Managing Organisational Performance

Managing Organisational Performance

Knowledge Sharing Session

INTRODUCTION ABOUT US

OBJECTIVE

COURSE AGENDA

PARTICIPANTS’ INTRODUCTION

PARTICIPANTS’ EXPECTATIONS

Workforce Group (“WG”) is a leading provider ofcutting edge solutions that advance the practice ofHuman Capital, Strategic Talent Management,Leadership and Organisational Developmentinterventions in Nigeria.

Founded in July 2004, our focus has been andremain the integration of Human Capital andBusiness Strategy. Our unique value is in the area ofdefining the paradigms and talent practices thatresult in a high-performance culture.

The company currently employs approximately 120professionals, with offices in Lagos & Abuja andrepresentative offices in all the 6 geopoliticalregions in Nigeria.

We presently manage a pool of over 6, 000Outsourced Staff nationwide on behalf of severalvalued clients.

WHO WE ARE

http://workforcegroup.com/winstitute/

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Our Unique Value Proposition to Our Clients

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Your Business

Your People

Our Focus

IntegratedSolution

Strategic Planning

BusinessModelling

Execution Management

OrganisationalEffectiveness

Organisational Diagnostic

ChangeManagement

CompetencyFramework

TalentAcquisition

TalentAssessment

TalentVerification

TalentEngagement

TalentRetention

Talent & LeadershipDevelopment

It’s About Your Business It’s About Your People

WG Portfolio and Offerings

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http://workforcegroup.com/winstitute/

TRACK RECORDOUR

Over 150 Companies have chosen us…

CLIENTS

FINANCIAL

OIL & GAS

GOVERNMENTFMCG

BANKING SECTOR

…and many more

TELCOM SECTOR

OIL AND GAS

FMCG

PUBLIC SECTOR

Click to edit Master title style

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A comprehensive approach to managingeffective performance across an organisation.

Click to edit Master title styleObjectives

At the end of this session, we should:

1. Have a better understanding of the Performance Management Process and how it works.

2. Be better prepared to drive organisational results and employee engagement

3. Be capable of cascading organization goals and unit goals to individuals.

4. Be able to identify and deal with some of the common challenges of the performance management system

Click to edit Master title styleSession Agenda

•Overview of Performance Management (PM)•Managing Corporate and Individual Performance•Role of managers and senior management in PM•Common signs that your performance Management

system may need to be overhauled •Quick tips for improving your PMS•Q&A

Introduction

Click to edit Master title stylePerformance Management

Performance management is one of thediscussions are one of the mostfrequently criticised talent managementpractice.

With criticisms ranging from them beingan enormous waste of time,demotivational, to lack of transparencyand in extreme situations having adestructive impact on the relationshipbetween managers and their line reports.


•When done well, it can boost the performance andproductivity levels of your people by raising theirstandards of achievement to new heights and increasingmoral, motivation and engagement within yourcompany.

•When it goes wrong, it can demoralise, de-motivate andcause people to underperform resulting in a detrimentaleffect on your bottom line.

• Meet Tunde Joseph

• He is a 28 year mid level officer in the HR department of a manufacturing firm.

• Tunde is a 1st class class economics graduate with various HR certifications.

• He is ambitious and highly driven

Wow, Tundeseems like the perfect hire

• He is unclear about the goals of the organisation

• Business expectataions from him and his unit also unclear.

• He received little or no feedback on his performance except at the yearly performance review.

• No delibrate system to develop him or his career.

Disengaged

What is expected of me’ andhow i impact on the bigpicture?

The biggest mistake isassuming people know theanswer to this question.

You just cant afford to assume

I Desperately Want to Know?

Click to edit Master title stylePerformance ManagementWhy Manage Performance?

• Provide a link between work planning for individual staff members and overall department and organizational goals

• Help staff members understand their job responsibilities and improve job performance

• Encourage and reward behaviors aligned with organizational mission and goals

• Recognize and reward staff member contributions, and foster professional development and career growth

• Increase productivity and employee engagement

• Curb or redirect non-productive activities

Click to edit Master title styleWhat Is Effective Performance Management?

