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Kra 2

  1. 1. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Lack of Goal Congruency Individual’s Needs/Goals Company or Departmental Needs/Goals 1
  2. 2. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goal Congruency Individual’s Needs/Goals Company or Departmental Needs/Goals 2
  3. 3. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Levels of Organizational Control The Environment Core Control 3
  4. 4. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Elements of the Performance Management System 4
  5. 5. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Elements of Core Control Systems • Key Result Areas (From corporate or department plans or individual role descriptions) • Objectives (From corporate or department plans or individual role descriptions) • Goals (From corporate, department, or individual plans) • Measurement • Progress Review • Performance Evaluation • Rewards 5
  6. 6. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Key Result Areas • Areas of performance which are essential to the company’s, department’s or individual position-holder’s success. • Nine KRAs is considered the maximum number 6
  7. 7. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Objectives • Broad statements of what needs to be in achieved in each Key Result Area. • For the company/department, objectives define “strategy” – results to be achieved over the longer term. • For position-holders, objectives/activities define what needs to be achieved within each KRA. • Not changed unless the strategy or structure of the organization changes. 7
  8. 8. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goals • Specific, measurable, time-dated performance targets to be achieved. Each objective will have one or more goals. • Requirements for effective goals: – – – – Limited in number Realistic; something that can be attained Stated in measurable terms Expectation of success should not be 100% 8
  9. 9. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY SMART Goals S Specific Outcome M Measurable A Achievable Accountable and R Results-Oriented and T Time-Dated Realistic 9
  10. 10. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Measures • Methods and procedures used to evaluate performance • Guidelines include: – A preference for objective tests – If subjective means are used, several different measurements are suggested 10
  11. 11. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Measurement Methods • Profit Measurement • Monetary Measurement • Non-monetary Measurement – Ratio: Numbers indicate the actual amounts of the property being measured. Has an empirically meaningful 0. – Interval: Numbers have quantitative significance – they represent distances between objects. The difference between a score of 8 and a score of 10 is the same as the difference between a score of 2 and 4. – Ordinal: Numbers signify rank order, but have no arithmetic significance. – Nominal: Numbers are “labels” intended for classification. 11
  12. 12. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Progress Review: Periodic Review of Progress Made Toward Goals Regular, periodic feedback to each member of a manager’s team on performance against goals, tasks assigned, and on-going responsibilities. 12
  13. 13. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Evaluation A formal process of evaluation and feedback (based on established goals) from which adjustments in an individual employee’s performance can be made. 13
  14. 14. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Rewards • Positive reinforcers for accomplishing appropriate, goal-directed behavior. • Rewards need to be valued by people. • Something not desired does not constitute a reward. • Types of rewards – Intrinsic – Extrinsic 14
  15. 15. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY The Performance Management System Strategy/ Role Description Goals Behavior Results • KRAs • Objectives Progress Review/ Feedback Rewards Performance Evaluation/Appraisal Measurement System 15
  16. 16. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Operationalizing the Performance Management System – Individual Level 16
  17. 17. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What is a Key Result Area-Based Role Description? • Designed to support corporate strategy by identifying specific areas where a position contributes to the achievement of the organization’s mission. 17
  18. 18. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Strategic Planning Waterfall Organization MISSION STATEMENT Business Unit Department Individual/ Manager KEY RESULT AREAS MISSION STATEMENT OBJECTIVES KEY RESULT AREAS MISSION STATEMENT OBJECTIVES KEY RESULT AREAS MISSION STATEMENT GOALS OBJECTIVES KEY RESULT AREAS ACTION STEPS GOALS OBJECTIVES/ ACTIVITIES ACTION STEPS GOALS GOALS ACTION STEPS CALENDARED ACTION STEPS 18
  19. 19. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What is a Key Result Area-Based Role Description? • Designed to support corporate strategy by identifying specific areas where a position contributes to the achievement of the organization’s mission. • Communicates the dimensions of a position to current and potential holders of that position, as well as others within the organization. • A guide for individual behavior. • A tool that managers can use as input for hiring, training, and day-to-day supervision. 19
  20. 20. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Role Description Mission PositionSpecific Broad statement of why the position exists. Objectives/Activities PersonSpecific Key Result Areas Categories of activities on which the position holder should focus to maximize success. Broad statements of what should be focused upon in each category. Goals Action Steps Results to be achieved within the next 12 months within each KRA. Calendared activities to achieve each objective. 20
