A Road-map to Improving Schemes Administrative capacity: The case of NSSF Uganda David Lambert Tumwesigye Performance Inte...
Key Initiatives aimed at improving administrative  capacity at NSSF <ul><li>Strategic Management  </li></ul><ul><li>Enterp...
Objective of the presentation <ul><li>To share NSSF’s Strategic Management  experience  and  practical steps  to improving...
Outline <ul><li>NSSF’s Strategic Management process </li></ul><ul><ul><li>Defining  the vision & mission  (corporate goals...
Strategic Management <ul><li>a set of  decisions  and  actions  resulting in  formulation and implementation of strategies...
Thursday, June 3, 2010 NSSF’s  approach to strategic Management What is desired? What is possible? Adapted from Pierce & R...
Critical Stages of Strategic Management <ul><li>Determining the mission of the organisation, including broad statements ab...
Critical Stages of Strategic Management <ul><li>Analysis of possible options uncovered in the matching of the organisation...
Critical stages of Strategic Management <ul><li>Development of annual objectives and short-term strategies compatible with...
Thursday, June 3, 2010
The NSSF Strategy Formulation process <ul><li>Background Research  </li></ul><ul><li>Strategic Planning meeting </li></ul>...
The NSSF Strategy Formulation process <ul><li>The SPG conceptualised and agreed: </li></ul><ul><ul><li>Mission </li></ul><...
What drives us? <ul><li>NSSF’s  Corporate Strategic Plan is  driven by our Vision and Mission and the challenges/Opportuni...
Our VISION <ul><ul><li>“ To be the Region’s  leading   social security provider, delivering a  wide range  of  quality pro...
Our MISSION <ul><li>We commit to : </li></ul><ul><ul><li>Provide meaningful retirement benefits to our  MEMBERS  both in t...
Our Values <ul><ul><li>To provide a moral campus to NSSF staff and guide our conscience and behaviour in decision making a...
Key NSSF Stats Thursday, June 3, 2010
KEY STATISTICS <ul><li>Active membership: 240,622 </li></ul><ul><li>Active employers: 4830 </li></ul><ul><li>Benefit Payab...
Thursday, June 3, 2010
Thursday, June 3, 2010
Thursday, June 3, 2010
Thursday, June 3, 2010
Thursday, June 3, 2010
NSSF Long-term Objectives-2012 <ul><li>Profitability - 30% C-I </li></ul><ul><li>Return on Investment- 20% </li></ul><ul><...
NSSF SWOT Analysis, Mar 2007 Thursday, June 3, 2010
Why SWOT analysis?
Thursday, June 3, 2010
Long-term  Objectives <ul><li>The specific ,measurable ,achievable and consistent results an organisation seeks over a mul...
<ul><li>Profitability  </li></ul><ul><li>Return on Investment </li></ul><ul><li>Interest to Members </li></ul><ul><li>Comp...
<ul><li>Operations Re-engineering </li></ul><ul><li>Needs Assessment  </li></ul><ul><li>Decentralisation  </li></ul><ul><l...
Thursday, June 3, 2010
Annual objectives <ul><li>Translate ;long-range aspirations into this year’s budget </li></ul><ul><li>Provide  CLARITY  –a...
NSSF Annual objectives and Targets 2009/10 <ul><li>Profitability: </li></ul><ul><ul><ul><li>Gross Margin 71% </li></ul></u...
NSSF Annual objectives and Targets 2009/10 <ul><li>Competitive Position </li></ul><ul><ul><li>Membership 50,000 New member...
NSSF Annual objectives and  Targets 2009/10 <ul><li>Technological Leadership </li></ul><ul><ul><li>Stabilise IMIS Leverage...
NSSF Annual objectives and Targets 2009/10 <ul><li>Employee Development </li></ul>Thursday, June 3, 2010
NSSF Annual objectives and Targets 2009/10 <ul><li>Public Responsibility </li></ul><ul><ul><li>Public Survey 75% positive ...
Institutionalizing the strategy <ul><li>Annual objectives ,  functional strategies  and specific  business policies  commu...
Annual/Functional Strategies <ul><li>Translate the grand strategy into  action plans  for Departments of NSSF </li></ul><u...
Institutionalizing the strategy <ul><li>Three organizational elements provide the fundamental, long-term means of institut...
Institutionalising the strategy-from plans to action <ul><li>Structures- </li></ul><ul><ul><li>Post –formulation communica...
Monitoring and Control <ul><li>Role of Managing Director </li></ul><ul><ul><li>Leadership ,Communication and overseeing Ex...
