1–1 MPO699 MANAGING PEOPLE IN ORGANIZATION TOPIC 04 – MANAGING FOR PEAK PERFORMANCE.

1–1

MPO699 MANAGING PEOPLE IN ORGANIZATION

TOPIC 04 – MANAGING FOR PEAK PERFORMANCE

Learning Objectives

• Discuss concept of MBO & Balanced Scorecards as the performance management tools

• Identify characteristics of high performance culture• Identify causes of performance problems• Establish accountability for performance• Discuss various ways to close the performance gaps

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30.04.07 - Management by Objectives – H. GünterVL HRM: leading teams – G. Grote - ETHZ, SS07

The use of goal-setting in business organizations seems almost universal. (Edwin A. Locke)

The intelligent use of difficult or stretch goals can dramatically improve productivity, efficiency, and profitability. (Steven Kerr)

MbO is just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't. (Peter F. Drucker)


Management by objectives (and self-control)(Drucker, 1954; McGregor, 1957; 1960; Swiss, 1991; Poister & Streib, 1995)

MbO: Management system / leadership tool to increase

productivity by agreeing on goals for every department,

team, and (!) employee in line with company’s strategic

goals

Goal agreement as basis for self-control (McGregor, 1957)

MbO: goal- and output-oriented, not input-oriented

MbO systems’ key components:

SMART goals, Participation, Feedback


Goal-setting (theory)(Locke & Latham, 1990, 2003)

Goal-setting theory provides the theoretical basis for MbO (Antoni, 2005)

Underlying premise of goal-setting theory: one’s conscious goals affect what one achieves - as goals direct efforts and motivate

As of 1990, support for goal-setting effects had been found on more than 88 different tasks, involving more than 40.000 participants in Asia, Australia, Europe, and North America (Locke & Latham, 2006)


Understanding SMART goals

SMART Goals Productivity+

SMART goals (Shaw, 2004)

S: specific, stretchingM: measurableA: achievableR: results-orientedT: time-based

„Stretch goals“ (Latham, 2004)

Specific and tough but not unrealistic Stretch task and stretch learning goals

1.


Understanding why (!) goal-setting works

SMART goals ProductivityMediators

Attention Energy Persistence Knowledge

Attention: goals direct attention towards relevant activities Energy: goals energize people Persistence: goals facilitate persistence Knowledge: goals motivate use of knowledge and learning

2.

+ +


Understanding when (!) goal-setting works

Productivity

Moderators

SMART goals afford knowledge and ability

Task complexity can reduce SMART goals‘ effectiveness

Participation increases goal commitment

Commitment increases persistence

Feedback helps to adjust direction of efforts

3.

MediatorsSMART goals


Goal-setting theory (Locke & Latham, 1990, 2003)

SMART goals

Stretching Measurable Achievable Results-based Time-specific

ProductivityMediators

Attention Energy Persistence Knowledge

+ +

Moderators

Knowledge and ability Complexity of task Participation Commitment Feedback

1.

3.

2.


Integrating MbO, pay-for- performance, and personnel development


MbO Cycle (Dinesh & Palmer, 1998)

2. Goalagreement

5. Periodicreviews

1. Define organizational

strategy

3. Link rewardsto goals

4. Developaction plan

6. Review ofperformance


Cascading of goals

1. Company goals are defined by the executive team and passed on to the next layer of management

2. Managers at this layer define goals they must achieve for the company to reach its goal – this is done in cooperation with subordinates

3. These newly developed goals are then passed on to the next layer of management (restart from 2.)

Shop-floor

Middle management

Executive team

2. Goalagreement

5.Periodicreviews

1. Defineorganizational

strategy




2. Goalagreement

5.Periodicreviews


strategy





2. Goalagreement

5.Periodicreviews


strategy




2. Goalagreement

5.Periodicreviews


strategy





Link rewards to goals:pay-for-performance(Locke, 2004)

Option 1: Goals and rewards tightly coupled Define (multiple) performance goal(s) and bonus for each goal

before the fact (Jensen, 2002; Pritchard et al., 2005)

Option 2: Goals and rewards loosely coupled Define goals but make decision about bonus rewards after the fact

by taking into account context factors, e.g.: How did the company as a whole perform?

