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Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop
 

Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop

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Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop...

Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop
November, KL

• Know the Importance of planning, preparing, and structuring the performance appraisal
• Learn how to listen, question and give clear and specific feedback
• Handle performance problems and sensitive issues effectively
• Review performance objectives so you can provide specific feedback describing the gap between expected and actual performance
• Avoid common pitfalls when conducting the appraisal
• Create Individual Development Plans with your staff
• Monitor and review progress of objectives and development plans between review meetings
• Develop your feedback skills to motivate staff between appraisal meetings

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  • Example of successful customer loyalty strategy focusing on Operational Excellence and Product Leadership while maintaining market standard on Customer Service without indulging in it
  • Many people go around setting up PMS without clear understanding of Business Directions… (sometimes its hidden from lower management & consultants)… End up HR and FAC getting beat up by Management by now implementing PMS ‘properly’ Sometimes the Business itself is unclear, in this case, do not put in a PMS – it will worsen the situation.
  • Exercise: Complaints about Performance Appraisals Group them into Root Causes – Process, Form, People
  • *No Linkage – cannot see how their performance matters to higher order results
  • *Especially with a 5 or 10 pt rating scale
  • *This will cause the “I lower your score because we do not have budget” problem
  • Refer to Handout 5: 1. Coaching Self Assessment – to determine the core Coaching Skills required to properly manage performance
  • Performance Management System is first and foremost a ‘SYSTEM’ – meaning we have Input, Process and a predictable Output Firstly. Performance means ‘Results’. Business Performance = Business Results. If your PM System is merely to reward/punish employees, you are missing the point If your PM System does no provide a predictable Output (i.e. Results), it is not a system Secondly, everything within the system must be Controllable – no excuse if performance does not happen. This means that Cause-and-Effect principles must be built into the PM System
  • PMS does not equate to Performance Evaluation process entire eco-system to ensure performance PMS = Business Plan Implementation system The PM System is the only process in any organization to execute the Business Strategy. There are no other process or system that can do that. Treat it with care Why? PM System is the only thing that can link Business Strategy with the People executing it Secondly… without a strong PMS, we cannot Differentiate employees properly. If we cannot Differentiate, we cannot define and manage Talent. Link between PMS/TM/Succession Planning? Business Continuity = perpetual business performance (in Asia = Legacy) Can only be done if the right Talents are in place (bench strength) Making sure the right Talents are spotted = PMS
  • So… are we in business for Retention or Performance?
  • Moral 2: Never forget that the goal of business is BUSINESS, not PERFORMANCE management or BSC! Do not just buy a book on ‘best practice KPIs’ and start implementing them. Understand the ‘real’ business first. E.g.
  • *Strategy means concentrating all energy and all aspects of the organization for the purpose of Talent Management. In fact, it’s a mistake to call it “Talent Management” program. Very un-business like So… let’s call it “ Business Continuity Plan ” or “ Business Opportunity Planning ”?
  • Performance The ability of a person to meet current expectations Key Words: Results, Targets, KPIs, Achievement, Expectations, Training, Job Concentrates on the Past i.e. what the person has done Potential The capacity of a person to meet future expectations Key Words: Competencies, Learning, Fit, Adversity, Failure rate, Development, Career Concentrates of the Future
  • Group 1: High Potential, High Performance (Talent) Staff this category will automatically be placed in the company’s Succession Plans. Be the first priority to be considered for any promotions or upgrading exercises. Career Acceleration + Specialist Career Paths. Group 2: Average Potential, High Performance (Leadership Issues) Leadership, motivational and cultural development would be given to these staff while they perform in their current positions. Group 3: High Potential, Average Performance (Potential) Should not be given career advancement unless performance improves. Good targets for transfers or job rotations to departments that require urgent manpower. Group 4: Average Potential, Low Performance (Issues) Staff in this group should be monitored closely by HR. They should be eventually moved out of their current work function, department or even the company entirely.
  • Exercise: What is Performance Appraisal GENERALLY used for? What does your company use it for?
  • Refer to Handout and Exercise : 1. Which Performance Management System should we use.doc Managing expectations = e.g. from Finance Department and Credit Control
  • Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here. Resources must follow the Business Model: USP, Profit Model, Market Discipline
  • CNI:
  • Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here.
  • BSC (Balanced Scorecard) is one of the PMS we can use. Whatever makes sense for your company. Remember: Usually we should not adopt the entire system. Adapt the key features for your company.
  • Note: This is the Year 2004 version of CNI’s BSC. This was done AFTER we have determined the correct Market Discipline and the ‘real’ business
  • This is mostly for ‘Business’ entities. For Government and Non-Profits , the starting point would be ‘Mission’ -> Customer, followed by Financial & Internal Processes, then L&G. Why did we choose BSC as a guideline? Cause and Effect (easier to influence longer-term results) Balanced (short- and long-term views, outside the Sales & Marketing mindset)
  • Example: What do you mean by Good? A, B, or C? Achieve 5 tasks, what is your rating? You mean if I achieve all, I only get AVERAGE? You must be crazy
  • This looks better for the ‘achieved all’ category But… the ratings still look ambiguous, right?
  • This looks better for the ‘achieved all’ category But… the ratings still look ambiguous, right?
