E2-E3

MANAGEMENT

Group Performance Management

System

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 WELCOME

This is a presentation for the E2-E3 Management

Module for the Topic : Group Performance Management
System .
Eligibility: Those who have got the Upgradation to from
E2 to E3.
This presentation is last updated on 15-3-2011.
You can also visit the Digital library of BSNL to see this
topic.

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 AGENDA

Understand concept of Group Performance System

Foundation of GPMS and BBSC
Groupings in GPMS of BSNL
Sample SSA GPMS

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 GPMS concept

The GPMS is an initiative under Project SHIKHAR of

BSNL with the intent to have an objective and
transparent system for assessing performance.

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 GPMS concept
It is a system for:
Identifying KPI for individuals and various functional
groups within the organization.
Assigning objective KPIs to distinct groups aligned with
organizational objectives.
Assessing targets and their relative weightage against
such KPIs in objective & transparent manner.
Shall be used as yardstick for assessment of
performance of various groups.
Providing a basis for performance related HR policies.

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 Foundation of GPMS
GPMS is the new performance measurement system
with a similar implementation approach of BBSC.
BBSC concept was adopted by BSNL in 2006.
In 2009 , an improved performance management version
in the form of GPMS has been introduced.
The GPMS scorecards for all the group types have been
designed to consist of KPIs to measure the Group
Performance on Financial , Customer/Market and
operational Parameters.

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 Foundation of GPMS
In addition overall performance assessment KPI , it would
evaluate the groups on parameters that are difficult to
get captured quantitatively. An Overall performance
assessment would be done by the person to whom the
group reports. e.g.
The Evaluation for the groups at the corporate office
would be done by the CMD.

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 Foundation of GPMS

Evaluation of the Territorial Circles will be done by the

Management Committee (MC).
Evaluation of SSAs will be done by the respective Circle
Heads and
Evaluation of non-territorial circles would be done by the
respective corporate office Directors and Executive
Directors.

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 Foundation of GPMS

Every scorecard has a parameter to measure customer

satisfaction.
Customer Satisfaction to be assessed through a
customer survey administered by an external third part
agency and will be based on parameters such as brand
& advertising, product innovation , customer
responsiveness of field sales and customer service staff
, QoS etc. For circles which do not have any external
customer , the internal customers/stakeholders would be
doing the evaluation.

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 Background
Introduction of GPMS in place of BBSC was considered
because existing BBSC set up adopted by BSNL, has
following shortfalls :
1. Job description at an individual level were not clearly
defined- Hence creation of Individual scorecard was not
very objective and systematic.
2. Long list of Activities without clear cut delineation of
activities and responsibilities made it less conductive to
effectively identify and communicate KRA of a specific
post.

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 Background

3.Though BBSC have defined at various levels ,

the Large number of KPIs in each scorecard as
well as absence of critical enablers such as :
An appropriate org. structure.
Well defines processes for tracking
performance and IT system support hamper
their effective implementation.

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GPMS is considered Suitable for Implementation in
BSNL as

It is Based on new organization structure of BSNL.

KRA/KPIs are identified and defined on the basis of New
BU structure of BSNL, in consultation with top executives
of the respective BU.
Number of KPIs has been kept less to have focus
measurement of Key performance areas.
It is an Optimum combination of quantitative and
qualitative measurement.
KPIs are defined as per functional activities of an entity.

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Individual Performance Management System (IPMS)

Achievement of GPMS rests on the success of individual

executives in performing their assigned tasks.
IPMS has been introduced with intent to develop an
objective and transparent system for assessing
performance at the individual level.
IPMS will be on the lines of GPMS and to start with only
DGM and above rank officers are covered.

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 Groupings in GPMS of BSNL
Category Group Type Group types No. of
groups
1. Consumer Fixed Access , 7 7
2. Consumer Mobility
3. Enterprise
Corporate
4. New businesses
Office
5. Corporate Affairs
6. HR (Incl. Legal and Vigilance)
7. Finance
Territorial Territorial Circle 1 26
1. Project Circle 1 5
2. Maintenance Region 1 4
Non 3. Telecom Factory 1 3
Territorial 4. Training Circle 1 3
Circle 5. QA, 6. Telecom Stores, 7. 6 6
Inspections (earlier T&D), 8. ITPC
9. NCES, 10. Data N/W
SSA SSAs 1 330
Total 19 384

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 GPMS
Identifying Key performance indicators (KPI) for
individuals and various functional groups within the
organization.
Assigning objective KPIs to distinct groups aligned with
organizational objectives
Assessing targets and their relative weightage against
such KPIs in objective & transparent manner
Shall be used as yardstick for assessment of
performance of various groups.
Providing a basis for performance related HR policies

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 GPMS scorecard creation

BSNL Corporate office to decide it for 18 groups

For SSAs, territorial circles to decide

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 GPMS concept
Derived from the Vision and Strategy of the organisation
Planning
Long term strategic plan
Short term business plan and budgets
Measurement
Focused set of measures
Measures represent organization's plan and vision

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 GPMS concept

Review
Plans are regularly reviewed and suitably revised
Performance
Rewards are linked to driving key measures

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 GPMS elements
How do we look to shareholders?

