Transcript No Slide Title

Strategic Performance Management
PURPOSE
To Develop Employees,
Deliver Superior Results and
Outclass Competitors.
Strategic Performance Management
H. R. Management Process
Performance
Management
FOCUS
•
•
•
•
•
•
Performance Planning
Competency Profiling
Individual’s Development
Team Building
Creating Leaders
Performance Review
SPM process consists of
- Setting Corporate Objectives & Targets
- Improvement Projects / Assignments
- Implementation / Action Planning
- Execution of Strategic Action Plans
Execution of Strategic action plans depends on
- Cross Functional and Departmental
Processes
- Individual Competency Development
Performance Planning Process
Corporate
Objectives & Targets
Cross Functional
Targets
Individual
Objectives / Targets
Departmental
Targets
Setting Objectives & Targets
- Definition
- Priority Setting
- Standards of Quality
- Standards of Quantity
- Time Frame
Objectives and targets should be:
(a) Specific
(b) Realistic
(c) Measurable
(d) Result oriented
(e) Quality bound
(f) Time bound
(g) Attainable with stretch
Action Plan for each Objective
- Activity (s) Scheduling
- Resource (s) Identification
- Inter / Intra Departmental Coordination
Identification & Level of Competencies
• Functional Competencies
• Managerial Competencies
PERFORMANCE PLANNING
Role of Top Management
- Defining & Analysis of corporate / targets
for next 3 - 5 years
- Identifying key business processes Cross Functional and Departmental for
improvement
PERFORMANCE PLANNING
Role of Top Management
- Selecting Key Competencies - Technical,
General Management and Ethical
- Defining role of Individual Performance
and Self-Development
PERFORMANCE MANAGEMENT
Role of Operational Management
- Assisting top management to form
Teams - Cross Functional and
Departmental
- Conducting Team meetings and
progress reviews - Acquisition of
Resources
PERFORMANCE PLANNING
Role of Operational Management
Preparing Implementation (action) Plans
for selected projects
- Cost estimation
- Revenue generation target setting
- Defining saving targets - costs, time & effort
- Performance levels / benchmarking
Role of Operational Management
Preparing Implementation (action) Plans for
selected projects
- Time scheduling
- Resource allocation / acquisitions
- Designing reporting formats for
variance
analysis
- Obtaining concurrence from top management
Example
PERFORMANCE PLANING - 2008
Employee
:
Syed Imtiaz Hussain (No. _______ )
Please Complete the Appropriate sections:
Objective (Ref.)
:
HR - 3
Dept. Responsible
:
Human Resource
Leader
:
H. R. Manager
Team members
:
One experienced (nominated) person
from each department
Date
:
December 2008
PERFORMANCE PLANING - 2008
A. Objective
In the next 6 months (by Dec. 2008), identify and define key
competencies
(Managerial
and
Functional)
for
each
management position, with the level of competence required
to fulfill the job requirements, so that competency
assessment and gap analysis can be conducted during first
half of 2008.
B. Priority Assigned (tick only one)
3 = High
2 = Medium
1 = Low
34
2
1
PERFORMANCE PLANING - 2008
C. Schedule of Major Activities
Activities
1. Identify / List Managerial
Competencies (MC) for the
Imtiaz Hussain
Completion
Date
30th Sept.
(H. R.)
2008
Department
30th Sept.
Team Member
2008
Department
30th Oct.
Team Member
2008
Incharge
Company
2. Identify Functional
Competencies (FC) for each
Job with Levels
3. Define Level of MCs for
each job
PERFORMANCE PLANING - 2008
C. Schedule of Major Activities
Activities
4. Conduct 360° Feedback for
Incharge
Completion
Date
Imtiaz Hussain
30th Mar.
all Managers (# 25)
(H. R.)
2008
5. Conduct Gap Analysis
Imtiaz Hussain
30th Apr.
(Requirement Vs.
(H. R.)
2008
Department
30th Jun.