Monitoring and Control <ul><li>PIU collects monthly data on key performance indicators; analyses  and reports to MD/ExCo. ...
Why review the  strategy? <ul><li>To address two sets of questions: </li></ul><ul><li>Are we moving in the right direction...
NSSF’s  Performance Management System Thursday, June 3, 2010
Performance Management <ul><li>Communication of Annual Strategies to staff </li></ul><ul><li>Departments agree Annual Perf...
What is Performance Measurement <ul><li>The process of quantifying past actions; </li></ul><ul><ul><li>where measurement i...
The fundamental dimensions of performance <ul><li>EFFECTIVENESS </li></ul><ul><li>The extent to which stakeholder requirem...
Therefore: <ul><li>Performance management  </li></ul><ul><li>is the  process  of  quantifying  </li></ul><ul><li>the effic...
Why measure? <ul><li>To track whether planned actions are actually implemented </li></ul><ul><li>Communicate strategies wi...
Development and deployment of a performance measurement system Design Plan & Build Implement  & Operate Refresh <ul><li>Se...
Process 1 DESIGN <ul><li>Select measures/indicators </li></ul><ul><li>Define metrics </li></ul>
Measures definition <ul><li>Critical questions before design: </li></ul><ul><ul><li>What is the reason for this measure </...
Measures/indicator definition template Measure/indicator: Purpose Relates to: Metric/Formula: Target Level(s): Frequency: ...
Have you designed a good measure? <ul><li>The truth test-Are we  really  measuring what we set out to measure? </li></ul><...
Process 2 PLAN & BUILD <ul><li>Develop systems and practices </li></ul><ul><li>Communicate intentions </li></ul>
Plan and Build <ul><li>Develop supporting systems and practices </li></ul><ul><ul><li>Plan to gain access to required data...
Plan and Build <ul><li>Data Acquisition </li></ul><ul><ul><li>Data capture at individual transaction level </li></ul></ul>...
Plan and Build <ul><li>Analysis and Reporting </li></ul><ul><ul><li>Agree content </li></ul></ul><ul><ul><li>Agree present...
Process 3 IMPLEMENT  & OPERATE <ul><li>Apply systems and practices </li></ul><ul><li>Manage with measures </li></ul>
Implement and Operate <ul><li>Beyond measurement to MANAGEMENT </li></ul><ul><ul><li>Managing with the data- i.e. action a...
Implement and Operate <ul><li>Check data veracity </li></ul><ul><ul><li>Garbage in, garbage out </li></ul></ul><ul><li>Mon...
The Data to Decisions cycle Data &  Information Analysis &  Interpretation Insights &  Judgement Decisions & Actions Cause...
Process 4 REFRESH <ul><li>Refine applications </li></ul><ul><li>Review relevance </li></ul>
Managing and Refreshing System <ul><li>Manage the system: </li></ul><ul><ul><li>System should be dynamic and updateable  <...
Managing and Refreshing System <ul><li>Conduct regular measures and Management practice Audits </li></ul><ul><ul><li>Are t...
The diagnostic audit framework Business Performance Are the right things being measured? Are they being measured the right...
Challenges <ul><li>Change management-attitude towards performance measurement and accountability </li></ul><ul><li>The lea...
Key Successes <ul><li>Improved governance-management is able to keep fingers on the pulse </li></ul><ul><li>Ownership of s...
Conclusion <ul><li>These Annual Objectives and Strategies are a response to a  NEED  to optimise our SWOT in order to fulf...
THANK YOU Thursday, June 3, 2010
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A Road Map To Improving Social Security Schemes Administrative Capacity

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A presentation of National Social Security Fund oif Uganda\'s Strategic Management framework.

