Kra 2
description
Transcript of Kra 2
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Lack of Goal Congruency
Individual’s Needs/Goals
Company or Departmental Needs/Goals
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Goal Congruency
Individual’s Needs/Goals
Company or Departmental Needs/Goals
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Levels of Organizational Control
Core Control
The Environment
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Elements of the Performance Management System
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Elements of Core Control Systems
• Key Result Areas (From corporate or department plans or individual role descriptions)
• Objectives (From corporate or department plans or individual role descriptions)
• Goals (From corporate, department, or individual plans)
• Measurement
• Progress Review
• Performance Evaluation
• Rewards
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Key Result Areas
• Areas of performance which are essential to the company’s, department’s or individual position-holder’s success.
• Nine KRAs is considered the maximum number
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Objectives
• Broad statements of what needs to be in achieved in each Key Result Area.
• For the company/department, objectives define “strategy” – results to be achieved over the longer term.
• For position-holders, objectives/activities define what needs to be achieved within each KRA.
• Not changed unless the strategy or structure of the organization changes.
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Goals
• Specific, measurable, time-dated performance targets to be achieved. Each objective will have one or more goals.
• Requirements for effective goals:– Limited in number– Realistic; something that can be attained– Stated in measurable terms– Expectation of success should not be 100%
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SMART Goals
S Specific Outcome
M Measurable
A Accountable and Achievable
R Results-Oriented and Realistic
T Time-Dated
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Performance Measures
• Methods and procedures used to evaluate performance
• Guidelines include:– A preference for objective tests
– If subjective means are used, several different measurements are suggested
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Measurement Methods
• Profit Measurement
• Monetary Measurement
• Non-monetary Measurement– Ratio: Numbers indicate the actual amounts of the
property being measured. Has an empirically meaningful 0.
– Interval: Numbers have quantitative significance – they represent distances between objects. The difference between a score of 8 and a score of 10 is the same as the difference between a score of 2 and 4.
– Ordinal: Numbers signify rank order, but have no arithmetic significance.
– Nominal: Numbers are “labels” intended for classification.
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Progress Review: Periodic Review of Progress Made Toward Goals
Regular, periodic feedback to each member of a manager’s team on performance against goals, tasks assigned, and on-going responsibilities.
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Performance Evaluation
A formal process of evaluation and feedback (based on established goals) from which adjustments in an individual employee’s performance can be made.
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Rewards
• Positive reinforcers for accomplishing appropriate, goal-directed behavior.
• Rewards need to be valued by people.
• Something not desired does not constitute a reward.
• Types of rewards– Intrinsic
– Extrinsic
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The Performance Management System
Strategy/Role
Description
• KRAs• Objectives
Results
PerformanceEvaluation/Appraisal
Measurement SystemRewards
Goals Behavior
Progress Review/
Feedback
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Operationalizing the Performance Management System – Individual Level
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What is a Key Result Area-Based Role Description?
• Designed to support corporate strategy by identifying specific areas where a position contributes to the achievement of the organization’s mission.
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MISSIONSTATEMENT
KEY RESULTAREAS
OBJECTIVES
GOALS
ACTIONSTEPS
MISSIONSTATEMENT
KEY RESULTAREAS
OBJECTIVES
GOALS
ACTIONSTEPS
MISSIONSTATEMENT
KEY RESULTAREAS
OBJECTIVES/ACTIVITIES
GOALS
CALENDAREDACTION STEPS
MISSIONSTATEMENT
KEY RESULTAREAS
OBJECTIVES
GOALS
ACTIONSTEPS
Organization BusinessUnit Department Individual/
Manager
Strategic Planning Waterfall
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What is a Key Result Area-Based Role Description?
• Communicates the dimensions of a position to current and potential holders of that position, as well as others within the organization.
• A guide for individual behavior.
• A tool that managers can use as input for hiring, training, and day-to-day supervision.
• Designed to support corporate strategy by identifying specific areas where a position contributes to the achievement of the organization’s mission.
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Role Description
Key Result Areas
Objectives/Activities
Goals
Action Steps
MissionBroad statement of why the position exists.
Categories of activities on which the position holder should focus to maximize success.
Broad statements of what should be focused upon in each category.
Results to be achieved within the next 12 months within each KRA.
Calendared activities to achieve each objective.
Position-Specific
Person-Specific
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What are the Components of the KRA Role Description?
• Date
• Department
• Title
• Mission
• Key Result Areas
• Time Allocations
• Objectives/Activities
• Position Requirements
• Authority
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Date, Department, Title
• When was the role description created or last updated?
• Where in the organization does this position reside?
• What do we call this position?
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Mission
• Why does this position exist in our organization?
• What is its basic purpose?
• How does it support the organization’s mission?
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Sample Mission Statement
Director of Marketing
To develop, implement, monitor and evaluate strategic marketing plans that enable our firm to profitably capture a dominant share of the market. To effectively and efficiently utilize the resources of the marketing team in meeting or exceeding customer requirements.
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Sample Mission Statement
Executive Assistant
To ensure that the executive’s needs are met in a smooth and timely manner. To serve as the executive’s liaison with customers and staff.
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What is a “Key Result Area”?
• An area where performance is critical to success.
• A “category” of activities.
• Expressed in one, two, or three words (e.g., People Development, Manufacturing Capability, Planning).
• Used in planning at the corporate, department, and individual level.
• There should be 5 to 9 Key Result Areas.
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Example KRAs
• Financial Performance
• Strategic Planning
• Organizational Development
• Shareholder and Public Relations
• Corporate Culture Management
• Board Relations
• Staff Development and Supervision
Company President
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Role Description Worksheet
KEY RESULT AREAS
1.2.3.4.5.6.7.
Time Utilization
Now Goal
Position Requirements:
Education/Experience:
Skills/Knowledge/Ability:
Authority:
Date:Department:Title:Mission:
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Objectives/Activities
• For each KRA, what are the specific activities that must be completed to fulfill the performance requirements of that area?
• Specific to the position vs. the individual.
• Ongoing responsibilities vs. time-dated goals.
• Expressed as an action (starts with a present tense action verb).
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Present Tense Action Verbs
• Oversees
• Analyzes
• Approves
• Authorizes
• Controls
• Coordinates
• Creates
• Designs
• Develops
• Ensures
• Negotiates
• Schedules
• Plans
• Decides
• Inspires
• Motivates
• Writes
• Edits
• Purchases
• Sells
• Participates
• Trains
• Coaches
• Hires
• Fires
• Serves
• Maintains
• Facilitates
• Initiates
• Implements
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Levels of Decision-Making
1. I have complete authority to decide and to act.
2. I have complete authority, but must notify someone else after I have decided.
3. I have complete authority, but must consult with someone else before I decide.
4. I need the prior approval of someone else before I decide.
5. Someone else must consult with me before deciding.
6. Someone else informs me of their decision.
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Example Objectives/Activities
• Word processes correspondence, manuscripts, reports and other documents.
• Transcribes CDs.
• Screens and handles telephone calls.
• Maintains filing system.
Administrative Support
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Example Individual Objectives/Activities
• Recruits, hires and fires direct reports
• Oversees the development and maintenance of role descriptions for direct reports
• Works with direct reports to establish their annual goals that support the corporate strategy
• Meets periodically with direct reports to review operations
• Monitors the performance of direct reports toward their annual goals
• Conducts annual formal performance reviews for direct reports
• Gives informal performance feedback periodically to direct reports
• Decides compensation for direct reports
• Coaches, develops and serves as a resource to direct reports
• Disciplines employees as appropriate
Supervision
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Role Description Worksheet
KEY RESULT AREA OBJECTIVES/ACTIVITIES1. _______________________ a. ______________________________
______________________________b. ______________________________
______________________________c. ______________________________
______________________________d. ______________________________
______________________________e. ______________________________
______________________________2. _______________________ a. ______________________________
______________________________b. ______________________________
______________________________c. ______________________________
______________________________d. ______________________________
______________________________e. ____________________________________________________________
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Sample Role Descriptions
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Example of a Company President Role Description
Date: August 2, 2013
Department: Corporate
Title: Company President
Mission: To profitably and effectively manage the company and to maintain the highest possible level of customer satisfaction.
Key Result Areas Time Utilization1. Profitability
15% 2. Staff Development/Management
10%3. Corporate Management 15%4. Planning
20%5. Corporate Culture Management 10%6. External and Public Relations 15%7. Organizational Development 10%8. Miscellaneous 5%
100%
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Example of a Company President Role Description
KEY RESULT AREAS OBJECTIVES/ACTIVITIES
1. Corporate Management a. Working with the senior management team, ensures that corporate performance is aligned with the company’s strategy.
b. Meets regularly with each senior manager to identify and resolve issues related to corporate performance.
2. Planning a. Leads the corporate strategic planning process.
b. Works with senior management to develop the corporate plan.c. Works with members of senior
management to evaluate performance and develop strategies for improving performance against the corporate plan.
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Goals, Performance Review, Performance Evaluation and
Rewards
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Strategies for Establishing Individual Performance Goals
• Link to the individual’s Key Result Areas
• Support of the company’s business unit’s plan.
