madhu arora, gm (corporate restructuring)

1

Madhu Arora,GM (Corporate Restructuring)

2

Performance Management System

3

Performance Management System in BSNL

4

Group Performance Management System (GPMS)

Covers all BSNL employees in 19 group types

Each Territorial Circle, non-Territorial Circle, SSA is a Group

Key Performance Indicator(KPI) based score cards designed for objective and transparent assessment of performance

Group score cards have been finalized with targets assigned for all groups for this year

GPMS is aimed at rewarding everyone in the group based on overall Group’s performance

GPMS score to form the basis of PRP, other financial incentives

5

As part of GPMS design, all BSNL employees have been structured along 19 groups

Category of groupsCategory of groups Group TypeGroup Type

1. Consumer Fixed Access 2. Consumer Mobility 3. Enterprise 4. New businesses5. Corporate Affairs6. HR (Incl. Legal and Vigilance)7. FinanceSub-totalTerritorial CircleSub-total1. Project Circle2. Maintenance Region3. Inspections (earlier T&D)4. QA5. Telecom Stores6. Telecom Factory7. ITPC8. NCES9. Data N/W10. Training CircleSub-totalSSAs

Total

Number of group typesNumber of

group types

11111117111111111111

101

19

Number of groups

Number of groups

11111117

26265411131113

21330

384

Corporate office

Territorial circles

Non Territorial Circles

SSA

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Organisation redesign

Metrics for appraisal and scoring are drawn from various dimensions to give a fair appraisal

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5

4

3

2

1

WeightingTargetMeasureObjective

Weighting and mix

The appropriate mix of KPIs will depend on the role and on the

importance of each perspective

There should be no more than 5–7 objectives in total; more could result in lack of focus, potentially undesirable trade-offs, and reduced performance

FinancialWhat impact can this person have, in terms of

financial measures?

Customer / MarketHow can this person maximize customer

satisfaction?

Operations / ProcessesWhat are the operations / processes relevant to this person that most drive performance?

Employee developmentWhat can this person do to most actively

facilitate the development of others?

1

2

3

4

Key performance indicatorsKey performance indicators

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KPIs Design Parameters

• Source of Inputs

MOU Between DOT and BSNL for year

2010-11

JD and KRAs defined as part of

organization Design.

Interaction with individual Groups

Previous BBS parameters

Criteria for KPIs definition

GPMS SCORE Card

Weighting Factors

Definition& Formulas

Source of information

Target setting mechanism

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SAMPLE GPMS SCORE CARDS

Score Cards for Corporate Office Units

Circles

SSAs

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Financial

1. CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.)

2. CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.)

Customer/Market

3. Net adds (by number of subscribers) - Basic (in 000's)

4. Net adds (by number of subscribers) - Broadband (in 000's)

5. Customer satisfaction level (including QoS) (Scale of 1 to 5)

Operations

6. Net adds in Tax capacity (in KC)

7. CDR implementation (No. of SSAs)

8. CCR rate for Landline –local

9. CCR rate for Landline – STD

10. Fault rate (LL)

11. Fault rate (BB)

12. % of faults cleared by next working day (LL)

13. % of faults cleared by next working day ( Broadband)

14. % of new services (LL) provisioned within the norm (7 days)

15. % of new services (BB) provisioned within the norm (7 days)

(Subject to technical pheasibility)

Overall performance

16. Overall performance (on scale of 1 to 5 - to be assessed by CMD)

Total

Group Performance Management System (GPMS) score-cardConsumer Fixed Access

20%

20%

5%

7.5%

7.5%

2.5%

5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

5%

10%

10%

5110.80

2450.40

-2160

2100

3

720

270

58.00

45

7

6

85

83

90

90

3

6814.40

3267.20

-1830

2800

4

960

290

63

49

6

5.4

88

87

94

96

4

8518

4084

-1500

3500

5

1200

305

66.10

51

5.3

5

90

90

97

100

5

xxx

Consumer Fixed Access

1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaledNote: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available

V.GoodV.Good ExcellentExcellentGoodGood

Key Performance Indicators (KPI) Key Performance Indicators (KPI)Weighting

factorWeighting

factor Performance levels1 Performance levels1

Key Performance Indicators Key Performance Indicators Targets and ScoresTargets and Scores

Annual TargetAnnual Target

8518

4084

-1500

3500

5

1200

305

66.10

51

5.3

5

90

90

97

100

5

Targets achievedTargets

achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxxxxx

10

ExcellentExcellent

Financial1. Revenue GSM (Rs Cr)2. Revenue GSM (VAS)(Rs Cr)3. Revenue EVDO (Rs Cr)4. Revenue WLL (Rs Cr)5. Revenue Wi- Max (Rs Cr)Customer/Market6. Net adds (by number of subscribers) (GSM - 2G) (in 000's)7. Net adds (by number of subscribers) (GSM - 3G) (in 000's)8. Net adds (by number of subscribers) (Data Card-3G) (in 000's)9. Net adds (by number of subscribers) (CDMA) (in 000's)10 Net adds (by number of subscribers) (Data Card - EVDO) (in

