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Privacy Policy for managementperformanceevaluation.blogspot.com

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Performance Management

CT enables you to achieve the goal of successfully implementing performance management, instilling preferred behaviour and rewarding high performance. It is ineffective to change behaviour, one employee at a time.  With performance management methodologies we assist you to effectively increase your employees’ natural ability to motivate themselves, while decreasing the de-motivators in your organisation throughout.

Aligned business goals and focussed employees can result in an increase of more than 70% in efficiency. We endeavour to make performance management a practical and understandable tool for employees on all levels. The behavioural model that CT embeds in performance management follows a five- point approach:

Driving performance management will result in a long term culture change.  CT will support your business in the enabling process to ensure that the performance management process receives the required buy-in and cooperation from employees and management, and will ensure that employees and management have the skills to fully implement the process and make it work.  Support in this process is an active and dynamic communication strategy that will inform all stakeholders of the “what”, “how”, why”, and consequences of supporting the implementation of performance management within your business. 

In addition to our consulting expertise, CT has a web-based performance management system that enables your business to effectively and timeously manage employees’ performance, by providing you with a tool to develop performance agreements that are aligned with business goals, resulting in focused and performance-related development plans for every employee. It also allows for informed decision-making through extensive and detailed reporting.

INTEGRATED PERFORMANCE MANAGEMENT

The PBS dynamic integrated consulting concept recognises that as the world continually changes and evolves, so must the organisation. An organisation at one stage or another will be faced with the challenge of how to attract, retain, motivate and manage the performance of key contributors to the organisation's success. The PBS approach advocates reward structures that reinforce both individual competencies and performances, as well as those of the team and organisation. We design them in such a way that they achieve the correct balance between the shareholder value created by the employee and the rewards given in both the short and longer term.

As the demand for performance continues to ratchet upwards increasing demands are made on the senior management of enterprises to deliver results - the quest for improved performance is never ending. One of the most important opportunities that an organisation has to increase organisational performance is through the way in which it manages its people. The formal process for doing this is called Performance Management. Accordingly, effective performance management systems must become an integral part of routine organisational practice. Emphasizing management process, performance management requires strong management skills and commitment. Its goals are to:

• Translate organisational objectives into individual goals for employees.
• Focus employee behaviour on key actions that will affect organisational results.
• Facilitate the agreement between employees and the organisation on goals and objectives.
• Establish a process for on-going communication and coaching orientated around goals and performance levels.
• Foster a result-orientated dialog between employees and the organisation.
• Promote a climate supporting superior performance.

The relationship between performance management as a management process and other critical organisational levers is illustrated below: 

The corporate litany for the 21st century appears to be:

Companies require capital…
Capital requires investors…
Investors require performance…
Performance requires focused management

Within this litany there is the critical link between investor expectations and senior management and executive pay. Current research indicates that investors are not opposed to high levels of pay when it is tied to equally high levels of performance and hence increases in shareholder value. The process for linking these issues is performance management.

PERFOrMANCE RELATED PAY & COMPETENCE RELATED PAY

The PBS Performance Related Pay (PRP) approach can operate on an individual, team or organisation wide basis. Our advice to clients is, PRP schemes need careful implementation to achieve maximum effectiveness and acceptability.

Our experience in implementing this concept in companies in Africa has shown that the concept of notching (previously held in high regard in many companies in Africa) is rendered immaterial and a non-issue. The notching system assumes that issues of tenure / number of years served as well as qualifications acquired takes precedence over performance issues. The latest thinking in Strategic Human Capital Management regards notching as a traditional and outdated tool that contradicts with the very nature of a Performance Management Culture. At PBS we assist organisations to comprehend that the Competence / Performance Related approach is not just about paying for the acquisition of the competence. It is about the effective use of competence to generate value, the value - added differential concept.

A Performance Management Framework

Performance management is comprised of four major sets of activities:

1. Defining objectives and standards
2. Allocating resources and taking actions to achieve the objectives
3. Analyzing and reporting on results, and
4. Taking necessary corrective actions to mitigate risk and ensure success.

Organizations typically manage their long-term strategic performance independently from their short-term operational performance. A frequent, unintentional, result of this approach is that strategic objectives are not achieved and operational objectives are. This occurs because:

1. Operational objectives are not aligned with the strategic objectives
2. Resource allocation priorities are given to short-term needs
3. Most of management’s time is focused on the urgency of achieving quarterly results, and
4. Short term success masks the risk to achieving strategy

  With the advent of the Balanced Scorecard for strategy management and Lean Six Sigma for process improvement, many organizations are sensing that there is potential for common ground between strategic and operational performance management but are struggling to articulate exactly what that common ground is and how it works.

