SCENARIO 1

COMPANY A AND COMPAY B

Document Author: Floyd D’Souza

Agenda

Case Study Question

Assumptions

The Reverse Engineering Approach

Transition to Performance Framework

Appendix
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Case Study Question

Two big companies, Company A and Company B, having various diversified business
units, created a Joint Venture (AB) in 2010 to work together on several residential and
commercial construction projects and infrastructure development. The projects include
construction of high end mansions, malls, multipurpose high rise building, bridges,
roads and water canal.
 
AB has 712 employees. Most of the operations in AB are managed by Company B.
Recently, upon intervention, the parent Company A identified numerous issues in AB,
like cost overruns, process failures, operational inefficiencies, highly hierarchical
structures, disciplinary issues, over staffing, etc.
 
There is an APEX Council that reports to the Board of Directors which constitutes of
members from Company A and Company B, with majority being from the parent
Company.
 
As a newly hired HR Manager of Company A, you have been asked to take over HR
operations of AB and streamline its people, processes, structures and operations. What
would be your approach?
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Assumptions

• It is assumed that no goal setting initiatives neither an existing performance management system
is in place.
• Open lines of communication exist between both Joint Venture Partners Company AB.
• The need for a performance culture is widely understood and accepted at all levels.
• No weekly review or reporting forums are currently in place.
• Review and ”Appraisals” are carried out once the project is ended and more of ”you won” or
”you lost” discussion takes place.
• The existing environment is probably hostile, and lines of communication between top
management and operational employees are minimal.
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Research on general Performance Management

Practices
 70% of organizations are moving towards a model of regular conversations about performance and
development with the intention to change the focus to building the workforce your organization needs to be
competitive both today and years from now. (HBR - The Performance Management Revolution Oct. 2016)

 According to HBR - The Performance Management Revolution, change in traditional performance

management systems is due to three key reasons:
 People development focus - has led to managers giving frequent, informal check-ins rather than formal
reviews
 Need for agility – rapid innovation shifts focus from past to future needs that are continually changing

 Centrality of team work – shift has moved from individual accountability which makes it easier to
foster teamwork

 Ideally, conversations between managers and employees occur when projects finish, milestones
are reached, challenges pop up, and so forth – allowing people to solve problems in current
performance while also developing skills for the future. (HBR - The Performance Management Revolution Oct. 2016)
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The Reverse Engineering Approach

Short term Approach Long term Approach

Organization Analysis

Link every Department to Top Goals

What is the current approach to Performance

achieving these goals? Management
Create Performance Metrics for Framework
Every Department

Identify Performance Gaps

Linked to
Balanced
Ask Solution Oriented Questions Scorecard
Themes
Foster Game Changing Ideas

Create and Maintain Scorecards

“The Reverse Engineering Approach is proposed as a short term

approach to resolving current challenges with people, processes,
structures and operations . The approach will is set to flow into the
longer term Performance Management Framework that is to be
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Performance Management System

Key Considerations

 Encouragement focused • Acknowledges not just what an employee contributed but also how an employee contributed

• Two way communication

 Promotes development
• Employee initiated

 Future Focused • Development discussions to fuel performance

• Proactively ensuring future success

 Simple • Easy for staff to understand

• Easy to administer

 Integrated • Integrated into organizational culture

• Regular meetings

• Align rewards to performance – pay for performance hybrid

 Fuel individual and team • Connects achievement of ongoing employee goals to organizational strategy

performance • Utilized to drive and monitor performance and results

• Differentiates performance
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Organizational Analysis

Step 1: Conduct a high level analysis of the Organization AB, through the use of primary and
secondary sources, gauge the organization culture by analyzing common processes and having a
good read of the current policy manual.

• Formulate a general study of Current Market practices and study possible of benchmarks
• Incorporate a model or framework
• Create a conceptual framework tailored to the needs of the organization

“My significant years of full-time consulting has

led to me have access to numerous resources
and a reliable network to conduct a quick
benchmark and gain access to similar operating
businesses”
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Link Every Department to Top Goals

Step 2: As a new HR Manager have one on one meetings with the Department Heads
• Build a rapport
• Understand and discuss all departmental issues ranging from people, processes, structures
and operations.
• Work with the each department manager to identify the top 3 (three) departmental goals
and 2 (two) other important departmental objective and/or deliverables.

