Corporate

Performance
Measurement and
Management
at
M.P.S

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ROMY FELIX HEAD HRD

Agenda
1.
2.
3.

Introduction to Corporate Performance Management

Individual Performance Management
Definition: Competencies
Organisational and Individual Competencies
Competency framework
Why Develop a Competency Framework

4.

Approaches to Competency Profiling

Competency & Skill library features and Benefits
Steps for implementing a Competency & Skills library
Examples

5.

Definition: Job Profiling

Process for Creating a Job Profile
Examples and Templates

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ROMY FELIX HEAD HRD

Performance
Measurement
What gets measured gets done and
What gets measured becomes
important!

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Performance Management the linking pin !

Vision
Strategy
Processes
Systems

Starting with the

ultimate goal and
mission of the
organisation.
Aligning the
business units,
teams and
individuals

Performance
Management

Behavior and Actions

Results
ROMY FELIX HEAD HRD

What employees look for the linking pin!

Vision
Strategy
Processes
Systems

Understand what is
expected form them
This will lead to
aligning individuals
towards achievement
of organisational
goals

Performance
Management
Behavior and Actions
Results
ROMY FELIX HEAD HRD

What does Performance Management Involve?

Achievement of strategic goals & objectives

Allocation of KPIs
Facilitate employee personal development as part of a
integrated process
Understanding true strengths and weaknesses at every level
of the organisation
Transformation of people management into a result-driven,
strategic business function
Alignment of employee goals and actions with corporate
strategy
Retention of top performers and development of low
performers
Increased quality and frequency of communication between
managers and employees
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ROMY FELIX HEAD HRD

CEO Questions
Have I set the right organisation goals to achieve my strategy?
There must be a more systematic approach we could use for
goal setting.
What kind of behaviors and skills and focus should I be
directing my employees to have in order to achieve these
goals?
Does anyone know what behaviors will most likely help to
improve our financial performance or improve customer
satisfaction?
Do the employees understand my vision and strategy? Have
they been clearly communicated?
Do employees buy-in to these goals and do they understand
and buy-in their role or their divisions role in meeting the
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strategy?
ROMY FELIX HEAD HRD

CEO Questions Cont.,

Is my company structured optimally to fulfill our Strategy?
Have we set up a performance incentive system that aligns
with our organisation strategy? Does it include objectives that
our staff care about?
Do I have the right tools, systems and processes in place,
both formal and informal to support performance related
communication?
Isnt there some form of automation that can give me more
detailed, relevant information.

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ROMY FELIX HEAD HRD

Performance
Management
May the most agile win

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ROMY FELIX HEAD HRD

Measurement and Performance

There are some questions that are relevant for business:
Do we attract and retain the right people with the right skills?
Are we performing effectively in our operations to produce
and deliver to our stakeholders?
Are we meeting or exceeding our stakeholders expectations?
How are we doing financially?
o Margins?
o Costs?
o Revenues?
o New business revenues?

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ROMY FELIX HEAD HRD

Integrated and Balanced Management Approach

Perspective Strategic
Objectives

Measures

Targets

Owner/Accoun
t-ability

Initiatives

Financial

Shareholder
value
Profit
New revenue

Shareholder Equity
Operating
margin
Revenue from new
services

R X million in 3 years
RPI + x% annually
25% in three years

Finance Dir.
CEO
Business Dev. Mgr

Implement Economic
Value Added

Customer

Differentiation
Strategic alliances
Customer service

Value for money

Profits from alliances
Customer satisfaction

Number one customer

rating
R x million in five years
Number one customer
rating

Marketing Dir
Bus. Dev. Mgr.
Marketing Dir

Create customer
Segmentation model
Redefine channel
strategy

Business
Processes

Productivity
New product devt.
Segmentation

Revenue/work hour
Product development
cycle time
Number of initiatives
targeted at profitable
segments

Best-in-class within five

years
Reduced by 50% in two
years
60% within one year

COO
R&D Manager
Marketing Dir.

