Presentation to:
Who Are Acelero?
¾ Acelero is a provider of performance management and related software.
¾ We are NOT consultants.
¾ However, we have a lot of experience in the real world.
¾ Acelero’s sole purpose is to assist
organisations achieve their strategic goals through optimising the performance of their people.
What is Performance Management?
¾
The process by which organisations ensure
that their people:
•
Are aligned to achievement of the organisation’s overall goals; andWhy Do Performance Management?
¾
We always have.
¾
An MBA qualified guy said it was a good
idea.
¾
Plenty of other companies are doing it, so it
has to be good.
The People Element to Success
¾
We firmly believe that increased people
performance delivers better business
performance.
Put another way:
“Warm and Fuzzy”
vs
Bottom Line
Consider a company with 2000 employees
and an annual wages bill of $120 mill and
Profit Before Tax of $20m.
¾
A 1% productivity improvement equates
to an additional pre tax profit of $1.2 m.
¾
The $1.2m represents a 6% increase in
Where do we Start?
¾
No matter how large the organisation, all
performance begins with the individual.
¾
Individual performance then flows onto
teams, divisions, business units and finally
to the whole organisation.
¾
Hence, each individual
needs to be
Performance Managed.
Undertaking Performance
Management
¾
Successful PM requires:
•
A desire to achieve success through people. This must come from the top of theorganisation.
•
A Performance Management methodology.Undertaking Performance
Management
(cont)
¾
Successful PM requires:
•
Appropriate training to undertake the task.PM Methodology
¾ What to assess:•
Objectives•
Behaviours / Values•
Competencies•
Others ¾ Other:•
Rating system•
Frequency of reviewPM Methodology: What to Assess?
¾
Objectives:
These are the “Hard Edged” components.
Examples:
•
Sales of X within 6 months at a specified average margin.PM Methodology: What to Assess?
¾
Behaviours / Values:
These are the “How we do business in our
organisation” components.
Examples:
•
Importance of teamwork•
Demand for integrityPM Methodology: What to Assess?
¾
Competencies:
These are the “skills” components.
Examples:
•
Can be technical competencies that are job specific.•
Managerial competencies such as leadership, flexibility, achievement motivation andPractical Tips
¾
Keep it simple and focussed:
Resist the temptation to have too many obectives or other criteria in the PM process.
¾
Be very clear about the relative
importance of each performance
component being measured
There is only a maximum of 100% of an employees time/effort available.
Practical Tips
¾
Ensure Objectives set at the beginning
of the review period:
Sounds obvious, but here are plenty of examples of where it just does not happen.
¾
Objectives should be assessed more
than just once a year:
PM System
¾
The main types of systems are:
•
Paper based•
Templates ( using Word, Excel or Notes )•
On line¾
In our view a Performance Management
Practical Tips
¾
The System Must be Easy to use:
If it’s not easy to use, it won’t get done.
¾
Address all the Components:
All elements of performance should be assessed including objectives, behaviours and
competencies. There may be others specific to you.
Practical Tips
(cont)¾
Demand Consistent Outcomes:
You need consistency and quality in the
performance management process, ensuring that there is clarity of understanding for the people involved.
¾
Focus on Communications:
The emphasis must be on facilitating the one-on-one discussion between a person and their
Practical Tips
(cont)¾
Conduct Frequent Reviews:
The more often PM reviews are conducted, the more likely that the desired results are obtained
¾
Get Control over the Process:
The PM process must be monitored to ensure that it is completed by the due date.
Practical Tips
(cont)¾
Ensure Strategic Alignment:
Align employee objectives to company/business unit/ divisional strategies.
¾
Provide a Clear Focus:
Objectives must be weighted so that the important things get done.
Practical Tips
(cont)¾
Obtain Actionable Outputs:
Data must be released from its “filing cabinet prison” so that valuable information can be obtained.
This covers both aggregated data as well as trended data
Practical Tips
(cont)¾
Ensure the System has Flexible
Reporting:
Information needs to be viewed at multiple levels which will help pinpoint trends and issues:
•
Individual•
Division•
Business unit•
GroupPractical Tips
(cont)¾
Ensure that the System fits in with Your
Culture:
Use your own methodologies that are tailored for your needs. One size does not fit all!
¾
Get the System in as Fast as Possible:
Rapid deployment of a PM system will mean that you will start to get bottom line results faster.
Considerable Payback via “Alignment
”
Performance Management results; ¾Objectives aligned to strategic goals
¾Greater frequency of review
¾Greater compliance
¾Meaningful measures
which moves the Bell Curve A 1% move in the Bell
Curve creates at least a 3% productivity gain
Skills Required
¾
To get the best results from your PM
process managers need to be capable in
the following areas:
•
Providing constructive feedback•
Dealing with negativity•
Resolving disagreements•
Motivating employeesActing on the Information
¾
Taking action on the information from the
PM system is critical.
¾
Use the information as input into an
individual’s development plan.
¾
Use the information to measure “relative”
performance.
Concluding Comment
¾
“It’s all too hard, so I will do nothing”
¾ Result:¾ Without a formal approach to Performance Management, people will make their own assessments of performance. They will do it in their own way and based on their values and priorities.
Presentation to:
