Performance Management System
Managing Performance
©KPGI-OCT04 1
Purpose of this Presentation
To understand the importance and need for goal setting and measuring performance. To know the system of KRA and KPI.
To know the skills for setting performance enhancing targets.
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Benefits of Key Result Area:
Personal improvement effectively.
by
using
goal
setting
Will be a better manager –
performance enhancing.
have ability to write your own KRA & KPI so that they are
Will be a better BOSS –
have ability to guide your subordinates to do the same for
themselves and improve their effectiveness.
Well defined KRAs and KPIs will lead to all round 3 improvement in performance!
Performance at Work
Customer Requirement
Organisation Requirement
Meet Customer requirement
Job Requirement
Job Requirement
Job Requirement
Performance
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Goal Setting: Our Approach
We will use the KRA / KPI system for performance measurement. KEY : basic, most important, dominant. RESULT : outcome, output, consequence. AREA : part of, demarcated. PERFORMANCE : fulfillment; Completion. INDICATOR: signal; Measuring device.
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What is a Key Result Area (KRA)? In order to do our job (at any level or position) we will have a set of responsibilities. By executing our responsibilities we will be delivering certain results to the organisation. Questions? These results, mentioned in the order of their importance, will constitute our KRAs for the year. We should take the top 5 to 6 of these KRAs, which if delivered as planned will have a greater impact on the results.
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What are Key Performance Indicators (KPI) ?
Indicators that will help you in knowing how you are progressing in achieving results. Such indicators are called Key Performance Indicators. Indicators to measure progress.
Questions?
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Similarity between Business Language & Performance Management System
The HR language K.R.A K.P.I. Targets Marks assigned
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The Project Language
Description of Deliverables / Milestones
Unit of Measurement
Quantity of Deliverables / Milestones
Rate / Amount
Result Orientation More important than quantification, it is to think in terms of output (result) and not the input (process). Consider the following examples.
Secretary- for Spend specific Document filing amount of time on filing.
Ensure documents are Correctly filed within 24 hrs of receipt. Sales of ‘x’ Rupees or ‘Y’ volume or ‘Z’ %market share
Sales Rep.
Conduct min. 4 sales visit Per day in the next year
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Benefits of Goal Setting
Is one of the clearest communication of your expectations from yourself & subordinates. Is an effective tool for delegation. It is very useful for driving organisation wide initiatives. For managers working under great work & time pressure, it makes life much easier. By intelligently including developmental targets, knowledge & skill of employees can be developed.
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Monitoring
Effectiveness of the entire exercise depends greatly on “feedback.” Feedback can be provided by the manager or by self. Creating templates/ formats for tracking performance is highly effective. Use the formats developed for goal setting to track progress and give/receive feedback.
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Three Step Success Formula.
Step 1: have a definite, clear written goal. Step 2: have a plan to execute and measure it. Step 3: read 1 & 2 above everyday!
From: YOU CAN WIN by Shiv Khera.
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Method of Measurement
Cost– reduce cost to x, within budget. Speed-- operate at X speed, each time in x hours. Deadlines-- in x months, by n date every month. Number of mistakes– reduce to numbers or y numbers per task. Knowledge – as per some test. Skill level – as observed by expert, demonstrated to expert.
Amount of supervision – job done by himself.
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Sample -Objective
Example 1: You are responsible for Tunnel Excavation of 2000 meters length in the first 7 months of the year and for concrete lining of 500 meters length of the same tunnel in the later part of the year. This is how you your KRA sheet would look: KEY PERFORMANCE INDICATORS QUANTITY NO. PERIOD MARKS FROM Jan 2008 Jan 2008 TO July 2008 Dec 2008
KEY RESULT AREA
UNIT Questions? CUM
Tunnel Excavation
Excavation volume
2000
30
Concrete Lining
Length of concrete lining
Meters
500
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Reinforcement quantity
MT
200
Jan 2008
Dec 2008
10
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Some Quotes
The difference between a dream and a goal is the written word. You need a firm goal and a flexible plan to succeed. What ever the mind can conceive and believe, it can achieve. It is more important to know where you are going, than to reach there quickly. Big goals get big results, no goals get no results or someone else’s results!
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Some More Quotes
More men fail through lack of purpose than lack of talent.
Obstacles are those frightful things you see when you take your eyes off your goal.
A thought which does not result in action is nothing much, and an action which does not proceed from a thought is nothing at all.
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Thank You
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