Strategic Performance Management SPM Syed Imtiaz Hussain
Strategic Performance Management (SPM) PURPOSE To Develop Employees, Deliver Superior Results and Outclass Competitors.
Strategic Performance Management (SPM) H. R. Management Process Reward Management Recruitment & Retirement Performance Management Training & Development Career & Succe- ssion Planning
SPM F O C U S • Performance Planning • Competency Profiling • Individual’s Development • Team Building • Creating Leaders • Performance Review
SPM SPM process consists of - Setting Corporate Objectives & Targets - Improvement Projects / Assignments - Implementation / Action Planning - Execution of Strategic Action Plans
SPM Execution of Strategic action plans depends on -Cross Functional and Departmental Processes - Individual Competency Development
SPM Performance Planning Process Corporate Objectives & Targets Cross Functional Targets Departmental Targets Individual Objectives / Targets
SPM Setting Objectives & Targets - Definition - Priority Setting - Standards of Quality - Standards of Quantity - Time Frame
SPM Objectives and targets should be: (a) Specific (b) Realistic (c) Measurable (d) Result oriented (e) Quality bound (f) Time bound (g) Attainable with stretch
SPM Action Plan for each Objective -Activity (s) Scheduling - Resource (s) Identification - Inter / Intra Departmental Coordination
SPM Identification & Level of Competencies • Functional Competencies • ManagerialCompetencies
SPM PERFORMANCE PLANNING Role of Top Management - Defining & Analysis of corporate / targets for next 3 - 5 years - Identifying key business processes - Cross Functional and Departmental for improvement
SPM PERFORMANCE PLANNING Role of Top Management - Selecting Key Competencies - Technical, General Management and Ethical - Defining role of Individual Performance and Self-Development
SPM PERFORMANCE MANAGEMENT Role of Operational Management - Assisting top management to form Teams - Cross Functional and Departmental - Conducting Team meetings and progress reviews - Acquisition of Resources
SPM PERFORMANCE PLANNING Role of Operational Management Preparing Implementation (action) Plans for selected projects - Cost estimation - Revenue generation target setting - Defining saving targets - costs, time & effort - Performance levels / benchmarking
SPM Role of Operational Management Preparing Implementation (action) Plans for selected projects - Time scheduling - Resource allocation / acquisitions - Designing reporting formats for variance analysis - Obtaining concurrence from top management
Example PERFORMANCE PLANING - 2008 Employee : Syed Imtiaz Hussain (No. _______ ) Please Complete the Appropriate sections: Objective (Ref.) : HR - 3 Dept. Responsible : Human Resource Leader : H. R. Manager Team members : One experienced (nominated) person from each department Date : December 2008
PERFORMANCE PLANING - 2008 A. Objective In the next 6 months (by Dec. 2008), identify and define key competencies (Managerial and Functional) for each management position, with the level of competence required to fulfill the job requirements, so that competency assessment and gap analysis can be conducted during first half of 2008. B. Priority Assigned (tick only one) 3 4 2 1 3 = High 2 = Medium 1 = Low
PERFORMANCE PLANING - 2008 C. Schedule of Major Activities Incharge Completion Date Activities 1. Identify / List Managerial Competencies (MC) for the Company Imtiaz Hussain (H. R.) 30th Sept. 2008 2. Identify Functional Competencies (FC) for each Job with Levels Department Team Member 30th Sept. 2008 3. Define Level of MCs for each job Department Team Member 30th Oct. 2008
PERFORMANCE PLANING - 2008 C. Schedule of Major Activities Incharge Completion Date Activities 4. Conduct 360° Feedback for all Managers (# 25) Imtiaz Hussain (H. R.) 30th Mar. 2008 5. Conduct Gap Analysis (Requirement Vs. Performance) Imtiaz Hussain (H. R.) 30th Apr. 2008 6. Prepare Development Plan for each Manager Department Head / Imtiaz Hussain 30th Jun. 2008
PERFORMANCE PLANING – 2008 D. Standards of Performance • Select experienced Facilitator for the assignment • Complete all activities with 95% accuracy level • Achieve effective and high degree of internal communication • Involve all Managerial staff throughout the process
PERFORMANCE PLANING - 2008 E. Resource Plan • An experienced Consultant to be engaged for periodic facilitation of Assignment • Department Representative (Team Members) to be available during the assignment period, particularly in June, Sept., Oct., 2008 and April to June 2009. • Department Heads’ time and support is needed for the success of assignment • Financial Resources of around $. 250,000 are needed
PERFORMANCE PLANING - 2008 F. Progress Review Plan • Overall Progress meetings to be held at least once a month by 15th of each month, to ensure timely coordination of project • Departmental Review meetings to be held once in 15 days to ensure timely progress • Key decisions taken in all meetings must be documented and provided to all Team Members with in 3 days of the meeting
SPM PERFORMANCE APPRAISAL Actual v Plan Date (s) T & D Needs Performance Ratings
SPM PERFORMANCE APPRAISAL Role of Top Management Review of progress reports generated by operational management and making changes in Policies and Targets, as necessary.
