madhu arora, gm (corporate restructuring)
DESCRIPTION
Madhu Arora, GM (Corporate Restructuring). Performance Management System in BSNL. Performance Management System. Performance Management System in BSNL. Group Performance Management System (GPMS). Covers all BSNL employees in 19 group types - PowerPoint PPT PresentationTRANSCRIPT
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Madhu Arora,GM (Corporate Restructuring)
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Performance Management System
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Performance Management System in BSNL
4
Group Performance Management System (GPMS)
Covers all BSNL employees in 19 group types
Each Territorial Circle, non-Territorial Circle, SSA is a Group
Key Performance Indicator(KPI) based score cards designed for objective and transparent assessment of performance
Group score cards have been finalized with targets assigned for all groups for this year
GPMS is aimed at rewarding everyone in the group based on overall Group’s performance
GPMS score to form the basis of PRP, other financial incentives
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As part of GPMS design, all BSNL employees have been structured along 19 groups
Category of groupsCategory of groups Group TypeGroup Type
1. Consumer Fixed Access 2. Consumer Mobility 3. Enterprise 4. New businesses5. Corporate Affairs6. HR (Incl. Legal and Vigilance)7. FinanceSub-totalTerritorial CircleSub-total1. Project Circle2. Maintenance Region3. Inspections (earlier T&D)4. QA5. Telecom Stores6. Telecom Factory7. ITPC8. NCES9. Data N/W10. Training CircleSub-totalSSAs
Total
Number of group typesNumber of
group types
11111117111111111111
101
19
Number of groups
Number of groups
11111117
26265411131113
21330
384
Corporate office
Territorial circles
Non Territorial Circles
SSA
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Organisation redesign
Metrics for appraisal and scoring are drawn from various dimensions to give a fair appraisal
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5
4
3
2
1
WeightingTargetMeasureObjective
Weighting and mix
The appropriate mix of KPIs will depend on the role and on the
importance of each perspective
There should be no more than 5–7 objectives in total; more could result in lack of focus, potentially undesirable trade-offs, and reduced performance
FinancialWhat impact can this person have, in terms of
financial measures?
Customer / MarketHow can this person maximize customer
satisfaction?
Operations / ProcessesWhat are the operations / processes relevant to this person that most drive performance?
Employee developmentWhat can this person do to most actively
facilitate the development of others?
1
2
3
4
Key performance indicatorsKey performance indicators
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KPIs Design Parameters
• Source of Inputs
MOU Between DOT and BSNL for year
2010-11
JD and KRAs defined as part of
organization Design.
Interaction with individual Groups
Previous BBS parameters
Criteria for KPIs definition
GPMS SCORE Card
Weighting Factors
Definition& Formulas
Source of information
Target setting mechanism
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SAMPLE GPMS SCORE CARDS
Score Cards for Corporate Office Units
Circles
SSAs
9
Financial
1. CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.)
2. CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.)
Customer/Market
3. Net adds (by number of subscribers) - Basic (in 000's)
4. Net adds (by number of subscribers) - Broadband (in 000's)
5. Customer satisfaction level (including QoS) (Scale of 1 to 5)
Operations
6. Net adds in Tax capacity (in KC)
7. CDR implementation (No. of SSAs)
8. CCR rate for Landline –local
9. CCR rate for Landline – STD
10. Fault rate (LL)
11. Fault rate (BB)
12. % of faults cleared by next working day (LL)
13. % of faults cleared by next working day ( Broadband)
14. % of new services (LL) provisioned within the norm (7 days)
15. % of new services (BB) provisioned within the norm (7 days)
(Subject to technical pheasibility)
Overall performance
16. Overall performance (on scale of 1 to 5 - to be assessed by CMD)
Total
Group Performance Management System (GPMS) score-cardConsumer Fixed Access
20%
20%
5%
7.5%
7.5%
2.5%
5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
5%
10%
10%
5110.80
2450.40
-2160
2100
3
720
270
58.00
45
7
6
85
83
90
90
3
6814.40
3267.20
-1830
2800
4
960
290
63
49
6
5.4
88
87
94
96
4
8518
4084
-1500
3500
5
1200
305
66.10
51
5.3
5
90
90
97
100
5
xxx
Consumer Fixed Access
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaledNote: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available
V.GoodV.Good ExcellentExcellentGoodGood
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor Performance levels1 Performance levels1
Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores
Annual TargetAnnual Target
8518
4084
-1500
3500
5
1200
305
66.10
51
5.3
5
90
90
97
100
5
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxxxxx
10
ExcellentExcellent
Financial1. Revenue GSM (Rs Cr)2. Revenue GSM (VAS)(Rs Cr)3. Revenue EVDO (Rs Cr)4. Revenue WLL (Rs Cr)5. Revenue Wi- Max (Rs Cr)Customer/Market6. Net adds (by number of subscribers) (GSM - 2G) (in 000's)7. Net adds (by number of subscribers) (GSM - 3G) (in 000's)8. Net adds (by number of subscribers) (Data Card-3G) (in 000's)9. Net adds (by number of subscribers) (CDMA) (in 000's)10 Net adds (by number of subscribers) (Data Card - EVDO) (in
000's)11. Wi-MAX Net adds (By nimbers ) (in 000’s)12. Customer satisfaction level (including QoS) (Scale of 1 to 5) 13. % of call centre complaints resolved within 24 hoursOperations14. Call drop rate (%)15. BTS availability (%)16. Blocked call rate - TCH congestion (%)17. Call handover success rate (%)18. Call set-up success rate (%) Overall performance19. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total
Group Performance Management System (GPMS) scorecardConsumer Mobility
20%10%2.5%2.5%
5%
5%3%2%2%2%
1%5%5%
5%5%5%5%5%
10%100%
10178.4192088.8678
237.6
102001800120900
94.2
6213
63
2.5%96%2.5%94%94%
3
13571.22560118.4
904316.8
136002400160
1200125.6
8284
67
2.2%97%2.2%
94.50%95%
4
169643200148
1130395
170003000200
1500157
10355
70
2%98%2%
95%96%
5
169643200148
1130395
170003000200
1500157
10355
70
2%98%2%
95%96%
5
Consumer Mobility
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available
V.GoodV.GoodGoodGood
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor Performance levels1 Performance levels1
Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores
Annual TargetAnnual Target
xxx
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxxxxx
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Financial1. Revenue from leased circuits and managed services (Rs. Cr.)2. Wholesale revenue from other carriers and service providers, i.e.
