2011
2011
Edwin Ebreo
Edwin Ebreo
ExeQserve Corporation ExeQserve Corporation2108, 88 Corporate Center, Sedeno St. Makati 2108, 88 Corporate Center, Sedeno St. Makati City
City
Performance Management System
Performance Management System
Development and Implementation
Development and Implementation
GOALS:
GOALS:
a.
a. Develop a comprehensive Performance Management System aimed at improvingDevelop a comprehensive Performance Management System aimed at improving employee performance;
employee performance; b.
b. Develop a more objective system for rating performance;Develop a more objective system for rating performance; c.
c. Establish a rewards system that Establish a rewards system that is focused on rewarding exceptional results andis focused on rewarding exceptional results and encourage continuous improvement;
encourage continuous improvement; d.
d. Apply a change management strategy Apply a change management strategy to ensure integration of the new to ensure integration of the new performanceperformance management system into COMPANY
management system into COMPANY’s organizational’s organizationalculture; andculture; and e.
e. Equip employees with the necessary tools to Equip employees with the necessary tools to plan, monitor, provide feedback, developplan, monitor, provide feedback, develop capacity, evaluate and reward performance.
capacity, evaluate and reward performance. RATIONALE:
RATIONALE:
In order for any performance management system to be used effectively, members of the In order for any performance management system to be used effectively, members of the organization need to have a thorough understanding of how performance management organization need to have a thorough understanding of how performance management
systems are designed to align employee performance with the organization’s
systems are designed to align employee performance with the organization’s goals. Managersgoals. Managers must learn how to effectively use the performance management tools for setting clear goals, must learn how to effectively use the performance management tools for setting clear goals, monitoring performance, providing feedback, developing capacity to perform, appraising monitoring performance, providing feedback, developing capacity to perform, appraising performance as objectively as possible and rewarding good performance. We underlined good performance as objectively as possible and rewarding good performance. We underlined good performance because it is critical for employees to know what is being recognized. When performance because it is critical for employees to know what is being recognized. When rewards do not clearly point to the good performance, employees become confused about rewards do not clearly point to the good performance, employees become confused about what defines it.
what defines it.
ExeQserve Corporation
ExeQserve Corporation Consultants believe that the measure of a performance managementConsultants believe that the measure of a performance management
system’s effectiveness is general improvement in employees’ performance. If the system can’t system’s effectiveness is general improvement in employees’ performance. If the system can’t
do this, it is not worth the time and money invested in it. For performance improvement to do this, it is not worth the time and money invested in it. For performance improvement to take place however, users must use the system and tools according to their pu
take place however, users must use the system and tools according to their purpose. rpose. This canThis can only happen if the users accept the role they play in the performance management scheme only happen if the users accept the role they play in the performance management scheme and know exactly how t
and know exactly how to use the availabo use the available tools for performance le tools for performance management. management. These weThese we believe are the causes and effects that we must address if we are to implement a useful believe are the causes and effects that we must address if we are to implement a useful performance management system.
performance management system.
We propose to make some considerable revisions in COMPANY
We propose to make some considerable revisions in COMPANY’s existing system to achieve’s existing system to achieve this proposal’s objectives. Our major
this proposal’s objectives. Our major strategy includes:strategy includes:
1.
1. Getting key employees involved in the revision process;Getting key employees involved in the revision process; 2.
2. Training all involved on the concepts, development and use of performanceTraining all involved on the concepts, development and use of performance management tools; and
3.
3. Follow a change management model to ensure institutionalization of the desiredFollow a change management model to ensure institutionalization of the desired changes and the integration of
changes and the integration of performance management in COMPANYperformance management in COMPANY’s culture.’s culture.
ExeQserve consultants have the experience and tools to carry out all attendant actions ExeQserve consultants have the experience and tools to carry out all attendant actions related to aforementioned objectives.
related to aforementioned objectives.
PERFORMANCE MANAGEMENT SYSTEM COMPONENTS
PERFORMANCE MANAGEMENT SYSTEM COMPONENTS
We propose to establish a
We propose to establish a comprehensivecomprehensive performance management system that has performance management system that has the following components:
the following components: 1.
1. PlanningPlanning – –Setting performance goalsSetting performance goals and behavioral expectations
and behavioral expectations a.
a. Key result areasKey result areas b.
b. Key performance indicatorsKey performance indicators c.
c. Calibrated performanceCalibrated performance standards
standards d.
d. Clearer behavioral indicatorsClearer behavioral indicators and standard for each
and standard for each competency
competency 2.
2. MonitoringMonitoring – –Creating mechanisms forCreating mechanisms for regular monitoring of performance and regular monitoring of performance and giving feedback
giving feedback a.
a. Monitoring systemMonitoring system b.
b. Feedback mechanismFeedback mechanism 3.
