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The KPI Dictionary - 4,800+ KPI Definitions Vol. 2: Industries
Select the right KPIs for your business by understanding their definition and calculation formula!
KPI Dictionary Vol. II focuses on presenting key performance indicators structured on 25 Industries:
• Agriculture
• Arts and Culture
• Construction % Capital Works
• Customs
• Education & Training
• Financial Institutions
• Government – Local
• Government – State / Federal
• Healthcare
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The main three categories under which KPIs are listed are:
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Pollution and many others;
Organizational – further clustered into sub-categories based on industries and functional areas;
Personal – addressing personal productivity and well-being, divided into sub-categories such as
Home Economics, Personal Development, Fitness and Work-life balance.
The Compendium was designed to facilitate the identification and usage of KPIs in practice. The
importance of these indicators in the decision making process turns this Compendium into an
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• Non-profit / Non-governmental
• Postal and Courier Services
• Professional Services
• Publishing
• Real Estate / Property
• Resources
• Retail
• Sport Management
• Sports
• Telecommunications / Call Center
• Transportation
• Utilities
• Knowledge and Innovation
• Management
• Marketing & Communications
• Online Presence – eCommerce
• Portfolio & Project Management
• Production & Quality Management
• Sales and Customer Service
• Supply Chain, Procurement, Distribution
TheKPIDictionary
The KPI Dictionary
TheKPIDictionary
esearch and education, providing through
KPIs. It runs five main research programs,
nisational strategy. The main program,
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oduction. Global Perspectives. Practitioners’. Perspectives. Academics’
napshot. Country Profiles. Country Legislations. Trends in Search. 2013
ams. Main Events in the field. Job Trends. Salaries. Bestselling Books.
s. Communities. Corporate Performance Management Software. Business
Management Software. | Interviews. Argentina. Australia. Brazil. Bulgaria.
. Netherlands. Nigeria. Philippines. Qatar. Saudi Arabia. Thailand. Uganda.
d Scorecard. Business Intelligence. Business. Performance Management.
d.Employee Performance.Employee Performance Management.Enterprise
nce Plan.Individual Performance Management.KeyPerformance Indicators.
ment.Performance Appraisal.Performance Criteria.Performance Evaluation.
Management. Performance Management Plan. Performance Measures.
e Review. Scorecard. Strategy Execution. Strategy Implementation Strategy
ment. | Educational Degree Institutions. Aston University. University of
University College Dublin. Erasmus University Rotterdam. ESCP Europe.
eriot-Watt University Edinburgh Business School. University of Leicester.
ce.MIP Politecnico di Milano.Monash University.NewYork University Stern
University of Liege HEC Management School. University of Pennsylvania
o. University of Sydney. European University Cyprus. Maastricht School of
alermo.Universityof Bradford-Bradford UniversitySchool of Management.
iversity of Oxford. University of Ottawa - Telfer School of Management.
roll School of Management. Davenport University. Georgetown University.
ne. The Chinese University of Hong Kong. The Hong Kong University of
hool. National University of Singapore. University of Cape Town Graduate
. | Performance Management Events. 2013. Vancouver, British Columbia,
Al Bustan Rotana - Dubai, United Arab Emirates. Sao Paulo, Brazil. San-
Kenya. Istanbul, Turkey. New Delhi, India. Barcelona, Spain. Lucca, Italy.
eorgia. Loch Lomond, Scotland, UK. London, UK. Rydges Lakeland Resort,
h, Saudi Arabia. San Francisco, California. Brussels, Belgium. | Job trends
ager. Performance Management. | Industry salaries analyzed. Automobile
rvices Charitable Organizations. Chemicals. Computer Services. Computer
nsumer Services. Education. Food. Manufacturers. Electronics. Energy &
ent. Health Care. Leisure. Media. | Book Categories. Business Performance
ement. Employee Performance Management. Enterprise Performance
ment. Operational Performance Management. Performance Management.
er Reviewed Journals. Top 15. | Portals. Top 10 Most Visited. | Communities
lligence. Corporate Performance Management. Employee Performance
ftware. Corporate Performance Management. Overall Satisfaction versus
omparisons. Business Intelligence Software. Magic Quadrant for BI 2013.
adrant for Talent Management Suites. | 203 countries reviewed. 66 with
Afghanistan.Albania.Algeria.American Samoa.Angola.Anguilla.Antarctica.
a. Australia. Austria. Azerbaijan. Bahamas. Bahrain. Bangladesh. Barbados.
n. Bolivia. Bosnia and Herzegovina. Botswana. Brazil. British Virgin Islands.
Cambodia. Cameroon. Canada. Cape Verde. Cayman Islands. Central African
olombia. Comoros. Congo. Cook Islands. Democratic Republic of the. Costa
mark. Djibouti. Dominica. Dominican Republic. Ecuador. Egypt. El Salvador.
Islands (Islas Malvinas). Fiji. Finland. France. Gabon. Gambia. Georgia.
sey. Guyana. Honduras. Hong Kong. Hungary. Iceland. India. Indonesia. Iran.
pan. Jersey. Jordan. Kazakhstan. Kenya. Kiribati. Korea, North. Korea, South.
n.Lesotho.Liberia.Libya.Lithuania.Macau.Macedonia.Madagascar.Malawi.
.Mauritania.Mauritius.Mexico.Micronesia,Federated States of Micronesia.
Morocco. Mozambique. Mozambique. Namibia. Nauru. Nepal. Netherlands.
orfolk Island. Norway. Oman. Pakistan. Palau. Panama. Papua New Guinea.
land. Portugal. Qatar. Romania. Russia. Rwanda. Saint Helena. Saint Kitts
Grenadines. Samoa. Sao Tome and Principe.
. Seychelles. Sierra Leone. Singapore. Saint
South Africa. South Africa. Spain. Sri Lanka.
d. Taiwan. Tanzania. Thailand. Timor-Leste.
nisia. Turkey. Turkmenistan. Tuvalu. Uganda.
ed Arab Emirates. United Kingdom. United
Virgin Islands.West Bank.Zambia.Zimbabwe.
PERFORMANCEMANAGEMENTIN2013
E
T
2ne
Organizations use principles, tools
and techniques of Performance
Management to ensure that the
purpose of their existence is fulfilled.
