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Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop

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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

Published in: Business, Technology

Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop

  1. 1. EMPLOYEE YEAR END PERFORMANCE APPRAISAL [Matching Employee KPI to Company Goals & Benefits Structure] Training Session and Workshop Kenny Ong
  2. 2. Intro What is your objective?
  3. 3. Managing Expectations <ul><li>Exercise: Please note down one important item you want to learn or get out from this workshop </li></ul>
  4. 7. The McPlaybook* <ul><li>Make it easy to eat </li></ul><ul><li>50% drive-thru </li></ul><ul><li>Meals held in one hand </li></ul><ul><li>Make it easy to prepare </li></ul><ul><li>High Turnover </li></ul><ul><li>Tasks simple to learn & repeat </li></ul><ul><li>Make it quick </li></ul><ul><li>“ Fast Food” </li></ul><ul><li>Tests new products for Cooking Times </li></ul><ul><li>Make what customers want </li></ul><ul><li>Prowls market for new products </li></ul><ul><li>Monitored field tests </li></ul>*Adapted from: Businessweek , Februrary 5 th 2007
  5. 8. Why do we hate Performance Appraisals?
  6. 9. Complaints about Performance Appraisals As an Appraisee As an Appraisor Mgmt/HR
  7. 10. Complaints about Performance Appraisals <ul><li>Bias </li></ul><ul><li>Different Standards </li></ul><ul><li>Surprise </li></ul><ul><li>Subjective </li></ul><ul><li>No linkage* </li></ul><ul><li>No differentiation </li></ul><ul><li>Secretive </li></ul><ul><li>No follow up </li></ul><ul><li>No control </li></ul>As an Appraisee
  8. 11. Complaints about Performance Appraisals <ul><li>Cannot remember </li></ul><ul><li>Tedious </li></ul><ul><li>Subjective </li></ul><ul><li>Right targets </li></ul><ul><li>Scoring Competencies* </li></ul><ul><li>Defensive staff </li></ul><ul><li>No $$ to differentiate </li></ul><ul><li>Prejudices </li></ul><ul><li>Results or Activities </li></ul>As an Appraiser
  9. 12. Complaints about Performance Appraisals <ul><li>Flexible or Control? </li></ul><ul><li>MBO or Character? </li></ul><ul><li>Best Practice or Fit Culture? </li></ul><ul><li>Backward or Forward? </li></ul><ul><li>Quarterly Results or Long-term? </li></ul><ul><li>No $$ to differentiate* </li></ul><ul><li>Perfect System, Bad performance </li></ul><ul><li>Recency and Halo effects </li></ul><ul><li>Untrained Appraisers </li></ul>Mgmt/HR
  10. 13. Complaints about Performance Appraisals - Summary <ul><li>Process problem </li></ul><ul><li>Form problem </li></ul><ul><li>People problem </li></ul>
  11. 14. What’s the Difference? <ul><li>Performance Appraisal </li></ul><ul><li>Performance Management </li></ul>
  12. 15. Coaching & Counseling Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?
  13. 16. What is the OBJECTIVE of a Performance Management System? <ul><li>What is the ultimate objective of a Performance Management System? </li></ul><ul><li>‘ Performance’ – achievement, </li></ul><ul><li>‘ Management’ – controllable, improvement </li></ul><ul><li>‘ System’ – predictable outcome, autorun </li></ul><ul><li>Summary? </li></ul><ul><li>A Predictable process to Improve Controllable Achievements </li></ul>
  14. 17. What’s In Between Planning and Execution? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model
  15. 18. 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
  16. 19. Intro <ul><li>Performance Management System = Business Plan Implementation </li></ul><ul><li>Succession Planning = Business Continuity Planning </li></ul><ul><li>Talent Management = Sustainable Business Performance Management </li></ul>
  17. 20. 1. Using Performance Appraisals in Performance Management
  18. 21. <ul><li>“… 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&quot; </li></ul>CEO, Anonymous
  19. 22. Before we start… <ul><li>In the old days of HR… </li></ul><ul><li>Average training hours per staff </li></ul><ul><li>% of staff attending training </li></ul><ul><li># of training programs </li></ul><ul><li>% of training programs conducted </li></ul><ul><li>Training needs analysis conducted </li></ul><ul><li>Competency models developed </li></ul><ul><li>Training budget as % of payroll </li></ul>What’s wrong with this picture?
  20. 23. Before we start… <ul><li>Moral of the story… </li></ul><ul><li>Innovation: </li></ul><ul><ul><li>Business models </li></ul></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Services </li></ul></ul><ul><li>Market Leadership </li></ul><ul><li>Competitive differentiation </li></ul>Get the picture?
