Performance Magazine - Printed Edition December 2016 by The KPI Institute

Issue No. 6 December/2016

INTERVIEWS ACADEMICS. PRACTITIONERS. CONSULTANTS. Insights from practice AROUND THE WORLD CLUJ-NAPOCA Best practice in strategy building BARBADOS Bridging the gap between man and government ARTICLES THREE WAYS TO FOSTER MEANINGFUL CHANGE HAPPINESS AND ORGANIZATIONAL PERFORMANCE TURKEY TOURISM THE COLLAPSE OF A FAMOUS TITAN? + LIFESTYLE, HARDWARE & SOFTWARE, AND RECOMMENDED RESOURCES

PORTRAIT

GARY COKINS

A lifetime of continuous improvement, change and development.

INDEMNITY STATEMENT

ÂŠ 2016 The KPI Institute Ltd. All Rights Reserved. ID Number: TKI0162031 ISBN-13: 978-1540844132 ISBN-10: 1540844137 An appropriate citation for this magazine is: The KPI Institute, Performance Magazine, Printed Edition, no. 6, vol. 3/2016, December, 2016, Melbourne, Australia Indemnity statement: The KPI Institute has taken due care in preparing the analysis contained in this publication. However, noting that some of the data used for the analysis has been provided by third parties, The KPI Institute gives no warranty to the accuracy, reliability, fitness for purpose, or otherwise of the information. The KPI Institute shall have no liability for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice. Published by:

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CONTENTS

EDITOR’S NOTE

NEWS

COVER STORY

Operational Performance

Turkey tourism. The collapse of a famous titan?

Performance Improvement

Neuroeconomics. Understanding human economic decisions

Strategy

Sattar Bawany

Michael J. Sutton

Social listening and social intelligence monitoring instruments

Dean Spitzer

Monica R. Allen

Mahmoud Mansi

Lim Kah Cheng

How to use the Balanced Scorecard in a start-up company

INTERVIEWS

PORTRAIT Gary Cokins. A lifetime of continuous improvement, change and development.

AROUND THE WORLD

28 28

The Canadian transportation agency. Increasing performance throughout the years

Guernsey’s opportunities in Fintech

Cluj-Napoca. Best practice in strategy building

Barbados. Bridging the gap between man and goverment

ASK THE EXPERTS How can we ensure our KPIs are aligned to the strategy?

LIFESTYLE

60 60

Clothes and performance. The secret of workplace attire

Get the most out of your language learning apps

The relationship between exercise and better brain development

Going up and up. Personal development & climbing

HARDWARE

D-Link AC3200 Ultra Wireless Route

Tobii Dynavox-EyeMobile Mini

Airtame

Individual Performance

HP Spectre x360

Helpful tips on how to perform an employee performance review

SOFTWARE

Interviews, questions & emotional intelligence levels

RescueTime

Three ways to foster meaningful change

Microsoft Teams

Organisational Performance

Kayak

Happiness and organizational performance

TimeCamp

Tesla plans on reviving an out of style business practice

Operational Performance

Hartsfield-Jackson Atlanta International Airport. Performance on the world’s busiest airport

How United Airlines improve operational performance

ARTICLES

DECEMBER 2016

RECOMMENDED RESOURCES

Books: Must-haves for your 2017 reading list

Moneyball. Sports, sabermetrics and the love of the game

Aurel Brudan CEO, The KPI Institute Andrei Costea Head of Publishing & Media

EDITORIAL TEAM Jesper Mentink Alina Miertoiu Marcela Presecan Andreea Poponea Mariette Wahyuningsih Maria Juncu Adelina Acatrinei Ana Lechintan Claudia Istratii

DESIGN Javier Rocha Head of Graphic Design

MARKETING Valentina Matei Head of Marketing

GUEST CONTRIBUTORS James Daniels Casey Mulqueen

With these thoughts in mind, we proudly announce the launch of our sixth issue of Performance Magazine, the winter edition. Performance Magazine is The KPI Institute’s prime resource for insights into the discipline of Performance Management. The content published in Performance Magazine pursues high and wide for some of the best, latest and most pressing topics of discussion in Performance Management and in adjacent areas of interest.

EDITOR’S NOTE

STAFF EDITORIAL COORDINATION

Encompassing The KPI Institute’s experience, research and expertise, PERFORMANCE Magazine – Printed Edition provides its readership with first-hand how-to, resources, and insights from practice, so as to assist them in their performance endeavors and in becoming state-of-the art professionals.

This edition provides details on the subjects of KPIs, the Balanced Scorecard, Operational Performance, Individual Performance and Strategy, among others. Flip through pages of interviews with renowned experts, extensive research studies, concept presentations, insights from practice, alongside software or hardware reviews, and books and movie recommendations, all related to performance management. December’s Performance Magazine takes its readers on a journey into the professional and personal life of Gary Cokins, an internationally recognized expert, speaker and author in advanced cost management and performance improvement systems, with over 40 years of professional experience and the founder of AnalyticsBased Performance Management LLC, an advisory firm located in Cary, North Carolina, United States of America. Gary’s magazine portrait will offer our readers a glimpse into his professional development path, how it has changed over the years and what exactly was at the root of these changes. Take part in public sector implementation processes from various countries and nations, as each edition will feature extensive analyses on the subject, compliments of our Business Research Specialists. Also, best practices, alongside the latest trends, will be offered for a wide variety of performancerelated sub-domains, from KPIs, to Innovation performance, and from Strategy and Business Planning, to Balanced Scorecard Systems. Last, but not least, the magazine features recommended resources for professionals interested in combining leisure and professional development, such as books and documentaries. So now we invite you to take part in a world dedicated to integrating performance and all that is comprised in the search for improvement, in its smallest details. Enjoy this December’s Performance Magazine! As we are always interested in gaining insights from practitioners who activate in a multitude of environments, contact us at editor@kpiinstitute.org if you are interested in becoming a Guest Editor, or having your interview featured in PERFORMANCE Magazine. Andrei Costea Head of Publishing & Media, The KPI Institute DECEMBER 2016

SCHEDULED COURSES IN 2017 Upcoming 2017 Training Courses Americas

City

Date

Certified Performance Audit Professional Certified KPI Professional

Washington DC Toronto

21 - 23 June 26 - 28 June

Asia Pacific

City

Date

Certified KPI Professional and Practitioner

Kuala Lumpur

24 - 28 July

Certified KPI Professional

Hong Kong

20-22 March

Singapore

8-10 May

Melbourne

8-10 May

Certified Performance Management Professional

Kuala Lumpur

15 -17 March

Certified Employee Performance Professional

Kuala Lumpur

15 - 17 May

Certified Supplier Performance Professional

Singapore

22 - 24 May

Certified Balanced Scorecard Management System Professional

Jakarta

15 - 17 May

Living Business Models with Dynamic Simulation

Kuala Lumpur

15 - 16 February

Europe

City

Date

Certified KPI Professional

Barcelona

3 - 5 April

Certified Performance Audit Professional

London

5 - 7 July

Middle East

City

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Certified KPI Professional and Practitioner

Dubai

19 - 23 February

Abu Dhabi

5-9 March

Dubai

19 - 21 February

Abu Dhabi

5-7 March

Dubai

22 - 23 February

Abu Dhabi

8-9 March

Certified Strategy and Business Planning Professional

Dubai

12 - 14 March

Certified Performance Management Professional

Dubai

14 - 16 March

Certified Customer Service Perfomance Professional

Dubai

19 - 21 March

Certified Employee Performance Professional

Dubai

26 - 28 February

Certified Supplier Performance Professional

Dubai

19 - 21 February

Certified Balanced Scorecard Management System Professional

Dubai

26 - 28 March

Certified Benchmarking Professional

Dubai

2 -4 April

Living Business Models with Dynamic Simulation

Dubai

12 - 13 February

Certified KPI Professional Certified KPI Practitioner

DECEMBER 2016

For more details visit our store at: marketplace.kpiinstitute.org/scheduled-courses

THE KPI INSTITUTE’S PROFESSIONAL CERTIFICATION PROGRAMS Certified Strategy and Business Planning Professional The course will help improve the business planning process and long-term organizational performance, through the use of strategic planning tools that will ultimately lead to smarter and quicker strategic decisions.

Certified KPI Professional and Practitioner This program is meant to improve the practical skills in working with KPIs and developing instruments like scorecards and dashboards. Participants will acquire a sound framework to measure KPIs, starting from the moment they are selected, until results are collected in performance reports.

Certified Performance Improvement Professional This course offers insights and best practices for improving performance in different scenarios, from data analysis and reporting, decision making and initiative management, to building a performance culture.

Certified Employee Performance Management Professional Attendees will gain exposure to best practices and key concepts and will learn how to establish and use criteria for performance evaluations, from implementation to improvement and maintenance of the company’s employee performance management system.