3. Developing - Developing- Clarifying managers responsiClarifying managers responsibilities for developibilities for developing capacity for performanceng capacity for performance through coaching and training
through coaching and training a.
a. Performance discussion and coaching tacticsPerformance discussion and coaching tactics b.
b. Maximizing effect of training on performanceMaximizing effect of training on performance 4.
4. AppraisingAppraising – –Establishing tools for auto-generating key performance indicators forEstablishing tools for auto-generating key performance indicators for
performance evaluation and equipping managers to handle performance discussions more performance evaluation and equipping managers to handle performance discussions more effectively.
effectively. a.
a. Auto generating scores for key Auto generating scores for key performance indicatorsperformance indicators b.
b. Techniques for more objective appraisal of competenciesTechniques for more objective appraisal of competencies c.
c. Performance Appraisal discussion techniquesPerformance Appraisal discussion techniques 5.
5. RewardingRewarding - Establish policy for more effective use - Establish policy for more effective use of rewards to of rewards to reinforce positivereinforce positive performance.
performance. a.
a. Migrate to a new rewards system that reinforces and encourages consistent positiveMigrate to a new rewards system that reinforces and encourages consistent positive performance.
CHANGE MANAGEMENT COMPONENTS
CHANGE MANAGEMENT COMPONENTS
We believe that for We believe that for any change to be any change to be successful, it has to be successful, it has to be managed well. We are managed well. We are
using John Kotter’s 8 using John Kotter’s 8 --step process for step process for leading change as a leading change as a way of ensuring that all way of ensuring that all relevant issues and relevant issues and concerns are addressed concerns are addressed as we pave the way for as we pave the way for the new performance the new performance management system. management system. This change management framework shall guide the progress of the committee as we introduce This change management framework shall guide the progress of the committee as we introduce changes and fine-tune tools for
changes and fine-tune tools for performance management.performance management.
Schedule of Activities Schedule of Activities
PROJECT
PROJECT STAGE STAGE CHANGECHANGE
MANAGEMENT MANAGEMENT ACTIVITY APPROXIMATE ACTIVITY APPROXIMATE TIMELINE TIMELINE RESULT/OUTPUT RESULT/OUTPUT Stage 1: Stage 1: Project Briefing Project Briefing 1. 1. CreateCreate urgency urgency Orientation Orientation Scoping Scoping 2
2 hours hours Proposed workProposed work plan with plan with milestones and milestones and deliverables deliverables Stage 2: PMS Stage 2: PMS Committee and Committee and Raters’ Training Raters’ Training 2.
2. Create guidingCreate guiding coalition coalition Training on Training on developing and developing and implementing implementing employee employee performance performance management management system system 2
2 training training days days PMSPMS
Development Development committee committee Finalized work Finalized work plan with plan with deliverables and deliverables and milestones milestones Stage 3: Stage 3: Developing the Developing the new performance new performance management management system policy system policy 3.
3. Create a visionCreate a vision for change for change Crafting the Crafting the performance performance management management system policy system policy 2
2 weeks weeks PMS PMS Draft Draft withwith Following Following components: components: 1. 1. GeneralGeneral policy policy 2. 2. GuidelinesGuidelines 3. 3. AppraisalAppraisal
PROJECT
PROJECT STAGE STAGE CHANGECHANGE
MANAGEMENT MANAGEMENT ACTIVITY APPROXIMATE ACTIVITY APPROXIMATE TIMELINE TIMELINE RESULT/OUTPUT RESULT/OUTPUT tools tools 4. 4. RewardsRewards system system Stage 4: Stage 4: Communicating Communicating the new PMS draft the new PMS draft for fine tuning for fine tuning
4. 4. CommunicateCommunicate envisioned envisioned change change 5.
5. Empower theEmpower the people people • • PresentationPresentation of draft policy of draft policy • • FeedbackFeedback solicitation solicitation • • FinalizationFinalization 1
1 week week Finalized policyFinalized policy (Included 1 day (Included 1 day training for all training for all raters) raters) Stage 5 & 6: Stage 5 & 6: DevelopmentDevelopment of of performance performance goals and goals and competencies competencies matrix matrix EstablishEstablish monitoring monitoring system per KPI system per KPI
6.