000's)11. Wi-MAX Net adds (By nimbers ) (in 000’s)12. Customer satisfaction level (including QoS) (Scale of 1 to 5) 13. % of call centre complaints resolved within 24 hoursOperations14. Call drop rate (%)15. BTS availability (%)16. Blocked call rate - TCH congestion (%)17. Call handover success rate (%)18. Call set-up success rate (%) Overall performance19. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total

Group Performance Management System (GPMS) scorecardConsumer Mobility

20%10%2.5%2.5%

5%

5%3%2%2%2%

1%5%5%

5%5%5%5%5%

10%100%

10178.4192088.8678

237.6

102001800120900

94.2

6213

63

2.5%96%2.5%94%94%

3

13571.22560118.4

904316.8

136002400160

1200125.6

8284

67

2.2%97%2.2%

94.50%95%

4

169643200148

1130395

170003000200

1500157

10355

70

2%98%2%

95%96%

5

169643200148

1130395

170003000200

1500157

10355

70

2%98%2%

95%96%

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Consumer Mobility

1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available

V.GoodV.GoodGoodGood


factorWeighting

factor Performance levels1 Performance levels1



xxx


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxxxxx

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Financial1. Revenue from leased circuits and managed services (Rs. Cr.)2. Wholesale revenue from other carriers and service providers, i.e.

bulk deals (e.g. ILD, NLD) (Rs. Cr)3. Revenue from enterprise customers from all other voice and data

offerings (e.g. PRI, mobile CUG, EPABX, leased internet, bulk broadband, data cards) (Rs. Cr.)

Customer/Market4. Number of new Platinum accounts penetrated (minimum business

of Rs 40 lakhs per account p.a.)5. Number of new Gold accounts penetrated (minimum business of

Rs 10 lakhs per account p.a.)6. Customer satisfaction level (including QoS) (Scale of 1 to 5)Operations7. Average time taken to provision leased circuits (days)8. MPLS Network uptime (including edge routers) (%)9. Average restoration time for OFC and systems by regions (hours)10.% ILD bandwidth commissioned vis-à-vis planned11.% OFC route km commissioned vis-à-vis planned12.% OFC system km commissioned vis-à-vis plannedOverall performance13.Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total


Group Performance Management System (GPMS) scorecardEnterprise


factorWeighting

factor

40%2 -

-

5%

5%

10%

5%5%5%5%5%5%

10%100%

Performance levels1 Performance levels1

1463-

-

56

157

3

6099%

1260%70%75%

3

1716-

-

64

187

4

4599.50%

1080%80%85%

4

1950

72

230

5

30100%

8100%95%98%

5

1950

72

230

5

30100%

8100%95%98%

5

Enterprise


1.Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled 2. The performance of Financial KPI no. 2 & 3 cannot be measured at present, hence no targets are being given for them and weightage of KPI 1 has been increased to 40%Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are availableNote: SLA related metric to be introduced in Operations once SLAs are established and enforced as standard practice, and when SLA violations are tracked in MIS


xxx


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxxxxx

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Infrastructure1. Infrastructure business revenue and savings (Rs. Cr.)2. Number of towers shared with other operators3. Timely commissioning of USO towers (%actual vs. planned)International Business4. Total transaction value (revenue) from international business deals

(minimum value of each business deal Rs. 1 Cr.)5. Number of international business proposals taken to offer or negotiation

stageCivil Electrical Architecture USO6. Business earned from External Works during the course of year (Rs. Cr.)7. Electricity bill saving during the course of the year (in Rs Cr.)8. Effective management of Architectural Services for BSNL-HQ, Territorial

Circles, Telecom Factories & Training Centres (incl. building design, interior design, design standardization, cost reduction, new technologies, energy conservation, etc.) (on scale of 1 to 5 – to be assessed by Circle Heads and BU heads)

9. Timely roll-out of USO towers (%actual vs. planned)Telegraph Services10 Rationalization / closure and modernization (e.g. conversion to CSCs) of

Telegraph infrastructure and systems (esp. low traffic or loss making units), and redeployment of manpower for gainful utilization (on scale of 1 to 5 – to be assessed by BU Heads and Territorial Circle Heads)

Telecom Factory (HO)11. Timely and effective management of Telecom Factory related afGoods

(allocation of items to circles, planning and coordination of production, etc.) (on scale of 1 to 5 – to be assessed by Territorial circle Heads, Project circle heads, Maintenance region heads and BU heads)

Overall performance12. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total


Group Performance Management System (GPMS) scorecardNew Businesses


factorWeighting

factor

10%20%

5%

10%

5%

7.5%

5%

5%

5%

5%

10%

10%100%


150660060%

3

3

36045

3

60%

3

3

3

200880080%

4

4

48060

4

80%

4

4

4

25011000100%

5

5

60075

5

100%

5

5

5

New Businesses


1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled Note: Financial parameters of budget adherence on capex and opex and EBITDA to be added when BU level financial statements are available. Additional revenue KPIs to be added when applicable.

