Talent Management Kpi

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					Strategic Use of Human Capital
    Management Practices
          SEEP Global Network Summit
               5 November 2008
Workshop Objectives

• By the end of the workshop, you should
   – The strategic imperative of aligning HCM
     practices with business strategy
   – How MF networks and other organizations are
     using HCM strategically
   – What you can do in your own organization to
     strengthen HCM practices and support strategy
Why Begin With Strategy?

• Strategy and execution are two of the most
  critical components of organizational success
• When people understand how they personally
  contribute to strategy, they choose to bring
  their whole selves to work—both minds and
Develop Your Strategy

• Work with your senior team to clarify your
• Make sure it differentiates you
• Keep it simple
• Communicate it to all your stakeholders,
  every chance you get
Where To Start?

• Communicate your strategy
   – Drive this understanding through your
• Evaluate your current HCM practices
   – Do they support or hinder your strategy?
   – Identify those that will have the biggest impact
• Assess your culture
   – Does your leadership team believe HCM is a
   – Does your culture support your brand and
Link HCM To Strategy

• Process steps:
  – Define your overall strategy
  – Assess current HCM practices
  – Assess current culture
  – Identify the gaps
  – Develop plan to address the gaps
  – Redesign critical HCM practices
  – Implement
Elements of HCM

 •   HR Planning
 •   Recruitment and Selection
 •   Learning & Development
 •   Performance Planning & Management
 •   Retention & Engagement
 •   Rewards
 •   Culture
                             Planning &
      Learning &            Management
     Development                             Retention &

                  Human Capital
Recruitment        Management
& Selection
                     System                      Rewards

              HR Planning
Critical HCM Practices

• Your organization must identify those
  practices critical to success, to:
   – Ensure a strong foundation
   – Allocate the right resources
• Determine the design of HCM practices
  necessary to drive strategy
• Each HCM practice must support the others;
  it’s a system
A new remuneration system
       based on KPI

 By Halida Khusainova,
 Executive Director, RMC
- is a key efficiency indicator
  showing how well the
  company/employee is achieving
  current and strategic goals or
  fulfilling tasks that are critical
  for the current and future success
  of your company…
Key principles of remuneration
     system based on KPI

 • Fairness
 • Transparency
             What is KPI?

• It is just figures, percents, points, etc.
  to monitor the activity, quality and
  performance results of employees and
      KPI key parameters:

• Name
• Target function (minimization, maximization,
  maintenance of the set value or range of
• Criteria
• Type of parameter
• Target and actual values, etc.
   KPI important attribute
Each KPI shall “belong” to a certain
employee (or group) who is
responsible for specific results and
who knows what to do in case the
parameter is lowering.
Without this responsibility any
measurements are useless.
         KPI development:
Strategic thinking

            Strategic goals

         KPI Examples• ROI
                     • Income

     Finance         • Profit
                     • Cash Flow
                     • Quality
                     • Prices
     Clients         • Relations
                     • Service
Internal processes   • Quality Control
                     • Personnel
      T&D            • Knowledge
                     • Best practices
            Next steps:
• Assessment process
• Adjustment of KPIs due to new
  Strategic plan
• Assessment process on a
  monthly/quarterly basis
Focusing on Human Capital
Development and Retention Strategies

    By Jhale Hajiyeva, Executive Director
    Azerbaijan Micro-finance Association (AMFA)

Laying a Sound Foundation for Growth

   AMFA Is In the Growth Stage

                          AMFA’s Life Cycle Curve
             Introduction        Growth             Maturity          Decline

                                                       2008 Strategy: Sustainability

          2007 Strategy                             2007 Strategy: Gain Credibility
                                                    & Visibility While Building a


Challenges and Strategy

  2007 Challenges             2008 Strategic Plan

                              Retention -- foundation for
Doubled staff from 3 to 6     AMFA’s sustainability
Turnover of over 45%          Performance metrics -- to
                              ensure employees are efficient
Additional training needed    and effective
– to enhance already strong
and skilled employees         Incentive structure – to help
                              develop and motivate

                              Detailed job descriptions -- to
                              ensure efficient and optimized
Why Focus on Staff Performance?

            AMFA is strong, but needs to develop:

                •Financial management
                •Leverage visibility and credibility to connect investors to
Board of        network members
Directors       •Segmentation should remain focused on larger banks, and a
Feedback        tiered membership model should be introduced
                •Employee growth and roles/responsibilities must be

Focus on Talent Management and Retention

   AMFA Efforts                        HR Company

• Overview of generated            • Analyse:
  income from fee based                • Organisational structure
  services                             • Job descriptions
                                       • HR policies/procedures
                                       • Performance appraisal form
• Meeting with in-country              • Staff KPIs
  HR service providers
                                   • Survey staff, Board and Audit
• Development of concept             Committee
  paper.                           • Report outcomes/recommendations
• Approached Eurasia               • Develop incentive plan structure
  Foundation, ICCO,                  based on external survey findings
  USAID, Oxfam GB,
  Norwegian Embassy                • Recommend HR management plan
    Strategic Planning Is The Key

AMFA strategy development was driven by:

•    Flexibility
•    Sustainability
•    Realistic and actionable
•    All Board of Directors’ comments were fully integrated
•    Leveraged prior workgroups
•    An annual exercise
•    Breaking even (revenues = expenses) is not a sustainable strategy

Are You There Yet?

• Are your HCM practices hard-wired to your
  overall strategy?
• Who’s first in your industry?
• Where are you?
Questions To Consider

 Within the context of your strategy:

   – Consider 1-2 HCM practices that are critical
     to strategy attainment
   – Do these need to be redesigned?
     • Why?
     • Where will you start?

• Keys to success
  – Communicate the strategy
  – Link individual efforts to it
  – Align HCM practices with it
Thank you!

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