The Promotion Readiness Checklist: A transparent checklist for promotion committees and managers. It provides clear criteria for assessing a candidate's readiness for the next level, based on both demonstrated performance and consistent ethical leadership behaviors. (Content detailed in Part 4).

1.3. Core Concepts of the Framework

This framework is built on three foundational principles that we will develop throughout this toolkit.

• 1. Redefining "High Performance" (The What + The How): We will officially move beyond a purely results-based definition of performance. High performance will be defined as the combination of achieving ambitious goals (The What) and doing so in a way that aligns with our company values (The How). This toolkit will operationalize the "Whole Performance Matrix" (from the Manager's Playbook) as the central model for evaluation.

• 2. Integrating Values into Career Ladders: We will move values from posters on the wall to specific, observable behaviors embedded in our job competency frameworks and career ladders. For each level of seniority, we will define what "living our values" looks like in practice.

• 3. The "Values Veto" in Promotions: We will establish a clear and transparent principle that a demonstrated and persistent misalignment with company values can act as a "veto" in promotion decisions, even for individuals with high performance results. This sends an unequivocal message that how we achieve success is as important as what we achieve.

Part 2: The Framework Guide (For HR & Senior Leadership)

This guide provides the strategic rationale and implementation plan for integrating this framework into the organization.

2.1. The Philosophy: From 'What' to 'Whole Performance'

For decades, many organizations have operated on a simple performance equation: results equal success. This model, while easy to measure, is incomplete and carries hidden risks. It can inadvertently reward individuals who achieve their targets by creating conflict, cutting ethical corners, or undermining team cohesion—the "talented terrors" who leave a wake of cultural damage.

The "Whole Performance" model corrects this. It posits that sustainable success is a product of two equally important factors:

• The What (Results): The achievement of specific, measurable goals. This remains critically important.

• The How (Behaviors): The way in which those results are achieved, measured against our company's core values.

By formally evaluating both dimensions, we send an unambiguous message: we are an organization that values not just victory, but honorable victory. This shift is the single most powerful lever we have to ensure our ethical strategy is not just a document, but the lived reality of our culture.

2.2. The Business Case: A Strategic Imperative

Adopting this framework is not merely a "nice-to-have" HR initiative; it is a strategic imperative with clear business benefits:

• Risk Mitigation: By identifying and addressing the "talented terrors" early, we significantly reduce the risk of ethical lapses, compliance breaches, and the creation of a toxic work environment that can lead to costly lawsuits and reputational damage.

• Talent Attraction & Retention: Top performers, especially "True Stars," want to work in an environment where collaboration and integrity are valued. They are often the first to leave a culture that tolerates toxic high-performers. This framework makes us a magnet for the right kind of talent.

• Increased Innovation & Collaboration: When employees know that behaviors like psychological safety and collaboration are formally valued and rewarded, they are more likely to engage in the open dialogue, debate, and knowledge-sharing that fuels innovation.

• Leadership Pipeline Integrity: By ensuring that only those who embody our values are promoted, we guarantee that our future leaders will be stewards of the culture we are intentionally building, ensuring its longevity.

2.3. The Implementation Roadmap: A Phased Approach

Rolling out this framework requires careful planning and communication. We recommend a four-phased approach:

• Phase 1: Foundation & Alignment (1 Month)

• Action: Senior leadership team and HR formally ratify this framework.

• Action: HR, in partnership with department heads, begins the work of integrating specific, observable value-based behaviors into all job descriptions and career ladders. (e.g., For a "Senior Engineer," the value of "Collaboration" is defined as "Proactively mentors junior engineers and provides constructive, respectful code reviews.")

• Goal: To build the foundational tools and ensure top-level buy-in.

• Phase 2: Manager Training & Empowerment (2 Months)

• Action: Deploy the "Ethical Alignment Cascade" toolkit to all people managers.

• Action: Train managers specifically on how to use the new performance review templates and have balanced "What vs. How" conversations.

• Goal: To equip managers with the skills and confidence to implement the framework fairly and consistently.

• Phase 3: Pilot Program & Communication (3 Months)

• Action: Run the new performance review process with a pilot group (e.g., one department).

• Action: Launch an internal communications campaign to explain the "Whole Performance" model to all employees, emphasizing the "why" and what it means for their growth and development.

• Goal: To test the process, gather feedback, and prepare the entire organization for the change.

• Phase 4: Full Rollout & Integration (Ongoing)

• Action: Launch the new performance and promotion framework organization-wide.

• Action: Ensure that the results of these new evaluations are meaningfully linked to compensation, bonuses, and formal promotion decisions.

• Goal: To fully embed the "Whole Performance" model into the operational fabric of the company.

Part 3: A Manager's Toolkit for Ethical Performance Reviews

This section provides the practical resources for managers to conduct performance reviews based on the "Whole Performance" model.

3.1. The Behavioral Competency Guide: From Values to Actions

This guide translates our abstract company values into concrete, observable behaviors. Use it to provide specific, evidence-based feedback to your team members.

(Note: This is an example. This section should be customized with your company's actual values.)

Company Value: Collaboration

• For an Individual Contributor:

• Proactively shares knowledge and resources with teammates without being asked.

• Listens to understand others' perspectives before responding.

• Provides timely and constructive feedback to peers.

• For a Manager:

• Creates opportunities for cross-functional teamwork.

• Actively breaks down silos between their team and other teams.