“This step is not the easiest to carry out because

the usual trend within organizations that have
performance issues, is unclear departmental
goals.

An organization which is running in different

directions can never achieve excellence and
never manage performance and maximize
results

Note: At this point the goals are merely a point of discussion, formalizing the goals will follow on later as part of the performance management process”
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What is the current approach to achieving these

goals?

Step 3: Gain a realistic perspective of past reality and current reality

• How well (or not well) has the departments performance history been?
• Gauge patterns in which the department has been moving and how and look for evidence
and data to support positive and negative historical outcomes.

“This step is not the outcome expected it is

merely a rearview image of the history of the
departments performance and the reality of
what went wrong”
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Create Performance Metrics for Every Department

Step 4:
• Job Descriptions and Job Profiles would have to be reviewed and enhanced with KPIs and
metrics.
• Every role in the organization ranging from the Office Attendant to the Leadership teams
need to have metrics in place.
• Some jobs are support oriented and quality oriented as opposed to quantity.
• Some departments existing to not directly improve company results but to support them
(Support functions).
• Every job however can be assigned a metric or a measureable performance output.
• The cohesive output of all roles within the department would create a targeted output.
• Formally Link Step 4 to Step 2 “the top organizational goals”.

“This takes a little while to develop, support from the line

managers is needed. However, with an organization of 712
would have in the range of 250± unique job roles that need to
be targeted for KPI (key performance indicators and metrics)”
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Identify Performance Gaps

Step 5:
• With the department head/line manager have a discussion on employee skill deficits
within the team.
• With a little structure offered by HR the Line Managers should be able to have one on one
meetings with all their team members to identify skills gaps and areas for improvement.

“In HR terms this step will create a reservoir of

Training Needs for Learning and Individual
Development plans to be initiated”
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Ask Solution Oriented Questions

Step 6:
• The Line Manager at this point during their one on one meetings should gather
information on areas for improvement and from their subordinates.
• This approach works well since, the subordinates are the sub-matter experts executing
processes and carrying out general operations.
• With the subordinate being asked the question, “How do you feel that you can contribute
to the overall Organizational goals”, the subordinate would endeavor formulating an
individual plan for him/herself.
• Line Managers at this point inspire and engage their direct reports into a improvement
thought zones.

“Communication between line manager and

subordinate is eminent and fosters a two-way
approach to solutions and charting the way
towards achieving goals”
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Foster Game Changing Ideas

Step 7:
• Steps closer to empowerment and employee engagement.
• The Employee is asked to suggest game changing ideas or radical changes that will
revamp the departments current level of performance.
• When employees get involved in this manner, it tends to also boost retention factors.
• Involvement is directly propionate to commitment.

“In the long term this step would transcend into

Ideation Schemes, however those are time
consuming to administer and requires a greater
degree of time and investment”
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Create and Maintain Scorecards

Step 8:
• All ideas, modes of operations, actions steps need to get on to a scorecards.
• Results can be maximized once a score is agreed on and in place.
• This step along with periodic meetings (weekly suggested when project deadlines
looming) will bring the entire department and organization on track.
• Scoreboards helps greatly in maximizing individual as well as team efforts.
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Further Course of Action

Course of Action:
• Propose a formal mechanism to measure performance (Balance Scorecard, Performance
Prism or pick one that best suits the organization culture).
• Clarify how performance ratings may be differentiated as per performance levels.
• Create a Competency Framework and that links into the Performance Management Process
(Behavioral Model)
• Clearly defined the calibration methodology.
• Increase emphasis on People Management to drive results and develop talent (enablers to
retention)
• Clearly define the process of managing underperformance
• Formulate guidelines for employees and managers for each phase of performance
management.
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Transition to a Performance Framework