  21. 24. <ul><li>“ What is the moral of the story?” </li></ul>
  22. 25. Which Company? <ul><li>American Customer Satisfaction Index (ACSI) </li></ul><ul><li>64 out of100-point scale: lower than IRS (Tax) </li></ul><ul><li>2 nd last among 30 companies surveyed </li></ul><ul><li>Lowest 5% among 223 companies surveyed </li></ul><ul><li>Bottom 5% of all measured private sector companies </li></ul><ul><li>500 million customers </li></ul>2010 American Customer Satisfaction Index (ACSI)  E-Business Report
  23. 26. Which Company? <ul><li>American Customer Satisfaction Index (ACSI) </li></ul><ul><li>64 out of100-point scale: lower than IRS (Tax) </li></ul><ul><li>2 nd last among 30 companies surveyed </li></ul><ul><li>Lowest 5% among 223 companies surveyed </li></ul><ul><li>Bottom 5% of all measured private sector companies </li></ul><ul><li>500 million customers </li></ul>2010 American Customer Satisfaction Index (ACSI)  E-Business Report
  24. 27. Popularly Unpopular <ul><li>Popularity </li></ul><ul><li>≠ </li></ul><ul><li>Affection </li></ul>
  25. 28. The Integrated and Holistic Performance Management System
  26. 29. Why Performance Appraisal? Performance Management Selection Development Motivation Evaluation
  27. 30. Talent Segmentation Group I (Talent Pool) <ul><li>Identify </li></ul>2 3 4 5 PERFORMANCE 2 3 4 5 POTENTIAL
  28. 31. 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 <ul><li>Identify </li></ul>
  29. 32. Selection and Identification PERFORMANCE APPRAISAL 1. Results 2. Values 3. Special Contributions
  30. 33. Selection and Identification POTENTIAL EVALUATION 1. Capacity 2. Competencies 3. Culture
  31. 34. Selection and Identification POTENTIAL EVALUATION 1. Capacity Learn Next Level Ambition
  32. 35. Selection and Identification POTENTIAL EVALUATION 2. Competencies Competent Reliable/Consistent Pressure
  33. 36. Selection and Identification POTENTIAL EVALUATION 3. Culture Demonstrate Improve Influence
  34. 37. Exercise <ul><li>Define ‘Performance’ </li></ul><ul><li>Define ‘Potential’ </li></ul>
  35. 38. Exercise <ul><li>Exercise: </li></ul><ul><li>Factors for Performance Appraisal </li></ul><ul><li>Factors for Potential Appraisal </li></ul>
  36. 39. 2. Getting Performance Appraisal Objectives Right
  37. 40. 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!
  38. 41. What is the OBJECTIVE? <ul><li>What is the ultimate objective of a Performance Management System? </li></ul><ul><li>‘ Performance’ – achievement, </li></ul><ul><li>‘ Management’ – controllable, improvement </li></ul><ul><li>‘ System’ – predictable outcome, autorun </li></ul><ul><li>Summary? </li></ul><ul><li>A Predictable process to Improve Controllable Achievements </li></ul>www.myCNI.com.my www.OOBEY.com
  39. 42. 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
  40. 43. What is Performance Measurement used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com
  41. 44. <ul><li>Exercise: How would your Evaluation System look like for these different objectives? </li></ul>
  42. 45. 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?
  43. 46. 3. Performance Management
  44. 47. Alignment: 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources
  45. 48. Alignment: Framework <ul><li>Org Structure </li></ul><ul><li>Job Design </li></ul><ul><li>C&B </li></ul><ul><li>Policies & procedures </li></ul><ul><li>Decision making </li></ul><ul><li>Job fit </li></ul><ul><li>Management Systems </li></ul><ul><li>BSC and KPIs </li></ul><ul><li>Decentralized & Empower </li></ul>Structure
  46. 49. Strategy: Framework <ul><li>Role modeling </li></ul><ul><li>Vision/Mission/Philosophy </li></ul><ul><li>Leadership Style </li></ul><ul><li>Delegation & Empowerment </li></ul><ul><li>C&B, Promotions </li></ul><ul><li>Sense of Urgency </li></ul><ul><li>Speak regularly about Performance </li></ul>Leadership
  47. 50. Strategy: Framework <ul><li>Recognition </li></ul><ul><li>Recruitment </li></ul><ul><li>Training </li></ul><ul><li>Attitude </li></ul><ul><li>Values </li></ul><ul><li>Motivation </li></ul><ul><li>Self Efficacy </li></ul><ul><li>Awareness </li></ul><ul><li>Useful Competencies </li></ul><ul><li>Career aspirations </li></ul><ul><li>Attribution (control) </li></ul>Person
  48. 51. Strategy: Framework <ul><li>Enablers or Obstacles </li></ul><ul><li>Technology </li></ul><ul><li>Equipment </li></ul><ul><li>Materials </li></ul><ul><li>Human </li></ul><ul><li>Intellectual Property </li></ul><ul><li>Partners </li></ul><ul><li>Property </li></ul><ul><li>Funding </li></ul><ul><li>CAPEX </li></ul><ul><li>OPEX </li></ul>Resources
  49. 52. Alignment: Framework <ul><li>Focus point </li></ul><ul><li>Alignment </li></ul><ul><li>Quality </li></ul><ul><li>Innovation & Differentiation </li></ul><ul><li>Risk taking </li></ul><ul><li>Performance Management </li></ul><ul><li>Corporate obsession </li></ul><ul><li>Decision making </li></ul>Culture
  50. 53. 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources
  51. 54. Performance Management Cycle
  52. 55. <ul><li>Refer to pages 8-9 of the Performance Management Workshop –Workbook- </li></ul>
  53. 56. Performance Planning
  54. 57. 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
  55. 58. Results Driven <ul><li>Activity vs. Accountability </li></ul>
  56. 59. 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.
