Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop
description
Transcript of Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop
http://totallyunrelatedrandomanddebatable.blogspot.com/
EMPLOYEE YEAR END PERFORMANCE APPRAISAL[Matching Employee KPI to Company Goals & Benefits Structure]Training Session and Workshop
Kenny Ong
http://totallyunrelatedrandomanddebatable.blogspot.com/
Intro
What is your objective?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Managing Expectations
• Exercise: Please note down one important item you want to learn or get out from this workshop
http://totallyunrelatedrandomanddebatable.blogspot.com/
http://totallyunrelatedrandomanddebatable.blogspot.com/
The McPlaybook*
Make it easy to eat• 50% drive-thru• Meals held in one
hand
Make it easy to prepare• High Turnover• Tasks simple to learn
& repeat
Make it quick• “Fast Food”• Tests new products
for Cooking Times
Make what customers want• Prowls market for new
products• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
http://totallyunrelatedrandomanddebatable.blogspot.com/
Why do we hate Performance Appraisals?
http://totallyunrelatedrandomanddebatable.blogspot.com/
As an Appraisee
As an Appraisor
Complaints about Performance Appraisals
Mgmt/HR
http://totallyunrelatedrandomanddebatable.blogspot.com/
As an Appraisee
Complaints about Performance Appraisals
• Bias• Different Standards• Surprise• Subjective• No linkage*• No differentiation• Secretive• No follow up• No control
http://totallyunrelatedrandomanddebatable.blogspot.com/
As an Appraiser
Complaints about Performance Appraisals
• Cannot remember• Tedious• Subjective• Right targets• Scoring Competencies*• Defensive staff• No $$ to differentiate• Prejudices• Results or Activities
http://totallyunrelatedrandomanddebatable.blogspot.com/
Complaints about Performance Appraisals
• Flexible or Control?• MBO or Character?• Best Practice or Fit Culture?• Backward or Forward?• Quarterly Results or Long-term?• No $$ to differentiate*• Perfect System, Bad performance• Recency and Halo effects• Untrained Appraisers
Mgmt/HR
http://totallyunrelatedrandomanddebatable.blogspot.com/
Complaints about Performance Appraisals - Summary
1. Process problem
2. Form problem
3. People problem
http://totallyunrelatedrandomanddebatable.blogspot.com/
What’s the Difference?
Performance Appraisal Performance Management
http://totallyunrelatedrandomanddebatable.blogspot.com/
Coaching & Counseling
Month 1
Performance Planning
Month 12
Performance Appraisal
Month 2-11
?
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the OBJECTIVE of a Performance Management System?
• What is the ultimate objective of a Performance Management System?
• ‘Performance’ – achievement, • ‘Management’ – controllable, improvement• ‘System’ – predictable outcome, autorun
Summary?• A Predictable process to Improve Controllable
Achievements
http://totallyunrelatedrandomanddebatable.blogspot.com/
What’s In Between Planning and Execution?
Succession Planning (Business Continuity)
Talent Management
Differentiation
Performance Management System
Budgeting + Planning
KPIs
BSC
Business Model
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the OBJECTIVE?
Succession Planning (Business Continuity)
Talent Management
Differentiation
Performance Management System
Budgeting + Planning
BSC and KPIs
Strategy
Business Model
Business Strategy Execution
Talent Management
http://totallyunrelatedrandomanddebatable.blogspot.com/
Intro
• Performance Management System = Business Plan Implementation
• Succession Planning = Business Continuity Planning
• Talent Management = Sustainable Business Performance Management
http://totallyunrelatedrandomanddebatable.blogspot.com/
1. Using Performance Appraisals in Performance Management
http://totallyunrelatedrandomanddebatable.blogspot.com/
“…in the past 18 months, we have heard that profit is more important than revenue,
quality is more important that profit, people are more important than profit,
customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our
performance is inconsistent"CEO, Anonymous
http://totallyunrelatedrandomanddebatable.blogspot.com/
Before we start…
In the old days of HR…• Average training hours per staff• % of staff attending training• # of training programs• % of training programs conducted• Training needs analysis conducted• Competency models developed• Training budget as % of payroll
What’s wrong with this picture?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Before we start…
Moral of the story…
1. Innovation:– Business models– Products– Services
2. Market Leadership
3. Competitive differentiation
Get the picture?
http://totallyunrelatedrandomanddebatable.blogspot.com/
“What is the moral of the story?”
http://totallyunrelatedrandomanddebatable.blogspot.com/
Which Company?
American Customer Satisfaction Index (ACSI) • 64 out of100-point scale: lower than IRS (Tax)• 2nd last among 30 companies surveyed• Lowest 5% among 223 companies surveyed• Bottom 5% of all measured private sector
companies
• 500 million customers
2010 American Customer Satisfaction Index (ACSI) E-Business Report
http://totallyunrelatedrandomanddebatable.blogspot.com/
Which Company?
American Customer Satisfaction Index (ACSI) • 64 out of100-point scale: lower than IRS (Tax)• 2nd last among 30 companies surveyed• Lowest 5% among 223 companies surveyed• Bottom 5% of all measured private sector
companies
• 500 million customers
2010 American Customer Satisfaction Index (ACSI) E-Business Report
http://totallyunrelatedrandomanddebatable.blogspot.com/
Popularly Unpopular
Popularity
≠
Affection
http://totallyunrelatedrandomanddebatable.blogspot.com/
The Integrated and Holistic Performance Management System
http://totallyunrelatedrandomanddebatable.blogspot.com/
Why Performance Appraisal?
