E2-E3

MANAGEMENT
GROUP PERFORMANCE MANAGEMENT SYSTEM
For BSNL internal circulation only

WELCOME
This is a presentation for the E2-E3 MANAGEMENT Module for the Topic: GPMS Eligibility: Those who have got the Upgradation from E2 to E3.

This presentation is last updated on 17-03-2011.

You can also visit the Digital library of BSNL to see this topic.

For BSNL internal circulation only

Agenda
Understand concept of Group Performance Management System (GPMS) Foundation of GPMS and BBSC

Groupings in GPMS of BSNL

Sample GPMS

For BSNL internal circulation only

Performance Appraisal
It is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees. It helps in understanding the employees work culture, involvement, and satisfaction. It helps the organization in deciding employees promotion, transfer, incentives and pay increase.
For BSNL internal circulation only

Performance Management
It is a system which manages performance. It sets performance objectives associated with strategic and/or operational plans. It is the system for managing, leading, organizing it and controlling performance.

For BSNL internal circulation only

GPMS concept in BSNL

It is an initiative under Project Shikhar.

Its intent to have an objective and transparent system for assessing performance.
It is a system for Identifying KPI for individuals and various functional groups within the organization. Assigning objective KPIs to distinct groups aligned with organizational objectives.

For BSNL internal circulation only

GPMS concept in BSNL

Assessing targets and their weightage against such KPIs in objective & transparent manner. Used as yardstick for assessment of performance. Providing a basis for performance related HR policies.

For BSNL internal circulation only

Foundation of GPMS
Similar with Balanced Business Score Card (BBSC) concept adopted by BSNL in 2006. The GPMS has been introduced in 2009. GPMS scorecards for all the group types have been designed to consist of Key Performance Indicators (KPIs).

For BSNL internal circulation only

Shortfalls of BBSC set up adopted by BSNL

Job descriptions at an individual level were not clearly defined.
So creation of individual score card was not very objective and systematic. The long list of activities for each division, without clear cut delineation of activities and responsibilities.

For BSNL internal circulation only

Shortfalls of BBSC set up adopted by BSNL

So it made less conducive to effectively identify and communicate KRA (key responsibility area) of a specific post. The large number of KPIs within each Scorecard. Absence of critical enablers such as an appropriate organization structure, well defined processes for tracking performance and IT systems support hamper their effective implementation .

For BSNL internal circulation only

Preparation of GPMS parameter

Derived from the Vision and Strategy of the organization. Planning Long term strategic plan Short term business plan and budgets Measurable Focused set of measures Measures represent organization's plan and vision

For BSNL internal circulation only

Preparation of GPMS parameter

Review Plans are regularly reviewed and suitably revised Performance Rewards are linked to driving key measures

For BSNL internal circulation only

Evaluation of GPMS scorecards

The evaluation for groups at The corporate office: By CMD, Territorial Circles :By the Management Committee (MC), L.no 4-2l 201O-(Restg) Date: l2th July'2010 : North Zone Director (CM) South Zone Director (CFA) East Zone Director (ENT) West Zone Director (HR) Non-territorial circles: By respective corporate office Directors and Exe. Directors. SSAs: By the respective Circle Heads

For BSNL internal circulation only

Evaluation of GPMS scorecards

KPIs measured on financial, customer / market and operational parameters. Overall performance assessment KPI would be done by the person whom the group reports to. Further, every scorecard has a parameter to measure customer satisfaction.

For circles which do not have any external customers, the internal customers / stakeholders would be doing the evaluation.
For BSNL internal circulation only

GPMS implementation in BSNL

Based on new organization structure of BSNL. KRA/KPIs are identified and defined on the basis of New BU (Business unit) structure, in consultation with top executives of the respective BU. Number of KPIs has kept less to have focus measurement of Key performance areas. Optimum combination of quantitative and qualitative measurement. KPIs are defined as per functional activities.

For BSNL internal circulation only

Groupings in BSNL
Group No.of types groups 1. Consumer Fixed Access 7 7 2. Consumer Mobility 3. Enterprise Corporate 4. New businesses Office 5. Corporate Affairs 6. HR (Incl. Legal and Vigilance) 7. Finance Territorial Territorial Circle 1 26
For BSNL internal circulation only

Category

Group Type

Groupings in BSNL
Category Group Type Group types 1. Project Circle 1 2. Maintenance Region 1 3. Telecom Factory 1 4. Training Circle 1 5. QA, 6. Telecom Stores, 6 7. Inspections , 8. ITPC,9. NCES, 10. Data N/W SSAs 1 Total 19
For BSNL internal circulation only

Non Territorial Circle SSA

No. of groups 5 4 3 3 6

330 384

BBSC Concept
In BBSC four perspectives The Learning and Growth Perspective The Business Process Perspective The Customer Perspective The Financial Perspective

For BSNL internal circulation only

Learning and Growth

To achieve our vision, how will we sustain our ability to change and improve. The infrastructure that the organization must build to create long-term growth and improvement Comes from: People Systems Organizational procedures
For BSNL internal circulation only

Business process perspective

Every business has a value chain by which value is created and delivered
Customer need identified Identify the markets/ create the
product

Build the product/ Deliver the

product

Service the customer

Customer needs to be satisf2ied

Innovation process

Operations process

Post sale service process

Innovation process : Critical to the future success of the business. Operations process : Needed for efficient, consistent and timely delivery of existing product and services to the customer. Post sale service process: Warranty related, payment or other activities enabling the customers to enjoy the quality product
For BSNL internal circulation only

Customer Perspective
How are you performing from customers perspective?