bulk deals (e.g. ILD, NLD) (Rs. Cr)3. Revenue from enterprise customers from all other voice and data
offerings (e.g. PRI, mobile CUG, EPABX, leased internet, bulk broadband, data cards) (Rs. Cr.)
Customer/Market4. Number of new Platinum accounts penetrated (minimum business
of Rs 40 lakhs per account p.a.)5. Number of new Gold accounts penetrated (minimum business of
Rs 10 lakhs per account p.a.)6. Customer satisfaction level (including QoS) (Scale of 1 to 5)Operations7. Average time taken to provision leased circuits (days)8. MPLS Network uptime (including edge routers) (%)9. Average restoration time for OFC and systems by regions (hours)10.% ILD bandwidth commissioned vis-à-vis planned11.% OFC route km commissioned vis-à-vis planned12.% OFC system km commissioned vis-à-vis plannedOverall performance13.Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total
V.GoodV.Good ExcellentExcellentGoodGood
Group Performance Management System (GPMS) scorecardEnterprise
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor
40%2 -
-
5%
5%
10%
5%5%5%5%5%5%
10%100%
Performance levels1 Performance levels1
1463-
-
56
157
3
6099%
1260%70%75%
3
1716-
-
64
187
4
4599.50%
1080%80%85%
4
1950
72
230
5
30100%
8100%95%98%
5
1950
72
230
5
30100%
8100%95%98%
5
Enterprise
Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores
1.Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled 2. The performance of Financial KPI no. 2 & 3 cannot be measured at present, hence no targets are being given for them and weightage of KPI 1 has been increased to 40%Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are availableNote: SLA related metric to be introduced in Operations once SLAs are established and enforced as standard practice, and when SLA violations are tracked in MIS
Annual TargetAnnual Target
xxx
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxxxxx
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Infrastructure1. Infrastructure business revenue and savings (Rs. Cr.)2. Number of towers shared with other operators3. Timely commissioning of USO towers (%actual vs. planned)International Business4. Total transaction value (revenue) from international business deals
(minimum value of each business deal Rs. 1 Cr.)5. Number of international business proposals taken to offer or negotiation
stageCivil Electrical Architecture USO6. Business earned from External Works during the course of year (Rs. Cr.)7. Electricity bill saving during the course of the year (in Rs Cr.)8. Effective management of Architectural Services for BSNL-HQ, Territorial
Circles, Telecom Factories & Training Centres (incl. building design, interior design, design standardization, cost reduction, new technologies, energy conservation, etc.) (on scale of 1 to 5 – to be assessed by Circle Heads and BU heads)
9. Timely roll-out of USO towers (%actual vs. planned)Telegraph Services10 Rationalization / closure and modernization (e.g. conversion to CSCs) of
Telegraph infrastructure and systems (esp. low traffic or loss making units), and redeployment of manpower for gainful utilization (on scale of 1 to 5 – to be assessed by BU Heads and Territorial Circle Heads)
Telecom Factory (HO)11. Timely and effective management of Telecom Factory related afGoods
(allocation of items to circles, planning and coordination of production, etc.) (on scale of 1 to 5 – to be assessed by Territorial circle Heads, Project circle heads, Maintenance region heads and BU heads)
Overall performance12. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total
V.GoodV.Good ExcellentExcellentGoodGood
Group Performance Management System (GPMS) scorecardNew Businesses
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor
10%20%
5%
10%
5%
7.5%
5%
5%
5%
5%
10%
10%100%
Performance levels1 Performance levels1
150660060%
3
3
36045
3
60%
3
3
3
200880080%
4
4
48060
4
80%
4
4
4
25011000100%
5
5
60075
5
100%
5
5
5
New Businesses
Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available. Additional revenue KPIs to be added when applicable.
