performance_management_in_2014-_asean_edition

PERSPECTIVES
AROUND THE ASEAN
Performance related legislation
in the ASEAN. Special country
insights
14 interviews. 6 countries.
Practitioners. Academics.
Consultants
KEYWORD TRENDS
EDUCATION
CAREER
Degrees. Subjects. Main events
Career trends by countries and
functional areas
Statistics for the most popular
performance related keywords in
Google search
RESOURCES
SOFTWARE
Best-selling books. Latest published
books. Academic articles. Portals.
Communities
Gartner’s Magic Quadrants.
The G2 Crowd Scores
“Performance management is a
way for an organization to look
into causal relationships and
address the identified gaps.”
“A manager’s challenge is to
balance the softer, yet powerful
drivers of performance with the
harder, tangible aspects of it.”

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ne. The Chinese University of Hong Kong. The Hong Kong University of
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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
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rvices Charitable Organizations. Chemicals. Computer Services. Computer
nsumer Services. Education. Food. Manufacturers. Electronics. Energy &
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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.
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Morocco. Mozambique. Mozambique. Namibia. Nauru. Nepal. Netherlands.
orfolk Island. Norway. Oman. Pakistan. Palau. Panama. Papua New Guinea.
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nisia. Turkey. Turkmenistan. Tuvalu. Uganda.
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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: ASEAN SPECIAL EDITION
© 2014 The KPI Institute Ltd.
All Rights Reserved.
ID Number: TKI0141002
ISBN: 978-1514204634
An appropriate citation for
this report is:
The KPI Institute, 2014, Performance
Management in 2014: ASEAN 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
Adelina Chelniciuc
Marcela Presecan
Diana Zarnescu
Design
Daniela Fajardo Garnica
Javier Rocha Robles
SE Asia Division
Kuala Lumpur Office
WISMA UOA 2,Level 11, Unit 10
21 Jalan Pinang, Kuala lumpur
50450 Malaysia
T: +60 327 421357 M:
+601133032135
Executive summary
Performance Management in 2014: ASEAN Special Edition
2014wasayearofcontinuousadvancementswhenitcomestoPerformance
Management and it has brought forth what we now consider to be the
next age in this domain, an age defined by maturity, mindful decisions, hard work and
commitment.
This new age in Performance Management is what we celebrate through Performance
Management in 2014: ASEAN 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 ASEAN and the GCC 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 ten countries: Brunei, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
2014 can be considered a year of turmoil for performance management communities
of practice across Asia and the Pacific. The multicultural environment, as well as the
consequential differences in government structures and policies have made performance
management practice in the area a barometer for progress. An increase in technology
investment has been noticeable within the Asian and the Pacific market, together with
a corresponding demand for improved reporting on performance. The expansion of
liberalized, decentralized markets has elevated the need for results-oriented public
sector management frameworks. Planning, budgeting, implementing, monitoring and
evaluating have become crucial functions of the public sector performance management
across Asia and the Pacific, while businesses in the private sector are starting to claim their
sovereignty as engines of emerging economies. Also, with the liberalization of markets
across Asia and the Pacific, the management of increasing volumes of data has become a
high priority in 2014.
Performance Management in 2014: ASEAN Special Edition is part of the annual series
with the same name, and it was 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 South-East Asian organizations and governments.
The content which ensues aims to bring forth the specificity of Performance
Management within the ASEAN, among others. The two paths followed are defined by
what sets ASEAN practices apart, but also what aligns them with the rest of the world.
The content of the Performance Management in 2014: ASEAN Special Edition has
been developed in such a manner as to provide opinions and extensive analyses through
interviews, as well as specific information through sections such as Education, Media
exposure, Resources and Software.
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 ASEAN
Trends
Perspectives
1
4
5
6
8
9
11
11
11
12
34
35
36
43
56
62
64
Executive Summary
Visual Summary
About the Report
Visual Summary
Country Profiles
Country Legislation
ASEAN Insights
Trends in Search
Media Exposure
2014 Statistics
Map Overview
Introduction
ASEAN Perspectives
Practitioners’ Perspectives
Academics’ Perspectives
Consultants’ Perspectives
Interviews
Perspectives Around the ASEAN
6 34
About the Report
Trends
5
56

Education
70
86
Educational Programs
Main Events
Career
Resources
Software
88
90
88
91
92
93
94
95
98
103
108
114
115
116
118
Introduction
Thailand
Malaysia
Singapore
Indonesia
Vietnam
Brunei Darussalam
Philippines
Best-selling Books
Latest Published Books
Journal Articles
Communities
Portals
Gartner’s Magic Quadrants
The G2 Crowd Scores
70
88
116
98
Education
Resources
Software
Career

4
INTRODUCTION
Visual Summary
Number of performance-related events in 2014;
Number of institutions offering performance-related degrees;
Number of institutions offering Performance Management subjects.

5
INTRODUCTION
to obtain graphic data regarding key word
search operations performed on Google’s
search engine.
This section is a graphic representation of the
media exposure rate of selected Performance
Management-related keywords over a period
of time spanning from 2000 to 2014.
This section encompasses an extensive list
of prestigious universities from all ASEAN
countries. The selection was made based
on either degrees or courses offered on
performance management-related majors.
The data collected was extracted only from
the universities’ official websites.
This section presents a comprehensive
list of events which took place in the
ASEAN countries and had performance
management as a central theme. These
events are either conferences, both
international and national, trainings and
seminars. The list has been split into two
tables, one comprising events which took
place in 2014, and the other one – 2015
events.
This section of the report is dedicated to
books which have either Performance
Management, or a closely-related subject,
as the main theme. The chapter is split into
two distinct sections: one centers on best-
selling books while the other focuses on
the latest published books.
Articles relevant to performance
management were selected and compiled
The Performance Management in 2014:
ASEAN Special Edition report is the result of
a qualitative research study which reflects
the annual changes or novelties related to
performance management. The study was
conducted by The KPI Institute over a period
of 3 months (January, 2015 – March, 2015)
and both primary and secondary sources
were used in compiling the report.
This section was built based on the
insights shared by academics, practitioners
and consultants in the Performance
Management field, all activating in the
ASEAN’s member countries. Their opinions
have shed light on some performance-
related areas and have enriched the
already existing knowledge and trends
related to others. Their combined expertise
represents a stepping stone for the future of
Performance Management practices.
This section provides detailed analyses
of the state of Performance Management
within all 10 nations pertaining to the
ASEAN region. The first section, Country
Profiles and Legislations provides a detailed
analysis of the Performance Management
systems and their degree of implementation
at governmental level in each of ASEAN’s
10 member countries. The second
subsection gathers insights from individual
organizations and institutions, with a special
focus on how these have implemented a
Performance Management system, their
outcomes and other additional measures
taken to improve overall performance.
Continuing the tradition of past years’
Performance Management reports, in 2014
thesametool,GoogleTrends,wasemployed
into a list of 88 items, all relevant to
the field of performance management.
The search was conducted using Google
Scholar and sciencedirect.com. Key
words used during the selection process
included: performance management,
organizational performance, performance
measurement, operational performance,
employee performance, as well as personal
performance.
The Portals section was born with the
intention of providing necessary guidelines
for online orientation in the Performance
Management field. Thus, it comprises two
tables which provide a ranking of the ten
most accessed Performance Management
related websites.
This section was compiled in order to
offer examples of online communities that
one can use to grasp the most valuable
Performance Management insights.
The section provides an introspective view
into the main management job trends and
salary levels practiced within the member
states of the Association of Southeast
Nations. The salary data provided in this
section is the result of an extensive, in depth
research analysis adjusted to the specific
content requirements of this report.
The results of two studies conducted by
different entities are presented in this
section, in order to offer a balanced view
upon software solutions rakings and to
assist organizations in making the best
decisions regarding their providers.
About the Report
Perspectives
Media Exposure
Education Portals
Career
Events Communities
Software
Books
Articles
Legislation
Trends in Search

6
PERSPECTIVES
Map Overview
Aiza Azreen Ahmad
Bank Rakyat Malaysia
Malaysia
Lauren Borja
BBV, Philippines Air Force
Philippines