Reengineering new
product
development
process

Learning &
Innovation

People policy
Alliance Mngnt
Customer focus

Management span of
control
Number of learning
partnerships
% management time
interfacing with cust.

Triple in three years

10 in five years
20% in two years

Human Res. Dir.

Bus. Dev. Mgr.
CEO

Develop new HR
strategy
Implement
performance based
compensation
program

This prioritised set of initiatives defines the executive agenda and should support the planning and budgeting process. Conversely, senior management should
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call into question any initiatives inconsistent with the strategic objectives.

ROMY FELIX HEAD HRD

So far so good .. But ..

Is there any difference between organisational and
individual performance management?
Where should management put more attention to
when managing performance?
At the end what is performance management?

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ROMY FELIX HEAD HRD

Defining Individual performance

Performance
Management
Support and tools

Competencies
, knowledge
and skills
KNOWLEDGE
I know how
to do it

CONTEXT
I know what
to do

WILLINGNES
S
I want to do
it

Motivatio
n

Performance: Those behaviours, that under

the right conditions, lead to the expected
results
ROMY FELIX HEAD HRD

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The need to cascading down to level n

Value for clients, stakeholders
And employees
Organisational Strategies
Divisions, Sections,
Programs Plans etc
Individual Action

Best Practices
In value based managed enterprises, individual employees understand how
processes and day-to-day activities contribute to value creation
They know what they have to do individually to contribute to value creating
This value creation focus becomes the basis for determining appropriate
performance measures and enables to differentiate between what could be
measured and what should be measured (Business Balanced Scorecard Concept)
ROMY FELIX HEAD HRD

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Individual performance management infrastructure

Performance Management
infrastructure
1. Roles & Responsibilities
2. Annual objectives and
feedback
3. Competencies model

Organisation
Structure

Compensation
& Incentives

Career
Development

Training &
Education

Recruiting &
Selection

Integrated People Management Process17

ROMY FELIX HEAD HRD

Performance Management System

PERFORMANCE MANAGEMENT
GOAL MANAGEMENT

COMPETENCY MANAGEMENT

Corporate Goals

Core Capabilities &

Key Competencies

Team Goals

Competency Mix

Individual Goals

Individual Competency

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ROMY FELIX HEAD HRD

Competencies.

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What are competencies?

Competencies are a set of behaviours that encompass
skills, knowledge, abilities, and personal attributes
that, taken together, are critical to successful work
accomplishment.

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ROMY FELIX HEAD HRD

Organisational and Individual Competencies

Organisational Competencies:
Pinpoints the most critical competencies for
organisational success. These are an organisations
core competencies.

Individual Competencies:
Those competencies that each employee brings to his
or her function.

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ROMY FELIX HEAD HRD

What is a Competency Framework?

A Competency Framework is a map to display a set of
competencies that are needed to achieve an
organisations mission, vision, and strategic goals.
A Competency Framework is future-oriented, providing a
master of core individual competencies required to
develop the ideal future workforce.
The competencies that make up the framework will serve
as the basis for future employee management, since
they play a key role in decisions on recruiting,
employee development, personal development, and
performance management.
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ROMY FELIX HEAD HRD

Why a Competency Framework?

A Competency Framework will help to bridge the gap
between where the organisation is now and where we
want to be in the future.
This occurs in two ways.
Serves as a guide for management in making decisions, since it
is based on the competencies that support the mission, vision,
and goals of the organisation.
Serves as a map to guide employees towards achieving the
mission of the organisation and their functional areas.

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ROMY FELIX HEAD HRD

Approaches to Competency Profiling

Two approaches to competency profiling:
Top-down approach:
Generally involves picking, based on a strategic analysis of the
organization's performance objectives, an array of competencies
from a dictionary of competencies and assessing those for a
particular position or class of positions.

Bottom-up approach:
Involves exploratory checklist surveys and subsequent
confirmatory interviews to derive the competencies from
employees.

