2015 Balance Scorecard (“BSC”) · 2015-06-05 · STRICTLY PRIVATE & CONFIDENTIAL 10 Scope for...

STRICTLY PRIVATE & CONFIDENTIAL

2015 Balance Scorecard (“BSC”)

OSK / PJD Employee Briefing Deck

STRICTLY PRIVATE & CONFIDENTIAL1

Understanding BSC


Mission

& Vision

Strategy

Strategic Goal

Strategic Objective

Measurements

Our game plan

What we must do well in

order to implement

strategy ?

How strategic success

is measured and

tracked

Why we exist ?

What we want to be ?

Overview of Key Components for BSC

What we need to anchor

and focus ?


Perspectives within BSC

Financial – How should we enhance shareholders' value?

Sample measurements: revenue, profit before tax, sales

Customer – How should we appear to our customers?

Sample measurements: customer satisfaction, market share

Internal process – What business process must we

excel in?Sample measurements: operations management, quality control

Learning & Growth – How will we sustain our ability to

change & improve?Sample measurements: employee satisfaction, employee training

VISION & STRATEGY

1

2

3

4


Cause-and-Effect Linkage (Strategy Map)

Financial

Customer

Internal

Process

Learning &

Growth

To drive financial success

To deliver unique sets of

benefits to customers

To build strategic capabilities

To equip our people

Short-term

Lagging

Long-term

Leading

Inputs

Outputs

4


So, what is BSC?

1

2

3

4

5

Amanagement system to help translate organization

strategy into operational objectives

Emphasizes financial & non-financial measures in 4

perspectives

Balances short and long-term measures

Monitors outcome measures with performance drivers

Provides feedback around both the internal business

processes and external outcomes


Importance of BSC to the Group


Importance of BSC

1

2

3

4

5

Identifies critical areas for an organisation to be successful

Instills focus on critical areas & sets accountability

A framework to communicate strategy in operating terms

Consistent framework to assess & monitor performance

Fully integrated approach to achieve strategies


Importance from Employees’ Viewpoint

1

2

3

4

5

Enable understanding of strategies and determine how our

contributions fit into the bigger picture

Clear expectations of responsibilities and focus areas

Clear and transparent performance measures (KPIs /

targets)

Objective and transparent performance evaluation

Consistent compensations and rewards (tied to

performance measures)


Scope and Plan for BSC Implementation


Scope for Implementation @ Employee Level

Job B

and

SE1

JE3

OSKP

Jo

b B

an

d

SE1

SS3

PJD

Job B

and

B1

B8

OSKH

Jo

b B

an

d

B1

B8

OSKVI

1Managers and staff within the job band depicted below would be

required to prepare BSC

2 Staff with Job Band below JE3 (for OSKP) and below SS3 (for

PJD) would NOT be impacted by BSC implementation

Approx.140 Approx.950 Approx.50 Approx.10


Phased Approach for Implementation

Strategic Business

Group

Business Area

Division

Unit

Group MD

LEVEL 3

LEVEL 1

LEVEL 5 &

BELOW

LEVEL 4

LEVEL 2

PH

AS

E1

PH

AS

E 2

§ BSC at Entity/Business level

§ Implementation date: 1 April 2015

§ Coordinated by: Corporate Planning

§ Frequency of submission: Quarterly

Individual

Department

§ BSC at employee level

§ Target implementation date: 1 July 2015

§ Coordinated by: Human Resource

§ Frequency of submission: Half yearly

Note:

For calendar year 2015, only 1 submission

at calendar year end


Anticipated Changes with BSC Implementation


Changes to Annual Appraisal Framework

1 BSC Appraisal Cycle*

Current Practice (without BSC)

Pe

rio

d u

nd

er

Re

vie

w

Jan-YY

Dec-YY

OSKP / OSKH /

OSKVIP

erio

d u

nd

er

Re

vie

w

Jul-YY

Jun-YY

PJD

Pe

rio

d u

nd

er

Re

vie

w

Jan-YY

Dec-YY

OSK / PJD

With BSC Implementation

* Appraisal process for FY2015 in respect of PJD staff shall be advised by HR in due course.


