Madhu Arora,
GM (Corporate Restructuring)
0
Performance Management System
A robust and effective performance
management system is an important
HR tool to measure and incentivize
desired behavior
1
Performance Management System in BSNL
Given BSNL's size and
complexity, a step-wise approach
adopted to introduce PMS in
BSNL
PMS
Comprehensive group
based approach to
cover all employees in
Group PMS (GPMS)
Field level PMS
(FPMS) to cover field
staff involved in sales,
CSCs, exchanges
and mobile operations
Individual PMS
(IPMS) for officers
(DGM level & above)
to be gradually
introduced
2
Group Performance Management System (GPMS)
 Covers all BSNL employees in 19 group types
Each Territorial Circle, non-Territorial Circle, SSA is a
Group
 Key Performance Indicator(KPI) based score cards
designed for objective and transparent assessment of
performance
 Group score cards have been finalized with targets
assigned for all groups for this year
GPMS is aimed at rewarding everyone in the group based
on overall Group’s performance
 GPMS score to form the basis of PRP, other financial
incentives
3
As part of GPMS design, all BSNL employees have been
structured along 19 groups
Number of
group types
Number of
groups
1. Consumer Fixed Access
2. Consumer Mobility
3. Enterprise
4. New businesses
5. Corporate Affairs
6. HR (Incl. Legal and Vigilance)
7. Finance
Sub-total
Territorial Circle
Sub-total
1. Project Circle
2. Maintenance Region
3. Inspections (earlier T&D)
4. QA
5. Telecom Stores
6. Telecom Factory
7. ITPC
8. NCES
9. Data N/W
10. Training Circle
Sub-total
SSAs
1
1
1
1
1
1
1
7
1
1
1
1
1
1
1
1
1
1
1
1
10
1
1
1
1
1
1
1
1
7
26
26
5
4
1
1
1
3
1
1
1
3
21
330
Total
19
384
Category of groups
Corporate office
Territorial circles
Non Territorial
Circles
SSA
Group Type
4
Organisation redesign
Metrics for appraisal and scoring are drawn from various
dimensions to give a fair appraisal
Key performance indicators
1
The appropriate mix of KPIs will
depend on the role and on the
importance of each perspective
Financial
What impact can this person have, in terms of
financial measures?
Objective
2
Customer / Market
Measure
Target
Weighting
1
How can this person maximize customer
satisfaction?
2
3
3
Operations / Processes
What are the operations / processes relevant
to this person that most drive performance?
Weighting
and mix
4
5
6
4
Employee development
What can this person do to most actively
facilitate the development of others?
There should be no more than 5–7
objectives in total; more could result in
lack of focus, potentially undesirable
trade-offs, and reduced performance
5
KPIs Design Parameters
•
Source of Inputs
Criteria for KPIs
definition
GPMS SCORE
Card
MOU Between DOT
and BSNL for year
2010-11
Weighting Factors
JD and KRAs
defined as part of
organization
Design.
Interaction with
individual Groups
Previous BBS
parameters
Definition&
Formulas
Strategic
Measurable
Target
Can be
set
Source of
information
Target setting
mechanism
6
SAMPLE GPMS SCORE CARDS
 Score Cards for Corporate Office Units
 Circles
 SSAs
7
Consumer Fixed Access
Group Performance Management System (GPMS) score-card
Consumer Fixed Access
Targets and Scores
Key Performance Indicators
Key Performance Indicators (KPI)
Weighting Annual
Target
factor
Performance levels1
Good
V.Good
5110.80
6814.40
8518
4084
Targets
achieved
Marks
achieved
Weighted
score
xxx
xxx
xxx
Excellent
Financial
1.
2.
CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.)
CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.)
20%
8518
20%
4084
2450.40
3267.20
5%
-1500
-2160
-1830
-1500
7.5%
3500
2100
2800
3500
5
1200
Customer/Market
3.
Net adds (by number of subscribers) - Basic (in 000's)
4.
Net adds (by number of subscribers) - Broadband (in 000's)
5.
Customer satisfaction level (including QoS) (Scale of 1 to 5)
7.5%
5
3
4
2.5%
1200
720
960
5%
305
270
290
305
66.10
Operations
6.
Net adds in Tax capacity (in KC)
7.
CDR implementation (No. of SSAs)
8.
CCR rate for Landline –local
2.5%
66.10
58.00
63
9.