How difficult were goals really – in the light of market conditions,

available resources etc.

2. Goalagreement

5.Periodicreviews


strategy




2. Goalagreement

5.Periodicreviews


strategy





System is transparent and objective

Pay for performance is noticeable

Employees agree with (specific) goals and indicators

Employees have control over goals and indicators

Continuous feedback

System reinforces the organizational strategy

Success factors in pay-for-performance systems

2. Goalagreement

5.Periodicreviews


strategy




2. Goalagreement

5.Periodicreviews


strategy





MbO Cycle (Dinesh & Palmer, 1998)

2. Goalagreement

5. Periodicreviews

1. Define organizational

strategy



6. Final review ofperformance


• Stretch goals can be used to – increase organizational effectiveness (task goals), or – facilitate personal growth and personnel development

(learning goals)

• Key factor in learning stretch-goal initiatives: supportive infrastructure: – Integrated personnel development program– Provide external resources, e.g. external coaches,

internal mentors, external faculty who teach courses

Link reviews to goals:personnel development(Kerr & Landauer, 2004)

2. Goalagreement

5.Periodicreviews


strategy




2. Goalagreement

5.Periodicreviews


strategy





Use reviews and performance appraisals for personnel development Give feedback frequently – not once a year

Give formal and informal feedback

Give feedback that is specific, related to behavior, and constructive

If goal attainment becomes unlikely give constructive feedback – do not blame

Give feedback on goal attainment and (!) working paths

Link reviews to goals:personnel development

2. Goalagreement

5.Periodicreviews


strategy




2. Goalagreement

5.Periodicreviews


strategy





Effectiveness and usage of MbO programs

Effectiveness (Rodgers & Hunter, 1991)

97% of 70 studies on MbO find productivity gains

But large differences in effects across studies

Top management commitment as key moderator

Usage (Hölzle, 2000)

84% of 184 German companies use goal-setting programs

42% of those companies define sub-goals


MbO: paths to failure Goal incongruence (!) across hierarchical levels, and units,

teams, and individuals (Dinesh & Palmer, 1998)

Interdependencies among levels, units, teams, and individuals

are not taken into account

No clear priorities and posteriorities (Drucker, 1976)

Employees have no control over objectives (Pritchard et al., 2005)

Short-term goals can reduce long-term thinking

MbO can undermine collaboration and helping behavior

Setting challenging goals over an extended time period can

lead to exhaustion (Latham, 2004)


„Changing the goal-setting process at Microsoft“ (Shaw, 2004)

Performance management system review (based on answers from 1500 employees): Only 40% of goals were SMART Employees‘ goals were often not aligned with company

goals

Further findings: Managers were not trained in setting SMART goals High rate of change at Microsoft aggravated goal-setting Performance feedback was given too rarely Goals were interpreted as aspirations (hopes)



Changes in the goal-setting process:

„SMART commitments“ instead of goals (5-7 per year)

Agree on sub-commitments (milestones) and action plans

Define clear success measures and metrics

Realign commitments across company, units, and teams

Check for misalignments of goals and interdependencies

more systematically



Goal-Setting Section of Microsoft’s Annual Performance Review Form


MbO - how to make it work

Cascade goals vertically and horizontally in the

company (take interdependencies into account)

Agree (!) on SMART goals but prevent from

„overstretching“

Continuously monitor goal attainment and give

constructive feedback

Link goals and goal attainment with pay-for-

performance and personnel development

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The traditional balanced scorecard model translates an organization’s vision and strategy into a set of measures built around four perspectives: financial, customer, internal business processes, and

innovation & learning.

• The balanced scorecard is one of several tools for performance measurement and management.