Appraisal Weightage & Scoring*

Current Practice (without BSC) With BSC Implementation

Weightage

OSKP / OSKH /

OSKVI

KRA

Competency

Scoring

0 pts – 5 pts

29%

71%

Appraisal Form format

2

3

Changes to Annual Appraisal Framework

Weightage

PJDP / PJDC

KRA

Competency

Scoring

0 % – 100%

40%

60%

Weightage

OCC / Acotec / SGI /

SGIVC

KRA

Competency

Scoring

0 – 200

0%

100%

Weightage

OSK / PJD

BSC

Competency

Scoring

0 pts – 5 pts

50%

50%

* Appraisal process for FY2015 in respect of PJD staff shall be advised by HR in due course.


Cascading BSC


Overview of Phase 2 Cascading Process

LEVEL 5

LEVEL 3

LEVEL 4

LEVEL 7

LEVEL 6

Business Area

Division

Department

Unit

Individuals

Objectives

Measurements (KPIs)

Targets

Objectives

Measurements (KPIs)

Targets

Objectives

Measurements (KPIs)

Targets

Objectives

Measurements (KPIs)

Targets

Objectives

Measurements (KPIs)

Targets

Functional Area


Timeline for Phase 2 Implementation

8 May

2015

29 May

2015

30 June

2015

Business Area L4s & Functional Heads

Department Heads / Unit Heads / Managers & above

Individual staff

Completion of

Phase 2

LevelCompletion

Due Date

2 weeks

3 weeks

4 weeks

BSC Rollout for Employees


Recommended Cascading Steps

1

2

3

4

Explain to all direct reports on your BSC

Share expectations on objectives and KPIs based on their

job scope

Discuss and agree on objectives, KPIs, weightage and

targets. Ensure agreed BSC is in line with your BSC

Sign off BSC and submit to HR

5Provide guidance on how and what to cascade to their

staff


1

2

3

4

Measurements/KPIs must be critical and relevant to the

staff’s job description

KPIs and targets must be in line with superior’s BSC

Weightage for measurements/KPIs must commensurate

with criticality/relevancy

Targets must be measurable, realistic and achievable

Recommended Good Practices

- KPIs and Targets Setting

5Superior and staff mutually agree on the contents before

finalising BSC


* Mid year review not applicable for FY2015

1

2

3

4

Each staff is required to track their own

measurements/KPIs and performance

Regular dialogue between superior and staff (quarterly

basis)

Superior and staff conduct a mid-year* review of the staff’s

BSC

Adjust measurements/KPIs and/or targets during mid-year

review (if required), subject to mutual agreement

Recommended Good Practices

- Performance Monitoring

5 Re-sign BSC and submit to HR


Understanding BSC Template for Employees

&

Step-by-Step Guide


Poor Below

Target

Meet

Target

Exceed

Target

Out-

standing Review

Weighting 1 2 3 4 5Actual

Result

Assigned

Score

Weighted

Score

Mid-year

Results

1 10.0% 510.0 555.0 600.0 645.0 690.0 625.0 3.56 0.36

2 20.0% 255.0 277.5 300.0 322.5 345.0 311.0 3.49 0.70

3 10.0% 2,550.0 2,775.0 3,000.0 3,225.0 3,450.0 3,100.0 3.44 0.34

4 5.0% 425.0 462.5 500.0 537.5 575.0 475.0 2.33 0.12

45.0%

1 5.0% 60.0 65.0 70.0 75.0 80.0 70.0 3.00 0.15

2 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15

3 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15

4 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15

20.0%

1 10.0% 60.0 70.0 80.0 90.0 100.0 75.0 2.50 0.25

2 5.0% 1.0 2.0 3.0 4.0 5.0 4.0 4.00 0.20

2 5.0% 1.0 2.0 3.0 4.0 5.0 4.0 4.00 0.20

2 5.0% 510.0 555.0 600.0 645.0 690.0 580.0 2.56 0.13

25.0%

1 5.0% 40.0 50.0 60.0 70.0 80.0 60.0 3.00 0.15

2 5.0% 1.0 2.0 3.0 4.0 5.0 3.0 3.00 0.15

10.0%

100.0% 3.20

Head's Signature:

BSC Weighted Score:

Employee Signature: Appraiser Signature:

Improve quality of products

I agree with the BSC performance appraisal contained herein.