For example, organizations working on implementing the Balanced Scorecard strive to operationalize the strategy so that employees can see how their day-to-day work activities contribute to achieving the strategy. Similarly, when selecting Lean Six Sigma projects to work on, a frequent question from the project selection committee is, “how does this project align to the strategy?”

 

This article introduces a Performance Management Framework (“Framework”) that provides a common ground for discussing and answering these questions and a foundation upon which a successful performance management program can be established. The Framework’s interface between its strategic and operational aspects will also be discussed.

The Framework Figure 1 below lays out the Framework and shows how it aligns with the Deming improvement cycle of Plan-Do-Check-Act. The Framework also aligns with the four sets of performance management activities identified in the first paragraph of this article. These sets of performance management activities are called phases in the Framework. Shortcomings in implementing various aspects of these phases leads to the strategy achievement failures identified in the second paragraph. 

  Figure 1-The Performance Management Framework
 

Each of the four phases of the Framework have strategic and operational components. These components have the same name in each of their respective phases. The components are called Objectives in the Plan phase, Projects in the Do phase, Reports in the Check phase and Reviews in the Act phase.

Planning is the phase where performance objectives and standards are defined, articulated and communicated to the rest of the organization. Strategic planning is the process of establishing an organization’s long term (typically three to five year) goals and an approach for achieving them. The outcome of the process is a set of strategic objectives and performance standards for evaluating achievement progress. Operations

planning is the process of establishing an organization’s short term (less than three years) goals and an approach for achieving them. The outcome of the process is a set of objectives and performance standards which describe how the organization’s resources will be allocated and utilized in support of the long-term strategy.

The Do phase is where action is taken to achieve the stated objectives at the targeted performance levels. Two examples are a project to implement a new technological capability in support of the strategy and a project to improve on-time delivery performance. Action may also be taken in the form of corrective action when progress is not being made at the desired rate. This is indicated by the feedback loop from the Act phase. An important aspect of the Do phase is the allocation of resources and authorization of expenditures related to the projects selected.

A facet of operations that must be considered within the Do phase is Daily Operations. Daily Operations are what the organization does on a daily basis to meet its business needs; things such as designing, delivering, taking orders and closing the books. These are processes that are executed in support of operational objectives. The performance of these processes is measured, reported on and reviewed. Based on the reviews,  process improvement projects are undertaken, when necessary, to improve process performance.

The Check phase is for measuring results and analyzing performance. Measuring describes what happened and the analysis describes why it happened and makes recommendations for management action. When describing the why, it is important to look not only at the related measures but at other factors such as economic and political situations, supplier and customer
viability, and social and cultural needs and events.

As the name implies, the Act phase is where action is taken by management based on the performance analysis provided in the Check phase. Some of the possible actions that could be taken are authorizing corrective actions to mitigate risk, communicating decisions to the affected groups and individuals, authorizing a change in priorities that will be acted upon in the Do phase, and recommending a change in objectives that will be acted upon in the Plan phase.

The System Interfaces

The description of the four phases above sounds a lot like any other Deming Cycle-based management methodology. The difference with the Performance Management Framework is that it considers the management of performance to be a system with two major components: strategic and operational.

Just like any system, the interface between the strategic and operational components of each phase of the Performance Management Framework is where success or failure is determined. The Framework identifies the practices and methods used to manage the strategic-operational interface within each phase of the Framework.

In the Plan phase, Maps are used to define the relationship between strategic and operational objectives. While there may be local operational objectives that do not necessarily have a  relationship to the strategy, the bulk of the operational objectives should be short-term, local versions of the long-term strategic objectives. Maps, strategic and operational, provide a proven and easy-to-use mechanism for articulating and managing the objectives and their interrelationships and alignment.

In the Do phase, a Portfolio is used to collect, prioritize, select, authorize and manage strategic, operational and process improvement projects. This is perhaps the most difficult interface to develop and manage as most organizations have existing, well-developed, separate practices for managing strategic, operational and process improvement projects. A portfolio approach introduces the concept of viewing all projects together, as a whole, and making selection decisions based on the whole rather than on the three individual groups. This is done within the constraints of budget limits and resource availability as well the management established selection criteria and weighting factors. Having a well-managed portfolio ensures an effective balance between strategic and operational projects while maintaining the desired level of performance in daily operations.

For the Check phase, Scorecards are used to document and report on operational and strategic measures and performance analysis and, in particular, the roll-up relationship between operational and strategic measures. Well-planned scorecards allow a proper focus on strategic and operational performance measures.

