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People Performance Potential Model

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People Performance Potential Model Powered By Docstoc
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                 Introduction
•   Customer is the King – Hmmm
•   Cars – Bentley
•   Sales Guy – Why cant they count
•   What has to change
•   Mckinsey Report
•   Our Prediction
    – Potential Prediction
    – Quantification of Performance
   People Performance Potential Model
                 Low                Potential   High
                                                       Super
                                                       stars
High
   Performance




Low

                       Exit/Outplacement
             Why ELTV?

• Nearly 85% of a company’s assets are
  related to intangible capital
• Skills and know-how the Assets
• Increase competence and profits
• Retention vis a vis Turnover costs
                Advantage
•   Consistent Relationships with Customer
•   Chance of Automation
•   Network Effects
•   Use Mathematical models for prediction
•   Reduce chances of Bias
•   Quantify Mergers and Acquisitions
    New Performance Metrics: Profit per
               employee
•   Companies today focus mainly on ROC
    rather than returns by employees
•   They gauge performance using internal
    financial results as a measure
•   Real engines of wealth creation have to
    be acknowledged
•   Companies create wealth by converting
    these raw intangibles into products and
    services
Profit Per Employee
    Why is it a good measure
•   Good Proxy for Earnings on intangibles
•   Talent is a scarce resource; capital isn’t
•   It requires no tweaking with accounting
    conventions
•   PPE is a conservative-output based
    method
•   Values employees as capital to the
    company
               Limitation
• Sporadic Relationship
• Unable to Quantify Few Processes\
• Workforce as Financially Quantifiable
  Asset?
• Referral Activity quantified
• Huge Resistance amidst employees
                 Conclusion
•   Pros and Cons present
•   Subjectivity coexistent with Objectivity
•   Responsibility Center
•   HPWS
Thank You

				
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posted:2/17/2010
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