Strategic Enterprise Management

© Empower Management Consulting LLC - All Rights Reserved

Strategic Enterprise Management
Mohamad J. Samman
HR Best Practice Group
Doha, Qatar
October 14, 2009 1


Agenda
 Strategic Enterprise Management introduces broad agenda on how
to efficiently implement Corporate Business Strategies to leverage
Human Capital contributions for the organizational effectiveness
with comprehensive framework that integrates SMART Objectives
(KPIs) and Competency Models with Performance Appraisal
practices, Compensation, Incentives, Career Development,
Succession Planning, and Talents Acquisition processes.
 The Presentation shall introduce extensive information of the
unlimited advantages through efficiently using measurement-
based strategy model to achieve corporate business objectives by
implementing Balanced Scorecard (BSC) concept as Strategic
Enterprise Management (SEM) Tool to identify and communicate
Corporate Business Strategies and deploy strategy roadmaps with
clear Matrix and specific Metrics and cascade Strategic Objectives
to effectively manage Human Capital. 2


Corporate Struggle!

How to Design, Communicate, and Implement Business Strategy?
3


Corporate Dilemma!!!

FIASCO

How to Align & Cascade Corporate Objectives and Evaluate Performance? 4


Today’s Business Challenges
 Global Recession & Financial Crisis: significant decline in the GDPs.
 Socioeconomic changes and Cost of Living Inflation/Fluctuations.
 Unclear Business Strategy & lack of Corporate Objectives.
 Transforming HR Management to Strategic Business Partner Role.
 Shortage of Technical Skills and swift migration of Talents.
 Employees’ expectations vs. Corporate directions.
 New Business Techniques and ERP/ICT Solutions.
 Ongoing Quality Improvement and demands for Service Excellence.
 Collaboration between Global Joint Ventures and Local Partners.
 Outsourcing: Availability, Commitment, Cost, Quality, Control.
 Globalization & Labor Laws (Amnesty, Human Rights, ILO).
 Global Alliances & widespread Competition (WTO & FTA).
 Governmental Regulations, Constrains, and Political conflicts.
5


Corporate Problems
 Leadership & Line Management!
– No Authorization/Delegation
– Unclear Accountability
– Slow Decisions & Approvals
 Business Practices:
– Outdated Policies & Procedures
– Complicated & Inefficient Processes
– Lost Data & Inaccurate Information
– Disorganized Files and Lost Records
– No Control & No Follow-up
 Inconsistent Communication
 Internal Audit & Legal Compliance
 Confidentiality: Rumors & Gossips
 Motivation & Loyalty: Reactive Behavior
6


Strategic Enterprise Management

Values
………
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Critical Success Factors
Demonstrated
Key Performance Indicators Skills & Behaviors
7


Business Foundation (3 Pillars)
 Vision: Defines the desired or
intended future state of a specific
organization or enterprise in terms
of its fundamental objective
and/or strategic direction.
 Mission: Defines the fundamental
purpose of an organization or an
enterprise which is basically
describing why it exists.
 Values: Beliefs that are shared
among the Stakeholders of an
organization. Values drive an
organization's Behavior, Culture,
Business Strategy, and Priorities.
8


Integrated Approach
 Integrated Business Strategy refers
to management techniques, metrics
and related tools that companies
can use to make strategic decisions.

 It is important to link Business
Strategy with Human Capital
Management by Integrating
Balanced Scorecards and Strategic
Talents Management to translate
Vision and Mission to Business
Strategy and Objectives and
Achievements for Corporate
Competitive Advantage.
9


Business Strategy & Stakeholders
 Strategy defines the direction
in which an organization
intends to move and establishes
the business framework and
actions to achieve its Goals and
Objectives.

 Stakeholders are Individuals,
Groups, or other Entities that
are affected by or have a vested
interest in an organization’s
Business Strategy, Policies or
Decisions.