A comprehensive process maximizing engagement,development, and performance of employees in theemployment lifecycle by:

• Aligning employee work to organisational and departmentgoals/objectives (line of sight), defining andcommunicating performance expectations regularly

• Proactively focusing on employee development, talentand succession management

• Linking performance to compensation, recognition, andrewards.

Click to edit Master title styleWhat Is Performance Management?

•Many people mistake performance appraisal forperformance management.

•Actually, performance management is a muchbigger system, and is much more valuable tomanagers and companies (and employees) thanperformance appraisal.


The job of a professional manager is not to like people. It is not to change people. It is to put their strengths to work. And whether one approves of people or the

way they do their work, their performance is the only thing that

counts.

- Peter Drucker,My Years with General Motors

Quotes


Management = getting work done through others

Manager’s performance is only as good as his/her employee’s performance

Manager’s job = performance management of others

Click to edit Master title styleLevels of Performance

Corporate

Teams(unitsand

departments)

Individuals


•A recent Rialto research discovered that in the absence of aclose tie to business strategy, individuals may develop skillsand abilities that are not helpful in achieving highorganisational performance or in the worst fail to developtheir skills at all.

• In addition, the most effective performance goals are thosethat are driven by the business strategy and are owned moreby line management rather than the HR function.


1. Aligning performance with

Strategic Goals of the organization


And

2. Continuous Process of

• Identifying•Measuring• Developing

The performance of individuals and teams

Click to edit Master title stylePerformance Management ComponentThree critical components for effective process of performance management

Performance ManagementInfrastructure

PerformanceManagement

Culture

PerformanceManagement

Process

Performance management cycle is continuous and

consistent

Culture that is based on performance

accountability

Logistic support and performance management

administration

Click to edit Master title styleComponents of The PM

Berger Paint MissionCorporate Values and Goals

Department GoalsIndividual Goals

PlanningEstablish organisational strategy and

goalsAlign goals of business units and

employee.Determine performance level criteria

ExecutionCreate conditions that motivateEliminate performance problems

Achieve planned objectivesUpdate objectives

Maintain performance recordsProvide continuous feedback

Provide developmental opportunities

Review & RecognitionIdentify Strengths and weaknesses.

(Gaps). Correlate promotions, bonusesand performance

Career DevelopmentCreate Individual Development Plan

(IDP)Talent Discussion (Development)

AssessmentOn-going feedback

Annual Performance assessment PA and Performance Dialogue PD

Talent Discussion (Criteria)

Click to edit Master title styleFeedback Framework

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• Feedback is an essential component of a performance culture• Most beneficial if on-

going• Intended to support staff

performance and development

• Applies to both positive and constructive situations

• On-going feedback ensures no surprises

• Framework assists in preparing to deliver feedback effectively

ObservationsExpectations Observations

AssessmentsConsequences

Click to edit Master title styleManaging Corporate Performance with Balanced Scorecard

• Balances financial and non-financial measures

• Balances short and long-term measures

• Balances performance drivers (leading indicators) with outcome measures (lagging indicators)

• Leads to strategic focus and organizational alignment.

Click to edit Master title style4 Perspectives in Balanced Scorecard

If we succeed, how will we look to our shareholders?

Financial Perspective

To achieve our vision, how must we look to our

customers?

Customer Perspective

To satisfy our customers, which processes must we excel

at?

Internal Perspective

To achieve our vision, how must our organization learn and

improve?

Learning & Growth Perspective

The Strategy

Click to edit Master title styleStrategy and Balanced Scorecard

Mission –Why We

Exist

Vision –What We

Want to Be

Values –What’s

Important to Us

Strategy : Our Game

Plan

Strategy Map : Translate the

Strategy

Balanced Scorecard :

Measure and Focus

Strategic Outcomes

Satisfied Shareholders

Delighted Customers

Excellent Processes

Motivated Workforce

Click to edit Master title styleStrategy Map Framework

Cost Efficiency

Long-term Shareholder Value

Revenue Growth

Price Availability BrandServiceQuality

Operations Management

Processes

Human Capital

CustomerManagement

Processes

Innovation Processes

Regulatory and Social Processes

Organization Capital Information Capital

Financial

Customer

Internal Process

Learning & Growth

Click to edit Master title styleFinancial Perspective

• In private companies, the financial perspective is the mainobjective (ultimate goal) – without having to sacrifice theinterests of other relevant stakeholders (community,environment, government, etc.)

