1. Managing Performance

8/14/2019 1. Managing Performance

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St rategy & Execut ionSpeed & Balance

Senior Management Forum

Strategising for the New BusinessLandscape

25 April 2001


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St rategy & Precision inExecuting

Speed & Balance inManaging Business Growth


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Super ior Execut ion

Inseparable from St rategy Most businesses with mediocre st rategieswil l do well if you execute well. A boldst rategy executed poor ly is very bad.

Therefore, you need relent less follow up onexecution.

Chairman, global food company

I t hink a great st rategy by itself,wit hout efficient execut ion, will fail.A bad st rategy wit h excellent

execut ion will probably do bet ter .

CFO, Elect r ic Ut ilit y.


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Per formance EthicsMc Kinsey Survey

Mission

Targets

Organization

PerformanceFeedback

4.3

3.9

3.4

3.0

1.9Consequence

Management

Must Dos - To be wor ld class in all 5 areasExcept ionally st rong embracementof the organizat ion

Unique clar it y of purpose

Organizat ion unit s and targetscould be more per formanceoriented

W or ld Class Target = > 4.3


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Per formance EthicsMc Kinsey Survey

Mission

Targets

Organization

Performance

Feedback

4.3

3.9

3.4

3.0

1.9ConsequenceManagement

W e are not managing thenon per formers. Theres lowconsequence of not

performing.

Basics are clear ly in place, but links toindividual per formance needreinforcement . Need to fur ther

st rengthen coaching & m entor ing.


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Performance EthicsMc Kinsey Survey

Coordinat ion & Cont rol Mot ivat ion

Peopl

e

Financ

ial

Opera

tional

Incent

ives

Opportunities

Values

2.8 3.73.42.23.5 3.7

Common = 2.5Best Pract ice = 3.5

Distinctive = 4.5

Choose one lever from each group to be dist inct ive at .


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Coordinat ion & Cont rolSt rength & W eaknesses

Operational+ve Comprehensive operat ional targets;

-ve W eak link to individual per form ance and rewards

Financial+ve Adopt ion of VBM & benchmarking;-ve Lack of r igorous financial KPIs

People+ve Emphasize on t raining-ve Coaching & development not

common, prefer formal feedback. P F O2.8 3.5 3.7

Common = 2.5

Best Pract ice = 3.5

Distinctive = 4.5


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Mot ivat ion LeverSt rength & W eaknesses

Incentives+ve At t ract ive in Malaysian

context;

-ve Lim it ed use of non financialincentives

Opportunities+ve Abundant learning oppor tunity for staff;

-ve Not all oppor tunit ies given to staff

Values+ve Focus on contr ibut ion to the count ry

-ve At t ract internat ional talents

I O V

3.73.42.2

Common = 2.5

Best Pract ice = 3.5

Distinctive = 4.5


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PMS Survey - Planning

+ve Our organisat ion has clear business goals

+ve My per form ance expectat ions are linked tothe business plans

? Im clear about t he results Im expected toachieve in m y job.

-ve My Supervisor and I plan my per formanceexpectat ions at the beginning of my newper formance year .


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PMS Survey - Coaching

+ve My immediate supervisor is accessible andapproachable when I have work related issue toresolve or need direct ions in decision m aking.

+ve Gives me the informat ion or assistance I need toaccomplish m y per formance expectat ions.

? My Supervisor gives me feedback on how Im doingtowards achieving the result s.

? My Supervisor gives me feedback on how Im doingwith regards to the behaviours expected.

-ve My Supervisor and I hold progress reviews to

discuss my per formance in my job at least two

t im es a year .


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PMS Survey - Reviewing

+ve I know what I need to do to meet expectat ionsin my job

? Our organisat ion has a fair system forevaluat ing an employees performance.

? I have a clear understanding of how my

per formance is assessed

-ve My supervisor and I worked together to designan individual development plan for me


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PMS Survey - Rewards

+ve Bet ter per formers are rewarded more thanaverage performers.

? Compensat ion at my company mot ivates meto work hard on my job.

? W hen things go well in my job, my

contr ibut ions are recognised often.

-ve Our cur rent pay system encouragesemployees to wor k as a team.


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What Gets Measured, Gets Done;What Gets Reviewed, Gets

Managed;What Gets Feedback, Gets Done

Well;

What Gets Rewarded, GetsRepeated.


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Managing St rategy &Managing People Are

Inseparable

W hy people is our most over lookedlever?

W hy our pract ices show that we are

separat ing the two issues?

Could an increase in opportunit iesaffect morale and retains super iorperformers?


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Performance Dist r ibut ion -

99/00

Above Average Performers ranges from 9% to 34%

among OPUs.

