PERFORMANCE MANAGEMENT

Arriffin Mansor

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Agenda

Objectives and Introductions Why Performance Management Performance Management Framework Performance Management Process Tools and Resources Getting Started Next Steps

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Objectives of the session

Introduce staff Performance planning and appraisal systems

Set clear objectives and goals Identify key result areas Agree on the key performance indicators

with your superior Set performance targets for the next period

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Why do Performance Management?

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Why…..

Effectiveness – objective and goal achieving and target settings

Efficiency driven Strategy formulations Benchmarkings Compensation plans Continuous improvement Trends

Strategic Learning Loop

Initiatives & Programs

test the hypotheses

Output(Results)

reportingManagement Control Loopfunding

Input(Resources)

update the strategy

PERFORMANCE

85% of management teams spend less than

one hour per month on strategy issues

92% of organizations do not report on lead

indicators

60% of organizations don’t link strategy &

budgets

78% of organizations lock budgets to an annual cycle20% of organizations take

more than 16 weeks to prepare a budget

STRATEGY

BALANCED SCORECARD

BUDGET

PERFORMANCE IS A CONTINUOUS PROCESS#5

Top-Down “Bridging Process” To Share the Strategy & Align the

Workforce

Bottom-Up Process to Internalize & Execute

the Strategy

CORP

SBU

The Strategy Focused Workforce

• EDUCATION

• PERSONAL GOAL ALIGNMENT

• BALANCED PAYCHECKS

CASCADING METRICS AT ALL LEVELS#4

Principles of the Strategy Focused Organization:

LINK AND ALIGN THE ORGANIZATION AROUND ITS STRATEGY

Strategies Are Executed Through Business Units. The Strategies of the Business Units Must Be Integrated If Organization Purpose and Synergies Are to Be Achieved.

Major Subordinate Commands SUPPORT UNITS

CORPORATE AMEDD

SBUA

SBUB

SBUC

SBUD

CORPORATE SCORECARD(Shared Strategic Agenda)

Themes Measures

EXTERNAL PARTNERS

• Customer Scorecards

• Distributor Scorecard

• Joint Venture Scorecard

• Vendor Scorecard

• New Venture Scorecard

• Outsourcer Scorecard

#1. A Corporate Scorecard defines overall strategic priorities on a

Balanced Scorecard (BSC).

#3. Each Support Unit develops a

plan and BSC for “best practice” sharing to create synergies across

Subordinate Commands.

#2. Each Division develops a

BSC consistent with corporatestrategic BSC.

1. Financial Growth

2. Delight the Consumer

3. Win-Win Relationships

4. Safe & Reliable

5. Competitive Supplier

6. Good Neighbor

7. Motivated & Prepared

8. Quality

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xx xx xxxx

• Finance

• Marketing

• Distribution

• Procurement

• Purchasing

• Safety

• Human Resources

• Information Technology

#3

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Public Service Goals and Renewal

Effective People

Strategy

Effective People

Strategy

Flexible and Motivating

Work Environment

Flexible and Motivating

Work Environment

Learning and Innovative

Organization

Learning and Innovative

Organization

Progressive Employee-Employer Relations

Progressive Employee-Employer Relations

To achieve excellence in public service

Proactive and Visionary

Leadership

Proactive and Visionary

Leadership

Performance Focused

Workplace

Performance Focused

Workplace

To develop a performance management system that:

• supports employees in achieving their performance & development goals

• aligns their goals with those of the organization.

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Performance management supports work satisfaction

“Nine out of ten employees, from all generations, say they want:

Work that gives them personal satisfaction

Work that is valued by their employer and their customer

Work with an employer who understands that personal lives are important too”

Ranstad: 2001 Employee Review: Insights into Workforce

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Performance management aligns personal & corporate goals

“Employees want their organization to involve them more in the organization’s direction. They want to know how they can make a contribution to the organization’s mission, goals and strategy.

