Using existing knowledge to realize continuous performance improvement frank evers

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Using Existing Knowledge to realize Continuous Performance Improvement

Designing and Implementing an Effective Performance Measurement System

Drs. René Pals & Drs. Frank Evers [email protected]

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Goal of this lecture

• Introduction to HR Shared Service Centre (HR SSC)

• Introduction to theory of Enabling Performance Measurement System (PMS)

• Insight in applying theory to practice

• Explain methodology of current project

• Have fun!

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Schedule

Now Introduction

Theory

16h30 Break

16h45 From theory to practice

Methodology at HR SSC

Conclusions

Discussion / Questions

17h30 Drinks!

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DC HR: HR SSC of Dutch MOD

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Subject:Establishment of the HR SSC Organisation

in the context of theRedevelopment of the HR function

Content:The context

» Motive » Focus & Roles» Objective & Assignment» Model & Programme

Our practice» Objective » Service delivery model & Organization design» Implementation» Ambition & Success factors

Agenda

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Redevelopment of the HR function

The context

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• Environment• Government coalition agreements Balkenende I + II• Budget cuts

• Defense operating model• Defense agencies less independent• Separate policy and execution, share support

• Quality and effectiveness• modernize HR services: focus on results • more businesslike (individualize + less pampering) • realizing reduction of costs (ICT + HR ratio)

• Future-based HR organization• centralization + harmonization + standardization• shared support + accessibility of information

Why change?

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Strategy Change

Performancedevelopment

Transactions

Administration

D. Ulrich

From focus on HR-control … to focus on business

BPRWFM

ESSMSS

Strategy Change

Performance development

Administration

Transactions

What is the focus?

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HR is a shared responsibility where players with specific focus contribute to the

integral result

HR(setting framework, giving support

and advise)

Line management(operations and

results)

Employees(performance and

employability)

Why different roles?

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Who does what?

Employee ContributionCommitment and CompetenceCapacity for change

HR Questions and Answers (multichannel)Management of HR processes, knowledge, data and systems

HR Administrative efficiencySalary Administrative efficiency

HR AdministrationSalary Administration

HR in the business

DC HR

End 2008Now

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Objective: Realize a standardized HR organization with:

• well educated employees who through• standard policy and processes with• contemporary process support and information services• are capable to deliver high-quality HR services

Assignment: Restructuring of HR which answers to:

• better HR-ratio• new HR service delivery model• quality norms• Defense-wide HR information system

What is the objective?

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Integrated HR system Peoplesoft / Payroll Administration

New roles for managers, employees and HR

HR Policy & Terms of employment

Line Management Employees

HR Defense Agencies Service center Personnel

HR Staff HR Advisors

HR SSC Expertise & Services

centers

What are we building?

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Redesign processes & systems

Concentrate HR services & establish HR SSC

Install standardized retained HR (Business Partner)

Increase quality of the HR function

Project P&O 2000+HR-BPR + UPS

Project HR Concentration & HR SSC

Project Reinstall HR Defense Agencies

Project Quality HR function

Desired end state

Veranderen cultuurProject Change ManagementRealize behaviour change

How are we going to achieve the end state?

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Restructuring the HR function

Our practice

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Objective HR SSC

The future HR organization will concentrate all administrative, registrative and HR support services in the HR SSC.

Service area contains:• Personnel administration• Payroll administration• Central point of contact for all HR- and Payroll-questions• Disclosure HR information (data, incidents, information)• Execution of the control of HR processes and systems

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Service delivery model

Self- service

Information Expertise Specific support

E&S centers

HR staff

HR LeadershipEmployee

Line manager

HR advisor

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Information Desk / Front-office(service desk)

4 teams

Support center / Back-office(specific support)

Expertise center / Mid-office(knowledge-management)

4 clusters

User supportPayroll

AdministrationHR administration Other support

Providing the service

Commander HR SSC

Support Department(support)

Transition team(implementation)

Staff(servicemanagement)

Managing of services

Suppliers,

incl IT M

anagement

Use

rsC

lient

sT

hird

par

ties

HR

-policy

Service center Personnel

Organization design

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Acceptance testing

Data quality

Reporting

Key user support

HR Answer & Advise (answering questions)

Sharing HR knowledge(PeoplePoint, FAQ, portal)

Control AO HR(processes + systems)

Phase 1 (Establishment)

Phase 1A (FO+MO) Phase 1B (BO)

Recalculation

Collection

Central mutation

April 2006 October 2006

Support Recruitment & Exit

Phase 2 (Expansion)Releases of HR BPR

Support Career & Development

Support General HR services

Support Compensation & Benefits

2007 - 2008

R1 R2 R4R3

Phased implementation

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Ambition

HR SSC, Your HR contact …THE central point of contact for all

HR - questions and - support

• fast and accurate• promises are promises• continuous improvement

Trust and Appreciation

CONVENIENCE

PROMISEPLEASURE

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Success factors

Good selection and training

From day 1 emphasis on Client Focus and Team work

Focus on Continuous improvement

Process (AO), System (WFM) and Performance (KPI)

Adequate IT (incl. system performance)

Use of implementation partners

Determination of dedicated core team

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Using Existing Knowledge to realize Continuous Performance Improvement

Designing and Implementing an Effective Performance Measurement System

Drs. Frank Evers [email protected]

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Goal of the discussed project

“To improve

the qualitative and quantitative performance

of the employees at the department Information Center

continuously”

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Theory

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Learning organization (Senge, 2006)

• People continuously expand their capacity

• New/expansive patterns of thinking are created

• People continuously learn to see the whole together

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Theory of reasoned action (Fishbein & Ajzen, 1975)

Attitude Towards Behavior

BehavioralIntention

Actual Behavior

SubjectiveNorm

Beliefs &

Evaluations

Normative Beliefs&

Motivation To Comply

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Formalization: Coercive vs. Enabling (Adler & Borys, 1996)

Coercive formalization:• Top-down enforced• No influence of employees• Less (not) suitable for culture of continuous learning!

