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Employee Performance Evaluation

Abstract
“There are only three measurements that tell you nearly everything you need to know about your organization’s overall performance: employee engagement, customer satisfaction, and cash flow. It goes without saying that no company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it.” Jack Welch.  This quote by Jack Welch ushers the discussion on performance management very well and touches on the key metrics and drivers which need to be manipulated and measures.  They tell a story of how healthy an organization is and how it fares amongst its competitors in the market place. The discussion below will contrast the two different organization setting and how performance management conducted and applied to drive the organization’s performance.
Keywords: Performance Management, Balance Scorecard, SMART objectives
Using your own job (current or past) and briefly discuss how your performance was managed and evaluated.
I have decided to contrast my current job and my previous job in responding to the question.  Both organizations have adopted Balance Scorecard as a Performance Management Tool for integrating the business performance and individual performance. Kaplan & Norton (1996), the fathers of Balance Scorecard demonstrate that the Balanced Scorecard objectives and measures view the organizational performance from four perspectives namely: Financial customer, internal business process, and learning and growth. My previous employment was with SAP Africa, a subsidiary of SAP, a global software IT company known for its ERP solutions for multiple industries. As it is a listed company, we were measured on the share price performance, as what we consistently did impacted the share price directly.  Over and above our immediate responsibilities we were encouraged to monitor the share price movement daily.  The work was designed in such a way that delivery was also centered around teams and even though individuals were isolated for incentives and recognition (top performers), teamwork was highly important. Delivery of solutions to customers was in a form of project work.  Our division was called Business Consulting and we often had to prepare the groundwork for the sales force to be able to position appropriate solutions for customers based on our value engineering work.  Our KPIs included our pipeline generation, project work (measured by revenue monthly) as well as quality of work; support rendered to project and program managers at project level; customer evaluation reports, on time administration (time and attendance) which is input to billing customers; designing of new products and services - Innovation and finally contribution to the Knowledge Hub. What is crucial to the performance management process is to present a Portfolio of evidence on all the KPIs prior to performance discussions with the supervisor.  Once the final score is allocated, these get presented to the performance management council where your supervisor/manager present your case to the council.  This is a grilling process and thus it is important to provide your supervisor with an armor of evidence.
At my current job, I am the head of the division and thus I have to define the value proposition of the division, strategy to respond to the overall organization strategic objectives.  I also have to compile a business plan which takes one year to five years (1 – 5 years) horizon.  My performance and scorecard is based on the business plan targets.  We have both discretionary and generic KPIs.  Those that are discretionary involve what you choose to deliver for the current financial year, however, they have to be in line with the business plan.  The generic KPIs are set by the Shareholder and Board and are based on the best practice of managing a Water Utility.  I work for Rand Water; the largest water utility in South Africa.  I am head of Business Optimization in Group Strategy Portfolio, a position I have held for almost two years. The process of managing our performance is a very traditional one as there are two periods of managing performance, namely, Mid-year review and Final year review.  Our financial year starts in July and ends in June of the following year. Mid-year reviews are conducted and signed off the end of December and the final scorecard is submitted by end of June with the accompanying portfolio of evidence.  These are subjected to an audit process by internal and external auditors as they are a basis for incentive payout for all levels of employees. 
People Performance Management Toolkit (2017) refers to SMART objectives as objectives which are Specific, Measurable, Achievable, Relevant and Time-Based. The characteristics of SMART objectives as defined by Cdc.gov. (n.d.) are as follows:
i)                Specific. Objectives should provide the “who” and “what” of program activities;
ii)              Measurable. Objectives should quantify the amount of change expected.
iii)             Achievable. Objectives should be attainable within a given time frame and with available program resources;
iv)             Realistic. Objectives are most useful when they accurately address the scope of the problem and programmatic steps that can be implemented within a specific time frame.
v)               Time-phased. Objectives should provide a time frame indicating when the objective will be measured, or a time by which the objective will be met.
I have selected to use my current position in defining three objectives or measurements to apply the SMART method. My role is Senior Manager of Business Optimization. The purpose of the position is to define the organization’s business optimization strategy, define business pain points and design appropriate interventions to redress the problems or challenges. To assist with coming up with my objectives, it was imperative to identify the drivers which necessitated for my overall Portfolio to relook at its value proposition and design solutions to respond directly to the emerging strategic changes which primarily induced by external and internal factors. These drivers are i) Review the Rand Water’s strategy in line with the emerging trends “threats and opportunities” within the sector; ii) Crafting a Customer Engagement Strategy to proactively manage the emerging non-payment threat of municipalities. iii) This will cut across the entire value chain of managing the Rand Water Customer as well as the Stakeholder Management thereof; Designing the Supply Chain Strategy in line with the Insourcing vs Outsourcing Strategic mandate. What will be imperative is to look at the best practice within the Utilities and Water Sector both local and Internationally.
Senior Manager Business Optimization SMART Objectives for FY2018/2019
Key Performance Indicator
Weight
Base
Target
Norm
Stretch
1. Review of Organization Strategy
Revised Organization Strategy
40%
31st July 2019
30th June 2019
1st July 2019
14th June 2019
Key Performance Indicator
Weight
Base
Target
Norm
Stretch
2. Business Optimization Strategy   with emphasis on Supply Chain Optimization
International Benchmark study on Business Optimization with reference to Utility Management
30%
31st July 2019
30th June 2019
1st July 2019
17th June 2019
Key Performance Indicator
Weight
Base
Target
Norm
Stretch
3. Customer Engagement Strategy
Approved and signed off Implementation plan on improving collection of outstanding debt of municipalities
30%
31st July 2019
30th June 2019
1st July 2019
17th June 2019

Concluding Remarks
I have found the process of defining my SMART objectives (KPIs) complex as my role is not a process based role and entails solving much complex organization’s problems and challenges.  The tangibles of the role are not always clear cut and possible solutions may have not been cultivated somewhere else as the nuances of the environment are unique and present a different set of challenges which require specific approach. On the other hand, what made the process fairly realistic is the fact that I understand the organization’s strategic objectives and organizational performance measures.  This made defining my SMART objectives relatively easier as they had to be aligned to the organization’s objectives. Stiffler (2006) states that “the individual performance is about cascading the strategic objectives of the organization down to goals for every individual, making sure that each person understands what he or she needs to do to achieve those goals.”

References
  Cdc.gov. (n.d.). How to write SMART objectives.
    Retrieved from https://www.cdc.gov/cancer/dcpc/pdf/dp17-1701-smart-objectives.pdf
  Stiffler, M. (2006). Performance. Creating the Performance-Driven Organization.
    Wiley & Sons, Inc., Hoboken, New Jersey.
  People Performance Management Toolkit. (2017). NHS Employers and Skills for Care.  
  Kaplan, R., & Norton, D. (1996). The Balance Scorecard. Translating Strategy into Action.
    President and Fellows of Harvard College.

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