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阿里巧巧 ,A Guide to Consulting June 2000,阿里巧巧 ,Discussion Objectives,Provide an overview of current thinking and trends Discuss what PM consulting is all about Review “what works and what doesnt” Share Best Practices research Review some of the basic planning and project steps,阿里巧巧 ,Group Discussion,Answer the following questions: 1. What is performance management? Why do companies have this process? 2. Why doesnt it work so well? What makes it so difficult?,阿里巧巧 ,Performance Management,Translates business vision and strategy in an actionable way by cascading goals throughout the organization Measures both what is done and how it is done Aligns Department goals with strategic business objectives Aligns individuals with the broader organizational/ team context Ensures the closest “line of sight” possible,Source: Watson Wyatt Best Practices in Performance Management,阿里巧巧 ,Performance Consulting,1. Total Organization Cascading and Alignment Stakeholder Metrics 2. Employee Review Process Engagement and Accountability Growth and Achievements,Two dimensions:,阿里巧巧 ,Performance Consulting,Total Organization Performance Cascading and Alignment Stakeholder Metrics,阿里巧巧 ,The Key Questions of Business Planning,Why does the company exist? Where is it going? Size Sales Markets Locations Products Competitive Challenges SBU Linkages How will it get done? Values and Operating Principles Technology Resources What must the company be very good at doing? How will progress and success be measured? Expectations of Stakeholders Company Performance,Mission,阿里巧巧 ,Business Plans are Developed by the Business Units,阿里巧巧 ,Components of a Balanced Scorecard (with sample metrics),FINANCIAL RESULTS,CUSTOMER SATISFACTION,BUSINESS PROCESSES,LEARNING & GROWTH,AFYP ROI/ROA Surplus Growth,New sales: new customers Additional policies: current customers Market share,Collecting premiums Calculating selling price: new product New licensing (Region & Corporate) Establishing the Business Case for new ventures, new locations Product Development: # innovations,Competency growth Additional countries Core capabilities growth,阿里巧巧 ,Cascading Strategic & Operating Plan Goals,CORPORATE ORGANIZATION METRICS,Finance,Finance,Customer,Customer,Business Process,Business Process,Learning & Growth,Learning & Growth,BUSINESS UNIT,TEAMS/INDIVIDUALS,DEPARTMENT,Balanced Scorecards can provide organization alignment and accountability,5 to 7 GOALS “SMART” parameters Directly aligned,阿里巧巧 ,Typical Project Timeline & Milestones*,* 8 weeks elapsed time from planning session,2 Days,Clarify Company Strategy and determine goals,Implementation Training and Roll out begins,Implementation Planning Workshop,Formal Advisory Group Review Session & Follow-up,1 wk,2 wks,1 wk,1 wk,1 wk,1 wk,1 wk,Project Planning, Orientation and Kick-off,1 Day,1 Day,Interview Findings Develop Measure Recommendations,1 Day,Workshop on Targets Finalize Target Recommendations,Implementation Plan Review Review Plan for Implementation Review Transition Strategy,2 Days,Formal Advisory Team Review,1 Day,1 Day,1 wk,1 Day,Executive Planning Session(s),阿里巧巧 ,Performance Consulting,Total Organization Performance Clients: CEO, COO, sometimes the VPHR Fees: typical project is $180 - 250K Timeframe: +/- 4 months,阿里巧巧 ,Performance Consulting,Employee Review Process Engagement and Accountability Clear Performance Expectations Growth and Achievements,阿里巧巧 ,Performance Management Is.,.the ongoing process of setting performance expectations, providing feedback and coaching to reach those expectations, and reviewing and recognizing performance results.,阿里巧巧 ,Tie PM to the Business Cycle,Review and Planning,Planning,Feedback & Coaching,Feedback & Coaching,Mid-Year Review,New Year Planning,Year-End Review,Bad timing.,“I dont want to ruin your day Herman, but tomorrow morning youre scheduled to be in my office for your annual performance review.”,阿里巧巧 ,Remember The Key Questions ?,Why does the company exist? Where is it going? Size Sales Markets Locations Products Competitive Challenges SBU Linkages How will it get done? Values and Operating Principles Technology Resources What must the company be very good at doing? How will progress and success be measured? Expectations of Stakeholders Company Performance,Mission,阿里巧巧 ,Organization Alignment leads to Employee Engagement,COMPANY MISSION VISION,Strategic Objectives,Core Capabilities,Competencies Leadership Functional,Department Scorecard,Success Profiles,Employee Performance Process,Business Unit Scorecard,Cascading: Critical Metrics and