install pms in moccis - a proposal
DESCRIPTION
These are some thoughts that I have to save MOCCIS which is my cooperative; by installing the performance management system.TRANSCRIPT
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Installing the performance management system in MOCCIS
Arriffin Mansor©2009
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Contents of this proposal
• What is performance management system and its benefits.
• The PMS development steps and its Gantt Chart.
• What you get with the PMS we install– Corporate planning– Performance planning– Performance appraisal
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Contents - continue
• What other benefits– Individual performance card– Compensation based on performance– Improvement in Training Management
• Who are we?• Our unique selling proposition• Our proposed fee
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What is PMS
• A system of participative management where efficiency measures are installed at all management levels and for all processes in the organisation with the ultimate objective of getting maximum results.
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1 Clearly defined corporate growth objectives2 Coordinated, cascaded and aligned corporate strategies3 Identifying Critical Success factors / Key Result Areas4 Performance measurement and reward culture5 Competency gap analysis and training needs6 Justifying and prioritising interventions7 Improve commitment and leadership of all.8 Improve customers service and satisfaction9 Finally, improve productivity and profitability
© Arriffin Mansor 2009
Benefits of the PMS
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10 integrating the strategies towards corporate goals11
PROJECT GANT CHART - PMSACTITIVITIES / MONTHS
Evaluate past performance and market opportunitiesDefine corporate goals Identify Critical success factors
20 mandays
6 months period
Individual Scorecard
20 mandays
20 mandaysSet departmental goals and establish key result areasperformance tools and role plays for supervisors -seminarCascade the metrics to lower unitsWriting performance action plansCalculating the key performance indicator ratios
performance tools and role plays for managers - seminar
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BASIC TOOLS IN PMS1 Identifying Corporate and other stakeholders2 Defining and setting SMART goals*3 Performance improvement metrics4 Corporate Strategic Maps and action metrics5 Critical Gap Analysis6 Rewards and incentive plans7 Performance value8 Key Result AREas*9 Competency gap analysis
10 Key Performance Indicators or scorecard measures*
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11 Individual Scorecard12 Performance Gap Analysis*13 Input output Analysis14 Manpower planning15 Setting performance targets and benchmarkings*16 Performance improvement cycle17 Corporate Scorecard18 Departmental Strategic maps and action plans19 Production gap analysis (variance analysis)20 Du Pont ROE chart as KPIs21 Recognising performance*
BASIC TOOLS IN PMS - continue
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Who are we?
• ABM consult is a firm headed by Dr Arriffin Mansor
• He has associate consultants who are involved in other consultancy projects plus those teaching at various universities and Excel College of which he is the chairman.
• Dr Arriffin lectures on performance management at public and in house programs.
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Our unique selling proposition
• Our performance analysis is in simple graphic input output analysis.
• 90% of our proposed KPIs are drawn from the financial system of the company.
• Our Performance Improvement matrix shall be used at all levels in the organisation.
• The Du Pont return on equity template shall be used to diagnose for SWOT.
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Our unique selling proposition
• We use financial information as a basis of our key performance indicators.
• We use excel based templates which could be applied by all staff.
• Our input output graphic analysis enable true performance analysis.
• Our system installation information is uploaded in the internet for easy on line reference.
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What is corporate planning?
• Setting clear corporate objectives and goals with the metric network linking the 4 key departments
• Agreeing on the strategic maps linking the 4 BSC perspectives
• Setting the basic strategies in terms of Du Pont Return on equity format where marketing, working and fixed capital strategies are highlighted.
• Resource planning and sourcing
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What is performance planning
• Setting objective and goals for all working unit• Identifying key result areas• Identifying key performance indicators• Identifying the right stakeholders.• Establishing performance targets• Implement the performance action plans
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What is Performance Appraisal
• Monitoring and recording performance• Evaluate and analyse performance gaps• Key Performance Indicators as performance
measures• Identify true performance and justify
intervention costs• Recognise and reward performance
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Inte
rnal
Pro
cess
Stak
ehol
der
Lear
ning
& G
row
th
Reduce Re-Activities thru ABC/M
Establish Web Based Self Services
Knowledge Management
Human Capital
Improved Returns on Investments
More rapid and accessible services
Leadership Development
Inve
stm
ents
Strategy Map: Capture a Cause Effect Relationship from the Bottom Up
IT InfrastructureFacilities and Fixed Assets
Economic Model Process
Expand Global Facility Reach
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• Articulates how the organization creates value for its constituents and legitimizing authority
• Displays key priorities and relationships between outcomes (the "what") and performance enablers or drivers (the "how")
• Provides a clear view of "how I fit in" for sub-organizations, teams, and individuals
• "Cascading the scorecard throughout the organization, and clearly mapping the various units and functions back to the organization or agency-wide map is critical to leveraging and ensuring alignment"
Key Benefits of Strategy Maps
Detailed statement of what is critical to
successfully achieving the
strategy
How success in achieving the
strategy will be measured and
tracked
Key action programs
required to achieve
objectives
The level of performance or
rate of improvement
needed
Objective Description Target
2 per setup per month each Outlet Office
InitiativeMeasure
Number of Reworks
Strategy Map
Stak
ehol
der
Inte
rnal
Pro
cess
L&G
Faster Service Access
Self Service Applications
Web Enable Technologies
Process and ValueMap Analysis
Lean Processes
Inve
stm
ents
Invest in IT
Extend the Map into Measurements, Targets, key result areas and Initiatives
Lean / Six SigmaEliminate waste, reworks, and other errors in our processes
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Make sure the components of your scorecard fit together. We want to create a tight model for driving execution of your strategy.
