Learn How to Setup, Implement & Monitor Effective Benchmarks for Departmental and Corporate Growth Using Result-Driven KPI Initiatives.
KPI Measurements for Employee & Performance
Know how to effectively use KPI to manage people and
their performance. This will mean you can effectively set
goals, measure their performances, provide feedback as
well as giving all a clear picture of what is important.
KPI Measurements for Departments & Company.
Learn how you can use KPI to improve various functions
in your organization including for departments, business
units including new or existing business ventures
8. http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the OBJECTIVE of a
Performance Management
System?
• What is the ultimate objective of a Performance
Management System?
• „Performance‟ – achievement,
• „Management‟ – controllable, improvement
• „System‟ – predictable outcome, autorun
Summary?
• A Predictable process to Improve Controllable
Achievements
10. http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the OBJECTIVE?
Succession Planning (Business
Continuity)
Talent Management
Differentiation
Performance Management System
Budgeting + Planning
BSC and KPIs
Strategy
Business Model
Business Strategy
Execution
Talent
Management
14. http://totallyunrelatedrandomanddebatable.blogspot.com/
“…in the past 18 months, we have heard
that profit is more important than revenue,
quality is more important that profit,
people are more important than profit,
customers are more important than our
people, big customers are more important
than small customers, and that growth is
the key to our success. No wonder our
performance is inconsistent"
CEO, Anonymous
15. http://totallyunrelatedrandomanddebatable.blogspot.com/
Before we start…
In the old days of HR…
• Average training hours per staff
• % of staff attending training
• # of training programs
• % of training programs conducted
• Training needs analysis conducted
• Competency models developed
• Training budget as % of payroll
What’s wrong with this picture?
20. http://totallyunrelatedrandomanddebatable.blogspot.com/
Before we start…
Which comes first?
1. Strategies -> KPI?
2. KPI -> Strategies?
•already know our priorities, aware of all
strategy options available
•creating something UNIQUE, INNOVATIVE
and DISRUPTIVE e.g. Air Asia
•conducting a business Turnaround e.g. MAS
23. http://totallyunrelatedrandomanddebatable.blogspot.com/
KPIs and Behavior
Before: “Handle Time” Per Call
• Motivated Call Centre staff to transfer callers,
getting rid of complainers, making them
someone else‟s problem
• Callers at 45% chance of being transferred
• 7,000 customers each week suffered transfers 7
times or more
25. http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Contracting
Model
Review performance &
results
- provide feedback
Provide coaching & counselling
Discuss and agree on objectives &
key measures
Prioritise the accountabilities agreed upon and discuss on competencies
required for the job.
Discuss &
agree on standards for performance
Discuss and agree on role accountabilities
Grievance level
Absenteeism
Discipline issue
Poor workethics
Unclear
ResultsDriven
Low Level of trust & commitment (between team leader and team member)
Procedure
driven
High
Degreeandclarityofjobresults
High level of employee empowerment
High employee performance
High employee satisfaction
High employee involvement
Challenging working environment
Optimum HRM cost structure
High
Visionled
Step 5
Step 4
Step 3
Step 2
Step 1
Performance Contracting Model
28. District Engineer
Duties and
Responsibilities
If stated as Accountabilities then the job
must produce :
Control, operate and
maintain the District
Distribution System
Ensure uninterrupted supply to
consumers in the district by operating
the District Distribution System.
Manage major supply
projects to customers in
the district.
Ensure satisfaction of the major customers
in the district by managing supply and
Distribution.
Supervise all technical
staff in the district.
Ensure high performance and Productivity
of technical staff by adopting proper human
resource management methods on
selection, training, coaching, counselling
and motivation.
Plan and design the High
voltage system
Ensure availability of adequate supply for
future needs of industries in the district by
planning and designing the High voltage
System
35. http://totallyunrelatedrandomanddebatable.blogspot.com/
Financial
“To satisfy our
stakeholders, what
Financial objectives must
we accomplish?”
Internal Process
“To satisfy our customers, in
which internal business
processes must we excel?"
Customer
“Who are our target
customers?
What is our value
proposition?”
Learning & Growth
“What capabilities and tools
do our employees require to
help them execute our
strategy?
Balanced Scorecard:
Corporate
36. http://totallyunrelatedrandomanddebatable.blogspot.com/
Mission
“Who are our targets?