Performance
ManagementDevelopment
Motivation
Selection
Evaluation
http://totallyunrelatedrandomanddebatable.blogspot.com/
Talent Segmentation
Group I
(Talent Pool)
23
45
PE
RF
OR
MA
NC
E
2 3 4 5
POTENTIAL• Identify
http://totallyunrelatedrandomanddebatable.blogspot.com/
Employee Differentiation
Group I
(Talent Pool)
Group II
( Potential)
Group III
( Performance)
Group IV
(Counseling)
2 3 4 5
23
45
PE
RF
OR
MA
NC
E
POTENTIAL• Identify
http://totallyunrelatedrandomanddebatable.blogspot.com/
Selection and Identification
PERFORMANCE APPRAISAL
1. Results
2. Values
3. Special Contributions
http://totallyunrelatedrandomanddebatable.blogspot.com/
Selection and Identification
POTENTIAL EVALUATION
1. Capacity
2. Competencies
3. Culture
http://totallyunrelatedrandomanddebatable.blogspot.com/
Selection and Identification
POTENTIAL EVALUATION
1. Capacity
Learn
Next Level
Ambition
http://totallyunrelatedrandomanddebatable.blogspot.com/
Selection and Identification
POTENTIAL EVALUATION
2. Competencies
Competent
Reliable/Consistent
Pressure
http://totallyunrelatedrandomanddebatable.blogspot.com/
Selection and Identification
POTENTIAL EVALUATION
3. Culture
Demonstrate
Improve
Influence
http://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise
Define ‘Performance’ Define ‘Potential’
http://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise
• Exercise:
1.Factors for Performance Appraisal
2.Factors for Potential Appraisal
http://totallyunrelatedrandomanddebatable.blogspot.com/
2. Getting Performance Appraisal Objectives Right
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is Performance Appraisal used for?
Reward?
Discipline?
Development?
Motivation?
Promotion?
Monitor?
www.myCNI.com.my www.OOBEY.com
No wonder our employees are
confused!
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the OBJECTIVE?
• What is the ultimate objective of a Performance Management System?
• ‘Performance’ – achievement, • ‘Management’ – controllable, improvement• ‘System’ – predictable outcome, autorun
Summary?• A Predictable process to Improve Controllable
Achievements
www.myCNI.com.my www.OOBEY.com
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the OBJECTIVE?
Succession Planning (Business Continuity)
Talent Management
Differentiation
Performance Management System
Budgeting + Planning
KPIs
BSC
Business Model
Business Plan Implementation
Talent Management
www.myCNI.com.my www.OOBEY.com
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is Performance Measurement used for?
Reward?
Discipline?
Development?
Motivation?
Promotion?
Monitor?
www.myCNI.com.my www.OOBEY.com
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise: How would your Evaluation System look like for these different objectives?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Behavior-based
Knowledge/Skill based
Results-based
Trait-based
Which system should we use?
Managing Performance = Managing Expectations
What’s YOUR expectation?
Activity based
Refer: Which Performance
Management System should we use?
http://totallyunrelatedrandomanddebatable.blogspot.com/
3. Performance Management
http://totallyunrelatedrandomanddebatable.blogspot.com/
Alignment: 4-Wheels Model
Culture
Business
Model
Strategic Planning
StructurePerson
Leadership
Resources
http://totallyunrelatedrandomanddebatable.blogspot.com/
Alignment: Framework
• Org Structure
• Job Design• C&B• Policies & procedures• Decision making• Job fit• Management Systems• BSC and KPIs• Decentralized & Empower
Structure
http://totallyunrelatedrandomanddebatable.blogspot.com/
Strategy: Framework
• Role modeling• Vision/Mission/Philosophy
• Leadership Style• Delegation & Empowerment• C&B, Promotions• Sense of Urgency• Speak regularly about Performance
Leadership
http://totallyunrelatedrandomanddebatable.blogspot.com/
Strategy: Framework
• Recognition• Recruitment• Training
• Attitude• Values
• Motivation• Self Efficacy• Awareness
• Useful Competencies• Career aspirations• Attribution (control)
Person
http://totallyunrelatedrandomanddebatable.blogspot.com/
Strategy: Framework
Enablers or Obstacles• Technology• Equipment• Materials• Human• Intellectual Property• Partners• Property
Resources
Funding • CAPEX• OPEX
http://totallyunrelatedrandomanddebatable.blogspot.com/
Alignment: Framework
• Focus point• Alignment• Quality• Innovation & Differentiation• Risk taking• Performance Management• Corporate obsession• Decision making
Culture
http://totallyunrelatedrandomanddebatable.blogspot.com/
4-Wheels Model
Culture
Business
Model
Strategic Planning
StructurePerson
Leadership
Resources
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Management Cycle
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Refer to pages 8-9 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Planning
District Engineer, TNB
Duties and Responsibilities
If stated as Accountabilities then the job must produce :
Control, operate and maintain the District Distribution System
Ensure uninterrupted supply to consumers in the district by operating the District Distribution System.
Manage major supply projects to customers in the district.
Ensure satisfaction of the major customers in the district by managing supply and Distribution.
