E3--E4 E4 - Welcome to BSNL Thajavur Marketing Cell...Why BSNL needs PMS? • Presently, BSNL is...

E3E3--E4 E4 MANAGEMENTMANAGEMENT

Group Performance Management System

For internal circulation of BSNL only

WELCOME

• This is a presentation for the E3-E4

Management Module for the Topic : Group

Performance Management System (GPMS)

• Eligibility: Those who have got the

Upgradation from E3 to E4.

• This presentation is last updated on

19-03-2011.

• You may also visit the Digital library of BSNL

to see current version of this topic as well as

updated version if any.


In this presentation• Introduction of PMS and its need

• Benefits of PMS

• Why BSNL needs PMS?

• Concept of Group Performance Management System

• Foundation of GPMS

• Shortfalls of BBSC set up

• Suitability of GPMS in BSNL

• Groupings for GPMS in BSNL

• IPMS and FPMS

• Sample SSA GPMS

• FAQ on GPMS/BBSC

• Conclusion


Introduction of PMS and its need

• Organizations exist for some purpose and

objectives to achieve. These objectives can be

achieved by implementing various strategies from

time to time.

• Strategies, formulated by the top management, are

implemented by the employees of the various

units/departments.

• An appropriate system to measure performance of

such functional units/departments/individuals is

must for measuring and monitoring the outcome of

these strategies so that suitable corrective actions

can be thought of, if required.


Introduction of PMS and its need• Performance measurement results can also be used

as a tool to reward outstanding performers.

• Successful organizations know that to win in today’s

competitive marketplace they must attract, develop,

and retain talented and productive employees.

• Winning organizations get their competitive edge from

a performance management system that helps them

hire talented people, place them in the right position,

align their individual performance with the

organization’s vision and strategic objectives, develop

their abilities and reward performance commensurate

with contributions to the organization’s success.


Benefits of PMS

The benefits of PMS are as under:-

• Improved productivity

• Improved employee morale

• Retention of top performers

• Increased profitability

Performance Management System (PMS) is

not only a HR tool but it is a management tool

for translating expectations of top

management into tangible results.


Why BSNL needs PMS?

• Presently, BSNL is operating in a very tough competitive

business environment. In such a scenario, it requires change

of mindset at all levels of executives and employees so that

organization can effectively compete and survive.

• BSNL needs to make massive transformational changes in its

existing performance level.

• Introduction of a PMS system will certainly help BSNL to

move toward performance oriented work culture in the

organization.

• Considering the huge employee base and thus efforts

involved in formulating PMS for individual employee, BSNL

top management has consciously decided to introduce a

Group Performance Management System (GPMS).


Concept of GPMS

The GPMS is an initiative under Project SHIKHAR of BSNL

with the intent to have an objective and transparent system

for assessing performance of employees.

It is a system for:-

• Identifying Key Performance Indicators (KPI) for individuals

and various functional groups within the organization.

• Assigning KPIs to distinct groups aligned with

organizational activities and goals.

• Assigning targets and their relative weightage against such

KPIs in objective & transparent manner.

• Carrying out assessment of performance of various groups.

• Providing a basis for performance related HR policies.


Foundation of GPMS

• GPMS is the new PMS with an implementation

approach similar to that of Balanced Business Score

Card (BBSC).

• BBSC concept was introduced by BSNL in 2006

wherein scorecards for all executives were prepared.

• GPMS was introduced in 2009 by BSNL.

• The GPMS scorecards for all the group types have

been designed to consist of KPIs to measure the

group’s performance on financial, customer / market

and operational parameters. In addition, an

overall performance assessment also forms the part

of every scorecard.


Shortfalls of BBSC set up• Job Descriptions at an individual level were not clearly

defined thus 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

made it less conducive to effectively identify and

communicate KRA (key responsibility area) of a

specific post.

• Large number of KPIs within each Scorecard as well as

absence of critical enablers such as an appropriate

organization structure, well defined processes for

tracking performance and IT systems support

hampered its effective implementation.


Suitability of GPMS in BSNLGPMS is considered suitable for implementation in

BSNL as:-

• It is based on new organization structure of BSNL.

