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Strategic Enterprise Management
- 1. © Empower Management Consulting LLC - All Rights Reserved
Strategic Enterprise Management
Mohamad J. Samman
HR Best Practice Group
Doha, Qatar
October 14, 2009 1
- 2. © Empower Management Consulting LLC - All Rights Reserved
Agenda
Strategic Enterprise Management introduces broad agenda on how
to efficiently implement Corporate Business Strategies to leverage
Human Capital contributions for the organizational effectiveness
with comprehensive framework that integrates SMART Objectives
(KPIs) and Competency Models with Performance Appraisal
practices, Compensation, Incentives, Career Development,
Succession Planning, and Talents Acquisition processes.
The Presentation shall introduce extensive information of the
unlimited advantages through efficiently using measurement-
based strategy model to achieve corporate business objectives by
implementing Balanced Scorecard (BSC) concept as Strategic
Enterprise Management (SEM) Tool to identify and communicate
Corporate Business Strategies and deploy strategy roadmaps with
clear Matrix and specific Metrics and cascade Strategic Objectives
to effectively manage Human Capital. 2
- 3. © Empower Management Consulting LLC - All Rights Reserved
Corporate Struggle!
How to Design, Communicate, and Implement Business Strategy?
3
- 4. © Empower Management Consulting LLC - All Rights Reserved
Corporate Dilemma!!!
FIASCO
How to Align & Cascade Corporate Objectives and Evaluate Performance? 4
- 5. © Empower Management Consulting LLC - All Rights Reserved
Today’s Business Challenges
Global Recession & Financial Crisis: significant decline in the GDPs.
Socioeconomic changes and Cost of Living Inflation/Fluctuations.
Unclear Business Strategy & lack of Corporate Objectives.
Transforming HR Management to Strategic Business Partner Role.
Shortage of Technical Skills and swift migration of Talents.
Employees’ expectations vs. Corporate directions.
New Business Techniques and ERP/ICT Solutions.
Ongoing Quality Improvement and demands for Service Excellence.
Collaboration between Global Joint Ventures and Local Partners.
Outsourcing: Availability, Commitment, Cost, Quality, Control.
Globalization & Labor Laws (Amnesty, Human Rights, ILO).
Global Alliances & widespread Competition (WTO & FTA).
Governmental Regulations, Constrains, and Political conflicts.
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- 6. © Empower Management Consulting LLC - All Rights Reserved
Corporate Problems
Leadership & Line Management!
– No Authorization/Delegation
– Unclear Accountability
– Slow Decisions & Approvals
Business Practices:
– Outdated Policies & Procedures
– Complicated & Inefficient Processes
– Lost Data & Inaccurate Information
– Disorganized Files and Lost Records
– No Control & No Follow-up
Inconsistent Communication
Internal Audit & Legal Compliance
Confidentiality: Rumors & Gossips
Motivation & Loyalty: Reactive Behavior
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- 7. © Empower Management Consulting LLC - All Rights Reserved
Strategic Enterprise Management
Values
………
………
………
………
………
………
Critical Success Factors
Demonstrated
Key Performance Indicators Skills & Behaviors
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- 8. © Empower Management Consulting LLC - All Rights Reserved
Business Foundation (3 Pillars)
Vision: Defines the desired or
intended future state of a specific
organization or enterprise in terms
of its fundamental objective
and/or strategic direction.
Mission: Defines the fundamental
purpose of an organization or an
enterprise which is basically
describing why it exists.
Values: Beliefs that are shared
among the Stakeholders of an
organization. Values drive an
organization's Behavior, Culture,
Business Strategy, and Priorities.
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- 9. © Empower Management Consulting LLC - All Rights Reserved
Integrated Approach
Integrated Business Strategy refers
to management techniques, metrics
and related tools that companies
can use to make strategic decisions.
It is important to link Business
Strategy with Human Capital
Management by Integrating
Balanced Scorecards and Strategic
Talents Management to translate
Vision and Mission to Business
Strategy and Objectives and
Achievements for Corporate
Competitive Advantage.
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- 10. © Empower Management Consulting LLC - All Rights Reserved
Business Strategy & Stakeholders
Strategy defines the direction
in which an organization
intends to move and establishes
the business framework and
actions to achieve its Goals and
Objectives.
Stakeholders are Individuals,
Groups, or other Entities that
are affected by or have a vested
interest in an organization’s
Business Strategy, Policies or
Decisions.
