【正文】 about Performance Appraisals Summary 1. Process problem 2. Form problem 3. People problem What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? Performance Management Performance Appraisal Performance Development Performance Measurement Common terms and definitions What is the OBJECTIVE? ? 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 KPIs BSC Business Model What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model Business Plan Implementation Talent Management Behaviorbased Knowledge/Skill based Resultsbased Traitbased Which system should we use? Managing Performance = Managing Expectations What?s YOUR expectation? Activity based Dangers of Best Practice and Benchmarking… “Abraham Wald?s Work on Aircraft Survivability”, M. Mangel and . Samaniego Where would you focus reinforcement? Dangers of Best Practice and Benchmarking… Company Performance high low ?Best Practice? theories low high zero Performance Trend line “Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2022 Dangers of Best Practice and Benchmarking… Company Performance high low ?Best Practice? theories low high zero Performance Trend line “Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2022 Dangers of Best Practice and Benchmarking… Selection Bias: 1. Success Traits = Failure Traits 2. Successful Cases + Failure Cases 3. Worst effects in ?Old? industries 4. Overvalue ?best practice? theories 5. Current acplishments unfairly magnified by past achievements 6. Reverse Causal Dangers of Best Practice and Benchmarking… Also known as ?Beware of Consultants?: 1. Selection Bias 2. Big vs. Small pany 3. Selective success stories 4. Correlation vs. Causal 5. Survey problems 6. Practical vs. Glamourtohave 7. Leaders who benchmark MBO Standards A Excellent B Good C Average D Poor E Useless MBO Standards A Excellent B Good C Average Good D Poor E Useless MBO Standards A Excellent Excellent B Good Very Good C Average Good D Poor Not Good E Useless Commit Suicide MBO Standards A Excellent Consistently achieved 4 for 3 quarters B Very Good Higher than planned results C Good Achieved Planned Results D Not Good Did not fully meet planned results E Commit Suicide Unacceptable performance Competency Target Setting 1. Initiative 2. Teamwork 3. Problem Solving 4. Leadership 5. Integrity What?s the problem here? 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. The Planning amp。 Budgeting Process Stages Output Month 1. PrePlanning Analysis amp。 Brainstorming ?Current 189。 yr budget amp。 revision ?Next yr options and budgets required July Sep 2. Highlevel Group Strategy and Targets ?Highlevel strategy of Group Corp Plan. ?Circulation of Main Budget simulation to all departments Sep 3. Functional Strategy and Budgets ?BSC amp。 Budget preparation by HODs to HODivs Sep Oct 4. Formal Results Planning ?BSC amp。 Budget to CEOs, followed by BOD ?Revised and Finalized Plans and Budgets OctNov 5. Communication and Cascading ?Presentation of Group Budget and Planning summary amp。 distribution ?Communication of Highlights to the field and staff NovJan Coaching amp。 Counseling Month 1 Performance Planning Month 12 Performance Appraisal Month 211 ? Review processes 1. Result Planning schedule inc. BSC, Budget 2. Quarterly Performance Appraisals 3. EMC – sales performance 4. QMS – nonsales performance 5. Divisional meetings 6. Annual Appraisals 7. Specialized KPI mittees 8. CAR, PAR, SCAR KPI improvements 9. Internal Audit amp。 MSD – process problems 10. HRM amp。 TND – people problems 11. Supervisor Induction – PM training 12. Talent Management End Notes Problems, Teamwork, and everything else in between Problems still existing 1. No serious budget to tackle key risks 2. Too much optimism or pessimism 3. Innovation vs. Results vs. Baseline 4. Investment ≠ Portfolio Management 5. Top down vs. Bottom up 6. Good to have vs. Need to have 7. Line Manager not thinking like Investors 8. Too focused on KPI and BSC 9. Budget allocation seen as ?popularity? vote Listing pressure for shortterm budgets and results vs. longterm innovation TEAM levers . 247。 . Don?t fet… “The business of business is Business, not Sales, not Marketing, not Finance” Thank You. soft copy of slides: .