Setting Smart Objectives

Prepared and Presented By:Dr. Yaser Aref

CEO, MGP Management Consultancies

SMART Objectives Job Aid

Use the SMT+AR TableWhat result will you deliver?

How will you know you did good work?

When will you deliver your result?

How will your result add value?

On what will your success depend?

Write no more thanone bullet

Write at least one bullet,best not to exceed five

Write at least one bullet, more are possible

Must ask the question, may or may not write the answer

Must ask the question, may or may not write the answer

prefer noun and adjective

focus on what lies ahead

apply multiple measures

list conditions for success

link to organizational goal

SM

AR

T

SMART Objectives Job Aid

Job Objective PointersDon’t describe your work, drive your work.

It’s about the future, not the past. Focus on what lies ahead and what you will contribute.

Think noun and adjective. Use nouns and adjectives to name the result. Save verbs and adverbs for your action plan.

Build multiple measures into every objective.

Multiple measures increase the likelihood of your success and the quality of your product.

Identify the right measures to get the right result.

Ask yourself, “How will I know I did good work?” Good work is the right result, however it is defined.

Target Level 3 performance. Be clear about what your organization needs you to accomplish, then make it happen.

Focus on what matters most. Every contribution you make matters, though not all your contributions will be rated.

Results Performance Management Means

Evolution “change management”

• Not just short term boost

• Continuous behavioral change

• Long term business success

Business ?

• No longer easy to do business• LARGE competition. • Bad international financial climate

• Business Improvement Discussions– Identify known needs from managers– Identify unknown needs from analysis within

organization

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IntroductionOf all the functions involved in management, planning is the most important. As the old saying goes, “Failing to plan is planning to fail”. Setting goals and objectives is the first and most critical step in the planning process. Employers need to be sure all employees are well trained in how to set these important performance measurements.

This sample presentation is intended for presentation to all employees. It is designed to be presented by an individual who has knowledge of the basics of setting goals and objectives, of the employer’s own policies and practices on goals and objectives setting, tactical and strategic planning, and performance management. This is a sample presentation that must be customized to include and match the employer’s own policies and practices.

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Goals vs. Objectives

Goals• General• Intangible• Broad• Abstract• Strategic – long-range direction,

set by top executives

Objectives• Specific• Measurable• Narrow• Concrete• Tactical – short-range, set by

mangers to accomplish goals

Although the terms “goals” and “objectives” are often used interchangeably, there is a difference between them:

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Quiz – Goals vs. Objectives

Which of these are goals and which are objectives?

1. Increase profitability 2. Improve community relations3. Provide short-term disability insurance to employees by mid-year4. Improve employee computer skills

*Note to presenter: Ask “Is this a goal or an objective?” If a goal, ask what the related objective would be – if an objective, ask what the general goal might be

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Importance of Setting Goals & Objectives

• Planning is the most important management function. – As the old quote goes, “Failing to plan is planning

to fail”

• Setting goals and objectives is important because it is the first and most critical step in a company’s planning process.

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How We Set Goals & Objectives

• At (name of company) top management establishes our corporate goals each year and for the next 3-5 years as part of the company’s strategic plan.

• Under our Management by Objectives (MBO) process, individual managers use these goals to set their departmental objectives, their own objectives, and their employee’s individual objectives.

• We evaluate quality of performance of managers and employees based primarily on their accomplishment of these objectives.

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SMART Objectives

At (name of company) we set SMART Objectives:

S SpecificM MeasurableA AchievableR RealisticT Time-oriented

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Specific Objectives

Specific objectives are:

• Concrete• Detailed• Focused• Well-defined• Straight-forward• Action-oriented

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Specific Objectives cont’d.

When setting objectives that are specific, ask:

• What am I going to do? Use action verbs such as develop, execute, conduct, build• Why is it important to do this?• Who is going to be involved?• When do I want this to be completed?• How am I going to do this?

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Measurable Objectives

• Measurements for objectives help you know when you have accomplished them.

• If you set an objective that is measurable, when you complete it you have tangible evidence of completion.

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Measurable Objectives cont’d.

When setting objectives that are measurable, ask:

• How will I know when this objective has been achieved?• What measurements can I use?

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Achievable Objectives

• Achievable objectives are those that you can actually accomplish (something you can really do within the time frame set) and not an aspiration or vision.

• Achievable objectives need to challenge you but not so much so as to be unattainable or to cause frustration in being unable to complete.

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Realistic Objectives

Realistic objectives are those that you have the resources to accomplish including:

– Skills– Funding– Equipment– Staff

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Realistic Objectives cont’d.

When setting objectives that are realistic, ask:

– Do I have the resources to accomplish?– Do I need to rearrange my priorities to

accomplish?– Is it possible to complete this objective?

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Time-Oriented Objectives

• Time-oriented objectives are those which have deadlines for completion. The time frames create sufficient urgency and lead to action.

• The deadlines, just as with overall objectives, must be achievable and realistic.

• For a complex objective, break into small parts with a date for completion for each.

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When setting objectives that are time-oriented, ask:

– What is the earliest yet achievable and realistic date for this objective to be completed?

– Have I included this date in the statement of the objective?

Time-Oriented Objectives cont’d.

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Course Evaluation

Please be sure to complete and leave the evaluation sheet you received with your handouts.

Thank you for your attention and interest!

Foundation of Learning

Share your experiences. They provide valuable insight.

If you are doing something that gets the results you want, keep doing it.

Take the information you learn here and put it into your own style.

Goals and Objectives• Setting SMART Objectives (An Overview)• Getting SMARTer• Not only being SMART, but remembering what is

Important• SMART –The way you need it explained• Getting Your Objectives Accomplished = Goal >

Objectives > Strategies > Tactics• Measurements and ROI• Working backwards to get ahead

Polling Question #1

I know the difference between a goal and objective (It’s ok if you’re not sure)

Yes

No

Goals and Objectives Defined

• Goals relate to our aspirations, purpose and vision. For example, I have a goal of becoming financially independent.

• Objectives are the battle plan, the stepping stones on the path towards the achievement of my goal.

Getting SMARTer• Process objectives

– Lets you know what you are doing and how you will do it; describes participants, interactions and activities

• Impact objectives– Lets you know what the long term implications of

your program/activity will be; describes the longer term impact on your target audience or organization

Getting SMARTerOutcome objectives

Lets you know how you will change attitudes, knowledge or behavior (short term); describe the degree to which you expect this change

Personal objectivesPersonal development is an ideal application for SMARTer objectives. Often we see SMARTer objectives written for project management or business and performance management, however as individuals in our personal development plans, SMARTer objectives are also a valuable formula within which to set and individual measure performance.

Key Components of a Work Objective

ConditionsSets the situation and/or environment in which the staff member is required to work

within...Acceptable levels of Performance

Consider what level of performance is deemed acceptable in terms of Quality (i.e. how effectively the work should be performed), Quantity (i.e. how much is produced) and/or Timeliness (i.e. how quickly or in what timeframe the outcome is to be achieved).

MeasuresInclude clear measures (quality, quantity, cost, timeliness and frequency of

completion) so both parties can track progress and readjust priorities if necessary, to ensure performance outcomes can be achieved

Polling Question #2

I have used the SMART model of setting either goals or objectives before in my work or personal life

Yes

No

SMART

Examples of SMART Objectives

1. Relationship ObjectivesTo host quarterly FOL activities to build membership by

10%. (20 new members)2. User Ship ObjectivesTo increase the circulation of our DVD collection by 5%

in the next 3 months.3. Promotional ObjectivesTo increase awareness of the library’s Adult

Programming by adding banners to the library’s website and front entrance for 6 consecutive months beginning in January.

