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Strategic Enterprise Management
 

Strategic Enterprise Management

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    Strategic Enterprise Management Strategic Enterprise Management Presentation Transcript

    • © Empower Management Consulting LLC - All Rights ReservedStrategic Enterprise Management Mohamad J. Samman HR Best Practice Group Doha, Qatar October 14, 2009 1
    • © Empower Management Consulting LLC - All Rights Reserved Agenda Strategic Enterprise Management introduces broad agenda on how to efficiently implement Corporate Business Strategies to leverage Human Capital contributions for the organizational effectiveness with comprehensive framework that integrates SMART Objectives (KPIs) and Competency Models with Performance Appraisal practices, Compensation, Incentives, Career Development, Succession Planning, and Talents Acquisition processes. The Presentation shall introduce extensive information of the unlimited advantages through efficiently using measurement- based strategy model to achieve corporate business objectives by implementing Balanced Scorecard (BSC) concept as Strategic Enterprise Management (SEM) Tool to identify and communicate Corporate Business Strategies and deploy strategy roadmaps with clear Matrix and specific Metrics and cascade Strategic Objectives to effectively manage Human Capital. 2
    • © Empower Management Consulting LLC - All Rights Reserved Corporate Struggle!How to Design, Communicate, and Implement Business Strategy? 3
    • © Empower Management Consulting LLC - All Rights Reserved Corporate Dilemma!!! FIASCOHow to Align & Cascade Corporate Objectives and Evaluate Performance? 4
    • © Empower Management Consulting LLC - All Rights Reserved Today’s Business Challenges Global Recession & Financial Crisis: significant decline in the GDPs. Socioeconomic changes and Cost of Living Inflation/Fluctuations. Unclear Business Strategy & lack of Corporate Objectives. Transforming HR Management to Strategic Business Partner Role. Shortage of Technical Skills and swift migration of Talents. Employees’ expectations vs. Corporate directions. New Business Techniques and ERP/ICT Solutions. Ongoing Quality Improvement and demands for Service Excellence. Collaboration between Global Joint Ventures and Local Partners. Outsourcing: Availability, Commitment, Cost, Quality, Control. Globalization & Labor Laws (Amnesty, Human Rights, ILO). Global Alliances & widespread Competition (WTO & FTA). Governmental Regulations, Constrains, and Political conflicts. 5
    • © Empower Management Consulting LLC - All Rights Reserved Corporate Problems Leadership & Line Management! – No Authorization/Delegation – Unclear Accountability – Slow Decisions & Approvals Business Practices: – Outdated Policies & Procedures – Complicated & Inefficient Processes – Lost Data & Inaccurate Information – Disorganized Files and Lost Records – No Control & No Follow-up Inconsistent Communication Internal Audit & Legal Compliance Confidentiality: Rumors & Gossips Motivation & Loyalty: Reactive Behavior 6
    • © Empower Management Consulting LLC - All Rights Reserved Strategic Enterprise Management Values ……… ……… ……… ……… ……… ……… Critical Success Factors DemonstratedKey Performance Indicators Skills & Behaviors 7
    • © Empower Management Consulting LLC - All Rights Reserved Business Foundation (3 Pillars) Vision: Defines the desired or intended future state of a specific organization or enterprise in terms of its fundamental objective and/or strategic direction. Mission: Defines the fundamental purpose of an organization or an enterprise which is basically describing why it exists. Values: Beliefs that are shared among the Stakeholders of an organization. Values drive an organizations Behavior, Culture, Business Strategy, and Priorities. 8
    • © Empower Management Consulting LLC - All Rights Reserved Integrated Approach Integrated Business Strategy refers to management techniques, metrics and related tools that companies can use to make strategic decisions. It is important to link Business Strategy with Human Capital Management by Integrating Balanced Scorecards and Strategic Talents Management to translate Vision and Mission to Business Strategy and Objectives and Achievements for Corporate Competitive Advantage. 9
