Enterprise Productivity and Quality Management Solutions

Transcription

1 Phase 1: The Strategic Vision Enterprise Productivity and Quality Management Solutions For Building a Capable Organisation Phase 2: Analysis Benchmarking & Best Practices Productivity Analysis HR Anaylses Process and Management analyses Phase 4: Monitoring and Evaluation re Expectation Productivity & Quality Profitability Sustainability Enterprise Intelligence & Phase 3: Design & Implementation System Modeling Performance Scorecarding Performance-based Incentive Systems Strive, Achieve, Succeed! 3/13/2014 Service Excellence Performance Measures/metrics 1

2 Success Attract, retain and motivate productive employees. Motivate employees to exceed expectations and grow the business. Achieve this exceptional behavior, Need a tool driven by a vision, mission and obtainable goals. Otherwise, employee morale will fade, and the plan becomes ineffective.

3 Performance Plans PIP are tools that have shown some success as well as some failures These are not panacea(universal remedies) for success. An effective plan requires the company to align interdependent elements within the business in a way that communicates the organisational culture Team-work, participative management, continuous improvement, quality, customer care and retention PIP s are used to institute, maintain and improve these very norms and reforms

4 Types Gain-sharing Divides results of improved performance between employees and employers Profit sharing Provide employees share of profits Employee Stock Ownership plans Allocate stock to employees

5 The Plan Major Components Rationale Metrics(lag and leading indicators) Formula (measuring and aggregation) Procedures Risk Management

6 Metrics Rationale: Seek to Improve/focus the performance agenda Seek to Influence behavior Create focus through communication and reinforcement Engender and encourage an ownership culture(accountability and responsibility) Importantly, metrics are not motivators per se Motivation is intrinsic value, which employees must take responsibility for, and is encouraged by aligning employees with roles and tasks that are consistent with their unique abilities, it is further engendered by a shared vision and values between the company and its workforce

7 Metrics Defining Metrics must be properly defined otherwise they act as deflators Non-alignment between employee s role and how performance is measured and rewards earned, can create frustration and disillusionment, which are at odds with a positive focus and a culture of confidence for success

8 Core principles Improvement in profits ultimate goal of plan Self-financing plan Profit-based drivers are the most common target for incentive arrangements Establish KPI s that will lead to improvements in profits or reduce losses

9 Barbados Experience Profit based allocation Percentage of profits are allocated to employees based on a post-determined formula Value created is often open ended It does not provide the line-of- sight for the organisation to fulfill its organisational/compensation strategy It can encourage employee apathy and morale issues can arise It requires a strong organisation system and management is central 3/13/2014 9

10 KPI s PIP s - Employees are allowed to focus on issues that they are best position to impact and lead ultimately to improvements in performance The focus can combine company, departmental and individual metrics Important to select the correct metrics Company - Growth and profits/customer satisfaction Departmental Collection of receiveables/new business Individual personal performance goals and productivity factors 3/13/

11 Benefits Premise of linking part of employees earnings to productivity Strengthens employee commitment Secure flexibility in labour costs Maintain corporate viability and sustainability 3/13/

12 Benefits Employees commitment Better understanding of growth and productivity Productivity improvements methods and targets Result in ideas from employees Achieving a common understanding of productivity issues such as: Concept and measurement of productivity Understand labour costs and impact Understand the issues relating to pay, productivity and past trends 3/13/

13 Problems and Issues Inadequate criteria to measure performance Criteria not understood, communicated and accepted Inappropriate appraisal systems, the objectives do not match the objectives of reward system(training and promotions not available) Limited feedback and monitoring 3/13/

14 Problems and Issues Appropriate quantum of reward place at risk is too small Non-recognition that performance, i.e. profits are driven by external factors outside employees control 3/13/

15 Management Process Governance This can appear to be expensive, that is adding a lear of management with little value If well designed can improve relevancy and effectiveness Improve the ability to drive execution of the growth strategy and creative competitiveness advantage 3/13/

16 Areas of Management Areas of Management Intended Impact Things to be done Strategic Process Human Capital Growth Competiveness Culture and Organisational Level of engagement Attracting /retaining talent Learning and growth capability Clarify roles Ensure alignment of incentive metrics Adequate incentives for high performance 5-6 metrics Goals are not too high/easy to attain Drive the correct behaviors Reward opportunity is to be compelling and competitiveness Improving level of empowerment and supporting technology Effective resource coordination across business /functions High level of transparency Absence of guiding principles Oversight of decisions 3/13/

17 Areas of Management Areas of Management Intended Impact Rationale Financial and Legal Payment for the correct outcomes and/ behaviors Union action taken against company for unfair treatment of employee(s) Remove over/underpayment of incentives Over sight of financial decisions Good monitoring and evaluation Appeal process Absence of guiding principles( Who should qualify re sickness, absence, time of employment, formula re calculation 3/13/

18 Building the Plan- Foundation for an effective Plan Management issues and Guiding principles Performance role clarification & Rewards philosophy Plan design/adjustment Goal setting Costing and budgeting Data capture and analysis Forecasting, monitoring, oversight and enforcement Collecting and validating performance data Calculation performance amounts Reporting, communicating Managing exceptions and disputes Creating visibility of these processes will provide discussion of roles that are needed to involved Identifying clear guidelines for each process for provide the tool for effectiveness and an effective plan 3/13/

19 Organisation Management Structure CZAR will responsibility and authority reporting to Snr. management Advisory/reconciliatory Committee Role and decision authorities Establishing the charter and process maps for operations to give clarity on when and actions should be taken Decisions rights and governance timelines HR has a fundamental role to play 3/13/

20 Executing Sound Governance Agility Establishing processes which respond quickly and regularly(within reason) and take corrective action Regularly review plan design; and goals vs-a vs achievements Alignment and Engagement Understanding the pay performance relationships and goal setting to ensure the plan drives its objectives -growth and competitiveness Informed decision making Understanding the facts Risk Mitigation Involving stakeholders with clear decision rules creates a natural system of checks and balances Communication transparency and timeliness Ensure transparent and timely communication esp. at critical junctures and resolve thorny issues before damage is done 3/13/

21 Results When done properly, PIP will assist the company to reinforce its performance culture, drive high performance, enable and optimise output and competitiveness. These are the outcomes that are expected from a well-designed and implemented PIP 3/13/