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130208 cf explanation for website

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  • 1. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH Performance Management should include activities that ensure that goals are consistently being met in an efficient and effective manner, making best use of resources available to the organisation. Performance Management should also address issues around behaviour of individuals, teams, and groups as they interact within and across the business, and with suppliers, clients, customers, and other stakeholders. Performance Management may focus on the performance of an organisation, a department, team or individual employee. Performance Management may also focus on the systems, processes, and procedures followed or utilised in order to deliver goods or services.
  • 2. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH 'Competency' and ‘competencies’ may be defined as the behaviours (and, where appropriate, technical attributes) that individuals must have, or must acquire, to perform effectively at work – that is, the terms focus on the personal attributes or inputs of the individual. 'Competence' and ‘competences’ are broader concepts that encompass demonstrable performance outputs as well as behaviour inputs, and may relate to a system or set of minimum standards required for effective performance at work. A ‘Competency Framework’ is a structure that sets out and defines each individual competency (such as problem-solving or people management) required by individuals working in an organisation or part of an organisation.
  • 3. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH We seek to establish a clear distinction between being seen as competent – that is, you can do WHAT is asked of you, and competencies – the way in which we describe HOW you need to do that if you are to perform at a given and desired level. This distinction between WHAT you do and HOW you do it is critical in terms of giving businesses the ability to measure facets of performance that previously they simply did not recognise. The term ‘Competence’ was used to describe what people need to do to perform a job and was concerned with effect and output rather than effort and input. ‘Competency’ described the behaviour that lies behind competent performance, such as critical thinking or analytical skills, and describes the value people bring to the job – how they do that job. . In recent years, there has been growing awareness that job performance requires a mix of behaviour, attitude and action and hence the two terms are now more often used to reflect the two sides of the performance coin.
  • 4. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH We focus on two key means of capturing PERFORMANCE: By measuring OUTPUT – that is, how well someone does in achieving targets and objectives set for or by them. Often more a measure of CAPACITY rather than capability. By measuring against preset CRITERIA (Competencies) – that is, how well someone does in achieving levels of performance against organisational best practice – usually a measure of ATTRIBUTES and / or BEHAVIOURS Both have benefits and drawbacks.
  • 5. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH By measuring OUTPUT Output is achieved by delivering against preset Objectives, Goals, Targets, etc. If these Objectives, etc., are NOT linked to the key Goals of the Organisation, then achieving them may not necessarily contribute VALUE to the Organisational effort. This may lead to wasted or misdirected effort Also, measuring OUTPUT tells you WHAT is being achieved, but not HOW it is being achieved. Individuals could be delivering against their objectives but in a way that harms other aspects of the organisational. .
  • 6. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH By measuring OUTPUT IF Objectives, etc., are aligned to organisational effort, then examining how well (or not) someone is performing in achieving these objectives can tell us a lot about the Organisation: How close are we to achieving our Strategic Aims? Do we allocate resources correctly? (Capacity Planning) Are our Processes and Systems working effectively? Are we ‘joined up’ in working as an Organisation? (Synergous Thinking) Do our staff have the Skills and Knowledge to operate in the way we wish them to? (Capability Building)
  • 7. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH By measuring COMPETENCY Measuring attributes and behaviours is difficult – it requires self-awareness in the individual, and the investment of time by the manager to properly observe those behaviours in his or her staff. Such measurements are inevitably quite Qualitative in character. This means managers and staff need some training in how best to conduct such assessment. There is the risk of personal values, principles, or standards encroaching the assessment field. An organisation that acts in accordance with organisational norms or best practice does not necessarily achieve the outputs they are required to. There is often no direct correlation between HOW we are behaving and the attributes we have and WHAT we are actually delivering.