CCR rate for Landline – STD
2.5%
51
45
49
51
10. Fault rate (LL)
2.5%
5.3
7
6
5.3
11. Fault rate (BB)
2.5%
5
6
5.4
5
90
12. % of faults cleared by next working day (LL)
2.5%
90
85
88
13. % of faults cleared by next working day ( Broadband)
2.5%
90
83
87
90
14. % of new services (LL) provisioned within the norm (7 days)
2.5%
97
90
94
97
5%
100
90
96
100
16. Overall performance (on scale of 1 to 5 - to be assessed by CMD)
10%
5
3
4
5
Total
10%
15. % of new services (BB) provisioned within the norm (7
days)(Subject to technical pheasibility)
Overall performance
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and
Excellent would be linearly scaled
Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available
8
Consumer Mobility
Group Performance Management System (GPMS) scorecard
Consumer Mobility
Key Performance Indicators
Key Performance Indicators (KPI)
Targets and Scores
Weighting
factor
Annual
Target
V.Good
Good
Financial
1. Revenue GSM (Rs Cr)
20%
2. Revenue GSM (VAS)(Rs Cr)
10%
3. Revenue EVDO (Rs Cr)
2.5%
4. Revenue WLL (Rs Cr)
2.5%
5. Revenue Wi- Max (Rs Cr)
5%
Customer/Market
6. Net adds (by number of subscribers) (GSM - 2G) (in 000's)
5%
7. Net adds (by number of subscribers) (GSM - 3G) (in 000's)
3%
8. Net adds (by number of subscribers) (Data Card-3G) (in 000's)
2%
9. Net adds (by number of subscribers) (CDMA) (in 000's)
2%
10 Net adds (by number of subscribers) (Data Card - EVDO) (in
2%
000's)
11. Wi-MAX Net adds (By nimbers ) (in 000’s)
1%
12. Customer satisfaction level (including QoS) (Scale of 1 to 5)
5%
13. % of call centre complaints resolved within 24 hours
5%
Operations
14. Call drop rate (%)
5%
15. BTS availability (%)
5%
16. Blocked call rate - TCH congestion (%)
5%
17. Call handover success rate (%)
5%
18. Call set-up success rate (%)
5%
Overall performance
19. Overall performance (on scale of 1 to 5 - to be assessed by CMD) 10%
Total
100%
16964
3200
148
1130
395
Targets
achieved
Performance levels1
Excellent
10178.4 13571.2
2560
1920
118.4
88.8
904
678
316.8
237.6
16964
3200
148
1130
395
17000
3000
200
1500
157
10200
1800
120
900
94.2
13600
2400
160
1200
125.6
17000
3000
200
1500
157
1035
5
70
621
3
63
828
4
67
1035
5
70
2.2%
2.5%
97%
96%
2.2%
2.5%
94% 94.50%
95%
94%
2%
98%
2%
95%
96%
4
5
2%
98%
2%
95%
96%
5
3
Marks Weighted
achieved
score
xxx
xxx
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and
Excellent would be linearly scaled
Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available
xxx
9
Enterprise
Group Performance Management System (GPMS) scorecard
Enterprise
Key Performance Indicators
Key Performance Indicators (KPI)
Targets and Scores
Weighting
factor
Annual
Target
Performance levels1
Good
Financial
1. Revenue from leased circuits and managed services (Rs. Cr.)
2. Wholesale revenue from other carriers and service providers, i.e.
bulk deals (e.g. ILD, NLD) (Rs. Cr)
3. Revenue from enterprise customers from all other voice and data
offerings (e.g. PRI, mobile CUG, EPABX, leased internet, bulk
broadband, data cards) (Rs. Cr.)
Customer/Market
4. Number of new Platinum accounts penetrated (minimum business
of Rs 40 lakhs per account p.a.)
5. Number of new Gold accounts penetrated (minimum business of
Rs 10 lakhs per account p.a.)
6. Customer satisfaction level (including QoS) (Scale of 1 to 5)
Operations
7. Average time taken to provision leased circuits (days)
8. MPLS Network uptime (including edge routers) (%)
9. Average restoration time for OFC and systems by regions (hours)
10.% ILD bandwidth commissioned vis-à-vis planned
11.% OFC route km commissioned vis-à-vis planned
12.% OFC system km commissioned vis-à-vis planned
Overall performance
13.Overall performance (on scale of 1 to 5 - to be assessed by CMD)
Total
40%2
-
1950
-
Marks Weighted
achieved
score
V.Good Excellent
1463
-
1716
-
-
-
1950
5%
72
56
64
72
5%
230
157
187
230
10%
5
3
4
5
5%
5%
5%
5%
5%
5%
30
100%
8
100%
95%
98%
45
60
99.50%
99%
10
12
80%
60%
80%
70%
85%
75%
30
100%
8
100%
95%
98%
10%
100%
5
4
5
3
Targets
achieved
xxx
xxx
xxx
1.Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and
Excellent would be linearly scaled 2. The performance of Financial KPI no. 2 & 3 cannot be measured at present, hence no targets are being given for them and weightage of KPI 1 has
been increased to 40%
Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available
10
Note: SLA related metric to be introduced in Operations once SLAs are established and enforced as standard practice, and when SLA violations are tracked in MIS
New Businesses
Group Performance Management System (GPMS) scorecard
New Businesses
Key Performance Indicators
Key Performance Indicators (KPI)
Targets and Scores
Weighting
factor
Annual
Target
Performance levels1
Good
Infrastructure
1. Infrastructure business revenue and savings (Rs. Cr.)
2. Number of towers shared with other operators
3. Timely commissioning of USO towers (%actual vs. planned)
International Business
4. Total transaction value (revenue) from international business deals
(minimum value of each business deal Rs. 1 Cr.)
5. Number of international business proposals taken to offer or
negotiation stage
Civil Electrical Architecture USO
6. Business earned from External Works during the course of year (Rs.
Cr.)