Goal / Objective
Key Result Areas
Measurement Target Initiative
Maximizes Return on Equity
Profit MarginAsset TurnoverEquity Multiplier
Key Performance Indicators =
Return on Equity
ROE = 40% Increase leverage
Outsourcing to reduce
costs
Alignment of Scorecard Components
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Stakeholder / Customer Internal Processes
Learning and Growth Investments• % of facility assets fully funded for upgrading• % of IT infrastructure investments approved• # of new hire positions authorized for filling• % of required contracts awarded and in place
• Percentage employee absenteeism• Hours of absenteeism• Job posting response rate• Personnel turnover rate• Ratio of acceptances to offers• Time to fill vacancy
• Number of unscheduled maintenance calls• Production time lost because of maintenance
problems• Percentage of equipment maintained on schedule• Average number of monthly unscheduled outages• Mean time between failures
• Current customer satisfaction level• Improvement in customer satisfaction• Customer retention rate• Frequency of customer contact by customer
service• Average time to resolve a customer inquiry• Number of customer complaints
Examples of Measurements by Perspective
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Leading
Definition
Lagging
Input
Output
Outcome
Objective / Quantitative
Example
Intermediate outcomes that predicts or drive bottom-line performance results
Measure Type
Bottom-line performance results resulting from actions taken
Amount of Investments, assets, equipment, labor hours, or budget dollars used
Units of a product or service rendered - a measure of yield
Resulting effect (benefit) of the use or application of an output
Empirical indicators of performance
Subjective / Qualitative
Perceptions and evaluations of major customers and stakeholders
Employee turnover rate
Employee satisfaction rating
Number of Value Meal orders fulfilled
Customer satisfaction rating
Wait time
Customer complaints received as a % of total customers served
Number of cashiers
Types of Measurements
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The Measurement Pyramid
Goal
Outcome Performance
Measures
Program
Program Performance Measures
Program Components
Program Component Performance Measures
Activities
Activity Performance Measures
Strategic/GPRA GoalsEnd-Outcomes
Longer-Term IntermediateOutcomes
Shorter-TermIntermediateOutcomes& Outputs
Outputs& Inputs
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Some Tools for Determining What to Measure
Inputs Process/System Output Intermediate
OutcomesEnd
Outcome
Program Logic Model
DesiredOutcome
Causal AnalysisProcess Flow
ResultsOf
Testing
Not AcceptableAcceptable
PrototypeProduct
Back to Laboratory
To Market
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Corporate GoalsSales1,689,429,000$
Cost of GoodsSold + Extra Taxes Net Profits
384,153,000$ After Taxes358,612,000$ Net Profit
Operating MarginIncome Expenses 21.23%
Statement 731,891,000$ NI/SALESSales Return on
Interest 1,689,429,000$ Total AssetsExpense (ROA)
13,641,000$ 26.17%NPM X TAT
Taxes201,132,000$ Sales
1,689,429,000$ Total AssetTurnover
1.23 Return onCurrent SALES/TA Equity (ROE)Assets 33.96%
709,360,000$ Total Assets ROA X FLM1,370,157,000$
Net FixedAssets & Other Stockholders'
660,797,000$ EquityBalance 1,055,920,000$ Financial
Sheet Current LeverageLiabilities Multiplier (FLM)
265,661,000$ Total 1.30Liabilities Total Liabilities TA/EQUITY
Long Term 314,237,000$ & Stockholders'Debt Equity = Total
3,270,000$ AssetsStockholders 1,370,157,000$
Other EquityLiabilities 1,055,920,000$
45,306,000$
Du pont ROE Chart
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• Past performance trends per historical data.• Performance levels of similar organizational units at a
comparable level that facilitates benchmarking. • Best practices across the agency, the public sector or the
private sector. Must be at a pre-existing high level of performance before you use this approach.