Supervise all technical staff in the district.
Ensure high performance and Productivity of technical staff by adopting proper human resource management methods on selection, training, coaching, counselling and motivation.
Plan and design the High voltage system
Ensure availability of adequate supply for future needs of industries in the district by planning and designing the High voltage System
http://totallyunrelatedrandomanddebatable.blogspot.com/
Results Driven
Activity vs. Accountability
http://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise: Results Description
Key Result Key Activities
1.1.2.3.4.
2.1.2.3.4.
3.1.2.3.4.
4.1.2.3.4.
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise: Results Description Questionnaire
http://totallyunrelatedrandomanddebatable.blogspot.com/
Sources of Goals and KPIs
• Exercise: List down the sources of Goals and KPIs available in your company:– E.g. Job Description (RDQ)
http://totallyunrelatedrandomanddebatable.blogspot.com/
MBO – Sources of KRAs and KPIs, Targets
1. Department Scorecard [E3],
2. Employee’s Job Description,
3. Department SOP,
4. Department Quality Objectives,
5. Corrective Action Requests (CAR),
6. Preventive Action Requests (PAR), or
7. Special Projects relevant to the employee.
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Planning: KPIs and Critical Goals
• Refer to pages 19-23 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Basics of the Balanced Scorecard
http://totallyunrelatedrandomanddebatable.blogspot.com/
Reminder: Why BSC?
• Reason 1: Balanced
• Reason 2: Cause-and-Effect
www.myCNI.com.my www.OOBEY.com
http://totallyunrelatedrandomanddebatable.blogspot.com/
Revenue
Base Retention
Share Gain Positioning Adjacent Market
New Business
Financial
Learning & Growth
Internal Process
Customers
Cost Margin
Cause and Effect
Cash Flow Asset
Operational Excellence
Product Leadership
Customer Intimacy
Investment Strategy
Competencies Information Systems Motivation, empowerment,
alignment
Satisfaction
http://totallyunrelatedrandomanddebatable.blogspot.com/
Financial
Learning & Growth
Internal Process
Customers / Distributors
Revenue GrowthProductivityMarket Value
Department Operations
Supplier & Alliances
External Involvement
Target Markets
Products/ Services
Channel Strategies
Human Resources
Technology
Information & IntelligenceSystems &
Processes
Cause and Effect: An Example
http://totallyunrelatedrandomanddebatable.blogspot.com/
Financial
Learning & Growth
Internal Process
Customers / Distributors
Example: 1st Level BSC & KPIs
Profit after Tax. Revenue. Cash-to-cash cycle. Operating cash flow
Customer Complaints. Customer Acquisition Rate. Product Availability. Product Quality & Service. Renewal Annual Subscription. Distributor Rank Achievement. No. of Active Distributor. No. DC/Regional Sales. Distributor with commission
Customer Database Availability. Accuracy of Forecast Planning. Continuous Improvement. Response Time to Customer Needs. Perfect Order Fulfillment. Inventory Turnover. Number of Effective Sponsoring Program. On Time Delivery. No. of Effective Training. Number of Effective A&P
% of staff evaluated on Core Competency Framework. % of staff with Career Development Plans. No. of training hours completed per staff. % of staff with access to strategic information. Q12 Index. % staff evaluated on Culture alignment
http://totallyunrelatedrandomanddebatable.blogspot.com/
Leading and Lagging KPIs
http://totallyunrelatedrandomanddebatable.blogspot.com/
Cause and Effect
Goal:Healthy!
What are my Vital Signs?•Blood Pressure?•Temperature?•Cholesterol?•Fever?•Chest Pain?•Dizziness?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Cause and Effect
Also known as:
Leading vs. Lagging Indicators
http://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise: Leading vs. Lagging
Lagging?
• Monthly Sales• Customer Retention• Project success • Event attendance• ARPU• Customer Satisfaction• Dealer Satisfaction
Leading?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Financial“To satisfy our stakeholders, what Financial objectives must we accomplish?”
Internal Process“To satisfy our customers, in which internal business processes must we excel?"
Customer“Who are our target customers?What is our value proposition?”
Learning & Growth“What capabilities and tools do our employees require to help them execute our strategy?
Cause & Effect: Strategy
http://totallyunrelatedrandomanddebatable.blogspot.com/
Top Performers and the ‘No Contribution’ Problem
Lagging
Leading
Historical, Outcome, Results, 1st Level, Usually Financial or tangible, Quarterly and Annually
Current, Indicators, Drivers, 2nd Level onwards, usually non-financial or intangible, Weekly, Monthly and Quarterly
http://totallyunrelatedrandomanddebatable.blogspot.com/
Developing ‘Driver’ KPIs
Customer Retention % Lagging, 1st Level
Customer Satisfaction Index
Leading, 2nd Level
On time delivery
Time to market for new products
TNA %
Defect levels, warranty claims
Leading, 3rd Level onwards
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the Objective?
‘Do-or-Die’ KPIs for CNI• Revenue• ARPU
• Sponsoring• Retention
• Commission Plan (BDP)• Product• Corporate Image
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise: What are the Key 1st Level KPIs for your Industry?