6. Create quickCreate quick wins
wins
•
• Submission of Submission of
departmental departmental and individual and individual metrics metrics •
• Launching of Launching of
performance performance monitoring monitoring matrix matrix 1
1 week week ComprehensiveComprehensive Performance Performance goals and goals and competency competency matrix matrix Stage 7: Stage 7: Performance Performance Appraisal dry run Appraisal dry run
7. 7. ConsolidateConsolidate and build on and build on gains gains •
• Pilot the tollPilot the toll
to one(1) unit to one(1) unit or or department department •
• Appraisal roleAppraisal role
playing playing workshop workshop
1 week
1 week ClearClear
expectations expectations on on performance performance appraisal appraisal events events Mastery oMastery o the the performance performance appraisal appraisal activities activities Stage 8: Formal Stage 8: Formal Implementation Implementation 8. 8. InstitutionalizeInstitutionalize the change the change •
• Formal launchFormal launch
of the new of the new performance performance management management system system • • CelebrationCelebration 1 day 1 day
2-DAY PERFORMANCE MANAGEMENT TRAINING DESIGN
2-DAY PERFORMANCE MANAGEMENT TRAINING DESIGN
Some people mistakenly assume that performance management is concerned only with Some people mistakenly assume that performance management is concerned only with following regulatory requirements to appraise and rate performance. Actually appraising following regulatory requirements to appraise and rate performance. Actually appraising performance is only
performance is only one partone part of the overall process (and perhaps the least important part.)of the overall process (and perhaps the least important part.) All organizations face the problem of directing the energies of their staff to the task of achieving All organizations face the problem of directing the energies of their staff to the task of achieving organizational goals and objectives. In doing so, organizations need to devise means to influence organizational goals and objectives. In doing so, organizations need to devise means to influence and channel the behaviors of their employees so as to optimize their contributions. and channel the behaviors of their employees so as to optimize their contributions. Performance management constitutes one of the major management tools employed in this Performance management constitutes one of the major management tools employed in this process. This is based on the premise that an individual's performance in a job is improved by process. This is based on the premise that an individual's performance in a job is improved by having definite goals, feedback about their performance and complemented by an appropriate having definite goals, feedback about their performance and complemented by an appropriate reward system.
reward system.
Considering the profound objectives of performance management, it is elementary that Considering the profound objectives of performance management, it is elementary that managers and supervisors learn to employ the
managers and supervisors learn to employ the tools within the system.tools within the system.
The goal of this course is to give the participants a clear view of what performance management The goal of this course is to give the participants a clear view of what performance management is all about and how to utilize it in achieving organizational objectives. At the end of this is all about and how to utilize it in achieving organizational objectives. At the end of this workshop, the participants should be able to go full circle in implementing a complete workshop, the participants should be able to go full circle in implementing a complete performance management system that includes the following activities:
performance management system that includes the following activities:
Setting performance goalsSetting performance goals
Monitoring performanceMonitoring performance
Developing employees’ capacity and capability to perform through training and coachingDeveloping employees’ capacity and capability to perform through training and coaching
Objectively appraising employees’ performanceObjectively appraising employees’ performance
Giving fair rewards and recognition for good performance.Giving fair rewards and recognition for good performance.
COURSE OBJECTIVES COURSE OBJECTIVES
At the end of the session, the participants are expected to be able to: At the end of the session, the participants are expected to be able to:
Define Performance Management;Define Performance Management;
Describe the requirements for the successful implementation of a performanceDescribe the requirements for the successful implementation of a performance management system.
management system.
Describe the roles managers and employees play in Describe the roles managers and employees play in the implementation of athe implementation of a performance management system.
performance management system.
Understand the components of Performance Management and how each Understand the components of Performance Management and how each relates torelates to their managerial or supervisory tasks;
their managerial or supervisory tasks;
COURSE OUTLINE COURSE OUTLINE
Process
Process Objectives Objectives Time Time ActivitiesActivities
Day
Day 1 1 30 30 mins mins Opening Opening ActivitiesActivities
Define PerformanceDefine Performance Management
Management
Describe theDescribe the importance of importance of managing managing performance in performance in contributing to the contributing to the achievement of achievement of organizational goals. organizational goals. 1 hour
1 hour Overview of Performance ManagementOverview of Performance Management
Introduction of the Performance ManagementIntroduction of the Performance Management Concept
Concept
Breaking traditional assumptions aboutBreaking traditional assumptions about performance
performance
The Roles of Organizational Leaders asThe Roles of Organizational Leaders as Performance Managers
Performance Managers
•
• Describe theDescribe the
requirements for the requirements for the successful successful implementation of a implementation of a performance performance management system. management system. 2 hours
2 hours Designing the SystemDesigning the System
•
• Designing the Performance Management PolicyDesigning the Performance Management Policy •
• Change management and enablement of theChange management and enablement of the
people involved. people involved.
