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1、Discussion ObjectivesProvide an overview of current thinking and trendsDiscuss what PM consulting is all aboutReview“what works and what doesnt”Share Best Practices researchReview some of the basic planning and project steps 第1页/共40页Group DiscussionAnswer the following questions:1.What is performanc
2、e management?Why do companies have this process?2.Why doesnt it work so well?What makes it so difficult?第2页/共40页Performance ManagementTranslates business vision and strategy in an actionable way by cascading goals throughout the organizationMeasures both what is done and how it is doneAligns Departm
3、ent goals with strategic business objectivesAligns individuals with the broader organizational/team contextEnsures the closest“line of sight”possibleSource:Watson Wyatt Best Practices in Performance Management第3页/共40页Performance Consulting1.Total OrganizationCascading and AlignmentStakeholder Metric
4、s2.Employee Review ProcessEngagement and AccountabilityGrowth and AchievementsTwo dimensions:第4页/共40页Performance ConsultingTotal Organization PerformanceCascading and AlignmentStakeholder Metrics第5页/共40页The Key Questions of Business Planning=Why does the company exist?=Where is it going?Size SalesMa
5、rkets LocationsProducts Competitive ChallengesSBU Linkages=How will it get done?Values and Operating PrinciplesTechnology Resources=What must the company be very good at doing?=How will progress and success be measured?Expectations of StakeholdersCompany PerformanceMissionVision of FutureStrategicOr
6、ganizational GoalsCore OrganizationalCapabilitiesBalanced Scorecard第6页/共40页Business Plans are Developed by the Business UnitsResource RequirementsIndustryLatin AmericaAsia(Europe)Objectives ofthe business unitObjectives ofthe regionBottom-up-approach:Derivation of segment and corporate strategic pla
7、ns and operating objectives from business unitgoals.Top-down-approach:Derivation of objectivesfrom corporate strategy Objectives of departmentsand individualsStrategy of the CorporationObjectives ofthe corporation People Facilities Technology Equipment and Machinery第7页/共40页Components of a Balanced S
8、corecard (with sample metrics)FINANCIAL RESULTSCUSTOMER SATISFACTION BUSINESS PROCESSES LEARNING&GROWTH AFYP ROI/ROA Surplus GrowthNew sales:new customersAdditional policies:current customersMarket shareCollecting premiumsCalculating selling price:new productNew licensing(Region&Corporate)Establishi
9、ng the Business Case for new ventures,new locations Product Development:#innovations Competency growth Additional countries Core capabilities growth第8页/共40页Cascading Strategic&Operating Plan GoalsCORPORATEORGANIZATIONMETRICSFinanceFinanceCustomerCustomerBusinessProcessBusinessProcessLearning&GrowthL
10、earning&GrowthBUSINESS UNITTEAMS/INDIVIDUALSDEPARTMENTBalanced Scorecardscan provide organization alignment and accountability 5 to 7 GOALS “SMART”parameters Directly aligned第9页/共40页Typical Project Timeline&Milestones*8 weeks elapsed time from planning session2 Days Clarify Company Strategy and dete
11、rmine goalsImplementationTraining and Roll out beginsImplementation PlanningWorkshopFormal AdvisoryGroup Review Session&Follow-up1 wk2 wks1 wk1 wk1 wk1 wk1 wkProjectPlanning,Orientationand Kick-off1 Day1 Day Interview Findings+Develop Measure Recommendations1 DayWorkshop on TargetsFinalize TargetRec
12、ommendationsImplementationPlan ReviewReview Plan forImplementation Review TransitionStrategy2 DaysFormal AdvisoryTeam Review1 Day1 Day1 wk1 DayExecutivePlanningSession(s)第10页/共40页Performance ConsultingTotal Organization PerformanceClients:CEO,COO,sometimes the VPHRFees:typical project is$180-250KTim
