ECU Forward Networking Confrenece
SIngapore, October 2011
The importance of knowing your organizations Business Model (Profit and Non-
Profit) in order to achieve optimal alignment
l Aligning the entire organization: Structure, Leadership, People, Processes and
Culture
l Aligning core processes to achieve organization goals: Strategic Planning,
Budgeting and Performance Management
l Transforming Performance Management from a bureaucratic requirement to a tool
for managing and improving business performance
Aligning the entire Organization to achieve Business and Organizational Goals
1. ALIGNING THE ENTIRE ORGANIZATION TO ACHIEVE BUSINESS AND ORGANIZATION GOALS Case Study, Concepts and Debatable Ideas Kenny Ong Takaful Ikhlas Sdn Bhd
12. What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning BSC and KPIs Strategy Business Model Business Strategy People Management
20. What is the Business Model? USP Market Discipline Profit Model
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22. 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) Eg. Google Tata Nano
23. 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)
24. 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)
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26. 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)
27. 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
62. What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? No wonder our employees are confused!
63. What is Performance Measurement used for? Reward? Discipline? Development? Motivation? Promotion? Monitor?
64. Which system should we use? Behavior-based Knowledge/Skill based Results-based Trait-based Managing Performance = Managing Expectations What’s YOUR expectation? Activity based
66. MBO Standards A Excellent B Good C Average Good D Poor E Useless
67. MBO Standards A Excellent Excellent B Good Very Good C Average Good D Poor Not Good E Useless Commit Suicide
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71. 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.
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76. Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff
87. OUR CLIENTS MARITIME INSTITUTE OF MALAYSIA (MIMA) CITRA ALTI SDN.BHD GOLDEN STAR LOGISTIC SDN BHD RJH CONSULTANTS & SERVICES SDN.BHD TGS MARITIME TECHNOLOGY SDN.BHD SOFT TRIANGLE SERVICES SDN.BHD BROADTEC TV R & D CENTER SDN.BHD BAKTI INSANI SDN.BHD KOPERASI PEKEBUN KECIL DAERAH MUAR BHD PERLADANGAN PESERTA KUNDANG SDN.BHD MOF MANAGEMENT SDN.BHD AXXICO SDN.BHD AMALGAMATED METAL BUILDERS (M) SDN.BHD YAYASAN PUSAT HEMODIALISIS PERAK E - ORGANIZATION MAAHAD TAHFIZ NEGERI PAHANG FICRA NOVA SDN.BHD ESQ LEADERSHIP CENTER WELLNESS LIFESTYLES SDN.BHD WIRA KERJAYA SDN.BHD SURIA MEDIK SDN.BHD VR MARKETING (M) SDN.BHD DUALRANK (M) SDN BHD JENG YUAN RECLAIMED RUBBER SDN.BHD AEROTREE DEFENCE & SERVICES KHALID ALUMINIUM SDN.BHD MLC