RACI Overcoming Barriers to growth session 3

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RACI Change Manager Employee Engagement

Session 3

2RACI Change Manager Pty. Ltd. | ABN 44 084 821 554 | Registered office 19 Market St, 3131, Nunawading, Victoria Australia | Ph. (03) 9012 6216

Session 3

1. Who is RACI Change Manager? 05mins

2. Linking RACI to PDs – Appraisals and KPIs 40mins

3. Recap on sessions 1,2,3 20mins

About Michael Carew (only if new attendees)

Process of transitioning RACI tasks to PD – Appraisals and KPIs

Rewards structures and traps

3

+ + + Future state

Session 1 Session 2 Session 3

RACI Change Manager Pty. Ltd. | ABN 44 084 821 554 | Registered office 19 Market St, 3131, Nunawading, Victoria Australia | Ph. (03) 9012 6216

RACI Change Manager

Strategy RACI Mapping RACI to position descriptions

Current state =

4RACI Change Manager Pty. Ltd. | ABN 44 084 821 554 | Registered office 19 Market St, 3131, Nunawading, Victoria Australia | Ph. (03) 9012 6216

From RACI Chart to Position Description

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RACI Chart – General Manager Position

Position Description

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Position Description

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Appraisal

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Appraisal to rewards

Rewards

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Weighting KPIsWe weight KPIs proportionate to their importance in achieving the results we want.

When we are applying an incentive such as a bonus we need to ensure that the KPI weighting is relevant to the goals or targets we have put in place

There are many ways to formulate a reward system based on employees achieving agreed KPIs

Minimum performance is what we expect the employee to achieve for the salary Performance Target is the stretch target 85% of the bonus is weighted against sales as this is the core purpose of the sales role

Sales Role KPIs and bonus structure

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Weighting KPIsScenario

• A sales employee has asked for a substantial pay rise of $10,000.• The employee currently achieves sales of $300,000 • The employer does not want to lose the employee but cant afford the

$10,000 the employee has asked for.

• The employee has done the following sums.• The current salary of $90,000 is based on the sales person achieving

$300,000 • If the sales person increases their sales to $500,000 the employer

makes an additional $30,000 in gross profit.

Sales Role KPIs and bonus structure

• The employer offers the employee a salary package of $100,000• The salary package • $90,000 base and $10,000 non discretionary bonus • The employer explains how the bonus will work• The minimum performance target is what his base salary covers• The employee must reach the performance target of all KPIs to achieve the

full bonus amount • The employer tells the employee we still need you to call customers and

create new accounts and the KPIs are weighted according to the priority in obtaining the short term goals of the company.

• The employer is not out of pocket as this increase in salary is based on the increase in sales.

The proposition

We have increased capacity without increasing the overhead

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Capacity and efficiency

100%

80%

45%

total capacity

optimal capacity

actual Capacity

uncontrollables

100%

80%

70%

total capacity

optimal capacity

actual Capacity

uncontrollablesuncontrollables

Increase Staff = Increases capacity = Increases cost

inefficienciesinefficiencies

inefficiencies

capacity increased to meet demand but at a much higher cost efficiency Increased to meet demand

Increase efficiency =Increases capacity =Minimal increase in cost

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RecapSession 1

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RecapSession 2

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It’s all about your Vision

Vision – (Your desired future state)

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Summary & Contact information

Michael CarewPostal PO Box 4128 East Balwyn Victoria 3103Reg. Office 19 Market St, 3131, Nunawading, Victoria, AustraliaW (03) 9012 6216M 0412 362 011E [email protected] www.raci.com www.companylms.com

Contact Details

Consulting Services• RACI implementation• Business efficiency • Business Strategy• Business Development• Business mentor and coaching • Company training delivery platforms• Employee Bonus systems

RACI Change Manager Pty. Ltd.

YouTube Tutorials https://www.youtube.com/channel/UCGE9Il9dVCK81ahNHq54P_g/videos