* Figure modified as per 100 days target, (for GPMS)
Annual TargetAnnual Target
25011000100%
5
5
60075
5
100%
5
5
5
xxx
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxxxxx
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Corporate IT1. % of ERP modules for which blueprint document preparation completed
(target is to complete for 10 modules by March 31st, 2010)2. Availability of critical IT systems at the Corporate Office, e.g. LAN,
WAN, corporate email etc. (%)Planning & Monitoring3. % of reports and MIS completed or published in time4. Number of EoIs floated based on planning for forward looking
communication technologies (actual vs. planned)Coordination5. Timely monitoring or review of performance against business plan and
publishing of reports and MIS (actual vs. planned)6. % of Right to Information requests and Public Grievances cases cleared
or answered within the prescribed time frame as per the normsMaterials Management7. Number of tenders finalized vis-à-vis total number of tenders planned +
requisitioned (%)8. % of tenders finalized within the standard time (120 days between
requisition from BU and tender finalization for single stage bid and 180 days for two stage bid)
9. Inspection and followup of Nodes (Exchange Nodes, Broadband Nodes, GSM BTS, WLL BTS)
Regulation10. Timely and effective monitoring of compliance with TRAI regulations in
all BSNL processes incl. tariff, license fees, spectrum etc. (on scale of 1 to 5 – to be assessed by Territorial Circle Heads)
11. Timely signing of interconnect agreements with other operators including review and amendment thereof (within 30 days)
Marketing12. Number of marketing campaigns executed vis-à-vis requisitioned (%)13. Quality of marketing initiatives (brand strength, customer awareness of
BSNL offerings, satisfaction levels etc.) (on scale of 1 to 5)Overall performance14. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total
V.GoodV.Good ExcellentExcellentGoodGood
Group Performance Management System (GPMS) scorecardCorporate Affairs
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor
15%
5%
5%5%
5%
5%
5%
5%
10%
5%
10%
5%
10%
10%100%
TargetTarget
100%
100%
In time 2
90%
90%
90%
70%
5000
5
50%
80%
5
5
Performance levels1 Performance levels1
60%
80%
Delay 2 Wk1
80%
80%
50%
40%
3000
3
30%
60%
3
3
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
80%
90%
Delay 1 Wk1
85%
85%
70%
50%
4000
4
40%
70%
4
4
100%
100%
In time 2
90%
90%
90%
70%
5000
5
50%
80%
5
5
xxx xxx xxx
Corporate AfGoods
Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled
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5%
5%
10%
10%
10%
15%
5%
2.5%
2.5%
2.5%2.5%
10%
5%5%
10%100%
Group Performance Management System (GPMS) scorecardHuman Resources
Manpower planning and Recruitment1. Effectiveness of manpower planning for executives (incl. equalization or
balancing of manpower amongst circles, excluding tenure circles)2. Number of executives (DGMs, MTs, JTOs) recruited during the course of
the year vis-à-vis planned (%) (actual vs. planned)Promotion3. Number of personnel promoted during the course of the year vis-à-vis
planned (%) (actual vs. planned)Transfers4. Timely compliance of transfers and postings orders for executives (% of
transfer and posting orders executed within 45 days from date of issue)Timely completion of ACRs5. % of ACRs for corporate office completed by the required dateTraining6. Total number of persons trained as a percentage of total number of people
in the organization (yearly MoU target)7. % of courses conducted having quality rating more than 85% by the
traineesGPMS8. Timely creation of Corporate Office , Circle office and SSA GPMS
Scorecard for 2010-11.9. Timely mid term evaluation of BSNL CO and Circle GPMS Scorecard for
year 2010-11FPMS10. Timely finalisation of FPMS Scheme along with all cards11. Implementation of FPMS scheme in all Circles.Staff Relation12. Quality of Staff relations - % of mandays out of total mandays lost due to
union disputesEstablishment13.. % of Court cases processed14. % of National Council decisions followed up as per agreed termsOverall performance15. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total
10%
80%
80%
90%
100%
25%
75%
30-Jun-10
15-Nov-10
20-Apr-10100%
1%
100%90%
5
30%
60%
60%
70%
80%
21%
55%
>30 Days
>30 Days
>30 Days90%
3%
80%70%
3
20%
70%
70%
80%
90%
23%
65%
>15 days
>15 days
>15 days95%
2%
90%80%
4
10%
80%
80%
90%
100%
25%
75%
30-Jun-10
15-Nov-10
20-Apr-10100%
1%
100%90%
5
xxx xxx xxx
Human Resources
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled
V.GoodV.Good ExcellentExcellentGoodGood
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor TargetTarget Performance levels1 Performance levels1 Targets
achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores
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Budgeting and Financial control1. Timely monitoring and communication to circles (e.g. quarterly)
regarding adherence on capex and opex budget (actual vs. planned)2. Timely creation, communication and review of financial plan and
budget for BSNL across all circles (actual vs. planned)Corporate Accounts3. Timely closing of annual and quarterly accounts for BSNL and
conducting external audit (actual vs. planned)Investments
4. ROI of BSNL's funds management activities (banking, treasury etc)Taxation5. Timely filing of statutory and regulatory returns (% actual vs.