RESOURCES
Best selling books . Latest published books
and articles . Portals . Communities
SOFTWARE
Corporate Performance Management
. Business Intelligence . Employee
Performance Management
9 781478 181019
Interviews
4,800+
Key
Performance
Indicator
definitions
1
INTRODUCTION
PERFORMANCE MANAGEMENT IN 2014: GCC SPECIAL EDITION
Š 2014 The KPI Institute Ltd.
All Rights Reserved.
ID Number: TKI0141001
ISBN: 978-1512222524
An appropriate citation for
this report is:
The KPI Institute, 2014, Performance
Management in 2014: GCC Special
Edition, Melbourne, Australia
Indemnity statement
The KPI Institute has taken due care
in preparing the analysis contained
in this publication. However, noting
that some of the data used for the
analysis has been provided by third
parties, The KPI Institute gives no
warranty to the accuracy, reliability,
fitness for purpose, or otherwise of the
information. The KPI Institute shall
have no liability for errors, omissions
or inadequacies in the information
contained herein or for interpretations
thereof. The opinions expressed herein
are subject to change without notice.
Published by:
The KPI Institute
Editorial coordination
Aurel Brudan
Editorial team
Diana Zarnescu
Adelina Chelniciuc
Denisa Calin
Marcela Presecan
Design
Daniela Fajardo Garnica
Javier Rocha Robles
Headquarters
Melbourne Office
Life.lab Building
198 Harbour Esplanade, Suite 606
Melbourne Docklands, VIC 3008,
Australia
T: +61 3 9028 2223
M: +61 4 2456 8088
www.kpiinstitute.org
Executive summary
Performance Management in 2014: GCC Special Edition
was a relentless year in terms of Performance Management advancements,
and it has brought forth what we now consider to be the next age in this
domain: an age of maturity, of thoughtful decisions, of respect gained and earned, of hard
work and commitment.
This new age in Performance Management is what we celebrate through Performance
Management in 2014: GCC Special Edition. This year, the success of the previous reports
developed by The KPI Institute has highlighted the need for a more introspective look
into this specific field, on certain areas across the globe. Thus, the two special editions of
Performance Management in 2014, namely the GCC and the ASEAN ones accompany the
Global edition.
The time has come for us to migrate, from viewing the whole picture of this discipline, to
studying details found in different regions of the same picture. This special edition of the
Performance Management report series is the material representation of the discipline
across one region, comprised of six countries: United Arab Emirates, Saudi Arabia, Qatar,
Oman, Bahrain and Kuwait.
What draws interest in performance management within the Gulf Cooperation Council
region is the successful incorporation of elements specific to the area. The region is a
leader in terms of innovative business solutions, transplanting and executing plans from
paper to reality with high levels of efficiency and effectiveness. A preview of performance
management in the GCC is represented by the Adaa 2.0, which prevails as the updated
version of the first Arabian performance management software. The UAE continues
to transpose its National Vision into reality, by relentlessly improving itself based on
performance monitoring systems and Kuwait rose its petroleum industry to new peaks
grace to better business management.
PerformanceManagementin2014:GCCSpecialEditionispartoftheannualserieswiththe
same name, developed by The KPI Institute with the purpose of revealing the methodical,
non-pertaining and truthful state of performance management, as it is implemented today
by organizations, governments and nations across the globe.
The content which ensues aims to bring forth the specificity of Performance Management
within the GCC, among others. The two paths followed are defined by what sets GCC
practices apart, but also what aligns them with the rest of the world.
Extensive and exhaustive analysis has stood at the base of each section of the report,
from insights into each of the six country’s specific Performance Management system, to
the interviews given by experts in this discipline, to the complete range to educational
programs which incorporate Performance related courses within their curriculum.
Work has begun on launching additional publications as part of this series. Feedback
regarding this edition and inputs for future editions are highly appreciated by our team
and should be directed at editor@kpiinstitute.org.
Editorial coordination:
Aurel Brudan
2014
Introduction
Around the GCC
Trends
Perspectives
1
4
5
6
8
9
11
11
11
12
30
31
32
35
44
50
52
Executive Summary
Visual Summary
About the Report
Map Overview
Country Profiles
Country Legislation
GCC Insights
Trends in Search
Media Exposure
2014 Statistics
Map Overview
Introduction
GCC Perspectives
Practitioners’ Perspectives
Academics’ Perspectives
Consultants’ Perspectives
Interviews
Perspectives Around the GCC
6 30
About the Report
Trends
5
44
Education
58
77
Educational Programs
Main Events
Career
Resources
Software
80
82
81
82
83
84
84
86
91
96
102
103
104
106
GCC Overview
United Arab Emirates
Saudi Arabia
Kuwait
Qatar
Bahrain
Oman
Best-selling Books
Latest Published Books
Journal Articles
Communities
Portals
Gartner’s Magic Quadrants
The G2 Crowd Scores
58
80
104
86
Education
Resources
Software
Career
15
PERSPECTIVES
PERFORMANCE MANAGEMENT IN 2014: GCC SPECIAL EDITION
1. What does the term Performance
Management mean to you?
To me, Performance management is an
ongoingprocessbywhichanorganizationcan
identify, measure, and develop the efficiency
and effectiveness of its employees, teams and
various other work structures, in alignment
with the strategic goals of the organization.
2. What drives interest in Performance
Management?
Similar to a coin which has two sides, interest
in Performance Management also has two
aspects which are closely integrated.
The first aspect is the organizational
perspective on value creation. Organizations
believe that, in order to ensure long
term sustainability and competitiveness,
it is imperative to have an established
performance management. It has received
even more attention in the recent times
of globalization, high competition and
economic turmoil across the globe, due to
which organizations are becoming more and
more vigilant about the effective resource
utilization and retaining high performing
employees for greater revenue generation. All
Practitioners
Interviewee name: Neeti Adish Chauhan
Title: Compensation, Benefits and HRIS
Organization: New York University Abu Dhabi
Country: United Arab Emirates
of this drives the interest of organizations in
Performance Management.
The other aspect is focused around
employees’ perspective. In line with Dan
Pink’s study, employees need purpose in their
jobs. Through performance management
systems, employees are able to see their
contribution in the organization, which
makes them realize how they fit into the
bigger organization picture.
Thus, keeping a systemic approach,
the interest in Performance Management
is driven by the fulfillment of the above
two factors, both leading to enhanced
organizational performance and its longer
term sustainability. The organizations have
begun to understand that having an effective,
strategically aligned, and well executed
Performance Management system is an
inimitable competitive advantage.