SPM PERFORMANCE APPRAISAL Role of Operational Management - Comparison of Targets v/s Achievements, after adjusting for major policy changes and exceptional circumstances - Competency Assessment - Training & Development scheduling and monitoring
SPM PERFORMANCE APPRAISAL • Work output (Quantity, Quality & Time Standards) • Job Knowledge Assessment • Managerial Skills Assessment • Performance Rating
Priority Ranking and Performance Rating Working: Step 1 Step 1 Objectives Priority Ranking 1 3 2 3 3 3 4 2 5 1 Total 12
Priority Ranking and Performance Rating Working: Step 2 Step 3 Objective No. Priority Actual Rating Score 1 3 X 3 9 2 3 X 3 9 3 3 X 3 9 4 2 X 2 4 5 1 X 3 3 Total 34
Priority Ranking and Performance Rating Working: Step 3 Total Score (34) ÷ Priority Total (12) = 2.83 This falls in Overall Performance range of Very Good (VG) Step 4 Overall Performance Ratings Score Rating Up to 2.24 BA 2.25 - 2.80 G 2.81 - 3.00 VG VG = Very Good G = Good BA = Below Average
SPM PERFORMANCE APPRAISAL Job Knowledge • Focus on Technical Aspects & Expertise • Focus on Systems, Policies, etc.
SPM PERFORMANCE APPRAISAL Managerial Competencies (by Berger) • Decision Making • Planning & Organising • Creativity / Initiative • Leadership & Motivation • Delegation • Dependability • Communication
Managerial Competencies Decision Making Analyze situation, consider alternatives, and decide for action. Planning & Organising Comprehension of responsibility in determining a course of action to achieve goals within specified time and available resources.
Managerial Competencies Creativity / Initiative Improving operational efficiency / Innovative in performing. Leadership & Motivation Influences and guides others, development of resources. Motivates (Inspire self and others to perform).
Managerial Competencies Delegation Explaining and enabling others to perform. Dependability Reminders not needed, self commitment. Communication Verbal, Written, Listening skills, Presentation skills.
SPM PERFORMANCE APPRAISAL • Focus on Key Strengths (at least 2) in specific achievements / behavior • Focus on major Development needs (at least 2). Use specific short falls / negative behavior
SPM POTENTIAL APPRAISAL Purpose • Succession / Career Planning • Rewarding the Right person • Retention of Good Employees • Keeping the Head Count under control
SPM POTENTIAL APPRAISAL Establish Facts • At least 3 out 5 previous years Performance Ratings are Very Good • OR • At least 2 out 3 previous years Performance Ratings are Very Good
SPM POTENTIAL APPRAISAL Possible Positions for the Candidate • Within his / her Function • Outside his / her Function
SPM POTENTIAL APPRAISAL • Define Standards (Functional & Managerial Competencies) for the Possible Position (s) • Assess Candidate against Standards then make recommendations
SPM INFRA STRUCTURE Infra- Structure to implement SPM (a) Management Teams for -Performance Planning - T & D Management - Career & Succession Planning
SPM INFRA STRUCTURE Infra- Structure to implement SPM • (b) M. I. S. for timely Information & • tracking of Achievements • (c) Employee Data Base Management System
SPM Lets take a Break
SPM Examples of Objectives Select and implement an ERP system covering Sales, Distribution, Manufacturing and Financial aspects of the organisation, in the next 2 years (by June 2010), to improve working capital management, order tracking, management reporting and reduce wastage in manufacturing by 25%, within one year after the implementation of the ERP.
SPM Identify and outsource most Administrative functions in the next 12 months (by December 2008), in order to reduce fixed admin. costs, managerial effort and litigation, while improving the service level by 20% from the existing levels.
SPM Improve the preventive plant maintenance policy and implementation techniques, so that plant idle time is reduced by 20%, in the next 12 months (by December 2008).
SPM Improve the distribution network and process in the next 6 months (by December 2008), through automation and MIS (order tracking, data mining), in order to ensure availability of stocks, while reducing overall inventory level by 20%.
The Way Forward SPM Competency Based Management • Profiling of Managerial & Functional Competencies for each position, with level required • Competency Assessment of Individual Managers • Gap Analysis and Individual Development Plan • Performance Rating on a scale of 5
Managerial Competencies Innovation Initiative, creativity, risk taking and problem solving. Teamwork Collaboration, building relationships / network, creating partnership, exploiting diversity, using the skills of others, and candor.