• The Kaplan and Norton model provides a more holistic approach by supplementing the traditional financial measures with three additional perspectives: customer, internal business process, innovation and learning:

Financial Perspective - Is the company creating value for its shareholders?

Customer Perspective - How is the company performing from the perspective of those who purchase the company’s products or services?

Internal Business Process - How is the company managing its internal business processes to meet its client’s expectations? Is throughput improving? Other processes include fulfillment, customer retention, and financial planning.

Innovation & Learning Perspective - Is the company improving its ability to innovate, improve, and learn?

• It incorporates both leading and lagging indicators.

• The emphasis is on balance across multiple dimensions of performance; ensuring that good performance in one area is not offset by poor performance elsewhere.

• The strategy drives the choice of performance measures. A failure to meet targets could be because the strategy is wrong

Robert S. Kaplan and David P. Norton have developed what is considered to be the standard Balanced Scorecard template

Customer Perspective

How do customers see

us?

Internal Business Process

Perspective

What must we excel at?

FinancialPerspective

How do we look to

shareholders?

Innovation & Learning

Perspective

Can we continue to improve our

employees’ skills and create value for our

clients?

Visionand

Strategy

Visionand

Strategy

Source: Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996)

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A Balanced Scorecard...Measures the progress of an organization toward its strategic

goals by translating their vision and objectives into tactics and measures across a balanced set of perspectives

Captures the expectations of customers and measures the company’s ability to meet them

Translates Strategy, Mission and Vision into tangible measures for use by decision makers through to line workers

Is the culmination of a sophisticated data gathering and analysis process and system

Can and will drive the process of change, so it must be right!Components of the Balanced ScorecardPerspectives: Four top-down perspectives on enterprise

performance (Financial, Internal Business Process, Innovation & Learning, Customer)

Objectives: What the company needs to do to accomplish its strategy; one guideline is to have up to sixteen measurable objectives.

Metrics: Actionable and tangible measurements which support achieving objectives; this is what makes it real.

Targets: Performance level expectations set against the strategic plan. For each metric, set a goal or plan so progress against the objective can be evaluated.

What is a Balanced Scorecard?

A balanced scorecard is a strategic measurement and management system that can motivate breakthrough performance.

Source: Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996)

To satisfy our shareholders and customers, what business processes must we excel at?

Objectives Measures

Internal Business Process Perspective

TargetsTo achieve our strategy, how should we appear to our customers?

Customer Perspective

Objectives TargetsMeasures

To achieve our strategy, how will we sustain our ability to change and improve?

Innovation & Learning Perspective


To succeed financially, how should we appear to our shareholders?

Financial Perspective


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What is a Balanced Scorecard?

Overview of Building a Balanced Scorecard

Creating the Balanced Scorecard

Using the Balanced Scorecard

1. Business StrategyStart with the Business Strategy, which should be a bold, future-oriented statement

2. Business ObjectivesDevelop key business objectives that will help you to attain your strategy

3. Measures & MetricsDevelop specific measures and metrics to track progress 4. Implement

Gather measures, create the balanced scorecard and use it to make decisions. Incorporate a continuous improvement philosophy in the process

The process of creating a balanced scorecard starts with the business strategy, and progressively breaks that strategy into tactical measures.

Use strategy to identify the objectives

Use objectives to identify the

measures that will be used

Use measures to build the

balanced scorecard

Use scorecard to determine if targets are met and the right measures are being measured

Use measures/ metrics to evaluate progress against objectives

Use progress against objectives to confirm strategy

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Start with the Business Strategy, which should be a bold, future-oriented statement.

• The balanced scorecard puts vision and strategy at the center of performance measurement.

• The definition of a clear strategy, mission and vision is critical to the balanced scorecard building process.

• If the strategy isn’t clearly defined, there is no way to measure performance against that strategy.

• A balanced scorecard will not give you a strategy but it will inform you quickly if the strategy of the company isn’t working

• The balanced scorecard helps align the organization’s strategic objectives across the entire organization, at all levels.

