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PerformanceManagementAGuidetoConsultingJune2000DiscussionObjectivesProvideanoverviewofcurrentthinkingandtrendsDiscusswhatPMconsultingisallaboutReview“whatworksandwhatdoesn’t”ShareBestPracticesresearchReviewsomeofthebasicplanningandprojectstepsGroupDiscussionAnswerthefollowingquestions:1.Whatisperformancemanagement?Whydocompanieshavethisprocess?2.Whydoesn’titworksowell?Whatmakesitsodifficult?PerformanceManagementTranslatesbusinessvisionandstrategyinanactionablewaybycascadinggoalsthroughouttheorganizationMeasuresbothwhatisdoneand
howitisdoneAlignsDepartmentgoalswithstrategicbusinessobjectivesAlignsindividualswiththebroaderorganizational/teamcontextEnsurestheclosest“l(fā)ineofsight”possibleSource:WatsonWyattBestPracticesinPerformanceManagementPerformanceConsulting1.TotalOrganizationCascadingandAlignmentStakeholderMetrics2.EmployeeReviewProcessEngagementandAccountabilityGrowthandAchievementsTwodimensions:PerformanceConsultingTotalOrganizationPerformanceCascadingandAlignmentStakeholderMetricsTheKeyQuestionsofBusinessPlanningWhydoesthecompanyexist?Whereisitgoing?Size SalesMarkets LocationsProducts CompetitiveChallengesSBULinkagesHowwillitgetdone?ValuesandOperatingPrinciples TechnologyResourcesWhatmustthecompanybeverygoodatdoing?Howwillprogressandsuccessbemeasured?ExpectationsofStakeholdersCompanyPerformanceMissionVisionofFutureStrategicOrganizationalGoalsCoreOrganizationalCapabilitiesBalancedScorecardBusinessPlansareDevelopedbytheBusinessUnitsResourceRequirementsIndustryLatinAmericaAsia(Europe)ObjectivesofthebusinessunitObjectivesoftheregionBottom-up-approach:Derivationofsegmentandcorporatestrategicplansandoperatingobjectivesfrombusinessunitgoals.Top-down-approach:DerivationofobjectivesfromcorporatestrategyObjectivesofdepartmentsandindividualsStrategyoftheCorporationObjectivesofthecorporation
PeopleFacilities
TechnologyEquipmentandMachinery Componentsofa
BalancedScorecard
(withsamplemetrics)FINANCIALRESULTSCUSTOMERSATISFACTION
BUSINESSPROCESSES
LEARNING&GROWTH
AFYPROI/ROASurplusGrowthNewsales:newcustomersAdditionalpolicies:currentcustomersMarketshareCollectingpremiumsCalculatingsellingprice:newproductNewlicensing(Region&Corporate)EstablishingtheBusinessCasefornewventures,newlocationsProductDevelopment:#innovations
CompetencygrowthAdditionalcountriesCorecapabilitiesgrowthCascadingStrategic&OperatingPlanGoalsCORPORATEORGANIZATIONMETRICSFinanceFinanceCustomerCustomerBusinessProcessBusinessProcessLearning&GrowthLearning&GrowthBUSINESSUNITTEAMS/INDIVIDUALSDEPARTMENTBalancedScorecardscanprovideorganizationalignmentandaccountability5to7GOALS“SMART”parametersDirectlyalignedTypicalProjectTimeline&Milestones**8weekselapsedtimefromplanningsession2DaysClarifyCompanyStrategyanddeterminegoalsImplementation
TrainingandRolloutbeginsImplementationPlanningWorkshopFormalAdvisoryGroupReview
Session
&Follow-up1wk2wks1wk1wk1wk1wk1wkProjectPlanning,
OrientationandKick-off1Day1DayInterviewFindingsDevelopMeasureRecommendations1DayWorkshoponTargetsFinalizeTargetRecommendationsImplementationPlanReviewReviewPlanforImplementationReviewTransitionStrategy2DaysFormalAdvisoryTeamReview1Day1Day1wk1DayExecutivePlanningSession(s)PerformanceConsultingTotalOrganizationPerformanceClients:CEO,COO,sometimestheVPHRFees:typicalprojectis$180-250KTimeframe:+/-4monthsPerformanceConsultingEmployeeReviewProcessEngagementandAccountabilityClearPerformanceExpectationsGrowthandAchievementsPerformanceManagementIs......theongoingprocessofsettingperformanceexpectations,providingfeedbackandcoachingtoreachthoseexpectations,andreviewingandrecognizingperformanceresults.TiePMtotheBusinessCycleReviewandPlanningPlanningFeedback&CoachingFeedback&CoachingMid-YearReviewNewYearPlanningYear-EndReviewBadtiming...