Corporate
Performance
Measurement and
Management
at
M.P.S
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ROMY FELIX – HEAD HRD
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Agenda
1.
2.
3.
Introduction to Corporate Performance Management
Individual Performance Management
Definition: Competencies
 Organisational and Individual Competencies
 Competency framework
 Why Develop a Competency Framework
4.
Approaches to Competency Profiling
 Competency & Skill library features and Benefits
 Steps for implementing a Competency & Skills library
 Examples
5.
Definition: Job Profiling
 Process for Creating a Job Profile
 Examples and Templates
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ROMY FELIX – HEAD HRD
Performance
Measurement
What gets measured gets done and …
What gets measured becomes important!
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ROMY FELIX – HEAD HRD
Performance Management – the linking pin !
Vision
Strategy
Processes
Systems
•Starting with the
ultimate goal and
mission of the
organisation.
•Aligning the business
units, teams and
individuals
Performance
Management
Behavior and Actions
Results
ROMY FELIX – HEAD HRD
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What employees look for – the linking pin!
Vision
Strategy
Processes
•Understand what is
expected form them
•This will lead to
aligning individuals
towards achievement of
organisational goals
Systems
Performance
Management
Behavior and Actions
Results
ROMY FELIX – HEAD HRD
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What does Performance Management Involve?
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Achievement of strategic goals & objectives
Allocation of KPI’s
Facilitate employee personal development as part of a
integrated process
Understanding true strengths and weaknesses at every
level of the organisation
Transformation of people management into a result-driven,
strategic business function
Alignment of employee goals and actions with corporate
strategy
Retention of top performers and development of low
performers
Increased quality and frequency of communication between
managers and employees
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ROMY FELIX – HEAD HRD
CEO Questions
 Have I set the right organisation goals to achieve my strategy?
There must be a more systematic approach we could use for
goal setting.
 What kind of behaviors and skills and focus should I be
directing my employees to have in order to achieve these
goals?
 Does anyone know what behaviors will most likely help to
improve our financial performance or improve customer
satisfaction?
 Do the employees understand my vision and strategy? Have
they been clearly communicated?
 Do employees buy-in to these goals and do they understand
and buy-in their role or their divisions role in meeting the
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strategy?
ROMY FELIX – HEAD HRD
CEO Questions Cont.,
 Is my company structured optimally to fulfill our Strategy?
 Have we set up a performance incentive system that aligns
with our organisation strategy? Does it include objectives that
our staff care about?
 Do I have the right tools, systems and processes in place,
both formal and informal to support performance related
communication?
 Isn’t there some form of automation that can give me more
detailed, relevant information.
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ROMY FELIX – HEAD HRD
Performance
Management
May the most agile win …
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ROMY FELIX – HEAD HRD
Measurement and Performance
 There are some questions that are relevant for
business:
 Do we attract and retain the right people with the
right skills?
 Are we performing effectively in our operations to
produce and deliver to our stakeholders?
 Are we meeting or exceeding our stakeholders
expectations?
 How are we doing financially?
o Margins?
o Costs?
o Revenues?
o New business revenues?
ROMY FELIX – HEAD HRD
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Integrated and Balanced Management Approach
Perspective Strategic
Objectives
Measures
Targets
Owner/Accoun
t-ability
Initiatives
Financial
• Shareholder
value
• Profit
• New revenue
• Shareholder Equity
• Operating
margin
• Revenue from new
services
• R X million in 3 years
• RPI + x% annually
• 25% in three years
• Finance Dir.
• CEO
• Business Dev. Mgr
• Implement
Economic Value
Added
Customer
• Differentiation
• Strategic alliances
• Customer service
• Value for money
• Profits from alliances
• Customer satisfaction
• Number one customer
rating
• R x million in five years
• Number one customer
rating
• Marketing Dir
• Bus. Dev. Mgr.
• Marketing Dir
• Create customer
Segmentation model
• Redefine channel
strategy
Business
Processes
• Productivity
• New product devt.
• Segmentation
• Revenue/work hour
• Product development
cycle time
• Number of initiatives
targeted at profitable
segments
• Best-in-class within five
years
• Reduced by 50% in two
years
• 60% within one year
• COO
• R&D Manager
• Marketing Dir.
• Reengineering new
product
development
process
Learning &
Innovation
• People policy
• Alliance Mngnt
• Customer focus
• Management span of
control
• Number of “learning
partnerships”
• % management time
interfacing with cust.
• Triple in three years
• 10 in five years
• 20% in two years
• Human Res. Dir.
• Bus. Dev. Mgr.
• CEO
• Develop new HR
strategy
• Implement
performance based
compensation
program
