Aligning the entire Organization to achieve Business and Organizational Goals

Editor's Notes

• #8: Most organizations in Asia underestimate the PMS most use it to reward/punish their staff (to terminate) informal PMS (angpow) biasness and favoritisms family-owned business (who dare evaluate relatives?)
• #12: Performance Management System is first and foremost a ‘SYSTEM’ – meaning we have Input, Process and a predictable Output Firstly. Performance means ‘Results’. Business Performance = Business Results. If your PM System is merely to reward/punish employees, you are missing the point If your PM System does no provide a predictable Output (i.e. Results), it is not a system Secondly, everything within the system must be Controllable – no excuse if performance does not happen. This means that Cause-and-Effect principles must be built into the PM System
• #13: PMS does not equate to Performance Evaluation process entire eco-system to ensure performance PMS = Business Plan Implementation system The PM System is the only process in any organization to execute the Business Strategy. There are no other process or system that can do that. Treat it with care Why? PM System is the only thing that can link Business Strategy with the People executing it Secondly… without a strong PMS, we cannot Differentiate employees properly. If we cannot Differentiate, we cannot define and manage Talent. Link between PMS/TM/Succession Planning? Business Continuity = perpetual business performance (in Asia = Legacy) Can only be done if the right Talents are in place (bench strength) Making sure the right Talents are spotted = PMS
• #14: Many people go around setting up PMS without clear understanding of Business Directions… (sometimes its hidden from lower management & consultants)… End up HR and Finance getting beat up by Management by now implementing PMS ‘properly’ Sometimes the Business itself is unclear, in this case, do not ‘re-structure’ the PMS – it will worsen the situation. End up, most Asian SMEs do D.I.Y PMS: Cut-and-paste Off-the-shelf
• #18: Example of successful customer loyalty strategy focusing on Operational Excellence and Product Leadership while maintaining market standard on Customer Service without indulging in it
• #19: Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
• #21: Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
• #22: How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience.
• #23: To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
• #24: OPTION 1
• #27: To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
• #30: To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
• #31: Refer to Handout 1: Value Disciplines
• #35: OPTION 1
• #36: OPTION 2 But…. I cannot tell you which path CNI has taken!
• #37: Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here. Resources must follow the Business Model: USP, Profit Model, Market Discipline
• #38: CNI:
• #43: Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here.
• #46: Why Constraints? Over aggressive unrealistic planning, usually by Marketing/Sales need to be grounded to real life Enables creative entrepreneurial thinking when resources are limited Enforce the need for Accountability i.e. ‘Return on Investment’ thinking for all Managers
• #48: Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here.
• #57: This grid and discipline will also help in: managing conflicts on where limited resources should go Solve the problem of ever compounding activities and resources
• #61: Common issues with how an organization’s PMS (or the lack of one) actually de-motivate Talents list is gathered from my consulting experience with organizations in Asia (especially SEA)
• #62: System problems mean that if we correct the PMS, the issues should not happen. Within the control of HR and other policy makers The rest are people problems i.e. usually with the Superior. These issues are softer and much harder to resolve.
• #63: Exercise: What is Performance Appraisal GENERALLY used for? What does your company use it for?
• #65: Refer to Handout and Exercise : 1. Which Performance Management System should we use.doc Managing expectations = e.g. from Finance Department and Credit Control
• #66: Example: What do you mean by Good? A, B, or C? Achieve 5 tasks, what is your rating? You mean if I achieve all, I only get AVERAGE? You must be crazy
• #67: This looks better for the ‘achieved all’ category But… the ratings still look ambiguous, right?
• #68: This looks better for the ‘achieved all’ category But… the ratings still look ambiguous, right?
• #69: This slide explains how you can REDUCE your organization’s KPIs by focusing on what matters most
• #70: Example: Define ‘Initiative’ How do rate Initiative on a 10-pt scale?
• #71: Example: Define ‘Initiative’ How do rate Initiative on a 10-pt scale? Exercise: Determine 1 core Competency/Values you want to evaluate Create a list of 5 ‘observable’ behaviors of that competency
• #73: Performance The ability of a person to meet current expectations Key Words: Results, Targets, KPIs, Achievement, Expectations, Training, Job Concentrates on the Past i.e. what the person has done Potential The capacity of a person to meet future expectations Key Words: Competencies, Learning, Fit, Adversity, Failure rate, Development, Career Concentrates of the Future
• #74: Group 1: High Potential, High Performance (Talent) Staff this category will automatically be placed in the company’s Succession Plans. Be the first priority to be considered for any promotions or upgrading exercises. Career Acceleration + Specialist Career Paths. Group 2: Average Potential, High Performance (Leadership Issues) Leadership, motivational and cultural development would be given to these staff while they perform in their current positions. Group 3: High Potential, Average Performance (Potential) Should not be given career advancement unless performance improves. Good targets for transfers or job rotations to departments that require urgent manpower. Group 4: Average Potential, Low Performance (Issues) Staff in this group should be monitored closely by HR. They should be eventually moved out of their current work function, department or even the company entirely.
• #75: B. Adopting creative approaches and models to attract and identify right talents There are many definitions of Talent. Don’t listen blindly to Consultants nor simply trust books nor MNC practices.