Success Factors application for Performance Management implementation in INA Group

Transcription

1 Success Factors application for Performance Management implementation in INA Group Vjekoslav Golubović, Compensation and HR Operations Department Director Nives Raič, Compensation and Benefits Expert Coordinator Zagreb, 17 June 2015

2 Agenda 1 Performance management system 2 SuccesFactors IT solution 3 PM and SF Intro 4 Q&A 2 2

3 Number of employees Performance management system answers company s question on how to improve productivity at all organizational levels with limited resources. Goal Reward based on achieved results. Identification of effective performers. Increase work motivation. Improve business results. Individual career development and promotion. Purpose Strategy implementation. Corporate culture changes. Providing objective feedback. Control and development purpose. Communication on what and how to achieve results. Performance Performance management is a strategic and integrated process which makes it possible to maintain an organization s success by increasing work performance and developing the competencies and potentials of teams and individuals. -Armstrong 3

4 Performance management system consists of three phases Planning Appraisal Feedback, development, rewarding Target setting i.e. defining key performance indicators and criteria. Define how targets should be achieved (competencies). Performance evaluation is based on previously set standards i.e. key performance criteria. Direct and objective information on individual performance and development needs. Performance evaluation is linked to rewarding system. 4

5 In 2014 Group goal was to introduce an integrated PM with all three pillars of people management as equally important across the Group. SF SCOPE PM PILLARS PM Mol Group INA Group Total 5

6 PM pillars provide basis for making objective HR decisions. Identification of effective performers. Merit based culture Rewarding SUSTAV RESULTS UPRAVLJANJA OF PM PILLARS UČINKOM Retention Succession Career Development 6

7 Clear business need has been identified to have IT platform linked to existing SAP solution that will enable integrated PM across the Group. Simplification of the process Timeframe Dialogue Previous challenges No automated steps Target setting in excel Delay in process Duplicated inputs due to lack of system integration SUCCESSFACTORS IT system implemented Automated steps: Cascading goals can be handled in the system with one click, sharing of business objectives simple no integrated IT-solution for PM processes (Performance and Career Management, Development and Succession Planning) No system to track identified competency gaps in the organisation More than 2000 pages annually printed as evaluation and target setting docs No possibility of electronic approval No reporting possibilities on Group level No proper involvement of participants, no individual responsibility taken by evaluee Usually no quality feedback, only quick information about bonus amount Budgeting focus during calibration, no time for quality discussion User-friendly, integrated IT tool, simple to complete tasks SMART* guidance in the system, cascading of business objectives by one click Electronic approval possibility in the new system with one click to confirm the goals & evaluation Modern IT solution for all participants IT system supports calibration meeting, changes directly in the system 7

8 SF implementation was aiming to introduce IT platform for integration and execution of all 3 pillars of PM. PROCESSES COVERED END-USERS BENEFITS OF APC HRIS IT TOOL Target setting. Performance & Competency Evaluation. Career and Succession planning. People review meetings (calibration session). Development planning. Bonus budgeting & calculation. Evaluees* (employees E01 and above in 2015). Evaluators (managers). HR (monitors and supports the process). All in one place (common platform for all APC processes). End-user application (supporting both evaluees & evaluators using the system). Reduction of paper documents (electronic approval functionality). Integrated, clear and transparent APC processes. 8

9 7 SF modules were implemented covering all PM processes: Performance and Career Management, Development and Succession Planning, Bonus calculation. 1. TARGETS PERFORMANCE DEVELOPMENT SUCCESSION SUCCESSION EMPLOYEE FILE REPORTS REPORTS COMPENSATION COMPENSATI ON Individual target plan Goal management Target setting Mid-Year review Year-End evaluation Individual Development plan Org chart Lineage chart 9 box matrix Employee profile (on line resume) Employee scorecard Dashboards Standard/ad hoc reports Bonus budgeting Bonus calculation Bonus spending PRM PM FORM TS FORM Bonus letters 9

10 There are 6 role-based permissions in SF platform assigned to participants and facilitators of PM process P A R T I C I P A N T EMPLOYEE (Evaluee) DIRECT MANAGER (Evaluator) LEGAL MANAGER (Approver) MATRIX MANAGER Edit / View rights for his own data. Signing relevant forms. Edit / View rights for his direct reports Signing relevant forms. View rights for all participants within his Business Area (see population top-down). Edit rights only for his direct reports. Signing relevant forms. View rights only for his direct matrix reports. NOTE: All processes (except signing relevant forms) start with the Employee self-input. 5 6 F A C I L I T A T O R HR PARTNER HR ADMIN End-user support. Monitoring PM process. System administration. Mass creation of relevant forms. 10