Certified Personal Performance Professional The two-day interactive program will help you understand personal performance, by explaining the benefits and clarifying the process of measuring it. It focuses on identifying ways to boost your performance outside working hours.

Certified Data Visualization Professional An exclusive framework that provides insights on effective visual communication, through a rigorous approach to creating visual representations of vast information, techniques of standardization and tailored data visualization tools.

Certified Data Analysis Professional Attendants will understand through practical learning how to effectively collect, analyze and interpret data by enabling managers/ analysts to draw insights from both quantitative and qualitative data, based on historical statistics and trend analysis.

Certified Benchmarking Professional Benchmarking methodological uniqueness is represented by the identification and analysis of the processes that lead to a superior performance of a company, offering the opportunity to compare an organization’s performance against industry competitors.

Certified Supplier Performance Professional Participants’ skills in managing supplier performance and developing a strategic approach to procurement will be developed by enabling the identification of performance gaps and implementing action agreements with suppliers.

Certified Customer Service Performance Professional Participants will not only understand the importance and implementation phases for the Customer Service Excellence standards, but they will be given the necessary tools to implement it internally and measure its impact externally.

Certified Innovation Performance Professional This course provides an interactive practicebased learning environment, focusing on best practices for developing and maintaining an innovation-oriented organizational culture within organizations. Certified Balanced Scorecard Management System Professional The course focuses on delivering all the information needed to fully comprehend the value of the Balanced Scorecard, as well as on developing the necessary skills for a successful implementation.

To browse through our upcoming training courses visit our online store at: marketplace.kpiinstitute.org/scheduled-courses DECEMBER 2016

NEWS

> Avoiding the “Never say never” mentality

> Marketing done slick – the Alex Boone method

Most business founders don’t build something just to sell it. Most of them get quite attached to their “business baby”, and in the eyes of some, this can oftentimes prove to be counter-intuitive to their own well-being. We have all seen companies that we held dear, either suddenly going bust or slowly drifting off the market radar, which is precisely why the “never say never” idiom is a good one to keep in mind if you are a founder.

Some would say that marketing is a science, others would commend it as art, but there are a few individuals who see it as a gamble, going that extra mile to see if it pays off. Such is the case of the Minnesota Vikings’ lineman, Alex Boone.

Product Hunt’s Ryan Hoover reportedly sold his business for $20 million dollars and believes it was the right time to do so. In his view, there are numerous factors one has to take into account when thinking about selling and simply latching a “Will Not Sell” sign onto one’s business is not good practice. One such simple factor is to understand whether a prospective buyer will accelerate or de-risk your company’s trend, stabilizing it, case in which it is fine to sell. Product Hunt had become the go-to place for 2 big groups: tech designers, eager to launch their newly created products, and venture capitalists, looking for the next big idea that’ll take the market by surprise. Hoover sold his site to AngelList, a website that is primarily visited by early-stage businesses looking to attract talent and finances. Product Hunt had previously managed to raise $7 million in venture funds, from several sources, including AngelList’s CEO, Naval Ravikant, with whom Hoover kept in close contact and as time went on, they both realized that in the long term, their companies would end up being unwilling competitors on the market. So Hoover decided the best option would be to merge the two companies, as both were pursuing the same end goals – connecting startups with marketers and creators. Hoover’s experience can be a useful guiding example for founders who are unsure if, how or when they should sell or not, reminding us that becoming too attached to our projects may not yield the results we hope for. 6

DECEMBER 2016

During the “Thursday Night Football” introduction, a customary practice for NFL games in the USA, most players take that opportunity to publicize their alma maters, but Boone thought better. During his introduction, instead of naming his university, The Ohio State University, he said “Offensive Line Performance”. Surely enough, that is not the name of a university. But it is the name of a training facility for offensive linemen, founded by former Pro Bowl player, LeCharles Bentley. What makes Boone’s marketing stunt more interesting is the fact that NBC, the broadcaster that was televising the Vikings’ game, usually charges $560,000 for 30-second commercials on Thursday nights, which are NFL game nights. So Boone managed to sneak in a free marketing spot and it was not the only time. He did the same thing during a Vikings’ “Sunday Night Football” game, when the broadcaster was the very same NBC. At this point, it is known that Boone is affiliated with the training center, as he has a video uploaded on their site, where he teaches pass blocking techniques, but it is unknown whether he is an investor or simply trying to promote something which he believes will be a successful business venture. The NFL has yet to issue a response to this situation, leaving some to wonder whether it will allow players to take advantage of the free publicity. Either way, Boone’s marketing stunt taught us all a very valuable lesson – marketing is unpredictable and if you want to be heard and/or seen, you have to make the most out of every situation.

NEWS

> A New Type of Business: Analyzing Pros’ Injuries for Sports Fans and Fantasy Players Are you a fantasy sports player? Then search no more. Tracy Hankin, the Chief Executive Officer of Inside Injuries, has found what you were looking for: an entire database comprised of injury data that analyzes the available information from a medical perspective, to give users a sense of risk. This Atlanta-based startup is a breath of fresh air for those sports fans and fantasy players who are looking for something more. The company began its journey as a hobby. Dr. Anand Lalaji, an Atlanta radiologist, player’s performance. This leads to the analysis of two simple stats, one of with a subspecialty in sports medicine, began writing blog posts about which estimates an athlete’s risk of injury going forward, while the other injured athletes, and slowly but surely his posts gained popularity. predicts how he will perform in his next game. Inside Injuries has recently signed its first deal with fantasy-sports company DraftKings, and Hankin believes this is the first of many. What is more, they also offer a free app for iPhone and Android, an app which includes data on more than 2.000 players, as well as all NFL players and a few free agents. What is different about Inside Injuries?

Through this app, Inside Injuries first analyzes the data and then rates an athlete’s injury. Depending on the injury the athlete has sustained, the app can rate his risk factor higher than his health performance factor. Hankin explains: “Any time we receive some type of news across the web, the algorithm checks if that information medically changes the injury risk or the ability to perform”.

In the ever-growing business of sports and fantasy games, Dr. Anand Inside Injuries not only boasts a comprehensive database of players, but Lalaji and Tracy Hankin have managed to come up with that little extra also uses a complex algorithm to illustrate what an injury means for a something to spice up the game.

> Investment plan for 2017 – the US retail market At the end of the year, many individuals are pondering where to shift their attention as we head towards 2017, in terms of monetary investment. Stocks? IT? Housing? Well, how about retail? Although retail investment isn’t the most exciting one for most investors, due to ever-shifting consumer preferences, an aggressively competitive environment and various disruptive changes that are currently taking place, here are 4 good reasons why you should look into the US retail environment. A) Less physical, more electronic In short, this means investing in businesses less focused on building an actual physical environment and developing an online presence. This move has a 2-part reasoning behind it: reduced startup costs and a constantly growing consumer base that looks online for what they want, rather than seeking the physical manifestation of that company.

B) Training and e-commerce Put plain and simple, nowadays it is worth much more to train your employees in using e-commerce strategies, tools, instruments and techniques than trying to build a bulky business that is packed with tens of employees. So look for companies that focused around this mentality. C) The surge of “best in breed” brands If you are still undecided whether to invest in a certain company, see if it’s a growing “best in breed” brand, that sticks true to its products and only does small adaptations to fit customers’ changing tastes. These brands garner loyalty from their clients, as they show stability and are a pretty good investment opportunity. Just look at American Eagle Outfitters or Urban Outfitters in the US. D) Consumer trust is still riding high Consumer confidence in brands and companies is still going great, having risen from 98.6 in October, to 107.1 in November. With economists feeling that current levels will last for a long while, all of the aforementioned reasons will also stay true, meaning companies that stick to them will register a good level of development in 2017. DECEMBER 2016

NEWS

> Longines launches ski-boot data chip at Sölden Once 2017 hits, the world of alpine skiing will be overwhelmed by exciting news that will mark the season and will be announced during the first stage of the FIS World Cup, which will take place in Sölden, Austria. Long story short, Longines, the luxury watch company from Switzerland, will be ready to share with the rest of the world some information regarding their new timekeeping and data handling technology for the sport. The Swiss company has been a major player in the alpine ski racing scene since 1933, surpassing challenges in the field of timekeeping and offering their highest level of expertise to measure a skier’s accomplishments. This year, Longines is prepared to exceed the limits of timekeeping by bringing new performance data to the field, in the hopes of boosting spectators’ experience and improving the overall understanding of the sport for all alpine skiing fans. What is the purpose of this technological innovation? Just like with any new piece of sports-related technology, the main aim is to improve results. Such a trend has already been noticed in football, rugby and baseball. In this particular case, the approach is quite similar. Longines’ new innovation is comprised of a chip that is supplied with a radar and motion sensors. The chip is attached to the skier’s boot and the sensors facilitate real-time and continuous measurement of an athlete’s speed. What is more, the sensors also enable the measurement of the acceleration and deceleration of the athlete’s speed, as well as the time it takes to reach 100 km/h and an analysis of the jumps. Who can see this data? Data is transmitted in the form of TV graphics and it can be seen by viewers at home, by those attending the competitions, and let’s not forget, by those who have most to gain from it – the athletes themselves. As a result of this new technological development, athletes will not only be able to keep track of their own progress, but through this instrument they can analyze it and constantly seek to improve.

