Performance Planning

Overview

Definition and Purposes of Strategic Planning

Linking Performance Management to the Strategic Plan

Strategic Planning Developing Strategic Plans at the Unit Level Job Descriptions Individual and Team Performance

Performance Planning : Definition

Process of

communication between employer and employee intended to create agreement about what the employee is to do, how well he or she needs to do it , and why, when and how success is to be determined (Bacal, 2004).

Strategic Planning: Definition

Process that involves describing the organizations destination, assessing the barriers that stand in the way of that destination and selecting approaches for moving forward (Aguinis, 2014). Structured scheme for effectively achieving a specific goal or objective that addresses the long-term direction of the organization as a whole and identifying the best approach for accomplishing the goals ( Johnson, 1992; Kumpf, 2004). Process that transitions organizations from their present state to a future direction (Keller,1990)

Process of decision making that identifies basic values and needs to be addressed by the firm, establishes the patterns of goals and objectives to be achieved, and sets important guidelines and procedures for achieving them. (Moyer, 1982)

Anticipating what will likely happen in the future and developing strategic plans to take advantage of opportunities that would help achieve success and avoid problems (Osgood, 1980)

Strategic Planning: Goal

Allocate resources to provide organization

with competitive advantage

Consider as the blueprint

Strategic Planning: Purposes

Helps to define the organizations identity

Provide clearer sense of who they are and what their purposes are

Helps organizations prepare the future

Clarify the desired destination.

Strategic Planning: Purposes

Analyze the environment

Enhances the ability to adapt and anticipate in any future environmental changes.

Provide focus and allows better allocation of resources

Well allocation of resources will stimulate growth and improve profitability.

Strategic Planning: Purposes

Produces an organizational culture of cooperation

Once common set of goals is created, culture of cooperation can be develop.

Allows for the consideration of new options and opportunities

Be a good corporate eye-opener.

Strategic Planning: Purposes

Guidance to the employees

Provides information to direct daily activities.

Link to Performance Management

Example of Performance Management Allignment With Strategic Plan (Key Bank,Utah)

Succesful Strategic Plan : Steps

Conduct environmental analysis
Identified the internal and external parameters of the environment in which our organization operates.

Creation of organizational mission

What the organization is all about

Creation of organizational vision

Show direction where organization intends to be in the long term or in the future.

Succesful Strategic Plan : Steps

Setting goals
show what organization intends to do in the short term. Creation of strategies Descriptions of game plans or what are the steps or procedures taken to reach the stated objectives.

Strategic Planning : Overview

1. 2. 3. 4. 5.

Environmental Analysis Mission Vision Goals Strategies

Environmental Analysis

Identifies external and internal trends

To understand broad industry issues To make decisions using big picture context

External trends
Opportunities:

environmental characteristics that can help the organization succeed

Threats:

environmental characteristics that can prevent the organization from being successful

External trends Factors to Consider

Economic - Economic recession.

Political/Legal - Political changes. Social - Aging workforce Technological - Introduction of new technology

Competitors - Competitors new products and strategies. Customers - Changes in want and trends. Suppliers - Relationship with suppliers.

Internal trends
Strengths:

internal characteristics that the organization can use for its advantage internal characteristics that can hinder the success of the organization

Weaknesses:

Internal trends Factors to Consider

Organizational structure - Current structure ensure

effective communication Organizational culture - Norms & values portray by organization members encourage / hinder innovation Politics - Various units competing for resources or willing to collaborate Processes - Supply chain working properly Size - Organization size / capacity

Gap Analysis

Analyzes:
External environment
(opportunities and threats)

Internal environment
(strengths and weaknesses)

Gap analysis determines:

Opportunity + Strength =

Leverage (Advantage)

Opportunity + Weakness =
Threat +

Constraint

Strength = Vulnerability
= Problem

Threat + Weakness

Strategic Planning for the Organization

Environmental and Gap Analyses provide information for organizations to decide:

Who they are What they do

Mission
A good

mission statement answers:

Why does the organization exist? What is the scope of the organizations activities? Who are the customers served? What are the products or services offered?

