performance planning presentation

Performance Planning

Overview Definition and Purposes of Strategic Planning

Linking Performance Management to the Strategic Plan

• Strategic Planning • Developing Strategic Plans at the Unit Level• Job Descriptions• Individual and Team Performance

Performance Planning : Definition

• Process of communication between employer and employee intended to create agreement about what the employee is to do, how well he or she needs to do it , and why, when and how success is to be determined (Bacal, 2004).

Strategic Planning: Definition Process that involves describing the organization’s destination,

assessing the barriers that stand in the way of that

destination and selecting approaches for moving forward

(Aguinis, 2014).

Anticipating what will likely happen in the future and

developing strategic plans to take advantage of

opportunities that would help achieve success and avoid problems (Osgood, 1980)

Structured scheme for effectively achieving a specific goal or

objective that addresses the long-term direction of the organization as a whole and identifying the best

approach for accomplishing the goals ( Johnson, 1992; Kumpf,

2004).

Process of decision making that identifies basic values and needs

to be addressed by the firm, establishes the patterns of goals

and objectives to be achieved, and sets important guidelines and

procedures for achieving them. (Moyer, 1982)

Process that transitions organizations from

their present state to a future direction

(Keller,1990)

Strategic Planning: Goal

• Allocate resources to provide organization with competitive advantage

• Consider as the blueprint

Strategic Planning: Purposes

Helps to define the organization’s identity

• Provide clearer sense of who they are and what their purposes are

Helps organizations prepare the future

• Clarify the desired destination.

Strategic Planning: Purposes

Analyze the environment

• Enhances the ability to adapt and anticipate in any future environmental changes.

Provide focus and allows better allocation of resources

• Well allocation of resources will stimulate growth and improve profitability.

Strategic Planning: Purposes

Produces an organizational culture of cooperation

• Once common set of goals is created, culture of cooperation can be develop.

Allows for the consideration of new options and opportunities

• Be a good corporate eye-opener.

Strategic Planning: Purposes

Guidance to the employees

• Provides information to direct daily activities.

Link to Performance Management

Example of Performance Management Allignment With Strategic Plan (Key Bank,Utah)

Succesful Strategic Plan : Steps

Conduct environmental

analysis•Identified the internal and external parameters of the environment in which our organization operates.

Creation of organizational

mission

•What the organization is all about

Creation of organizational

vision•Show direction where organization intends to be in the long term or in the future.

Succesful Strategic Plan : Steps

Setting goals

•show what organization intends to do in the short term.

Creation of strategies

•Descriptions of game plans or what are the steps or procedures taken to reach the stated objectives.

Strategic Planning : Overview

1. Environmental Analysis

2. Mission

3. Vision

4. Goals

5. Strategies

Environmental Analysis

Identifies external and internal trends• To understand broad industry issues

• To make decisions using “big picture” context

External trends• Opportunities:

• environmental characteristics that can help the organization succeed

• Threats: • environmental characteristics that can prevent the organization from being successful

External trends – Factors to Consider

• Economic - Economic recession.

• Political/Legal - Political changes.

• Social - Aging workforce

• Technological - Introduction of

new technology

• Competitors - Competitors new products and strategies.

• Customers - Changes in want and trends.

• Suppliers - Relationship with suppliers.

Internal trends

• Strengths:

• internal characteristics that the organization can use for its advantage

• Weaknesses:

• internal characteristics that can hinder the success of the organization

Internal trends – Factors to Consider

• Organizational structure - Current structure ensure

effective communication

• Organizational culture - Norms & values portray by organization members

encourage / hinder innovation

• Politics - Various units competing for resources or willing to collaborate

• Processes - Supply chain working properly• Size - Organization size / capacity

Gap Analysis

Analyzes:External environment

(opportunities and threats)

Internal environment(strengths and weaknesses)

Gap analysis determines:Opportunity + Strength = Leverage (Advantage)

Opportunity + Weakness = Constraint

Threat + Strength = Vulnerability

Threat + Weakness = Problem

Strategic Planning for the Organization

Environmental and Gap Analyses provide information for organizations to decide:Who they areWhat they do

Mission

A good mission statement answers:

Why does the organization exist?

