By: Aimun Shahab Date: 19 Dec 2013 ABOUT THE COMPANY Digitz is a full service digital media marketing agency The company has recently been partially bought by IAL SAATCHI & SAATCHI (30% stakes). Clients like P&G, Unilever, Engro Foods, Reckitt Benkiser, LU, Tapal Tea, GSK and National Foods. Provides web designing, social media marketing, mobile marketing and interactive digital media marketing services. Digitz organizational goals are mainly threefold 1. To capture a larger market share of digital media industry expand its client base 2. To be the top most ranking digital agency in Pakistan 3. To deliver cutting edge and innovative solutions to its clients and retaining existing ones.
Digital marketing is gaining importance in Pakistan since 2008 local and MNC firms leverage the power of social media and mobile marketing to increase sales and build their brands. Key players in digital media marketing industry and market shares Creative Chaos 29% Lane 12 14% Digital Symmetry 24% Digitz 24% Others 9% HR AT DIGITZ There is no formal HR department at Digitz as yet. The hiring decisions, training and performance & compensation management decisions are taken by the head of relevant departments, CEO and COO Digitz is structured across teams of technical, creative and client service executives over seen by the Senior Account Manager having the responsibility of managing existing clients. Entire teams are rewarded with bonuses after the yearly client satisfaction feedback survey PERFORMANCE MANAGEMENT AT DIGITZ Department chose to study: Account management/client services No formal performance management system or process in place PM review meetings done between employee and supervisor and top management on quarterly basis without formal performance appraisal forms. Annual performance reviews conducted to give out bonuses and promotion to high performers. Personal career development plans discussed in annual reviews with only those employees who top management deems as high performers. Company wide recognition such as Employee of the Year award given out to the top performer.
DATA COLLECTION AND ANALYSIS DATA COLLECTION METHOD AND SAMPLE SIZE Method of data collection: Questionnaire administered to employees and interview with CEO Sample size: 6 Account managers, 2 creative executives, 2 graphics designers/IT support employees Questionnaire administered to: 1. Find the level of employee satisfaction with current performance management system 2. Future turn over IMPACT ON ORGANIZATION Employee dissatisfaction stemming from performance management process and lack of clear goals There is a lack of feeling of equity and fairness in the meetings. Possibility of high turnover in the near future. Constant changes in Account managers make the clients uneasy since they have to brief the new account managers and get accustomed to them. high turnover and lower employee productivity can result in loss of clients/market share of Digitz which can hurt its growth and profitability.
PROBLEMS IDENTIFIED FISH BONE DIAGRAM ROOT CAUSE ANALYSIS RECOMMENDATIONS # 1: ESTABLISH PERFORMANCE GOALS AND COMMUNICATE THEM TO THE EMPLOYEES FROM THE BEGINNING OF THE YEAR Corporate goals should be used to establish Account Management Department goals. The Senior Account Managers should develop goals and KPIs for account managers keeping in mind the job description and corporate goals. The top management or Chief Operating Officer should review the KPIs developed to ensure they are in line with corporate goals. The performance goals need to be clear, concise and quantifiable where possible. Competencies should also be measured and be made a part of KPIs and performance goals. Weightage need to be assigned to each performance dimension. Develop a clear definition of high performers, average performers and poor performers on the basis of the extent to which performance goals are met and aggregate performance rating: Aggregate rating of 125% and above High performers 125%- 75% - Average performers Less than 75% - Underperformers Communicate KPIs to employees at the start of their job and revised goals need to be communicated and agreed upon periodically. CORE PERFORMANCE GOALS AND WEIGHTINGS
GOAL Weightage 1. Use contacts to add 1 new client in 6 months to Digitz portfolio. 10% 2. Creating client pitches along-side Creative department and contributing 2 creative ideas on average to each pitch 30% 3. Resolve client complaints in ongoing project within 24 hours 10% 4. Monitor project execution and prepare and send weekly status reports for all ongoing projects every Friday before closure of business 20% 5. Research, outline, write, edit and proofread materials, specifically monthly content calendars at the beginning of each month for Facebook and Twitter with zero grammatical and English errors. 20% 6. Presenting new campaign ideas and budget to the client and successfully convincing the client to execute the campaigns 2 out of every 6 presentations made
10% CORE BEHAVIORAL COMPETENCIES AND DEFINITIONS