• For newly launched services, may have to establish a baseline per a prototype test and extend out from this point forward.
• For major strategic shifts, may have to set directly per the plan itself without regard for hard data.
How to Set Targets
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• Targets match up with measurements, one to one. • Targets require improving current levels of performance. • Targets are a stretch, but achievable: they may require
improvements to existing processes.• Targets are quantifiable so that the target communicates if
the expected performance was met.• Long-term targets are established before short-term targets.• Financial/Budget related targets are established before non-
financial targets.
Checklist for Setting Targets
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Our services include
• Providing training services for all managment and staff on the proposed PMS.
• Helping the CEO in preparing the performance corporate plans.
• Coach and guide managers and staff to prepare their own performance cards.
• Coach and guide managers and staff in performance evaluation.
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PERFORMANCE MEETINGS
(Boss subordinate meetings and relationship)
1. Begin with goal setting with performance action plans2. Progress with performance monitoring and
coaching3. End with performance analysis, evaluation and
appraisal4. Recognition and reinforcement with rewards and
promotion
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FORMS USED IN PMS(assist practitioners in the application of the PMS)
1 Writing objectives on smart - stackholders2 Key Result Areas - how to identify the right3 Key Performance Indicators - chose the right KPIs4 The 4 phases of the value chain5 Performance Targets / standards / Past achievement6 Gap Analysis - to separate the impact of volume and efficiency7 Performance Planning meeting8 Performance Review meeting9 Strategic Map and Action Metrics for supervisors and managers.
10 Improvement metrix11 TNA through cause effect ralationship of the 4 perspective12 Marketing matrix
to be filled by the respective departmental staff
13 Production matrix14 Finance Matrix15 HR Matrix16 Individual scorecard - Managers17 Individual scorecard - Supervisors18 Individual scorecard - Staff
© Arriffin Mansor 2009
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PERFORMANCE ANALYSIS
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24 hours communication with our consultants
• Our handphone is open 24 hours• Our gmail is available 24 hours• Written group discussions through
yahoogroups on line real time• Written groups discussions where video and
photographs are displayed through ning groups.
• Our blogspot internet reference materials
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Our Reading materials available at blogspot
1The importance of performance measures2The corporate performance structures3Performance perspectives metrics4Cascading the metrics5Input output analysis6The key performance indicators7The key departmental metrics
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PMS basic tools
• Writing clear performance objectives and goals
• Identifying key result areas• Setting challenging performance targets• Choosing the right key performance indicators• Evaluate performance precisely for
recognition and improvement.• Participation and teamwork is the culture
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Performance Management is a System where ..........
• Performance planning are more quantified and proper measures put in place.
• Participation and commitment are the attitude and culture of the organisation.
• Key attention areas are identified and forcused.• Performance reviews and appraisal are
objective.• Performance improvement is continuous.
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• Setting Clear Objectives and goals• Identifying key result Areas
Planning
PERFORMANCE MANAGEMENT
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corporate performance and strategy review
Workshop on basic performance tools
Cascading goals and Strategic Mapping
Performance planning for each staff
Performance Appraisal for each staff
The PMS has 5 key activities
Performance Improvement
© Arriffin Mansor 012-2786282
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Business objectives
Key ResultAreas
Critical SuccessFactors
PerformanceIndicators
Performancestandards
Strategicinitiatives
PerformanceActuals
Change
Performance Improvement
design strategic programs
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Benefits of PMS
• Management by objective• Continous improvement attitude and culture• Best practices, problem solving and
innovative solutions• Leadership development with learning,
training, coaching and mentoring.• Objective appraisal and fair reward
management.
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The staff shall learn the following:-
• Able to understand and write his own performance card
• Able to appraise own before discussing with the boss
• Able to participate in setting own goals and objectives
• Participate in searching for the right key result areas and solutions.
• Linking his performance with that of his boss
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Our proposed fee structure
– Seminar Fees RM3,500 x 2 days x 1 time = RM7,000
– Corporate Planning 10 days x RM2,500 = RM25,000
– Performance planning 10 days x RM2,500 = RM25,000
– Performance Appraisal 10 days x RM2,500 = RM25,000
– TOTAL= RM82,000
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Thank you for giving us the opportunity to serve your
organisation.Dr Arriffin could be contactable
at 012-2786282 [email protected]