• In the financial perspective, the strategic goal is the long-term shareholder value. This goal is driven by two factors,namely : revenue growth and cost efficiency.

Click to edit Master title styleStrategic Objectives in Financial

Long-term Shareholder Value

Revenue Growth

Improve Cost Structure

Increase Asset Utilization

Cost Efficiency

Expand Revenue Opportunities

Enhance Customer Value

Click to edit Master title styleCustomer Perspective• This perspective is very instrumental, because without customers,

how can a company survive?

• Customer perspective covers the following elements:

• Customer acquisition

• Customer retention

• Customer profitability

• Market share

• Customer satisfaction

Click to edit Master title styleStrategic Objectives in Customer

Price Availability BrandServiceQuality

Customer Acquisition

Customer Satisfaction

Customer Retention Customer Profitability

Market Share

Click to edit Master title styleInternal Process Perspective

• This perspective reflects the processes in key business that should be optimized in order to meet the needs of the customers.

• There are four main themes in this perspective, namely:

• Operations Management Process

• Customer Management Process

• Innovation Process

• Regulatory and Social Process

Click to edit Master title styleStrategic Objectives in Internal Process

Operations Management

Processes

CustomerManagement

Processes

Innovation Processes

Regulatory and Social Processes

Processes that produce and

deliver products and services

Processes that enhance

customer value

Processes that create new

products and services

Processes that improve

communities and the

environment• Supply

• Production

• Distribution

• Selection

• Acquisition

• Retention

• Growth

• New Ideas

• R&D Portfolio

• Design/ Develop

• Launch

• Environment

• Safety & Health

• Employment

• Community

Click to edit Master title styleLearning & Growth Perspective

• This perspective reflects the capability that a company should have, namely:

• Human Capital

• Organization Capital

• Information Capital

• This perspective shows us that good human resource development system, organizational system and information system forms a solid foundation for improving company performance.

Click to edit Master title styleStrategic Objectives in Learning & Growth

Human Capital Organization Capital

Information Capital

• Skills• Knowledge• Attitude

• Systems• Database• Networks

• Culture• Leadership• Organization Development

Click to edit Master title styleStrategy Map Template

Improve Cost Efficiency

Enhance Long-term Shareholder Value

Increase Revenue Growth

Enhance Brand Image

Build High Performance Products

Achieve Operational Excellence

Develop Strategic Competencies

Drive Demand through Customer

Relation Management

Manage Dramatic Growth through

Innovation

Implement GoodEnvironmental

Policy

Build Learning Culture

Expand Capabilities with Technology

Financial

Customer

Internal Process

Learning & Growth

Expand Market Share

Click to edit Master title styleSetting Smart Goals

³S Specific ³M Measurable³A Agreed³R Realistic³T Time bound

Agreeing on Expectations


YourExperience

Think about your last performance review:

nWhat thoughts come to mind?

nWhat went right, what went wrong?

nWhat can be improved?

Click to edit Master title styleAvoiding Bias in an Assessment• How far do I feel competent to judge my staff’s performance objectively?

• What evidence do I have to support my claim of objectivity?

• Could I be guilty of any bias in my judgement?

Click to edit Master title styleBias in Assessment

§ Safety – avoiding negative comments in order to avoid conflict§ Attribution – failing to take account of the context in explaining others

failures§ Blindspot – failing to detect weaknesses as same weaknesses exist in the

assessor

§ Stereotyping/Prejudice – allowing own beliefs to influence judgements


Common signs that your performance Management system may need to be overhauled!

Click to edit Master title styleEmployees are surprised

• If your employees receive their annual performance evaluation andare surprised by what they learn, it’s usually an indication that theyhave not received timely feedback throughout the year. Surprisedemployees quickly become disengaged employees.

Solution:• Educate managers on the need to provide prompt and continious

feedback to employees about their performance.• Employees are only able to improve performance when they have a

clear understanding of expectations and they have feedback to helpthem track their progress.• Adopt systems that force regular performance discussions. MPR and

1:1 sessions.

