IN TOUGH TIMES

BEATING THE COMPETITION THROUGH A

HIGH PERFORMING CULTURE

M. Mudassar AqilM. Mudassar AqilJuly 22, 2009July 22, 2009

Culture is the soul of an organization

Values

Mindsets

Behaviors

91% of 1,200 senior executives globally 91% of 1,200 senior executives globally rated rated

Culture as important as strategy for Culture as important as strategy for businessbusiness

success.success.

Bain & Co. Survey of Management Tools & Trends, 2007Bain & Co. Survey of Management Tools & Trends, 2007

““The fact is, culture eats strategy for The fact is, culture eats strategy for lunch.”lunch.”

Richard Clark, CEO, MerckRichard Clark, CEO, Merck

68%Leaders who believe their culture is a source of competitive advantage

65%Believe they need to change it

81%Believe that an organization that lacks a high performance culture is doomed to mediocrity

10%But fewer than 10% succeed in building one!

Source: Building a winning culture; Bain & Co. Survey, 2007

Creating a high performing culture

i.i. Set expectationsSet expectations

ii.ii. Align the teamAlign the team

iv. Communicate and celebrateiv. Communicate and celebrate

iii. Focus on results & build accountabilityiii. Focus on results & build accountability

Source: Building a winning culture; Bain & Co. Survey, 2007

FOCUSING ON RESULTS FOCUSING ON RESULTS

&&

BUILDING ACCOUNTABILITYBUILDING ACCOUNTABILITY

PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT

PERFORMANCE MANAGEMET

is not about a new appraisal form…is not about a new appraisal form…

IT IS ABOUT:IT IS ABOUT:

- Managing the process to control the outcome- Managing the process to control the outcome

- Discipline to align efforts from top to bottom- Discipline to align efforts from top to bottom

PERFORMANCE MANAGEMENT – UNDERSTOOD BUT NOT PRACTICED

1.1. Lack of clarity & direction Lack of clarity & direction

2.2. Organizational goals poorly cascaded downOrganizational goals poorly cascaded down

3.3. Wide ranging complaints of subjectivity Wide ranging complaints of subjectivity

4.4. Performance reviews more of a chore than value Performance reviews more of a chore than value addadd

1.1. A sole focus on organizational KPI’s A sole focus on organizational KPI’s

2.2. Inability to Manage Inability to Manage processprocess

3.3. Continued surprises with poor/unintended Continued surprises with poor/unintended outcomesoutcomes

4.4. Frustrations all around! Frustrations all around!

WHERE SHOULD YOU START?

1. Assess where your organization stands on the PM learning curve.

2. Construct a system that is simple

3. Train every manager

4. Make no exceptions in enforcement

5. Continue selling!

“What” Work Is

Done

“How” the

Work is

Donex = Performance

Outcomes

PERFORMANCE MANAGEMENT AT BANK ALFALAH

GOALS(5-7)

WHATJOB OUTPUTS

70%

COMPETENCIES (6)

HOWBEHAVIOURAL INPUTS

30%

Simple Rating Scale

Rating Rating CategoryCategory DefinitionDefinition

33 ExcellingExcelling Jobholder has Jobholder has consistently consistently exceeded all exceeded all expectations for expectations for SMART goals and SMART goals and core core competencies.competencies.

22 PerformingPerforming Jobholder has Jobholder has achieved at achieved at minimum effective minimum effective results against ALL results against ALL SMART goals and SMART goals and core core competencies.competencies.

11 Partially Partially PerformingPerforming

Jobholder did not Jobholder did not consistently meet consistently meet all expectations for all expectations for SMART goals and SMART goals and core behavioral core behavioral competenciescompetencies

25%

60%

15%

Core Behavioral Competencies – Bank Alfalah

CommunicationCommunication

Drive / MotivationDrive / Motivation

Planning & OrganizingPlanning & Organizing

Results FocusResults Focus

Taking Initiative / ResponsibilityTaking Initiative / Responsibility

Teamwork AbilityTeamwork Ability

15

BehaviorsBehaviors

HOW

EFFECTIVE OUTCOMESEFFECTIVE OUTCOMES

CompetenciesCompetencies

THE COMPETENCY MODEL

Core Core CompetenCompeten

cycy

DefinitionDefinition Partially Partially

PerformingPerformingPerforminPerformingg

ExcellingExcelling

Taking Taking Initiative/Initiative/ResponsibilResponsibilityity

Evaluates, Evaluates, selects and selects and acts on acts on various various methods and methods and strategies strategies for solving for solving problems problems and meeting and meeting objectives objectives before being before being asked or asked or required to required to do so.do so.

Demonstrates little or no initiative at work, seeking out repetitive or routine work. Consequently requires extra amount of supervision and instruction. Has to be chased for completion of job. Lack of initiative is detrimental to the workgroup.

Works out own methods/ approaches to overcome problems and competently performs to expectations. Requires normal level of supervision and guidance.

Constantlyshows a highlevel ofinitiative.Alwaysvolunteers forAdditionalResponsibilities. Normally noGuidancenecessary.

COMPENSATION

• But now…But now…DISCRIMINATE DISCRIMINATE

• 80:20 Rule80:20 Rule

• Bell Curve based Performance Rating Distribution – (25% - 60% - 15%)Bell Curve based Performance Rating Distribution – (25% - 60% - 15%)

• In the past the rising tide lifted all the In the past the rising tide lifted all the

boats with it.boats with it.

let’s get it done!

Thank you Thank you