Presented to social security managers at ECASSA\'s regional training programme in Kampala

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A Road Map To Improving Social Security Schemes Administrative Capacity

  1. 1. A Road-map to Improving Schemes Administrative capacity: The case of NSSF Uganda David Lambert Tumwesigye Performance Intelligence Manager Thursday, June 3, 2010 ECASSA SOCIAL PROTECTION ADMINISTRATION WORKSHOP FOR SENIOR MANAGERS: 22 ND -26 TH MARCH 2010, KAMPALA UGANDA
  2. 2. Key Initiatives aimed at improving administrative capacity at NSSF <ul><li>Strategic Management </li></ul><ul><li>Enterprise-wide Risk Management </li></ul><ul><li>Integrated Management Information System </li></ul>Thursday, June 3, 2010
  3. 3. Objective of the presentation <ul><li>To share NSSF’s Strategic Management experience and practical steps to improving capacity to develop and execute plans and monitor /review progress towards corporate objectives </li></ul>Thursday, June 3, 2010
  4. 4. Outline <ul><li>NSSF’s Strategic Management process </li></ul><ul><ul><li>Defining the vision & mission (corporate goals) </li></ul></ul><ul><ul><li>Planning to attain corporate goals </li></ul></ul><ul><ul><li>Communicating corporate objectives </li></ul></ul><ul><ul><li>Guiding, empowering and motivating staff </li></ul></ul><ul><ul><li>Translating plans into action </li></ul></ul><ul><ul><li>Performance Measurement-Monitoring progress and results </li></ul></ul>Thursday, June 3, 2010
  5. 5. Strategic Management <ul><li>a set of decisions and actions resulting in formulation and implementation of strategies designed to achieve the objectives of an organisation. </li></ul><ul><li>It involves attention to no less than 9 critical areas: </li></ul>Thursday, June 3, 2010
  6. 6. Thursday, June 3, 2010 NSSF’s approach to strategic Management What is desired? What is possible? Adapted from Pierce & Robinson, Strategic Management, 2005 Company Mission Company Profile External Environment- Strategic analysis and choice Grand strategy Long term objectives Operating strategies Annual objectives Policies Institutionalisation of strategy Control and evaluation Feedback Feedback Legend Major impact Minor impact
  7. 7. Critical Stages of Strategic Management <ul><li>Determining the mission of the organisation, including broad statements about its purpose, philosophy and goals </li></ul><ul><li>Developing an organisation profile that reflects internal conditions and capabilities </li></ul><ul><li>Assessment of the organization's external environment, in terms of both competitive and general contextual factors </li></ul>
  8. 8. Critical Stages of Strategic Management <ul><li>Analysis of possible options uncovered in the matching of the organisation’s profile with the external environment </li></ul><ul><li>Identifying the desired options uncovered when possibilities are considered in light of the organisation’s mission </li></ul><ul><li>Strategic choice of a particular set of long-term objectives and grand strategies needed to achieve the desired options </li></ul>
  9. 9. Critical stages of Strategic Management <ul><li>Development of annual objectives and short-term strategies compatible with long-term objectives and grand strategies </li></ul><ul><li>Implementing strategic choice decisions based on budgeted resource allocations and emphasizing the matching of tasks, people, structures, technologies and reward systems </li></ul><ul><li>Review and evaluation of success of the strategic process to serve as a basis for control and as an input for future decision making </li></ul>
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  11. 11. The NSSF Strategy Formulation process <ul><li>Background Research </li></ul><ul><li>Strategic Planning meeting </li></ul><ul><li>Strategic Planning group (SPG): </li></ul><ul><ul><li>BOD </li></ul></ul><ul><ul><li>Exco </li></ul></ul><ul><ul><li>Senior Managers </li></ul></ul><ul><li>Collective Bargaining and Team Building during the strategy formulation process </li></ul>Thursday, June 3, 2010
  12. 12. The NSSF Strategy Formulation process <ul><li>The SPG conceptualised and agreed: </li></ul><ul><ul><li>Mission </li></ul></ul><ul><ul><li>Vision </li></ul></ul><ul><ul><li>Values </li></ul></ul><ul><ul><li>Company profile </li></ul></ul><ul><ul><li>SWOT analysis </li></ul></ul><ul><ul><li>Critical Success factors </li></ul></ul><ul><ul><li>Long- term Objectives </li></ul></ul><ul><ul><li>Grand strategy </li></ul></ul><ul><ul><li>Annual Objectives </li></ul></ul><ul><li>The strategy is reviewed annually </li></ul>Thursday, June 3, 2010