* Figure modified as per 100 days target, (for GPMS)


25011000100%

5

5

60075

5

100%

5

5

5

xxx


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxxxxx

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Corporate IT1. % of ERP modules for which blueprint document preparation completed

(target is to complete for 10 modules by March 31st, 2010)2. Availability of critical IT systems at the Corporate Office, e.g. LAN,

WAN, corporate email etc. (%)Planning & Monitoring3. % of reports and MIS completed or published in time4. Number of EoIs floated based on planning for forward looking

communication technologies (actual vs. planned)Coordination5. Timely monitoring or review of performance against business plan and

publishing of reports and MIS (actual vs. planned)6. % of Right to Information requests and Public Grievances cases cleared

or answered within the prescribed time frame as per the normsMaterials Management7. Number of tenders finalized vis-à-vis total number of tenders planned +

requisitioned (%)8. % of tenders finalized within the standard time (120 days between

requisition from BU and tender finalization for single stage bid and 180 days for two stage bid)

9. Inspection and followup of Nodes (Exchange Nodes, Broadband Nodes, GSM BTS, WLL BTS)

Regulation10. Timely and effective monitoring of compliance with TRAI regulations in

all BSNL processes incl. tariff, license fees, spectrum etc. (on scale of 1 to 5 – to be assessed by Territorial Circle Heads)

11. Timely signing of interconnect agreements with other operators including review and amendment thereof (within 30 days)

Marketing12. Number of marketing campaigns executed vis-à-vis requisitioned (%)13. Quality of marketing initiatives (brand strength, customer awareness of

BSNL offerings, satisfaction levels etc.) (on scale of 1 to 5)Overall performance14. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total


Group Performance Management System (GPMS) scorecardCorporate Affairs


factorWeighting

factor

15%

5%

5%5%

5%

5%

5%

5%

10%

5%

10%

5%

10%

10%100%

TargetTarget

100%

100%

In time 2

90%

90%

90%

70%

5000

5

50%

80%

5

5


60%

80%

Delay 2 Wk1

80%

80%

50%

40%

3000

3

30%

60%

3

3


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

80%

90%

Delay 1 Wk1

85%

85%

70%

50%

4000

4

40%

70%

4

4

100%

100%

In time 2

90%

90%

90%

70%

5000

5

50%

80%

5

5

xxx xxx xxx

Corporate AfGoods


1. Marks for Good rating = 60, Very good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very good and between Very good and Excellent would be linearly scaled

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5%

5%

10%

10%

10%

15%

5%

2.5%

2.5%

2.5%2.5%

10%

5%5%

10%100%

Group Performance Management System (GPMS) scorecardHuman Resources

Manpower planning and Recruitment1. Effectiveness of manpower planning for executives (incl. equalization or

balancing of manpower amongst circles, excluding tenure circles)2. Number of executives (DGMs, MTs, JTOs) recruited during the course of

the year vis-à-vis planned (%) (actual vs. planned)Promotion3. Number of personnel promoted during the course of the year vis-à-vis

planned (%) (actual vs. planned)Transfers4. Timely compliance of transfers and postings orders for executives (% of

transfer and posting orders executed within 45 days from date of issue)Timely completion of ACRs5. % of ACRs for corporate office completed by the required dateTraining6. Total number of persons trained as a percentage of total number of people

in the organization (yearly MoU target)7. % of courses conducted having quality rating more than 85% by the

traineesGPMS8. Timely creation of Corporate Office , Circle office and SSA GPMS

Scorecard for 2010-11.9. Timely mid term evaluation of BSNL CO and Circle GPMS Scorecard for

year 2010-11FPMS10. Timely finalisation of FPMS Scheme along with all cards11. Implementation of FPMS scheme in all Circles.Staff Relation12. Quality of Staff relations - % of mandays out of total mandays lost due to

union disputesEstablishment13.. % of Court cases processed14. % of National Council decisions followed up as per agreed termsOverall performance15. Overall performance (on scale of 1 to 5 - to be assessed by CMD)Total

10%

80%

80%

90%

100%

25%

75%

30-Jun-10

15-Nov-10

20-Apr-10100%

1%

100%90%

5

30%

60%

60%

70%

80%

21%

55%

>30 Days

>30 Days

>30 Days90%

3%

80%70%

3

20%

70%

70%

80%

90%

23%

65%

>15 days

>15 days

>15 days95%

2%

90%80%

4

10%

80%

80%

90%

100%

25%

75%

30-Jun-10

15-Nov-10

20-Apr-10100%

1%

100%90%

5

xxx xxx xxx

Human Resources




factorWeighting

factor TargetTarget Performance levels1 Performance levels1 Targets

achievedTargets

achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score


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Budgeting and Financial control1. Timely monitoring and communication to circles (e.g. quarterly)

regarding adherence on capex and opex budget (actual vs. planned)2. Timely creation, communication and review of financial plan and

budget for BSNL across all circles (actual vs. planned)Corporate Accounts3. Timely closing of annual and quarterly accounts for BSNL and

conducting external audit (actual vs. planned)Investments

4. ROI of BSNL's funds management activities (banking, treasury etc)Taxation5. Timely filing of statutory and regulatory returns (% actual vs.