Thorough Mission Statement contains:

Information on organizations

Basic product/service to be offered Primary market/customer groups Unique benefits and advantages of product/services

Technology to be used
Concern for survival through growth and profitability

Vision
Statement of

future aspirations that describe what the organization would like to become in the future

A Good Vision Statement:

8 Characteristics
1.
2.

Brief - Employees can easily remember

Verifiable - Able to stand the reality test.

3.
4.

Bound by a Timeline - Specifies timeline

Current - Should be updated on an ongoing basis

A Good Vision Statement:

8 Characteristics (continued)
Focused - narrow down the important aspects that contribute to organization future success 5. Understandable - Written in clear and straightforward manner 5. Inspiring - Motivate and make employees feel good. 6. A stretch

Goals : Definition
Outcome statements that dene what an

organization is trying to accomplish.

Purposes for Setting Goals

Formalize expected achievements Provide motivation Provide tangible targets Provide basis for good decisions

Provide basis for performance measurement

Strategies

Create strategies or Game Plans or procedures to address issues of:

Growth Survival Turnaround Stability

Innovation
Leadership

How the HR Function contributes:

Communicate knowledge of Provide knowledge of

strategic plan

KSAs needed for strategy

implementation
Propose reward systems

Strategic Plans at the Unit Level

Organization Mission statement, Vision

statement, Goals, and Strategies

Must clearly align with And be congruent with
Every Unit Mission statement, Vision statement,

Goals, and Strategies

Job Descriptions
Tasks and

KSAs are congruent with Organization and Unit strategic plans

Activities described support mission and vision

of Organization and Unit

Individual and Team Performance

Organization and Unit mission, vision, goals lead to

Performance management system, which

Motivates employees Aligns development plans with organization priorities

Building Support

All participants in the system need to understand their role play and understand where the organization stands and where it needs to go. High degree of participation and feedback was a critical factor in the success of the performance management system.

BALANCE SCORECARD

Developed in the early 1990s by two guys at the Harvard Business School: Robert Kaplan and David Norton BSC is a management system not a measurement system The BSC approach measures performance from four different perspectives that together encourage managers to look beyond traditional financial measures. The four perspectives of performance are: (1) learning and growth (concerned with actions to improve and create value); (2) internal processes (concerned with what the firm must excel at); (3) customer (considers how the firm looks to customers); and (4) financial (considers how the firm looks to shareholders).

Robert & Kaplan BSC Model 1992

Key Performance Indicator

Part of Balanced Scorecard.

Measure how well the organisation performs against predefined goals and targets.
Leading indicators -measure activities that have a significant effect on future performance Lagging indicators - such as most financial metrics, measure the output of past activity

KPI-Example 1

Example 2
Department of Transport Policy domain Objective Indicator Target
2008: 0 Road safety To minimise fatalities in traffic incidents Number of fatalities 2009: 0 2010: 0

Example 3
Dept of Art, Sport & Tourism Policy domain Objective
Indicator Target
Sport To promote the national sporting culture
The number of medals won in Olympic, World & European Championships 2008: 3 2009: 6 2010: 12

Conclusion
The employee should :

Know the most important job responsibilities that he or she needs to complete. Know when he or she must complete the job task. Know how those job responsibilities relate to the goals of the work unit and the company. Know how well or to what level he or she need to perform the job activities. Know the criteria that will be used to review performance during and at the end of the review period. Have the sense that the manager is more interested in creating success than in finding fault later. Feel that the manager is willing to help employee. Have a sense that he or she and the manager are on the same wavelength and share similar goals and concerns.

Conclusion
Employer/ Manager should :

Better understand the employees day to day job responsibilities.

Have a clear idea of how carrying out those responsibilities contributes to to the work unit.

Have dealt with how he or she can help the employee succeed and be committed by any actions required to help the employee.
Have some documentation of the performance planning process and decisions made

THANK YOU