  13. 13. What drives us? <ul><li>NSSF’s Corporate Strategic Plan is driven by our Vision and Mission and the challenges/Opportunities that face us </li></ul><ul><li>It represents our strategic response </li></ul>Thursday, June 3, 2010
  14. 14. Our VISION <ul><ul><li>“ To be the Region’s leading social security provider, delivering a wide range of quality products and services and a real return to our members, while driving economic development and sustaining a competitive advantage in a free market.” </li></ul></ul>Thursday, June 3, 2010
  15. 15. Our MISSION <ul><li>We commit to : </li></ul><ul><ul><li>Provide meaningful retirement benefits to our MEMBERS both in terms of service, and real value; </li></ul></ul><ul><ul><li>Provide an efficient and convenient system to EMPLOYERS , for the purposes of meeting their own and their employees’ NSSF obligations; </li></ul></ul><ul><ul><li>Contribute to Uganda’s ECONOMIC DEVELOPMENT by effecting economically strategic investments; and </li></ul></ul><ul><ul><li>Recruit , train, develop and retain the best and the brightest STAFF , in order to secure organisational excellence.” </li></ul></ul>Thursday, June 3, 2010
  16. 16. Our Values <ul><ul><li>To provide a moral campus to NSSF staff and guide our conscience and behaviour in decision making and action </li></ul></ul><ul><ul><ul><li>[Q I T E C I A] </li></ul></ul></ul><ul><ul><ul><li>Quality | Integrity | Teamwork | Efficiency </li></ul></ul></ul><ul><ul><ul><li>Commitment | Innovation | Accountability </li></ul></ul></ul>Thursday, June 3, 2010
  17. 17. Key NSSF Stats Thursday, June 3, 2010
  18. 18. KEY STATISTICS <ul><li>Active membership: 240,622 </li></ul><ul><li>Active employers: 4830 </li></ul><ul><li>Benefit Payable per month: UGX 5.5 bn to approx 10000 members (annually) </li></ul><ul><li>Contribution collected per month: UGX 22.5 bn </li></ul><ul><li>Net worth: UGX 1.5b [DEC 2009] </li></ul>Thursday, June 3, 2010 1$=Ug SHS 2140
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  21. 21. Thursday, June 3, 2010
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  24. 24. NSSF Long-term Objectives-2012 <ul><li>Profitability - 30% C-I </li></ul><ul><li>Return on Investment- 20% </li></ul><ul><li>Interest to Members 12% </li></ul><ul><li>Competitive Position 600K members, UgX 2.3t , 85%ile, 24 Branches, CRM, 5 new benefits </li></ul><ul><li>Technological Leadership 35 New innovations </li></ul><ul><li>Productivity AB 7 days , SB 14 days </li></ul><ul><li>Employee relations 80% + </li></ul><ul><li>Employee development 216 professionals </li></ul><ul><li>Public Responsibility 80% + </li></ul><ul><li>Political correctness 15000 jobs, 7000 houses </li></ul>Thursday, June 3, 2010
  25. 25. NSSF SWOT Analysis, Mar 2007 Thursday, June 3, 2010
  26. 26. Why SWOT analysis?
  27. 27. Thursday, June 3, 2010
  28. 28. Long-term Objectives <ul><li>The specific ,measurable ,achievable and consistent results an organisation seeks over a multi-year period </li></ul><ul><li>Long-term objectives form the basis of the grand strategies the Fund chose to apply over the next 5 years to: </li></ul><ul><ul><li>Magnify its key strengths; </li></ul></ul><ul><ul><li>Remedy its key weaknesses; </li></ul></ul><ul><ul><li>Effectively exploit its key opportunities; and </li></ul></ul><ul><ul><li>Avert its key threats </li></ul></ul>Thursday, June 3, 2010
  29. 29. <ul><li>Profitability </li></ul><ul><li>Return on Investment </li></ul><ul><li>Interest to Members </li></ul><ul><li>Competitive Position </li></ul><ul><li>Technological Leadership </li></ul><ul><li>Productivity </li></ul><ul><li>Employee relations </li></ul><ul><li>Employee development </li></ul><ul><li>Public Responsibility </li></ul><ul><li>Political correctness </li></ul>Thursday, June 3, 2010 Long-term Objectives Thursday, June 3, 2010
  30. 30. <ul><li>Operations Re-engineering </li></ul><ul><li>Needs Assessment </li></ul><ul><li>Decentralisation </li></ul><ul><li>Organisational Structure </li></ul><ul><li>Staff rationalisation </li></ul><ul><li>Enterprise Resource Planning (ERP)- IMIS -- > DII </li></ul><ul><li>Withholding Tax </li></ul><ul><li>Litigation cases </li></ul><ul><li>Organisational Culture </li></ul><ul><li>Business Continuity Plan & Disaster Recovery Plan </li></ul><ul><li>Outsourcing for efficiency and economic purposes </li></ul><ul><li>Investment Portfolio Mix Rebalancing </li></ul>Thursday, June 3, 2010 Critical Success factors