Click to edit Master title styleEveryone gets a satisfactory rating• No organization is perfect and there will always be performance-

challenged employees even in the highest performing groups. But,managers often complain about employees, then rate their performanceas satisfactory or above. This entrenches a negative performancemanagement culture that is unfair to your strong performers.

Solution:

• Call out poor performance when the employee has not metexpectations.• Recorgnise and reward start performers.• it’s important to consistently build a culture where managers accurately

assess performance.

Click to edit Master title styleTop leaders don’t model the way

• When top leaders view themselves as immune to performanceevaluation duties, it sends a strong and clear message to the rest ofthe team that feedback is not important. Everyone is watching….thehigher you sit in the organization, the more important it is to modelthe behaviors you expect of others.• Research shows that 80% of performance management challenges

are related to poor executive engagement and that organizationsexperience improved results when senior leaders held direct reportsaccountable for coaching their employees.

Solution:• If you are a top-level leader, think about how you approach employee

performance. You can expect that the managers and supervisors whoare on your team will follow your lead.

Click to edit Master title styleRating factors are meaningless

• It’s common to see factors like “dependability” or “interpersonalrelations” on evaluation forms. These factors are often poorly definedand don’t reflect what is truly important to the organization.

Solution:

• Spend time to define what is important in your organization (corporateperformanc planning).• A compelling mission, meaningful values, strategic goals, or a

behavioral competency model all help define what’s important.• Your feedback system should reinforce what’s important. Without a

common focus, there is no basis for victory.

Click to edit Master title styleNo one can get a ‘5.’ or Everyone gets a ‘5.’

• If your performance management system calls for ratings on a five pointscale, for example, some managers believe employees have to “walk onwater” to earn a five, two outcomes result. First, top performers arefrustrated because they are being judged on an unfair standard. Second,the scale is now essentially a four-level scale when the top level is neverused.

Solution:

• Managers must be thought to perform objective fact based appraisals.• Employees must also be thought to track and keep records of their

performance

Click to edit Master title styleYou’re too busy to manage performance

• Some managers believe thay are to too busy to find time to giveemployees feedback about their progress. Sadly, if they are too busy toengage their line reports on their performance, they are clearly notmanaging them properly and cannot leverage them effectively employeesas key resources.

Solution:

• The best managers spend at least 20% of their time coaching and guidingemployees to achieve the big picture goals.• Ask yourself, “what meetings, tasks, or projects should I delegate or just

stop doing so that I have time to spend supporting my employees?”

Click to edit Master title styleYou struggle to get evaluations completed on time

• Do you feel a mounting stress around evaluation time because it feelslike such a burden to get them done?• Does the Human Resources Department bug you about late evaluations?• Is there will always be something else more important to attend to?

Solution:

• Managers should be encouraged to keep notes on a regular basis aboutemployee’s performance. Note their successes, challenges, and theeveryday outcomes. One note per week in a log or file is sufficient.• Managers who are diligent about their note-taking report that the

performance evaluation is easier to tackle. The contents of the filebecome the content of the evaluation.

Click to edit Master title styleQuick Tips To Improve Performance Management

§ Start from the top by ensuring that corporate goals and objectives havebeen clearly articulated.

§ Help employees understand how their performance ties to thecompany’s overall objectives. Help them see the big picture.

§ Ensure senior management leads the way§ Train and re-train line managers to use the process.§ Provide employees the opportunity to assess themselves.§ Gather information from a variety of sources.§ Provide regular feedback (performance and developmental discussions)§ Provide continuing opportunities for employee development and

advancement§ Link employee compensation and reward to performance

Thank You For Your Time

FOLUSO ARIBISALAEXECUTIVE DIRECTOR

Workforce Group LimitedSwiss House, Plot 9, Block A,

Gbagada Industrial Scheme, Beside UPSGbagada Expressway, Lagos

Tel: (234) 803 307 5755G/L: 01-2798941-2

Email: [email protected]

Primary Contact:

Thank Youfor your attention

Documents

Managing Organisational Performance