7
PERSPECTIVES
Men Chanbona Serafin D. Talisayon
Ta Bao Luu Jayan Warrier
International Development
Enterprise
Cambodia
Center for Conscious Living
Foundation, Inc.
Philippines
FPT Information System Corporation
Vietnam
Positive Performance Consulting Pte
Singapore
Ma. Margaritha B. Romero Sabar Cahyono
Chryzl Torres Sicat Tran Tuan Anh
Linda Puth Mehran Nejati Ajibisheh
Yan Yohanes Abdullah Noorliza Hj Zakuan
MGS Corporation
Philippines
Bizniscontact Advisory Services
Indonesia
Local Government Unit of the City of
San Fernando Pampanga Philippines
Philippines
Talentnet Corporation
Vietnam
Save the Children International
Cambodia
Graduate School of Business, Universiti
Sains Malaysia (USM)
Malaysia
CNOOC SES LTD.
Indonesia
Education Performance and Delivery
Unit, Ministry of Education
Malaysia

8
o discipline can visibly advance
without the expertise of those who
grasp not only the theoretical notions of a
domain,butalsotheirpracticalapplicability.
For Performance Management, a complex
discipline which is still in full development,
triangulating the opinions of practitioners,
academics and consultants in the field
is precious for attaining higher levels of
proficiency.
Following these editorial rules, 14
interviews, provided by ASEAN based
practitioners, academics and consultants
provide the insights needed into the field
of Performance Management.
The set of questions was compiled in a
manner that encompasses areas with a high
degree of interest within the discipline: an
overview of the domain, as it is seen by
the expert, the educational and practical
perspectives, the challenges that appear
within the discipline and performance
management at the personal level. The
final interview item encloses a specific
question for each professional category.
What does the term Performance
Management mean to you?
What drives interest in Performance
Management?
What are your thoughts on the
relationship between Performance
Managementatorganizational,departmental
and individual level?
What are the 2014 key trends in
Performance Management from your
point of view?
What aspects of Performance
Management should be explored
more through research?
Which companies would you
recommend to be looked at, due to
their particular approach to Performance
Management and subsequent results?
Which are the main challenges in
today’s Performance Management
practice?
What do you think should be
improved in the use of Performance
Management tools and processes?
Whatwouldyouconsiderbestpractices
in Performance Management?
Which aspects of Performance
Managementshouldbeemphasized
during educational programs?
Which are the limits in order
to achieve higher levels of
proficiency in Performance Management
among practitioners?
If you are to name, in a few words,
the main aspects governing
Performance Management today, what
would they be?
What is your opinion on the
emerging trend of measuring
performance outside working hours?
Are you using any kind of personal
performance measurement tools? If
yes, please describe how this has influenced
your life.
Do you have any tips for
successfully managing one’s
work-life balance? What are your thoughts?
PERSPECTIVES
N 1
2
3
4
5
6
7
8
9
1
1
1
1
1
1
0
1
2
3
4
5
14 interviewees, from 6 countries within the ASEAN answered the same 15 questions, plus a specific
one, addressing a precise issue from their field of activity.
Academics: We are developing
a database of Performance
Management subjects and degrees. Which
are the subjects/degrees you have come
across and at which university? (i.e. subjects
or degrees such as the Masters in Managing
Organizational Performance)
Practitioners: Which are the
recent achievements in generating
value as result of Performance Management put
inpracticeinyourorganization?
Consultants: As a consultant,
what are the most common
issues that your consumers have signaled,
related to Performance Management?
16b
16a
16c

9PERFORMANCE MANAGEMENT IN 2014: ASEAN SPECIAL EDITION
Which are the main challenges in
practice?
7
What does the term Performance
What drives interest in Performance
Management?
What are your thoughts on the
Management at organizational,
departmental and individual level?
The high interest for Performance
Management is driven, in the experts’
opinions, by the results it promises, once it
has been implemented. The performance-
related practices, regardless of their level
of implementation, are undertaken with
certain expected results in mind.
However, beyond these primary results,
interviewees all agree that the system
offers clarity, balance, alignment and a
much needed transparency. Additionally,
Performance Management has the benefits
of changing behaviors from reactive to
proactive, as people know why they are
assignedresponsibilities,andhowtheirwork
is reflected throughout the organization.
Performance Management, in the
interviewed experts’ opinion, is a framework
which entails the entire organization, down
to every single employee. It is an instrument
which ensures harmony and alignment
throughout the entire range of processes
performed within the organization. It is a
body of concepts, tools and instruments
which, taken as a whole, materialize into a
success-oriented behavior.
Furthermore, performance management
isalsoseen,byincreasinglymoreexperts,asa
disciplinewhichsurpassestheorganizational
boundaries and enters our personal lives,
providing people with the means to achieve
balance and improve performance in any
aspect they may consider suitable for their
personal performance.
What are the 2014 key trends in
Performance Management from
your point of view?
The most preeminent aspect of applying a
Performance Management system across all
levels of an organization is the alignment of
goals, KPIs and targets. This translates into a
clear framework where no task contradicts
another and the whole organization strives
to achieve common results. The interviewed
experts agree that Performance Management
is where top management goals meet
employees’ expected results.
What aspects of Performance
Management should be explored
more through research?
2014 was a year which, on the one hand,
led to the reinforcement of previously
Reoccurring aspects of Performance
Management, which all ASEAN experts
agree upon and which need improvement
are related to the thorough implementation
of such systems, from the top levels of
organizations down to employees, the
introduction of change management, risk
management and behavior performance
within the established framework, the
refinement of KPIs to better fit current goals
and strategies set by organizations and, last
but not least, how to effectively incorporate
a Performance Management framework
within small businesses.
The interviewed professionals mentioned
both companies with an international
renown and organizations with a national
or regional recognition. Alongside these,
some public sector entities have also
captured the experts’ attention due to their
performance-related practices and results.
International organizations:
• General Electric Company;
• Samsung Corp;
• Santander Bank;
• BNP Paribas;
• Facebook;
• Apple;
• Alibaba;
• DHL Express;
• Forbes Company;
• Lenovo Group.
Regional ASEAN organizations:
• Cargill Philippines;
ASEAN PERSPECTIVES
1
2
3
4
5
Which companies would you
recommend to be looked at,
due to their particular approach
to Performance Management and
subsequent results?
6
• MIESCOR (MERALCO Industrial
Engineering Services Corporation);
• Lopez Group of Companies;
• Mandiri Bank;
• Abott Vietnam;
• CSC Vietnam.
Governmental entities:
• Abu Dhabi Government/General
Secretariat of the Executive Council;
• City Council of Barcelona
•Christchurch City Council, New Zealand;
• South Korea’s Health Insurance Review
and Assessment Service.
Among the challenges listed by the
interviewed experts, there is a consistency
in how a Performance Management
system is implemented and used: more as
a monitoring tool than as a performance
enhancer. For the same reasons, the system
is often implemented only halfway through,
thus neglecting some aspects that may
be important to the organization and its
employees’ well-being. Another challenge
reflects the difficulty of surpassing a status
quo situation. This intervenes during change
processes, when employees become reticent
to adopting new behaviors, as well as after
the implementation, when the current
proceduresneedtobeupdatedandimproved
in order to better suit current needs.
What do you think should be
improved in the use of Performance
Management tools and processes?
Interviewees believe that, as far as
Performance Management goes, the tools
could benefit from greater simplification and
standardization, while the processes need to
become more transparent. Another aspect
which needs to be improved is organizational
communication. If this process in not
performed properly, on a re-occurring basis,
from management to employees and vice
versa, the reactions that follow will damage
the organization. Firstly, management is
seen as keeping a hidden agenda while
employees lack the necessary buy-in as they
overlook the overall objectives. Secondly, the
organization might not be working towards
achieving common goals.
8
implemented Performance Management
systems or practices and, on the other hand,
it was an year of innovation, when relatively
new strategies, such as Risk Management
and its afferent Key Risk Indicators (KRIs)
have been incorporated within existent
systems, so as to cope with demands and
perils coming not only from today’s business
environment, but also from the political,
social and geographical contexts.
Another shift that is beginning to
make itself increasingly more present is
the deviation from financial KPIs, as the
indicators with the highest leverage, to
more people-oriented KPIs, as interviewees
explain. Examples here refer to KPIs that
measure customer satisfaction, for example,
or turnover rate.
What would you consider
best practices in Performance
Management?
When it comes to selecting best practices
in Performance Management, all the
interviewed ASEAN-based experts agree
9

