PERFORMANCE MANAGEMENT SYSTEM AT BPCL

Company Profile – Bharat

Petroleum Integrated Petroleum Refining and Marketing

Company

Fortune 500 & Forbes 2000 company

Sales Volume 27 Million MT

Revenue US $ 31 Billion per annum

Two Refineries at Mumbai & Kochi and One

subsidiary Refinery at Numaligarh

Large distribution network across India – 425

locations

Network of 8400 Retail Outlets and 2,200 LPG

Distributors

14200 employees

PMS Journey

April 1999 –Strategic shift in approach to PMS by way of introducing ‘Balanced Score Card’ concept

April 2003 –Linkages with reward mechanism through introduction of ‘Performance Related Incentive Scheme’ along with relative ranking (bell curve) introduction

April 2009 – Leveraging of technology (SAP Platform) for Talent Management beginning with PMS

October 2009 - Launch of Strategic Performance Excellence workshops – Rigorous, involved process of creating alignment between business strategy and individual goals.

Purpose of PMS

To facilitate achievement of the Vision and Business Plans of the Corporation and foster development of every management staff, thereby gaining competitive advantage in the market

Objectives of PMS

Create awareness of Corporate and SBU/ Entity goals

Translate such goals into tangible objectives and measures at the individual level through discussions between Appraiser and Appraisee

Identify managerial attributes/ competencies necessary to achieve the goals

Establish a formal process of continuous feedback on performance

Identify developmental plans to enhance performance

Provide an input for deciding career progressions and rewards

Process Flow

Performance Planning30th April15th May of Maximum End Date Process / Activities

Performance Planning30th April

Appraiser & Appraisee discuss and plan KRAs, objectives and measures.

The plans are recorded in the Performance Management Map (PMM) under four perspectives – Customer Perspective , Financial Perspective, Internal Processes & Learning & Growth and signed by Appraiser and Appraisee.

Expected behaviours against the Generic attributes and the 5 Critical Competencies required for the role during the given year is finalised and the expected behaviour is mutually discussed and understood.

Staff Development Plan (Section III) is completed

31st October Mid Year Review completed

the next year Appraiser completes writing of Achievements vis-à-vis KRAs and discusses the same with Appraisee

15th June Completion of the Review and Moderation Process

30th June Moderated marks conveyed to Appraisee. Feedback on Managerial Attributes given to Appraisee.

30th June Review of SBU / Entity performance by Apex.

15th July PMS report received by HR for calculation of Incentive as per PRISM.

Relative Ranking process and Values

Performance Levels

Range of PMS Score

Percentage

Level I 91 & Above Up to 15%

Level II 86 to 90 Up to 30%

Level III 81 to 85 Up to 30%

Level IV 71 to 80 Up to 15%

Level V 55 to 70 Up to 10%

Level VI Below 54 No fixed percentage

Linkage of PMS with other HR processes

Career transitions

Progressions

Staff development

Payment under ‘Performance Related Incentive Scheme for Management Staff’ (PRISM) /PRP

The Challenge of strengthening the PMS

How do we achievehigh degree of alignment between

business plan and individual goals

consistency in KRAs across the similar roles e.g. Territory Managers

high degree of discipline especially in terms of time line

high degree of standardization in end to end PMS process

We strengthened the system by

Leveraging technology by launching Integrated PMS on SAP Platform The Objective: Automate a critical performance monitoring process to

ensure 100% compliance and on time delivery of the performance value chain

Demonstrate Transparency, Ease of Use & effective Internal Cross Learning

The Action: Automated a comprehensive e-PMS using SAP platform

with standardized tools & templates (effective PMS cycle 2008-09)

Touched each & every employee & made their role relevant Distinctive connection established between corporate

strategy & individual KRAs & Objectives by introducing concept of ‘Default KRAS’

Initiated Development of dashboards for each line manager for all tangible measures across for easy review

Process Flow – Preparation Stage

Position

Mapped Role / Job

is assigned

Predefined SBU/ Role specific

KRAs

Individual KRAs by

Line Manager

Employee

Process Flow – Planning Stage

Create KRAs / Finalize

Attributes andAdd

to the TemplateBased on the Job

Modify KRAs / Attributes

And Measures

PMS Document Finalized with- KRAs- Objectives- Measures- Attributes

EMBEDDED HR

Preparation Stage Planning Stage

PMS Template contains– Personal/ Organization Data– Appraiser/ Reviewer– KRAs based on Role / SBU– Attributes

Document is finalized

Moves to Next Stage

Appraisee Acceptance

APPRAISEEAPPRAISER

Process Flow - Review Stage

Review of KRAs / Suggest Changes

Reset KRAs/ Measures(Add / Delete / Modify KRAs)Comments on performance

PMS Document Finalized with- KRAs- Objectives- Measures- Attributes

From Planning Stage Mid year Review Stage

Document is finalized

Moves to Next Stage

Appraisee Acceptance

PMS Document Finalized with- KRAs- Objectives- Measures- Attributes

APPRAISEE APPRAISER

Process Flow – Final Assessment

APPRAISEE

(Self Appraisal)

APPRAISER

(Final Assessment)

REVIEWER

(Review of Final Assessment)

From Review Stage Final Assessment Stage

Embedded HR Facilitates

MODERATOR

(Review of Final Assessment)

APPRAISER

(Sharing of Marks / Recording Comments)

Appraiser FacilitatesProcess

Completed

PMS Document Finalized with- KRAs- Objectives- Measures- Attributes

We strengthened the system by

Launch of Strategic Performance Excellence workshops – 30 workshops covering around 900 key role holders

The Objective :

Establish a comprehensive connect between strategy at the Business level & performance drivers at the individual level

Ensure that each and every role holder sees a clear connect between their individual goals with that of their Business or entities

To help all functions & role holders collaborate to ensure that objectives are best achieved when role holders work as an effective team chasing performance

Performance Management Excellence

The Action: Articulation of Strategies for next three years and creating

business/entity wise strategy maps Established a Strategy on Page as

a learning process for role holders to appreciate strategic cascade.

Converting strategies into measurable indicators at various levels

Setting goals & targets against the standard metrics

Putting in place measurement and monitoring mechanism

Designing a holistic feedback and development process for sustained

performance

Reiterating the need for role holders to understand and appreciate

how effective leadership will help them build a credible PMS program

………15 workshops completed covering 4 SBUs and 3

Entities

Thanks