Wednesday, August 18, 2010

Performance Management

The Performance Management tool manages and administers the complete performance management or evaluation process, facilitates the dialogue between employee and manager, and creates total transparency of the process for all parties involved (employee, hierarchical manager, functional manager, HR department).
Flexibility is a key word in the Performance Management tool. You can easily configure the tool to automate your performance management process. You determine the evaluation cycle, the available document roles, which fields are visible, which actions should be taken, how many objectives should be evaluated and so on.

Set the objectives and follow up

Set up the company, team and/or individual objectives at the beginning of and follow up during the evaluation cycle. You have instant access to the job description and the job related responsibilities as well to determine objectives and targets. Keeping the flexibility of the tool in mind, you can easily configure how the employee and manager should evaluate the objectives.

Define and assess the competences

Depending on how competences are used within your company, the Performance Management tool can be configured to use competence profiles linked to the job, competence profiles linked to a role (e.g. management), or an individual competence profile which is created by the employee and/or manager. Based on the rating and the required level of the competences, the application will calculate the competence gap which can be taken into account for the personal development plan to start working on the development of the employee.

Develop the objectives

Performance Management does not only include setting and evaluating objectives, but it also includes working on the development of them. The personal development plan offers a platform to create SMART development objectives and define and manage actions to help your employees reach a higher level of performance.

CSR Management

CSR(Corporate Social Responsibility) Management

For a more systematic approach to CSR, which is fast taking root as a global standard in business, LG Electronics has established Corporate Social Responsibility Committee (CSR Committee) as top decision-making body. The quarterly CSR Committee consists of CEO as chairman, each president of company/region, and C-Level executives. The CSR Committee is responsible for approving corporate CSR strategy and policy such as joining the UN Global Compact and operates sub committees including Jeong-do management and supply chain sustainability.
The Global CSR Council and HQ CSR Group are implementation body to carry out strategic tasks, which are decided by CSR Committee. The Global CSR Council consists of managers in headquarter and each company/region to discuss and perform corporate-wide tasks including corporate strategy, human resources, labor-management, environment & safety, social contribution, ethics, fair trade, corporate communication, and IR. The HQ CSR Group is responsible for promoting in-house understanding of the importance of CSR activities, coordinating and supporting of tasks, building up networking ties, and publishing sustainability report, among its responsibilities.
Based on these CSR governance, LG Electronics has been focusing on formulating CSR strategies and the implementation of roadmaps, strengthening stakeholder communication, integrating the management of CSR risks and performance evaluation, building up internal competencies, and linking CSR activities with brand management and marketing. LG Electronics will make every effort to carry out corporate-wide CSR activities as well as reflect multiple stakeholders’ opinion into business.

< LG Electronics’ CSR Management >
 

Coaching and Performance Management

Effective coaching relationships between team members and leaders can improve the performance of human resources within the organization. 

When Performance Management replaced Performance Evaluation in Organizations, it was going to give leadership a different definition and much more credibility and accountability to all members of a team. Instead of having little control over personal development within the organization, leaders and team members could begin to create relationships that would develop a workforce with skills needed to compete in a globalizing world. Because this approach looks towards the future rather than the past as the Performance Evaluation does, team members and leaders began to receive constant feedback from relationships, giving everyone a maximum amount of control over their own performance.

The major component of the Performance Management Process is "Coaching." There are three important steps to this process and each step seeks to answer just a few critical questions. By using coaching at every step, the team becomes more aligned with the goals of the organization.

The first step begins at the Organization’s Fiscal Year where objectives are established. The basic questions to answer are:


What are we going to do?

What are our goals for the next fiscal year?

What needs to be developed?


During the year, team members and leaders will have follow-up discussion(s) to provide feedback on their ongoing performance and answer the following questions:

How are we doing?

Are we accomplishing our goals?

What are the areas for improvement?

What else needs to be developed to meet our goals?


These follow-up discussions (The second step of the Performance Management Process) are aimed at improving performances in order to achieve objectives. During these discussions, the leader will coach the team members to help team members develop in areas identified at the beginning of the year (during the first step of the process) or during the actual follow-up discussions.

The third step of the process is a final discussion between the team member and the leader that will be put into writing in answering the questions:

How did we do?

Did we accomplish our goals – where did we come up short?

What should we concentrate on next year?

The success of this approach is dependent on two conditions: the way the leader handles the coaching discussions and the commitment of both the team member and leader to improve and develop skills to meet objectives.

Effective coaching relationships between team members and leaders can improve the performance of human resources within the organization. The outcome is better performing employees producing better results.

So what do the "coaches" consider to be an effective coach? What was their definition of coaching? The one thing we knew for sure (based on years of taking surveys) is that employees need and want effective coaching on a regular basis. This was true in the past and is still the same as we gain a better understanding of coaching in the workplace for Performance Management.