10
PERSPECTIVES
Educational programs, in the experts’
opinion, should focus more on real
performance issues within organizations
and provide a wider range of solutions.
Basically, educational programs need to
improve their practical elements and focus
less on theory. Additionally, students of
performance management need to better
envision the entire performance cycle and
better grasp the specific KPIs and smart
goals, together with the processes that sit
behindthem.Furthermore,emphasisshould
be put on the benefits of implementing a
Performance Management system and not
just on the processes that it is comprised of.
Which aspects of Performance
Management should be
emphasized during educational
programs?
10
Which are the limits in order
to achieve higher levels of
proficiencyinPerformanceManagement
among practitioners?
Do you have any tips for
successfully managing one’s
work-life balance? What are your
thoughts?
One clear limitation, expressed by several
interviewees, points to an interrupted
communication thread between top
management and employees. The immediate
effect is that employees fail to envision
the benefits of managing performance,
fail to pursuit common goals and to see
their contribution to the organization. The
worst case scenario is that the Performance
Management system becomes just another
tools to control employees and monitor
their activities, with no clear benefits for the
organization as a whole. Such situations
intervene when there is a lack of skills,
training and motivation, either at managerial
level or at employee level. Other aspects
which limit the achievement of higher
proficiency levels are the incomplete or
superficial implementation of a Performance
1
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5
If you are to name, in a few
words, the main aspects
governing Performance Management
today, what would they be?
What is your opinion on the
emerging trend of measuring
performance outside working hours?
Areyouusinganykindofpersonal
performance measurement tools?
If yes, please describe how this has
influenced your life.
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2
3
4
Management System, setting too many
KPIs that do not reflect true performance
and a constant resistance to change and
improvement.
Academics: We are
developing a database of
Performance Management subjects and
degrees. Which are the subjects/degrees
you have come across and at which
university?(i.e.subjectsordegreessuchas
the Masters in Managing Organizational
Performance).
Practitioners: Which are
the recent achievements in
generatingvalueasresultofPerformance
Management put in practice in your
organization?
Consultants: As a
consultant, what are the
mostcommonissuesthatyourconsumers
have signaled, related to Performance
Management?
The university subjects and degrees that the
interviewed academic has come across are:
Strategy and Performance Management,
pertaining to the University of Georgetown,
the Master of Commerce (Performance
Management), within the University of
Adelaide, the Regis University’s MBA in
Organizational Performance Management
and, lastly, the Master in Performance
Management and Workplace Learning,
offered by the Leicester University.
Achievements enlisted by practitioners
reflect the level of implementation of a
Performance Management system within
their respective companies. Basically, this
translates into improving performance based
on the Balanced Scorecard results, raising
awareness regarding the importance of such
a system and the processes it encompasses,
reforming the system so that it reflects
the needs and goals of the company and
improving overall processes.
Mainly, when talking about governing
aspects, experts agree that Performance
Management is driven by the tools and
processes it encompasses: the Balanced
Scorecard, Dashboards, KPIs and the entire
performancereviewandcompensationcircle.
Interviewed experts consider that, if you
are a goal-oriented person and you seek to
improve yourself, then this behavior extends
even outside working hours. Furthermore,
the technology available today, such as
smartphone apps, widgets or even the
traditional daily log, have made possible the
measurement of performance 24/7. The
biggest advantage to measuring performance
outside working hours is that you can choose,
foryourself,whatareastofocuson.Therefore,
one can measure either an entire range of
items, or a couple of items, depending on his/
her commitment to this process.
Whenconsideringtoolsformeasuringpersonal
performance, most interviewees admitted
they rely on the available technology, which
certainly makes monitoring and measuring
aspects such as steps taken per day, sleep
cycles, emotional state but also goals
accomplished, targets achieved etc. mush
easier and accessible. The most widespread
tool employed is the smartphone, followed by
daily logs, and other additional tools. What
ultimately matters, when measuring personal
performance, is improvement. In this sense,
whichever efficient tool is suitable, whether it
isasmartphone app,agadgetorasimplediary.
What the majority of experts recommend,
regarding this matter, is to have a clear
delimitation between work and personal life.
This state can be easily achieved when each
person has his/her priorities set. Another
piece of advice is to focus during working-
hours so that all tasks for the respective day
are successfully completed. Consequently, by
Interviewed consultants enlisted
several issues that they have frequently
encountered, most of them linked to an
incomplete or superficial implementation
of the Performance Management System.
Consequently, objectives and goals were
not aligned across all organizational levels,
KPIs did not reflect reality, performance
appraisals or review meetings were not
held, employees were reluctant to change
and, lastly, motivation levels were very low
throughout the entire company.
1
1
1
6
6
6
a
b
c
that only by applying and using tools such
as the Balanced Scorecard, an organization
can reach a higher state of performance
and improve its processes to a considerable
degree. The enlisted best practices, as
suggested by interviewees, are:
• Having a maximum number of 25 KPIs
which reflect the organizational strategy;
• Implementing the Balanced Scorecard so
that it provides clarity, focus on objectives
and alignment across the organization;
• Transparent communication between top
management and employees;
• Developing strategic plans together with
results-based performance management;
• Using templates;
• Providing and ensuring continuous
feedback, not only during performance
review meetings;
• Implementing a results-oriented set of
measures that satisfy the business, the
customers and the employees;
• Promoting innovative ideas and initiatives.
leaving work on time, one has more leisure
time available. However, a realistic approach
tomanagingthework-lifebalanceis,ultimately,
the most efficient solution. For example, it
might be difficult to avoid working over hours
whenonelacksmoney,isinatopmanagement
positionorisworkingatatime-limitedproject.
Although there is no standard strategy for
effectively gaining a proper work-life balance,
eachpersonshouldbeawareoftheirowngoals
and prioritize work and leisure accordingly.

11
PERSPECTIVES
Interviewed practitioners focus more on
individual aspects related to Performance
Management, those items which are
encompassed within their area of
expertise, mainly. Although practitioners
can envision the entire system and the
gears that are put into motion, they can
Practitioners’ Perspectives
truly assess those areas where they activate
in, such as Human Resources, Knowledge
Management, Risk Management etc. As
practitioners, interviewees can truly reveal
the benefits of a Performance Management
System, as many have witnessed not only
an increase in profits, but a mentality
improvement, as the system enables
communication, transparency, it puts
more focus on what really matters and it
enhances continuous improvement both
knowledge-wise and process-wise. After
drawing the line, improvement is good no
matter the context.
The interviewed academic’s view on
Performance Management is quality-
centered, as he sees the entire process being
driven by the need to improve processes and
toempoweremployees.Theimplementation
process needs to be thoroughly completed,
as only a holistic integration – from
organizational, to departmental, to
individual – can ensure that the best
Academics’ Perspectives
possible results are generated. The enlisted
2014 trends in Performance Management
were: social Performance Management,
ethical Performance Management and
Performance Management across the value
chain. Educational programs should draw
more focus on these trends, and on the 360
degreesapproachtothediscipline.However,
there are several drawbacks, such as the
lack of a universal compensation system
and people’s resistance to change. When
speaking about personal performance,
the interviewed academic praised the
personalized Balanced Scorecard which he
has been successfully using for more than
6 years, with notable progress registered
towards achieving his objectives.
Consultants interviewed for the
Performance Management in 2014:
ASEAN Special Edition report emphasized,
overall, the need for a complete and
thorough implementation of Performance
Management, even if the beneficiary
entity is a company, an institution or an
entire state. However, at the same time,
Consultants’ Perspectives
consultants stress out the need to maintain
such a system as simple as possible. This
is the most suitable manner to remain
realistic regarding goals, it is simpler to
spot issues and to apply corrections where
needed and it is easier to get the buy-in
of employees and stakeholders and to
increase overall performance. On the other
side of the spectrum, a sophisticated system
might pull down performance objectives
as employees and management lose the
overview of what is truly important for the
company and might encourage confusion
and reticence towards performance-related
processes, such as measurement and
activity monitoring.