planned)6. Effectiveness and efficiency of settlement of tax related legal cases

against BSNL (at COD level) (actual vs. target)Revenue Assurance7. Planning and implementation of Revenue assurance policy, process

and guidelines (on scale of 1 to 5 – to be assessed by BU Heads)Transfer Pricing8. Effectiveness of Transfer Pricing policies and guidelines incl cost,

pricing and taxation issues, based on proposals of transfer pricing from respective BUs for various services (on scale of 1 to 5 – to be assessed by BU Heads)

Procurement Finance9. Ratio of number of cases in which financial evaluation or financial

appraisal / advice not accepted by approving authority to total number of cases for which appraisal / evaluation is carried out (%)

Internal Audit10. % of Circles, SSAs, non-territorial circles and units of Corporate

Office for which internal audit (both proprietary and regulatory) conducted (actual vs. planned)

Finance Personnel1. Effectiveness of managing HR related issues for Finance cadre (incl.

training, promotions, manpower planning etc.) (on scale of 1 to 5 - to be assessed by Finance Heads at Territorial Circles)

Overall performance3. Overall performance (on scale of 1 to 5 – to be assessed by CMD)Total


Group Performance Management System (GPMS) scorecardFinance

Key Performance Indicators (KPI) Key Performance Indicators (KPI)

Weight-ing

factor

Weight-ing

factor

5%

5%

10%

10%

10%

5%

10%

10%

10%

10%

5%

10%100%

TargetTarget

15 days from finalisation ofQuarterly AccountsRE compilation by 15th October, BE by 28th Feb

Adoption of annual accts by Board by 30th June

Avg ROI for the year-4.5%

Filing IT Ret. by 30thSepSubmit cases to COD in 45 days from rec. from Circles

5

5

less than 5 %

100%

5

5


30 days

15 days

15 days

1%

30 days15 days

3

3

15%

75%

3

3

21 days

7 days

7 days

4%

15 days7 days

4

4

10%

90%

4

4

15 days

Within time

Within time

4.50%

within timewithin time

5

5

5%

100%

5

5


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxx xxx xxx

Finance



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Group Performance Management System (GPMS) scorecardTerritorial Circle

Group Group level weightage

S. No. Dimension KPIWeightage

Target Performance Levels1

Target Achiev

ed

Marks Achieve

d

Weighted

Score Good V.Good Excellent

Consumer Fixed Access

25%

1 Financial CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.) 20% 692.48 415.49 553.98 692.48 2 Financial CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.) 20% 393.00 235.80 314.40 393.00

3Customer / Market

Net adds - (by number of subscribers) Basic (in 000's)5%

-118.67 -170.88 -144.78 -118.67

4Customer / Market

Net adds - (by number of subscribers) Broadband (in 000's) 7.5%

350 210 280 350

5Customer / Market

Customer satisfaction level (including QoS) (Scale of 1 to 5)7.5%

5 3 4 5

6 Operations Net adds in tax capacity(in KC) 2.5% 212 127 170 212 7 Operations CDR Implementation (No. of SSAs) 5.0% 21 12 17 21 8 Operations CCR rate for Landline local 2.5% 69.8 60.0 65.0 69.8 9 Operations CCR rate for Landline STD 2.5% 54 46 51 54 10 Operations Fault rate LL 2.5% 4.2 7.5 5.5 4.2 11 Operations Fault rate BB 2.5% 5% 6% 5.4% 5%

12Operations % of faults cleared by next working day LL 2.50

%90% 85% 88% 90%

13Operations % of faults cleared by next working day BB 2.50

%100% 90% 97% 100%

14Operations % of new services (LL) provisioned within the norm (7 days for LL) 2.50

%99% 90% 95% 99%

15Operations % of new services (BB) provisioned within the norm (7 days of BB)

[subject to technical feasibility]5.00

%100% 90% 96% 100%

16Operations Overall performance (on scale of 1 to 5 - to be assessed by Director -

CFA)10%

5 3 4 5

Consumer

Mobility30%

17 Financial CM revenue (Rs. Cr.) 40% 1458.83 1312.95 1385.89 1458.83

18Customer / Market

CM Net adds - GSM (by number of subscribers) (in 000's) 13% 2497.00 2247.30 2372.15 2497.00

19Customer / Market

CM Net adds - CDMA (by number of subscribers) (in 000's) 2% 70 63 66.5 70

20Customer / Market

CM Net adds - WiMAX (by number of subscribers) (in 000's) 5% 80.80 48.48 64.64 80.80

21 Operations BTS availability (%) 10% 98% 96% 97% 98% 22 Operations Call drop rate (%) 10% 2% 2.5% 2.2% 2% 23 Operations Blocked call rate - TCH congestion (%) 10% 2% 2.5% 2.2% 2%


