9 - setting and measuring objectives Flashcards
3 elements to corporate objectives
- Misson - main reason for the firm’s existence “mission statement” - what do we stand for or where are we going and why?
- Strategic objectives - high level and wide ranging. Big picture goals. Could include:
- the markets the firm will operate in
- nature & quality of the service
- how it will provide a product or service that differs from others
- profitability
- market share
- ESG goals
- Culture - Business strategy - could include:
- strategic marketing plan
- management and organisation structure
- processes and systems
- resource (head count, budget)
Planning hierarchy
- Strategic planning - setting overall objectives. Typical timescale 1 - 10 years. General managers, division heads.
- Tactical planning - Deciding what methods to use to meet overall objectives. 6 months - 2 years. Department heads.
- Operational planning - concerned with day to day needs. 1 week - 1 year. Detailed & focused. Manager.
Management control cycle stages
- Design the plan
- overall aims
- key objectives
- key tasks to be carried out
- performance standards required
- action plan, what needs doing and timescales. - Implement the plan - put into action.
- Monitor the results.
- Evaluate the results against the plan.
- Put into effect any required corrective action.
Individual objectives
Role of manager to see key business objectives are met so plans and methods drawn up to meet these, including individual team members objectives.
Could be in the following areas:
Financial - fee income, client retention, range of advice, new clients.
Internal quality - KPIs, standard met for FF completion/admin. File checks.
Fair outcomes for customers - complaints, customer satisfaction survey, feedback, how dealt with vulnerable clients.
Learning & growth - CPD, exams, training courses.
Lots of firms use balanced scorecard focused on KPIs in the 4 areas.
SMART
Specific
Measurable
Agreed/ Achievable
Realistic/ Reviewable
Time bound
(not all the examples I listed as objectives in the 4 areas are this & would need to be adapted for a balanced scorecard).
Important…
- they relate to the overall corporate objectives
- cover a range of things that are critical to the sucess of the business
- clear & individual understands them
- can be measured
- monitors not just what they achieve but how they do it
Measuring individual performance
Inputs - measure effort being put in i.e. number of calls made, clients seen.
Outputs - show results KPIs
Qualitative - more subjective, harder to measure.
Examples:
- CPD is of a high quality & relevant
- Good compliance reviews for advice & reports
- Appropriate conduct / evidence of living the company values
- Good consumer outcomes being achieved
Quantitative -looks at numerical figures, targets being met.
Exsmples:
- Required amount of CPD completed.
Number of client reviews delivered on time
- Phones answered within agree wait times
- Number of reports completed within SLAs.
Key elements of effective MI
Relevant
Accurate
Timely
Acted upon
Recorded
(Acted upon = key triggers need to be identified that will instigate action & what standard is required should be considered)
(Recorded = documenting the data and decisions made & how they will improve customer outcomes. Also about monitoring and acting upon trends.)
Be clear
Be cost effective - cost of gathering doesn’t outweigh the benefit.
Meet regulatory requirements
Purpose of performance management
3 different performance meetings
Elements of an appraisal
- Establish objectives
- Improve performance
- Hold people to account - link to reward and career progression
Typical process
1. Appraisal
2. Performance review meeting/ interim meeting
3. Ongoing 1-1s
3 elements of appraisals
Performance review - looking back at the year
Potential review - looking at future prospects and possibilities
Reward review - link between performance and pay
Two types of performance related pay
Profit sharing - payments made based on the performance of the company or a certain department/area. % of salary based on overall business profitability.
Merit rating - each employee given a rating dependent on their performance against key metrics & then salary increase determined by rating.
Benefits of performance reviews and appraisals to the individual and the business
Individual
Opportunity to receive feedback
Can be motivational and increase job satisfaction
Boost self esteem
Learn of areas for improvement
Confirmation completing job to company standard
Discuss aspirations & future plans & opportunities with manager
Agree training & development needs, either for current role or in preparation for future role.
Business
Check effectiveness of recruitment & induction process
Assess previous training & development programmes - have aims been achieved/ staff performing as trained
See what the need/ demand is for further training/ training in other areas
Helps work succession planning - identify future talent
Provide evidence/MI that conduct rules & consumer duty requirements being met.
5 components of career management - identified by Chartered institute of personnel and development
Career planning & support activities
- help individuals identify what is possible and what they want to achieve.
Career information & advice
- encouraging individuals to take responsibility for their career development. Could include coaching/ mentoring / planning courses.
Developmental assignments
- secondments or project work provide experience to develop career.
Internal markets & job posting systems
- If a business is proactive in the process, can shape future capabilities.
Initiatives aimed at specific populations
- Succession planning, graduate programmes, talent management schemes
Talent management - 9 box matrix
Matrix with performance assessment on the up axes and potential assessment on the horizontal axes.
Has low, moderate and high along each axes.
Talent risk- low performance & low potential
Solid professional - moderate performance, low potential
High professional - high performance, low potential
Inconsistent player - low performance, moderate potential
Key player - moderate performance & moderate potential
Current star - High performance, moderate potential
Rough diamond - low performance & high potential
Future star - moderate performance & high potential
Consistent star - high performance and high potential
Talent management - 9 box matrix
Matrix with performance assessment on the up axes and potential assessment on the horizontal axes.
Has low, moderate and high along each axes.
Talent risk- low performance & low potential
Solid progressional - moderate performance, low potential
High professional - high performance, low potential
Inconsistent player - low performance, moderate potential
Key player - moderate performance & moderate potential
Current star - High performance, moderate potential
Rough diamond - low performance & high potential
Future star - moderate performance & high potential
Consistent stat - high performance and high potential
Activities associated with talent management
coaching
mentoring
undertaking projects or specialist tasks
job rotation/ secondment
Development using competencies 3 stage approach
- Identify individuals’ strengths and weaknesses against a competency framework
- Determin development plan to address gaps or areas of weakness
- Reassess behaviour against the framework to evaluate sucrss of development plan and transfer of competencies to the workplace.
