2015 balance scorecard (“bsc”) · 2015-06-05 · strictly private & confidential 10 scope...
Post on 24-Mar-2020
3 Views
Preview:
TRANSCRIPT
STRICTLY PRIVATE & CONFIDENTIAL
2015 Balance Scorecard (“BSC”)
OSK / PJD Employee Briefing Deck
STRICTLY PRIVATE & CONFIDENTIAL1
Understanding BSC
STRICTLY PRIVATE & CONFIDENTIAL2
Mission
& Vision
Strategy
Strategic Goal
Strategic Objective
Measurements
Our game plan
What we must do well in
order to implement
strategy ?
How strategic success
is measured and
tracked
Why we exist ?
What we want to be ?
Overview of Key Components for BSC
What we need to anchor
and focus ?
STRICTLY PRIVATE & CONFIDENTIAL3
Perspectives within BSC
Financial – How should we enhance shareholders' value?
Sample measurements: revenue, profit before tax, sales
Customer – How should we appear to our customers?
Sample measurements: customer satisfaction, market share
Internal process – What business process must we
excel in?Sample measurements: operations management, quality control
Learning & Growth – How will we sustain our ability to
change & improve?Sample measurements: employee satisfaction, employee training
VISION & STRATEGY
1
2
3
4
STRICTLY PRIVATE & CONFIDENTIAL4
Cause-and-Effect Linkage (Strategy Map)
Financial
Customer
Internal
Process
Learning &
Growth
To drive financial success
To deliver unique sets of
benefits to customers
To build strategic capabilities
To equip our people
Short-term
Lagging
Long-term
Leading
Inputs
Outputs
4
STRICTLY PRIVATE & CONFIDENTIAL5
So, what is BSC?
1
2
3
4
5
Amanagement system to help translate organization
strategy into operational objectives
Emphasizes financial & non-financial measures in 4
perspectives
Balances short and long-term measures
Monitors outcome measures with performance drivers
Provides feedback around both the internal business
processes and external outcomes
STRICTLY PRIVATE & CONFIDENTIAL6
Importance of BSC to the Group
STRICTLY PRIVATE & CONFIDENTIAL7
Importance of BSC
1
2
3
4
5
Identifies critical areas for an organisation to be successful
Instills focus on critical areas & sets accountability
A framework to communicate strategy in operating terms
Consistent framework to assess & monitor performance
Fully integrated approach to achieve strategies
STRICTLY PRIVATE & CONFIDENTIAL8
Importance from Employees’ Viewpoint
1
2
3
4
5
Enable understanding of strategies and determine how our
contributions fit into the bigger picture
Clear expectations of responsibilities and focus areas
Clear and transparent performance measures (KPIs /
targets)
Objective and transparent performance evaluation
Consistent compensations and rewards (tied to
performance measures)
STRICTLY PRIVATE & CONFIDENTIAL9
Scope and Plan for BSC Implementation
STRICTLY PRIVATE & CONFIDENTIAL10
Scope for Implementation @ Employee Level
Job B
and
SE1
JE3
OSKP
Jo
b B
an
d
SE1
SS3
PJD
Job B
and
B1
B8
OSKH
Jo
b B
an
d
B1
B8
OSKVI
1Managers and staff within the job band depicted below would be
required to prepare BSC
2 Staff with Job Band below JE3 (for OSKP) and below SS3 (for
PJD) would NOT be impacted by BSC implementation
Approx.140 Approx.950 Approx.50 Approx.10
STRICTLY PRIVATE & CONFIDENTIAL11
Phased Approach for Implementation
Strategic Business
Group
Business Area
Division
Unit
Group MD
LEVEL 3
LEVEL 1
LEVEL 5 &
BELOW
LEVEL 4
LEVEL 2
PH
AS
E1
PH
AS
E 2
§ BSC at Entity/Business level
§ Implementation date: 1 April 2015
§ Coordinated by: Corporate Planning
§ Frequency of submission: Quarterly
Individual
Department
§ BSC at employee level
§ Target implementation date: 1 July 2015
§ Coordinated by: Human Resource
§ Frequency of submission: Half yearly
Note:
For calendar year 2015, only 1 submission
at calendar year end
STRICTLY PRIVATE & CONFIDENTIAL12
Anticipated Changes with BSC Implementation
STRICTLY PRIVATE & CONFIDENTIAL13
Changes to Annual Appraisal Framework
1 BSC Appraisal Cycle*
Current Practice (without BSC)
Pe
rio
d u
nd
er
Re
vie
w
Jan-YY
Dec-YY
OSKP / OSKH /
OSKVIP
erio
d u
nd
er
Re
vie
w
Jul-YY
Jun-YY
PJD
Pe
rio
d u
nd
er
Re
vie
w
Jan-YY
Dec-YY
OSK / PJD
With BSC Implementation
* Appraisal process for FY2015 in respect of PJD staff shall be advised by HR in due course.
