Performance

Management
The Benefits of Performance Reviews

Carlos Lages

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 8
Performance
Management
System

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 7
Quality
Improvement

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 6
Standards

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 5
Measures

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 4
Reporting

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 3
Overall
Improved
Performance

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 Achievement

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 of Better

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 Practices

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 Performance Management
Why ?
To maximize effectiveness. This requires

– More than measurement alone

– More than standards alone
– All four PM components to be continuously
integrated into a system of performance
management

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 Therefore a flow of
INFORMATION is needed
From Whom ?
General Managers
Operations Management
Account/Contracts Management
Finance & Administration
Commercial/Procurement
Field Management …………..Everyone !!!

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 Using the INFORMATION to
achieve results
• Quality
improvement
efforts

Managerial Action • Policy change

• Resource
allocation
change
• Program change
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 The four main components:

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 The Management Challenge
9 of 10 companies fail to execute strategy

• Vision Barrier: Only 5% of • Management Barrier:

the workforce understands 85% of executive teams
the strategy spend <1 hour per month
discussing strategy

• People Barrier: Only 25% • Resource Barrier: 60%

of managers have clear of organizations don’t link
understand of the strategy budgets to strategy

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 Poor Practice

By users and suppliers

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 Poor Practice ‘users’
Not developing/applying any contractor management
Policy/Practice
Focus on cost only
Poor communication - senior and local managers
Limited management systems in place – or open to ‘gifts’
No advanced planning of contractor needs - ‘last minuteism’
Playing off contractors against each other to cut costs
Not properly assessing
Giving minimal work instructions or debrief to temporary
personnel

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 Poor Practice ‘suppliers’
Taking work on at very low rates
Little focus on customer service & training programs
‘Small print’ terms and conditions and ‘get out’ clauses
Poor safety, practices and general care
No clear written policies
Very limited risk assessment
Supplying unsuitable, inexperienced personnel
Keeping no records or internal performance data
Evidence of using inducements and gifts

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 Research on
Good Practice

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 Summary of Good Practice

Users and suppliers work closely to:

1. Plan ahead
2. Understand each other’s requirements and
give regular feedback on fulfilment
3. Ensure all (sub-) contracted operations are
appropriately risk assessed, implemented,
managed, audited and reviewed

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 Good Practice Operations

• Build safety into contract tender process

• Buy on quality and value – rather than lowest price
• Treat contract equally
• Provide contractors with clear objectives for safety
management
• Assign realistic & achievable workloads
• Ensure systematic recruitment/training procedures
• Keep and use detailed operational statistics
• Undertake regular audits and reviews

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 Good Practice Operations

Above all

COMMUNICATE
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 REMEMBER

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 REMEMBER

Performance
Management Review is
not a reporting structure

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 To achieve the best
from your operations
you
should do:

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 Planning
• Objectives agreed Monitoring &
• Performance criteria for
the above agreed Supporting
• Support, training and • Monitoring of performance
development agreed throughout the cycle
• Timescales agreed • Provision of agreed
support
• Evidence collection
• Ongoing professional
dialogue

Reviewing
• Overall assessment of
individual’s progress against
the performance criteria
• Judgement on overall
performance
• No surprises

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 For such purpose we
have Performance
Review Forms that you
should complete
monthly with your
service providers
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 The Purpose:
To define the method used for evaluation
and reporting of a subcontractor’s
performance.

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 General:
The purpose of the review is to evaluate
the Contractor’s/Serv. Providers
performance on an interim and final
basis. It serves as a tool to let the
providers know how the EMCOR project
team evaluated to Contractor’s
performance in a wide range of
categories as they relate to the contract.

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 Procedure:
The review shall be monthly or when end of the
contract with the service provider/contractor. When
issues related to contractor performance arise
during the course of the contract, the review form
may be used at intermediate points rather than at
contract completion. This approach gives the
project team and the Contractor an opportunity to
review and discuss problem items prior to contract
completion.

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 Procedure: (cont.)

The original copy shall be completed with the

Senior representative for the Contractor with a
copy being retained by the applicable
departmental/specialist (EMCOR), a copy put into
the site project files and another for the contractor.

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 Procedure: (cont.)

The Monthly Summary Sheets shall be

forwarded to the Contractor’s Senior Manager by
the Facilities Manager (Emcor) for their review and
comment. The Contractor is given a period of time
usually 8 days to respond and 30 calendar days to
act. If the Contractor does not respond within the
designated time frame, the Facilities Manager
should forward to the Procurement Department

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 Summary

Level Frequency Format Copies to

Site, Procurement
Project/Dept. Managers &
and contractors
Contractor’s Senior Monthly Written
senior
Management
Management

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 Compliance

This process will be part of each site/facilities

Manager general compliance audit. Therefore
will be linked to individuals performance.

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 Be SMART
Use SMART goal criteria when reviewing and be;

 S pecific

 M easurable

 A chievable

 R elevant

 T ime-bound

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 Thank you
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 Questions?

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