  57. 60. <ul><li>Exercise: Results Description Questionnaire </li></ul>
  58. 61. Sources of Goals and KPIs <ul><li>Exercise: List down the sources of Goals and KPIs available in your company: </li></ul><ul><ul><li>E.g. Job Description (RDQ) </li></ul></ul>
  59. 62. MBO – Sources of KRAs and KPIs, Targets <ul><li>Department Scorecard [E3], </li></ul><ul><li>Employee’s Job Description, </li></ul><ul><li>Department SOP, </li></ul><ul><li>Department Quality Objectives, </li></ul><ul><li>Corrective Action Requests (CAR), </li></ul><ul><li>Preventive Action Requests (PAR), or </li></ul><ul><li>Special Projects relevant to the employee. </li></ul>
  60. 63. Performance Planning: KPIs and Critical Goals <ul><li>Refer to pages 19-23 of the Performance Management Workshop –Workbook- </li></ul>
  61. 64. Basics of the Balanced Scorecard
  62. 65. Reminder: Why BSC? <ul><li>Reason 1: Balanced </li></ul><ul><li>Reason 2: Cause-and-Effect </li></ul>www.myCNI.com.my www.OOBEY.com
  63. 66. 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
  64. 67. 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
  65. 68. 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
  66. 69. Leading and Lagging KPIs
  67. 70. Cause and Effect Goal: Healthy! <ul><li>What are my Vital Signs? </li></ul><ul><li>Blood Pressure? </li></ul><ul><li>Temperature? </li></ul><ul><li>Cholesterol? </li></ul><ul><li>Fever? </li></ul><ul><li>Chest Pain? </li></ul><ul><li>Dizziness? </li></ul>
  68. 71. Cause and Effect <ul><li>Also known as: </li></ul><ul><li>Leading vs. Lagging Indicators </li></ul>
  69. 72. Exercise: Leading vs. Lagging <ul><li>Lagging? </li></ul><ul><li>Monthly Sales </li></ul><ul><li>Customer Retention </li></ul><ul><li>Project success </li></ul><ul><li>Event attendance </li></ul><ul><li>ARPU </li></ul><ul><li>Customer Satisfaction </li></ul><ul><li>Dealer Satisfaction </li></ul><ul><li>Leading? </li></ul>
  70. 73. 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?&quot; 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?
  71. 74. 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
  72. 75. 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
  73. 76. What is the Objective? <ul><li>‘ Do-or-Die’ KPIs for CNI </li></ul><ul><li>Revenue </li></ul><ul><li>ARPU </li></ul><ul><li>Sponsoring </li></ul><ul><li>Retention </li></ul><ul><li>Commission Plan (BDP) </li></ul><ul><li>Product </li></ul><ul><li>Corporate Image </li></ul>
  74. 77. <ul><li>Exercise: What are the Key 1 st Level KPIs for your Industry? </li></ul>
  75. 78. <ul><li>Exercise: Developing your own Leading and Lagging KPIs </li></ul>
  76. 79. B2B/B2G BSC Matching Customer/Client/ Government BSC Your BSC <ul><li>Draw your ‘customer’s’ BSC </li></ul><ul><li>Match their CP/IP with your CP </li></ul><ul><li>Identify IPs that support/conflict </li></ul>
  77. 80. Performance Planning: KPIs and Critical Goals <ul><li>Refer to pages 24-25 of the Performance Management Workshop –Workbook- </li></ul><ul><li>Refer to “Attachments” for examples of KPIs </li></ul>
  78. 81. Performance Standards
  79. 82. MBO Standards A Excellent B Good C Average D Poor E Useless
  80. 83. MBO Standards A Excellent B Good C Average Good D Poor E Useless
  81. 84. MBO Standards A Excellent Excellent B Good Very Good C Average Good D Poor Not Good E Useless Commit Suicide
  82. 85. 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
  83. 86. Performance Planning: Performance Standards <ul><li>Refer to pages 24-25 of the Performance Management Workshop –Workbook- </li></ul>
  84. 87. Performance Planning and KPIs: Cascading from Company-Department-Individual
  85. 88. E3 – Department BSC Financial Perspective Goals Measures Targets CAPEX OPEX Quality Innovation On Time Delivery
  86. 89. 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
  87. 90. Cascading Customer Perspective Goals Strategies Targets Direct Indirect Base Retention Mkt Share Gain Mkt New Business BD
  88. 91. E3 – Department BSC Customer Perspective – Marketing Department Budgeting Goals Strategies Targets CAPEX OPEX Base Retention Share Gain
  89. 92. 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
  90. 93. Competencies