3. What are your thoughts on the
relationship between Performance
Management at organizational,
departmental and individual level?
Performance Management acts like a
binding glue which brings alignment,
coherency, and synergy across levels in
an organization, both horizontally and
vertically. It ensures that every employee
contributes towards organizational success
and provides visibility to their contribution.
Cascading organizational strategy down to
departmental and individual level through
specific objectives, and KPIs, ensures all
organizational entities work in tandem
towards organizational success. It’s like
different parts and components start working
together, while reinforcing and supporting
each other, to make this large machine called
organization function successfully for the
achievement of its purpose and goals.
4. What are the 2014 key trends in
Performance Management from your
point of view?
I think one of the most significant trends
is that organizations are beginning to
realize the significance of Performance
Management. Now, they see it as an essential
element for ensuring employee motivation
and organizational success. Although some
are still contemplating implementation of
performance management system, others
have already gone ahead with doing it.
However,Ifeelthatthereisstillalongwaytogo
as, in most of the performance management
systems,organizationsarestillstrugglingwith
achieving internal and external alignment.
Additionally, predominantly it is still seen as a
measurement mechanism, rather than a tool
for continuous monitoring and enhancement
of performance. This paradigm shift, along
with ongoing engagement of leaders and
employeecommunity,isstillworkinprogress,
16
PERSPECTIVES
which would require an extensive amount of
effort and communication.
5. What aspects of Performance
Management should be explored more
through research?
I have witnessed that one of the greatest
challenges in any Performance Management
System is setting the right objectives
and KPIs. There is often a debate around
subjective versus objective KPIs. I believe
this field requires some more work
through research and industry practices.
Additionally, performance management
is still seen as being relevant for profit-
making organizations only. More research
and case studies demonstrating the ROI of
performance management for non-profit
organizations is required. This will facilitate
seeking buy-in, and being more confident
about putting organizational efforts and
resources in this direction.
Finally, the linkage between performance
and rewards should also be explored further
through research in order to develop best
practices around it, as currently some
studies confirm it is essential to have tangible
rewards, but others suggest intangible
rewards are more effective.
6. Which companies would you
recommend to be looked at, due to their
particular approach to Performance
Management and subsequent results?
I would be highly keen to look at the
performance management process for several
fastgrowing,highlyreputed,andtopemployer
ratedorganizationsacrosssectorslikeGoogle,
Apple, Microsoft, FedEx, Harvard University,
UAE Government, etc. I would be curious to
see the common themes in these different
organizations, industries and sectors. For me,
these themes would be the best practices for
the body of performance management. In
addition to this, I would also be keen to know
the ‘worst practices’ as a way to learn from the
mistakes of others and to be a step ahead by
knowing where NOT to put efforts.
Finally, I am highly interested in knowing
how The KPIs Institute, an authority in
the field of performance management,
manages this process internally, within the
organization. That would be a great learning
opportunity for performance management
practices.
7. Which are the main challenges in
today’s Performance Management
practice?
As I mentioned before, the most
fundamental challenge in today’s
performance management practice is to see
it as an essential organizational practice.
Most of the organizations do not see it as
crucial as it is in reality. They focus more
on routine operations which, to them, are
bread and butter for the organization. So, the
first obstacle to cross is to achieve focus and
commitment (of time, resources, people, etc.)
for Performance Management systems. Once
this is achieved, half the battle is won.
Other challenges include setting effective
objectives and KPIs, lack of sufficient best
practices and knowledge sharing across
organizations and sectors, and keeping the
rigor and engagement as a continuous and
never-ending process.
8. What do you think should be improved
in the use of Performance Management
tools and processes?
I think the first thing that needs to be
improved in the use of Performance
Management tools and processes is the
paradigm shift in organizational culture.
Thisrequiresenhancedfocusonperformance
management in every single pocket of the
organization through extensive leadership
support and a seasoned change leader.
Further still, the system will produce
results only if the objective and KPIs are
cascaded down from organizational strategy
and are mutually reinforcing, not conflicting.
Also, the KPIs must be well-communicated to
employees so they understand and embrace
themwell.Thiswillrequireenormousamount
of efforts around communication, not just to
the leaders and managers, but also down to
the front-line employees.
In a nutshell, after designing effective
tools and processes, the key prerequisite,
which needs to be improved for the success
of a performance management system,
is - Communication, Communication and
Communication!!! - which is open, free and
multi-directional.
9.Whatwouldyouconsiderbestpractices
in Performance Management?
As I mentioned before, I feel there is still
great amount of work needed to develop
best practices in Performance Management.
However, based on my learning and
experience, I would consider the following
as some of the existing best practices which
can be adopted universally:
Internal Alignment: Vertical alignment
with organizational strategy and
horizontal alignment with other processes,
departments, units and peers.
External Alignment: Alignment with the
changeshappeninginexternalenvironments
e.g. changes in customer preferences, labor
market, economic conditions etc.
Effective Communication: Well
communicated processes ensure
understanding and buy-in. There must
be sufficient caution applied to ensure
that the communication is transparent,
free, open and multi-directional so all
employees can freely share their thoughts,
doubts and feedback.
Dynamic Process with On-going Focus:
Once designed, the process should not be
considered as carved in stone. There must
be on-going follow-up, monitoring, feedback
seeking and flexibility to modify the KPIs and
process based on any of these valid reasons.
Thisensurestheorganizationisalwaysinsync
with its internal and external environment, as
loosing this alignment would be detrimental
for its growth and sustainability.
10. Which aspects of Performance
Management should be emphasized
during educational programs?
I think one of the key components that must
be emphasized during educational programs
is its significance for organizational success,
and alignment with other components of
the organization. Performance management
does play a pivotal role in providing inputs to
other areas like learning and development,
promotions, career development,
recruitment, rewards management etc.
It is essential for young professionals to
understand this linkage and leverage on
it. Also, I have noticed that most of the
educational programs focus on designing an
effective performance management system.
I believe this is just half the story. In order
to be successful, performance management
professionals must know the other half as
well, i.e. system mechanics comprising of
the real challenge of execution, which needs
extensive change management efforts. A
recent literature study by Payyazhi Jayashree
and Syed Jamal Hussain (2011) suggested
that 70% of Change management efforts
fail. Hence, it is essential for professionals
to understand the practical aspects of
challenges encountered, and commitment
needed to execute successful performance
management.