  31. 31. Thursday, June 3, 2010
  32. 32. Annual objectives <ul><li>Translate ;long-range aspirations into this year’s budget </li></ul><ul><li>Provide CLARITY –a powerful motivating facilitator for effective strategy implementation </li></ul><ul><li>Provide a specific basis for monitoring and controlling organisational performance </li></ul>Thursday, June 3, 2010
  33. 33. NSSF Annual objectives and Targets 2009/10 <ul><li>Profitability: </li></ul><ul><ul><ul><li>Gross Margin 71% </li></ul></ul></ul><ul><ul><ul><li>Cost/Income ratio 29% </li></ul></ul></ul><ul><ul><ul><li>Income UGX 166b </li></ul></ul></ul><ul><li>Return on Investment </li></ul><ul><ul><ul><li>ROI 15.30% </li></ul></ul></ul><ul><li>Interest to members </li></ul><ul><ul><ul><li>Interest 8.5% </li></ul></ul></ul><ul><ul><ul><li>Amount UGX 110bn </li></ul></ul></ul>Thursday, June 3, 2010
  34. 34. NSSF Annual objectives and Targets 2009/10 <ul><li>Competitive Position </li></ul><ul><ul><li>Membership 50,000 New members </li></ul></ul><ul><ul><li>Asset base UGX 1600bn </li></ul></ul><ul><ul><li>Branch Network No new branches </li></ul></ul><ul><ul><li>Re-branding Maintain Status Quo </li></ul></ul><ul><ul><li>Customer focus 70% positive feedback </li></ul></ul><ul><ul><li>Distribution Decentralise operations </li></ul></ul><ul><ul><li>Investment portfolio Fixed Income 65% </li></ul></ul><ul><ul><li>Real Estate 20% </li></ul></ul><ul><ul><li>Equity 15% </li></ul></ul><ul><ul><li>Innovative products Conceptualise new products: </li></ul></ul><ul><ul><li>Medical Insurance benefit </li></ul></ul>Thursday, June 3, 2010
  35. 35. NSSF Annual objectives and Targets 2009/10 <ul><li>Technological Leadership </li></ul><ul><ul><li>Stabilise IMIS Leverage in house resources </li></ul></ul><ul><ul><li>Business Continuity Plan Start in-house preparations </li></ul></ul><ul><ul><li>Other Innovations Redesign NSSF Website Set up an Intranet </li></ul></ul><ul><ul><li>Establish a call centre </li></ul></ul><ul><li>Productivity </li></ul><ul><ul><li>Improve Payment of benefits Survivors 21 Days </li></ul></ul><ul><ul><li>Age 7 days </li></ul></ul><ul><li>Employee relations </li></ul><ul><ul><li>Staff survey results 80% positive feedback </li></ul></ul><ul><ul><li>Temporary staff 8% maximum </li></ul></ul><ul><ul><li>Salaries 80 th percentile of Market </li></ul></ul>Thursday, June 3, 2010
  36. 36. NSSF Annual objectives and Targets 2009/10 <ul><li>Employee Development </li></ul>Thursday, June 3, 2010
  37. 37. NSSF Annual objectives and Targets 2009/10 <ul><li>Public Responsibility </li></ul><ul><ul><li>Public Survey 75% positive feedback </li></ul></ul><ul><ul><li>Media Coverage 60% positive feedback </li></ul></ul><ul><ul><li>Corporate Social Responsibility Budget availability </li></ul></ul><ul><li>Economic Development </li></ul><ul><ul><li>Housing 6 units </li></ul></ul><ul><ul><li>Mortgage Financing UGX 16b </li></ul></ul>Thursday, June 3, 2010
  38. 38. Institutionalizing the strategy <ul><li>Annual objectives , functional strategies and specific business policies communicate what must be done to implement the strategy. </li></ul><ul><li>They translate long-term intentions into short-term guides to action and thereby make the strategy operational </li></ul><ul><li>BUT the strategy must also be institutionalised-must permeate the very day-to-day life of the company -if it is to be effectively implemented </li></ul>
  39. 39. Annual/Functional Strategies <ul><li>Translate the grand strategy into action plans for Departments of NSSF </li></ul><ul><li>clarify what the managers' units are expected to do if the annual objectives are to be achieved </li></ul><ul><li>They therefore provide specific guidance to managers responsible for achieving annual objectives </li></ul>Thursday, June 3, 2010
  40. 40. Institutionalizing the strategy <ul><li>Three organizational elements provide the fundamental, long-term means of institutionalizing the strategy: </li></ul><ul><ul><li>Structure </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><li>Successful implementation requires effective management and integration of these three elements to ensure the strategy “takes hold” in the daily life of the firm </li></ul>
