CNI人力資源精品之銷售市場財務(wù)協(xié)作LINKING FINANCE FUNCTIONS WITH SALES AND MARKETING TO ACHIEVE IMPROVED PERFORMANCE

1、linking finance functions with sales and marketing to achieve improved performance case studies, concepts and debatable ideas kenny ong cni holdings berhad www.mycni.com.my www.oobey.com intro: cni 1. 19 years old 2. core business: mlm 3. others: contract manufacturing, export/trading, ecommerce, f

2、1995 product leadership (best product) customer intimacy (best total solution) strategy: disciplines www.mycni.com.my www.oobey.com intro: market discipline * treacy 1995 product leadership (best product) customer intimacy (best total solution) strategy: disciplines www.mycni.com.my www.oobey.com th

3、e mcplaybook* make it easy to eat 50% drive-thru meals held in one hand make it easy to prepare high turnover tasks simple to learn 1995 product leadership (best product) customer intimacy (best total solution) strategy: value disciplines www.mycni.com.my www.oobey.com operational excellence (low co

4、st producer) ref: the discipline of market leaders, michael treacy 1995 product leadership (best product) customer intimacy (best total solution) strategy: value disciplines www.mycni.com.my www.oobey.com link #3: kpis dangers of bsc, kpis and other evils sold by consultants www.mycni.com.my www.oob

5、ey.com “in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to ou

6、r success. no wonder our performance is inconsistent ceo, anonymous www.mycni.com.my www.oobey.com before we start in the old days of hr average training hours per staff % of staff attending training # of training programs % of training programs conducted training needs analysis conducted competency

7、 models developed training budget as % of payroll whats wrong with this picture? www.mycni.com.my www.oobey.com before we start moral of the story 1. innovation: business models products services 2. market leadership 3. competitive differentiation get the picture? www.mycni.com.my www.oobey.com “wha

8、t is the moral of the story?” www.mycni.com.my www.oobey.com what is strategic planning? strategic planning variables: research growth risks stakeholders constraints swot misc. output: plans priorities kpis www.mycni.com.my www.oobey.com before we start which comes first? 1. strategies - kpi? 2. kpi

9、 - strategies? www.mycni.com.my www.oobey.com 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?”

10、 learning 1995 product leadership (best product) customer intimacy (best total solution) strategy: disciplines, priorities, and kpis www.mycni.com.my www.oobey.com sample kpis for each discipline operational excellence price selection convenience zero defects growth customer intimacy customer knowle

11、dge solutions offered penetration customer data customer-success focus product leadership marketing functionality # of successes # of failures learn from key users interdisciplinary teams pipeline www.mycni.com.my www.oobey.com mbo sources of kras and kpis, targets 1. department scorecard e3, 2. emp

12、loyees job description, 3. department sop, 4. department quality objectives, 5. corrective action requests (car), 6. preventive action requests (par), or 7. special projects relevant to the employee. www.mycni.com.my www.oobey.com link #4: resource allocation a.k.a. budgeting and planning www.mycni.

13、com.my www.oobey.com summary: planning & budgeting long-term plans objectives strategies enablers resources also known as l.o.s.e.r. www.mycni.com.my www.oobey.com budgeting: some thoughts two major roles of budgeting: 1. provide real-life constraints to strategic planning 2. provide resources to re

14、alize strategic plans www.mycni.com.my www.oobey.com operational excellence customer intimacy product leadership organization, jobs, skills management systems information and systems culture, values, norms each discipline requires different priorities & resources www.mycni.com.my www.oobey.com opera

15、tional excellence central authority, low level of empowerment high skills at the core of the organization disciplined teamwork process, product- driven conformance, one size fits all mindset integrated, low cost transaction systems the system is the process command and control quality management org

16、anization, jobs, skills management systems information and systems culture, values, norms each discipline requires different priorities & resources www.mycni.com.my www.oobey.com organization, jobs, skills management systems information and systems culture, values, norms product leadership ad hoc, o

17、rganic and cellular high skills abound in loose-knit structures concept, future-driven experimentation and out of the box mindset person-to-person communications systems technologies enabling cooperation rewarding individuals innovative capacity risk and exposure management product life cycle profit

18、ability each discipline requires different priorities & resources www.mycni.com.my www.oobey.com organization, jobs, skills management systems information and systems culture, values, norms customer intimacy empowerment close to point of customer contact high skills in the field and front-line custo

19、mer-driven variation and have it your way mindset strong customer databases, linking internal and external information strong analytical tools customer equity measures like life time value satisfaction and share management focus on share of wallet each discipline requires different priorities & reso

20、urces www.mycni.com.my www.oobey.com managing gaps between actual and planned budgets 1. budgeting vs. priorities 2. basic budgeting policies 3. activity grid to determine budget priorities 4. budgeting for investments based on the bcg matrix principles www.mycni.com.my www.oobey.com budgeting vs. p

21、riorities priority = time + money www.mycni.com.my www.oobey.com business situation vs. organization focus upturnflatdownturn fight complacency sharpen edge keep momentum conquer change mgmt reduce fat continuity everyone happy innovation acquire profits build momentum sales cash flow talent mgmt in

22、novation/r&d early wins slow down hr costs top talent focus sales, sales, sales increase attrition www.mycni.com.my www.oobey.com basic budgeting policies flexibility to switch between line items reserve funds loans/external funding www.mycni.com.my www.oobey.com activity grid to determine budget pr

23、iorities increase () what are features/ activities/services to increase? create (+) what are features/ activities/services to introduce? reduce () what are features/ activities/services to reduce? eliminate (-) what are features/ activities/services to eliminate? www.mycni.com.my www.oobey.com e3 de

24、partment bsc financial perspective goals measurestargetscapexopex quality innovation on time delivery budgeting way back in 2004 thomas cup, indonesia www.mycni.com.my www.oobey.com now in 2007 cni beemax factory visit, china 1. top leaders 2. product development 3. media www.mycni.com.my www.oobey.