CM)10% 5 3 4 5

17

Group Performance Management System (GPMS) scorecardTerritorial Circle

Enterprise

15%

25Financial Enterprise BU revenue (Rs. Cr.) 40% 156.86 117.65 138.04 156.86

26Customer / Market

Number of new Enterprise Gold accounts penetrated 20% 20 14 17 20

27Operations MLLN / MPLS network uptime (%) 15% 98% 96% 97% 98%

28Operations Average provisioning time for leased circuits(no. of days) 15% 30 90 60 30


Enterprise)10% 5 3 4 5

Other 20%

30Financial New Businesses revenue (Rs. Cr.) 15% 17 8.5 12.75 17

31Financial Budget adherence on opex (% actual spend vs. budgeted) (on items

excluding those in schedule P)15% 100% 115% 105% 100%

32 Financial Operating ratio (%) 15% 58% 75% 68% 58%

33

Financial Overall assessment on Finance related issues, including budget adherence, financial planning, accounting, revenue assurance etc. (on scale of 1 to 5 - to be assessed by Dir-Finance)

15% 5 3 4 5

34Customer / Market

Customer satisfaction level (including QoS) (Scale of 1 to 5) 20% 5 3 4 5

35

Employee development

Overall assessment on HR related issues, including training, recruiting, promotion, transfers etc. (on scale of 1 to 5 - to be assessed by Dir-HR)

20% 5 3 4 5

Overall performance

10% 36Overall assessment

Overall performance (on scale of 1 to 5 - to be assessed by CMD) 100% 5 3 4 5

1. Marks for Good rating = 60, Very Good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very Good and between Very Good and Excellent would be linearly scaled

CFA - CO Nodal designate: Mr. Tarun Kumar (GM, BP - CFA)CM - CO Nodal designate: Mr. B.N. Mishra (GM, Product & Pricing)Enterprise - CO Nodal designate: Mr. S. K. Seth(GM, Business Planning)New Businesses - CO Nodal designate: Mr. R. P. Nigam (Sr.GM, TF - NB)HR - CO Nodal designate: Mr. Neeraj Verma (GM, Training)Finance - CO Nodal designate: Mr. K. R. Tiwari (GM, Transfer Pricing, Revenue Assurance & Finance Personnel)Note: i) Assessment by CMD and all directors of the BSNL board will be based on qualitative measures defined for the parameters

18

Group Performance Management System (GPMS) scorecardSSA

Group

Group level

weightage

S. No. Dimension KPI Weightage

Target

Performance Levels1

Target

Achieved

Marks Achieve

d

Weighted

Score

Good

Very Good

Excellent

Consumer Fixed

Access25%

1 Financial CFA Revenue - Basic (LL, PCO, VAS, etc.) (Rs. Cr.) 20%

2 Financial CFA Revenue - Broadband (including VAS, IPTV) (Rs. Cr.) 20%

3 Customer / Market Net adds - (by number of subscribers) Basic (in 000's) 5%

4 Customer / Market Net adds - (by number of subscribers) Broadband 10%

5 Customer / Market Productivity of Sales Associates of SSA in number of connections/Active SA per month 5%

6 Operations CCR rate for Landline local 2.5%

7 Operations CCR rate for Landline STD 2.5%

8 Operations Fault rate LL 2.5%

9 Operations Fault rate BB 2.5%

10 Operations % of faults cleared by next working day LL 5%

11 Operations % of faults cleared by next working day BB 5%

12 Operations % of new services (LL, BB) provisioned within the norm (7 days for LL, 7days for BB) 10% 13 Operations Timely implementation of CDR project (actual vs. planned) 5%

14 Operations Overall performance (on scale of 1 to 5 - to be assessed by Circle Head) 5%

Consumer Mobility 30%

15 Financial CM revenue (Rs. Cr.) 40%

16 Customer / Market CM Net adds - GSM (by number of subscribers) (in 000's) 15%

17 Customer / Market CM Net adds - CDMA (by number of subscribers) (in 000's) 5%

18 Customer / Market CM Net adds - Wi-Max (by number of subscribers) (in 000's) 5%

19 Customer / Market % of Non BSNL Retailers converted in to BSNL Retailers vis-à-vis number of retailers serveyed in SSA. 5%

20 Customer / Market True reflection of secondary sale of SIMs in sanchar soft ,for SIM selling and recharge selling retailers. 5%

21 Operations BTS availability (%) 20%


19

Group Performance Management System (GPMS) scorecardSSA

Enterprise 15%

23 Financial Enterprise BU revenue (Rs. Cr.) 40%

24 Customer / Market Number of new Enterprise Gold accounts penetrated 20%

25 Operations MLLN / MPLS network uptime (%) 15%

26 Operations Average provisioning time (no. of days) 15%


Other 20%

28 Financial New Businesses revenue (Rs. Cr.) 20%

29 Financial Budget adherence on opex (% actual spend vs. budgeted) (on items excluding those in schedule P) 15%

30 FinancialOverall assessment on Finance related issues, including budget adherence, financial planning, accounting, revenue assurance etc. (on scale of 1 to 5 - to be assessed by Circle Head)