• The strategy is used to establishes the organization’s objectives, which are then used to define the measures

• The measures pull people at all levels towards the overall strategy

• The measures will then indicate whether the strategy is being fulfilled effectively

Balanced scorecard measures should be used not only to assess the “health” of the organization but to also to challenge the organizational strategy to ensure that it is the most effective one for the company

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Develop key business objectives that will help you to attain your strategy.

The diagram illustrates an example of a client’s organizational objectives. In the balanced scorecard development process, the organizational objectives should provide a balance across the four dimensions of performance.

—Objectives—

1. Drive rapid revenue growth2. Manage operating costs and profitability3. Achieve profitability4. Effectively utilize assets5. Manage risk6. Improved Shareholder Value

Vision and

Strategy

1. Rapidly penetrate market segments2 Sustain significant customer growth3. Retain customers4. Achieve high customer satisfaction5. Provide extremely positive customer on-line

experience6. Achieve customer satisfaction

1. Develop provocative offers2. Build brand awareness3. Expand distribution4. Drive incremental revenues5. Offer leading high-speed Internet service6. Provide compelling internet experience7. Maintain technological leadership

1. Sustain employee satisfaction2. Maintain employee productivity3. Retain employees4. Innovate operationally5. Measure training quantities6. Measure training effectiveness7. Measure and evaluate innovations

Financial Perspective

Customer Perspective Internal Business Process Perspective

Innovation & Learning Perspective

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The next step after identifying the organizational objectives is to identify measures & metrics for achieving those objectives.

Develop specific measures and metrics to track progress.

Objectives Measures & Metrics

Satisfied Clients

• Seamless Service• Improved Quality • Cost Reduction

Balanced Growth

• Reduce Cost• Reduce Backlog• Best clients

Motivated People

• Strong Leadership• Effective Training• Reward & Recognition

The above example shows Vendor’s objectives and some corresponding measures & metrics.

Effective performance measures have a number of key characteristics:

• Measures are part of a cause and effect relationship

• Measures are process-focused

• Measures are balanced

• Measures are actionable

• Measures are vertically & horizontally aligned

• Measures are integrated

• Measures encourage teamwork

• Measures focus priorities

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Gather measures, create the balanced scorecard, and use it to make decisions. Incorporate a continuous improvement philosophy in the process.

• A successful balanced scorecard implementation will enable employees at all levels of the organization to understand what they can do to help the organization meet its strategic objectives.

• Once implemented, the balanced scorecard allows the organization to test linkages and correlations between the various measures and consequently use this information to manage the organization.

• A successful balanced scorecard implementation takes into account :

• Change management principles and issues

• Effective communication throughout the organization

• Implementing and utilizing the proper technology to gather and produce the measures

• Implications of operating in the new economy

• The balanced scorecard process also needs to incorporate the philosophy of continuous improvement. This will help ensure that measures are always correct, timely, and relevant.

• Some examples of continuous improvement process activities can include revising measures periodically, ensuring there is a timely feedback, and that there is an effective feedback mechanism in place.The final outcome of the balanced scorecard development process is a high level and

summarized view of the firm’s performance measurements. The above example of a balanced scorecard shows that balanced scorecards can be as simple as management chooses them to be

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When implemented properly, the balanced scorecard system ensures that faulty measurement processes and faulty management processes are avoided.

Faulty Measurement Processes

Exclusively financial

Focused on functional silos

Ignore customers and shareholders

Only focus on lagging metrics

Lack insight to causes

Oblivious to competitors

Measurements do not focus on business value

Result is misalignment to strategic goals

Faulty Management Processes

Short term horizons

Lack of ownership by management

Lack of comprehension by line employees

Conflicting rewards

Unambitious targets

Poor communications

Teamwork discouraged

Result is misalignment to desired behaviors

Establishing Accountability for Performance

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ACCOUNTABILITY IS A MULTIDIMENSIONAL CONCEPT & OFTEN A KEY ENABLER OF SUCCESS …. TO TRULY WORK, ACCOUNTABILITY HAS TO BE