This prioritised set of initiatives defines the executive agenda and should support the planning and budgeting process. Conversely, senior management should
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call into question any initiatives inconsistent with the strategic objectives.
ROMY FELIX – HEAD HRD
So far so good …….. But …..
 Is there any difference between organisational and
individual performance management?
 Where should management put more attention to
when managing performance?
 At the end …what is performance management?
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ROMY FELIX – HEAD HRD
Defining Individual performance
Performance
Management
Support and tools
KNOWLEDGE
I know how
to do it
CONTEXT
I know what
to do
Competencies,
knowledge and
skills
Motivation
WILLINGNESS
I want to do it
Performance: Those behaviours, that under the
right conditions, lead to the expected results
ROMY FELIX – HEAD HRD
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The need to cascading down to level n…
Value for clients, stakeholders
And employees
Organisational Strategies
Divisions, Sections,
Programs Plans etc
Individual Action
Best Practices
• In value based managed enterprises, individual employees understand how processes and
day-to-day activities contribute to value creation
• They know what they have to do individually to contribute to value creating
• This value creation focus becomes the basis for determining appropriate performance
measures and enables to differentiate between what could be measured and what should be
measured (Business Balanced Scorecard Concept)
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ROMY FELIX – HEAD HRD
Individual performance management infrastructure
Performance Management
infrastructure
1.
Roles & Responsibilities
2.
Annual objectives and feedback
3.
Competencies model
Organisation
Structure
Compensation
& Incentives
Career
Development
Training &
Education
Recruiting &
Selection
Integrated People Management Process
ROMY FELIX – HEAD HRD
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Performance Management System
PERFORMANCE MANAGEMENT
GOAL MANAGEMENT
COMPETENCY MANAGEMENT
Corporate Goals
Core Capabilities &
Key Competencies
Team Goals
Competency Mix
Individual Goals
Individual Competency
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ROMY FELIX – HEAD HRD
Competencies….
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ROMY FELIX – HEAD HRD
What are competencies?
 Competencies are a set of behaviours that encompass
skills, knowledge, abilities, and personal attributes
that, taken together, are critical to successful work
accomplishment.
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ROMY FELIX – HEAD HRD
Organisational and Individual Competencies
 Organisational Competencies:
 Pinpoints the most critical competencies for
organisational success. These are an organisation’s
core competencies.
 Individual Competencies:
 Those competencies that each employee brings to his
or her function.
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ROMY FELIX – HEAD HRD
What is a Competency Framework?
 A Competency Framework is a map to display a set of
competencies that are needed to achieve an
organisation’s mission, vision, and strategic goals.
 A Competency Framework is future-oriented, providing a
master of core individual competencies required to
develop the ideal future workforce.
 The competencies that make up the framework will serve
as the basis for future employee management, since
they play a key role in decisions on recruiting,
employee development, personal development, and
performance management.
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ROMY FELIX – HEAD HRD
Why a Competency Framework?
 A Competency Framework will help to bridge the gap
between where the organisation is now and where we
want to be in the future.
 This occurs in two ways.
 Serves as a guide for management in making decisions, since it
is based on the competencies that support the mission, vision,
and goals of the organisation.
 Serves as a map to guide employees towards achieving the
mission of the organisation and their functional areas.
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ROMY FELIX – HEAD HRD
Approaches to Competency Profiling
Two approaches to competency profiling:
 Top-down approach:
 Generally involves picking, based on a strategic analysis of the
organization's performance objectives, an array of competencies
from a dictionary of competencies and assessing those for a
particular position or class of positions.
 Bottom-up approach:
 Involves exploratory checklist surveys and subsequent
confirmatory interviews to derive the competencies from
employees.
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ROMY FELIX – HEAD HRD
Functional Competencies
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Administrative Knowledge
Business Acumen
Computer
Filing
Financial
Health & Safety Knowledge and Skills
Human Resources
Industrial Relations
Legal Knowledge
Management Information
Marketing/Sales
Procurement
Quality Knowledge and Skills
Security
Typing
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ROMY FELIX – HEAD HRD
Task and Leadership Competencies
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Analytical Ability
Assertiveness
Conflict Handling
Customer Focus
Decisiveness
Flexibility
Individual Leadership
Initiative
Judgement
Leadership of change
Negotiation Skills
Oral Presentation
Oral Persuasiveness
Performance Orientation
Persistence