Examples of SMART Objectives4. Objectives for SurvivalTo survive the current economic recession.5. Objectives for GrowthTo increase the size of our audio book collection by

3% in 2011. To increase the number of public use computers by 50% in fiscal year 2011-2012.

6. Objectives for BrandingTo make our library the preferred library of Young

Adult Readers in Pinellas County by 2013.

Tests for a Good Objective—A Memory Tool

• It must be Specific,• It must be Measurable,• It must be Attainable,

There need to be enough Resources

• It must be Timed, and• It must be IMPORTANT

How Do You Know What’s “Important”?

Time Frame

SMART objective are the stepping stones towards the achievement of our goals……

Specific• WHAT am I going to do? This are best written using

strong, action verbs such as conduct, develop, build, plan, execute, etc. This helps your objective to be action-orientated and focuses on what’s most important.

• WHY is this important for me to do?• WHO is going to do what? Who else need to be

involved?• WHEN do I want this to be completed?• HOW am I going to do this?

SpecificDiagnostic Questions

• What exactly are we going to do, with or for whom?• What strategies will be used?• Is the objective well understood?• Is it clear who is involved?• Is it clear where this will happen?• Is it clear what needs to happen?• Is the outcome clear?• Will this objective lead to the desired results?

Measured

If the objective is measurable, it means that the measurement source is identified and we are able to track the results of our actions, as we progress towards achieving the objective. Measurement is the standard used for comparison.

Diagnostic Questions• Can we get it done in the proposed timeframe?• Do I understand the limitations and constraints?• Can we do this with the resources we have?• Has anyone else done this successfully?• Is this possible?

Realistic

Objectives that are achievable, may not be realistic….. however, realistic does not mean easy. Realistic means that you have the resources to get it done. The achievement of an objective requires

Time Bound

Time-bound is defined as setting deadlines for the achievement of the objective. Deadlines create an important sense of urgency. If you don’t set a deadline, you will reduce the motivation and urgency required to execute the tasks. Deadlines create the necessary urgency and prompts action.

Goals vs. Objectives

• Goals are your general intentions, the big picture aims. Your objectives are the outcomes that represent achievement of that goal. Things you can actually observe. In order to be classified as an objective, something has to be measurable. You need a way of defining whether or not you have completed them successfully

Measurement and ROIMeasuring success, however, can be different than ROI.

You can have successful outcomes that are not measurable in terms of dollars. Qualitative ones like awareness and reach, and quantitative ones like website traffic.

Working Backwards From Your Goal to Get Ahead

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Demand the best from yourself,because others will demand the best of you. . . .

Successful people do not simply give a project hard work. They give it their best work.”

Win Borden

Becoming An Agility Master

• Great leaders have learned the art and science of mastering self-improvement and time management

• In many ways, these principles apply to salespeople

• To be effective in sales, one must have courage and a positive attitude, even in the face of adversity

Six Aspects of Leadership

• Each aspect can be applied to selling and to life in general1. Having a set of beliefs and sticking with them2. Optimism3. Courage4. Relentless preparation5. Teamwork6. Communication

Mayor Rudy Giulianni, from a speech given to the Direct Selling Association on June 11, 2003

Self-Discipline

• Learning to manage oneself and one’s time requires self-discipline, which requires determination

• Determination begins with a purpose or a “calling,” the creation of passion, which drives one toward reaching specific goals

“Your dreams will not progress to failure unless you fail to progress”

Fern Jones

Becoming Self-Disciplined

• Self-discipline is defined as making a “disciple” of one’s self– Becoming one’s own teacher, trainer, coach,

disciplinarian

• Becoming disciplined helps salespeople develop and manage their personal and professional goals (their purpose)

Source: William J. Bennet, The Book of Virtues

Habits: Powerful Factors

• A good habit, consisting of three elements, is defined as “the intersection of knowledge”

1. Knowledge: the what to do2. Skill: the how to do3. Desire (motivation): the want to do

Source: Stephen Covey, The Seven Habits of Highly Effective People

Seven Habits of Highly Effective People

• Stephen Covey’s seven habits are:– Be proactive– Begin with the end in mind– Put first things first– Think win/win– Seek first to understand and then to be

understood– Synergize– Sharpen the saw

Refer to Table 13.1--How the Seven Habits Apply to Salespeople

Sharpen the Saw

Effectiveness and Efficiency• Successful people are accountable for how

they manage both themselves and their time– Managing oneself is largely concerned with

learning how to make oneself more effective– Managing time is largely concerned with making

oneself more efficient

“Always demanding the bestof oneself, living with honor, devoting one’s talents and gifts to the benefit of

others—these are the measures of success that endure when material things have passed

away”

Gerald Ford

Managing Oneself

• When people engage in self-management, they are engaging in a practice of determining what qualities lead to agility and success

• Self-management also involves learning how to develop those qualities to build and maintain relationships

Success In Today’sKnowledge Economy

• Success in today’s knowledge economy comes to those who know:– Their strengths– Their values– How they best perform

Accountability

• Why some people succeed and others do not is largely due to how they manage their accountabilities

• Accountability refers to being responsible for someone or some activity

– Two facets1. Simply performing the activities specified2. How effectively the person performs those activities

Maintaining Accountability

• Maintaining accountability involves several aspects:– What the salesperson wants to be– How the salesperson is going to get there– The salesperson’s assessment of how she is doing

“A great attitude does much more than turn on the lights in our worlds; it seems to magically

connect us to all sorts of serendipitousopportunities that were somehow

absent before we changed”

Earl Nightingale

Attitude: The Great Motivator

• The difference between the professional and the amateur is more a matter of attitude

• Having the agility to compete successfully depends on many things, but high on the list is attitude

• Attitude conveys a zeal for the work and a sincerity of interest in it

Image

• A professional image is extremely important• Image is a function of both physical qualities

and personal qualities• A person’s image is a mental picture of what

others think of that person• Remember, a person never gets a second

chance to make a first impression

Review Chapter 7--Attention

Physical Qualities

• Physical qualities are those that a customer can see or hear

• The physical dimension of “sharpen the saw” is caring for our bodies– Eating the right foods– Exercising– Getting enough rest and relaxation

“Success Breeds Success”

People who look successful will be perceived as successful

Personal Qualities of Agile Salespeople

• Ego Drive• Empathy• Commitment• Maturity

• Personal Magnetism• Sincerity• Self-Confidence• Trainability

Refer to Table 13.3--Qualities of Successful Salespeople

Ego Drive

• Ego Drive is a balance within oneself– Energy:

• Some goal must energize the salesperson– Image:

• The salesperson must have a good self image– Optimism:

• The salesperson must remain optimistic about achieving her goal

Empathy

• Throughout Selling ASAP, the importance of having empathy has been emphasized

• Empathy is the capacity to participate in another person’s feelings or ideas

• Agile salespeople can put themselves in their customers’ situations

• Only with empathy can salespeople truly understand customers and inspire them

Commitment

• The spiritual dimension of “sharpening the saw” has to do with commitment to one’s value system

• A person’s value system inspires that person and affects how he treats other people– In a sales context, commitment encompasses the

feelings a salesperson has toward the various aspects of his sales career and his customers

Maturity

• A mature person is one who can make personal adjustments to people and circumstances

• Salespeople show maturity in their ability to control personal feelings

• Self-control is a necessary attribute of the successful salesperson

Review the Social Styles Matrix in Chapter 5

Personal Magnetism

• Personal magnetism is a combination of enthusiasm, intelligence, and smartness

• It is a trait that strongly attracts others to those who have it

• Salespeople who have personal magnetism are just that much more ahead of their competition

“Sincerity and truth arethe basis of every virtue”