  • Example: Define ‘Initiative’ How do rate Initiative on a 10-pt scale?
  • Example: Define ‘Initiative’ How do rate Initiative on a 10-pt scale? Exercise: Determine 1 core Competency/Values you want to evaluate Create a list of 5 ‘observable’ behaviors of that competency
  • Refer to Handout 5: 1. Coaching Self Assessment – to determine the core Coaching Skills required to properly manage performance
  • Three Steps to Assertive Communication: 1. Describe the situation or idea as clearly and specifically as you can. 2. Express how you feel about the situation. (Note: Use "I" or "My" statements to refer to how you are feeling and what you are thinking.) 3. Specify what you want. Include a specific deadline.
  • Active Listening Techniques 1 Attending: using non-verbal indicators such as leaning forward, nodding your head, sitting in an open, receptive posture 2) Paraphrasing: repeating in your own words what the other person has said; the restatement should not judge in any way 3) Speaking from the self: using "I" statements, rather than speaking for others (we all think) or speaking in the passive tense. Do not make assumptions about others, their opinions, and feelings. 4) Clarifying: asking for further clarification or an example to illustrate often helps find clarity in the meaning. 5) Asking: probing questions; identify and explore options and alternatives e.g., use probes - short, open questions to dig deeper into issues. May be non-verbal such as a look that asks "Then what/ How?” Silence can be used to encourage the speaker to continue. 6) Encouraging: asking person to “tell me more about” or give them a supportive comment like “good idea” or “I like that approach”. 7) Reflecting: playing back the communication as you hear and feel it, e.g., “you seem to feel very strongly about that” 8) Summarizing : giving back a review or summary of what you heard. This helps make sure the communication is
  • Refer to Handout 2: Beating a Dead Horse Moral: If a staff is not performing, make sure you know what you doing to correct the situation
  • Refer Handout 3 : Mager and Pipe Diagram It is easy to measure non-performance. It is very difficult to correct it. This depends on the PMS you are using. The Root Cause for non-performance can be MANY. Be sure that you are attacking the right one. A good performance management system should be able to measure and manage all the possible root causes.
  • PEOPLE is only one part to get Performance. We focus it here, but have to note of the rest. This is also another reason why TRAINING and INCENTIVES (the two most popular methods, do not work)
  • Group 1: High Potential, High Performance (Talent) Staff this category will automatically be placed in the company’s Succession Plans. Be the first priority to be considered for any promotions or upgrading exercises. Career Acceleration + Specialist Career Paths. Group 2: Average Potential, High Performance (Leadership Issues) Leadership, motivational and cultural development would be given to these staff while they perform in their current positions. Group 3: High Potential, Average Performance (Potential) Should not be given career advancement unless performance improves. Good targets for transfers or job rotations to departments that require urgent manpower. Group 4: Average Potential, Low Performance (Issues) Staff in this group should be monitored closely by HR. They should be eventually moved out of their current work function, department or even the company entirely.
  • The Business Model is made up of three components – Unique Selling Proposition, Profit Model and Market Discispline Each business is unique depending on how the Business Model is configured Each organization’s PMS has to follow the Business Model If your Business Model is wrong (or inferior), a better PMS cannot help you. Change your Business Model first Example: Google vs Yahoo USP – Simplicity, Search-focused, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Tata Nano vs. GM (Proton vs. Kia, Hyundai, Cherry) USP – Cheap (below USD2,500), no-frills Profit Model – Motorcycle (as opposed to Automobile manufacturing model) ‏
  • How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience. Example: Air Asia vs. Malaysia Airlines (or Ryanair vs. Luthansa) ‏ USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • A leading business organization can only afford to focus on ONE, at the most TWO of the disciplines If you try to accomplish all three at once, you will end up with: an average business confused employees mixed up product lines too many KPIs wasted funds To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard

Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop Presentation Transcript

  • EMPLOYEE YEAR END PERFORMANCE APPRAISAL [Matching Employee KPI to Company Goals & Benefits Structure] Training Session and Workshop Kenny Ong
  • Intro What is your objective?
  • Managing Expectations
    • Exercise: Please note down one important item you want to learn or get out from this workshop
  •  
  •  
  •  
  • The McPlaybook*
    • Make it easy to eat
    • 50% drive-thru
    • Meals held in one hand
    • Make it easy to prepare
    • High Turnover
    • Tasks simple to learn & repeat
    • Make it quick
    • “ Fast Food”
    • Tests new products for Cooking Times
    • Make what customers want
    • Prowls market for new products
    • Monitored field tests
    *Adapted from: Businessweek , Februrary 5 th 2007
  • Why do we hate Performance Appraisals?
  • Complaints about Performance Appraisals As an Appraisee As an Appraisor Mgmt/HR
  • Complaints about Performance Appraisals
    • Bias
    • Different Standards
    • Surprise
    • Subjective
    • No linkage*
    • No differentiation
    • Secretive
    • No follow up
    • No control
    As an Appraisee
  • Complaints about Performance Appraisals
    • Cannot remember
    • Tedious
    • Subjective
    • Right targets
    • Scoring Competencies*
    • Defensive staff
    • No $$ to differentiate
    • Prejudices
    • Results or Activities
    As an Appraiser
  • Complaints about Performance Appraisals
    • Flexible or Control?