Create conducive working environment Employee engagement survey score

Improve customer loyalty

Customer

Learning & Growth

No. of awards achieved

Net promoter score

Improve customer satisfaction

Execute key action plans

Strengthened OSK Brand/Visibility

% of key initiatives completed

Improve internal collaboration

[ ]

[ ]

Measurements/KPIs

Profit before tax (RM'mil)Increase profit

Value of cross selling

Enhance succession planning

Internal Process

% of identified successors

B01

[ ]

31-Dec-2015

Property

1-Jan-2013

3.0

BSC Performance Score

Years of Service:

Remarks

Customer satisfaction score

Launched net GDV (RM'mil)Offer wider product choices

Division:

Date Joined:

Objectives

Revenue (RM'mil)Increase revenue

Financial

[ ]

Quality assessment benchmarking score�

Balanced Scorecard Performance Appraisal

Department:[ ] [ ]

BSC Code:

Appraiser Name:

Appraiser Designation:

Appraisal Year:

Entity Name:

Employee Name:

Employee Number:

Employee Designation:

[ ]

Increase value of development projects Land bank acquisition (GDV) (RM'mil)

Improve risk management controls Risk Management audit rating

Improve internal controls Internal audit rating

2015 Individual BSC Template (Sample)

Actual

345.0

3,450.0

575.0

70.0

3.0

3.0

600.0

300.0

2,775.0

462.5

60.0

5.0%

Target

5.0% 2.0

60.0

1.0

5.0%

Employee engagement survey score

% of identified successors

BSC Performance Score

20.0%

10.0%

5.0%

1.0

60.0

65.0

1.0 2.0

1.0 2.0

1.0 2.0

65.0

2.0

500.0

645.0

300.0 322.5

3,000.0 3,225.0

537.5

1

2 3 4


Setting Key Performance Indicators (KPIs)


Gaining agreement is good BUT

gaining understanding and buy-in is a must.


KPI Criteria

Well written KPIs are SMART

Quantity – how many or

how much ?

Quality – how well, how

complete or thorough

Monetary – revenue,

profits, expenses

Timeliness – by when,

deadlines, cycle times

34

• Specific•S

• Measurable•M

• Achievable•A

• Relevant•R

• Time-bound•T


Examples of KPIs

Objective Possible KPIs Target

Increase revenue

Revenue (RM’mil) RM10mil

Revenue growth 10%

% of revenue from new products 5%

Improve customer

satisfaction

Customer satisfaction score 3

Average customer complaints resolved period (no. of days) 2

No. of repeated complaints 0

Types of KPIs Possible KPIs Target

Task KPI (Activity-

based)

No. of audits conducted 8

No. of process enhanced 10

No. of marketing campaigns 5

Result KPI

(Outcome-based)

Internal audit ratings 3 (Good)

