The proposal outlines the implementation of a Performance Management System (PMS) aimed at enhancing organizational efficiency through defined corporate objectives, performance appraisals, and strategic mapping. It details the benefits of PMS, including improved productivity, employee development, and customer satisfaction, while also providing a Gantt chart for implementation activities and a fee structure for services. ABM Consult, led by Dr. Arriffin Mansor, offers consultancy to guide organizations in training and effectively utilizing the PMS.

1. Installing the performance
management system in MOCCIS
Arriffin Mansor
©2009
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2. Contents of this proposal
• What is performance management system
and its benefits.
• The PMS development steps and its Gantt
Chart.
• What you get with the PMS we install
– Corporate planning
– Performance planning
– Performance appraisal
2

3. Contents - continue
• What other benefits
– Individual performance card
– Compensation based on performance
– Improvement in Training Management
• Who are we?
• Our unique selling proposition
• Our proposed fee
3

4. What is PMS
• A system of participative management where
efficiency measures are installed at all
management levels and for all processes in
the organisation with the ultimate objective of
getting maximum results.
4

5. Benefits of the PMS
1 Clearly defined corporate growth objectives
2 Coordinated, cascaded and aligned corporate strategies
3 Identifying Critical Success factors / Key Result Areas
4 Performance measurement and reward culture
5 Competency gap analysis and training needs
6 Justifying and prioritising interventions
7 Improve commitment and leadership of all.
8 Improve customers service and satisfaction
9 Finally, improve productivity and profitability
© Arriffin Mansor 2009
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6. PROJECT GANT CHART - PMS
ACTITIVITIES / MONTHS 6 months period
1 Evaluate past performance and market opportunities
2 Define corporate goals 20 mandays
3 Identify Critical success factors
4 performance tools and role plays for managers - seminar
5 Set departmental goals and establish key result areas 20 mandays
6 performance tools and role plays for supervisors -seminar
7 Cascade the metrics to lower units
8 Writing performance action plans
9 Calculating the key performance indicator ratios 20 mandays
10 integrating the strategies towards corporate goals
11 Individual Scorecard
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7. BASIC TOOLS IN PMS
1 Identifying Corporate and other stakeholders
2 Defining and setting SMART goals*
3 Performance improvement metrics
4 Corporate Strategic Maps and action metrics
5 Critical Gap Analysis
6 Rewards and incentive plans
7 Performance value
8 Key Result AREas*
9 Competency gap analysis
10 Key Performance Indicators or scorecard measures*
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8. BASIC TOOLS IN PMS - continue
11 Individual Scorecard
12 Performance Gap Analysis*
13 Input output Analysis
14 Manpower planning
15 Setting performance targets and benchmarkings*
16 Performance improvement cycle
17 Corporate Scorecard
18 Departmental Strategic maps and action plans
19 Production gap analysis (variance analysis)
20 Du Pont ROE chart as KPIs
21 Recognising performance*
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9. Who are we?
• ABM consult is a firm headed by Dr Arriffin
Mansor
• He has associate consultants who are involved
in other consultancy projects plus those
teaching at various universities and Excel
College of which he is the chairman.
• Dr Arriffin lectures on performance
management at public and in house programs.
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10. Our unique selling proposition
• Our performance analysis is in simple graphic
input output analysis.
• 90% of our proposed KPIs are drawn from the
financial system of the company.
• Our Performance Improvement matrix shall
be used at all levels in the organisation.
• The Du Pont return on equity template shall
be used to diagnose for SWOT.
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11. Our unique selling proposition
• We use financial information as a basis of our
key performance indicators.
• We use excel based templates which could be
applied by all staff.
• Our input output graphic analysis enable true
performance analysis.
• Our system installation information is
uploaded in the internet for easy on line
reference.
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12. What is corporate planning?
• Setting clear corporate objectives and goals with
the metric network linking the 4 key departments
• Agreeing on the strategic maps linking the 4 BSC
perspectives
• Setting the basic strategies in terms of Du Pont
Return on equity format where marketing,
working and fixed capital strategies are
highlighted.
• Resource planning and sourcing
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13. What is performance planning
• Setting objective and goals for all working unit
• Identifying key result areas
• Identifying key performance indicators
• Identifying the right stakeholders.
• Establishing performance targets
• Implement the performance action plans
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14. What is Performance Appraisal
• Monitoring and recording performance
• Evaluate and analyse performance gaps
• Key Performance Indicators as performance
measures
• Identify true performance and justify
intervention costs
• Recognise and reward performance
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15. Strategy Map: Capture a Cause Effect
Relationship from the Bottom Up
Stakeholder
More rapid and
Improved Returns on
accessible services
Investments
Internal Process
Economic Model Reduce Re-Activities thru Establish Web Based
Process ABC/M Self Services
& Growth
Learning
Expand Global Leadership Knowledge
Facility Reach Development Management
Investments
Facilities and Fixed IT Infrastructure
Assets Human Capital
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16. Key Benefits of Strategy Maps
• Articulates how the organization creates value for its constituents and
legitimizing authority
• Displays key priorities and relationships between outcomes (the "what") and
performance enablers or drivers (the "how")
• Provides a clear view of "how I fit in" for sub-organizations, teams, and
individuals
• "Cascading the scorecard throughout the organization, and clearly mapping
the various units and functions back to the organization or agency-wide map
is critical to leveraging and ensuring alignment"
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17. Extend the Map into Measurements,
Targets, key result areas and Initiatives
Strategy Map
Stakeholder
Detailed statement How success in The level of Key action
Faster Service Access of what is critical to achieving the performance or programs
successfully strategy will be rate of required to
achieving the measured and improvement achieve
strategy tracked needed objectives
Self Service
Applications
Internal Process
Objective
Measure Target Initiative
Lean Processes Description
Eliminate waste, Number of Reworks 2 per setup per Lean / Six Sigma
reworks, and other month each
Process and Value errors in our Outlet Office
Map Analysis processes
Web Enable
L&G
Technologies
Investments
Invest in IT