    • MBO or Character?
    • Best Practice or Fit Culture?
    • Backward or Forward?
    • Quarterly Results or Long-term?
    • No $$ to differentiate*
    • Perfect System, Bad performance
    • Recency and Halo effects
    • Untrained Appraisers
    Mgmt/HR
  • Complaints about Performance Appraisals - Summary
    • Process problem
    • Form problem
    • People problem
  • What’s the Difference?
    • Performance Appraisal
    • Performance Management
  • Coaching & Counseling Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?
  • What is the OBJECTIVE of a Performance Management System?
    • What is the ultimate objective of a Performance Management System?
    • ‘ Performance’ – achievement,
    • ‘ Management’ – controllable, improvement
    • ‘ System’ – predictable outcome, autorun
    • Summary?
    • A Predictable process to Improve Controllable Achievements
  • What’s In Between Planning and Execution? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model
  • What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning BSC and KPIs Strategy Business Model Business Strategy Execution Talent Management
  • Intro
    • Performance Management System = Business Plan Implementation
    • Succession Planning = Business Continuity Planning
    • Talent Management = Sustainable Business Performance Management
  • 1. Using Performance Appraisals in Performance Management
    • “… in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our performance is inconsistent"
    CEO, Anonymous
  • Before we start…
    • In the old days of HR…
    • Average training hours per staff
    • % of staff attending training
    • # of training programs
    • % of training programs conducted
    • Training needs analysis conducted
    • Competency models developed
    • Training budget as % of payroll
    What’s wrong with this picture?
  • Before we start…
    • Moral of the story…
    • Innovation:
      • Business models
      • Products
      • Services
    • Market Leadership
    • Competitive differentiation
    Get the picture?
    • “ What is the moral of the story?”
  • Which Company?
    • American Customer Satisfaction Index (ACSI)
    • 64 out of100-point scale: lower than IRS (Tax)
    • 2 nd last among 30 companies surveyed
    • Lowest 5% among 223 companies surveyed
    • Bottom 5% of all measured private sector companies
    • 500 million customers
    2010 American Customer Satisfaction Index (ACSI)  E-Business Report
  • Which Company?
    • American Customer Satisfaction Index (ACSI)
    • 64 out of100-point scale: lower than IRS (Tax)
    • 2 nd last among 30 companies surveyed
    • Lowest 5% among 223 companies surveyed
    • Bottom 5% of all measured private sector companies
    • 500 million customers
    2010 American Customer Satisfaction Index (ACSI)  E-Business Report
  • Popularly Unpopular
    • Popularity
    • Affection
  • The Integrated and Holistic Performance Management System
  • Why Performance Appraisal? Performance Management Selection Development Motivation Evaluation
  • Talent Segmentation Group I (Talent Pool)
    • Identify
    2 3 4 5 PERFORMANCE 2 3 4 5 POTENTIAL
  • Employee Differentiation Group I (Talent Pool) Group II (  Potential) Group III (  Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL
    • Identify
  • Selection and Identification PERFORMANCE APPRAISAL 1. Results 2. Values 3. Special Contributions
  • Selection and Identification POTENTIAL EVALUATION 1. Capacity 2. Competencies 3. Culture
  • Selection and Identification POTENTIAL EVALUATION 1. Capacity Learn Next Level Ambition
  • Selection and Identification POTENTIAL EVALUATION 2. Competencies Competent Reliable/Consistent Pressure
  • Selection and Identification POTENTIAL EVALUATION 3. Culture Demonstrate Improve Influence
  • Exercise
    • Define ‘Performance’
    • Define ‘Potential’
  • Exercise
    • Exercise:
    • Factors for Performance Appraisal
    • Factors for Potential Appraisal
  • 2. Getting Performance Appraisal Objectives Right
  • What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com No wonder our employees are confused!
  • What is the OBJECTIVE?
    • What is the ultimate objective of a Performance Management System?
    • ‘ Performance’ – achievement,
    • ‘ Management’ – controllable, improvement
    • ‘ System’ – predictable outcome, autorun
    • Summary?
    • A Predictable process to Improve Controllable Achievements
    www.myCNI.com.my www.OOBEY.com
  • What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model Business Plan Implementation Talent Management www.myCNI.com.my www.OOBEY.com
  • What is Performance Measurement used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com
    • Exercise: How would your Evaluation System look like for these different objectives?
  • Which system should we use? Behavior-based Knowledge/Skill based Results-based Trait-based Managing Performance = Managing Expectations What’s YOUR expectation? Activity based Refer: Which Performance Management System should we use?