10


Stakeholders Influence/Power
Suppliers Creditors

Customers Unions

Lobbyers
Employees

Organization
Society Management

Government Owners

11


Stakeholders’ Interests
 Owners: Business Acquisition, Brands, Assets, Reputation, Profitability
(ROI), Corporate Governance (Audit), Growth, and Prospects, © & ®.
 Management: Accountability, Resources (Human, Technical, Financial),
Competition, Costs, Productivity, Objectives, and Performance Outcomes.
 Employees: Salary, Benefits, Work Conditions, Training and Career
Development, Promotion, Relationships, Job Security, and Satisfaction.
 Unions: Memberships, Dues, Collective Bargaining on Pay, Benefits,
Work Conditions, Promotions, Job Security, Fair Business Practices.
 Creditors: Trustworthy, Assets, Liquidity (Cash-flow), New Contracts.
 Government: Regulations, Taxation, Inspection, Legal Compliance.
 Lobbyers: Environment, EEO, Human Rights, Disability, Business Ethics.
 Society: Corporate Social Responsibility, Contributions, and Activities.
 Customers: Quality, Value for Price, Refunds, Services, After-Sale Care,
Warranty, Maintenance, Health & Safety, Durability, Reliability.
 Suppliers: Competition, Availability, Quantity, Delivery, Payments.
12


Business Model Framework
INFRASTRUCTURE
PARTNER OFFER CUSTOMER
CUSTOMER
NETWORK RELATIONSHIPS
CORE VALUE CUSTOMER
CAPABILITIES PROPOSITION SEGMENTS
ACTIVITY DISTRIBUTION
CONFIGURATION CHANNELS

COST FINANCE REVENUE
STRUCTURE STREAMS

a business model describes the value an organization offers to
various customers and portrays the capabilities and partners
required for creating, marketing, and delivering this value and
relationship capital with the goal of generating profitable and
sustainable revenue streams
Source: Osterwalder (2004) The Business Model Ontology 13


Due-Diligence & Feasibility
Internal External
S.W.O.T
Strength Weakness Opportunity Threat

Government

Shareholders

Products

Customers

Financial

Legal
14


Business Continuity - Risk Matrix

Probability
Severity
Improbable Remote Occasional Probable Frequent

Catastrophic

Severe

Critical

Marginal

Negligible
15


Business Strategy

Revenue

Satisfied Customers

Value-Added Services

Efficient Processes

Talents & Resources
16


Balanced Scorecard Model

17


Business Strategy Map (Sample)

Profits
Financial

Revenue from Revenue from Revenue from Improved
New Customer New Services Alliances Operating Efficiency
Customers

World Value Ongoing Expand
Alliances
Class Added Reliable Business
Partnerships
Company Services Support Prospects
Processes

Business Productivity Marketing & New/Ongoing
Benchmarking Knowledge
Development & Quality Relationship Business
Best Practices Management
and Branding Services Management Opportunities
Enterprise

Admin & Media &
Due Talents & Training & ICT
Finance Public
Diligence Resources Reward Support
Services Relations

18


Performance Matrix and Metrics
Objective Owner Projects Measures Targets Actual
Financial
Customers
Processes
Enterprise

19


Master Plan (Deliverables)

Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

20


Human Capital Performance

Achievements

Expectations

Who, What, Which, Why, Where, When, and How? 21


Managing Human Capital

Talents Acquisition
Strategic Performance Management Objectives Competencies

360° Feedback
Contributions & Demonstrated
Achievements Skills/Behaviors

Performance Appraisals

Performance Strengths &
Ratings/Outcomes Weaknesses

Reward Development
22


Objectives Mgmt. Design
 Higher emphases on rewarding
Achievements and Contributions
 Individual Objectives are based on:
– Organization’s Business Plan;
– Job Requirements (Job Description);
– Additional Contributions (Value-Added).
 SMART Objectives (not Tasks)
 Specific KPIs & Weighting Factors
 Clear Rating Scale and Definitions
 Individual Objective’s Measures
 Objectives’ Overall Calculated Rating
 Ongoing Review and Alignment
 Self-Assessment & 360-Degree Feedback
23


SMART Objectives

Specific
Measurable
Achievable
Result-Oriented
Time-Framed
Energizing
Recordable
24


Cascading & Alignment

Corporate Objectives Business
Strategy is
Everyone’s
Division Objectives

Unit/Section Objectives
Business!

