1. Performance Management System Design
“Your Consulting and Training Partner.”
Client Company Logo
Consultancy Proposal on
Performance Management System Design
for XX Company
11 September 2009
Copyright © HMI Consulting Limited 2009

2. Table of Contents
Introduction ………………………………………………………………………………………………………………………… p. 3
The Performance Excellence Model ……………………………………………………………………………………………. p. 4
Project Scope and Coverage …………………………………………………………………………….………………...…… p. 5
Project Setup ………………………………………………………………………………………………………………………. p. 6
Project Deliverables ……………………………………………………………………………………………………………… p. 7
Project Schedule and Fee ………………………………………………………………………………………………………… p. 12
The Project Team ……………………………………………………………………………………………………………….. p. 13
Our Company ……………………………………………………………………………………………………………………. p. 16
Relevant Experience in Performance Management ……………………………………………………………….………… p. 17
Past Experience …………………………………………………………………………………………………………………. p. 18

3. Introduction
Further to the meeting between Ms. Alice Ng and Mr. Eric Choi of XX Company (hereafter called XX) and Mr. Wilson Chu and Mr. Victor Tsang of HMI Consulting Limited (hereafter called HMI), HMI is commissioned to submit a proposal to assist XX’s management in developing and implementing a performance management system which helps:
Deploy and communicate the corporate directives down to different layers throughout the organization
Transform the business strategies into tangible goals and action items at departmental and individual levels
Conduct periodic and systematic performance assessment at corporate, departmental and individual levels
Identify performance gaps and enable the initiation of corresponding improvement initiatives
Identify employees’ training needs in support to the organization’s future development
Support the linking of performance assessment results to individual rewards
Advocate the pay-for-extra principle
Attract, motivate and retain key talents
Foster a continuous-improvement culture

4. Project Scope and Coverage
In order to achieve the objectives mentioned in p.3, we recommend XX to seek improvements in the following area:
Performance Management System for Corporate & Departmental Level (HK & PRC):
To develop and implement an easy-to-use management system using the Management by Objectives (MBO) approach to 1.) transform the business strategies into annual corporate objectives, 2.) cascade the annual corporate objectives down to departmental level, and 3.) conduct periodic and systematic assessment on corporate and departmental performance. Self-managed Performance Improvement Teams can then be developed later to close the performance gap through the initiatives of different improvement actions. The following departments are suggested to be covered this project:
Departments (Hong Kong)
Departments (China) 1.
財務* 2.
產品發展 行政 3.
市務行政 設計 4.
金料采購
進出口 5. 船務 生產 6.
石料* 7.
資訊科技* 8.
人力資源 OA
* Assume 財務 Department of Hong Kong and China can share 1 scorecard. The same applies to 石料 and 資訊科技.

5. Project Setup
Superimposed on the improvement project includes 2 set-up, which will be carried out up front before starting the project:
Formation of Steering Committee
Appointment of a Project Manager
Based on previous experience, it is important that for any successful consultancy project to have a Steering Committee, usually consisting of 4 to 6 members, be set up to provide directions and endorsement to the entire project. Senior Management members of XX will be selected as the Steering Committee members. Once initiated, this Steering Committee will sustain throughout the entire project.
To ensure for the effective implementation of the project, it is important for Steering Committee to appoint a Project Manager who will:
Assist the consultant to assign and manage internal resources in support of the project
Be accountable and responsible for managing the process of the overall project
Become an internal consultant to support the system maintenance
Serve as a bridge between Steering Committee and the consultant