12
The following interviews are alphabetically arranged with regards to the interviewees’ last names within each of the three categories:
Practitioners , Academics and Consultants.
INTERVIEWS
Practitioners
Interviewee name: Aiza Azreen Ahmad
Title: Chief Strategy and Transformation Officer
Organization: Bank Rakyat Malaysia
Country: Malaysia
1. What does the term Performance
Performance Management has different
definitions to different people, doesn’t it?
However, I normally define Performance
Management as a way to control behavior,
and also a way to inspire your behavior,
once you set goals, and the visions and the
aspirations of what you want to be, as an
organization. Performance management
ensures that the behavior, the deliverable,
is appropriately managed towards a
set direction. That’s my definition of
performance management. It actually
transcends human resources aspects,
and heads to personal skills sets and
competencies.
2. What do you think drives interest in
the area of performance management?
Well, there are few things that drive interest
in performance management. To be very
honest with you, at individual level it is
really about the rewards, about having clear
expectations, job clarity, and what needs to
be done in order to get to the point where
the person wants to be rewarded. It could
be a reward consisting of money, but it can
also be a reward in terms of job extensions,
schooling, or something that aligns to the
person’s career.
But, at the organizational level, what
drives interest in performance management
is to make sure that you have a balance
between strategic achievements that is what
will actually take the organization to the next
level, or operational achievements that make
sure that everything is in place to get you to
the next level. I’m giving you information
from two perspectives: what drives
interest for the individual, as well as for the
organization. Another thing that drives
interest into performance management is
really about aligning the whole company,
from the top level management, all the
way down to the clerical stuff. Therefore,
performance management kind of links all
these things.
3.WhatareyourthoughtsonPerformance
Management at departmental level?
The most critical part of making sure that
performance management is implemented
well, effectively, and efficiently is happening
at departmental level. Sometimes, at
departmental level, people struggle to have
clear job scopes, job clarity, because times
are changing. Rakyat Malaysia Bank is not
the most profitable bank in Malaysia, so,
to be a profitable bank in Malaysia, a lot of
unplanned activities are required of you.
Thereforesometimes,atdepartmentallevel,
you have expectations to deliver certain
work, of a certain quality, and quantity, but
there also are other things that you have to
do before you deliver that.
4. What do you think about KPI trends
in 2014, from the point of Performance
Management?
We can intertwine financial and
operational KPIs to offer a perspective
about KPI trends in 2014. We suffered the
economic downturn sometime in 2000.
Therefore, what happened, and what
is still happening, is that performance
management is divided into scorecards and
all the KPIs it place emphasize on financial
aspects. Sometimes, the financial side has
more than 5 to 20% usage. And, for an
organization to just focus on the financials,
and not actually look at other KPIs. These
are customers, people, operations, the
three elements, or inputs that increase
your financials.
So, I see that, in 2014, the KPI trends that
are still prevailing from the last couple of
years are financial KPIs. They are still being
given a special treatment and they are still
being seen as the most important. This takes
20% from the scorecard and I don’t think
that’s the way we should be doing things
because we compromise other things.
In a nutshell, in 2014, the financial KPIs
are still the prevailing trend. And I think
this has to do with the economic downturn
from which we are still recovering.
5. Is there also a shift towards the non-
financial KPIs within scorecards, or are
the financial KPIs still predominant?
I can see that financial KPIs are dominant
but, what I have observed as well, is that
there seems to be more appreciation for
customer related KPIs. Organizations are
starting to realize that the biggest input to
their revenue is really related to customers:
how much of the customer’s disposable
income, by this I mean the gross salary, or
the net salary after tax, can you actually get
into your bank account, based on financial
KPIs and such. I can see now that there is
a revival in terms of customer KPIs. I still
feel that the trends in 2014 are not really
emphasizing the people sector that much,
meaning that the people-related KPIs are
Number of Training Days, for example,
which I think is a little bit operational. I
would certainly like to see from 2014 and
on, KPIs like talent management, succession
planning, how you move up the ladder,
and others similar to these, expanded. In
terms of operational KPIs, I still feel that
these more inclined towards quantity rather
than quality. They quantify a number of
effects per week, so these operational KPIs
are still quantity-dependent. What about
KPIs like number of resolutions? There a
discontinuity in the KPIs sorted for 2014.
They still focus on quantity when they have
to focus on quality.

13
PERSPECTIVES
You cannot do the same
thing over and over again,
using the same formula. Times
have changed. The world has
changed. Adapt!
”
“
employees. Or even what a plantation
industry can learn from Microsoft.
8. Which are the challenges in today’s
performance management practice?
At my level, the challenges are about the
stakeholders. When we run an organization
we have stakeholders, and the challenge
is related to the expectations of the
stakeholders, and whether these match
those of the company or of the bank. But we
understand that stakeholders sometimes
have their aspirations, their visions, they
want to drive the business. So the challenge
related to performance management, at
least, in my area, although I have seen
this tendency almost everywhere I had
worked, is connecting the dots: connecting
the expectations of the stakeholders to
what we can actually do as the managers
of a company. That’s the challenge. I think
that, over the years, The KPI Institute has
done a good job since people now know
what KPIs are, and they actually talk about
having KPIs to make sure that they get the
rewards. Previously, everyone asked for
rewards because they simply wanted them,
or because they thought they deserved
them. But now, rewards are given according
to their KPIs. That’s the question they ask,
and it’s great! Things have changed over the
last 10 year, which is fantastic!
9. What improvements would you bring
tothetoolsandprocessesofPerformance
Management?
When it comes to setting a KPI, we use the
smart, specific, measurable action, that is
also realistic and time bound. We do this
time and time again. But, what I think
I need to see among practitioners, me
included, is that when you set KPIs, you
shouldn’t focus only on the statements, as
Number of Customers Acquired per Month
to represent the value of something. Let’s
say you use this same KPI for three years.
By the end of this period, the system beats
you, because you, in turn, think that you
can beat the system just by having the
number of acquisitions translated into
KPIs. However, I see proficiency in terms of
quality. So, when you measure the Number
of Customers per Month, which offer you a
6. What aspects of Performance
Management should be explored more
through research, in your opinion?
I think, it’s a situation of how to eat an
elephant bit by bit. If The KPI Institute
would look into the people side of the KPIs,
it would be very good. This can be done
by researching, publishing and helping an
organization to really manage the people,
especially organizations in the commodities,
industrial goods, banking and finances
industries.WhatImeanishowdoyouextract
the talent, the competency? So, I think, in
terms of research, if we could have a little bit
more focus on the people side then, at least,
it would help someone like me to stop having
KPIssuchNumberofTrainingDays.Itisreally
about how we move people from where they
are, up to the top. Another thing that I would
like to see is if we can be radical, or even
revolutionary. Can we look beyond the four
perspectives of the Balanced Scorecards, can
we see those as a loop? Meaning that the
financial perspective goes to customers, then
to operations and to people, but what would
be the center point? Because everything is
all in a square. Can we change that? Can we
have more interconnectivity? That’s what I
would probably like to see in the research.
7. Which companies would you
recommend to be looked at due to their
particular performance management
results?
If we’re talking about the banking industry,
I would certainly recommend some of the
banks in Europe, for example Santander
Bank or BNP Paribas. As for companies,
how about Yahoo! or Facebook, how
do they manage their performance?
Companies like Alibaba, Apple number 500
billion in terms of their net worth which
is equivalent to Malaysia’s whole country
value. Literally, companies like Facebook
can buy a country. How did they manage
that through performance management?
I would, certainly like to look at that area.
Other companies that I would like to look at
are the top players in the Banking Industry,
like Goldman Sachs. However, they are
more centered on banking investments, I
think. It would also be interesting to see
if there is performance management in
fashion, or in the film industry. I would like
to see those non-traditional industries in
terms of how performance management
is handled. Even though the competency
of companies like Facebook has a lot to do
with social media, there still is something
there that companies, in a banking industry,
or a commodity industry, can lend from
them. It will be good to know how they
managed customers’ expectations, or their
value, you have to ask yourself, is this really
the quality that you want? In the banking
industry, at least, it is not the number of
customers, but the number of customers
who can actually be paid by you. So, the
proficiency level I want to see in upcoming
KPIs is actually based on thinking beyond
numbers, beyond quantity. This is how you
capture the qualitative part. I also have
to struggle with that because, at the end
of the day, you have to provide numbers.
For example, in banks these days, they
are all pretty much scrambling to go
into the social media space because they
realize that no one wants to come into the
branch anymore. People want to complete
transactions online, rather than over the
counter. Therefore, which are the KPIs
that you could implement? Although we
are moving towards a non-traditional way
of banking, the KPIs are still measuring
traditional processes. Therefore, when
someone does not have KPIs that push
people in the banking business, or every
other industry, into the realm of social
media, such as Number of Acquisition of
Customers Globally, then we, as a business,
will fade. So, I would like to see proficiency
in terms of coming up with and enforcing
non-traditional KPIs.
10. What do you consider as best
practices in Performance Management,
especially within the ASEAN region?
The Sean Darby Group has a quite
sophisticated practice in terms of the
performance management, their processes
are good, their education level is high,
meaning that they go and engage the
people, and they educate them in terms of
KPIs and Balanced Scorecards.
One of the big banks here, Maybank, also
has a very sophisticated way of managing
performance and, when I say Maybank,
I mean the group which owns the
investment bank. Other places with good
management systems are companies like
Top Gloves. They started they’re business
by producing rubber gloves, and now they
are the biggest condoms manufacturers. I
don’t know if you know this, but Malaysia
is one of the largest condom producers in
the world.
11. Which aspects of performance
management should be emphasized
during educational programs, both in
universities, and in training courses?
This, again, is related to smart KPIs. I think
oneofthethingsthathavetobeemphasized
in educational programs is not just to come
upwithsmartKPIs,whichisaboutquantity,
but how to focus on quality as well. Quality

