2. PERFORMANCE MANAGEMENT AS A
STRATEGIC LEVER OF ORGANIZATIONAL
SUSTAINABILITY
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
CIPM 55th ANNUAL NATIONAL CONFERENCE
15 NOVEMBER 2023
3.
4. PRESENTATION OVERVIEW
• Introduction
• 4 CRITICAL SUCCESS FACTORS TO HARNESS PM AS A
STRATEGIC LEVER OF ORGANIZATIONAL
SUSTAINABILITY:
❑ Organizational Culture (HiPO)
❑ Evidence-based and data driven HRM philosophy
❑ System (PMS)
❑ Business Agency and Sustainability roles of HRM
professionals (Strategic Performance Advisors)
• Summary and Conclusion
• Question and Answer session
5. DEFINING ORGANIZATIONAL SUSTAINABILITY
(FROM A HRM-PERSPECTIVE)
• “It is the ability of an organisation to maintain and be
consistent in its mode of operandi, which in turn lead to
increase in performance, profitability, enhance
customer and workers satisfaction as well as
competitiveness among its peers.”
(Kabiru Ishola Genty, Lagos State University, Nigeria,
extracted from Human Resource Management Practices
for Promoting Sustainability, 2021)
• Receptive, Responsive and Responsible (Cotter, 2023)
7. 4 CRITICAL SUCCESS FACTORS TO HARNESS PM AS A
STRATEGIC LEVER OF ORGANIZATIONAL SUSTAINABILITY
Organizational Culture (HiPO)
Evidence-based and data driven HRM philosophy
System (PMS)
Business Agency and Sustainability roles of HRM professionals
(Strategic Performance Advisors)
8.
9.
10. DEFINING A HIGH PERFORMANCE
ORGANIZATION (HiPO) CULTURE
A high-performance organization is characterized by clarity and coordination.
Everyone plays a crucial role in driving the company forward, and everything that happens at
the individual, group or departmental level contributes to the organization's goals.
People understand their roles and how their efforts contribute to producing the desired
results.
Andre de Waal of the HPO Center offers this more formal definition: "A High Performance
Organization is an organization that achieves financial and non-financial results that are
exceedingly better than those of its peer group over a period of time of five years or more,
by focusing in a disciplined way on that which really matters to the organization."
12. DIAGNOSIS OF HIPO
CULTURE
• Q1: Your organization's managers optimize employee performance, potential
and talent management by bringing out the best in people; motivate them;
helping them adapt to changing circumstances and promoting good and
harmonious teamwork. It also trains business leaders to manage the change
process effectively in the best interests of the company and its people.
• Q2: Your organization's managers act with integrity and serve as role models
for their reports. They are credible and consistent and exhibit a strong set of
ethical standards that gain the trust and respect of their teams.
• Q3: Your organization's managers make swift & effective decisions and they
encourage others to do the same. They give people continuous support,
coaching and freedom to act in ways that are consistent with the
organization's standards and these managers also hold themselves
accountable for their own decisions.
• Q4: Your organization integrates standards for excellence into it's operating
structures & introduces people to these standards from the moment they join
the organization. These standards are a living document. People are
encouraged to share their ideas & knowledge to stimulate innovation & fresh
ideas and ensure the organization is permanently focused on improvement.
• Q5: Your organization is receptive to and not dismissive of (macro, market &
micro) environmental forces and -change. It is responsible in creating an
organizational culture that is poised to adapt to changing circumstances. Your
organization establishes open, transparent and multidirectional lines of
communication so that these change messages flow freely around the
organization.
13. DIAGNOSIS OF HIPO
CULTURE
• Q6: Your organization is vigilant, agile and responsive to environmental
change. There is a distinct focus on action; sustaining it's competitive
advantage; harnessing its core competencies; compliance with core values
and finding ways to do it better and/or more cost effectively over time.
• Q7: Your organization has well-defined vision statements that convey the
reason for the organization's existence and are focused on long-term (as
opposed to short-term) outcomes and building sustainable, life-long &
mutually beneficial relationships with key stakeholders and how to create
and add real value for them.
• Q8: Your organization is characterized by role clarity, cross-functional
collaboration, cohesiveness and coordination. Everyone plays a crucial role in
driving the company forward and everything that happens at the individual,
group or departmental level and how it contributes to the achievement of
desirable organizational goals and results. There is a high degree of task
significance and task identity.
• Q9: Your organization works tirelessly to assemble a diverse and balanced
team where individual personalities do not dominate, and everyone works
together in partnership to achieve the mission-critical aspects of the
company's strategy.
• Q10: Your organization ensures that every individual is well trained and
encouraged to be flexible, resilient and to apply entrepreneurial thinking,
resulting in a highly creative and engaged workforce where everyone is
proactive, solutions-focused and comfortable with taking calculated risks.
16. EVIDENCE-BASED HRM
• Evidence-based HR refers to a process in which the
organization evaluates any decision or process against data,
real experience, expert opinions, and/or other types of
information to ensure the decision is likely to have the
desired outcome.
• For this to work best, the “evidence” used should be
purposefully sought out.