  • 3. Performance Management
  • Alignment: 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources
  • Alignment: Framework
    • Org Structure
    • Job Design
    • C&B
    • Policies & procedures
    • Decision making
    • Job fit
    • Management Systems
    • BSC and KPIs
    • Decentralized & Empower
    Structure
  • Strategy: Framework
    • Role modeling
    • Vision/Mission/Philosophy
    • Leadership Style
    • Delegation & Empowerment
    • C&B, Promotions
    • Sense of Urgency
    • Speak regularly about Performance
    Leadership
  • Strategy: Framework
    • Recognition
    • Recruitment
    • Training
    • Attitude
    • Values
    • Motivation
    • Self Efficacy
    • Awareness
    • Useful Competencies
    • Career aspirations
    • Attribution (control)
    Person
  • Strategy: Framework
    • Enablers or Obstacles
    • Technology
    • Equipment
    • Materials
    • Human
    • Intellectual Property
    • Partners
    • Property
    • Funding
    • CAPEX
    • OPEX
    Resources
  • Alignment: Framework
    • Focus point
    • Alignment
    • Quality
    • Innovation & Differentiation
    • Risk taking
    • Performance Management
    • Corporate obsession
    • Decision making
    Culture
  • 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources
  • Performance Management Cycle
    • Refer to pages 8-9 of the Performance Management Workshop –Workbook-
  • Performance Planning
  • District Engineer, TNB Duties and Responsibilities If stated as Accountabilities then the job must produce : Control, operate and maintain the District Distribution System Ensure uninterrupted supply to consumers in the district by operating the District Distribution System. Manage major supply projects to customers in the district. Ensure satisfaction of the major customers in the district by managing supply and Distribution. Supervise all technical staff in the district. Ensure high performance and Productivity of technical staff by adopting proper human resource management methods on selection, training, coaching, counselling and motivation. Plan and design the High voltage system Ensure availability of adequate supply for future needs of industries in the district by planning and designing the High voltage System
  • Results Driven
    • Activity vs. Accountability
  • Exercise: Results Description Key Result Key Activities 1. 1. 2. 3. 4. 2. 1. 2. 3. 4. 3. 1. 2. 3. 4. 4. 1. 2. 3. 4.
    • Exercise: Results Description Questionnaire
  • Sources of Goals and KPIs
    • Exercise: List down the sources of Goals and KPIs available in your company:
      • E.g. Job Description (RDQ)
  • MBO – Sources of KRAs and KPIs, Targets
    • Department Scorecard [E3],
    • Employee’s Job Description,
    • Department SOP,
    • Department Quality Objectives,
    • Corrective Action Requests (CAR),
    • Preventive Action Requests (PAR), or
    • Special Projects relevant to the employee.
  • Performance Planning: KPIs and Critical Goals
    • Refer to pages 19-23 of the Performance Management Workshop –Workbook-
  • Basics of the Balanced Scorecard
  • Reminder: Why BSC?
    • Reason 1: Balanced
    • Reason 2: Cause-and-Effect
    www.myCNI.com.my www.OOBEY.com
  • Cause and Effect Revenue Base Retention Share Gain Positioning Adjacent Market New Business Financial Learning & Growth Internal Process Customers Cost Margin Cash Flow Asset Operational Excellence Product Leadership Customer Intimacy Investment Strategy Competencies Information Systems Motivation, empowerment, alignment Satisfaction
  • Cause and Effect: An Example Financial Learning & Growth Internal Process Customers / Distributors Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes
  • Example: 1 st Level BSC & KPIs Financial Learning & Growth Internal Process Customers / Distributors Profit after Tax. Revenue. Cash-to-cash cycle. Operating cash flow Customer Complaints. Customer Acquisition Rate. Product Availability. Product Quality & Service. Renewal Annual Subscription. Distributor Rank Achievement. No. of Active Distributor. No. DC/Regional Sales. Distributor with commission Customer Database Availability. Accuracy of Forecast Planning. Continuous Improvement. Response Time to Customer Needs. Perfect Order Fulfillment. Inventory Turnover. Number of Effective Sponsoring Program. On Time Delivery. No. of Effective Training. Number of Effective A&P % of staff evaluated on Core Competency Framework. % of staff with Career Development Plans. No. of training hours completed per staff. % of staff with access to strategic information. Q12 Index. % staff evaluated on Culture alignment
  • Leading and Lagging KPIs
  • Cause and Effect Goal: Healthy!
    • What are my Vital Signs?
    • Blood Pressure?
    • Temperature?
    • Cholesterol?
    • Fever?
    • Chest Pain?
    • Dizziness?
  • Cause and Effect
    • Also known as:
    • Leading vs. Lagging Indicators
  • Exercise: Leading vs. Lagging
    • Lagging?
    • Monthly Sales
    • Customer Retention
    • Project success
    • Event attendance
    • ARPU
    • Customer Satisfaction
    • Dealer Satisfaction
    • Leading?
  • Cause & Effect: Strategy Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” Internal Process “ To satisfy our customers, in which internal business processes must we excel?" Customer “ Who are our target customers? What is our value proposition?” Learning & Growth “ What capabilities and tools do our employees require to help them execute our strategy?
  • Top Performers and the ‘No Contribution’ Problem Historical, Outcome, Results, 1 st Level, Usually Financial or tangible, Quarterly and Annually Current, Indicators, Drivers, 2 nd Level onwards, usually non-financial or intangible, Weekly, Monthly and Quarterly Lagging Leading
  • Developing ‘Driver’ KPIs Customer Retention % Lagging, 1 st Level Customer Satisfaction Index Leading, 2 nd Level On time delivery Time to market for new products TNA % Defect levels, warranty claims Leading, 3 rd Level onwards
  • What is the Objective?
    • ‘ Do-or-Die’ KPIs for CNI
    • Revenue
    • ARPU
    • Sponsoring
    • Retention
    • Commission Plan (BDP)
    • Product
    • Corporate Image
    • Exercise: What are the Key 1 st Level KPIs for your Industry?
