1. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Lack of Goal Congruency
Individual’s
Needs/Goals
Company or
Departmental
Needs/Goals
1

2. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Goal Congruency
Individual’s
Needs/Goals
Company or
Departmental
Needs/Goals
2

3. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Levels of Organizational Control
The Environment
Core
Control
3

4. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Elements of the Performance
Management System
4

5. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Elements of Core Control Systems
• Key Result Areas (From corporate or
department plans or individual role
descriptions)
• Objectives (From corporate or department
plans or individual role descriptions)
• Goals (From corporate, department, or
individual plans)
• Measurement
• Progress Review
• Performance Evaluation
• Rewards
5

6. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Key Result Areas
• Areas of performance which are essential to
the company’s, department’s or individual
position-holder’s success.
• Nine KRAs is considered the maximum number
6

7. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Objectives
• Broad statements of what needs to be in
achieved in each Key Result Area.
• For the company/department, objectives
define “strategy” – results to be achieved over
the longer term.
• For position-holders, objectives/activities
define what needs to be achieved within each
KRA.
• Not changed unless the strategy or structure
of the organization changes.
7

8. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Goals
•
Specific, measurable, time-dated
performance targets to be achieved. Each
objective will have one or more goals.
•
Requirements for effective goals:
–
–
–
–
Limited in number
Realistic; something that can be attained
Stated in measurable terms
Expectation of success should not be 100%
8

9. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
SMART Goals
S
Specific Outcome
M
Measurable
A
Achievable
Accountable and
R
Results-Oriented and
T
Time-Dated
Realistic
9

10. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Performance Measures
• Methods and procedures used to evaluate
performance
• Guidelines include:
– A preference for objective tests
– If subjective means are used, several different
measurements are suggested
10

11. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Measurement Methods
•
Profit Measurement
•
Monetary Measurement
•
Non-monetary Measurement
– Ratio: Numbers indicate the actual amounts of the
property being measured. Has an empirically
meaningful 0.
– Interval: Numbers have quantitative significance –
they represent distances between objects. The
difference between a score of 8 and a score of 10 is
the same as the difference between a score of 2 and
4.
– Ordinal: Numbers signify rank order, but have no
arithmetic significance.
– Nominal: Numbers are “labels” intended for
classification.
11

12. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Progress Review: Periodic Review of
Progress Made Toward Goals
Regular, periodic feedback to each member of a
manager’s team on performance against goals,
tasks assigned, and on-going responsibilities.
12

13. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Performance Evaluation
A formal process of evaluation and feedback
(based on established goals) from which
adjustments in an individual employee’s
performance can be made.
13

14. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Rewards
• Positive reinforcers for accomplishing
appropriate, goal-directed behavior.
• Rewards need to be valued by people.
• Something not desired does not constitute a
reward.
• Types of rewards
– Intrinsic
– Extrinsic
14

15. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
The Performance Management System
Strategy/
Role
Description
Goals
Behavior
Results
• KRAs
• Objectives
Progress
Review/
Feedback
Rewards
Performance
Evaluation/Appraisal
Measurement
System
15

16. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Operationalizing the
Performance Management
System – Individual Level
16

17. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
What is a Key Result Area-Based Role
Description?
•
Designed to support corporate strategy by
identifying specific areas where a position
contributes to the achievement of the
organization’s mission.
17

18. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning Waterfall
Organization
MISSION
STATEMENT
Business
Unit
Department
Individual/
Manager
KEY RESULT
AREAS
MISSION
STATEMENT
OBJECTIVES
KEY RESULT
AREAS
MISSION
STATEMENT
OBJECTIVES
KEY RESULT
AREAS
MISSION
STATEMENT
GOALS
OBJECTIVES
KEY RESULT
AREAS
ACTION
STEPS
GOALS
OBJECTIVES/
ACTIVITIES
ACTION
STEPS
GOALS
GOALS
ACTION
STEPS
CALENDARED
ACTION STEPS
18

19. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
What is a Key Result Area-Based Role
Description?
• Designed to support corporate strategy by
identifying specific areas where a position
contributes to the achievement of the
organization’s mission.
•
Communicates the dimensions of a position
to current and potential holders of that
position, as well as others within the
organization.
•
A guide for individual behavior.
•
A tool that managers can use as input for
hiring, training, and day-to-day supervision.
19

20. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Role Description
Mission
PositionSpecific
Broad statement of why
the position exists.
Objectives/Activities
PersonSpecific
Key Result Areas
Categories of activities
on which the position
holder should focus to
maximize success.
Broad statements of
what should be focused
upon in each category.
Goals
Action Steps
Results to be achieved
within the next 12
months within each
KRA.
Calendared activities to
achieve each objective.
20

21. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
What are the Components of the KRA
Role Description?
• Date
• Time Allocations
• Department
• Objectives/Activities
• Title
• Position
Requirements
• Mission
• Authority
• Key Result Areas
21

22. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Date, Department, Title
• When was the role description created or last
updated?
• Where in the organization does this position
reside?
• What do we call this position?
22

23. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Mission
• Why does this position exist in our
organization?
• What is its basic purpose?
• How does it support the organization’s
mission?
23

24. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Mission Statement
Director of Marketing
To develop, implement, monitor and evaluate
strategic marketing plans that enable our firm
to profitably capture a dominant share of the
market. To effectively and efficiently utilize the
resources of the marketing team in meeting or
exceeding customer requirements.
24

25. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Mission Statement
Executive Assistant
To ensure that the executive’s needs are met in
a smooth and timely manner. To serve as the
executive’s liaison with customers and staff.
25

26. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
What is a “Key Result Area”?
• An area where performance is critical to
success.
• A “category” of activities.
• Expressed in one, two, or three words (e.g.,
People Development, Manufacturing
Capability, Planning).
• Used in planning at the corporate,
department, and individual level.
• There should be 5 to 9 Key Result Areas.
26

27. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Example KRAs
Company President
• Financial Performance
• Strategic Planning
• Organizational Development
• Shareholder and Public Relations
• Corporate Culture Management
• Board Relations
• Staff Development and Supervision
27

28. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Role Description Worksheet
Date:
Department:
Title:
Mission:
KEY RESULT AREAS
Time Utilization
Now
Goal
1.
2.
3.
4.
5.
6.
7.
Position Requirements:
Education/Experience:
Skills/Knowledge/Ability:
Authority:
28

29. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Objectives/Activities
• For each KRA, what are the specific activities
that must be completed to fulfill the
performance requirements of that area?
• Specific to the position vs. the individual.
• Ongoing responsibilities vs. time-dated
goals.
• Expressed as an action (starts with a present
tense action verb).
29

30. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Present Tense Action Verbs
• Oversees
• Negotiates
• Participates
• Analyzes
• Schedules
• Trains
• Approves
• Plans
• Coaches
• Authorizes
• Decides
• Hires
• Controls
• Inspires
• Fires
• Coordinates
• Motivates
• Serves
• Creates
• Writes
• Maintains
• Designs
• Edits
• Facilitates
• Develops
• Purchases
• Initiates
• Ensures
• Sells
• Implements
30

31. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Levels of Decision-Making
1.
I have complete authority to decide and to act.
2.
I have complete authority, but must notify
someone else after I have decided.
3.
I have complete authority, but must consult
with someone else before I decide.
4.
I need the prior approval of someone else
before I decide.
5.
Someone else must consult with me before
deciding.
6.
Someone else informs me of their decision.
31

32. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Example Objectives/Activities
Administrative Support
• Word processes correspondence, manuscripts,
reports and other documents.
• Transcribes CDs.
• Screens and handles telephone calls.
• Maintains filing system.
32

33. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Example Individual Objectives/Activities
Supervision
• Recruits, hires and fires direct reports
• Oversees the development and maintenance of role descriptions for
direct reports
• Works with direct reports to establish their annual goals that support
the corporate strategy
• Meets periodically with direct reports to review operations
• Monitors the performance of direct reports toward their annual goals
• Conducts annual formal performance reviews for direct reports
• Gives informal performance feedback periodically to direct reports
• Decides compensation for direct reports
• Coaches, develops and serves as a resource to direct reports
• Disciplines employees as appropriate
33

34. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Role Description Worksheet
KEY RESULT AREA
1.
_______________________
OBJECTIVES/ACTIVITIES
a.
b.
c.
d.
e.
2.
_______________________
a.
b.
c.
d.
e.
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
34

35. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Role Descriptions
35

36. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Example of a Company President Role Description
Date:
August 2, 2013
Department: Corporate
Title:
Company President
Mission:
To profitably and effectively manage the company and to
maintain the highest possible level of customer satisfaction.
Key Result Areas
1. Profitability
2. Staff Development/Management
3. Corporate Management
4. Planning
5. Corporate Culture Management
6. External and Public Relations
7. Organizational Development
8. Miscellaneous
Time Utilization
15%
10%
15%
20%
10%
15%
10%
5%
100%
36

37. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Example of a Company President Role Description
KEY RESULT AREAS
1.
Corporate Management
OBJECTIVES/ACTIVITIES
a.
b.
2.
Planning
Working with the senior management
team, ensures that corporate performance
is aligned with the company’s strategy.
Meets regularly with each senior manager
to identify and resolve issues related to
corporate performance.
a.
Leads the corporate strategic planning
process.
b. Works with senior management to develop
the corporate plan.
c. Works with members of senior
management to evaluate performance and
develop strategies for improving
performance against the corporate plan.
37

38. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Goals, Performance Review,
Performance Evaluation and
Rewards
38

39. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategies for Establishing Individual
Performance Goals
• Link to the individual’s Key Result Areas
• Support of the company’s business unit’s plan.
• Consider the individual’s needs, goals, skills, abilities.
• Limit number – no more than 3 to 5 in each Key Result
Area.
• Establish such that the individual responsible can exert
control over their achievement.
• Record in writing on the Performance Appraisal Form or
a “Goal Setting Form” so that they can be referred to
regularly by the manager and the individual responsible
for achieving them.
39

40. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Goal Setting Worksheet
Individual’s Name:___________ Position:_______________
Key
Result
Area
Goals
Support for
Division/
Department
Goals
Support for
Personal Goals
1.
2.
3.
4.
5.
40

41. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Performance Evaluation Form
Individual’s Name:___________ Position:_______________
Key Result
Area
Performance Achieved
Goals
1.
2.
3.
4.
41

42. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Exercise: What Do People Value?
Reward
Importance
in General
Importance to
the People You
Supervise
Job security
Good wages
Interesting work
Sympathetic help on personal
problems
Promotional growth in the
organization
Feeling of being in on things
Full appreciation of work done
Personal loyalty to employees
Good working conditions
Tactful disciplining
42

43.
Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Plan Page
KEY RESULT AREA:
1.0 Markets and Products
Objective 1.1: Grow active buyer base at a rate consistent with overall
sales growth per year.
Goals
Prty
Who
When
1. Increase our
active buyer base
by 50% from
1/1/0x to
9/30/0x.
A
BH
10/1/13
2. Identify and
evaluate vehicles
for growth
beyond FY’0x.
A
BH
9/30/13
3. Identify new
strategies to
support FY ‘0x
growth.
C
LM
Status
6/30/13
43

44. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Operationalizing the
Performance Management
System – Company Level
44

45. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Key Result Areas for the Company
It is advisable to use the 6 levels of the Pyramid
of Organizational Development + Financial
Results:
- Markets
- Products
- Resources
- Financial Results
- Operational Systems
- Management Systems
- Culture
(Fiscal Management)
Why?
45

46. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Pyramid of Organizational Development
Corporate
Culture
Values Beliefs Norms
Management Systems
Planning
Accounting:
• Billing
• Payroll
Organization
Management
Development
Operational Systems
Production:
Marketing:
•Shipping
• Selling
Perf.
Mgmt.
Personnel:
• Hiring
• Compensation
Resources Management
Financial
Resources
Human
Resources
Technological and
Physical Resources
Products & Services
Develop Products (Services)
Markets
Define Market Segments and Niche
Business Foundation
• Business Definition
• Strategic Mission
•
Core Strategy
46

47. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Objectives – Company
KRA 1.0 Markets
•
Profitably grow our market share.
•
Foster the best customer relationships in our industry.
Key Result Area 2.0 Resources
•
•
•
Achieve/maintain highly trained staff.
Minimize staff turnover.
Maintain physical environment with up-to-date
equipment, facilities, design, and ambiance that is both
safe and regulatory agency compliant.
47

48. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Goals
• Develop and begin production of two new
internally generated product ideas that will
result in total sales of $4 million by 12/31/13.
[Peter]
• Earn revenues of $5 million by 12/31/13.
[Paul]
• Open new accounts with average sales of
$30,000 each by 12/31/13. [Mary]
48

49.
Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Plan Page
KEY RESULT AREA:
1.0 Markets and Products
Objective 1.1: Grow active buyer base at a rate consistent with overall
sales growth per year.
Goals
Prty
Who
When
1. Increase our
active buyer base
by 50% from
1/1/0x to
9/30/0x.
A
BH
10/1/13
2. Identify and
evaluate vehicles
for growth
beyond FY’0x.
A
BH
9/30/13
3. Identify new
strategies to
support FY ‘0x
growth.
C
LM
Status
6/30/13
49

50. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Performance Measurement: Corporate
Scoreboard
Key Result Area:
Objective
Goal
Measure
Evaluation
Overall Evaluation: _____
56

51. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Bringing It All Together: The Performance
Scoreboard
KRAs
Objectives
Goals
Measures
Local Area
Marketing/
Sales
Growth
Work with
branch
personnel to
profitably
achieve sales
targets.
Train Branch
personnel in
branch
business
development
techniques.
Achieve 200X
Sales targets.
$$ Achieved
$$ Achieved
vs. budget
80% of
Branch
personnel will
meet
Countrywide
standards in
business
development
by 12/31/0X.
Assessment
checklist of
business
development
standards.
Staff
Develop/
Mgmt
Performance
57

52. Session 4
NAWBO-LA PEAK LEADERSHIP ACADEMY
Making Planning Work
• Base your plan on the best available information.
• Involve other members of your team.
• Take time to plan.
– At least a full day, once a year, to review/refine your strategy
and set annual Goals.
– At least a ½ day each quarter to review/update your plan and
problem-solve.
– At least 2 hours a week to individual time management –
schedule time in your calendar to work on Goals.
• Set realistic Goals.
• Hold people accountable for results.
• Celebrate and reward success.
• Don’t give up!
– Remember that planning is like sausage AND
– It is an invisible key to success!
58