Confucius

Sincerity

• A mental dimension of “sharpening the saw" is sincerity

• Sincere salespeople develop trusting relationships with customers– Sincerity convinces the prospect that the

salesperson knows what she is talking about– Sincere salespeople are truly convinced that their

products and services will meet their customers’ needs and wants

Self-Confidence

• Self-confidence is– The belief in oneself or one’s own abilities– The belief that success comes from hard work and

intelligent effort, not luck• Covey’s first habit, be proactive, means that

salespeople must take responsibility for what they do– Taking initiative requires self-confidence

Refer to Table 13.2--How Salespeople Can Develop Self-Confidence

Trainability

• Successful people respond well to training and view learning as an opportunity for improving themselves

• Achievers are those who thrive on new data and welcome a new challenge

Complacency

• Complacency is feeling secure and ignoring any threats that exist

• Complacency can erode salespeople’s relationships with their customers

• Salespeople who become complacent risk using obsolete sales tactics

Refer to Table 13.4 Things Salespeople Should Avoid

Managing Time

• Covey’s third principle deals with prioritizing• The primary reason people cannot find time to

be reflective is that they mix up what is urgent and what is important

“People become addicted to the urgent.They simply define important as urgent. They neglect preventive thinking, they neglect long-term strategic thinking, they neglect the building of high trust relationships, and they are consumed by an addiction called urgency”

Stephen Covey

Importance and Urgency

• Four combinations of importance and urgency relate to activities in which salespeople engage:– Not important, not urgent– Not important, but urgent– Important, but not urgent– Important and urgent

How Much Is Time Worth?If annual

earnings are . . .Every hour is

worth approximately . . .

$25,000 $13$30,000 $15$35,000 $18$50,000 $26$75,000 $38

$100,000 $50$200,000 $102

It’s About Time

• Time is a precious resource that should be used wisely

• The allocation of time between nonselling and selling activities represents one of the salesperson’s most important challenges

• The key for salespeople in building long-term relationships is to make sure that nonselling time has a focus

Success Is a Race Against Time

• Advanced technology has accelerated the pace of work life

• Time is part of the agile professional’s inventory

• Agile sales professionals adjust their work habits to meet the changing demands on their time

The work you do between 8:00 A.M. and 5:00 P.M. is what you get paid to do

The work you do between 5:00 P.M. and 8:00 P.M. is what gets you promoted

Professional Selling Efficiency

• Efficiency is often described in the sales profession in the form of advice: “Plan your work, and work your plan”

• The time-management challenge for salespeople is to separate the unnecessary from the essential

• Salespeople must learn to assign priorities to important activities

Planning

• Planning involves setting SMART objectives – Specific– Measurable– Attainable– Realistic– Time-based

Cycles of Productivity

• Productivity involves making the clock work to a person’s advantage

• Individuals must determine their own peak periods and use them to their advantage

• Salespeople should do the most demanding activities when they are at their best

Suggestions for Managing Time

• Set goals• Manage interruptions• Clear the clutter• Use multiple contact media• Learn to say no

• Manage appointments

• Call on prospects who can buy now

• Put a time value on entertainment and travel

• Increase personal efficiency

Setting Goals• By setting goals, people know exactly what

is to be accomplished and where they want to be

• In order to be effective goals must:1. Be in writing2. Be specific and relate to results3. Be realistic4. Have a time schedule and a target date for

finishing each step as well as each goal

Refer to Table 13.5--Possible Goals for the Salesperson

Managing Interruptions

• Constant day-to-day interruptions are huge time-wasters for people– Unnecessary visits– Unplanned social conversations and meetings

• Self-sabotage is another form of wasting time– Procrastination– Perfectionism

Clearing the Clutter

• A good way for salespeople to eliminate clutter and get organized is to – Standardize all routine tasks– Consolidate tasks by combining separate but

similar ones– Redistribute work to the appropriate people– Anticipate what is to come by identifying tasks

that can be done in advance

Managing Appointments

• Salespeople should work cold calls and appointments concurrently because this maximizes the salesperson’s available time

• Many salespeople use both appointments and cold calls, reserving their cold calls for fact gathering and finding out about a company’s products

Refer to Table 13.6 Working Appointments and Cold Calls

Calling on ProspectsWho Can Buy Now

• The salesperson’s best opportunity to impress prospects is on the first call

• The average cost of a sales call is increasing• Calling on customers who are not “real”

prospects costs a lot of money

Personal Efficiency

• Salespeople who are striving to increase their efficiency should record their transactions using:– A Personal Digital Assistant (PDA)– A Pocket Calendar or Day Planner– A Tickler File

Those who are persistent and who work hard and work smart can fulfill their visions

Going Back In Time

• The following are people who believed in themselves in spite of criticism from others– Michelangelo– The Wright Brothers– Benjamin Franklin– Henry Ford

Can you name a few?

Stepping Out on Faith

• History provides many accounts of individuals who stepped out on faith with an idea—with a dream

• Their belief system, along with determination and perseverance, allowed them to run with purpose, in spite of criticism from the masses

PerseverePersistPursue your dreams with courage

and optimism

The Authors of Selling ASAPEli Jones, Carl Stevens & Larry Chonko

Believe

College of Micronesia - FSMPlanning & resources committee

September 23, 2009

Performance Budget

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Performance budgeting - guiding principles

• Be focused on outcomes• Provide simple, accessible information• Be understood and used by all• Be flexible and responsive to the customer• Support interdepartmental efforts• Measure achievement• Encourage continuous improvement• Assist with strategic planning and demand

management

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Performance budgeting - what it does

States desired core outcome to be achieved Measures the success in achieving results Helps focus on the high-level outcomes desired Makes the budget more understandable and relevant to the

community Empowers staff with flexibility Shows success more comprehensively and clearly (Measures

overall service effectiveness) Better alignment:

• organizational structure, processes, customer-driven, performance appraisal, training

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Performance based budgeting and management

• Links $$ with results• Focuses government on key priorities• Provides legislature with more information to set

budget• Enables holding departments accountable• Provides monitoring and reporting framework• Provides managers information necessary to improve

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IPOLO

Input Process/Activity Output Outcome

Link

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What are outcomes?

•They define the purpose of a service• Why are we here?• What results can we expect from our efforts?

•Programs are created around outcomes•Only core outcomes are measured

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Program outcomes statements WHY? (outcome)

A statement of the ultimate goal HOW? (services)

A statement of the broad service areas HOW WELL? (measures)

Specific measurements of success Four standard measures: Customer Satisfaction, Cost

Efficiency, Budget/Cost Ratio, Individual Measures

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Measures How Well? Measurement of the Success in Achieving the Core

Outcome(s).

Only high level measures should be used.

The outcome measures should focus on quality, effectiveness and efficiency.

What results you need to determine whether the purpose has been met.

What performance targets (service standards) should be set?

Is there at least one measure for each “by” or “through” (strategies)

statement?

