3. PURPOSE To Develop Employees, Deliver Superior Results and Outclass Competitors. Strategic Performance Management

4. Strategic Performance Management H. R. Management Process PerformanceManagement Recruitment & Retirement RewardManagement Training & Development Career & Succe- ssion Planning

5. F O C U S Performance Planning Competency Profiling Individual’s Development Team Building Creating Leaders Performance Review

6. SPM process consists of - Setting Corporate Objectives & Targets -Improvement Projects / Assignments - Implementation / Action Planning - Execution of Strategic Action Plans

7. Execution of Strategic action plans depends on -Cross Functional and Departmental Processes -Individual Competency Development

8. Performance Planning Process Corporate Objectives & Targets Cross Functional Targets DepartmentalTargets Individual Objectives / Targets

9. Setting Objectives & Targets -Definition -Priority Setting -Standards of Quality -Standards of Quantity -Time Frame

10. Objectives and targets should be: (a)Specific (b)Realistic (c)Measurable (d)Result oriented (e)Quality bound (f)Time bound (g)Attainable with stretch

11. Action Plan for each Objective -Activity (s) Scheduling -Resource (s) Identification -Inter / Intra Departmental Coordination

12. Identification & Level of Competencies Functional Competencies Managerial Competencies

13. PERFORMANCE PLANNING Role of Top Management -Defining & Analysis of corporate / targets for next 3 - 5 years -Identifying key business processes - Cross Functional and Departmental for improvement

14. PERFORMANCE PLANNING -Selecting Key Competencies - Technical, General M anagement and Ethical -Defining role of Individual Performance and Self-Development Role of Top Management

15. PERFORMANCE MANAGEMENT -Assisting top management to form Teams - Cross Functional and Departmental -Conducting Team meetings and progress reviews - Acquisition of Resources Role of Operational Management

16. PERFORMANCE PLANNING Preparing Implementation (action) Plans for selected projects -Cost estimation -Revenue generation target setting -Defining saving targets - costs, time & effort -Performance levels / benchmarking Role of Operational Management

17. Preparing Implementation (action) Plans for selected projects -Time scheduling -Resource allocation / acquisitions -Designing reporting formats for variance analysis -Obtaining concurrence from top management Role of Operational Management

18. Example PERFORMANCE PLANING - 2008 Employee:Syed Imtiaz Hussain (No. _______ ) Please Complete the Appropriate sections: Objective (Ref.):HR - 3 Dept. Responsible:Human Resource Leader:H. R. Manager Team members:One experienced (nominated) person from each department Date:December 2008

19. A.Objective PERFORMANCE PLANING - 2008 In the next 6 months (by Dec. 2008), identify and define key competencies (Managerial and Functional) for each management position, with the level of competence required to fulfill the job requirements, so that competency assessment and gap analysis can be conducted during first half of 2008. B.Priority Assigned (tick only one) 3 4 21 3 = High 2 = Medium 1 = Low

20. C.Schedule of Major Activities PERFORMANCE PLANING - 2008 Activities 1.Identify / List Managerial Competencies (MC) for the Company Incharge Completion Date Imtiaz Hussain (H. R.) 30th Sept. 2008 2.Identify Functional Competencies (FC) for each Job with Levels Department Team Member 30th Sept. 2008 3.Define Level of MCs for each job Department Team Member 30th Oct. 2008

21. C.Schedule of Major Activities PERFORMANCE PLANING - 2008 Activities Incharge Completion Date 4.Conduct 360° Feedback for all Managers (# 25) Imtiaz Hussain (H. R.) 30th Mar. 2008 5.Conduct Gap Analysis (Requirement Vs. Performance) Imtiaz Hussain (H. R.) 30th Apr. 2008 6.Prepare Development Plan for each Manager Department Head / Imtiaz Hussain 30th Jun. 2008

