This document provides an overview of performance management. It begins with an agenda that includes objectives and introductions, why performance management is important, the performance management framework, the process, tools and resources, getting started, and next steps. It then discusses setting clear objectives and goals, identifying key result areas, agreeing on key performance indicators with supervisors, and setting targets. The benefits of performance management for both individuals and organizations are described. A three-phase performance management cycle of plan, focus, and review is outlined. Tools and resources to support the process are listed, along with tips for getting started and overcoming challenges. The presentation emphasizes linking individual and corporate goals to drive high performance results.

1. PERFORMANCE MANAGEMENT
Arriffin Mansor
1

2. 2

3. 3

4. Agenda
 Objectives and Introductions
 Why Performance Management
 Performance Management Framework
 Performance Management Process
 Tools and Resources
 Getting Started
 Next Steps
4

5. Objectives of the session
 Introduce staff Performance planning and
appraisal systems
 Set clear objectives and goals
 Identify key result areas
 Agree on the key performance indicators
with your superior
 Set performance targets for the next
period
5

6. Why do Performance Management?
6

7. Why…..
 Effectiveness – objective and goal
achieving and target settings
 Efficiency driven
 Strategy formulations
 Benchmarkings
 Compensation plans
 Continuous improvement
 Trends 7

8. #5
PERFORMANCE IS A CONTINUOUS PROCESS
STRATEGY
60% of organizations 85% of management
don’t link strategy & update the test the teams spend less than
budgets strategy
Strategic Learning Loop
hypotheses one hour per month on
strategy issues
BALANCED
SCORECARD
BUDGET
78% of organizations lock
budgets to an annual cycle reporting 92% of organizations
funding Management Control Loop
20% of organizations take do not report on lead
more than 16 weeks to indicators
prepare a budget PERFORMANCE
Input Initiatives & Programs Output
(Resources) (Results)

9. #4 CASCADING METRICS AT ALL LEVELS
CORP
SBU
Top-Down “Bridging • EDUCATION Bottom-Up Process to
Process” To Share the Internalize & Execute
Strategy & Align the the Strategy
Workforce • PERSONAL GOAL
ALIGNMENT
• BALANCED PAYCHECKS
The Strategy Focused Workforce

10. Principles of the Strategy Focused Organization:
#3
LINK AND ALIGN THE ORGANIZATION AROUND ITS STRATEGY
#3.
#1. Each Support Unit develops a
A Corporate Scorecard defines plan and BSC for “best practice”
overall strategic priorities on a sharing to create synergies across
Balanced Scorecard (BSC). Subordinate Commands.
CORPORATE AMEDD
CORPORATE SCORECARD Major Subordinate Commands SUPPORT UNITS EXTERNAL PARTNERS
(Shared Strategic Agenda)
SBU SBU SBU SBU
Themes Measures
A B C D
1. Financial Growth xxx • Finance
2. Delight the Consumer xxx
• Marketing • Customer Scorecards
3. Win-Win Relationships xxx
• Distribution • Distributor Scorecard
4. Safe & Reliable xxx
• Procurement • Joint Venture Scorecard
5. Competitive Supplier xxx
• Purchasing • Vendor Scorecard
6. Good Neighbor xxx
• Safety • New Venture Scorecard
7. Motivated & Prepared xxx xx xx xx xx
8. Quality xxx • Human Resources • Outsourcer Scorecard
• Information Technology
#2.
Each Division develops a
BSC consistent with corporate
strategic BSC.
Strategies Are Executed Through Business Units. The Strategies of the Business Units Must Be
Integrated If Organization Purpose and Synergies Are to Be Achieved.

11. Public Service Goals and Renewal
To develop a
performance
Effective Proactive and management
Visionary
People
Strategy Leadership system that:
Progressive
Employee-
To achieve Performance • supports employees
excellence in Focused
Employer
Relations public service Workplace in achieving their
performance &
Learning and
Flexible and
Motivating
development goals
Innovative
Work
Organization
Environment
• aligns their goals
with those of the
organization. 11

12. Performance management
supports work satisfaction
“Nine out of ten employees, from all
generations, say they want:
 Work that gives them personal satisfaction
 Work that is valued by their employer and
their customer
 Work with an employer who understands that
personal lives are important too”
Ranstad: 2001 Employee Review: Insights into Workforce
12

