NAWBO-LA PEAK LEADERSHIP ACADEMY Session 4: Using Performance Management Systems to Support Successful Plan Implementation Management Systems Consulting Corporation 10990 Wilshire Blvd. Suite 1420, Los Angeles, CA 90024 (310) 477-0444 • www.mgtsystems.com Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Using Performance Management Systems to Support Successful Plan Implementation Purpose Help you understand how to maximize results by developing and implementing effective performance management systems. Objectives 1. Identify the steps needed to design and effectively implement performance management systems at the company, department, and individual levels. 2. Highlight the impact that effective performance management systems have on long-term organizational success. 3. Provide you with strategies for implementing effective performance management systems within your company. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 2 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Management Systems and Their Role in Organizational Effectiveness © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 3 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Management Systems A set of mechanisms (both processes and techniques) designed to increase the probability that people will behave in ways that lead to the attainment of organizational objectives. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 4 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Lack of Goal Congruency Individual’s Needs/Goals © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Company or Departmental Needs/Goals 5 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goal Congruency Individual’s Needs/Goals Company or Departmental Needs/Goals © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 6 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Levels of Organizational Control The Environment Core Control © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 7 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Elements of the Performance Management System © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 8 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Elements of Core Control Systems • Key Result Areas (From corporate or department plans or individual role descriptions) • Objectives (From corporate or department plans or individual role descriptions) • Goals (From corporate, department, or individual plans) • Measurement • Progress Review • Performance Evaluation • Rewards © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 9 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Key Result Areas • Areas of performance which are essential to the company’s, department’s or individual position-holder’s success. • Nine KRAs is considered the maximum number © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 10 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Objectives • Broad statements of what needs to be in achieved in each Key Result Area. • For the company/department, objectives define “strategy” – results to be achieved over the longer term. • For position-holders, objectives/activities define what needs to be achieved within each KRA. • Not changed unless the strategy or structure of the organization changes. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 11 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goals • Specific, measurable, time-dated performance targets to be achieved. Each objective will have one or more goals. • Requirements for effective goals: – – – – Limited in number Realistic; something that can be attained Stated in measurable terms Expectation of success should not be 100% © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 12 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY SMART Goals S Specific Outcome M Measurable A Accountable and Achievable R Results-Oriented and Realistic T Time-Dated © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 13 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Measures • Methods and procedures used to evaluate performance • Guidelines include: – A preference for objective tests – If subjective means are used, several different measurements are suggested © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 14 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Measurement Methods • Profit Measurement • Monetary Measurement • Non-monetary Measurement – Ratio: Numbers indicate the actual amounts of the property being measured. Has an empirically meaningful 0. – Interval: Numbers have quantitative significance – they represent distances between objects. The difference between a score of 8 and a score of 10 is the same as the difference between a score of 2 and 4. – Ordinal: Numbers signify rank order, but have no arithmetic significance. – Nominal: Numbers are “labels” intended for classification. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 15 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Progress Review: Periodic Review of Progress Made Toward Goals Regular, periodic feedback to each member of a manager’s team on performance against goals, tasks assigned, and on-going responsibilities. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 16 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Evaluation A formal process of evaluation and feedback (based on established goals) from which adjustments in an individual employee’s performance can be made. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 17 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Rewards • Positive reinforcers for accomplishing appropriate, goal-directed behavior. • Rewards need to be valued by people. • Something not desired does not constitute a reward. • Types of rewards – Intrinsic – Extrinsic © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 18 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY The Performance Management System Strategy/ Role Description Goals Behavior Results • KRAs • Objectives Progress Review/ Feedback Rewards Performance Evaluation/Appraisal © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Measurement System 19 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Operationalizing the Performance Management System – Individual Level © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 20 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What is a Key Result Area-Based Role Description? • Designed to support corporate strategy by identifying specific areas where a position contributes to the achievement of the organization’s mission. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 21 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Strategic Planning Waterfall Organization MISSION STATEMENT Business Unit Department Individual/ Manager KEY RESULT AREAS MISSION STATEMENT OBJECTIVES KEY RESULT AREAS MISSION STATEMENT OBJECTIVES KEY RESULT AREAS MISSION STATEMENT GOALS OBJECTIVES KEY RESULT AREAS ACTION STEPS GOALS OBJECTIVES/ ACTIVITIES ACTION STEPS GOALS GOALS ACTION STEPS CALENDARED ACTION STEPS © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 22 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What is a Key Result Area-Based Role Description? • Designed to support corporate strategy by identifying specific areas where a position contributes to the achievement of the organization’s mission. • Communicates the dimensions of a position to current and potential holders of that position, as well as others within the organization. • A guide for individual behavior. • A tool that managers can use as input for hiring, training, and day-to-day supervision. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 23 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Role Description Mission PositionSpecific PersonSpecific Broad statement of why the position exists. Key Result Areas Categories of activities on which the position holder should focus to maximize success. Objectives/Activities Broad statements of what should be focused upon in each category. Goals Results to be achieved within the next 12 months within each KRA. Action Steps Calendared activities to achieve each objective. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 24 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What are the Components of the KRA Role Description? • Date • Time Allocations • Department • Objectives/Activities • Title • Position Requirements • Mission • Key Result Areas • Authority © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 25 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Date, Department, Title • When was the role description created or last updated? • Where in the organization does this position reside? • What do we call this position? © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 26 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Mission • Why does this position exist in our organization? • What is its basic purpose? • How does it support the organization’s mission? © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 27 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Mission Statement Director of Marketing To develop, implement, monitor and evaluate strategic marketing plans that enable our firm to profitably capture a dominant share of the market. To effectively and efficiently utilize the resources of the marketing team in meeting or exceeding customer requirements. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 28 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Mission Statement Executive Assistant To ensure that the executive’s needs are met in a smooth and timely manner. To serve as the executive’s liaison with customers and staff. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 29 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What is a “Key Result Area”? • An area where performance is critical to success. • A “category” of activities. • Expressed in one, two, or three words (e.g., People Development, Manufacturing Capability, Planning). • Used in planning at the corporate, department, and individual level. • There should be 5 to 9 Key Result Areas. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 30 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example KRAs Company President • Financial Performance • Strategic Planning • Organizational Development • Shareholder and Public Relations • Corporate Culture Management • Board Relations • Staff Development and Supervision © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 31 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Role Description Worksheet Date: Department: Title: Mission: KEY RESULT AREAS Time Utilization Now Goal 1. 2. 3. 4. 5. 6. 7. Position Requirements: Education/Experience: Skills/Knowledge/Ability: Authority: © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 32 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Objectives/Activities • For each KRA, what are the specific activities that must be completed to fulfill the performance requirements of that area? • Specific to the position vs. the individual. • Ongoing responsibilities vs. time-dated goals. • Expressed as an action (starts with a present tense action verb). © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 33 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Present Tense Action Verbs • Oversees • Negotiates • Participates • Analyzes • Schedules • Trains • Approves • Plans • Coaches • Authorizes • Decides • Hires • Controls • Inspires • Fires • Coordinates • Motivates • Serves • Creates • Writes • Maintains • Designs • Edits • Facilitates • Develops • Purchases • Initiates • Ensures • Sells • Implements © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 34 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Levels of Decision-Making 1. I have complete authority to decide and to act. 2. I have complete authority, but must notify someone else after I have decided. 3. I have complete authority, but must consult with someone else before I decide. 4. I need the prior approval of someone else before I decide. 5. Someone else must consult with me before deciding. 