planned)6. Effectiveness and efficiency of settlement of tax related legal cases
against BSNL (at COD level) (actual vs. target)Revenue Assurance7. Planning and implementation of Revenue assurance policy, process
and guidelines (on scale of 1 to 5 – to be assessed by BU Heads)Transfer Pricing8. Effectiveness of Transfer Pricing policies and guidelines incl cost,
pricing and taxation issues, based on proposals of transfer pricing from respective BUs for various services (on scale of 1 to 5 – to be assessed by BU Heads)
Procurement Finance9. Ratio of number of cases in which financial evaluation or financial
appraisal / advice not accepted by approving authority to total number of cases for which appraisal / evaluation is carried out (%)
Internal Audit10. % of Circles, SSAs, non-territorial circles and units of Corporate
Office for which internal audit (both proprietary and regulatory) conducted (actual vs. planned)
Finance Personnel1. Effectiveness of managing HR related issues for Finance cadre (incl.
training, promotions, manpower planning etc.) (on scale of 1 to 5 - to be assessed by Finance Heads at Territorial Circles)
Overall performance3. Overall performance (on scale of 1 to 5 – to be assessed by CMD)Total
V.GoodV.Good ExcellentExcellentGoodGood
Group Performance Management System (GPMS) scorecardFinance
Key Performance Indicators (KPI) Key Performance Indicators (KPI)
Weight-ing
factor
Weight-ing
factor
5%
5%
10%
10%
10%
5%
10%
10%
10%
10%
5%
10%100%
TargetTarget
15 days from finalisation ofQuarterly AccountsRE compilation by 15th October, BE by 28th Feb
Adoption of annual accts by Board by 30th June
Avg ROI for the year-4.5%
Filing IT Ret. by 30thSepSubmit cases to COD in 45 days from rec. from Circles
5
5
less than 5 %
100%
5
5
Performance levels1 Performance levels1
30 days
15 days
15 days
1%
30 days15 days
3
3
15%
75%
3
3
21 days
7 days
7 days
4%
15 days7 days
4
4
10%
90%
4
4
15 days
Within time
Within time
4.50%
within timewithin time
5
5
5%
100%
5
5
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxx xxx xxx
Finance
Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled
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Group Performance Management System (GPMS) scorecardTerritorial Circle
Group Group level weightage
S. No. Dimension KPIWeightage
Target Performance Levels1
Target Achiev
ed
Marks Achieve
d
Weighted
Score Good V.Good Excellent
Consumer Fixed Access
25%
1 Financial CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.) 20% 692.48 415.49 553.98 692.48 2 Financial CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.) 20% 393.00 235.80 314.40 393.00
3Customer / Market
Net adds - (by number of subscribers) Basic (in 000's)5%
-118.67 -170.88 -144.78 -118.67
4Customer / Market
Net adds - (by number of subscribers) Broadband (in 000's) 7.5%
350 210 280 350
5Customer / Market
Customer satisfaction level (including QoS) (Scale of 1 to 5)7.5%
5 3 4 5
6 Operations Net adds in tax capacity(in KC) 2.5% 212 127 170 212 7 Operations CDR Implementation (No. of SSAs) 5.0% 21 12 17 21 8 Operations CCR rate for Landline local 2.5% 69.8 60.0 65.0 69.8 9 Operations CCR rate for Landline STD 2.5% 54 46 51 54 10 Operations Fault rate LL 2.5% 4.2 7.5 5.5 4.2 11 Operations Fault rate BB 2.5% 5% 6% 5.4% 5%
12Operations % of faults cleared by next working day LL 2.50
%90% 85% 88% 90%
13Operations % of faults cleared by next working day BB 2.50
%100% 90% 97% 100%
14Operations % of new services (LL) provisioned within the norm (7 days for LL) 2.50
%99% 90% 95% 99%
15Operations % of new services (BB) provisioned within the norm (7 days of BB)
[subject to technical feasibility]5.00
%100% 90% 96% 100%
16Operations Overall performance (on scale of 1 to 5 - to be assessed by Director -
CFA)10%
5 3 4 5
Consumer
Mobility30%
17 Financial CM revenue (Rs. Cr.) 40% 1458.83 1312.95 1385.89 1458.83
18Customer / Market
CM Net adds - GSM (by number of subscribers) (in 000's) 13% 2497.00 2247.30 2372.15 2497.00
19Customer / Market
CM Net adds - CDMA (by number of subscribers) (in 000's) 2% 70 63 66.5 70
20Customer / Market
CM Net adds - WiMAX (by number of subscribers) (in 000's) 5% 80.80 48.48 64.64 80.80
21 Operations BTS availability (%) 10% 98% 96% 97% 98% 22 Operations Call drop rate (%) 10% 2% 2.5% 2.2% 2% 23 Operations Blocked call rate - TCH congestion (%) 10% 2% 2.5% 2.2% 2%
24Operations Overall performance (on scale of 1 to 5 - to be assessed by Director -
CM)10% 5 3 4 5
17
Group Performance Management System (GPMS) scorecardTerritorial Circle
Enterprise
15%
25Financial Enterprise BU revenue (Rs. Cr.) 40% 156.86 117.65 138.04 156.86
26Customer / Market
Number of new Enterprise Gold accounts penetrated 20% 20 14 17 20
27Operations MLLN / MPLS network uptime (%) 15% 98% 96% 97% 98%
28Operations Average provisioning time for leased circuits(no. of days) 15% 30 90 60 30
29Operations Overall performance (on scale of 1 to 5 - to be assessed by Director -
Enterprise)10% 5 3 4 5
Other 20%
30Financial New Businesses revenue (Rs. Cr.) 15% 17 8.5 12.75 17
31Financial Budget adherence on opex (% actual spend vs. budgeted) (on items
