1

2011

Edwin Ebreo

ExeQserve Corporation

2108, 88 Corporate Center, Sedeno St. Makati

City

8933199 * ecebreo@exeQserve.com

9/26/2010

Performance Management System Development and Implementation

2

GOALS:

a. Develop a comprehensive Performance Management System aimed at improving

employee performance;

b. Develop a more objective system for rating performance;

c. Establish a rewards system that is focused on rewarding exceptional results and

encourage continuous improvement;

d. Apply a change management strategy to ensure integration of the new performance

management system into COMPANY’s organizational culture; and

e. Equip employees with the necessary tools to plan, monitor, provide feedback, develop

capacity, evaluate and reward performance.

RATIONALE:

In order for any performance management system to be used effectively, members of the

organization need to have a thorough understanding of how performance management

systems are designed to align employee performance with the organization’s goals. Managers

must learn how to effectively use the performance management tools for setting clear goals,

monitoring performance, providing feedback, developing capacity to perform, appraising

performance as objectively as possible and rewarding good performance. We underlined good

performance because it is critical for employees to know what is being recognized. When

rewards do not clearly point to the good performance, employees become confused about

what defines it.

ExeQserve Corporation Consultants believe that the measure of a performance management

system’s effectiveness is general improvement in employees’ performance. If the system can’t

do this, it is not worth the time and money invested in it. For performance improvement to

take place however, users must use the system and tools according to their purpose. This can

only happen if the users accept the role they play in the performance management scheme

and know exactly how to use the available tools for performance management. These we

believe are the causes and effects that we must address if we are to implement a useful

performance management system.

We propose to make some considerable revisions in COMPANY’s existing system to achieve

this proposal’s objectives. Our major strategy includes:

1. Getting key employees involved in the revision process;

2. Training all involved on the concepts, development and use of performance

management tools; and

3

3. Follow a change management model to ensure institutionalization of the desired

changes and the integration of performance management in COMPANY’s culture.

ExeQserve consultants have the experience and tools to carry out all attendant actions

related to aforementioned objectives.

PERFORMANCE MANAGEMENT SYSTEM COMPONENTS

We propose to establish a comprehensive

performance management system that has

the following components:

1. Planning – Setting performance goals

and behavioral expectations

a. Key result areas

b. Key performance indicators

c. Calibrated performance

standards

d. Clearer behavioral indicators

and standard for each

competency

2. Monitoring – Creating mechanisms for

regular monitoring of performance and

giving feedback

a. Monitoring system

b. Feedback mechanism

3. Developing - Clarifying managers responsibilities for developing capacity for performance

through coaching and training

a. Performance discussion and coaching tactics

b. Maximizing effect of training on performance

4. Appraising – Establishing tools for auto-generating key performance indicators for

performance evaluation and equipping managers to handle performance discussions more

effectively.

a. Auto generating scores for key performance indicators

b. Techniques for more objective appraisal of competencies

c. Performance Appraisal discussion techniques

5. Rewarding - Establish policy for more effective use of rewards to reinforce positive

performance.

a. Migrate to a new rewards system that reinforces and encourages consistent positive

performance.

4

CHANGE MANAGEMENT COMPONENTS

We believe that for

any change to be

successful, it has to be

managed well. We are

using John Kotter’s 8-

step process for

leading change as a

way of ensuring that all

relevant issues and

concerns are addressed

as we pave the way for

the new performance

management system.

This change management framework shall guide the progress of the committee as we introduce

changes and fine-tune tools for performance management.

Schedule of Activities

PROJECT STAGE CHANGE MANAGEMENT

ACTIVITY APPROXIMATE TIMELINE

RESULT/OUTPUT

Stage 1: Project Briefing

1. Create urgency

Orientation Scoping

2 hours Proposed work plan with milestones and deliverables

Stage 2: PMS Committee and Raters’ Training

2. Create guiding coalition

Training on developing and implementing employee performance management system

2 training days PMS Development committee Finalized work plan with deliverables and milestones

Stage 3: Developing the new performance management system policy

3. Create a vision for change

Crafting the performance management system policy

2 weeks PMS Draft with Following components: 1. General

policy 2. Guidelines 3. Appraisal

5

PROJECT STAGE CHANGE MANAGEMENT

ACTIVITY APPROXIMATE TIMELINE

RESULT/OUTPUT

tools 4. Rewards

system

Stage 4: Communicating the new PMS draft for fine tuning

4. Communicate envisioned change

5. Empower the people

• Presentation of draft policy

• Feedback solicitation

• Finalization

1 week Finalized policy (Included 1 day training for all raters)

Stage 5 & 6:

Development of performance goals and competencies matrix

Establish monitoring system per KPI

6. Create quick wins

• Submission of departmental and individual metrics

• Launching of performance monitoring matrix

1 week Comprehensive Performance goals and competency matrix

Stage 7: Performance Appraisal dry run

7. Consolidate and build on gains

• Pilot the toll to one(1) unit or department

• Appraisal role playing workshop

1 week Clear expectations on performance appraisal events

Mastery o the performance appraisal activities

Stage 8: Formal Implementation

8. Institutionalize the change

• Formal launch of the new performance management system

• Celebration

1 day

6

2-DAY PERFORMANCE MANAGEMENT TRAINING DESIGN

Some people mistakenly assume that performance management is concerned only with

following regulatory requirements to appraise and rate performance. Actually appraising

performance is only one part of the overall process (and perhaps the least important part.)