11. Which are the limits in order to
achieve higher levels of proficiency
in Performance Management among
practitioners?
There are several factors that act as
[…]the key prerequisite,
which needs to be improved
for the success of a
performance management
system is: Communication,
Communication and
Communication!
”
“
17
PERSPECTIVES
PERFORMANCE MANAGEMENT IN 2014: GCC SPECIAL EDITION
limitations to achieve higher levels of
proficiency in Performance Management
among practitioners.
Practitioners are provided a mandate
by the senior management to implement,
or manage a performance management
system. However, the required top-down
support is often missing. Due to their busy
schedule, leaders fail to commit sufficient
ongoing time and focus required to
achieve higher proficiency in performance
management. Unless there is perceived
leadership support through regular
communication, rewarding desired results
and behaviors etc., desired outcomes are
not achieved.
Another factor which does contribute
to insufficient success of performance
management is an out-of-sync system
whereby the KPIs and objectives are not
linked with the organization’s strategic goals
andarenotbalancedfromvariousqualitative
and quantitative perspectives. This becomes
even more challenging in current times of
instability and constant flux which requires
constant changes in the strategic direction.
Sometimes, obsolete objectives and KPIs
may also start acting counter-productively
to organizational success. Performance
management professionals should choose
to partner with employee community to
establish more relevant and realistic KPIs.
Another key challenge is the lack
of employee engagement in driving
performance management. However, this
can be achieved by fulfilling the above
mentioned factors.
12. If you are to name, in a few words,
the main aspects governing Performance
Management today, what would they be?
The main aspects governing Performance
Management these days are Strategic
Alignment and Balanced Performance.
Organizations are looking for a system
which generates positive results. When we
saypositiveresults,wemeanvaluegeneration
which is in line with the strategic and
operational goals of the organization. Thus,
havingasystemwhichdrivestheachievement
of organizational goals is the key governing
principle of Performance Management.
Secondly, in today’s highly competitive
environment, achieving only the bottom-
line results is not sufficient. Organizations
are compelled to adopt a more balanced
approach towards organizational growth.
Balanced Scorecard is a perfect example for
this, whereby organizations explore several
dimensions like revenue generation,
customer service, people development
and process improvement, for evaluating
overall success.
In a nutshell, contemporary practices
around performance management are
focused on value creation and contribution,
rather than just a measurement tool.
13. What is your opinion on the emerging
trend of measuring performance outside
working hours?
Again, as I mentioned before, to be able
to achieve maximum benefit from any
performance management system, it must
be seen from a balanced perspective.
In terms of best practice i.e. Balanced
scorecard, various factors are considered,
like setting objectives and KPIs e.g.
Customers, Revenue, People Development
and Internal Process improvement. If
we, and we should, extend the definition
of balanced performance, we do realize
that the employee’s life beyond working
hours, including physical and mental
well-being, family life, social life and
community work, does contribute to his/
her productivity and, ultimately, affects
the overall organizational performance.
This aspect of an employee’s performance
has been ignored so far. However, with the
diminishing boundaries between personal
and professional life, and the need for
retaining and developing employees with
the right attitudes and personal attributes,
this aspect does require more focus and
must be kept in consideration while
evaluating one’s performance.
Having said this, we are yet to understand
the practical implications of this. It would
require great amount of judgment and
caution to determine where to draw the
boundaries. It should be enough just to help
employees in keeping their personal goals.
Thedownsideisthatitcouldgettooinvading,
and impact their privacy. It might appear as a
burdentothem,anditmightalsobackfireand
start acting counter-productive to employees’
well-being and overall performance. Still, a
long way to go in this area!
14. Are you using any kind of personal
performance measurement tools? If yes,
please describe how this has influenced
your life.
I think I have been doing this since my
childhood. I have always had a set of
personal goals for myself, earlier as a
student, daughter and sister; and now also
as a working professional, mother and wife.
I understand that each of these areas has
been equally important to me, and I never
had any option to put one over the other.
Thus, personally, keeping a set of goals for
each area helps me set the right priority
and be successful in every area of my life.
Keepingvariousgoalsonmyradarfacilitates
regular monitoring and modification in my
approach, or action plan, if needed.
In addition to meeting my goals, it has
also helped in maintaining my mental
and physical health by reducing stress,
enhancing personal fulfillment, enriching
social life, enhancing self-esteem and
personal development. Overall, a more
accomplished and happier me!
15. Do you have any tips for successfully
managing one’s work-life balance? What
are your thoughts?
From my personal experience, the key
to manage work-life balance is, firstly, to
see them both as holding equal priority in
your life. It is extremely essential to draw
boundaries and not allow them to get
intermingled, unless sometimes, when it
becomes critical to do so. I believe mixing
them both results in not being able to focus
and commit fully to any of these.
My recommendation is to dedicate
yourself fully to every significant part of
your life. For example, when you are at
work, commit 100% to it and when you
are with your family and friends, give them
your 100% time and attention – they have
the right to get that. I believe that if you
manage your time and set priorities well,
you are able to achieve this. Someone once
said to me, “you have time for everything
which is of priority to you.” It has stayed
with me since then. Set your priorities right
and you would focus better, commit better
and contribute more.
16. Which are the recent achievements in
generatingvalueasresultofPerformance
Management put in practice in your
organization?
Performance Management has been
instrumentalinbringingclarityanddirection
to employees, through effective objective
setting, measurement, and feedback. We
haverevieweditseffectivenessinmoredetail,
and a great amount of work is being done to
strengthen the link between organizational
strategy and employee contribution.
The aim is to achieve greater harmony,
coherency, and synergy across various
organizational components. The intention is
to adopt performance management system
as a management tool which would feed into
Talent Management, Resource Allocation
and Management, Budget and Finance
management, Employee Engagement etc.,
all of which would contribute towards
long term success and sustainability of the
organization.

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Interview in Performance Management Report

  • 1.
