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1、A Guide to Consulting June 2000,Discussion Objectives,Provide an overview of current thinking and trends Discuss what PM consulting is all about Review “what works and what doesnt” Share Best Practices research Review some of the basic planning and project steps,Group Discussion,Answer the following
2、 questions: 1. What is performance management? Why do companies have this process? 2. Why doesnt it work so well? What makes it so difficult?,Performance Management,Translates business vision and strategy in an actionable way by cascading goals throughout the organization Measures both what is done
3、and how it is done Aligns Department goals with strategic business objectives Aligns individuals with the broader organizational/ team context Ensures the closest “line of sight” possible,Source: Watson Wyatt Best Practices in Performance Management,Performance Consulting,1. Total Organization Casca
4、ding and Alignment Stakeholder Metrics 2. Employee Review Process Engagement and Accountability Growth and Achievements,Two dimensions:,Performance Consulting,Total Organization Performance Cascading and Alignment Stakeholder Metrics,The Key Questions of Business Planning,Why does the company exist?
5、 Where is it going? Size Sales Markets Locations Products Competitive Challenges SBU Linkages How will it get done? Values and Operating Principles Technology Resources What must the company be very good at doing? How will progress and success be measured? Expectations of Stakeholders Company Perfor
6、mance,Mission,Business Plans are Developed by the Business Units,Components of a Balanced Scorecard (with sample metrics),FINANCIAL RESULTS,CUSTOMER SATISFACTION,BUSINESS PROCESSES,LEARNING & GROWTH,AFYP ROI/ROA Surplus Growth,New sales: new customers Additional policies: current customers Market sh
7、are,Collecting premiums Calculating selling price: new product New licensing (Region & Corporate) Establishing the Business Case for new ventures, new locations Product Development: # innovations,Competency growth Additional countries Core capabilities growth,Cascading Strategic & Operating Plan Goa
8、ls,CORPORATE ORGANIZATION METRICS,Finance,Finance,Customer,Customer,Business Process,Business Process,Learning & Growth,Learning & Growth,BUSINESS UNIT,TEAMS/INDIVIDUALS,DEPARTMENT,Balanced Scorecards can provide organization alignment and accountability,5 to 7 GOALS “SMART” parameters Directly alig
9、ned,Typical Project Timeline & Milestones*,* 8 weeks elapsed time from planning session,2 Days,Clarify Company Strategy and determine goals,Implementation Training and Roll out begins,Implementation Planning Workshop,Formal Advisory Group Review Session & Follow-up,1 wk,2 wks,1 wk,1 wk,1 wk,1 wk,1 w
10、k,Project Planning, Orientation and Kick-off,1 Day,1 Day,Interview Findings Develop Measure Recommendations,1 Day,Workshop on Targets Finalize Target Recommendations,Implementation Plan Review Review Plan for Implementation Review Transition Strategy,2 Days,Formal Advisory Team Review,1 Day,1 Day,1
11、wk,1 Day,Executive Planning Session(s),Performance Consulting,Total Organization Performance Clients: CEO, COO, sometimes the VPHR Fees: typical project is $180 - 250K Timeframe: +/- 4 months,Performance Consulting,Employee Review Process Engagement and Accountability Clear Performance Expectations
12、Growth and Achievements,Performance Management Is.,.the ongoing process of setting performance expectations, providing feedback and coaching to reach those expectations, and reviewing and recognizing performance results.,Tie PM to the Business Cycle,Review and Planning,Planning,Feedback & Coaching,F
13、eedback & Coaching,Mid-Year Review,New Year Planning,Year-End Review,Bad timing.,“I dont want to ruin your day Herman, but tomorrow morning youre scheduled to be in my office for your annual performance review.”,Remember The Key Questions ?,Why does the company exist? Where is it going? Size Sales M
14、arkets Locations Products Competitive Challenges SBU Linkages How will it get done? Values and Operating Principles Technology Resources What must the company be very good at doing? How will progress and success be measured? Expectations of Stakeholders Company Performance,Mission,Organization Align
15、ment leads to Employee Engagement,COMPANY MISSION VISION,Strategic Objectives,Core Capabilities,Competencies Leadership Functional,Department Scorecard,Success Profiles,Employee Performance Process,Business Unit Scorecard,Cascading: Critical Metrics and Competencies,Change requires a balanced Value
16、Exchange,Employee Gives Employer Gives,Energy,Effort,Commitment,Value Add,Learning,Time,The Performance Process can provide the keys to development,Base Pay,Promotion,Training,Career development,Succession planning,89%,77%,56%,51%,32%,Reduction in force,26%,Variable pay,34%,Current Use of Performance Management Data,Source: Watson Wyatt Best Practices in Performance Management,