• KRA/KPIs are identified and defined on the basis of

New Business Unit structure of BSNL, in consultation

with top executives of the respective BU.

• Number of KPIs have been kept less to have focused

measurement of Key Performance Areas.

• It is an optimum combination of quantitative and

qualitative measurement.

• KPIs are defined as per functional activities of a

group.


Groupings for GPMS in BSNLCategory Group Type Group types No. of

groups

Corporate Office

1. Consumer Fixed Access , 2. Consumer Mobility 3. Enterprise 4. New businesses5. Corporate Affairs6. HR (Incl. Legal and Vigilance)7. Finance

7 7

Territorial Territorial Circle 1 26

Non Territorial Circle

1. Project Circle 1 52. Maintenance Region 1 4

3. Telecom Factory 1 3

4. Training Circle 1 3

5. QA, 6. Telecom Stores, 7. Inspections (earlier T&D), 8. ITPC , 9. NCES, 10. Broad Band (earlier Data N/W)

6 6

SSA SSAs 1 330Total 19 384


Individual Performance Management System

• As achievements of GPMS rests on the

success of individual executives in

performing their assigned tasks, IPMS has

also been introduced with the intent to

develop an objective and transparent

system for assessing performance at the

individual level.

• IPMS will be on the lines of GPMS and all

executives are to be covered.


Field Performance Management System

FPMS has been introduced to motivate the field staff

working in following units:--

• Employees involved in sales in Consumer Mobility

(CM)

• Employees involved in sales in Consumer Fixed

Access (CFA)

• Employees involved in sales in Enterprise

• Employees involved in customer service in CSCs

• Employees involved in operational roles at Exchanges

(Indoor, outdoor and cable)

• Employees involved in operational roles in Consumer

Mobility


FPMS for employees involved in sales in CM/CFA/Enterprise segments

• Provision of reimbursement towards cost of

travel, meals, mobile (if not already provided).

• Provision of office with desk top PC having

broadband connection or laptop with data

card, sales bag etc.

• Provision of financial awards on quarterly

basis.

• Provision of KPA linked incentives on

monthly basis to channel management team

members under Project Vijay.


FPMS example: awards for sales team for Project Udaan

Name of

award

Level Frequency Amount Basis for decision

Best

sales

person

Within

Circle

Quarterly Rs. 5000/- Highest number of

connections within the

circle

Best

sales

team

Within

Circle

Quarterly Rs. 25,000/- Highest number of

connections within the

circle for the whole team


FPMS for employees involved in CSC, Exchanges and CM operational teams

�Provision of non-financial awards.

�For awards purpose, exchanges have been

categorised into four categories namely,

� Less than 1000 working lines Category-A

� 1001 to 4000 working lines Category-B

� 4001 to 10000 working lines Category-C

� More than 10000 working lines Category-D


FPMS awards for CSCs

Name ofaward

LevelType ofcategory

FrequencyAward forgroup

Award forindividualsin group

Basis fordecision

SwarnaCSC (onein eachcategory)

WithinSSA

Cat: A,B, C

Quarterly Certificateof meritwithrollingtrophy

Certificate Highestscore onKPIs forCSCs


FPMS awards for Exchanges

Name ofaward

LevelType ofCategory

FrequencyAward forgroup


Basis fordecision

Swarnaexchange(one ineachcategory)

WithinSSA

Cat: A,B, C, D

Quarterly Certificateof meritwithrollingtrophy

Certificate Highestscore onKPIs forexchanges


FPMS awards for CM operations teams

Nameofaward

Level FrequencyAward forgroup


Basis for decision

Swarnapadak

WithinCircle

Quarterly Certificateof merit withrollingtrophy

Certificate Highest score on KPIsfor CM teams

Rajatpadak

WithinCircle


Certificate 2nd Highest score onKPIs for CM teams

Kansyapadak

WithinCircle


Certificate 3rd Highest score onKPIs for CM teams


Decision on awards and distribution• The final decision on awards at the Circle level

to be made by the PGM/GM (Consumer

Mobility) after taking into the account the KPI

scores of all SSA-level CM operations teams in

the Circle.