•
• Enumerate ActivitiesEnumerate Activities
involved in Planning involved in Planning Performance
Performance
2 hours
2 hours Planning PerformancePlanning Performance
•
• Aligning Individual and Departmental ObjectivesAligning Individual and Departmental Objectives
with Organizational Objectives with Organizational Objectives
•
• KRA, KPI and KPOsKRA, KPI and KPOs •
• Clarifying behavioral expectationsClarifying behavioral expectations •
• Seeking Understanding, Acceptance andSeeking Understanding, Acceptance and
Commitment Commitment
•
• Enumerate theEnumerate the
activities involved in activities involved in monitoring monitoring performance performance 2 hours
2 hours Performance MonitoringPerformance Monitoring
•
• Measuring Performance based on standardMeasuring Performance based on standard •
• Setting up a Performance Monitoring SystemSetting up a Performance Monitoring System •
• Identifying Performance GapsIdentifying Performance Gaps •
• · Setting up · Setting up a performance feedback systema performance feedback system •
• Identify ways to helpIdentify ways to help
employees improve employees improve their performance their performance
2 hours
2 hours Developing the Employees Capacity to Developing the Employees Capacity to PerformPerform
•
• Various Activities Involved in AddressingVarious Activities Involved in Addressing
Performance Gaps Performance Gaps
•
• Training as an important tool for improvingTraining as an important tool for improving
performance performance
•
• ··Leaders’ role in ensuring success of trainingLeaders’ role in ensuring success of training
Day 2 Day 2
•
• Identify ways to helpIdentify ways to help
employees improve employees improve their performance their performance
3 hours
3 hours •• Coaching as an effective tool for improvingCoaching as an effective tool for improving
performance performance
•
• Understanding the Coaching MindsetUnderstanding the Coaching Mindset •
• Establishing an environment that is ideal forEstablishing an environment that is ideal for
coaching coaching
•
PERFORMANCE MANAGEMENT POLICY, GUIDELINES AND TOOLS FEATURES
PERFORMANCE MANAGEMENT POLICY, GUIDELINES AND TOOLS FEATURES
1.
1. PolicyPolicy a.
a. Policy StatementPolicy Statement b.
b. ScopeScope c.
c. ResponsibilitiesResponsibilities i.
i. For administrationFor administration ii.
ii. ImplementationImplementation iii.
iii. MonitoringMonitoring iv.
iv. ReviewReview Etc. Etc. d. d. FrameworkFramework 2. 2. GuidelinesGuidelines a.
a. Setting performance goalsSetting performance goals i.
i. Key result areasKey result areas ii.
ii. Key performance indicatorsKey performance indicators iii.
iii. StandardsStandards iv.
iv. Calibrating targets for fair evaluationCalibrating targets for fair evaluation b.
b. Monitoring performanceMonitoring performance i.
i. MechanicsMechanics ii.
ii. FeedbackFeedback c.
c. Developing capacity to performDeveloping capacity to perform i.
i. Linkage between PMS and trainingLinkage between PMS and training ii.
ii. Coaching to improve performanceCoaching to improve performance d.
d. Evaluating performanceEvaluating performance i.
i. Evaluating resultsEvaluating results ii.
ii. Auto-generated scoresAuto-generated scores iii.
iii. Evaluating competenciesEvaluating competencies e.
e. Rewarding performanceRewarding performance
•
• Go through the stepsGo through the steps
of appraising of appraising performance performance
•
• Pursue continuousPursue continuous
performance performance improvement through improvement through the performance the performance 3 hours
3 hours Appraising PerformanceAppraising Performance
•
• Performance AppraisalPerformance Appraisal – –Doing it rightDoing it right •
• Guidelines for conducting performance appraisalGuidelines for conducting performance appraisal
interviews interviews
•
• Setting Developmental Action plan to addressSetting Developmental Action plan to address
performance gaps performance gaps
•
• Use rewards andUse rewards and
recognition to recognition to continuously motivate continuously motivate employees to perform employees to perform 1 hour
1 hour Rewarding and Recognizing Good Rewarding and Recognizing Good PerformancePerformance
•
• Impact of Rewards and RecognitionImpact of Rewards and Recognition •
• Establishing a rewards and recognition programEstablishing a rewards and recognition program •
• Individual Vs. Team-based rewardIndividual Vs. Team-based reward •
• · Various Tactics for recognizing good· Various Tactics for recognizing good
performance performance Set Action plans to apply
Set Action plans to apply learning in the workplace learning in the workplace
1
i.
i. Performance bonusPerformance bonus ii.
ii. Merit increaseMerit increase iii.
iii. PromotionPromotion 3.
3. ToolsTools a.
a. Performance Score CardPerformance Score Card b.
b. Performance Appraisal formPerformance Appraisal form c.
c. Coaching guideCoaching guide d.