> The Smartwatch report: Forecasts, Trends and Market Response When smartwatches first emerged onto the market, they were seen as the next big thing since sliced bread. But now that the hyped has slowly but surely dwindled down, one can only ask himself why has this happened? Well, if we look at the data provided by a BusinessInsider Intelligence report, we find out that 2015 was the boom year for the wearables market, meaning smartwatches, fitness bands and other such products. In 2015, these items became a big part of everyone’s lives, but the trend did not continue as expected once we got into 2016, as the report mentions a steady growth of only 18% in sales for all wearables. What’s more interesting is the forecast – according to BI Intelligence, if wearables won’t adapt to market requirements, the growth trend of 18% will most likely stay as it is, which is quite low, given the large amount of hype surrounding these products. So what were those aforementioned market requirements? As per the report, consumers quickly got used to most of the options offered by the existing wearables and demanded more. This took most developers by surprise and could not adapt quickly enough to satisfy a growing demand. Most products’ lack of long term evolution connectivity, LTE for short or 4G as is more commonly known, and/or device-specific apps rendered most users wanting more, as most of these items were not designed with such technology in mind at that time. Another big reason why the market response was shaped in such a way is due to the fact that a large portion of it is represented by the healthcare industry.

If you are wondering when will such a marvel of measurement be introduced in the world of sports, you don’t have to wait too long.

Most healthcare professionals quickly embraced this technology, but one could say they expected a tad too much from something that was barely in its infancy at the time. Most individuals quickly understood the great benefits that these wearables could bring to the industry, but expected too much in too little time, which caused demand to slow down after its initial boom.

This technological innovation in the area of timekeeping and data handling will be officially launched during the 2017 FIS Alpine World Ski Championships in St. Moritz (SUI), for which Longines is the Official Partner and the Official Watch.

Given that the market’s response was quite unambiguous, we can only expect that in future years, wearables developers will have learnt much from this initial experience and prove to be a bit more prescient when it comes to future products and designs.

DECEMBER 2016

NEWS

> How to increase your Amazon Affiliate revenue Nowadays, many entrepreneurs and marketers have turned to affiliate marketing as a new and innovative way of marketing a company’s products and increasing the rewards you reap from this. One such source of extra revenue is Amazon.com Inc. Amazon is the largest online store where you can find all kinds of products from manufacturers and sellers from all over the world. The Amazon Affiliate program tries to make money by generating leads or sales for the brand. I

6. Quality Content Producing quality content will surely improve your standing in Google’s rankings, as well as attract readers’ attention. The best quality content can be produced if you understand your target audience and know what they want. 7. Product Comparisons Honesty is the key to success. Writing fair product comparisons is a sure way of gaining visitors’ trust and thus, increasing sales.

t may sound simple, but for the affiliate marketer to build a successful business he must find the best way to design and grow his strategy, while keeping in mind that there are some do’s and don’ts involved. Here are a few efficient techniques for increasing your Amazon affiliate winnings:

8. Heat Maps Heat Maps give you information about where people click when they visit a website. By incorporating such a heat mapping tool for your site, you will have a better idea of where you should place the clickable content on the page.

1. Personalized Recommendations Personalized recommendations can be given through quizzes. By using a pop up box to engage visitors, one can find out what type of products they want or what specification they would like in a product.

Developing affiliate sites is still an evolving and complex process, but these few simple steps can prove to be the stepping stone in helping you increase your Amazon earnings.

2. Follow up Emails After taking the quiz, visitors can then receive an email based on the information provided. Through this email, the affiliate can easily direct the target customer to a range of different products. 3. Keywords Online shoppers first search for products using broader terms, but then they move on to more specific ones. That is why it is vital to use phrases and keywords that people are more inclined to use. 4. International Commissions An affiliate must not tunnel vision on the US Amazon link, as he might overlook clients who visit the site from countries such as UK, Canada, France, etc. That is why the affiliate should look for an intelligent plugin software that automatically localizes the link for any incoming visitors. 5. Images While reading articles, most visitors will click on the image, and if by clicking that image they are directed to the product page on Amazon, then the chance of them buying something will exponentially increase. DECEMBER 2016

NEWS

> Performance Management in the 21st century – understanding its core elements For a long time, people believed that an efficient use of performance management was enough in creating a successful company. However, starting with the late 1980s, another core element emerged, namely company culture, closely followed by the third and last key element in this chain, employee engagement.

> The Pros of Workplace Diversity

Building culture, nurturing high employee engagement, and focusing on performance management (with its vision, strategy, objectives, alignment and execution) are essential to a company’s development. However, for a company to be successful, these three elements must be approached in a coordinated and holistic manner, through which one can ensure solid results over time.

Inclusiveness should be an important part of any type of business. No matter if you own a large company or manage a small operation, a diverse workplace is the key to success. By incorporating diversity into the workplace, it will be easier to gain advantages and reap benefits.

Nowadays, the importance of these three elements in relation to performance management has been made clear and we see a growing number of companies paying closer attention to this matter. By appropriately and efficiently merging them together, they can create successful outcomes. Nonetheless, many people are still asking themselves: “How do they relate with one another?” and “How can they be positively influenced?”

1. Recruiting Opportunities: by hiring people from all cultures, you will have the chance to connect with the best.

Big outcomes cannot be solely achieved through implementing KPIs, OKRs and other performance management practices. No matter how good the management systems are, if the people are not engaged, they will not be able to achieve their objectives. In the same way, a strong company culture is a prerequisite for high engagement. A negative culture will surely create negative engagement. The company culture is the bedrock on which everything else rests. The culture and the core values are the foundation of a company. However, one must look deeper, beyond the surface, where the true values lie. The difference between the stated values and the actual lived values is a very good way of assessing a company’s strength. If the two are aligned, then the company’s culture is thriving. And you see this in practice in companies like Google, ACUITY or BCG. The next step in a company’s success is employee engagement. Committed employees are enthusiastic about their work, care about the company and the team, and become positive contributors to the company’s interests. Although it is hard to measure an employee’s level of commitment, its core drivers are pretty simple: trust, transparency, compatibility and growth. The last step in a company’s success is its performance management, where managers set objectives and KPIs, manage execution, and look at metrics to see whether progress is being made and outcomes are being achieved. This last step is the most manageable and visible one, but people must not be mistaken in believing that it is the only one, or the most important one. 10 DECEMBER 2016

Here are a few advantages of workplace diversity:

2. Employee Relationships: hiring people with diverse lifestyles will guarantee better interactions, as all employees will have the chance to get to know each other as individuals. 3. Productive Teams: a diverse team will have at its disposal not only a diverse set of skills, but also an entire world of creativity and a stronger desire of success. 4. Competitiveness: maintaining a competitive front is not an easy feat. However, by hiring a large number of diversely talented people, as well as people who understand cross-cultural marketing and speak across language barriers, your chances of raising above the competition will increase. 5. Tech Smarts: a diverse workplace is a chance to work with people who have a variety of backgrounds and job experiences, and who know how to work with different platforms and hardware. 6. Market Reach: having a diverse workplace will help you improve your marketing plans, thus you will be able to better identify your client base and to plan effective sales strategies. 7. Learning: inclusiveness at the workplace will create an openminded environment. Experienced employees will have no biases and all newcomers will be aware of the fact that they are starting off on the same level playing field. 8. Company Culture: opting for a diverse environment with diverse individuals will create a strong company culture. This diverse group of people will become a strong team with the desire to do their best and become successful. Diversity in the workplace is a must in our day and age. By embracing diversity, you will not only increase your chances of success, but you will also prove the fact that diversity is a great strategy that increases productivity and sales.

INTERVIEWS

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COVER EVENTS STORY

HOW TO USE THE BALANCED SCORECARD IN A START-UP COMPANY MARIETTE WAHYUNINGSIH

I for big corporations that have been in business for years; hence, not

t is often believed that a Balanced Scorecard approach is only viable

many start-up companies are willing to use this tool. In addition, many start-up companies are too focused on creating and developing their brand that they forget about building basic pillars for a solid structure. This runs counter to what many in the field believe as being the better strategy, as developing the company structure from the very start can define how productive and successful that company can really be. The following are five ways in which a Balanced Scorecard can be used in start-up companies: Target the four elements of the BSC Oftentimes in a start-up company, they will focus on one objective at a time. Yet, it is better to create a balance of essential elements to not only generate big sales, but also attract new customers, whilst satisfying the existing market base. This is what the Balanced Scorecard does, it lets the company balance out the elements that it needs. Kaplan and Norton, the founders of this tool, believe there are four elements that every start-up company should consider. Customer’s perspective how current and future customers view the product and company Internal business perspective what are the certain points that must be transcended Innovation and learning perspective find ways to develop value and improve the company/product Financial perspective how do shareholders perceive the company These perspectives will create important pillars that the start-up should focus on. It is a method to not only fulfill its sales goal, but maintain, grow and develop it. Adapt the scorecard to the start-up company It is important to use the scorecard method to the company’s advantage. Hence, shaping the scorecard to fit to the start-up company is crucial. In order to do so, they should adapt the four aforementioned elements based on your business values, needs and objectives.

