2018 Annual Congress Navigating the VUCA Business Environment

2018 Annual Congress Navigating the VUCA Business Environment, creating sustainable value for all stakeholders

Productivity and performance management. Measuring what matters. O. Mavengere omavengere@zetdc. co. zw +263 242 758 464

http: //www. cellinsurance. co. zw/2017/11/06/2017 -zesa-risk-management-awards/ Outline Measuring performance at employee level and company level § § § Intro Definition Purpose Effects (employee level) Link with business strategy Company performance 3

Introduction PM has contributed immensely to productivity of organisations Very emotive subject to employees – Performance appraisal Principle of management by agreement or contract rather than management by command Development and the initiation of self-managed learning plans Integration of individual and corporate objectives 4 https: //www. shankman. com/how-to-make-the-perfect-email-introduction/

Definition What is performance management as defined by various authorities? 1. is a process which is holistic as it entails the defining of organizational aims, team and individual objectives development, effective measurement and assessment of employee performance, the matching of rewards to good performance, the provision of feedback which is constructive and supportive mechanisms for employee development and acquisition of skills which are crucial for organizational success (Pilbeam and Corbridge 2010 in Shangahaidonhi, 2013). 2. is a continuous communication process between employees and managers to develop a clear understanding of aligning organisational goals with personal efforts to improve both employees’ and organisation’s performance (Bacal, 1999), 3. According to Armstrong (2009: 495), PM is “a systematic process for improving organizational performance by developing the performance of individuals and teams. ” 4. Is a planned process of which the primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. 5 http: //sfmagazine. com/post-entry/march-2017 -definition-of-a-business/

Definition What is performance management as defined by various authorities? 1. is a process which is holistic as it entails the defining of organizational aims, team and individual objectives development, effective measurement and assessment of employee performance, the matching of rewards to good performance, the provision of feedback which is constructive and supportive mechanisms for employee development and acquisition of skills which are crucial for organizational success (Pilbeam and Corbridge 2010 in Shangahaidonhi, 2013). 2. is a continuous communication process between employees and managers to develop a clear understanding of aligning organisational goals with personal efforts to improve both employees’ and organisation’s performance (Bacal, 1999), 3. According to Armstrong (2009: 495), PM is “a systematic process for improving organizational performance by developing the performance of individuals and teams. ” 4. Is a planned process of which the primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. 6 http: //sfmagazine. com/post-entry/march-2017 -definition-of-a-business/

Purpose of PM • Greater efficiency, effectiveness, accountability to establish a high performance culture • Managing and resourcing performance • Integrating inputs or behaviours and values. • Shared vision of purpose and obj. of the organisation • Empowering, motivating, rewarding employees • Expectations to be defined and agreed i. t. o role responsibilities, skills, behaviours • Improve service delivery through effective and efficient application of resources. • Strategically align individual objectives to organizational objectives • Develop the capacity of people to meet and exceed expectations • Cultivate discretionary behaviour. 7 http: //icons-for-free. com/icon/aim_desire_game_goal_mission_sport_target_icon_2315605. html

Tools, employee level • • • Results Based Management (RBM) Management by Objectives (MBO) Balance Score Card Traditional Appraisal HR Metrics 8

Employees and PM • Is PM good? Is it bad? Is it a necessary evil? • Should firms leave PM? If so then what should be used as a measure of performance? 1. 2. 3. 4. 5. 6. Encourage short term performance? Destroy long term planning? Foster rivalry? Discourage team work? Build fear? Fuel organizational politics? 9 https: //emojiterra. com/thinking-face/

Employees and PM • Is there a link between PM and strategy? 1. An organisation’s performance is the performance of the people in the organisation 2. Opportunities for to discuss work with managers in a positive atmosphere. 3. Continuous process and a natural aspect of management. 4. Most employees have a negative feeling about performance management. 5. Should be a win-win situation between the employer and employees. 6. Performance based salary vs. time based wages 10 https: //emojiterra. com/thinking-face/

Employees and PM • Is there a link between PM and strategy? 7. 8. 9. 10. 11. 12. 13. Reward for effort Continuous improvement Learning and professional development Better comms Reward of good performance Intervention for bad performance Evaluate to consider salary reviews, promotions, training and transfers 14. PM should facilitate the provision of quality service to all stakeholders. 11 https: //emojiterra. com/thinking-face/

Strategy and PM • Malaysia Vision 2020 and RBM • Republic of Korea, PM and culture to improve gvt organs • Some local sectors In order to …. how do we …. ? (Customer, fin, growth, internal processes) 12

By the way…. Productivity and PM Measuring what matters (in our environment) 13 http: //smallbizclub. com/run-and-grow/innovation/8 -small-business-hacks-growth-productivity/

Our environment Volatile Uncertain Complex Ambiguous Hostile 14

Navigating the murky VUCA waters • From surviving to thriving • Growing productivity against the odds 15 https: //www. reddit. com/r/photoshopbattles/comments/64 yvf 2/psbattle_bird_standing_on_crocodile_in_murky_water/

What to measure • “how do we …. in order to …” • Performance measures should link to strategy • Strategy should talk to the objectives • Be cognisant of the VUCA world 16

What to measure (cont’d) 1. What is the strategy? What are you measuring? KPIs? • outputs • outcomes • independent reviews • growth target • staff engagement index • client satisfaction • revenue and profitability • ratios 17

What to measure (cont’d) 1(b). Ensure that the following happens • link objectives of the organization with individual goals • link the measurement of past performance with adjustments to the future direction • link the information in finance with the information in human resources • link the remuneration of each individual in the organization with that individual´s performance (Mark Stiffler 2006) 18

Qoute 19

What to measure (cont’d) 2. Ensure that the following are key tenants to survive VUCA • • innovation and flexibility, adaptability, sustainability, growth, https: //blogs. ntu. edu. sg/hp 331 -2014 -39/? page_id=136 20

What to measure (cont’d) 3. Involve your team. • • • set targets period review ownership strategy formulation achieving the strategy https: //quotestopics. com/performance-review-funny-quotes/ 21

What to measure (cont’d) 4. Repeat the process • • • frequent measurement annually too far refocus re-energise extreme volatility http: //www. hrinasia. com/employee-retention/how-effective-are-performance-appraisals/ 22

Remember that: “you cannot bury your head in the sand or give up, rather rise up and face the challenges. After all only the brave and the bold will survive in today’s world. ” http: //www. hrinasia. com/employee-retention/how-effective-are-performance-appraisals/ 23