Employees want to know how their position fits into the big picture, and the part that will play on the team”

Aon Consulting Canada@Work: Workforce commitment Report 2000

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Shifts in Performance Management

PAST

Appraisal

Manager driven

Backward looking

Once per year

Tasks (job description)

Minimal personal development

NOW

Plan, Focus and Review

Employee initiated and managed

Forward looking

1-2 times, ongoing process

Results/Outcomes linked to Service Plan, team goals

Development & competencies integral

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Do goals and measures improve performance?

Harvard study – 7x more likely to achieve goals if they are set and written down

Boston Consulting Group/Hewitt Associates: "companies with year-round performance systems significantly outperformed competitors lacking such systems in financial measures such as return on equity, stockholder return, sales growth and cash flow."

US HR Scorecard survey of the top 10% and bottom 10% performing firms - “survey results clearly show that there is a direct correlation between a strong human relations strategy and positive business results.”

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Employee Performance and Development Planning Process

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Principles in performance management

Employee initiated and managed Forward looking Incorporates a plan, focus and review cycle Results-oriented and linked to Service Plan

and team goals Personal development & competencies key

components Employee-supervisor dialogue is key to

success

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Benefits -Individual & Organizational

What are they?

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Organizational benefits of performance management

Common approach to setting goals and reviewing performance & development

Aligning individual plans with corp goals

Ongoing dialogue between employees and supervisors on performance & development

Links to corporate learning & development, career & succession planning, rewards & recognition

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Your roles inperformance management

Understand: How your work contributes to set goals

Key competencies required to be successful in your job

What you need to develop in order to be successful

How your work/performance will be measured and recognized

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performance planning is the foundation

Individual Performance

Planning

Service Planning

Service Planning

Strategic Planning

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Objectives of EPDP

Develop shared expectations between employees and supervisors on key performance and development goals

Establish specific and measurable individual goals that contribute to the set goals

Facilitate ongoing personal development and career planning

Provide regular feedback and coaching on performance

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Performance Mgt– Three Phases

Plan•Goal setting

•Competencies•development

Focus•Dialogue and

realigning goals as needed

Review•Employee and

Supervisor review

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Employee Performance and Development Plan

Employee Performance and Development Plan

Key Work Goals

Key Competencies

Personal Learning Plan

What you do• Top 3 to 8 goals• List key goals and objectives/

strategies/ measures for each

How you do it• Top 2 to 3 goals• List key competencies most

critical to your success and how you will focus on them

What you will learn • Areas of personal

development• How you will improve your skills

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Phase I – Performance Plan

Objective: Establish your goals and plan for the upcoming year with your superior

Review Ministry, Division and Work Unit plans Identify key work goals Identify key competenciesDevelop personal learning planMeet with your supervisorSign off plan

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Developing goals & Selecting competencies

Goals

Specific

Measurable

Achievable

Reasonable

Timely

Competencies Public Service

– Teamwork & cooperation

– Service Orientation– Results orientation

Leadership

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Performance Planning brings clarity to ensure we are heading in the right direction

Say…What’s a mountain goat doing

way up here in a cloud bank?”

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Phase II - Focus

Objective: Assess if your plan is on track and realign work goals as appropriate.

Review your EPDPMeet with your supervisorUpdate your plan as required

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Performance focusing helps ensure weare on track with your plan

“Well, this is just going from bad to

worse.”

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Phase III – performance appraisal

Objective: Discuss and share feedback on the successes and challenges in achieving the goals over the past year

Compare results against targetMeet with your supervisor to discuss

resultsSign off review

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Performance reviewing is summarizing our results and getting feedback