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Measures Be based on program goals or objectives that tie

to a statement of program mission or purposeMeasure program results or accomplishmentsProvide for comparisons over timeMeasure efficiency and effectivenessBe reliable, verifiable and understandableBe reported internally and externallyBe monitored and used in decision-making

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Accreditation issues• Linking

– Planning– Assessment (including program review)– Resource allocation

• Commitment to continuous improvement• Culture of evidence

– No “trust me”– Data is presented to support statements– Assumptions are recognized as assumptions and tests are

made to determine there validity

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What is in place at COM-FSM? Strategic plan (planning)

Sets mission, values and priority goals of the collegeContinuous improvement cycleBalanced scorecard – key results by strategic goal (measures)Improvement plans (IAP worksheet #1)

Links to institutional mission and goals (links to institutional outcomes to be included in revision)

Links to program mission and goals What is to be accomplished (results) Strategies by which it will be accomplished Criteria for success established Linked to revised performance evaluation for supervisors

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What is in place at COM-FSM? IAP Assessment Process

• Assessment plans (IAP worksheet #2)– Links to intuitional mission and goals– Links to program mission and goals– Evaluation questions for each improvement outcome/objective – Criteria by which you determine success– Data sources, sampling analysis identified– Timelines and who is responsible

• Assessment reports (IAP worksheet #3)– Were the Improvement outcomes/results achieved to the specified

criteria?– Closing the Loop – linked to program and institutional mission and goals

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What is in place at COM-FSM? IAP Assessment Process

• IAP Handbook– Background on quality instruction and services– Definition of assessment– Assessment techniques– Worksheets & directions

• Improvement plan - objectives/outcomes for performance budget (worksheet #1)

• Assessment plan (worksheet #2)• Assessment report – closing the loop (worksheet (#3)

– Assistance with student learning outcomes and services objectives/outcomes

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What is in place at COM-FSM?

• Policy on continuous improvement cycle– Links

• Strategic plan• IAP assessment• President’s retreat (priority setting)• Budget (performance)

– Processes and procedures to follow at each stage– Focuses the college on continuous improvement at

all levels

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What’s remaining? Performance budgeting (putting in place)

• Determines what is to be accomplished– Based on IAP improvement plan (worksheet #1)– Impacted by assessment report that determines if success criteria was

achieved for key results– Closes the Loop on the improvement cycle (worksheet #3)

• Allocates resources based on results to be obtained• Recognizes success and failure• Drives line item budget• Links budget items to what is to be accomplished• Basis for monitoring and reporting• Allocates time as well as dollars ($)

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Key results/outcomes for COM-FSM

Institutional & campus levels Graduation rates

Based on meeting institutional, program and course student learning outcomes Retention rates

Progression Persistence

Transfer rates (internal & external) Course completion rates Program completers Job placement Employer satisfaction Others.

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Quality, effectiveness and efficiency • Improvement of quality of services

– Instructional techniques that promote increased student learning (meeting student learning outcomes at course, program and institutional level)

– Satisfaction rates (surveys to be administered in mid October) for colleges programs and services (instructional, student and administrative services)

• Students• Faculty/staff

• Effectiveness and efficiency– Increased productivity (even with reduced resources)– Increased accuracy– Increased satisfaction

• Rating on student services and administrative services program rubrics– Assists with setting improvement needs (student services developed, administrative

services under development)

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Roles & responsibilities• Vice President’s and Campus Directors

– Ensure that the sum of instructional, student and administrative services result in improvement of key results at each campus and in each service area.

– Ensure that key results/outcomes are meet– Ensures focus on clients (students, community, leaders)

• IC, SSC, Office Directors– Ensure that programs and offices support key results/outcomes of the

college– Continually improving quality, effectiveness and efficiency of instruction

and program services– Ensures focus on clients (students, community, leaders)

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Changes • What gets measured gets done.• If you don’t measure results, you can’t tell success from failure.• If you can’t see success you can’t reward it.• If you can’t reward success, you may be rewarding failure.• If you can’t recognize failure, you can’t correct it.• If you can demonstrate results, you can win public support.• Systems and culture must change• Push authority and flexibility to lowest levels• Aligning organizational infrastructure to support a performance

management environment• Evolutionary process -- not a quick fix

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Implementation Issues• Determine results to be obtained (quantities, high level)

– Measures & data sources• Writing SMART Objectives/outcomes with by or through strategies &

activities– Identify outputs for use with FSM BPS

• Link to results and SMART objectives– Financial resources ($ allocation)– Human resources (time allocation)

• Monitoring & reporting– Reporting accomplishments against plans

–

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Changes• Focus on results/outcomes• Accountability defined at institution, campus, program levels

– Success recognized– Failure recognized– Rewards and incentives for quality work

• Transparent in allocation and use of resources• All programs and services addressed• Monitoring & reporting

– Accomplishments/results against plans– Measures

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SMART goals and objectives

• S = Specific• M = Measurable• A = Attainable• R = Realistic• T = Timebound

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SMARTer, C-SMART & SMART - SSMARTer

SMART objectives that areExtendingReviewed

C – SMART SMART Objectives that are also CHALLENGING

SMART – S SMART objectives that are also stretching

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Types of objectivesProcess objectives

lets you know what you are doing and how you will do it; describes participants, interactions and activities

Impact objectives lets you know what the long term implications of your program[me]/ activity will

be; describes the longer term impact on your target audience or organization Outcome objectives

lets you know how you will change attitudes, knowledge or behavior (short term); describe the degree to which you expect this change

Personal objectives SMARTer objectives are often written for project management or business and

performance management, however as individuals in our personal development plans, SMARTer objectives are also a valuable formula within which to set and individual measure performance.

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Specific

S Specific Stimulating SimpleStretchingSuccinctStraight forwardSelf owned Self managed Self controlled SignificantStrategicSensible

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Measurable

M Measurable Motivating ManageableMeaningfulMagicalMagneticMaintainableMapped to goals

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AchievableA Achievable Appropriate Actionable

AttainableAmbitiousAspirational Accepted/ acceptableAlignedAccountableAgreedAdaptedAssignableAs-if-nowAdjustableAdaptable

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RealisticR Realistic Relevant Results

OrientatedResources are adequateResourcedRewardingRecordedReviewableRobustRelevant to a mission

125

TimeboundT Time-..

boundlimiteddrivenconstrainedrelatedphasedsensitivespecificstampedlined

Tangible- TrackableTraceableTimed/ TimelyToward what you want

 

 

126

SMARTer Extending & ReviewedE Extending Exciting Evaluated

EngagingEnergisingEthicalEnjoyable

R Reviewed Rewarding RecordedRealisticRelevantResourcedResearch Based

127

DefinitionsSpecific Measurable Achievable Realistic Time

Objectives should specify what they need to achieve

You should be able to measure whether you are meeting the objectives or not

Are the objectives you set, achievable and attainable?

Can you realistically achieve the objectives with the resources you have?

When do you want to achieve the set objectives?

128

Detail SpecificAcronym element

Description Diagnostic Questions

Specific Specific means that the objective is concrete, detailed, focused and well defined.

The objective must be straight forwards and emphasize action and the required outcome.

Specific also means that it’s results and action-orientated.

Objectives need to be straightforward and to communicate what you would like to see happen. To help set specific objectives it helps to ask:

WHAT am I going to do? This are best written using strong, action verbs such as conduct, develop, build, plan, execute, etc. This helps your objective to be action-orientated and focuses on what’s most important.

WHY is this important for me to do?

WHO is going to do what? Who else need to be involved?

WHEN do I want this to be completed?

HOW am I going to do this?

 

What exactly are we going to do, with or for whom?

What strategies will be used?

Is the objective well understood?

Is the objective described with action verbs?

Is it clear who is involved?

Is it clear where this will happen?

Is it clear what needs to happen?

Is the outcome clear?

Will this objective lead to the desired results?

129

Detail Measurable Measurable If the objective is measurable, it means that the

measurement source is identified and we are able to track the actions as we progress towards the objective. Measurement is the standard used for comparison.

For example, what financially independence means to one person, may be totally different compared to what is means for another.

If you cannot measure it .. you cannot manage it

It’s important to have measures that will encourage and motivate you on the way as you see the change occurring, this may require interim measures.

Measurements (and the visible progress) go along way to help us to know when we have achieved our objective.

How will I know that the change has occurred?

Can these measurements be obtained?