What is our value
proposition?”
Internal Process
“To satisfy our targets, in
which internal processes
must we excel?"
Learning & Growth
“What capabilities and tools
do our staff require to help
them execute our strategy?
Financial
“To fulfill the Mission,
what Financial, how do
we fund Internal
Processes?”
Balanced Scorecard: NGOs,
Non-Profits, Governments
37. http://totallyunrelatedrandomanddebatable.blogspot.com/
Side notes on BSC
1. BSC should be a Thought Process and a Tool
not a Religion (e.g. Excel™ vs. Budgeting)
2. BSC ≠ Appraisal
3. New BSC implementations should start linking
with Budgeting right from the beginning
4. The „proper‟ BSC approach should rightly fully
be heavily customized to the organization
5. „Strategic Planning‟ trainings should be
provided before „BSC‟ trainings
6. Clear definitions for Accountability vs. Impact
vs. Influence vs. Assistance
40. http://totallyunrelatedrandomanddebatable.blogspot.com/
Financial
Learning &
Growth
Internal
Process
Customers /
Distributors
Example: 1st Level BSC &
KPIs
Profit after Tax. Revenue. Cash-to-cash cycle. Operating
cash flow
Customer Complaints. Customer Acquisition Rate. Product
Availability. Product Quality & Service. Renewal Annual
Subscription. Distributor Rank Achievement. No. of Active
Distributor. No. DC/Regional Sales. Distributor with commission
Customer Database Availability. Accuracy of Forecast Planning.
Continuous Improvement. Response Time to Customer Needs.
Perfect Order Fulfillment. Inventory Turnover. Number of Effective
Sponsoring Program. On Time Delivery. No. of Effective Training.
Number of Effective A&P
% of staff evaluated on Core Competency Framework. % of staff
with Career Development Plans. No. of training hours completed
per staff. % of staff with access to strategic information. Q12
Index. % staff evaluated on Culture alignment
45. http://totallyunrelatedrandomanddebatable.blogspot.com/
Financial
“To satisfy our
stakeholders, what
Financial objectives must
we accomplish?”
Internal Process
“To satisfy our customers, in
which internal business
processes must we excel?"
Customer
“Who are our target
customers?
What is our value
proposition?”
Learning & Growth
“What capabilities and tools
do our employees require to
help them execute our
strategy?
Cause & Effect: Strategy
46. http://totallyunrelatedrandomanddebatable.blogspot.com/
Top Performers and the „No
Contribution‟ Problem
Lagging
Leading
Historical, Outcome, Results, 1st
Level, Usually Financial or
tangible, Quarterly and Annually
Current, Indicators, Drivers, 2nd
Level onwards, usually non-
financial or intangible, Weekly,
Monthly and Quarterly
50. http://totallyunrelatedrandomanddebatable.blogspot.com/
Sample: Other 1st Level KPIs
across industries…
Financial Services Retail Telecommunications
•Maximize ARPU
•Minimize Churn
•Mutichannel customer
service
•Understand customer behavior
related to customer conversion,
acquisition, and retention
•Single view of customer
•Multichannel customer
experience
•Personalized customer
experience
•Anticipate and prevent churn
despite compensation
•Increase number of products
per customer
•Turn call center information
opportunity to up-sell and
cross-sell
•Increase customer
satisfaction and loyalty
Hospitality Travel & Leisure Manufacturing
•Personalized customer
experience
•Maximize share of wallet
•Player/customer loyalty
•Multichannel customer
service
•Increase customer loyalty and
preference
•Maximize customer revenue
•Improve service quality and
efficiency
•Capture and close sales
opportunities
•Single view of customers
across supply chain
•Zero-error order capture
•Streamline opportunity to
cash processes
•Leverage investment in ERP
and backoffice systems
57. http://totallyunrelatedrandomanddebatable.blogspot.com/
Rating Scale
≥ 105 million kilo of A5
98 million kilo of A4
95 million kilo of A3
94 million kilo of A2
≤ 93 million kilo of A1
Key Results KPIs Objectives
Ensure the achievement of current
production targets within cost
specification by regularly
monitoring production reports and
directing corrective action, where
necessary.
