Chapter08.Group Performance Management System

For BSNL internal circulation only

E2-E3

MANAGEMENT

GROUP PERFORMANCE MANAGEMENT

SYSTEM


WELCOME

This is a presentation for the E2-E3 MANAGEMENT

Module for the Topic: GPMS

Eligibility: Those who have got the Upgradation from

E2 to E3.

This presentation is last updated on 17-03-2011.

You can also visit the Digital library of BSNL to see

this topic.


Agenda

Understand concept of Group Performance

Management System (GPMS)

Foundation of GPMS and BBSC

Groupings in GPMS of BSNL

Sample GPMS


Performance Appraisal

It is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees.It helps in understanding the employees work culture, involvement, and satisfaction. It helps the organization in deciding employee’s promotion, transfer, incentives and pay increase.


Performance Management

It is a system which manages performance.

It sets performance objectives associated with strategic and/or operational plans.

It is the system for managing, leading, organizing it and controlling performance.


GPMS concept in BSNL

It is an initiative under Project Shikhar.

It’s intent to have an objective and transparent system for assessing performance.

It is a system for Identifying KPI for individuals and various functional groups within the organization.

Assigning objective KPIs to distinct groups aligned with organizational objectives.


GPMS concept in BSNL

Assessing targets and their weightage against such KPIs in objective & transparent manner.

Used as yardstick for assessment of performance.

Providing a basis for performance related HR policies.


Foundation of GPMS

Similar with Balanced Business Score Card (BBSC) concept adopted by BSNL in 2006.

The GPMS has been introduced in 2009.

GPMS scorecards for all the group types have been designed to consist of Key Performance Indicators (KPIs).


Shortfalls of BBSC set up

adopted by BSNL

Job descriptions at an individual level were not clearly defined.

So creation of individual score card was not very objective and systematic.

The long list of activities for each division, without clear cut delineation of activities and responsibilities.


Shortfalls of BBSC set up

adopted by BSNL

So it made less conducive to effectively identify and communicate KRA (key responsibility area) of a specific post.

The large number of KPIs within each Scorecard.

Absence of critical enablers such as an appropriate organization structure, well defined processes for tracking performance and IT systems support hamper their effective implementation .


Preparation of GPMS parameter

Derived from the Vision and Strategy of the organization.PlanningLong term strategic planShort term business plan and budgetsMeasurableFocused set of measuresMeasures represent organization's plan and vision


Preparation of GPMS parameter

ReviewPlans are regularly reviewed and suitably revisedPerformance Rewards are linked to driving key measures


Evaluation of GPMS scorecards

The evaluation for groups at The corporate office: By CMD, Territorial Circles :By the Management

Committee (MC), L.no 4-2l 201O-(Restg) Date: l2th July'2010 :

North Zone Director (CM)South Zone Director (CFA)

East Zone Director (ENT)West Zone Director (HR)

Non-territorial circles: By respective corporate office Directors and Exe. Directors.

SSAs: By the respective Circle Heads


Evaluation of GPMS scorecards

KPIs measured on financial, customer / marketand operational parameters.

Overall performance assessment KPI would bedone by the person whom the group reports to.

Further, every scorecard has a parameter tomeasure customer satisfaction.

For circles which do not have any externalcustomers, the internal customers / stakeholderswould be doing the evaluation.


GPMS implementation in BSNL

Based on new organization structure of BSNL.KRA/KPIs are identified and defined on the basis of New BU (Business unit) structure, in consultation with top executives of the respective BU.Number of KPIs has kept less to have focus measurement of Key performance areas.Optimum combination of quantitative and qualitative measurement.KPIs are defined as per functional activities.


Groupings in BSNL

Category Group Type Group

types

No.of

groups

Corporate

Office

1.Consumer Fixed Access

2.Consumer Mobility

3. Enterprise

4. New businesses

5. Corporate Affairs

6. HR (Incl. Legal and

Vigilance)

7. Finance

7 7

Territorial Territorial Circle 1 26


Groupings in BSNL

Category Group Type Group

types

No. of

groups

Non

Territorial

Circle

1. Project Circle 1 5

2. Maintenance Region 1 4

3. Telecom Factory 1 3

4. Training Circle 1 3

5. QA, 6. Telecom Stores,

7. Inspections , 8. ITPC,9.

NCES, 10. Data N/W

6 6

SSA SSAs 1 330

Total 19 384


BBSC Concept

In BBSC four perspectives

The Learning and Growth Perspective

The Business Process Perspective

The Customer Perspective

The Financial Perspective


Learning and Growth

To achieve our vision, how will we sustain our

ability to change and improve.

The infrastructure that the organization must

build to create long-term growth and

improvement

Comes from:

People

Systems

Organizational procedures


Business process perspective

Every business has a value chain by which value is created

and delivered

Customer

need

identified

Identify the

markets/

create the product

Build the

product/

Deliver the product

Service

the

customer

Customer

needs to

be

satisf2ied

Innovation process Operations process Post sale service process

Innovation process : Critical to the future success of the

business.

Operations process : Needed for efficient, consistent and

timely delivery of existing product and services to the

customer.

Post sale service process: Warranty related, payment or

other activities enabling the customers to enjoy the quality

product


Customer Perspective

How are you performing from customers perspective?

What are the factors that really matter to customer?

Main concern of customers are:

Time – the time the company receives an order to the time it

actually deliver it.

Quality – Defect levels as perceived by the customers.

Service- What is the value, your product or service is creating

for the customer.


