April 2016 1

C O N T E N T S

April 2016 2

Goalsetting @ NIIT A typical BSC BSC Key Terminologies Types Of BSCs Key Changes in BSC FY17 My Performance Scorecard BSC Creation guidelines BSC Approval Workflow Individualization BSC changes due to role change Variable Compensation Parameters Timeline :: 31st May 2016 Implications of Non-Compliance

Strategies & Focus Areas of Business Group

Goals of a Business Unit/Practice/Vertical

Goals of a Function, Department or Team

Goals of a Role

Goals of an Individual NIITian

BG HEAD

Functional HEAD

IBU/ Practice/ Vertical

HEAD

Goal Setting @ NIIT – Cascaded Goal Setting

April 2016 3

A Typical BSC

April 2016 4

BSC : Key TerminologiesKPA • Key Performance Areas (e.g. Finance, Customer, Internal Process, Learning & Growth)

Performance Measure • Parameters that are objectives and Outcomes

Calculation Method • Detailed calculation method or formulae being used to compute the achievement

Unit of Measurement • Unit used to quantify the target/threshold target wherever applicable

Data Source • Source where the data is obtained from to establish the achievement

Parameter Type• Standard refers to the parameter with standard targets e.g. Slippage % where for every one

in a particular role having this parameter will have the same target. In all other situations itwill be non-standard

VC Parameter• Applicable to identified P&L Leaders covered under VC plan to identify whether it’s a VC

parameter or not. Wherever it is "Yes" it is a VC parameter

VC Weightage• Weightages to be assigned to the identified VC parameters depending on the criticality.

The total weightages should add up to 100%

Annual Target • Goal to be achieved against the parameter during the year

Performance weightage• Weightages to be assigned against each BSC performance measure depending on the

criticality. This will be used to compute the over all BSC achievement %age. The totalweightages should add up to 100%

Upside• Applicable to following parameters - Revenue, Gross Margin, Gross Profit, Operating

Profit, Collection, Order Book

Achievement Flag• To specify in each parameter whether higher the achievement than target the better it is or

lower the achievement the better it is.

April 2016 5

Types of BSCs for an Individual NIITian

Type of BSC Parameters Targets

Standard Standard Standard eg Faculty/Content Developer

Customized Standard Non-Standard with minimum norms against some parameters

(Sales Roles)

Unique Mostly Non-standard

Non-Standard

April 2016 6

Wildly important goals, 6-8 parameters for all

R&S

Quarterly targets for FINANCE KPA & Customer Acquisition

parameters under CUSTOMER KPA for R&S ;

Half Yearly targets for financial goals for upto Q

Simplified Unique BSC creation thru the module

Multiple BSC templates for STANDARD &

CUSTOMIZED BSC templates

Introduction of Monthly Performance Score Card

Reduced SLA of 1 working day for new Parameter creation

BSC FY17 :: KEY ENHANCEMENTS

April 2016 7

• To drive the culture of MonthlyPerformance reviews

• Introduction of Monthly PerformanceScore Card - Mandatory MonthlyPerformance Review for all CLC membersand all R&S through the online ‘MyPerformance Score Card’ by 10th of thefollowing month

• Complete CLC BSC view (Goals & Actuals –monthly & CYD ) to CEO and CFGmembers

• Reporting /Reviewing Manager & HRView

• Option to upload attachments in themonthly performance score card

• All managers to drive Monthly BSC

Performance Reviews; HR available for

facilitation if needed

BSC as a “Live” Scorecard for

NIITians to see where they stand

in terms of

achievementagainst goals

My Performance Score Card

April 2016 8

My Performance Score Card

April 2016 9

11-Apr-2015

• A BSC should have 6-8 Lag Measures which are critical for the role for R&S; 7-9Measures for up-to Plan Q

• Lead measures only if there is a critical initiative

• Measures to be in line with the business strategy & focused on personalcontribution &/or uniqueness of the role

• Financial KPA to have weightages not less than 65-75% (for P&L Role holders)

• Sales Roles to focus on sales parameters ONLY; not mandatory to have InternalProcess and L&G Parameters

• Restrict usage of Inter-connected parameters (one leading to the other)

• Restrict duplication of goals in the multiple roles in the same hierarchy – dividedaccountability

• Data Source should be an independent source and auditable

• Avoid supervisor rating as Unit of Measurement; to be used only underexceptional situations.

• Avoid Zero as targets. Reconstruct the Calculation Method in such a way thatZero does not need to be captured as a target. Wherever Zero is captured as atarget, auto computation of the achievement will not be possible.

BSC Creation Guidelines

April 2016 10

• Periodicity of targets:

• Lead & Lag Measure:• Lag Measure – It is an after-the event measurement, essential for charting progress

• Lead Measure – More difficult to determine than lag measures. They are predictive and therefore donot provide a guarantee of success.