“Idon’twanttoruinyourdayHerman,buttomorrowmorningyou’rescheduledtobeinmyofficeforyourannualperformancereview...””RememberTheKeyQuestions?Whydoesthecompanyexist?Whereisitgoing?SizeSalesMarketsLocationsProductsCompetitiveChallengesSBULinkagesHowwillitgetdone?ValuesandOperatingPrinciplesTechnologyResourcesWhatmustthecompanybeverygoodatdoing?Howwillprogressandsuccessbemeasured?ExpectationsofStakeholdersCompanyPerformanceMissionVisionofFutureStrategicOrganizationalGoalsCoreOrganizationalCapabilitiesBalancedScorecardOrganizationAlignmentleadstoEmployeeEngagementCOMPANYMISSIONVISIONStrategicObjectivesCoreCapabilitiesCompetenciesLeadershipFunctionalDepartmentScorecardSuccessProfilesEmployeePerformanceProcessIndividualGoalsEmployeeDevelopmentPlansBusinessUnitScorecardCascading:CriticalMetricsandCompetenciesChangerequiresabalancedValueExchangeEmployeeGivesEmployerGivesEnergyEffortCommitmentValueAddLearningTimeOpportunityCareerBenefitsCompensationJobThePerformanceProcesscanprovidethekeystodevelopmentBasePayPromotionTrainingCareerdevelopmentSuccessionplanning89%77%56%51%32%Reductioninforce26%Variablepay34%CurrentUseofPerformanceManagementDataSource:WatsonWyattBestPracticesinPerformanceManagementPerformanceManagementEvolutionTraditionalRecentEmergingMeasuresTraits/OutcomesBehaviors/OutcomesTime/Quality/ValueEvaluatorBossSelf/PeersCustomersOutcomesMeritPayDevelopmentOrganizationSuccessImplementationDistributeFormsTrainandCommunicateOngoingEducationandinvolvementOwnershipHRDManagementEmployeesComplianceVoluntaryMandatoryMotivationFactorsThatInfluenceProcesseffectivenessOrganizationSupervisorPMCultureSkillsProcessTheOrganizationValuesthatSupportPMTheCapabilitytoMeasureandDiscussPerformanceTheInteractionBetweentheEmployeeandtheSupervisorPeopleFactorsTechnicalFactorsPerformanceMeasuresRewardsDeliveryPMFormsMeasuresthatSupporttheOrganizationsGoalsandValuesandarePossibletoAccuratelyMeasureHowandWhyPayisLinkedtoPerformanceHowtheDesignoftheFormSupportstheProcessPerformanceManagementEffectivenessFeedbackfrommultiplesourcesCoachingandfeedbackareintegralDe-emphasisonaratingDecentralizedcontrolGreaterlinkagebetweenpayandperformanceEffectivemeasures
-Competencies
-Businessstrategies“Champions”—sponsorshipEmployeeparticipationEmployeeinvolvementinsystemdesignCommunication&trainingAlignmentwithbusinessobjectives,strategy,customerneedsOngoingmonitoringofeffectivenessofprogramBestPracticesElementsofSuccessfulProgramsHighImpactPerformanceManagementKeyelementsfoundinall““bestpractices”EmphasisonlookingforwardPlanninganddevelopmentJointprocesswithemployeeownershipCooperativegoalsettingFeedback(continuous,multiplesources)DevelopmentalfocusPayandperformancelinkageSource:WatsonWyattBestPracticesinPerformanceManagementUseofKeyElementsDevelopmentPlanningMulti-sourceratings14%65%81%84%94%97%GoalSettingTeamstandardsNoratingsCompetencies/behaviorsSource:WatsonWyattBestPracticesinPerformanceManagementEvolutionofPerformanceFeedbackTopDownSelf-AppraisalPeerReviewsUpwardFeedbackInternalCustomersExternalCustomers3600ReviewDoesitmakeadifference?Employeesareeligibleforstockplanprograms1.8%Companyterminatesemployeeswhoperformunacceptably1.8%Companydoesagoodjobofhelpingpoorperformersimprove1.5%Topperformersgetsignificantlymorepaythanaverageperformers0.8%Companypositionspayabovemarket0.4%Employeeperformanceappraisalsusedtosetpay0.4%Employeesparticipateinprofit-sharingplanbasedonfirm’soverallsuccess0.6%Payislinkedtocompany’’sbusinessstrategyThePerformanceMatrixOResults“what”Behaviors“how””Std=100%ofexpectedStd=100%alignmentNIHNIWFMEEKey:O=OutstandingEE=ExceedsExpectationsM=MeetsExpectations(80-90%ofpopulation)NIH=NeedsImprovementon“HOW””NIW=NeedsImprovementon“WHAT”F=FailingProjectStepsProjectPlanning,EducationandAssessment:ClientFirst,scopeandtimetable,designteameducation,PMdesignmatrix,documentreview,interviewsDesign:Straw-mandesigns,implementationplanningandscheduleTestingandApproval:Presentation,seniormanagementassessment,sign-off,editImplement:Communicationrollout,modulartrainingrollout,useReview/Revise:Gatherfeedback,testandrevise12345PerformanceConsultingEmployeeReviewProcessClients:VPHR,Dir.Compand/orODFees:typicalprojectis$85-130KTimeframe:+/-3months(excludesimplementation)Think…“Implementation”Asuccessfulprocessis25%designand75%implementation!“It’snevertoearlytothinkaboutimplementation...”P(pán)eterDruckerBestPracticesinImplementationDetailedcommunicationsandtrainingstrategyPro-activeproblemidentificationBroadbuy-inSeniormanagementinvolvementMeasurementofsystemeffectivenessSource:WatsonWyattBestPracticesinPerformanceManagementUtilizeBestPracticesinChangeManagementVisibleseniormanagementsupportOngoingcommunicationBestpracticesandstakeholderresearchHighinvolvementandbroadbuy-inCarefulplanning,rapidprocessComprehensiveapproachtoimplementationandmonitoringTraininginintactworkteamsSource:WatsonWyattHR21StudyUnderstanding
Realizehow“mywork”isdifferentbecauseofthechangeCommitment
Believeinthesystemandprocessforchange...insharedaccountabilityformakingitsuccessfulAcceptanceAgreetovalueormeritofchange.Recognizeadvantageof“futurestate”Action
Adoptnewbehaviors=becomeengagedinthechangeprocess.ChampionchangesinternallyBehaviorChangeModelEFFORTAwarenessAQuickSummaryPerformancemanagementcontinuestoevolveNOoneperfectsolutionnotmuchmagicImpact:greatifdonerightBestpracticesforideasThinkimplementationearlyandoftenUpdateandkeepfreshOngoingTrackingTimelyCommunication
&SkillsTrainingConnectionbetween
Rewards&PerformanceDirectLinkto
InstitutionMissionSeniorLeadership
InvolvementEmployee“Ownership”O(jiān)bjectiveFeedback
&ReviewCriticalSuccessFactorsforaneffectivePerformanceManagementprocessKeyHumanResourceLinkagesBasePayTrainingSuccessionPlanning/PromotionsCareerPlanningIncentivePay100%97%95%85%80%Source:WatsonWyattBestPracticesinPerformanceManagementHRStrategySuccession
PlanningRewardsWorkDesignSelection
&StaffingPerformanceManagementTraining&DevelopmentIntegratePMwithHRStrategyPerformanceManagementTeamMethodologyandToolsBrianBrown(Cleveland)BradCarter(SanFrancisco)CassandraFrangos(Boston)**DavidGore(Toronto)JimStewart(Boston)**toKaplanandNorton’’sBalancedScorecardCollaborativePerformanceManagementAWatsonWyattGuidetoConsultingJune20009、靜夜夜四無(wú)無(wú)鄰,,荒居居舊業(yè)業(yè)貧。。。12月月-2212月月-22Saturday,December17,202210、雨中中黃葉葉樹(shù),,燈下下白頭頭人。。。13:25:4213:25:4213:2512/17/20221:25:42PM11、以我我獨(dú)沈沈久,,愧君君相見(jiàn)見(jiàn)頻。。。12月月-2213:25:4213:25Dec-2217-Dec-2212、故人人江海海別,,幾度度隔山山川。。。13:25:4213:25:4213:25Saturday,December17,202213、乍見(jiàn)翻疑疑夢(mèng),相悲悲各問(wèn)年。。。12月-2212月-2213:25:4213:25:42December17,202214、他鄉(xiāng)生白白發(fā),舊國(guó)國(guó)見(jiàn)青山。。。17十二二月20221:25:42下下午13:25:4212月-2215、比不了得就就不比,得不不到的就不要要。。。十二月221:25下下午12月-2213:25December17,202216、行動(dòng)出成果果,工作出財(cái)財(cái)富。。2022/12/1713:25:4213:25:4217December202217、做前,能夠夠環(huán)視四周;;做時(shí),你只只能或者最好好沿著以腳為為起點(diǎn)的射線(xiàn)線(xiàn)向前。。1:25:42下午1:25下下午13:25:4212月-229、沒(méi)沒(méi)有有失失敗敗,,只只有有暫暫時(shí)時(shí)停停止止成成功功??!。。12月月-2212月月-22Saturday,December17,202210、很很多多事事情情努努力力了了未未必必有有結(jié)結(jié)果果,,但但是是不不努努力力卻卻什什么么改改變變也也沒(méi)沒(méi)有有。。。。13:25:4213:25:4213:2512/17/20221:25:42PM11、成功就就是日復(fù)復(fù)一日那那一點(diǎn)點(diǎn)點(diǎn)小小努努力的積積累。。。12月-2213:25:4213:25Dec-2217-Dec-2212、世間成成事,不不求其絕絕對(duì)圓滿(mǎn)滿(mǎn),留一一份不足足,可得得無(wú)限完完美。。。13:25:4213:25:4213:25Saturday,December17,202213、不知香香積寺,,數(shù)里入入云峰。。。12月-2212月-2213:
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