Customer outcome measures

Market Share

Retention

Acquisition

Satisfaction

Profitability

Satisfaction

Acquisition RetentionProfitability

Market Share


Financial perspective

This has to do with :

Profitability

Growth

Shareholder Value

Increasing Revenue

Cost reduction & Productivity Improvement


Linkage among four perspectives

Training

Better Process

Control

Improved

Quality

Greater Reliability

Increased Customer

Satisfaction

More purchase/Use

Greater Financial

Return

Innovation &

Training

Internal

process

Customer

Financial

For BSNL internal circulation only26

Parameters in GPMS Scorecard

Negative or Positive

Each parameter is given weightage and target (fair,

good, excellent)

Sum of weight of all parameters equals 100.

Total score against KPI=Weightage of a parameter

x performance score.

Final score=Sum total of scores for all parameters.


Targets

Derived from company’s targets conveyed

down the line.

Can be changed on review in exceptional

cases.

Must be based on accurate forecast

considering appropriate business

environment.


Targets setting against each

parameter of the scorecard. Performance level to be defined for Fair, Good and Excellent.Score to be calculated in a linear manner as per achievement. Target Performance Levels

Performance less than the fair target will get ‘Zero’ score.

Target Performance level

100 Cr

Fair Good Excellent

60 80 100

50 Cr 75 Cr 100 Cr


SSA GPMS sample- 1/5G

roup

Gro

up level

weig

hta

ge

Dim

en

sio

n

KP

I

Weig

hta

ge

% Targ

et

Performa

nce Level

Ach

vd

Ma

rks

Ach

ieve

dW

eig

hte

d

Sco

re

Fai

Good

Exce

l

C

F

A

25

%

Fin CFA revenue (Rs. Cr.) 40

C/MNet adds - (by number of subscribers)

Basic (in 000's)5

C/MNet adds - (by number of subscribers)

Broadband (in 000's)10

OpnCCR rate for Landline – 50% weightage

each for local and STD10

Opn Fault rate (LL, BB) 5

Opn% of faults cleared by next working day

(LL, BB)10

Opn

% of new services (LL, BB) provisioned

within the norm (7 days for LL, 15 days for

BB)

10

OpnOverall performance (on scale of 1 to 5 -

to be assessed by Circle Head)10


SSA GPMS sample- 2/5

30

Gro

up

we

igh

tag

e

Dim

ensio

n

KP

I

Weig

hta

ge

%

Targ

et

Performa

nce level

Ach

vd

Ma

rks A

ch

ieve

d

We

igh

ted

Sco

re

Fa

i

Go

od

Exce

l

Fin CM revenue (Rs.cr.) 40

M

o

bi

lit

y

30

%C/M

CM Net adds (by number of subs

in 000's)20

Opn BTS availability (%) 10

Opn Call drop rate (%) 10

OpnBlocked call rate - TCH

congestion (%)10

Opn

Overall performance (on scale of

1 to 5 - to be assessed by Circle

Head)

10


SSA GPMS sample- 3/5

31

Gro

up

weig

hta

ge

Dim

ensio

n

KP

I

Weig

hta

ge

%

Targ

et

Perform

Ach

vd

Ma

rks A

ch

ieve

d

Weig

hte

d S

core

Fa

i

Go

o

dE

xc

el

Fin Enterprise BU revenue( Rs .Cr) 40

E

nt

er

pr

is

e

1

5

%C/M

Number of new Enterprise Gold + Silver

accounts penetrated20

Opn MLLN circuit uptime (%) 15

Opn Average provisioning time (no. of days) 15

OpnOverall performance (on scale of 1 to 5 -

to be assessed by Circle Head)10



rou

pG

rou

p l

evel

wei

gh

tag

e

Dim

ensi

on

KP

I

Wei

gh

tag

e

%

Ta

rget

Per

fo

rman

c

e

level

sT

arg

et

ach

ived

Ma

rks

ach

ived

Wei

gh

ted

Sco

re

Fa

i

r Go

od

Ex

c

el

Oth

ers 20

%

Fin New Businesses revenue (Rs. Cr.) 20

Fin

Budget adherence on opex (% actual spend

vs. budgeted) (on items excluding those in

schedule P)

20

Fin

Overall assessment on Finance related

issues, including budget adherence, financial

planning, accounting, revenue assurance etc.

(on scale of 1 to 5 - to be assessed by Circle

Head)

20

C/MCustomer satisfaction level (including QoS)

(Scale of 1 to 5)20

Empl

devel

Overall assessment on HR related issues,

including training, recruiting, promotion,

transfers etc. (on scale of 1 to 5 - to be

assessed by Circle Head)

20



rou

p

Gro

up

lev

el

wei

gh

tag

e

Dim

ensi

on

KP

I

% W

eigh

tage

Tar

get

Performance

levels

Tar

get

ach

ived

Mar

ks

achiv

ed

Wei

ghte

d

Sco

re

Fai

r

Go

od

Exce

l

Ov

eral

l

10

%

Overall

performance (on

scale of 1 to 5- to

be assessed by

circle head)

10


IPMS

Ultimate linkage to individual performance.

Initially implemented only up to DGM level.

Gradually, the system to be expanded to

other levels.


Features of Good Score Card

4. Financial LinkageEvery objective can ultimately be related to financial

results

1. Executive InvolvementStrategic decision makers must validate and own

the strategy and related measures

2. Cause-and-Effect RelationshipsEvery objective selected should be part of a chain of

cause and effect linkages that represent the

strategy

3. Balance between outcome and leading

measures There should be a balance of outcome

measures and leading measures to facilitate

anticipatory management

5. Linkage of Initiatives and Measures: Each

initiative should be based on a gap between

baseline and target.

A good Scorecard

will “tell the story”

of your strategy in

actionable terms.


Discrimination

Failure to communicate standard

Failure to give timely feedback

Failure to allow employee to correct

performance

Inconsistency in measuring performance

Failure to document performance objectively


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Chapter08.Group Performance Management System

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