    • © Empower Management Consulting LLC - All Rights Reserved Business Strategy & Stakeholders Strategy defines the direction in which an organization intends to move and establishes the business framework and actions to achieve its Goals and Objectives. Stakeholders are Individuals, Groups, or other Entities that are affected by or have a vested interest in an organization’s Business Strategy, Policies or Decisions. 10
    • © Empower Management Consulting LLC - All Rights Reserved Stakeholders Influence/Power Suppliers Creditors Customers Unions Lobbyers Employees Organization Society ManagementGovernment Owners 11
    • © Empower Management Consulting LLC - All Rights Reserved Stakeholders’ Interests Owners: Business Acquisition, Brands, Assets, Reputation, Profitability (ROI), Corporate Governance (Audit), Growth, and Prospects, © & ®. Management: Accountability, Resources (Human, Technical, Financial), Competition, Costs, Productivity, Objectives, and Performance Outcomes. Employees: Salary, Benefits, Work Conditions, Training and Career Development, Promotion, Relationships, Job Security, and Satisfaction. Unions: Memberships, Dues, Collective Bargaining on Pay, Benefits, Work Conditions, Promotions, Job Security, Fair Business Practices. Creditors: Trustworthy, Assets, Liquidity (Cash-flow), New Contracts. Government: Regulations, Taxation, Inspection, Legal Compliance. Lobbyers: Environment, EEO, Human Rights, Disability, Business Ethics. Society: Corporate Social Responsibility, Contributions, and Activities. Customers: Quality, Value for Price, Refunds, Services, After-Sale Care, Warranty, Maintenance, Health & Safety, Durability, Reliability. Suppliers: Competition, Availability, Quantity, Delivery, Payments. 12
    • © Empower Management Consulting LLC - All Rights Reserved Business Model FrameworkINFRASTRUCTURE PARTNER OFFER CUSTOMER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMER CAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST FINANCE REVENUE STRUCTURE STREAMS a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams Source: Osterwalder (2004) The Business Model Ontology 13
    • © Empower Management Consulting LLC - All Rights Reserved Due-Diligence & Feasibility Internal ExternalS.W.O.T Strength Weakness Opportunity ThreatGovernmentShareholders Products Customers Financial Legal 14
    • © Empower Management Consulting LLC - All Rights Reserved Business Continuity - Risk Matrix ProbabilitySeverity Improbable Remote Occasional Probable FrequentCatastrophic Severe Critical Marginal Negligible 15
    • © Empower Management Consulting LLC - All Rights ReservedBusiness Strategy RevenueSatisfied CustomersValue-Added Services Efficient ProcessesTalents & Resources 16
    • © Empower Management Consulting LLC - All Rights ReservedBalanced Scorecard Model 17
    • © Empower Management Consulting LLC - All Rights Reserved Business Strategy Map (Sample) ProfitsFinancial Revenue from Revenue from Revenue from Improved New Customer New Services Alliances Operating EfficiencyCustomers World Value Ongoing Expand Alliances Class Added Reliable Business Partnerships Company Services Support ProspectsProcesses Business Productivity Marketing & New/Ongoing Benchmarking Knowledge Development & Quality Relationship Business Best Practices Management and Branding Services Management OpportunitiesEnterprise Admin & Media & Due Talents & Training & ICT Finance Public Diligence Resources Reward Support Services Relations 18
    • © Empower Management Consulting LLC - All Rights Reserved Performance Matrix and Metrics Objective Owner Projects Measures Targets ActualFinancialCustomersProcessesEnterprise 19
    • © Empower Management Consulting LLC - All Rights Reserved Master Plan (Deliverables)Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 20
    • © Empower Management Consulting LLC - All Rights Reserved Human Capital Performance Achievements ExpectationsWho, What, Which, Why, Where, When, and How? 21
    • © Empower Management Consulting LLC - All Rights ReservedManaging Human Capital Talents Acquisition Strategic Performance Management Objectives Competencies 360° Feedback Contributions & Demonstrated Achievements Skills/Behaviors Performance Appraisals Performance Strengths & Ratings/Outcomes Weaknesses Reward Development 22
    • © Empower Management Consulting LLC - All Rights Reserved Objectives Mgmt. Design Higher emphases on rewarding Achievements and Contributions Individual Objectives are based on: – Organization’s Business Plan; – Job Requirements (Job Description); – Additional Contributions (Value-Added). SMART Objectives (not Tasks) Specific KPIs & Weighting Factors Clear Rating Scale and Definitions Individual Objective’s Measures Objectives’ Overall Calculated Rating Ongoing Review and Alignment Self-Assessment & 360-Degree Feedback 23
