O&A Consult

08/10/2018

The critical importance of AMBITION when setting Objectives/Goals

The surest way to achieve transformational results, the kinds of results that will transform the organization, is by setting ambitious Goals and Objectives! The achievement of ambitious Goals and Objectives create the opportunities for growth and development of employees, innovations and creativity, new ways of doing things, and opportunities for the achievement of high performance that will take the organization to a higher level year after year. But since a judgement of the individual’s performance will be made as an aspect of Performance Management, and the results achieved are judged and rated and they impact salary increases and other benefits; and because of the unpleasant experiences, and other negative perceptions that employees have about Performance Management, there is a tendency on the part of individuals to be cautious and pessimistic when setting their Objectives. This often leads to the setting of mediocre Objectives by employees, Objectives which cannot lead to the achievement of transformational results. Unfortunately, the setting of mediocre Objectives can also deny the individual opportunities to develop and grow.

However, it is important to recognize that there is normally sound basis for this caution and pessimism, and the mediocre Objectives that result from them. Therefore, the cause or causes must be properly identified and dealt with. Some of these causes could be resource constraints, lack of the requisite skills and experience, lack of appropriate technology, and so on. Unpleasant experiences of past events may also play a part and can lead to what are referred to as ‘limiting beliefs’. Limiting beliefs are those which constrain us in some way. Just by believing them, we do not think, do or say the things they inhibit. For example, if an employee believes that even the smallest risk taking will lead to punishment if it goes wrong then that employee is considerably constrained. Put the limiting beliefs in your teams and your organizations to the test. Discuss them.

Another unhelpful tendency which leads to the setting of pessimistic and mediocre Objectives is the tendency to indirectly spread the responsibility for the Objectives instead of the individual taking full responsible for his or her Objectives. This happens during the process of setting Objectives if the individual at the same time tries to determine how the Objectives will be achieved. In so doing, if the Objectives, which also indicate how they will be achieved, are jointly agreed by the manager and the individual, are not achieved by the methods indicated in the wording of the Objectives, then the manager automatically shares in the responsibility of non-achievement. This is because the manager had agreed to how the Objectives would be achieved. We must however differentiate this type of responsibility which the manager shares with the individual from the responsibility that the manager has in terms of providing all the necessary support (the resources and the training and development) required to ensure that the individual has all it takes to achieve his or her Objectives.

If Objectives are truly ambitious and stretching, the types that will lead to the achievement of transformational results, it would not be possible to determine how they will be achieved at the time that the Objectives are being set. The methods by which the Objectives would be achieved must require the individual to carry out detailed planning and ex*****on of the plans, and so this activity must be separated from the Objective setting activity. These plans would have to be reviewed from time to time, and even, learning of new skill by the individual could be required in order to achieve the Objectives. Some of the methods and actions may not give the desired results at the first attempt and other methods may have to be pursued, and so on.

This tendency to be cautious when setting Objectives limits ambition and thereby also limits opportunities for development and growth of the individual. The best approach is to assume ideal conditions when setting Objectives and later on factor in any limitations identified. Where the limitations are the individual’s capabilities they are also the opportunities for the individual to learn new skills and develop and grow; and where the limitations are resources there can be opportunities to improve efficiencies and effectiveness, or the individual’s manager may come in to provide support. Ambitious objectives when achieved, also boost the individual’s morale and increase his or her confidence. Given these potential opportunities of achieving ambitious Objectives, managers of organizations must take deliberate steps to deal with any negative perceptions associated with the limitations to ambitious Objectives. Do not overlook the fact that some of these perceptions could be based on certain past events, and whether rightly or wrongly employees may still hold them to be true and relevant.

The progressions in Olympics High Jump is a good illustration of ambitious goals driving transformational shifts in performance. Whenever the bar is raised to an ambitious height, a new method or style of jumping is developed in order to clear the ambitious height!

In the same manner, transformational shifts in performance often result from “raising the bar” or setting of ambitious goals. When the bar is raised or an ambitious goal is set, it motivates the development of a new method or methods or new solutions, and higher performance is achieved. Consequently, the individual also grows!

If you don’t raise the bar in what is expected it is almost impossible to achieve transformational performance!

It is also of great importance to note that, to set ambitious and quality Objectives requires significant amount of hard work; much thought and research must go into it. The individuals and their managers must have thorough knowledge and understanding of the individuals’ roles and job descriptions, the organization, the strategies and the strategic plan, and what the particular focus is in the year in which the Objectives are being set. They must also be aware of the individuals’ aspirations, strengths and development gaps, and where the individual’s performance is at the present moment.

