bin an i goal setting performance management 28205

7/27/2019 Bin an i Goal Setting Performance Management 28205

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GenericGoal SettingandPerformance ManagementProcess inBinani Group

February 12, 2005


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Scope Organisational Goal Setting Process 2005-06

Concept explained; integration with Business Plan

Workshops at :ZincCement ; andGlass Fibre businesses

Goal Setting process

Freezes Organisational Goals 2005-06 Designs templates for Individuals, Groups and Function as well

Measurement and Appraisal Process

Reviewing Feedback Mechanism and Employee Self Development

Rewards, Ac

colades, Appreciations

RUN TIME : Mar 2005-10 April 05; Performance Assurance @ RLSs initiative :May 05 &(H1) Oct 05 during the Performance Review process


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Organization Without a Formal Goal Setting ProcessFunctional

Boundary OrganisationBoundary

Mis-aligned efforts to meet the environmental challenges

Departments with strong leaders may create their own alignments/ bureaucracy,

not necessarily aligned to the direction of corporate vision and strategy.


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Basics

START FROM THE BASICS

Targets, Objectives, KRAs, Business Goals, Business Plan

Identify and define for each business- Key Business Performance Indicators

- Key Business Performance Drivers

- Key Cost Drivers Communicate to the people; motivate, coach and guide them to target work to reach the

destination

Practice self-reliance, achieve orientation, creativity, speed

CONSTANT ALERT on:

Our Competitors SWOT analysis of competitors: their strategies, our counter-measures

OurRevenue streams

Plotthe valuedeliverers; so also the leakages(sources of cash loss, revenue loss etc.)

Learning process: learning the markets, competitors and new opportunities, new skills


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Organization With a Formal Goal Setting Process

Everyone moves

towards the

organisation

Vision and

Mission

Non-existent or very weak Departmental boundaries

Practiceboundarylessnes and professionalism at work: intra and inter-Function(Dept)

Partnerships and teamwork a way of life reenergised work environment

Everybody is pulling the organisation in the same direction to give that extra


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The Purpose of Goals in the Company Ensure that we all work towards a common purpose, namely the success of thcompany in achieving its long term Mission Burst Bureacracy - call all across the organisation Learn to work outside their functional silos as well Meet the needs of our colleagues who are also engaged in supporting the lonterm goals of the company Look to the future, to anticipate change and challenges to be ready for them Use our resources efficiently; single KRA of everyone address -Resource Loss Tap the organisational synergy, of all people, cutting across invisible functionboundaries set, perhaps, unknowingly by themselves ! Usherin anatmosphere of feeling of commonality of purpose Work in unison with colleagues, not at cross purposes


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efining Goals

TARGETS with specific measures andaccompanying ACTION PLANS set for aspecified future DATE with exactingPRECISION as the keyword and TIMELINESS inachievement( Roles, Responsibilities and Accountabilitiesand Achievement Ownership defined)


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An Overview of Goals

Strategic LevelFunctional Level

Team LevelIndividual Level

GOALS

Focus on efficiency (i.e. doing thingsfaster and smarter)

Focus on effectiveness (i.e. doing theright things)Contribute to Business Goals and Key

customers GoalsHave Quality requirements, indicatorsand measures Focus on Quality, Quantity, Precisionand Timeliness & Follow-up


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Functional ObjectivesTwo possible sources of information:1. Business as usual / chalte bhihowith little/ no improvements

- derived from job description/ lack of it !2. Breakthroughs required to achieve the Short Term and LongTerm Goals- derived from organisational challenges and priorities

- taps the organisational synergies through people- ushering in a self-managing and tracking performanceculture- self motivated people in self managed teams achievetargets- shares the joys of achievements , as well


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The Balanced Scorecard Framework to Translate Visionand Strategy into Operational Terms

VisionAndStrategyInternal Business ProcessTo satisfy our shareholdersand customers,what businessprocesses must we excel at?

FinancialTo succeed financially, howShould we appear to ourShareholders ?

CustomerTo achieve our vision,how should we appearto our customers?

Learning and GrowthTo achieve our vision,how will we sustain ourability to change and improve?


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The Balanced Scorecard FrameworkThe Art of Selecting and Designing Measures

Core Financial Measures ReturnonInvestment Economic Value Added Profitability Revenue Growth / Mix Cost Reduction ProductivityCore Internal Measures Quality Response Time Cost New Product Introductions Innovation & Creativity

Core Customer Measures Market Share Customer Acquisition Customer Retention Customer Profitability Customer SatisfactionCore Learning and Growth Measures Organisational Learning & Employee

Development Employee Satisfaction Employee Retention Employee Productivity


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How To Write Good ObjectivesS : Specific + Stretched + Speed for each activityM : MeasurableA : Aggressive + AchievableR : Related to Corporate Vision and MissionRelevant for the Organisation, Function, Team, JobHolderT : Time bound


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Sample MeasuresQuantity Quality Cost Time

No. of customers/clientsserved per day, month, etc.No. of items(forms,reports, orders) processedper day etc.No.cases/complaintshandled per dayPercentage of employeeparticipationNo. of hours spent foremployee & customercommunicationNo. of work hours lost toabsenteeism per monthVariance Analysis &Corrective Action/ RedialPlan