7. Electricity bill saving during the course of the year (in Rs Cr.)
8. Effective management of Architectural Services for BSNL-HQ,
Territorial Circles, Telecom Factories & Training Centres (incl. building
design, interior design, design standardization, cost reduction, new
technologies, energy conservation, etc.) (on scale of 1 to 5 – to be
assessed by Circle Heads and BU heads)
9. Timely roll-out of USO towers (%actual vs. planned)
Telegraph Services
10 Rationalization / closure and modernization (e.g. conversion to CSCs)
of Telegraph infrastructure and systems (esp. low traffic or loss
making units), and redeployment of manpower for gainful utilization
(on scale of 1 to 5 – to be assessed by BU Heads and Territorial Circle
Heads)
Telecom Factory (HO)
11. Timely and effective management of Telecom Factory related afGoods
(allocation of items to circles, planning and coordination of production,
etc.) (on scale of 1 to 5 – to be assessed by Territorial circle Heads,
Project circle heads, Maintenance region heads and BU heads)
Overall performance
12. Overall performance (on scale of 1 to 5 - to be assessed by CMD)
Total
1.
V.Good
10%
20%
5%
250
11000
100%
150
6600
60%
200
8800
80%
10%
5
3
4
3
4
5%
7.5%
5
5%
600
75
360
45
5%
5
3
5%
100%
60%
5%
10%
10%
100%
5
Targets
achieved
Marks
achieved
Weighted
score
xxx
xxx
xxx
Excellent
250
11000
100%
5
5
480
60
4
600
75
5
80%
100%
4
5
3
5
3
4
5
5
3
4
5
Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent
would be linearly scaled Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available. Additional revenue
KPIs to be added when applicable.
11
* Figure modified as per 100 days target, (for GPMS)
Corporate AfGoods
Group Performance Management System (GPMS) scorecard
Corporate Affairs
Key Performance Indicators
Key Performance Indicators (KPI)
Targets and Scores
Weighting
factor
Target
Good
Corporate IT
1. % of ERP modules for which blueprint document preparation completed
(target is to complete for 10 modules by March 31st, 2010)
2. Availability of critical IT systems at the Corporate Office, e.g. LAN, WAN,
corporate email etc. (%)
Planning & Monitoring
3. % of reports and MIS completed or published in time
4. Number of EoIs floated based on planning for forward looking
communication technologies (actual vs. planned)
Coordination
5. Timely monitoring or review of performance against business plan and
publishing of reports and MIS (actual vs. planned)
6. % of Right to Information requests and Public Grievances cases cleared
or answered within the prescribed time frame as per the norms
Materials Management
7. Number of tenders finalized vis-à-vis total number of tenders planned +
requisitioned (%)
8. % of tenders finalized within the standard time (120 days between
requisition from BU and tender finalization for single stage bid and 180
days for two stage bid)
9. Inspection and followup of Nodes (Exchange Nodes, Broadband Nodes,
GSM BTS, WLL BTS)
Regulation
10. Timely and effective monitoring of compliance with TRAI regulations in
all BSNL processes incl. tariff, license fees, spectrum etc. (on scale of 1
to 5 – to be assessed by Territorial Circle Heads)
11. Timely signing of interconnect agreements with other operators
including review and amendment thereof (within 30 days)
Marketing
12. Number of marketing campaigns executed vis-à-vis requisitioned (%)
13. Quality of marketing initiatives (brand strength, customer awareness of
BSNL offerings, satisfaction levels etc.) (on scale of 1 to 5)
Overall performance
14. Overall performance (on scale of 1 to 5 - to be assessed by CMD)
Total
Targets
achieved
Performance levels1
Marks
achieved
Weighted
score
xxx
xxx
Excellent
V.Good
15%
100%
60%
80%
100% xxx
5%
100%
80%
90%
100%
5%
5%
In time
2
Delay 2 Wk Delay 1 Wk
5%
1
1
In time
2
90%
80%
85%
90%
5%
90%
80%
85%
90%
5%
90%
50%
70%
90%
5%
70%
40%
50%
70%
10%
5000
3000
4000
5000
5%
5
3
4
5
10%
50%
30%
40%
50%
5%
80%
60%
70%
80%
10%
5
3
4
5
10%
100%
5
3
4
5
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and
Excellent would be linearly scaled
12
Human Resources
Group Performance Management System (GPMS) scorecard
Human Resources
Targets and Scores
Key Performance Indicators
Key Performance Indicators (KPI)
Weighting
factor
Good
Manpower planning and Recruitment
1. Effectiveness of manpower planning for executives (incl. equalization
5%
or balancing of manpower amongst circles, excluding tenure circles)
2. Number of executives (DGMs, MTs, JTOs) recruited during the course
5%
of the year vis-à-vis planned (%) (actual vs. planned)
Promotion
3. Number of personnel promoted during the course of the year vis-à-vis
10%
planned (%) (actual vs. planned)
Transfers
4. Timely compliance of transfers and postings orders for executives (%
10%
of transfer and posting orders executed within 45 days from date of
issue)
Timely completion of ACRs
10%
5. % of ACRs for corporate office completed by the required date
Training
15%
6. Total number of persons trained as a percentage of total number of
people in the organization (yearly MoU target)
5%
7. % of courses conducted having quality rating more than 85% by the
trainees
GPMS
8. Timely creation of Corporate Office , Circle office and SSA GPMS
2.5%
Scorecard for 2010-11.