07/09/2018

THE AUTHOR

Emmanuel Akoto is a Consultant at O&A Consult and an expert in organizational performance improvement. He provides consultancy services for both the public and private sectors in Ghana. At O&A Consult, he is a director and the lead consultant on Business Improvement Solutions. Since 2007 he has led O&A Consult to offer organizational management advisory services to firms such as the ECOWAS Bank for Investment and Development, Electricity Company of Ghana, Databank Group, Nyaho Medical Centre, and many others with a focus on getting the best out of employees. Reflections on his work with these organizations formed the framework for this book, Performance Management: Maximizing Employee Contribution for Competitive Advantage.

Emmanuel holds a BSc in Chemical Engineering and an MBA (General Management) from Henley Business School in the UK. He is an expert on Strategy, People, and Organisational Development with extensive experience working with multi-national companies and public sector organizations.

As HR Director of Guinness Ghana Breweries Limited he led the establishment of a high performance culture within the organisation through various programs, leading to the doubling of growth over a period of four years. This strong performance of the Company was one of the key factors that enabled Guinness Ghana Breweries Limited to acquire Ghana Breweries Limited (GBL) in December 2004. Following the acquisition of GBL, he led the organisational merger of the two companies and in the first year of merger, the company exceeded its key performance goals.

If ‘people are our greatest assets’, it is time to put people at the centre of organizations. Emmanuel passionately believes in the concept that the quality, creativity, the energy and passion of the people who work in an organization offer the most sustainable competitive advantage to the organization. He believes that the impact of one’s skills and knowledge on performance cannot be maximized without the right attitudes and behaviours, and as an active consultant, he continues to influence managers in the organizations he works with.

ABOUT THIS BOOK

A growing number of managers around the world have come to recognize that people, or human capital is rapidly replacing physical and financial capital, and technology as the key source of competitive advantage. The challenge for many managers is to come to grips with how to position people at the centre of their business strategy and maximize their contributions to the achievement of business goals.

Capital and technology used to bring companies competitive advantage. Nowadays even 25 year olds can raise millions of dollars, and technology is imitated in months! The people in organizations provide the next great frontier of advantage for organizations. Only people can turn strategy into a winning formula.

In this book you will learn, among many other things, how to maximize the contributions of employees to the achievement of organizational goals through:
1. The linkage of Performance Management to Organizational Strategy.
2. The setting of transformational Objectives and the Behaviours that are necessary for high performance.
3. Individuals knowing what to do to achieve their performance and future development goals, and what their managers will do to support them to achieve their performance and future development goals.
4. Individuals crystalizing their aspirations and knowing the possible next steps in their careers.
5. The establishment of the Organizational Culture that enables high performance.

Many of the concepts and philosophies, principles and theories, techniques and practices, etc. presented in this book can also be applied by individuals to improve on their own personal performance, development and growth.

This book is based on the author's many years of experience in business management and as a management consultant, during which period he has grappled with the establishment of performance management systems in both private sector and public sector organizations. This book therefore provides a very practical approach to performance management for individuals, teams, and organizations in both the private and public sector.

CONTENTS

Preface
Chapter 1: Introduction
1.1 What is performance?
1.2 Target or objective setting and performance management
1.3 Talent strategy and performance management
1.4 Bureaucracy and performance management
1.5 Employees’ perceptions about performance management
1.6 What is a performance management system?
1.7 The three stages of a performance management system
1.8 The practical approach to performance management

Chapter 2: The strategic context of performance management
2.1 What is strategy, and what constitutes strategy?
2.2 A process for strategy implementation planning
2.3 The link between strategy implementation and performance management

Chapter 3: Critical success factors of performance management
3.1 Organizational culture
3.1.1 The impact of national culture on organizational culture
3.1.2 Building the right organizational culture
3.2 Recognition and reward of performance
3.3 Other critical success factors

Chapter 4: The individual’s aspirations – the big dream
4.1 The fundamental truths and factors that underpin the importance of aspirations to the performance of the individual
4.2 Aspirations and goals
4.3 A practical approach to the conversations about aspirations or dreams
4.4 The role of the manager in the conversations

Chapter 5: The individual’s objectives/goals
5.1 The critical importance of ambition when setting objectives
5.2 Setting the ‘WHAT’ kind of objectives
5.3 Setting the ‘HOW’ kind of objectives
5.4 Conversations about the setting of individual objectives
5.5 A specific ‘WHAT’ objective for managers
5.6 Modifications to the objectives setting process for junior staff
5.7 Common traps and pitfalls to be aware of when setting objectives

Chapter 6: The action plan for success – capability and resources
6.1 Maximizing your strengths and overcoming critical barriers
6.2 Building the relationship
6.3 Supporting the individual’s career development

Chapter 7: Career management
7.1 The outcomes of career conversations
7.2 The characteristics of effective career conversations