1.Production
targets/figures
2.Variance in
operating expense
budget
1.95million kilogram of Product A
2.Within budgeted factory cost
i.e. RM20 million
62. http://totallyunrelatedrandomanddebatable.blogspot.com/
The McPlaybook*
Make it easy to eat
• 50% drive-thru
• Meals held in one
hand
Make it easy to prepare
• High Turnover
• Tasks simple to learn
& repeat
Make it quick
• “Fast Food”
• Tests new products
for Cooking Times
Make what customers want
• Prowls market for new
products
• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
73. http://totallyunrelatedrandomanddebatable.blogspot.com/
Market Discipline
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and
hassle
Lowest overall cost of
ownership
"A no-hassles firm"
Convenience and speed
Reliable product and
service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and
flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product
Leadership
Operational
Excellence
Customer
Intimacy
• Cost
• Convenience
• TCO
• Features,
Benefits
• Limited
Range
• Solutions
• Customization
• Breadth &
Depth
74. http://totallyunrelatedrandomanddebatable.blogspot.com/
Market Discipline
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and
hassle
Lowest overall cost of
ownership
"A no-hassles firm"
Convenience and speed
Reliable product and
service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and
flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product
Leadership
Operational
Excellence
Customer
Intimacy•Air Asia
•LV
•Ramly
78. http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational
Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent
information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by
Fact
• Easy to do
business with
• Have it your way
(customization)
• Market segments
of one
• Proactive, flexible
• Relationship and
consultative
selling
• Cross selling
Product Leadership
• New, state of the
art products or
services
• Risk takers
• Meet volatile
customer needs
• Fast concept-to-
counter
• Never satisfied -
obsolete own and
competitors'
products
• Learning
organization
Alignment & Consistency:
Disciplines, Priorities, and KPIs
80. http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence
(low cost producer)
Product Leadership
(best product)
Customer Intimacy
(best total solution)
Alignment & Consistency
HP well-balanced
portfolio, mass
customization
Acer super lean
cost structure,
aggressive pricing
Apple powerful
products, premium
pricing, limited range
Still Doing
well in
2009/2011
85. http://totallyunrelatedrandomanddebatable.blogspot.com/
Growth Strategy
1. Base Retention
2. Share Gain
3. Positioning4. Adjacent Market
5. New Business
GROWTH
“Double-Digit Growth”, Michael Treacy
www.myCNI.com.my www.OOBEY.com
•Increase switching cost
•Customize products
•Preempt Defections
•Brand
•Neutralize Competitor
advantages
•Superior Value
•Buy market share
•Spot growth opportunities
•Organized search
•Promising Market?
•Make or Buy?
86. http://totallyunrelatedrandomanddebatable.blogspot.com/
How Markets determine
Growth Strategies (1)
• Growth Rate
Growth
Rate
Strategy Why?
Fast 1. Market
Positioning
2. Share Gain
3. Base
Retention
•Maintain market share in strategic
segments
•Prepare for market decline
•Competitors focus too much on
getting new customers
Flat 1. Base
Retention
2. Share Gain
(Acquisitions)
•Lose customers slower than
competitors
•Create scale economics, squeeze
costs
87. http://totallyunrelatedrandomanddebatable.blogspot.com/
• Churn Rate
Churn
Rate
Strategy Why?