Use it from the very beginning The BSC is designed to bring clarity to operational and organizational processes, when used from day one. Therefore, it is not enough to just have one in place. If used in a department’s daily tasks, those respective employees will quickly understand how to keep track of performance, maintain and develop it. It does not take much for this endeavor – a few minutes every day will suffice. Experiment with Ideal Target Numbers Having a balanced scorecard on hand does not mean that you will always strike wins in your business ventures. It is all about experimenting and finding your ideal target numbers. Since a start-up company is just barely entering the business environment, it is recommended to estimate an ideal target numbers right from the get-go. Then, once you start progressing through your field and the status-quo improves on a daily basis, the target numbers can change to suggest better aims. These ideal targets are designed to create practical ways to achieve success. Trust the BSC After implementing the Balanced Scorecard in the start-up company, the next step should be to understand how and where the company should be heading, focusing on future plans, which of course can be developed with the help of the BSC. Although this instrument has been around for many years, any start-up company can use this method to their benefit, without worrying about it being outdated. As the Balanced Scorecard emphasizes the company’s unique elements, the people within that organization can map out directions on how to utilize them in the most efficient and efficacious manner possible. The sooner they determine them, the sooner the start-up company can embrace and maintain success.

INTERVIEWS

EVENTS INTERVIEWS

Sattar Bawany Adjunct Professor/CEO and C-Suite Master Executive Coach, Curtin Graduate School of Business/Centre for Executive Education â&#x20AC;&#x201C; CEE Global, Singapore My mantra can be described by the following acronym: PPT - People before Processes and Technology.

Michael J. Sutton Officer/Chief Knowledge Officer, Funification LLC, USA The goal of Performance Management is to increase the clarity of strategic, tactical, and operational thinking, employee job satisfaction, and organizational commitment.

Dean Spitzer President, Dean R. Spitzer &amp; Associates, USA I believe that the major challenge in performance management is to make performance measurement more relevant to stakeholders.

14 DECEMBER 2016

Monica R. Allen Director of Strategic Planning and Evaluation, Mecklenburg County Government, USA Performance measures should reflect the needs of the community or customers rather than be solely focused on the organizational needs.

Mahmoud Mansi Founder, HR Revolution Middle East, Egypt I strongly believe that for it to be completely fair, performance management should be directly linked to the talents of the person.

Lim Kah Cheng Chief Corporate Services, Human Resources Development Fund, Malaysia Goal-setting is an important part of performance management. Plans always fall behind changes. We should look more into why that happens.

INTERVIEWS

If each member has his own metrics or indicators, along with some team-based indicators, then it makes it easy to see if under-performance is a result of one individual slacking or the whole team faltering.

Academic Sattar Bawany Adjunct Professor/CEO and C-Suite Master Executive Coach, Curtin Graduate School of Business/ Centre for Executive Education – CEE Global, Singapore In 2016, the Performance Magazine editorial team interviewed Sattar Bawany, Adjunct Professor/CEO and C-Suite Master Executive Coach at the Curtin Graduate School of Business/Centre for Executive Education – CEE Global, Singapore. His thoughts and views on Performance Management are detailed below. Which were the 2015 key trends in Performance Management, from your point of view? Well, I can only speak from my experience, from the perspective of a performance and talent management specialist. So that being said, I believe that more and more organizations are moving from a closed to an open system. Now, this topic can be explored through two lenses: a Singapore one and a regional one. Talking from the point of view of Singapore, the main trend in the public sector, for example, has been a focus on closed systems, with the aim of moving more towards open systems. In the private sector, the reverse stands true - open systems, where employee ranking& rating is the focus of performance review meetings. I honestly do not agree with the nature of such meetings, I do not find them all that useful, but alas that is the current trend in the private sector. The focus of any performance management discussion, be it in an open or closed system, should be primarily on the professional development of the employee. The line

manager should coach, guide and support the individual employee through regular ongoing feedback, so that he or she excels in terms of job or role performance. Some interesting things about this last point are the fact that many Gen Y representatives are now first-line supervisors or managers that want to influence some of the aspects that they find necessary in an organization, from a career development perspective. Adding to this, I see that ratings and rankings are becoming less and less important. While it’s true that some companies still prefer such a system, many have started changing them or abandoning them altogether and this would prove as quite the challenge - how to convince businesses to leave rankings in the past, whilst still offering their employees opportunities for development. Other fascinating developments that I see, both in Singapore and in the region as a whole, are increased awareness of Big Data and its uses and managing virtual teams. These type of teams consist of members that are simply not located in the same geographic region as the company’s HQ. This is due to globalization, companies adapting to a more flexible structure overall and learning the value of trust. Now, many professionals lack this last aspect and in my opinion, this is what keeps them from delivering an effective performance management system. But if I were to think of one trend specifically, that I see as being widespread, it would be the way managers have started to actually understand their role. What I mean by this is they have started to put emphasis on three key aspects: putting focus on leaders - what leaders have to do in a company to improve it, then emphasizing employee engagement through managerial coaching practices and continuous feedback and finally, developing more and

more managers that are equipped with the necessary skills to be great leaders, coaches, trainers and so on. What are your thoughts on the integration of Performance Management at organizational, departmental and employee level? This is an ongoing process and a very important step in defining key metrics for each level of the organization. It will most likely stay the same for quite a while, which is good, but what might actually change are the following: thresholds becoming ever more important managers acquiring more and more people and business management skills These changes though will not affect how flexible the whole process of cascading is and it will continue to work like we have seen in recent years. Which will be the major changes in managing performance, in the future? The major change will be a cultural shift, where the bottom-up feedback will become more important. Unfortunately, it saddens me to say this, but many companies in Asia and even in the U.S. have the traditional top-bottom feedback system. And this is prevalent across all industries, it’s not just one or two. I do not think it will change too quickly, but what is somewhat refreshing is seeing Gen Y and Gen Z representatives pushing for more bottom-up feedback. This means that employees are starting to give feedback to their bosses, offering them advice on how they currently see them and how they could change for the better. This is part of the overarching theme of reverse mentoring, where the younger generation teaches the older one a few new things and ideas. DECEMBER 2016 15

INTERVIEWS

My mantra can be described by the following acronym: PPT - People before Processes and Technology.

What aspects of Performance Management should be explored more through research? I believe three areas are of greater importance. The first one would be to establish a clear system of compensation, that is separate from performance ratings, because sometimes, due to how these two can intertwine, the end results are not the most optimal. Oftentimes, they are far from even being good. The second one would be developing greater differentiation between an individual’s efforts and his team’s. This is quite important when considering under-performance scenarios. If each member has his own metrics or indicators, along with some team-based indicators, then it makes it easy to see if underperformance is a result of one individual slacking or the whole team faltering. Such a method comes in handy when spotting high-performance individuals, whom you know can outperform others, but need to be shown that they are in the limelight and should better start improving their work, as it is not on par with what is expected of them. The third one would concern the matter of ongoing feedback and how coaching should be done on a daily basis, constantly, continuously. And my interest would be to find out how such feedback and coaching methods have affected an organization’s performance. Which organizations would you recommend to be looked at, due to their particular approach to managing performance, and their subsequent results? Good examples here would be Microsoft, GE, Adobe or even Zalora, a smaller e-commerce Singapore-based company. Their Head of HR, Foo Chek Wee, was a student of mine and I have to say that they are doing quite 16 DECEMBER 2016

well. One of the things that I kept an eye on, in Zalora, was how the organizational culture impacted the employees’ career development opportunities, and safe to say, it’s quite a successful relationship. What Performance Management question would you like to have answered by researchers? How can we disconnect employee rating/ ranking from performance management and compensation? I would like to clearly see the relationship between performance and rewards. Which are main challenges of Performance Management in practice, today? How do you get leaders to understand that they no longer hold absolute power. The younger Gen Y will constantly challenge one’s methods of measuring their performance and this should show managers that they no longer have complete sway over this topic and that it should be treated like a two-way street. So, in my opinion, this would be the biggest challenge - understanding and accepting the fact that you, as a leader, cannot have 100% power over everything and that you should learn how to accept different ideas and be prepared to get challenged. What should be improved in the use of Performance Management tools and processes? First things first, we shouldn’t forget that technology is an enabler, it should not be the focal point of any PM system; that should be reserved for our employees. Many companies are investing heavily in tech and forget that it is only an enabler and that they should invest in their people, first and foremost.My mantra can be described by the following acronym: PPT People before Processes and Technology.