  • 2. RELATED PUBLICATIONS FROM THE KPI INSTITUTE The KPI Dictionary - 4,800+ KPI Definitions Vol. 2: Industries Select the right KPIs for your business by understanding their definition and calculation formula! KPI Dictionary Vol. II focuses on presenting key performance indicators structured on 25 Industries: • Agriculture • Arts and Culture • Construction % Capital Works • Customs • Education & Training • Financial Institutions • Government – Local • Government – State / Federal • Healthcare • Hospitality & Tourism • Infrastructure Operations • Manufacturing • Media Access The KPI Dictionary - 4,800+ KPI Definitions Vol. 2: Industries at: http://store.kpiinstitute.org/publications.html The KPI Dictionary - 3,200+ KPI Definitions Vol. 1: Functional Areas Stay ahead of your competition by measuring the right KPIs! KPI Dictionary Vol. 1 focuses on presenting performance indicators grouped into 16 functional areas of a business, each having several subcategories. The book covers KPIs from the following areas: • Accounting • Corporate Services • Corporate Social Responsibility • Finance • Governance, Compliance and Risk • Health, Safety, Security and Environment • Human Resources • Information Technology The KPI Dictionary Vol. 1 can be used in the early stages of implementing a performance management framework, in the process of selecting and documenting KPIs, but also to improve an existing performance measurement system. Start selecting the most suitable KPIs for your business! Access the The KPI Dictionary - 3,200+ KPI Definitions Vol. 1: Functional Areas at: http://store.kpiinstitute.org/publications.html The KPI Compendium Explore the most comprehensive catalogue of documented KPIs examples! The KPI Compendium is a concise, but comprehensive work that presents over 20,000 Key Performance Indicators that have been identified as being used in practice. It provides practitioners with a powerful tool to weigh together or to compare practical examples of KPIs coming from hundreds of business areas. The main three categories under which KPIs are listed are: Global – containing sub-categories such as Administration, Quality of Life, Environment and Pollution and many others; Organizational – further clustered into sub-categories based on industries and functional areas; Personal – addressing personal productivity and well-being, divided into sub-categories such as Home Economics, Personal Development, Fitness and Work-life balance. The Compendium was designed to facilitate the identification and usage of KPIs in practice. The importance of these indicators in the decision making process turns this Compendium into an indispensable tool for both individuals and organizations. Explore the greatest guide to identifying the best KPI selection for your organization! Download The KPI Compendium at: www.store.kpiinstitute.org/the-kpi-compendium.html • Non-profit / Non-governmental • Postal and Courier Services • Professional Services • Publishing • Real Estate / Property • Resources • Retail • Sport Management • Sports • Telecommunications / Call Center • Transportation • Utilities • Knowledge and Innovation • Management • Marketing & Communications • Online Presence – eCommerce • Portfolio & Project Management • Production & Quality Management • Sales and Customer Service • Supply Chain, Procurement, Distribution TheKPIDictionary The KPI Dictionary TheKPIDictionary esearch and education, providing through KPIs. It runs five main research programs, nisational strategy. The main program, ted in the establishment of www.smartKPIs. 0,000 examples from 15 functional areas and ons in finding solutions to their KPI needs. er 7,000 examples documented at Basic in 18 dium can be search by using the sK number. KPI examples lds, with 24 The reports are deals with establishing, monitoring ed future state. e achievement of a desired level of used in human activities by ept view of aspects that can be ional activities and day-to-day ples and inform performance el. ISBN 978-1483912462 The KPI Dictionary Volume 2: Industries ors (KPIs) research and education, w to measure and learn with KPIs. al research programs dedicated to rmance Indicators. It also operates nting and cataloguing how KPIs are ll documented KPI examples, with the last 11 years, The KPI Institute needs. the KPI Dictionary. Specific KPI r. Alternatively, visitors can browse, KPIs Reports by Industry olume 2: Industries is a novelty in ry in that it shows the performance ategories. The dictionary not only alculation formula. oduction. Global Perspectives. Practitioners’. Perspectives. Academics’ napshot. Country Profiles. Country Legislations. Trends in Search. 2013 ams. Main Events in the field. Job Trends. Salaries. Bestselling Books. s. Communities. Corporate Performance Management Software. Business Management Software. | Interviews. Argentina. Australia. Brazil. Bulgaria. . Netherlands. Nigeria. Philippines. Qatar. Saudi Arabia. Thailand. Uganda. d Scorecard. Business Intelligence. Business. Performance Management. d.Employee Performance.Employee Performance Management.Enterprise nce Plan.Individual Performance Management.KeyPerformance Indicators. ment.Performance Appraisal.Performance Criteria.Performance Evaluation. Management. Performance Management Plan. Performance Measures. e Review. Scorecard. Strategy Execution. Strategy Implementation Strategy ment. | Educational Degree Institutions. Aston University. University of University College Dublin. Erasmus University Rotterdam. ESCP Europe. eriot-Watt University Edinburgh Business School. University of Leicester. ce.MIP Politecnico di Milano.Monash University.NewYork University Stern University of Liege HEC Management School. University of Pennsylvania o. University of Sydney. European University Cyprus. Maastricht School of alermo.Universityof Bradford-Bradford UniversitySchool of Management. iversity of Oxford. University of Ottawa - Telfer School of Management. roll School of Management. Davenport University. Georgetown University. ne. The Chinese University of Hong Kong. The Hong Kong University of hool. National University of Singapore. University of Cape Town Graduate . | Performance Management Events. 2013. Vancouver, British Columbia, Al Bustan Rotana - Dubai, United Arab Emirates. Sao Paulo, Brazil. San- Kenya. Istanbul, Turkey. New Delhi, India. Barcelona, Spain. Lucca, Italy. eorgia. Loch Lomond, Scotland, UK. London, UK. Rydges Lakeland Resort, h, Saudi Arabia. San Francisco, California. Brussels, Belgium. | Job trends ager. Performance Management. | Industry salaries analyzed. Automobile rvices Charitable Organizations. Chemicals. Computer Services. Computer nsumer Services. Education. Food. Manufacturers. Electronics. Energy & ent. Health Care. Leisure. Media. | Book Categories. Business Performance ement. Employee Performance Management. Enterprise Performance ment. Operational Performance Management. Performance Management. er Reviewed Journals. Top 15. | Portals. Top 10 Most Visited. | Communities lligence. Corporate Performance Management. Employee Performance ftware. Corporate Performance Management. Overall Satisfaction versus omparisons. Business Intelligence Software. Magic Quadrant for BI 2013. adrant for Talent Management Suites. | 203 countries reviewed. 66 with Afghanistan.Albania.Algeria.American Samoa.Angola.Anguilla.Antarctica. a. Australia. Austria. Azerbaijan. Bahamas. Bahrain. Bangladesh. Barbados. n. Bolivia. Bosnia and Herzegovina. Botswana. Brazil. British Virgin Islands. Cambodia. Cameroon. Canada. Cape Verde. Cayman Islands. Central African olombia. Comoros. Congo. Cook Islands. Democratic Republic of the. Costa mark. Djibouti. Dominica. Dominican Republic. Ecuador. Egypt. El Salvador. Islands (Islas Malvinas). Fiji. Finland. France. Gabon. Gambia. Georgia. sey. Guyana. Honduras. Hong Kong. Hungary. Iceland. India. Indonesia. Iran. pan. Jersey. Jordan. Kazakhstan. Kenya. Kiribati. Korea, North. Korea, South. n.Lesotho.Liberia.Libya.Lithuania.Macau.Macedonia.Madagascar.Malawi. .Mauritania.Mauritius.Mexico.Micronesia,Federated States of Micronesia. Morocco. Mozambique. Mozambique. Namibia. Nauru. Nepal. Netherlands. orfolk Island. Norway. Oman. Pakistan. Palau. Panama. Papua New Guinea. land. Portugal. Qatar. Romania. Russia. Rwanda. Saint Helena. Saint Kitts Grenadines. Samoa. Sao Tome and Principe. . Seychelles. Sierra Leone. Singapore. Saint South Africa. South Africa. Spain. Sri Lanka. d. Taiwan. Tanzania. Thailand. Timor-Leste. nisia. Turkey. Turkmenistan. Tuvalu. Uganda. ed Arab Emirates. United Kingdom. United Virgin Islands.West Bank.Zambia.Zimbabwe. PERFORMANCEMANAGEMENTIN2013 E T 2ne Organizations use principles, tools and techniques of Performance Management to ensure that the purpose of their existence is fulfilled. RESOURCES Best selling books . Latest published books and articles . Portals . Communities SOFTWARE Corporate Performance Management . Business Intelligence . Employee Performance Management 9 781478 181019 Interviews 4,800+ Key Performance Indicator definitions