25、com link #5: performance management systems the ultimate link www.mycni.com.my www.oobey.com as an appraisee as an appraisor complaints about performance appraisals mgmt/hr www.mycni.com.my www.oobey.com as an appraisee complaints about performance appraisals bias different standards surprise subjec

26、tive no linkage* no differentiation secretive no follow up no control www.mycni.com.my www.oobey.com as an appraiser complaints about performance appraisals cannot remember tedious subjective right targets scoring competencies* defensive staff no $ to differentiate prejudices results or activities w

27、ww.mycni.com.my www.oobey.com complaints about performance appraisals flexible or control? mbo or character? best practice or fit culture? backward or forward? quarterly results or long-term? no $ to differentiate* perfect system, bad performance recency and halo effects untrained appraisers mgmt/hr

28、 www.mycni.com.my www.oobey.com complaints about performance appraisals - summary 1. process problem 2. form problem 3. people problem www.mycni.com.my www.oobey.com what is performance appraisal used for? reward? discipline? development? motivation? promotion? monitor? www.mycni.com.my www.oobey.co

29、m performance management performance appraisal performance development performance measurement common terms and definitions www.mycni.com.my www.oobey.com what is the objective? what is the ultimate objective of a performance management system? performance achievement, management controllable, impro

30、vement system predictable outcome, autorun summary? a predictable process to improve controllable achievements www.mycni.com.my www.oobey.com what is the objective? succession planning (business continuity) talent management differentiation performance management system budgeting + planning kpis bsc

31、 business model www.mycni.com.my www.oobey.com 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 b

32、ehavior-based knowledge/skill based results-based trait-based which system should we use? managing performance = managing expectations whats your expectation? activity based www.mycni.com.my www.oobey.com dangers of best practice and benchmarking “abraham walds work on aircraft survivability”, m. ma

33、ngel and f.j. samaniego where would you focus reinforcement? www.mycni.com.my www.oobey.com dangers of best practice and benchmarking www.mycni.com.my www.oobey.com company performance high low best practice theories low high zero perfor mance trend line “selection bias and the perils of benchmarkin

34、g”, jerker denrell, harvard business review 2005 dangers of best practice and benchmarking www.mycni.com.my www.oobey.com company performance high low best practice theories low high zero perfor mance trend line “selection bias and the perils of benchmarking”, jerker denrell, harvard business review

35、 2005 dangers of best practice and benchmarking selection bias: 1. success traits = failure traits 2. successful cases + failure cases 3. worst effects in old industries 4. overvalue best practice theories 5. current accomplishments unfairly magnified by past achievements 6. reverse causal www.mycni

36、.com.my www.oobey.com dangers of best practice and benchmarking also known as beware of consultants: 1. selection bias 2. big vs. small company 3. selective success stories 4. correlation vs. causal 5. survey problems 6. practical vs. glamour-to-have 7. leaders who benchmark www.mycni.com.my www.oob

37、ey.com mbo standards aexcellent bgood caverage dpoor euseless www.mycni.com.my www.oobey.com mbo standards aexcellent bgood caveragegood dpoor euseless www.mycni.com.my www.oobey.com mbo standards aexcellentexcellent bgoodvery good caveragegood dpoornot good euselesscommit suicide www.mycni.com.my w

38、ww.oobey.com mbo standards aexcellent consistently achieved 4 for 3 quarters bvery good higher than planned results cgood achieved planned results dnot good did not fully meet planned results ecommit suicide unacceptable performance www.mycni.com.my www.oobey.com competency target setting 1. initiat

39、ive 2. teamwork 3. problem solving 4. leadership 5. integrity whats the problem here? www.mycni.com.my www.oobey.com competency standards 3meets behavioral standards consistently. is a good role model for others. 2meets behavioral standards some of the time. needs improvement. 1does not meet behavio

40、ral standards. require counseling or disciplinary actions. www.mycni.com.my www.oobey.com the planning & budgeting process stagesoutputmonth 1. pre-planning analysis & brainstorming current yr budget & revision next yr options and budgets required july - sep 2. high-level group strategy and targets

41、high-level strategy of group corp plan. circulation of main budget simulation to all departments sep 3. functional strategy and budgets bsc & budget preparation by hods to hodivs sep - oct 4. formal results planning bsc & budget to ceos, followed by bod revised and finalized plans and budgets oct-nov 5. communication and cascading presentation of group budget and planning summary & distribution communication of highlights to the field and staff nov-jan