    • © Empower Management Consulting LLC - All Rights Reserved SMART ObjectivesSpecificMeasurableAchievableResult-OrientedTime-FramedEnergizingRecordable 24
    • © Empower Management Consulting LLC - All Rights Reserved Cascading & AlignmentCorporate Objectives Business Strategy is Everyone’s Division Objectives Unit/Section Objectives Business! Individual Objectives Key Performance Indicators Targets and Measures 25
    • © Empower Management Consulting LLC - All Rights ReservedManaging Human Capital Talents Acquisition Strategic Performance Management Objectives Competencies 360° Feedback Contributions & Demonstrated Achievements Skills/Behaviors Performance Appraisals Performance Strengths & Ratings/Outcomes Weaknesses Reward Development 26
    • © Empower Management Consulting LLC - All Rights Reserved What is Competency?Competency is a specificrange of Skill, Knowledge, or Ability.Competencies are a set of Effective Actions and Demonstrated Behaviors that, if exhibited, produce Superior Performance. 27
    • © Empower Management Consulting LLC - All Rights ReservedCompetency Pyramid Behavior Feelings and Emotions Character Personality Social Interests Financial Needs Self-Perceptions and Self-Esteem Career Aspiration Hidden Expectations Unresolved Problems and Critical Issues from the Past Experience 28
    • © Empower Management Consulting LLC - All Rights Reserved Competency Domains Leadership: Required for all Employees who have direct responsibility for Individuals, Teams, or Projects. Corporate: Required for all Leadership Employees such as: Customer Service, Cost Effectiveness, and Quality. Generic: Required by Job Category Technical and such as: Information Seeking and Functional Analytical and Innovative Thinking. Technical & Functional: Skills and Generic Corporate Qualifications related to the specific functional discipline and unique to each Profession. 29
    • © Empower Management Consulting LLC - All Rights Reserved Competency Models (Dictionary) Linked to: – Vision & Mission – Core Values Aligned with Strategy: – Corporate Objectives – Individual Objectives Categories Definitions Importance Levels Key Actions Sample Job Activities Compared to Competency Matrix 30
    • © Empower Management Consulting LLC - All Rights ReservedManaging Human Capital Talents Acquisition Strategic Performance Management Objectives Competencies 360° Feedback Contributions & Demonstrated Achievements Skills/Behaviors Performance Appraisals Performance Strengths & Ratings/Outcomes Weaknesses Reward Development 31
    • © Empower Management Consulting LLC - All Rights Reserved Performance Appraisal Concept “Performance Appraisal is one of those special human encounters where the Manager gets no sleep the night before, and the Employee gets no sleep the night after!!” Performance Appraisal is an ongoing process that provides regular constructive feedback to employees so that they develop into skilled workers who are useful to the organization. A written Performance Evaluation is a way to formalize feedback process, and lets employees know how they perform. 32
    • © Empower Management Consulting LLC - All Rights Reserved Appraisal Techniques Checklists Rating Scales Ranking Methods: – Forced Distribution – Rank-Order System – Alternation Ranking – Paired Comparison Ranking Critical Incident Reports Work Standards Approach Management By Objectives Narrative or Essay Evaluations Behaviorally Anchored Rating Scales Multi-Rater Assessment (360° Feedback) Aligned and Linked with Balanced Scorecards 33
    • © Empower Management Consulting LLC - All Rights Reserved Why Everyone Avoid It? Process can be paper-intensive and time-consuming which requires excessive administrative efforts. Difficult to balance Employees’ Expectations & Organization’s Strategy. – Avoid honest feedback to prevent conflict. – No Time - Overloaded work schedule! – Conflicts on who owns the Appraisal Outcomes (Confidentiality Policy). Concerns of the effective integration between Employee’s Appraisal, Career Development, and Reward. Unclear Org Structure (Staff working on Shifts) and reporting relationships (Projects) which might be confusing! 34
    • © Empower Management Consulting LLC - All Rights Reserved Appraisal Errors Past Spillover Contrast Effect First Impression Central Tendency Bias or Clone Error Leniency or Severity Nagging and Begging Recent or Short Time-Span Halo or Horn Effect (Event) Halo or Horn Effect (Person) Inappropriate Time & Location Appraiser Talks Most of the Time Inadequate Observation (No Facts) Professional Background and Social or Cultural Influence 35