  91. 94. Position: Secretary The Job Person Characteristics The Superior Performer <ul><li>Typing </li></ul><ul><li>Manages communications </li></ul><ul><li>Keeps short-hand notes </li></ul><ul><li>Makes appointments </li></ul><ul><li>Uses the computer </li></ul><ul><li>Filing </li></ul><ul><li>Takes minutes </li></ul><ul><li>Follow-up </li></ul><ul><li>Makes coffee </li></ul><ul><li>Keeps secrets </li></ul><ul><li>Drafts letter </li></ul><ul><li>Screens calls </li></ul><ul><li>Pleasant </li></ul><ul><li>Accurate </li></ul><ul><li>Is able to take notes on shorthand and typing memo effectively </li></ul><ul><li>Presentable </li></ul><ul><ul><li>Appearance </li></ul></ul><ul><ul><li>Behaviours </li></ul></ul><ul><li>Good manners </li></ul><ul><li>Courteous </li></ul><ul><li>Diligent </li></ul><ul><li>Proactive </li></ul><ul><li>Initiative </li></ul><ul><li>Independent </li></ul><ul><li>Integrity (trust) </li></ul><ul><li>Creative </li></ul><ul><li>Resourcefulness </li></ul><ul><li>Always excel </li></ul><ul><li>Unwavering dedication and commitment </li></ul><ul><li>Ability to make simple decisions </li></ul><ul><li>Sensitive to people </li></ul><ul><li>Positive attitude </li></ul>Responsibilities + Tasks + Activities Personal Competencies Differentiating Competencies
  92. 95. Competencies: Intro <ul><li>Refer to page 27 of the Performance Management Workshop –Workbook- </li></ul>
  93. 97. Competencies
  94. 98. Competencies: An Explanation <ul><li>Refer to pages 47-51 of the Performance Management Workshop –Workbook- </li></ul>
  95. 99. Superstar Competency Model <ul><li>Exercise: Develop Your Own “Superstar” Competency Model </li></ul><ul><li>Refer to page 52 of the Performance Management Workshop –Workbook- </li></ul>
  96. 100. Competency Target Setting <ul><li>Initiative </li></ul><ul><li>Teamwork </li></ul><ul><li>Problem Solving </li></ul><ul><li>Leadership </li></ul><ul><li>Integrity </li></ul>What’s the problem here?
  97. 101. Competency Target Setting <ul><li>Initiative </li></ul><ul><li>Minimize problems quickly without needing to be asked </li></ul><ul><li>Seeks personal growth and professional self-development </li></ul><ul><li>Doing more than is required/expected in a job </li></ul><ul><li>Seeks new and improved solutions and approaches to completing assignments </li></ul><ul><li>Looks for opportunities to help others and team </li></ul>
  98. 102. <ul><li>Exercise: Competency Dictionary </li></ul>
  99. 103. Competency Dictionary: An Example <ul><li>Refer to pages 53 of the Performance Management Workshop –Workbook- </li></ul>
  100. 104. 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.
  101. 105. Exercise: Competency Standards
  102. 106. Performance Coaching
  103. 107. Coaching & Counseling Refer: Coaching Self-Assessment Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?
  104. 108. Performance Coaching <ul><li>Refer to pages 29-33 of the Performance Management Workshop –Workbook- </li></ul>
  105. 109. Performance Coaching <ul><li>Exercise: Refer to pages 34 of the Performance Management Workshop –Workbook- </li></ul><ul><li>Competencies of a Good Coach </li></ul><ul><li>Self Evaluation </li></ul>
  106. 110. 4. Putting it all together
  107. 111. Designing Your Own Performance Appraisal Form
  108. 112. Performance Appraisal Form <ul><li>Exercise: Performance Appraisal Form - Critical Components </li></ul><ul><ul><li>What Do you Want to Evaluate? </li></ul></ul><ul><ul><li>What are Your Objectives? </li></ul></ul>
  109. 113. Performance Appraisal Form <ul><li>Refer to Sample Performance Appraisal Forms: Non-Executives and Executives </li></ul>
  110. 114. Performance Evaluation
  111. 115. Performance Evaluation <ul><li>Exercise: Refer to pages 38-42 of the Performance Management Workshop –Workbook- </li></ul>
  112. 116. Evaluation: Key Steps <ul><li>Exercise: Refer to pages 43-45 of the Performance Management Workshop –Workbook- </li></ul><ul><li>Attitude </li></ul><ul><li>Seating </li></ul><ul><li>Begin </li></ul><ul><li>Review </li></ul><ul><li>Comments </li></ul><ul><li>Future </li></ul><ul><li>Performance vs. Person </li></ul><ul><li>Closing </li></ul>
  113. 117. 5. People Skills and Performance Appraisals
  114. 118. Before we start <ul><li>“ You can get anything in life that you want if you can help enough people get what they want” </li></ul>
  115. 119. Law of the Ping-Pong Ball a.k.a. Law of Cause and Effect
  116. 120. Managing your Relationships <ul><li>Basics of Relationships </li></ul><ul><li>Why? </li></ul><ul><li>Good performance & skill won't get you very far. You need others to succeed </li></ul><ul><li>You cannot get people to listen to you if they don't like you. </li></ul><ul><li>And if they don’t listen to you, you won’t accomplish anything! </li></ul><ul><li>Relationships = Expectations. </li></ul>