Individual Objectives

Key Performance Indicators

Targets and Measures
25



Talents Acquisition

360° Feedback



Reward Development
26


What is Competency?

Competency is a specific
range of Skill, Knowledge,
or Ability.

Competencies are a set of
Effective Actions and
Demonstrated Behaviors
that, if exhibited, produce
Superior Performance.

27


Competency Pyramid

Behavior

Feelings and
Emotions
Character
Personality
Social Interests
Financial Needs
Self-Perceptions
and Self-Esteem
Career Aspiration
Hidden Expectations
Unresolved Problems and Critical Issues
from the Past Experience
28


Competency Domains
 Leadership: Required for all
Employees who have direct
responsibility for Individuals, Teams,
or Projects.
 Corporate: Required for all
Leadership
Employees such as: Customer Service,
Cost Effectiveness, and Quality.
 Generic: Required by Job Category Technical
and
such as: Information Seeking and Functional

Analytical and Innovative Thinking.
 Technical & Functional: Skills and Generic Corporate
Qualifications related to the specific
functional discipline and unique to
each Profession.
29


Competency Models (Dictionary)
 Linked to:
– Vision & Mission
– Core Values
 Aligned with Strategy:
– Corporate Objectives
– Individual Objectives
 Categories
 Definitions
 Importance
 Levels
 Key Actions
 Sample Job Activities
 Compared to
 Competency Matrix 30



Talents Acquisition

360° Feedback



Reward Development
31


Performance Appraisal Concept
 “Performance Appraisal is one of those
special human encounters where the
Manager gets no sleep the night
before, and the Employee gets no sleep
the night after!!”
 Performance Appraisal is an ongoing
process that provides regular
constructive feedback to employees
so that they develop into skilled
workers who are useful to the
organization.
 A written Performance Evaluation is
a way to formalize feedback process,
and lets employees know how they
perform. 32


Appraisal Techniques
 Checklists
 Rating Scales
 Ranking Methods:
– Forced Distribution
– Rank-Order System
– Alternation Ranking
– Paired Comparison Ranking
 Critical Incident Reports
 Work Standards Approach
 Management By Objectives
 Narrative or Essay Evaluations
 Behaviorally Anchored Rating Scales
 Multi-Rater Assessment (360° Feedback)
 Aligned and Linked with Balanced Scorecards 33


Why Everyone Avoid It?
 Process can be paper-intensive and
time-consuming which requires
excessive administrative efforts.
 Difficult to balance Employees’
Expectations & Organization’s Strategy.
– Avoid honest feedback to prevent conflict.
– No Time - Overloaded work schedule!
– Conflicts on who owns the Appraisal
Outcomes (Confidentiality Policy).
 Concerns of the effective integration
between Employee’s Appraisal, Career
Development, and Reward.
 Unclear Org Structure (Staff working on
Shifts) and reporting relationships
(Projects) which might be confusing! 34


Appraisal Errors
 Past Spillover
 Contrast Effect
 First Impression
 Central Tendency
 Bias or Clone Error
 Leniency or Severity
 Nagging and Begging
 Recent or Short Time-Span
 Halo or Horn Effect (Event)
 Halo or Horn Effect (Person)
 Inappropriate Time & Location
 Appraiser Talks Most of the Time
 Inadequate Observation (No Facts)
 Professional Background and Social or Cultural Influence 35


PM Problems! (Design)
 Not designed based on Performance
Management Methodology
 Lack of Expert’s involvement
 Inadequate support from Management
 No buy-in from Employees
 Not linked to Corporate Business Plan:
– Unclear Objectives & Expectations
– No Accountability
– Low Motivation
 Not linked to Training & Development
Programs or Succession Plans
 Paper-based and manual processes
which requires tedious follow-up from
Supervisors and HR Staff
36


