Performance management: A-Z of Strategy Execution_CIPM of Nigeria conference_delivered by Dr Charles Cotter on 25 November 2021

1. PERFORMANCE MANAGEMENT – THE A-Z OF
STRATEGY EXECUTION
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
CIPM 53RD ANNUAL NATIONAL CONFERENCE
25 NOVEMBER 2021

3. PRESENTATION OVERVIEW
• BRIDGING THE STRATEGY EXECUTION GAP –
5 CRITICAL SUCCESS FACTORS TO HARNESS
PM AS A STRATEGIC LEVER OF BUSINESS
PERFORMANCE:
• Organizational Culture (HiPO)
• Tool (Balanced Business Scorecard)
• System (PMS)
• Process (9-step)
• Role of HRM professionals (Strategic
Performance Advisors)

4. STRATEGIC MANAGEMENT AND
EXECUTION
• Strategic management is the comprehensive collection
of ongoing activities and processes that organizations use to
systematically coordinate and align resources and actions
with mission, vision and strategy throughout
an organization.
• Strategic management activities transform the static plan
into a system that provides strategic performance feedback
to decision making and enables the plan to evolve and grow
as requirements and other circumstances change.
• Strategy Execution is basically synonymous with Strategy
Management and amounts to the systematic
implementation of a strategy.

8. BRIDGING THE STRATEGY EXECUTION GAP – 5 CRITICAL
SUCCESS FACTORS TO HARNESS PM AS A STRATEGIC LEVER
OF BUSINESS PERFORMANCE
• Organizational Culture (HiPO)
• Tool (Balanced Business Scorecard)
• System (PMS)
• Process (9-step)
• Role of HRM professionals (Strategic Performance
Advisors)

10. DEFINING A HIGH PERFORMANCE
ORGANIZATION (HiPO) CULTURE
• A high-performance organization is characterized by clarity
and coordination.
• Everyone plays a crucial role in driving the company forward, and
everything that happens at the individual, group or departmental
level contributes to the organization's goals.
• People understand their roles and how their efforts contribute to
producing the desired results.
• Andre de Waal of the HPO Center offers this more formal
definition: "A High Performance Organization is an organization
that achieves financial and non-financial results that are
exceedingly better than those of its peer group over a period of
time of five years or more, by focusing in a disciplined way on that
which really matters to the organization."

11. HIPO –
5 STRANDS OF SUCCESS

15. BALANCED BUSINESS SCORECARD
(BBS)
• The Balanced Scorecard (BSC) is a strategy performance
management tool - a semi-standard structured report,
supported by design methods and automation tools that can
be used by managers to keep track of the execution of
activities by the staff within their control and to monitor the
consequences arising from these actions.
• The critical characteristics that define a Balanced Scorecard
are:
❑Its focus on the strategic agenda of the organization concerned
❑The selection of a small number of data items to monitor
❑A mix of financial and non-financial data items

17. • The balanced scorecard suggests that we view the
organization from four (4) perspectives, and to develop
metrics, collect data and analyze it relative to each of
these perspectives:
❑Learning, Innovation and Growth
❑Business (Internal) Processes
❑Customer
❑Financial
BBS PERSPECTIVES/DIMENSIONS

18. • The “new” balanced scorecard transforms an organization’s strategic plan from an
attractive, but passive document into the "marching orders" for the organization
on a daily basis.
• It provides a framework that not only provides performance measurements, but
helps planners identify what should be done and measured. It enables executives
to truly execute their strategies.
• Given the insight and wisdom provided by Kaplan & Norton, the balanced
scorecard is a management system (not only a measurement system) that enables
organizations to clarify their vision and strategy and translate them into action.
• It provides feedback around both the internal business processes and external
outcomes in order to continuously improve strategic performance and results.
• When fully deployed, the balanced scorecard transforms strategic planning from
an academic exercise into the nerve center of an enterprise.
MODERN APPLICATION OF THE BBS

19. LEARNING, INNOVATION
AND GROWTH
PERSPECTIVE
• Strategic question:
❖ “To achieve our vision, how will sustain our ability
to change and improve?”
• Examples (measurable indicators):
❖ Time to develop new generation of products
❖ Life cycle to product maturity
❖ Time to market versus competition
❖ Is there the correct level of expertise for the job?
❖ Employee turnover
❖ Job satisfaction
❖ Training/Learning opportunities
• Value Outcome:
❖ Organizational knowledge and growth capacity

20. BUSINESS (INTERNAL)
PROCESS PERSPECTIVE
• Strategic question:
❖ “To satisfy our shareholders and customers,
what business processes must we excel at?”
• Examples (measurable indicators):
❖ Cycle time
❖ Unit cost
❖ Yield
❖ New product introductions
❖ Number of activities per function
❖ Duplicate activities across functions
❖ Process alignment (is the right process in the
right department?)
❖ Process bottlenecks
❖ Process automation
• Value Outcome:
❖ Efficiency