Coaching is a "process" used in developing partnering relationships. I am not debating the fact that shareholders need results, I am simply suggesting that the results achieved as an outcome of an effective coaching relationship is long lasting and much more appealing to team members in today’s organizations. It may even be an important strategy for the challenge in regards to keeping and attracting employees.

Based on the last two decades spent with thousands of leaders at all levels in different organizations, I have often heard the following sentence from team members: "Walk the talk" and "I will commit to doing everything I possibly can to improve my performance."

Still, many leaders experience difficulties with the Coaching approach when this program is first implemented. Their difficulties are often the result of:

Misunderstanding of the coaching approach. Too many leaders and team members still believed that Performance Management was just another name for what had been done in the past (Performance Evaluation). They were convinced this was simply a different stationary form. Therefore, discussions were still done in a top-down method i.e.: Here is what you are not doing well and here is what you will do to improve it. Now, go to it! Not very useful for helping team members and developing partnering relationships…!

Misuse because leaders using coaching concentrated on the end result rather than the process to use to obtain this result. There was little or no relationship development between team members and leaders. Talks often sounded like the ineffective coach in professional sports i.e.: A basketball coach demands to see a higher score on the scoreboard in order to win. When a player asks for feedback on how to do that, the answer is: I don’t care how you do it, just do it! This results in the team members feeling manipulated. They will start to do as little as needed to keep their job. So when a new leader joins this team, the new leader is convinced that the team members were not committed. This brings to mind the term "self serving biases."

Misleading because the word "coaching" has been used in so many ways, many team members believe that it is just another way to get all the juice out of them in order to satisfy the shareholder regardless of the impact it has on human beings and ultimately the organization. Unfortunately, coaching is used to describe many different things, it was hard to be clear about it. Often, the word "coach" and "mentor" are interchanged. Some advocate that coaching is a skill needed by the boss, and others seemed to believe that coaching is a process that should be done by someone else other than the boss. Coaching is a process delivered to a group of employees informally rather than individually. "Coach" is the new title for a leader.

Yet, when leaders regularly use coaching discussions effectively, it becomes very easy to determine what should be going onto the final document for the year. It is also easy to determine what the answers to the questions of the first step for the following year will be. That is true Performance Management!


Performance Evaluation and Measurement

Accountability for performance against strategic objectives, including sustainable performance, requires an understanding of the causal relationships between the various actions that can be taken, and their impact on financial and non-financial performance. Performance evaluation and measurement is typically a feature in most successful organizations. Organizations making a specific business case for a sustainability strategy and objectives will also rely on effective measurement to understand the resulting impact on the organization and society.

The performance evaluation and measurement step follows naturally from the earlier stages of identifying the key sustainability impacts, and setting and monitoring progress against targets. Some organizations might also to decide to reward managers for their ability to hit sustainability targets. This reinforces the need for a carefully considered approach to performance measurement.

Marc Epstein, in his 2008 book, Making Sustainability Work, usefully includes a corporate sustainability model that describes (a) the drivers of corporate sustainability performance, (b) the actions that can be taken to affect that performance, and (c) the potential consequences of those actions. The inputs of the model include the organization's external context (e.g., regulatory), internal context (e.g., mission, policies, strategy, structure, systems), the business context (e.g., industry sector, customers, products), and its human and financial resources. These inputs allow an organization to develop the process needed to deliver outputs (sustainability performance, stakeholder reactions), and outcomes (long-term financial performance). The book details the range of inputs, processes, outputs, and outcomes that a typical organization might deliver.

This is a framework for helping to implement a sustainability strategy, and therefore helps an organization to consider the relationships between key factors for a successful implementation from which effective performance measurement can flow.

Complementary performance measurement frameworks can help organizations to consider the causal relationships between sustainability performance and financial performance. To manage and deploy organizational resources in such a way as to deliver organizational objectives is a vital role of senior finance and management professionals. Many tools, techniques, and frameworks have evolved to assist them in this, such as value-based management, the balanced scorecard, the performance prism, and others. Such frameworks can also be used to help implement social and environmental strategies.

The balanced scorecard has probably been the most popular of the tools designed to improve corporate performance. The report by the Chartered Institute of Management Accountants, Effective Performance Management with the Balanced Scorecard, describes how it has evolved from a widely used performance measurement tool to a broader approach used to facilitate strategy implementation. Its strength is twofold. First, it helps to ensure consistency and alignment between the non-financial and the financial measures (this helps to facilitate the alignment of the measures and strategy - see Caption 25). Second, it helps to identify and measure the specific value drivers that underpin performance. This allows managers to test their hypotheses on what is driving organizational outcomes. Its use to support a sustainability strategy is considered below.