6. Project Deliverables
Performance Management System for Corporate & Departmental Level (HK & PRC)
Deliverables
Responsible Party
Phase I: Project Setup 1.
Collect and review Documents with business information on the corporate vision, mission, values, business strategies, organization structure, business processes, etc.
Consultants 2.
Appoint 1 Corporate Performance Management System (PMS) Building Team composed of representatives of top management to lead and manage the development of the Corporate PMS.
Steering Committee/ 3.
Set up 13 Departmental PMS Building Teams* composed of Department Heads and representatives to lead and administrate the development of Departmental PMS. 4.
Form 1 PMS Implementation Team consisting of representatives from Finance, IT, Personnel and Administration or other departments to be led by the Project Manager to plan and execute the PMS Implementation 5.
Arrange a Kick- off Meeting to introduce the overall project objectives, project scope, milestone plan, possible impacts and project phases to all senior and middle management who will be involved in the project.
Corporate & Departmental PMS Building Teams/ Consultants
* The estimated number of teams to be formed is based on the project coverage as stated in P.5

7. Project Deliverables
Performance Management System for Corporate & Departmental Level (HK & PRC)
Deliverables
Responsible Party
Phase II: System Communication & Design 6.
Conduct 1 PMS Training Workshop (0.5-day) to brief the Corporate PMS Building Team, Business Unit PMS Building Teams and Departmental PMS Building Teams on how PMS can complement traditional financial measures with performance measures focusing in financial, customer satisfaction, internal processes and learning & growth as well as on how it can motivate breakthrough improvements in critical areas. Through the workshop, the consultants will walk through the process of building and implementing the PMS with the PMS Building Teams through a Successful Case.
Corporate and Departmental PMS Building Teams/ Consultants 7.
Conduct 1 Corporate PMS Building Workshop (0.5-day) with the Corporate PMS Building Team. The participants will have a chance to practice setting the annual objectives, Key Performance Indicators (KPIs), Quantifiable Targets (QTs) and corresponding action plans. The Manager’s Tool Kits for Building Corporate PMS with detailed procedures and examples of annual objectives and KPIs will be distributed to participants for their reference.
Corporate PMS Building Team/ Consultants 8.
Prepare the 1 Draft Corporate PMS Settings that include the annual objectives, KPIs, QTs, KPI definitions and formulas by the Corporate PMS Building Team.
Corporate PMS Building Team

8. Project Deliverables
Performance Management System for Corporate & Departmental Level (HK & PRC)
Deliverables
Responsible Party 8.
Hold a Review Session (0.5 day) to facilitate the Corporate PMS Building Team to discuss and finalize the draft Corporate PMS settings.
Corporate PMS Building Team/ Consultants 9.
Conduct 1 Departmental PMS Building Workshop (0.5-day) with the Departmental PMS Building Teams. The participants will have a chance to practice setting the annual objectives, Key Performance Indicators (KPIs), Quantifiable Targets (QTs) and corresponding action plans in alignment with the Corporate objectives. The Manager’s Tool Kits for Building Departmental PMS with detailed procedures and examples of annual objectives and KPIs will be distributed to participants for their reference.
Departmental PMS Building Teams/ Consultants
10.
Prepare the 13 Draft Departmental PMS Settings that include the annual objectives, KPIs, QTs, KPI definitions and formulas by the Departmental PMS Building Teams.
Departmental PMS Building Teams
11.
Hold 13 Review Session (2-hour each) to facilitate the Departmental PMS Building Teams to discuss and finalize the draft Departmental PMS settings.
12.
Hold a Consensus Meeting (2-day) with the Steering Committee, Project Manager, Departmental PMS Building Teams to facilitate the discussion and finalization of the Departmental PMS settings.
Steering Committee/ Departmental PMS Building Teams/ Consultants

9. Project Deliverables
Performance Management System for Corporate & Departmental Level (HK & PRC)
Deliverables
Responsible Party
13.
Validate the PMS settings.
Internal Audit Team
Phase III: System Development & Implementation
14.
Hold 1 PMS Implementation Workshop to share with the PMS Implementation Team the past experience and common practices from other companies on building the management system and database to capture the PMS measurement results.
Project Manager/
PMS Implementation Team/
Consultants
15.
Develop a PMS Implementation Plan that will include linking the PMS system to the information system.
PMS Implementation Team
16.
Hold 1 Facilitation Sessions with the PMS Implementation Team to walk through the PMS implementation progress including data collection, analysis and presentation.
PMS Implementation Team/ Consultants
17.
Hold 2 Interim Review Meetings with the Steering Committee and PMS Implementation Team. The consultant will attend the meetings as a facilitator. During the meetings, the Implementation Team will report the progress, identify obstacles and seek support from the Steering Committee to ensure the process is on the right track and on schedule.
Steering Committee/ PMS Implementation Team/ Consultants

