C O N T E N T S. April

Transcription

1 April

2 NIIT A typical BSC BSC Key Terminologies Types Of BSCs Key Changes in BSC FY18 My Performance Scorecard BSC Creation guidelines BSC Approval Workflow Individualization BSC changes due to role change Variable Compensation Parameters Sales Incentive Parameters Timeline :: 31 st May 2017 Implications of Non-Compliance BSC FY18 Calendar C O N T E N T S April

3 Goal NIIT Cascaded Goal Setting Strategies & Focus Areas of Business Group Goals of a Business Unit/Practice/Vertical BG HEAD IBU/Practice /Vertical HEAD Functional HEAD Goals of a Function, Department or Team Goals of a Role Goals of an Individual NIITian April

4 A Typical BSC April

5 KPA Performance Measure Calculation Method Unit of Measurement Data Source Parameter Type VC Parameter VC Weightage SI parameter SI Weightage Annual Target Performance weightage Upside Achievement Flag BSC : Key Terminologies Key Performance Areas (e.g. Finance, Customer, Internal Process, Learning & Growth) Parameters that are objectives and Outcomes Detailed calculation method or formulae being used to compute the achievement Unit used to quantify the target/threshold target wherever applicable Source where the data is obtained from to establish the achievement Standard refers to the parameter with standard targets e.g. Slippage % where for every one in a particular role having this parameter will have the same target. In all other situations it will be non-standard Applicable to identified P&L Leaders covered under VC plan to identify whether it s a VC parameter or not. Wherever it is "Yes" it is a VC parameter Weightages to be assigned to the identified The total weightages should add up to 100% VC parameters depending on the criticality. Applicable to NIITians covered under SI plan to identify whether this is a SI parameter or not. Wherever it is "Yes" it is a SI parameter Weightages to be assigned to the identified SI parameters depending on the criticality. The total weightages should add up to 100% Goal to be achieved against the parameter during the year Weightages to be assigned against each BSC performance measure depending on the criticality. This will be used to compute the over all BSC achievement %age. The total weightages should add up to 100% Applicable to following parameters - Profit, Collection, Order Book Revenue, Gross Margin, Gross Profit, Operating To specify in each parameter whether higher the achievement than target the better it is or lower the achievement the better it is. April

6 Types of BSCs for an Individual NIITian Type of BSC Parameters Targets Standard Standard Standard eg Faculty/Content Developer Customized Standard Non-Standard with minimum norms against some parameters (Sales Roles) Unique Mostly Non-standard Non-Standard April

7 BSC FY18 :: KEY ENHANCEMENTS Provision to capture monthly targets Auto-population of KPA on selection of Parameter *Option to copy LY BSC (with/without targets) to create TY BSC *Multiple Options for autopopulation of Quarterly/Annual Targets *Enhancements will go live by April 15, April

8 My Performance Score Card To drive the culture of Monthly Performance reviews, get real-time feedback & aim for better performance Mandatory Monthly Performance Review for all CLC members and all R&S through the online My Performance Score Card by 10th of the following month Complete Team Performance Scorecard view (Goals & Actuals monthly & CYD ) to Supervisors All managers to drive Monthly BSC Performance Reviews; HR available for facilitation if needed BSC as a Live Scorecard for NIITians to see where they stand in terms of achievement against goals Path: iniitian -> Human Resources -> Performance Management -> My Performance Scorecard April

9 S. No. Particulars Guidelines BSC Creation Guidelines Measures to be in-line with the business strategy & focused on personal contribution and/or uniqueness of the role 1 Performance Measures & Achievement Tracking Have output oriented and Widely Important Goals (WIG). Avoid subjective measurement; to be used under exceptional situations only Data Source should be an independent source and auditable. If data source is an internal tracker, then the parameter details should be clearly defined at the time of BSC creation/approval/template creation. This will need to be uploaded for PACE evaluation Apportion greater weightage to the financial KPA for all P & L role holders 2 Critical Guidelines Not mandatory to have Parameters under each KPA in order to enable right amount of focus on key deliverables Do not have inter-connected parameters (one leading to the other) Restrict duplication of goals across multiple roles in the same hierarchy divided accountability April

10 Periodicity of targets: BSC Creation Guidelines Please note: We have introduced monthly periodicity which is optional for all Plans & KPAs. Lead & Lag Measure: Lag Measure It is an after-the event measurement, essential for charting progress Lead Measure More difficult to determine than lag measures. They are predictive and therefore do not provide a guarantee of success. KPA Lag Indicator Lead Indicator FINANCIAL Broaden Revenue Portfolio Revenue Growth Add 3 more products to the portfolio this year CUSTOMER Customer Retention Customer Retention % Improved Customer Service INTERNAL PROCESS Reduce Operational Problems Products/Service Error Rate Hours spent with customers LEARNING & GROWTH Alignment of goals to company strategies Goal alignment of all employees to company strategy Growth in Revenue Per Employee April