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise: Developing your own Leading and Lagging KPIs
http://totallyunrelatedrandomanddebatable.blogspot.com/
B2B/B2G BSC Matching
Revenue
Base Retention
Share Gain Positioning Adjacent Market
New Business
Financial
Learning & Growth
Internal Process
Customers
Cost Margin Cash Flow Asset
Operational Excellence
Product Leadership
Customer Intimacy
Investment Strategy
Competencies Information Systems
Motivation, empowerment,
alignment
Satisfaction
Customer/Client/ Government BSC
Revenue
Base Retention
Share Gain Positioning Adjacent Market
New Business
Financial
Learning & Growth
Internal Process
Customers
Cost Margin Cash Flow Asset
Operational Excellence
Product Leadership
Customer Intimacy
Investment Strategy
Competencies Information Systems
Motivation, empowerment,
alignment
Satisfaction
Your BSC
1. Draw your ‘customer’s’ BSC
2. Match their CP/IP with your CP
3. Identify IPs that support/conflict
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Planning: KPIs and Critical Goals
• Refer to pages 24-25 of the Performance Management Workshop –Workbook-
• Refer to “Attachments” for examples of KPIs
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Standards
http://totallyunrelatedrandomanddebatable.blogspot.com/
MBO Standards
A Excellent
B Good
C Average
D Poor
E Useless
http://totallyunrelatedrandomanddebatable.blogspot.com/
MBO Standards
A Excellent
B Good
C Average Good
D Poor
E Useless
http://totallyunrelatedrandomanddebatable.blogspot.com/
MBO Standards
A Excellent Excellent
B Good Very Good
C Average Good
D Poor Not Good
E Useless Commit Suicide
http://totallyunrelatedrandomanddebatable.blogspot.com/
MBO Standards
A Excellent Consistently achieved 4 for 3 quarters
B Very Good Higher than planned results
C Good Achieved Planned Results
D Not Good Did not fully meet planned results
E Commit Suicide
Unacceptable performance
Refer: Priority, Targets and Standards
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Planning: Performance Standards
• Refer to pages 24-25 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Planning and KPIs: Cascading from Company-Department-
Individual
http://totallyunrelatedrandomanddebatable.blogspot.com/
E3 – Department BSC
Financial Perspective
Goals Measures Targets CAPEX OPEX
Quality
Innovation
On Time Delivery
http://totallyunrelatedrandomanddebatable.blogspot.com/
Individual Performance
1.0 Key Results
Area (Max 6)
2.0 Goals and
Targets for Q1
3.0 Achievements and
Efforts for Q1
4.0 Merit* 5.0 Rating (Merit x Weight)
6.0 Appraiser
Overall Comments/ Feedback
http://totallyunrelatedrandomanddebatable.blogspot.com/
Cascading
Customer Perspective
Goals Strategies Targets Direct Indirect
Base Retention
Mkt
Share Gain Mkt
New Business
BD
http://totallyunrelatedrandomanddebatable.blogspot.com/
E3 – Department BSC
Customer Perspective – Marketing Department
Goals Strategies Targets CAPEX OPEX
Base Retention
Share Gain
Budgeting
http://totallyunrelatedrandomanddebatable.blogspot.com/
Individual MBO
Employee A – Marketing Executive
KRAs Action Plans
Targets Weight (%)
Score
Class A Customer Retention
Class B Customer Retention
Competition Crossovers
Re: Base Retention
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competencies
http://totallyunrelatedrandomanddebatable.blogspot.com/
Position: SecretaryResponsibilities + Tasks + Activities
Personal Competencies Differentiating Competencies
The Job Person Characteristics The Superior Performer
•Typing•Manages communications•Keeps short-hand notes•Makes appointments•Uses the computer•Filing•Takes minutes•Follow-up•Makes coffee•Keeps secrets•Drafts letter•Screens calls
•Pleasant•Accurate•Is able to take notes on shorthand and typing memo effectively•Presentable
•Appearance•Behaviours
•Good manners•Courteous•Diligent
•Proactive•Initiative•Independent•Integrity (trust)•Creative•Resourcefulness•Always excel•Unwavering dedication and commitment•Ability to make simple decisions•Sensitive to people•Positive attitude
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competencies: Intro
• Refer to page 27 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competencies
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competencies: An Explanation
• Refer to pages 47-51 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Superstar Competency Model
• Exercise: Develop Your Own “Superstar” Competency Model
• Refer to page 52 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competency Target Setting
1. Initiative
2. Teamwork
3. Problem Solving
4. Leadership
5. Integrity
What’s the problem here?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competency Target Setting
Initiative
1. Minimize problems quickly without needing to be asked
2. Seeks personal growth and professional self-development
3. Doing more than is required/expected in a job
4. Seeks new and improved solutions and approaches to completing assignments
5. Looks for opportunities to help others and team
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise: Competency Dictionary
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competency Dictionary: An Example
• Refer to pages 53 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Competency Standards
3 Meets behavioral standards consistently. Is a good role model for others.
2 Meets behavioral standards some of the time. Needs improvement.
1 Does not meet behavioral standards. Require counseling or disciplinary actions.
http://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise: Competency Standards
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Coaching
http://totallyunrelatedrandomanddebatable.blogspot.com/
Coaching & Counseling
Month 1
Performance Planning
Month 12
Performance Appraisal
Month 2-11
?