• The final decision on awards at SSA level to be

made by the SSA Head after taking into

account the KPI scores of all Exchanges in the

SSA.

• Awards are to be given quarterly in a

ceremony at Circle and SSA level.For internal circulation of BSNL only

Sample GPMS of a SSA- 1/4G

roup

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level

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Dim

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KP

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%

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Performance Levels

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Mark

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Excel

CF

A

25%

Fin CFA revenue (Rs. Cr.) 40

C/M Net adds - (by number of subscribers) Basic (in 000's) 5

C/M Net adds - (by number of subscribers) Broadband (in 000's) 10

Opn CCR rate for Landline – 50% weightage each for local and STD 10

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


roup

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up

level

Weig

hta

ge

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Performance Levels

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Mark

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d S

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Excel

CM 30%

Fin CM revenue (Rs. Cr.) 40

C/M CM Net adds (by number of subs in 000's) 20

Opn BTS availability (%) 10

Opn Call drop rate (%) 10

Opn Blocked call rate - TCH congestion (%) 10

OpnOverall performance (on scale of 1 to 5 - to be

assessed by Circle Head)10


roup

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Excel

E & WS

15%

Fin Enterprise BU revenue (Rs. Cr.) 40

C/M Number of new Enterprise Gold + Silver accounts penetrated 20

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


roup

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Excel

others 20%Fin New Business revenue (Rs. Cr.) 20

FinBudget 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/M Customer satisfaction level (including QoS) (Scale of 1 to 5) 20

Empldevel

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

Over all

10%Overall performance (on scale of 1 to 5 - to be assessed by Circle Head)

10

Note: Marks for Fair rating = 60, Good = 80, Excellent = 100. Marks achieved for rating below Fair = 0. Achievement between Fair andGood and between Good and Excellent would be linearly scaledLegend: Fin: Finance, C/M: Customer/Marketing, Opn: Operations, CFA: Consumer Fixed Access, CM:Consumer Mobility, E&WS:Enterprise & Wholesale, KPI: Key performance indicator, LL: Land Line, BB: Broad Band, TCH: Traffic Channel, Opex: OperationalExpenditure

FAQs on GPMS/BBSC

Q.1: What is the sequence of creating GPMS scorecard?

Ans: The GPMS is created in a sequence that flows

from top. The scorecards of Company and 18 parent

units out of 19 distinct groups is created by the

restructuring cell of Corporate Office in close

coordination with GPMS nodal designates in 7

groups ( CFA, CM, Enterprise, New Business,

Corporate Affairs, Finance and HR).

For 19th distinct group i.e. SSAs, the GPMS

scorecards are prepared by Nodal designates in

respective Territorial Circle Office.


FAQs on GPMS/BBSC-cont’dQ.2: What are the important things that are to be kept in mind

while preparing the GPMS Scorecard or finalizing the

performance parameters of GPMS.

Ans: While finalizing the GPMS scorecards, it should be kept in

mind that the performance parameters chosen are :-

• Linked with strategic objectives and vision of organization

• Measurable and are not subjective

• Actionable, result-oriented and controllable

• The number of KPIs should be kept at a minimum.

• Oriented towards driving desired behavior / performance

• Capable of being benchmarked

• Unambiguous and easy to understand

• Have the largest impact on achieving strategic objectives/

Company’s Scorecard

• It should be possible to set targets against them


FAQs on GPMS/BBSC-cont’dQ.3: Can we change the targets once fixed after the

quarterly review?

Ans: The course correction is an integral part of GPMS

implementation. On review, the targets can be changed

but this should be more of exception than a practice.

Q.4: What is meant by fair, good and excellent marking

against the target?

Ans: Targets would be set against each parameter of the

scorecard. Achieving the target would result in a score

of ‘100’ for that parameter. If the achievement is less

than 100, the score would be based on the performance

level for which a score of 60 and 80 can be obtained.


