using existing knowledge to realize continuous performance improvement frank evers
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Using Existing Knowledge to realize Continuous Performance Improvement
Designing and Implementing an Effective Performance Measurement System
Drs. René Pals & Drs. Frank Evers jf.evers@windesheim.nl
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Goal of this lecture
• Introduction to HR Shared Service Centre (HR SSC)
• Introduction to theory of Enabling Performance Measurement System (PMS)
• Insight in applying theory to practice
• Explain methodology of current project
• Have fun!
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Schedule
Now Introduction
Theory
16h30 Break
16h45 From theory to practice
Methodology at HR SSC
Conclusions
Discussion / Questions
17h30 Drinks!
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DC HR: HR SSC of Dutch MOD
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Subject:Establishment of the HR SSC Organisation
in the context of theRedevelopment of the HR function
Content:The context
» Motive » Focus & Roles» Objective & Assignment» Model & Programme
Our practice» Objective » Service delivery model & Organization design» Implementation» Ambition & Success factors
Agenda
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Redevelopment of the HR function
The context
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• Environment• Government coalition agreements Balkenende I + II• Budget cuts
• Defense operating model• Defense agencies less independent• Separate policy and execution, share support
• Quality and effectiveness• modernize HR services: focus on results • more businesslike (individualize + less pampering) • realizing reduction of costs (ICT + HR ratio)
• Future-based HR organization• centralization + harmonization + standardization• shared support + accessibility of information
Why change?
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Strategy Change
Performancedevelopment
Transactions
Administration
D. Ulrich
From focus on HR-control … to focus on business
BPRWFM
ESSMSS
Strategy Change
Performance development
Administration
Transactions
What is the focus?
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HR is a shared responsibility where players with specific focus contribute to the
integral result
HR(setting framework, giving support
and advise)
Line management(operations and
results)
Employees(performance and
employability)
Why different roles?
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Who does what?
Employee ContributionCommitment and CompetenceCapacity for change
HR Questions and Answers (multichannel)Management of HR processes, knowledge, data and systems
HR Administrative efficiencySalary Administrative efficiency
HR AdministrationSalary Administration
HR in the business
DC HR
End 2008Now
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Objective: Realize a standardized HR organization with:
• well educated employees who through• standard policy and processes with• contemporary process support and information services• are capable to deliver high-quality HR services
Assignment: Restructuring of HR which answers to:
• better HR-ratio• new HR service delivery model• quality norms• Defense-wide HR information system
What is the objective?
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Integrated HR system Peoplesoft / Payroll Administration
New roles for managers, employees and HR
HR Policy & Terms of employment
Line Management Employees
HR Defense Agencies Service center Personnel
HR Staff HR Advisors
HR SSC Expertise & Services
centers
What are we building?
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Redesign processes & systems
Concentrate HR services & establish HR SSC
Install standardized retained HR (Business Partner)
Increase quality of the HR function
Project P&O 2000+HR-BPR + UPS
Project HR Concentration & HR SSC
Project Reinstall HR Defense Agencies
Project Quality HR function
Desired end state
Veranderen cultuurProject Change ManagementRealize behaviour change
How are we going to achieve the end state?
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Restructuring the HR function
Our practice
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Objective HR SSC
The future HR organization will concentrate all administrative, registrative and HR support services in the HR SSC.
Service area contains:• Personnel administration• Payroll administration• Central point of contact for all HR- and Payroll-questions• Disclosure HR information (data, incidents, information)• Execution of the control of HR processes and systems
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Service delivery model
Self- service
Information Expertise Specific support
E&S centers
HR staff
HR LeadershipEmployee
Line manager
HR advisor
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Information Desk / Front-office(service desk)
4 teams
Support center / Back-office(specific support)
Expertise center / Mid-office(knowledge-management)
4 clusters
User supportPayroll
AdministrationHR administration Other support
Providing the service
Commander HR SSC
Support Department(support)
Transition team(implementation)
Staff(servicemanagement)
Managing of services
Suppliers,
incl IT M
anagement
Use
rsC
lient
sT
hird
par
ties
HR
-policy
Service center Personnel
Organization design
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Acceptance testing
Data quality
Reporting
Key user support
HR Answer & Advise (answering questions)
Sharing HR knowledge(PeoplePoint, FAQ, portal)
Control AO HR(processes + systems)
Phase 1 (Establishment)
Phase 1A (FO+MO) Phase 1B (BO)
Recalculation
Collection
Central mutation
April 2006 October 2006
Support Recruitment & Exit
Phase 2 (Expansion)Releases of HR BPR
Support Career & Development
Support General HR services
Support Compensation & Benefits
2007 - 2008
R1 R2 R4R3
Phased implementation
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Ambition
HR SSC, Your HR contact …THE central point of contact for all
HR - questions and - support
• fast and accurate• promises are promises• continuous improvement
Trust and Appreciation
CONVENIENCE
PROMISEPLEASURE
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Success factors
Good selection and training
From day 1 emphasis on Client Focus and Team work
Focus on Continuous improvement
Process (AO), System (WFM) and Performance (KPI)
Adequate IT (incl. system performance)
Use of implementation partners
Determination of dedicated core team
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Using Existing Knowledge to realize Continuous Performance Improvement
Designing and Implementing an Effective Performance Measurement System
Drs. Frank Evers jf.evers@mindef.nl
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Goal of the discussed project
“To improve
the qualitative and quantitative performance
of the employees at the department Information Center
continuously”
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Theory
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Learning organization (Senge, 2006)
• People continuously expand their capacity
• New/expansive patterns of thinking are created
• People continuously learn to see the whole together
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Theory of reasoned action (Fishbein & Ajzen, 1975)
Attitude Towards Behavior
BehavioralIntention
Actual Behavior
SubjectiveNorm
Beliefs &
Evaluations
Normative Beliefs&
Motivation To Comply
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Formalization: Coercive vs. Enabling (Adler & Borys, 1996)
Coercive formalization:• Top-down enforced• No influence of employees• Less (not) suitable for culture of continuous learning!