    • © Empower Management Consulting LLC - All Rights Reserved PM Problems! (Design) Not designed based on Performance Management Methodology Lack of Expert’s involvement Inadequate support from Management No buy-in from Employees Not linked to Corporate Business Plan: – Unclear Objectives & Expectations – No Accountability – Low Motivation Not linked to Training & Development Programs or Succession Plans Paper-based and manual processes which requires tedious follow-up from Supervisors and HR Staff 36
    • © Empower Management Consulting LLC - All Rights Reserved PM Problems! (Practice) Unclear Reporting Relationship (Matrix Structure ) Year-End Surprises and Bad News! Poor communication between Supervisors and Subordinates Unclear Rating Scale, Ambiguous Definitions and Measurement Criteria Subjective Performance Appraisals Vague Performance Outcomes Unrealistic Performance Ratings Many Complaints and Grievances Used mostly to determine: – Bonus & Salary Increases – Promotions, Transfers, Secondment – Downsizing, Layoffs, Terminations 37
    • © Empower Management Consulting LLC - All Rights Reserved PM Problems! (Outcomes) Sales & Profits Operational Costs Production Efficiency Customer Satisfaction Business Practices Improvement Streamlined Processes Quality and Standards Utilization of Materials/Equipments Incidents & Accidents Mistakes, Errors, and Repairs Training Costs Grievances and Complaints Employees Morale & Turnover 38
    • © Empower Management Consulting LLC - All Rights Reserved HR Management’s Faults Playing the Appraisal’s Cop! – Busy with distributing and collecting Forms – Chasing Supervisors to send Appraisal ASAP Thinking one Appraisal Model fits all Jobs – Using Complex Appraisal Systems/Forms – No training on constructive feedbacks – No communication on appraisal advantages Believing that a documented Appraisal will protect the Organization against Lawsuits by Employees Ignoring performance outcomes when an Employee’s Salary reached the max level and no longer tied to the appraisal results (no more merit increase!) 39
    • © Empower Management Consulting LLC - All Rights Reserved Supervisors’ Faults Spending more time on performance evaluation than planning and communication: – Appraisal is another “must-do” hassle – Appraisal is an opportunity to Blame! Comparing employees with each other Suddenly conducting appraisal meeting: – Canceling or postponing appraisal meeting – Surprises during appraisal review Thinking all employees performance should be evaluated with the same procedures and standards Playing “too-busy”, “I’m overloaded”, and “I have other important things to do”! 40
    • © Empower Management Consulting LLC - All Rights Reserved Employees’ Perceptions Biased and Unfair Supervisors: – Discrimination, Favoritism, and Nepotism – Subjective Performance Ratings (No Facts) Networking and Affiliation Influence No Training & Development Plans No Appreciation and Poor Motivation Management is not Walking the Talk Wrong Person in the Wrong Place Benchmarking & Ranking (Forced-Distribution) Performance Appraisals means Money and Promotion only Appraisal is used to justify Terminations 41
    • © Empower Management Consulting LLC - All Rights Reserved Human Nature Influence Employees Culture and Values (Nationality, Religion, Gender, Age) Communication Style: – Aggressive – Passive – Assertive Language Barriers (jargons) Educational Level Specialization & Work Experience Length of Service (Seniority) Position Level & Authority Past Appraisal Systems Employees Perceptions: – Expectations & Motivation – Comfort Zone (new system) 42
    • © Empower Management Consulting LLC - All Rights Reserved Options Do Nothing! Buy Off-the-Shelf System Hire Expensive Consultants Do it Internally (Strategic Focus): – Ensure Common Understanding of the Needs and Requirements – Ensure Support from Top Management – Ensure Line-Management’s Active Involvement and Buy-In – Involve Representatives from all Business Units/Departments – Develop Project Roadmap and Master-Plan with Flexible WBS – Benchmark with Best Practices – Educate, Communicate, and Communicate More! 43