  • 3. 1 INTRODUCTION PERFORMANCE MANAGEMENT IN 2014: GCC SPECIAL EDITION Š 2014 The KPI Institute Ltd. All Rights Reserved. ID Number: TKI0141001 ISBN: 978-1512222524 An appropriate citation for this report is: The KPI Institute, 2014, Performance Management in 2014: GCC Special Edition, Melbourne, Australia Indemnity statement The KPI Institute has taken due care in preparing the analysis contained in this publication. However, noting that some of the data used for the analysis has been provided by third parties, The KPI Institute gives no warranty to the accuracy, reliability, fitness for purpose, or otherwise of the information. The KPI Institute shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice. Published by: The KPI Institute Editorial coordination Aurel Brudan Editorial team Diana Zarnescu Adelina Chelniciuc Denisa Calin Marcela Presecan Design Daniela Fajardo Garnica Javier Rocha Robles Headquarters Melbourne Office Life.lab Building 198 Harbour Esplanade, Suite 606 Melbourne Docklands, VIC 3008, Australia T: +61 3 9028 2223 M: +61 4 2456 8088 www.kpiinstitute.org Executive summary Performance Management in 2014: GCC Special Edition was a relentless year in terms of Performance Management advancements, and it has brought forth what we now consider to be the next age in this domain: an age of maturity, of thoughtful decisions, of respect gained and earned, of hard work and commitment. This new age in Performance Management is what we celebrate through Performance Management in 2014: GCC Special Edition. This year, the success of the previous reports developed by The KPI Institute has highlighted the need for a more introspective look into this specific field, on certain areas across the globe. Thus, the two special editions of Performance Management in 2014, namely the GCC and the ASEAN ones accompany the Global edition. The time has come for us to migrate, from viewing the whole picture of this discipline, to studying details found in different regions of the same picture. This special edition of the Performance Management report series is the material representation of the discipline across one region, comprised of six countries: United Arab Emirates, Saudi Arabia, Qatar, Oman, Bahrain and Kuwait. What draws interest in performance management within the Gulf Cooperation Council region is the successful incorporation of elements specific to the area. The region is a leader in terms of innovative business solutions, transplanting and executing plans from paper to reality with high levels of efficiency and effectiveness. A preview of performance management in the GCC is represented by the Adaa 2.0, which prevails as the updated version of the first Arabian performance management software. The UAE continues to transpose its National Vision into reality, by relentlessly improving itself based on performance monitoring systems and Kuwait rose its petroleum industry to new peaks grace to better business management. PerformanceManagementin2014:GCCSpecialEditionispartoftheannualserieswiththe same name, developed by The KPI Institute with the purpose of revealing the methodical, non-pertaining and truthful state of performance management, as it is implemented today by organizations, governments and nations across the globe. The content which ensues aims to bring forth the specificity of Performance Management within the GCC, among others. The two paths followed are defined by what sets GCC practices apart, but also what aligns them with the rest of the world. Extensive and exhaustive analysis has stood at the base of each section of the report, from insights into each of the six country’s specific Performance Management system, to the interviews given by experts in this discipline, to the complete range to educational programs which incorporate Performance related courses within their curriculum. Work has begun on launching additional publications as part of this series. Feedback regarding this edition and inputs for future editions are highly appreciated by our team and should be directed at editor@kpiinstitute.org. Editorial coordination: Aurel Brudan 2014
  • 4. Introduction Around the GCC Trends Perspectives 1 4 5 6 8 9 11 11 11 12 30 31 32 35 44 50 52 Executive Summary Visual Summary About the Report Map Overview Country Profiles Country Legislation GCC Insights Trends in Search Media Exposure 2014 Statistics Map Overview Introduction GCC Perspectives Practitioners’ Perspectives Academics’ Perspectives Consultants’ Perspectives Interviews Perspectives Around the GCC 6 30 About the Report Trends 5 44
  • 5. Education 58 77 Educational Programs Main Events Career Resources Software 80 82 81 82 83 84 84 86 91 96 102 103 104 106 GCC Overview United Arab Emirates Saudi Arabia Kuwait Qatar Bahrain Oman Best-selling Books Latest Published Books Journal Articles Communities Portals Gartner’s Magic Quadrants The G2 Crowd Scores 58 80 104 86 Education Resources Software Career
  • 6. 15 PERSPECTIVES PERFORMANCE MANAGEMENT IN 2014: GCC SPECIAL EDITION 1. What does the term Performance Management mean to you? To me, Performance management is an ongoingprocessbywhichanorganizationcan identify, measure, and develop the efficiency and effectiveness of its employees, teams and various other work structures, in alignment with the strategic goals of the organization. 2. What drives interest in Performance Management? Similar to a coin which has two sides, interest in Performance Management also has two aspects which are closely integrated. The first aspect is the organizational perspective on value creation. Organizations believe that, in order to ensure long term sustainability and competitiveness, it is imperative to have an established performance management. It has received even more attention in the recent times of globalization, high competition and economic turmoil across the globe, due to which organizations are becoming more and more vigilant about the effective resource utilization and retaining high performing employees for greater revenue generation. All Practitioners Interviewee name: Neeti Adish Chauhan Title: Compensation, Benefits and HRIS Organization: New York University Abu Dhabi Country: United Arab Emirates of this drives the interest of organizations in Performance Management. The other aspect is focused around employees’ perspective. In line with Dan Pink’s study, employees need purpose in their jobs. Through performance management systems, employees are able to see their contribution in the organization, which makes them realize how they fit into the bigger organization picture. Thus, keeping a systemic approach, the interest in Performance Management is driven by the fulfillment of the above two factors, both leading to enhanced organizational performance and its longer term sustainability. The organizations have begun to understand that having an effective, strategically aligned, and well executed Performance Management system is an inimitable competitive advantage. 