Head / Imtiaz
2008
Performance)
6. Prepare Development Plan
for each Manager
Hussain
PERFORMANCE PLANING – 2008
D. Standards of Performance
• Select experienced Facilitator for the assignment
• Complete all activities with 95% accuracy level
• Achieve effective and high degree of internal
communication
• Involve all Managerial staff throughout the
process
PERFORMANCE PLANING - 2008
E. Resource Plan
• An experienced Consultant to be engaged for
periodic facilitation of Assignment
• Department Representative (Team Members) to
be available during the assignment period,
particularly in June, Sept., Oct., 2008 and April
to June 2009.
• Department Heads’ time and support is needed
for the success of assignment
• Financial Resources of around $. 250,000 are
needed
PERFORMANCE PLANING - 2008
F. Progress Review Plan
• Overall Progress meetings to be held at least
once a month by 15th of each month, to ensure
timely coordination of project
• Departmental Review meetings to be held once
in 15 days to ensure timely progress
• Key decisions taken in all meetings must be
documented and provided to all Team Members
with in 3 days of the meeting
Breather needed
PERFORMANCE APPRAISAL
Actual v Plan
Date (s)
T & D Needs
Performance Ratings
PERFORMANCE APPRAISAL
Role of Top Management
Review of progress reports generated
by
operational
making
changes
management
in
Targets, as necessary.
Policies
and
and
PERFORMANCE APPRAISAL
Role of Operational Management
- Comparison of Targets v/s Achievements,
after adjusting for major policy changes
and exceptional circumstances
- Competency Assessment
- Training & Development scheduling
and monitoring
PERFORMANCE APPRAISAL
• Work output (Quantity, Quality & Time
Standards)
• Job Knowledge Assessment
• Managerial Skills Assessment
• Performance Rating
Priority Ranking and Performance Rating
Working:
Step
Step 11
Objectives
Priority Ranking
1
2
3
4
3
3
3
2
5
1
Total
12
Priority Ranking and Performance Rating
Working:
Step
Step 32
Objective
No.
1
2
3
4
5
3
3
X
X
Actual
Rating
3
3
3
2
1
X
X
X
3
2
3
Priority
Score
9
9
9
4
3
Total 34
Priority Ranking and Performance Rating
Working:
Step 3
Total Score (34) ÷ Priority Total (12) = 2.83 This falls in
Overall Performance range of Very Good (VG)
Step 4
Overall Performance Ratings
Score
Up to 2.24
2.25 - 2.80
2.81 - 3.00
Rating
BA
G
VG
VG = Very Good
BA = Below Average
G = Good
PERFORMANCE APPRAISAL
Job Knowledge
• Focus on Technical Aspects & Expertise
• Focus on Systems, Policies, etc.
PERFORMANCE APPRAISAL
Managerial Competencies (by Berger)
•
•
•
•
•
•
•
Decision Making
Planning & Organising
Creativity / Initiative
Leadership & Motivation
Delegation
Dependability
Communication
Managerial Competencies
Decision Making
Analyze situation, consider alternatives, and
decide for action.
Planning & Organising
Comprehension of responsibility in determining a
course of action to achieve goals within specified
time and available resources.
Managerial Competencies
Creativity / Initiative
Improving operational efficiency / Innovative in
performing.
Leadership & Motivation
Influences and guides others, development of
resources. Motivates (Inspire self and others to
perform).
Managerial Competencies
Delegation
Explaining and enabling others to perform.
Dependability
Reminders not needed, self commitment.
Communication
Verbal, Written, Listening skills, Presentation
skills.
PERFORMANCE APPRAISAL
• Focus on Key Strengths (at least 2) in specific
achievements / behavior
• Focus on major Development needs (at least 2).
Use specific short falls / negative behavior
POTENTIAL APPRAISAL
Purpose
• Succession / Career Planning
• Rewarding the Right person
• Retention of Good Employees
• Keeping the Head Count under control
POTENTIAL APPRAISAL
Establish Facts
• At least 3 out 5 previous years Performance
Ratings are Very Good
OR
• At least 2 out 3 previous years Performance
Ratings are Very Good
POTENTIAL APPRAISAL
Possible Positions for the Candidate
• Within his / her Function
• Outside his / her Function
POTENTIAL APPRAISAL
• Define Standards (Functional & Managerial
Competencies) for the Possible Position (s)
• Assess Candidate against Standards then
make recommendations
INFRA STRUCTURE
Infra- Structure to implement SPM
(a)
Management Teams for
-
Performance Planning
-
T & D Management
Career & Succession Planning
INFRA STRUCTURE
Infra- Structure to implement SPM
(b)
M. I. S. for timely Information &
tracking of Achievements
(c)
Employee Data Base Management
System
Lets take a Break
Examples of Objectives
Select and implement an ERP system covering
Sales, Distribution, Manufacturing and Financial
aspects of the organisation, in the next 2 years (by
June 2010), to improve working capital
management, order tracking, management
reporting and reduce wastage in manufacturing by
25%, within one year after the implementation of
the ERP.