    • Exercise: Developing your own Leading and Lagging KPIs
  • B2B/B2G BSC Matching Customer/Client/ Government BSC Your BSC
    • Draw your ‘customer’s’ BSC
    • Match their CP/IP with your CP
    • Identify IPs that support/conflict
  • Performance Planning: KPIs and Critical Goals
    • Refer to pages 24-25 of the Performance Management Workshop –Workbook-
    • Refer to “Attachments” for examples of KPIs
  • Performance Standards
  • MBO Standards A Excellent B Good C Average D Poor E Useless
  • MBO Standards A Excellent B Good C Average Good D Poor E Useless
  • MBO Standards A Excellent Excellent B Good Very Good C Average Good D Poor Not Good E Useless Commit Suicide
  • MBO Standards Refer: Priority, Targets and Standards A Excellent Consistently achieved 4 for 3 quarters B Very Good Higher than planned results C Good Achieved Planned Results D Not Good Did not fully meet planned results E Commit Suicide Unacceptable performance
  • Performance Planning: Performance Standards
    • Refer to pages 24-25 of the Performance Management Workshop –Workbook-
  • Performance Planning and KPIs: Cascading from Company-Department-Individual
  • E3 – Department BSC Financial Perspective Goals Measures Targets CAPEX OPEX Quality Innovation On Time Delivery
  • Individual Performance 1.0 Key Results Area (Max 6) 2.0 Goals and Targets for Q1 3.0 Achievements and Efforts for Q1 4.0 Merit* 5.0 Rating (Merit x Weight) 6.0 Appraiser Overall Comments/ Feedback
  • Cascading Customer Perspective Goals Strategies Targets Direct Indirect Base Retention Mkt Share Gain Mkt New Business BD
  • E3 – Department BSC Customer Perspective – Marketing Department Budgeting Goals Strategies Targets CAPEX OPEX Base Retention Share Gain
  • Individual MBO Employee A – Marketing Executive Re: Base Retention KRAs Action Plans Targets Weight (%) Score Class A Customer Retention Class B Customer Retention Competition Crossovers
  • Competencies
  • Position: Secretary The Job Person Characteristics The Superior Performer
    • Typing
    • Manages communications
    • Keeps short-hand notes
    • Makes appointments
    • Uses the computer
    • Filing
    • Takes minutes
    • Follow-up
    • Makes coffee
    • Keeps secrets
    • Drafts letter
    • Screens calls
    • Pleasant
    • Accurate
    • Is able to take notes on shorthand and typing memo effectively
    • Presentable
      • Appearance
      • Behaviours
    • Good manners
    • Courteous
    • Diligent
    • Proactive
    • Initiative
    • Independent
    • Integrity (trust)
    • Creative
    • Resourcefulness
    • Always excel
    • Unwavering dedication and commitment
    • Ability to make simple decisions
    • Sensitive to people
    • Positive attitude
    Responsibilities + Tasks + Activities Personal Competencies Differentiating Competencies
  • Competencies: Intro
    • Refer to page 27 of the Performance Management Workshop –Workbook-
  •  
  • Competencies
  • Competencies: An Explanation
    • Refer to pages 47-51 of the Performance Management Workshop –Workbook-
  • Superstar Competency Model
    • Exercise: Develop Your Own “Superstar” Competency Model
    • Refer to page 52 of the Performance Management Workshop –Workbook-
  • Competency Target Setting
    • Initiative
    • Teamwork
    • Problem Solving
    • Leadership
    • Integrity
    What’s the problem here?
  • Competency Target Setting
    • Initiative
    • Minimize problems quickly without needing to be asked
    • Seeks personal growth and professional self-development
    • Doing more than is required/expected in a job
    • Seeks new and improved solutions and approaches to completing assignments
    • Looks for opportunities to help others and team
    • Exercise: Competency Dictionary
  • Competency Dictionary: An Example
    • Refer to pages 53 of the Performance Management Workshop –Workbook-
  • Competency Standards 3 Meets behavioral standards consistently . Is a good role model for others. 2 Meets behavioral standards some of the time. Needs improvement. 1 Does not meet behavioral standards. Require counseling or disciplinary actions.
  • Exercise: Competency Standards
  • Performance Coaching
  • Coaching & Counseling Refer: Coaching Self-Assessment Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?
  • Performance Coaching
    • Refer to pages 29-33 of the Performance Management Workshop –Workbook-
  • Performance Coaching
    • Exercise: Refer to pages 34 of the Performance Management Workshop –Workbook-
    • Competencies of a Good Coach
    • Self Evaluation
  • 4. Putting it all together
  • Designing Your Own Performance Appraisal Form
  • Performance Appraisal Form
    • Exercise: Performance Appraisal Form - Critical Components
      • What Do you Want to Evaluate?
      • What are Your Objectives?
  • Performance Appraisal Form
    • Refer to Sample Performance Appraisal Forms: Non-Executives and Executives
  • Performance Evaluation
  • Performance Evaluation
    • Exercise: Refer to pages 38-42 of the Performance Management Workshop –Workbook-
  • Evaluation: Key Steps
    • Exercise: Refer to pages 43-45 of the Performance Management Workshop –Workbook-
    • Attitude
    • Seating
    • Begin
    • Review
    • Comments
    • Future
    • Performance vs. Person
    • Closing
  • 5. People Skills and Performance Appraisals
  • Before we start
    • “ You can get anything in life that you want if you can help enough people get what they want”
  • Law of the Ping-Pong Ball a.k.a. Law of Cause and Effect
  • Managing your Relationships
    • Basics of Relationships
    • Why?
