pms guidelines 2
TRANSCRIPT
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LeadingFinancial
Objective
Internal
Quantitative
Long term
Lagging
Non-
financial
SubjectiveExternal
Qualitative
Short term
Measures must be balanced
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How many performance measures?
Too many measures guarantee you have virtually noneToo many measures guarantee you have virtually none
Measures should be Focused on overall corporate strategy
Appropriate to their purpose: what and who are you measuring?
In the right language: translating into metrics that make sense to theindividuals work
Aligned with an incentive for the individual towards motivation and
commitment to achieving objectives
Refined only when necessary to realign with strategy
Focused on information, not data
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Sample measures Financial Net profit Revenue growth ROI Return on capital employed Shareholder value
Customer Benchmark processes Client surveys Provide value for money Number of fee-based products
offered % of sales from new products
Internal processes New product revenue
Cross sell ratio Productivity levels Quality levels of
products/services Implement cost reduction
initiatives that will result in moreefficiencies
Organisational learning &growth
Revenue per employee Employee surveys Strategic skills coverage Level of skills retention Staff turnover
Cost savings
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Setting targets
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Setting Targets Targets involve specifics of what you want to achieve
and by when.
Some targets can only be set if you know what the baseis.
One objective could have more than one target but onceagain focus is the key.
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Performance ContractsTEMPLATE
Page 1:Details on person and position
Page 2:
Objectives, Measures, Targets, Ratings (use jobdescription)
Page 3:
Competencies, Skills, Knowledge and Behaviour Page 4:Development Plan
Page 5:
Comments
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Development Plans
Bridge the gaps in performance related to
objectives and competencies and prioritise an
action plan for development
A variety of methodologies: Training courses
Education programmes
Self-study
Coaching
Workshops Meetings
Work tasks
Short-term assignment
Job rotation
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1.1.Performance
Planningand
Contracting
2.2.PerformanceCoaching and
Feedback
33Performance
Review
4.Reward
Communicate the big picture ofthe organisations strategies anddepartmental goals to employeesand show the relationship of their
jobs to the organisationssuccess
Provide frequent informalcoaching that recognises good
performance
results and that gets below-targetperformers back on track
Tie tangible and intangiblerewards to performance levels
Gather performance informationfrom employees and assesseach employees results vs.
Performance Targets
Developmentplans for each
individualPERFORMANCEMANAGEMENT
Performance management system
BALANCED
SCORECARD
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Performance coaching and
feedback Should be on-going
and frequent
Can be informal
Encourage goodperformance
Attempt to get belowtarget performance
back on track
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1.1.Performance
Planningand
Contracting
2.2.PerformanceCoaching and
Feedback
33Performance
Review
4.Reward
Communicate the big picture ofthe organisations strategies anddepartmental goals to employeesand show the relationship of their
jobs to the organisationssuccess
Provide frequent informalcoaching that recognises good
performance
results and that gets below-targetperformers back on track
Tie tangible and intangiblerewards to performance levels
Gather performance informationfrom employees and assesseach employees results vs.
Performance Targets
Developmentplans for each
individualPERFORMANCEMANAGEMENT
Performance management system
BALANCED
SCORECARD
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Potential Problems with Performance
Reviews..
Objectives not being set before assignment Objectives being set 6 months after assignment completed
Staff evaluations 6 months after job completed
Weaknesses identified and discussed months later (too late!)