11 BSC Approval Workflow STANDARD & CUSTOMIZED BSC APPROVAL WORKFLOW STD: NIITian submits the BSC, after Individualization if applicable, to the immediate supervisor. CUST: NIITian does the Individualization if applicable and updates the targets and submits the BSC to the immediate supervisor. On immediate supervisor approving, the BSC gets frozen. The individualization if applicable needs to be done within 5 working days from the date of receipt of your online BSC. If not done the BSC will get auto forwarded to the immediate supervisor. Supervisor will have 3 working days from the date of receipt of your online BSC. If not done within these 3 working days, the BSC will get auto frozen. If the 1st Level modify the BSC then history will be maintained and NIITian will get an auto trigger communicating the changes and that he can view the BSC with changes. BSC will remain in not frozen state for 72 Hrs for any subsequent modification after which it gets autofrozen. April

12 BSC Approval Workflow UNIQUE BSC APPROVAL WORKFLOW NIITian creates & submit the BSC to 1 st Level Supv. BSC sent back for modification PEM Validates and freezes the BSC Biz HR Validates and freezes the BSC BSC submitted to the PEM for validation if NIITian is at Level up-to R4 BSC submitted to the Biz HR for validation if NIITian is at the Level of R5 and Plan S Yes 1 st Level Supv. has the option to send back, modify or submit the BSC BSC Ok Is the 1 st Level is at S7 or above? No BSC submitted to the PEM/Biz HR for validation & PEM/Biz HR submits to 2 nd Level Supv. BSC Not Ok R5 Level supv. freezes the BSC BSC submitted to the next Level till it reaches an R5 supv. in the hierarchy Yes Is the 2 st Level is at R4 or below? No 2 nd Level Supv. Freezes the BSC April

13 BSC HAVING SI PARAMETERS BSC Approval Workflow For NIITians who have SI parameter in their BSC there BSCs will have different flow. After NIITian submit the BSC to the immediate Supervisor, it will go to PEM for validation then to Biz HR and then Business Group Head. BSC will get frozen when the Business Group Head approves the SI parameters in the BSC. CLC BSCs CLC members who are 1st & 2nd Level Report of CEO & All P&L Leader's BSCs will be approved by CEO April

14 Individualization of BSC For Standard and Customized BSCs, to take care of the additional responsibilities, if any, option to individualize and add Performance Measures up to a maximum of 20% weightage will be possible. No modifications to the standard Performance Measures and Targets can be made. These could be through addition of single or multiple Performance Measures where weightages can be assigned in the multiples of 5% up to a maximum of 20% weightage. Depending on the total weightages being assigned to these additional Performance Measures, the weightages already assigned to the Standard Performance Measures will get reset automatically. However, no changes would be made to the weightages assigned to the Performance Measures under the Financial KPA. Weightages will get back to normal if Individualized Parameters get deleted. All such modifications will need to be approved by the immediate supervisor. April

15 BSC change due to Role Change In-case of Role Change new BSC needs to be created for New Role. If it is STD/CUST, defined template for that role will be mapped. If it is UNQ Create BSC linked will be enabled for BSC creation for that new position. NIITian will have separate BSC Blocks for each Role. Extend Role option is available if same BSC with old targets needs to be created for new role. New BSC should be created and made online within 1 month of any such change. Change of BSC without Role Change BSC Delimit option is available to add a new BSC Block without Role Change. BSC can be delimited to a desired duration and new BSC Block (Blank or copied) can be assigned. New BSC should be created and made online within 1 month of any such change. April

16 Variable Compensation (VC) Parameters P&L Leaders and a few identified critical role holders will have customized Individual Variable Compensation Plan. The VC parameters will be the critical financial parameters with EBIT being the default VC parameter. Threshold Target & Payout on achievement of threshold target, Upside Rules will be according to the defined Individual VC Plan. ALL VC Parameters to be approved by the respective Business Group Heads & CEO. VC BSCs will be deemed complete after such approvals only. April

17 Sales Incentive (SI) Parameters NIITians in Sales Roles in benefit plans EP, P, EQ, Q & R should have their SI parameters from among the BSC parameters. SI Parameters to be a maximum of 3 & ALL from FIN or Customer Acquisition parameters from CUST. ALL SI Parameters to be approved by the respective Business Group Heads. SI BSCs will be deemed complete after BG Head s approvals only. All Sales Incentive parameters must have quarterly targets and threshold targets based on which the Sales Incentive will be paid. For Financial parameters where Achievement is higher the better, threshold targets will be minimum 80% or last year s actual achievement whichever is higher. April

18 What is expected from NIITians NIITians are expected to discuss with their supervisor & finalize the BSC and ensure that the BSC is uploaded in the Online BSC system latest by 31 st May 2017 April

19 Implications of Non-Compliance for NIITians PACE 2017 will not be deemed complete until BSC FY18 is approved and online. April

20 BSC FY18 Calendar Deadline Activity 31-Mar-17 Sign off on BSCs of Pat s DRs 03-Apr-17 BSC Module Go Live 25-Apr-17 UNQ BSC Facilitation workshops 1-5 th May Town Hall Style communication of STANDARD & CUSTOMIZED BSCs Goal Sheet 30-Apr-17 STD/CUST BSC Templates go Live on iniitian 31-May-17 Last Date for ALL BSCs to be online April

21 Thank You! April