Competency based Performance Management System Bogor, 14 Mei 2016 Prepared by: Yunus Triyonggo, PhD.

About me.. S-1 Teknologi Industri Pertanian IPB S-2 Magister Management UNDIP S-3 Manajemen Bisnis IPB HR Trainee – Manager : PT Indofood Sukses Makmur, Tbk. (9 years) Personnel & GA Manager : PT HM Sampoerna, Tbk. (1 year) HRBP : PT Unilever Indonesia, Tbk (8 years) VP HR : PT Nestle Indonesia (2 years) Chief of Human Capital Development : PT Sierad Produce, Tbk (until now) Hobbies : badminton, jogging

Model Kompetensi Profesi MSDM Indonesia MSDM O N E D S I N A I A P S R Pengembangan Organisasi Pengadaan SDM Pembelajaran dan Pengem- bangan SDM O N E D S Strategi dan Perencanaan Pengelolaan Sumberdaya Manusia I N A I Kerjasama Tim Komunikasi Orientasi pelayanan pelanggan Integritas A MSDM P Manajemen Talenta S Manajemen Relasi R Layanan Administrasi dan Sistem Informasi Pekerja A Konsultasi O Kepemim- pinan H Pemahaman Bisnis F A I B S Pengelolaan Karir I I E N S Hubungan Industrial Pengelolaan Remunerasi Kinerja & Yunus Triyonggo, 2014 (PMSM Indonesia) Kepmenakertrans No. 307/ 2014

Cara mendapatkan dokumen SKKNI MSDM selengkapnya? Just click: www.pmsm-Indonesia.com Atau akses ke Blog: yunustriyonggo.wordpress.com

Keluaran Pembelajaran Memahami konsep Manajemen Kinerja Memahami konsep Manajemen Kinerja berbasis kompetensi Mampu menjelaskan konsep Manajemen Kinerja berbasis kompetensi Mampu menerapkan Manajemen Kinerja di Organisasi

Performance Management Model Source: Mike Scott Associate

PERFORMANCE MANAGEMENT STEPS Performance Planning Performance Execution Feedback Consequences Development Cascading of Goals Performance measures provide “line of sight” from strategy to individual job performance Everyone knows how performance is measured and evaluated Everyone knows what they are supposed to do -- and how to do it! Everyone knows upstream and downstream dependencies Measurement is fact-based, relevant, actionable Information is standardized, visible, consistent, and timely (DO PROGRESSIVE REVEAL!!) This slide shows the 6 steps in the Performance Enhancement Model. 1. Cascading of goals provides that vital ‘line of sight’ I spoke about earlier. From the Balanced Scorecard perspective, these goals must include functional and process goals. Performance Planning was a broken process in many departments. In a 1997 Employee Pulse survey, less than 50% of employees said they understood how their performance was evaluated. We had a PPRD Part 1 process but it was not being used effectively. Performance Execution is the ‘how-to’ detail. Our Best Practice Teams provide rich materials for supervisors to coach their teams. Feedback require measurement that’s fact-based … CEP had already traveled far down this path Consequences strengthen the link between pay and performance. While we have made progress in sales incentive and customer service incentive programs, we’re still not where we want to be in this area. This has proven to be the hardest. In development, we have provided more tools for managers to assess performance and guide employee development, as you’ll see in a minute. [Link between Performance Enhancement and PI model ..] Significant component of all individuals’ pay linked to measurement Individual and manager identify performance gaps and develop plans to close the gaps

Human Performance Model Optimal or Desired Performance Causes Skills Knowledge Teamwork Goals/KPI’s Environment Motivation Tools Solutions Training Leadership/ Communications Performance Management Compensation Tools Processes Evaluation and Measurement Change Management Measure Business Challenges, Goals, and Strategies Performance Needs Actual Performance

What is Traditional Performance Management ? Traditionally, performance management systems concentrate on performance planning and evaluation, rewards and discipline, according to the 2000 Performance Management Survey (2000) Source : David D. Dubois & William J. Rothwell, 2004

Why Traditional Performance Management Can't Deliver Peak Performance 5 Reasons Why Traditional Performance Management Can't Deliver Peak Performance They are too slow They are too remote They are too vague They are too emotionally They are too focused on each individual alone Daniel D. Elash, Ph.D. (2009)

Reason #1 They are too slow. To be truly educational, feedback has to occur at the speed of business circumstances. It is most powerful when it follows directly on the heels of performance. When feedback is fresh it can be more deeply discussed, considered, and incorporated in a timely fashion.