SHIPBUILDING SDN.BHD MILLELIA AQUA GHANI & CO AEREX SDN.BHD SCIENSIM SDN.BHD FRONTLINE SUPPORT SDN.BHD ANJUNG PERKASA SDN.BHD BESPOKE TECHNOLOGY SDN.BHD BIMB FOREIGN CURRENCY CLEARING AGENCY SDN.BHD GAFIS (M) SDN.BHD MEDIABIZ CREATIVE SDN.BHD KOPERASI UITM BERHAD ABENA CONSULTANTS AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD WISE INNOVATIONS SDN BHD FADZILL CONSTRUCTION SDN BHD S . N . AKMIDA HOLDINGS SDN BHD YAYASAN PELAJARAN JOHOR PELADANG HEITECH SDN BHD TELEVENTURE SDN BHD PERBADANAN ISLAM JOHOR BRIGHTMARK SDN BHD KEMASIK HOLDING SDN BHD UNIKL MEDICAL SERVICES SDN BHD AL-MADINAH INTERNATIONAL UNIVERSITY FOREST PLANTATION DEVELOPMENT SDN. BHD. FOX COMMUNICATIONS SDN. BHD. YAYASAN ISLAM NEGERI KEDAH SYARIKAT PERUMAHAN NEGARA BERHAD. SERI TEMIN DEVELOPMENT CORPORATION (M) SDN. BHD. CENTRAL SPECTRUM (M) SDN BHD MAJUIKAN SDN BHD MAJLIS BANDARAYA PETALING JAYA ADMINISTRATOR RUMAH AWANG ALAK BETATAR & DAMAI RESIDENCE
88. OUR CLIENTS MALAYSIAN NPK FERTILIZER SDN BHD FOXBORO (MALAYSIA) SDN BHD CEMENT INDUSTRIES (SABAH) SDN BHD STEEL INDUSTRIES (SABAH) SDN. BHD. INTERNATIONAL CENTRE FOR EDUCATION IN ISLAMIC FINANCE. STRATEGI TEGAS SDN. BHD KUMPULAN DARUL EHSAN BERHAD PRO ASSET MANAGEMENT SDN BHD INTERNATIONAL CENTRE FOR EDUCATION IN ISLAMIC FINANCE. MAJLIS PERBANDARAN SEPANG PELABUHAN TANJUNG PELEPAS SDN. BHD SENAI AIRPORT TERMINAL SERVICES SDN BHD PELEPAS BRIGANTINE CONTAINER SDN BHD PERMODALAN NASIONAL BERHAD. ISKANDAR REGION DEVELOPMENT AUTHORITY. SETIAUSAHA KERAJAAN NEGERI KED SCOMI GROUP BHD ASIAN FINANCE BANK BERHAD. KOPERASI ANGKATAN TENTERA BERHAD TISISIT CORPORATION (M) SDN BHD INSTITUT BANK BANK MALAYSIA OMNI OIL (ASIA) SDN BHD PERUNDING UNIKON SDN BHD MALAYSIA CONVENTION AND EXHIBITION BUREAU XAIR COMMUNICATION SDN BHD SYARIKAT BEKALAN AIR SELANGOR HLA ASSOCIATES SDN. BHD. CORPORATE LINE (M) SDN. BHD. PUNCAK NIAGA (M) SDN. BHD. WWE HOLDINGS BHD SUASA EFEKTIF (M) SDN. BHD. SYARIKAT BEKALAN AIR SELANGOR PLC INTERNATIONAL SYOR BERNAS S.B AFRIZAN TARMILI KHAIRUL AZHAR KOPERASI KAKITANGAN BANK RAKYAT BERHAD. MALAYSIAN REINSURANCE BERHAD LEMBAGA ZAKAT SELANGOR. (MAIS). UDA ANCASA SDN. BHD. RHB ISLAMIC BANK. TAKAFUL IKHLAS SDN. BHD. KUWAIT FINANCE HOUSE. RHB ISLAMIC BANK. MALAYSIAN REINSURANCE BERHAD. FELDA IFFCO SDN BHD BIMB INVESTMENT MANAGEMENT BERAD IBFIM
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93. Passport to the Preferred Care Program Member ID Card Back Front
94. CONTACT US ….. Takaful Ikhlas Sdn. Bhd. (593075 U) IKHLAS Point, Menara 11A, Avenue 5, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur TEL : 03- 2723 9999 FAX : 03- 2723 9998 EMAIL : [email_address] WEBSITE : www.takaful-ikhlas.com.my
Hinweis der Redaktion
Most organizations in Asia underestimate the PMS most use it to reward/punish their staff (to terminate) informal PMS (angpow) biasness and favoritisms family-owned business (who dare evaluate relatives?)