What are the factors that really matter to customer?

Main concern of customers are:

Time the time the company receives an order to the time it actually deliver it. Quality Defect levels as perceived by the customers. Service- What is the value, your product or service is creating for the customer.
For BSNL internal circulation only

Customer outcome measures

Market Share

Market Share Retention Acquisition Satisfaction Profitability

Acquisition

Profitability

Retention

Satisfaction

For BSNL internal circulation only

Financial perspective
This has to do with : Profitability Growth Shareholder Value Increasing Revenue Cost reduction & Productivity Improvement

For BSNL internal circulation only

Linkage among four perspectives

Greater Financial Return
Financial

More purchase/Use Increased Customer Satisfaction Greater Reliability

Improved Quality Better Process Control
Innovation & Training Internal process

Customer

Training
For BSNL internal circulation only

Parameters in GPMS Scorecard

Negative or Positive Each parameter is given weightage and target (fair, good, excellent) Sum of weight of all parameters equals 100. Total score against KPI=Weightage of a parameter x performance score. Final score=Sum total of scores for all parameters.

For BSNL internal circulation only

26

Targets
Derived from companys targets conveyed down the line. Can be changed on review in exceptional cases. Must be based on accurate forecast considering appropriate business environment.

For BSNL internal circulation only

Targets setting against each parameter of the scorecard.

Performance level to be defined for Fair, Good and Excellent. Score to be calculated in a linear manner as per achievement. Target Performance Levels Target Performance level Fair Good 100 Cr 60 80 50 Cr 75 Cr

Excellent 100 100 Cr

Performance less than the fair target will get Zero score.
For BSNL internal circulation only

SSA GPMS sample- 1/5

Group level weightage Weightage %

Dimension

KPI

Fin C/M C/M C F A 25 % Opn Opn Opn Opn Opn

CFA revenue (Rs. Cr.) Net adds - (by number of subscribers) Basic (in 000's) Net adds - (by number of subscribers) Broadband (in 000's) CCR rate for Landline 50% weightage each for local and STD Fault rate (LL, BB) % of faults cleared by next working day (LL, BB) % of new services (LL, BB) provisioned within the norm (7 days for LL, 15 days for BB) Overall performance (on scale of 1 to 5 to be assessed by Circle Head)

40 5 10 10 5 10 10 10

For BSNL internal circulation only

Achvd Marks Achieved Weighted Score

Performa nce Level Target

Good Excel

Group

Fai

SSA GPMS sample- 2/5

Marks Achieved 30

Fin
M 30 o % bi lit y C/M Opn Opn Opn

CM revenue (Rs.cr.)

40 20 10 10 10

CM Net adds (by number of subs in 000's)

BTS availability (%) Call drop rate (%)

Blocked call rate - TCH congestion (%)

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

Opn

10

For BSNL internal circulation only

Weighted Score

Weightage %

Dimension

weightage

Group

KPI

Performa nce level

Target
Excel Good Achvd

Fai

SSA GPMS sample- 3/5

Dimension weightage KPI

Perform
Target
Exc el Achvd Goo

Fin
E 1 nt 5 er % pr is e
C/M

Enterprise BU revenue( Rs .Cr)

Number of new Enterprise Gold + Silver accounts penetrated

40
20

Opn
Opn

MLLN circuit uptime (%)

Average provisioning time (no. of days)

15
15

Opn

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

For BSNL internal circulation only

10

31

Weighted Score

Marks Achieved

Weightage %

Group

Fai

SSA GPMS sample- 4/5

Weightage % Target Fai Perfo r Go 20 20 20 20 20 Group Group level weightage od Exc e el levels Target achived Marks achived Weighted Score Dimension KPI

Fin Fin

New Businesses revenue (Rs. Cr.)

Budget adherence on opex (% actual spend vs. budgeted) (on items excluding those in schedule P)
Overall assessment on Finance related issues, including budget adherence, financial planning, accounting, revenue assurance etc. (on scale of 1 to 5 - to be assessed by Circle Head) Customer satisfaction level (including QoS) (Scale of 1 to 5) Overall assessment on HR related issues, including training, recruiting, promotion, transfers etc. (on scale of 1 to 5 - to be assessed by Circle Head)

Others

20 %

Fin

C/M Empl devel

For BSNL internal circulation only

rmanc

SSA GPMS sample- 5/5

% Weightage Group level weightage Dimension
Performance levels

Marks achived

Target achived

Group

10 %

Overall performance (on scale of 1 to 5- to 10 be assessed by circle head)

Overall

For BSNL internal circulation only

Weighted Score

KPI

Target

Excel

Good

Fair

IPMS

Ultimate linkage to individual performance.

Initially implemented only up to DGM level. Gradually, the system to be expanded to other levels.

For BSNL internal circulation only

Features of Good Score Card

1. Executive Involvement
Strategic decision makers must validate and own the strategy and related measures

2. Cause-and-Effect Relationships

A good Scorecard will tell the story of your strategy in actionable terms.

Every objective selected should be part of a chain of cause and effect linkages that represent the strategy

3. Balance between outcome and leading measures There should be a balance of outcome
measures and leading measures to facilitate anticipatory management

4. Financial Linkage
Every objective can ultimately be related to financial results

5. Linkage of Initiatives and Measures: Each

initiative should be based on a gap between baseline and target.
For BSNL internal circulation only

Discrimination
Failure to communicate standard

Failure to give timely feedback

Failure to allow employee to correct performance Inconsistency in measuring performance

Failure to document performance objectively

For BSNL internal circulation only

For BSNL internal circulation only