• Consider the individual’s needs, goals, skills, abilities.
• Limit number – no more than 3 to 5 in each Key Result Area.
• Establish such that the individual responsible can exert control over their achievement.
• Record in writing on the Performance Appraisal Form or a “Goal Setting Form” so that they can be referred to regularly by the manager and the individual responsible for achieving them.
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Goal Setting Worksheet
5.
4.
3.
2.
1.
Support for Personal Goals
Support for Division/
Department Goals
GoalsKey
Result Area
Individual’s Name:___________ Position:_______________
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Performance Evaluation Form
Individual’s Name:___________ Position:_______________
Key Result Area Goals
Performance Achieved
1.
2.
3.
4.
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Exercise: What Do People Value?
RewardImportance in General
Importance to the People You
Supervise
Job security
Good wages
Interesting work
Sympathetic help on personal problems
Promotional growth in the organization
Feeling of being in on things
Full appreciation of work done
Personal loyalty to employees
Good working conditions
Tactful disciplining
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Sample Plan Page
KEY RESULT AREA: 1.0 Markets and ProductsObjective 1.1: Grow active buyer base at a rate consistent with overall sales growth per year.
Goals Prty Who When Status
1. Increase our active buyer base by 50% from 1/1/0x to 9/30/0x.
A BH 10/1/13
2. Identify and evaluate vehicles for growth beyond FY’0x.
A BH 9/30/13
3. Identify new strategies to support FY ‘0x growth.
C LM 6/30/13
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Operationalizing the Performance Management System – Company Level
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Key Result Areas for the Company
It is advisable to use the 6 levels of the Pyramid of Organizational Development + Financial Results:
- Markets - Operational Systems- Products - Management Systems- Resources - Culture - Financial Results (Fiscal Management)
Why?
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Pyramid of Organizational Development
Personnel:• Hiring• Compensation
Corporate Culture
Values Beliefs Norms
Management Systems
Planning OrganizationManagementDevelopment
Perf.Mgmt.
Operational Systems
Resources Management
Products & Services
Markets
Accounting:
• Billing• Payroll
Production:
•Shipping
Marketing:
• Selling
Financial Resources
Technological and Physical Resources
Human Resources
Develop Products (Services)
Define Market Segments and Niche
Business Foundation Business Definition Strategic Mission Core Strategy
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Sample Objectives – Company
KRA 1.0 Markets• Profitably grow our market share.
• Foster the best customer relationships in our industry.
Key Result Area 2.0 Resources• Achieve/maintain highly trained staff.• Minimize staff turnover.• Maintain physical environment with up-to-date
equipment, facilities, design, and ambiance that is both safe and regulatory agency compliant.
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Sample Goals
• Develop and begin production of two new internally generated product ideas that will result in total sales of $4 million by 12/31/13. [Peter]
• Earn revenues of $5 million by 12/31/13. [Paul]
• Open new accounts with average sales of $30,000 each by 12/31/13. [Mary]
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Sample Plan Page
KEY RESULT AREA: 1.0 Markets and ProductsObjective 1.1: Grow active buyer base at a rate consistent with overall sales growth per year.
Goals Prty Who When Status
1. Increase our active buyer base by 50% from 1/1/0x to 9/30/0x.
A BH 10/1/13
2. Identify and evaluate vehicles for growth beyond FY’0x.
A BH 9/30/13
3. Identify new strategies to support FY ‘0x growth.
C LM 6/30/13
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Performance Measurement: Corporate Scoreboard
Measure EvaluationGoalObjective
Key Result Area:
Overall Evaluation: _____
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KRAs Objectives Goals Measures Performance
Local Area Marketing/Sales Growth
Work with branch personnel to profitably achieve sales targets.
Achieve 200X Sales targets.
$$ Achieved$$ Achieved vs. budget
Staff Develop/Mgmt
Train Branch personnel in branch business development techniques.
80% of Branch personnel will meet Countrywide standards in business development by 12/31/0X.
Assessment checklist of business development standards.
Bringing It All Together: The Performance Scoreboard
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Making Planning Work
• Base your plan on the best available information.
• Involve other members of your team.
• Take time to plan.– At least a full day, once a year, to review/refine your strategy
and set annual Goals.– At least a ½ day each quarter to review/update your plan and
problem-solve.– At least 2 hours a week to individual time management –
schedule time in your calendar to work on Goals.
• Set realistic Goals.
• Hold people accountable for results.
• Celebrate and reward success.
• Don’t give up!– Remember that planning is like sausage AND– It is an invisible key to success!