Agenda

Focus of Performance Appraisal Year 2014

Understanding the Balance Score Card (BSC)
Use of Balance Score card
Elements of BSC
Financial
Internal Business Process
Customer
Learning & Growth
Link of four (4) elements in Balance Score Card
Performance Appraisal Year 2014
Sample KPIs for Financial perspective
Sample KPIs for Internal Business perspective
Sample KPIs for Customer perspective
Sample KPIs for Learning & Growth perspective
Competency
About competency
Performance Appraisal Year 2014
Core Behavioral Competency Dictionary
Weightage
Percentage of division for each level of management

Focus of Performance Management
Development & Growth of Company
Future Goal Commitments (Planned Achievements)
Documentation of Good and Weak Performance
Feedback for Sub-Ordinate
Staff
Talent development
Rewards


What is Balance scorecard
The Balance Scorecard is a strategic planning
and management system used to align business
activities to the vision and strategy of
organization by monitoring performance
against strategic goals
Its a tool that provides stakeholders with a
comprehensive measure of how organization is
progressing towards the achievement of its
strategic goals
It balances the financial and non financial
measures
It improve internal and external
communications, and monitor organization
performance against strategic goals.
Balance short and long term measures
Use of Balance scorecard:
Information about Balanced Scorecards indicates:
which will eventually lead to higher shareholder value
(financial).
that deliver specific value to the market (customer)
knowledge, skills and systems that your employees will need
(learning and growth)
innovate and build the right strategic capabilities and
efficiencies (internal processes)
Four elements in Balance scorecard
Financial perspective:
The financial performance perspective of the
balanced scorecard addresses the question of how
shareholders view the firm and which financial goals
are desired from the shareholders perspective.
These financial goals are dependent on the companys
stage in the business life cycle.
Internal Business Processes perspective:
Internal business process objectives address the question of
which processes are the most critical for satisfying
customers and shareholders
A firm must concentrate its efforts to excel in these areas

Metrics based on this prospective allow the managers to
know how well their business is running and whether its
products and services conform to customer requirements
Customer perspective:
With customer perspective managers and companies have to be
careful and make sure they are setting up their balance
scorecard to help customers.

Examples of things that dont concern customers are profit per
customer, revenue per customer, and improve profit per
customer.

These objectives dont necessarily protean to the customer
perspective but rather the companies perspective of the
customer.

Managers need to take a step back and look at how customers
perceive your company and what they want to get out of your
company.
Learning & Growth perspective:
The learning & growth perspective focuses on the
intangible assets of organization, mainly on the
internal skills and capabilities of the employees that
are required to support the value-creating internal
processes.
It must focus on measurable outcomes to move the
company forward
It focuses on:
Human Capital - Jobs and people issues
Information Capital Systems and technology issues
How does Balance scorecard link:
PERFORMANCE APPRAISAL
YEAR 2014
Samples of Financial perspective:
Return of capital employed - ROCE
Return of equity ROE
Return of investment ROI
Maximize utilization of assets (include staffing)
Cost management
Risk management

Samples of Internal Business Processes perspective:
Operations Mgmt
Supply
Produce
Distribute
Customer Mgmt
Select Customers
Acquire New Customers
Retaining Customers
Business Growth
On time Delivery
Average Lead Time (No)
Contracts filed without error (No)
Lead time, product development (No)
Lead time, from order to delivery (No)
Lower error rate
Reduce rework
Improve quality
Innovation process
New Opportunities
Design & Develop
Launch
Regulatory & Social Process
Employment
Samples of Customer perspective:
Annual sales / customers ($)
No of complaints
Response Time
Customer retention
Annual Sales per customer
Brand Image index (%)

Product / Service Attributes
Price
Quality
Availability
Relationship
Services
Partnership
Organization Image
Branding
Customer Value
Selection
Functionality
Satisfaction
Samples of Learning & Growth perspective:
Training hours per employee
Absenteeism / Illness rate
Turnover Rate
Employees productivity
Leadership development
Internal promotions %

Intangible Assets
Human Capital
Staff Turnover
Retention
Staff productivity
Talent development

Information/Knowledge mgmt
Delivery of internal
process
Knowledge sharing
Strategic Theme
Culture
Leadership

Competency
About Core Competency
It is the ability of an individual to do a job.
It is a set of defined behaviors that provide a structured guide
enabling the identification, evaluation and development of
behavior in individual employees.
Competency include knowledge, skills, abilities, and attributes
that form a persons job
Core competencies is the Strategic strength of an organization
It provide the way to define in behavioral terms what is that
people need to do to produce result that organization desires,
in a way it keeps with its culture.
It helps the organization to know potentially what resources
might be needed to help on employees development.
Competency aligns the performance management, learning &
development and rewards practice to reinforce key behaviors
for organizations values.