  41. 41. Institutionalising the strategy-from plans to action <ul><li>Structures- </li></ul><ul><ul><li>Post –formulation communication and planning sessions </li></ul></ul><ul><ul><li>Budgeting processes </li></ul></ul><ul><ul><li>Performance Management System-Balanced Score Card/ Strategy Maps, KPIs, APPs and APPAs/Performance Contracts </li></ul></ul><ul><li>Leadership –CEO, Heads Of Departments, Performance Intelligence Unit and Supervisors have a role in </li></ul><ul><ul><li>communication, </li></ul></ul><ul><ul><li>guiding implementation and monitoring </li></ul></ul><ul><li>Culture- </li></ul><ul><ul><li>promotion of NSSF Values </li></ul></ul><ul><ul><li>appraised individually bi-annually </li></ul></ul>Thursday, June 3, 2010 Thursday, June 3, 2010
  42. 42. Monitoring and Control <ul><li>Role of Managing Director </li></ul><ul><ul><li>Leadership ,Communication and overseeing Execution of strategic objectives at corporate level </li></ul></ul><ul><li>Role of PIU –(Spearheads the Strategic Management process) </li></ul><ul><ul><li>Coordinating formulation , execution and review of strategic plan </li></ul></ul><ul><ul><li>Designing promoting and coaching staff on an effective Performance Measurement System (with HC) </li></ul></ul><ul><ul><li>Support includes communicating goals ,defining measures and tracking organisational performance </li></ul></ul><ul><ul><li>Compiles and Reports on organisational performance </li></ul></ul><ul><li>Role of Heads of Department and Supervisors </li></ul><ul><ul><li>Formulation of strategy </li></ul></ul><ul><ul><li>Development and execution of departmental Annual Performance plans </li></ul></ul><ul><ul><li>Reporting departmental progress </li></ul></ul><ul><li>Role of Human Capital </li></ul><ul><ul><li>Developing and enforcing Appraisal system through supervisors </li></ul></ul>Thursday, June 3, 2010
  43. 43. Monitoring and Control <ul><li>PIU collects monthly data on key performance indicators; analyses and reports to MD/ExCo. </li></ul><ul><li>The performance is monitored at departmental level; and aggregated for the organisational level </li></ul><ul><li>Bi-Annual appraisal process is based on APPAs[performance contracts] </li></ul><ul><li>Annual Strategic Planning reviews </li></ul>Thursday, June 3, 2010
  44. 44. Why review the strategy? <ul><li>To address two sets of questions: </li></ul><ul><li>Are we moving in the right direction? Are key things falling into place? Are our assumptions about major trends and changes correct? Are the critical things we need to do being done? Do we need to adjust or abort this strategy? </li></ul><ul><li>How are we performing? Are we meeting objectives and schedules? How are costs, revenues and cash flows matching projections? Do we need to make operational changes? </li></ul>Thursday, June 3, 2010
  45. 45. NSSF’s Performance Management System Thursday, June 3, 2010
  46. 46. Performance Management <ul><li>Communication of Annual Strategies to staff </li></ul><ul><li>Departments agree Annual Performance Plans (APPs) and BUDGETS </li></ul><ul><li>The individual staff agree on the tasks and targets with their supervisors at the beginning of the Financial Year based on APPs. </li></ul><ul><li>The Agreed tasks and Personal Development Plan are collated into an Annual Personal Performance Appraisal (APPA) </li></ul><ul><li>Each staff signs an APPA; a Performance Contract </li></ul>Thursday, June 3, 2010
  47. 47. What is Performance Measurement <ul><li>The process of quantifying past actions; </li></ul><ul><ul><li>where measurement is the process of quantification and </li></ul></ul><ul><ul><li>past action determines current performance </li></ul></ul><ul><li>Organisations achieve their defined objectives i.e. they perform , by satisfying their stakeholders and their own wants and needs with greater efficiency and effectiveness that their competitors </li></ul>
  48. 48. The fundamental dimensions of performance <ul><li>EFFECTIVENESS </li></ul><ul><li>The extent to which stakeholder requirements are met </li></ul><ul><li>Leads to customer satisfaction </li></ul><ul><li>EFFICIENCY </li></ul><ul><li>A measure of how economically the organisations resources are utilised when providing a given level of stakeholder satisfaction </li></ul><ul><li>Reduces costs, wastage and warranty claims, increases profitability </li></ul>
  49. 49. Therefore: <ul><li>Performance management </li></ul><ul><li>is the process of quantifying </li></ul><ul><li>the efficiency and effectiveness </li></ul><ul><li>of past action </li></ul>