Identify and outsource most Administrative
functions in the next 12 months (by December
2008), in order to reduce fixed admin. costs,
managerial effort and litigation, while improving
the service level by 20% from the existing levels.
Improve the preventive plant maintenance policy
and implementation techniques, so that plant idle
time is reduced by 20%, in the next 12 months (by
December 2008).
Improve the distribution network and process in
the next 6 months (by December 2008), through
automation and MIS (order tracking, data mining),
in order to ensure availability of stocks, while
reducing overall inventory level by 20%.
The Way Forward
Competency Based Management
•
Profiling of Managerial & Functional
Competencies for each position, with level
required
•
Competency Assessment of Individual Managers
•
Gap Analysis and Individual Development Plan
•
Performance Rating on a scale of 5
Managerial Competencies
Innovation
Initiative, creativity, risk taking and problem
solving.
Teamwork
Collaboration, building relationships / network,
creating partnership, exploiting diversity, using the
skills of others, and candor.
Managerial Competencies
Leadership
Leading by example, motivating and inspiring
others, and creating a high performance
organisation.
Customer Focus
Understanding and responding to customers,
communicating with customers and creating
solutions to meet customer needs.
Managerial Competencies
Result Focus
Meeting commitments, tenacity and delivering results.
Change Orientation
Developing self and others, coaching and adapting to,
and managing change.
Managerial Competencies
Communication
Listening & presentation skills, adapting
different communication styles, negotiating and
influencing others.
Competency Based Management
Functional Competencies
• Specialized Competencies are necessary to be successful
in a particular job or function. Each job requires its
own set of expertise
• As a competitive organisation the breath and depth of
your knowledge base is critical for competitive
advantage
Competency Based Management
Functional Competencies
Job specific
• General Management
• Marketing, Sales & Distribution
• Production & Q. A.
• Research & Development
• Finance & Accounting
• Systems Control & Audit
• Information Technology
• Human Resource & Administration
• External Relations
• Secretarial & Legal
Examples of Functional Competencies
General Management
•
•
•
•
•
•
•
•
•
•
•
Business Acumen
Strategy and Planning
Competitive Analysis
Portfolio Management
Budgeting & Financial Control
E - Business
Organisation Development
Executive Coaching & Mentoring
Change Management
Corporate Policies
Govt. Relations
Competency Based Management
•
Competency Assessment of Individual Managers
- 360º Feedback
- Counseling
- Individual Development Planning
Competency Based Management
Performance Rating on a scale of 5
Exceptional (E) = 5
Results exceed expectations in all standards of performance quality, quantity and timeliness. Improvements have been
made through superior performance. Superior results were
produced in spite of negative influences such as unexpected
heavy workload, changed priorities, or factors beyond the
Individual’s control
Competency Based Management
Performance Rating on a scale of 5
Above Average (AA) = 4
Results exceed expectations and standards of performance quality, quantity are clearly beyond what was expected. Time
deadlines
have
Improvements
performance
been
met,
but
not
achieved in at least
improved
two
upon.
standards of
Competency Based Management
Performance Rating on a scale of 5
Average (A) = 3
Results meet the standards and targets set for this objective.
Quantity and quality generally meet the standards and
achievement of the targets was more or less on time
Un Satisfactory (US) = 2
The results are those you can expect only from novices in this
position. Results need improvement in terms of quantity,
quality or timeliness.
Competency Based Management
Performance Rating on a scale of 5
Un Acceptable (UA) = 1
Results fail to meet all expectations. You would not expect these
results even from a bunch of novices.
Thank You