Invest in your staff, your system, then afterwards in your technology. Tech should be simple and serve individuals, not the other way around. So from my point of view, the best thing would be to keep technology straightforward and simply as an enabling tool, for an individual’s development. What would you consider as a best practice in Performance Management? An example of best practice would be creating a culture of trust between employer and employee, where conversations about performance and individual efforts are commonplace, frequent and welcomed. We are working with knowledge workers, they know what to do, at least most of the time, so less instructions, less interventions, more engagement. Which aspects of Performance Management should be emphasized during educational programs? should never be underestimated, as it helps unlock an individual’s true potential. Couple this with the fact that today’s generations openly embrace such methods, we see that it somewhat becomes a must-have for any leader. The second thing that I find important is learning how to properly communicate. Many leaders fail to communicate in an effective manner, that gets their employees’ buy-in and thus they may end up losing very valuable individuals. This is of course part of our cognitive skill set, recognizing when, how and with whom you need to discuss matters more, to reach a better conclusion. Both of these, developing one’s coaching and cognitive skills, go hand in hand and if a manager wishes to come closer and closer to

INTERVIEWS

If a CEO establishes a weak strategy, with vague KPIs and so forth, then your whole plan will at some point topple down like a house of cards.

what is considered the ideal leader, learning how to strike a balance is key. An example would be knowing in whom you should invest your time, as a manager. Reading employees, recognizing those who wish to better themselves and clearly seeing through others’ hollow promises of improvement is extremely important, along with knowing how to convert your opinions about these individuals, in a friendly and mindful manner. Which limits need to be surpassed in order to achieve higher levels of proficiency in Performance Management, among practitioners? I don’t think there is such a limit for practitioners. I would say that companies can be limited, due to their culture. If the CEO establishes a weak strategy, with vague KPIs and so forth, then your whole plan will at some point topple down like a house of cards. I don’t think practitioners have encountered any self-limits until now; I think most of the times, the company in which they work might impose certain barriers that are counterproductive to their work, so they end up thinking they hit a dead end. What is your opinion on the emerging trend of measuring performance outside working hours? Well, since we’re working with knowledge workers, they generally know their job and perform well, so I don’t know if trying to measure them outside working hours would be good, in any way. Sure, there are jobs where you can stick to your 9-5 schedule, whilst others require a bit of after-hours work. Even more so, there are situations where workers believe in their company and work even 18 hours a day, to

fulfill its goal and objectives. And as long as they are paid for those hours, it’s all good, but I would not actively encourage this, if you know you can get your job done properly during your normal work schedule. Now, if your company culture supports and empowers your view, then by all means, go ahead, since you as a knowledge worker know best what you have to do to feel satisfied.

It would be interesting to see

company leaders developing

What personal performance measurement tools do you use? I used to use Oracle, but nowadays I use a simple Balanced Scorecard, for me and my team, which in my opinion is highly effective for tracking performance. We are developing a database of subjects/ degrees in Performance Management. What are your suggestions relevant to the database (i.e. subjects/degrees such as the Masters in Managing Organizational Performance)? Personally, I have not seen any programs that target Performance Management specifically, as these are more tailored towards HR or Organizational Development and any Performance Management topics are integrated in such programs.

could emphasize aspects like

One thing that would be quite interesting, on this topic, would be company leaders developing an educational curriculum, for higher education, in which they could emphasize aspects like driving value and employee engagement, redesigning contemporary PM systems, developing methods of accurately evaluating current and future PM processes and emphasizing the importance of coaching and continuous feedback.

driving value and employee

Coaching especially could be considered a subject in itself, as it is so incredibly vital to today’s organizational success.

an educational curriculum, for

higher education, in which they

engagement.

These would serve as prime knowledge tools for the new generation of managers, greatly enhancing their understanding of what Performance Management should be about. DECEMBER 2016

INTERVIEWS

The goal of Performance Management is to increase the clarity of strategic, tactical, and operational thinking, employee job satisfaction, and organizational commitment.

Consultant Michael J. Sutton Chief Gamification Officer/Chief Knowledge Officer, Funification LLC, USA In 2016, the Performance Magazine editorial team interviewed Michael J. Sutton, Chief Gamification Officer/Chief Knowledge Officer at Funification LLC, USA. His thoughts and views on Performance Management are detailed below. Which are the 2015 key trends in Performance Management, from your point of view? My work is that of a boundary spanner associated with Knowledge Management, Business and Competitive Intelligences, Organizational Transformation, Entrepreneurship, and Organizational Analysis and Design. Over the last 5 years, I have watched the emergence of a cross-disciplinary field that encompasses all of my areas of interest, and is building visibility and profile that many would have never expected. That cross-disciplinary field has been ascribed the label Gamification, Serious Games, Augmented/Virtual Reality, and Simulations (GSA/VRS). What are your thoughts on the integration of Performance Management at organizational, departmental and employee level? Performance Management (PM) is the mobilization trigger for continuous improvement in any enterprise that wishes to be recognized and respected as a Learning Organization. The goal of Performance Management is to increase the clarity of strategic, tactical, and operational thinking, employee job satisfaction, and organizational commitment. Culture will either enable or 18 DECEMBER 2016

constrain the application of single and double loop learning, coaching, mentoring, and feedback to continuous improvement. My anecdotal, but extensive experience over the last 45 years in private sector, public sector, military sector, and the educational sector would suggest that PM is an ethereal concept that seldom is anchored to the foundational principles and values of our global, national, and local businesses and institutions. Others may have experienced a more positive engagement by enterprises within each sector, but I have seldom seen any significant relationship and commitment devised to connect these three levels. Often I have observed top-down, bottomup and middle-out attempts at constructing a PM framework. However, each business transformation required to accommodate PM Key Performance Indicators (KPIs) more often than not remains incomplete. Many of the barriers are cultural, and this organizational trait in terms of poorly defined accountability, lack of responsibility, and implied authority will impede any transformation. Nevertheless, to me a significant barrier is behavioural. We face a mosaic of global educational systems for employees, management, and executives that over-emphasizes competition and hinders to reward of collaboration and cooperation through smartnerships (â&#x20AC;&#x153;smart partnershipsâ&#x20AC;?). Which will be the major changes in managing performance, in the future? Smartnerships are an emerging mobilization trigger for individuals, departments, and organizations. Enterprises, such as Gore & Associates, Zappos, Valve Software, and Morning Star, have demonstrated the success of holacracy (flat management). This emerging trend in management structures has the power

to construct smartnerships that can benefit both individual employees, as well as the teams and organizational entity itself. Nonetheless, such an approach to organizational structure is more easily deployed within an entrepreneurial firm or small to medium-sized enterprise. Large, bureaucratic organizations lack the agility and capacity to handle significant change and pivoting without critical organizational implosions, since the cultural imperative does not exist. What aspects of Performance Management should be explored more through research? That cross-disciplinary field I have previously identified, Gamification, Serious Games, Augmented/Virtual Reality, and Simulations (GSA/VRS), needs to be explored through more research for a number of performance management reasons. Although many enterprises are implementing these techniques, tools, learning strategies, and applications quickly within their Training and Development business units, (Gartner indicates that 50% of all enterprises have implemented these approaches to training as of 2015), metrics are still sketchy that could point to success. Most current evaluations of these tools are anecdotal at best and qualitative at worst. Much of the imperative for implementing these tools and techniques has been increasing the engagement of staff, managers, and executives in their work and learning activities. This outcome, coupled with increasing retention of employees by increasing job satisfaction through extrinsic and intrinsic rewards, suggest an immediate requirement for increasing the validity of KPIs for both the learning organization, as well as qualitative measures on the sustainable impact within the workplace.

INTERVIEWS

To me, the most critical constraints our enterprises and educational institutions face are managing underperformance and mediocrity, along with the blatant lack of innovative and agile organizational cultures.