Proposed Timeline (to be revised based on actual requirements)

Launch of End Year

Organizational Goal Setting
Appraisal

Submission of all Final

Functional/Departmental Goal Setting: Pre calibrated Ratings
Creation of Departmental Scorecards
Mid Year:
Calibration Meetings
Interim performance review
discussion
Goal setting for individual employees in Finalization and
discussion with immediate manager Communication of
Mid Year Review
Post calibrated
Ratings

Q4 Q1 Q2 Q3 Q4 Q1

Dec Jan Feb March April May June July Aug Sep Oct Nov Dec Jan Feb March

Scorecards and End-year

Calibration
Goal Setting Appraisal

Periodic Review of Results Mandatory for this model to work

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Appendix
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Performance Framework
Goal Setting Overview

Department
Sub Manager to
Level Goals
Organizatio Function/ Individual Review to
Aligned to
n Goals Manager Goals achieve
Organizatio
Level Goals consensus
nal Goals
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Balanced Scorecard

FINANCIAL
“To succeed Objectives Measures Targets Initiatives
financially,
how should we
appear to our
shareholders?”
Lagging
Periodic Review of
Periodic Review Measureable
of Measureable Scorecards
Scorecards

CUSTOMER INTERNAL BUSINESS PROCESS

“To achieve Objectives Measures Targets Initiatives “To satisfy our Objectives Measures Targets Initiatives
our vision, how Company AB’s shareholders
should we Vision and and customers,
appear to our
customers?” Leading Strategy what business
processes must
we excel at?”
Leading

Periodic Review of LEARNING AND GROWTH Periodic Review of

Measureable Objectives Measures Targets Initiatives Measureable
“To achieve
Scorecards our vision, how Scorecards
will we sustain
our ability to
change and Leading
improve?”
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Strategic Map
Key Considerations

Mission: Redevelop the AB as a sustainable and viable financial entity, providing a full array of technology-driven operations and
processes extended to the Hotel and the Property.
Vision: Transform the Company AB into a popular destination that contains state-of-the-art facilities, programs and services.
High Level
Improve
Goals Enhance Operations Operate Efficiently
Leasing and Retail Operations

Business Goals Redevelop

Focus on
Maximize Efficient
Increase Decrease
existing Improve Asset use of
the future Revenue Costs
concept Utilization Technology

Financial Revenue Growth Strategy Productivity Strategy

Perspective Improve
Increase
Increase
Enhance Customer Expand Revenue Asset
Cost Value/Square
Value Opportunities Utilisatio
Structure Feet
n

Internal Operational Excellence and Visitor Management Tenant Management

Quality Assurance
Innovative Processes and Regulatory
Perspective Management Processes
Efficient Administration of
Processes Processes
Processes
Processes that create Efficient Visitor Processes that improve
Processes that produce and Processes that enhance
new products and Support Processes. communities and the
deliver products and services tenant value
services (Avg/ Turnaround time) environment
(OpEx/Sq Feet)

Customer Customer Value Proposition

Perspective Value Entertainment Availability Selection Service Quality Partnership Brand

Service Attributes & Entertainment Offerings Image Relationship

Tenant New Tenant Visitor Satisfaction Tennant
Awareness Attraction
Retention Acquisition Index Satisfaction Index
Visitor Tenant Foster Loyalty Great Tenant Support

Learning & HR Technology

Knowledge and
Relationships

+ +
Growth Individual Knowledge, Systems
Perspective Knowledge Banks
Skills Skills, Abilities, Databases Partnerships & Relationships
Development Networks
Hire, Retain & Robust
Engage Intellectual Collaborative
Develop Top Support Innovate
Employees Property Partnerships
Talent Systems
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Performance Framework
Key Considerations

• GOAL SETTING: As a best practice, recommend a minimum of 4 Goals and a maximum of 10 Goals
to be assigned to each individual. Between 6 to 8 goals recommended.

• WEIGHTAGES: Weightages assigned to each Goal must not be less than 5% and not more than 30%.