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- 11. © Empower Management Consulting LLC - All Rights Reserved
Stakeholders Influence/Power
Suppliers Creditors
Customers Unions
Lobbyers
Employees
Organization
Society Management
Government Owners
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- 12. © Empower Management Consulting LLC - All Rights Reserved
Stakeholders’ Interests
Owners: Business Acquisition, Brands, Assets, Reputation, Profitability
(ROI), Corporate Governance (Audit), Growth, and Prospects, © & ®.
Management: Accountability, Resources (Human, Technical, Financial),
Competition, Costs, Productivity, Objectives, and Performance Outcomes.
Employees: Salary, Benefits, Work Conditions, Training and Career
Development, Promotion, Relationships, Job Security, and Satisfaction.
Unions: Memberships, Dues, Collective Bargaining on Pay, Benefits,
Work Conditions, Promotions, Job Security, Fair Business Practices.
Creditors: Trustworthy, Assets, Liquidity (Cash-flow), New Contracts.
Government: Regulations, Taxation, Inspection, Legal Compliance.
Lobbyers: Environment, EEO, Human Rights, Disability, Business Ethics.
Society: Corporate Social Responsibility, Contributions, and Activities.
Customers: Quality, Value for Price, Refunds, Services, After-Sale Care,
Warranty, Maintenance, Health & Safety, Durability, Reliability.
Suppliers: Competition, Availability, Quantity, Delivery, Payments.
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- 13. © Empower Management Consulting LLC - All Rights Reserved
Business Model Framework
INFRASTRUCTURE
PARTNER OFFER CUSTOMER
CUSTOMER
NETWORK RELATIONSHIPS
CORE VALUE CUSTOMER
CAPABILITIES PROPOSITION SEGMENTS
ACTIVITY DISTRIBUTION
CONFIGURATION CHANNELS
COST FINANCE REVENUE
STRUCTURE STREAMS
a business model describes the value an organization offers to
various customers and portrays the capabilities and partners
required for creating, marketing, and delivering this value and
relationship capital with the goal of generating profitable and
sustainable revenue streams
Source: Osterwalder (2004) The Business Model Ontology 13
- 14. © Empower Management Consulting LLC - All Rights Reserved
Due-Diligence & Feasibility
Internal External
S.W.O.T
Strength Weakness Opportunity Threat
Government
Shareholders
Products
Customers
Financial
Legal
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- 15. © Empower Management Consulting LLC - All Rights Reserved
Business Continuity - Risk Matrix
Probability
Severity
Improbable Remote Occasional Probable Frequent
Catastrophic
Severe
Critical
Marginal
Negligible
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- 16. © Empower Management Consulting LLC - All Rights Reserved
Business Strategy
Revenue
Satisfied Customers
Value-Added Services
Efficient Processes
Talents & Resources
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- 18. © Empower Management Consulting LLC - All Rights Reserved
Business Strategy Map (Sample)
Profits
Financial
Revenue from Revenue from Revenue from Improved
New Customer New Services Alliances Operating Efficiency
Customers
World Value Ongoing Expand
Alliances
Class Added Reliable Business
Partnerships
Company Services Support Prospects
Processes
Business Productivity Marketing & New/Ongoing
Benchmarking Knowledge
Development & Quality Relationship Business
Best Practices Management
and Branding Services Management Opportunities
Enterprise
Admin & Media &
Due Talents & Training & ICT
Finance Public
Diligence Resources Reward Support
Services Relations
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- 19. © Empower Management Consulting LLC - All Rights Reserved
Performance Matrix and Metrics
Objective Owner Projects Measures Targets Actual
Financial
Customers
Processes
Enterprise
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- 20. © Empower Management Consulting LLC - All Rights Reserved
Master Plan (Deliverables)
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
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Human Capital Performance
Achievements
Expectations
Who, What, Which, Why, Where, When, and How? 21
- 22. © Empower Management Consulting LLC - All Rights Reserved
Managing Human Capital
Talents Acquisition
Strategic Performance Management Objectives Competencies
360° Feedback
Contributions & Demonstrated
Achievements Skills/Behaviors
Performance Appraisals
Performance Strengths &
Ratings/Outcomes Weaknesses
Reward Development
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- 23. © Empower Management Consulting LLC - All Rights Reserved
Objectives Mgmt. Design
Higher emphases on rewarding
Achievements and Contributions
Individual Objectives are based on:
– Organization’s Business Plan;
– Job Requirements (Job Description);
– Additional Contributions (Value-Added).
SMART Objectives (not Tasks)
Specific KPIs & Weighting Factors
Clear Rating Scale and Definitions
Individual Objective’s Measures
Objectives’ Overall Calculated Rating
Ongoing Review and Alignment
Self-Assessment & 360-Degree Feedback
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- 24. © Empower Management Consulting LLC - All Rights Reserved
SMART Objectives
Specific
Measurable
Achievable
Result-Oriented
Time-Framed
Energizing
Recordable
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Cascading & Alignment
Corporate Objectives Business
Strategy is
Everyone’s
Division Objectives
Unit/Section Objectives
Business!