For example, an emerging learning organization will construct learning communities and Communities-of-Practice (COPs) to exchange existing knowledge nuggets within the minds of the knowledge workers and to cultivate new knowledge as a means to trigger innovation throughout the firm. Such communities provide the basis for building new competitive advantages for the enterprise. The same holds true for higher educational institutions, who are experiencing decreased enrollments in North America, wand here the price and ROI for degrees has come under increased scrutiny. Many faculty members have been experimenting over the last 5+ years with gamification in classroom-based courses, hybrid courses, and online in courses. An increasing number of bachelor, masters, and doctoral programs are strictly online, and more effective than on campus courses because of the flexibility and cost of the programs. Thus, assessing and evaluating the educational impact for gamification, serious games, augmented/ virtual reality, and simulations (GSA/VRS) to address learning outcomes effectively is paramount for increasing engagement and retention in universities and colleges. Which organizations would you recommend to be looked at, due to their particular approach to managing performance, and their subsequent results? In terms of gamification in corporate and business environments, no clear leaders are yet identifiable, because of the flux in different platforms and delivery models demonstrating the business value proposition for GSA/ VRS. However, prominent players can be identified: Muzzy Lane Software, Microsoft HoloLens, IBM SmartPlay, BreakAway Games, Caspian Learning, Innovation Games, GamEffective, PlayGen, Virtual Heroes, Morf

Media, Badgeville, ExperiencePoint, Artemat, Designing Digitally, Growth Engineering, and PlanetJockey. Additionally, many higher education institutions are building professional certification, bachelors, masters, and doctoral gamification degree programs. The innovative leaders appear to be: Michigan State University, University of Wisconsin, Savannah College of Art and Design, Bloomsburg University, Columbia University, Excelsior College, Hong Kong Polytechnic University, University of Malta, Aalborg University (Denmark), University of Utrecht (Netherlands), HKU University of the Arts (Netherlands), Turku University of Applied Sciences (Finland), University of Tampere (Finland), Institute of Technology, Carlow (Ireland), Mahidol University (Thailand), U-tad - Centro Universitario de TecnologĂa y Arte Digital (Spain). What Performance Management question would you like to ask researchers? I think three significant questions related to assessing the value of xx to Performance Management might be useful in launching useful research in this emerging GSA/VRS area: 1. What are the KPIs that are useful for measuring the impact of GSA/VRS on individual employee engagement, retention, efficiency, and effectiveness?

post-graduation success in the workplace within institutions of higher education? Which are main challenges of Performance Management in practice, today? The critical challenges of practice-based Performance Management are surfacing quickly to include: Teaching managers to be effective development coaches for improving performance of their staff. Seriously engaging executives in performance management beyond dashboards and scorecards. Creating and enforcing accountability in our business and educational leaders for developing further the strengths of employees and educators. Increasing alignment of performance goals with strategic and tactical business goals. Improving the ability of a manager to furnish real-time feedback. What should be improved in the use of Performance Management tools and processes? Performance Management tools and processes need to be improved to:

2. What KPIs could be useful to demonstrate team-based and business unit performance increases when GSA/VRS, as applied to Training and Development in an enterprise?

1. Clearly communicate performance goals and expectations to all employees (in the cases of business environments) and faculty (in the cases of educational environments) on a timely, periodic basis.

3. Which KPIs can be identified or developed for assessing and evaluating the educational impact of GSA/VRS on learning outcomes, student engagement, student retention, and

2. Identify and increase methods for improving the return on Human Capital, (such as performance coaching, mentoring, and timely feedback). DECEMBER 2016 19

INTERVIEWS

We need to create and enforce accountability in our business and educational leaders for developing further the strengths of employees and educators.

3. Apply KPIs to identify performance gaps internally (employee satisfaction) and externally (stakeholder, regulator, customer, and supplier satisfaction), and resolve the emergent issues and concerns within a finite timeframe.

Gamification, Serious Games, Augmented/ Virtual Reality, and Simulations—will have the greatest impact globally on the performance and success of global economic outcomes in terms of our workplaces and educational institutions.

4. Encourage innovation though employee and management engagement in enterprises; or in the case of educational institutions, through student participation in the development of educational gaming environments.

What are the limits that prevent practitioners from achieving higher levels of proficiency in Performance Management? To me, the most critical constraints our enterprises and educational institutions face are managing underperformance and mediocrity, along with the blatant lack of innovative and agile organizational cultures.

5. Transparently post results and outcomes and celebrate the achievements taking place. What would you consider as a best practice in Performance Management? The following, to me, are some of the best practices in Performance Management: 1. Integrate GSA/VRS KPIs into critical business and educational processes to demonstrate the validity of gamification within the firm and university. 2. Construct and deploy coaching and mentoring development programs to managers, employees, and higher education faculty, thus building sustainable internal expertise, while increasing engagement and retention. 3. Identify, recognize, foster, and incentivize the innovative leaders in the enterprise or university, whether the individuals are experienced or junior executives, managers, employees, staff, faculty, or students. Which aspects of Performance Management should be emphasized during educational programs? I am totally biased in my response to this question. In my professional opinion, the cross-disciplinary emergent field—labeled 20 DECEMBER 2016

Identifying, recognizing, fostering, and incentivizing innovative leaders in enterprises or universities leads to better business development. What is your opinion on the emerging trend of measuring performance outside working hours? Many of the Gen X, Y, Z and Millennials are embracing new forms of performance monitoring of their lives outside of the workplace, e.g., FitBit, Nike+, Facebook, LinkedIn, and Starbucks Rewards. Most of these generations are comfortable with this personal information not being private. The GI and Baby Boomer

generations are much less trusting of seeing personal performance indicators available to the public, or hackable to prying eyes. What personal performance measurement tools do you use? Very early in my career I adopted Lateral Thinking, as taught by Edward De Bono, as a means of increasing my creativity quotient to perform better in my coursework. Later, an author, who eventually became a colleague (Bill Jensen), introduced me to the pragmatic implementation of a concept for streamlining my work activities—Simplicity. As my professional life became much more hectic, I adopted the GTD (Getting Things Done) Method by David Allen to increase my workplace performance. Most recently, I adapted an approach created by Ronen Gafni and Simcha Gluck: The New Entrepreneurz—Changing the Way You Play Life, resulting in a personal, revolutionary performance increase that will drive my next decade of life-long education, mentoring, coaching, and consulting. For Consultants: What are the processes and tools you look at, in order to differentiate a successful performance management system, from a superficial one? Being that my career has encompassed the academy, the practitioner environment, and the consulting world, I was challenged by this question. Without a touch of reservation, I propose that for any performance management system to be successful, it must incorporate a framework and paradigm based upon Gamification, Serious Games, Augmented/ Virtual Reality, and Simulations (GSA/VRS). These techniques will increase motivation, bolster the capability to incorporate doubleloop learning, build micro learning feedback, and permit graceful failure within a learning and operational environment.

INTERVIEWS

I believe that the major challenge in performance management is to make performance measurement more relevant to stakeholders.

Consultant Dean Spitzer Dean R. Spitzer & Associates, President, USA In 2016, the Performance Magazine editorial team interviewed Dean Spitzer, President at Dean R. Spitzer & Associates, USA. His thoughts and views on Performance Management are detailed below. Which were the 2015 key trends in Performance Management, from your point of view? I believe that the most important trend in performance management is the greater insight that is coming from the better use of measurement data, through advanced analytics. However, the problem is that most organizations don’t use the data well. Few organizations have even the most rudimentary education on how to use data and how to draw insights from it. In my book, “Transforming Performance Measurement,” I talk at length about the importance of the social and organizational aspects of performance measurement and management that are so desperately lacking in organizations, throughout the world. What are your thoughts on the integration of Performance Management at the organizational, departmental and employee level? In “Transforming Performance Measurement,” I have an entire section on the importance of Integrating performance measurement, both horizontally, across functions, and vertically, from the top of the organization to the employee level. Unfortunately, organizations are terribly deficient in both types of integration. This

causes all kinds of problems, including silos forming and working against each other to the detriment of the organization as a whole, and the alienation of employees and teams who actively work and try to bring an improvement, from the purposes of the organization. In my book I explain how this disintegration can be overcome through the use of transformational and cross-functional measures. Which will be the major changes in managing performance, in the future? I believe that the major change will be the more effective use of data that is already available. This will include the better conversion of data into knowledge and wisdom. This conversion cannot just rely on automation, but must come from an improved use of measurement by people, what I call the socialization of performance measurement. What aspects of Performance Management should be explored more through research? My focus is on the better use of performance measurement, so that is where I believe the most value can be attained. In my book, I discuss four areas that are ripe for research: Focus, Integration, Interactivity, and Context. Which organizations would you recommend to be looked at, due to their particular approach to managing performance, and their subsequent results? I’m not aware of any organizations that I would currently consider exemplary. What Performance Management question would you like to ask researchers? There are two: How can performance measurement be optimized across the organization? How can the wealth of organizational data, especially analytics, be better translated into knowledge and wisdom?