Reason #2 They are too remote Too often the voices of customers, teammates and co-workers are filtered and delivered through the manager. Managers can't effectively explain or clarify issues and situations with which they aren't familiar. Placing the manager between teammates often reduces the ability of teammates to talk directly to each other

Reason #3 They are too vague (samar-samar) Useful feedback is specific, focused, actionable, and relevant to a particular situation or set of circumstances. This requires a level of explicitness that is seldom reached with current performance management systems, which rely on annual, or bi-annual performance reviews. Evaluated dimensions are often broad behavioral categories such as "responsible," "reliable" and "industrious." Such terms open the door for heated debates about their exact meanings in specific situations.

Reason #4 They are too emotionally laden (sarat) The mind is best prepared to grasp new information, think effectively and learn when it is clear and focused. Understanding, thinking and learning are more complicated when a person is anxious, self-conscious, angry or defensive.

Reason #5 They are too focused on each individual alone Optimizing your own performance without regard to your impact on others, or the synergies required for effective teamwork, is insufficient today. A successful company isn't a collection of individuals performing independently; it is a networked, interdependent system that operates as an organic whole. Feedback has to relate to individuals, but within the context of the whole interdependent system.

Challenges An Oracle White Paper, June 2012 However, according to a study by The Boston Consulting Group (BCG), business complexity has increased between 50 percent and 350 percent over the last 15 years. Teams that focus on performance management have been shown to generate as much as 30 percent more revenue per full-time employee than average teams Only 29 percent of companies create individual goals aligned to the organization A full 52 percent of midlevel managers and 74 percent of lower-level employees perceive the linkage between individual goals and corporate goals as very weak Up to 50 percent of employee time is spent working toward nonstrategic objectives An Oracle White Paper, June 2012

Why competencies? Competencies translate the strategic visions and goals for the organization into behaviors or actions employees must display for the organization to be successful.

The Benefits of better Employee competency Improved leadership capacity Companies with highest rated leadership development programs, compared to those with weak programs experienced: 600% increase in overall business impact 640% improvement in their leadership bench strength 480% improvement in leader engagement and retention (Source : Bersin, 2007)

The Benefits of better Employee competency Superior Talent Management = Significant Advantages 26% higher revenue per employee 28% less likely to have downsized during 2008-2009 40% lower turnover among high performers 17% lower overall voluntary turnover 87% greater ability to “hire the best people” 92% greater ability to “respond to changing economic conditions” 144% greater ability to “plan for future workforce needs” 156% greater ability to “develop great leaders” (Source : Bersin, 2010)

Performance Development Plan Individual Objectives Performance Development Plan They are … They are NOT … The 3-5 key things that will make the difference, therefore the main drivers for success in a role û The 100 things you do in your job Results delivered through performing the job, which makes the difference û A job description 3-5 priority targets focused on the personal contribution û A long “to do” list Results based û Activity-based Within the scope of the responsibilities of your role û Out of the person‘s control Agreed by both parties û A top-down set of directives

Bukan Target Individual Contoh Target Setting Target Individual Bukan Target Individual Mencapai pertumbuhan penjualan produk foods nasional sebesar 20% tahun 2014 Mengunjungi pelanggan 2 kali seminggu Meningkatkan Saleable Chick per Hen House (HH) dari 138 menjadi 143 DOC Broiler per HH pada tahun 2014 Melakukan proses penetasan telur Mencapai cost effectiveness target di pabrik Foods sebesar 2% dari NPS hingga akhir tahun 2014 Mengidentifikasi penyebab pemborosan di pabrik Foods Menyusun program cost reduction di pabrik Foods, dll. Menurunkan tingkat komplain pelanggan dari 20% komplain yang gagal ditangani menjadi Zero. Mendata jumlah komplain dari pelanggan PPIC Manager: Membuat perencanaan produksi sehingga menurunkan FG shortage dari 5% menjadi Nol pada 2014 PPIC Manager : Melakukan seleksi vendor RM dalam waktu maksimal 5 hari kerja dengan kualitas RM sesuai dengan standar. (Tugas Procurement) 9/16/2018