BSC Creation Guidelines

April 2016 11

KPA Lag Indicator Lead Indicator

FINANCIAL

Broaden Revenue Portfolio Revenue Growth Add 3 more products to the portfolio this year

CUSTOMER

Customer Retention Customer Retention % Improved Customer Service

INTERNAL PROCESS

Reduce Operational Problems Products/Service Error Rate Hours spent with customers

LEARNING & GROWTH

Alignment of goals to company strategies

Goal alignment of all employees to company strategy

Growth in Revenue Per Employee

BSC Approval Workflow

April 2016 12

STD: NIITian submits the BSC, after Individualization if applicable, to the immediate supervisor.

CUST: NIITian does the Individualization if applicable and updates the targets and submits the BSC to the immediate supervisor.

On immediate supervisor approving, the BSC gets frozen.

The “individualization” if applicable needs to be done within 5 working days from the date ofreceipt of your online BSC. If not done the BSC will get auto forwarded to the immediatesupervisor.

Supervisor will have 3 working days from the date of receipt of your online BSC. If not donewithin these 3 working days, the BSC will get auto frozen.

If the 1st Level modify the BSC then history will be maintained and NIITian will get an auto triggercommunicating the changes and that he can view the BSC with changes.

BSC will remain in not frozen state for 72 Hrs for any subsequent modification after which it gets auto-frozen.

STANDARD & CUSTOMIZED BSC APPROVAL WORKFLOW

BSC Approval Workflow

April 2016 13

NIITian creates &

submit the BSC to

1st Level Supv.

BSC submitted to the PEM

for validation if NIITian is at

Level up-to R4

1st Level Supv. has the

option to send back, modify

or submit the BSC

Is the 1st

Level is at S7

or above?

PEM Validates

and freezes the

BSC

BSC submitted to the Biz HR

for validation if NIITian is at

the Level of R5 and Plan S

Biz HR Validates

and freezes the

BSC

BSC submitted to the PEM/Biz

HR for validation & PEM/Biz

HR submits to 2nd Level Supv.

Is the 2st

Level is at R4

or below?

2nd Level Supv. Freezes

the BSC

BSC submitted to the

next Level till it

reaches an R5 supv.

in the hierarchy

BSC sent back

for

modification

BSC Ok

BSC Not Ok

Yes

No

Yes

No

R5 Level supv.

freezes the

BSC

UNIQUE BSC APPROVAL WORKFLOW

BSC Approval Workflow

April 2016 14

CLC BSCs

NIITian creates and submits the BSC to 1st Level Supv.

1st Level validates & submit the BSC to PEM, BSC goes from PEM to Biz HR and then to 2nd Level

CLC BSCs submitted to next level till it goes through the whole defined hierarchy and gets frozen

For Standard and Customized BSCs, to take care of the additionalresponsibilities, if any, option to individualize and add PerformanceMeasures up to a maximum of 20% weightage will be possible.

No modifications to the standard Performance Measures and Targets canbe made.

These could be through addition of single or multiple PerformanceMeasures where weightages can be assigned in the multiples of 5% up to amaximum of 20% weightage.

Depending on the total weightages being assigned to these additionalPerformance Measures, the weightages already assigned to the StandardPerformance Measures will get reset automatically. However, no changeswould be made to the weightages assigned to the PerformanceMeasures under the “Financial” KPA.

Weightages will get back to normal if Individualized Parameters get deleted.

All such modifications will need to be approved by the immediatesupervisor.

Individualization of BSC

April 2016 15

• In-case of Role Change new BSC needs to be created for New Role. If it isSTAND/CUST, defined template for that role will be mapped. If it is UNQ “CreateBSC” linked will be enabled for BSC creation for that new position

• NIITian will have separate BSC Blocks for each Role

• Extend Role option is available if same BSC with old targets needs to be created fornew role

• New BSC should be created and made online within 1 month of any such change

• BSC Delimit option is available to add a new BSC Block without Role Change

• BSC can be delimited to a desired duration and new BSC Block (Blank or copied) canbe assigned

• New BSC should be created and made online within 1 month of any such change

BSC change due to Role Change

April 2016 16

Change of BSC without Role Change

VC Parameters

P&L Leaders and a few identified critical role holders will have customizedIndividual Variable Compensation Plan.

The VC parameters will be the critical financial parameters with EBIT being thedefault VC parameter.

Threshold Target & Payout on achievement of threshold target, Upside Rules willbe according to the defined Individual VC Plan

ALL VC Parameters to be approved by the respective Business Group Heads &CEO. Such BSCs will be deemed complete after such approvals only.

Variable Compensation (VC) Parameters

April 2016 17

NIITians are expected to discuss with their supervisor & finalize the BSC and ensure that the

BSC is uploaded in the Online BSC system latest by

31st May 2016

What is expected from NIITians

April 2016 18

PACE 2016 will not be deemed complete until BSC FY17 is

approved and online.

Implications of Non-Compliance for NIITians

April 2016 19

Thank You!

April 2016 20