A performance management solution


A performance management solution that enables you to align employee goals with corporate priorities to drive higher performance enterprise-wide



Workscape Performance Manager simplifies the entire performance management process — from goal planning to evaluations — and aligns individual goals with corporate priorities to drive organizational success. Managers can set and track goals and competencies.  Measure performance against targets. And pay for performance as part of your Total Rewards strategy through tight integration with Workscape Compensation Planner™.  Much more than just an employee performance evaluation solution, Performance Manager will help your organization to:

  • Improve manager/employee communication
  • Compress performance review cycles
  • Improve employee performance evaluation quality
  • Maximize the effectiveness of each employee’s contributions
  • Stay focused on corporate priorities
  • Justify compensation payouts — bonuses, merit increases, or both — with a full audit trail



 An intuitive Adobe® Flex®-based interface prompts and guides users through each step of the performance management process. An easy-to-update employee profile puts current goal status, competencies, and more in a single, convenient location. Management dashboards with team and individual views provide at-a-glance insight into group and employee performance status year round. With Performance Manager, employees and managers are engaged in a year-round performance management process that keeps the entire organization on track to hit key targets.

 Easy Tools for Goal Management

Workscape Performance Manager provides a clean, intuitive interface for managers and employees to add, align, and update goal descriptions, obstacles, and progress.





Evaluations Made Simple

Workscape Performance Manager automates the evaluation process and provides managers and employees with a complete view of goal status, weighting, comments, peer reviews, and other supporting information.

Infarmasa Corporation reduces 70% of its paper use and printing costs with electronic document management

The search for improvements for the quality management system at the Infarmasa Corporation, one of Peru's largest pharmaceutical industries, was justified by its need to control the documentation related to the quality management system in terms of emission, revision, distribution, filing and validity. According to Rosario Romaní, BPM/ISO manager at Infarmasa, the company needed to streamline document processing, had excessive costs with paper, and also needed to increase the fluidity of communication on the status of the documentation. "The document management system allowed us to save approximately 70% on paper and printing costs, as well as 5% in terms of the work hours of those people involved with the signing, photocopying and distribution of documents", said Romaní.
The system allowed the Infarmasa Corporation to electronically manage the documentation that supports the ISO 9001 and Good Manufacturing Practice (BPM) quality certificates, approved by the Brazilian Ministry of Health Medication Head Office. "We are satisfied with the implementation of the document management solution, since it allowed us to save paper and the time of the professionals responsible for printing and distributing the some 1,800 documents available in the quality management system", she added. The system allows users to maintain documentation accessible to all people involved with the processes and in compliance with the controls established by the ISO 9001 norm and BPM.
About the Infarmasa Corporation
The Infarmasa Corporation is one of Peru's largest pharmaceutical corporations and offers a wide range of products. It has approximately 600 employees and annual production of 20 million units. The company is in constant growth in the national and international market and is present in countries like Ecuador, Venezuela, Panamá, Chile and the United States.
About SoftExpert
SoftExpert is the leading global provider of software solutions for compliance and business excellence. The company is present in over 25 countries on the five continents, and has a portfolio of more than 1,700 customers. The SoftExpert Excellence Suite (SE Suite) offers a set of multilingual modules that are natively integrated and fully Web-based to automate the processes required to improve and optimize the different business areas at organizations, boosting quality of management, cutting operating costs and facilitating compliance with the main market standards and regulations. SE Suite also complements and optimizes Enterprise Resource Planning systems. The suite is integrated with the main ERP systems on the market through already available connectors, or through customized connectors developed based on the client's specific needs.

SE Performance Performance Management

SE Performance is the solution to manage your business performance practically and effectively.

Based on three managerial levels – strategic, tactical, and operational - SE Performance provides a simple way to gain control over performance indicators from individual business units to the overall corporate management strategy. SE Performance manages the entire performance managerial cycle, based on several key points:

  • Strategic planning
  • Initiative implementation
  • Measurement
  • Controlling achieved progress
  • Detection
  • Defect correction
  • Critical analysis of results for plan revision
SE Performance uses Team Workflow to promote teamwork and keep projects moving. First, e-mails are automatically sent to those responsible for carrying out individual tasks. Next, specific data is requested to make sure the tasks are carried out. If this information is not received, strategy managers are notified, assuring simple and effective control of objectives, priorities, due dates and results.
Comparing objectives to actual results is easy with SE Performance. It generates a variety of performance analysis views and reports, as well as managerial charts. With just one central database, all data and documents are available to team managers for evaluation. And, it goes further, by helping to identify the problems that may be keeping your company from hitting performance targets.