Bridge Knowle "YEAR END PERFORMANCE APPRAISAL" Workshop November, KL • Know the Importance of planning, preparing, and structuring the performance appraisal • Learn how to listen, question and give clear and specific feedback • Handle performance problems and sensitive issues effectively • Review performance objectives so you can provide specific feedback describing the gap between expected and actual performance • Avoid common pitfalls when conducting the appraisal • Create Individual Development Plans with your staff • Monitor and review progress of objectives and development plans between review meetings • Develop your feedback skills to motivate staff between appraisal meetings

1. EMPLOYEE YEAR END PERFORMANCE APPRAISAL [Matching Employee KPI to Company Goals & Benefits Structure] Training Session and Workshop Kenny Ong

2. Intro What is your objective?

8. Why do we hate Performance Appraisals?

9. Complaints about Performance Appraisals As an Appraisee As an Appraisor Mgmt/HR

15. Coaching & Counseling Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?

17. What’s In Between Planning and Execution? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model

18. What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning BSC and KPIs Strategy Business Model Business Strategy Execution Talent Management

20. 1. Using Performance Appraisals in Performance Management

28. The Integrated and Holistic Performance Management System

29. Why Performance Appraisal? Performance Management Selection Development Motivation Evaluation

32. Selection and Identification PERFORMANCE APPRAISAL 1. Results 2. Values 3. Special Contributions

33. Selection and Identification POTENTIAL EVALUATION 1. Capacity 2. Competencies 3. Culture

34. Selection and Identification POTENTIAL EVALUATION 1. Capacity Learn Next Level Ambition

35. Selection and Identification POTENTIAL EVALUATION 2. Competencies Competent Reliable/Consistent Pressure

36. Selection and Identification POTENTIAL EVALUATION 3. Culture Demonstrate Improve Influence

39. 2. Getting Performance Appraisal Objectives Right

40. What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com No wonder our employees are confused!

42. What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model Business Plan Implementation Talent Management www.myCNI.com.my www.OOBEY.com

43. What is Performance Measurement used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com

45. Which system should we use? Behavior-based Knowledge/Skill based Results-based Trait-based Managing Performance = Managing Expectations What’s YOUR expectation? Activity based Refer: Which Performance Management System should we use?

46. 3. Performance Management

47. Alignment: 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources

53. 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources

54. Performance Management Cycle

56. Performance Planning

57. District Engineer, TNB Duties and Responsibilities If stated as Accountabilities then the job must produce : Control, operate and maintain the District Distribution System Ensure uninterrupted supply to consumers in the district by operating the District Distribution System. Manage major supply projects to customers in the district. Ensure satisfaction of the major customers in the district by managing supply and Distribution. Supervise all technical staff in the district. Ensure high performance and Productivity of technical staff by adopting proper human resource management methods on selection, training, coaching, counselling and motivation. Plan and design the High voltage system Ensure availability of adequate supply for future needs of industries in the district by planning and designing the High voltage System

59. Exercise: Results Description Key Result Key Activities 1. 1. 2. 3. 4. 2. 1. 2. 3. 4. 3. 1. 2. 3. 4. 4. 1. 2. 3. 4.

64. Basics of the Balanced Scorecard

66. Cause and Effect Revenue Base Retention Share Gain Positioning Adjacent Market New Business Financial Learning & Growth Internal Process Customers Cost Margin Cash Flow Asset Operational Excellence Product Leadership Customer Intimacy Investment Strategy Competencies Information Systems Motivation, empowerment, alignment Satisfaction

67. Cause and Effect: An Example Financial Learning & Growth Internal Process Customers / Distributors Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes

68. Example: 1 st Level BSC & KPIs Financial Learning & Growth Internal Process Customers / Distributors Profit after Tax. Revenue. Cash-to-cash cycle. Operating cash flow Customer Complaints. Customer Acquisition Rate. Product Availability. Product Quality & Service. Renewal Annual Subscription. Distributor Rank Achievement. No. of Active Distributor. No. DC/Regional Sales. Distributor with commission Customer Database Availability. Accuracy of Forecast Planning. Continuous Improvement. Response Time to Customer Needs. Perfect Order Fulfillment. Inventory Turnover. Number of Effective Sponsoring Program. On Time Delivery. No. of Effective Training. Number of Effective A&P % of staff evaluated on Core Competency Framework. % of staff with Career Development Plans. No. of training hours completed per staff. % of staff with access to strategic information. Q12 Index. % staff evaluated on Culture alignment

69. Leading and Lagging KPIs

73. Cause & Effect: Strategy Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” Internal Process “ To satisfy our customers, in which internal business processes must we excel?" Customer “ Who are our target customers? What is our value proposition?” Learning & Growth “ What capabilities and tools do our employees require to help them execute our strategy?

74. Top Performers and the ‘No Contribution’ Problem Historical, Outcome, Results, 1 st Level, Usually Financial or tangible, Quarterly and Annually Current, Indicators, Drivers, 2 nd Level onwards, usually non-financial or intangible, Weekly, Monthly and Quarterly Lagging Leading

75. Developing ‘Driver’ KPIs Customer Retention % Lagging, 1 st Level Customer Satisfaction Index Leading, 2 nd Level On time delivery Time to market for new products TNA % Defect levels, warranty claims Leading, 3 rd Level onwards

81. Performance Standards

82. MBO Standards A Excellent B Good C Average D Poor E Useless

83. MBO Standards A Excellent B Good C Average Good D Poor E Useless

84. MBO Standards A Excellent Excellent B Good Very Good C Average Good D Poor Not Good E Useless Commit Suicide

85. MBO Standards Refer: Priority, Targets and Standards A Excellent Consistently achieved 4 for 3 quarters B Very Good Higher than planned results C Good Achieved Planned Results D Not Good Did not fully meet planned results E Commit Suicide Unacceptable performance

87. Performance Planning and KPIs: Cascading from Company-Department-Individual

88. E3 – Department BSC Financial Perspective Goals Measures Targets CAPEX OPEX Quality Innovation On Time Delivery

89. Individual Performance 1.0 Key Results Area (Max 6) 2.0 Goals and Targets for Q1 3.0 Achievements and Efforts for Q1 4.0 Merit* 5.0 Rating (Merit x Weight) 6.0 Appraiser Overall Comments/ Feedback

90. Cascading Customer Perspective Goals Strategies Targets Direct Indirect Base Retention Mkt Share Gain Mkt New Business BD

91. E3 – Department BSC Customer Perspective – Marketing Department Budgeting Goals Strategies Targets CAPEX OPEX Base Retention Share Gain

92. Individual MBO Employee A – Marketing Executive Re: Base Retention KRAs Action Plans Targets Weight (%) Score Class A Customer Retention Class B Customer Retention Competition Crossovers

93. Competencies

97. Competencies

104. Competency Standards 3 Meets behavioral standards consistently . Is a good role model for others. 2 Meets behavioral standards some of the time. Needs improvement. 1 Does not meet behavioral standards. Require counseling or disciplinary actions.

105. Exercise: Competency Standards

106. Performance Coaching

107. Coaching & Counseling Refer: Coaching Self-Assessment Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?

110. 4. Putting it all together

111. Designing Your Own Performance Appraisal Form

114. Performance Evaluation

117. 5. People Skills and Performance Appraisals

119. Law of the Ping-Pong Ball a.k.a. Law of Cause and Effect

123. Communication SF LINA L isten with interest and praise make the person feel I mportant use their N ame A sk questions

124. Influence SF PASSE P raise and encourage A sk questions allow the person to S ave Face use S MART goals E ncourage small improvements

125. Personality SF S + FH + C S mile F irm H andshake C ompliment

126. Communication Styles Refer to Handout for detailed explanation Assertive Passive- Aggressive Aggressive Passive Comm    