 

130

AchievableAchievable Objectives need to be achievable, if the

objective is too far in the future, you’ll find it difficult to keep motivated and to strive to attain it.

Objectives, unlike your aspirations and visions, need to be achievable to keep you motivated.

Objectives need to stretch you, but not so far that you become frustrated and lose motivation.

Can we get it done in the proposed timeframe?

Do I understand the limitations and constraints?

Can we do this with the resources we have?

Has anyone else done this successfully?

Is this possible?

 

131

RealisticRealistic Objectives that are achievable, may not

be realistic….. however, realistic does not mean easy. Realistic means that you have the resources to get it done.

The achievement of an objective requires resources, such as, skills, money, equipment, etc. to the task required to achieve the objective. Whilst keeping objectives realistic, ensure that they stretch you.

Most objectives are achievable but, may require a change in your priorities to make them happen.

Do you have the resources available to achieve this objective?

Do I need to revisit priorities in my life to make this happen?

Is it possible to achieve this objective?

 

132

TimeboundTime Time-bound means setting a

deadlines for the achievement of the objective. Deadlines need to be both achievable and realistic.

If you don’t set a time you will reduce the motivation and urgency required to execute the tasks. Agreed Time frames create the necessary urgency and prompts action.

When will this objective be accomplished?

Is there a stated deadline?

 

133

Writing SMART objectives

• Don't try to use that order M-A/R-S-T is often the best way to write objectives.

Writing SMART objectives

• Measurable is the most important consideration.

• You will know that you've achieved your objective, because here is the evidence.

Measurable

• Summary: Is there something measurable to assess progress towards the objective?

Achievability

• Summary: With a reasonable amount of effort and application can the objective be achieved?

Realistic

• Summary: Can the people with whom the objective is set make an impact on the situation? Do they have the necessary knowledge, authority and skills?

SpecificWho is going to do how much of what by when?

• By September 2007, all health educators in our district will have participated in a district-wide mapping and alignment workshop.

• By January, 2008 all health educators in our district will have completed an update to our k-12 health curriculum scope and sequence.

Specificity

• Summary: Is there a description of a precise or specific behavior/outcome which is linked to a rate, number, percentage or frequency?

Time based

• In the objective somewhere there has to be a date

• (Day/Month/Year) for when the task has to be started (if it's ongoing) and/or completed (if it's short term or project related).

• Simply: No date = No good.

Types of Organizations

Autocratic Organization: senior leader or Founder use command and control based on assumption that they have all the answers

Hierarchical Organization: chain of command is observed so that ideas are filtered or killed and a select few make it to top

Learning Organization: Individuals takes responsibility for continued self development but organizing wide knowledge creation is not ultimate goal

Teaching Organization: Everyone is expected to contribute to organization’s knowledge base by teaching others across boundaries

Empowerment Organization: Everyone is empowered to function as per the required needs of the organization and the department he/she leads

Change at all Levels

Understand Mission Statement & Vision Clarity

Skills Development & Improvement by Training

Incentives & Bonuses

Resources, Training &Education

UnderstandingAction Plan

Reliance On

Alignment through dialogue

and authority

Commitment and

Contribution by all

Employees to strategy

Vision & values

Level of

Knowledge creation

Sharing Best

practice And

Knowledge Across

boundaries

Low Low Low Low

High High High High

Autocratic Organization: the senior leader or the Founder use command & control based on the Assumption that they have all the answer

Hierarchical Organization: the chain of command is observed so that ideas are filtered or killed and a select few make it to the top leaders

Learning Organization: Individual takes responsibility for continued self development but organizing wide knowledge creation is not the ultimate goal

Teaching Organization: Everyone is expected to contribute to the organization’s knowledge base by teaching others across boundaries.

Empowerment Organization: Everyone is empowered to function as per the required needs of the organization and the department he/she leads

Elements to implement successful change

False Starts

Vision Skills Incentives Resources Action Plan

Frustration

Little Change

Anxiety

Confusion

CHANGE

Skills Incentives Resources Action Plan

Vision Incentives Resources Action Plan

Vision Skills Resources Action Plan

Vision Skills Incentives Action Plan

Vision Skills Incentives Resources

Leadership Challenges• Autocratic leadership expectations

– Exhausted leaders– Disempowered employees

• Poor problem solving– Exhausted leaders– No accountability or responsibility taken by

employees• Poor Work-Life Balance

– Exhausted leaders– Exhausted employees– Less than ideal decision making

On the road to “change “ Management vs. Leadership

• Innovate• Ask what and why • Focus on people • Do the right things • Develop • Inspire trust • Longer-term perspective • Challenge the status-quo • Have an eye on horizon • Originate • Are their own person • Show originality

• Administer• Ask how and when• Focus on systems• Do things right• Maintain• Rely on control• Short-term perspective• Accept the status-quo• Have an eye on bottom line• Imitate• Emulate the classic• Good soldier• Copy

Zaleznik - 1989

Programme Objectives

Tangible & Intangible IndicatorsBalanced Objectives MatrixStrategies & Relations with Balanced ObjectivesBalanced Objectives Cards ApplicationBalanced Objectives Road MapMeasurement of Competitiveness & Quality Scale

Programme ContentsManagement by Objective & ConceptsDelving into quality Perspective {concepts}Procedures & Operations from Quality PerspectiveHR& Investment for Development and EducationChange from tangible to intangible indicatorsBalanced Objectives and Strategic Maps MatrixScales of Procedures Competitiveness & Quality

Management by objectivesDelving into Quality ConceptQuality & Procedures (operations)HR& Investment for Development & EducationScale for ExcellenceBalanced Objectives & Strategic MapEmployees Performance Evaluation

Management Old Mindset Fredrik Taylor -1856

ProfoundKnowledge

- Leadership Process- Human Resources Innovation- Learning- Change Mindset

Motivate by money only Employees are lazy Fear is the only solution Do not trust employees Customers care about price only Productivity & Efficiency Hierarchy is the answer Protect local industry Management by objectives Conflict between departments

Change Old mindset to escape this frame of

Reference to innovate

The Madness of Management• The trouble is, some mangers

believe they can carry on doing the same things, yet achieve different results, but…

• If you always do what you always did, you’ll always get what you always got!

The biggest enemy of sustained growth is “cultural lock-in”, the phenomenon by which managers get attracted to existing products and processes

To successfully achieve the changes needed, we will require a balance of hard and soft skills. We’ll need some different behaviors. And some different thinking

Quality Profound Knowledge in Knowledge Age

Industrial Age Knowledge AgeLeadership Status & Promotion SelectionManagement Controlling Employees Authorization and

enablingStructure Hierarchical &

BureaucraticHorizontal & Flexible

Motivation External InternalCommunication Profitable & Short Term Long Term Balanced

ObjectiveEducation Top to Bottom Bottom TopTraining Acquired Technical

SkillsPlanned Training & Development

Employees Costs and Charges Investment, Development Education

Balanced Scorecard Historical Lock

• Industrial Revolution Age1850 -1975

Financial indicatorsProductManagement, Think tanks &

LaborersLack of Customer careQuality of ProductHistorical Perspective

Balanced Scorecard Historical Lock

• Industrial Revolution Age1850 -1975

One segment for customersSeparate Sections & ProceduresSeparate Relations (Purchases,

Manufacturing, Selling, Tangible Objectives Evaluation)

Balanced Scorecard Historical Lock• Information & Knowledge Age

1975- Date

Balanced IndicatorsProduct & ServiceHuman Resources & CreativityCare for Customers & importersQuality of Product & ServiceProspect & Compatibility

Management by Objectives (1970)• Tangible Financial Indicators• Distrust for Human Resources• Lack of Customer Care• Lack of Measuring & Developing

Procedures

Management by Balanced Objective (2000) Intangible Quality Indicators Human Resources Procedures Customers

Increasing Financial Value Concept for Intangible Resources in the International Organization

Financial Indicators 34%Customer Indicators 22%Operations & Procedures 22%Developing & Educating Human Resources 22%Total 100%

Current Evaluation of International Auditing Firms. Customers’ realization of the company influence the market value & share accounts payable & capital evaluation which influence performance and resultsDow Market Value 21 BillionDow Account Payable 8 Billion

75% of the companies Market Value are from intangible resources. Intangible resources include: Creativity, Human Resources, Customer Relations, Marketing

1984(38%)

199462%

200475%

20yrs

10yrs

1yr

To achieve excellence..Something has to change…Mindset…Attitude..Behaviours

“The significant problem we face cannot be solved by the same level of thinking which caused them “

Albert Einstein

Thinking

Systems

Outcomes

Learning Organization• An organization that creates, acquires, transfers, and retains

knowledge. It’s particularly good at changing its behaviour to reflect new knowledge and insights.