  21. 21. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What are the Components of the KRA Role Description? • Date • Time Allocations • Department • Objectives/Activities • Title • Position Requirements • Mission • Authority • Key Result Areas 21
  22. 22. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Date, Department, Title • When was the role description created or last updated? • Where in the organization does this position reside? • What do we call this position? 22
  23. 23. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Mission • Why does this position exist in our organization? • What is its basic purpose? • How does it support the organization’s mission? 23
  24. 24. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Mission Statement Director of Marketing To develop, implement, monitor and evaluate strategic marketing plans that enable our firm to profitably capture a dominant share of the market. To effectively and efficiently utilize the resources of the marketing team in meeting or exceeding customer requirements. 24
  25. 25. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Mission Statement Executive Assistant To ensure that the executive’s needs are met in a smooth and timely manner. To serve as the executive’s liaison with customers and staff. 25
  26. 26. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY What is a “Key Result Area”? • An area where performance is critical to success. • A “category” of activities. • Expressed in one, two, or three words (e.g., People Development, Manufacturing Capability, Planning). • Used in planning at the corporate, department, and individual level. • There should be 5 to 9 Key Result Areas. 26
  27. 27. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example KRAs Company President • Financial Performance • Strategic Planning • Organizational Development • Shareholder and Public Relations • Corporate Culture Management • Board Relations • Staff Development and Supervision 27
  28. 28. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Role Description Worksheet Date: Department: Title: Mission: KEY RESULT AREAS Time Utilization Now Goal 1. 2. 3. 4. 5. 6. 7. Position Requirements: Education/Experience: Skills/Knowledge/Ability: Authority: 28
  29. 29. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Objectives/Activities • For each KRA, what are the specific activities that must be completed to fulfill the performance requirements of that area? • Specific to the position vs. the individual. • Ongoing responsibilities vs. time-dated goals. • Expressed as an action (starts with a present tense action verb). 29
  30. 30. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Present Tense Action Verbs • Oversees • Negotiates • Participates • Analyzes • Schedules • Trains • Approves • Plans • Coaches • Authorizes • Decides • Hires • Controls • Inspires • Fires • Coordinates • Motivates • Serves • Creates • Writes • Maintains • Designs • Edits • Facilitates • Develops • Purchases • Initiates • Ensures • Sells • Implements 30
  31. 31. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Levels of Decision-Making 1. I have complete authority to decide and to act. 2. I have complete authority, but must notify someone else after I have decided. 3. I have complete authority, but must consult with someone else before I decide. 4. I need the prior approval of someone else before I decide. 5. Someone else must consult with me before deciding. 6. Someone else informs me of their decision. 31
  32. 32. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example Objectives/Activities Administrative Support • Word processes correspondence, manuscripts, reports and other documents. • Transcribes CDs. • Screens and handles telephone calls. • Maintains filing system. 32
  33. 33. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example Individual Objectives/Activities Supervision • Recruits, hires and fires direct reports • Oversees the development and maintenance of role descriptions for direct reports • Works with direct reports to establish their annual goals that support the corporate strategy • Meets periodically with direct reports to review operations • Monitors the performance of direct reports toward their annual goals • Conducts annual formal performance reviews for direct reports • Gives informal performance feedback periodically to direct reports • Decides compensation for direct reports • Coaches, develops and serves as a resource to direct reports • Disciplines employees as appropriate 33
  34. 34. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Role Description Worksheet KEY RESULT AREA 1. _______________________ OBJECTIVES/ACTIVITIES a. b. c. d. e. 2. _______________________ a. b. c. d. e. ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ 34
  35. 35. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Role Descriptions 35
  36. 36. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example of a Company President Role Description Date: August 2, 2013 Department: Corporate Title: Company President Mission: To profitably and effectively manage the company and to maintain the highest possible level of customer satisfaction. Key Result Areas 1. Profitability 2. Staff Development/Management 3. Corporate Management 4. Planning 5. Corporate Culture Management 6. External and Public Relations 7. Organizational Development 8. Miscellaneous Time Utilization 15% 10% 15% 20% 10% 15% 10% 5% 100% 36
  37. 37. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Example of a Company President Role Description KEY RESULT AREAS 1. Corporate Management OBJECTIVES/ACTIVITIES a. b. 2. Planning Working with the senior management team, ensures that corporate performance is aligned with the company’s strategy. Meets regularly with each senior manager to identify and resolve issues related to corporate performance. a. Leads the corporate strategic planning process. b. Works with senior management to develop the corporate plan. c. Works with members of senior management to evaluate performance and develop strategies for improving performance against the corporate plan. 37