9. Timely mid term evaluation of BSNL CO and Circle GPMS Scorecard for 2.5%
year 2010-11
FPMS
10. Timely finalisation of FPMS Scheme along with all cards
2.5%
11. Implementation of FPMS scheme in all Circles.
2.5%
Staff Relation
12. Quality of Staff relations - % of mandays out of total mandays lost due
to union disputes
10%
Establishment
5%
13.. % of Court cases processed
5%
14. % of National Council decisions followed up as per agreed terms
Overall performance
10%
15. Overall performance (on scale of 1 to 5 - to be assessed by CMD)
100%
Total
Marks
Weighted
Targets
score
achieved achieved
Performance levels1
Target
V.Good
Excellent
10%
30%
20%
10%
80%
60%
70%
80%
80%
60%
70%
80%
90%
70%
80%
90%
100%
80%
90%
100%
25%
21%
23%
25%
75%
55%
65%
75%
xxx
30-Jun-10
>30 Days >15 days
30-Jun-10
15-Nov-10
>30 Days >15 days
15-Nov-10
20-Apr-10
100%
>30 Days >15 days
90%
95%
20-Apr-10
100%
1%
3%
2%
100%
90%
80%
70%
90%
80%
5
3
4
xxx
xxx
1%
100%
90%
5
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and
13
Finance
Group Performance Management System (GPMS) scorecard
Finance
Key Performance Indicators
Key Performance Indicators (KPI)
Targets and Scores
Weighting
factor
Target
V.Good Excellent
Good
Budgeting and Financial control
1. Timely monitoring and communication to circles (e.g. quarterly)
regarding adherence on capex and opex budget (actual vs. planned)
2. Timely creation, communication and review of financial plan and
budget for BSNL across all circles (actual vs. planned)
Corporate Accounts
3. Timely closing of annual and quarterly accounts for BSNL and
conducting external audit (actual vs. planned)
Investments
4. ROI of BSNL's funds management activities (banking, treasury etc)
Taxation
5. Timely filing of statutory and regulatory returns (% actual vs. planned)
6. Effectiveness and efficiency of settlement of tax related legal cases
against BSNL (at COD level) (actual vs. target)
Revenue Assurance
7. Planning and implementation of Revenue assurance policy, process
and guidelines (on scale of 1 to 5 – to be assessed by BU Heads)
Transfer Pricing
8. Effectiveness of Transfer Pricing policies and guidelines incl cost,
pricing and taxation issues, based on proposals of transfer pricing
from respective BUs for various services (on scale of 1 to 5 – to be
assessed by BU Heads)
Procurement Finance
9. Ratio of number of cases in which financial evaluation or financial
appraisal / advice not accepted by approving authority to total
number of cases for which appraisal / evaluation is carried out (%)
Internal Audit
10. % of Circles, SSAs, non-territorial circles and units of Corporate
Office for which internal audit (both proprietary and regulatory)
conducted (actual vs. planned)
Finance Personnel
11. Effectiveness of managing HR related issues for Finance cadre (incl.
training, promotions, manpower planning etc.) (on scale of 1 to 5 - to
be assessed by Finance Heads at Territorial Circles)
Overall performance
12. Overall performance (on scale of 1 to 5 – to be assessed by CMD)
Total
5% 15 days from finalisation of
Quarterly Accounts
5% RE compilation by 15th
October, BE by 28th Feb
Targets
Marks Weighted
achieved achieved
score
Performance levels1
30 days 21 days
15 days xxx
15 days
7 days Within time
10% Adoption of annual accts by 15 days
Board by 30th June
7 days Within time
10% Avg ROI for the year-4.5%
10% Filing IT Ret. by 30thSep
Submit cases to COD in 45
5% days from rec. from Circles
1%
4%
4.50%
30 days 15 days
15 days 7 days
within time
within time
3
4
5
3
4
5
10% less than 5 %
15%
10%
5%
10% 100%
75%
90%
100%
5% 5
3
4
5
10% 5
100%
3
4
5
10% 5
10% 5
xxx
1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and
Excellent would be linearly scaled
xxx
14
Group Performance Management System (GPMS) scorecard
Territorial Circle
Group
Group level
weightage
S. No.
1
2
3
4
5
Consumer
Fixed
Access
25%
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Consumer
Mobility
30%
20
21
22
23
24
Dimension
KPI
Financial
Financial
CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.)
CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.)
Customer /
Market
Customer /
Market
Customer /
Market
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Net adds - (by number of subscribers) Basic (in 000's)
Operations
Operations
% of new services (BB) provisioned within the norm (7 days of BB) [subject to
technical feasibility]
Overall performance (on scale of 1 to 5 - to be assessed by Director - CFA)
Financial
Weig
Target
htage
20%
20%
Target
Marks Weighted
Achieved Achieved Score
Performance Levels1
692.48
393.00
Good
V.Good Excellent
415.49
553.98
692.48
235.80
314.40
393.00
-118.67
-170.88
-144.78
-118.67
350
210
280
350
7.5%
5
3
4
5
2.5%
5.0%
2.5%
2.5%
2.5%
2.5%
2.50%
2.50%
212
21
69.8
54
4.2
5%
90%
100%
99%
127
12
60.0
46
7.5
6%
85%
90%
90%
170
17
65.0
51
5.5
5.4%
88%
97%
95%
212
21
69.8
54
4.2
5%
90%
100%
99%
100%
90%
96%
100%
10%
5
3
4
5
CM revenue (Rs. Cr.)