Enabling formalization:• Bottom-up cooperation• Memory of lessons from experience• Deviations are possibilities for improvement• Feedback (through KPI’s)

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Enabling PMS(Wouters & Wilderom, 2007)

Characteristics ‘Enabling PMS’:

• Based on local knowledge & experience

• Experimentation allowed

• Professionalism of employees (& voice)

• Team trust

• Balanced leadership behavior (-openness)

• Leads to continuous improvement!

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Theory of reasoned action - Project

External Motivation

towards Performance Measurement

Team Trust

Management Openness

Leadership Behavior

Professionalism

Voice

Having Ideas

Internal Attitude towards

Performance Measurement

Proces

Learning Organization

PlaygroundAdjust & Evaluate

Define KPI’s

Experi-mentation

Test against objectives

GoalInput

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Progress

External Motivation

towards Performance Measurement

Team Trust

Management Openness

Leadership Behavior

Professionalism

Voice

Having Ideas

Internal Attitude towards

Performance Measurement

Learning Organization

PlaygroundAdjust & Evaluate

Define KPI’s

Experi-mentation

Test against objectives

Input

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Based on knowledge & experience - 1 (Wouters & Sportel, 2005)

Existing KPI’s

• Sometimes informal

• Information from observations & conversations

• Short time periods

• Usually combinations of local & central data

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Based on knowledge & experience - 2 (Frese et al., 1999)

Having Ideas VoiceRewarded

suggestions

Personality

Job Complexity & Autonomy

Long-term Benefits

Short-term Benefits

Management Openness

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Professionalism (Kerr et al., 1977)

• Expertise

• Autonomy

• Identification with profession & fellow professionals

• Commitment

• Maintain high ethics

• Effort to improve work quality

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Team trust (Wouters & Wilderom, 2007)

Depends on whether employees:

• Feel safe • Feel comfortable • Feel motivated

• Are enabled to learn collectively

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Leadership (Avolio et al., 1999; Bass et al., 2003)

Transactional leadership:• Rewarding for good work• Reprimanding for bad work• Expectations ~ consequences• Stable basis for good performance

Transformational leadership:• Broaden / deepen interests employees• Awareness of mission, vision & objectives• Beyond self-interest• Effective on long term

Balance between transactional & transformational!

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Break

15 minute coffee break

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From theory to practice

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Progress

External Motivation

towards Performance Measurement

Team Trust

Management Openness

Leadership Behavior

Professionalism

Voice

Having Ideas

Internal Attitude towards

Performance Measurement

Proces

Learning Organization

PlaygroundAdjust & Evaluate

Define KPI’s

Experi-mentation

Test against objectives

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Top-down vs. Bottom-up KPI’s

Top-down (coercive):• Quick implementation• Connected directly to corporate KPI’s• Resistance from employees• Undesired side effects: gamesmanship, absenteeism Less effective & efficient

Bottom-up (enabling):• Mobilization of implicit knowledge & experience• Performance improvement by self-reflection• Perception of incompleteness removed• Implementation usually more difficult Creating a learning organization

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Allowing experimentation

Playground

Define KPI’s

Experi-mentation

Test against objectives

Adjust & Evaluate

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Playground for employees

Restrictions for playground:

KPI’s related to customers

Mission, vision, organization HR SSC

Internal objectives

Playground of employees

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Department management

Further refinement of playground:• Joint playground for department management and employees

• Current KPI’s are not disposed; they are being further developed

• Clear management tools

Shift of competence:

Leading Supporting

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Link between top-down & bottom-up KPI’s

Current KPI’s are being further developed

Management can guide discussions

Directive actions are not ruled out, but minimized: • Employees become more self-steering• This is desired, but within the given playground

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KPI cooperation

Facilitated by:• Change manager• Quality manager• ICT employees

Department management

Employees

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Valid, Reliable, Complete and Efficient insight in Performance

•Valid

•Reliable

•Completeness

•Efficient

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Methodology at HR SSC

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Zero-measurement

• Multiple sessions (small group sizes)

• Anonymous survey

• Results not always comparable with theory!

• Offers suggestions for intervention during the project

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Zero-measurement – results found

• Employees insufficient aware of own responsibilities• Leadership behavior needs to be more transformational

External Motivation

towards Performance Measurement

Team Trust

Management Openness

Leadership Behavior

Professionalism

Voice

Having Ideas

Internal Attitude towards

Performance Measurement

Proces

Learning Organization

PlaygroundAdjust & Evaluate

Define KPI’s

Experi-mentation

Test against objectives

GoalInput

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Brain Write(Thompson, 2003)

• Threats to team creativity

• Brain Writing: at certain points cease talking write

• Nominal Group Technique

No influence, productive simultaneously, memory

Question: “What is high-end performance for the department in 2 years, according to you?”

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Formulate & prioritize performance areas

Based on results Brain Write:

• Collect & categorize ideas

• Prioritize areas during sessions with employees and management

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Form Result Teams ~ experimentation

• Employees can choose whether to join a work group and which work group

• Diversified teams work out the selected performance categories (also: further development of relevant existing KPI’s) • Autonomy of work group

• Communication between work groups

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Progress

External Motivation

towards Performance Measurement

Team Trust

Management Openness

Leadership Behavior

Professionalism

Voice

Having Ideas

Internal Attitude towards

Performance Measurement

Learning Organization

PlaygroundAdjust & Evaluate

Define KPI’s

Experi-mentation

Test against objectives

Goal

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Discussion / questions?

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Drinks!