6. Someone else informs me of their decision. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 35 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example Objectives/Activities Administrative Support • Word processes correspondence, manuscripts, reports and other documents. • Transcribes tapes. • Screens and handles telephone calls. • Maintains filing system. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 36 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example Individual Objectives/Activities Supervision • Recruits, hires and fires direct reports • Oversees the development and maintenance of role descriptions for direct reports • Works with direct reports to establish their annual goals that support the corporate strategy • Meets periodically with direct reports to review operations • Monitors the performance of direct reports toward their annual goals • Conducts annual formal performance reviews for direct reports • Gives informal performance feedback periodically to direct reports • Decides compensation for direct reports • Coaches, develops and serves as a resource to direct reports • Disciplines employees as appropriate © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 37 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Role Description Worksheet KEY RESULT AREA 1. _______________________ OBJECTIVES/ACTIVITIES a. b. c. d. e. 2. _______________________ a. b. c. d. e. ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 38 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Role Descriptions © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 39 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example of a Company President Role Description Date: February 9, 200X Department: Corporate Title: Company President Mission: To profitably and effectively manage the company and to maintain the highest possible level of customer satisfaction. Key Result Areas 1. Profitability 2. Staff Development/Management 3. Corporate Management 4. Planning 5. Corporate Culture Management 6. External and Public Relations 7. Organizational Development 8. Miscellaneous © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Time Utilization 15% 10% 15% 20% 10% 15% 10% 5% 100% 40 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example of a Company President Role Description KEY RESULT AREAS 1. Corporate Management OBJECTIVES/ACTIVITIES a. b. 2. Planning Working with the senior management team, ensures that corporate performance is aligned with the company’s strategy. Meets regularly with each senior manager to identify and resolve issues related to corporate performance. a. Leads the corporate strategic planning process. b. Works with senior management to develop the corporate plan. c. Works with members of senior management to evaluate performance and develop strategies for improving performance against the corporate plan. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 41 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goals, Performance Review, Performance Evaluation and Rewards © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 42 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Strategies for Establishing Individual Performance Goals • Link to the individual’s Key Result Areas • Support of the company’s business unit’s plan. • Consider the individual’s needs, goals, skills, abilities. • Limit number – no more than 3 to 5 in each Key Result Area. • Establish such that the individual responsible can exert control over their achievement. • Record in writing on the Performance Appraisal Form or a “Goal Setting Form” so that they can be referred to regularly by the manager and the individual responsible for achieving them. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 43 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goal Setting Worksheet Individual’s Name:___________ Position:_______________ Key Result Area Goals Support for Division/ Department Goals Support for Personal Goals 1. 2. 3. 4. 5. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 44 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Evaluation Form Individual’s Name:___________ Position:_______________ Key Result Area Goals Performance Achieved 1. 2. 3. 4. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 45 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Exercise: What Do People Value? Reward Importance in General Importance to the People You Supervise Job security Good wages Interesting work Sympathetic help on personal problems Promotional growth in the organization Feeling of being in on things Full appreciation of work done Personal loyalty to employees Good working conditions Tactful disciplining © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 46 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Plan Page KEY RESULT AREA: 1.0 Markets and Products Objective 1.1: Grow active buyer base at a rate consistent with overall sales growth per year. Goals Prty Who When 1. Increase our active buyer base by 50% from 1/1/0x to 9/30/0x. A BH 10/1/0x 2. Identify and evaluate vehicles for growth beyond FY’0x. A BH 9/30/0x 3. Identify new strategies to support FY ‘0x growth. C LM 6/30/0x © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Status 47 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Operationalizing the Performance Management System – Company Level © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 48 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Key Result Areas for the Company We suggest using the 6 levels of the Pyramid of Organizational Development + Financial Results: - Markets - Products - Resources - Financial Results - Operational Systems - Management Systems - Culture (Fiscal Management) Why? © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 49 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Pyramid of Organizational Development Corporate Culture Values Beliefs Norms Management Systems Planning Accounting: • Billing • Payroll Organization Perf. Mgmt. Management Development Operational Systems Production: Marketing: •Shipping • Selling Personnel: • Hiring • Compensation Resources Management Financial Resources Human Resources Technological and Physical Resources Products & Services Develop Products (Services) Markets Define Market Segments and Niche Business Foundation Business Definition Strategic Mission © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Core Strategy 50 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Objectives – Company KRA 1.0 Markets • Profitably grow our market share. • Foster the best customer relationships in our industry. Key Result Area 2.0 Resources • • • Achieve/maintain highly trained staff. Minimize staff turnover. Maintain physical environment with up-to-date equipment, facilities, design, and ambiance that is both safe and regulatory agency compliant. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 51 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Goals • Develop and begin production of two new internally generated product ideas that will result in total sales of $4 million by 12/31/0X. [Peter] • Earn revenues of $5 million by 12/31/0X. [Paul] • Open new accounts with average sales of $30,000 each by 12/31/0X. [Mary] © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 52 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Plan Page KEY RESULT AREA: 1.0 Markets and Products Objective 1.1: Grow active buyer base at a rate consistent with overall sales growth per year. Goals Prty Who When 1. Increase our active buyer base by 50% from 1/1/0x to 9/30/0x. A BH 10/1/0x 2. Identify and evaluate vehicles for growth beyond FY’0x. A BH 9/30/0x 3. Identify new strategies to support FY ‘0x growth. C LM 6/30/0x © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Status 53 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY The Performance Management System Strategy/ Role Description Goals Behavior Results • KRAs • Objectives Progress Review/ Feedback Rewards Performance Evaluation/Appraisal © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Measurement System 54 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Evaluating Your Performance Management Systems • • • • • System needed for each Key Result Area Each element must be designed and managed People make decisions based on rewards they are likely to receive Performance Management System needed for results Performance Management System may not function because of: – – Missing parts, or Wires not hooked up © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 55 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Evaluating Performance Management Systems Performance Management System Element Do We Have It? Rating (1-5) Evaluation Changes Strengths Limitations What, if any, changes need to be made? Plan Components • KRA • Objectives • Goals Measurement Progress Review © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 56 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Evaluating Performance Management Systems Performance Management System Element Do We Have It? Rating (1-5) Evaluation Changes Strengths Limitations What, if any changes need to be made? Performance Evaluation Rewards Linkages © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 57 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Operationalizing the Entire System: The Use of Scoreboards © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 58 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Use of “Scoreboards” • A tool that can be used to monitor performance against goals. • Scoreboards typically include the following elements: – – – – – • Key Result Area Related Objective A single Goal related to the Objective How progress against the goal will be measured (e.g., in what units) Status of progress in achieving the Goal The more measurable the Goal, the easier it will be to design the Scoreboard. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 59 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Measurement: Corporate Scoreboard Key Result Area: Objective Goal Measure Evaluation Overall Evaluation: _____ © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 60 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Bringing It All Together: The Performance Scoreboard KRAs Objectives Goals Measures Local Area Marketing/ Sales Growth Work with branch personnel to profitably achieve sales targets. Achieve 200X Sales targets. $$ Achieved $$ Achieved vs. budget Staff Develop/ Mgmt Train Branch personnel in branch business development techniques. 80% of Branch personnel will meet Countrywide standards in business development by 12/31/0X. Assessment checklist of business development standards. © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. Performance 61 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Making Planning Work • Base your plan on the best available information. • Involve other members of your team. • Take time to plan. – At least a full day, once a year, to review/refine your strategy and set annual Goals. – At least a ½ day each quarter to review/update your plan and problem-solve. – At least 2 hours a week to individual time management – schedule time in your calendar to work on Goals. • Set realistic Goals. • Hold people accountable for results. • Celebrate and reward success. • Don’t give up! – Remember that planning is like sausage AND – It is an invisible key to success! © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 62 Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Please note that all of the materials in this slide presentation are the proprietary intellectual property of Management Systems Consulting Corporation and may not be reproduced or otherwise distributed without permission. For more about reproduction rights or other information for this presentation, please contact: Management Systems Consulting Corporation 10990 Wilshire Blvd., Ste. 1420 Los Angeles, CA 90024 (310) 477-0444 www.mgtsystems.com © Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 63