  117. 121. But first…Do you know yourself? <ul><li>Strengths? Limitations? </li></ul><ul><li>Good listener? </li></ul><ul><li>Emotionally stable? </li></ul><ul><li>Biases or Prejudices? </li></ul><ul><li>What is “Fair”? </li></ul>
  118. 122. Managing your Relationships: People Skills <ul><li>People are interested in themselves, not in you </li></ul><ul><li>What is the most interesting subject in the world to them? THEMSELVES </li></ul><ul><li>Take four words out of your vocabulary: “I, me, my, mine” and substitute for the most powerful word: “YOU” </li></ul><ul><li>Remember that the more important you make people feel, the more they will respond to you. </li></ul><ul><li>Avoid arguing. </li></ul>
  119. 123. Communication SF LINA L isten with interest and praise make the person feel I mportant use their N ame A sk questions
  120. 124. 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
  121. 125. Personality SF S + FH + C S mile F irm H andshake C ompliment
  122. 126. Communication Styles Refer to Handout for detailed explanation Assertive Passive- Aggressive Aggressive Passive Comm    
  123. 127. How to be Assertive 1. Describe 2. Express 3. Specify
  124. 128. Three Steps to Assertive Communication: <ul><li>Describe the situation or idea as clearly and specifically as you can. </li></ul><ul><li>Express how you feel about the situation. (Note: Use &quot;I&quot; or &quot;My&quot; statements to refer to how you are feeling and what you are thinking.) </li></ul><ul><li>Specify what you want. Include a specific deadline. </li></ul>Refer to Exercise: Practicing Assertive Behavior
  125. 129. Exercise: Assertive Communication <ul><li>Someone has pushed into the queue/line in front of you. </li></ul><ul><li>Someone you respect has expressed an opinion with which you strongly disagree. </li></ul><ul><li>Someone in your organisation has a specific complaint that they won’t let go, even though it has been dealt with several times. </li></ul><ul><li>A friend has betrayed your confidence or hurt you. </li></ul><ul><li>A person in your organisation is constantly talking about another member behind her back. This is divisive and destructive to your organisation. </li></ul>
  126. 130. Active Listening <ul><li>Attending </li></ul><ul><li>Paraphrasing </li></ul><ul><li>Speaking </li></ul><ul><li>Clarifying </li></ul><ul><li>Asking </li></ul><ul><li>Encouraging </li></ul><ul><li>Reflecting </li></ul><ul><li>Summarizing </li></ul>Personal Tip: ‘Picking’
  127. 131. Active Listening Techniques <ul><li>Attending: using non-verbal indicators such as leaning forward, nodding your head, sitting in an open, receptive posture </li></ul><ul><li>Paraphrasing: repeating in your own words what the other person has said; the restatement should not judge in any way </li></ul><ul><li>Speaking from the self: using &quot;I&quot; 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. </li></ul>
  128. 132. Active Listening Techniques <ul><li>Clarifying: asking for further clarification or an example to illustrate often helps find clarity in the meaning. </li></ul><ul><li>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 &quot;Then what/ How?” Silence can be used to encourage the speaker to continue. </li></ul><ul><li>Encouraging: asking person to “tell me more about” or give them a supportive comment like “good idea” or “I like that approach”. </li></ul>
  129. 133. Active Listening Techniques <ul><li>Reflecting: playing back the communication as you hear and feel it, e.g., “you seem to feel very strongly about that” </li></ul><ul><li>Summarizing : giving back a review or summary of what you heard. This helps make sure the communication is </li></ul>
  130. 134. Asking Questions? <ul><li>Ask to clarify viewpoints, values or beliefs </li></ul><ul><ul><li>Would you like a drink? </li></ul></ul><ul><ul><li>What further info do you need? </li></ul></ul><ul><ul><li>Is it the <problem>, or is there something else? </li></ul></ul><ul><ul><li>What exactly do you mean? </li></ul></ul><ul><ul><li>What do you think are the pros and cons? </li></ul></ul>
  131. 135. Asking Questions? <ul><li>What’s most important to you in… </li></ul>
  132. 136. Asking Questions? <ul><li>Convert instructions into Questions </li></ul>
  133. 137. <ul><li>Exercise: Role Play </li></ul>
  134. 138. Understanding Conflicts What is…, Sources of…,
  135. 139. Why do Conflicts happen? Unrealistic Expectations Inadequate Resources CONFLICTS Lack of Cooperation Reduce Energy
  136. 140. Why do Conflicts happen? Unrealistic Expectations <ul><li>‘ I am always right’ opinion </li></ul><ul><li>Do not understand ourselves </li></ul><ul><li>Do not understand others </li></ul><ul><li>Different backgrounds </li></ul><ul><li>Aggressive, Selfish, Stubborn </li></ul><ul><li>Win-lose mentality </li></ul>
