Creating Performance Based Culture trough Performance Management Systems

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  • Creating Performance Based Culture trough Performance Management Systems

    1. 1. CREATING A PERFORMANCE-BASED CULTURE SESSION 1: THROUGH PROPER PERFORMANCE MANAGEMENT SYSTEMS CNI’s Journey, Mistakes, and Lessons Learned Kenny Ong CNI Holdings Berhad
    2. 2. Intro: CNI <ul><li>18 years old </li></ul><ul><li>Core Business: MLM </li></ul><ul><li>Others: Contract Manufacturing, Export/Trading, eCommerce </li></ul><ul><li>Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan </li></ul><ul><li>Staff force: ± 500 </li></ul><ul><li>Distributors: 250,000 </li></ul><ul><li>Products: Consumer Goods and Services </li></ul>
    3. 3. Why we hate Performance Appraisals
    4. 4. Complaints about Performance Appraisals As an Appraisee As an Appraisor Mgmt/HR
    5. 5. 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
    6. 6. 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 $$ to differentiate </li></ul><ul><li>Prejudices </li></ul><ul><li>Results or Activities </li></ul>As an Appraiser
    7. 7. Complaints about Performance Appraisals <ul><li>Flexible or Control? </li></ul><ul><li>MBO or Character? </li></ul><ul><li>Best Practice or Fit Culture? </li></ul><ul><li>Backward or Forward? </li></ul><ul><li>Quarterly Results or Long-term? </li></ul><ul><li>No $$ 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
    8. 8. Complaints about Performance Appraisals - Summary <ul><li>Process problem </li></ul><ul><li>Form problem </li></ul><ul><li>People problem </li></ul>
    9. 9. What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor?
    10. 10. Performance Management Performance Appraisal Performance Development Performance Measurement Common terms and definitions
    11. 11. 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>
    12. 12. Summary… What went Wrong? <ul><li>Wrong Business Model – blame PM Systems. Having a good PM System cannot correct a bad business model </li></ul><ul><li>Focusing on the Process (Best Practices), instead of the Business (Customization) </li></ul><ul><li>Good strategy, Bad Implementation, No Linkage </li></ul><ul><li>No Alignment – PMS is treated a single, separate process </li></ul><ul><li>System Weaknesses - Process, Form, People </li></ul>
    13. 13. 1. Get the right Business Model first
    14. 14. Summary… What went Wrong? <ul><li>Wrong Business Model – blame PMS. Having a good PMS cannot correct a bad business model </li></ul><ul><li>Focusing on the Process (Best Practices), instead of the Business (Customization) </li></ul><ul><li>Good strategy, Bad Implementation, No Linkage </li></ul><ul><li>No Alignment – PMS is treated a single, separate process </li></ul><ul><li>System Weaknesses - Process, Form, People </li></ul>
    15. 15. <ul><li>How to fail without trying </li></ul>1. Wrong Business Model
    16. 16. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
    17. 17. Denial and Defense <ul><li>“ It’s not really good value our competitor is offering, because it doesn’t include a lot of our features.” - ABC vs Air Asia </li></ul><ul><li>“ It’s good value but not in our preferred customer market.” - ABC vs Toyota </li></ul><ul><li>“ Sure they’re hurting us, but with their unfair advantage, what can we do?” – ABC vs MILO </li></ul><ul><li>“ The rules we are playing by have always worked before” – AMEX vs VISA </li></ul>
    18. 18. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
    19. 19. Ad Hoc Tactics <ul><li>Selectively hold discounts to hold business that has started to go elsewhere </li></ul><ul><li>Introduce new promotions, terms, conditions, and offers to confuse and cloud the market </li></ul><ul><li>Beef up customer service by adding people to fix mess-ups and quicken delayed shipments </li></ul><ul><li>Delay capital investments and adjust accounting methods to portray quarterly financial results more favorably </li></ul><ul><li>Introduce “new and improved” products that are new in form, but not in substantive ways that are of consequence to purchasers </li></ul><ul><li>Introduce Balanced Scorecards and Performance Management Systems </li></ul>
    20. 20. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
    21. 21. <ul><li>“ What is the moral of the story?” </li></ul>
    22. 22. 2. Focusing on the Business Strategy and Intent
    23. 23. Summary… What went Wrong? <ul><li>Wrong Business Model – blame PMS. Having a good PMS cannot correct a bad business model </li></ul><ul><li>Focusing on the Process (Best Practices), instead of the Business (Customization) </li></ul><ul><li>Good strategy, Bad Implementation, No Linkage </li></ul><ul><li>No Alignment – PMS is treated a single, separate process </li></ul><ul><li>System Weaknesses - Process, Form, People </li></ul>
    24. 24. <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
    25. 25. 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?