PM Problems! (Practice)
 Unclear Reporting Relationship (Matrix Structure )
 Year-End Surprises and Bad News!
 Poor communication between
Supervisors and Subordinates
 Unclear Rating Scale, Ambiguous
Definitions and Measurement Criteria
 Subjective Performance Appraisals
 Vague Performance Outcomes
 Unrealistic Performance Ratings
 Many Complaints and Grievances
 Used mostly to determine:
– Bonus & Salary Increases
– Promotions, Transfers, Secondment
– Downsizing, Layoffs, Terminations 37


PM Problems! (Outcomes)
 Sales & Profits
 Operational Costs
 Production Efficiency
 Customer Satisfaction
 Business Practices Improvement
 Streamlined Processes
 Quality and Standards
 Utilization of Materials/Equipments
 Incidents & Accidents
 Mistakes, Errors, and Repairs
 Training Costs
 Grievances and Complaints
 Employees Morale & Turnover
38


HR Management’s Faults
 Playing the Appraisal’s Cop!
– Busy with distributing and collecting Forms
– Chasing Supervisors to send Appraisal ASAP
 Thinking one Appraisal Model fits all Jobs
– Using Complex Appraisal Systems/Forms
– No training on constructive feedbacks
– No communication on appraisal advantages
 Believing that a documented Appraisal
will protect the Organization against
Lawsuits by Employees
 Ignoring performance outcomes when an
Employee’s Salary reached the max level
and no longer tied to the appraisal results
(no more merit increase!)
39


Supervisors’ Faults
 Spending more time on performance evaluation
than planning and communication:
– Appraisal is another “must-do” hassle
– Appraisal is an opportunity to Blame!
 Comparing employees with each other
 Suddenly conducting appraisal meeting:
– Canceling or postponing appraisal meeting
– Surprises during appraisal review
 Thinking all employees performance
should be evaluated with the same
procedures and standards
 Playing “too-busy”, “I’m overloaded”,
and “I have other important things to do”!

40


Employees’ Perceptions
 Biased and Unfair Supervisors:
– Discrimination, Favoritism, and Nepotism
– Subjective Performance Ratings (No Facts)
 Networking and Affiliation Influence
 No Training & Development Plans
 No Appreciation and Poor Motivation
 Management is not Walking the Talk
 Wrong Person in the Wrong Place
 Benchmarking & Ranking
(Forced-Distribution)
 Performance Appraisals means Money
and Promotion only
 Appraisal is used to justify Terminations
41


Human Nature Influence
 Employees Culture and Values (Nationality, Religion, Gender, Age)
 Communication Style:
– Aggressive
– Passive
– Assertive
 Language Barriers (jargons)
 Educational Level
 Specialization & Work Experience
 Length of Service (Seniority)
 Position Level & Authority
 Past Appraisal Systems
 Employees Perceptions:
– Expectations & Motivation
– Comfort Zone (new system) 42


Options
 Do Nothing!
 Buy Off-the-Shelf System
 Hire Expensive Consultants
 Do it Internally (Strategic Focus):
– Ensure Common Understanding
of the Needs and Requirements
– Ensure Support from Top Management
– Ensure Line-Management’s Active
Involvement and Buy-In
– Involve Representatives from all
Business Units/Departments
– Develop Project Roadmap and
Master-Plan with Flexible WBS
– Benchmark with Best Practices
– Educate, Communicate, and Communicate More!
43


Key Design Principles
 Design Logical and Practical System:
– Don’t Copy & Paste!
– Reflect Vision, Mission, and Values
 Clarify Roles and Responsibilities:
– Ensure Commitment and Participation
– Ensure Accountability for the Performance
Expectations and Outcomes
– Ensure Ongoing Education/Communication
 Integrate with other Corporate HR
Processes (Reward, T&D, Succession)
 Develop “User-Friendly” IT Solutions
 Monitor, Measure, Track Achievements
 Report Success and Failures (if any!).
 Ensure Continuous Improvements
44


