9789B Manage People Performance

Learning Outcome 1: Determine the scope of various job roles and establish appropriate performance standards.

Strategic planning versus Operational planning

Strategic planning Time frame = 3-5years into the future Ambiguity Complexity Non-routine Organisation wide Fundamental Significant change Environment or expectation driven

Strategic Management Aligning the organisation with the internal resources and the external environment to ensure long term survival.

Strategic Management involves: Identifying where the organisation is currently Assessing how the external environment is likely to impact on the organisation Deciding what alternative actions are possible to reach the vision and mission Choosing an action or a number of actions Implementing the choice(s)

Strategic Plans Strategic plans are focused on the whole organisation, providing overarching objectives for the organisation, its direction and how it will interact with its environment. These provide the backdrop to the development of KPI’s and Critical Success Factors (CSF’s) for the organisation and operational plans.

Strategic Management From the KPI’s and CSF’s the organisation can monitor its performance and individuals can develop their own performance objectives. The broad and necessary framework for a performance management system is then in place.

Operational plans Also known as business plans Time frame = 12 months (to 3 years) into the future More predictable, systemised and specific than strategic management Routinised Small scale change Resource driven

Operational plan It is in the operational plan that the strategies of the organisation can be actioned. Operational plans are usually drawn up by first line managers or supervisors or middle management. It is those closest to the coal face who know how strategic intent can be implemented.(provided they know what it is.)

The relationship between strategy and operational plans Strategy What What will be done Operational Plans How How will it be done

The role of operational plans in performance management Once the operational plan has been approved, you need to begin its implementation. The manager’s job is to help staff set up the implementation and monitor progress towards the goal of the plan.

The role of operational plans in performance management Strategic plans are implemented through operational plans. Operational plans are implemented through the individual performance objectives or standards of staff. A lack of integration at this point will render any performance management system ineffective.

Connection between operational plans and performance The job description describes a stationery clerks roles as: To ensure adequate stocks of stationery are held to meet the needs of daily requirements, to order stationery in accordance with financial delegations, and to ensure prompt delivery to users. The position also accepts requests for non-stocked stationery items and makes recommendations to the Corporate Services Manager after pricing these items.

A critical success factor for the planning period is cost reduction, and key performance indicators are: Efficiency Stock levels Automation Technology

The operational plan for this section reads in part Objective 5 –Reduce levels of supplies to no more than 3 weeks stock based on annual usage figures and where there is a supply agreement in place with the nominated supplier.

While it would be expected that the stationery manager would continue on with their daily roles, they would also be expected to contribute to the cost reduction of CSF of the organisation. The clerk would be required to calculate how much stock should be carried, exceptions to the rule, seasonal fluctuations?.

Any number of individual performance objectives could be written in consultation with the clerk. Even though the stationery clerk my not save millions of dollars, they would achieve some savings and could be duly proud of their direct contribution to the organisation’s strategy.

The manager needs to set individual performance standards with each employee to make sure they are working towards the operational and strategic goals of the organisation.