14
PERSPECTIVES
KPIs refer to people, customers, changing,
by a little bit, operational KPIs. Such things
should be included into your educational
programs. These days, companies are going
cross-borders and, unfortunately, when you
go cross-borders, you encounter different
regulations. Now I would really like The
KPI Institute to look into cross-borders KPIs.
For example, how does someone in China
track someone in America, when they do
business? And it’s not about the quantity,
but the quality, and the sustainability of the
business. Talking about the sustainability,
I would look at companies that have
endorsed non-traditional KPIs that look into
the green projects, such as sustainability,
eco programs, or the eco footprint.
12. What do you think that educational
programs, particularly within the ASEAN
region, lack, in terms of Performance
Management?
Ihaven’tseenthesyllabusofanyperformance
management related educational program.
I’m talking only from the perspective of
the newly graduates that come to me,
seeking to work. I think that, worldwide,
we must emphasize the educational value
of Performance Management in order
to understand that every behavior has
consequences in your work and in your
life. Additionally, you should set goals for
yourself and have a controlling mechanism
to achieve them. Why I say this in a
philosophically way is because whenever
graduates come to me I don’t think they
think in terms of KPIs although they learn
them, they are not at the top of their minds.
Even though they had learnt them, they
don’t think about improving. I think that
educational programs focused on KPIs need
to address this issue.
13.Whichdoyouthinkarethechallenges
that Malaysian companies battle with
while trying to achieve higher proficiency
levels in Performance Management?
I think this, again, is related to the
emphasis being placed on financial KPIs,
and it occurs when you are focusing on
those too much, but you focus too little
on customers. We have to be more mature
about how we perceive the importance of
customers, the importance of branding,
and the importance of perception. I think
that we have to be a little more mature
when regarding all these aspects. Because,
right now, if you just consider the financial
perspective, but you don’t really think
about customers’ perception and you do
your operational KPIs based on recurring
actionable items, you will have, basically,
a static performance, you’re not growing.
And even if you’re growing, the incremental
growth is probably very small. There is very
much confusion, or preconceived notions
regarding the fact that financial KPIs are
always the most important. I think that
this has to be changed through vision. As
you know, most of the Asian countries that
are either emerging, or are third world
countries. So, the first thing that we believe
will actually take us to the level of European
countries, would be to get more money. I
think that is the biggest mistake anyone
can do, thinking only about money, without
looking at any other aspects.
14. If you are to name a few aspects
governing Performance Management in
the Asian area, those would be?
Financials and financial operations. That’s
it. The human element is either not there, or
it is compromised.
15. What is your opinion on the emerging
trend of measuring performance outside
working hours?
I think it’s wrong, it’s a fallacy if someone
thinks now that they can actually grow
within their own country. Now we need to
move out. And because there are differences
in the working hours, we really need
consider the KPIs that measure that. What
are the inputs, what is available, what are
the outputs? Should we use the smart KPIs
now that it’s a completely different contact?
So, my personal opinion on the emerging
working hours, is that, again, financials
would not be the most important aspect,
operations would not be the most important
thing, but what are the other things that
would replace these two quadrants?
16.Arethereanykindoftoolsthatyouuse
to measure your Personal Performance? If
yes, how have they influenced your life?
The performance measurement tool that
I use for myself is my job scope. What can I
actually do to make sure that my work leads
to strategic things? What actions transform,
how much would they give to the company?
Regarding what I perform, or what I
transform, where do they take the company,
intermsofpositioning?So,wheneverIdomy
job, I always measure myself in terms of the
values that I’ve created for the company, the
addedvaluethatIhavegiventothecompany,
or the people I have inspired. Bottom line, I
measure myself in that sense. If you look at
my career progression trajectory, you’ll learn
that it has expended quite fast. Right now,
who would have thought that from a VP
at Sime Darby Berhad, doing Performance
Management, I would be given this job as a
Chief Strategy and Transformation Officer,
which encapsulates everything that I have
done in my entire professional life. So, these
are the kind of performance measurement
tools that I use: I always question myself if I
have created value, or if I have added value
and, if I had done that, how do I quantify it
afterwards?
These performance measurement tools
are used in terms of: can I afford to buy a car,
or a house, meaning that they are financial-
centered.Buthowdoyoumeasureyourselfin
terms of success? I work a lot with corporate
social responsibility so, the performance
measurement tool that I use for myself, when
doing charity work, for example, is probably
about how many charities I’ve worked with
in a year? Or if the charity is about teaching
English at an orphanage, I ask myself how
many of the children can speak English after
I what I had taught them? I do use those kind
of performance measurement tools, not only
to measure the gains, but also what I like to
do in my free time.
17. Do you have any tips for successfully
managing your work-life balance?
Well,ifsomeonewantstomanagetheirwork-
life balance, the first thing that they have to
measure is discipline. They have to have self-
discipline. If you come in the morning an you
set up to do 10 things, at the end of the day,
check back and see if you had done those
10 things. Because, if you have only done 8
out of 10, the 2 will spill over into the next
day. And the next day there will be another
10 tasks out of 15. And, from my experience
of working with so many nationalities, and
across different countries as well, the one
thing that the Asian part should learn from
its western counterpart is not really about
working hard, putting in the hours, and
working late, but about self-discipline, and
resourcefulness. And you cannot do the
same thing over and over again, using the
same formula. Times have changed. The
world has changed. Adapt! I don’t really have
a good formula for work-life balance, other
than this: be focused, adapt, and adapt your
capability and capacity. Also, be creative in
terms of what you’re doing, because if you
can do something in 5 steps, why don’t be
creative, and cut it into 3 steps? That would
free up your time for other things. Also,
respond to the dynamics of the world.
18. Which are the recent achievements
in terms of generating value as a result
of Performance Management, put in
practice in your organization?
In one of the organizations that I’ve
worked with, I was instructed to create
another component for the CEO’s Balanced

15
PERSPECTIVES
Performance Management is an approach
oriented towards achieving maximum
results from engaging in any planned
activities. It encompasses the utilization
of both human, and material resources of
the entire organization, under a particular
system. This means that there is a kind
of causal relationship that exists among
the elements of business operations and
processes that greatly affect the desired
output; hence performance management is
a way for an organization to constantly look
into causal relationships and address the
identified gaps.
2. What drives interest in Performance
Management?
Organizations are faced with challenges
to sustain its operations, and this implies
that they need to leverage their resources,
such as human resources and other
assets. Performance Management offers a
balanced approach towards attaining this
leverage.
3. What are your thoughts on the
Again, there is a causal relationship that
exists, over the course of operations,
within the organization. It is important
Practitioners
Interviewee name: Lauren Borja
Title: Head of Corporate Strategic Planning
Organization: BBV, Philippines Air Force
Country: Philippines
that the elements and factors affecting
this relationship are properly aligned, and
linked together. This alignment provides a
realistic picture of how organizations can
best manage their capabilities to achieve
the desired results across all levels.
At the individual level, employees get to
explore more of what they can do when they
are able to relate their personal aspirations
against those that are expected of them by
the company. Performance Management
at the organizational level, on the other
hand, offers its people the pathways and
architecture towards high performance.
4. What are the 2014 key trends in
point of view?
- The application of Performance
Management at the macro level, as it is
implemented in the government;
- Performance Management as a tool
to measure progress in Organizational
Development;
- Performance Management applied beyond
the HR perspective;
through research?
- Performance Measures and its qualitative
implications;
- Performance Management architecture for
enterprises under transition.
recommend to be looked at, due to their
particular approach to Performance
- Cargill Philippines
- MIESCOR (MERALCO Industrial
Engineering Services Corporation)
- Lopez Group of Companies
7.Whicharethemainchallengesintoday’s
Performance Management practice?
- Integration of Performance Management
with other management systems and
approaches;
- Data relevance and subsequent
interpretations;
8. What do you think should be improved
in the use of Performance Management
tools and processes?
There is a predominance of Performance
Management tools for HR, without proper
linkage to other business processes that
delimit the whole concept of Performance
Management.