Potential discussion Skills Experiences Put real evidences objectively Competencies & living values Performance Discuss & Confirm Potential PT & B PT

What is a Competency? Observable abilities, skills, knowledge, motivations or traits defined in terms of the behaviors needed for successful job performance. The Iceberg as an Analogy Ability is a component of a competency to do a certain kind of work at a certain level A skill is the learned ability to carry out a task with pre-determined results often within a given amount of time, energy, or both Knowledge is a familiarity with someone or something, which can include facts, information, descriptions, or skills acquired through experience or education. Motivation is a psychological feature that induces an organism to act towards a desired goal and elicits, controls, and sustains certain goal-directed behaviors. Traits is something in biology, which involve genes and characteristics of organisms One's self-concept is a collection of beliefs about oneself that includes elements such as academic performance, gender roles and sexuality, and racial identity Motive is something (as a need or desire) that causes a person to act Source : Human Resource Systems Group, 2012

What is Competency-based Management? An HR management approach that standardizes and integrates all HR activities based on competencies that support organizational goals. Basic Competency Architecture Source : Human Resource Systems Group, 2012

The Benefits of better Employee competency 63% reduction in turnover due to increased employee satisfaction – due to greater clarity about performance expectations 63% 19% 19% improvement in employee performance 12.5% 12.5% increase in sales and profits due to Competency-based training programs (Source : Spencer, 2001)

Competency-based Performance Management Competencies define the behaviors necessary for goal achievement They facilitate a developmental approach to performance management Three Stages of Performance Management

How to integrate Competencies in the Performance Management Process Option #1 At the end of the performance cycle, the employee’s performance is evaluated in relation to the performance goals / objectives as well as the key competencies associated with each goal. By defining the competencies needed to perform each Performance Goal / Objective The manager and employee identify the key competencies required to achieve each performance goal / objective (typically 1 to 3 competencies per goal / objective) Not all competencies within the competency profile for the employee’s role / job will necessarily be assessed within the cycle the competencies being assessed are entirely consistent with the employee’s performance goals for the performance review cycle. Source : David D. Dubois & William J. Rothwell, 2004

How to integrate Competencies in the Performance Management Process Option #2 The performance plan includes the performance goals / objectives for the review period as well as the complete set of competencies from the competency profile for the employee’s role / job By integrating the competencies for the employee’s job into the PM process The performance goals / objectives address “what” must be accomplished during the review period, and the competencies measure “how” the employee conducted him/herself to accomplish their work All competencies defined in the competency profile for the employee’s role / job are evaluated key competencies for the effective performance during the review cycle, but not included in the competency profile, will not be assessed Source : David D. Dubois & William J. Rothwell, 2004

Performance Management System (PMS) Framework Sustainable performance System How What CORE COMPETENCIES: 1. INTEGRITY 2. TEAMWORK 3. CUSTOMER FOCUS 4. INNOVATION 5. ACHIEVEMENT ORIENTATION LEADERSHIP COMPETENCIES 1. SHAPE THE FUTURE 2. REAL ACCOUNTABILITY 3. BUSINESS ACUMEN 4. “CAN DO” MENTALITY 5. BUILD & DEVELOP SUPERIOR TALENT TECHNICAL COMPETENCIES

Integrated Performance Management System Succession Planning Goal Setting Interim Review Talent Day Performance Review Year end Review Multiple years of Performance creates basis for judgement of Sustained Performance Level High, Medium, Low Jan-Feb Dec-Feb Jun-Aug Annual Base Salary Short Term Bonus Long Term Incentive Dec-Jan Nov

What How What & How Business Target Division Target Individual Target Core Competencies Leadership Competencies Technical Competencies How