excluding those in schedule P)15% 100% 115% 105% 100%
32 Financial Operating ratio (%) 15% 58% 75% 68% 58%
33
Financial Overall assessment on Finance related issues, including budget adherence, financial planning, accounting, revenue assurance etc. (on scale of 1 to 5 - to be assessed by Dir-Finance)
15% 5 3 4 5
34Customer / Market
Customer satisfaction level (including QoS) (Scale of 1 to 5) 20% 5 3 4 5
35
Employee development
Overall assessment on HR related issues, including training, recruiting, promotion, transfers etc. (on scale of 1 to 5 - to be assessed by Dir-HR)
20% 5 3 4 5
Overall performance
10% 36Overall assessment
Overall performance (on scale of 1 to 5 - to be assessed by CMD) 100% 5 3 4 5
1. Marks for Good rating = 60, Very Good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very Good and between Very Good and Excellent would be linearly scaled
CFA - CO Nodal designate: Mr. Tarun Kumar (GM, BP - CFA)CM - CO Nodal designate: Mr. B.N. Mishra (GM, Product & Pricing)Enterprise - CO Nodal designate: Mr. S. K. Seth(GM, Business Planning)New Businesses - CO Nodal designate: Mr. R. P. Nigam (Sr.GM, TF - NB)HR - CO Nodal designate: Mr. Neeraj Verma (GM, Training)Finance - CO Nodal designate: Mr. K. R. Tiwari (GM, Transfer Pricing, Revenue Assurance & Finance Personnel)Note: i) Assessment by CMD and all directors of the BSNL board will be based on qualitative measures defined for the parameters
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Group Performance Management System (GPMS) scorecardSSA
Group
Group level
weightage
S. No. Dimension KPI Weightage
Target
Performance Levels1
Target
Achieved
Marks Achieve
d
Weighted
Score
Good
Very Good
Excellent
Consumer Fixed
Access25%
1 Financial CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.) 20%
2 Financial CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.) 20%
3 Customer / Market Net adds - (by number of subscribers) Basic (in 000's) 5%
4 Customer / Market Net adds - (by number of subscribers) Broadband 10%
5 Customer / Market Productivity of Sales Associates of SSA in number of connections/Active SA per month 5%
6 Operations CCR rate for Landline local 2.5%
7 Operations CCR rate for Landline STD 2.5%
8 Operations Fault rate LL 2.5%
9 Operations Fault rate BB 2.5%
10 Operations % of faults cleared by next working day LL 5%
11 Operations % of faults cleared by next working day BB 5%
12 Operations % of new services (LL, BB) provisioned within the norm (7 days for LL, 7days for BB) 10% 13 Operations Timely implementation of CDR project (actual vs. planned) 5%
14 Operations Overall performance (on scale of 1 to 5 - to be assessed by Circle Head) 5%
Consumer Mobility 30%
15 Financial CM revenue (Rs. Cr.) 40%
16 Customer / Market CM Net adds - GSM (by number of subscribers) (in 000's) 15%
17 Customer / Market CM Net adds - CDMA (by number of subscribers) (in 000's) 5%
18 Customer / Market CM Net adds - Wi-Max (by number of subscribers) (in 000's) 5%
19 Customer / Market % of Non BSNL Retailers converted in to BSNL Retailers vis-à-vis number of retailers serveyed in SSA. 5%
20 Customer / Market True reflection of secondary sale of SIMs in sanchar soft ,for SIM selling and recharge selling retailers. 5%
21 Operations BTS availability (%) 20%
22 Operations Overall performance (on scale of 1 to 5 - to be assessed by Circle Head) 5%
19
Group Performance Management System (GPMS) scorecardSSA
Enterprise 15%
23 Financial Enterprise BU revenue (Rs. Cr.) 40%
24 Customer / Market Number of new Enterprise Gold accounts penetrated 20%
25 Operations MLLN / MPLS network uptime (%) 15%
26 Operations Average provisioning time (no. of days) 15%
27 Operations Overall performance (on scale of 1 to 5 - to be assessed by Circle Head) 10%
Other 20%
28 Financial New Businesses revenue (Rs. Cr.) 20%
29 Financial Budget adherence on opex (% actual spend vs. budgeted) (on items excluding those in schedule P) 15%
30 FinancialOverall assessment on Finance related issues, including budget adherence, financial planning, accounting, revenue assurance etc. (on scale of 1 to 5 - to be assessed by Circle Head)
20%
31 Customer / Market Customer satisfaction level (including QoS) (Scale of 1 to 5) 20%
32 Performance mangement %Implementation of Field Performance Management system on time 10%
33 Employee development
Overall assessment on HR related issues, including training, recruiting, promotion, transfers etc. (on scale of 1 to 5 - to be assessed by Circle Head) 15%
Overall performance 10% 34 Overall
assessment Overall performance (on scale of 1 to 5 - to be assessed by Circle Head) 100%
1. Marks for Good rating = 60, Very Good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very Good and between Very Good and Excellent would be linearly scaled Note: Targets would be set by nodal designate at circle office under the guidance of respective functional heads and the CGM. The nodal designates at SSAs are required to coordinate with the respective circle office nodal designatesfor any clarifications/further alignment as per the direction of SSA head.