9.Whatwouldyouconsiderbestpractices
Best practices in Performance Management
in the Philippines have been anchored in the
country’s Development Plan (2011-2016),
with its three major undertakings: Results-
Based Performance Monitoring System
(RBPMS), Organizational Performance
Indicator Framework (OPIF), and Strategic
Performance Management System (SPMS).
These PM systems serve as models to various
types of organizations to link employee
performance and incentives against
organizational targets.
10. Which aspects of Performance
Management should be emphasized
- Laying the PM architecture;
- Competency in data analytics and PM
measures.
Scorecard. So, instead of having 4 quadrants,
it actually had 5. The fifth one was about
nation building. The fifth component of
the scorecard were the KPIs that needed to
be given to the CEO to help Malaysia build
its capability. I think that the achievement
that I’ve gained from that workplace was
that, before my team and I came up with
those specific KPIs, nobody really cared
about nation building in that particular
organization. They shied away from it. But,
when we included those KPIs, we forced
businessestoworkwiththeHumanResource
department, we also mobilized an area that
created jobs for the people in Malaysia and,
also, we kind of mobilized an area that mad
sure that affordable houses were being built.
I think this is my recent achievement. So this
is the key, coming up with certain KPIs, sort
of mobilized the company to think about
Malaysia, rather than just about their own
departments and work.
WhatIhavedoneforRakyatBank,overthe
courseof2months,isthatIhelpedtheCEOto
look at a specific operating model. Previously
toRakyatBankbeingprofitable,therewereso
many things that we were doing to make sure
that everything is well structured. The value
that was generated this operating model, is
that people have clearer perspectives in terms
of the bank’s strategic pillars and in terms of
the responsibilities that had been assigned to
them.And,induetime,Ithinkwecancomeup
with a performance management mechanism
to make sure that everything is aligned to the
vision, or to the implemented strategy. That
is probably the biggest achievement that
I have here, since the bank did not have a
Performance Management system before.

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PERSPECTIVES
11. Which are the limits in order to
achieve higher levels of proficiency
in Performance Management among
practitioners?
- There is a need to simplify the
methodology of computing for results;
- Shared meaning of PM across the
organization, from a holistic viewpoint.
12. If you are to name, in a few words,
the main aspects governing Performance
Management today, what would they be?
- Integration of Strategic and Business
Planning Systems and HRIS.
Performance management involves the
on-going practice of several independent
processes related to planning, measurement,
analysis, and data use with the intention to
strengthen accountability, improve program
effectiveness, and support policy- and
program-related decision making.
Management?
Enthusiasts of performance management
argue that it serves a key integrating role
within an organization’s human resource
processes. Firstly, it serves recruitment.
Secondly it monitors employee performance
and the relevance of their working behavior
to business objectives. As such, it can be
considered to be an important motivation
tool. Thirdly, it provides a rationale for an
working hours?
I believe it makes sense to undertake
measurement because, for every hour spent,
whether for personal or for professional,
at the end of the day, people engage in
such activities, exerting efforts to reach an
expected outcome.
14. Are you using any kind of personal
performance measurement tools? If yes,
please describe how this has influenced
your life.
Yes, I have started applying the principles
of Balanced Scored in my personal plans
with identified KPIs. So far, I can say that
both are very useful and can be applied
simultaneously to give us a sense of direction
in terms of classifying and prioritizing the
things that generate more value.
managing one’s work-life balance? What
are your thoughts?
Firstly, I think that having a work-life
balance is dependent on one’s goal, which
means that an individual has the power to
plan and decide on how he/she wants to
put the balance. Secondly, there are factors
and circumstances that may hinder having
work-life balance, like time and money;
and lastly, it is the reality that it affects
both the individual, and the organization’s
productivity. In such case, there has to be a
way for a work-life balance to take place.
I would say that successful management
ofone’swork-lifebalanceissimpleeconomics
that entails giving a careful thought of what
can be done, given the limited resources, for
optimum benefits.
16. Which are the recent
achievements in generating value as
a result of Performance Management
implementations in your organization?
Formalizing the practice of Performance
Management amidst an ongoing
organizational development proves to
be a challenge; however, this generates
consistency and coherence of acts among
members of the organization towards
realizing the corporate goals.
Performance management
is a way for an organization
to constantly look into causal
relationships and address the
identified gaps.
”
“
Practitioners
Interviewee name: Men Chanbona
Title: Monitoring and Evaluation Manager
Organization: International Development Enterprise
Country: Cambodia
organization’s reward policy. In the fourth
instance, it serves staff development. Taken
at face value, these intentions seem entirely
compatible with an integrated and strategic
approachtohumanresourcemanagement.In
reality, good performance management is a
controversial matter, involving fundamental
issues of motivation, assessment and reward.
Performance is referred to as being about
doing the work, as well as being about
the results achieved. It can be defined
as the outcomes of work because they
provide the strongest linkage to the
strategic goals of an organization, customer
satisfaction and economic contributions.
The term “Performance Management and
Measurement” refers to any integrated,
systematic approach to improving
organizational performance, to achieve
strategic aims and promote an organization’s
mission and values. In that sense,
Organizational Performance Management is
quite different than individual Performance
Management, which specifically targets
the personal performance of an employee,
although the latter comprises an essential
part of the overall organizational
performance framework.
point of view?
Here are my key trends in Performance
Management.
Key trend 1: Linking performance
management and risk management:
The reason for why I see it as a key trend
is that more and more organizations are
actually linking the two areas more explicitly,
and an increasing number of addressing
problems now offer integrated risk and
performance management.
The way I have always proposed to
link risk and performance is to look at
risk for every strategic objective on your
performance framework, and to develop
key risk indicators (KRIs) that sit next to key
performance indicators (KPIs) and allow

17
PERSPECTIVES
you to assess and mitigate the risks of not
achieving your strategic goals.
Key trend 2: Creating a strategy and
intelligence competency center:
Strategy management and strategic
business intelligence and analytics require a
team that not only has the relevant skills, but
is structured in the appropriate way.
In order to sustain the management of
strategy, I suggested creating (1) a strategy
council, (2) strategic theme teams, and (3)
an office of strategy management:
•THE STRATEGY COUNCIL: A team made
up of senior executives responsible for
oversight of strategy development and
execution.
•THE THEME TEAM: A cross organization
team empowered to execute the objectives
of a strategic theme at an operational level.
•THEOFFICEOFSTRATEGYMANAGEMENT:
A small team of performance management
specialists who are responsible for designing
and managing the Strategy Management
Process objectives of a strategic theme at an
operationallevel.
Key trend 3: Linking strategic
performance management with leadership
and change management:
PM is a system and process that impacts
everyone in the organization. You can
argue that performance management is the
most important job of a manager. In fact,
you could argue that the execution of the
organizational mission is the only job of
management.
Leadership creates the vision and sense
of urgency. Leaders communicate, inspire
and motivate.
Managementprovidestherigor,alignment,
and discipline required to implement the
strategy and achieve the vision.
through research?
There are various aspects of Performance
Management that should be explored, in
terms of research:
• Identification and enhancement of
desirable or effective work behavior;
• Reinforcement of this behavior by linking
rewards to measured performance;
• Development of desired competencies and
building human capital within organization.
There are two companies that I recommend
you to look at:
1. Forbes Company
2. Lenovo Group
7.Whicharethemainchallengesintoday’s
These are the main challenges which we
have been facing so far:
Incorrectly interpreted strategy of the
performance approach: In practice, it is very
often manifested by the staff as a strategy to
reduce costs without a detailed explanation
to all employees. In the extreme cases, we
can get the opposite effect, i.e. reduced
performance of individual employees, thus
reducing the performance of their team
and the whole enterprise. The incorrectly
interpreted strategy of the performance
approach can paradoxically lead to a
reduction in corporate performance.
Lack of necessary knowledge and skills:
when managers are driven to improve
their managerial skills in the concept of
professional competence, the management
sometimes does not realize the basic
shortcomings of managers in this area.
Unfortunately, it is not proven by practice
that all managers are able to use various
forms of training and courses to learn these
skills, and although we argue that managers
are not born but must be trained gradually,
it is equally true that not every manager
who learns managerial skills and techniques
is able to acquire them well enough to be a
good manager.
Lack of top management support is a
key milestone in the implementation of a
strategy to increase business performance.
If the senior leadership does not create the
necessary background for these purposes,
any efforts of individual managers are
seriously weakened.
Lack of confidence is a hidden variable
in the formula defining the organization’s
success. Although the company has an
excellent strategy for increasing the
performance,andhascapablemanagerswith
the knowledge of methods and approaches
of performance management and soft
skills to meet the strategy, low confidence
in the company can cause a decrease in
the expected outcome. Conversely, high
confidence can result in an even bigger
increase of the expected result.
Understanding the use of tools and processes
can be improved by means of Performance
Measurement approaches, which requires
the knowledge of a simple kit of tools or
techniques. The effective use of these tools
and techniques requires their application by
the people who actually work on the process,
and their commitment to this will only be
possible if they are assured that management
cares about improving quality. Managers
must show they are committed by providing
the training and necessary implementation
support.
9.Whatwouldyouconsiderbestpractices
These are the best practices in Performance
Management that I have been learning from
my practical experiences:
Establish a Results-Oriented Set of
Measures that balance business, customer,
and employee:
• Define what measures mean the most to
customer, stakeholder, and employee by (1)
having them work together, (2) creating an
easily recognized body of measures, and (3)
clearly identifying measures to address their
concerns.
• Commit to initial changes by (1) using
expertise wherever you find it; (2) involving
everyone in the process; (3) making the
system non-punitive; (4) bringing in the
unions; and (5) providing clear, concise
guidanceastotheestablishment,monitoring,
and reporting of measures.
• Maintain flexibility by (1) recognizing
that performance management is a
living process, (2) limiting the number of
performance measures, and (3) maintaining
abalancebetweenfinancialandnonfinancial
measures.
Establish accountability at all levels of the
organization:
• Lead by example.
• Cascade accountability: share it with the
employee by (1) creating a performance-
based organization, (2) encouraging
sponsorship of measures at all levels, and
(3) involving the unions at all levels of
performance management.
• Keep the employee informed via intranet
and/or Internet; don’t rule out alternative
forms of communication.
• Keep the customer informed via both the
Internet and traditional paper reports.
• Make accountability work: reward
employeesforsuccess.Supplementorreplace
monetary rewards with nonmonetary
means, reallocate discretionary funds, and
base rewards in a team approach.
Collect, use, and analyze data:
• Collect feedback data, which can be
obtained from customers by providing easy
access to your organization; remember that
“survey” is not a four-letter word.
• Collect performance data by (1) investing
both the time and the money to make it right,
(2) making sure that your performance data
mean something to those that use them, (3)
recognizing that everything is not on-line or
in one place, and (4) centralizing the data
collectionfunctionatthehighestpossiblelevel.

