Group Performance Management Systems

GPMS/IPMS

• Goal is to enable trainees to:

• Learn the concept of Group Performance System

• Learn the foundations of GPMS and BBSC

• Learn the groupings in GPMS of BSNL.

• Learn with sample SSA GPMS

Introduction to Performance Management Systems

• Organizations exist to achieve objectives through strategies.
• Top management delineates strategies, but employees implement them.
• Implementation of corporate strategies occurs across functional units/departments.
• Performance measurement systems are crucial for measuring outcomes.
• Enables corrective actions
• Enables rewarding outstanding performers.
• The organization utilizes PMS to:
• Deploy goals
• Calibrate performance for organizational results
• Employees utilize PMS to:
• Understand objectives
• Measure performance
• Link performance to rewards
• PMS is a management tool that translates top management expectations into tangible results.
• BSNL faces a tough competitive environment that requires:
• A significant change in mindset across all employee levels.
• Massive transformational change in performance.
• Introducing a PMS may help BSNL toward performance-oriented work culture.
• BSNL top management decided to introduce GPMS, the Group Performance Management System.
• The chapter will briefly describe GPMS for BSNL.

GPMS Concept

• GPMS is a Project SHIKHAR initiative to establish an objective, transparent performance assessment system.
• GPMS entails:
• Identifying Key Performance Indicators (KPIs), for individuals and groups.
• Assigning KPIs to distinct groups, aligned with organizational objectives.
• Assessing targets and assigning relative weight based on KPIs with the intent of an objective and transparent manner

Foundation of GPMS

• GPMS is similar in implementation to a Balanced Business Scorecard (BBSC).
• BSNL adopted BBSC in 2006.
• GPMS became an improved version of performance management in 2009
• GPMS scorecards for groups measure performance on financial, customer/market, and operational parameters.
• KPIs evaluate groups on parameters difficult to capture quantitatively.
• Overall performance assessment is done by the person the group reports to.
• CMD evaluates corporate office groups.
• Management Committee (MC) evaluates Territorial Circles.
• Circle Heads evaluate SSAs.
• Corporate office Directors/Executive Directors evaluate non-territorial circles.
• Scorecards include a parameter for customer satisfaction.
• Customer satisfaction is a customer survey by a 3rd party based upon on the following parameters:
• Brand and advertising
• Product innovation
• Customer responsiveness
• Quality of service
• Internal customers/stakeholders provide evaluation in circles without external customers.

Shortfalls of BBSC

• Introduction of GPMS was in place of BBSC considered due to shortfalls:
• Job descriptions at an individual level were not clearly defined
• Creation of individual score cards was not very objective and systematic.
• Activities for each division lacked clear delineation.
• Proved to be less effective for identifying and communicating KRA (key responsibility area) of a specific post.
• Balanced Scorecards defined at various levels have challenges:
• A Large amount of KPIs/Scorecard
• Absence of critical enablers like organizational structure/processes/ IT support.

GPMS Implementation for BSNL

• GPMS is suitable due to:
• Its compatibility with BSNL's new organizational structure.
• Identification and definition of KRA/KPIs based on BSNL's new Business Unit (BU) structure.
• Derived from consultation with top executives in each BU.
• Limited KPIs that maintain a tight focus on Key performance areas
• Provides a balance of quantitative and qualitative measurements.
• KPIs are defined according to the functional activities of an entity.

Individual Performance Management System (IPMS)

• GPMS success depends on individual executive performance, leading to the introduction of IPMS.
• IPMS is designed to be objective and transparent for assessing individual performance.
• IPMS is aligned with GPMS principles, initially covering DGM and above.

Creating a GPMS Scorecard

• The approach for creating GPMS goes from top-down.
• HQ must create scorecards for the company and 18 of 19 parent units identified by BSNL.
• This is done by the restructuring cell of Corporate Office with GPMS nodal representatives from 7 groups:
• CFA
• CM
• Enterprise
• New Business
• Corporate Affairs
• Finance
• HR
• A Core PMS team is designated for this.
• Territorial Circle Office nodal representatives design GPMS cards for SSAs in their circle.

GPMS Scorecard Key Points

• When finalizing GPMS scorecards, performance parameters should be:
• Linked to strategic objectives and organizational vision.
• Measurable and objective.
• Actionable, result-oriented, and controllable.
• Number of KPIs should be kept at a minimum.
• Focused on driving desired behavior/performance.
• Capable of being benchmarked.
• Unambiguous and easy to understand.
• Have the largest impact on achieving objectives/company's scorecard.
• Officers should identify the direct/indirect link between their parameters and the company's scorecard.
• They should be set with targets that are possible to achieve

Achievement Reporting

• Methods should be in place during performance indicator finalization.
• Such processes and methods should ensure accurate and timely reporting of achievements.
• Company IT should get accurate reports on key performance parameter achievements.

Target Amendments

• Targets can be changed after the quarterly review.
• This should be an exception and not regular practice.
• Professional management requires precise business understanding.

Performance Marking

• Targets are set against each scorecard parameter.
• Achieving the target results in a score of 100 for that parameter.
• Achievement levels below 100 are based on performance, with scores of 60 and 80 obtainable.
• For calculating the total score against a KPI, weightage of the parameter is important.
• KPI score is multipled by perfromance score & the final score will be the sum of scores for all parameters.

BBSC as concept

• BBSC implementation was BSNL's first step toward balanced performance measurement.
• The balanced scorecard is a management system clarifying vision, strategy, translating them to action.
• It provides feedback on internal business processes and external outcomes for continuous improvement.
• Traditional financial measures tell the story of the past, which may not be valuable now.
• Financial measures are inadequate for information age companies, they must create future value.
• Value can be created through investments in customers, suppliers, employees, processes, technology, and innovation.

Perspectives of the Balanced Scorecard

• The balanced scorecard views the organization from four perspectives:
• Learning and Growth Perspective
• Business Process Perspective
• Customer Perspective
• Financial Perspective

Learning and Growth Perspective

• Includes employee training and corporate cultural attitudes tied to individual/corporate self-improvement.
• People or knowledge workers are the main resource.
• Continuous learning is necessary for knowledge workers due to rapid technological change.
• Government agencies often struggle to hire new employees while not training current employees
• The "brain drain" should be reversed.
• Metrics can guide managers in focusing training funds for employees.
• Learning and growth is essential for any knowledge-worker organization.

Business Process Perspective

• Focuses on internal business processes.
• Metrics help managers know if business is running effectively, and conforming to customer requirements.
• Metrics have to be carefully designed by those most intimate with processes.

Customer Perspective

• Leading indicators include customer satisfaction.
• Customers will find suppliers that meet their needs.
• Poor performance is a leading indicator of future decline.
• Measure customer satisfaction by analyzing customer and process types for the product/service being provided.

Financial Perspective

• The ultimate goal is to make profits.
• Accurate financial data is a priority, therefore managers need to make the assessment
• Analysis of risk, cost, and benefits are required.

PMS

• Introduced to emphasize performance-oriented culture:
• New behaviors and core competencies.
• Customer focus and personal accountability.
• Significant change may result by people applying the integration of strategy & business ideas.

GPMS Groupings

• GPMS groups as follows:
• Corporate Office
• Territorial Circle
• Non-Territorial Circle
• SSA

Conclusion

• GPMS measures performance against management-set targets.
• GPMS assesses performance over time and allows for corrective measures when deviations occur.