22. PERFORMANCE PLANING – 2008 Select experienced Facilitator for the assignment Complete all activities with 95% accuracy level Achieve effective and high degree of internal communication Involve all Managerial staff throughout the process D.Standards of Performance

23. PERFORMANCE PLANING - 2008 An experienced Consultant to be engaged for periodic facilitation of Assignment Department Representative (Team Members) to be available during the assignment period, particularly in June, Sept., Oct., 2008 and April to June 2009. Department Heads’ time and support is needed for the success of assignment Financial Resources of around $. 250,000 are needed E.Resource Plan

24. PERFORMANCE PLANING - 2008 Overall Progress meetings to be held at least once a month by 15th of each month, to ensure timely coordination of project Departmental Review meetings to be held once in 15 days to ensure timely progress Key decisions taken in all meetings must be documented and provided to all Team Members with in 3 days of the meeting F.Progress Review Plan

25. Breather needed

26. PERFORMANCE APPRAISAL Actual v Plan Date (s) T & D Needs Performance Ratings

27. Review of progress reports generated by operational management and making changes in Policies and Targets, as necessary. Role of Top Management PERFORMANCE APPRAISAL

28. -Comparison of Targets v/s Achievements, after adjusting for major policy changes and exceptional circumstances -Competency Assessment -Training & Development scheduling and monitoring Role of Operational Management

29. PERFORMANCE APPRAISAL Work output (Quantity, Quality & Time Standards) Job Knowledge Assessment Managerial Skills Assessment Performance Rating

30. Objectives Priority Ranking and Performance Rating Working: Step 1 Priority Ranking 13 23 33 42 51 Total 12 Step 1

31. Objective No. Priority Ranking and Performance Rating Working: Step 3 1 2 3 4 5 Priority 3 3 3 2 1 X X X X X Actual Rating 3 3 3 2 3 Score 9 9 9 4 3 Total 34 Step 2

32. Priority Ranking and Performance Rating Working: Total Score (34) ÷ Priority Total (12) = 2.83 This falls in Overall Performance range of Very Good (VG) Overall Performance Ratings RatingScore BAUp to 2.24 G2.25 - 2.80 VG2.81 - 3.00 Step 3 Step 4 VG = Very Good G = Good BA = Below Average

33. Job Knowledge Focus on Technical Aspects & Expertise Focus on Systems, Policies, etc. PERFORMANCE APPRAISAL

34. Managerial Competencies (by Berger) Decision Making Planning & Organising Creativity / Initiative Leadership & Motivation Delegation Dependability Communication PERFORMANCE APPRAISAL

35. Decision Making Analyze situation, consider alternatives, and decide for action. Managerial Competencies Planning & Organising Comprehension of responsibility in determining a course of action to achieve goals within specified time and available resources.

36. Creativity / Initiative Improving operational efficiency / Innovative in performing. Managerial Competencies Leadership & Motivation Influences and guides others, development of resources. Motivates (Inspire self and others to perform).

37. Delegation Explaining and enabling others to perform. Managerial Competencies Dependability Reminders not needed, self commitment. Communication Verbal, Written, Listening skills, Presentation skills.

38. Focus on Key Strengths (at least 2) in specific achievements / behavior PERFORMANCE APPRAISAL Focus on major Development needs (at least 2). Use specific short falls / negative behavior

39. Purpose Succession / Career Planning Rewarding the Right person Retention of Good Employees Keeping the Head Count under control POTENTIAL APPRAISAL

40. Establish Facts At least 3 out 5 previous years Performance Ratings are Very Good OR At least 2 out 3 previous years Performance Ratings are Very Good POTENTIAL APPRAISAL

41. Possible Positions for the Candidate Within his / her Function Outside his / her Function POTENTIAL APPRAISAL

42. Define Standards (Functional & Managerial Competencies) for the Possible Position (s) Assess Candidate against Standards then make recommendations POTENTIAL APPRAISAL