Bagaimana mengevaluasi “WHAT” & “HOW” Bandingkan kinerja aktual dengan target Lakukan observasi terhadap perilaku dan catat capaian yang terbukti nyata Fokus pada pencapaian, bukan aktivitas Mintakan umpan balik dari pihak-pihak yang terkait Evaluasi kinerja secara menyeluruh selama siklus nya Evaluasi perilaku secara menyeluruh sepanjang siklus, bukan hanya dari satu kejadian Tentukan tingkat kinerja secara menyeluruh dengan mempertimbangkan tingkat pencapaian : - Tujuan fungsi, - Tujuan individu, - Pencapaian penting berikutnya Evaluasi perilaku berdasarkan nilai-nilai inti perusahaan

List of Competencies (example) CORE COMPETENCIES : 1. INTEGRITY 2. TEAMWORK 3. INNOVATION 4. ACHIEVEMENT ORIENTATION 5. CUSTOMER FOCUS TECHNICAL COMPETENCIES : 1. FEED PROCESSING 2. FEED FORMULA 3. FEED WAREHOUSING 4. PROFIT & LOSS FEED BUSINESS 5. SERVICE LEVEL TO CUSTOMER 6. ETC… LEADERSHIP COMPETENCIES : 1. SHAPE THE FUTURE 2. REAL ACCOUNTABILITY 3. BUSINESS ACUMEN

Example: Commercial Farm Farm Manager Farm Supervisor Farm Operator Adm Assistant Technic Supervisor Security Guards Poultry Health = 138.000 population No Job Title Total Min Education 1 Farm Manager D-3 2 Farm Supervisor D-1/High School 3 Farm Operator 9 Vocational High School 5 Adm Assistant 6 Technic Supervisor 7 Security Guard 4 18 No KPI Std 1 Depletion 2.5% 2 FCR 1.5 3 Body weight (33 days) 1.7 kg 4 IP 330

Farm Manager Job Scope & Competency Model Example Item Description Main Task Plan, coordinate and control the execution of all operations involving farm Commercial production process from preparation to harvesting cage in achieving predetermined performance targets. Responsibility Resources planning, Production Management & Analysis, Health control, Community. Dimension 138.000 population, 17 subordinates Qualification S-1 or D-3 with min. 3 years experience Competency Core: Integrity, Teamwork, and Achievement Orientation Leadership: Real Accountability, Can Do Mentality, Build & Develop Superior Talent Functional: 1. Management of Broiler farming 2. Application of Biosecurity 3. Analysis of the performance and operational costs 4. Make farm operational planning 5. Farm Technics (ventilation, inlet, aeration, fan, etc.) 6. People Management 7. Mastery on farm technology 8. Mastery on utility (generator, electricity, etc.) 9. Mastery on Manpower Regulation 10. Communication skill

Competency Model – Farm Manager Knowledge Broiler Farming Management Biosecurity Cost & Performance analysis tools People Management Farm Technology & Utility Manpower Regulation Operate broiler farming Apply biosecurity SOP Do cost & performance analysis Establish Farm operational planning Managing farm team Mastery on farm technology Mastery on Manpower Regulation Effective communication skill Skills Integrity Teamwork Achievement Orientation Real Accountability Can Do Mentality Build & Develop Superior Talent Competency Attitude

Target Individual – WHAT Skala Nilai Target Individual – WHAT Nilai Kompetensi - HOW Mencapai semua target, melampaui beberapa target kunci 3 Melampaui standar pada mayoritas nilai-nilai inti dan kompetensi Perusahaan Mencapai mayoritas target 2 Mendemonstrasikan Nilai-nilai Inti dan Kompetensi Perusahaan sesuai standar yang telah ditetapkan Tidak mencapai dari mayoritas target 1 Tidak mendemonstrasikan Nilai-nilai Inti dan Kompetensi Perusahaan

