Performance Management - Installing

• Performance planning and appraisal
• Strategic Business and Performance Plans

Performance Management - 13 steps

Installing and maintaining performance system
Lets start as HR project and subsequently a total computerized PMS.

1. What is performance? operating and overall targets
2. Measuring efficiency and performance
3. Performance Improvement
4. Planning for performance
5. Appraisal for performance - preset agreed criteria
6. Critical performance gaps
7. Performance - Causes - effect relationship
8. Alternative performance solutions
9. Performance monitoring
10. Performance reports
11. Performance recognition and rewards 
12. Integrate performance plans into a strategic maps
13. A working performance system

Arriffin Mansor 012-2786282

Performance Framework****

A mandatory competency for all executives, managers and CEOs
Managing performance and it's systems

(through measurement and recognition)

1. ROE as corporate goals and the Du Pont Chart as a check list.
• 3 key result areas
2. Best practices through benchmarkings
3. Test for Critical performance gaps
4. Performance Improvement Strategies
• Key performance Indicators
5. Functional Metrics
6. Value Chain performance analysis
7. Input performance analysis
8. Training Need Analysis through competency gaps
9. Problem solving and innovation through key result areas.
10. Performance Targets at all levels.
11. Strategic Mapping linking key performance areas. (BSC)
12. Team Performance Measurement and evaluation
13. Individual scorecard and performance appraisal

Arriffin Mansor 012-2786282
Copyright (c) 2011

Performance tools+++7 steps

Suitable for all job holders
How to manage performance - THE PROCESS

1. Performance goals -  defined clearly in KPI and KPI measures
2. Performance gaps - identify the critical performance gaps
3. Critical success factors or key result areas
4. Key Performance Indicators - measures
5. Performance Targets  - SMART based on benchmarking
6. Performance Evaluation -  actuals against targeted
7. Improvement Strategies - training or non training factors

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THE ANALYTIC TOOLS

1. The ROE/ROA chart to identify performance gaps and causal factors
• The CEO's performance
• the critical success factors and the performance gaps / strengths and weaknesses
• measure the working and fixed capital efficiency.
2. The variance analysis of KPI measures to identify both positive and negative gaps
• against industry standards
• on the key functional departments
3. Use the input output graph to identify true performance
• eliminate impact due to change in volume
4. Simulate the profit models for optimum matching
5. Use corporate BSC perspective for the whole business.
• integrate the functional strategies
6. Evaluate the value chain and process chains
• input, process, output and outcome.
7. Use the 6 key financial ratio analysis

Copyright:   Arriffin Mansor 012-2786282

Competency Gap Training Needs

8 steps TNA -  the effective approach

(Performance - Competency - TNA)

1. Identify the critical performance gaps from ROE / ROA Chart of the company
2. Next, identify the key job holders or team who has failed to perform to standards.
3. Identify best practices from benchmarked performers.
4. Conduct competency profiling on the best performers.
5. Identify competency gaps of the key job holders by job, duties and task analysis.
6. Cluster training needs and identify the appropriate training strategies and their costs.
7. Justify training from the expected ROI.(cost benefit analysis)
8. Prioritize training for next year based on it's  ROI and criticality

Note :  

TNA based on purely 100% competency survey would be costly.   With the initial performance based approach, the subsequent competency analysis is conducted for selected non-performers.  It is more precise, objective and cost effective.

Copyright :  Arriffin Mansor 012-2786282

Training Need Analysis****Performance first

TRAINING NEED ANALYSIS -  performance first
1	Course Title	Training Need Analysis – performance first
2	Target Groups	Training and HR executives and managers, Heads of departments
3	Type of Courses	Public / In house
4	Learning objective	Identify training needs of an organisation Preparing the training plan for the year
5	Delivery Strategies	Zero based, group dynamics and case analysis
6	Course contents	New corporate direction Critical performance gaps Benchmarking and industry standards Critical job holders Competency gap analysis through best practices Task Analysis BSC analysis for critical competencies Delivery Alternatives and cost estimation Annual Benefits Training Justification /  priority
7	Course Duration	2 days
8	Course Benefits	Maximum impact training for the organisation
9	Our Unique approach	Performance and competency based TNA
10	Training Aids	Bring calculators or note book

                                                     Arriffin Mansor 012-2786282

Performance Accounting & Measurement

How to use accounting for performance measurement.

1. Accounting reports should be used in performance measurement not only because it is already available but it is more precise, comparable, creditable, consistent, integrated and universal.
2. Profit center accounting is a good performance measurement that promote accountability as well.
3. Accounting ratios are good efficiency or performance indicators.  They are better than round figures which has less meaning than meaningful ratios.
4. Accounting ratios could broken into component ratios which should explain the cause effect relationship.
5. As usual, performance gaps are easily identified by comparing against benchmarked performance. (internal or external or both)
6. Initially, the critical performance gaps are drawn from the Du Pont ROE Chart.
7. Then, using input output ratios, we identify the appropriate key performance indicators.
8. Thereafter, a detailed gaps analysis should narrow to the most critical group or worker.
9. Therefore,  an understanding of accounting is essentia to conduct a reliable TNA.
10. Please note however that to confirm competency gaps, some task analysis of the jobs of the persons identified is needed.
11. Best practices are identified by performance benchmarking.
12. Draw the competencies from best practices.
13. Strategic mapping could also be drawn from accounting figures.
14. Input phase involves materials, labour and overhead costs identified as the expense accounts.
15. Outputs are the results of the functional departments such as marketing, Production, HR and Finance -  profit centre accounting is preferred.
16. To check process efficiency requires input output analysis.
17. When output is translated into sales ringgit or values, it is called the outcome phase.
18. Dynamic ratios could be applied to measure real change including opportunity costs or gains.
19. Individual performance is measurable if proper transfer pricing policy is in place.
20. One way to measure performance is return on pay.  (ROP) -  how much a worker generate in value for every dollar of his pay.

 computerised accounting

Competency vs Innovation

Performance improvement could be attributed by either a)  competency or b)  innovation

• Competency improvement is made possible to identifying best practices followed by regimented training. 

•  Innovation is normally attributed by new inventions, methods and procedures that contributed to better results.  Innovation should produce an outcome higher than those impacted by training.

It is only through innovation that a firm could be a leader in the industry.

(c)  Arriffin Mansor 012-2786282