20
Explanation of target and performance level for a positive parameter - Revenue
0
20
40
60
80
100
0 50 100 150 200 250 300 350 400
Revenue (Rs. Cr.)
Marks achieved
Marks achieved for revenue of a group between 0 and 400 Cr.Marks achieved for revenue of a group between 0 and 400 Cr.
8080 1001006060
TargetTarget
300
Performance levelsPerformance levels
100 150 300
Illustration of defining performance levelsIllustration of defining performance levels Illustration of marks vis-à-vis achievementIllustration of marks vis-à-vis achievement
Marks AchievedMarks AchievedTarget AchievedTarget Achieved
50100140200300350
06076
86.7100100
60 marks
80 marks
100 marks
0 marks
100 marks
21
0
20
40
60
80
100
Marks achieved
10 11 12 13
Average restoration time (hrs)
5 14 15 16 17 18 19 206 7 8 9
Explanation of target and performance level for a negative parameter – Average restoration time
Marks achieved for average restoration time of a group between 8 and 16 hrs
Marks achieved for average restoration time of a group between 8 and 16 hrs
8080 1001006060
TargetTarget
8
Performance levelsPerformance levels
16 12 8
Illustration of defining performance levelsIllustration of defining performance levels Illustration of marks vis-à-vis achievementIllustration of marks vis-à-vis achievement
Marks AchievedMarks AchievedTarget AchievedTarget Achieved
2016141286
0607080
100100
100 marks
80 marks
60 marks
100 marks
0 marks
22
Organisation redesignLINKAGES TO PMS
GPMS is presently proposed to be linked to PRP, PLINon – Financial Awards- Trophies, Certificates in FPMS
Important to link PMS to TransfersPromotionsTraining / Travel opportunities
Performance management system can be a key HR tool
Career management
• Promotion policy• Transfers
Non-financial rewards
• Top-performer program• Material rewards / perks• Training / travel
opportunities
Financial incentives
• Bonus scheme• Variable compensation• Other benefits
Recognition
• Feedback• Formal recognition in
company / other forums
Performance Management System
Source: BCG analysis
23
Linkage of GPMS to PRP
DPE Guidelines
How can PRP be worked out?
24
Organisation redesign
GPMS could potentially be the basis for PRPIncentive payout pool available will be based on the company's financial performance
Profit before Tax (PBT) for
current year
Incremental PBT (Current –Previous)
X
X
3%
10%
Total payout pool available
(cannot exceed 5% of current year PBT)
Contributes to 40% of payout pool (ceiling
2% PBT)
Contributes to 60% of payout
pool
+
1. Ceiling of 2% of current year PBTSource: Department of Public Enterprise (DPE) guidelines
A
B
DPE guidelines for PRP (Performance Related Pay)DPE guidelines for PRP (Performance Related Pay)
25
Organisation redesign
Individual payout to be based on a combination of factors
1. PRP eligibility based on MoU rating as per DPE guidelines: Excellent (100%), Very Good (80%), Good (60%), Fair (40%), Poor (0%). 2. Example: if available payout pool is Rs. 30 Cr. and total possible payout is Rs. 40 Cr., pro-rating factor is 30/40 = 0.75Source: Department of Public Enterprise (DPE) guidelines
PRP calculations
PRP from current year profit
PRP from incremental profit
Total
PRP split
60%
40%
Base Salary(Rs.)
MoU rating1
Perfor-mancerating
Grade level
Pro-rating factor
Payout(Rs.)
