A roadmap towards peak performance
Arriffin Mansor
A performance measurement approach
ABM Consult69, Jalan Raja Alang, 50300 Kuala [email protected]
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We help clients to• Define clear goals and strategies• Identify and develop critical competencies• Design proper systems and processes• Develop effective team leadership• Empower employees for greater productivity
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Our programs
• Consulting– Identifying critical competencies– Strategic business plans– Installing Peak peformance framework
• Training workshops– core performance competencies– Performance improvement
• Team building– A winning team with the right working plans
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Key benefits of our programs• Improved bottom line performance• Improved customers satisfaction• Attaining leadership in the industry• Promote continous improvement in
all areas• Promoting effective team leadership• Strategic thinking and effective
problem solving through a systemetic thought process
• Recognising and promoting talent
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Consulting Services 1. Training need analysis2. Performance audit3. Strategic business plans4. Installing performance management system
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Team Building
• Clear objectives• Identify key result areas to achieve objectives• Choose suitable key peformance indicators• Establish performance targets• Communication • Problem solving• Effective Leadership• Group dynamics
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Performance Framework • Smart objectives• Key result areas• Key Peformance Indicators• Performance targets
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Critical Gap Analysis
• ROE chart• KPI calculations • Benchmarking• Industry standards• Internal standards• For both performance and competency gaps
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• Performance planning• Performance measurement• Performance appraisal and evaluation
Performance Management
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Vision and Strategy
Financial L and GCustomer Process
Objectives
Measures
Targets
Initiatives
Strategy-Translation Process
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Some Basic Principles in Performance
• Quantifies the Strategies in measurable terms• Strategy is summarized on a Strategy Map over four views of
performance (perspectives).• Must capture a cause-effect relationship between strategic objectives
over the four perspectives on the Strategy Map.• Critical Components include:
-objectives
- Measurements- Targets- Initiatives
• Everything must be linked: Goals to Objectives, Objectives to Measurements, Measurements to Targets.
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The Measurement Pyramid
Goal
Outcome Performance
Measures
Program
Program Performance Measures
Program Components
Program Component Performance Measures
Activities
Activity Performance Measures
Strategic/GPRA GoalsEnd-Outcomes
Longer-Term IntermediateOutcomes
Shorter-TermIntermediateOutcomes& Outputs
Outputs& Inputs
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ENSURE THE RIGHT KPIS BEING USED
• Let me suggest four possible types of KPIs:
1. Input phase• Labour Hours
2. Process phase• Material used per unit
3. Output Phase• Production cost per unit.
4. Outcome phase• Return calculation
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Return on Assets (ROA)
Sales100.00$
Gross Margin20.00$
Net Profit Subtracted by2.00$
Subtracted by 80.00$ Net Profit Margin 18.00$
0.02 Divided by COGSTotal Expenses
100.00$ Return On Assets Inventory
Sales 130.05 Times
Sales100.00$ Added to
Current Assets2.5 Divided by 30 13.00$
Asset Turnover 40.00$ Accounts ReceivableAdded to
Total Assets 10 Added to4
Fixed AssetsOther Current Assets
Identifying Critical performance gaps
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Inte
rnal
Pro
cess
Stak
ehol
der
Lear
ning
& G
row
th
Reduce Re-Activities thru ABC/M
Establish Web Based Self Services
Knowledge Management
Human Capital
Improved Returns on Investments
More rapid and accessible services
Leadership Development
Inve
stm
ents
Strategy Map: Capture a Cause Effect Relationship from the Bottom Up
IT InfrastructureFacilities and Fixed Assets
Economic Model Process
Expand Global Facility Reach
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TNA (Step 4): New Skills, knowledge and Attitudes
Existing•Skills•Knowledge•Attitudes
Required• Skills• Knowledge• Attitudes
In order for our employees to perform differently, what kind of new Skills, Knowledge and Attitudes they need to have?
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ProcessInput Output
Outcome
Performance Problem1. Establish the Need2. Set success Criteria
Learning Programme3. Candidates
A. Training CommunityPurpose - Checking
A
Performance
7. Changes in Practice
8. Estimate Value
C. Operational CommunityPurpose - Challenging
C
4. Changes in Knowledge and Skills5. Changes in Behaviour6. Changes in Support Environment
B. Operational CommunityPurpose - Steering
B
Mapping Purpose to the Systems ModelINPUT OUTPUT ANALYSIS
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GRAPHIC ILLUSTRATION OF PERFORMANCE IMPROVEMENT
ROA as a KPI for the CEO
105%600 200
ASSETS
1010%500 Before 100
400 Ă Industry Standards
300 ß 1020%
č 50200 After
100
0
0 10 20 30 40 50
PROFITS
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Sale per ringgit Advertising
Advertising Sales/advertising
KPI2
After
Before
Before After Sales
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IMPROVEMENT MODELS
MACRO - ROE Chart• Departmental strength and
weaknesses• Benchmark against industry
standards• Cascading the targets• Performance improvement
metrics• Strategic mappings• Team buildings
MICRO - input output dimension
• Individual Strength and weaknesses
• Benchmark against industry standard
• Root cause analysis• Performance appraisal• Performance network• Competency gaps
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5 steps in evaluating impact
Step 1 – determine performance objectives
Step 2 – accumulate input costs
Step 3 – compute realistic key performance indicators
Step 4 – obtain the output benefits / income
Step 5 – Calculate the ROI
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Learning tasks - build the following business performance models.
• Corporate Plans• Marketing plans• Operation plans• Staff plans• Financial Plans
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Our services - a summary
• Consulting – Training need analysis– Performance Audit– Develop effective business plans– Install the performance management system
• Seminars / Workshops– Performance improvement – 2 day – Business Metrics – 2 day
• Team building – A winning, efficient and effective teams
The End
© Arriffin 012-2786282
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