1. Human Resource Management 1 Performance Management Process

2. Human Resource Management 2 Performance Management Process Setting Objectives Performance Review Coaching and feedback

3. Human Resource Management 3 People development process 1.Business Objectives 2.Individual and organizational effectiveness 3.Staffing 4.Performance management 5.Competencies/ Skills 6.Education & Training/ Development planning

4. Human Resource Management 4 Purpose for a Performance review 1.Recognize people for what they have done and how they did it 2.Talk about objectives and responsibilities not yet accomplished 3.Guide people in what they need to do and how to do it 4.Motivate people toward improving performance to achieve results.

5. Human Resource Management 5 What is a “SMART” objective? 1.Specific 2.Measurable 3.Action – Oriented 4.Realistic 5.Time-bound

6. Human Resource Management 6 Effective Objectives must be “SMART”  Specific: Clearly state the outcome you expect to achieve (what specifically needs to be done)  Measurable: Can be quantitatively or qualitatively determined  Action-Oriented: Describe what action will take place and what the results will be  Realistic: Have a reasonable expectation of being achieved  Time-bound: Specify a timeframe in which your results should be acieved.

7. Human Resource Management 7 The Balanced Scorecard - What is it The Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.

8. Human Resource Management 8 The Balanced Scorecard - What is it The Balanced Scorecard: Balances financial and non-financial measures Balances short and long-term measures Balances performance drivers (leading indicators) with outcome measures (lagging indicators) Should contain just enough data to give a complete picture of organizational performance… and no more! Leads to strategic focus and organizational alignment.

9. Human Resource Management 9 Mission – What we do Vision – What we aspire to be Strategies – How we accomplish our goals Measures – Indicators of our progress The Strategy Focused Organization

10. Human Resource Management 10 The Balanced Scorecard and The Big Picture Activity Based Costing Economic Value Added Forecasting Benchmarking Market Research Best Practices Six Sigma Statistical Process Control Reengineering ISO 9000 Total Quality Management Empowerment Learning Organization Self-Directed Work Teams Change Management

11. Human Resource Management 11 Strategic Direction Create Environment For Change Strategic Performance Management System Linking it all together…. Communicate Strategies Define Objectives Implement BSC Balanced Scorecard Measure Performance Improve Processes Evaluate and Adjust Continuous Improvement Redefine Initiatives

12. Human Resource Management 12 FINANCIAL/REGULATORY To satisfy our constituents, what financial & regulatory objectives must we accomplish? CUSTOMER To achieve our vision, what customer needs must we serve? INTERNAL To satisfy our customers and stakeholders, in which business processes must we excel? LEARNING & GROWTH To achieve our goals, how must we learn, communicate and grow? THE BALANCED SCORECARD

13. Human Resource Management 13 Customer Perspective o Customer Satisfaction (Average) o Satisfaction Gap Analysis (Satisfaction vs. Level of Importance) o Satisfaction Distribution (% of each area scored) Possible Performance Measures To achieve our vision, what customer needs must we serve?

14. Human Resource Management 14 Financial / Regulatory Perspective o Cost / Unit o Unfunded Requirements or Projects o Cost of Service o Budget Projections and Targets Possible Performance Measures To satisfy our constituents, what financial and regulatory objectives must we accomplish?

15. Human Resource Management 15 Internal Perspective o Cycle Time o Completion Rate o Workload and Employee Utilization o Transactions per employee o Errors or Rework Possible Performance Measures To satisfy our customers, in which business processes must we excel?

16. Human Resource Management 16 Learning and Growth To achieve our goals and accomplish core activities, how must we learn, communicate and work together? Possible Performance Measures o Employee Satisfaction o Retention and Turnover o Training Hours and Resources o Technology Investment

17. Human Resource Management 17 Targets “If you don’t know where you’re going, you’re probably not gonna get there.”

18. Human Resource Management 18 Targets Targets need to be set for all measures Should have a “solid basis” Give personnel something for which to aim If achieved will transform the organization Careful not to develop measures/targets in a fragmented approach: i.e. Asking people to increase customer satisfaction has to be backed up with the knowledge, tools, and means to achieve that target.

19. Human Resource Management 19 Initiatives  Once measures and targets are established, it is the responsibility of management to determine HOW the organization will achieve its goals.  Measures are used to determine the effectiveness of strategic initiatives.

20. Human Resource Management 20 THANK YOU