127. How to be Assertive 1. Describe 2. Express 3. Specify

138. Understanding Conflicts What is…, Sources of…,

139. Why do Conflicts happen? Unrealistic Expectations Inadequate Resources CONFLICTS Lack of Cooperation Reduce Energy

144. Sources of Conflicts Instrumental Interest Personal

148. Managing Conflicts and Difficult People The world is full of people who don’t like you… live with it.

150. 1. Compromise, if possible

151. 2. Win-win, if possible

152. 3. Adapt, to different people

153. 4. Hide your Ego

154. 5. Lower your Expectations

155. 6. Find Common Ground

156. 7. Same Destination, Different Paths

158. 9. Accept the fact

159. 10. Face

161. 6. The Performance Management Handbook

163. 7. Managing Performance and Motivation

165. Analyzing and Solving Performance Discrepancies

170. Alignment: 4-Wheels Model Philosophies Corporate Objective Performance Objectives Structure Resources Leadership Person

171. Performance and Motivation

172. Understanding Personalities Handouts: Personality Types & Getting Tasks Done Closed Open People Task Perfect: Melancholy Powerful: Choleric Popular: Sanguine Peaceful: Phlegmatic

173. The Motive Profile Power (nPow) Achievement (nAch) Affiliative (nAff)

175. The Motive Profile shown below has been constructed using a non-conscious response instrument (Picture Story Exercise - McClelland) The typical superior performing manager profile: Person Job Person High Med Low Ach Aff Pow

176. Profile Mismatches Mentoring, coaching and counselling helps people consciously develop job related responses. M L M L Engineer in Managerial job Ach Aff Pow H M L Teacher in Managerial Job Ach Aff Pow H M L Ach Aff Pow Managerial job H Ach Aff Pow Engineer H

177. Motivating Talent Hope Control

178. Motivating Talent Passion Job Growth Talent Minimum Motivation Target: 2 out of 4 Delegation

179. 8. Performance and Reward

187. Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 4 3 2 1

188. Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 4 3 5% 2 1

189. Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 9 4 7 3 9 7 5% 4 3 2 2 1 0

190. Compa Ratio Table < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 15 12 9 8 7 4 12 9 7 5 3 3 9 7 5% 4 3 2 6 4 2 1 0 1 4 2 0 0 0

192. Employee Differentiation through Relative Performance and Talent Management

194. Employee Distinction? < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 9 8 7 6 5 4 8 7 6 5 4 3 7 6 5% 4 3 2 6 5 4 3 2 1 5 4 3 2 1

195. Employee Distinction? < 0.7 ≥ 0.7 - ≤0.9 >0.9 - <1.1 ≥ 1.1 - ≤1.3 > 1.3 5 20 15 12 8 5 4 18 12 9 5 3 3 9 7 5% 4 3 2 1 1 1 0 0 1 0 0 0 0 0

196. Employee Distinction Average Rating Rating Multiply Factor Example Rating Example Increment > 4.1 5 2 4.2 8.4% > 3.3 – 4.1 4 1.2 3.5 4.2% > 2.3 – 3.3 3 0.75 2.8 2.1% > 1.3 – 2.3 2 0.5 1.8 0.9% ≤ 1.3 1 0 1.0 0%

198. Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff

199. 9. Performance Management: Issues and Challenges

204. End Point The end of the Beginning

205. Your Business Model

208. Business Model: USP USP (How do I position my organization?) External Customer **Internal

209. Business Model: Profit Model Revenue Cost Margin Cash Flow Assets

211. Alignment & Consistency: Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)

212. Strategy: Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)

215. Alignment & Consistency: Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)

216. Alignment & Consistency Operational Excellence (low cost producer) Product Leadership (best product) Customer Intimacy (best total solution) HP well-balanced portfolio, mass customization Acer super lean cost structure, aggressive pricing Apple powerful products, premium pricing, limited range Still Doing well in 2009/2010

220. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/