  137. 141. Conflict: Good or Bad? <ul><li> Good </li></ul><ul><li>Clarification </li></ul><ul><li>Release emotions </li></ul><ul><li>Release stress </li></ul><ul><li>Understand each other </li></ul><ul><li>Build cooperation & trust </li></ul><ul><li>Develop problem solving </li></ul><ul><li>Create energy </li></ul>
  138. 142. Conflict: Good or Bad? <ul><li> Bad </li></ul><ul><li>Diverts energy </li></ul><ul><li>Polarizes groups </li></ul><ul><li>Deepens differences </li></ul><ul><li>‘ Either-Or’ positions </li></ul><ul><li>Always right mentality </li></ul><ul><li>Develop negative feelings </li></ul>
  139. 143. Conflict: Good or Bad? <ul><li>  Very Very Bad </li></ul><ul><li>Informal discussions </li></ul><ul><li>Mis-information </li></ul><ul><li>Positions </li></ul><ul><li>Factions </li></ul>
  140. 144. Sources of Conflicts Instrumental Interest Personal
  141. 145. Sources of Conflicts <ul><li>Goals </li></ul><ul><li>Means </li></ul><ul><li>Procedures </li></ul><ul><li>Structures </li></ul>Instrumental
  142. 146. Sources of Conflicts <ul><li>Money </li></ul><ul><li>Time </li></ul><ul><li>Staff Space </li></ul><ul><li>Importance </li></ul><ul><li>Ownership </li></ul><ul><li>Competence </li></ul>Interest
  143. 147. Sources of Conflicts <ul><li>Identity </li></ul><ul><li>Self-image </li></ul><ul><li>Loyalty </li></ul><ul><li>Confidence breach </li></ul><ul><li>No respect </li></ul><ul><li>Friendship Betrayal </li></ul>Personal
  144. 148. Managing Conflicts and Difficult People The world is full of people who don’t like you… live with it.
  145. 149. But First… <ul><li>Do you want to maintain the relationship? </li></ul><ul><li>Yes? No? </li></ul>
  146. 150. 1. Compromise, if possible
  147. 151. 2. Win-win, if possible
  148. 152. 3. Adapt, to different people
  149. 153. 4. Hide your Ego
  150. 154. 5. Lower your Expectations
  151. 155. 6. Find Common Ground
  152. 156. 7. Same Destination, Different Paths
  153. 157. <ul><li>“ I understand …” </li></ul>
  154. 158. 9. Accept the fact
  155. 159. 10. Face
  156. 160. Difficult People <ul><li>Handling Difficult People: </li></ul><ul><li>The word ‘Difficult’ has different meanings </li></ul><ul><li>Difficult can mean different Personality: </li></ul><ul><ul><li>Refer to “Managing Different Personalities” </li></ul></ul><ul><li>Difficult can mean Rude and Obnoxious </li></ul><ul><ul><li>Listen, Ask Questions </li></ul></ul><ul><ul><li>FAI (forget-about-it) </li></ul></ul>
  157. 161. 6. The Performance Management Handbook
  158. 162. Performance Management Handbook <ul><li>Refer to the Performance Management Handbook </li></ul>
  159. 163. 7. Managing Performance and Motivation
  160. 164. Root Causes for Performance Problems <ul><li>Right Person, Wrong Job (5%) </li></ul><ul><li>Wrong Person, Right Job (20%) </li></ul><ul><li>Wrong Person, Wrong Job (1%) </li></ul><ul><li>Right Person, Right Job, Managed Wrongly (74%) </li></ul>
  161. 165. Analyzing and Solving Performance Discrepancies
  162. 166. <ul><li>Beating a Dead Horse </li></ul>
  163. 167. Most Common Desperate Performance Improvement methods <ul><li>Send for more Training </li></ul><ul><li>Enforce more Incentives (positive/negative) </li></ul>
  164. 168. Dangers of Direct Incentives <ul><li>lessen internal motivation, </li></ul><ul><li>switch to mercenary mode, </li></ul><ul><li>do something and do not do something else, </li></ul><ul><li>bribe and fraud culture, </li></ul><ul><li>easier for competitors to recruit, </li></ul><ul><li>lessen teamwork & helpful culture, </li></ul><ul><li>less and less impact for same value, </li></ul><ul><li>mockery of base salary and employment contract, </li></ul><ul><li>rebellion from non-incentivised staff, </li></ul><ul><li>end up incentivising everyone for everything?, </li></ul>
  165. 169. Mager and Pipe <ul><li>Analyzing Performance Discrepancies </li></ul>
  166. 170. Alignment: 4-Wheels Model Philosophies Corporate Objective Performance Objectives Structure Resources Leadership Person
  167. 171. Performance and Motivation
  168. 172. Understanding Personalities Handouts: Personality Types & Getting Tasks Done Closed Open People Task Perfect: Melancholy Powerful: Choleric Popular: Sanguine Peaceful: Phlegmatic
  169. 173. The Motive Profile Power (nPow) Achievement (nAch) Affiliative (nAff)