Chapter 8: Monitoring and of performance
8.1 Monitoring of performance
8.2 End of year review of performance
8.3 Individual’s and organization’s performances are linked
8.4 The attitude and behaviours that underpin effective monitoring
(tracking & review) conversations
8.5 Rating of performance
8.6 Calibration of performance ratings
8.7 Performance ratings appeals process
8.8 The normal distribution of performance ratings

Chapter 9: Performance management and ICT
9.1 Objectives setting
9.2 Monitoring of performance
9.3 Talent profiling
9.4 Individual development plan
9.5 Succession/Replacement plans
9.6 360-degree feedback
9.7 Reports

Chapter 10: A sample form for capturing performance management information

Chapter 11: Evaluation of performance management systems

31/08/2018

THE AUTHOR G.M.K. Opoku is a Project Management Expert with over twenty nine years of experience in project management and contract administration. Significant portion of that experience has been in the real estate sector.   He worked on major housing projects in Ghana including the redevelopment o...

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O & A Consult - EVALUATION OF PROJECTS (Post-Completion)

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22/12/2017

What is performance?

Performance is one of those words which is used frequently in organizational management and in many other fields such as in the arts, in entertainment, sports, in contracts, etc. Occasionally, words such as Performance become fashionable or represent a current popular style and as a result tend to be overused, and in the process take on different meanings for different people. It is therefore necessary to explain the meaning of ‘Performance’ within the context of Performance Management as presented in this article in order to minimize any ambiguities.

As used in this article ‘Performance’ refers to results or outcomes that have been achieved. A result is the final consequence of a sequence of actions or events expressed qualitatively or quantitatively. The focus is on results achieved! Note that the sequence of actions or events is not performance but rather the result achieved at the end. The reason that the sequence of actions is not performance is because it is possible that a number of actions could be implemented and the expected result would not be achieved, and different actions would have to be implemented for any number of times before the expected result is achieved. The expected result is the same but many different actions could be implemented before it would be achieved. Therefore, as it relates to Performance Management, Employee Performance or an individual’s performance is the results or outcomes that the individual achieves as a consequence of the ex*****on of an action or several actions. It must be kept in mind that the Performance of an employee is not the sequence of actions or events which the employee implemented.

Where there are pre-agreed expected results or outcomes or known standards, it is possible to compare the actual results achieved to the pre-agreed expected results or known standards and make a judgement of the performance of an employee as very good, poor, exceeding expectation, below expectation, etc. Where there are no pre-agreed expected results or standards, it is difficult to make a fair judgement of an employee’s performance.

The results achieved by employees can be ‘what’ the employees achieved and ‘how’ the employees carried out their work; the attitudes and behaviours they demonstrated while carrying out their work. Below are two examples of employee performance.

1. An example of a ‘what’ result is if the pre-set known standard for an employee is to achieve a reduction of waste by 5% over three months and the employee achieves 3% reduction of waste over the period then the employee’s performance is the result which is 3% reduction of waste achieved. A sequence of actions would have been implemented by the employee in order to achieve this result but the actions are not the performance.

2. An example of a ‘how’ result is if the pre-set standard for an employee is to achieve a 95% punctuality over the whole financial year as an improvement on previous years’ behaviour and the employee achieves 90% over the period then the employee’s performance is the result which is 90% punctuality achieved. Also, in this example, actions would have been implemented by the employee to achieve this result.

The actions that employees implement to achieve results are determined by the technical and management skills and knowledge, experience, motivations, etc., of the employees.

When performance is not properly defined as the Results or Outcomes achieved it becomes difficult to measure and improve on the performance or productivity of employees, or reward performance effectively. Inaccurate definition of performance contributes to low productivity of employees and can lead to organizations failing to achieve their goals and increase their revenue and profit even though their wage bills continues to increase. It is obvious that a situation of this nature can only lead an organization into bankruptcy. The often occurring problem of increasing wage bill without the commensurate increase in productivity is more commonly faced by services delivery organizations, especially within the public sector. Because performance is not properly defined as results or outcomes, performance or productivity becomes difficult to measure. Where organizations deliver physical products, for example bottled fruit juice, the Results or Outcomes are more obvious and therefore easier to describe, and performance more accurately measured.

In 2014, in a document titled “Performance Management Policy for the Public Services of Ghana”, the Public Services Commission of Ghana identified as one of the problems to their Performance Management System (PMS) the difficulty of measuring productivity. They stated that “Productivity was difficult to measure while the general public’s perception on the output of public servants was poor. The employer i.e. Government was even at pains to justify the need for pay increases considering the backlash from the public and other stakeholders on the poor performance output of public servants in general. Meanwhile, the wage bill has continued to increase and now peaking at almost 70% of total revenue receipts of Government.” It is therefore of great importance to get the right understanding of what constitutes performance.