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THE USE OF HR PERFORMANCE MANAGEMENT IN STRATEGIC BUSINESS PLANNING Case Studies, Concepts and Debatable Ideas Kenny Ong CNI Holdings Berhad Content 1. Why is the right Performance Management System critical? 2. Adapting the System to the Business Model and Strategy 3. Finetuning Performance Management for Talent Management 1. Why is the right Performance Management System critical? “…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 our success. No wonder our performance is inconsistent CEO, Anonymous 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 models developed ? Training budget as % of payroll What’s wrong with this picture? Before we start… Moral of the story… 1. Innovation: – Business models – Products – Services 2. Market Leadership 3. Competitive differentiation Get the picture? What is the OBJECTIVE of a Performance Management System? ? What is the ultimate objective of a Performance Management System? ? ?Performance? – achievement, ? ?Management? – controllable, improvement ? ?System? – predictable oute, autorun Summary? ? A Predictable process to Improve Controllable Achievements What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning BSC and KPIs Strategy Business Model Business Strategy Execution Talent Management 2. Adapting the System to the Business Model and Strategy Focus on the Business Strategy and Business Direction first What is the Business Model? USP Market Discipline Profit Model ?Google ?Tata Nano Business Model: Profit Model Revenue Cost Margin Cash Flow Assets Intro: Market Discipline They are the most innovative Constantly renewing and creative Always on the leading edge A great deal! Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership A nohassles firm Convenience and speed Reliable product and service Exactly what I need Customized products Personalized mu