A roadmap towards peak performance

A roadmap towards peak performance

Arriffin Mansor

A performance measurement approach

ABM Consult69, Jalan Raja Alang, 50300 Kuala [email protected]

mailto:[email protected]

Towards peak performance 2

We help clients to• Define clear goals and strategies• Identify and develop critical competencies• Design proper systems and processes• Develop effective team leadership• Empower employees for greater productivity


Our programs

• Consulting– Identifying critical competencies– Strategic business plans– Installing Peak peformance framework

• Training workshops– core performance competencies– Performance improvement

• Team building– A winning team with the right working plans


Key benefits of our programs• Improved bottom line performance• Improved customers satisfaction• Attaining leadership in the industry• Promote continous improvement in

all areas• Promoting effective team leadership• Strategic thinking and effective

problem solving through a systemetic thought process

• Recognising and promoting talent


Consulting Services 1. Training need analysis2. Performance audit3. Strategic business plans4. Installing performance management system


Team Building

• Clear objectives• Identify key result areas to achieve objectives• Choose suitable key peformance indicators• Establish performance targets• Communication • Problem solving• Effective Leadership• Group dynamics


Performance Framework • Smart objectives• Key result areas• Key Peformance Indicators• Performance targets


Critical Gap Analysis

• ROE chart• KPI calculations • Benchmarking• Industry standards• Internal standards• For both performance and competency gaps


• Performance planning• Performance measurement• Performance appraisal and evaluation

Performance Management


Vision and Strategy

Financial L and GCustomer Process

Objectives

Measures

Targets

Initiatives

Strategy-Translation Process


Some Basic Principles in Performance

• Quantifies the Strategies in measurable terms• Strategy is summarized on a Strategy Map over four views of

performance (perspectives).• Must capture a cause-effect relationship between strategic objectives

over the four perspectives on the Strategy Map.• Critical Components include:

-objectives

- Measurements- Targets- Initiatives

• Everything must be linked: Goals to Objectives, Objectives to Measurements, Measurements to Targets.


The Measurement Pyramid

Goal

Outcome Performance

Measures

Program

Program Performance Measures

Program Components

Program Component Performance Measures

Activities

Activity Performance Measures

Strategic/GPRA GoalsEnd-Outcomes

Longer-Term IntermediateOutcomes

Shorter-TermIntermediateOutcomes& Outputs

Outputs& Inputs


ENSURE THE RIGHT KPIS BEING USED

• Let me suggest four possible types of KPIs:

1. Input phase• Labour Hours

2. Process phase• Material used per unit

3. Output Phase• Production cost per unit.

4. Outcome phase• Return calculation

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Return on Assets (ROA)

Sales100.00$

Gross Margin20.00$

Net Profit Subtracted by2.00$

Subtracted by 80.00$ Net Profit Margin 18.00$

0.02 Divided by COGSTotal Expenses

100.00$ Return On Assets Inventory

Sales 130.05 Times

Sales100.00$ Added to

Current Assets2.5 Divided by 30 13.00$

Asset Turnover 40.00$ Accounts ReceivableAdded to

Total Assets 10 Added to4

Fixed AssetsOther Current Assets

Identifying Critical performance gaps


Inte

rnal

Pro

cess

Stak

ehol

der

Lear

ning

& G

row

th

Reduce Re-Activities thru ABC/M

Establish Web Based Self Services

Knowledge Management

Human Capital

Improved Returns on Investments

More rapid and accessible services

Leadership Development

Inve

stm

ents

Strategy Map: Capture a Cause Effect Relationship from the Bottom Up

IT InfrastructureFacilities and Fixed Assets

Economic Model Process

Expand Global Facility Reach

Towards peak performance

TNA (Step 4): New Skills, knowledge and Attitudes

Existing•Skills•Knowledge•Attitudes

Required• Skills• Knowledge• Attitudes

In order for our employees to perform differently, what kind of new Skills, Knowledge and Attitudes they need to have?

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ProcessInput Output

Outcome

Performance Problem1. Establish the Need2. Set success Criteria

Learning Programme3. Candidates

A. Training CommunityPurpose - Checking

A

Performance

7. Changes in Practice

8. Estimate Value

C. Operational CommunityPurpose - Challenging

C

4. Changes in Knowledge and Skills5. Changes in Behaviour6. Changes in Support Environment

B. Operational CommunityPurpose - Steering

B

Mapping Purpose to the Systems ModelINPUT OUTPUT ANALYSIS

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GRAPHIC ILLUSTRATION OF PERFORMANCE IMPROVEMENT

ROA as a KPI for the CEO

105%600 200

ASSETS

1010%500 Before 100

400 Ă Industry Standards

300 ß 1020%

č 50200 After

100

0

0 10 20 30 40 50

PROFITS

19

Sale per ringgit Advertising

Advertising Sales/advertising

KPI2

After

Before

Before After Sales

19


IMPROVEMENT MODELS

MACRO - ROE Chart• Departmental strength and

weaknesses• Benchmark against industry

standards• Cascading the targets• Performance improvement

metrics• Strategic mappings• Team buildings

MICRO - input output dimension

• Individual Strength and weaknesses

• Benchmark against industry standard

• Root cause analysis• Performance appraisal• Performance network• Competency gaps


5 steps in evaluating impact

Step 1 – determine performance objectives

Step 2 – accumulate input costs

Step 3 – compute realistic key performance indicators

Step 4 – obtain the output benefits / income

Step 5 – Calculate the ROI


Learning tasks - build the following business performance models.

• Corporate Plans• Marketing plans• Operation plans• Staff plans• Financial Plans


Our services - a summary

• Consulting – Training need analysis– Performance Audit– Develop effective business plans– Install the performance management system

• Seminars / Workshops– Performance improvement – 2 day – Business Metrics – 2 day

• Team building – A winning, efficient and effective teams

The End

© Arriffin 012-2786282


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