13. Performance management aligns
personal & corporate goals
“Employees want their organization to involve
them more in the organization’s direction.
They want to know how they can make a
contribution to the organization’s mission,
goals and strategy.
Employees want to know how their position fits
into the big picture, and the part that will play
on the team”
Aon Consulting Canada@Work: Workforce commitment Report 2000
13

14. Shifts in Performance Management
PAST NOW
 Appraisal  Plan, Focus and Review
 Manager driven  Employee initiated and
managed
 Backward looking  Forward looking
 Once per year  1-2 times, ongoing process
 Tasks (job description)  Results/Outcomes linked to
Service Plan, team goals
 Minimal personal  Development &
development competencies integral
14

15. Do goals and measures improve
performance?
 Harvard study – 7x more likely to achieve goals if they
are set and written down
 Boston Consulting Group/Hewitt Associates: "companies
with year-round performance systems significantly
outperformed competitors lacking such systems in
financial measures such as return on equity,
stockholder return, sales growth and cash flow."
 US HR Scorecard survey of the top 10% and bottom 10%
performing firms - “survey results clearly show that there
is a direct correlation between a strong human
relations strategy and positive business results.”
15

16. Employee Performance and
Development Planning Process
16

17. Principles in performance
management
 Employee initiated and managed
 Forward looking
 Incorporates a plan, focus and review cycle
 Results-oriented and linked to Service Plan
and team goals
 Personal development & competencies key
components
 Employee-supervisor dialogue is key to
success
17

18. Benefits -
Individual & Organizational
What are they?
18

19. Organizational benefits of
performance management
 Common approach to setting goals and
reviewing performance & development
 Aligning individual plans with corp goals
 Ongoing dialogue between employees and
supervisors on performance & development
 Links to corporate learning & development,
career & succession planning, rewards &
recognition
19

20. Your roles in
performance management
Understand:
 How your work contributes to set goals
 Key competencies required to be successful
in your job
 What you need to develop in order to be
successful
 How your work/performance will be measured
and recognized
20

21. performance planning is the foundation
Strategic
Planning
Service
Planning
Service
Planning
Individual
Performance 21
Planning

22. Objectives of EPDP
 Develop shared expectations between
employees and supervisors on key
performance and development goals
 Establish specific and measurable individual
goals that contribute to the set goals
 Facilitate ongoing personal development and
career planning
 Provide regular feedback and coaching on
performance
22

23. Performance Mgt– Three Phases
Plan
•Goal setting
•Competencies
•development
Review Focus
•Employee and •Dialogue and
Supervisor review realigning goals as
needed
23

24. Employee Performance and
Development Plan
Employee Performance
and Development Plan What you do
• Top 3 to 8 goals
Key Work Goals
• List key goals and objectives/
strategies/ measures for each
How you do it
• Top 2 to 3 goals
• List key competencies most
critical to your success and how
Key Competencies you will focus on them
What you will learn
Personal Learning Plan • Areas of personal
development
• How you will improve your24
skills

25. Phase I – Performance Plan
Objective: Establish your goals and plan for the
upcoming year with your superior
 Review Ministry, Division and Work Unit plans
 Identify key work goals
 Identify key competencies
 Develop personal learning plan
 Meet with your supervisor
 Sign off plan
25

26. Developing goals &
Selecting competencies
Goals Competencies
 Specific  Public Service
– Teamwork &
 Measurable cooperation
 Achievable – Service Orientation
– Results orientation
 Reasonable
 Leadership
 Timely
26

27. Performance Planning brings clarity to ensure
we are heading in the right direction
Say…What’s a
mountain goat doing
way up here in a
cloud bank?”
27

28. Phase II - Focus
Objective: Assess if your plan is on track
and realign work goals as appropriate.
 Review your EPDP
 Meet with your supervisor
 Update your plan as required
28

29. Performance focusing helps ensure we
are on track with your plan
“Well, this is just
going from bad to
worse.”
29

30. Phase III – performance appraisal
Objective: Discuss and share feedback
on the successes and challenges in
achieving the goals over the past year
 Compare results against target
 Meet with your supervisor to discuss
results
 Sign off review
30