• % Ground crew trained

• % Ground crew stockholders

A Complete Metrics is a Program for Action

Objectives Measures

• # Customers• FAA On Time

Arrival Rating• Market Survey

• On Ground Time• On-Time

Departure

Strategic Theme:Operating Efficiency

Initiatives

• Cycle time optimization

• Ground crew training

• ESOP

•Customer loyalty program• Quality management

Targets

• 30% CAGR

• 20% CAGR

• 5% CAGR

• 12% growth• Ranked #1• Ranked #1

• 30 Minutes• 90%

• yr. 1 70%yr. 3 90%yr. 5 100%

• Profitability

• Grow Revenues

• Fewer planes

• More Customers • Flight is on -time• Lowest prices

• Fast ground turnaround

• Ground crew alignment

Strategic Theme: Operations Excellence

Profits and RONAFinancial

Learning

Ground crew alignment

Fewer planes

Customer

Internal

Fast ground turnaround

Strategy Map

Attract & Retain More Customers

Grow Revenues

Lowest prices

On-time Service

Metric Terminology(Southwest Airlines Example)

Objectives

• Fast ground turnaround

Objectives:What the strategy is trying to achieve

Targets

• 30 Minutes• 90%

Targets:The level of performance or rate of improvement needed

• Cycle time optimization

Initiatives:Key action programs required to achieve targets

InitiativesMeasures

• On Ground Time• On-Time

Departure

Measures:How success or failure (performance) against objectives is monitored

Strategic Theme: Operating Efficiency

Profits and RONAFinancial

Learning

Ground crew alignment

Lowest prices

Fewer planes

Customer

Internal

Fast ground turnaround

Strategy Map

On-time Service

Attract & Retain More Customers

Grow Revenues

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Optional Elements - EPDP

Recognizing Past Performance Service Plan Reference Career Plan (i.e. where you want to go

in the future) Supervisor Commitments (i.e. resource

and/or support needs) Additional accomplishments

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Performance Management Cycle

360 degree feedback(optional)

EPDP 2005/06

Key Work Goals

Key Competencies

Personal Learning Plan

April November April

EPDP REVIEW 2005/06

Key Work Goals

Key Competencies

Personal

Key Work Goals

Key Competencies

Personal Learning Plan

EPDP 2006/07

Plan Focus Review/Plan

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Integrated performance management framework - elements & linkages

Start of yearIndividualPerformance Management

Ongoing

Plan• Goal Setting

Focus• Progress and

realignment

Review• Results

• Feedback to develop new

planEnd of year

•Career Plan •High Potential•Succession Plan•Learning Needs & Courses

•Recognitionmechanisms

(e.g.informal and formal rewards and

recognition, development, base

pay, pay for performance

•Recognitionmechanisms

(e.g.informal and formal rewards and

recognition, development, base

pay, pay for performance

Gov’t Strategic Plan, Ministry Plan, Branch Plan

Gov’t Strategic Plan, Ministry Plan, Branch Plan

Corporate Opportunities

CompetenciesCompetencies

ReviewOutcomes

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Performance Tools and resources

Written Overall Guidelines

Employee Guidelines

Supervisor Guidelines

Sample EPDP Templates (Forms)

EPDP Examples

Employee Checklist

Supervisor Checklist

Tips on Giving and Receiving Feedback

Frequently Asked Questions

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Performance On-line

Web-based interactive tool Supports employee performance &

development planning Other resources include:

– Competency development– Building self-awareness– Team building– Career planning

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Getting Started

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Challenges to performance management

Lack of current divisional/branch plan Belief that a job description is required Competencies not established for the job Succinctly identifying 3-8 key goals Identifying ‘measurable’ measures/targets Measuring advice and support roles Linking high level goals to daily work Too busy to develop plan and meet with

supervisor It’s time intensive and hard to do

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Practicing Goal Setting

Identify the 3-8 key areas your are expected to get results in your job

Practice writing a goal statement with objectives, strategies and measures– Measures e.g.: time, quality, quantity, cost

What are the key competencies required for your job?

What can you develop/learn in the upcoming year?

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Next steps

Review the Guidelines

Develop a draft EPDP

Book a meeting with your supervisor to discuss and finalize

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Linking our individual plans to corporate plans equals high performance results!

Your performance tools

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