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•Analyze data: (1) combine feedback and
performance data for a more complete
picture, (2) conduct root-cause analyses,
and (3) make sure everyone sees the results
of analyses.
During the educational program,
Performance Management should be
emphasized on Performance Management
systems which consists of:
• Performance Indicators:
- Identify relevant indicators
- Select indicators
• Performance Management
- Use PMTs
- Collect data/information regarding
indicators
• Quality Improvement Process
- Verify and use existing data in policy and
decision-making
- Manage change
- Create a learning organization
• Reporting of Progress
- Undertake regular monitoring of progress
- Report to managers, staff, Policy makers
and constituents
- Actions for Improvement
11. Which are the limits in order to achieve
higherlevelsofproficiencyinPerformance
Management among practitioners?
Here are the limitations:
Absence of Integration: the performance
management system has to be integrated
with the strategic planning and human
resource management systems, as well as
with the organizational culture, structure
and all other major organizational systems
and processes.
Lack of Leadership Commitment:
leadership commitment and support is a
must for smooth implementation of the
system. Leaders must drive the process
and make performance management an
integral part of the management of the
company.
Ignoring Change Management in System
Implementation: strategic management of
change is a vital part of implementing the
system. Driven by the top management, it
involves careful management of resistance.
Communication would be a major
intervention and a key tool in managing
the change. Implementation milestones
and schedules must be followed. Proper
documents must be in place.
Incompetence: competence to use
the performance management system is
necessarytoensuresmoothimplementation
of the system.
Domain: the domain is the focus of the
performance management efforts, e.g., the
entire organization, a process, subsystem
or an employee. A subsystem could be, e.g.
departments, programs (implementing
new policies and procedures to ensure a
safe workplace; or, for a nonprofit, ongoing
deliveryofservicestoacommunity),projects
(automating the billing process, moving to a
new building, etc.),
Performance Plan: the plan usually
includes at least the domain’s preferred
results, how the results tie back to the
organization’s preferred results, weighting
of results, how results will be measured and
what standards are used to evaluate results.
Performance Gap: This represents the
difference in actual performance shown,
as compared to the desired standard of
performance. In employee performance
management efforts, this performance
gap is often described in terms of needed
knowledge and skills which become training
and development goals for the employee.
PerformanceDevelopmentPlan:Typically,
this plan conveys how the conclusion
was made that there was inadequate
performance, what actions are to be taken
and by whom and when, when performance
will be reviewed again and how. Note that a
developmentplanforemployeeperformance
management may be initiated for various
reasons other than poor performance.
your life.
Yes,Iamnowusingmypersonalperformance
measurement tool called “Performance
Development Management”. Performance
Development Management tool helps me to
growanddevelop,willhelpmetoprogressthe
individualsthroughtheorganization.Icanbe
building on strengths that the organization
needs - both in my division and in other
areas. A solid, well-formed performance
measurement gave me a powerful tool for
addressing poor performance issues, should
theyarise.IfI,andmyemployeeshaveagreed
upon what their duties and responsibilities
are, then I have something to refer to when
they are not holding up their end of the
agreement. Performance measurement also
helps me to develop my team members. I can
useittostretchtheircapabilities,tochallenge
them to step outside of their comfort zone.
Doing so will provide opportunities for
individual growth which, in turn, will help
to fuel their enthusiasm for their job.
are your thoughts?
1. Refocus Your Priorities
Each of us has our own priorities. In the
workplace, some people focus on getting a
lot of benefits by doing a job well. Their main
priority is to earn money, more money, and
get a promotion. If this is the main reason
why you are spending most of your time in
the office, or in your business, then you are
leading into a wrong path. No matter how
hard you work, or how much time you invest
in your job or career, if your intention or
purpose is not good, it will eventually lead
to failure and job burnout.
2. Make Your Career Your Friend
You chose to venture into the business or
field you’re in now because it’s where your
skills fit and you love to do it, right? This
may sound as an old cliché, but it’s one thing
everyone should always remember: doing
what you love will never feel like work.
The reason many employees or workers
hate their jobs is because they treat it as their
enemy. They don’t enjoy doing it and they
complain every time things aren’t going their
way. If you don’t like this exhausting and
stressful lifestyle, then you should treat your
jobasyourfriend.Seekouttasksanddiscover
newthings.Enjoyeverythingaboutitbecause
ifyoudo,youwillneverfeeltiredandstressed.
3. Don’t Let Work Dictate Your Level Of
Commitment
Some people depend their level of
commitment to the amount of work that
Performance Management
and Measurement refers to
any integrated, systematic
approach to improving
organizational performance,
to achieve strategic aims and
promote an organization’s
mission and values.
”
“
working hours?
The trend of measuring performance
outside working hours is crucial as it would
contributetoachieveintendedobjectivesthat
organizations want their employees to reach,
alongside the desired target.

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PERSPECTIVES
they’ve accomplished. This should not be the
case. As a professional, you must learn to set
someboundariesbetweenworkandsociallife.
Your job is not forever, but your relationships
with people and things will last a lifetime.
Don’t give all of your time to your clients
or customers. Your family and friends also
deserve at least some of your precious time.
4. Respect Your “Me” Time
Respect your private time in the same way
yourespectyourclientsorco-workers’time.If
you set a time for yourself or for your family,
try your best not to take work home. Give
yourself enough time to rest and sleep. You
need it in order to become more productive
and focus in things that you do.
16. Which are the recent achievements in
generatingvalueasaresultofPerformance
Management implementations in your
organization?
Here are the recent achievements in
generating value, as a result of Performance
Management implementation in my
organization, highlighted below:
1. Achieved the target of increased annual
profit for vegetable farmers.
Target: $280
Achieved: $565
2. Achieved the target of target clients set
during implementation.
Target: 1000 farmers
Achieved: 1351 farmers
Managementtoolsusedtoformulatestrategy
execution, monitor its achievements through
dashboards, and make corrective actions
if there are any deviations from those
achievements.
Management?
The Transparent Reward System which is
linked to performance score.
Strategic objectives and KPIs shall be aligned
from company level down to divisional,
departmental, and individual level. KPIs at
any particular level must be supported by
KPIs from the respective downline unit.
point of view?
Integration between performance
managementandriskmanagement,between
Practitioners
Interviewee name: Yan Yohanes Abdullah
Title: Business Process Manager, Performance & Risk
Management (BPPRM)
Organization: CNOOC SES LTD.
Country: Indonesia
KPIs and KRIs, between Strategic Initiatives
and mitigation plan, between Critical Success
Factors and Critical Risk Factors.
through research?
KPIs for non-core department need to be
standardizedandmoreeffectiveinsupporting
core departments. This is a common mistake,
experienced by many organizations.
6.Whichcompanieswouldyourecommend
to be looked at, due to their particular
approach to Performance Management
and subsequent results?
General Electric Company and Samsung
Corp.
7. Which are the main challenges in today’s
To encourage Top Management to use
Performance Management not only as
measurement tools but, more than that, to
frame, formulate, and execute the company’s
strategies. To encourage top management to
be more focused on strategic KPIs.
The quality of KPIs needs to ensure a direct
impact on achieving strategic objectives.
Additionally, Performance management
applications have to be linked to business
process applications.
9. What would you consider best practices
A fewer number of KPIs which offer a wider
coverage of the organizational strategy. The
number of KPIs at corporate level unit of
organizationshallbeofamaximumof25.The
lowerorganizationallevel,thesmallernumber
of KPIs it should have.
Managementshouldbeemphasizedduring
educational programs?
QualityofKPIs,forinstance,howclosearethe
resultsoftheKPIstotheresultsoftheStrategic
Objectives.
11.Whicharethelimitsinordertoachieve
Knowledge about streamlined business
processes, adequate internal control.
Alignment, monitoring through dashboards,
correctiveactionswhichensureachievements
attheendoftheyear,specialunitsthatmanage
performance management, commitment of
top management representatives.
working hours?
It is great! It is already appreciated in our
company. For instance, employees are
encouragedtogetinvolved,ortoparticipatein
professional activities outside the office, such
as activities in professional associations, hold
speechesinseminarsorconferences,facilitate
workshops or trainings, etc.
your life.
KPIshavebeenadoptedinourfamilytogether
with the slogan: “No activities without clear
No activities without
clear purposes and without
successful measurement!
”
“