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ROMY FELIX – HEAD HRD
Task and Leadership Competencies
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Planning/Organising/Control
Self-development orientation
Strategic and Global Perspective
Team Leadership
Values
Verbal Communication
Written Communication
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ROMY FELIX – HEAD HRD
Competency & Skill Library Features & Benefits
 Comprehensive Library
No need to “reinvent the wheel.” Allows a quick start.
Completely customisable: Create new skill groups, skills, and subskills as needed
 Create Common or Unique Performance Levels
Define different levels of competence (for example, from beginner to
expert) for each competency, or use one scale for all
 Input Performance Targets
Identify performance expectations for each competency/skill group
for entry level up to senior management
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ROMY FELIX – HEAD HRD
Competency & Skill Library Features & Benefits
 Define Behavioural Indicators
If desired, enter behavioural examples/targets for competencies and
skills
 Continually Enhanced and Grows in Value
The library is easily enhanced as a by-product of job profiling,
performance planning, and employee development
 Fully Integrated with Other HR Functions
Your competency/skill library is used in every other function of HR, it
ties them all together, and allows consistency throughout all of your
performance management and developmental programs
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ROMY FELIX – HEAD HRD
Steps for Implementing Competency & Skill
Library
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Step 1: Review provided library; eliminate
competencies and skills that are irrelevant to the
organisation
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Step 2: Select core competencies based on
organisational strategy and values
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Step 3: Departments review list of competencies and
skills for their function and add additional
competencies and skills as they are needed
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Step 4: Library grows naturally as new skill needs are
identified while building job profiles, performance,
development, or succession plans
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
Example of Competency Assessment Process
Step 4: Assess Competency Level Achievement
Competency Assessment
Competencies
Required
Level of
Complexity
[Refer to
Competency
Framework]
Employee’s
Rating
Actual
Rating
GAP
Developmental Requirements
Business Acumen
4
3
3
-1
Work towards attaining required level. [Refer to
Academy, or engage in formal training, e.g. Advanced
Management Programme, UNISA]
Marketing/Sales
4
3
3
-1
Investigate marketing & sales activities in BU. Report
back in 3 months for actions to be taken after
discussion with Reviewer
Financial
4
3
3
-1
Requires training on financial modeling. Recommend
that Academy module on Financial Modeling be taken.
Industrial Relations
3
3
3
0
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ROMY FELIX – HEAD HRD
Job Profiling…
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ROMY FELIX – HEAD HRD
What is Job Profiling
 Job Profiling is a systematic procedure for identifying the
Competencies critical for success in a particular job or
a job role.
 Job profiles can then be used for recruitment,
selection, performance review, promotion, career
development and succession planning.
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ROMY FELIX – HEAD HRD
Job Profiling Procedure
 Step 1:
Obtain background information about the job
to be profiled and how that job fits into the organisation.
 Step 2:
Develop an initial list of the tasks most
relevant to the job being profiled.
 Step 3:
Meet with subject matter experts (SMEs)—
incumbent workers or supervisors of the job being
studied—who review and revise the list, adding, deleting,
consolidating, or changing the wording of each task to
make sure that the list of tasks accurately represents the
job as it is performed in the organisation.
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ROMY FELIX – HEAD HRD
Job Profiling Procedure
 Step 4:
Present detailed descriptions of each of the
Analytix Competency Framework to the SMEs. The
SMEs decide, as a group, which competencies are
relevant to the job and which skill levels are necessary
for entry into the job and effective performance in the
job.
 Step 5:
The final product of the profiling procedure is
a report listing the most critical tasks an individual in that
job must perform and, for each relevant Analytix
competency, the skill level required to perform the job.
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
Operational objectives
Executive Role
Represent Finance & Funding and provide strategic input and value add at EXCO, ABCC Board Meetings, Board Committee
Meetings, External Boards, Divisional Merit Committee Meetings, and facilitate the implementation of Executive/Board
decisions.
Leadership
Effectively provide leadership in the Finance & Funding Division and participate in executive decision-making and leading of
division and SBU’s:
Effective PM
Enhance performance culture in Division and SBU’s by successfully implementing the enhancements of the ABCC Star
Performance Management Project:
Long-term strategic objectives
Financial
Mngmnt
Effectively manage and monitor all activities that may have a financial impact on the IDC:

Ensure timely and accurate budgeting and financial reporting on all the IDC’s financial matters, including the subsidiaries

Enhance financial reporting functionality at SBU level to include Profit & Loss and Balance Sheet reports

There is adherence to the PFMA and other regulatory reporting requirements

Company and external auditors are satisfied that proper treatment of transactions were made (including tax)
Strategic
Initiatives
Ensure the ABC’s ability to fund all financing activities through effective utilisation of cash resources (including borrowings) as
determined by it’s mandate through provision of loan finances, leased buildings, suspensive sales, plant leases, guarantees
and the provision of ordinary preference share capital
ABC’s Credit Rating

Ensure that the Moody’s rating of the ABC, to be obtained by June 2003, is at least maintained or improved to ensure IDC access to
competitive funding
Liquidity

Establish and implement programs to protect the IDC’s capital in place through management and realisation of the Mature Holdings
to enable the Corporation to remain within it’s limit, and to ensure a ready income stream, and a debt: equity ratio below 60%
Attractive Longer term funding

Enable IDC access to attractive priced longer term funding by developing and maintaining relationships with a number of international
development finance institutions, including European Investment Bank, DEG, Proparco, and Japan Bank for international Cooperation relationships with leading DFI’s.
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ROMY FELIX – HEAD HRD
Example of Individual Target Setting
Step 3: Set Measurable Targets for Individuals
Department
Programme
Personal development needs and
aspirations
Team objectives
Individual objectives
Self
Target
Final
Objectives
Result
Weighting Assess
% 1–5
Grow net new money excluding market growth
by the end of Q4 2001
Improve client satisfaction feedback by setting
up an appropriate survey by Q3 2001
Improve capabilities in client service by
attending course by end Q4 2001
10%
Manager
Assess
1–5
1-5
6%
40%
4
3
3
Survey
set up
40%
4
4
4
Attended
20%
2
4
3
ROMY FELIX – HEAD HRD
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Parameter
Performance Standard
Measurement
Weight
Executive Role
Represent Finance& Funding and provide strategic input and
value add at Board, EXCO, Board Committee Meetings,
External Boards, Audit and Merit Committee Meetings, and
facilitate the implementation of Executive/Board decisions.
Divisional Merit Committee Evaluation
20%
Divisional Leadership
Effectively provide leadership and guidance to SBU Heads in
policy and operations, and implementation of strategy and
business plans and participate in executive decision-making
Subordinates Evaluation
20%
Effective
Performance
Management
Enhance performance culture in Service Sector Division and
SBU’s by successfully implementing the enhancements of
the IDC Star Performance Management Project by June
2003.
VP Human Resources Evaluation
20%
Financials and
Compliance
Ensure accurate and timely quarterly, 6 monthly, and annual
budgeting and reporting
Chairman of Board Audit Committee
Evaluation
10%
ATG and EXIM
Ensure Division’s contribution to successful roll-out of ATG and
successful implementation of EXIM project by June 2003
CIO Evaluation
10%
Corporate Support
Effectively manage the corporate support function, including
maintenance of buildings and infrastructure, Infrastructure,
secretarial division, dematerialisation of shares
Sample VP and SBU Head satisfaction
survey
10%
Moody’s Rating
Successfully manage the IDC’s application in obtaining a Moody
credit rating by June 2003
CEO Evaluation
10%
100%
ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
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ROMY FELIX – HEAD HRD
Thank you
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ROMY FELIX – HEAD HRD