43. INFRA STRUCTURE Infra- Structure to implement SPM (a) Management Teams for - Performance Planning - T & D Management - - Career & Succession Planning

44. INFRA STRUCTURE (b) M. I. S. for timely Information & tracking of Achievements (c) Employee Data Base Management System Infra- Structure to implement SPM

45. Lets take a Break

46. Select and implement an ERP system covering Sales, Distribution, Manufacturing and Financial aspects of the organisation, in the next 2 years (by June 2010), to improve working capital management, order tracking, management reporting and reduce wastage in manufacturing by 25%, within one year after the implementation of the ERP. Examples of Objectives

47. Identify and outsource most Administrative functions in the next 12 months (by December 2008), in order to reduce fixed admin. costs, managerial effort and litigation, while improving the service level by 20% from the existing levels.

48. Improve the preventive plant maintenance policy and implementation techniques, so that plant idle time is reduced by 20%, in the next 12 months (by December 2008).

49. Improve the distribution network and process in the next 6 months (by December 2008), through automation and MIS (order tracking, data mining), in order to ensure availability of stocks, while reducing overall inventory level by 20%.

50. The Way Forward Profiling of Managerial & Functional Competencies for each position, with level required Competency Assessment of Individual Managers Gap Analysis and Individual Development Plan Performance Rating on a scale of 5 Competency Based Management

51. Innovation Initiative, creativity, risk taking and problem solving. Managerial Competencies Teamwork Collaboration, building relationships / network, creating partnership, exploiting diversity, using the skills of others, and candor.

52. Leadership Leading by example, motivating and inspiring others, and creating a high performance organisation. Managerial Competencies Customer Focus Understanding and responding to customers, communicating with customers and creating solutions to meet customer needs.

53. Result Focus Meeting commitments, tenacity and delivering results. Managerial Competencies Change Orientation Developing self and others, coaching and adapting to, and managing change.

54. Communication Listening & presentation skills, adapting different communication styles, negotiating and influencing others. Managerial Competencies

55. Functional Competencies Specialized Competencies are necessary to be successful in a particular job or function. Each job requires its own set of expertise As a competitive organisation the breath and depth of your knowledge base is critical for competitive advantage Competency Based Management

56. Functional Competencies Job specific General Management Marketing, Sales & Distribution Production & Q. A. Research & Development Finance & Accounting Systems Control & Audit Information Technology Human Resource & Administration External Relations Secretarial & Legal Competency Based Management

57. Examples of Functional Competencies General Management Business Acumen Strategy and Planning Competitive Analysis Portfolio Management Budgeting & Financial Control E - Business Organisation Development Executive Coaching & Mentoring Change Management Corporate Policies Govt. Relations

58. Competency Assessment of Individual Managers Competency Based Management -360º Feedback -Counseling - Individual Development Planning

59. Performance Rating on a scale of 5 Competency Based Management Exceptional (E) = 5 Results exceed expectations in all standards of performance - quality, quantity and timeliness. Improvements have been made through superior performance. Superior results were produced in spite of negative influences such as unexpected heavy workload, changed priorities, or factors beyond the Individual’s control

60. Performance Rating on a scale of 5 Competency Based Management Above Average (AA) = 4 Results exceed expectations and standards of performance - quality, quantity are clearly beyond what was expected. Time deadlines have been met, but not improved upon. Improvements achieved in at least two standards of performance

61. Performance Rating on a scale of 5 Competency Based Management Average (A) = 3 Results meet the standards and targets set for this objective. Quantity and quality generally meet the standards and achievement of the targets was more or less on time Un Satisfactory (US) = 2 The results are those you can expect only from novices in this position. Results need improvement in terms of quantity, quality or timeliness.

62. Performance Rating on a scale of 5 Competency Based Management Un Acceptable (UA) = 1 Results fail to meet all expectations. You would not expect these results even from a bunch of novices.

63. Thank You