    26. 26. 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?
    27. 27. <ul><li>“ What is the moral of the story?” </li></ul>
    28. 28. Example: FSS Objectives? Transactional Cost reduction, Efficiency, Agility, Fast Copy AP, General Ledger, B/S analysis, Accounting, Fixed Assets, AR, Facilities Value-added Budgeting, Reporting, Financial Analysis, Forecasting, Tax, Legal, Treasury Consistency, Analysis, Value creation, customization Systems, Standardize, Benchmarking, ERP, Streamlining, Automation, Governance Best Practices Process improvement, service innovation, secondary KPIs, internal customers Transformation Market Leadership, Competitive Differentiation, Business model, M&A, CSI Direct Business Impact, primary KPIs, external customers
    29. 29. Example: FSS Open & Hidden Objectives <ul><li>Eliminate redundancies </li></ul><ul><li>Remove no value-adding activities </li></ul><ul><li>Cost Savings </li></ul><ul><li>Focus on Core </li></ul><ul><li>Economies of Scale </li></ul><ul><li>Compete with external vendors </li></ul><ul><li>Specialized skill sets </li></ul><ul><li>Move from staff to line </li></ul><ul><li>Salary Band </li></ul><ul><li>Career Path </li></ul><ul><li>Manage external vendors </li></ul><ul><li>B.U.s appreciate services </li></ul><ul><li>Additional revenue w/o interfering core </li></ul><ul><li>Divestment/IPO </li></ul><ul><li>MSC tax break </li></ul><ul><li>Make accountable to SBU vs. HQ </li></ul><ul><li>Undertake large infra projects </li></ul>
    30. 30. Strategy <ul><li>Mamak stall </li></ul>
    31. 31. Strategy: Value 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)
    32. 32. <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>Strategy: Value Disciplines <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>
    33. 33. 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
    34. 34. 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>
    35. 35. <ul><li>Operational Excellence </li></ul><ul><ul><ul><li>Move know-how from top performing units to others </li></ul></ul></ul><ul><ul><ul><li>Benchmark against best in class </li></ul></ul></ul><ul><ul><ul><li>Ensure operations training for all employees </li></ul></ul></ul><ul><ul><ul><li>Use disciplines like TQM for continuous learning to reduce costs and improve quality </li></ul></ul></ul>Strategy: Value Disciplines
    36. 36. Strategy: Value Disciplines <ul><li>Customer Intimacy </li></ul><ul><ul><ul><li>Capture knowledge about customers </li></ul></ul></ul><ul><ul><ul><li>Understand customer needs </li></ul></ul></ul><ul><ul><ul><li>Empower front line employees </li></ul></ul></ul><ul><ul><ul><li>Ensure that everyone knows the customer </li></ul></ul></ul><ul><ul><ul><li>Make company knowledge available to customers </li></ul></ul></ul>
    37. 37. <ul><li>Product Leadership </li></ul><ul><ul><ul><li>Reduce time to market </li></ul></ul></ul><ul><ul><ul><li>Commercialize new products fast </li></ul></ul></ul><ul><ul><ul><li>Ensure that ideas flow </li></ul></ul></ul><ul><ul><ul><li>Reuse what other parts of the company have already learned </li></ul></ul></ul><ul><ul><ul><li>Ensure there are multiple sources of funding </li></ul></ul></ul>Strategy: Value Disciplines
    38. 38. Strategy: Value 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)
    39. 39. Strategy: Value 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)
    40. 40. Business Situation vs. Performance Mgmt Focus Upturn Flat Downturn Fight Complacency Sharpen Edge Keep Momentum Conquer ‘ Change’ mgmt Reduce Fat Continuity Everyone Happy Innovation Acquire Profits Build momentum Sales Cash Flow Talent Mgmt Innovation/R&D Early wins Slow Down HR Costs Top Talent focus Sales, Sales, Sales Increase attrition
    41. 41. 3. Performance Management = Business Plan Implementation Strategy and Intent
    42. 42. Summary… What went Wrong? <ul><li>Wrong Business Model – blame PMS. Having a good PMS cannot correct a bad business model </li></ul><ul><li>Focusing on the Process (Best Practices), instead of the Business (Customization) </li></ul><ul><li>Good strategy, Bad Implementation, No Linkage </li></ul><ul><li>No Alignment – PMS is treated a single, separate process </li></ul><ul><li>System Weaknesses - Process, Form, People </li></ul>
    43. 43. Focus: Corporate Alignment 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?