20%

31 Customer / Market Customer satisfaction level (including QoS) (Scale of 1 to 5) 20%

32 Performance mangement %Implementation of Field Performance Management system on time 10%

33 Employee development

Overall assessment on HR related issues, including training, recruiting, promotion, transfers etc. (on scale of 1 to 5 - to be assessed by Circle Head) 15%

Overall performance 10% 34 Overall

assessment Overall performance (on scale of 1 to 5 - to be assessed by Circle Head) 100%

1. Marks for Good rating = 60, Very Good = 80, Excellent = 100. Marks achieved for rating below Good = 0. Achievement between Good and Very Good and between Very Good and Excellent would be linearly scaled Note: Targets would be set by nodal designate at circle office under the guidance of respective functional heads and the CGM. The nodal designates at SSAs are required to coordinate with the respective circle office nodal designatesfor any clarifications/further alignment as per the direction of SSA head.

20

Explanation of target and performance level for a positive parameter - Revenue

0

20

40

60

80

100

0 50 100 150 200 250 300 350 400

Revenue (Rs. Cr.)

Marks achieved

Marks achieved for revenue of a group between 0 and 400 Cr.Marks achieved for revenue of a group between 0 and 400 Cr.

8080 1001006060

TargetTarget

300

Performance levelsPerformance levels

100 150 300

Illustration of defining performance levelsIllustration of defining performance levels Illustration of marks vis-à-vis achievementIllustration of marks vis-à-vis achievement

Marks AchievedMarks AchievedTarget AchievedTarget Achieved

50100140200300350

06076

86.7100100

60 marks

80 marks

100 marks

0 marks

100 marks

21

0

20

40

60

80

100

Marks achieved

10 11 12 13

Average restoration time (hrs)

5 14 15 16 17 18 19 206 7 8 9

Explanation of target and performance level for a negative parameter – Average restoration time

Marks achieved for average restoration time of a group between 8 and 16 hrs

Marks achieved for average restoration time of a group between 8 and 16 hrs

8080 1001006060

TargetTarget

8

Performance levelsPerformance levels

16 12 8

Illustration of defining performance levelsIllustration of defining performance levels Illustration of marks vis-à-vis achievementIllustration of marks vis-à-vis achievement

Marks AchievedMarks AchievedTarget AchievedTarget Achieved

2016141286

0607080

100100

100 marks

80 marks

60 marks

100 marks

0 marks

22

Organisation redesignLINKAGES TO PMS

GPMS is presently proposed to be linked to PRP, PLINon – Financial Awards- Trophies, Certificates in FPMS

Important to link PMS to TransfersPromotionsTraining / Travel opportunities

Performance management system can be a key HR tool

Career management

• Promotion policy• Transfers

Non-financial rewards

• Top-performer program• Material rewards / perks• Training / travel

opportunities

Financial incentives

• Bonus scheme• Variable compensation• Other benefits

Recognition

• Feedback• Formal recognition in

company / other forums

Performance Management System

Source: BCG analysis

23

Linkage of GPMS to PRP

DPE Guidelines

How can PRP be worked out?

24


GPMS could potentially be the basis for PRPIncentive payout pool available will be based on the company's financial performance

Profit before Tax (PBT) for

current year

Incremental PBT (Current –Previous)

X

X

3%

10%

Total payout pool available

(cannot exceed 5% of current year PBT)

Contributes to 40% of payout pool (ceiling

2% PBT)

Contributes to 60% of payout

pool

+

1. Ceiling of 2% of current year PBTSource: Department of Public Enterprise (DPE) guidelines

A

B

DPE guidelines for PRP (Performance Related Pay)DPE guidelines for PRP (Performance Related Pay)

25


Individual payout to be based on a combination of factors

1. PRP eligibility based on MoU rating as per DPE guidelines: Excellent (100%), Very Good (80%), Good (60%), Fair (40%), Poor (0%). 2. Example: if available payout pool is Rs. 30 Cr. and total possible payout is Rs. 40 Cr., pro-rating factor is 30/40 = 0.75Source: Department of Public Enterprise (DPE) guidelines

PRP calculations

PRP from current year profit

PRP from incremental profit

Total

PRP split

60%

40%

Base Salary(Rs.)

MoU rating1

Perfor-mancerating

Grade level

Pro-rating factor

Payout(Rs.)