1 2 3 4 5 6
To be calculated
from current
and previous year PBT
Scaling factor based
on available payout pool2
To be calculated
from current
and previous year PBT
Based on DPE
guidelines
A
B
Base salary of
the individual
Company MoU
ratingX X
Individual's
Performance rating
PRPceiling for
each grade
level as per DPE
guidelines
X X X
Based on GPMS
scorecard rating
26
Organisation redesign
Groups within a category will have a 'bell-curve' distribution based on performance
Group category
Corporate Office
Territorial Circles
Non territorial circles
SSA
Total
Excellent (15%)
1
4
3
50
58
V. Good (20%)
1
5
4
66
76
Good (25%)
2
6
5
82
95
Fair (30%)
2
8
7
99
116
Below Par
(10%)
1
3
2
33
39
Distribution of Groups based on performance
Total no. of units
7
26
21
330
384
27
Organisation redesign
Performance rating and distribution of employees across ratings feeds into incentive payout calculations
Rating
Excellent
Very Good
Good
Fair
Below Par
% employees
15%
20%
25%
30%
10%
% employees falling under different ratings (bell curve distribution1 )
Rating based on scorecard assessment
Excellent
Very Good
Good
Fair
Below Par
PRP eligibility
100%
75%
50%
25%
0%
PRP eligibility for different ratings
4
1. DPE guidelines recommend following a "Bell curve approach"Source: Department of Public Enterprise (DPE) guidelines
Bell curve will be applied at the group level for Corporate Office, Territorial circles, Non-territorial circles, SSAs
28
Organisation redesign
Individual payout to be based on a combination of factorsIncludes company rating, individual performance rating, grade level and payout pool available
PRP calculations
PRP from current year profit
PRP from incremental profit
Total
PRP split
60%
40%
Base Salary(Rs.)
5 L
5 L
MoU rating
Fair(40%)
Fair(40%)
Perfor-mancerating1
Good(50%)
Good(50%)
Grade level
E-5(50%)
E-5(50%)
Pro-rating factor
0.90
0.90
Payout(Rs.)
27k
18k
45k
1 2 3 4 5 6
1. Individual performance rating to be initially based on Group Performance rating
Based on DPE
guidelines
Example - Representative numbers only
Current year PBT = 2000 cr., Previous year PBT = 1500 cr.Current year PBT = 2000 cr., Previous year PBT = 1500 cr.
29
FPMS
FIELD PERFORMANCE MANAGEMENT SYSTEM
30
Objectives for Field-level Performance Management System
• KPI based mechanism for measuring & rewarding performance at the field level
• 5 critical job families to start with• Consumer Mobility sales (retailer managers)• Consumer Fixed Access sales (sales associate)• CSC• Exchanges (PSTN & Broadband) – internal & external plant• SSA level consumer mobility ops team
• Additional job families will be added over time• FPMS already launched
B
31
Combination of individual and group based approach
Coverage at Group level / Individual levelCoverage at Group level / Individual levelJob family / Group Job family / Group
Sales – Consumer Mobility (Retailer Manager)
Sales – Consumer Fixed Access
Customer Service Centre
Fixed Line & Broadband – Exchange
SSA – Consumer Mobility Team
Organization coverageOrganization coverage
Performance to be recognized at individual level
Performance to be recognized at Group level
Sales roles
Operational roles
Customer centric role
Key Performance Indicators have been defined for measuring performance of Job families / Groups
1
2
3
4
5
B
32
Group based Awards in FPMS
1. For exchanges and CSCs, topper group one each in each category of exchange and CSC would be awarded in all SSAs. (Swarna CSC and Swarna Exchange in each category)
2. For consumer mobility operations teams, top 3 groups would be awarded in every circle.
3. The scheme for exchanges and CSCs would be driven at the SSA level and for the consumer mobility operations teams at the Circle level. The final decision on awards at SSA level should be made by the SSA Head after taking into account the KPI scores of all Exchanges and CSCs in the SSA.
4. The final decision on awards at the Circle level should be made by the PGM/GM (Consumer Mobility) after taking into the account the KPI scores of all SSA-level Consumer Mobility Operations teams in the Circle.
5. The PMS team at the corporate office would be responsible for the overall coordination
33
Proposed Awards for CSCs
Name of award
LevelType of Category
FrequencyAward for group
Award for individuals in group
Basis for decision
Swarna CSC(One in each Category)
Within SSA Type-
I,II,and III
Quarterly Certificate of Merit, with Rolling Trophy
Certificate Highest score on KPIs for CSCs
34
Proposed Awards for Circle-level Consumer Mobility Operations teams
Name of award
Level FrequencyAward for group
Award for individuals in group
Basis for decision
Swarna padak
Within Circle
Quarterly Certificate of Merit ,with Rolling Trophy
Certificate Highest score on KPIs for CM teams
Rajat padak
Within Circle
Quarterly Certificate of Merit ,with Rolling Trophy
Certificate 2nd Highest score on KPIs for CM teams
Kansya padak
Within Circle
Quarterly Certificate of Merit ,with Rolling Trophy
Certificate 3rd Highest score on KPIs for CM teams
35
Proposed Awards for Exchanges
Name of award
LevelType of Category
FrequencyAward for group
Award for individuals in group
Basis for decision
Swarna exchange(One in each Category
Within SSA
Cat-A,B,C,D
Quarterly Certificate of Merit, with Rolling Trophy
Certificate Highest score on KPIs for exchanges
36
Efficiency of bill collection1. Number of bills collected per day / Number of cash counters in
the CSC
Sales leads generated per employee3
2. Number of sales leads generated / Number of employees in a CSC
Waiting time of customers in the queue3. Waiting time in queue during the pay by due dates (based on
survey feed back)Efficiency of Survey4. % of survey form collected to total number of bills collected.
Customer feedback on qualitative aspects5. Average of rating given on a scale of 1 to 5 by customers.