Matriks Penilaian Kinerja Karyawancalibration 3/2 Individual Target = WHAT 3/1 3/3 Karyawan mencapai semua target, melampaui beberapa target kunci, namun tidak mendemonstrasikan Nilai-nilai Inti dan Kompetensi Sierad Karyawan mencapai semua target, melampaui beberapa target kunci, dan mendemon-strasikan Nilai-nilai Inti dan Kompetensi Sierad sesuai standar yang telah ditetapkan Karyawan mencapai semua target, melampaui beberapa target kunci, dan melampaui standar pada mayoritas nilai-nilai inti dan kompetensi Sierad Karyawan mencapai mayoritas target, namun namun tidak mendemonstrasikan Nilai-nilai Inti dan Kompetensi Sierad Karyawan mencapai mayoritas target, dan mendemonstrasikan Nilai-nilai Inti dan Kompetensi Sierad sesuai standar yang telah ditetapkan Karyawan mencapai mayoritas target, dan melampaui standar pada mayoritas nilai-nilai inti dan kompetensi Sierad Karyawan tidak mencapai dari mayoritas target, dan tidak mendemonstrasikan Nilai-nilai Inti dan Kompe-tensi Sierad Karyawan tidak mencapai dari mayoritas target, namun men-demonstrasikan Nilai-nilai Inti dan Kompetensi Sierad sesuai standar yang telah ditetapkan Karyawan tidak mencapai dari mayoritas target, namun melampaui standar pada mayoritas nilai-nilai inti dan kompetensi Sierad 3 Nilai-nilai Inti dan Kompetensi Perusahaan = HOW 2/1 2/2 2/3 2 1/1 1/2 1/3 FOCUS ON RED BOXES FIRST: If an employee receives a 1/1, they would likely be subject to performance counselling or warnings. It may also be the case of they were to receive a 2/1 or 1/2 rating. In all of these cases an employee’s performance or behaviour would be unsatisfactory and the rating should not be a surprise. If an employee’s performance or behaviour did not improve they would be placing their continued employment in jeopardy. An employee who receives a 1/1 (and in some cases a 2/1 or a 1/2) rating will be reminded of what is required in order to obtain a satisfactory performance or behaviour rating. FOCUS ON GREEN BOXES: If your rating is in the green boxes, you have been meeting or exceeding expectations regarding performance and behaviour – we would like all of our employees to be rated in the green boxes. FOUS ON ORANGE BOXES: If your rating is in the orange boxes, you are meeting expectations regarding performance or behaviour but not both. Your Manager should be providing you with guidance regarding how you can improve either your performance or behaviour and the rating should not be a surprise. 1 1 2 3

Meeting Kalibrasi Kinerja Apakah itu? Tim Manajemen yang berasal dari beberapa fungsi/ departemen melakukan meeting open forum mendiskusikan kinerja dari anak buahnya.. Meeting Kalibrasi merupakan elemen yang penting dalam Siklus Manajemen Kinerja dan dilaksanakan lebih awal sebelum dilakukan sesi review kinerja individual. Atasan mempunyai kewajiban hadir dalam meeting kalibrasi dengan membawa bukti-bukti kinerja dari masing-masing bawahannya. Apa yang bukan? Bukan tentang diskusi gaji Hasil Nilai kinerja semua karyawan yang sudah dikalibrasi dengan karyawan lainnya. Atasan Langsung telah dilengkapi dengan umpan balik yang berimbang tentang kinerja. Atasan Langsung telah dibekali dengan ide-ide untuk rencana pengembangan karyawan Nilai Kinerja tidak boleh disampaikan ke karyawan sampai review akhir tahun.

Kesinambungan Kinerja Matriks Kategori Talent (MKT) Tinggi Sumber Daya (1/3) Potensi Tinggi (2/3) Bintang Sumber daya (1/2) Sumber Daya (2/2) Potensi Tinggi (3/2) Kesinambungan Kinerja (Apa dan Bagaimana) Perlu Perhatian (1/1) Perlu Perhatian (2/1) Berpotensi (3/1) Rendah Rendah Tinggi ----------------- Potensi Talent ----------------

Suggested Action Plans consistently exceeding agreed individual business targets Recognise and reward Provide feedback Mentor/coach to improve Leadership Acknowledge contribution Challenge/stretch Expose Coach Set clear Milestones Coach Monitor/track Decision to continue or end employment Reward Milestones Training Coach to improve delivery Specific goals & objectives Delivery WHAT Inconsistent in meeting agreed individual business targets Inconsistent in meeting expectations Consistently exceeding expectations Potential Capacity

Talent Development 9/16/2018

Succession Plan

Contoh Formulir Competency based Performance Management System

Contoh Formulir Competency based Performance Management System

Contoh Formulir Competency based Performance Management System

Contoh Formulir Competency based Performance Management System

Contoh Formulir Competency based Performance Management System