1. NATIONAL RESEARCH FOUNDATION PERFORMANCE MANAGEMENT WORKSHOP

2. The Purpose of the Workshop
To create an awareness of the performance management system based on strategic plans and business plans

3. Planning process
Strategic plan at the organisational level (highest level)
Business plans (second level)
Performance agreement at the personal/job level (The lowest level of planning in the organisation)

4. Strategy implementation process
The components within the NRF strategic management system
The strategic plan for the NRF
The business plans for the units/divisions in the NRF i.e RSA
The personal performance contracts that link to the strategic planning system

5. NRF’s PROCESS OF PERFORMANCE MANAGEMENT SYTEM
1. PERFORMANCE PLANNING
(Business / Strategic Plan)
NRF ACT)
Identification of Key
performance Areas to achieve
organisational (NRF) goals
BUSINES UNITS
GOALS(Facilities goals)
Develop specific action
to achieve goals
Employees’ input
regarding goals to be achieved
2. PERFORMANCE
CONTRACTING
(Individual/Team goals)
3. PERFORMANCE
MEASUREMENT/ ASSESSMENT
4. PERFORMANCE ENHANCEMENT
Development
Managing Poor Performance
Reward and recognition of performance
EXTERNAL FACTORS
INFLUENCING PERFORMANCE
MANAGEMENT PROCESS
* Transformation
-Employment Equity Act
- Skills Development Act
* White Paper on Science & Technology
- National System of Innovation
OPERATIONAL STRATEGIES
AND GOALS

6. Plans only work as well as the people want them to
Your plans are no better than the willingness and ability of the people involved to carry them out. In the final analysis, people determine how effective your plans will be.
Create ownership
Communicate 4-ways
Empower people
Give recognition

7. Performance Agreement
“Formal statement of the overall, continuing commitments, output results, accountabilities and standards of a position
There are two clear facets to each job: called the key performance areas
= The objectives to be achieved
= The outputs which will achieve the
objectives

8. Importance of your Performance Agreement
Your performance agreement starts you on the road to transparency - it makes visible what your job is

9. Key Performance Areas Definition
The main areas in which results must be achieved on a continuous basis in order to realize the core purpose, of that particular job/function

10. Performance standard/measure
Definition
What is the acceptance level of achievement in each of the performance areas? It is a clear and concrete description on the standards of performance, which must be achieved by the employee. It is a statement that describes two things namely What it is which the employee must do, and How well it must be done

11. Job Outputs Definition
These are the required outputs in terms of the employee’s current job description that need to be performed on a daily (ongoing) basis in achieving business goals

12. Key Performance Indicators
Definition
It is a concrete description of the measuring format of required outputs. (Where will evidence be found that the standards were achieved e.g. Audit queries report & control statements)

13. The first steps Know the objectives and plans of your business unit
Developing Key Performance Areas for yourself
Know the objectives and plans of your business unit
Know what outputs/activities will achieve those objectives
Develop measurable objectives with performance standards/measures which will enhance performance/improve results for yourself

14. Key performance areas Financial Internal Business Processes
In which areas do we set objectives by which we measure overall achievement?
Financial
Internal Business Processes
Customer/stakeholder
Learning and Growth
Every person in the organisation will contribute to the wellbeing of the organisation if they work towards the achievement of these objectives

15. Key performance area Revenue growth and mix
Financial Objectives. The main areas in which results must be achieved
Revenue growth and mix
Cost reduction/productivity improvement
Asset utilization/investment strategy

16. Performance standards: Financial
Financial objectives: What it is which the employee must do and how well must it be done
The growth of income from all sources
The change of revenue mix i.e proportions from grants and budget vote
Asset utilization - The improvement in utilization of assets i.e machinery, space and capacity

17. The Key performance area
Internal Business Processes objectives: The main areas in which results must be achieved
Innovation
Operational improvement through:
* Cycle time
* First pass rate

18. Performance standards: Internal business processes
Internal business processes: What it is which the employee must do and how well it be done
Innovation - new or better ways of doing things (which processes?)
Operational improvements: Through the improvement of how long it takes to complete (cycle times) and doing it right first time (first pass rate) How much do we want to improve ?