• When data is taken from multiple sources, ensure it’s
applicable within your context.
17. 8-POINT HRM TRANSFORMATION
(COTTER PhD, 30 APRIL 2023)
• "In order to be feasible, to prosper professionally in
2023 and to be future-fit, HRM will have to exchange
the currency in which they trade from old notes to
noteworthy, Industry 4.0 and business relevant
denominations and value. Specifically, this change
translates from:
• 1. feelings to facts;
• from 2. anecdotal to analytical;
• from 3. hindsight to insight to foresight;
• from a 4. business tributary to mainstream;
• from 5. intuition to intelligence;
18.
19. 8-POINT HRM TRANSFORMATION
(COTTER PhD, 30 APRIL 2023)
• "In order to be feasible, to prosper professionally in 2023
and to be future-fit, HRM will have to exchange the currency
in which they trade from old notes to noteworthy, Industry
4.0 and business relevant denominations and value.
Specifically, this change translates from:
• From 6. rhetoric to meaningful response;
• from 7. a cost to a profit centre.
• from 8. best practice (imitation) to best fit (internalization)
to next practice (innovation) and ultimately,
• Generally, this 8-point transformation means an upgrade to
Evidence-based HRM."
20.
21.
22.
23. DIAGNOSIS OF PERFORMANCE MANAGEMENT SYSTEM
(PMS)
• #1: The Performance Management System (PMS) of your
organization is directly linked to the strategic goals of the
institution.
• #2: The PMS of your organization is (horizontally) integrated
with the other HRM functions and also the core business
processes (finance, customer & operations) of the institution.
• #3: The PMS of your organization adapts from only
management performance expectations to management,
customer and other (internal and external) stakeholder
expectations and is agile and responsive to environmental
change, global best practices and future trends.
• #4: The PMS of your organization is balanced in terms of
focusing on improving both short-term outputs or results and
also in the medium to long-term future i.e. future-proofing
the business/operating model.
• #5: The PMS of your organization encourages full participation
and wide engagement and extensive consultation, focused on
measuring quality standards.
24. DIAGNOSIS PF PERFORMANCE MANAGEMENT SYSTEM
(PMS)
• #6: The PMS of your organization is user-friendly, simple and
understandable for all users.
• #7: The PMS of your organization provides an opportunity to
recognize performance excellence.
• #8: The PMS of your organization is vigilant and efficient in
identifying and correcting poor performance levels and under
achievement of performance goals and standards.
• #9: The PMS of your organization is line management-driven
with active support and business partnering from the human
resources department.
• #10: The PMS is a continuous process that accurately identifies
multi-level (individual, team and organizational) performance
and skills gaps i.e. generates crowd-sourced (360-degree)
performance intelligence and –analytics, which is effectively
leveraged as a performance development and -improvement
management tool.
25.
26.
27. (VIRTUAL) STRATEGIC PERFORMANCE ADVISOR MODEL
(COTTER, 2020)
• HRM Governance (e.g. HRM policies and procedures; HRM/people risk management, compliance with
ethics and x17 King IV corporate governance principles; Human Capital reporting; promoting workplace
democracy and HRM Auditing) – Level 1 of strategic maturity - transactional/current.
❑ Transition from level 1 to 2 – CRAFTING OF A HRM GOVERNANCE FRAMEWORK
• Workplace Advocacy (e.g. Employee engagement; employee voice; EVP; employee retention;
succession planning; creating a workplace culture of brand ambassadors; mainstreaming HRM and
creating future-fit employees) – Level 2 of strategic maturity - transactional/future-focused.
❑ Transition from level 2 to 3 – FUTURE-PROOFING OF THE BUSINESS MODEL
• Business Intelligence (e.g. competitive predictive HR metrics and analytics; future-proofing the business
model; applying evidence-based HRM; creating HIPO; knowledge management and collaborative
intelligence i.e. integrating and harmonizing AI, HI and BI and being trouble-shooting solutions
architects) – Level 3 of strategic maturity - strategic/current.
❑ Transition from level 3 to 4 – APPLYING PREDICTIVE ANALYTICS
• HRM Strategy (e.g. embedding HRM strategy into business strategy; the use of strategy maps; adopting
a strategic mindset and applying strategic management principles and processes) – Level 4 of strategic
maturity - strategic/future-focused.
28.
29. BUSINESS EXECUTIVE EXPECTATIONS OF THE SHRBP ROLE IN THE POST
COVID-19 TALENT MANAGEMENT ERA
(COTTER, 2021)
• #1: Catalytic Driver of organizational Change
• #2: Proactive Business-minded Thinker
• #3: Collaborative business management
Consultant
• #4: Purpose-directed Coach (of line managers)
• #5: Delivery (value-adding and results-oriented
HRM practices)
• #6: (Credible and Accountable) Performance
Advisor
• #7: Strategic Facilitator and Enabler
• #8: Innovative Solutions Architect (and trouble-
shooter)
• #9: Digital Futurist and -Analyst
• #10: (Future-focused) Organizational
Behavioural Economist