STRICTLY PRIVATE & CONFIDENTIAL14
Appraisal Weightage & Scoring*
Current Practice (without BSC) With BSC Implementation
Weightage
OSKP / OSKH /
OSKVI
KRA
Competency
Scoring
0 pts – 5 pts
29%
71%
Appraisal Form format
2
3
Changes to Annual Appraisal Framework
Weightage
PJDP / PJDC
KRA
Competency
Scoring
0 % – 100%
40%
60%
Weightage
OCC / Acotec / SGI /
SGIVC
KRA
Competency
Scoring
0 – 200
0%
100%
Weightage
OSK / PJD
BSC
Competency
Scoring
0 pts – 5 pts
50%
50%
* Appraisal process for FY2015 in respect of PJD staff shall be advised by HR in due course.
STRICTLY PRIVATE & CONFIDENTIAL15
Cascading BSC
STRICTLY PRIVATE & CONFIDENTIAL16
Overview of Phase 2 Cascading Process
LEVEL 5
LEVEL 3
LEVEL 4
LEVEL 7
LEVEL 6
Business Area
Division
Department
Unit
Individuals
Objectives
Measurements (KPIs)
Targets
Objectives
Measurements (KPIs)
Targets
Objectives
Measurements (KPIs)
Targets
Objectives
Measurements (KPIs)
Targets
Objectives
Measurements (KPIs)
Targets
Functional Area
STRICTLY PRIVATE & CONFIDENTIAL17
Timeline for Phase 2 Implementation
8 May
2015
29 May
2015
30 June
2015
Business Area L4s & Functional Heads
Department Heads / Unit Heads / Managers & above
Individual staff
Completion of
Phase 2
LevelCompletion
Due Date
2 weeks
3 weeks
4 weeks
BSC Rollout for Employees
STRICTLY PRIVATE & CONFIDENTIAL18
Recommended Cascading Steps
1
2
3
4
Explain to all direct reports on your BSC
Share expectations on objectives and KPIs based on their
job scope
Discuss and agree on objectives, KPIs, weightage and
targets. Ensure agreed BSC is in line with your BSC
Sign off BSC and submit to HR
5Provide guidance on how and what to cascade to their
staff
STRICTLY PRIVATE & CONFIDENTIAL19
1
2
3
4
Measurements/KPIs must be critical and relevant to the
staff’s job description
KPIs and targets must be in line with superior’s BSC
Weightage for measurements/KPIs must commensurate
with criticality/relevancy
Targets must be measurable, realistic and achievable
Recommended Good Practices
- KPIs and Targets Setting
5Superior and staff mutually agree on the contents before
finalising BSC
STRICTLY PRIVATE & CONFIDENTIAL20
* Mid year review not applicable for FY2015
1
2
3
4
Each staff is required to track their own
measurements/KPIs and performance
Regular dialogue between superior and staff (quarterly
basis)
Superior and staff conduct a mid-year* review of the staff’s
BSC
Adjust measurements/KPIs and/or targets during mid-year
review (if required), subject to mutual agreement
Recommended Good Practices
- Performance Monitoring
5 Re-sign BSC and submit to HR
STRICTLY PRIVATE & CONFIDENTIAL21
Understanding BSC Template for Employees
&
Step-by-Step Guide
STRICTLY PRIVATE & CONFIDENTIAL22
Poor Below
Target
Meet
Target
Exceed
Target
Out-
standing Review
Weighting 1 2 3 4 5Actual
Result
Assigned
Score
Weighted
Score
Mid-year
Results
1 10.0% 510.0 555.0 600.0 645.0 690.0 625.0 3.56 0.36
2 20.0% 255.0 277.5 300.0 322.5 345.0 311.0 3.49 0.70
3 10.0% 2,550.0 2,775.0 3,000.0 3,225.0 3,450.0 3,100.0 3.44 0.34
4 5.0% 425.0 462.5 500.0 537.5 575.0 475.0 2.33 0.12
45.0%
1 5.0% 60.0 65.0 70.0 75.0 80.0 70.0 3.00 0.15
2 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15
3 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15
4 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15
20.0%
1 10.0% 60.0 70.0 80.0 90.0 100.0 75.0 2.50 0.25
2 5.0% 1.0 2.0 3.0 4.0 5.0 4.0 4.00 0.20
2 5.0% 1.0 2.0 3.0 4.0 5.0 4.0 4.00 0.20
2 5.0% 510.0 555.0 600.0 645.0 690.0 580.0 2.56 0.13
25.0%
1 5.0% 40.0 50.0 60.0 70.0 80.0 60.0 3.00 0.15
2 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15
10.0%
100.0% 3.20
Head's Signature:
BSC Weighted Score:
Employee Signature: Appraiser Signature:
Improve quality of products
I agree with the BSC performance appraisal contained herein.