• Celebrates team successes over individual accomplishments.

Company Value: Integrity

• For an Individual Contributor:

• Raises potential issues or risks early, even when it's uncomfortable.

• Takes accountability for mistakes and focuses on solutions, not blame.

• Is transparent and honest in all communications with clients and colleagues.

• For a Manager:

• Models ethical decision-making, especially under pressure.

• Creates a safe environment for their team to report concerns without fear of retaliation.

• Ensures their team's work consistently meets quality and compliance standards.

3.2. The Updated Performance Review Template

This template provides a clear structure for a balanced performance review.

Employee Name: __ Review Period: __

Section 1: Performance Against Goals (The "What")

• Goal 1: [Description of Goal]

• Outcome: [Summary of results achieved against the goal]

• Manager's Comments:

• Goal 2: [Description of Goal]

• Outcome: [Summary of results achieved against the goal]

• Manager's Comments:

• Overall Results Rating: (e.g., Needs Improvement, Meets Expectations, Exceeds Expectations)

Section 2: Performance Against Values (The "How")

• Value 1: Collaboration

• Manager's Comments: [Provide specific, behavioral examples using the SBI model: Situation, Behavior, Impact]

• Value 2: Integrity

• Manager's Comments: [Provide specific, behavioral examples using the SBI model]

• Overall Values Rating: (e.g., Needs Improvement, Meets Expectations, Exceeds Expectations)

Section 3: Overall Performance & Development Plan

• Summary of "Whole Performance": [Synthesize the "What" and the "How" using the 4-quadrant model from the 'How vs. What' guide.]

• Key Strengths to Leverage:

• Areas for Development:

• Employee's Career Aspirations & Goals for Next Period:

3.3. Question Bank for Assessing 'The How'

Use these open-ended questions during the performance review conversation to explore the behavioral dimension.

To Assess Collaboration:

• "Can you give me an example of a time you had to work with another team to achieve a goal? What was your specific role, and what was the outcome?"

• "Tell me about a time you disagreed with a teammate. How did you handle the situation?"

• "How have you contributed to the learning and development of your peers in this review period?"

To Assess Integrity:

• "Describe a situation where you had to deliver bad news to a client or stakeholder. How did you approach it?"

• "Tell me about a time you made a mistake. What was the situation, and what did you do to rectify it?"

• "Can you give an example of a time you had to make a difficult decision that balanced short-term pressure with our long-term values?"

Part 4: The Promotion Readiness Checklist

This checklist is for managers and promotion committees to assess a candidate's readiness for a role at the next level. It should be completed based on a holistic review of performance over time, not just a single review period.

4.1. Purpose and Guiding Principles

The purpose of this checklist is to ensure our promotion process is fair, transparent, and aligned with our commitment to building a leadership team that embodies our values. A promotion is not just a reward for past performance; it is an expression of confidence in a person's potential to succeed and lead at a higher level of complexity and influence.

Guiding Principles:

• Evidence-Based: Assessments must be grounded in specific, observable examples of behavior and performance.

• Holistic View: The decision should consider the candidate's entire performance record, including feedback from peers and stakeholders where appropriate.

• Future-Focused: The checklist assesses readiness for the next role, not just excellence in the current role.

4.2. The Readiness Checklist

Candidate Name: ___________________ Proposed New Role: ___________________

Section A: Performance & Results (The "What")

• [ ] Consistent High Performance: The candidate has consistently met or exceeded expectations in their current role for at least [e.g., three] consecutive review cycles.

• Evidence: Review of past performance ratings.

• [ ] Mastery of Current Role: The candidate has demonstrated deep expertise in the core competencies of their current role and is seen as a "go-to" person by their peers.

• Evidence: Manager assessment, peer feedback.

• [ ] Potential for Next-Level Scope: The candidate has shown the ability to think strategically and handle tasks or projects that are representative of the complexity of the next level.

• Evidence: Examples of stretch assignments, project leadership.

Section B: Values & Behaviors (The "How")

• [ ] Consistent Values Alignment: The candidate has consistently received a "Meets" or "Exceeds Expectations" rating on the values/behavioral dimension of their performance reviews.

• Evidence: Review of past performance ratings on "The How."

• [ ] Role Models Key Behaviors: The candidate is a recognized role model for at least one of our core company values.

• Evidence: Specific examples of the candidate demonstrating collaboration, integrity, etc., especially under pressure.

• [ ] Constructive Response to Feedback: The candidate has demonstrated the ability to receive and act upon constructive feedback regarding their behavior.

• Evidence: Examples from past performance reviews or coaching conversations.

• [ ] (For Managerial Promotions) Demonstrated Leadership Potential: The candidate has shown an aptitude for mentoring, coaching, or positively influencing others, even without formal authority.

• Evidence: Examples of mentoring junior colleagues, leading team initiatives, resolving team conflicts.

4.3. The "Values Veto" Principle in Practice

This checklist operates under the "Values Veto" principle. A promotion cannot proceed if the candidate does not meet the standards in Section B, regardless of their performance in Section A.

• How to Apply It:

• If a candidate has a "Needs Improvement" rating in the behavioral/values section of their most recent performance review, they are not eligible for promotion in the current cycle.

• A promotion discussion can only proceed once all checkboxes in both Section A and Section B are marked as met. This is a non-negotiable step in the process.

This ensures we do not promote "talented terrors" into positions of greater influence, thereby protecting our culture and the integrity of our leadership pipeline.