3. What are your thoughts on the relationship between Performance Management at organizational, departmental and individual level? Performance Management acts like a binding glue which brings alignment, coherency, and synergy across levels in an organization, both horizontally and vertically. It ensures that every employee contributes towards organizational success and provides visibility to their contribution. Cascading organizational strategy down to departmental and individual level through specific objectives, and KPIs, ensures all organizational entities work in tandem towards organizational success. It’s like different parts and components start working together, while reinforcing and supporting each other, to make this large machine called organization function successfully for the achievement of its purpose and goals. 4. What are the 2014 key trends in Performance Management from your point of view? I think one of the most significant trends is that organizations are beginning to realize the significance of Performance Management. Now, they see it as an essential element for ensuring employee motivation and organizational success. Although some are still contemplating implementation of performance management system, others have already gone ahead with doing it. However,Ifeelthatthereisstillalongwaytogo as, in most of the performance management systems,organizationsarestillstrugglingwith achieving internal and external alignment. Additionally, predominantly it is still seen as a measurement mechanism, rather than a tool for continuous monitoring and enhancement of performance. This paradigm shift, along with ongoing engagement of leaders and employeecommunity,isstillworkinprogress,
  • 7. 16 PERSPECTIVES which would require an extensive amount of effort and communication. 5. What aspects of Performance Management should be explored more through research? I have witnessed that one of the greatest challenges in any Performance Management System is setting the right objectives and KPIs. There is often a debate around subjective versus objective KPIs. I believe this field requires some more work through research and industry practices. Additionally, performance management is still seen as being relevant for profit- making organizations only. More research and case studies demonstrating the ROI of performance management for non-profit organizations is required. This will facilitate seeking buy-in, and being more confident about putting organizational efforts and resources in this direction. Finally, the linkage between performance and rewards should also be explored further through research in order to develop best practices around it, as currently some studies confirm it is essential to have tangible rewards, but others suggest intangible rewards are more effective. 6. Which companies would you recommend to be looked at, due to their particular approach to Performance Management and subsequent results? I would be highly keen to look at the performance management process for several fastgrowing,highlyreputed,andtopemployer ratedorganizationsacrosssectorslikeGoogle, Apple, Microsoft, FedEx, Harvard University, UAE Government, etc. I would be curious to see the common themes in these different organizations, industries and sectors. For me, these themes would be the best practices for the body of performance management. In addition to this, I would also be keen to know the ‘worst practices’ as a way to learn from the mistakes of others and to be a step ahead by knowing where NOT to put efforts. Finally, I am highly interested in knowing how The KPIs Institute, an authority in the field of performance management, manages this process internally, within the organization. That would be a great learning opportunity for performance management practices. 7. Which are the main challenges in today’s Performance Management practice? As I mentioned before, the most fundamental challenge in today’s performance management practice is to see it as an essential organizational practice. Most of the organizations do not see it as crucial as it is in reality. They focus more on routine operations which, to them, are bread and butter for the organization. So, the first obstacle to cross is to achieve focus and commitment (of time, resources, people, etc.) for Performance Management systems. Once this is achieved, half the battle is won. Other challenges include setting effective objectives and KPIs, lack of sufficient best practices and knowledge sharing across organizations and sectors, and keeping the rigor and engagement as a continuous and never-ending process. 8. What do you think should be improved in the use of Performance Management tools and processes? I think the first thing that needs to be improved in the use of Performance Management tools and processes is the paradigm shift in organizational culture. Thisrequiresenhancedfocusonperformance management in every single pocket of the organization through extensive leadership support and a seasoned change leader. Further still, the system will produce results only if the objective and KPIs are cascaded down from organizational strategy and are mutually reinforcing, not conflicting. Also, the KPIs must be well-communicated to employees so they understand and embrace themwell.Thiswillrequireenormousamount of efforts around communication, not just to the leaders and managers, but also down to the front-line employees. In a nutshell, after designing effective tools and processes, the key prerequisite, which needs to be improved for the success of a performance management system, is - Communication, Communication and Communication!!! - which is open, free and multi-directional. 9.Whatwouldyouconsiderbestpractices in Performance Management? As I mentioned before, I feel there is still great amount of work needed to develop best practices in Performance Management. However, based on my learning and experience, I would consider the following as some of the existing best practices which can be adopted universally: Internal Alignment: Vertical alignment with organizational strategy and horizontal alignment with other processes, departments, units and peers. External Alignment: Alignment with the changeshappeninginexternalenvironments e.g. changes in customer preferences, labor market, economic conditions etc. Effective Communication: Well communicated processes ensure understanding and buy-in. There must be sufficient caution applied to ensure that the communication is transparent, free, open and multi-directional so all employees can freely share their thoughts, doubts and feedback. Dynamic Process with On-going Focus: Once designed, the process should not be considered as carved in stone. There must be on-going follow-up, monitoring, feedback seeking and flexibility to modify the KPIs and process based on any of these valid reasons. Thisensurestheorganizationisalwaysinsync with its internal and external environment, as loosing this alignment would be detrimental for its growth and sustainability. 10. Which aspects of Performance Management should be emphasized during educational programs? I think one of the key components that must be emphasized during educational programs is its significance for organizational success, and alignment with other components of the organization. Performance management does play a pivotal role in providing inputs to other areas like learning and development, promotions, career development, recruitment, rewards management etc. It is essential for young professionals to understand this linkage and leverage on it. Also, I have noticed that most of the educational programs focus on designing an effective performance management system. I believe this is just half the story. In order to be successful, performance management professionals must know the other half as well, i.e. system mechanics comprising of the real challenge of execution, which needs extensive change management efforts. A recent literature study by Payyazhi Jayashree and Syed Jamal Hussain (2011) suggested that 70% of Change management efforts fail. Hence, it is essential for professionals to understand the practical aspects of challenges encountered, and commitment needed to execute successful performance management. 11. Which are the limits in order to achieve higher levels of proficiency in Performance Management among practitioners? There are several factors that act as […]the key prerequisite, which needs to be improved for the success of a performance management system is: Communication, Communication and Communication! ” “