  • 8. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH By measuring COMPETENCY If we can find a way of aligning Competency against key Organisational needs, then driving key attributes and behaviours against a best practice model is a powerful performance enhancement tool. We give ALL of our staff the means by which they can more effectively examine their own performance and that of others with whom they work, and the power to comment on such performance in their day to day work. We drive best practice across the business, reinforcing key messages regarding our Vision, values, and the way we wish to be perceived by others (Branding) We stop staff from behaving in ways that damage our reputation, or impact negatively on other staff members, clients, or customers
  • 9. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH What is critical for any Performance Management System is that individual effort and behaviours are linked to Strategic Intent and Business-Level goals. This needs a use of a system that defines an individual’s contribution to the Needs of the Organisation at a Business / Strategic level. SO TURNING THIS ! ? ? INTO THIS CREATES THIS VALUE FOR THE ORGANISATION
  • 10. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH Imagine your organisation was an Orchestra. So where do people get their ‘Lead’ to ensure they are all on the same songsheet? Where does that lead come from? Who is responsible for providing it? Who ensures everyone has the songsheet from which to work? How do people know that they are on the right songsheet? When do they know to come in, to make their contribution in the most efficient, effective, and economic way? Who tells them that they need to sing louder? Slow down? Speed up? Raise their pitch?
  • 11. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH Defining Contribution At All Levels Of The Business Strategic /Corporate Goals Key Business Projects / Activities TARGETS MEASURES TOP MANAGEMENT SMARTER Objectives MEASURES TARGETS Departmental Projects / Activities DEPARTMENT / TEAM INDIVIDUAL SMARTER Objectives MEASURES TARGETS Individual tasks, action s. projects This is what we call CASCADE – a means of ensuring everyone is on that same songsheet. Everyone knows how their day to day work is linked to the achievement of Strategy. Also everyone knows when they are engaged on work or in activities that DO NOT make a valid contribution.
  • 12. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH Defining Contribution At All Levels Of The Business Strategic /Corporate Goals Individual tasks, action s. projects If individuals see that what they do has a direct contribution to what the organisation is trying to achieve, then this has a positive impact on levels of motivations, commitment and increased confidence in employees.
  • 13. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH One thing that is CRITICAL when measuring performance is that any assessment criteria are directly linked to organisational need. That is, that ALL Objectives flow from the Strategic Intent of the business – so every time an individual completes a task or achieves an objective or target, he or she is confident they have contributed value to the organisation. (DOING THE RIGHT THINGS RIGHT) When seeking to measure Behaviour and Attributes by Competencies, that any Behavioural Competency Framework is embedded within the organisational needs, and that individual competencies reflect key behaviours needed to deliver value in that area. We refer to this as the Organisational ‘TERRITORY’ – it is a Map of what is important to the business to achieve if it is going to be successful and achieve its long term strategic goals.
  • 14. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH We divide this map up into what we call Key Performance Areas. GETTING THINGS DONE BEING CONSISTENT AWARENESS OF OUR CUSTOMERS CAPABILITY & CAPACITY An example of what that Territory might look like These areas are designed to ensure the organisation is focussed on doing the Right Things Right at every level. They also ensure that the organisation is balanced in its approach to defining performance needs and that ALL of the territory is covered in equal measure.
  • 15. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH KEY PERFORMANCE AREAS If you were using a Balanced Scorecard approach, these would be: FINANCE PROCESS FOCUS CUSTOMER FOCUS LEARNING & GROWTH Or we can add others or replace certain labels, so:: ENVIRONMENTAL AWARENESS MISSION EXECUTION Sometimes organisations prefer to use their own labels, so: CUSTOMER FOCUS often becomes ADAPTABILITY or AGILITY PROCESS FOCUS becomes CONSISTENCY or CONFORMANCE FINANCE becomes OUTCOME FOCUS
  • 16. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH KEY PERFORMANCE AREAS When we build a Competency Framework for an organisation, we define the Territory in more detail. We identify the key issues that need to be addressed in each element of the Territory. To do this, we work with the client to create five, six or seven key attributes of that element of territory – on which we can fasten competencies. Those competencies define the RIGHT WAY of doing things for individuals who have to work predominately in that sector. Then we overlay a series of Competency Statements that define the core behaviours, and technical attributes that support the achievement of critical objectives (the Mission) for each Key Performance Area.
  • 17. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH KEY PERFORMANCE AREAS By completing this overlay, we are able to show the organisation the following: What is really important to the business in terms of its focus of attention. What Critical Success Factors are needed if the business is going to be successful in achieving its critical Key Performance Area Objectives. What Competencies are most likely to support the achievement of critical goals. What the benefits of completing this ‘mapping’ exercise might be to that organisation. How to proceed from there with appropriate Change Initiatives that will lift organisational performance and ensure the organisation does the RIGHT THINGS RIGHT.