Which are the main challenges of Performance Management in practice, today? I believe that the major challenge in performance management is to make performance measurement more relevant to stakeholders and enable them to make better and more valid decisions, based on the data and information they receive. What should be improved in the use of Performance Management tools and processes? The social and organizational aspects of performance measurement must be improved. This involves improving the “context of measurement,” how people experience measurement - including feedback, and as I mentioned previously, how to transform data into knowledge and wisdom so it can enable better, not merely faster, decisions. I also think that education on the topic of performance measurement and management must be greatly improved. It is currently at a very low level. What would you consider as a best practice in Performance Management? In my book, “Transforming Performance Measurement,” I provide a number of performance measurement best practices. Most of these involve the use of “transformational measures” that have made a real difference in how effectively organizations are managed. One example is the use of customer experience, rather than customer satisfaction, to improve end-to-end customer service, rather than just sub-optimize transactions. Which aspects of Performance Management should be emphasized during educational programs? Performance measurement is the weakest link in organizational education. Almost no courses exist on how to use measurements, other than from a statistical process perspective. The people who are supposed to be effective consumers of DECEMBER 2016 21

INTERVIEWS

Performance measures should reflect the needs of the community or customers rather than be solely focused on the organizational needs.

measurement data and information do not know whether the information is any good and how to respond to it. As such, I’d like to see developed a comprehensive Master’s Degree on Performance Measurement, with a practical curriculum behind it. What are the limits that prevent practitioners from achieving higher levels of proficiency in Performance Management? I believe that the major limitations are based around the fact that most organizations think they are doing a “reasonably good” job of performance management, but they are seriously deceived. I have seen many organizations develop a new performance appraisal survey or adopt a Balanced Scorecard and think that they have substantively improved things. Very few organizations actually have anyone positioned at a strategic level, overseeing the performance management efforts within those organizations. What is your opinion on the emerging trend of measuring performance outside working hours? I don’t agree with it, unless it is part of an effort to integrate work-life balance. What personal performance measurement tools do you use? My main focus, from a personal performance point of view, is on helping organizations develop more strategic, integrated/aligned, and transformational measures. As I do not agree with measuring performance outside working hours and as such, I do not find any of the gadgets and or apps created for this purpose particularly useful. What are the processes and tools you look at, in order to differentiate a successful performance management system, from a superficial one? The most important thing revolves around horizontal and vertical integration, as I previously mentioned. 22 DECEMBER 2016

Practitioner Monica R. Allen Director of Strategic Planning and Evaluation, Mecklenburg County Government, USA In 2016, the Performance Magazine editorial team interviewed Monica R. Allen, Director of Strategic Planning and Evaluation at Mecklenburg County Government, USA. Her thoughts and views on Performance Management are detailed below. Which were the 2015 key trends in Performance Management, from your point of view? The key trends in performance management in 2015 were primarily how to utilize data to make more real-time decisions. As organizations become more familiar with performance data, the key is to not only have information readily available, i.e. monthly or quarterly, but to be able to draw down the information, to make on the spot decisions about strategies or even tactics that may drive performance. What are your thoughts on the integration of Performance Management at the organizational, departmental and employee level? I believe it is imperative that all organizations integrate performance management across, what I would call the three distinct levels of performance in an organization. The key is making sure that the three levels tie somehow, so that employees can see themselves in the overall organizational performance goals. One example is with Customer Satisfaction, which is for many organizations a key

performance indicator, but it can also cascade down to the employee level. When an organization fully integrates performance management across all three levels, not only does it provide for consistency in measurement but it also helps create a culture and way of thinking about not just performance measurement but performance management, which are two distinct, yet very related concepts. Which will be the major changes in managing performance, in the future? The one thing that I think will be a major change is in how managing performance is addressed. For many organizations, there is a focus on how did the organization or a particular employee do at the end of a fiscal year or calendar year. While it is not a bad approach to take in understanding the overall performance, managing performance is really about utilizing information throughout the year to make adjustments regarding work, strategy, and so forth, so that performance is addressed in an ongoing fashion, rather than at one point of time. This is why some organizations such as Accenture and Gap have moved away from an annual performance rating approach, to more of an ongoing performance feedback approach. What aspects of Performance Management should be explored more through research? The identification of performance measures that are externally focused rather than internally. Performance measures should reflect the needs of the community or customers rather than be solely focused on the organizational needs. In other words, if the speed at which something is done, such as “response time to customers” is not reflective

INTERVIEWS

Coaching and feedback are 2 elements that will ensure the effectiveness of performance management efforts.

of when customers prefer to be responded to, then the performance measure is essentially internally focused and not externally focused. Therefore, by ensuring organizational measures are balanced between the internal and external, organizational decisionmakers will have a holistic view of how an organization operates.

Transmission of information across all organizational lines.

How to create performance measures that are meaningful.

9. What would you consider as a best practice in Performance Management? Looking at data in real time and making informed decisions that will affect the strategy execution process.

Which organizations would you recommend to be looked at, due to their particular approach to managing performance, and their subsequent results? I would recommend Maricopa County, Fairfax County, King County and Mecklenburg County as good examples.

Which aspects of Performance Management should be emphasized during educational programs?

What are the limits that prevent practitioners from achieving higher levels of proficiency in Performance Management? I think it goes back to having analytical skills in the workplace. When individuals do not have experience in creating performance measures and utilizing a robust methodology, it doesnâ&#x20AC;&#x2122;t provide for a good performance management program.

What Performance Management question would you like to ask researchers? In what ways can government organizations better utilize performance management and measurement practices to make real-time decisions on operations? Which are the main challenges of Performance Management in practice, today? The main challenge, I would think, is getting individuals to incorporate performance management as part of their way of doing business and practice. Oftentimes, performance management becomes secondary to the primary work performed within organizations. When this happens, it becomes a challenge to take a moment and stop to think about reviewing performance data and using it to enhance work effectiveness and efficiency. What should be improved in the use of Performance Management tools and processes?

Very few organizations actually have anyone positioned at a strategic level, overseeing the performance management efforts within those organizations. We have to strike a balance between the external and internal environment.

What is your opinion on the emerging trend of measuring performance outside working hours? Having a system that captures information downloaded nightly and then being able to access the data either that night or the same day will help with measuring performance outside working hours. What personal performance measurement tools do you use? I mainly use Tableau and Excel. Which were the recent achievements in generating value from performance management, in your organization? The recent achievements were that we linked strategic business plans to performance measures that can be easily tracked, which will help us understand how well the organization executes its strategy. There are a total of 65 goals and 100+ objectives that will allow us to understand how well we are doing as an organization over a three-year period. This approach has helped us take performance management to a new level in government. Our next goal is to create a performance management system that will allow us to look at data in real time. DECEMBER 2016 23

INTERVIEWS

I strongly believe that for it to be completely fair, performance management should be directly linked to the talents of the person.

Practitioner Mahmoud Mansi Founder, HR Revolution Middle East, Egypt In 2016, the Performance Magazine editorial team interviewed Mahmoud Mansi, Founder of HR Revolution Middle East, Egypt. His thoughts and views on Performance Management are detailed below. Which were the 2015 key trends in Performance Management, from your point of view, and how have these impacted the HR field? Lately I have been reading a lot about holacracy, and strongly linking it to HR and PM. My bemusement arises at a certain point where each person is responsible for a task by his/her own choice, while everyone else know that this person is responsible for that task. Perhaps in this case, performance is not documented on papers, but clearly measured through end results, and performance within the organizational system goes through “word of mouth”, which is exquisitely much more effective than having it on paper and archived in a file. Holacracy is interesting because it allows the employee to discover his/her talents and fully utilize them through totally different job descriptions, that’s why it is most suitable for the millennials. However, holacracy deserves further solid investigation from HR professionals and needs to have its effect compared to those of the already established performance management methods. What are your thoughts on the integration of Performance Management at the 24 DECEMBER 2016

organizational, departmental and employee level? Performance has always been measured at the organizational level when management only cared about results; afterwards, the development of human resources management generated an interest for individual performance. So far, this doesn’t completely make sense without working on the “departmental level”. When this became the norm, management started to care about many more aspects, far beyond results. It all became more about the reasons behind such results and the key persons in each department. However, I strongly believe that for it to be completely fair, performance management should be directly linked to the talents of the person and to whether his/her talents are fully utilized or not, and also linked to the distribution of talents within each department. Which will be the major changes in managing performance, in the future, from an HR perspective? Being in the Middle East, I would love to share a common Arabian proverb that I found very interesting and relevant: “God loves someone who when works, he performs it in perfect manner” – Prophet Muhammed.

I think another smart approach is to build a correlation between performance management and waste management; to measure the performance of each employee and the amount of waste generated, in order to come up with the perfect result, where waste management for each employee would be a new section in the performance appraisal process. I think as HR people, we should consider the environment as well, and I also mean “time” by waste. A non-intelligent HR system tends to encourage waste with paperwork and wastes the time of the employee as well. Paper can be recycled but time cannot. What aspects of Performance Management should be explored more through research? I know the trend now is all about Employee Happiness, and HR is all about putting the right person in the right place. But, the thing is people change by time, and the reasons that affect our happiness change because our goals change depending on each stage of our lives through our career path. For example, a fresh graduate has a different professional potential than a midcareer, a parent or one close to retirement. Sometimes, remaining in the same department all your life is not a happiness booster, sometimes when you overcome doing what you love, you lose passion about it.

I guess perfection will always be a destination to humankind, and perfection may differ from one era to the other.