Customer satisfaction score 3

No. of new customers 20


BSC Team


BSC SPONSOR

BSC Project Structure

BSC TEAM

Tio Jun LimJulie Toh

Lim Hooi SunKoh Siew Hui

Teo Ai Chinn

Liew Shook Fen

Lilian GanLennie Teh

Connie WongBaskar Ramachandran

Marie Elena

Julie TohLim Hooi Sun

BSC CHAMPION

Woon Chong Boon Ong Ju Xing

Andrew WongPuan Sri Khor Chai Moi

Yap Yoon KongOng Ju Xing

Patrick YeeAmelia Ong

Tan Sri Ong Leong Huat

OSKH OSKP PJD OSKVI


Contact Details of BSC Team

Name Entity Contact Number Email Address

Corporate Planning

1 Woon Chong Boon OSKH 03-2166 6225 ext. 378 [email protected]

2 Tio Jun Lim OSKH 03-2166 6225 ext. 381 [email protected]

3 Koh Siew Hui OSKH 03-2166 6225 ext. 376 [email protected]

Human Resource

1 Lilian Gan PJD 03-2162 1111 ext. 228 [email protected]

2 Connie Wong PJD 03-2162 1111 ext. 226 [email protected]

3 Lennie Teh PJD 03-2162 1111 ext. 227 [email protected]

4 Teo Ai Chinn OSKP 03-2161 3322 ext. 228 [email protected]

5 Liew Shook Fen OSKP 03-2161 3322 ext. 268 [email protected]

6 Julie Toh OSKH/VI 03-2166 6225 ext. 307 [email protected]

7 Lim Hooi Sun OSKH/VI 03-2166 6225 ext. 306 [email protected]

Corporate Quality & Training

1 Baskar Ramachandran PJD 03-2162 1111 ext. 239 [email protected]

2 Marie Elena PJD 03-2162 1111 ext. 229 [email protected]


Frequently Asked Questions


Is BSC complicated and difficult to implement?

It’s going to be a learning process for all of us during the initial stage of implementation.

However, along the way, we strive to make BSC a simple yet effective exercise –

eventually making it a way of life in the Group to drive our behaviour.

You May Ask …


Is it a must for all staff to have individual BSC?

Individual BSC is applicable to all executive* and above; clerical staff are not required to have BSC.

Clerical staff will continue with the current practice.

*JE3 for OSKP; B8 for OSKH & OSKVI; SS3 for PJDP

You May Ask …


Will there be more work for me to do?

Extra effort is required, however BSC is not intended to increase

your workload and/or change your job description.

The objective is to instill focus on critical areas and set accountability.

You May Ask …


Will anybody be sidelined?

No.

The intent of BSC is to ensure that you are recognisedand rewarded for your contributions and efforts.

However, as in any organisation, non-performers will eventually be phased out if there is no improvement.

You May Ask …


Will compensation be linked to BSC?

Yes.

BSC provides an objective, transparent and systematic way

to assess your performance, which will lead to consistent rewards and recognitions.

You May Ask …


How can I be accountable for things which are beyond my

control?

BSC is about setting targets which are within your control. Accountability will

drive your behaviour.

Eventually, BSC makes functional units work holistically; and move away from

being silo and territorial mentality.

You May Ask …


Must I set KPI for all 4 perspectives for all my staff?

Ideally, you need to set KPI for all 4 perspectives; however it is acceptable

to have no KPI for financial perspective especially for staff from

support services and operations.

You May Ask …


Can targets set for Level 3 be changed during the

year?

Yes.

Targets could be reviewed and changed under specific circumstances and subject

to relevant approvals.

You May Ask …


Can KPIs and targets set in individual BSC be

amended?

Yes, subject to mutual agreement between superior

and subordinate. The KPIs and targets can be revised during

the mandatory mid-year review.

You May Ask …


Who can I approach in the event if I am unsatisfied with my KPIs or

targets which have been set by my immediate superior?

You are encouraged to discuss with your immediate superior to resolve issues amicably. Failing which, you can highlight your concerns to the

level above your superior.

You May Ask …


The KPI indicated in my BSC does not include my other contributions. How

can these contributions be evaluated?

You will be given due recognition for other

contributions under the Core Competencies

section (50% weightage).

You May Ask …


How do I develop my BSC and the cascading should

come from whom?

Ideally, BSC should be developed with your direct

line superior in consultation with your dotted line superior.

You May Ask …

Who to sign off my BSC?

BSC should be signed off by your direct line superior, who would be responsible for your

evaluation, in consultation with dotted line superior.

If you have dual reporting matrix: direct line reporting to the Business Area with “dotted” line

reporting to Functional Area


DONE

2015 Balance Scorecard (“BSC”) · 2015-06-05 · STRICTLY PRIVATE & CONFIDENTIAL 10 Scope for...

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Transcript of 2015 Balance Scorecard (“BSC”) · 2015-06-05 · STRICTLY PRIVATE & CONFIDENTIAL 10 Scope for...