18. Alignment of Scorecard Components
Make sure the components of your scorecard fit together. We want to create a tight
model for driving execution of your strategy.
Goal / Key Result Measurement Target Initiative
Objective Areas
Profit Margin Key
Asset Turnover Performance
Increase
Indicators = ROE = 40%
Equity Multiplier leverage
Return on
Maximizes
Equity
Return on
Equity
Outsourcing
to reduce
costs
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19. Examples of Measurements by Perspective
Stakeholder / Customer Internal Processes
• Current customer satisfaction level • Number of unscheduled maintenance calls
• Improvement in customer satisfaction • Production time lost because of maintenance
• Customer retention rate problems
• Frequency of customer contact by customer • Percentage of equipment maintained on schedule
service • Average number of monthly unscheduled outages
• Average time to resolve a customer inquiry • Mean time between failures
• Number of customer complaints
Learning and Growth Investments
• Percentage employee absenteeism • % of facility assets fully funded for upgrading
• Hours of absenteeism • % of IT infrastructure investments approved
• Job posting response rate • # of new hire positions authorized for filling
• Personnel turnover rate • % of required contracts awarded and in place
• Ratio of acceptances to offers
• Time to fill vacancy
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20. Types of Measurements
Measure Type Definition Example
Intermediate outcomes that predicts or
Leading Employee turnover rate
drive bottom-line performance results
Bottom-line performance results resulting
Lagging Employee satisfaction rating
from actions taken
Amount of Investments, assets, equipment,
Input Number of cashiers
labor hours, or budget dollars used
Units of a product or service rendered - a
Output Number of Value Meal orders fulfilled
measure of yield
Resulting effect (benefit) of the use or
Outcome Customer satisfaction rating
application of an output
Objective / Empirical indicators of performance Wait time
Quantitative
Subjective / Perceptions and evaluations of major Customer complaints received as a % of
Qualitative customers and stakeholders total customers served
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21. The Measurement Pyramid
Goal
Strategic/GPRA Goals
End-Outcomes Outcome
Performance
Measures
Longer-Term Intermediate Program
Outcomes
Program Performance Measures
Shorter-Term Program Components
Intermediate
Outcomes Program Component Performance Measures
& Outputs
Outputs Activities
& Inputs
Activity Performance Measures
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22. Some Tools for Determining
What to Measure
Program Logic Model
Process/ Intermediate End
Inputs System Output Outcomes Outcome
Process Flow
Causal Analysis
Prototype
Product
Desired
Outcome Acceptable Not Acceptable
Results
Back to
To Market Of
Laboratory
Testing
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23. Corporate Goals
Sa le s
$ 1,689,429,000
Cost of Goods
Sold + Ex tra Ta x e s Ne t Profits
$ 384,153,000 Afte r Ta x e s
$ 358,612,000 Ne t Profit
Ope ra ting Ma rgin
Income Ex pe nse s 21.23%
Sta te me nt $ 731,891,000 NI/SALES
Sa le s Re turn on
Inte re st $ 1,689,429,000 Tota l Asse ts
Ex pe nse (ROA)
$ 13,641,000 26.17%
NPM X TAT
Ta x e s
$ 201,132,000 Sa le s
$ 1,689,429,000 Tota l Asse t
Turnove r
1.23 Re turn on
Curre nt SALES/TA Equity (ROE)
Asse ts 33.96%
$ 709,360,000 Tota l Asse ts ROA X FLM
$ 1,370,157,000
Ne t Fix e d
Asse ts & Othe r Stockholde rs'
$ 660,797,000 Equity
Ba la nce $ 1,055,920,000 Fina ncia l
She e t Curre nt Le ve ra ge
Lia bilitie s Multiplie r (FLM)
$ 265,661,000 Tota l 1.30
Lia bilitie s Tota l Lia bilitie s TA/EQUITY
Long Te rm $ 314,237,000 & Stockholde rs'
De bt Equity = Tota l
$ 3,270,000 Asse ts
Stockholde rs $ 1,370,157,000
Othe r Equity
Lia bilitie s $ 1,055,920,000
$ 45,306,000
Du pont ROE Chart
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24. How to Set Targets
• Past performance trends per historical data.
• Performance levels of similar organizational units at a
comparable level that facilitates benchmarking.
• Best practices across the agency, the public sector or the
private sector. Must be at a pre-existing high level of
performance before you use this approach.
• For newly launched services, may have to establish a
baseline per a prototype test and extend out from this
point forward.
• For major strategic shifts, may have to set directly per the
plan itself without regard for hard data.
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25. Checklist for Setting Targets
• Targets match up with measurements, one to one.
• Targets require improving current levels of performance.
• Targets are a stretch, but achievable: they may require
improvements to existing processes.
• Targets are quantifiable so that the target communicates if
the expected performance was met.
• Long-term targets are established before short-term targets.
• Financial/Budget related targets are established before non-
financial targets.
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26. Our services include
• Providing training services for all managment
and staff on the proposed PMS.
• Helping the CEO in preparing the performance
corporate plans.
• Coach and guide managers and staff to
prepare their own performance cards.
• Coach and guide managers and staff in
performance evaluation.
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27. PERFORMANCE MEETINGS
(Boss subordinate meetings and relationship)
1. Begin with goal setting with performance action plans
2. Progress with performance monitoring and
coaching
3. End with performance analysis, evaluation and
appraisal
4. Recognition and reinforcement with rewards and
promotion
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28. FORMS USED IN PMS
(assist practitioners in the application of the PMS)
1 Writing objectives on smart - stackholders
2 Key Result Areas - how to identify the right
3 Key Performance Indicators - chose the right KPIs
4 The 4 phases of the value chain
5 Performance Targets / standards / Past achievement
6 Gap Analysis - to separate the impact of volume and efficiency
7 Performance Planning meeting
8 Performance Review meeting
9 Strategic Map and Action Metrics for supervisors and managers.
10 Improvement metrix
11 TNA through cause effect ralationship of the 4 perspective
12 Marketing matrix
13 Production matrix to be filled by the respective departmental
14 Finance Matrix staff
15 HR Matrix
16 Individual scorecard - Managers
17 Individual scorecard - Supervisors
18 Individual scorecard - Staff
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© Arriffin Mansor 2009