  • 8. 17 PERSPECTIVES PERFORMANCE MANAGEMENT IN 2014: GCC SPECIAL EDITION limitations to achieve higher levels of proficiency in Performance Management among practitioners. Practitioners are provided a mandate by the senior management to implement, or manage a performance management system. However, the required top-down support is often missing. Due to their busy schedule, leaders fail to commit sufficient ongoing time and focus required to achieve higher proficiency in performance management. Unless there is perceived leadership support through regular communication, rewarding desired results and behaviors etc., desired outcomes are not achieved. Another factor which does contribute to insufficient success of performance management is an out-of-sync system whereby the KPIs and objectives are not linked with the organization’s strategic goals andarenotbalancedfromvariousqualitative and quantitative perspectives. This becomes even more challenging in current times of instability and constant flux which requires constant changes in the strategic direction. Sometimes, obsolete objectives and KPIs may also start acting counter-productively to organizational success. Performance management professionals should choose to partner with employee community to establish more relevant and realistic KPIs. Another key challenge is the lack of employee engagement in driving performance management. However, this can be achieved by fulfilling the above mentioned factors. 12. If you are to name, in a few words, the main aspects governing Performance Management today, what would they be? The main aspects governing Performance Management these days are Strategic Alignment and Balanced Performance. Organizations are looking for a system which generates positive results. When we saypositiveresults,wemeanvaluegeneration which is in line with the strategic and operational goals of the organization. Thus, havingasystemwhichdrivestheachievement of organizational goals is the key governing principle of Performance Management. Secondly, in today’s highly competitive environment, achieving only the bottom- line results is not sufficient. Organizations are compelled to adopt a more balanced approach towards organizational growth. Balanced Scorecard is a perfect example for this, whereby organizations explore several dimensions like revenue generation, customer service, people development and process improvement, for evaluating overall success. In a nutshell, contemporary practices around performance management are focused on value creation and contribution, rather than just a measurement tool. 13. What is your opinion on the emerging trend of measuring performance outside working hours? Again, as I mentioned before, to be able to achieve maximum benefit from any performance management system, it must be seen from a balanced perspective. In terms of best practice i.e. Balanced scorecard, various factors are considered, like setting objectives and KPIs e.g. Customers, Revenue, People Development and Internal Process improvement. If we, and we should, extend the definition of balanced performance, we do realize that the employee’s life beyond working hours, including physical and mental well-being, family life, social life and community work, does contribute to his/ her productivity and, ultimately, affects the overall organizational performance. This aspect of an employee’s performance has been ignored so far. However, with the diminishing boundaries between personal and professional life, and the need for retaining and developing employees with the right attitudes and personal attributes, this aspect does require more focus and must be kept in consideration while evaluating one’s performance. Having said this, we are yet to understand the practical implications of this. It would require great amount of judgment and caution to determine where to draw the boundaries. It should be enough just to help employees in keeping their personal goals. Thedownsideisthatitcouldgettooinvading, and impact their privacy. It might appear as a burdentothem,anditmightalsobackfireand start acting counter-productive to employees’ well-being and overall performance. Still, a long way to go in this area! 14. Are you using any kind of personal performance measurement tools? If yes, please describe how this has influenced your life. I think I have been doing this since my childhood. I have always had a set of personal goals for myself, earlier as a student, daughter and sister; and now also as a working professional, mother and wife. I understand that each of these areas has been equally important to me, and I never had any option to put one over the other. Thus, personally, keeping a set of goals for each area helps me set the right priority and be successful in every area of my life. Keepingvariousgoalsonmyradarfacilitates regular monitoring and modification in my approach, or action plan, if needed. In addition to meeting my goals, it has also helped in maintaining my mental and physical health by reducing stress, enhancing personal fulfillment, enriching social life, enhancing self-esteem and personal development. Overall, a more accomplished and happier me! 15. Do you have any tips for successfully managing one’s work-life balance? What are your thoughts? From my personal experience, the key to manage work-life balance is, firstly, to see them both as holding equal priority in your life. It is extremely essential to draw boundaries and not allow them to get intermingled, unless sometimes, when it becomes critical to do so. I believe mixing them both results in not being able to focus and commit fully to any of these. My recommendation is to dedicate yourself fully to every significant part of your life. For example, when you are at work, commit 100% to it and when you are with your family and friends, give them your 100% time and attention – they have the right to get that. I believe that if you manage your time and set priorities well, you are able to achieve this. Someone once said to me, “you have time for everything which is of priority to you.” It has stayed with me since then. Set your priorities right and you would focus better, commit better and contribute more. 16. Which are the recent achievements in generatingvalueasresultofPerformance Management put in practice in your organization? Performance Management has been instrumentalinbringingclarityanddirection to employees, through effective objective setting, measurement, and feedback. We haverevieweditseffectivenessinmoredetail, and a great amount of work is being done to strengthen the link between organizational strategy and employee contribution. The aim is to achieve greater harmony, coherency, and synergy across various organizational components. The intention is to adopt performance management system as a management tool which would feed into Talent Management, Resource Allocation and Management, Budget and Finance management, Employee Engagement etc., all of which would contribute towards long term success and sustainability of the organization.