Effective Performance Management. Principles, Process, People & Politics

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1 Effective Performance Management Principles, Process, People & Politics Dr. John Beckford Beckford Consulting

2 What is Performance? Performance is effectiveness In every action of the Organisation and its Employees

3 What is Performance? Effectiveness means Achieving intended purposes by: Doing the right things for the right reason Using the right people with the right skills and knowledge

4 What is Performance? Effectiveness implies Viability Viability = Survival

5 What is Performance? The KEY to superior performance in organisations: People People People

6 Effective Performance To be effective the organisation must: Do things right Process control Make performance improvements Achieve efficiency gains and Do the right things Respond to environmental demands Recognize opportunities Learn from mistakes

7 Effective Performance Organisational Learning for Performance Provide awareness of current capacity Provide awareness of current performance Identify the right Product or Service Provide the resources to facilitate change Continually improve current Products or Services

8 Continuous Learning Organisation for Performance Immediate Market Wider Market Learning about Processes Result of Action Operations Operational Action Management Market Response Learning about Markets Linking them together

9 Learning must occur at two levels: Skills for Performance The Organisational The Personal And they must be integrated

10 Personal Learning Skills for Performance Immediate Market Wider Market Learning about Processes Result of Action Operations Operational Action Management Market Response Learning about Markets Linking them together

11 Skills for Performance Why Skills as the basis of performance? Process control is limited: It cannot capture variety in process goals Process charts become complex and bureaucratic

12 Skills for Performance Why Skills as the basis for performance? In service provision the product is an emergent property of its delivery Performance cannot be inspected in It must be assured as an integral part of the process

13 Skills for Performance More than 70% of the information age economy is service based! 50% or thereabouts of the employees of every manufacturing organization provide services either internally or externally! Overall, around 85% of the economy is engaged in service provision!

14 Skills for Performance Why Skills as the basis for performance? Performance does not rely on variety reduction or standardization Performance relies on variety management matching solution to problem Skilled people make good variety managers

15 Skills for Performance What Skills are Needed? Where are process goals ill defined? How are these issues clarified? The ability to do this should be managed as an integral part of Performance Management

16 Skills for Performance Controlling and Developing the Skills Base Which skills do you need? Which skills do you possess? How do you close the gap?

17 Managing Skills for Organisational Performance Controlling and Developing the Skills Base The skills you need The skills you possess Business Planning Personnel Records Task and Role analysis Appraisal Interviews How do you close the gap?

18 Managing Skills for Organisational Performance Controlling and Developing the Skills Base Business Planning HRD Strategy Appraisal Process Beckford Consulting

19 Managing Skills for Organisational Performance Controlling and Developing the Skills Base Recruitment Strategy Drives HRD Strategy Drives Training Strategy Supplements Review Supplements Skills Base

20 Managing Skills for Organisational Performance Limitations Only one aspect of performance is captured

21 Managing Skills for Organisational Performance No process control Limitations but Personal effectiveness is captured through appraisal Task outcomes are not captured

22 Managing Skills for Organisational Performance Limitations Needs to be part of an integrated approach which controls: Skills the ability to deliver performance and Effectiveness whether or not performance was achieved

23 C:\WINDOWS\DESKTOP\AHMARKS\PMS\ANYPROC.AF3 Tuesday, April 4, :51 PM Standard Operating Instructions Tasks Process Operations Chemical Processes Plant Configuration Safety Environment Standards Product Specification Customer Needs & Expectations Regulatory & Legislative Requirements are carried out by Organisation Change Any Process Short Term Customer Requirements Market Satisfaction Regulatory Compliance Legislative Compliance Individuals Roles Customer Satisfaction Timing Yield Specification Rework etc. Personal Competencies = Competencies Process Change Record of Skills Held Record of Skills Required Business Planning Plant People Materials Resources & Expectations (The Budget) Capacity Utilisation Yield HR Development Strategy Train Recruit Appraise Succession Planning Business Appraisal Operational Performance Technical Performance Commercial Performance Business Plan Operational Targets Technical Targets Commercial Targets Page 1 Costs ERP Planning Volumes Stocks Prices BoM Income

24 Managing Skills for Organisational Performance Purposes Processes Roles Individuals Skills Tasks Skills Skills Required Skills Gap Skills Available Appraisal, Training, Recruitment

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