Error rate/ ratioPercentage of orderswithout errorsRate of employeeturnoverPercentage of itemsrequiring reworkDowntime percentageOverall EquipmentEfficiency ( OEE)Variance Analysis &Corrective Action/Redial Plan

Percentagevariance from plan/budgetRupees as line itemin budget (forovertime or othercost)Rupees saved overprevious periodNo. of hoursrequired to completeeach unitEfficiency pernegotiationVariance Analysis &Corrective Action/Redial Plan

No. or percentage ofdeadlines missedNo. or percentage ofcalls answered withinspecified timeNo. of days tocomplete a task/activityTurnaround timeFrequency of anevent each month/quarterVariance Analysis &Corrective Action/Redial Plan


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Goal/ Objective Setting SampleFormatSl.No.

Goal / Objective MeasuresTarget/Date for thecurrentyearKey Actions toAchieve the GoalR,R,A,Q,Q,P,T*

Result Deliverables

* Role, Responsibility, Accountability, Quantity, Quality,Precision,


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Types of Performance ObjectivesMost Appropriate for a Specific JobShort-range objectives can be accomplished within theperformance cycleoften within a few weeks or a few monthsLong-range objectives might require a full performance cycleor longer to complete, (and will probably have to be dividedinto two or three objectives, or spread over several milestones) Routine or Maintenance objectives will help you maintain performanceat currently acceptable levels, or keep things at a minimum standardOrganisational objectives contribute directly to the wider organisation(such as establishing a new procedure within a unit)Problem-solving objectives can be set to improve performance thathas slipped below acceptable levelsInnovative objectives are created to stimulate creativity or new thinking,or take a fresh approachPersonal Development objectives are meant to enhance learning and theemployees self development and his/her long-term performance resultsCross-functional Synergy objectives aremeant to release the synergies of peopleso that, thatextra leverages the human potential for the organisation to be


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Performance management is definedas a proactive partnershipbetween employees and managementthat helps employees performat their best and align theircontributionswith the goals, values,and initiatives of the organisation."

What Is Performance Management System

Much of it is dependant on the employee putting the heart, bodyand soul to it so that he is emotionally contracted into it !!!


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Benefits of a GoodPerformance Management System

1. Improved performance2. Improved communication3. Organisation alignment4. Organisation capability & Capacity-building of people5. Reduced management time6. Increased employee self-management; less bureaucracy, less levels,less order-taking, less inefficiencies - only reporting RESULTS !!!7. Increased employee satisfaction


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Performance Management isn't something you do toemployees, its something you do with themit's a partnership Role, Role clarity, Role effectiveness conforming to the level held inthe organisation and demonstration of leadership Performance Management is about maximising the potential of theteam Performance management is about getting employees to takeresponsibility and accountability for managing their ownperformance Effective Performance Management System allowsemployees the freedom they need to do their best work without

worrying that you will second-guess their decisions and actions

Characteristics ofAn effective Performance Management System


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Typical Appraisal Process

MidYear

YearStart

YearEnd

Target timeMeasures

Process Owner

Appraisee&

Appraiser

Appraiser&

Appraisee

Appraisee,Appraiser

&ReviewTeam

Orgn. TargetsDept. Goals

JDs

GoalSetting

KRASheet

KRA SheetIncident File

Mid yearreview

KRA SheetIncident FileReview Sheet

SelfAppraisal,

Appraiser &Review Team

Mid YearCourse

Correction

Appraisee AppraiserDiscussions, Employee

Development Action PlansNext Years KRAs


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Other Typical Uses ofPerformance Management SystemBesides Improving Performance of Employees

1. Salary Increases/ Increment2. Other Rewards3.Job Rotation4. Promotion5. Employee Self-Development Action Plans6. Competency Mapping, Training Needs Assessment7. Career Planning8. Succession Planning


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Critical Issues in Effective Implementation of PMS1.0 Goal Setting :1.1 Alignment with corporate goals1.2 Linkage of strategic planning and business plans with functional/ individual g1.3 How seriously is taken by different layers of managers?1.4 How much value add is done by the immediate boss?1.5 How well these are written? SMART1.6 Weightage given to different goals

1.7 Personal Development goals in addition to business goals2.0 Review and Monitoring Process2.1 Ongoing feedback2.2 Formal and informal reviews2.3 Feedback Giving Skills2.4 Coaching Relationship2.5 Organisation Culture of openness, trust and credibility3.0 Performance Assessment Events3.1 Timing and time allotted3.2 Preparation by all concerned3.3 Skills

3.4 Facilitative stance3.5 Review of Development Needs


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Critical Issues in Effective Implementation of PMS4.0 Performance Rating Normalisation:4.1 Bell Curve Syndrome; balancing of assessments, assessment centres4.2 Organisation will to adhere to the process decided4.3 Managers skill and courage to defend their position both upwards anddownwards5.0 Rewards and recognition

5.1 Ongoing rewards5.2 End of the year awards increments, bonuses, stock options5.3 Career progression moves5.4 Succession planning6.0 Review against a set of competencies6.1 Organisational values6.2 Core competencies required for organisations success6.3 Functional and Individual Competencies for superior performance in a role

bin an i goal setting performance management 28205

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