19. The Key performance areas: Customer Stakeholder
Customer objectives: The main areas in which results must be achieved
Market share
Customer retention
Customer acquisition
Customer/stakeholder satisfaction

20. Performance standards
Customer/stakeholder objectives: What it is which the employee must do and how well it must be done
Market share -What share of the market do you have (and want?)
Customer retention - How many do we have and what percentage can we retain?
Customer/stakeholder satisfaction - How do we pro-actively satisfy them? How satisfied are they?

21. The Key Result Indicators: Learning and Growth
Learning and Growth objectives: The main areas in which results must be achieved
Employee satisfaction
Employee retention
Employee productivity through:
* Staff competencies
* Technology improvement
* Climate for action

22. Performance standards
Customer/stakeholder objectives: What it is which the employee must do and how well must it be done
Employee satisfaction: the issues that create productivity (How much improvement do we want?)
Staff competencies: The number of new skills to be developed
Technology improvement: New technology that improves efficiency

23. Key performance standards
The cause and effect relationship
Every objective can be linked to required action in one or more of the other perspectives
Example: If you have set a high skills development objective, what are the financial implications on your cost objective (and adjust if necessary)

24. Performance standards
Performance Drivers and initiatives are identified
In order to improve performance organizations have to drive the new initiatives (or they may not become a reality)
An example: Skills development programme (the driver behind the initiative)

25. Technique for developing performance contracts
1)Develop Objectives for the division based on the Business Plan
2)Develop the Objectives for every position with target(ed) performance standards and weights in the four perspectives.
3)Agree with superior on priorities
4) Manage strategically. The achievement of the individual objectives should achieve the overall results

26. Performance Standards/measurements
What is an acceptable standard
Performance standards are intended to set a standard at high, but achievable level
Performance standards are aimed at performance enhancement, therefore may be at a level that is higher than the current
It is easier to set new standards if you know how well you are doing currently

27. Allocating weights
Weights are allocated according to the importance of the objective/output (activity) in achieving the overall objective of the job and the division/organisation
Weights are a guide as to the effort/time that should be spent on that objective, outcome/activity

28. Delegating Identify objectives and activities/outputs for each person
Developing Subordinates Performance Agreements
Identify objectives and activities/outputs for each person
Take into account the current and future desired level of performance and requirements of the position

29. How to develop the ACTIVITIES/OUTPUTS of a performance agreement
Some basic issues that are important
There are various “levels” of people in the organisation
Some people are in charge of others i.e. are managers. Others do not have subordinates
The NRF distinguishes between two basis “streams” of employees, scientists and non-scientists

30. How to develop a performance agreement
The most important is to establish what the objectives are of the job
Next develop outputs (activities) which will achieve the objectives
Finally attach weights, in order of importance to the objectives (100) and to the outputs (100)

31. The Key performance areas (Outputs)
The work to be done (activities) which if they are done well will achieve the objective of the person in that job
For people who have subordinates:
- Develop the management activities (see
example)
- Develop the Technical activities (see

32. The Key performance areas (objectives)
Example of setting objectives
Example: OBJECTIVE!!!!!
The result (kpa-objective) that we desire is to develop skills in the division
The performance standard: Two per person
The performance indicator: Monthly Skills Development report

33. Key performance area (output)
Example of activity
Example
In order to achieve the objective (previous
slide)
Key performance area: Develop skills plan
for every person
Performance standard: All within budget
KPI: Skills plan implemented

34. Performance Agreement
The Performance agreement
Use the template provided to:
Develop KPA (objectives) in four perspectives
Develop the KPA outputs (activities) that will produce the results
Ensure that these link to that of your immediate manager/team
Agree on weights, performance standards and measurements
Sign agreement with team/manager
Review regularly as objectives, etc change

35. The allocation of weights (a benchmark)
Within Key Performance Areas (OUTPUTS)
Senior Managers should have at least 50% of the weight allocated to management activity/outputs and the balance to technical activity/outputs
People who do not have subordinates may have 100% technical activity/outputs

36. NRF Completion Dates
The whole process from strategy development and implementation through to each person having performance agreement must be completed by the end of June 2002…….
Thank you.