    44. 44. Focus: Corporate Alignment 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
    45. 45. Focus: Corporate Alignment 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
    46. 46. E3 – Department BSC Financial Perspective On Time Delivery Innovation Quality OPEX CAPEX Targets Measures Goals
    47. 47. Individual Performance 2.0 Goals and Targets for Q1 6.0 Appraiser Overall Comments/ Feedback 5.0 Rating (Merit x Weight) 4.0 Merit* 3.0 Achievements and Efforts for Q1 1.0 Key Results Area (Max 6)
    48. 48. 4. Aligning for Performance
    49. 49. Summary… What went Wrong? <ul><li>Wrong Business Model – blame PMS. Having a good PMS cannot correct a bad business model </li></ul><ul><li>Focusing on the Process (Best Practices), instead of the Business (Customization) </li></ul><ul><li>Good strategy, Bad Implementation, No Linkage </li></ul><ul><li>No Alignment – PMS is treated a single, separate process </li></ul><ul><li>System Weaknesses - Process, Form, People </li></ul>
    50. 50. Alignment: 4-Wheels Model Philosophies Corporate Objective Performance Objectives Structure Resources Leadership Person
    51. 51. Alignment: Framework <ul><li>Equal / Fair </li></ul><ul><li>Happy / Productive </li></ul><ul><li>Performance vs Potential </li></ul><ul><li>Retention / Engagement </li></ul>Philosophies
    52. 52. 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
    53. 53. Strategy: Framework <ul><li>Tools </li></ul><ul><li>Physical facilities </li></ul><ul><li>Peer support </li></ul><ul><li>Information </li></ul><ul><li>T&D Programs </li></ul><ul><li>Mentors </li></ul><ul><li>Guides </li></ul><ul><li>ICT </li></ul><ul><li>OJT </li></ul>Resources
    54. 54. 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
    55. 55. Strategy: Framework <ul><li>Recognition </li></ul><ul><li>Recruitment </li></ul><ul><li>Training </li></ul><ul><li>Profit sharing </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><ul><li>Appraiser </li></ul><ul><li>Appraisee </li></ul>Person
    56. 56. Alignment: 4-Wheels Model Philosophies Corporate Objective Performance Objectives Structure Resources Leadership Person
    57. 57. 5. Implementing the Right System
    58. 58. Summary… What went Wrong? <ul><li>Wrong Business Model – blame PMS. Having a good PMS cannot correct a bad business model </li></ul><ul><li>Focusing on the Process (Best Practices), instead of the Business (Customization) </li></ul><ul><li>Good strategy, Bad Implementation, No Linkage </li></ul><ul><li>No Alignment – PMS is treated a single, separate process </li></ul><ul><li>System Weaknesses - Process, Form, People </li></ul>
    59. 59. What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor?
