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SOE Executive Management Performance and Remuneration Structure
SA Express Performance Management
Business ObjectivesBusiness Objectives
THE PERFORMANCE MODEL
• Strategic Planning • Objectives• Targets• Contract• Development Plan
• Informal reviews (1-on-1)• Monitoring Performance• Feedback• Coaching
• End of cycle formal review (Bi-annual)
• Development Plans
• Reward and recognition
• STI and LTI• Managing Poor
Performance
Talent Management – Remuneration - DevelopmentTalent Management – Remuneration - Development
Performance Management Methodology
► Mechanism Short-Term Incentive Scheme
SA Express uses the Balance Scorecard Performance Management System for all levels (including Executives)
The Performance Contracts are cascaded from the Corporate targets
Performance Bonuses are only payable if the Corporate targets are met
Long-Term Incentive Scheme Linked to retention Is a rolling three year incentive
scheme for all management (including critical skills at a staff level)
90% of the STI is banked for 2 years for the individual
All Executives and Management who gained entry to the scheme must achieve and sustain performance
► Processes All scorecards are
contracted once a year
All reviews are done twice a year – In consultation with and on approval by the CEO
Bonuses are only payable on approval by the board
► Measurable objectives SA Express measures
the following 5 perspectives for a balanced approach to performance
Finance Strategic Customer Business Process Learning and
Development
SA Express Talent Management
Leadership and Talent management Framework (LTF\MF)
Co
mp
lexi
ty /
Wo
rk L
evel
sStrategic Intent
Strategic Execution
Tactical Management
Optimisiing Systems
Jim Collins
Good to Great
Steve Drotter
Leadership Pipe line ModelElliot Jacques
SST (Stratified Systems Theory)
Highly Capable Individual
Contributing Team Member
Competent Manager
Effective Leader
Executive
1
2
3
4
5
Manage a Business
Manage Managers
Manage Others
Manage Self
All global theories amount to similar outcomes…
Talent Management
Leadership ImperativesLeadership Imperatives Strategic positionsStrategic positions
Talent PoolsTalent Pools
Retention StrategiesRetention Strategies
Deployment of TalentDeployment of Talent
•Build
• Buy
•Build
• Buy
• Development
• Reward and Recognition
• Development
• Reward and Recognition
Corporate PlanCorporate Plan
Leadership - Communication - Accountability - Skills Alignment - Measurement Leadership - Communication - Accountability - Skills Alignment - Measurement
Talent Management
Talent Management
Identi
fy -
A
ssess
- A
ccele
rate
Identi
fy -
A
ssess
- A
ccele
rate
Succ
ess
ion
Succ
ess
ion
Succession Planning
Identify SP jobs
Develop job profiles
Identify successors
Develop successors
Documentation / reporting
Appoint successor to target job
PAD SITUATIONAL ANALYSIS•Vision, mission, strategy•Future work demand predictions•Future incumbent supply predictions
GAPS•Key focus areas, Business criteria, Demand vs Supply
RESOURCING OBJECTIVES •Current occupied• to be maintained• to be eliminated •Current vacant• internal appointment• external appointment •New jobs to be created•internal appointment•external appointment
RESOURCING STRATEGY•Recruitment and Selection•Redeployment•Transfers•Designate positions•Succession planning
Str
ate
gic
Reso
urc
ing
6SP - Succession Plan
GlobalGlobal
WorkplaceWorkplace
TeamTeam
Leadership Development
IndividualIndividual LeadershipPipeline
LeadershipPipeline
Leadership Development
Model
Leadership Development
Model
Levels of workLevels of workExecutive Development
• Mentorship and Coaching
• Business Schools
(Short courses)
• Global Exposure
• Strategic conversations
• Book Reviews
Executive Development
• Mentorship and Coaching
• Business Schools
(Short courses)
• Global Exposure
• Strategic conversations
• Book Reviews
SA Express MDPSA Express MDP
SA Express SDPSA Express SDP
SA Express Structure Management
Top echelon
Executive ManagerFinance
Executive ManagerFinance
General ManagerHuman ResourcesGeneral ManagerHuman Resources
Chief Executive OfficerChief Executive Officer