13、eframe:+/-4 months第11页/共40页Performance ConsultingEmployee Review ProcessEngagement and AccountabilityClear Performance ExpectationsGrowth and Achievements第12页/共40页Performance Management Is.the ongoing process of setting performance expectations,providing feedback and coaching to reach those expectat
14、ions,and reviewing and recognizing performance results.第13页/共40页Tie PM to the Business CycleReview and PlanningPlanningFeedback&CoachingFeedback&CoachingMid-Year ReviewNew Year PlanningYear-End Review第14页/共40页Bad timing.“I dont want to ruin your day Herman,but tomorrow morning youre scheduled to be
15、in my office for your annual performance review.”第15页/共40页Remember The Key Questions?=Why does the company exist?=Where is it going?Size SalesMarkets LocationsProducts Competitive ChallengesSBU Linkages=How will it get done?Values and Operating PrinciplesTechnology Resources=What must the company be
16、 very good at doing?=How will progress and success be measured?Expectations of StakeholdersCompany PerformanceMissionVision of FutureStrategicOrganizational GoalsCore OrganizationalCapabilitiesBalanced Scorecard第16页/共40页Organization Alignment leads to Employee Engagement COMPANYMISSIONVISIONStrategi
17、c ObjectivesCore Capabilities CompetenciesLeadershipFunctional Department ScorecardSuccess ProfilesEmployee Performance ProcessIndividual GoalsEmployee Development PlansBusiness Unit Scorecard Cascading:Critical Metrics and Competencies 第17页/共40页Change requires a balanced Value ExchangeEmployee Give
18、s Employer GivesEnergyEffortCommitmentValue AddLearningTimeOpportunityCareerBenefitsCompensationJob第18页/共40页The Performance Process can provide the keys to developmentBase PayPromotionTrainingCareer developmentSuccession planning89%77%56%51%32%Reduction in force26%Variable pay34%Current Use of Perfo
19、rmance Management DataSource:Watson Wyatt Best Practices in Performance Management第19页/共40页Performance Management EvolutionTraditional Recent Emerging MeasuresTraits/OutcomesBehaviors/OutcomesTime/Quality/ValueEvaluatorBossSelf/PeersCustomersOutcomesMerit PayDevelopmentOrganization SuccessImplementa
20、tionDistribute FormsTrain andCommunicateOngoing Education and involvementOwnershipHRDManagementEmployeesComplianceVoluntaryMandatoryMotivation第20页/共40页Factors That Influence Process effectiveness Organization Supervisor PM Culture Skills Process The Organization Values that Support PM The Capability
21、 to Measure and Discuss Performance The Interaction Between the Employee and the Supervisor People Factors Technical Factors Performance Measures Rewards Delivery PM Forms Measures that Support the Organizations Goals and Values and are Possible to Accurately Measure How and Why Pay is Linked to Per
22、formance How the Design of the Form Supports the Process PerformanceManagementEffectiveness第21页/共40页Feedback frommultiple sourcesCoaching and feedback are integralDe-emphasison a ratingDecentralizedcontrolGreater linkagebetween pay and performanceEffective measures-Competencies-Business strategies“C
23、hampions”sponsorshipEmployeeparticipationEmployeeinvolvement insystem designCommunication&trainingAlignment withbusiness objectives,strategy,customer needsOngoing monitoringof effectivenessof programBest PracticesElements of Successful Programs第22页/共40页High Impact Performance ManagementKey elements
24、found in all“best practices”Emphasis on looking forwardPlanning and developmentJoint process with employee ownershipCooperative goal settingFeedback(continuous,multiple sources)Developmental focusPay and performance linkageSource:Watson Wyatt Best Practices in Performance Management第23页/共40页Use of K
25、ey ElementsDevelopment PlanningMulti-source ratings14%65%81%84%94%97%Goal SettingTeam standardsNo ratingsCompetencies/behaviorsSource:Watson Wyatt Best Practices in Performance Management第24页/共40页Evolution of Performance FeedbackTop DownSelf-AppraisalPeer ReviewsUpward FeedbackInternal CustomersExte