21. CUSTOMER
PERSPECTIVE
• Strategic question:
❖ “To achieve our vision, how should we
appear to our customers?”
• Examples (measurable indicators):
❖ Percent of sales from new products
❖ On time delivery
❖ Share of important customers’ purchases
❖ Ranking by important customers
❖ Delivery performance to customer
❖ Quality performance for customer
❖ Customer satisfaction rate
❖ Customer percentage of market
❖ Customer retention rate
• Value Outcome:
❖ Customer satisfaction

22. FINANCIAL PERSPECTIVE
• Strategic question:
❖ “To succeed financially, how should we appear to our
shareholders?”
• Examples (measurable indicators):
❖ Cash flow
❖ Sales growth
❖ Operating income
❖ Return on Equity (RoE)
❖ Return On Investment (ROI)
❖ Return on Capital Employed (RoCE)
❖ Financial Results (Quarterly/Yearly)
• Value Outcome:
❖ Financial performance/profitability

23. • Clarify or update a business's strategy
• Link strategic objectives to long-term targets and annual budgets
• Track the key elements of the business strategy
• Incorporate strategic objectives into resource allocation processes
• Facilitate organizational change
• Compare performance of geographically diverse business units
• Increase company-wide understanding of the corporate vision and
strategy
STRATEGIC UTILITY AND FUNCTIONAL VALUE
OF BBS’s

26. PERFORMANCE
MANAGEMENT BEST
PRACTICES
https://www.surveymonkey.com/r/V8SPMMZ
• #1: The Performance Management System (PMS) of
your organization is directly linked to the strategic
goals of the institution.
• #2: The PMS of your organization is (horizontally)
integrated with the other HRM functions and also the
core business processes (finance, customer &
operations) of the institution.
• #3: The PMS of your organization adapts from only
management performance expectations to
management, customer and other (internal and
external) stakeholder expectations and is agile and
responsive to environmental change, global best
practices and future trends.
• #4: The PMS of your organization is balanced in terms
of focusing on improving both short-term outputs or
results and also in the medium to long-term future
i.e. future-proofing the business/operating model.
• #5: The PMS of your organization encourages full
participation and wide engagement and extensive
consultation, focused on measuring quality
standards.

27. PERFORMANCE
MANAGEMENT BEST
PRACTICES
• #6: The PMS of your organization is user-friendly,
simple and understandable for all users.
• #7: The PMS of your organization provides an
opportunity to recognize performance excellence.
• #8: The PMS of your organization is vigilant and
efficient in identifying and correcting poor
performance levels and under achievement of
performance goals and standards.
• #9: The PMS of your organization is line
management-driven with active support and
business partnering from the human resources
department.
• #10: The PMS is a continuous process that
accurately identifies multi-level (individual, team
and organizational) performance and skills gaps i.e.
generates crowd-sourced (360-degree) performance
intelligence and –analytics, which is effectively
leveraged as a performance development and -
improvement management tool.
https://www.surveymonkey.com/r/V8SPMMZ

28. • #1: BBS is aligned with organization’s strategic business plans
• #2: BBS is future-focused, adopting a strategic, medium to long-term approach
• #3: BBS is pro-active, sensitive and responsive to (internal and external)
environmental change and trends
• #4: BBS enjoys company-wide acceptance (ownership) of the measures and
processes
• #5: BBS is organized, well-coordinated and systematic approach
• #6: BBS is a collaborative and partnering effort (managers have co-opted business
partners to the process)
• #7: BBS is integrated (with other business management and administrative) and
cohesive process
BEST PRACTICE GUIDELINES FOR BBS

29. • #8: BBS generates meaningful business intelligence which informs business
planning and supports strategic decision-making
• #9: BBS integrates both scientific (metrics and analytics) and artistic (planning)
principles
• #10: BBS utilizes cutting-edge and innovative technology and software
• #11: BBS is continuously monitored, reviewed, evaluated and adapted
• #12: BBS yields a positive business ROI, with tangible/demonstrable outcomes
and impact – creates sustainable competitive advantages and organizational
change
• #13: BBS incorporates strategic objectives into resource allocation processes e.g.
financing/budgeting
• #14: BBS is a logical and rational process making use of cause-effect logic
BEST PRACTICE GUIDELINES FOR BBS

31. THE 9-STEP BBS BUILDING AND
IMPLEMENTING PROCESS (ROADMAP)

33. • Strategy maps are communication tools used to tell a story of how
value is created for the organization.
• They show a logical, step-by-step connection between strategic
objectives (shown as ovals on the map) in the form of a cause-
and-effect chain.
• Improving performance in the objectives found in the Learning &
Growth perspective (the bottom row) enables the organization to
improve its Internal Process perspective Objectives (the next row
up).
• This in turn enables the organization to create desirable results in
the Customer and Financial perspectives (the top two rows).
STEP 4: STRATEGY MAPPING