1 2 3 4 5 6

To be calculated

from current

and previous year PBT

Scaling factor based

on available payout pool2

To be calculated

from current

and previous year PBT

Based on DPE

guidelines

A

B

Base salary of

the individual

Company MoU

ratingX X

Individual's

Performance rating

PRPceiling for

each grade

level as per DPE

guidelines

X X X

Based on GPMS

scorecard rating

26


Groups within a category will have a 'bell-curve' distribution based on performance

Group category

Corporate Office

Territorial Circles

Non territorial circles

SSA

Total

Excellent (15%)

1

4

3

50

58

V. Good (20%)

1

5

4

66

76

Good (25%)

2

6

5

82

95

Fair (30%)

2

8

7

99

116

Below Par

(10%)

1

3

2

33

39

Distribution of Groups based on performance

Total no. of units

7

26

21

330

384

27


Performance rating and distribution of employees across ratings feeds into incentive payout calculations

Rating

Excellent

Very Good

Good

Fair

Below Par

% employees

15%

20%

25%

30%

10%

% employees falling under different ratings (bell curve distribution1 )

Rating based on scorecard assessment

Excellent

Very Good

Good

Fair

Below Par

PRP eligibility

100%

75%

50%

25%

0%

PRP eligibility for different ratings

4

1. DPE guidelines recommend following a "Bell curve approach"Source: Department of Public Enterprise (DPE) guidelines

Bell curve will be applied at the group level for Corporate Office, Territorial circles, Non-territorial circles, SSAs

28


Individual payout to be based on a combination of factorsIncludes company rating, individual performance rating, grade level and payout pool available

PRP calculations

PRP from current year profit

PRP from incremental profit

Total

PRP split

60%

40%

Base Salary(Rs.)

5 L

5 L

MoU rating

Fair(40%)

Fair(40%)

Perfor-mancerating1

Good(50%)

Good(50%)

Grade level

E-5(50%)

E-5(50%)

Pro-rating factor

0.90

0.90

Payout(Rs.)

27k

18k

45k

1 2 3 4 5 6

1. Individual performance rating to be initially based on Group Performance rating

Based on DPE

guidelines

Example - Representative numbers only

Current year PBT = 2000 cr., Previous year PBT = 1500 cr.Current year PBT = 2000 cr., Previous year PBT = 1500 cr.

29

FPMS

FIELD PERFORMANCE MANAGEMENT SYSTEM

30

Objectives for Field-level Performance Management System

• KPI based mechanism for measuring & rewarding performance at the field level

• 5 critical job families to start with• Consumer Mobility sales (retailer managers)• Consumer Fixed Access sales (sales associate)• CSC• Exchanges (PSTN & Broadband) – internal & external plant• SSA level consumer mobility ops team

• Additional job families will be added over time• FPMS already launched

B

31

Combination of individual and group based approach

Coverage at Group level / Individual levelCoverage at Group level / Individual levelJob family / Group Job family / Group

Sales – Consumer Mobility (Retailer Manager)

Sales – Consumer Fixed Access

Customer Service Centre

Fixed Line & Broadband – Exchange

SSA – Consumer Mobility Team

Organization coverageOrganization coverage

Performance to be recognized at individual level

Performance to be recognized at Group level

Sales roles

Operational roles

Customer centric role

Key Performance Indicators have been defined for measuring performance of Job families / Groups

1

2

3

4

5

B

32

Group based Awards in FPMS

1. For exchanges and CSCs, topper group one each in each category of exchange and CSC would be awarded in all SSAs. (Swarna CSC and Swarna Exchange in each category)

2. For consumer mobility operations teams, top 3 groups would be awarded in every circle.

3. The scheme for exchanges and CSCs would be driven at the SSA level and for the consumer mobility operations teams at the Circle level. The final decision on awards at SSA level should be made by the SSA Head after taking into account the KPI scores of all Exchanges and CSCs in the SSA.

4. The final decision on awards at the Circle level should be made by the PGM/GM (Consumer Mobility) after taking into the account the KPI scores of all SSA-level Consumer Mobility Operations teams in the Circle.

5. The PMS team at the corporate office would be responsible for the overall coordination

33

Proposed Awards for CSCs

Name of award

LevelType of Category

FrequencyAward for group

Award for individuals in group

Basis for decision

Swarna CSC(One in each Category)

Within SSA Type-

I,II,and III

Quarterly Certificate of Merit, with Rolling Trophy

Certificate Highest score on KPIs for CSCs

34

Proposed Awards for Circle-level Consumer Mobility Operations teams

Name of award

Level FrequencyAward for group


Basis for decision

Swarna padak

Within Circle

Quarterly Certificate of Merit ,with Rolling Trophy

Certificate Highest score on KPIs for CM teams

Rajat padak

Within Circle


Certificate 2nd Highest score on KPIs for CM teams

Kansya padak

Within Circle


Certificate 3rd Highest score on KPIs for CM teams

35

Proposed Awards for Exchanges

Name of award

LevelType of Category

FrequencyAward for group


Basis for decision

Swarna exchange(One in each Category

Within SSA

Cat-A,B,C,D

Quarterly Certificate of Merit, with Rolling Trophy

Certificate Highest score on KPIs for exchanges

36

Efficiency of bill collection1. Number of bills collected per day / Number of cash counters in

the CSC

Sales leads generated per employee3

2. Number of sales leads generated / Number of employees in a CSC

Waiting time of customers in the queue3. Waiting time in queue during the pay by due dates (based on

survey feed back)Efficiency of Survey4. % of survey form collected to total number of bills collected.

Customer feedback on qualitative aspects5. Average of rating given on a scale of 1 to 5 by customers.

