PMS Guidelines 2

8/14/2019 PMS Guidelines 2

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LeadingFinancial

Objective

Internal

Quantitative

Long term

Lagging

Non-

financial

SubjectiveExternal

Qualitative

Short term

Measures must be balanced


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How many performance measures?

Too many measures guarantee you have virtually noneToo many measures guarantee you have virtually none

Measures should be Focused on overall corporate strategy

Appropriate to their purpose: what and who are you measuring?

In the right language: translating into metrics that make sense to theindividuals work

Aligned with an incentive for the individual towards motivation and

commitment to achieving objectives

Refined only when necessary to realign with strategy

Focused on information, not data


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Sample measures Financial Net profit Revenue growth ROI Return on capital employed Shareholder value

Customer Benchmark processes Client surveys Provide value for money Number of fee-based products

offered % of sales from new products

Internal processes New product revenue

Cross sell ratio Productivity levels Quality levels of

products/services Implement cost reduction

initiatives that will result in moreefficiencies

Organisational learning &growth

Revenue per employee Employee surveys Strategic skills coverage Level of skills retention Staff turnover

Cost savings


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Setting targets


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Setting Targets Targets involve specifics of what you want to achieve

and by when.

Some targets can only be set if you know what the baseis.

One objective could have more than one target but onceagain focus is the key.


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Performance ContractsTEMPLATE

Page 1:Details on person and position

Page 2:

Objectives, Measures, Targets, Ratings (use jobdescription)

Page 3:

Competencies, Skills, Knowledge and Behaviour Page 4:Development Plan

Page 5:

Comments


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Development Plans

Bridge the gaps in performance related to

objectives and competencies and prioritise an

action plan for development

A variety of methodologies: Training courses

Education programmes

Self-study

Coaching

Workshops Meetings

Work tasks

Short-term assignment

Job rotation


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1.1.Performance

Planningand

Contracting

2.2.PerformanceCoaching and

Feedback

33Performance

Review

4.Reward

Communicate the big picture ofthe organisations strategies anddepartmental goals to employeesand show the relationship of their

jobs to the organisationssuccess

Provide frequent informalcoaching that recognises good

performance

results and that gets below-targetperformers back on track

Tie tangible and intangiblerewards to performance levels

Gather performance informationfrom employees and assesseach employees results vs.

Performance Targets

Developmentplans for each

individualPERFORMANCEMANAGEMENT

Performance management system

BALANCED

SCORECARD


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Performance coaching and

feedback Should be on-going

and frequent

Can be informal

Encourage goodperformance

Attempt to get belowtarget performance

back on track


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1.1.Performance

Planningand

Contracting


Feedback

33Performance

Review

4.Reward




performance




Performance Targets




BALANCED

SCORECARD


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Potential Problems with Performance

Reviews..

Objectives not being set before assignment Objectives being set 6 months after assignment completed

Staff evaluations 6 months after job completed

Weaknesses identified and discussed months later (too late!)

Comments on a number of assignments condensed into oneappraisal

Managers not taking responsibility for Performance Mgt

Managers regard it as an administrative nuisance


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Potential Problems with Reviewing

The Halo effect

Shifting standards

Bias

Lenient/Harsh

Rater


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The appraisal interview

DO DONT

Be supportive Be confrontationalBe developmental Apply stress

Conduct a conversation End up with a win-lose situation

with a purpose Use tricks and surpriseEngender mutual trust questions

End with a win-win situation


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Types of Employee responses

Defensive

Passive

Hurt

Accepting


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HOW TO HANDLE EMOTIONAL

SITUATIONSDEFENSIVE

Ignore the attack or excuse and stick to theissue at hand

Admit the truthPostpone employee issue until laterGet back to the issue of performance

Turn the question back when he/she wants toderail youfrom the topic


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SITUATIONS

Passive

Draw out people by asking questions rather

than over-talking your points

Dont answer your own questions


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SITUATIONS

Hurt

Dont get enveloped by employees depressed

reaction, instead describe the performance and stick to that

Paraphrase, reflect, emphasize where appropriate


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SITUATIONS

Accepting

During the interview, point out live, here and now,

examples of relationship problems


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Managing conflict in performance

reviews

DEFINITION OF CONFLICT

Conflict can be described as a problem or

disagreement which occurs as a result of

differing ideas or goalsThe way a conflict is managed

Rather than suppressed, ignored, or avoided

contributes significantly to a companys

effectiveness


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Conflict Modes

COMPETING COLLABORATING

AVOIDING ACCOMMODATING

COMPROMISOR

AS

SERTIVE

NON-ASSERTIVE

UNCOOPERATIVE COOPERATIVE

CONCERN FOR

PERSONALGOALS


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The Accomodator Conflict is disturbing

Does not like conflict Will avoid it whenever possible

Shows the opposite of inner feelings in conflict

situations(Anger = smiling; Tension = humor)

Is convinced that only bad things can come out of conflict

PHILOSOPHY: In the final analysis it is wise to turn

the other cheek


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The Avoider Conflict is bad

Avoids conflict at all costs

Leaves the scene if possible

Does not get personally involved. Follows the rules

Believes he has no control over the outcome

PHILOSOPHY: It is useless to try to change a person

who seems locked in an opposing view.


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The Compromiser

Conflict is an intellectual challenge

No-one wins

Dont be confrontational

Hide your feelings

Resolution comes with compromise

PHILOSOPHY: Winning is rarely possible in conflict


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The Collaborator

Conflict is good Parties are able to express their opinions

All parties to a conflict have a valid contribution to make

There is always middle ground Resolved conflict will bring the parties together

PHILOSOPHY: No-one has the final answer to anything

but each has something to contribute


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G id li f i


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Guidelines for managing

unsatisfactory performancediscussions.

Step 1: Raise the self esteem of the employeeStep 2: Outline the performance areas that need improvementStep 3: Explain why the present performance causes you

difficulty

Step 4: Find out the reasons for their present performanceand make it clear you understand the position

Step 5: Ask them for ideas on how to improve the

performance and note these ideasStep 6: Ask them what you can do to help themStep 7: Confirm mutual action steps to be taken by both of

youStep 8: Agree a follow-up date

Your role as a manager


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Your role as a manager

Explain the Bank and department strategy and goals attempt to create line of sight.

Help set objectives with your people and ensure that

performance contracts are linked to departmentalobjectives.

Clarify job expectations with the employee.

Help with drafting development plans.

Assist the employee to achieve objectives.

Provide on-going coaching and feedback onperformance and development progress.

Collect feedback for formal reviews.

Provide formal performance reviews. Discuss career aspirations

Y l l


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Your role as an employee

Collaborate with your manager on drafting yourperformance contract.

Ensure that you understand your objectives,

measures and targets. Create your development plan.

Act on your development plan.

Ask for coaching and feedback from yourmanager and others. It is your rightto get feedback.

Take an active part in performance reviewdiscussions.

Give feedback to others.


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1.1.Performance

Planningand

Contracting


Feedback

33PerformanceReview

4.Reward




performance




Performance Targets




BALANCED

SCORECARD

R d


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Rewards Align tangible and intangible rewards to

performance

Consequences of both achievement and non-

achievement of objectives

Reinforces positive behaviours

The behaviour that gets rewarded gets

repeated

PMS Guidelines 2

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Transcript of PMS Guidelines 2