Performance Management System is first and foremost a ‘SYSTEM’ – meaning we have Input, Process and a predictable Output Firstly. Performance means ‘Results’. Business Performance = Business Results. If your PM System is merely to reward/punish employees, you are missing the point If your PM System does no provide a predictable Output (i.e. Results), it is not a system Secondly, everything within the system must be Controllable – no excuse if performance does not happen. This means that Cause-and-Effect principles must be built into the PM System
PMS does not equate to Performance Evaluation process entire eco-system to ensure performance PMS = Business Plan Implementation system The PM System is the only process in any organization to execute the Business Strategy. There are no other process or system that can do that. Treat it with care Why? PM System is the only thing that can link Business Strategy with the People executing it Secondly… without a strong PMS, we cannot Differentiate employees properly. If we cannot Differentiate, we cannot define and manage Talent. Link between PMS/TM/Succession Planning? Business Continuity = perpetual business performance (in Asia = Legacy) Can only be done if the right Talents are in place (bench strength) Making sure the right Talents are spotted = PMS
Many people go around setting up PMS without clear understanding of Business Directions… (sometimes its hidden from lower management & consultants)… End up HR and Finance getting beat up by Management by now implementing PMS ‘properly’ Sometimes the Business itself is unclear, in this case, do not ‘re-structure’ the PMS – it will worsen the situation. End up, most Asian SMEs do D.I.Y PMS: Cut-and-paste Off-the-shelf
Example of successful customer loyalty strategy focusing on Operational Excellence and Product Leadership while maintaining market standard on Customer Service without indulging in it
Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience.
To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
OPTION 1
To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
Refer to Handout 1: Value Disciplines
OPTION 1
OPTION 2 But…. I cannot tell you which path CNI has taken!
Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here. Resources must follow the Business Model: USP, Profit Model, Market Discipline
CNI:
Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here.
Why Constraints? Over aggressive unrealistic planning, usually by Marketing/Sales need to be grounded to real life Enables creative entrepreneurial thinking when resources are limited Enforce the need for Accountability i.e. ‘Return on Investment’ thinking for all Managers
Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here.
This grid and discipline will also help in: managing conflicts on where limited resources should go Solve the problem of ever compounding activities and resources
Common issues with how an organization’s PMS (or the lack of one) actually de-motivate Talents list is gathered from my consulting experience with organizations in Asia (especially SEA)
System problems mean that if we correct the PMS, the issues should not happen. Within the control of HR and other policy makers The rest are people problems i.e. usually with the Superior. These issues are softer and much harder to resolve.
Exercise: What is Performance Appraisal GENERALLY used for? What does your company use it for?
Refer to Handout and Exercise : 1. Which Performance Management System should we use.doc Managing expectations = e.g. from Finance Department and Credit Control
Example: What do you mean by Good? A, B, or C? Achieve 5 tasks, what is your rating? You mean if I achieve all, I only get AVERAGE? You must be crazy
This looks better for the ‘achieved all’ category But… the ratings still look ambiguous, right?
This looks better for the ‘achieved all’ category But… the ratings still look ambiguous, right?
This slide explains how you can REDUCE your organization’s KPIs by focusing on what matters most
Example: Define ‘Initiative’ How do rate Initiative on a 10-pt scale?
Example: Define ‘Initiative’ How do rate Initiative on a 10-pt scale? Exercise: Determine 1 core Competency/Values you want to evaluate Create a list of 5 ‘observable’ behaviors of that competency
Performance The ability of a person to meet current expectations Key Words: Results, Targets, KPIs, Achievement, Expectations, Training, Job Concentrates on the Past i.e. what the person has done Potential The capacity of a person to meet future expectations Key Words: Competencies, Learning, Fit, Adversity, Failure rate, Development, Career Concentrates of the Future
Group 1: High Potential, High Performance (Talent) Staff this category will automatically be placed in the company’s Succession Plans. Be the first priority to be considered for any promotions or upgrading exercises. Career Acceleration + Specialist Career Paths. Group 2: Average Potential, High Performance (Leadership Issues) Leadership, motivational and cultural development would be given to these staff while they perform in their current positions. Group 3: High Potential, Average Performance (Potential) Should not be given career advancement unless performance improves. Good targets for transfers or job rotations to departments that require urgent manpower. Group 4: Average Potential, Low Performance (Issues) Staff in this group should be monitored closely by HR. They should be eventually moved out of their current work function, department or even the company entirely.
B. Adopting creative approaches and models to attract and identify right talents There are many definitions of Talent. Don’t listen blindly to Consultants nor simply trust books nor MNC practices.