SHARED BY MANAGERS & EMPLOYEES; FURTHER, YOUR ORGANIZATION AS A WHOLE MUST BE ACCOUNTABLE TO THE CUSTOMER & STAKEHOLDER

From “Balancing Measures: Best Practices in Performance Management

WHILE ESTABLISHING ACCOUNTABILITY FOR PERFORMANCE IS SHOWN AS THE 3RD STEP IN THE FRAMWORK, IT ACTUALLY IS AN INTEGRAL PROCESS

TO EACH OF THE OTHER STEPS

A Working Definition of Accountability

Accountability refers to the obligation a person , group, or organization assumes for the execution of authority and/or the fulfillment of responsibility. This obligation

includes:•Answering – providing an explanation or justification – for the execution of that

authority and/or fulfillment of that responsibility•Reporting on the results of that execution and/or fulfillment, and

•Assuming liability for those results

Responsibility & Accountability: the Difference Between the Two

• Often, the world “responsibility” is used in conjunction with the word “accountability” – however, they are not the same!

• Some views on the differences between the two:– “Responsibility “ is the obligation to perform. “Accountability” is the liability one

assumes for ensuring that an obligation to perform (a responsibility) is fulfilled (Frost 1998)

– “Responsibility” is the obligation to act. “Accountability” is the obligation to answer for responsibilities. Confusing accountability with responsibility obscures the obligation to report (Citizen’s Circle for Accountability 1996)

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Authority & Responsibility:the Difference Between the Two

• Distinguishing the difference between “authority” & “responsibility” is important to understand the application of “accountability”

• “Authority” is the right to act without prior approval from higher management & without challenge from peers (Frost 1998) – “authority” is assigned

• On the other hand, “responsibility” is delegated.• People in authority have responsibilities & may delegate them• However, delegating responsibility does not relieve the delegator from the

assumed liability of that responsibility• And being delegated responsibility does not necessarily mean that one has been

assigned authority

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Key Aspects of Accountability

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ACCOUNTABILITY IS A RELATIONSHIP

ACCOUNTABILITY IS A TWO-WAY STREET, “A CONTRACT BETWEEN TWO PARTIES”

ACCOUNTABILITY DOESN’T LOOK AT INPUTS & OUTPUTS, IT LOOKS AT OUTCOMES

REPORTING IS THE “BACKBONE” OF ACCOUNTABILITY

ACCOUNTABILITY IS RESULTS-ORIENTED

ACCOUNTABILITY REQUIRES

REPORTING

ACCOUNTABILITY IS MEANINGLESS WITHOUT

CONSEQUENCES

ACCOUNTABILITY IMPROVES

PERFORMANCE

WITHOUT IT, ACCOUNTABILITY WILL NOT STAND UP

OBLIGATION INDICATES LIABILITY – AND LIABILITY COMES WITH CONSEQUENCES

THE GOAL OF ACCOUNTABILITY IS TO IMPROVE PERFORMANCE, NOT TO PLACE BLAME & DELIVER

PUNISHMENT

The Five Levels of Accountability

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Personal accountability is the foundation of all

accountability. It promotes individual accountability, which in turn, promotes

team accountability, which in turn promotes organizational accountability

The Five Levels of Accountability

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PERSONAL ACCOUNTABILITY

INDIVIDUAL ACCOUNTABILITY

TEAM ACCOUNTABILITY

ORGANIZATIONAL ACCOUNTABILITY

STAKEHOLDER ACCOUNTABILITY

AN ACCOUNTABILITY RELATIONSHIP WITH ONESELF

AN ACCOUNTABILITY RELATIONSHIP WITHIN A WORK SETTING

A “SHARED” ACCOUNTABILITY RELATIONSHIP WITHINA GROUP OR TEAM

INTERNAL & EXTERNAL ACCOUNTABILITY RELATIONSHIPS WITHIN AN ORGANIZATION

A “DETACHED” ACCOUNTABILITY RELATIONSHIPS BETWEEN STAKEHOLDERS & THE ORGANIZATION

Establishing Accountability for Performance – What Is An Accountability Environment?

