CNI人力资源精品之战略规划中的绩效考核CORPORATE PERFORMANCE MEASUREMENT IN STRATEGIC CORPORATE PLANNING.ppt

CORPORATE PERFORMANCE MEASUREMENT IN STRATEGIC CORPORATE PLANNINGCase Study,Concepts and Debatable IdeasKenny OngCNI Holdings Berhad,www.myCNI.com.my,www.OOBEY.com,Intro:CNI,19 years oldCore Business:MLMOthers:Contract Manufacturing,Export/Trading,eCommerceMalaysia,Singapore,Brunei,Indonesia,India,China,Hong Kong,Philippines,Italy,TaiwanStaff force:500Distributors:200,000Products:Consumer Goods and Services,www.myCNI.com.my,www.OOBEY.com,1.Why we hate Performance Appraisals,www.myCNI.com.my,www.OOBEY.com,As an Appraisee,As an Appraisor,Complaints about Performance Appraisals,Mgmt/HR,www.myCNI.com.my,www.OOBEY.com,As an Appraisee,Complaints about Performance Appraisals,BiasDifferent StandardsSurpriseSubjectiveNo linkage*No differentiationSecretiveNo follow upNo control,www.myCNI.com.my,www.OOBEY.com,As an Appraiser,Complaints about Performance Appraisals,Cannot rememberTediousSubjectiveRight targetsScoring Competencies*Defensive staffNo$to differentiatePrejudicesResults or Activities,www.myCNI.com.my,www.OOBEY.com,Complaints about Performance Appraisals,Flexible or Control?MBO or Character?Best Practice or Fit Culture?Backward or Forward?Quarterly Results or Long-term?No$to differentiate*Perfect System,Bad performanceRecency and Halo effectsUntrained Appraisers,Mgmt/HR,www.myCNI.com.my,www.OOBEY.com,Complaints about Performance Appraisals-Summary,Process problemForm problemPeople problem,www.myCNI.com.my,www.OOBEY.com,What is Performance Appraisal used for?,Reward?,Discipline?,Development?,Motivation?,Promotion?,Monitor?,www.myCNI.com.my,www.OOBEY.com,Performance Management,Performance Appraisal,Performance Development,Performance Measurement,Common terms and definitions,www.myCNI.com.my,www.OOBEY.com,What is the OBJECTIVE?,What is the ultimate objective of a Performance Management System?Performance achievement,Management controllable,improvementSystem predictable outcome,autorunSummary?A Predictable process to Improve Controllable Achievements,www.myCNI.com.my,www.OOBEY.com,What is the OBJECTIVE?,Succession Planning(Business Continuity),Talent Management,Differentiation,Performance Management System,Budgeting+Planning,KPIs,BSC,Business Model,www.myCNI.com.my,www.OOBEY.com,What is the OBJECTIVE?,Succession Planning(Business Continuity),Talent Management,Differentiation,Performance Management System,Budgeting+Planning,KPIs,BSC,Business Model,Business Plan Implementation,Talent Management,www.myCNI.com.my,www.OOBEY.com,1.Why we hate Performance Management Systems,Focus on the Business Strategy and Business Direction first,www.myCNI.com.my,www.OOBEY.com,“in the past 18 months,we have heard that profit is more important than revenue,quality is more important that profit,people are more important than profit,customers are more important than our people,big customers are more important than small customers,and that growth is the key to our success.No wonder our performance is inconsistent,CEO,Anonymous,www.myCNI.com.my,www.OOBEY.com,Before we start,In the old days of HRAverage training hours per staff%of staff attending training#of training programs%of training programs conductedTraining needs analysis conductedCompetency models developedTraining budget as%of payroll,Whats wrong with this picture?,www.myCNI.com.my,www.OOBEY.com,Before we start,Moral of the storyInnovation:Business modelsProductsServices Market LeadershipCompetitive differentiation,Get the picture?,www.myCNI.com.my,www.OOBEY.com,“What is the moral of the story?”,www.myCNI.com.my,www.OOBEY.com,What is the Business Model?,USP,Market Discipline,Profit Model,www.myCNI.com.my,www.OOBEY.com,Intro:Market Discipline,Mamak stall,www.myCNI.com.my,www.OOBEY.com,Intro:Market Discipline,They are the most innovativeConstantly renewing and creativeAlways on the leading edge,A great deal!Excellent/attractive priceMinimal acquisition cost and hassleLowest overall cost of ownershipA no-hassles firmConvenience and speedReliable product and service,Exactly what I needCustomized productsPersonalized communicationsTheyre very responsivePreferential service and flexibilityRecommends what I needIm very loyal to themHelps us to be a success,Product Leadership,OperationalExcellence,CustomerIntimacy,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational ExcellenceCompetitive priceError free,reliableFast(on demand)SimpleResponsiveConsistent information for allTransactionalOnce and Done,Customer IntimacyManagement by FactEasy to do business withHave it your way(customization)Market segments of oneProactive,flexibleRelationship and consultative sellingCross selling,Product LeadershipNew,state of the art products or servicesRisk takersMeet volatile customer needsFast