Individual Objectives
Key Performance Indicators
Targets and Measures
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- 26. © Empower Management Consulting LLC - All Rights Reserved
Managing Human Capital
Talents Acquisition
Strategic Performance Management Objectives Competencies
360° Feedback
Contributions & Demonstrated
Achievements Skills/Behaviors
Performance Appraisals
Performance Strengths &
Ratings/Outcomes Weaknesses
Reward Development
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- 27. © Empower Management Consulting LLC - All Rights Reserved
What is Competency?
Competency is a specific
range of Skill, Knowledge,
or Ability.
Competencies are a set of
Effective Actions and
Demonstrated Behaviors
that, if exhibited, produce
Superior Performance.
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- 28. © Empower Management Consulting LLC - All Rights Reserved
Competency Pyramid
Behavior
Feelings and
Emotions
Character
Personality
Social Interests
Financial Needs
Self-Perceptions
and Self-Esteem
Career Aspiration
Hidden Expectations
Unresolved Problems and Critical Issues
from the Past Experience
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- 29. © Empower Management Consulting LLC - All Rights Reserved
Competency Domains
Leadership: Required for all
Employees who have direct
responsibility for Individuals, Teams,
or Projects.
Corporate: Required for all
Leadership
Employees such as: Customer Service,
Cost Effectiveness, and Quality.
Generic: Required by Job Category Technical
and
such as: Information Seeking and Functional
Analytical and Innovative Thinking.
Technical & Functional: Skills and Generic Corporate
Qualifications related to the specific
functional discipline and unique to
each Profession.
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- 30. © Empower Management Consulting LLC - All Rights Reserved
Competency Models (Dictionary)
Linked to:
– Vision & Mission
– Core Values
Aligned with Strategy:
– Corporate Objectives
– Individual Objectives
Categories
Definitions
Importance
Levels
Key Actions
Sample Job Activities
Compared to
Competency Matrix 30
- 31. © Empower Management Consulting LLC - All Rights Reserved
Managing Human Capital
Talents Acquisition
Strategic Performance Management Objectives Competencies
360° Feedback
Contributions & Demonstrated
Achievements Skills/Behaviors
Performance Appraisals
Performance Strengths &
Ratings/Outcomes Weaknesses
Reward Development
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- 32. © Empower Management Consulting LLC - All Rights Reserved
Performance Appraisal Concept
“Performance Appraisal is one of those
special human encounters where the
Manager gets no sleep the night
before, and the Employee gets no sleep
the night after!!”
Performance Appraisal is an ongoing
process that provides regular
constructive feedback to employees
so that they develop into skilled
workers who are useful to the
organization.
A written Performance Evaluation is
a way to formalize feedback process,
and lets employees know how they
perform. 32
- 33. © Empower Management Consulting LLC - All Rights Reserved
Appraisal Techniques
Checklists
Rating Scales
Ranking Methods:
– Forced Distribution
– Rank-Order System
– Alternation Ranking
– Paired Comparison Ranking
Critical Incident Reports
Work Standards Approach
Management By Objectives
Narrative or Essay Evaluations
Behaviorally Anchored Rating Scales
Multi-Rater Assessment (360° Feedback)
Aligned and Linked with Balanced Scorecards 33
- 34. © Empower Management Consulting LLC - All Rights Reserved
Why Everyone Avoid It?
Process can be paper-intensive and
time-consuming which requires
excessive administrative efforts.
Difficult to balance Employees’
Expectations & Organization’s Strategy.
– Avoid honest feedback to prevent conflict.
– No Time - Overloaded work schedule!
– Conflicts on who owns the Appraisal
Outcomes (Confidentiality Policy).
Concerns of the effective integration
between Employee’s Appraisal, Career
Development, and Reward.