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ROMY FELIX HEAD HRD

Functional Competencies

Administrative Knowledge
Business Acumen
Computer
Filing
Financial
Health & Safety Knowledge and Skills
Human Resources
Industrial Relations
Legal Knowledge
Management Information
Marketing/Sales
Procurement
Quality Knowledge and Skills
Security
Typing
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ROMY FELIX HEAD HRD

Task and Leadership Competencies

Analytical Ability
Assertiveness
Conflict Handling
Customer Focus
Decisiveness
Flexibility
Individual Leadership
Initiative
Judgement
Leadership of change
Negotiation Skills
Oral Presentation
Oral Persuasiveness
Performance Orientation
Persistence
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ROMY FELIX HEAD HRD

Task and Leadership Competencies

Planning/Organising/Control
Self-development orientation
Strategic and Global Perspective
Team Leadership
Values
Verbal Communication
Written Communication

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ROMY FELIX HEAD HRD

Competency & Skill Library Features & Benefits

Comprehensive Library

No need to reinvent the wheel. Allows a quick start.

Completely customisable: Create new skill groups, skills, and subskills as needed

Create Common or Unique Performance Levels

Define different levels of competence (for example, from beginner to

expert) for each competency, or use one scale for all

Input Performance Targets

Identify performance expectations for each competency/skill group

for entry level up to senior management

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ROMY FELIX HEAD HRD

Competency & Skill Library Features & Benefits

Define Behavioural Indicators

If desired, enter behavioural examples/targets for competencies and

skills

Continually Enhanced and Grows in Value

The library is easily enhanced as a by-product of job profiling,

performance planning, and employee development

Fully Integrated with Other HR Functions

Your competency/skill library is used in every other function of HR, it

ties them all together, and allows consistency throughout all of your
performance management and developmental programs

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ROMY FELIX HEAD HRD

Steps for Implementing Competency & Skill

Step 1: Review provided library; eliminate competencies
Library
and skills that are irrelevant to the organisation

Step 2: Select core competencies based on

organisational strategy and values

Step 3: Departments review list of competencies and

skills for their function and add additional competencies
and skills as they are needed

Step 4: Library grows naturally as new skill needs are

identified while building job profiles, performance,
development, or succession plans
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ROMY FELIX HEAD HRD

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Example of Competency Assessment Process

Step 4: Assess Competency Level Achievement
Competency Assessment
Competencies

Required
Level of
Complexity
[Refer to
Competenc
y
Framework]

Employee
s
Rating

Actual
Ratin
g

GAP

Developmental Requirements

Business
Acumen

-1

Work towards attaining required level. [Refer to

Academy, or engage in formal training, e.g.
Advanced Management Programme, UNISA]

Marketing/Sales

-1

Investigate marketing & sales activities in BU.

Report back in 3 months for actions to be taken
after discussion with Reviewer

Financial

-1

Requires training on financial modeling.

Recommend that Academy module on Financial
Modeling be taken.

Industrial
Relations

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ROMY FELIX HEAD HRD

Job Profiling

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ROMY FELIX HEAD HRD

What is Job Profiling

Job Profiling is a systematic procedure for identifying the
Competencies critical for success in a particular job or
a job role.
Job profiles can then be used for recruitment,
selection, performance review, promotion, career
development and succession planning.

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ROMY FELIX HEAD HRD

Job Profiling Procedure

Step 1:
Obtain background information about the job to be
profiled and how that job fits into the organisation.
Step 2:
Develop an initial list of the tasks most relevant to the job
being profiled.
Step 3:
Meet with subject matter experts (SMEs)incumbent
workers or supervisors of the job being studiedwho review and
revise the list, adding, deleting, consolidating, or changing the
wording of each task to make sure that the list of tasks accurately
represents the job as it is performed in the organisation.

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ROMY FELIX HEAD HRD

Job Profiling Procedure

Step 4:
Present detailed descriptions of each of the
Analytix Competency Framework to the SMEs. The
SMEs decide, as a group, which competencies are
relevant to the job and which skill levels are necessary
for entry into the job and effective performance in the
job.
Step 5:
The final product of the profiling procedure is
a report listing the most critical tasks an individual in that
job must perform and, for each relevant Analytix
competency, the skill level required to perform the job.