concept-to-counterNever satisfied-obsolete own and competitors productsLearning organization,Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,The McPlaybook*,Make it easy to eat50%drive-thruMeals held in one hand,Make it easy to prepareHigh TurnoverTasks simple to learn&repeat,Make it quick“Fast Food”Tests new products for Cooking Times,Make what customers wantProwls market for new productsMonitored field tests,*Adapted from:Businessweek,Februrary 5th 2007,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Business Situation vs.Performance Mgmt Focus,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,Change mgmtReduce FatContinuityEveryone Happy,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Talent MgmtInnovation/R&DEarly winsSlow Down HR Costs,Top Talent focusSales,Sales,SalesIncrease attrition,www.myCNI.com.my,www.OOBEY.com,Revenue Growth,Base Retention,Share Gain,Positioning,Adjacent Market,New Business,Operational Excellence,Product Leadership,Customer Intimacy,Competencies,Information Systems,Motivation,empowerment,alignment,Financial,Learning&Growth,Internal Process,Customers,Investment Strategy,Productivity,Market Value,Focus:Corporate Alignment,www.myCNI.com.my,www.OOBEY.com,Financial,Learning&Growth,Internal Process,Customers/Distributors,Focus:Corporate Alignment,www.myCNI.com.my,www.OOBEY.com,Financial,Learning&Growth,Internal Process,Customers/Distributors,Focus:Corporate Alignment,Profit after Tax.Revenue.Cash-to-cash cycle.Operating cash flow,Customer Complaints.Customer Acquisition Rate.Product Availability.Product Quality&Service.Renewal Annual Subscription.Distributor Rank Achievement.No.of Active Distributor.No.DC/Regional Sales.Distributor with commission,Customer Database Availability.Accuracy of Forecast Planning.Continuous Improvement.Response Time to Customer Needs.Perfect Order Fulfillment.Inventory Turnover.Number of Effective Sponsoring Program.On Time Delivery.No.of Effective Training.Number of Effective A&P,%of staff evaluated on Core Competency Framework.%of staff with Career Development Plans.No.of training hours completed per staff.%of staff with access to strategic information.Q12 Index.%staff evaluated on Culture alignment,www.myCNI.com.my,www.OOBEY.com,1.Why we hate Performance Management Systems,Implementing the Right System,www.myCNI.com.my,www.OOBEY.com,What is Performance Measurement used for?,Reward?,Discipline?,Development?,Motivation?,Promotion?,Monitor?,www.myCNI.com.my,www.OOBEY.com,Behavior-based,Knowledge/Skill based,Results-based,Trait-based,Which system should we use?,Managing Performance=Managing ExpectationsWhats YOUR expectation?,Activity based,www.myCNI.com.my,www.OOBEY.com,Dangers of Best Practice and Benchmarking,“Abraham Walds Work on Aircraft Survivability”,M.Mangel and F.J.Samaniego,Where would you focus reinforcement?,www.myCNI.com.my,www.OOBEY.com,Dangers of Best Practice and Benchmarking,www.myCNI.com.my,www.OOBEY.com,Company Performance,high,low,Best Practice theories,low,high,zero Performance,“Selection Bias and the Perils of Benchmarking”,Jerker Denrell,Harvard Business Review 2005,Dangers of Best Practice and Benchmarking,www.myCNI.com.my,www.OOBEY.com,Company Performance,high,low,Best Practice theories,low,high,zero Performance,“Selection Bias and the Perils of Benchmarking”,Jerker Denrell,Harvard Business Review 2005,Dangers of Best Practice and Benchmarking,Selection Bias:Success Traits=Failure TraitsSuccessful Cases+Failure CasesWorst effects in Old industriesOvervalue best practice theoriesCurrent accomplishments unfairly magnified by past achievementsReverse Causal,Dangers of Best Practice and Benchmarking,Also known as Beware of Consultants:Selection BiasBig vs.Small companySelective success storiesCorrelation vs.CausalSurvey problemsPractical vs.Glamour-to-haveLeaders who benchmark,www.myCNI.com.my,www.OOBEY.com,Survey Problems,“In business after business,60%to 80%of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”,HBR March/April 1996,www.myCNI.com.my,www.OOBEY.com,Why BSC?,Reason 1:BalancedReason 2:Cause-and-Effect,www.myCNI.com.my,www.OOBEY.com,Financial“To satisfy our stakeholders,what Financial objectives must we accomplish?”,BSC:Balanced&Cause-and-Effect,www.myCNI.com.my,www.OOBEY.com,Performance Management for Change,Review Performance&Results,2.Performance Planning,MBO,KPIs,Competencies,www.myCNI.com.my,www.OOBEY.com,District Engineer,TNB,Duties and Responsibilities,If stated as Accountabilities then the job must produce:,Control,operate and maintain the District Distribution System,Ensure uninterrupted supply to consumers in the district by operating the District Distribution System.,Manage major supply projects to customers in the district.,Ensure satisfaction of the major customers in the district by