Refer: Coaching Self-Assessment
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Coaching
• Refer to pages 29-33 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Coaching
• Exercise: Refer to pages 34 of the Performance Management Workshop –Workbook-
• Competencies of a Good Coach
• Self Evaluation
http://totallyunrelatedrandomanddebatable.blogspot.com/
4. Putting it all together
http://totallyunrelatedrandomanddebatable.blogspot.com/
Designing Your Own Performance Appraisal Form
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Appraisal Form
• Exercise: Performance Appraisal Form - Critical Components – What Do you Want to Evaluate?– What are Your Objectives?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Appraisal Form
• Refer to Sample Performance Appraisal Forms: Non-Executives and Executives
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Evaluation
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Evaluation
• Exercise: Refer to pages 38-42 of the Performance Management Workshop –Workbook-
http://totallyunrelatedrandomanddebatable.blogspot.com/
Evaluation: Key Steps
• Exercise: Refer to pages 43-45 of the Performance Management Workshop –Workbook-
1.Attitude2.Seating3.Begin4.Review5.Comments6.Future7.Performance vs. Person8.Closing
http://totallyunrelatedrandomanddebatable.blogspot.com/
5. People Skills and Performance Appraisals
http://totallyunrelatedrandomanddebatable.blogspot.com/
Before we start
“You can get anything in life that you want if you can help enough people
get what they want”
http://totallyunrelatedrandomanddebatable.blogspot.com/
Law of the Ping-Pong Ball
a.k.a. Law of Cause and Effect
http://totallyunrelatedrandomanddebatable.blogspot.com/
Managing your Relationships
Basics of Relationships
1. Why?
2. Good performance & skill won't get you very far. You need others to succeed
3. You cannot get people to listen to you if they don't like you.
4. And if they don’t listen to you, you won’t accomplish anything!
5. Relationships = Expectations.
http://totallyunrelatedrandomanddebatable.blogspot.com/
But first…Do you know yourself?
Strengths? Limitations?
Good listener?
Emotionally stable?
Biases or Prejudices?
What is “Fair”?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Managing your Relationships: People Skills
1. People are interested in themselves, not in you
2. What is the most interesting subject in the world to them? THEMSELVES
3. Take four words out of your vocabulary: “I, me, my, mine” and substitute for the most powerful word: “YOU”
4. Remember that the more important you make people feel, the more they will respond to you.
5. Avoid arguing.
http://totallyunrelatedrandomanddebatable.blogspot.com/
LINA
Listen with interest and praise
make the person feel Important
use their Name
Ask questions
Communication SF
http://totallyunrelatedrandomanddebatable.blogspot.com/
PASSE
Praise and encourage
Ask questions
allow the person to Save Face
use SMART goals
Encourage small improvements
Influence SF
http://totallyunrelatedrandomanddebatable.blogspot.com/
S + FH + C
Smile
Firm Handshake
Compliment
Personality SF
http://totallyunrelatedrandomanddebatable.blogspot.com/
Communication Styles
Assertive
Passive-Aggressive
Aggressive
Passive
Comm
Refer to Handout for detailed explanation
http://totallyunrelatedrandomanddebatable.blogspot.com/
How to be Assertive
1. Describe
2. Express
3. Specify
http://totallyunrelatedrandomanddebatable.blogspot.com/
Three Steps to Assertive Communication:
1. Describe the situation or idea as clearly and specifically as you can.
2. Express how you feel about the situation. (Note: Use "I" or "My" statements to refer to how you are feeling and what you are thinking.)
3. Specify what you want. Include a specific deadline.
Refer to Exercise: Practicing Assertive Behavior
http://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise: Assertive Communication
• Someone has pushed into the queue/line in front of you. • Someone you respect has expressed an opinion with
which you strongly disagree. • Someone in your organisation has a specific complaint
that they won’t let go, even though it has been dealt with several times.
• A friend has betrayed your confidence or hurt you. • A person in your organisation is constantly talking about
another member behind her back. This is divisive and destructive to your organisation.
http://totallyunrelatedrandomanddebatable.blogspot.com/
Active Listening
1. Attending
2. Paraphrasing
3. Speaking
4. Clarifying
5. Asking
6. Encouraging
7. Reflecting
8. Summarizing
Personal Tip: ‘Picking’
http://totallyunrelatedrandomanddebatable.blogspot.com/
Active Listening Techniques
• Attending: using non-verbal indicators such as leaning forward, nodding your head, sitting in an open, receptive posture
• Paraphrasing: repeating in your own words what the other person has said; the restatement should not judge in any way
• Speaking from the self: using "I" statements, rather than speaking for others (we all think) or speaking in the passive tense. Do not make assumptions about others, their opinions, and feelings.
http://totallyunrelatedrandomanddebatable.blogspot.com/
Active Listening Techniques
• Clarifying: asking for further clarification or an example to illustrate often helps find clarity in the meaning.
• Asking: probing questions; identify and explore options and alternatives e.g., use probes - short, open questions to dig deeper into issues. May be non-verbal such as a look that asks "Then what/ How?” Silence can be used to encourage the speaker to continue.
• Encouraging: asking person to “tell me more about” or give them a supportive comment like “good idea” or “I like that approach”.
http://totallyunrelatedrandomanddebatable.blogspot.com/
Active Listening Techniques
• Reflecting: playing back the communication as you hear and feel it, e.g., “you seem to feel very strongly about that”
• Summarizing: giving back a review or summary of what you heard. This helps make sure the communication is
http://totallyunrelatedrandomanddebatable.blogspot.com/
Asking Questions?