    60. 60. Which system should we use? Behavior-based Knowledge/Skill based Results-based Trait-based Managing Performance = Managing Expectations What’s YOUR expectation? Activity based
    61. 61. Performance Management for Change <ul><li>Review Performance & Results </li></ul>o Grievance level o Absenteeism o Discipline issue o Poor work ethics Degree of Clarity of Job Results Vision Led Performance driven High Low High Level of Trust & Commitment (Between Subordinate & Boss) UNCLEAR <ul><li>Discuss & Agree on Account </li></ul><ul><li>Objectives & Key Measures </li></ul><ul><li>Standards for Performance </li></ul><ul><li>Provide Coaching & Counselling </li></ul>RESULTS DRIVEN <ul><li>High Level of employee empowerment </li></ul><ul><li>High Employee Performance </li></ul><ul><li>High Employee Satisfaction </li></ul><ul><li>High Employee Involvement </li></ul><ul><li>Challenging Working Environment </li></ul><ul><li>Optimum HRM Cost Structure </li></ul>
    62. 62. 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
    63. 63. MBO Target Setting - Objectives and Measures <ul><li>SMART Targets </li></ul><ul><li>Specific (definite objective and purpose to be achieved) </li></ul><ul><li>Measurable (by definite observation and a certain time one should be able to tell whether or not it is attained) </li></ul><ul><li>Achievable (Must be within reach of the employees, e.g. to meet stated deadlines, neither too high nor too low) </li></ul><ul><li>Rewarding (Rewarding means it must be satisfying to you, no one else) </li></ul><ul><li>Time phased (per quarter, per year. By end of fiscal year, by 15th of November) </li></ul>
    64. 64. MBO Target Setting - Objectives and Measures <ul><li>When is the result to be produced / performed </li></ul>Timeliness <ul><li>At what expense the result is produced / performed </li></ul>Cost <ul><li>How much / many of the results are produced or performed </li></ul>Quantity <ul><li>How well the result is produced / performed </li></ul><ul><li>Errors and Appearance </li></ul>Quality
    65. 65. 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>
    66. 66. MBO Standards Useless Poor Average Good Excellent E D C B A
    67. 67. MBO Standards Useless Poor Average Good Excellent E D Good C B A
    68. 68. MBO Standards Useless Poor Average Good Excellent Commit Suicide E Not Good D Good C Very Good B Excellent A
    69. 69. MBO Standards Commit Suicide Not Good Good Very Good Excellent Unacceptable performance E Did not fully meet planned results D Achieved Planned Results C Higher than planned results B Consistently achieved 4 for 3 quarters A
    70. 70. 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?
    71. 71. 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>
    72. 72. Competency Standards Does not meet behavioral standards. Require counseling or disciplinary actions. 1 Meets behavioral standards some of the time. Needs improvement. 2 Meets behavioral standards consistently . Is a good role model for others. 3
    73. 73. Coaching & Counseling Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?
    74. 74. Performance Setting & Review Schedule Step One - August <ul><li>Senior Management – Facilitate BOD Strategic Planning process by studying & producing appropriate papers from BOD </li></ul><ul><li>Macro economic data and observations </li></ul><ul><li>Emerging business conditions </li></ul><ul><li>CNI’s strategic considerations/needs </li></ul>Step Two - August <ul><li>BOD consideration & consensus on: </li></ul><ul><li>Macro economic information </li></ul><ul><li>Emerging business conditions </li></ul><ul><li>SWOT </li></ul><ul><li>Strategic Needs </li></ul><ul><li>Broad business goals & operating philosophy </li></ul><ul><li>Sr. Mgmt Strategic Planning Process </li></ul><ul><li>Study BOD observations and directions & review: </li></ul><ul><li>Corporate vision / mission </li></ul><ul><li>Change dimensions </li></ul><ul><li>Strategic initiatives </li></ul><ul><li>Corporate key results </li></ul>Step Three September - October Sr. Management Annual Management Plan for Board of Directors Approval Step Five - November Approved Annual Management Plan for execution Step Six - December <ul><li>Senior managers performance plans, objectives and standards </li></ul><ul><li>Performance vs. plans for top management review </li></ul>Quarterly performance review reports of the Board of Directors Step Four - November Step Seven - January <ul><li>Review annually performance plans vs. results </li></ul>
    75. 75. 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>
    76. 76. Summary… What went Wrong? <ul><li>Wrong Business Model – blame PM Systems. Having a good PM System cannot correct a bad business model </li></ul><ul><li>Focusing on the Process (Best Practices), instead of the Business (Customization) </li></ul><ul><li>Good strategy, Bad Implementation, No Linkage </li></ul><ul><li>No Alignment – PMS is treated a single, separate process </li></ul><ul><li>System Weaknesses - Process, Form, People </li></ul>
    77. 77. Thank You. soft copy of slides: www.totallyunrelatedrandomanddebatable.blogspot.com

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