Customer survey to include factors including (but not limited to): i. Responsiveness of staff to customer requests – change of

address, change of plans, disconnection, etc.ii. Knowledge of the people in the CSC about products and

plans iii. Availability of tariff plans and information brochures in the

CSCiv. Availability of products in the CSCv. Behavior and attitude of the staffvi. Cleanliness of the centre

Total

Field Performance Management System (FPMS) scorecardCustomer Service Centres


factorWeighting

factor

25%

15%

20%

10%

5%

5%

5%

5%5%5%

100%

TargetTarget

302

152

< 5 min.

Key Performance Indicators Key Performance Indicators

1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled 2. Representative numbers only – targets to be fixed3. For CSCs where lead generation is not feasible , 25% weightage will be divided as 10 %, 10 % and 5% amongst KPI 1,3 and 4 respectively.

Sub- Weighting

factor

Sub- Weighting

factor

GoodGood ExcellentExcellentFairFair


xxx


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxx xxx xxx xxx xxx

Targets and ScoresTargets and Scores

Customer Service Centres (CSCs)

30%

37

Time to provision new service1. % of new services (Land Line) provisioned within the norm (7 days for new LL)2. % of new services (LL, BB) provisioned within the norm (7 days for BB where

LL exists, 15 days for new LL + BB)Fault rate (%)3 Number of faults per 100 active connections (LL)(in %)4 Number of faults per 100 active connections (BB)(in %) Repeat fault rate (on same number) within 30 days5. Number of faults on a number which has been repaired once (in the last 30

days) per 100 active connections- Land Line6. Number of faults on a number which has been repaired once (in the last 30

days) per 100 active connections- Broad bandFault clearance turn-around time7. % of faults cleared within 24 hours(Land Line)8. % of faults cleared within 24 hours (Broad band) Time taken to service/execute requests9. % requests for local shift of LL executed within 3 days10. % requests for local shift of BB executed within 3 days11. % requests for inter-exchange shift of LL executed within 5 days12. % requests for inter-exchange shift of BB executed within 5 days13 % requests for termination of connection executed within 7 days (LL)14. % requests for termination of connection executed within 7 days (BB) Management of co-located BTSs15. BTS availability (%)16. Number of faults/interruptions per BTS due to passive infrastructure failures in a

month (Average fault rate over a quarter/year will be taken)Total


Field Performance Management System (FPMS) scorecard ( Exchanges)


factorWeighting

factor

5%

10%

5%

10%

10%

10%

10%10%

2%3%2%3%2%3%

10%

10%

100%

TargetTarget


xxx


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxx xxx xxx xxx xxx

1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled Note: The data for the above will be obtained from MIS reports generated in DotSoft, other softwares installed in SSAs;

38

BTS availability1. BTS availability (%) - for sites where responsibility is with SSA CM

team2. BTS availability (%) - for sites where responsibility is with

respective CFA teams at exchanges

Fault rate3. Number of faults per BTS due to passive infrastructure failures in

a month (Average fault rate over a quarter/year will be taken) – for sites where responsibility is with SSA CM team

Fault clearance turn-around time 4. % of faults cleared in 6 hours – for sites where responsibility is

with SSA CM team

BTS upkeep 5. Subjective assessment given by GM CMTS (O & M) at circle

based on (but not limited to): (1) Earthing at BTS site (2) Installation and upkeep of lightning arrestor (3) Proper functioning of aviation light (4) Proper working of "tower up" beep (5) RF cable safety (6) Cleanliness of site

Total

Field Performance Management System (FPMS) scorecardSSA consumer mobility operations team


factorWeighting

factor

35%

15%

30%

10%

10%

100%

TargetTarget

Key Performance Indicators Key Performance Indicators

1. Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair and Good and between Good and Excellent would be linearly scaled Note: The data for the above will be obtained from MIS reports generated in DotSoft, other softwares installed in SSAs



xxx


achievedMarks

achievedMarks

achievedWeighted

scoreWeighted

score

xxx xxx xxx xxx xxx

Targets and ScoresTargets and Scores

SSA Consumer Mobility Operations Team

39

Individual based incentives in FPMS-Illustrative Key Performance Indicators for sales roles in Consumer Fixed Access

1. Sales achieved for Landline

2. Sales achieved for Broadband

3. Number of connections recovered

4. Sales achieved for EVDO or 3G cards or FWTs

2

40

Illustrative Key Performance Indicators for sales roles in Consumer Mobility

1. Sum of SIMs sold by franchisee whose area is being surveyed by the Retailer Manager

2. Sum of recharge value sold by franchisee whose area is being surveyed by the Retailer Manager

3. Number of retailers visited by the retailer manager

1

41

Individual PMS (IPMS)

Being targeted for DGM level officers and above

Gradually, the system to be expanded to other levels

Requires complete IT support to handle PMS of this size

PMS module being planned in ERP system

Finally, an individual’s performance to be combination of GPMS and IPMS

42

End of Presentation

madhu arora, gm (corporate restructuring)

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