Low 1. Share Gain
(Acquisitions)
2. Adjacent
Markets
•Buying customer base is
cheaper than own efforts
•New products, old customers
strategy
High 1. Base
Retention
2. Share Gain
3. Adjacent
Market
•Lose customers slower than
competitors
•Customers are always open to
the best value and offer
•Desperate to gain revenue
How Markets determine
Growth Strategies (2)
92. http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent
information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by
Fact
• Easy to do business
with
• Have it your way
(customization)
• Market segments of
one
• Proactive, flexible
• Relationship and
consultative selling
• Cross selling
Product Leadership
• New, state of the
art products or
services
• Risk takers
• Meet volatile
customer needs
• Fast concept-to-
counter
• Never satisfied -
obsolete own and
competitors'
products
• Learning
organization
Strategy: Disciplines,
Priorities, and KPIs
93. http://totallyunrelatedrandomanddebatable.blogspot.com/
• Operational Excellence
• Move know-how from top performing
units to others
• Benchmark against best in class
• Ensure operations training for all
employees
• Use disciplines like TQM for continuous
learning to reduce costs and improve
quality
Strategy: Value Disciplines
99. http://totallyunrelatedrandomanddebatable.blogspot.com/
Intro: Market Discipline
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
Product/Service Attributes
√
√
√
√
Service Trusted
Brand
Relationship Image
Customer Intimacy: Personal service tailored to
produce results for customer and build long-term
relationships
Relations
109. http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence
•Central authority, low level of empowerment
•High skills at the core of the organization
•Disciplined Teamwork
•Process, product- driven
•Conformance, 'one size fits all' mindset
•Integrated, low cost transaction systems
•The system is the process
•Command and control
•Quality management
Organization,
jobs, skills
Management
systems
Information and
systems
Culture, values,
norms
Each Discipline Requires
Different Priorities & Resources
110. http://totallyunrelatedrandomanddebatable.blogspot.com/
Organization, jobs,
skills
Management
systems
Information and
systems
Culture, values,
norms
Product Leadership
•Ad hoc, organic and cellular
•High skills abound in loose-knit structures
•Concept, future-driven
•Experimentation and 'out of the box' mindset
•Person-to-person communications systems
•Technologies enabling cooperation
•Rewarding individuals' innovative capacity
•Risk and exposure management
•Product Life Cycle profitability
Each Discipline Requires
Different Priorities & Resources
111. http://totallyunrelatedrandomanddebatable.blogspot.com/
Organization, jobs,
skills
Management
systems
Information and
systems
Culture, values,
norms
Customer Intimacy
•Empowerment close to point of customer contact
•High skills in the field and front-line
•Customer-driven
•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and
external information
•Strong analytical tools
•Customer equity measures like life time value
•Satisfaction and share management
•Focus on „Share of Wallet‟
Each Discipline Requires
Different Priorities & Resources
116. http://totallyunrelatedrandomanddebatable.blogspot.com/
• Operational Excellence
• Move know-how from top performing
units to others
• Benchmark against best in class
• Ensure operations training for all
employees
• Use disciplines like TQM for continuous
learning to reduce costs and improve
quality
Strategy: Value Disciplines
120. http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence
• Providing reliable products and services at
competitive prices with minimal difficulty and
inconvenience
• Role of IT
– Optimizing business processes for efficiency (e.g.,
workflow automation)
– Substituting information systems for inventory
– Using integrated information systems to coordinate
order entry with production, distribution and service
121. http://totallyunrelatedrandomanddebatable.blogspot.com/
Product/Service Leadership
• Producing a continuous stream of state-of-the-art
products and services that are attractive to
customers
• Role of IT
– Optimizing business processes for product
development speed
– Providing support for quick product-related decision-
making (e.g., design, pricing, advertising)
– Information Awareness for discovering new product
ideas
– Knowledge Management for assimilating and
disseminating information
122. http://totallyunrelatedrandomanddebatable.blogspot.com/
Customer Intimacy
• Customizing products and services to increasingly
fine definitions of customer segments
• Role of IT
– Enhancing relationships through the use of IT-based
channels
– Optimizing business processes for flexibility and
responsiveness (e.g., intelligent call centers, flexible
manufacturing systems)
– Database marketing and other data-mining tools for
customer profiling and segmentation
– Decision Architecture empowers employees closest
to the customers
123. http://totallyunrelatedrandomanddebatable.blogspot.com/