EDCOM Strategy
 Project Identity (Logo & Slogan)
 Change Management Strategy
 Objectives and Desired Outcomes
 Information Cascading Process
 Train-the-Trainer Workshops:
– Subject Matter Experts
– Process Coordinators
 Promotional Items/Gifts
 Motivational Posters
 Project Homepage (Intranet)
 e-Mails & Newsletters Update
 Clear & Consistent Messages
 Rollout & Implementation Sessions
45


Change Management
 Change Strategy: Phase-In or Pilot Implementation?
 Scope of Change:
– Structure, Processes,
– People, Systems
 Resources & Action Plan
 Resisting Change:
– Comfort Zone & Job Security
– Assumptions & Perceptions
– Complex Processes
– Not User-Friendly System
– Language Barriers
– Poor Communication
 Mitigating and Managing Risks
 Outcomes Evaluation & Impact Analyses
46


Key Success Factors
 Executive Management Support
 Line Management Involvement
 Employees Buy-In
 Decision Making & Approval
 Budget & Financial Ability
 Available Tools & Logistics
 Third Party's Involvement
 Teamwork:
– Availability & Dedication
– Workload & Commitments
– Work Schedules & Vacations
 Information and Documents
 Work Materials
47


Monitoring and Audit
 HR Management Responsibility:
– Educate and Communicate
– Monitor and Follow-Up Process
– Provide Ongoing Support
– Suggest System Improvements
 Moderation Panel Responsibility:
– Verify Documented Justifications
– Identify Subjective Outcomes
– Clarify Irrational Decisions
– Ensure Company-wide Consistency
– Validate Regression & Impact Analyses
 Executive Committee Responsibility:
– Approve Performance Outcomes
– Review Executive Reports
– Provide Directions for the Future 48


Executive Reports
 Objective’s Achievements:
– SMART & Consistent,
– Target Dates,
– Weightage,
– Key Performance Indicators.
 Reward Budget vs. Actual.
 Training Requirements.
 Training Days/Hours.
 Succession Planning Pool.
 Development Progress.
 Recognition and Awards.
 Benchmark Best Practices.
 Improvement Areas.
49


Regression Analysis
 Correlation Between Performance Ratings and:
– Function/Discipline
– Sector/Unit
– Job Categories
– Position Grade & Classification
– Salary Level (Min, Mid, Max)
– Nationalities, Gender, Age
– Educational Level
– Years of Relevant Experience
– Length of Active Service (Seniority)
– Appraiser’s Effectiveness
– Disciplinary Actions
– Past Performance
– Absence Rates
50


Roles & Responsibilities
HR Management Supervisors Subordinates
• Develop & Implement • Assign Objectives, KPIs, • Set Individual SMART
Strategic PM System and Priorities for each Objectives
• Train End-Users Subordinate • Clarify Expectations
• Coordinate the Process • Conduct Ongoing Work- (KPIs) with Supervisor
Progress Review • Work as a Team-Player
• Monitor Outcomes
• Provide Constructive and Collaborate with all
• Keep Records and Performance Feedback Colleagues
Compile Analyses/Reports
• Avoid Rating Mistakes • Develop Value-Added
• Assist Supervisors in Results
dealing with Poor • Rationalize and Justify
Performance and Appraisal Decisions with • Report Progress and seek
Competency Gaps Events and Facts Help when needed

• Mediate or Arbitrate • Identify Performance • Participate in the 360°
Employees’ Grievances Deficiencies Assessment (if needed)

• Administer Reward & • Formulate Performance • Exchange Constructive
Recognition Programs and Improvement Plans Feedbacks
Training Courses • Follow-up & Follow-up!! • Be Optimistic!!!
51


52


Contact Us!

Mohamad J. Samman
Founder & Managing Partner
Empower Management Consulting LLC

MJS@EmpowerMC.com
www.EmpowerMC.com

Mobile (+974) 586-1741
Phone (+974) 411-7561
Fax (+974) 479-5917

P.O. Box 11537 - Doha, State of Qatar
53

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