Title: What complexity can the employee grow to manage in terms
1Performance and Human Capital Management The Key
to Any Successful Organisation
- Free State Province Senior Management Conference
- 12 August 2005
2Content
- Performance Management Context
- The non-negotiables for performance management
- SABs Integrated Management Process (IMP) How we
do business - The Performance Management Framework
- Self-Management Practices
- Characteristics of High Performance Cultures
3The Indisputable Facts
- A significant impediment to driving business
results through performance management is the
lack of linking a performance management system
to business goals - Employees must understand the performance
standards and the system - They must be held accountable for things that
matter - They must received deserved performance ratings
- There must be fairness
- The system must be credible
- A channel for grievances must exist
- The system must be linked to development plans
- Reviews must be conducted
- Goals must be cascaded AND the voice of the
customer must be heard - A High Performance Culture must exist
4IMP Umbrella
Performance Management
Communication
Business Planning
Vision Mission Values
Goal setting (CFG) OTL (the way we
communicate) Management Practices Self-management
practices Managing Performance One-on-ones Perfor
mance reviews Coaching Career development
discussion
Big Picture
Individual/ Team
MOM Annual Report Business Plan
- Supporting daily performance of all individuals
- Stimulating quality and continuous IMProvement
- Creating a climate for successful performance
5 SABs Performance Management Framework
Business Goal-Setting
Business Goal-Setting
Goal-Setting
On-The-Level Communication
Appraisal Ongoing feedback
Reward
6Goal Content Example
GOAL Growth
DIRECTIVES/ NEEDS
OUTPUT
QUALITY REQUIREMENTS
INDICATORS
Pricing Strategy Enhanced
Volume Growth
- Pricing scorecard target exceeded (meeting what
standard or guidelines)
Quality Enhancement initiated
- Improved taste
- Water treatment
- What features
Product Quality
7Performance Ratings
8Self Management Practices
- All employees should
- Discover larger goals and priorities that affect
the job - Set and get ongoing agreement to performance
goals - Find out customer requirements and levels of
satisfaction - Perform in a successful manner daily
- Continuously improve
- Enjoy and express a positive view of his/her job
- Support the team
- Initiate regular performance discussions
- Conduct and communicate self-reviews of
performance - Develop themselves
9Not in a High Performance Culture..
10And definitely not at SAB..
11Characteristics of a High Performance Culture
- Risk Taking
- Internal Communication
- Flexibility
- Innovation
- New ways around old problems or improvement of
methods - Future orientation
- Co-worker involvement
- Co-worker cohesion
- Diffuse decision-making
- Differentiate performers from non-performers and
reward them accordingly
12- But that is all in vain if the Human Capital is
not managed
Strategic People Resourcing at SAB
13 14The purpose of Strategic People Resourcing is to
attract, retain and develop key talent in the
business..
15 The SAB SPR Model
PART III DATA CONSOLIDATION AND ANALYSIS
PART IV DATA USAGE
PART I DATA SOURCES/ COLLECTION
PART II DATA VERIFICATION
- People Balance Sheet
- HEADCOUNT
- COVER RATIOS
- PERFORMANCE/
- POTENTIAL ANALYSIS
- LABOUR TURNOVER
- RISK/RETENTION
- EQUITY ANALYSIS
- SKILLS ANALYSIS
RECRUITMENT TALENT ACQUISITION TALENT
MANGEMENT FORECASTING RETENTION DEVELOPMENT
CAREER DEVELOPMENT DISCUSSION
- STRATEGIC PEOPLE
- REVIEW
- Line Manager
- General Manager
- Department Head
- Functional Director
- MD
ORGANISATION
PSYCHOMETRIC ASSESSMENT
PERFORMANCE REVIEW
CAREER DEVELOPMENT INTERVIEW
STRENGTHS DEVELOPMENT NEEDS ASPIRATIONS CAREER
ADVICE
INDIVIDUAL
INDIVIDUAL DEVELOPMENT PLAN (IDP)
COMPETENCY ASSESSMENT
ONE ON ONE REVIEWS
feedback
16People Balance Sheet
- STRATEGIC RESOURCING
- Headcount / equity headcount
- Turnover statistics
- Cover ratios/succession
- Key skills shortages Skills development
- Retention issues
- Performance/Potential grid
- Trainees and bursars
- Vacancies
- Rate of appointment internal appointments,
external appointments Promotions/ grade changes - Training Development planned
- Performance management
- HIV stats tracked
- INDUSTRIAL RELATIONS CLIMATE
- Conflict resolution
- Workdays lost due to Industrial action
- Absenteeism
- Retrenchment
- ORGANISATIONAL EFFECTIVENESS
- Survey results
- IMP renewal plan
Key Focus Areas From all the information key
focus areas are derived
17e.g. Analysis that combines SPR data and TD
18When assessing Potential against the 4 factors we
use 3 key tools/data sources
Potential
b. Psychometric assessment data
a. Tacit knowledge data (gut feel)
When talking about potential the 4 underpinning
factors are Future contribution, Marketability,
Pace of progression and Leadership Attributes to
do this you review (a,b and c)
Based on the psychometric assessment battery
which gives us information about Personality,
cognition and judgement /decision making, their
future contribution, marketability, pace of
progression and leadership attributes in the
organisation is..