    • Good performance & skill won't get you very far. You need others to succeed
    • You cannot get people to listen to you if they don't like you.
    • And if they don’t listen to you, you won’t accomplish anything!
    • Relationships = Expectations.
  • But first…Do you know yourself?
    • Strengths? Limitations?
    • Good listener?
    • Emotionally stable?
    • Biases or Prejudices?
    • What is “Fair”?
  • Managing your Relationships: People Skills
    • People are interested in themselves, not in you
    • What is the most interesting subject in the world to them? THEMSELVES
    • Take four words out of your vocabulary: “I, me, my, mine” and substitute for the most powerful word: “YOU”
    • Remember that the more important you make people feel, the more they will respond to you.
    • Avoid arguing.
  • Communication SF LINA L isten with interest and praise make the person feel I mportant use their N ame A sk questions
  • Influence SF PASSE P raise and encourage A sk questions allow the person to S ave Face use S MART goals E ncourage small improvements
  • Personality SF S + FH + C S mile F irm H andshake C ompliment
  • Communication Styles Refer to Handout for detailed explanation Assertive Passive- Aggressive Aggressive Passive Comm    
  • How to be Assertive 1. Describe 2. Express 3. Specify
  • Three Steps to Assertive Communication:
    • Describe the situation or idea as clearly and specifically as you can.
    • Express how you feel about the situation. (Note: Use "I" or "My" statements to refer to how you are feeling and what you are thinking.)
    • Specify what you want. Include a specific deadline.
    Refer to Exercise: Practicing Assertive Behavior
  • Exercise: Assertive Communication
    • Someone has pushed into the queue/line in front of you.
    • Someone you respect has expressed an opinion with which you strongly disagree.
    • Someone in your organisation has a specific complaint that they won’t let go, even though it has been dealt with several times.
    • A friend has betrayed your confidence or hurt you.
    • A person in your organisation is constantly talking about another member behind her back. This is divisive and destructive to your organisation.
  • Active Listening
    • Attending
    • Paraphrasing
    • Speaking
    • Clarifying
    • Asking
    • Encouraging
    • Reflecting
    • Summarizing
    Personal Tip: ‘Picking’
  • Active Listening Techniques
    • Attending: using non-verbal indicators such as leaning forward, nodding your head, sitting in an open, receptive posture
    • Paraphrasing: repeating in your own words what the other person has said; the restatement should not judge in any way
    • Speaking from the self: using "I" statements, rather than speaking for others (we all think) or speaking in the passive tense. Do not make assumptions about others, their opinions, and feelings.
  • Active Listening Techniques
    • Clarifying: asking for further clarification or an example to illustrate often helps find clarity in the meaning.
    • Asking: probing questions; identify and explore options and alternatives e.g., use probes - short, open questions to dig deeper into issues. May be non-verbal such as a look that asks "Then what/ How?” Silence can be used to encourage the speaker to continue.
    • Encouraging: asking person to “tell me more about” or give them a supportive comment like “good idea” or “I like that approach”.
  • Active Listening Techniques
    • Reflecting: playing back the communication as you hear and feel it, e.g., “you seem to feel very strongly about that”
    • Summarizing : giving back a review or summary of what you heard. This helps make sure the communication is
  • Asking Questions?
    • Ask to clarify viewpoints, values or beliefs
      • Would you like a drink?
      • What further info do you need?
      • Is it the <problem>, or is there something else?
      • What exactly do you mean?
      • What do you think are the pros and cons?
  • Asking Questions?
    • What’s most important to you in…
  • Asking Questions?
    • Convert instructions into Questions
    • Exercise: Role Play
  • Understanding Conflicts What is…, Sources of…,
  • Why do Conflicts happen? Unrealistic Expectations Inadequate Resources CONFLICTS Lack of Cooperation Reduce Energy
  • Why do Conflicts happen? Unrealistic Expectations
    • ‘ I am always right’ opinion
    • Do not understand ourselves
    • Do not understand others
    • Different backgrounds
    • Aggressive, Selfish, Stubborn
    • Win-lose mentality
  • Conflict: Good or Bad?
    •  Good
    • Clarification
    • Release emotions
    • Release stress
    • Understand each other
    • Build cooperation & trust
    • Develop problem solving
    • Create energy
  • Conflict: Good or Bad?
    •  Bad
    • Diverts energy
    • Polarizes groups
    • Deepens differences
    • ‘ Either-Or’ positions
    • Always right mentality
    • Develop negative feelings
  • Conflict: Good or Bad?
    •   Very Very Bad
    • Informal discussions
    • Mis-information
    • Positions
    • Factions
  • Sources of Conflicts Instrumental Interest Personal
  • Sources of Conflicts
    • Goals
    • Means
    • Procedures
    • Structures
    Instrumental
  • Sources of Conflicts
    • Money
    • Time
    • Staff Space
    • Importance
    • Ownership
    • Competence
    Interest
  • Sources of Conflicts
    • Identity
    • Self-image
    • Loyalty
    • Confidence breach
    • No respect
    • Friendship Betrayal
    Personal
  • Managing Conflicts and Difficult People The world is full of people who don’t like you… live with it.