HIGH, AVERAGE AND LOW PERFORMERS DEFINED Performance Goals High performers (rating = 3) Average performers (rating = 2) Low performers (rating = 1) 1. Use contacts to add 1 new client in 6 months to Digitz portfolio. Adds 2 clients in Digitz portfolio in 6 months or less Adds 1 clients in Digitz portfolio Makes no addition to clients 2. Creating client pitches along-side Creative department and contributing 2 creative ideas on average to each pitch Contributes more than 2 creative ideas to 90% of the pitches made. Proactively shares global case studies with creative dept Contributes more than 1-2 creative ideas to 80% of the pitches made. Shares global case studies with creative dept when pitches are being made only Contributes more than 1-2 creative ideas to less than 80% of the pitches made. Shares global case studies with creative dept only when instructed to do so. 3. Resolve client complaints in ongoing project within 24 hours Complaints resolved within 24 hours 95% of the time. Gets ratings of 3/3 on problem/complaint resolution by the client in client satisfaction surveys. Complaints resolved within 24 hours 80% of the time. Gets ratings of 2/3 on problem/complaint resolution by the client in client satisfaction surveys. Complaints resolved within 24-48 hours less than 80% of the time. Gets ratings of 1/3 on problem/complaint resolution by the client in client satisfaction surveys. 4. Monitor project execution and prepare and send weekly status reports for all ongoing projects every Friday before closure of business Prepares reports and send them on time 90% of the time. Less than 5% delays in sending Errors in reporting less than 5% of the time Prepares reports and send them on time 80% of the time. 10-20% delays in sending Errors in reporting 10% of the time Prepares reports and send them on time less than 80% of the time. More than 20% delays Errors in reporting more than 10% of the time 5. Research, outline, write, edit and proofread materials, specifically monthly content calendars at the beginning of each month for Facebook and Twitter with zero grammatical and English errors. Prepares calenders and send them for client approval on time 90% of the time Less than 5% delays in sending Zero grammatical errors Prepares calendars and send them for client approval on time 80% of the time Less than 10% delays in sending 1-5 grammatical errors Prepares calenders and send them for client approval less than 80% of the time More than 10% delays in sending More than 5 grammatical errors 6. Presenting new campaign ideas and budget to the client and successfully convincing the client to execute the campaigns 2 out of every 6 presentations made Successfully convinces clients more than 50% of the time Successfully convinces clients 30-33% of the time Successfully convinces clients less than 30% of the time # 2. NEW PERFORMANCE MANAGEMENT CYCLE Develop a performance agreement ,set goals and communicate it to the employee Employer and employee sign it off Plan Performance review and rating discussions between employee and employer Periodic revision of goals Quaterly Review End of year performance review Rewards based on performance ratings End of Year Final Review After EACH quarterly review meeting KPIs may be revised so that the employee knows what is expected of them and where they need to improve and what new targets they will be assessed on in the next quarter. Peer review should be made a part of the performance management process to assess the ability of employees to work in teams effectively and deliver client expectations. Supervisors should document manually or digitally the employee performance according to the defined goals on a daily, weekly or an event-wise basis using a log book either digitally or manually. These performance logs should be used to rate the employees performance in the appraisal form. Periodic or daily coaching of employees needs to be done my supervisor End of year review should be a confidential, free from personal attacks (use sandwich technique to highlight weaknesses or gaps to employee) meetings where the employee should be given performance ratings according to the goals defined only. Training needs to be done of supervisors in PM process
PERFORMANCE APPRAISAL FORM AT DIGITZ (Pvt) LTD. Department Account Management Employee Name Supervisor Name
Rating Scale Under Performer Average Performer High Performer 1 2 3 Performance Goals Weightage Supervisor Rating Weighted rating Behavioral Competency Superviser Rating 1. Use contacts to add 1 new client in 6 months to Digitz portfolio. 10% Continuous Learning and Improvement
2. Creating client pitches along-side Creative department and contributing 2 creative ideas on average to each pitch 30% Ability to mutli task
3. Resolve client complaints in ongoing project within 24 hours 10% Interpersonal skills and strong written and communication skills
4. Monitor project execution and prepare and send weekly status reports for all ongoing projects every Friday before closure of business 20% Entrepreneurial and creative spirit
5. Research, outline, write, edit and proofread materials, specifically monthly content calendars at the beginning of each month for Facebook and Twitter with zero grammatical and English errors. 20% Problem Solving
6. Presenting new campaign ideas and budget to the client and successfully convincing the client to execute the campaigns 2 out of every 6 presentations made 10% Nill Nill Total Performance Goal Rating
Total Competency Rating 50% 50% Overall Performance Rating
Supervisor Signature COO Signature # 3: DESIGN A FORMAL PERFORMANCE APPRAISAL FORM ACTION PLAN
TASK SCHEDULE RESPONSIBI LITY OUTCOME
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1 Set and communicate quantifiable SMART performance goals to Account managers
Top management and Supervisors Clarity of performance criteria for employees 2 Periodically make changes to the performance goals in quarterly reviews
Periodic assessment of the employee's KSAs and career development 3 Conduct quarterly performance review meetings
Periodic assessment of the employee's KSAs and career development 4 Conduct final performance appraisal meeting
Compensation and promotion of employees based on their final score in performance appraisal form 5 Superviser to make formal and written note of employee performance according to defined KPIs on a daily basis and coach accordingly
Supervisor Help justify performance ratings given to employees in review meetings Employees feel that supervisor is interested in their performance and career promotion; they feel they are being treated fairly and are happy with the working conditions THANK YOU!