1. Ask to clarify viewpoints, values or beliefs1. Would you like a drink?
2. What further info do you need?
3. Is it the <problem>, or is there something else?
4. What exactly do you mean?
5. What do you think are the pros and cons?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Asking Questions?
2. What’s most important to you in…
http://totallyunrelatedrandomanddebatable.blogspot.com/
Asking Questions?
3. Convert instructions into Questions
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise: Role Play
http://totallyunrelatedrandomanddebatable.blogspot.com/
Understanding Conflicts
What is…, Sources of…,
http://totallyunrelatedrandomanddebatable.blogspot.com/
Why do Conflicts happen?
UnrealisticExpectations
InadequateResources
CONFLICTS
Lack of Cooperation
Reduce Energy
http://totallyunrelatedrandomanddebatable.blogspot.com/
Why do Conflicts happen?
UnrealisticExpectations
1. ‘I am always right’ opinion
2. Do not understand ourselves
3. Do not understand others
4. Different backgrounds
5. Aggressive, Selfish, Stubborn
6. Win-lose mentality
http://totallyunrelatedrandomanddebatable.blogspot.com/
Conflict: Good or Bad?
Good1.Clarification
2.Release emotions
3.Release stress
4.Understand each other
5.Build cooperation & trust
6.Develop problem solving
7.Create energy
http://totallyunrelatedrandomanddebatable.blogspot.com/
Conflict: Good or Bad?
Bad1.Diverts energy
2.Polarizes groups
3.Deepens differences
4. ‘Either-Or’ positions
5.Always right mentality
6.Develop negative feelings
http://totallyunrelatedrandomanddebatable.blogspot.com/
Conflict: Good or Bad?
Very Very Bad
1. Informal discussions
2.Mis-information
3.Positions
4.Factions
http://totallyunrelatedrandomanddebatable.blogspot.com/
Sources of Conflicts
Instrumental
InterestPersonal
http://totallyunrelatedrandomanddebatable.blogspot.com/
Sources of Conflicts
Instrumental1. Goals
2. Means
3. Procedures
4. Structures
http://totallyunrelatedrandomanddebatable.blogspot.com/
Sources of Conflicts
Interest
1. Money
2. Time
3. Staff Space
4. Importance
5. Ownership
6. Competence
http://totallyunrelatedrandomanddebatable.blogspot.com/
Sources of Conflicts
Personal
1. Identity
2. Self-image
3. Loyalty
4. Confidence breach
5. No respect
6. Friendship Betrayal
http://totallyunrelatedrandomanddebatable.blogspot.com/
Managing Conflicts and Difficult People
The world is full of people who don’t like you… live with it.
http://totallyunrelatedrandomanddebatable.blogspot.com/
But First…
Do you want to maintain the relationship?
Yes? No?
1. Compromise, if possible
2. Win-win, if possible
3. Adapt, to different people
4. Hide your Ego
5. Lower your Expectations
6. Find Common Ground
7. Same Destination, Different Paths
8. “I understand …”
9. Accept the fact
10. Face
http://totallyunrelatedrandomanddebatable.blogspot.com/
Difficult People
Handling Difficult People:
1. The word ‘Difficult’ has different meanings
2. Difficult can mean different Personality:1. Refer to “Managing Different Personalities”
3. Difficult can mean Rude and Obnoxious1. Listen, Ask Questions
2. FAI (forget-about-it)
http://totallyunrelatedrandomanddebatable.blogspot.com/
6. The Performance Management Handbook
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Management Handbook
• Refer to the Performance Management Handbook
http://totallyunrelatedrandomanddebatable.blogspot.com/
7. Managing Performance and Motivation
http://totallyunrelatedrandomanddebatable.blogspot.com/
Root Causes for Performance Problems
1. Right Person, Wrong Job (5%)
2. Wrong Person, Right Job (20%)
3. Wrong Person, Wrong Job (1%)
4. Right Person, Right Job, Managed Wrongly (74%)
http://totallyunrelatedrandomanddebatable.blogspot.com/
Analyzing and Solving Performance Discrepancies
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Beating a Dead Horse
http://totallyunrelatedrandomanddebatable.blogspot.com/
Most Common Desperate Performance Improvement methods
1. Send for more Training
2. Enforce more Incentives (positive/negative)
http://totallyunrelatedrandomanddebatable.blogspot.com/
Dangers of Direct Incentives
1. lessen internal motivation, 2. switch to mercenary mode, 3. do something and do not do something else, 4. bribe and fraud culture, 5. easier for competitors to recruit, 6. lessen teamwork & helpful culture, 7. less and less impact for same value, 8. mockery of base salary and employment
contract, 9. rebellion from non-incentivised staff, 10.end up incentivising everyone for everything?,
http://totallyunrelatedrandomanddebatable.blogspot.com/
Mager and Pipe
• Analyzing Performance Discrepancies
http://totallyunrelatedrandomanddebatable.blogspot.com/
Alignment: 4-Wheels Model
Philosophies
Corporate
Objective
Performance Objectives
StructureResources
Leadership
Person
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance and Motivation
http://totallyunrelatedrandomanddebatable.blogspot.com/
Understanding Personalities
Closed Open
People
TaskPerfect: Melancholy Powerful: Choleric
Popular: SanguinePeaceful: Phlegmatic
Handouts: Personality Types & Getting Tasks Done
http://totallyunrelatedrandomanddebatable.blogspot.com/
The Motive Profile
Power (nPow)
Achievement(nAch)
Affiliative(nAff)
http://totallyunrelatedrandomanddebatable.blogspot.com/
Motive Profile vs. Job Description
Achievement Affiliation Power
• Continually improve his/her performance
• Personally produce work of excellent quality
• Be creative & innovative
• Accomplish tasks or projects personally, start to finish
• Set own performance
• Monitor own progress & know results of work immediately after work is completed
•Work cooperatively
•Frequently help others with their problems
•Socialize much on an informal basis
•Empathize with others
•Be interested in others
•Depend on others’ work
•Maintain others’ morale
•Be sensitive to his/her impact on others
•Tell others what has to be done & manage them
•Respond to others’ requests for decisions, & make decisions that affect others
•Make things happen through others
http://totallyunrelatedrandomanddebatable.blogspot.com/
The Motive Profile shown below has been constructed using a non-conscious response instrument (Picture Story Exercise - McClelland)
The typical superior performing manager profile:
High
Med
Low
Ach Aff Pow
Person
Job
Person
http://totallyunrelatedrandomanddebatable.blogspot.com/
Profile Mismatches
Mentoring, coaching and counselling helps people consciously develop job related responses.