Competencies,阿里巧巧 ,Change requires a balanced Value Exchange,Employee Gives Employer Gives,Energy,Effort,Commitment,Value Add,Learning,Time,阿里巧巧 ,The Performance Process can provide the keys to development,Base Pay,Promotion,Training,Career development,Succession planning,89%,77%,56%,51%,32%,Reduction in force,26%,Variable pay,34%,Current Use of Performance Management Data,Source: Watson Wyatt Best Practices in Performance Management,阿里巧巧 ,Performance Management Evolution,Traditional,Recent,Emerging,Measures,Traits/ Outcomes,Behaviors/ Outcomes,Time/Quality/ Value,Evaluator,Boss,Self/Peers,Customers,Outcomes,Merit Pay,Development,Organization Success,Implementation,Distribute Forms,Train and Communicate,Ongoing Education and involvement,Ownership,HRD,Management,Employees,Compliance,Voluntary,Mandatory,Motivation,阿里巧巧 ,Factors That Influence Process effectiveness,Organization,Supervisor,PM,Culture,Skills,Process,The Organization,Values that Support,PM,The Capability to,Measure and Discuss,Performance,The Interaction Between,the Employee and the,Supervisor,People,Factors,Technical,Factors,Performance,Measures,Rewards,Delivery,PM,Forms,Measures that Support,the Organizations Goals,and Values and are,Possible to Accurately,Measure,How and Why Pay is,Linked to Performance,How the Design of,the Form Supports the,Process,阿里巧巧 ,Feedback from multiple sources,Coaching and feedback are integral,De-emphasis on a rating,Decentralized control,Greater linkage between pay and performance,Effective measures - Competencies - Business strategies,“Champions” sponsorship,Employee participation,Employee involvement in system design,Communication & training,Alignment with business objectives, strategy, customer needs,Ongoing monitoring of effectiveness of program,Best Practices Elements of Successful Programs,阿里巧巧 ,High Impact Performance Management,Key elements found in all “best practices” Emphasis on looking forward Planning and development Joint process with employee ownership Cooperative goal setting Feedback (continuous, multiple sources) Developmental focus Pay and performance linkage,Source: Watson Wyatt Best Practices in Performance Management,阿里巧巧 ,Use of Key Elements,Source: Watson Wyatt Best Practices in Performance Management,阿里巧巧 ,Evolution of Performance Feedback,Top Down,Self-Appraisal,Peer Reviews,Upward Feedback,Internal Customers,External Customers,3600 Review,阿里巧巧 ,Does it make a difference?,Employees are eligible for stock plan programs,1.8%,Company terminates employees who perform unacceptably,1.8%,Company does a good job of helping poor performers improve,1.5%,Top performers get significantly more pay than average performers,0.8%,Company positions pay above market,0.4%,Employee performance appraisals used to set pay,0.4%,Employees participate in profit- sharing plan based on firms overall success,0.6%,Pay is linked to companys business strategy,阿里巧巧 ,The Performance Matrix,O,Results “what”,Behaviors “how”,Std = 100% of expected,Std =100% alignment,NIH,NIW,F,M,EE,Key: O = Outstanding EE = Exceeds Expectations M = Meets Expectations (80 - 90% of population) NIH = Needs Improvement on “HOW” NIW = Needs Improvement on “WHAT” F = Failing,阿里巧巧 ,Project Steps,Project Planning, Education and Assessment: ClientFirst, scope and timetable, design team education, PM design matrix, document review, interviews,Design: Straw-man designs, implementation planning and schedule,Testing and Approval: Presentation, senior management assessment, sign-off, edit,Implement: Communication rollout, modular training rollout, use,Review/Revise: Gather feedback, test and revise,1,2,3,4,5,阿里巧巧 ,Performance Consulting,Employee Review Process Clients: VPHR, Dir. Comp and/or OD Fees: typical project is $85 - 130K Timeframe: +/- 3 months (excludes implementation),阿里巧巧 ,Think “Implementation”,A successful process is 25% design and 75% implementation!,“Its never to early to think about implementation. . .” Peter Drucker,阿里巧巧 ,Best Practices in Implementation,Detailed communications and training strategy Pro-active problem identification Broad buy-in Senior management involvement Measurement of system effectiveness,Source: Watson Wyatt Best Practices in Performance Management,阿里巧巧 ,Utilize Best Practices in Change Management,Visible senior management support Ongoing communication Best practices and stakeholder research High involvement and broad buy-in Careful planning, rapid process Comprehensive approach to implementation and monitoring Training in intact work teams,Source: Watson Wyatt HR21 Study,阿里巧巧 .
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