Finally, Governance is used in the Act phase to establish policy and provide forums – typically, operational and strategy review meetings - for management risk analysis and decision-making. It is not sufficient to only have a calendar of events for strategic and operational reviews. In addition, a management policy of open and frequent communication between strategy and operational management functions is essential. Governance focused on 2-way open communication of strategic and operational priorities and issues along with an integrated management calendar ensures that a) decisions from the strategy reviews flow effectively to the appropriate operational entity and b) decisions and issues related to strategy from the operations reviews become part of the agenda for the strategic reviews.

Strategy & Performance Management

The implementation of a performance management system that drives focus and transparency is vital to the success of today’s leading organisations.

The primary purpose of performance management is to align individual performance contracts with departmental business plans to achieve the overall company vision, mission and strategies.

The success of your performance management system lies in the ability to equip your employees with the skills and tools to take charge of their work responsibilities, development and future.

The Balanced Scorecard has emerged as a proven and effective tool to capture, describe, and translate organisations strategic goals into meaningful objectives at corporate, divisional, and individual employee levels, thereby allowing for the strategies to be successfully implemented.

Performance Management

Performance management is a strategic tool used to promote an effective organization. It ensures that individual employees’ efforts are focused on the priorities and strategies set out in the corporate and departmental business plans. It directs efforts towards effectiveness and away from merely being busy.

The success of employees depends on a clear performance management process, which recognizes the accomplishments and supports the professional development of Nova Scotia’s public service employees.

There are two distinct, but similar, performance management processes in the Nova Scotia Government: one for MCP employees and one for BU/AS employees.

If you have questions regarding your performance management responsibilities or what type of performance management process you fall under, contact your manager or OD&E Senior Consultant at the Nova Scotia Public Service Commission.

The Performance Management Cycle

Performance Management Resources

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    View Employee Type (BU/AS/MCP)
    Tips & Tricks

Performance Management Responsibilities

Managers ensure that each employee knows what is expected in terms of performance and professional development. They manage towards successful outcomes for both the employee and the organization. Managers are responsible for coaching employees and giving feedback based upon goals set at the beginning of the performance cycle. As well, together, managers and employees review progress periodically throughout the year and formally at the end of the cycle.

Employees are responsible for their own performance, are in charge of their own career development and should take the initiative to be successful. The performance management process helps them do this by linking the business plan with their individual responsibilities and helps them focus on what needs to be done and how it needs to be done.

Sponsored Results for Performance Management

Team Building - 3 Key Areas of Employee Development

What are the three key areas to building and maintaining a High Performing Team!

1) Hire with Precision
2) Maximize Performance
3) Minimize Turnover

But of course the questions are how to do this. After over 40 Years of history and clients like Major League Baseball, National Basketball, National Hockey League, US Olympic teams, Oracle Corp., and well known coaching companies, The Winslow Research Institute can confidently say that they have the solution.

Hiring - In the process of hiring an employee and think if you had a detailed Personality profile assessment that evaluated 24 different areas of their Personal Attitudes, Mental Capabilities and Emotional Reactions, would you think that would be helpful? Now think if you had a profile that had proven to be a success in that particular position and you could overlay the applicants profile with the success profile, would that be helpful? Would you be able to hire accurately if the applicant was compared to over 2,000,000 other assessments? Would it be helpful to know that if the applicant was not congruent with their answers, answered to positively about themselves or did not read on a 10th grade level that the test would be invalid and you would not get a result? So every test you see would be a valid assessment! - You tell me would you be able to hire with Precision? I don't think I have to answer that question for you.

Maximizing Performance - This is actually much easier then most employers think. How do you maximize performance of an employee? You assess their strengths and what positions they would have the greatest ability to succeed in based on their profile. You identify concern areas that would hold them back. When you do a personal assessment you can easily see what areas is cause for concern and coach the employee on those areas. A coach can quickly address areas of Personal Attitudes, then move to emotional reactions. Using Proper Coaching techniques you can see rapid results in areas of concern and thus maximize the employee's performance in their position. A success map can be created based on the individual strength and weaknesses

Minimize Turnover - Again this is not as difficult as most believe when an employee is in a position that is suited to their personal attitudes, emotional reactions and mental capabilities they are much more satisfied in their position. A Satisfied employee is less likely to move to another company that does not take the same considerations into account. When you work with the employee and develop a success map for their career that is based on their individual personality the employee is aware that you have an interest in their success.

Winslow Research Institute has been working with companies for over 40 years to implement employee development programs that are individually developed. This personnel development once implemented has increase profitability from 35-60% and Minimize turnover up to 50%