Peter Senge’s five core concept (The Fifth disciplines)

1. Personal Mastery (growth driver)2. Building Shared Vision (Develop a Common Future)3. Team Learning (Dialogue, Skillful discussion)4. Mental Models – hidden Assumptions & Beliefs5. System thinking

Integrate all the others, body of knowledge and tools that help people see the pattern in complex system

A Learning Organization has the capability to learn new things and change the way it behaves…

Evolution of Teaching Organization

Reliance On

Alignment through dialogue

and authority

Commitment and

Contribution by all

Employees to strategy

Vision & values

Level of

Knowledge creation

Sharing Best

practice And

Knowledge Across

boundaries

Low Low Low Low

High High High High

Autocratic Organization: the senior leader or the Founder use command & control based on the Assumption that they have all the answer

Hierarchical Organization: the chain of command is observed so that ideas are filtered or killed and a select few make it to the top leaders

Learning Organization: Individual takes responsibility for continued self development but organization wide knowledge creation is not the ultimate goal

Teaching Organization: Everyone is expected to contribute to the organization’s knowledge base by teaching other across boundaries.

Results

Achieving results by Empowering, Motivating & Leading People

Information

Material

People

Money

HR

Money

IT

Material

• Plan• Organize• Direct• Control

• Motivate • Empower• Lead• Trust

Quality

Financial indicatorsCustomer LoyaltyInternal ProcessHR Development

Balanced Scorecard

Traditional Management

Globalization Leading

H.R Communication Competencies (Iceberg Model)

Skills• Technical• Human RelationsKnowledge• Experience• Education•Training

Communication

2

1

Automatic level of Communication

Attitudes• MotivesBehaviours• Concept• Self• Traits

The power of your mind – the automatic level, the subconscious mind, When we learn something we use the conscious part, As knowledge develop it is stored in the subconscious “Attitudes” unconscious competence.

Social SelfPerceived Self

Ideal Self

Company (HR) Effectiveness And Profitability Six Sigma

BalancedScorecard

Motivate

Selection/Discharge/Transfer

Empower

Development & Coaching

Can

do

Will do

Self Awareness & Perpetual Accuracy

Performance Appraisal and it’s effect in Leadership Maturity

Cause Effect

Performance Appraisal

Leadership Maturity

Self Awareness

Distorted Perception

100% 100%Reality

PerceptionAwareness of my feeling

Leadership Maturity & Self Awareness

Situational Leadership

SUPPO

RTIVE BEHAVIO

URS

Empowerment

Delegating Directing

CoachingFacilitation

3

4

2

1

DIRECTIVE BEHAVIOURSTrust

Competency

Commitment

Leader

Leader

Leader

Leader Leader

Level 1 Leader Decision - Monologue

Level 2 InputLeader Decision

Level 3Dialogue Leader Decision

Level 4 Collaboration

Level 5Delegate

Empowerment Metaloge

We have decided

They have decided

Criteria Process

LEVELS OF DECISION MAKING

Building your Talent Base – Company Capabilities

Secret Formula (Excellence of Intellectual Capital) =

Competence x Commitment

SharedMindset/Culture Talent Speed

Learning Accountability CollaborationQuality of Leadership

Building your Competency Model

1. Assess the Competencies needed2. Invest in Developing you People (Future Competence)

5 B’s Buy Recruiting from outsideBuild Train & Develop, Rotate, Action learning, AssignmentBorrow New ideas (Consultant, Customer, Suppliers)Bounce Remove low performing or under performing individualsBind Retain the most talented employees

Employee Commitment VOI²C²E- V Vision - O Opportunity- I Incentives - I Impact- C Community - C Communication- E Entrepreneurship

Comprehensive Leadership of Strategic Performance Management

1. Importance of linking performance with objectives and objectives with message and message with vision.

2. Managing performance effectively and with transparency based on continuous comparativeness between the result and target.

3. Selection/designing value added procedures on scientific and practical bases considering the decrease in costs and time sparing with quality commitment

4. Caring mainly for human resources while selecting, promoting and changing their conditions and training and compensating them financially based on their performance.

Vision Message Values Strategic Objectives Performance

Comprehensive Leadership of Strategic Performance Management

5. Taking the best decision quickly and with the least costs is generally the corner stone for any institution to realize its strategic objectives. Thus, it is crucial to support internal decision making by providing proper information and facilitating internal communication with the employees.

6. The availability of laws and by-laws spontaneously in any institution is per se important. Thus it is the most important elements of supporting decisions besides preserving all parties’ rights

Plan Develop Commitment Allocate Resources Educate Personnel

Implement Work to Plan Collect Data Stick to Schedules

Review Analyze Data Get Feedback Find Strength and Areas for Improvement

Assessment Develop Targets Prioritize objectives Involve all levels

RADAR Review Cycle

Use Feedback

Report

EFQM - RADAR

Results

Approach

Deployment

Assessment

Review

Defining Results

Planning & Developing Methods & Tools

(Approach)

Generalizing & Deploying Methods & Mechanisms

Methods & tools Assessment & review their

Dissemination & Deployment

The Systematic Strategy Approach – Development Process

1 - Outcomes

3 - Problem

5 - Action Plan

2 - Goal

4 - Systematic Problem

6 – Current Approach 10 - Change

7 - Solution

8 - SystematicSolution

9 - Changes

Inputs Process Outputs

Finding Problem Process/System Thinking Correcting ProblemReflecting Thinking Generating Solutions Convergent Thinking

The Systematic Strategy Approach – Development Process

Finding the Problem

Correcting The Problem

Generating Solutions

ConvergentThinkers

Deciding onSolution

Implementers DivergentThinkers

System Thinkers

Diverge

Converge

Learning

Fundamental Concept of Excellence

Management by Process & Facts

Result Orientation

Continuous Learning Improvement by

Innovation

People Development &

Involvement

Leadership constancy of

Purpose

Social Responsibility

Customer Focus

Partnerships Development

Profitability, Customer Service & Competition Chain

1 - Institution Internal QualitySelections for Human/ Training/ Powers/ Leadership

2 – Employee Satisfaction

3 – Customer Quality & Service

4 – Customer Satisfaction

5 – Retaining Customers

6 – Institution Profit

Inputs – The Six M’s

Manpower. Employee, Operator, Accountant, Sale Rep

Machine. Computer, Machine, Fax, ProjectorMethod. Standard Operating Procedure (SOP),

Computer ProgramMeasurement. Time, Defects, MoneyMaterial. Equipments, raw material, formsMother Nature. Environment, weather,

Natural Disasters

ProcessInput

Controllable(X’s)

TransformationA Series of Steps that

Change theInput

Inputs Outputs

Variability in Processes

The 6 M’s Process Component

Juran Rule94% Common Cause, Process Improvements

6% Special Causes.. Control

Variation in Process

Machines

Material

Manpower

Mother Nature

Measurements

Methods

After BPR Before BPR

Process Drivers

QualityCostSpeed Service

Process Improvement PathPLAN:1- Team Formation2- Purpose & Objectives3- Analyze Current Situations4-Develop Improvements

ACT:7- Standardize & Monitor8- Review9- Future Planning

CHECK:

6- Evaluate the PilotDO:

5- Implement the Pilot

ACT PLAN

WORK PROCESS

CHECK DO

Gather dataInterpret DataTranslate to MatrixGap Analysis

Take ActionReview against Plan

Measure EffectivenessOur Performance level

Improving a Problem Statement & GoalOriginal Statement – S M A R T

“We need to improve Customer Satisfaction”Specific

Retail customers have been complaining about incomplete shipments

Measurable10% of shipments are incomplete

AchievableWe observe several weeks with only 3% incomplete shipments.