• Refers to the condition in which accountability can flourish• Specifically, it is the condition in which individuals, teams, and organizations feel

– Motivated to execute their authority and/or fulfill their responsibility– Stimulated to perform their work & achieve the desired results– Inspired to share (report) their results; and– Willing to accept the liability for those results

• The optimal accountability environment is one of proactive accountability wherein the individual, team, and organization is focused on achieving great results rather than figuring out ways to explain poor results

• Very often, the “troubles” with the accountability environment at the individual worker level usually can be traced to a “polluted” environment within the management level

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Requirements for an Accountability Environment

• Leadership– The accountability environment is established from the top down– Thus, leadership becomes the most important “ingredient” in the environment

• Reciprocation– Ensures the “two-wayness” of the accountability relationship– Both, the party with assigned authority & the other with delegated responsibility, are

accountable to each other

• Equity– Equity or fairness is the cornerstone of the accountability– Inequity should be avoided because it will destroy trust & organizational credibility,

resulting in less than optimal performance

• Trust– If either of both parties don’t trust the other, there probably exists lack of transparency,

and the relationship is doomed for failure– In other words, accountability cannot survive in an environment of mistrust

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LEADERSHIP

LEAD BY EXAMPLE

BE COMMITTED

CLEAR THE PATH

USE GOOD JUDGMENT

BE THE ANSWER


• Transparency– In its simplest terms, transparency means all players put “all their cards on the table”– An environment without transparency means one that is full of hidden agenda

• Clarity– Key focus areas for clarity are authority, organizational mission, roles & responsibilities,

performance expectations, and performance reporting

• Balance– In order for accountability to work, there has to be a balance between accountability &

authority; expectations & capacities; and pay & performance

• Ownership– Ownership gives individuals/groups an interest in the outcomes and thus, leads them

to “take care of business” (fulfill their responsibilities). – Analogy of renting a car versus owning a car– In other words, ownership increases responsible behavior & a caring attitude

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CLARITY

AUTHORITY

PERFORMANCE EXPECTATIONS

ORGANIZATIONAL MISSION

PERFORMANCE REPORTING

ROLES & RESPONSIBILITY


• Consequences– The consequences could be good (rewards) or bad (sanctions)– Whatever the case, consequences help drive the execution of authority, the fulfillment

of responsibility, and the improvement of performance

• Consistency– The inconsistent application of policies, procedures, resources, and/or consequences

within an organization undermines the accountability environment by weakening perceived organizational commitment & credibility

– Inconsistency deflates employee morale & promotes employee cynicism, ownership “goes out the window & performance suffers

– Consistency increases predictability & decreases the need to “guess what’s next”

• Follow-up– Where expectations have clearly not been met, corrective actions may need to be taken,

possible adjustments to the accountability arrangement made & lessons-learned noted– An accountability relationship without follow-up is clearly incomplete & unlikely to be

effective

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Barriers to the Accountability Environment

• Hidden Agendas– Business/office “office politics” sometimes abuse performance activities for personal

gain, resulting on targeted employees feeling used (and abused)– These tactics destroy trust, a key element of accountability

• Favoritism– Management could favor high performers, leaving other employees feeling “left out”– Or, management could favor employees regardless of performance, also leaving other

employees abandoned– Accountability requires inclusiveness & team work

• Lack of Leadership– Without leadership, performance results will be much less than expected

• Lack of Resources– It is useless to expect optimal performance if individuals or teams are not provided with

the resources to perform the work

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• Lack of Follow-Through– When management says they are going to do something & they don’t, it tells the

employee that management can’t be trusted to follow-through– For example, announcing rewards & penalties for performance & not following through

with them, paints management as untrustworthy– It also doesn’t inspire employees to perform