  50. 50. Why measure? <ul><li>To track whether planned actions are actually implemented </li></ul><ul><li>Communicate strategies within the organisation and </li></ul><ul><li>Encourage and incentivize staff to implement the strategy </li></ul><ul><li>Measurement data can be analysed and used to challenge whether strategies are working as planned (and, if not, explain why not) </li></ul><ul><li>Measurement (and estimates) data fills the uncertainty gaps that come with ‘gut feel’ and external dependencies and enhances the making of judgements and decisions </li></ul><ul><li>Tracks whether the right processes and capabilities are in place and which of them matter so people can proactively nurture them as appropriate </li></ul>
  51. 51. Development and deployment of a performance measurement system Design Plan & Build Implement & Operate Refresh <ul><li>Select measures/indicators </li></ul><ul><li>Define metrics </li></ul><ul><li>Develop systems and practices </li></ul><ul><li>Communicate intentions </li></ul><ul><li>Apply systems and practices </li></ul><ul><li>Manage with measures </li></ul><ul><li>Refine applications </li></ul><ul><li>Review relevance </li></ul>The four fundamental processes Source: Andy Neely et al (2002):The Performance Prism: The scorecard for measuring and managing business success
  52. 52. Process 1 DESIGN <ul><li>Select measures/indicators </li></ul><ul><li>Define metrics </li></ul>
  53. 53. Measures definition <ul><li>Critical questions before design: </li></ul><ul><ul><li>What is the reason for this measure </li></ul></ul><ul><ul><li>Why do we want to measure it? </li></ul></ul><ul><ul><li>Who is going to act on the measure once the data becomes available? </li></ul></ul><ul><ul><li>What do they then do with the benefit of this knowledge? </li></ul></ul>
  54. 54. Measures/indicator definition template Measure/indicator: Purpose Relates to: Metric/Formula: Target Level(s): Frequency: Source of data: Who measures: Who acts on the data: What they do: Notes/Comments:
  55. 55. Have you designed a good measure? <ul><li>The truth test-Are we really measuring what we set out to measure? </li></ul><ul><li>The focus test-Are we only measuring what we set out to measure? </li></ul><ul><li>The relevancy test-Is it the right measure of the performance factor we want to track? </li></ul><ul><li>The consistency test-Will the data always be collected in the same way whoever measures it? </li></ul><ul><li>The access test-Is it easy to locate and capture data needed to make the measurement? </li></ul><ul><li>The clarity test-Is any ambiguity possible in interpreting the results? </li></ul><ul><li>The so-what test-Can and will the reported data be acted upon? </li></ul><ul><li>The timeliness test-Can the data be accessed rapidly and frequently enough for action? </li></ul><ul><li>The cost test-Is the measure worth the cost of measurement? </li></ul><ul><li>The gaming test-Is the measure likely to encourage undesirable or inappropriate behaviours? </li></ul>
  56. 56. Process 2 PLAN & BUILD <ul><li>Develop systems and practices </li></ul><ul><li>Communicate intentions </li></ul>
  57. 57. Plan and Build <ul><li>Develop supporting systems and practices </li></ul><ul><ul><li>Plan to gain access to required data </li></ul></ul><ul><ul><li>Build measurement system </li></ul></ul><ul><ul><li>Acquire and or develop technology </li></ul></ul><ul><ul><li>Configure data manipulation and distribution </li></ul></ul><ul><li>Communicate intentions-communicate, educate and train </li></ul><ul><ul><li>Agree targets </li></ul></ul><ul><ul><li>Overcome people’s political & cultural concerns about PM </li></ul></ul><ul><ul><li>Persuade, cajole and reassure people that this is not a stick if they fail to deliver but rather to help them manage better </li></ul></ul><ul><ul><li>Explain how to use the measurement data to understand business and improve performance </li></ul></ul>
  58. 58. Plan and Build <ul><li>Data Acquisition </li></ul><ul><ul><li>Data capture at individual transaction level </li></ul></ul><ul><ul><li>Forms </li></ul></ul><ul><ul><li>Reports </li></ul></ul><ul><ul><li>Surveys </li></ul></ul><ul><li>Collate the data </li></ul><ul><ul><li>Collection, data mining and analysis team/tools/technology/skills </li></ul></ul><ul><ul><li>Maintain database </li></ul></ul>