  170. 174. Motive Profile vs. Job Description Achievement Affiliation Power <ul><li>Continually improve his/her performance </li></ul><ul><li>Personally produce work of excellent quality </li></ul><ul><li>Be creative & innovative </li></ul><ul><li>Accomplish tasks or projects personally, start to finish </li></ul><ul><li>Set own performance </li></ul><ul><li>Monitor own progress & know results of work immediately after work is completed </li></ul><ul><li>Work cooperatively </li></ul><ul><li>Frequently help others with their problems </li></ul><ul><li>Socialize much on an informal basis </li></ul><ul><li>Empathize with others </li></ul><ul><li>Be interested in others </li></ul><ul><li>Depend on others’ work </li></ul><ul><li>Maintain others’ morale </li></ul><ul><li>Be sensitive to his/her impact on others </li></ul><ul><li>Tell others what has to be done & manage them </li></ul><ul><li>Respond to others’ requests for decisions, & make decisions that affect others </li></ul><ul><li>Make things happen through others </li></ul>
  171. 175. 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
  172. 176. 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
  173. 177. Motivating Talent Hope Control
  174. 178. Motivating Talent Passion Job Growth Talent Minimum Motivation Target: 2 out of 4 Delegation
  175. 179. 8. Performance and Reward
  176. 180. ‘ Basic Values’ Driven C&B <ul><li>Performance </li></ul><ul><li>Differentiation </li></ul>
  177. 181. What to Pay? <ul><li>Pay for Service </li></ul><ul><li>Pay for Job </li></ul><ul><li>Pay for Competency </li></ul><ul><li>Pay for Performance </li></ul>
  178. 182. Pay for Job <ul><li>Competency </li></ul><ul><li>- Knowledge </li></ul><ul><li>- Skills </li></ul><ul><li>- Experience </li></ul><ul><li>Problem solving </li></ul><ul><li>- Complex </li></ul><ul><li>- Type of problems </li></ul><ul><li>- Special Problems </li></ul><ul><li>Responsibility </li></ul><ul><li>- Authority </li></ul><ul><li>- Success/Failure </li></ul><ul><li>- Freedom to act </li></ul>
  179. 183. Performance and Incentives <ul><li>Internal Equity </li></ul><ul><ul><li>Internal Job Rates </li></ul></ul><ul><ul><li>Performance differentials </li></ul></ul><ul><li>External Competitiveness </li></ul><ul><ul><li>External Job Rates - Benchmarking </li></ul></ul><ul><ul><li>Demand & Supply </li></ul></ul>
  180. 184. What’s the Difference? <ul><li>Increment </li></ul><ul><li>Bonus </li></ul><ul><li>Promotion </li></ul>Exercise: How does your company define the difference?
  181. 185. What to Pay? <ul><li>Pay for Service </li></ul><ul><li>Pay for Job </li></ul><ul><li>Pay for Competency </li></ul><ul><li>Pay for Performance </li></ul>Exercise: Which ones does your company use for Pay?
  182. 186. Compa Ratio Table <ul><li>Use this if your company: </li></ul><ul><li>Pays for Performance , and </li></ul><ul><li>Pays for Job rates </li></ul><ul><li>Def: </li></ul><ul><li>Mid-Point = Mid Point of Pay Grade </li></ul>Grade E2 Min RM2,000 MID RM2,500 Max RM3,000
  183. 187. Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 4 3 2 1
  184. 188. 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
  185. 189. 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
  186. 190. 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
  187. 191. <ul><li>Exercise: </li></ul><ul><li>Determine your pay grades and salary points (internal or external benchmark?) </li></ul><ul><li>Draw your Compa Ratio Table </li></ul>
  188. 192. Employee Differentiation through Relative Performance and Talent Management
  189. 193. Values Driven C&B <ul><li>Performance </li></ul><ul><li>Differentiation </li></ul>
  190. 194. 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
  191. 195. 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
  192. 196. 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%
  193. 197. 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 <ul><li>Identify </li></ul>
  194. 198. Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff
  195. 199. 9. Performance Management: Issues and Challenges
  196. 200. Other Performance Review processes <ul><li>Result Planning schedule inc. BSC, Budget </li></ul><ul><li>Quarterly Performance Appraisals </li></ul><ul><li>EMC – sales performance </li></ul><ul><li>QMS – non-sales performance </li></ul><ul><li>Divisional meetings </li></ul><ul><li>Annual Appraisals </li></ul><ul><li>Specialized KPI committees </li></ul><ul><li>CAR, PAR, SCAR KPI improvements </li></ul><ul><li>Internal Audit & MSD – process problems </li></ul><ul><li>HRM & TND – people problems </li></ul><ul><li>Supervisor Induction – PM training </li></ul><ul><li>Talent Management </li></ul>www.myCNI.com.my www.OOBEY.com