  • But First…
    • Do you want to maintain the relationship?
    • Yes? No?
  • 1. Compromise, if possible
  • 2. Win-win, if possible
  • 3. Adapt, to different people
  • 4. Hide your Ego
  • 5. Lower your Expectations
  • 6. Find Common Ground
  • 7. Same Destination, Different Paths
    • “ I understand …”
  • 9. Accept the fact
  • 10. Face
  • Difficult People
    • Handling Difficult People:
    • The word ‘Difficult’ has different meanings
    • Difficult can mean different Personality:
      • Refer to “Managing Different Personalities”
    • Difficult can mean Rude and Obnoxious
      • Listen, Ask Questions
      • FAI (forget-about-it)
  • 6. The Performance Management Handbook
  • Performance Management Handbook
    • Refer to the Performance Management Handbook
  • 7. Managing Performance and Motivation
  • Root Causes for Performance Problems
    • Right Person, Wrong Job (5%)
    • Wrong Person, Right Job (20%)
    • Wrong Person, Wrong Job (1%)
    • Right Person, Right Job, Managed Wrongly (74%)
  • Analyzing and Solving Performance Discrepancies
    • Beating a Dead Horse
  • Most Common Desperate Performance Improvement methods
    • Send for more Training
    • Enforce more Incentives (positive/negative)
  • Dangers of Direct Incentives
    • lessen internal motivation,
    • switch to mercenary mode,
    • do something and do not do something else,
    • bribe and fraud culture,
    • easier for competitors to recruit,
    • lessen teamwork & helpful culture,
    • less and less impact for same value,
    • mockery of base salary and employment contract,
    • rebellion from non-incentivised staff,
    • end up incentivising everyone for everything?,
  • Mager and Pipe
    • Analyzing Performance Discrepancies
  • Alignment: 4-Wheels Model Philosophies Corporate Objective Performance Objectives Structure Resources Leadership Person
  • Performance and Motivation
  • Understanding Personalities Handouts: Personality Types & Getting Tasks Done Closed Open People Task Perfect: Melancholy Powerful: Choleric Popular: Sanguine Peaceful: Phlegmatic
  • The Motive Profile Power (nPow) Achievement (nAch) Affiliative (nAff)
  • Motive Profile vs. Job Description Achievement Affiliation Power
    • Continually improve his/her performance
    • Personally produce work of excellent quality
    • Be creative & innovative
    • Accomplish tasks or projects personally, start to finish
    • Set own performance
    • Monitor own progress & know results of work immediately after work is completed
    • Work cooperatively
    • Frequently help others with their problems
    • Socialize much on an informal basis
    • Empathize with others
    • Be interested in others
    • Depend on others’ work
    • Maintain others’ morale
    • Be sensitive to his/her impact on others
    • Tell others what has to be done & manage them
    • Respond to others’ requests for decisions, & make decisions that affect others
    • Make things happen through others
  • The Motive Profile shown below has been constructed using a non-conscious response instrument (Picture Story Exercise - McClelland) The typical superior performing manager profile: Person Job Person High Med Low Ach Aff Pow
  • Profile Mismatches Mentoring, coaching and counselling helps people consciously develop job related responses. M L M L Engineer in Managerial job Ach Aff Pow H M L Teacher in Managerial Job Ach Aff Pow H M L Ach Aff Pow Managerial job H Ach Aff Pow Engineer H
  • Motivating Talent Hope Control
  • Motivating Talent Passion Job Growth Talent Minimum Motivation Target: 2 out of 4 Delegation
  • 8. Performance and Reward
  • ‘ Basic Values’ Driven C&B
    • Performance
    • Differentiation
  • What to Pay?
    • Pay for Service
    • Pay for Job
    • Pay for Competency
    • Pay for Performance
  • Pay for Job
    • Competency
    • - Knowledge
    • - Skills
    • - Experience
    • Problem solving
    • - Complex
    • - Type of problems
    • - Special Problems
    • Responsibility
    • - Authority
    • - Success/Failure
    • - Freedom to act
  • Performance and Incentives
    • Internal Equity
      • Internal Job Rates
      • Performance differentials
    • External Competitiveness
      • External Job Rates - Benchmarking
      • Demand & Supply
  • What’s the Difference?
    • Increment
    • Bonus
    • Promotion
    Exercise: How does your company define the difference?
  • What to Pay?
    • Pay for Service
    • Pay for Job
    • Pay for Competency
    • Pay for Performance
    Exercise: Which ones does your company use for Pay?
  • Compa Ratio Table
    • Use this if your company:
    • Pays for Performance , and
    • Pays for Job rates
    • Def:
    • Mid-Point = Mid Point of Pay Grade
    Grade E2 Min RM2,000 MID RM2,500 Max RM3,000
  • Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 4 3 2 1
  • Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 4 3 5% 2 1
  • Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 9 4 7 3 9 7 5% 4 3 2 2 1 0
  • Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 15 12 9 8 7 4 12 9 7 5 3 3 9 7 5% 4 3 2 6 4 2 1 0 1 4 2 0 0 0
    • Exercise:
    • Determine your pay grades and salary points (internal or external benchmark?)