• MANGING UNDER PERFORMANCE:

• At the time of Calibration all Department Heads must keep in mind that if an employee whose
final rating is agreed as below 3 will not be eligible for Bonus or increments.
• In addition the period during which the employee is on Performance Improvement Plan, he/ she
will not be eligible for recognition or any kind of awards. Post the PIP evaluation,
• If the employee has performed well, he may be eligible for such awards.
• If the employee fails to meet the expectations, he will face severe disciplinary action.
• In order to exit underperforming employees it is important that necessary disciplinary actions
have been documented previously in alignment with the labor law requirements.

• TIMELINES: In order to ensure all deadlines are met, employees must plan their leaves accordingly
around the Goal Setting & Appraisal periods.
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Performance Framework
Goal Setting Overview

Key Factors to keep in mind during Goal Setting, Goals must be:

Aligned to department goals

Aligned to key priorities of the department that are relevant to the role
Aligned to key roles and responsibilities of the role
New objectives that may require Innovation in work methods and/or technology
Avoid adding routine activities as a part of KPI’s
Should be challenging yet realistic. How do we define challenging?
• Goals which challenge our existing skills and require new skills to be developed in order to deliver
• Goals that are not easily achievable at employee’s last year’s level of performance
• Goals that require buy-in of various stakeholders across the organization
• Requires extensive coordination and cooperation from many different stakeholders

SMART: Specific, measurable, attainable, realistic and time bound. Ask some of these questions –
• What? – What do I need to achieve? What activities am I expected to undertake?
• How Much? – what is the expected target?
• By When? – What is the expected timeframe to deliver on this goal?
• How? – How am I expected to achieve this goal? Work independently/ Work with the entire team/ Work with
limited resources/ Work with Consultants or external vendors
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Performance Framework
Goal Setting Overview

The distribution of weightages to individual KPIs/ Goals (which must total 100%) should be based on the following factors:
 Key priorities for the year
 Amount of effort required to accomplish the goal
 Key focus of the role i.e. key responsibilities
 Impact of these goals on overall department goals
 Impact of the goals in driving organizational change/ transformation (if applicable)
 Complexity of the goal For e.g..: requires undertaking huge project, requires coordination with multiple stakeholders, managing
large teams, managing high budgets/ revenues. etc.

Deliverables against goals/ performance against Goals may be evaluated against the following factors:
 Quality – done with the highest standards
 Quantity – delivered in full i.e. completion of assigned deliverables/ responsibilities
 Cost – completed on or within assigned budget
 Time – completed on or within a defined time
 Financial Targets – completed assigned sales targets
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Performance Framework
Goal Setting Guide for Mid Year Review

Line Manager Submission Mid-

Self Assessment Feedback Discussion
Assessment year Review
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Performance Framework
Goal Setting Guide for Mid Year Review

GUIDELINES FOR MANAGERS

1. Review employee comments against each goal.
2. Provide feedback against employee performance, give examples and highlight key achievements.
3. Identify opportunities for improvement and identify action plans in order to help employees achieve goals.
4. Clarify expectations on quality, timelines, targets etc. if required
5. Highlight key concern areas and recommend improvements plans.
6. Discuss and revise targets and goals (only if necessary) due to changes in business environment.
7. Conduct short, regular meetings to discuss and record milestones, accomplishments, successes and challenges
as they occur, when details are fresh in mind.
8. Advise the employee ahead of time of issues you want to discuss.
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Performance Framework
Goal Setting Guide for Mid Year Review

GUIDELINES FOR EMPLOYEES

1. Complete the self-assessment against your goals.
2. Give examples of how you delivered on goals and highlight the key achievements.
3. Share supportive documentation with the Line Manager if required.
4. Set up a meeting with the Line Manager to track your performance and to get feedback.
5. Be open to feedback and accept constructive feedback and take necessary initiatives to improve performance.
6. Clarify expectations if necessary.
7. Ask for specific action plans in order to achieve critical goals by the end of the year.
8. Ask for support required from the Manager especially when facing challenges.
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Thank you for your attention!