1. A roadmap towards peak
performance
A performance measurement approach
ABM Consult
Arriffin Mansor 69, Jalan Raja Alang, 50300 Kuala Lumpur
012-2786282
arriffin@gmail.com
www.abmconsult.cjb.net

2. We help clients to
• Define clear goals and strategies
• Identify and develop critical competencies
• Design proper systems and processes
• Develop effective team leadership
• Empower employees for greater productivity
Towards peak performance 2

3. Our programs
• Consulting
– Identifying critical competencies
– Strategic business plans
– Installing Peak peformance framework
• Training workshops
– core performance competencies
– Performance improvement
• Team building
– A winning team with the right working plans
Towards peak performance 3

4. Key benefits of our programs
• Improved bottom line performance
• Improved customers satisfaction
• Attaining leadership in the industry
• Promote continous improvement in
all areas
• Promoting effective team leadership
• Strategic thinking and effective
problem solving through a systemetic
thought process
• Recognising and promoting talent
Towards peak performance 4

5. Consulting Services
1. Training need analysis
2. Performance audit
3. Strategic business plans
4. Installing performance management system
Towards peak performance 5

6. Team Building
• Clear objectives
• Identify key result areas to achieve objectives
• Choose suitable key peformance indicators
• Establish performance targets
• Communication
• Problem solving
• Effective Leadership
• Group dynamics
Towards peak performance 6

7. Performance Framework
• Smart objectives
• Key result areas
• Key Peformance Indicators
• Performance targets
Towards peak performance 7

8. Critical Gap Analysis
• ROE chart
• KPI calculations
• Benchmarking
• Industry standards
• Internal standards
• For both performance and competency gaps
Towards peak performance 8

9. Performance Management
• Performance planning
• Performance measurement
• Performance appraisal and evaluation
Towards peak performance 9

10. Vision and Strategy
Financial Customer Process L and G
Objectives
Measures
Strategy-
Translation
Process
Targets
Initiatives
Towards peak performance 10

11. Some Basic Principles in Performance
• Quantifies the Strategies in measurable terms
• Strategy is summarized on a Strategy Map over four views of
performance (perspectives).
• Must capture a cause-effect relationship between strategic objectives
over the four perspectives on the Strategy Map.
• Critical Components include:
-objectives
- Measurements
- Targets
- Initiatives
• Everything must be linked: Goals to Objectives, Objectives to
Measurements, Measurements to Targets.
Towards peak performance 11

12. The Measurement Pyramid
Goal
Strategic/GPRA Goals
End-Outcomes Outcome
Performance
Measures
Longer-Term Intermediate Program
Outcomes
Program Performance Measures
Shorter-Term Program Components
Intermediate
Outcomes Program Component Performance Measures
& Outputs
Outputs Activities
& Inputs
Activity Performance Measures
Towards peak performance 12

13. ENSURE THE RIGHT KPIS BEING USED
• Let me suggest four possible types of KPIs:
1. Input phase
• Labour Hours
2. Process phase
• Material used per unit
3. Output Phase
• Production cost per unit.
4. Outcome phase
• Return calculation
Towards peak performance 13

14. Return on Assets (ROA)
Sales
Identifying Critical Gross Margin
$ 100.00
performance gaps $ 20.00
Net Profit Subtracted by
$ 2.00
Subtracted by $ 80.00
Net Profit Margin $ 18.00
0.02 Divided by COGS
Total Expenses
$ 100.00
Return On Assets Inventory
Sales 13
0.05 Times
Sales
$ 100.00 Added to
Current Assets
2.5 Divided by 30 $ 13.00
Asset Turnover $ 40.00 Accounts Receivable
Added to
Total Assets 10 Added to
4
Fixed Assets
Other Current Assets
14 Towards peak performance

15. Strategy Map: Capture a Cause Effect
Relationship from the Bottom Up
Stakeholder
More rapid and
Improved Returns on
accessible services
Investments
Internal Process
Economic Model Reduce Re-Activities thru Establish Web Based
Process ABC/M Self Services
& Growth
Learning
Expand Global Leadership Knowledge
Facility Reach Development Management
Investments
Facilities and Fixed IT Infrastructure
Assets Human Capital
Towards peak performance 15

16. TNA (Step 4): New Skills, knowledge and
Attitudes
In order for our employees to perform
differently, what kind of
new Skills, Knowledge and Attitudes
they need to have?
Existing Required
•Skills • Skills
•Knowledge • Knowledge
•Attitudes • Attitudes
Towards peak performance 16

17. Mapping Purpose to the Systems Model
INPUT OUTPUT ANALYSIS
C. Operational Community
Purpose - Challenging
Outcome
A. Training Community
Purpose - Checking C Performance
8. Estimate Value
A
Input Output
Process
Learning Programme 7. Changes in Practice
3. Candidates
4. Changes in Knowledge and Skills
5. Changes in Behaviour
6. Changes in Support Environment
Performance Problem B
1. Establish the Need
2. Set success Criteria B. Operational Community
Purpose - Steering
Towards peak performance 17

18. GRAPHIC ILLUSTRATION OF
PERFORMANCE IMPROVEMENT
ROA as a KPI for the CEO
105%
600 200
1010%
A 500 Before 100
S 400 Ă Industry Standards
S 300 ß 1020%
E č 50
200 After
T S
100
0
0 10 20 30 40 50
PROFITS
18

19. Sale per ringgit Advertising
Advertising Sales/advertising
KPI2
After
Before
Before After Sales
19
19

20. IMPROVEMENT MODELS
MICRO - input output
MACRO - ROE Chart dimension
• Departmental strength and • Individual Strength and
weaknesses weaknesses
• Benchmark against industry • Benchmark against industry
standards standard
• Cascading the targets • Root cause analysis
• Performance improvement • Performance appraisal
metrics • Performance network
• Strategic mappings • Competency gaps
• Team buildings
Towards peak performance 20

21. 5 steps in evaluating impact
Step 1 – determine performance
objectives
Step 2 – accumulate input costs
Step 3 – compute realistic
key performance indicators
Step 4 – obtain the output
benefits / income
Step 5 – Calculate the ROI
Towards peak performance 21

22. Learning tasks - build the following
business performance models.
• Corporate Plans
• Marketing plans
• Operation plans
• Staff plans
• Financial Plans
Towards peak performance 22

23. Our services - a summary
• Consulting
– Training need analysis
– Performance Audit
– Develop effective business plans
– Install the performance management system
• Seminars / Workshops
– Performance improvement – 2 day
– Business Metrics – 2 day
• Team building
– A winning, efficient and effective teams
Towards peak performance 23

24. The End
© Arriffin 012-2786282

25. Kursus Keusahawan & Perniagaan
Peningkatan
Perniagaan
Asas
Perdagangan
Prinsip
Keusahawanan
Towards peak performance 25