• Lack of Clarity– When lines of authority or roles & responsibilities aren’t clear, it’s difficult to pinpoint where certain

accountabilities reside– Clarity is essential to an accountability relationship

• Data Misuse– Withholding data shows a lack of transparency & mistrust– Not using data at all can come to mean that performance is not important to the

organization– In either case, the accountability relationship suffers

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Barriers to the Accountability Environment

Accountability Tools

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STRATEGIC PLANSPERFORMANCE

PLANSPERFORMANCE AGREEMENTS

ACCOUNTABILITY REPORTS

PERFORMANCE-BASED CONTRACTS

SELF-ASSESSMENTS

PERFORMANCE REVIEWS

MANAGEMENT CONTROLS

EQUITY STATEMENTS

ACCOUNTABILITY MEETINGS

SINCE ACCOUNTABILITY REQUIRES REPORTING, THE FOCUS OF ACCOUNTABILITY TOOLS IS ON REPORTING – BOTH INTENTION & RESULTS


• Strategic Plans– Strategic planning is a process for helping organizations think about the objectives they

should establish to fulfill their mission & in what directions they should move to achieve those objectives

– It is the foundation for all planning, budgeting, execution, control, and evaluation activities by an organization

– The benefits of strategic planning include building consensus around organizational goals, objectives, and priorities; providing the basis for resource allocations & operational planning; defining baselines for controlling outcomes; and helping to evaluate organizational performance

• Performance Plans– Performance plans outline organizational commitments to achieving specific results

against the goals, objectives, and strategies of the organizational strategic plan for the resources requested in the budget

– In other words, performance plans state what is going to be accomplished for the budgeted money

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• Performance Agreements– Performance agreements are designed to provide a process for measuring performance,

and therein, establish accountability– The agreements state expectations for each party signing the agreements– Agreements written in plain & concise format with specific annual deliverables allow

customers & stakeholders to know what they getting for their money as well as give them an opportunity to influence organizational priorities

• Accountability Reports– Published annually, accountability reports include program & financial information, such

as audited financial statements & performance measures in meeting key organizational goals

• Performance-Based Contracts– Streamline the procurement cycle, achieve lower costs & higher quality and to move

away from audit & inspection at the end of procurement cycle to building in the performance expectation at the beginning of the cycle

– Performance-based contracts hold the customer accountable for establishing clear performance expectations & the provider accountable for achieving those expectations

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• Self-Assessments– Self-assessments is an on-going process whereby a performing organization monitors its

own performance & evaluates its ability to meet performance objectives, measures & expectations, and to control & improve its processes

– The self-assessment report should be brief, and charts & graphs should be used wherever possible

– The report should address both strengths & weaknesses and provide an action plan to correct any weaknesses

– To be effective, the self-assessment must be open & candid and accurately reflect the performance of the organization

• Performance Reviews– Performance reviews are ongoing process of planning & monitoring performance. These

reviews compare actual performance during a specified review period with planned– From that comparison, concerns can be addressed, modifications can be made to

performance expectations, and future directions can be planned– Performance also serves as formal documentation of performance & for employee

development & promotion

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• Management Controls– Management accountability is enhanced through management controls– Management controls are the organization, policies, and procedures used to reasonably

ensure that:• Programs achieve their intended results• Resources are used consistent with organization’s mission• Programs & resources are protected from waste, fraud, and mismanagement• Laws & regulations are followed, and• Reliable & timely information is obtained, maintained, reported & used for decision making

• Accountability Meetings– A weekly meeting, focuses on three questions:

• What did you accomplish last week?• Do you have any on-going problems?• What will you accomplish next week?

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1–1 MPO699 MANAGING PEOPLE IN ORGANIZATION TOPIC 04 – MANAGING FOR PEAK PERFORMANCE.

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Transcript of 1–1 MPO699 MANAGING PEOPLE IN ORGANIZATION TOPIC 04 – MANAGING FOR PEAK PERFORMANCE.