Engineer in Managerial job
Ach Aff Pow
H
M
L
Teacher in Managerial Job
Ach Aff Pow
H
M
L
Ach Aff Pow
Managerial job
H
Ach Aff Pow
EngineerH
M
L
M
L
http://totallyunrelatedrandomanddebatable.blogspot.com/
Motivating Talent
Hope
Control
http://totallyunrelatedrandomanddebatable.blogspot.com/
Motivating Talent
Passion Job
GrowthTalent
Minimum Motivation Target: 2 out of 4
Delegation
http://totallyunrelatedrandomanddebatable.blogspot.com/
8. Performance and Reward
http://totallyunrelatedrandomanddebatable.blogspot.com/
‘Basic Values’ Driven C&B
1. Performance
2. Differentiation
http://totallyunrelatedrandomanddebatable.blogspot.com/
What to Pay?
• Pay for Service
• Pay for Job
• Pay for Competency
• Pay for Performance
http://totallyunrelatedrandomanddebatable.blogspot.com/
•Competency- Knowledge
- Skills - Experience
•Problem solving - Complex
- Type of problems - Special Problems
•Responsibility - Authority
- Success/Failure - Freedom to act
Pay for Job
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance and Incentives
1. Internal Equity1. Internal Job Rates
2. Performance differentials
2. External Competitiveness1. External Job Rates - Benchmarking
2. Demand & Supply
http://totallyunrelatedrandomanddebatable.blogspot.com/
What’s the Difference?
• Increment
• Bonus
• Promotion
Exercise: How does your company define the difference?
http://totallyunrelatedrandomanddebatable.blogspot.com/
What to Pay?
• Pay for Service
• Pay for Job
• Pay for Competency
• Pay for Performance
Exercise: Which ones does your company use for Pay?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Compa Ratio Table
Use this if your company: • Pays for Performance, and • Pays for Job rates
Def:
Mid-Point = Mid Point of Pay Grade
Grade E2
Min RM2,000
MID RM2,500
Max RM3,000
http://totallyunrelatedrandomanddebatable.blogspot.com/
Compa Ratio Table
< 0.7 ≥0.7 - ≤0.9
>0.9 - <1.1
≥1.1 - ≤1.3
> 1.3
5
4
3
2
1
http://totallyunrelatedrandomanddebatable.blogspot.com/
Compa Ratio Table
< 0.7 ≥0.7 - ≤0.9
>0.9 - <1.1
≥1.1 - ≤1.3
> 1.3
5
4
3 5%
2
1
http://totallyunrelatedrandomanddebatable.blogspot.com/
Compa Ratio Table
< 0.7 ≥0.7 - ≤0.9
>0.9 - <1.1
≥1.1 - ≤1.3
> 1.3
5 9
4 7
3 9 7 5% 4 3
2 2
1 0
http://totallyunrelatedrandomanddebatable.blogspot.com/
Compa Ratio Table
< 0.7 ≥0.7 - ≤0.9
>0.9 - <1.1
≥1.1 - ≤1.3
> 1.3
5 15 12 9 8 7
4 12 9 7 5 3
3 9 7 5% 4 3
2 6 4 2 1 0
1 4 2 0 0 0
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise:• Determine your pay grades and salary points
(internal or external benchmark?)• Draw your Compa Ratio Table
http://totallyunrelatedrandomanddebatable.blogspot.com/
Employee Differentiation through Relative Performance and Talent Management
http://totallyunrelatedrandomanddebatable.blogspot.com/
Values Driven C&B
1. Performance
2. Differentiation
http://totallyunrelatedrandomanddebatable.blogspot.com/
Employee Distinction?
< 0.7 ≥0.7 - ≤0.9
>0.9 - <1.1
≥1.1 - ≤1.3
> 1.3
5 9 8 7 6 5
4 8 7 6 5 4
3 7 6 5% 4 3
2 6 5 4 3 2
1 5 4 3 2 1
http://totallyunrelatedrandomanddebatable.blogspot.com/
Employee Distinction?