  59. 59. Plan and Build <ul><li>Analysis and Reporting </li></ul><ul><ul><li>Agree content </li></ul></ul><ul><ul><li>Agree presentation and distribution, </li></ul></ul><ul><ul><li>Agree frequency and </li></ul></ul><ul><ul><li>Agree responsibility </li></ul></ul><ul><li>Data Visualisation </li></ul><ul><ul><li>Develop Dashboard </li></ul></ul>
  60. 60. Process 3 IMPLEMENT & OPERATE <ul><li>Apply systems and practices </li></ul><ul><li>Manage with measures </li></ul>
  61. 61. Implement and Operate <ul><li>Beyond measurement to MANAGEMENT </li></ul><ul><ul><li>Managing with the data- i.e. action and consistently reinforcing the measures by asking for the right numbers </li></ul></ul><ul><ul><li>Action is the Value of measurement </li></ul></ul><ul><li>Apply the data to gain understanding and learning </li></ul><ul><ul><li>Analysis and interpretation </li></ul></ul><ul><li>*Creation and application of vital knowledge capital </li></ul>
  62. 62. Implement and Operate <ul><li>Check data veracity </li></ul><ul><ul><li>Garbage in, garbage out </li></ul></ul><ul><li>Monitor and Analyse Trends/Correlations </li></ul><ul><li>Link to Human Performance programmes </li></ul><ul><ul><li>But this shouldn’t happen too early. Wait till system is up and running and data is clean </li></ul></ul><ul><ul><li>Watch out for incentive effects </li></ul></ul>
  63. 63. The Data to Decisions cycle Data & Information Analysis & Interpretation Insights & Judgement Decisions & Actions Cause-and-effect understanding ‘ Double- loop’ learning Performance Management Process Performance Management Process Knowledge Capital
  64. 64. Process 4 REFRESH <ul><li>Refine applications </li></ul><ul><li>Review relevance </li></ul>
  65. 65. Managing and Refreshing System <ul><li>Manage the system: </li></ul><ul><ul><li>System should be dynamic and updateable </li></ul></ul><ul><ul><li>Check for relevance and usefulness of measures </li></ul></ul><ul><ul><li>DELETE unnecessary measures </li></ul></ul><ul><ul><li>INTRODUCE new measures </li></ul></ul><ul><ul><li>Establish continuous improvement policies </li></ul></ul><ul><ul><ul><li>Quality circles, suggestion schemes </li></ul></ul></ul>
  66. 66. Managing and Refreshing System <ul><li>Conduct regular measures and Management practice Audits </li></ul><ul><ul><li>Are there changes in stakeholders wants and needs </li></ul></ul><ul><ul><li>Are strategies working effectively </li></ul></ul><ul><ul><li>Challenge status quo- </li></ul></ul><ul><ul><ul><li>are the right things still being measured, </li></ul></ul></ul><ul><ul><ul><li>are they measured the right way </li></ul></ul></ul><ul><li>Refer to measures definition template and review </li></ul>
  67. 67. The diagnostic audit framework Business Performance Are the right things being measured? Are they being measured the right way? Quality of measurement practices Are the data captured and analysed? Are the data acted upon? Quality of Management practices
  68. 68. Challenges <ul><li>Change management-attitude towards performance measurement and accountability </li></ul><ul><li>The learning process-defining good measures </li></ul><ul><li>A mismatch between strategic planning and budgeting sessions </li></ul>Thursday, June 3, 2010
  69. 69. Key Successes <ul><li>Improved governance-management is able to keep fingers on the pulse </li></ul><ul><li>Ownership of strategic initiatives </li></ul><ul><li>Improved performance-staff have clarity and motivation to deliver key results from the start of the year </li></ul>Thursday, June 3, 2010
  70. 70. Conclusion <ul><li>These Annual Objectives and Strategies are a response to a NEED to optimise our SWOT in order to fulfil our Mission </li></ul><ul><li>They: </li></ul><ul><ul><li>set the pace and clarify the direction for everyone at NSSF </li></ul></ul><ul><ul><li>challenge and motivate us into meeting the NSSF objectives </li></ul></ul><ul><ul><li>They define what ,when and where our resources: money, time, people, infrastructure, technology and systems need be deployed </li></ul></ul><ul><ul><li>They form the scale by which NSSF BOD, Management and all staff progress should be assessed </li></ul></ul><ul><li>Should be reviewed annually to keep in sync with the operating environment </li></ul><ul><li>The ultimate test of a strategy is the ability to achieve its end-the annual objectives, long-term objectives and mission </li></ul>Thursday, June 3, 2010
  71. 71. THANK YOU Thursday, June 3, 2010

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