All organizations face the problem of directing the energies of their staff to the task of achieving

organizational goals and objectives. In doing so, organizations need to devise means to influence

and channel the behaviors of their employees so as to optimize their contributions.

Performance management constitutes one of the major management tools employed in this

process. This is based on the premise that an individual's performance in a job is improved by

having definite goals, feedback about their performance and complemented by an appropriate

reward system.

Considering the profound objectives of performance management, it is elementary that

managers and supervisors learn to employ the tools within the system.

The goal of this course is to give the participants a clear view of what performance management

is all about and how to utilize it in achieving organizational objectives. At the end of this

workshop, the participants should be able to go full circle in implementing a complete

performance management system that includes the following activities:

Setting performance goals

Monitoring performance

Developing employees’ capacity and capability to perform through training and coaching

Objectively appraising employees’ performance

Giving fair rewards and recognition for good performance.

COURSE OBJECTIVES

At the end of the session, the participants are expected to be able to:

Define Performance Management;

Describe the requirements for the successful implementation of a performance

management system.

Describe the roles managers and employees play in the implementation of a

performance management system.

Understand the components of Performance Management and how each relates to

their managerial or supervisory tasks;

Go through the steps towards successful employee performance management.

7

COURSE OUTLINE

Process Objectives Time Activities

Day 1 30 mins Opening Activities

Define Performance Management

Describe the importance of managing performance in contributing to the achievement of organizational goals.

1 hour Overview of Performance Management

Introduction of the Performance Management Concept

Breaking traditional assumptions about performance

The Roles of Organizational Leaders as Performance Managers

• Describe the requirements for the successful implementation of a performance management system.

2 hours Designing the System • Designing the Performance Management Policy • Change management and enablement of the

people involved.

• Enumerate Activities involved in Planning Performance

2 hours Planning Performance • Aligning Individual and Departmental Objectives

with Organizational Objectives • KRA, KPI and KPOs • Clarifying behavioral expectations • Seeking Understanding, Acceptance and

Commitment

• Enumerate the activities involved in monitoring performance

2 hours Performance Monitoring • Measuring Performance based on standard • Setting up a Performance Monitoring System • Identifying Performance Gaps • · Setting up a performance feedback system

• Identify ways to help employees improve their performance

2 hours Developing the Employees Capacity to Perform • Various Activities Involved in Addressing

Performance Gaps • Training as an important tool for improving

performance • · Leaders’ role in ensuring success of training

Day 2

• Identify ways to help employees improve their performance

3 hours

• Coaching as an effective tool for improving performance

• Understanding the Coaching Mindset • Establishing an environment that is ideal for

coaching • Offering constructive feedback

8

PERFORMANCE MANAGEMENT POLICY, GUIDELINES AND TOOLS FEATURES

1. Policy a. Policy Statement b. Scope c. Responsibilities

i. For administration ii. Implementation

iii. Monitoring iv. Review

Etc. d. Framework

2. Guidelines a. Setting performance goals

i. Key result areas ii. Key performance indicators

iii. Standards iv. Calibrating targets for fair evaluation

b. Monitoring performance i. Mechanics

ii. Feedback c. Developing capacity to perform

i. Linkage between PMS and training ii. Coaching to improve performance

d. Evaluating performance i. Evaluating results

ii. Auto-generated scores iii. Evaluating competencies

e. Rewarding performance

• Go through the steps of appraising performance

• Pursue continuous performance improvement through the performance

3 hours

Appraising Performance • Performance Appraisal – Doing it right • Guidelines for conducting performance appraisal

interviews • Setting Developmental Action plan to address

performance gaps

• Use rewards and recognition to continuously motivate employees to perform

1 hour Rewarding and Recognizing Good Performance • Impact of Rewards and Recognition • Establishing a rewards and recognition program • Individual Vs. Team-based reward • · Various Tactics for recognizing good

performance

Set Action plans to apply learning in the workplace

1 hour Re-entry action planning.

9

i. Performance bonus ii. Merit increase

iii. Promotion 3. Tools

a. Performance Score Card b. Performance Appraisal form c. Coaching guide d. Employee Developmental plan template