Customer survey to include factors including (but not limited to): i. Responsiveness of staff to customer requests – change of
address, change of plans, disconnection, etc.ii. Knowledge of the people in the CSC about products and
plans iii. Availability of tariff plans and information brochures in the
CSCiv. Availability of products in the CSCv. Behavior and attitude of the staffvi. Cleanliness of the centre
Total
Field Performance Management System (FPMS) scorecardCustomer Service Centres
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor
25%
15%
20%
10%
5%
5%
5%
5%5%5%
100%
TargetTarget
302
152
< 5 min.
Key Performance Indicators Key Performance Indicators
1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled 2. Representative numbers only – targets to be fixed3. For CSCs where lead generation is not feasible , 25% weightage will be divided as 10 %, 10 % and 5% amongst KPI 1,3 and 4 respectively.
Sub- Weighting
factor
Sub- Weighting
factor
GoodGood ExcellentExcellentFairFair
Performance levels1 Performance levels1
xxx
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxx xxx xxx xxx xxx
Targets and ScoresTargets and Scores
Customer Service Centres (CSCs)
30%
37
Time to provision new service1. % of new services (Land Line) provisioned within the norm (7 days for new LL)2. % of new services (LL, BB) provisioned within the norm (7 days for BB where
LL exists, 15 days for new LL + BB)Fault rate (%)3 Number of faults per 100 active connections (LL)(in %)4 Number of faults per 100 active connections (BB)(in %) Repeat fault rate (on same number) within 30 days5. Number of faults on a number which has been repaired once (in the last 30
days) per 100 active connections- Land Line6. Number of faults on a number which has been repaired once (in the last 30
days) per 100 active connections- Broad bandFault clearance turn-around time7. % of faults cleared within 24 hours(Land Line)8. % of faults cleared within 24 hours (Broad band) Time taken to service/execute requests9. % requests for local shift of LL executed within 3 days10. % requests for local shift of BB executed within 3 days11. % requests for inter-exchange shift of LL executed within 5 days12. % requests for inter-exchange shift of BB executed within 5 days13 % requests for termination of connection executed within 7 days (LL)14. % requests for termination of connection executed within 7 days (BB) Management of co-located BTSs15. BTS availability (%)16. Number of faults/interruptions per BTS due to passive infrastructure failures in a
month (Average fault rate over a quarter/year will be taken)Total
GoodGood ExcellentExcellentFairFair
Field Performance Management System (FPMS) scorecard ( Exchanges)
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor
5%
10%
5%
10%
10%
10%
10%10%
2%3%2%3%2%3%
10%
10%
100%
TargetTarget
Performance levels1 Performance levels1
xxx
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxx xxx xxx xxx xxx
1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled Note: The data for the above will be obtained from MIS reports generated in DotSoft, other softwares installed in SSAs;
38
BTS availability1. BTS availability (%) - for sites where responsibility is with SSA CM
team2. BTS availability (%) - for sites where responsibility is with
respective CFA teams at exchanges
Fault rate3. Number of faults per BTS due to passive infrastructure failures in
a month (Average fault rate over a quarter/year will be taken) – for sites where responsibility is with SSA CM team
Fault clearance turn-around time 4. % of faults cleared in 6 hours – for sites where responsibility is
with SSA CM team
BTS upkeep 5. Subjective assessment given by GM CMTS (O & M) at circle
based on (but not limited to): (1) Earthing at BTS site (2) Installation and upkeep of lightning arrestor (3) Proper functioning of aviation light (4) Proper working of "tower up" beep (5) RF cable safety (6) Cleanliness of site
Total
Field Performance Management System (FPMS) scorecardSSA consumer mobility operations team
Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting
factorWeighting
factor
35%
15%
30%
10%
10%
100%
TargetTarget
Key Performance Indicators Key Performance Indicators
1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled Note: The data for the above will be obtained from MIS reports generated in DotSoft, other softwares installed in SSAs
GoodGood ExcellentExcellentFairFair
Performance levels1 Performance levels1
xxx
Targets achievedTargets
achievedMarks
achievedMarks
achievedWeighted
scoreWeighted
score
xxx xxx xxx xxx xxx
Targets and ScoresTargets and Scores
SSA Consumer Mobility Operations Team
39
Individual based incentives in FPMS-Illustrative Key Performance Indicators for sales roles in Consumer Fixed Access
1. Sales achieved for Landline
2. Sales achieved for Broadband
3. Number of connections recovered
4. Sales achieved for EVDO or 3G cards or FWTs
2
40
Illustrative Key Performance Indicators for sales roles in Consumer Mobility
1. Sum of SIMs sold by franchisee whose area is being surveyed by the Retailer Manager
2. Sum of recharge value sold by franchisee whose area is being surveyed by the Retailer Manager
3. Number of retailers visited by the retailer manager
1
41
Individual PMS (IPMS)
Being targeted for DGM level officers and above
Gradually, the system to be expanded to other levels
Requires complete IT support to handle PMS of this size
PMS module being planned in ERP system
Finally, an individual’s performance to be combination of GPMS and IPMS
42
End of Presentation