Create conducive working environment Employee engagement survey score
Improve customer loyalty
Customer
Learning & Growth
No. of awards achieved
Net promoter score
Improve customer satisfaction
Execute key action plans
Strengthened OSK Brand/Visibility
% of key initiatives completed
Improve internal collaboration
[ ]
[ ]
Measurements/KPIs
Profit before tax (RM'mil)Increase profit
Value of cross selling
Enhance succession planning
Internal Process
% of identified successors
B01
[ ]
31-Dec-2015
Property
1-Jan-2013
3.0
BSC Performance Score
Years of Service:
Remarks
Customer satisfaction score
Launched net GDV (RM'mil)Offer wider product choices
Division:
Date Joined:
Objectives
Revenue (RM'mil)Increase revenue
Financial
[ ]
Quality assessment benchmarking score�
Balanced Scorecard Performance Appraisal
Department:[ ] [ ]
BSC Code:
Appraiser Name:
Appraiser Designation:
Appraisal Year:
Entity Name:
Employee Name:
Employee Number:
Employee Designation:
[ ]
Increase value of development projects Land bank acquisition (GDV) (RM'mil)
Improve risk management controls Risk Management audit rating
Improve internal controls Internal audit rating
2015 Individual BSC Template (Sample)
Actual
345.0
3,450.0
575.0
70.0
3.0
3.0
600.0
300.0
2,775.0
462.5
60.0
5.0%
Target
5.0% 2.0
60.0
1.0
5.0%
Employee engagement survey score
% of identified successors
BSC Performance Score
20.0%
10.0%
5.0%
1.0
60.0
65.0
1.0 2.0
1.0 2.0
1.0 2.0
65.0
2.0
500.0
645.0
300.0 322.5
3,000.0 3,225.0
537.5
1
2 3 4
STRICTLY PRIVATE & CONFIDENTIAL32
Setting Key Performance Indicators (KPIs)
STRICTLY PRIVATE & CONFIDENTIAL33
Gaining agreement is good BUT
gaining understanding and buy-in is a must.
STRICTLY PRIVATE & CONFIDENTIAL34
KPI Criteria
Well written KPIs are SMART
Quantity – how many or
how much ?
Quality – how well, how
complete or thorough
Monetary – revenue,
profits, expenses
Timeliness – by when,
deadlines, cycle times
34
• Specific•S
• Measurable•M
• Achievable•A
• Relevant•R
• Time-bound•T
STRICTLY PRIVATE & CONFIDENTIAL35
Examples of KPIs
Objective Possible KPIs Target
Increase revenue
Revenue (RM’mil) RM10mil
Revenue growth 10%
% of revenue from new products 5%
Improve customer
satisfaction
Customer satisfaction score 3
Average customer complaints resolved period (no. of days) 2
No. of repeated complaints 0
Types of KPIs Possible KPIs Target
Task KPI (Activity-
based)
No. of audits conducted 8
No. of process enhanced 10
No. of marketing campaigns 5
Result KPI
(Outcome-based)
Internal audit ratings 3 (Good)
Customer satisfaction score 3
No. of new customers 20
STRICTLY PRIVATE & CONFIDENTIAL36
BSC Team
STRICTLY PRIVATE & CONFIDENTIAL37
BSC SPONSOR
BSC Project Structure
BSC TEAM
Tio Jun LimJulie Toh
Lim Hooi SunKoh Siew Hui
Teo Ai Chinn
Liew Shook Fen
Lilian GanLennie Teh
Connie WongBaskar Ramachandran
Marie Elena
Julie TohLim Hooi Sun
BSC CHAMPION
Woon Chong Boon Ong Ju Xing
Andrew WongPuan Sri Khor Chai Moi
Yap Yoon KongOng Ju Xing
Patrick YeeAmelia Ong
Tan Sri Ong Leong Huat
OSKH OSKP PJD OSKVI
STRICTLY PRIVATE & CONFIDENTIAL38
Contact Details of BSC Team
Name Entity Contact Number Email Address
Corporate Planning
1 Woon Chong Boon OSKH 03-2166 6225 ext. 378 chongboon.woon@my.oskholdings.com
2 Tio Jun Lim OSKH 03-2166 6225 ext. 381 junlim.tio@my.oskholdings.com
3 Koh Siew Hui OSKH 03-2166 6225 ext. 376 siewhui.koh@my.oskholdings.com
Human Resource
1 Lilian Gan PJD 03-2162 1111 ext. 228 lilgan@pjd.com.my
2 Connie Wong PJD 03-2162 1111 ext. 226 connie.wong@pjd.com.my
3 Lennie Teh PJD 03-2162 1111 ext. 227 lennieteh@pjd.com.my
4 Teo Ai Chinn OSKP 03-2161 3322 ext. 228 aichinn.teo@oskp.com.my
5 Liew Shook Fen OSKP 03-2161 3322 ext. 268 shookfen.liew@oskp.com.my
6 Julie Toh OSKH/VI 03-2166 6225 ext. 307 chenwei.toh@my.oskholdings.com
7 Lim Hooi Sun OSKH/VI 03-2166 6225 ext. 306 hooisun.lim@my.oskholdings.com
Corporate Quality & Training
1 Baskar Ramachandran PJD 03-2162 1111 ext. 239 baskar.ramachandran@pjd.com.my