40%
1458.83
1312.95
1385.89
1458.83
Customer /
Market
Customer /
Market
Customer /
Market
Operations
CM Net adds - GSM (by number of subscribers) (in 000's)
13%
2497.00
2247.30
2372.15
2497.00
CM Net adds - CDMA (by number of subscribers) (in 000's)
2%
70
63
66.5
70
CM Net adds - WiMAX (by number of subscribers) (in 000's)
5%
80.80
48.48
64.64
80.80
BTS availability (%)
10%
98%
96%
97%
98%
Operations
Call drop rate (%)
10%
2%
2.5%
2.2%
2%
Operations
Blocked call rate - TCH congestion (%)
10%
2%
2.5%
2.2%
2%
Operations
Overall performance (on scale of 1 to 5 - to be assessed by Director - CM)
10%
5
3
4
5
Net adds - (by number of subscribers) Broadband (in 000's)
Customer satisfaction level (including QoS) (Scale of 1 to 5)
Net adds in tax capacity(in KC)
CDR Implementation (No. of SSAs)
CCR rate for Landline local
CCR rate for Landline STD
Fault rate LL
Fault rate BB
% of faults cleared by next working day LL
% of faults cleared by next working day BB
% of new services (LL) provisioned within the norm (7 days for LL)
5%
7.5%
2.50%
5.00%
15
Group Performance Management System (GPMS) scorecard
Territorial Circle
Financial
Enterprise BU revenue (Rs. Cr.)
40%
156.86
117.65
138.04
156.86
Customer /
Market
Number of new Enterprise Gold accounts penetrated
20%
20
14
17
20
Operations
MLLN / MPLS network uptime (%)
15%
98%
96%
97%
98%
Operations
Average provisioning time for leased circuits(no. of days)
15%
30
90
60
30
Operations
Overall performance (on scale of 1 to 5 - to be assessed by Director - Enterprise)
10%
5
3
4
5
Financial
New Businesses revenue (Rs. Cr.)
15%
17
8.5
12.75
17
Financial
Budget adherence on opex (% actual spend vs. budgeted) (on items excluding those in
schedule P)
15%
100%
115%
105%
100%
Financial
Operating ratio (%)
15%
58%
75%
68%
58%
Financial
Overall assessment on Finance related issues, including budget adherence, financial
planning, accounting, revenue assurance etc. (on scale of 1 to 5 - to be assessed by DirFinance)
15%
5
3
4
5
34
Customer /
Market
Customer satisfaction level (including QoS) (Scale of 1 to 5)
20%
5
3
4
5
Employee
development
Overall assessment on HR related issues, including training, recruiting, promotion,
transfers etc. (on scale of 1 to 5 - to be assessed by Dir-HR)
20%
5
3
4
5
35
Overall performance (on scale of 1 to 5 - to be assessed by CMD)
100%
5
3
4
5
25
26
Enterpris
e
15%
27
28
29
30
31
32
Other
Overall
performa
nce
20%
10%
33
36
Overall
assessment
1. Marks for Good rating = 60, Very Good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very Good and
between Very Good and Excellent would be linearly scaled
CFA - CO Nodal designate: Mr. Tarun Kumar (GM, BP - CFA)
CM - CO Nodal designate: Mr. B.N. Mishra
(GM, Product & Pricing)
Enterprise - CO Nodal designate: Mr. S. K. Seth
(GM, Business Planning)
New Businesses - CO Nodal designate: Mr. R. P. Nigam (Sr.GM, TF - NB)
HR - CO Nodal designate: Mr. Neeraj Verma (GM, Training)
Finance - CO Nodal designate: Mr. K. R. Tiwari (GM, Transfer Pricing, Revenue Assurance & Finance Personnel)
Note: i) Assessment by CMD and all directors of the BSNL board will be based on qualitative measures defined for the parameters
16
Group Performance Management System (GPMS) scorecard
SSA
Group
Group
level
S. No.
weighta
ge
Dimension
KPI
Target
Weight
Marks
Weighta
Target Performance Levels1 Achieve
ed
Achieved
ge
d
Score
Good
Consumer
Fixed
Access
Consumer
Mobility
25%
30%
1
Financial
CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.)
20%
2
Financial
CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.)
20%
3
Customer / Market
Net adds - (by number of subscribers) Basic (in 000's)
5%
4
Customer / Market
Net adds - (by number of subscribers) Broadband
10%
5
Customer / Market
6
7
Operations
Productivity of Sales Associates of SSA in number of connections/Active SA per
month
CCR rate for Landline local
2.5%
Operations
CCR rate for Landline STD
2.5%
8
Operations
Fault rate LL
2.5%
2.5%
Very Excelle
Good
nt
5%
9
Operations
Fault rate BB
10
Operations
% of faults cleared by next working day LL
5%
11
Operations
% of faults cleared by next working day BB
5%
12
13
Operations
Operations
% of new services (LL, BB) provisioned within the norm (7 days for LL, 7days for BB)
Timely implementation of CDR project (actual vs. planned)
10%
5%
14
Operations
Overall performance (on scale of 1 to 5 - to be assessed by Circle Head)
5%
15
Financial
CM revenue (Rs. Cr.)
40%
16
Customer / Market
CM Net adds - GSM (by number of subscribers) (in 000's)
15%
17
Customer / Market
CM Net adds - CDMA (by number of subscribers) (in 000's)
5%
18
Customer / Market
5%
19
Customer / Market
20
Customer / Market
21
Operations
CM Net adds - Wi-Max (by number of subscribers) (in 000's)
% of Non BSNL Retailers converted in to BSNL Retailers vis-à-vis number of
retailers serveyed in SSA.
True reflection of secondary sale of SIMs in sanchar soft ,for SIM selling and
recharge selling retailers.