Operational Excellence
• Role of IT
– Optimizing business processes for
efficiency (e.g., workflow automation)
– Substituting information systems for
inventory
– Using integrated information systems to
coordinate order entry with production,
distribution and service
– Examples: Wal-Mart, Federal Express,
Seven Eleven Japan
124. http://totallyunrelatedrandomanddebatable.blogspot.com/
Customer Intimacy
• Role of IT
– Enhancing relationships through the use of IT-
based channels
– Optimizing business processes for flexibility and
responsiveness (e.g., intelligent call centers,
flexible manufacturing systems)
– Database marketing and other data-mining tools
for customer profiling and segmentation
– Decision Architecture empowers employees
closest to the customers
– Examples: Amazon.com, Merrill Lynch, Kraft
125. http://totallyunrelatedrandomanddebatable.blogspot.com/
Product/Service Leadership
• Role of IT
– Optimizing business processes for product
development speed
– Providing support for quick product-related
decision-making (e.g., design, pricing,
advertising)
– Information Awareness for discovering new
product ideas
– Knowledge Management for assimilating and
disseminating information
– Examples: Intel, Microsoft, Nokia, Sony
127. http://totallyunrelatedrandomanddebatable.blogspot.com/
B2B/B2G BSC Matching
Revenue
Base
Retention
Share Gain Positioning Adjacent
Market
New
Business
Financial
Learning & Growth
Internal
Process
Customers
Cost Margin Cash Flow Asset
Operational
Excellence
Product
Leadership
Customer
Intimacy
Investment
Strategy
Competencies Information
Systems
Motivation,
empowerment,
alignment
Satisfaction
Customer/Client/
Government BSC
Revenue
Base
Retention
Share Gain Positioning Adjacent
Market
New
Business
Financial
Learning & Growth
Internal
Process
Customers
Cost Margin Cash Flow Asset
Operational
Excellence
Product
Leadership
Customer
Intimacy
Investment
Strategy
Competencies Information
Systems
Motivation,
empowerment,
alignment
Satisfaction
Your BSC
1. Draw your „customer‟s‟ BSC
2. Match their CP/IP with your CP
3. Identify IPs that support/conflict
131. http://totallyunrelatedrandomanddebatable.blogspot.com/
Dangers of Best Practice
and Benchmarking…
Company
Performance
high
low
„Best Practice‟
theories
low high
zero
Perfor
mance
Trend
line
“Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005
132. http://totallyunrelatedrandomanddebatable.blogspot.com/
Dangers of Best Practice
and Benchmarking…
Company
Performance
high
low
„Best Practice‟
theories
low high
zero
Perfor
mance
Trend
line
“Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005
133. http://totallyunrelatedrandomanddebatable.blogspot.com/
Dangers of Best Practice
and Benchmarking…
Selection Bias:
1. Success Traits = Failure Traits
2. Successful Cases + Failure Cases
3. Worst effects in „Old‟ industries
4. Overvalue „best practice‟ theories
5. Current accomplishments unfairly magnified by
past achievements
6. Reverse Causal
134. http://totallyunrelatedrandomanddebatable.blogspot.com/
Dangers of Best Practice
and Benchmarking…
Also known as „Beware of Consultants‟:
1. Selection Bias
2. Big vs. Small company
3. Selective success stories
4. Correlation vs. Causal
5. Survey problems
6. Practical vs. Glamour-to-have
7. Leaders who benchmark
137. http://totallyunrelatedrandomanddebatable.blogspot.com/
Sample: Other 1st Level KPIs
across industries…
Financial Services Retail Telecommunications
•Maximize ARPU
•Minimize Churn
•Mutichannel customer
service
•Understand customer
behavior related to customer
conversion, acquisition, and
retention
•Single view of customer
•Multichannel customer
experience
•Personalized customer
experience
•Anticipate and prevent churn
despite compensation
•Increase number of products
per customer
•Turn call center information
opportunity to up-sell and
cross-sell
•Increase customer
satisfaction and loyalty
Hospitality Travel & Leisure Manufacturing
•Personalized customer
experience
•Maximize share of wallet
•Player/customer loyalty
•Multichannel customer
service
•Increase customer loyalty
and preference
•Maximize customer revenue
•Improve service quality and
efficiency
•Capture and close sales
opportunities
•Single view of customers
across supply chain
•Zero-error order capture
•Streamline opportunity to
cash processes
•Leverage investment in ERP
and backoffice systems
138. http://totallyunrelatedrandomanddebatable.blogspot.com/
Sample KPIs for Each
Discipline
Operational
Excellence
• Price
• Selection
• Convenience
• Zero Defects
• Growth
Customer Intimacy
• Customer
Knowledge
• Solutions Offered
• Penetration
• Customer Data
• Customer-success
focus
Product Leadership
• Marketing
• Functionality
• # of Successes
• # of Failures
• Learn from key
users
• Interdisciplinary
teams
• Pipeline
147. The Planning & Budgeting Process
Stages Output Month
1. Pre-Planning
Analysis &
Brainstorming
•Current ½ yr budget & revision
•Next yr options and budgets required
July -
Sep
2. High-level
Group Strategy
and Targets
•High-level strategy of Group Corp Plan.