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Operational objectives
Executive Role

Represent Finance & Funding and provide strategic input and value add at EXCO, ABCC Board Meetings, Board Committee
Meetings, External Boards, Divisional Merit Committee Meetings, and facilitate the implementation of Executive/Board
decisions.

Leadership

Effectively provide leadership in the Finance & Funding Division and participate in executive decision-making and leading of
division and SBUs:

Effective PM

Enhance performance culture in Division and SBUs by successfully implementing the enhancements of the ABCC Star
Performance Management Project:

Long-term strategic objectives

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Financial
Mngmnt

Effectively manage and monitor all activities that may have a financial impact on the IDC:

Ensure timely and accurate budgeting and financial reporting on all the IDCs financial matters, including the subsidiaries

Enhance financial reporting functionality at SBU level to include Profit & Loss and Balance Sheet reports

There is adherence to the PFMA and other regulatory reporting requirements

Company and external auditors are satisfied that proper treatment of transactions were made (including tax)

Strategic
Initiatives

Ensure the ABCs ability to fund all financing activities through effective utilisation of cash resources (including borrowings) as
determined by its mandate through provision of loan finances, leased buildings, suspensive sales, plant leases,
guarantees and the provision of ordinary preference share capital
ABCs Credit Rating

Ensure that the Moodys rating of the ABC, to be obtained by June 2003, is at least maintained or improved to ensure IDC access to
competitive funding
Liquidity

Establish and implement programs to protect the IDCs capital in place through management and realisation of the Mature Holdings
to enable the Corporation to remain within its limit, and to ensure a ready income stream, and a debt: equity ratio below 60%
Attractive Longer term funding

Enable IDC access to attractive priced longer term funding by developing and maintaining relationships with a number of
international development finance institutions, including European Investment Bank, DEG, Proparco, and Japan Bank for
international Co-operation relationships with leading DFIs.

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ROMY FELIX HEAD HRD

Example of Individual Target Setting

Step 3: Set Measurable Targets for Individuals
Department
Programme

Personal development needs and

aspirations

Team objectives

Individual objectives

Objectives

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Target
Final

Grow net new money excluding market growth

by the end of Q4 2001

Improve client satisfaction feedback by setting

up an appropriate survey by Q3 2001
Improve capabilities in client service by
attending course by end Q4 2001

10%

Result

Self

Manager

Weighting Assess
% 15

Assess

15

1-5

6%

40%

Survey
set up

40%

Attended

20%

ROMY FELIX HEAD HRD

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Parameter

Performance Standard

Measurement

Weight

Executive Role

Represent Finance& Funding and provide strategic input and

value add at Board, EXCO, Board Committee Meetings,
External Boards, Audit and Merit Committee Meetings, and
facilitate the implementation of Executive/Board decisions.

Divisional Merit Committee Evaluation

20%

Divisional Leadership

Effectively provide leadership and guidance to SBU Heads in

policy and operations, and implementation of strategy and
business plans and participate in executive decisionmaking

Subordinates Evaluation

20%

Effective
Performance
Management

Enhance performance culture in Service Sector Division and

SBUs by successfully implementing the enhancements of
the IDC Star Performance Management Project by June
2003.

VP Human Resources Evaluation

20%

Financials and
Compliance

Ensure accurate and timely quarterly, 6 monthly, and annual

budgeting and reporting

Chairman of Board Audit Committee

Evaluation

10%

ATG and EXIM

Ensure Divisions contribution to successful roll-out of ATG and

successful implementation of EXIM project by June 2003

CIO Evaluation

10%

Corporate Support

Effectively manage the corporate support function, including

maintenance of buildings and infrastructure, Infrastructure,
secretarial division, dematerialisation of shares

Sample VP and SBU Head satisfaction

survey

10%

Moodys Rating

Successfully manage the IDCs application in obtaining a Moody

credit rating by June 2003

CEO Evaluation

10%

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100%

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ROMY FELIX HEAD HRD

Thank you

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ROMY FELIX HEAD HRD