FAQs on GPMS/BBSC-cont’dFor example, suppose the revenue target is 100 Crore and

performance levels are set as follows:-

Target Performance Levels

Fair Good Excellent

100 Cr. 50 Cr. 75 Cr. 100 Cr. then

The achievement level of excellent, good and fair will result in

score of 100, 80 and 60 respectively. Therefore, achievement of

100 Cr, 75 Cr and 50 Cr revenue in above cited example would

result in a score of 100, 80 and 60 respectively. Revenue less

than 50 Cr. would result in a 0 score. For achievements between

50 to 75 Cr or between 75 to 100 Cr, the marks shall be

calculated by linear scaling. The total score against a KPI would

be calculated after multiplying the weightage of a parameter with

its performance score and final score will be sum total of scores

for all parameters.


FAQs on GPMS/BBSC-cont’d

The formula for linear scaling is as under:-

Score = Score (Lower) + 20 x { T (Achieved) – T (Lower) }

T (Upper) – T (Lower)

Where:

T (Achieved) = Achieved target

T (Lower) = Target Lower than the achieved target i.e. Fair or

Good

T (Upper) = Target higher than the achieved target i.e. Good

or Excellent

Score (lower) = The score for target slab lower than achieved

target i.e. 60 or 80For internal circulation of BSNL only

FAQs on GPMS/BBSC-cont’dQ.5 : What is BBSC as a concept ?

Ans: Implementation of BBSC was the first step in

BSNL to introduce a balanced approach of

measurement of performance of individuals and

groups.

� The balanced scorecard is a management system

(not only a measurement system) that enables

organizations to clarify their vision and strategy and

translate them into action. It provides feedback

around both the internal business processes and

external outcomes in order to continuously improve

strategic performance and results.



The balanced scorecard suggests that we

view the organization from four perspectives,

and to develop metrics, collect data and

analyze it relative to each of these

perspectives:-

• The Learning and Growth Perspective

• The Business Process Perspective

• The Customer Perspective

• The Financial Perspective



� The Learning and Growth Perspective:

• Includes employee training and corporate cultural attitudes

related to both individual and corporate self-improvement.

• In a knowledge-worker organization, people -- the only

repository of knowledge -- are the main resource.

• In the current climate of rapid technological change, it is

becoming necessary for knowledge workers to be in a

continuous learning mode.

• Metrics can be put into place to guide managers in

focusing training funds where they can help the most.

• In any case, learning and growth constitute the essential

foundation for success of any knowledge-worker

organization.



� The Business Process Perspective:

• It refers to internal business processes.

• Metrics based on this perspective allow the

managers to know how well their business is

running, and whether its products and

services conform to customer requirements.

• These metrics have to be carefully designed

by those who know these processes most

intimately.



�The Customer Perspective:

• Poor performance from this perspective is a

leading indicator of future decline, even

though the current financial picture may look

good.

• In developing metrics for satisfaction,

customers should be analyzed in terms of

kinds of customers and the kinds of

processes for which we are providing a

product or service to those customer groups.



�The Financial Perspective:

• Since ultimate objective of any organization is

to make profits, timely and accurate financial

data is always a priority, and managers will do

whatever necessary to provide it.

• There is a need to include additional financial-

related data, such as risk assessment and

cost-benefit data, in this category.



Training-KSA

Better Process

Control

Improved

Quality

Greater Reliability

Increased Customer

Satisfaction

More purchase/Use

Greater Financial

Return

Innovation &

Training

Internal process

Customer

Financial

Linkages among four perspectives


FAQs on GPMS/BBSC-cont’dQ.6: Is PMS powerful enough to make expected

change in the organization?

Ans: A PMS introduced with an intention of

imposing performance-oriented culture with

emphasis on new behaviors and Core

competencies, customer focus and personal

accountability is powerful to bring change in

organization. It can be long journey of

transformation but surely significant change may

happen in organization, by adoption of integrated

strategies aligned with business goals.


Conclusion

• The GPMS system is a very important and

effective tool for measuring performance of

different groups against the targets set by

the management on various operational

fronts.

• GPMS also provides an opportunity to

assess the performance from time to time

and initiate timely corrective measures in

cases of deviations.



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