Business

Wednesday September 30, 2009

Forum: Managers’ key role vital


KUALA LUMPUR: With key performance indicators (KPIs) being the buzzword in both the public and private sectors, management heads need to play a key role in the success of performance management in the workplace, say top consultants.

Aon Consulting Worldwide chief commercial officer Anand Shankar said a lack of commitment by senior management was one of the main reasons for unsuccessful performance management processes in the workplace.

“Goals are cascaded at the top. Managers need to work with employees to define what needs to be done successfully,” he said at a conference organised by the Asian Strategy & Leadership Institute (ASLI) yesterday.

Themed Transformation through performance management – strategies, systems & tools for success, the one-day conference aimed to assist organisations move towards a more innovative approach in achieving decision-making clarity towards a performance-driven future.

The event was officiated by Minister in the Prime Minister’s Department Tan Sri Koh Tsu Koon.

“These are challenging times. With many crises on various fronts and increasing competition, the Government and private sectors need to have rigorous performance management processes,” he said in his keynote address.

ASLI chief executive officer Datuk Dr Michael Yeoh said there were three criteria for performance management processes to be successful – top-level commitment, employee engagement and the management of cultural change. “Dealing with cultural change is probably the biggest challenge of all,” he said.

Anand said even if an organisation had a recipe for success, it could still meet with impending doom if its workforce could not adapt to cultural change. “Culture eats strategy for breakfast,” he said.

Boston Consulting Group Malaysia managing director Vincent Chin quoted former General Electric chairman and chief executive officer Jack Welsh, who once said he viewed people as flowers to be cultivated rather than objects to be destroyed.

Quoting Welsh, he said: “Managers must walk around with a can of fertiliser in one hand and a watering can in the other, to nurture their employees. If you are not nurturing them, any fault of theirs is equally yours.”

He said an ideal KPI system should be specific (describes the desired outcome in detail); measureable (evidence exists for achievement of the objectives); actionable (can be influenced by the employee); realistic (achievable yet challenging) and time-specific (is linked to milestones for the year).

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