10. Project Deliverables
Performance Management System for Corporate & Departmental Level (HK & PRC)
Deliverables
Responsible Party
Phase III: System Development & Implementation
18.
Hold 3 Monthly Performance Management Meetings with the Steering Committee and Department Heads to review the Corporate and Department performance. The consultants will attend the meetings as a facilitator. Improvement plans will be initiated by corresponding KPI owners to close any performance gap found.
Steering Committee / Department Heads / Consultants

11. Project Schedule & Fee
The following is the estimated project schedule:
Activities
Year
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Performance
Management System
for Corporate &
Departmental Levels
Phase I: Project Setup
Phase II: System Communication & Design
Phase III: System Development & Implementation
The project fee breakdown is as follows:
Part I – Performance Management System For Corporate & Departmental Level (HK & PRC)
Phase I: Project Setup + Phase 2: System Communication & Design (14 PMS Settings in total)
Phase 3: System Development & Implementation
TOTAL
HK$
* The project fee is charged based on the number of PMS settings to be developed.

12. The Project Team Mr. Wilson Chu MEng, BASc, MIHRM, SMHKSQ
Principal Consultant, HMI Consulting Limited
Wilson is currently the Principal Consultant of HMI Consulting Limited, the Associate of Poon Kam Kai Institute of Management of The University of Hong Kong and the Centre for Human Resources Strategy and Development of Hong Kong Baptist University, and also the Visiting Lecturer of The Hong Kong Polytechnic University on Bachelor of Arts (Honors) in Human Resource Management. He was the Survey Manager (in Compensation & Benefits) of Watson Wyatt Hong Kong Limited and a senior consultant of Hong Kong Productivity Council. Before settling in Hong Kong, Wilson used to be a change consultant for a manufacturing group in US and was committed to optimize the production processes through the establishment of manufacturing cells and initiatives of different improvement projects.
Wilson has extensive consulting and training experience in areas of Balanced Scorecard Implementation, Performance Appraisal, Business and Manufacturing Process Improvement, Compensation and Benefit Design, Competence Model, Talent Management, Total Quality Management and ISO 9001, etc to government departments, public utilities as well as private sectors in manufacturing, servicing trading and banking industries in US, PRC, Hong Kong and Taiwan. Besides consultancy projects, Wilson has also been engaged in designing and conducting in-house training programs for companies of different sizes and has successfully trained up over thousands of executives with management skills required for serving managerial and supervisory roles.  
Wilson holds a Master Degree in Manufacturing Engineering from Cornell University in US and a Bachelor Degree in Mechanical Engineering from the University of British Columbia in Canada. He is a certified Psychometric Tools Consultant of the Chinese Personality at Work (CPW). He is also a member of the Hong Kong Institute of Human Resource Management and a senior member of Hong Kong Society for Quality.

13. The Project Team
Wilson was invited by the Yan Oi Tong and Aberdeen Kai-fong Welfare Association Social Service Centre in Year 2005 to be one of the authors for the book:
“表現衡量和管理全新攻略: 社會服務平衡計分卡之構思與實踐”

