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Strategic Performance Management (SPM) for Superior Results

Enhance employees' development, ensure superior outcomes, and surpass competitors through Strategic Performance Management (SPM). The SPM process encompasses setting corporate objectives, performance planning, competency profiling, and executing strategic action plans with a focus on performance review and competency development. Top and operational management play pivotal roles in defining objectives, selecting competencies, preparing implementation plans, and conducting progress reviews. Example performance planning for 2008 illustrates the importance of identifying key competencies, conducting gap analysis, and setting performance standards. Embrace SPM to drive organizational success.

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Strategic Performance Management (SPM) for Superior Results

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  1. Strategic Performance Management SPM Syed Imtiaz Hussain

  2. Strategic Performance Management (SPM) PURPOSE To Develop Employees, Deliver Superior Results and Outclass Competitors.

  3. Strategic Performance Management (SPM) H. R. Management Process Reward Management Recruitment & Retirement Performance Management Training & Development Career & Succe- ssion Planning

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

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

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

  7. SPM Performance Planning Process Corporate Objectives & Targets Cross Functional Targets Departmental Targets Individual Objectives / Targets

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

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

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

  11. SPM Identification & Level of Competencies • Functional Competencies • ManagerialCompetencies

  12. SPM 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

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

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

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

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

  17. 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

  18. PERFORMANCE PLANING - 2008 A. Objective 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 2 1 3 = High 2 = Medium 1 = Low

  19. PERFORMANCE PLANING - 2008 C. Schedule of Major Activities Incharge Completion Date Activities 1. Identify / List Managerial Competencies (MC) for the Company 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

  20. PERFORMANCE PLANING - 2008 C. Schedule of Major Activities Incharge Completion Date Activities 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

  21. PERFORMANCE PLANING – 2008 D. Standards of Performance • 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

  22. PERFORMANCE PLANING - 2008 E. Resource Plan • 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

  23. PERFORMANCE PLANING - 2008 F. Progress Review Plan • 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

  24. Breather needed

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

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

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

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

  29. Priority Ranking and Performance Rating Working: Step 1 Step 1 Objectives Priority Ranking 1 3 2 3 3 3 4 2 5 1 Total 12

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

  31. Priority Ranking and Performance Rating Working: Step 3 Total Score (34) ÷ Priority Total (12) = 2.83 This falls in Overall Performance range of Very Good (VG) Step 4 Overall Performance Ratings Score Rating Up to 2.24 BA 2.25 - 2.80 G 2.81 - 3.00 VG VG = Very Good G = Good BA = Below Average

  32. SPM PERFORMANCE APPRAISAL Job Knowledge • Focus on Technical Aspects & Expertise • Focus on Systems, Policies, etc.

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

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

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

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

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

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

  39. SPM POTENTIAL APPRAISAL 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

  40. SPM POTENTIAL APPRAISAL Possible Positions for the Candidate • Within his / her Function • Outside his / her Function

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

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

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

  44. SPM Lets take a Break

  45. SPM Examples of Objectives 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.

  46. SPM 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.

  47. SPM 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).

  48. SPM 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%.

  49. The Way Forward SPM Competency Based Management • 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

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

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