  38. 38. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goals, Performance Review, Performance Evaluation and Rewards 38
  39. 39. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Strategies for Establishing Individual Performance Goals • Link to the individual’s Key Result Areas • Support of the company’s business unit’s plan. • Consider the individual’s needs, goals, skills, abilities. • Limit number – no more than 3 to 5 in each Key Result Area. • Establish such that the individual responsible can exert control over their achievement. • Record in writing on the Performance Appraisal Form or a “Goal Setting Form” so that they can be referred to regularly by the manager and the individual responsible for achieving them. 39
  40. 40. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Goal Setting Worksheet Individual’s Name:___________ Position:_______________ Key Result Area Goals Support for Division/ Department Goals Support for Personal Goals 1. 2. 3. 4. 5. 40
  41. 41. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Evaluation Form Individual’s Name:___________ Position:_______________ Key Result Area Performance Achieved Goals 1. 2. 3. 4. 41
  42. 42. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Exercise: What Do People Value? Reward Importance in General Importance to the People You Supervise Job security Good wages Interesting work Sympathetic help on personal problems Promotional growth in the organization Feeling of being in on things Full appreciation of work done Personal loyalty to employees Good working conditions Tactful disciplining 42
  43. 43.   Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Plan Page KEY RESULT AREA: 1.0 Markets and Products Objective 1.1: Grow active buyer base at a rate consistent with overall sales growth per year. Goals Prty Who When 1. Increase our active buyer base by 50% from 1/1/0x to 9/30/0x. A BH 10/1/13 2. Identify and evaluate vehicles for growth beyond FY’0x. A BH 9/30/13 3. Identify new strategies to support FY ‘0x growth. C LM Status 6/30/13 43
  44. 44. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Operationalizing the Performance Management System – Company Level 44
  45. 45. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Key Result Areas for the Company It is advisable to use the 6 levels of the Pyramid of Organizational Development + Financial Results: - Markets - Products - Resources - Financial Results - Operational Systems - Management Systems - Culture (Fiscal Management) Why? 45
  46. 46. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Pyramid of Organizational Development Corporate Culture Values Beliefs Norms Management Systems Planning Accounting: • Billing • Payroll Organization Management Development Operational Systems Production: Marketing: •Shipping • Selling Perf. Mgmt. Personnel: • Hiring • Compensation Resources Management Financial Resources Human Resources Technological and Physical Resources Products & Services Develop Products (Services) Markets Define Market Segments and Niche Business Foundation • Business Definition • Strategic Mission • Core Strategy 46
  47. 47. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Objectives – Company KRA 1.0 Markets • Profitably grow our market share. • Foster the best customer relationships in our industry. Key Result Area 2.0 Resources • • • Achieve/maintain highly trained staff. Minimize staff turnover. Maintain physical environment with up-to-date equipment, facilities, design, and ambiance that is both safe and regulatory agency compliant. 47
  48. 48. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Goals • Develop and begin production of two new internally generated product ideas that will result in total sales of $4 million by 12/31/13. [Peter] • Earn revenues of $5 million by 12/31/13. [Paul] • Open new accounts with average sales of $30,000 each by 12/31/13. [Mary] 48
  49. 49.   Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Sample Plan Page KEY RESULT AREA: 1.0 Markets and Products Objective 1.1: Grow active buyer base at a rate consistent with overall sales growth per year. Goals Prty Who When 1. Increase our active buyer base by 50% from 1/1/0x to 9/30/0x. A BH 10/1/13 2. Identify and evaluate vehicles for growth beyond FY’0x. A BH 9/30/13 3. Identify new strategies to support FY ‘0x growth. C LM Status 6/30/13 49
  50. 50. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Performance Measurement: Corporate Scoreboard Key Result Area: Objective Goal Measure Evaluation Overall Evaluation: _____ 56
  51. 51. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Bringing It All Together: The Performance Scoreboard KRAs Objectives Goals Measures Local Area Marketing/ Sales Growth Work with branch personnel to profitably achieve sales targets. Train Branch personnel in branch business development techniques. Achieve 200X Sales targets. $$ Achieved $$ Achieved vs. budget 80% of Branch personnel will meet Countrywide standards in business development by 12/31/0X. Assessment checklist of business development standards. Staff Develop/ Mgmt Performance 57
  52. 52. Session 4 NAWBO-LA PEAK LEADERSHIP ACADEMY Making Planning Work • Base your plan on the best available information. • Involve other members of your team. • Take time to plan. – At least a full day, once a year, to review/refine your strategy and set annual Goals. – At least a ½ day each quarter to review/update your plan and problem-solve. – At least 2 hours a week to individual time management – schedule time in your calendar to work on Goals. • Set realistic Goals. • Hold people accountable for results. • Celebrate and reward success. • Don’t give up! – Remember that planning is like sausage AND – It is an invisible key to success! 58
  • EndoViires

    Jul. 17, 2019
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    Aug. 30, 2015
  • derrickdwane

    Jul. 8, 2014

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