31. Performance reviewing is summarizing our
results and getting feedback
31

32. A Complete Metrics is a Program for
Action
Strategy Map
Strategic Theme:
Strategic Theme:
Objectives Measures Targets Initiatives
Operations Efficiency
Operating Excellence
Profits and
Financial RONA • Profitability • 30% CAGR
Grow
Fewer planes • Grow Revenues • 20% CAGR
Revenues
• Fewer planes • 5% CAGR
Attract &
Customer Retain More • More Customers • # Customers • 12% growth •Customer
Customers • Flight is on -time • FAA On Time • Ranked #1 loyalty
On-time Lowest • Lowest prices Arrival Rating • Ranked #1 program
Service prices • Market Survey • Quality
management
Internal • On Ground Time • 30 Minutes • Cycle time
• Fast ground
Fast ground turnaround • On-Time • 90% optimization
turnaround Departure
Learning • Ground crew • % Ground crew • yr. 1 70% • Ground crew
alignment trained yr. 3 90% training
Ground crew yr. 5 100%
alignment • % Ground crew • ESOP
stockholders

33. Metric Terminology
(Southwest Airlines Example)
Strategy Map
Strategic Theme: Objectives: Measures: Targets: Initiatives:
Operating Efficiency What the How success The level of Key action
Profits and strategy is or failure performance programs
Financial RONA
trying to (performance) or rate of required to
Grow achieve against improvement achieve
Fewer planes
Revenues objectives is needed targets
Attract & monitored
Customer Retain More
Customers
On-time Lowest
Service prices
Internal Objectives Measures Targets Initiatives
Fast ground • On Ground Time • 30 Minutes • Cycle time
turnaround
• Fast ground
turnaround • On-Time • 90% optimization
Departure
Learning
Ground crew
alignment

34. Optional Elements - EPDP
 Recognizing Past Performance
 Service Plan Reference
 Career Plan (i.e. where you want to go
in the future)
 Supervisor Commitments (i.e. resource
and/or support needs)
 Additional accomplishments
34

35. Performance Management Cycle
April November April
Plan Focus Review/Plan
EPDP 2005/06 EPDP REVIEW 2005/06
Key Work Goals Key Work Goals
EPDP 2006/07
Key Work Goals
360 degree
Key Competencies feedback Key Competencies
(optional)
Personal Learning Personal
Plan
Key Competencies
Personal Learning
35
Plan

36. Integrated performance management
framework - elements & linkages
Gov’t Strategic Plan,
Ministry Plan, Branch Plan
Individual Start of year
Performance
Management
Plan
Review • Goal Setting Corporate
Outcomes Opportunities
•Recognition
Review •Career Plan
mechanisms
(e.g.informal and • Results Focus •High Potential
formal rewards and • Feedback to • Progress and •Succession Plan
recognition,
development, base develop new realignment •Learning Needs
pay, pay for
En plan g & Courses
performance do oin
fy ng
ea O 36
r
Competencies

37. Performance Tools and resources
 Written Overall Guidelines
 Employee Guidelines
 Supervisor Guidelines
 Sample EPDP Templates (Forms)
 EPDP Examples
 Employee Checklist
 Supervisor Checklist
 Tips on Giving and Receiving Feedback
 Frequently Asked Questions
37

38. Performance On-line
 Web-based interactive tool
 Supports employee performance &
development planning
 Other resources include:
– Competency development
– Building self-awareness
– Team building
– Career planning
38

39. Getting Started
39

40. Challenges to
performance management
 Lack of current divisional/branch plan
 Belief that a job description is required
 Competencies not established for the job
 Succinctly identifying 3-8 key goals
 Identifying ‘measurable’ measures/targets
 Measuring advice and support roles
 Linking high level goals to daily work
 Too busy to develop plan and meet with
supervisor
 It’s time intensive and hard to do
40

41. Practicing Goal Setting
 Identify the 3-8 key areas your are expected
to get results in your job
 Practice writing a goal statement with
objectives, strategies and measures
– Measures e.g.: time, quality, quantity, cost
 What are the key competencies required for
your job?
 What can you develop/learn in the upcoming
year?
41

42. Next steps
 Review the Guidelines
 Develop a draft EPDP
 Book a meeting with your supervisor to
discuss and finalize
42

43. Linking our individual plans to corporate plans
equals high performance results!
43

44. Your performance tools
44

45. 45