    • Draw your Compa Ratio Table
  • Employee Differentiation through Relative Performance and Talent Management
  • Values Driven C&B
    • Performance
    • Differentiation
  • Employee Distinction? < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 9 8 7 6 5 4 8 7 6 5 4 3 7 6 5% 4 3 2 6 5 4 3 2 1 5 4 3 2 1
  • Employee Distinction? < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 20 15 12 8 5 4 18 12 9 5 3 3 9 7 5% 4 3 2 1 1 1 0 0 1 0 0 0 0 0
  • Employee Distinction Average Rating Rating Multiply Factor Example Rating Example Increment > 4.1 5 2 4.2 8.4% > 3.3 – 4.1 4 1.2 3.5 4.2% > 2.3 – 3.3 3 0.75 2.8 2.1% > 1.3 – 2.3 2 0.5 1.8 0.9% ≤ 1.3 1 0 1.0 0%
  • Employee Distinction Group I (Talent Pool) Group II (  Potential) Group III (  Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL
    • Identify
  • Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff
  • 9. Performance Management: Issues and Challenges
  • Other Performance Review processes
    • Result Planning schedule inc. BSC, Budget
    • Quarterly Performance Appraisals
    • EMC – sales performance
    • QMS – non-sales performance
    • Divisional meetings
    • Annual Appraisals
    • Specialized KPI committees
    • CAR, PAR, SCAR KPI improvements
    • Internal Audit & MSD – process problems
    • HRM & TND – people problems
    • Supervisor Induction – PM training
    • Talent Management
    www.myCNI.com.my www.OOBEY.com
  • More Problems….
    • cost of evaluation vs. gains of evaluation
    • defer achievements of a good year to next
    • barely achieve so that next target is not high
    • spread improvements over several years
    • value reducing actions to increase performance
    • most ratings are 4 or 5, new people are 3
  • Before I forget…
    • Re-train Appraisers
    • Train new Appraisers
  • Issues and Challenges
    • HODs unclear
    • HODs disagree/unsupportive
    • HODs not committed
    • Functional silos
    • HODs not willing to openly differentiate
    • Incompetent superiors/HODs
    • Difficult to evaluate
    • Aligning with Business Goals
    • Unsynchronized and unmonitored training and development
  • End Point The end of the Beginning
  • Your Business Model
  •  
  • What is the Business Model? USP Market Discipline Profit Model
    • Google
    • Tata Nano
  • Business Model: USP USP (How do I position my organization?) External Customer **Internal
  • Business Model: Profit Model Revenue Cost Margin Cash Flow Assets
  • Intro: Market Discipline
    • &quot;Exactly what I need&quot;
    • Customized products
    • Personalized communications
    • &quot;They're very responsive&quot;
    • Preferential service and flexibility
    • Recommends what I need
    • &quot;I'm very loyal to them&quot;
    • Helps us to be a success
    &quot;They are the most innovative&quot; &quot;Constantly renewing and creative&quot; &quot;Always on the leading edge&quot; &quot;A great deal!&quot; Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership &quot;A no-hassles firm&quot; Convenience and speed Reliable product and service Product Leadership Operational Excellence Customer Intimacy
    • Air Asia
    • LV
    • Ramly
  • Alignment & Consistency: Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
  • Strategy: Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
    • Product Leadership
    • New, state of the art products or services
    • Risk takers
    • Meet volatile customer needs
    • Fast concept-to- counter
    • Never satisfied - obsolete own and competitors' products
    • Learning organization
    Alignment & Consistency: Disciplines, Priorities, and KPIs
    • Operational Excellence
    • Competitive price
    • Error free, reliable
    • Fast (on demand)
    • Simple
    • Responsive
    • Consistent information for all
    • Transactional
    • 'Once and Done'
    • Customer Intimacy
    • Management by Fact
    • Easy to do business with
    • Have it your way (customization)
    • Market segments of one
    • Proactive, flexible
    • Relationship and consultative selling
    • Cross selling
  • Sample KPIs for Each Discipline
    • Operational Excellence
    • Price
    • Selection
    • Convenience
    • Zero Defects
    • Growth
    • Customer Intimacy
    • Customer Knowledge
    • Solutions Offered
    • Penetration
    • Customer Data
    • Customer-success focus
    • Product Leadership
    • Marketing
    • Functionality
    • # of Successes
    • # of Failures
    • Learn from key users
    • Interdisciplinary teams
    • Pipeline
  • Alignment & Consistency: Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
  • Alignment & Consistency Operational Excellence (low cost producer) Product Leadership (best product) Customer Intimacy (best total solution) HP well-balanced portfolio, mass customization Acer super lean cost structure, aggressive pricing Apple powerful products, premium pricing, limited range Still Doing well in 2009/2010
  • Other thoughts…
    • Big matters/Small Matters
    • Differentiate of Die
    • Define “Talent”
    • No “Jerk” rule
    • Flat Structure?
    • The Jerk Boss
    • All aspects
    • Hire Strict
  • Don’t forget…
    • “ The business of business is Business, not Performance Management”
  • QUESTIONS, ANSWERS, COMMENTS
    • forum
  • Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/