34. ILLUSTRATION:
STRATEGY MAPS

35. • During this evaluation, the organization tries to
answer questions such as:
❑Are our strategies working?
❑Are we measuring the right things?
❑Has our environment changed?
❑Are we budgeting our money strategically?
STEP 9: EVALUATION - STRATEGY RESULTS AND
REVISED STRATEGIES

36. • #1: Balanced Scorecard is a transformation journey and change initiative,
not a once off project - ensure that you have designed a Change
Management plan which should run parallel to the Balanced Scorecard.
• #2: Maintain a committed and engaged leadership - change should be
driven from the top
• #3: Develop an organizational culture based on results by establishing a
strategy management office
• #4: Focus the organization on strategy by holding review meetings
organized around strategy
• #5: Enhance individual accountability for results through objective
ownership
10 CRITICAL IMPLEMENTATION SUCCESS
FACTORS

37. • #6: Align the organization, systems and employee
performance around strategy through a rewards and
recognition programme
• #7: Create a performance, results oriented culture
• #8: Link budget formation, cost accounting and performance
results
• #9: Emphasize continual improvement
• #10: Link key organization initiatives to the balanced
scorecard development process
10 CRITICAL IMPLEMENTATION SUCCESS
FACTORS

39. (VIRTUAL) STRATEGIC PERFORMANCE ADVISOR MODEL
(COTTER, 2020)
• HRM Governance (e.g. HRM policies and procedures; HRM/people risk management, compliance with
ethics and x17 King IV corporate governance principles; Human Capital reporting; promoting workplace
democracy and HRM Auditing) – Level 1 of strategic maturity - transactional/current.
❑ Transition from level 1 to 2 – CRAFTING OF A HRM GOVERNANCE FRAMEWORK
• Workplace Advocacy (e.g. Employee engagement; employee voice; EVP; employee retention;
succession planning; creating a workplace culture of brand ambassadors; mainstreaming HRM and
creating future-fit employees) – Level 2 of strategic maturity - transactional/future-focused.
❑ Transition from level 2 to 3 – FUTURE-PROOFING OF THE BUSINESS MODEL
• Business Intelligence (e.g. competitive predictive HR metrics and analytics; future-proofing the business
model; applying evidence-based HRM; creating HIPO; knowledge management and collaborative
intelligence i.e. integrating and harmonizing AI, HI and BI and being trouble-shooting solutions
architects) – Level 3 of strategic maturity - strategic/current.
❑ Transition from level 3 to 4 – APPLYING PREDICTIVE ANALYTICS
• HRM Strategy (e.g. embedding HRM strategy into business strategy; the use of strategy maps; adopting
a strategic mindset and applying strategic management principles and processes) – Level 4 of strategic
maturity - strategic/future-focused.

41. 7-POINT HRM TRANSFORMATION
(COTTER, 11 JANUARY 2019)
• "In order to be feasible, to prosper professionally in 2019 and to be
future-fit, HRM will have to exchange the currency in which they trade
from old notes to noteworthy, Industry 4.0 and business relevant
denominations and value. Specifically, this change translates from:
• 1. feelings to facts;
• from 2. anecdotal to analytical;
• from 3. hindsight to insight to foresight;
• from a 4. business tributary to mainstream;
• from 5. intuition to intelligence;
• from 6. best practice (imitation) to best fit (internalization) to next
practice (innovation) and ultimately,
• from 7. a cost to a profit centre.
• Generally, this 7-point transformation means an upgrade to Evidence-
based HRM."

42. BUSINESS EXECUTIVE EXPECTATIONS OF THE SHRBP ROLE IN THE
COVID-19 TALENT MANAGEMENT ERA
(COTTER, 2021)
https://www.surveymonkey.com/r/VDG2NCT
• #1: Catalytic Driver of organizational Change
• #2: Proactive Business-minded Thinker
• #3: Collaborative business management Consultant
• #4: Purpose-directed Coach (of line managers)
• #5: Delivery (value-adding and results-oriented HRM
practices)
• #6: (Credible and Accountable) Performance Advisor
• #7: Strategic Facilitator and Enabler
• #8: Innovative Solutions Architect (and trouble-
shooter)
• #9: Digital Futurist and -Analyst
• #10: (Future-focused) Organizational Behavioural
Economist

45. CONCLUSION
• Key points
• Summary
• Questions

46. DR CHARLES COTTER’S CONTACT DETAILS AND SOCIAL MEDIA PRESENCE
• Mobile number: +2784 562 9446
• Email address: charlescotterhrdconsultant@gmail.com
• YouTube: https://www.youtube.com/channel/UCMtDro7N29l3KTat-rtRuGQ
• LinkedIn: https://www.linkedin.com/in/charlescotter/ and
https://www.linkedin.com/company/dr-charles-cotter-and-associates
• Twitter: @Charles_Cotter
• Facebook: https://www.facebook.com/CharlesACotter/
• SlideShare: www.slideshare.net/CharlesCotter