managing supply and Distribution.,Supervise all technical staff in the district.,Ensure high performance and Productivity of technical staff by adopting proper human resource management methods on selection,training,coaching,counselling and motivation.,Plan and design the High voltage system,Ensure availability of adequate supply for future needs of industries in the district by planning and designing the High voltage System,MBO Standards,www.myCNI.com.my,www.OOBEY.com,MBO Standards,www.myCNI.com.my,www.OOBEY.com,MBO Standards,www.myCNI.com.my,www.OOBEY.com,MBO Standards,www.myCNI.com.my,www.OOBEY.com,MBO Target Setting-Objectives and Measures,SMART TargetsSpecific(definite objective and purpose to be achieved)Measurable(by definite observation and a certain time one should be able to tell whether or not it is attained)Achievable(Must be within reach of the employees,e.g.to meet stated deadlines,neither too high nor too low)Rewarding(Rewarding means it must be satisfying to you,no one else)Time phased(per quarter,per year.By end of fiscal year,by 15th of November),www.myCNI.com.my,www.OOBEY.com,MBO Target Setting-Objectives and Measures,www.myCNI.com.my,www.OOBEY.com,Sample KPIs for Each Discipline,Operational ExcellencePriceSelectionConvenienceZero DefectsGrowth,Customer IntimacyCustomer KnowledgeSolutions OfferedPenetrationCustomer DataCustomer-success focus,Product LeadershipMarketingFunctionality#of Successes#of FailuresLearn from key usersInterdisciplinary teamsPipeline,www.myCNI.com.my,www.OOBEY.com,Operational ExcellenceMove know-how from top performing units to othersBenchmark against best in classEnsure operations training for all employeesUse disciplines like TQM for continuous learning to reduce costs and improve quality,Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Strategy:Value Disciplines,Customer IntimacyCapture knowledge about customersUnderstand customer needsEmpower front line employeesEnsure that everyone knows the customerMake company knowledge available to customers,www.myCNI.com.my,www.OOBEY.com,Product LeadershipReduce time to marketCommercialize new products fastEnsure that ideas flowReuse what other parts of the company have already learnedEnsure there are multiple sources of funding,Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Lagging and Leading KPIs,Historical,Outcome,Results,1st Level,Usually Financial or tangible,Quarterly and Annually,Current,Indicators,Drivers,2nd Level onwards,usually non-financial or intangible,Weekly,Monthly and Quarterly,www.myCNI.com.my,www.OOBEY.com,Developing Driver KPIs,www.myCNI.com.my,www.OOBEY.com,What is the Objective?,Do-or-Die KPIs for CNIRevenueARPUSponsoringRetentionCommission Plan(BDP)ProductCorporate Image,www.myCNI.com.my,www.OOBEY.com,MBO Sources of KRAs and KPIs,Targets,Department Scorecard E3,Employees Job Description,Department SOP,Department Quality Objectives,Corrective Action Requests(CAR),Preventive Action Requests(PAR),or Special Projects relevant to the employee.,www.myCNI.com.my,www.OOBEY.com,E3 Department BSC,Financial Perspective,www.myCNI.com.my,www.OOBEY.com,Individual Performance,www.myCNI.com.my,www.OOBEY.com,Competency Target Setting,InitiativeTeamworkProblem SolvingLeadershipIntegrity,Whats the problem here?,www.myCNI.com.my,www.OOBEY.com,Competency Target Setting,InitiativeMinimize problems quickly without needing to be askedSeeks personal growth and professional self-developmentDoing more than is required/expected in a jobSeeks new and improved solutions and approaches to completing assignments Looks for opportunities to help others and team,www.myCNI.com.my,www.OOBEY.com,Competency Standards,www.myCNI.com.my,www.OOBEY.com,Performance Setting&Review Schedule,Step One-August,Senior Management Facilitate BOD Strategic Planning process by studying&producing appropriate papers from BOD Macro economic data and observations Emerging business conditions CNIs strategic considerations/needs,Step Two-August,BOD consideration&consensus on:Macro economic informationEmerging business conditionsSWOTStrategic NeedsBroad business goals&operating philosophy,Sr.Mgmt Strategic Planning ProcessStudy BOD observations and directions&review:Corporate vision/missionChange dimensionsStrategic initiativesCorporate key results,Step Three September-October,Sr.Management Annual Management Plan for Board of Directors Approval,Step Five-November,Approved Annual Management Plan for execution,Step Six-December,Senior managers performance plans,objectives and standardsPerformance vs.plans for top management review,Quarterly performance review reports of the Board of Directors,Step Four-November,Step Seven-January,Review annually performance plans vs.results,3.The Managers Role in Performance Management,Appraisal,Evaluation,Communi