20
PERSPECTIVES
Academics
Interviewee name: Linda Puth
Title: HR Management Officer
Organization: Save the Children International
Country: Cambodia
Performance Management is one of the HR
strategies used to manage employee and
organizational performance with effective
and user friendly tools, systems, approaches
and disciplines. Performance Management
is becoming well-known and awakens
the interest of both profit, and non-profit
organizations. There are three main parts
underlying in performance management
tools–competenciesagainsttypicalbehavior,
development plan identified for career
aspiration/futuregoal,andSMARTobjectives
set for the year, with key success measures.
Management?
The three key factors that help drive interest
in Performance Management are: merit
increase based on performance (rewarding),
improvement areas (development needs) of
individuals, department and organization,
and the real ability, supported by tangible
evidences,tooperateeffectivelyandefficiently
with SMART goals and objectives.
From my personal perspective on the
Management at the three levels, I think that
they are interconnected with one another.
One cannot be done alone; all levels need
to be done together. The process should
be a top down approach, in which the top
management should strongly drive the
process and make it happen throughout the
organization, from organizational down to
departmental, and individual level.
point of view?
It’s linked to strategic leadership and change
management in the organization. Another
key trend is to help people understand
that Performance Management is a tool to
improve an organization’s performance and
to maintain the continuous success within
theorganizationandforourtargetrecipients.
through research?
I think that Performance Management
monitoring and evaluation should be
explored more through research study.
Monitoring and evaluation should focus on
how to measure the key success measures
that individuals produce against the
objectives, for instance.
The companies I would like to recommend
are multinational companies whose business
is focused on trading and selling products,
and international organizations that are
using standardized systems and tools. These
institutions also have high potential and lots
of opportunities to grow.
7. Which are the main challenges in
practice?
In business sectors, doing Performance
Management might be easier than in
the development sectors, as the general
concepts of performance management are
associated with judgment, and counting the
numbers of achievements and results with
little flexibility. In the development sectors,
there is an entire range of the same questions
asked, such as “What’s in it for me?” and
“How to set SMART objectives and measure
the success?”
The communication before the planning,
mid-year and end year review period should
be improved. This means that employees
should be aware and well prepared in
advance for their review and planning. The
competency framework used to measure and
improve the standard behaviors should also
be improved in terms of defining positive and
negative indicators.
purposesandwithoutsuccessfulmeasurement
(KPIs).”MydaughterusedKPIsduringcollege,
andshemanagedherKPIssuccessfully.Overall
AcademicScoreisthefirstKPI,withasettarget
of 3.1. She exceeded the score of 3.47 out of a
4range.SecondKPI,Lengthoftimeincollege
with a target of 4.5 years. She graduated in 4
years. Thirdly, Nr. of non-academic activities,
which had a target of 3, and she exceeded it
with 5 activities. Finally, Length of time non
jobaftergraduationwithatargetof6months.
She got zero as she was hired one day after
graduation. How have KPIs influenced my
daughter? She put those KPIs in her room,
she look at them every day, she updated them
every semester, and she created strategic
initiatives to achieve all the targets.
are your thoughts?
First,wehavetohavepassion,thisistheprime
moverorenergysource.Secondly,wehaveto
haveskillstochannelourpassion.Thirdly,we
havetohaveaclear,andmeaningfulpurpose,
i.e. Value Creation. The more value created,
the happier we get in our life. The only one
mission of human kind to exist on this planet
is for the sake of value creation, nothing else.
Ifwebelieve,andfollowthiswayoflife,itwill
make our life balanced.
organization?
1) Integrating performance anud risk
management in one dashboard application
(QPR). The implementation is very helpful
for Top Management, in order to monitor the
progress of strategy execution, and decide
corrective actions as early as possible.
2) We got the Ventana Research Award 2010,
whichisgiventoleadersinprocess,peopleand
technology management.

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PERSPECTIVES
The Performance
Management best practice
that I would consider is the
continuous improvement
and development of
individuals, departments and
organizations.
”
“
Performance Management is a process
which reviews employees’ work efforts that
contribute to achieving the organization’s
mission. It entails a continuing
communication process, undertaken in
partnership between the employee and his
or her immediate superior, which involves
establishing clear expectations and
understanding these in order to achieve
the organization’s mission, vision and goal.
9. What would you consider best practices
The Performance Management best practice
that I would consider is the continuous
improvement and development of
individuals, departments and organizations.
The volunteer involvement of top
management and all levels of managers
to engage and be role models is vital
in promoting an effective performance
management shared culture.
I think it would be interesting if people can
be trained on how to set goals and objectives
which are specific, measurable, attainable,
relevant and timely (SMART). Introducing
some standard tools for performance
management, understanding and being
able to set and measure the key performance
indicators (KPIs) is also useful and should be
emphasized in educational programs.
11. Which are the limits in order to achieve
The common understanding and language
among management teams and all of the
staff limits the achievement of higher levels
of proficiency in Performance Management,
among practitioners. However, this can be
solved by having great coordination from
human resources experts.
Performance Management today is about
management by objectives, building
organizational performance, strong team
work and individual talent.
working hours?
I think that it is good way to measure the
performance outside working hours as we
also want to see more improvement within
our personal life, keeping us aware that in
everything we do, we want quality.
your life.
Definitely, I’m using a tool for my personal
performance measurement. The simple way
is to plan on every task ahead every day.
I spend at least five minutes during early
mornings to think of what needs to be done
at the end of the day. I keep reminding
myself that every single thing I do today is
for the best of my abilities, and I will always
be happy about the end result that I achieve.
are your thoughts?
It’s not that difficult to manage my work-life
balance. It might not be true for those whose
positions are top leaders and managers.
However, I don’t think there are many
obstacles. First of all, it should start from
each individual who has to bear in mind
that “Life is short.” Then, why not live life
positively with thinking, speaking and
doing. Life is not that easy, but we do have
some choices if we want to find it out and
open up.
organization?
Performance Management has been
transformed from an old practice, to
a modern practice by using strategic
approaches, principles as well as systems
to improve employee engagement and
performance in each department.
Practitioners
Interviewee name: Ma. Margaritha B. Romero
Title: Head of Human Resources
Organization: MGS Corporation
Country: Philippines
Performance Management is holistic and
a cycle that begins with planning (work &
expected deliverables/output), monitoring
the behavior and performance results,
developing employee capabilities, coaching
and giving rewards and recognition.
Management?
It is a social process, a continuous
communication and feedback between the
employee and his/her immediate superior.
Performance Management is inter-related
with the organizational, departmental and
individuallevelssinceitisacontinuouscycle.
PM will start with Performance Planning,
wherein the whole organization sets its
targets based from its mission, vision and
Performance
Management starts with
clarifying the relationship
between the organization’s
measurable goals & objectives,
and the employee’s job &
expected work results.
”
“

performance_management_in_2014-_asean_edition

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