One week with 1%Relevant

Customer complaints will lead to a loss of businessTime Bound

Reduce complaints within 2 monthsEvaluate

Monitor progress regularly – milestonesReversible

Reset your goals in case of failure to achieve difficult goals, or injury

Revised Problem Statements and Goal S M A R T E R

“ Presently 10% shipments are incomplete (double our industry average), Several of our customers have threatened

to stop doing business with us”

The team will reduce incomplete shipments from 10% to 3% within 2 months

Risk Management Definition:“The combination of probability of an event and its consequence”

The ability to master Risks by minimizing Threats and maximizing Opportunities

The Planning ProcessOne hour spent is worth four hour of execution

1 - Should Be

2 - As is

3 - Goals

4 - Action steps

5 - Cost

6 - Timetables - Schedule

7 - Implementation

8 - Follow Up

3 types of Business Process

TopManagement

Processes

CoreOperationalProcesses

InternalSupport

Processes

Shareholder’s Need

Regulations

Competitors Activity

Internal Customers

Need

Internal Customers Satisfaction

External Customers

Need

Strategies, Objectives & Control

External Customers Satisfaction

The Planning Process

StrategicThinking

Long RangePlanning

TacticalPlanning

ValuesMissionVisionStrategy

HR Key Strategic AreasCritical Issue AnalysisLong Term ObjectivesStrategic Action Plans

Key Results AreasCritical issue AnalysisKey Performance IndicatorsObjectivesAction PlansPlan Review

Strategy Planning processes vs. Scenario Planning (New Mindset)

• Managing uncertainty– Problem: Choosing and following direction curing time of uncertainty– Solution: Imagine possible futures, then make a strategic decisions.– Map scenario to the future

• Strategy in Motion (make decisions, move forward recognizing that decision may be wrong) – a deliberate plan of action– a continuous process– Reactive or Proactive

Strategy Planning processes vs. Scenario Planning (New Mindset)

• Strategic Visioning Process– Imagine end-state scenario– Identify events for each end-state– Map scenario to the future

Scenario Planning Methodology is used for Strategic Visioning, this methodology differs from the Strategy Planning processes in that it encourages future and visionary thinking to identify possibilities going forward

There are three basic components to the Strategic Vision:• End-States• Events• Scenarios that describe the sequence of events necessary to achieve a

possible end-state.

Strategic Analysis Process

Customer value

NeedsAssessment

MarketReview

SLRP

Strategies

CompetitiveStrategy

Workshops

Roadmaps

FutureSLRP

Topics

PORPlan of Records

StrategicVision/ Responses

What you can measure, you can manage

Measure Metrics Indicators

Performance MeasureBusiness Planning Strategic Thinking

Are we doing things right? Are we doing the right things?

Input Process Output Outcome

How did they do it? They created “Strategy-Focused Organizations”

Strategy:they made strategy the central organization agenda

Focused:they created incredible focus on the strategy

Organization:they mobilized their employees to act in fundamentally different ways, guided by the strategy

Strategy

Management

Process

The Balanced Scorecard is a

Performance Management Program

that puts Strategy at the Center of the

Process

Strategy Mission Statement & BSC

Strategy is a Series of Assumptions, Questions, “What If Cause and Effect Logic.

If we upgrade human resources by training and knowledge (cause), emphasis should be on improving and developing product quality and service.

When improving procedures (quality, costs, and time process) (cause) emphasis should be on improving customer service. This means providing services and commodities on time and with required quality and price would affect customers’ loyalty which if takes place will influence the financial, profit and competitiveness results……...Cards of Balanced Objectives Measurements.

Strategy Mission Statement & BSCMission

Strategy

BSC

Balanced Objectives are the realization of task and vision into future scenario through strategic management and intangible performance measurement and the main objective is perpetual change, success, distinction and excellence.

Business Performance Drivers (Competence & Commitment)

HR Performance Drive Business Performance (Competence &

Commitment)

Performance

Development

Leadership

Culture

Involvement

Structure

Skill & Knowledgeto drive BusinessPerformance BSC

& Strategy

Willing to use skill & Knowledge

to achieve Strategy, BSC

& Strategy

Secret Formula

CommitmentX

Competence

Integrated Solution for Hierarchical System ProblemsBalanced Measurements, Quality, Resisting Change, influencing

behavior and morale

StrategicBalancedScorecard

Financial Indicators Management

Balanced Objectives Strategy

Human Resources AnalysisHuman Resource Capital

Customer Relations

ManagementCustomer Relations

Balanced Process, Perpetual

improvements & by-laws

management

Strategy Management Overview

Knowledge

Results Action

Process Management

Change Management

Industry Analysis Scenario Planning

Strategic

OperationalExperience

Balanced Scorecard

StrategicArchitecture

ScorecardDesign

What do Managers need to know in order to take the Actions that lead to the right business Results?

From Strategic Architecture to BSC

Strategic Initiatives

Customers Financial

Internal Learning

Internal Perspective

External Perspective

External Perspective

Internal Perspective

Core Capability Internal

ProcessesStrategic Assets

Core Competence

Customer Value Case

Customer Value Proposition Economic

Value Case

Outside in Thinking

Customer Process

A B C

Company Process

The Eye of the Beholder

Customer View Company Contribution

Company Traditional View of its Contribution

Customers are why companies implement quality (BSC)

Expect Performance, Reliability, On-time Delivery, Service, Competitive Prices etc.

See and Feel the results – not just Hearing about BSC results

Quality means = Knowledge = MeasurementsTransforming knowledge into Vision & Values

We don’t know what We don’t knowWe can’t do what we don’t knowWe wouldn’t know until we measureWe don’t measure what we don’t valueWe don’t value what we don’t measure

The knowledge of measuring the hidden cost of Quality!!!!!!!!!!!!!!!!!!!!You cannot Change what you cannot measure

(Measure Process)

3 – TransferBehavior

4 levels of Evaluation (ROI)each successive evaluation level is built on information provided by the lower level.

Did trainee like it? Trainee Perception & Attitude

Did Trainee learn? Skills, knowledge & Attitudes Learning Objectives

Did Trainee use it? Applying newly acquired skills, knowledge or attitude to work place

Did it impacts BSC? Impact DED performance, ROI, Quality, waste reduction, HR moral satisfaction, absenteeism, profit, safety.