BTS availability (%)
20%
22
Operations
Overall performance (on scale of 1 to 5 - to be assessed by Circle Head)
5%
5%
5%
17
Group Performance Management System (GPMS) scorecard
SSA
23
Enterprise BU revenue (Rs. Cr.)
40%
Number of new Enterprise Gold accounts penetrated
20%
25
Financial
Customer /
Market
Operations
MLLN / MPLS network uptime (%)
15%
26
Operations
Average provisioning time (no. of days)
15%
27
Operations
Overall performance (on scale of 1 to 5 - to be assessed by Circle Head)
10%
28
Financial
New Businesses revenue (Rs. Cr.)
20%
29
Financial
Budget adherence on opex (% actual spend vs. budgeted) (on items excluding those in
schedule P)
15%
30
Financial
Overall assessment on Finance related issues, including budget adherence, financial
planning, accounting, revenue assurance etc. (on scale of 1 to 5 - to be assessed by
Circle Head)
20%
31
Customer /
Market
Customer satisfaction level (including QoS) (Scale of 1 to 5)
20%
32
Performance
mangement
%Implementation of Field Performance Management system on time
10%
33
Employee
development
Overall assessment on HR related issues, including training, recruiting, promotion,
transfers etc. (on scale of 1 to 5 - to be assessed by Circle Head)
15%
34
Overall
assessment
Overall performance (on scale of 1 to 5 - to be assessed by Circle Head)
100%
24
Enterprise
Other
15%
20%
Overall
10%
performance
1. Marks for Good rating = 60, Very Good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very Good and between Very Good and Excellent would
be linearly scaled
Note: Targets would be set by nodal designate at circle office under the guidance of respective functional heads and the CGM. The nodal designates at SSAs are required to coordinate with the respective circle
office nodal designates
for any clarifications/further alignment as per the direction of SSA head.
18
Explanation of target and performance level for a positive
parameter - Revenue
Marks achieved for revenue of a group between 0 and 400 Cr.
100 marks
Marks achieved
100 marks
80 marks
100
60 marks
80
60
40
0 marks
20
0
0
50
100
150
200
250
300
350
400
Revenue (Rs. Cr.)
Illustration of defining performance levels
Target
300
Performance levels
Illustration of marks vis-à-vis achievement
Target Achieved
60
80
100
100
150
300
50
100
140
200
300
350
Marks Achieved
0
60
76
86.7
100
100
19
Explanation of target and performance level for a negative
parameter – Average restoration time
Marks achieved for average restoration time of a group
between 8 and 16 hrs
100 marks
Marks achieved
80 marks
100
60 marks
80
100 marks
60
40
0 marks
20
0
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Average restoration time (hrs)
Illustration of defining performance levels
Target
Performance levels
60
8
16
80
12
Illustration of marks vis-à-vis achievement
Target Achieved
100
8
20
16
14
12
8
6
Marks Achieved
0
60
70
80
100
100
20
Organisation redesign
LINKAGES TO PMS
GPMS is presently proposed to be linked to PRP, PLI
Non – Financial Awards- Trophies, Certificates in FPMS
Important to link PMS to
Transfers
Promotions
Training / Travel opportunities
Performance management system can be a key HR tool
Financial incentives
• Bonus scheme
• Variable compensation
• Other benefits
Career management
• Promotion policy
• Transfers
Non-financial rewards
Performance Management
System
• Top-performer program
• Material rewards / perks
• Training / travel
opportunities
Recognition
• Feedback
• Formal recognition in
company / other forums
Source: BCG analysis
21
Linkage of GPMS to PRP
 DPE Guidelines
 How can PRP be worked out?
22
Organisation redesign
GPMS could potentially be the basis for PRP
Incentive payout pool available will be based on the company's financial performance
DPE guidelines for PRP (Performance Related Pay)
Contributes to
60% of payout
pool
A
Profit before Tax
(PBT) for
current year
X
3%
Total payout pool
available
+
B
Incremental PBT
(Current –
Previous)
(cannot exceed 5% of
current year PBT)
X 10%
Contributes to
40% of payout
pool (ceiling
2% PBT)
1. Ceiling of 2% of current year PBT
Source: Department of Public Enterprise (DPE) guidelines
23
Organisation redesign
Individual payout to be based on a combination of factors
PRP calculations
A PRP from current year profit
1
2
PRP
split
Base
Salary
(Rs.)
Total
4
MoU
rating1
Performance
rating
5
Base
salary of
the
individual
X
Company
MoU
rating
X
Individu
al's
Perform
ance
rating
40%
Based on
DPE
guidelines
6
Prorating
factor
Grade
level
60%
X
B PRP from incremental profit
3
X
PRP
ceiling for
each
grade
level as
per DPE
guidelines
X
Scaling
factor
based
on
available
payout
pool2
Payout
(Rs.)