Based on your knowledge of this person, your
opinion on their future contribution,
marketability, pace of progression and leadership
attributes in the organisation is..
c. Historical data
Based on career history, achievements and track
record, their future contribution, marketability,
pace of progression and leadership attributes in
the organisation is..
19When assessing Potential we evaluate 4 factors
using 3 key tools/data sources
When considering potential the 4 underpinning
factors are 1 Future contribution What
complexity can the employee grow to manage in
terms of Strategy, execution, people management
and leadership, and technical expertise? What
level of uncertainty/ ambiguity can she/he manage
comfortably? What additional roles/positions
can she/he move into? 2 Marketability
Demonstrated technical competence Experience
/Achievements Career history 3 Pace of
Progression Pace of growth relative to his/her
peers Track record 4 Leadership
Attributes Demonstrated leadership attributes
competencies
a. Tacit knowledge data (gut feel)
b.Psychometric assessment data
With these 4 factors in mind, use the 3 tools
/data sources (tacit knowledge, psychometrics and
historical data) to evaluate the individuals
potential for growth in the organisation
c. Historical data
20The kinds of questions that will be asked in the
SP Review to calibrate accurate potential ratings
and to identify leadership capability Based on
your (tacit) knowledge of this person, their
background history and psychometrics
- 1 Future Contribution
- What complexity can the employee grow to manage
in terms of strategy and or execution? Can s/he
lead the development of a 5 year strategy? - What makes the current role complex, can s/he
take on more complex roles? (What/when is their
next move/s?) - What will this person be doing 5 years and in
10 years from now? (What additional
roles/positions can she/he move into?) - Does s/he have good self management practices/
management practices? - Does s/he represent the espoused values of the
company? - How does s/he challenge?
- 2 Pace of Growth
- What are the individuals strengths, what are
their development needs? - How has s/he improved and developed against
his/her development plan? - In what ways does the manager get involved in
his/her work? - What is the employees pace of growth relative
to his/her peers? - In what ways has/ has this person not met or
exceeded your expectations? - What is the gap between the future role and the
persons current competency? - Can you take developmental risk with this person?
- To what extent would s/he need managerial support
in a new role?"
21Questions continued
- 3 Marketability
- Does s/he have exceptional
- functional/technical skills?
- Leadership Attributes?
- Interpersonal skills/ ability to manage
diversity? - 4 Leadership Attributes
- Compared to other people in the same function,
does this person lead in terms of understanding
and expertise? - Is this person effective across a broad spectrum
of work? - Is this person able to collaborate and form
working partnerships with others (internal and
external)? - Is this person energising, making change feel
like progress? - Does this person focus on continuous
communication, making people feel connected and
valued? - Does this person contribute to our corporate
brand, in his/her actions both in the workplace
and outside the workplace - Does the person portray a positive outlook?
- Does s/he actively grow develop people?
- Does s/he effectively manage a diverse group of
people? - Is this person intuitive about what might happen
next, and is able to move easily from how things
are now, to ideas of how they could be different
in future? - Does s/he drive and manage performance
effectively (good/and poor performers)? - Is passion embodied in all that he/she does but
without ever compromising?
22performance and potential grid
Potential
23Retention is however not at all costs.