Enabling formalization:• Bottom-up cooperation• Memory of lessons from experience• Deviations are possibilities for improvement• Feedback (through KPI’s)
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Enabling PMS(Wouters & Wilderom, 2007)
Characteristics ‘Enabling PMS’:
• Based on local knowledge & experience
• Experimentation allowed
• Professionalism of employees (& voice)
• Team trust
• Balanced leadership behavior (-openness)
• Leads to continuous improvement!
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Theory of reasoned action - Project
External Motivation
towards Performance Measurement
Team Trust
Management Openness
Leadership Behavior
Professionalism
Voice
Having Ideas
Internal Attitude towards
Performance Measurement
Proces
Learning Organization
PlaygroundAdjust & Evaluate
Define KPI’s
Experi-mentation
Test against objectives
GoalInput
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Progress
External Motivation
towards Performance Measurement
Team Trust
Management Openness
Leadership Behavior
Professionalism
Voice
Having Ideas
Internal Attitude towards
Performance Measurement
Learning Organization
PlaygroundAdjust & Evaluate
Define KPI’s
Experi-mentation
Test against objectives
Input
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Based on knowledge & experience - 1 (Wouters & Sportel, 2005)
Existing KPI’s
• Sometimes informal
• Information from observations & conversations
• Short time periods
• Usually combinations of local & central data
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Based on knowledge & experience - 2 (Frese et al., 1999)
Having Ideas VoiceRewarded
suggestions
Personality
Job Complexity & Autonomy
Long-term Benefits
Short-term Benefits
Management Openness
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Professionalism (Kerr et al., 1977)
• Expertise
• Autonomy
• Identification with profession & fellow professionals
• Commitment
• Maintain high ethics
• Effort to improve work quality
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Team trust (Wouters & Wilderom, 2007)
Depends on whether employees:
• Feel safe • Feel comfortable • Feel motivated
• Are enabled to learn collectively
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Leadership (Avolio et al., 1999; Bass et al., 2003)
Transactional leadership:• Rewarding for good work• Reprimanding for bad work• Expectations ~ consequences• Stable basis for good performance
Transformational leadership:• Broaden / deepen interests employees• Awareness of mission, vision & objectives• Beyond self-interest• Effective on long term
Balance between transactional & transformational!
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Break
15 minute coffee break
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From theory to practice
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Progress
External Motivation
towards Performance Measurement
Team Trust
Management Openness
Leadership Behavior
Professionalism
Voice
Having Ideas
Internal Attitude towards
Performance Measurement
Proces
Learning Organization
PlaygroundAdjust & Evaluate
Define KPI’s
Experi-mentation
Test against objectives
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Top-down vs. Bottom-up KPI’s
Top-down (coercive):• Quick implementation• Connected directly to corporate KPI’s• Resistance from employees• Undesired side effects: gamesmanship, absenteeism Less effective & efficient
Bottom-up (enabling):• Mobilization of implicit knowledge & experience• Performance improvement by self-reflection• Perception of incompleteness removed• Implementation usually more difficult Creating a learning organization
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Allowing experimentation
Playground
Define KPI’s
Experi-mentation
Test against objectives
Adjust & Evaluate
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Playground for employees
Restrictions for playground:
KPI’s related to customers
Mission, vision, organization HR SSC
Internal objectives
Playground of employees
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Department management
Further refinement of playground:• Joint playground for department management and employees
• Current KPI’s are not disposed; they are being further developed
• Clear management tools
Shift of competence:
Leading Supporting
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Link between top-down & bottom-up KPI’s
Current KPI’s are being further developed
Management can guide discussions
Directive actions are not ruled out, but minimized: • Employees become more self-steering• This is desired, but within the given playground
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KPI cooperation
Facilitated by:• Change manager• Quality manager• ICT employees
Department management
Employees
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Valid, Reliable, Complete and Efficient insight in Performance
•Valid
•Reliable
•Completeness
•Efficient
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Methodology at HR SSC
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Zero-measurement
• Multiple sessions (small group sizes)
• Anonymous survey
• Results not always comparable with theory!
• Offers suggestions for intervention during the project
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Zero-measurement – results found
• Employees insufficient aware of own responsibilities• Leadership behavior needs to be more transformational
External Motivation
towards Performance Measurement
Team Trust
Management Openness
Leadership Behavior
Professionalism
Voice
Having Ideas
Internal Attitude towards
Performance Measurement
Proces
Learning Organization
PlaygroundAdjust & Evaluate
Define KPI’s
Experi-mentation
Test against objectives
GoalInput
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Brain Write(Thompson, 2003)
• Threats to team creativity
• Brain Writing: at certain points cease talking write
• Nominal Group Technique
No influence, productive simultaneously, memory
Question: “What is high-end performance for the department in 2 years, according to you?”
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Formulate & prioritize performance areas
Based on results Brain Write:
• Collect & categorize ideas
• Prioritize areas during sessions with employees and management
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Form Result Teams ~ experimentation
• Employees can choose whether to join a work group and which work group
• Diversified teams work out the selected performance categories (also: further development of relevant existing KPI’s) • Autonomy of work group
• Communication between work groups
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Progress
External Motivation
towards Performance Measurement
Team Trust
Management Openness
Leadership Behavior
Professionalism
Voice
Having Ideas
Internal Attitude towards
Performance Measurement
Learning Organization
PlaygroundAdjust & Evaluate
Define KPI’s
Experi-mentation
Test against objectives
Goal
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Discussion / questions?
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Drinks!
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