29. PERFORMANCE ANALYSIS
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30. 24 hours communication
with our consultants
• Our handphone is open 24 hours
• Our gmail is available 24 hours
• Written group discussions through
yahoogroups on line real time
• Written groups discussions where video and
photographs are displayed through ning
groups.
• Our blogspot internet reference materials
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31. Our Reading materials available
at blogspot
1 The importance of performance measures
2 The corporate performance structures
3 Performance perspectives metrics
4 Cascading the metrics
5 Input output analysis
6 The key performance indicators
7 The key departmental metrics
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32. PMS basic tools
• Writing clear performance objectives and
goals
• Identifying key result areas
• Setting challenging performance targets
• Choosing the right key performance indicators
• Evaluate performance precisely for
recognition and improvement.
• Participation and teamwork is the culture
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33. Performance Management is a System
where ..........
• Performance planning are more quantified
and proper measures put in place.
• Participation and commitment are the
attitude and culture of the organisation.
• Key attention areas are identified and
forcused.
• Performance reviews and appraisal are
objective.
• Performance improvement is continuous.
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34. PERFORMANCE MANAGEMENT
• Setting Clear
Measures • Performance gap
Objectives and goals analysis
• CHoosing suitable
• Identifying key result key performance • Recognising and
Areas indicators measuring
performance
• Setting performance
targets
Planning Evaluate
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35. The PMS has 5 key activities
corporate performance and
strategy review
Workshop on basic performance tools
Cascading goals and Strategic Mapping
Performance planning for each staff
Performance Appraisal for each staff
35

36. Critical Gaps
New Corporate
Evaluation
Directions
Smart Goals
Action Plans
and Targets
Performance
Improvement
Targets and © Arriffin Mansor 012-2786282 Key Result
benchmarkings Areas
Strategic
Etablish KPI
Mapping

37. Performance Improvement
Business
objectives Critical
Success
Change
Factors
 design strategic
programs
Performance Key Result
Actuals Areas
Strategic Performance
initiatives Indicators
Performance
standards
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38. Benefits of PMS
• Management by objective
• Continous improvement attitude and culture
• Best practices, problem solving and
innovative solutions
• Leadership development with learning,
training, coaching and mentoring.
• Objective appraisal and fair reward
management.
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39. The staff shall learn the following:-
• Able to understand and write his own
performance card
• Able to appraise own before discussing with
the boss
• Able to participate in setting own goals and
objectives
• Participate in searching for the right key result
areas and solutions.
• Linking his performance with that of his boss
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40. Our proposed fee structure
– Seminar Fees RM3,500 x 2 days x 1 time =
RM7,000
– Corporate Planning 10 days x RM2,500 =
RM25,000
– Performance planning 10 days x RM2,500 =
RM25,000
– Performance Appraisal 10 days x RM2,500 =
RM25,000
– TOTAL= RM82,000
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41. Thank you for giving us the
opportunity to serve your
organisation.
Dr Arriffin could be contactable
at 012-2786282
arriffin@gmail.com
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