Unclear Org Structure (Staff working on
Shifts) and reporting relationships
(Projects) which might be confusing! 34
- 35. © Empower Management Consulting LLC - All Rights Reserved
Appraisal Errors
Past Spillover
Contrast Effect
First Impression
Central Tendency
Bias or Clone Error
Leniency or Severity
Nagging and Begging
Recent or Short Time-Span
Halo or Horn Effect (Event)
Halo or Horn Effect (Person)
Inappropriate Time & Location
Appraiser Talks Most of the Time
Inadequate Observation (No Facts)
Professional Background and Social or Cultural Influence 35
- 36. © Empower Management Consulting LLC - All Rights Reserved
PM Problems! (Design)
Not designed based on Performance
Management Methodology
Lack of Expert’s involvement
Inadequate support from Management
No buy-in from Employees
Not linked to Corporate Business Plan:
– Unclear Objectives & Expectations
– No Accountability
– Low Motivation
Not linked to Training & Development
Programs or Succession Plans
Paper-based and manual processes
which requires tedious follow-up from
Supervisors and HR Staff
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- 37. © Empower Management Consulting LLC - All Rights Reserved
PM Problems! (Practice)
Unclear Reporting Relationship (Matrix Structure )
Year-End Surprises and Bad News!
Poor communication between
Supervisors and Subordinates
Unclear Rating Scale, Ambiguous
Definitions and Measurement Criteria
Subjective Performance Appraisals
Vague Performance Outcomes
Unrealistic Performance Ratings
Many Complaints and Grievances
Used mostly to determine:
– Bonus & Salary Increases
– Promotions, Transfers, Secondment
– Downsizing, Layoffs, Terminations 37
- 38. © Empower Management Consulting LLC - All Rights Reserved
PM Problems! (Outcomes)
Sales & Profits
Operational Costs
Production Efficiency
Customer Satisfaction
Business Practices Improvement
Streamlined Processes
Quality and Standards
Utilization of Materials/Equipments
Incidents & Accidents
Mistakes, Errors, and Repairs
Training Costs
Grievances and Complaints
Employees Morale & Turnover
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- 39. © Empower Management Consulting LLC - All Rights Reserved
HR Management’s Faults
Playing the Appraisal’s Cop!
– Busy with distributing and collecting Forms
– Chasing Supervisors to send Appraisal ASAP
Thinking one Appraisal Model fits all Jobs
– Using Complex Appraisal Systems/Forms
– No training on constructive feedbacks
– No communication on appraisal advantages
Believing that a documented Appraisal
will protect the Organization against
Lawsuits by Employees
Ignoring performance outcomes when an
Employee’s Salary reached the max level
and no longer tied to the appraisal results
(no more merit increase!)
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- 40. © Empower Management Consulting LLC - All Rights Reserved
Supervisors’ Faults
Spending more time on performance evaluation
than planning and communication:
– Appraisal is another “must-do” hassle
– Appraisal is an opportunity to Blame!
Comparing employees with each other
Suddenly conducting appraisal meeting:
– Canceling or postponing appraisal meeting
– Surprises during appraisal review
Thinking all employees performance
should be evaluated with the same
procedures and standards
Playing “too-busy”, “I’m overloaded”,
and “I have other important things to do”!
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- 41. © Empower Management Consulting LLC - All Rights Reserved
Employees’ Perceptions
Biased and Unfair Supervisors:
– Discrimination, Favoritism, and Nepotism
– Subjective Performance Ratings (No Facts)
Networking and Affiliation Influence
No Training & Development Plans
No Appreciation and Poor Motivation
Management is not Walking the Talk
Wrong Person in the Wrong Place
Benchmarking & Ranking
(Forced-Distribution)
Performance Appraisals means Money
and Promotion only
Appraisal is used to justify Terminations
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- 42. © Empower Management Consulting LLC - All Rights Reserved
Human Nature Influence
Employees Culture and Values (Nationality, Religion, Gender, Age)
Communication Style:
– Aggressive
– Passive
– Assertive
Language Barriers (jargons)
Educational Level
Specialization & Work Experience
Length of Service (Seniority)
Position Level & Authority
Past Appraisal Systems
Employees Perceptions:
– Expectations & Motivation
– Comfort Zone (new system) 42
- 43. © Empower Management Consulting LLC - All Rights Reserved
Options
Do Nothing!
Buy Off-the-Shelf System
Hire Expensive Consultants
Do it Internally (Strategic Focus):
– Ensure Common Understanding
of the Needs and Requirements
– Ensure Support from Top Management
– Ensure Line-Management’s Active
Involvement and Buy-In
– Involve Representatives from all
Business Units/Departments
– Develop Project Roadmap and
Master-Plan with Flexible WBS
– Benchmark with Best Practices
– Educate, Communicate, and Communicate More!
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- 44. © Empower Management Consulting LLC - All Rights Reserved
Key Design Principles
Design Logical and Practical System:
– Don’t Copy & Paste!
– Reflect Vision, Mission, and Values
Clarify Roles and Responsibilities:
– Ensure Commitment and Participation
– Ensure Accountability for the Performance
Expectations and Outcomes
– Ensure Ongoing Education/Communication
Integrate with other Corporate HR
Processes (Reward, T&D, Succession)
Develop “User-Friendly” IT Solutions
Monitor, Measure, Track Achievements
Report Success and Failures (if any!).