14. The Project Team Mr. Victor Tsang Meng, BASc,
Senior Consultant, HMI Consulting Limited
Victor is currently the Senior Consultant of HMI Consulting Limited. He is mainly responsible for strategy and solution design in the areas of strategic planning, performance management, Balanced Scorecard, Business Process Reengineering, Talent Management Program design and HR Management System implementation. Before coming back to Hong Kong, Victor worked as a consultant for the US-based Adexa Inc., where he optimized business processes for large manufacturing corporations all over the world through innovative management consulting skills.
Victor has extensive experience in different business operations, ranging from sales and marketing, manufacturing, IT management, to supply chain management. Victor also has extensive consulting experience in workflow design, business process mapping and re-engineering. Victor is experienced in conducting seminars, workshops and change management groups for large corporations, where he helped to inject more innovative and effective business ideas to improve the overall performance of the organizations.
Victor holds a Master Degree in Manufacturing Engineering from Cornell University in US and a Bachelor Degree in Mechanical Engineering from the University of British Columbia in Canada.

15. Our Company
About Us
HMI Consulting is a leading HR specialist in Performance Planning, Performance Management, Compensation & Benefits, Staff Development and Process Management. We have worked across a wide range of industries in the past including Public Utilities, Manufacturing & Industrial, Financial & Insurance Service, Consumer Products, IT & Telecommunications, Property Management and Transportation & Logistics, etc. Our international experience and network enable us to deliver the highest quality service to companies. We work in partnership with our clients and provide customized solutions to assist them in achieving business objectives.
Our Vision, Mission and Values
Vision: To become the best management consulting firm in Hong Kong and Greater China
Mission: To work in partnership with our clients in striving for continuous performance and business excellence
Values: Customer Intimacy, Reciprocity, Partnership, Sincerity, Confidentiality, Continuous Improvement
Contact Us
HMI Consulting Limited
20/ F., Central Tower, 28 Queen’s Road
Central, Hong Kong
Tel:
Fax:
Strategic Partners:

16. Relevant Experience in Performance Management
Subject
Organizations
Balanced Scorecard/
Performance Management
ACCA
Asia Airfreight Terminal Co Ltd
Avnet Technology Solutions Limited
Bank of China (Hong Kong)
CMA Testing and Certification Laboratories
Fujikon Industry Co., Ltd
Hong Kong Baptist University
Hong Kong Export Credits Insurance Corporation
Hong Kong Family Welfare Society
Hong Kong Housing Society
Hong Kong Jockey Club
Hong Kong International Terminals (HIT)
Huntsman Advanced Materials (HK) Ltd.
Karrie International Holdings Limited
Leo Paper Group
Lion Home Product (International) Ltd.
Maxim’s Group
Nelson Jewellery Arts Co., Limited
New York Life Insurance Worldwide Limited
ROCOM Electric Company Limited
Sky Rise Industries Limited
St. James Settlement
Swire Coca Cola Taiwan Ltd.
The Chinese Manufacturers’ Association of HK
The Open University of Hong Kong
Trade & Industrial Department
Urban Renewal Authority
Vocational Training Council
Weina Toy Manufactory Limited
Yantian International Container Terminals
VIASYSTEMS Asia Pacific Company Ltd.