Finance

How do customer see us? What must we excel at?

Customer/ Vision &

Strategy Operations
Marketing

Learning
& Growth

How must our organisation learn and improve?

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 GPMS element linkages
Financial Perspective
Return on 1. The economic model of
Investment
Revenue Productivity
Strategy Strategy key levers driving
Sources of Growth Sources of Productivity
financial performance
Customer/Marketing Perspective
Value Proposition
2. The value proposition of
Qualit Functio Imag Relatio-
Price
y
Time
n e ship target customers

Operations Process Perspective

Deliver Service
Build the Make the
the Exceptional
3. The value chain of core
Brand Sale
Product ly business processes

Learning & Growth Perspective 4. The critical enablers of

Staff
Competen + Technology
+ Climate for performance improvement,
Infrastructure Action
cies change and learning

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 Financial perspective

This has to do with :

Profitability

Growth

Shareholder Value

Increasing Revenue

Cost reduction & Productivity Improvement

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 Customer/Marketing Perspective
How are you performing from customers perspective?
What are the factors that really matter to customer?
Main concern of customers are:
 Time the time the company receives an order to the
time it actually deliver it.
 Quality Defect levels as perceived by the customers.
 Service- What is the value, your product or service is
creating for the customer.

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 Customer outcome measures

Market Share Market Share

Retention
Acquisition
Satisfaction Acquisition Profitability Retention

Profitability

Satisfaction

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 Operations perspective
Every business has a value chain by which value is created and delivered

Identify the Build the

Customer Service Customer
markets/ product/ need
need the
create the Deliver the satisfied
identified customer
product product

Innovation process Operations process Post sale service process

Innovation process : Critical to the future success of the business.

Operations process : Needed for efficient, consistent and timely
delivery of existing product and services to the customer.
Post sale service process: Warranty related, payment or other
activities enabling the customers to enjoy the quality product

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 GPMS element linkages
Financial Perspective
Return on 1. The economic model of
Investment
Revenue Productivity
Strategy Strategy key levers driving
Sources of Growth Sources of Productivity
financial performance
Customer/Marketing Perspective
Value Proposition 2. The value proposition of
Qualit Functio Imag Relatio-
Price
y
Time
n e ship target customers

Operations Process Perspective

Deliver Service 3. The value chain of core

Build the Make the
the Exceptional
Brand Sale
Product ly business processes

Learning & Growth Perspective 4. The critical enablers of

Staff
Technology
performance improvement,
Competen + Infrastructure
+ Climate for
Action change and learning
cies

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 Learning and Growth

To achieve our vision, how will we sustain our ability to

change and improve
The infrastructure that the organisation must build to
create long-term growth and improvement
Comes from:
People
Systems
Organizational procedures

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 Features of Good Score Card
1. Executive Involvement
Strategic decision makers must validate and own
the strategy and related measures

2. Cause-and-Effect Relationships
Every objective selected should be part of a chain of
A good Balanced cause and effect linkages that represent the
Scorecard will strategy
tell the story of
3. Balance between outcome and leading
your strategy in measures There should be a balance of outcome
actionable terms. measures and leading measures to facilitate
anticipatory management
4. Financial Linkage
Every objective can ultimately be related to financial
results

5. Linkage of Initiatives and Measures: Each

initiative should be based on a gap between
baseline and target.

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 Parameters in GPMS Sc

Measurable
Unambiguous
Negative or Positive
Each parameter is given weight and target (fair, good,
excellent)
Sum of weight of all parameters equals 100

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 Targets

Derived from companys targets conveyed down the line

Can be changed on review in exceptional cases
Must be based on accurate forecast considering
appropriate business environment

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 GPMS scoring
Performance Grading
Fair Good Excellent
Score-60 Score-80 Score-100

Performance level to be defined for Fair, Good and

Excellent
Score to be calculated in a linear manner as per
achievement
Performance less than the fair target will get Zero score
The total score against a KPI would be calculated after
multiplying the weightage of a parameter with its
performance score and final score will be sum total of
scores for all parameters.

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 Calculating score

Positive parameter: Weight x

Actual Achievement
Target
Example: Growth in connections, staff trained

Target
Negative parameter: Weight x
Actual Achievement

Example: Fault/100, Duplicates bills issued, Absenteeism

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SSA GPMS sample- 1/4

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SSA GPMS sample- 2/4

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SSA GPMS sample- 3/4

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 SSA GPMS sample- 4/4

Fin New Businesses revenue (Rs. Cr.) 20

Budget adherence on opex (% actual
Fin spend vs. budgeted) (on items excluding 20
those in schedule P)
Overall assessment on Finance related
issues, including budget adherence,
2 Fin financial planning, accounting, revenue 20
Oth assurance etc. (on scale of 1 to 5 - to be
0
ers assessed by Circle Head)
%
Customer satisfaction level (including
C/M 20
QoS) (Scale of 1 to 5)
Overall assessment on HR related
Empl issues, including training, recruiting,
20
devel promotion, transfers etc. (on scale of 1 to
5 - to be assessed by Circle Head)

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 IPMS

Ultimate linkage to individual performance

Can be a base for PLI
Initially implemented only up to DGM level

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