Ensure Continuous Improvements
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- 45. © Empower Management Consulting LLC - All Rights Reserved
EDCOM Strategy
Project Identity (Logo & Slogan)
Change Management Strategy
Objectives and Desired Outcomes
Information Cascading Process
Train-the-Trainer Workshops:
– Subject Matter Experts
– Process Coordinators
Promotional Items/Gifts
Motivational Posters
Project Homepage (Intranet)
e-Mails & Newsletters Update
Clear & Consistent Messages
Rollout & Implementation Sessions
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- 46. © Empower Management Consulting LLC - All Rights Reserved
Change Management
Change Strategy: Phase-In or Pilot Implementation?
Scope of Change:
– Structure, Processes,
– People, Systems
Resources & Action Plan
Resisting Change:
– Comfort Zone & Job Security
– Assumptions & Perceptions
– Complex Processes
– Not User-Friendly System
– Language Barriers
– Poor Communication
Mitigating and Managing Risks
Outcomes Evaluation & Impact Analyses
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- 47. © Empower Management Consulting LLC - All Rights Reserved
Key Success Factors
Executive Management Support
Line Management Involvement
Employees Buy-In
Decision Making & Approval
Budget & Financial Ability
Available Tools & Logistics
Third Party's Involvement
Teamwork:
– Availability & Dedication
– Workload & Commitments
– Work Schedules & Vacations
Information and Documents
Work Materials
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- 48. © Empower Management Consulting LLC - All Rights Reserved
Monitoring and Audit
HR Management Responsibility:
– Educate and Communicate
– Monitor and Follow-Up Process
– Provide Ongoing Support
– Suggest System Improvements
Moderation Panel Responsibility:
– Verify Documented Justifications
– Identify Subjective Outcomes
– Clarify Irrational Decisions
– Ensure Company-wide Consistency
– Validate Regression & Impact Analyses
Executive Committee Responsibility:
– Approve Performance Outcomes
– Review Executive Reports
– Provide Directions for the Future 48
- 49. © Empower Management Consulting LLC - All Rights Reserved
Executive Reports
Objective’s Achievements:
– SMART & Consistent,
– Target Dates,
– Weightage,
– Key Performance Indicators.
Reward Budget vs. Actual.
Training Requirements.
Training Days/Hours.
Succession Planning Pool.
Development Progress.
Recognition and Awards.
Benchmark Best Practices.
Improvement Areas.
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- 50. © Empower Management Consulting LLC - All Rights Reserved
Regression Analysis
Correlation Between Performance Ratings and:
– Function/Discipline
– Sector/Unit
– Job Categories
– Position Grade & Classification
– Salary Level (Min, Mid, Max)
– Nationalities, Gender, Age
– Educational Level
– Years of Relevant Experience
– Length of Active Service (Seniority)
– Appraiser’s Effectiveness
– Disciplinary Actions
– Past Performance
– Absence Rates
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- 51. © Empower Management Consulting LLC - All Rights Reserved
Roles & Responsibilities
HR Management Supervisors Subordinates
• Develop & Implement • Assign Objectives, KPIs, • Set Individual SMART
Strategic PM System and Priorities for each Objectives
• Train End-Users Subordinate • Clarify Expectations
• Coordinate the Process • Conduct Ongoing Work- (KPIs) with Supervisor
Progress Review • Work as a Team-Player
• Monitor Outcomes
• Provide Constructive and Collaborate with all
• Keep Records and Performance Feedback Colleagues
Compile Analyses/Reports
• Avoid Rating Mistakes • Develop Value-Added
• Assist Supervisors in Results
dealing with Poor • Rationalize and Justify
Performance and Appraisal Decisions with • Report Progress and seek
Competency Gaps Events and Facts Help when needed
• Mediate or Arbitrate • Identify Performance • Participate in the 360°
Employees’ Grievances Deficiencies Assessment (if needed)
• Administer Reward & • Formulate Performance • Exchange Constructive
Recognition Programs and Improvement Plans Feedbacks
Training Courses • Follow-up & Follow-up!! • Be Optimistic!!!
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- 53. © Empower Management Consulting LLC - All Rights Reserved
Contact Us!
Mohamad J. Samman
Founder & Managing Partner
Empower Management Consulting LLC
MJS@EmpowerMC.com
www.EmpowerMC.com
Mobile (+974) 586-1741
Phone (+974) 411-7561
Fax (+974) 479-5917
P.O. Box 11537 - Doha, State of Qatar
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