To be
calculated
from
current
and
previous
year PBT
Based on
GPMS
scorecard
rating
1. PRP eligibility based on MoU rating as per DPE guidelines: Excellent (100%), Very Good (80%), Good (60%), Fair (40%), Poor (0%). 2. Example: if available payout pool is Rs. 30 Cr. and total
possible payout is Rs. 40 Cr., pro-rating factor is 30/40 = 0.75
Source: Department of Public Enterprise (DPE) guidelines
24
Organisation redesign
Groups within a category will have a 'bell-curve' distribution
based on performance
Distribution of Groups based on performance
Group category
Total no.
of units
Excellent
(15%)
V. Good
(20%)
Good
(25%)
Fair
(30%)
Below
Par
(10%)
Corporate Office
7
1
1
2
2
1
Territorial Circles
26
4
5
6
8
3
Non territorial circles
21
3
4
5
7
2
SSA
330
50
66
82
99
33
Total
384
58
76
95
116
39
25
Organisation redesign
Performance rating and distribution of employees across
ratings feeds into incentive payout calculations
% employees falling under different ratings
(bell curve distribution1 )
Rating
% employees
PRP eligibility for different ratings
Rating based on
scorecard assessment
PRP eligibility
Excellent
15%
Excellent
100%
Very Good
20%
Very Good
75%
Good
25%
Good
50%
Fair
30%
Fair
25%
Below Par
10%
Below Par
0%
4
Bell curve will be applied at the group
level for Corporate Office, Territorial
circles, Non-territorial circles, SSAs
1. DPE guidelines recommend following a "Bell curve approach"
Source: Department of Public Enterprise (DPE) guidelines
26
Organisation redesign
Example - Representative numbers only
Individual payout to be based on a combination of factors
Includes company rating, individual performance rating, grade level and payout pool available
Current year PBT = 2000 cr., Previous year PBT = 1500 cr.
1
2
3
4
PRP calculations
PRP
split
Base
Salary
(Rs.)
MoU
rating
Performance
rating1
Grade
level
PRP from current year profit
60%
5L
Fair
(40%)
Good
(50%)
PRP from incremental profit
40%
5L
Fair
(40%)
Good
(50%)
Total
Based on
DPE
guidelines
5
6
Prorating
factor
Payout
(Rs.)
E-5
(50%)
0.90
27k
E-5
(50%)
0.90
18k
45k
1. Individual performance rating to be initially based on Group Performance rating
27
FPMS
 FIELD PERFORMANCE MANAGEMENT SYSTEM
28
B
Objectives for Field-level Performance Management System
•
KPI based mechanism for measuring & rewarding performance at the
field level
• 5 critical job families to start with
• Consumer Mobility sales (retailer managers)
• Consumer Fixed Access sales (sales associate)
• CSC
• Exchanges (PSTN & Broadband) – internal & external plant
• SSA level consumer mobility ops team
• Additional job families will be added over time
• FPMS already launched
29
B
Combination of individual and group based approach
Job family / Group
1
Sales – Consumer Mobility
(Retailer Manager)
2
Sales – Consumer Fixed
Access
3
Customer Service Centre
4
Fixed Line & Broadband –
Exchange
Coverage at Group
level / Individual level
Organization coverage
Performance to be
recognized at individual
level
Sales roles
Customer centric role
Performance to be
recognized at Group level
Operational roles
5
SSA – Consumer Mobility
Team
Key Performance Indicators have been defined for
measuring performance of Job families / Groups
30
Group based Awards in FPMS
1. For exchanges and CSCs, topper group one each in each category of exchange
and CSC would be awarded in all SSAs. (Swarna CSC and Swarna Exchange in
each category)
2. For consumer mobility operations teams, top 3 groups would be awarded in
every circle.
3. The scheme for exchanges and CSCs would be driven at the SSA level and for
the consumer mobility operations teams at the Circle level. The final decision
on awards at SSA level should be made by the SSA Head after taking into
account the KPI scores of all Exchanges and CSCs in the SSA.
4. The final decision on awards at the Circle level should be made by the PGM/GM
(Consumer Mobility) after taking into the account the KPI scores of all SSAlevel Consumer Mobility Operations teams in the Circle.
5. The PMS team at the corporate office would be responsible for the overall
coordination
31
Proposed Awards for CSCs
Name of
award
Swarna
CSC
(One in
each
Category)
Level
Within
SSA
Type of
Category
Frequency
Quarterly
Type-I,II,and
III
Award for
Award for
individuals
group
in group
Certificat Certificate
e of Merit,
with
Rolling
Trophy
Basis for decision
Highest score on
KPIs for CSCs
32
Proposed Awards for Circle-level Consumer Mobility
Operations teams
Award for
group
Award for
individuals in
group
Name of
award
Level
Frequency
Swarna
padak
Within
Circle
Quarterly
Certificate of
Merit ,with
Rolling Trophy
Certificate
Highest score on KPIs
for CM teams
Rajat
padak
Within
Circle
Quarterly
Certificate of
Merit ,with
Rolling Trophy
Certificate
2nd Highest score on
KPIs for CM teams
Kansya
padak
Within
Circle
Quarterly
Certificate of
Merit ,with
Rolling Trophy
Certificate
3rd Highest score on
KPIs for CM teams
Basis for decision
33
Proposed Awards for Exchanges
Name of
award
Level
Swarna
Within
exchange( SSA
One in
each
Category
Type of
Category
Frequency
Quarterly
Cat-A,B,C,D
Award for
group
Award for
individuals
in group
Certificate Certificate
of Merit,
with
Rolling
Trophy
Basis for decision
Highest score on
KPIs for exchanges
34
Customer Service Centres (CSCs)
Field Performance Management System (FPMS) scorecard
Customer Service Centres
Targets and Scores
Key Performance Indicators
Key Performance Indicators (KPI)
SubWeighting Weighting
factor
factor
Efficiency of bill collection
1. Number of bills collected per day / Number of cash counters in
the CSC
25%
Sales leads generated per employee3
2. Number of sales leads generated / Number of employees in a
CSC
15%
Waiting time of customers in the queue
3. Waiting time in queue during the pay by due dates (based on
survey feed back)
Efficiency of Survey
4. % of survey form collected to total number of bills collected.