  197. 201. More Problems…. <ul><li>cost of evaluation vs. gains of evaluation </li></ul><ul><li>defer achievements of a good year to next </li></ul><ul><li>barely achieve so that next target is not high </li></ul><ul><li>spread improvements over several years </li></ul><ul><li>value reducing actions to increase performance </li></ul><ul><li>most ratings are 4 or 5, new people are 3 </li></ul>
  198. 202. Before I forget… <ul><li>Re-train Appraisers </li></ul><ul><li>Train new Appraisers </li></ul>
  199. 203. Issues and Challenges <ul><li>HODs unclear </li></ul><ul><li>HODs disagree/unsupportive </li></ul><ul><li>HODs not committed </li></ul><ul><li>Functional silos </li></ul><ul><li>HODs not willing to openly differentiate </li></ul><ul><li>Incompetent superiors/HODs </li></ul><ul><li>Difficult to evaluate </li></ul><ul><li>Aligning with Business Goals </li></ul><ul><li>Unsynchronized and unmonitored training and development </li></ul>
  200. 204. End Point The end of the Beginning
  201. 205. Your Business Model
  202. 207. What is the Business Model? USP Market Discipline Profit Model <ul><li>Google </li></ul><ul><li>Tata Nano </li></ul>
  203. 208. Business Model: USP USP (How do I position my organization?) External Customer **Internal
  204. 209. Business Model: Profit Model Revenue Cost Margin Cash Flow Assets
  205. 210. Intro: Market Discipline <ul><li>&quot;Exactly what I need&quot; </li></ul><ul><li>Customized products </li></ul><ul><li>Personalized communications </li></ul><ul><li>&quot;They're very responsive&quot; </li></ul><ul><li>Preferential service and flexibility </li></ul><ul><li>Recommends what I need </li></ul><ul><li>&quot;I'm very loyal to them&quot; </li></ul><ul><li>Helps us to be a success </li></ul>&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 <ul><li>Air Asia </li></ul><ul><li>LV </li></ul><ul><li>Ramly </li></ul>
  206. 211. 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)
  207. 212. 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)
  208. 213. <ul><li>Product Leadership </li></ul><ul><li>New, state of the art products or services </li></ul><ul><li>Risk takers </li></ul><ul><li>Meet volatile customer needs </li></ul><ul><li>Fast concept-to- counter </li></ul><ul><li>Never satisfied - obsolete own and competitors' products </li></ul><ul><li>Learning organization </li></ul>Alignment & Consistency: Disciplines, Priorities, and KPIs <ul><li>Operational Excellence </li></ul><ul><li>Competitive price </li></ul><ul><li>Error free, reliable </li></ul><ul><li>Fast (on demand) </li></ul><ul><li>Simple </li></ul><ul><li>Responsive </li></ul><ul><li>Consistent information for all </li></ul><ul><li>Transactional </li></ul><ul><li>'Once and Done' </li></ul><ul><li>Customer Intimacy </li></ul><ul><li>Management by Fact </li></ul><ul><li>Easy to do business with </li></ul><ul><li>Have it your way (customization) </li></ul><ul><li>Market segments of one </li></ul><ul><li>Proactive, flexible </li></ul><ul><li>Relationship and consultative selling </li></ul><ul><li>Cross selling </li></ul>
  209. 214. Sample KPIs for Each Discipline <ul><li>Operational Excellence </li></ul><ul><li>Price </li></ul><ul><li>Selection </li></ul><ul><li>Convenience </li></ul><ul><li>Zero Defects </li></ul><ul><li>Growth </li></ul><ul><li>Customer Intimacy </li></ul><ul><li>Customer Knowledge </li></ul><ul><li>Solutions Offered </li></ul><ul><li>Penetration </li></ul><ul><li>Customer Data </li></ul><ul><li>Customer-success focus </li></ul><ul><li>Product Leadership </li></ul><ul><li>Marketing </li></ul><ul><li>Functionality </li></ul><ul><li># of Successes </li></ul><ul><li># of Failures </li></ul><ul><li>Learn from key users </li></ul><ul><li>Interdisciplinary teams </li></ul><ul><li>Pipeline </li></ul>
  210. 215. 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)
  211. 216. 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
  212. 217. Other thoughts… <ul><li>Big matters/Small Matters </li></ul><ul><li>Differentiate of Die </li></ul><ul><li>Define “Talent” </li></ul><ul><li>No “Jerk” rule </li></ul><ul><li>Flat Structure? </li></ul><ul><li>The Jerk Boss </li></ul><ul><li>All aspects </li></ul><ul><li>Hire Strict </li></ul>
  213. 218. Don’t forget… <ul><li>“ The business of business is Business, not Performance Management” </li></ul>
  214. 219. QUESTIONS, ANSWERS, COMMENTS <ul><li>forum </li></ul>
  215. 220. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/

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