17. Past Experience Trading, Distributions & Servicing
Angliss Hong Kong Food Service Ltd.
Circle K Convenience Stores (HK) Limited
China Most International Group
Clorox Hong Kong
Chow Tai Fook Jewellery
DFS Galleria Hong Kong Limited
GAP International Sourcing (HK) Limited
Godiva Chocolatier
Home of Swallow
Home2Home Lifestyle Management Limited
Hong Kong Property Services (Agency) Ltd.
LION Home Product (International) Ltd.
Maxim’s Caterers Ltd.
MYOB Hong Kong Ltd.
OCTOPUS Cards Limited
POSS Trading International Ltd.
Prince of Peace (HK) Limited
Pro-technic Machinery Limited
Sigma Limited
The Kowloon Motor Bus Co. (1933) Ltd.
The Pure Group
Tung Wah Hospital
Wing Han Group
Manufacturing
AcBel Polytech Inc.
Ace Mold Industrial Co. Ltd.
AKEI Holdings Company Limited
Allan International Holdings Limited
Elcoteq Asia Ltd.
Elec & Eltek International Holdings Ltd.
EPCOS Limited
Everest Textile Company Limited
Fujikon Industry Co. Ltd.
Karrie International Holdings Limited
Kenwood Appliance (HK) Ltd.
LEGO Company Ltd.
LEO Paper Group
Lucretia Apparel Limited
Mikimoto Pearl Jewellery
MiTAC International Corporation
Nam Wah Precision Product Ltd.
Nelson Jewellery Arts Co., Ltd.
On-Raising Dyeing Factory Ltd.
Pall Trinity Group (US)
Pearl-Phil Garment Ltd
ROCOM Electric Company Ltd.
SKF Group
Swire Coca Cola Taiwan Ltd.
Sky Rise Industries Limited
Taiwan Semiconductor Manufacturing Co. Ltd.
TAL Apparel Limited
Taya Electric Wire and Cable Group
UPE Electronics Co., Ltd.
Varitronix Group
VIASYSTEMS Asia Pacific Co. Ltd.
Wah Lok Pet Supplies Manufacturing Ltd.
Wah Sing PVC Plastic Manufacturing Factory Ltd.
Weina Toy Manufactory Limited
Transportation
Asia Airfreight Terminal Co. Ltd.
Hong Kong International Terminals (HIT)
Orient Star Group
SINOWAY Shipping Limited
WangFoong Transportation Ltd.
Yantian International Container Terminals
Telecommunication, Hi-Tech & Chemicals
Avnet Technology Limited
Bayer MaterialScience Limited
Bayer HealthCare Limited
CASTEL Broadband Ltd.
Cotronic Technology Ltd
EPCOS Limited
Huntsman Chemical Limited
Intech LCD Group Ltd
Jinchat Engineering (HK) Co. Ltd.
Lite-On Technology Corporation
OCTOPUS Cards Limited
Pacific Century CyberWorks (PCCW)
PetroChina Company Limited
Phihong Technology Company Limited
SONY Corporation of Hong Kong Ltd.
UPE Electronics Co., Ltd.
Zoran Corporate
Institutes, Government Departments, Public
Utilities, NGOs, Professional Associations
CLP Power
CMA Secondary School
Electrical and Mechanical Services Department
Hong Kong Association of Customer Service Excellence
Hong Kong Baptist University
Hong Kong Customs & Excise Department
Hong Kong Export Credits Insurance Corporation
Hong Kong Family Welfare Society
Hong Kong Housing Society
Hong Kong Jockey Club
St. James Settlement
St. Paul Co-educational College
The Canadian Chamber of Commerce
The Chinese Manufacturers’ Association of HK
The Chinese University of Hong Kong
The Hong Kong Baptist University
The Hong Kong Polytechnic University
The Kowloon Motor Bus Co. (1933) Ltd.
The Open University of Hong Kong
The Singapore Chamber of Commerce
The Treasury, The Government of HKSAR
Trade and Industrial Department
Tung Wah Hospital
Urban Renewal Authority
Victoria Junior Chamber
Construction, Engineering & Property Mgt & Service.
Aviation Security Co. Ltd.
Harbour City Management Ltd.
Home2Home Lifestyle Management Limited
Hong Kong Housing Society
Hong Kong Property Services (Agency) Ltd.
Hong Kong Resort Limited
Kum Shing Group
Pacific Century Premium Developments Ltd.
Shui On Building Contractors Limited
Shui On Construction Limited
Suez Hong Kong
The Link Management Limited
Well Born Real Estate Mgt. Limited
Banks and Financial Institutes
Aviva General Insurance Hong Kong Ltd.
Bank of China (Hong Kong) Limited
Bank of Communications (Hong Kong) Limited
BOSHI Fund Management Co. Ltd.
Citibank (Hong Kong) Limited
CGU International Insurance
Mizuho Corporate Bank
New York Life Insurance Worldwide Limited
Tai Fook Securities Group Ltd.