20%
Customer feedback on qualitative aspects
30%
5. Average of rating given on a scale of 1 to 5 by customers.
Customer survey to include factors including (but not limited to):
i.
Responsiveness of staff to customer requests – change of
address, change of plans, disconnection, etc.
ii.
Knowledge of the people in the CSC about products and
plans
iii. Availability of tariff plans and information brochures in the
CSC
iv. Availability of products in the CSC
v. Behavior and attitude of the staff
vi. Cleanliness of the centre
Total
Target
302
Performance
Fair
Good
xxx
xxx
levels1
Targets
achieved
Marks
achieved
xxx
xxx
Weighted
score
Excellent
xxx
xxx
152
< 5 min.
10%
5%
5%
5%
5%
5%
5%
100%
1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled
2. Representative numbers only – targets to be fixed
3. For CSCs where lead generation is not feasible , 25% weightage will be divided as 10 %, 10 % and 5% amongst KPI 1,3 and 4 respectively.
35
Field Performance Management System (FPMS) scorecard
( Exchanges)
Key Performance Indicators (KPI)
Weighting
factor
Time to provision new service
1. % of new services (Land Line) provisioned within the norm (7 days for new LL)
5%
2. % of new services (LL, BB) provisioned within the norm (7 days for BB where
10%
LL exists, 15 days for new LL + BB)
Fault rate (%)
5%
3 Number of faults per 100 active connections (LL)(in %)
4 Number of faults per 100 active connections (BB)(in %)
10%
Repeat fault rate (on same number) within 30 days
5. Number of faults on a number which has been repaired once (in the last 30
10%
days) per 100 active connections- Land Line
6. Number of faults on a number which has been repaired once (in the last 30
10%
days) per 100 active connections- Broad band
Fault clearance turn-around time
10%
7. % of faults cleared within 24 hours(Land Line)
10%
8. % of faults cleared within 24 hours (Broad band)
Time taken to service/execute requests
9. % requests for local shift of LL executed within 3 days
2%
10. % requests for local shift of BB executed within 3 days
3%
11. % requests for inter-exchange shift of LL executed within 5 days
2%
12. % requests for inter-exchange shift of BB executed within 5 days
3%
13 % requests for termination of connection executed within 7 days (LL)
2%
14. % requests for termination of connection executed within 7 days (BB)
3%
Management of co-located BTSs
15. BTS availability (%)
10%
16. Number of faults/interruptions per BTS due to passive infrastructure failures in a 10%
month (Average fault rate over a quarter/year will be taken)
Total
100%
Target
Performance
Fair
Good
xxx
xxx
levels1
Targets Marks Weighted
score
achieved achieved
Excellent
xxx
xxx
xxx
xxx
1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled
Note: The data for the above will be obtained from MIS reports generated in DotSoft, other softwares installed in SSAs;
36
SSA Consumer Mobility Operations Team
Field Performance Management System (FPMS) scorecard
SSA consumer mobility operations team
Key Performance Indicators
Key Performance Indicators (KPI)
BTS availability
1.
BTS availability (%) - for sites where responsibility is with SSA CM
team
2.
BTS availability (%) - for sites where responsibility is with
respective CFA teams at exchanges
Fault rate
3.
Number of faults per BTS due to passive infrastructure failures in
a month (Average fault rate over a quarter/year will be taken) – for
sites where responsibility is with SSA CM team
Fault clearance turn-around time
4.
% of faults cleared in 6 hours – for sites where responsibility is
with SSA CM team
BTS upkeep
5.
Subjective assessment given by GM CMTS (O & M) at circle
based on (but not limited to): (1) Earthing at BTS site (2)
Installation and upkeep of lightning arrestor (3) Proper functioning
of aviation light (4) Proper working of "tower up" beep (5) RF
cable safety (6) Cleanliness of site
Total
Targets and Scores
Weighting
factor
35%
Target
Performance levels1
Fair
Good
xxx
xxx
Targets
achieved
Marks
achieved
xxx
xxx
Weighted
score
Excellent
xxx
xxx
15%
30%
10%
10%
100%
1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled
Note: The data for the above will be obtained from MIS reports generated in DotSoft, other softwares installed in SSAs
37
2
Individual based incentives in FPMS-Illustrative Key
Performance Indicators for sales roles in Consumer Fixed
Access
1. Sales achieved for Landline
2. Sales achieved for Broadband
3. Number of connections recovered
4. Sales achieved for EVDO or 3G cards or FWTs
38
1
Illustrative Key Performance Indicators for sales roles in
Consumer Mobility
1. Sum of SIMs sold by franchisee whose area is being surveyed by the Retailer
Manager
2. Sum of recharge value sold by franchisee whose area is being surveyed by the
Retailer Manager
3. Number of retailers visited by the retailer manager
39
Individual PMS (IPMS)
 Being targeted for DGM level officers and above
 Gradually, the system to be expanded to other levels
 Requires complete IT support to handle PMS of this size
 PMS module being planned in ERP system
 Finally, an individual’s performance to be combination of GPMS and
IPMS
40
End of Presentation
41