  • 18. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH USING THE COMPETENCY FRAMEWORK Each individual can now have an Individual Competency Profile established for his or her job. ALL job descriptions will have a Competency Profile established as part of that role definition. Competency Profiles will encompass a mix of behavioural and technical attribute Competencies. This ensures the organisation has a strong mix of attributes and behaviours at the heart of all staff actions and interactions.
  • 19. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH USING THE COMPETENCY FRAMEWORK Each Competency comprises: An overarching statement that defines exactly what this competence addresses. Example: Competency: Communication Only the most responsive, flexible and agile businesses prosper in today's competitive global marketplace. Effective communication is a critical factor in achieving this success. It requires the business to communicate effectively its strategy, values, objectives, and other critical information, not only to its workforce but also to customers and suppliers. Day-to-day communication inside and outside the organisation should take place comfortably and consistently. Effective communication is about joint and equal participation, where senders and receivers interact to share information, advice, knowledge, and organisational learning.
  • 20. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH USING THE COMPETENCY FRAMEWORK Each Competency comprises: A series of progressively more complex statements of performance which define what GOOD looks like. There are five distinct levels of performance. These range from simple actions at A to a much more multifaceted statement at E. The competency – COMMUNICATION is shown here: Level A Engaging Communicates relevant information clearly and unambiguously. Listens and responds appropriately to others. Level B Happening Level C Working Level D Embedded Level E Driving Able to communicate information in a variety of different situations, employing a range of communication tools to get their message across. A confident communicator, both formally and informally. Able to employ appropriate influencing and persuading strategies to maintain effectiveness in difficult situations…… Uses a range of communication techniques to engage with and involve others in ways that anticipate and meet the needs and interests of their audience. Able to process data……. A skilful communicator who uses advanced communication techniques to maintain effectiveness in hostile, sensitive and/or complex situations. Uses communication as a tool to help……
  • 21. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH USING THE COMPETENCY FRAMEWORK Level A Engaging Communicates relevant information clearly and unambiguously. Listens and responds appropriately to others. Level B Happening Level C Working Level D Embedded Level E Driving Able to communicate information in a variety of different situations, employing a range of communication tools to get their message across. A confident communicator, both formally and informally. Able to employ appropriate influencing and persuading strategies to maintain effectiveness in difficult situations…… Uses a range of communication techniques to engage with and involve others in ways that anticipate and meet the needs and interests of their audience. Able to process data……. A skilful communicator who uses advanced communication techniques to maintain effectiveness in hostile, sensitive and/or complex situations. Uses communication as a tool to help…… These levels do not directly correlate with levels of management in an organisation, although it is more likely that managers will have profiles in the C D E range, whilst operators and other staff may be in the A B C range. It is not impossible that a non-manager (perhaps a very knowledgeable technician) may have some elements of their profile as C D or even E.
  • 22. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH USING THE COMPETENCY FRAMEWORK Finally, we have defined a number of potential observable actions / behaviours that a manager or colleague might see should an individual be working at a specific level of competence as defined in the previous slide. As an example, here is LEVEL C of COMMUNICATION: C  A confident communicator, both formally and informally. Able to employ appropriate influencing and  persuading strategies to maintain effectiveness in difficult situations. Able to facilitate effective  information exchange through the organisation. Able to represent the views of his or her team or functional group at cross-functional meetings or discussions, and/or to an unfamiliar audience. Takes time to discuss issues with work colleagues, and is able to influence or persuade them to pursue alternative courses of action to which they were initially disinclined. Provides a consistent and high-quality flow of information to individuals, teams, and groups around the organisation with whom he or she is required to interact. These observable outcomes may be used by the individual to self assess their performance and to create evidence for an Appraisal conversation. They may also be used by the manager to do the same – to highlight areas where he or she sees evidence or not of performance at this level
  • 23. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH By combining OUTPUT-based measurements – WHAT are people doing, along with COMPETENCY-based assessment – HOW are they doing it, we get a powerful toolset for understanding how well the business is doing and what needs to be done to either leverage or improve performance as appropriate and necessary. The toolsets are easy to deliver – they do need the business to be certain as to what GOOD LOOKS LIKE – what really is important to the business if it is to achieve its overarching strategic goals and execute its mission effectively, efficiently, and economically. We can help your organisation to put in place a system of measurement, appraisal, and subsequent management of performance, based on these simple tools. For more information, please contact Amanda or Bernard at the ‘contact us’ section of the website.