Comments on a number of assignments condensed into oneappraisal
Managers not taking responsibility for Performance Mgt
Managers regard it as an administrative nuisance
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Potential Problems with Reviewing
The Halo effect
Shifting standards
Bias
Lenient/Harsh
Rater
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The appraisal interview
DO DONT
Be supportive Be confrontationalBe developmental Apply stress
Conduct a conversation End up with a win-lose situation
with a purpose Use tricks and surpriseEngender mutual trust questions
End with a win-win situation
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Types of Employee responses
Defensive
Passive
Hurt
Accepting
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HOW TO HANDLE EMOTIONAL
SITUATIONSDEFENSIVE
Ignore the attack or excuse and stick to theissue at hand
Admit the truthPostpone employee issue until laterGet back to the issue of performance
Turn the question back when he/she wants toderail youfrom the topic
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HOW TO HANDLE EMOTIONAL
SITUATIONS
Passive
Draw out people by asking questions rather
than over-talking your points
Dont answer your own questions
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HOW TO HANDLE EMOTIONAL
SITUATIONS
Hurt
Dont get enveloped by employees depressed
reaction, instead describe the performance and stick to that
Paraphrase, reflect, emphasize where appropriate
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HOW TO HANDLE EMOTIONAL
SITUATIONS
Accepting
During the interview, point out live, here and now,
examples of relationship problems
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Managing conflict in performance
reviews
DEFINITION OF CONFLICT
Conflict can be described as a problem or
disagreement which occurs as a result of
differing ideas or goalsThe way a conflict is managed
Rather than suppressed, ignored, or avoided
contributes significantly to a companys
effectiveness
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Conflict Modes
COMPETING COLLABORATING
AVOIDING ACCOMMODATING
COMPROMISOR
AS
SERTIVE
NON-ASSERTIVE
UNCOOPERATIVE COOPERATIVE
CONCERN FOR
PERSONALGOALS
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The Accomodator Conflict is disturbing
Does not like conflict Will avoid it whenever possible
Shows the opposite of inner feelings in conflict
situations(Anger = smiling; Tension = humor)
Is convinced that only bad things can come out of conflict
PHILOSOPHY: In the final analysis it is wise to turn
the other cheek
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The Avoider Conflict is bad
Avoids conflict at all costs
Leaves the scene if possible
Does not get personally involved. Follows the rules
Believes he has no control over the outcome
PHILOSOPHY: It is useless to try to change a person
who seems locked in an opposing view.
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The Compromiser
Conflict is an intellectual challenge
No-one wins
Dont be confrontational
Hide your feelings
Resolution comes with compromise
PHILOSOPHY: Winning is rarely possible in conflict
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The Collaborator
Conflict is good Parties are able to express their opinions
All parties to a conflict have a valid contribution to make
There is always middle ground Resolved conflict will bring the parties together
PHILOSOPHY: No-one has the final answer to anything
but each has something to contribute
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G id li f i
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Guidelines for managing
unsatisfactory performancediscussions.
Step 1: Raise the self esteem of the employeeStep 2: Outline the performance areas that need improvementStep 3: Explain why the present performance causes you
difficulty
Step 4: Find out the reasons for their present performanceand make it clear you understand the position
Step 5: Ask them for ideas on how to improve the
performance and note these ideasStep 6: Ask them what you can do to help themStep 7: Confirm mutual action steps to be taken by both of
youStep 8: Agree a follow-up date
Your role as a manager
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Your role as a manager
Explain the Bank and department strategy and goals attempt to create line of sight.
Help set objectives with your people and ensure that
performance contracts are linked to departmentalobjectives.
Clarify job expectations with the employee.
Help with drafting development plans.
Assist the employee to achieve objectives.
Provide on-going coaching and feedback onperformance and development progress.
Collect feedback for formal reviews.
Provide formal performance reviews. Discuss career aspirations
Y l l
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Your role as an employee
Collaborate with your manager on drafting yourperformance contract.
Ensure that you understand your objectives,
measures and targets. Create your development plan.
Act on your development plan.
Ask for coaching and feedback from yourmanager and others. It is your rightto get feedback.
Take an active part in performance reviewdiscussions.
Give feedback to others.
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1.1.Performance
Planningand
Contracting
2.2.PerformanceCoaching and
Feedback
33PerformanceReview
4.Reward
Communicate the big picture ofthe organisations strategies anddepartmental goals to employeesand show the relationship of their
jobs to the organisationssuccess
Provide frequent informalcoaching that recognises good
performance
results and that gets below-targetperformers back on track
Tie tangible and intangiblerewards to performance levels
Gather performance informationfrom employees and assesseach employees results vs.
Performance Targets
Developmentplans for each
individualPERFORMANCEMANAGEMENT
Performance management system
BALANCED
SCORECARD
R d
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Rewards Align tangible and intangible rewards to
performance
Consequences of both achievement and non-
achievement of objectives
Reinforces positive behaviours
The behaviour that gets rewarded gets
repeated