26、rnal Customers3600Review第25页/共40页Does it make a difference?Employees are eligible for stock plan programs1.8%Company terminates employeeswho perform unacceptably1.8%Company does a good job of helping poor performers improve1.5%Top performers get significantly more pay than average performers0.8%Comp
27、any positions pay above market0.4%Employee performance appraisals used to set pay0.4%Employees participate in profit-sharing plan based on firms overall success0.6%Pay is linked to companys business strategy第26页/共40页The Performance MatrixOResults“what”Behaviors“how”Std=100%ofexpectedStd=100%alignmen
28、tNIHNIWFMEEKey:O=OutstandingEE=Exceeds ExpectationsM=Meets Expectations (80-90%of population)NIH=Needs Improvement on“HOW”NIW=Needs Improvement on“WHAT”F=Failing第27页/共40页Project StepsProject Planning,Education and Assessment:ClientFirst,scope and timetable,design team education,PM design matrix,docu
29、ment review,interviewsDesign:Straw-man designs,implementation planning and scheduleTesting and Approval:Presentation,senior management assessment,sign-off,editImplement:Communication rollout,modular training rollout,useReview/Revise:Gather feedback,test and revise12345第28页/共40页Performance Consulting
30、Employee Review ProcessClients:VPHR,Dir.Comp and/or ODFees:typical project is$85-130KTimeframe:+/-3 months(excludes implementation)第29页/共40页Think“Implementation”A successful process is 25%design and 75%implementation!“Its never to early to think about implementation.”Peter Drucker第30页/共40页Best Pract
31、ices in ImplementationDetailed communications and training strategyPro-active problem identificationBroad buy-inSenior management involvementMeasurement of system effectivenessSource:Watson Wyatt Best Practices in Performance Management第31页/共40页Utilize Best Practices in Change ManagementVisible seni
32、or management supportOngoing communicationBest practices and stakeholder researchHigh involvement and broad buy-inCareful planning,rapid processComprehensive approach to implementation and monitoringTraining in intact work teamsSource:Watson Wyatt HR21 Study第32页/共40页Understanding Realize how“my work
33、”is different because of the changeCommitment Believe in the system and process for change.in shared accountability for making it successfulAcceptanceAgree to value or merit of change.Recognize advantage of“future state”Action Adopt new behaviors=become engaged in the change process.Champion changes
34、 internallyBehavior Change ModelEFFORTAwareness第33页/共40页A Quick SummaryPerformance management continues to evolveNO one perfect solutionnot much magicImpact:great if done rightBest practices for ideasThink implementation early and oftenUpdate and keep fresh第34页/共40页Ongoing TrackingTimely Communicati
35、on&Skills TrainingConnection between Rewards&PerformanceDirect Link toInstitution MissionSenior Leadership InvolvementEmployee“Ownership”Objective Feedback&ReviewCritical Success Factors for an effectivePerformance Management process第35页/共40页Key Human Resource LinkagesBase PayTrainingSuccession Plan
36、ning/PromotionsCareer PlanningIncentive Pay100%97%95%85%80%Source:Watson Wyatt Best Practices in Performance Management第36页/共40页HR StrategySuccessionPlanningRewardsWorkDesignSelection&StaffingPerformanceManagementTraining&DevelopmentIntegrate PM with HR Strategy第37页/共40页Performance Management TeamMethodology and ToolsBrian Brown(Cleveland)Brad Carter(San Francisco)Cassandra Frangos(Boston)*David Gore(Toronto)Jim Stewart(Boston)*to Kaplan and Nortons Balanced Scorecard Collaborative 第38页/共40页Performance ManagementA Watson Wyatt Guide to ConsultingJune 2000第39页/共40页感谢您的观看。第40页/共40页