    • © Empower Management Consulting LLC - All Rights Reserved Key Design Principles Design Logical and Practical System: – Don’t Copy & Paste! – Reflect Vision, Mission, and Values Clarify Roles and Responsibilities: – Ensure Commitment and Participation – Ensure Accountability for the Performance Expectations and Outcomes – Ensure Ongoing Education/Communication Integrate with other Corporate HR Processes (Reward, T&D, Succession) Develop “User-Friendly” IT Solutions Monitor, Measure, Track Achievements Report Success and Failures (if any!). Ensure Continuous Improvements 44
    • © Empower Management Consulting LLC - All Rights Reserved EDCOM Strategy Project Identity (Logo & Slogan) Change Management Strategy Objectives and Desired Outcomes Information Cascading Process Train-the-Trainer Workshops: – Subject Matter Experts – Process Coordinators Promotional Items/Gifts Motivational Posters Project Homepage (Intranet) e-Mails & Newsletters Update Clear & Consistent Messages Rollout & Implementation Sessions 45
    • © Empower Management Consulting LLC - All Rights Reserved Change Management Change Strategy: Phase-In or Pilot Implementation? Scope of Change: – Structure, Processes, – People, Systems Resources & Action Plan Resisting Change: – Comfort Zone & Job Security – Assumptions & Perceptions – Complex Processes – Not User-Friendly System – Language Barriers – Poor Communication Mitigating and Managing Risks Outcomes Evaluation & Impact Analyses 46
    • © Empower Management Consulting LLC - All Rights Reserved Key Success Factors Executive Management Support Line Management Involvement Employees Buy-In Decision Making & Approval Budget & Financial Ability Available Tools & Logistics Third Partys Involvement Teamwork: – Availability & Dedication – Workload & Commitments – Work Schedules & Vacations Information and Documents Work Materials 47
    • © Empower Management Consulting LLC - All Rights Reserved Monitoring and Audit HR Management Responsibility: – Educate and Communicate – Monitor and Follow-Up Process – Provide Ongoing Support – Suggest System Improvements Moderation Panel Responsibility: – Verify Documented Justifications – Identify Subjective Outcomes – Clarify Irrational Decisions – Ensure Company-wide Consistency – Validate Regression & Impact Analyses Executive Committee Responsibility: – Approve Performance Outcomes – Review Executive Reports – Provide Directions for the Future 48
    • © Empower Management Consulting LLC - All Rights Reserved Executive Reports Objective’s Achievements: – SMART & Consistent, – Target Dates, – Weightage, – Key Performance Indicators. Reward Budget vs. Actual. Training Requirements. Training Days/Hours. Succession Planning Pool. Development Progress. Recognition and Awards. Benchmark Best Practices. Improvement Areas. 49
    • © Empower Management Consulting LLC - All Rights Reserved Regression Analysis Correlation Between Performance Ratings and: – Function/Discipline – Sector/Unit – Job Categories – Position Grade & Classification – Salary Level (Min, Mid, Max) – Nationalities, Gender, Age – Educational Level – Years of Relevant Experience – Length of Active Service (Seniority) – Appraiser’s Effectiveness – Disciplinary Actions – Past Performance – Absence Rates 50
    • © Empower Management Consulting LLC - All Rights Reserved Roles & ResponsibilitiesHR Management Supervisors Subordinates• Develop & Implement • Assign Objectives, KPIs, • Set Individual SMART Strategic PM System and Priorities for each Objectives• Train End-Users Subordinate • Clarify Expectations• Coordinate the Process • Conduct Ongoing Work- (KPIs) with Supervisor Progress Review • Work as a Team-Player• Monitor Outcomes • Provide Constructive and Collaborate with all• Keep Records and Performance Feedback Colleagues Compile Analyses/Reports • Avoid Rating Mistakes • Develop Value-Added• Assist Supervisors in Results dealing with Poor • Rationalize and Justify Performance and Appraisal Decisions with • Report Progress and seek Competency Gaps Events and Facts Help when needed• Mediate or Arbitrate • Identify Performance • Participate in the 360° Employees’ Grievances Deficiencies Assessment (if needed)• Administer Reward & • Formulate Performance • Exchange Constructive Recognition Programs and Improvement Plans Feedbacks Training Courses • Follow-up & Follow-up!! • Be Optimistic!!! 51
    • © Empower Management Consulting LLC - All Rights Reserved 52
    • © Empower Management Consulting LLC - All Rights ReservedContact Us!Mohamad J. SammanFounder & Managing PartnerEmpower Management Consulting LLCMJS@EmpowerMC.comwww.EmpowerMC.comMobile (+974) 586-1741Phone (+974) 411-7561Fax (+974) 479-5917P.O. Box 11537 - Doha, State of Qatar 53