< 0.7 ≥0.7 - ≤0.9
>0.9 - <1.1
≥1.1 - ≤1.3
> 1.3
5 20 15 12 8 5
4 18 12 9 5 3
3 9 7 5% 4 3
2 1 1 1 0 0
1 0 0 0 0 0
http://totallyunrelatedrandomanddebatable.blogspot.com/
Employee Distinction
Average Rating
Rating Multiply Factor
Example Rating
Example Increme
nt
> 4.1 5 2 4.2 8.4%
> 3.3 – 4.1 4 1.2 3.5 4.2%
> 2.3 – 3.3 3 0.75 2.8 2.1%
> 1.3 – 2.3 2 0.5 1.8 0.9%
≤ 1.3 1 0 1.0 0%
http://totallyunrelatedrandomanddebatable.blogspot.com/
Employee Distinction
Group I
(Talent Pool)
Group II
( Potential)
Group III
( Performance)
Group IV
(Counseling)
2 3 4 5
23
45
PE
RF
OR
MA
NC
E
POTENTIAL• Identify
http://totallyunrelatedrandomanddebatable.blogspot.com/
Curse of the Bell Curve
‘A’ Staff
‘B’ Staff
‘D’ Staff
‘E’ Staff
‘C’ Staff
http://totallyunrelatedrandomanddebatable.blogspot.com/
9. Performance Management: Issues and Challenges
http://totallyunrelatedrandomanddebatable.blogspot.com/
Other Performance Review processes
1. Result Planning schedule inc. BSC, Budget2. Quarterly Performance Appraisals3. EMC – sales performance4. QMS – non-sales performance5. Divisional meetings6. Annual Appraisals7. Specialized KPI committees8. CAR, PAR, SCAR KPI improvements9. Internal Audit & MSD – process problems10. HRM & TND – people problems11. Supervisor Induction – PM training12. Talent Management
www.myCNI.com.my www.OOBEY.com
http://totallyunrelatedrandomanddebatable.blogspot.com/
More Problems….
1. cost of evaluation vs. gains of evaluation
2. defer achievements of a good year to next
3. barely achieve so that next target is not high
4. spread improvements over several years
5. value reducing actions to increase performance
6. most ratings are 4 or 5, new people are 3
http://totallyunrelatedrandomanddebatable.blogspot.com/
Before I forget…
• Re-train Appraisers• Train new Appraisers
http://totallyunrelatedrandomanddebatable.blogspot.com/
Issues and Challenges
1. HODs unclear
2. HODs disagree/unsupportive
3. HODs not committed
4. Functional silos
5. HODs not willing to openly differentiate
6. Incompetent superiors/HODs
7. Difficult to evaluate
8. Aligning with Business Goals
9. Unsynchronized and unmonitored training and development
http://totallyunrelatedrandomanddebatable.blogspot.com/
End Point
The end of the Beginning
http://totallyunrelatedrandomanddebatable.blogspot.com/
Your Business Model
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the Business Model?
USP
Market Discipline
Profit Model
•Tata Nano
http://totallyunrelatedrandomanddebatable.blogspot.com/
Business Model: USP
USP(How do I
position my organization?)
External
Customer
**Internal
http://totallyunrelatedrandomanddebatable.blogspot.com/
Business Model: Profit Model
Revenue
Cost
MarginCash Flow
Assets
http://totallyunrelatedrandomanddebatable.blogspot.com/
Intro: Market Discipline
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
OperationalExcellence
CustomerIntimacy
•Air Asia
•LV
•Ramly
http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency: Market Disciplines
http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Market Disciplines
http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Alignment & Consistency: Disciplines, Priorities, and KPIs
http://totallyunrelatedrandomanddebatable.blogspot.com/
Sample KPIs for Each Discipline
Operational Excellence
• Price• Selection• Convenience• Zero Defects• Growth
Operational Excellence
• Price• Selection• Convenience• Zero Defects• Growth
Customer Intimacy
• Customer Knowledge
• Solutions Offered• Penetration• Customer Data• Customer-success
focus
Customer Intimacy
• Customer Knowledge
• Solutions Offered• Penetration• Customer Data• Customer-success
focus
Product Leadership
• Marketing• Functionality• # of Successes• # of Failures• Learn from key
users• Interdisciplinary
teams• Pipeline
Product Leadership
• Marketing• Functionality• # of Successes• # of Failures• Learn from key
users• Interdisciplinary
teams• Pipeline
http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency: Market Disciplines
http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence(low cost producer)
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency
HP well-balanced portfolio, mass customization
Acer super lean cost structure, aggressive pricing
Apple powerful products, premium
pricing, limited range
Still Doing well in
2009/2010
http://totallyunrelatedrandomanddebatable.blogspot.com/
Other thoughts…
1. Big matters/Small Matters
2. Differentiate of Die
3. Define “Talent”
4. No “Jerk” rule
5. Flat Structure?
6. The Jerk Boss
7. All aspects
8. Hire Strict
http://totallyunrelatedrandomanddebatable.blogspot.com/
Don’t forget…
“The business of business is Business,
not Performance Management”
http://totallyunrelatedrandomanddebatable.blogspot.com/
QUESTIONS, ANSWERS, COMMENTS
forum
Thank You.
soft copy of slides: http://totallyunrelatedrandomanddebatable.
blogspot.com/