0

500

1000

1500

2000

2500

3000

3500

5 4 3C 3B 3A 2 1


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Under Per formers - Execs

1.3% (65 staff) of t heexecutives populationRat ing 3C is 1.2 %

Rat ing 4 is 0.14%First T imer (FY00) -68%

Consistent UnderPer former - 20%Yo-Yo Syndrome

Per former - 12%

68%

20%

12%

1st Timer Consistent Yoyo

Percentage of below 3B Per formers by Groupings


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Under Per formers -Non Execs

1.6 % (116 staff)of thePopulation

Rating 3C is 1.5 %Rat ing 4 is 0.1%Rating 5 is 0.04%First T imer (FY 00) -

58%Consistent UnderPer former - 24%

Yo -Yo Syndrome -18%

58%24%

18%

1st Timer Consistent Yoyo

Percentage of Below 3B Per formers by Groupings

T t l N b f St ff


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Total Number of StaffResigned by Year

Should our retent ion rate depend somuch on t he economic sit uat ion?

0

50

100

150

200

250

Total Staff

Resigned

1995 1996 1997 1998 1999 2000

Years

4.5%

3.8%

4.4%

1.7% 1.5% 1.5%


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Exit Interview Findings -

Period 1/6/ 2000 - 31/1/ 2001 Blaming Culture

Lack of Coaching/Counseling

Lack of recognit ion

Management nottransparent

PMS not proper lyimplemented

Career developmentnot t aken seriously

Salary not compet it ive

54%

17%

24% 5%

Better Job Offer

Career Advancement

Personal Reasons

Further Studies

Exit Interview Findingsby Category


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0

40

80

120

160

200

240

280

320

360

400

440

480

520

200 300 400 500 600 700 800 900 1000 1100 1200

Line 1 P90 P75 MED

P25 P10 AVG PETRONAS

Hay Compensation Report (June 2000 Base Date)

Total Remuneration - Executives

(Data Consolidated From 87 Organisations)

AVGMED

AnnualRinggitMalaysia

(RM0

00)

PETRONAS


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2122

2324 25

2627

2829

200

40

80

120

160

200

240

280

320

360

400

200 300 400 500 600 700 800 900 1000 1100 1200

Line 1 P90 P75 MED

P25 P10 AVG PETRONAS

Hay Compensation Report (June 2000 Base Date)

Annual Base Salary - Executives

(Data Consolidated From 87 Organisations)

AVGMED

AnnualRinggitMalaysia

(RM0

00)

PETRONAS


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Staff Movements by BusinessUnits

0

50

100

150

Total Number

of Staff

Business Units

Total No of Staff 119 75 114 83 14 10 16 141

E & Gas Petc Oil Mari TRM Educ HCU

Tot al staff movements in year 2000 is 572.Only 11% of the executives are t ransferred to other jobs.


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Is The W ay Forward=

Going Back t o Basics?


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Creat ing High -Per formance Team

To create a high -

performance team, we must

replace typicalmanagement act ivit ies like

supervising, checking,

monitoring and controlling

with new behaviours like

coaching andcommunicating.

Ray Smith, CEO, Bell Atlantic

Im in a rut. They throw theball, I br ing it back. They

throw it again, I br ing itback again.

W hat s t he point of it all?


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LeadershipA vision is only a dream if itdoes not have thecommitment and support

from the people involved.

You can only be

as good as yourpeople


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For The W ant of Feedback

For the want of feedback, residue accumulated.

Because residue built up, trust was lost.For the want of trust, working together became

difficult.

Because working together became tedious,

decisions were avoided.For the want of making decisions, the business

failed.All for the want of feedback.

Thomas G. Crane


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Feedback

360 Feedback and Mentoring are

the two most useful learning

strategies to achieve developmentalobjectives apart from Job Rotation

and Special Project Assignments.

1998 International Survey by

Linkage International, 1998


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Feedback

360 Feedback and Mentoring are

the two most useful learning

strategies to achieve developmentalobjectives apart from Job Rotation

and Special Project Assignments.

1998 International Survey by

Linkage International, 1998


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Coaching

We must see people in

terms of their futurepotential, not their pastperformances.

Great Job, As areward, Id l ike you

to prepare theother 65 repor ts


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Developing Talent Pool

A single

conversation acrossthe table with a wiseman is worth a

months study of

books.Chinese Proverb

I realise, Im being groomed

as your successor, Sir

But is all t his absolut elynecessary?


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Mentoring

The art of Mentoring . Passingalong the wisdom

Learning is notattained bychance, it must be

sought for withardor and attendedto with diligence.

Abigail Adams

W hat is it Bob?

You seem a lit t le

wit hdrawn today


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Get t ing the soul at work

We need to seeemployees aspeople with lives,ideas, dreams and

fears.

Lighten up Ted,I know you are

in heresomewhere


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The Future Depends on Us


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Thank you

Documents

1. Managing Performance