Regional General ManagerAfrican Expansion
Regional General ManagerAfrican Expansion
General ManagerStrategy and Market Development
General ManagerStrategy and Market Development
General ManagerOperations
General ManagerOperations
Company SecretaryCompany Secretary
SA ExpressBoard of Directors
SA ExpressBoard of Directors
General ManagerCommercial
General ManagerCommercial
General ManagerTechnical
General ManagerTechnical
Chief Information OfficerChief Information Officer
Chief Financial OfficerChief Financial Officer
Executive ManagerSafety, Security, QM and
Environment
Executive ManagerSafety, Security, QM and
Environment
Executive ManagerAirport OperationsExecutive ManagerAirport Operations
Executive ManagerMarketing and Customer Care
Executive ManagerMarketing and Customer Care
Executive ManagerLegal
Executive ManagerLegal
Demographic Breakdown
Race
FEMALE
MALE
Grand Total
African White AFRICAN COLOURED WHITE
2007
5 2 7 1 2 17
29.41% 11.76% 41.18% 5.88% 11.76% 100.00%
2008
5 2 6 2 2 17
29.41% 11.76% 35.29% 11.76% 11.76% 100.00%
2009
4 2 6 2 2 16
25.00% 12.50% 37.50% 12.50% 12.50% 100.00%
2010/03/12
4 2 6 2 1 15
26.67% 13.33% 40.00% 13.33% 6.67% 100.00%
• Total Executive Head Count of 15 as at 12 March 2010
• Race Profile = 20% white and 80% black
• Gender profile = 40% female and 60% male.
• Overall employment profile reflects very positively against national and industry benchmarks
Turnover at an Executive Level
Status and filling of vacancies
Turnover: 6% Average (Open/Close -1 *100) Turnover: 6% Average (Open/Close -1 *100)
•Position requirements changed due to restructuring at an executive level
•The SA Express CEO position will become vacant within the next month
•Position requirements changed due to restructuring at an executive level
•The SA Express CEO position will become vacant within the next month
Year Positions Turnover Reason
2007 17 1 Resignation
2008 17 1 Resignation
2009 16 1 Retirement
SA Express Remuneration Management
Remuneration Philosophy
Base / Basic Salary
+ Long-term Incentive
+ Short-term Incentive
Tot
al E
arn
ings
/ T
otal
Cos
t to
Com
pan
y
Tot
al R
emu
ner
atio
n /
Tot
al C
ost
of
Em
plo
ymen
t
+ Other Benefits+ Cost of employee benefits
Gu
aran
teed
Pac
kag
e
Var
iab
le P
ay
Bas
e / B
asic
Sal
ary
Fix
ed P
ay
Market BenchmarkMarket Benchmark
SA Express Remuneration PhilosophySA Express Remuneration Philosophy
Executive Management Remuneration Framework
•SA Express pays on the median as per its Remuneration Philosophy•SA Express adheres strictly to the DPE Remuneration guidelines for all Directors
- Movement adjusted against CPI since publication- Board members are afforded industry travel concessions
•SA Express pays on the median as per its Remuneration Philosophy•SA Express adheres strictly to the DPE Remuneration guidelines for all Directors
- Movement adjusted against CPI since publication- Board members are afforded industry travel concessions
Level
Low High
Lower Guide Median
Upper Guide
Lower Guide Median Upper Guide
General Manager 1,041,576 1,151,196 1,210,222 1,357,761 1,567,157 1,679,908
Executive Manager 602,392 759,551 916,856 750,168 907,474 1,064,632
SA Express broad band Level Transnet SAA Paterson SST
6General and Executive
Manager 106, 104 EM3 / ES3 E1 / E2 SE1
5 Senior Manager 109 SM2 / SS2 D3 / D4 MP2 / MP3
4 Manager 110 MO1 / SO1 D1 / D2 SL / MP1
SummaryPerformance Management► SA Express Performance Management is well entrenchedTalent Management► The Talent Management Framework leads to a consistent supply of
talented leaders Build – Talented individuals are identified through the Performance
Management System Buy – We recruit Talent from the Private and Public sector The succession plan has been in place since 2006 and reviewed annually
Organisation Management► SA Express experienced low staff turnover and managed to reduce the
number of Execs through efficiencies The long-term retention mechanisms proofs to be successful
Remuneration Management► SA Express adheres to the DPE guidelines for SOEs► SA Express remains competitive against market demands► SA Express is in line with market benchmarks and will continuously uphold
its philosophy
Thank YouQ & A