2 Marie Elena PJD 03-2162 1111 ext. 229 marie.isaac@pjd.com.my
STRICTLY PRIVATE & CONFIDENTIAL39
Frequently Asked Questions
STRICTLY PRIVATE & CONFIDENTIAL40
Is BSC complicated and difficult to implement?
It’s going to be a learning process for all of us during the initial stage of implementation.
However, along the way, we strive to make BSC a simple yet effective exercise –
eventually making it a way of life in the Group to drive our behaviour.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL41
Is it a must for all staff to have individual BSC?
Individual BSC is applicable to all executive* and above; clerical staff are not required to have BSC.
Clerical staff will continue with the current practice.
*JE3 for OSKP; B8 for OSKH & OSKVI; SS3 for PJDP
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL42
Will there be more work for me to do?
Extra effort is required, however BSC is not intended to increase
your workload and/or change your job description.
The objective is to instill focus on critical areas and set accountability.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL43
Will anybody be sidelined?
No.
The intent of BSC is to ensure that you are recognisedand rewarded for your contributions and efforts.
However, as in any organisation, non-performers will eventually be phased out if there is no improvement.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL44
Will compensation be linked to BSC?
Yes.
BSC provides an objective, transparent and systematic way
to assess your performance, which will lead to consistent rewards and recognitions.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL45
How can I be accountable for things which are beyond my
control?
BSC is about setting targets which are within your control. Accountability will
drive your behaviour.
Eventually, BSC makes functional units work holistically; and move away from
being silo and territorial mentality.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL46
Must I set KPI for all 4 perspectives for all my staff?
Ideally, you need to set KPI for all 4 perspectives; however it is acceptable
to have no KPI for financial perspective especially for staff from
support services and operations.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL47
Can targets set for Level 3 be changed during the
year?
Yes.
Targets could be reviewed and changed under specific circumstances and subject
to relevant approvals.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL48
Can KPIs and targets set in individual BSC be
amended?
Yes, subject to mutual agreement between superior
and subordinate. The KPIs and targets can be revised during
the mandatory mid-year review.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL49
Who can I approach in the event if I am unsatisfied with my KPIs or
targets which have been set by my immediate superior?
You are encouraged to discuss with your immediate superior to resolve issues amicably. Failing which, you can highlight your concerns to the
level above your superior.
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL50
The KPI indicated in my BSC does not include my other contributions. How
can these contributions be evaluated?
You will be given due recognition for other
contributions under the Core Competencies
section (50% weightage).
You May Ask …
STRICTLY PRIVATE & CONFIDENTIAL51
How do I develop my BSC and the cascading should
come from whom?
Ideally, BSC should be developed with your direct
line superior in consultation with your dotted line superior.
You May Ask …
Who to sign off my BSC?
BSC should be signed off by your direct line superior, who would be responsible for your
evaluation, in consultation with dotted line superior.
If you have dual reporting matrix: direct line reporting to the Business Area with “dotted” line
reporting to Functional Area
STRICTLY PRIVATE & CONFIDENTIAL52
DONE
top related