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Presentation on Performance Management System
An integrated approach
Kaushik NandiSeptember 8, 2008
Page - 1 What is Performance Management?
From "Performance Management - A Briefcase Book" by Robert Bacal (McGraw-Hill)
“Performance management is an ongoing communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations and understanding about:
• the essential job functions the employee is expected to do• how the employee’s job contributes to the goals of the organisation• what “doing the job well” means in concrete terms• how employee and supervisor will work together to sustain, improve, or build on existing employee performance• how job performance will be measured • identifying barriers to performance and removing them
An iterative process of observation and communication to support, retain and An iterative process of observation and communication to support, retain and develop exceptional employees for organizational success.develop exceptional employees for organizational success.
Page- 2What is Performance Management?
In simpler terms…
In simpler terms, “Performance Management” refers to the process of establishing goals, assessing employees and implementing the annual appraisal process.
The goal of Performance Management is to create a consistent, fair and equitable process for the establishment of performance standards across an organisation.
Research has found SEVEN independent parts of Performance Management in most organisations:
• Development of individual goals• Alignment of goals across the organization• Manager assessment of performance • Employee self assessment of performance• Peer or 360 assessment of performance (multirater assessment)• Competency assessment (Potential appraisal)• Coaching & development and related planning for future career options
Page- 3A major Confusion.. Performance Management &
Performance Appraisal
Most of us mistake Performance Appraisal for Performance Management.
Performance Appraisal is but only one part of the bigger process of Performance Management.
Hence Performance Appraisal/ Performance Review/ Employee Review fits inside a bigger picture called Performance Management.
What’s critical to understand is that Performance Appraisal, on its own does not result in great gains in performance or productivity.
Page-4 Evolution of Performance Management System
Page- 5Integrated Performance Management System
Why do we need it?
Traditional approach of Performance Management has certain pitfalls.
3. Traditional output measures alone are incomplete as management tools. It does not tell executives how to improve.
5. Does not identify or increase understanding of the core issues driving current performance.
7. Measures tend to be retrospective rather than proactive
9. Reviews results instead of causes for those results.
Hence we move forward for an INTEGRATED Performance Management System
Page- 6Integrated Performance Management System
What is I-PMS?
I- PMS is an enterprise wide management system that links strategic objectives, core business strategies, critical success factors and key performance indicators.
Strategic ObjectivesCore
Strategies
Critical SuccessFactors
Key Performance
Indicators
Page- 7Integrated Performance Management System
The approach
DOCUMENT AND AUTOMATE FOR NEW SYSTEM
CARRY OUT COST BENEFIT ANALYSIS
DEVELOP IMPLEMENTATION PLAN
IDENTIFY TRAINING & DEVELOPMENT REQUIREMENTS
ENSURE CONTINUOUS IMPROVEMENTONGOING SUPPORT
DEVELOP SCOREBOARDSDETAILED DESIGN
DEFINE KEY PERFORMANCE INDICATORS (KPI)
DEFINE CRITICAL SUCCESS FACTOR
DEVELOP PERFORMANCE MODEL
UNDERSTAND ORGANISATION GOALS AND STRATEGIES
CREATING IMPLEMENTATION TEAM
SENIOR MANAGEMENT SUPPORT & COMMITMENTCONCEPTUAL DESIGN
STEPSPHASES
Page- 8Conceptual Design Phase
Senior Management support & commitment
Senior Management needs to be aligned with the new process as they exhibit significant reservations. The reasons include:
• Familiarity and comfort with existing measurement system
• unsure about how the new system will affect actions and behavior of subordinates
• unsure about how new measurement will affect overall financial performance and stakeholder expectations
• existing measures provide time- tested, understandable signals.
Since the new system cannot succeed without Senior Management involvement, we use a technique called Awareness, Buy-in, Ownership (ABO) Continuum, to gauge the level of support and commitment among senior managers.
Page- 9Conceptual Design Phase
Creating Implementation teams
For the I-PMS implementation a team is required to be formulated to design the process. The main tasks of this team are:
• interviewing key personnel/ resources.
• documenting the factors that affect the overall performance
• designing specific performance measures to meet unit objectives and
reflect the performance drivers
• performing detailed cost and problem analysis
• develop business models to help define KPIs
• writing user procedures
• developing a communication plan for the implementation
• training / educating others
• supporting the system after implementation
Page- 10Conceptual Design Phase
Understanding the Organization's Goals and Strategies
The I-PMS team thoroughly understands the business and marketplace before formulating the new performance measures.
The relationships among the strategic objectives, core business strategies, critical success factors and key performance indicators are reviewed and analysed
The foundation of the integrated business performance model are based on:
• vision and mission statements
• strategic objectives
• customer requirements and
• compensation and reward systems
Page- 11Conceptual Design Phase
Develop a Performance Model
Page- 12Detailed Design and Implementation Phase
What happens here?
Once we have identified operational KPIs, the implementaion team focus on the specific KPIs that needs to be implemented.
The major functions of the implementation team at this stage are :
• design a scorebaord (Robert Kaplan & David Norton)/ incident log
• data collection and manipulation
• cost/benefit analysis
• identify key training and education needs
• conversion to the new system
Page- 13Detailed Design and Implementation Phase
Communication plan
Page- 14Ongoing Support Phase
Ensuring Continuous Improvement
The issues that need to be addressed at this phase include:
• human factors e.g. application of evaluation programs with the I-PMS, adequate training initiatives to provide skills needed, resources needed to meet goals and implement improvements identified by the KPIs.
• ongoing evaluation and updating of the KPIs to ensure that they reflect and adequately measure critical success factors with the business and environment changes.
• focused measures to combat specific performance problems.
• continuous revision of KPI targets to reflect continuous improvement efforts
Page- 15 I-PMS… Do’s and Don’ts
Page- 16 The PMS structure for Human Resource professionals
Page- 17The Benefits of Integrated Performance Management
System
Thank You…Hope I can answer your questions
Kaushik NandiDeputy Manager- Human Resources
Colwell & Salmon Communications (I) Ltd.Mob: +91-99107 04662
Email : [email protected]