11 3 modules: Targets, Performance and Compensation enable execution of management by objectives processes in line with internal regulations TARGETS PERFORMANCE COMPENSATION TARGET PLAN TARGET SETTING FORM PERFORMANCE EVALUATION FORM COMPENSATION FORM EXECUTIVE REVIEWS INDIVIDUAL VIEW BONUS LETTER 11

12 Target plan is online worksheet used for managing and creating individual targets in one central place during the planning process. WHAT WHERE IN SF TARGET PLAN Used by employee and manager Employees use TP for: target planning, self inputs, create/edit/delete Targets, status, tasks. Manager uses TP as a place to view/create/edit/delete his team s targets and to cascade his targets. Targets are only stored in this module of the system, target setting approval process takes place in another module of the system (Performance- Target setting form. 12

13 Performance module is place where target setting and evaluation forms are created, tracked, accesable and stored. WHAT WHERE IN SF TARGET SETTING FORM Interactive form Used by employee and manager Review/add targets/edit and delete the existing targets and comment on them Finalize and approve targets (previously entered targets on the Employee s Target Plan are automatically pulled into TS form). Define and approve Development goals. 13

14 Performance module is place where target setting and evaluation forms are created, tracked, accesable and stored. WHAT WHERE IN SF PERFORMANCE EVALUATION FORM Interactive form used by employee and manager Used to evaluate and comment: achievement of individual targets, demonstration of competencies, achievement of development goals. 14

15 Compensation module facilitates bonus calculation, budget spending overview & provides information on bonus to manager and employee. WHAT WHERE IN SF COMPENSATION FORM Provides worksheet for managers to propose performance bonuses. EXECUTIVE REVIEWS At any time during the bonus approval process, managers can review bonus payout proposal for the employees in their hierarchy. BONUS INDIVIDUAL VIEW Employee has possibility to see bonus calculation details. BONUS LETTER Communication about bonus payout and performance evaluation for the reference year. 15

16 3 modules: Development, Succession and Employee file enable execution of Career & Succession planning and Development planning DEVELOPMENT SUCCESSION EMPLOYEE FILE Individual Development plan Succession org. chart view Lineage chart Performance/Potential Matrix Employee profile (on line resume) Employee scorecard 16

17 Development planning enables managers and employees to create actionable plans that address development objectives and activities. WHAT WHERE IN SF DEVELOPMENT Used by employee and manager. Create development goals and development activities in one central place. Track progress on development throughout the year. Development activities (custom or chosen from the Development catalogue): are linked with competencies which need to be developed, need to be defined having in mind the purpose of the goal (current role, future role or general skillset). 17

18 Succession planning enables our organization to develop and gain visibility of talent pool across the Group and have a risk assessment covering businesscritical roles and people. WHAT WHERE IN SF SUCCESSION Used by managers to: Nominate successors for his direct reports in, Define readiness category and ranking, compares Successors - full dataset will be visible, accesses Lineage chart tab - a visualization of the succession chain, Lineage Chart helps managers and HR understand the implications to the organization when a succession plan is executed. Performance/Potential Matrix helps manager identify top talents. 18

19 Employee online resume used by employees, managers and HR. WHAT WHERE IN SF MY EMPLOYEE FILE For employees, My Employee File is a place to manage their career, talent and background information. enter their photo, professional information, work experience, education, career interests, etc Manager uses Employee Files as a place to manage his team s talent information. has view rights of Employee profile and can edit Talent flags of his direct reports and their Successors and their Nomination portlet. Scorecard is an aggregate managerial view of the employee s information (performance evaluation, potential appraisal, 9 box placement, succession and nominations). 19

20 Module reports allows access to Dashboards and Analytics which makes him powerful way to gain visibility and oversight into all data within PM. WHAT WHERE IN SF DASHBOARDS Provide oversight into performance and form status dynamic graphical views of summary-level information about your team, department, facility, etc.. ANALYTICS Provide detailed oversight into all data stored in app. Can be expported to excel, CSV 20

21 Lessons learned- SF has positive and challenging side effects. POSITIVE CHALLENGES Mail notifications All in one place Process and data monitoring via dashboards Employee data availability for internal recruitment Calibration in the moment Decrease of paperwork Increase awareness of managers role and responsibility Employee development data Succession and career planning Interface with existing database Additional workload due to not following standard SF processes Localization readiness Unique workflow Retroactive data update Link with compensation database Organizational and position changes, fluctuation Accuracy of bonus calculations Split of roles 21

22 Having the best practice HR solutions is not enough if you don t have the right IT support. SuccessFactors IT tool is a Formula car. You just need to learn how to drive it. 22

23 Q & A 23

24 Thank You 24