Supplier: TrainerTrainee: HRProcess: Training DeliveryQuality: Effectiveness

Supplier TrainingDelivery

DED-HR

Assessing Training EffectivenessKirkpatrick’s Four – Level Evaluation Model

1 - Reaction

2 - Learning

4 – BSCResults

Translating the Balanced Scorecard into Objectives & Measures (Putting it Together)

Balanced Scorecard Components (Relation & Linking)Initiatives Required

Programmers for Objectives Realization

Target Performance

Indicators

Measure Success

Measurements

Objectives Objective of

backing strategic decision for

success

Balanced Objectives & Measurement

Strategy

Promotion & Success Societies Researchers Marketing Tactics

Programme A 10% Programme B 40%Programme C 50%

Programme Mixture Optimal Exploitation

Budget

Benefits for good customers Customer’s club Forum

95% Customers’ Participation

Increasing Customers’ Loyalty

Customers

Research & Development Programmes

2005-15%2006-50%2007-60%

Deployment of New Programmes

Developing new Programmes

Operations

- Customer Relation Training- Knowledge Management- Employees Development

90% Dual skill Training Developing Strategic Skills

Development of Human Resources

Deployment & Initiating Change Continuous Performance Assessment and Development & Strategic

Balanced Performance Assessment

1. Evaluating internal & external status quo by work team.2. Developing Main Strategies to action plan by various head sectors.3. Transforming strategies to action plans for sectors and identifying balanced

objectives.4. Reaching a strategic map for the company 7 clarifying relations among

sectors for balanced indicators by beneficiaries (customers-employees-importers).

5. Performance indicators measurements & their development for strategic planning and operational plans follow-up. Coordinating with the quality sector for assessing process in the company.

6. Recognizing deployment obstacles and avoiding them for successful deployment.

Deployment & Initiating Change Continuous Performance Assessment and Development & Strategic

Balanced Performance Assessment

Procedures1. Analysis & strategic planning.2. Strategy of objectives and balanced indicators3. Implementation in all sectors & measuring process and its efficiency4. Follow-up, assessment, improvement & reviewing outcome &

indicators.

The ultimate goal is to achieve a strategy by measurement of outcome and balanced indicators to influence behavior.

Deployment & Initiating Change Continuous Performance Assessment and Development & Strategic

Balanced Performance Assessment

Assessment

Implementation

Planning

Deployment

Translate the Strategy to Operational Terms

Organization Learning“To achieve my vision, how must my organization learn & improve?”

Internal Perspective“To satisfy my customer, at which processes must I excel?”

Customer Perspective“To achieve my vision, how must I look to my customers?”

Financial Perspective“If we succeed, how will we look to our shareholders?”

The Strategy

Measurement is the language that

gives clarity to vague concepts

Measurement is used to

communicate, not to control

Strategy can be described as a

series of cause & effect

relationships

Align the Organization Around the Strategy

Make Strategy Everyone’s Job95% of the typical work force does not understand the strategy

CORPSBU

The Strategy Focused Workforce

• Education• Personal Goal

Alignment• Balanced Paychecks

Bottom-Up Process to

Internalize & Execute the

Strategy

Top-Down “Bringing

Process” to share the

strategy & align the workforce

Make Strategy A Continual ProcessThe Problem:

The Strategic Management Process is missing in most organization

Strategy

BalancedScorecard

Budget

Performance 92% of organizations do not report

on lead indicators

85% of managementteams spend less thanone hour per month

on strategy issue

78% of organizations luckBudgets to an annual cycle20% of organization take

more than 16 weeks toPrepare a budget

60% of organizations don’t link

strategy & budgetsStrategic Learning Loop

Management Control Loop

Leadership Alignment – For quality transformation

Vision Method

RelationshipValues Process

DATA

People Leaders

Customers Companies

Ideas LeadersTh

ings

Lead

er

Product Companies

Oper

ation

s Com

pani

es

Six Issues of a Successful Scorecard

Interfaces

Strategy Map

Roles

IT Support

Dialogue

Incentives

The attraction of Balanced Scorecards is to help translate strategy into stories business logic and tasks that grab people’s imagination and so results in purposeful action. Yet too often it hasn’t worked that way.

Strategy Map – Balanced Scorecard

Perspective

Financial

Customer

Process

DevelopmentEstablish newmarkets

Improve Staff Skills

ImproveTechnology

IncreaseCustomer Service

IncreaseEfficiency

IncreaseCustomer base

More Satisfiedcustomers

StrongerFinance Improve

Profitability

Empowerment

Directing

Coaching

Delegating

Facilitating

Effective Team Work Stages of Team Development

3 - Norming

4 - Performing 2 - Storming

1 - Forming

What makes a Good Project Team?

Effective Project Team

Trust & respect

Communication Conflict Resolution

Roles &Responsibility

SynergyLeadership

Resistance tochange

Key staff notavailable

Unrealistictimescales, business

can’t cope

Solution is notadopted, ‘notinvented here’

‘To be’ is not achieved

Lack ofownership

Project takesLonger & costs

moreSponsors support

in public but not inprivate Lack of enthusiasm

& support from thebusiness

Project not properlyPlanned or resources

Repeat pastmistakes

Confusion and mixedmessages, criticism,

the rumour mill

Nobody takesresponsibility

Staff not properlytrained or educated,

performance worsens

Why worry about Business change?

Elements required to implement successful change

False Starts

Vision Skills Incentives Resources Action Plan

Frustration

Little Change

Anxiety

Confusion

CHANGE

Skills Incentives Resources Action Plan

Vision Incentives Resources Action Plan

Vision Skills Resources Action Plan

Vision Skills Incentives Action Plan

Vision Skills Incentives Resources

Change at all Levels

Understand Mission Statement & Vision Clarity

Skills Development & Improvement by Training

Incentives & Bonuses

Resources, Training &Education

UnderstandingAction Plan

Examples

• Campus retention rate will increase to 60% from Fall 2009 to Fall 2010 by:– Strategy 1– Strategy 2

• Campus graduation rate will increase to 10% for Fall 2007 cohort by:– Strategy 1– Strategy 2

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ExamplesBy the end of the asthma management classes, 75% of patients will be able to

describe and demonstrate the correct use of a Peak-Flow Meter. By May 10, 2009 the Health Education staff from the Stroke Association will

have planned and conducted 4 skills building workshops for 50 carers of recently diagnosed Stroke patients at the Chiswick training centre.

Profitability Objectives - To achieve a 25% return on capital employed by August 2009.

Market Share Objectives - To gain 25% of the market for sports shoes by September 2009

Promotional Objectives - To increase awareness of the dangers of flowers in Wales from 12% to 25% by June

2009. To increase trail of X washing powder from 2% to 5% of our target group by January

2009.

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Exercise

1. What are your priorities? 1. Review strategic plan2. Review improvement plans3. Review assessment reports

2. What measures are appropriate for your area?1. Review balanced scorecard2. Review assessment plan

3. Write SMART objectives plus strategies based on your priorities and measures.

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Exercise

• What resources are needed to accomplish your improvement plan SMART objectives/outcomes?– Human– Financial

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What Have You Learned?

• How are job objectives different from job tasks? How are they different from job descriptions?

• What about the SMART model do you find most useful? How do job objectives drive your work?

• How do you identify the right measures to use in an objective? Why have multiple measures?

• Why is alignment of job objectives to organizational goals so important in NSPS?

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SummaryAlthough the terms “goals” and “objectives” are often used interchangeably, there are significant differences:

– Goals are general, intangible, broad, abstract, and long-range directions generally set by top executives

– Objectives are specific, measurable, narrow, concrete, and are short-range plans generally set by managers to accomplish goals.

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Summary cont’d.

• Setting goals and objectives is important because it is the first and most critical step in the planning process.

• Under our MBO process, top management sets our corporate goals. Managers use these goals to set department objectives, their own objectives and their employees’ objectives.

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Summary cont’d.

At (name of company) we set SMART Objectives

S SpecificM MeasurableA AchievableR RealisticT Time-oriented