What is the scope of the organization’s activities?

Who are the customers served?

What are the products or services offered?

Thorough Mission Statement contains:

Information on organization’s

Basic product/service to be offered

Primary market/customer groups

Unique benefits and advantages of product/services

Technology to be used

Concern for survival through growth and profitability

Vision

• Statement of future aspirations that describe what the organization would like to become in the future

A Good Vision Statement: 8 Characteristics

1. Brief - Employees can easily remember

2. Verifiable - Able to stand the reality test.

3. Bound by a Timeline - Specifies timeline

4. Current - Should be updated on an ongoing basis

A Good Vision Statement: 8 Characteristics (continued)

• Focused - narrow down the important aspects

that contribute to organization

future success

5. Understandable - Written in clear and

straightforward manner

6. Inspiring - Motivate and make employees feel good.

7. A stretch

Goals : Definition

• Outcome statements that define what an organization is trying to accomplish.

Purposes for Setting Goals

• Formalize expected achievements

• Provide motivation

• Provide tangible targets

• Provide basis for good decisions

• Provide basis for performance measurement

Strategies

• Create strategies or Game Plans or procedures to address issues of:• Growth

• Survival

• Turnaround

• Stability

• Innovation

• Leadership

How the HR Function contributes:

• Communicate knowledge of strategic plan

• Provide knowledge of KSAs needed for strategy implementation

• Propose reward systems

Strategic Plans at the Unit Level

• Organization Mission statement, Vision statement, Goals, and Strategies

Must clearly align withAnd be congruent with

• Every Unit Mission statement, Vision statement, Goals, and Strategies

Job Descriptions

• Tasks and KSAs are congruent with Organization and Unit strategic plans

• Activities described support mission and vision of Organization and Unit

Individual and Team Performance

Organization and Unit mission, vision, goals lead to

Performance management system, which Motivates employees Aligns development plans with organization priorities

Building Support• All participants in the system need to understand their role play and

understand where the organization stands and where it needs to go.

• High degree of participation and feedback was a critical factor in the success of the performance management system.

BALANCE SCORECARD

• Developed in the early 1990s by two guys at the Harvard Business School: Robert Kaplan and David Norton

• BSC is a management system — not a measurement system

• The BSC approach measures performance from four different perspectives that together encourage managers to look beyond traditional financial measures. The four perspectives of performance are:

• (1) learning and growth (concerned with actions to improve and create value);

• (2) internal processes (concerned with what the firm must excel at);

• (3) customer (considers how the firm looks to customers); and

• (4) financial (considers how the firm looks to shareholders).

Robert & Kaplan BSC Model 1992

Key Performance Indicator• Part of Balanced Scorecard.

• Measure how well the organisation performs against predefined goals and targets.

• Leading indicators -measure activities that have a significant effect on future performance

• Lagging indicators - such as most financial metrics, measure the output of past activity

KPI-Example 1

Example 2

Department of Transport

Policy domain Road safety

Objective To minimise fatalities in traffic incidents

Indicator Number of fatalities

Target 2008: 0 2009: 0 2010: 0

Example 3

Dept of Art, Sport & Tourism

Policy domain Sport

Objective To promote the national sporting culture

Indicator The number of medals won in Olympic, World & European Championships

Target 2008: 3 2009: 6 2010: 12

ConclusionThe employee should :

• Know the most important job responsibilities that he or she needs to complete.

• Know when he or she must complete the job task.

• Know how those job responsibilities relate to the goals of the work unit and the company.

• Know how well or to what level he or she need to perform the job activities.

• Know the criteria that will be used to review performance during and at the end of the review period.

• Have the sense that the manager is more interested in creating success than in finding fault later.

• Feel that the manager is willing to help employee.

• Have a sense that he or she and the manager are on the same wavelength and share similar goals and concerns.

ConclusionEmployer/ Manager should :-

• Better understand the employee’s day to day job responsibilities.

• Have a clear idea of how carrying out those responsibilities contributes to

to the work unit.

• Have dealt with how he or she can help the employee succeed and be committed by any actions required to help the employee.

• Have some documentation of the performance planning process and decisions made

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