•Circulation of Main Budget simulation to
all departments
Sep
3. Functional
Strategy and
Budgets
•BSC & Budget preparation by HODs to
HODivs
Sep - Oct
4. Formal Results
Planning
•BSC & Budget to CEOs, followed by BOD
•Revised and Finalized Plans and Budgets
Oct-Nov
5. Communication
and Cascading
•Presentation of Group Budget and
Planning summary & distribution
•Communication of Highlights to the field
and staff
Nov-Jan
150. http://totallyunrelatedrandomanddebatable.blogspot.com/
Problems, problems and
more problems…
1. No serious budget to tackle key risks
2. Too much optimism or pessimism
3. Innovation vs. Results vs. Baseline
4. Investment ≠ Portfolio Management
5. Top down vs. Bottom up
6. Good to have vs. Need to have
7. Line Manager not thinking like Investors
8. Too focused on KPI and BSC
9. Budget allocation seen as „popularity‟ vote
10.Public Listing -> pressure for short-term
budgets and results vs. long-term innovation
152. http://totallyunrelatedrandomanddebatable.blogspot.com/
Data Elements
and Collection
Logic:
An online survey will be administered to clients, both internal* (within LLSG
and SJHC) and external (those who refer in work e.g. HICL).
*Physicians, Nurses, Ward Clerks, PSA/TSA, Managers/Coordinators,
Researchers, Students, Allied Health Professionals, others.
Dave Schaus will create the survey form and collect the data with Omniform
Perform. Data will exported to MS Access for review and analysis.
Calculation
Formula:
For each question:
# survey participants response for each rating (1-4)/ total # of survey
participants = x/100 = x%
Frequency: Yearly
For the first initiative, customers will be resurveyed once training is completed to see if there has been an increase in customer
satisfaction.
Baseline: Not known
Target:
Target Rationale:
Limitations and Exclusions:
Analysis Considerations:
Initiatives: Develop and administer Customer Service Training for existing and new
employees
References:
Sample 1: KPI Data
Collection Form
155. http://totallyunrelatedrandomanddebatable.blogspot.com/
Sample 2: KPI Data
Collection Form
KPI Name
Description
Objective
Type Quantitative Qualitative
Effort Low Medium High
Unit
Assessment
Method
Possible Tools
Analysis
Frequency
Day Week Month
Quarter Year Year+
Comments
225. http://totallyunrelatedrandomanddebatable.blogspot.com/
Improving Performance
Performance
Improvement Area
Intervention Methods Effectiveness of
Direct Incentive
Measures
Skill Deficiency •Off site Training
•Job redesign
•On-the-job training
•Process Redesign
Yes
Performance Punishing •Review performance management
processes
•Study on supervision style of Team
Leader
•Remove punishment
No
Non-performance
rewarding
•Proper performance monitoring
process
•Arrange positive consequence
No
Coordination &
Teamwork
•Communication of clear direction
and goals
•Shared Accountabilities
•Focus on Team Competencies
Partly
Behavioural •Communication of clear behavioural
indicators
•Focus on Behavioural
•Coaching and Counselling
Partly
Supervision Style •Leadership styles of team leaders
•Regular tracking on morale of team
members
Yes but not for team
members
229. http://totallyunrelatedrandomanddebatable.blogspot.com/
More Problems….
1. cost of evaluation vs. gains of evaluation
2. defer achievements of a good year to next
3. barely achieve so that next target is not high
4. spread improvements over several years
5. value reducing actions to increase performance
6. most ratings are 4 or 5, new people are 3
231. http://totallyunrelatedrandomanddebatable.blogspot.com/
Issues and Challenges
1. HODs unclear
2. HODs disagree/unsupportive
3. HODs not committed
4. Functional silos
5. HODs not willing to openly differentiate
6. Incompetent superiors/HODs
7. Difficult to evaluate
8. Aligning with Business Goals
9. Unsynchronized and unmonitored training and
development
234. http://totallyunrelatedrandomanddebatable.blogspot.com/
Which Company?
American Customer Satisfaction Index (ACSI)
• 64 out of100-point scale: lower than IRS (Tax)
• 2nd last among 30 companies surveyed
• Lowest 5% among 223 companies surveyed
• Bottom 5% of all measured private sector
companies
• 500 million customers
2010 American Customer Satisfaction Index
(ACSI) E-Business Report