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CREATING A PERFORMANCE-BASED CULTURE SESSION 2: THROUGH PROPER PERFORMANCE MANAGEMENT OF PEOPLE CNI’s Journey, Mistakes, and Lessons Learned Kenny Ong CNI Holdings Berhad
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Workforce Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object]
Managing Performance through People: Support and Philosophy
Alignment: 4-Wheels Model Philosophies Corporate  Objective Performance Objectives Structure Resources Leadership Person
Alignment: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Philosophies
How to really manage Performance
[object Object]
Most Common Desperate Performance Improvement methods  ,[object Object],[object Object]
Mager and Pipe ,[object Object]
Managing Performance through Incentives
Incentive Problems ,[object Object],[object Object],[object Object]
What to Pay? ,[object Object],[object Object],[object Object],[object Object]
Performance and Incentives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What’s the Difference?  ,[object Object],[object Object],[object Object]
Compa Ratio Table ,[object Object],[object Object],[object Object],[object Object],[object Object],Grade E2 Min RM2,000 MID RM2,500 Max RM3,000
Compa Ratio Table 1 2 3 4 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
Compa Ratio Table 1 2 5% 3 4 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
Compa Ratio Table 0 1 2 2 3 4 5% 7 9 3 7 4 9 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
Compa Ratio Table 0 0 0 2 4 1 0 1 2 4 6 2 3 4 5% 7 9 3 3 5 7 9 12 4 7 8 9 12 15 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
Dangers of Direct Incentives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Employee Distinctions through Relative Performance
Employee Distinction? 1 2 3 4 5 1 2 3 4 5 6 2 3 4 5% 6 7 3 4 5 6 7 8 4 5 6 7 8 9 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
Employee Distinction? 0 0 0 0 0 1 0 0 1 1 1 2 3 4 5% 7 9 3 3 5 9 12 18 4 5 8 12 15 20 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
Employee Distinction 0% 1.0 0 1 ≤  1.3 0.9% 1.8 0.5 2 > 1.3 – 2.3 2.1% 2.8 0.75 3 > 2.3 – 3.3 4.2% 3.5 1.2 4 > 3.3 – 4.1 8.4% 4.2 2 5 > 4.1 Example Increment Example Rating Multiply Factor Rating Average Rating
Employee Distinction Group I (Talent Pool) ,[object Object],2 3 4 5 PERFORMANCE 2 3 4 5 POTENTIAL
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 ,[object Object]
Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff
Managing Team performance – collaboration, innovation
Managing TEAMS ,[object Object],[object Object],[object Object],[object Object],[object Object]
TEAM levers C.O.R.E. ÷ W.L.
Possible TEAM-type KPIs and incentives ,[object Object],[object Object],Functional ,[object Object],[object Object],Network/ Partnerships ,[object Object],[object Object],Project/ Time-based ,[object Object],[object Object],Process Possible Incentive Type Team Type
Team Incentive Models ,[object Object],Performance Incentive =  Fixed Quantum +  (Balance Sum In Bonus Pool ÷ Headcount)
Team Incentive Models ,[object Object],Performance Incentive =  Personal Target Achievement  +  (Personal Target Achievement x Team Performance Multiplier)
Team Incentive Models ,[object Object],Performance Incentive =  Team Ratio x Personal Target Multiplier
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Possible Innovation levers
Innovation Levers? ,[object Object],[object Object],[object Object],[object Object],[object Object],Source: The Innovation Challenge, “ Thriving on Chaos” , by Tom Peters; Alfred A. Knopf Inc.
Managing People performance: A Summary
More Problems…. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Before I forget… ,[object Object],[object Object]
Alignment: 4-Wheels Model Philosophies Corporate  Objective Performance Objectives Structure Resources Leadership Person
Thank You. soft copy of slides:  www.totallyunrelatedrandomanddebatable.blogspot.com

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