That’s why some employees lose passion when they become supervisors. Since potentials change, then it is about “the right potential in the right place”.

When we reach the intelligence level necessary to understand the link between performance management, talent management, financial results, and risk management – we, as HRs, will be directly engaged with the corporate strategy.

Employee Happiness can be recycled through helping employees attain new talents that are relevant to their current department, and job rotation would then be in place across the entire organization.

INTERVIEWS

I think another smart approach is to build a correlation between performance management and waste management.

Therefore, researchers might focus more on linking performance with the potential of employees at each career stage they are in. What benefits could these novel findings in Performance Management research bring to Human Resources? First of all, they will prove that employees are dynamic, as is human nature. The problem at work is that organizations split between the personal and professional life, where one has the right to be a dynamic human being, but at work this person should be static, should be a “smart machine” that can cope with whatever changes upper management is working on, and is not allowed to be dynamic and change on his/ her own. By closely analyzing this situation and taking note of research based around it, HR people will be able to match the “right potential” with the “right place”. Which organizations would you recommend to be looked at, due to their particular approach to managing performance, and their subsequent results? Personally, I prefer to look at this from a different perspective. I would observe a fitness trainer for example and how he/she works with the trainee and how performance is measured. This shows how performance can be customized for each person differently and not as a one-size-fits-all model. This is what we do in HR Revolution, we compare simple case studies in our daily lives and magnify them under our own microscope, linking them to their organizations and how these could benefit from such approaches. We do not have to always look at large organizations to learn something new and useful. Without a doubt, they are great examples,

but not the only sources of knowledge. This is the traditional way of doing things and HR people should have the creativity to invent their own approaches and have role models and inspirations from non-corporate sources, and that’s what I work on integrating in my “HR Thinker” course.

How can we improve the existing HR curricula, to better fit today’s organizational needs? There should be a given space for learners to imagine new organizational problems and create new ideas to prevent these problems. What I regret in the HR curricula is that it doesn’t give much space for creativity.

Which are main challenges of Performance Management in practice, today? It is easy to measure performance, but the real challenge is in measuring the factors causing the increase or decline of performance in a person. This is the main challenge from my perspective.

It makes one very aware of the best practices and so on, but this awareness will soon fade after each day because the environment is changing rapidly, so we need to prepare HR people to be innovative.

There should be a given space for learners to imagine new organizational problems and solutions for said problems. Our unis today don’t offer much in terms of creativity.

Innovation comes when one uses his/her imagination. For example: instead of providing the person with a traditional case study and asking them to solve it, ask them to create their own case study and another colleague would work on solving it. This way, we will increase engagement between HR learners and encourage a mindset of overcoming unexpected challenges. So the HR curricula should contain material that encourages imagination, therefore creativity. What is your opinion on the emerging trend of measuring performance outside working hours? Organizations exist to make the world a better place. As HR people, we work on developing individuals to make them better employees and better human beings. That’s why the role of HR should not only be on measuring performance inside and outside the organization, but motivating employees inside and outside of the organizational activities. Personally, I would add additional grades on the performance appraisal sheet regarding an employee’s civil work and their contribution to society, because each employee is an ambassador for his/her own organization. DECEMBER 2016 25

INTERVIEWS

I strongly believe that for it to be completely fair, performance management should be directly linked to the talents of the person.

Practitioner Lim Kah Cheng Chief Corporate Services, Human Resources Development Fund, Malaysia In 2016, the Performance Magazine editorial team interviewed Lim Kah Cheng, Chief Corporate Services at Human Resources Development Fund, Malaysia. His thoughts and views on Performance Management are detailed below. Which were the 2015 key trends in Performance Management, from your point of view? In my view, there are 2 current trends in Performance Management: a) Management is concerned whether Performance Management systems will be able to provide more granularities in differentiating talented performers from average performers, and reward and motivate accordingly. b) Integration of Performance Management systems with performance metrics and business analytics, so that timely assessment of performance can be done. What are your thoughts on the integration of Performance Management at organizational, departmental and employee level? Performance Management will be integrated at all level. Communication is very important in this regard, in order to ensure the effectiveness of performance management. Achieving strategic integrity requires a process that brings alignment to the entire organization, top down, bottom up, and middle out. The performance management process in the whole organization is inextricably linked at all levels; each level shall 26 DECEMBER 2016

be tied to the next. Management is responsible for cascading down the enterpriseâ&#x20AC;&#x2122;s goal to the whole organisation and motivating employees to move towards the same goal. Which will be the major changes in managing performance, in the future? The measurement of performance management shall move from output-based measurement to outcome-based measurement. It takes time to fully study and adopt the outcome-based measurement in performance management and it is a long process. Benchmarking would be one of the issues that needs to be taken into consideration on this matter. What aspects of Performance Management should be explored more through research? Goal-setting is an important part of performance management. Plans always fall behind changes. There might even be goal changes throughout the year, like how do we set the new goal and communicate with our employees. Which organizations would you recommend to be looked at, due to their particular approach to managing performance, and their subsequent results? HRDF. We are in the midst of transformation and we look forward to taking our vision and mission from good to great, under our management strategic leadership. What Performance Management question would you like to ask researchers? This always falls back to its generic question, i.e. how do we sustain a performance management system? The concept of ownership is said to be used to leverage the productivity of the organisation. Now, this isnâ&#x20AC;&#x2122;t hard for employees who are enthusiastic and passionate in nature, but what about apathetic and cynical employees or those employees who are already in their

comfort zone after a certain period of service in the organisation? Which are main challenges of Performance Management in practice, today? The alignment of goals throughout the whole organisation and the degree of consensus in return on behalf of the employees. The art of communication is unique. It is not merely about communication, but also building trust. The way you speak, in order to deliver feedback, is crucial, as your employees & the people around you must want to listen to you and get on board with your agenda. What should be improved in the use of Performance Management tools and processes? Coaching and feedback. Studies have shown that coaching and feedback can indeed be an effective way to manage employee performance and increase individual development. Nothing is perfect; therefore, a continuous improvement in coaching and feedback will ensure the effectiveness of performance management efforts. What would you consider as a best practice in Performance Management? I would prefer to adopt the idiom best fit rather than best practice. There is no one single best practice in Performance Management, more like what would be the best practice that best fits your organization in adopting a performance management system. Which aspects of Performance Management should be emphasized during educational programs? Education is no longer academic-oriented. Promotion of higher order thinking should be emphasized, along with encouraging

INTERVIEWS

Good Performance Management, as viewed by Top Management will always tie back and support the companyâ&#x20AC;&#x2122;s strategic initiatives.

innovative and creative mental processes. This is essential in breaking through the conventional Performance Management system, thinking outside the box to further improve it. What are the limits that prevent practitioners from achieving higher levels of proficiency in Performance Management? Good Performance Management, as viewed by Top Management will always tie back and support the companyâ&#x20AC;&#x2122;s strategic initiatives. Practitioners need to have the acumen to ensure that the Line of Sight between the company strategic initiatives and PM is unobstructed, in order to ensure that relevant outcomes are achieved. What is your opinion on the emerging trend of measuring performance outside working hours? Ultimately, what we measure is the result obtained by our employees, be it mentally or physically, as we believe mental wellness and physical health is an important factor in delivering your result. What they do outside working hours is their personal preference; however, what they do outside the working hours, which either directly or indirectly affects their working performance, is our concern. For example, an enthusiastic employee might further his studies or engage in various activities outside working hours, which subsequently contribute to his work, while others might not. It is very personal and subject to personal choices. In our organization, we do recognise selfimprovement efforts that happen outside working hours. Case in point would be one of the many plans of Corporate Social

Responsibility - CSR, whereby the employee engages in some community work outside working hours, to give back to society. What personal performance measurement tools do you use? Goal-setting, feedback and coaching, ultimately work-life balance. Which were the recent achievements in generating value from performance management in your organization? One of the inherent issues with Asian culture is that we are not comfortable with direct feedback, especially when we need to point to an issue at hand. In this regard, one of our companyâ&#x20AC;&#x2122;s achievements in overcoming this is to invest in the coaching skills of all our supervisors, so that real and constructive feedback occurs between supervisor and employee.

Communication is very important in this regard, in order to ensure the effectiveness of performance management.

DECEMBER 2016 27

PORTRAIT EVENTS

GARY COKINS A lifetime of continuous improvement, change and development. ANDREI COSTEA

G speaker, and author in advanced cost management

ary Cokins is an internationally recognized expert,

and enterprise performance and risk management systems. He is the founder of Analytics-Based Performance Management LLC, an advisory firm located in Cary, North Carolina, United States of America. Gary, still going strong at the “young” age of 67, has been in and around performance improvement and management methods for most of his career. Having graduated with a B.S. degree in industrial engineering and operations research, in 1971, from Cornell University, after which he got an MBA from Northwestern University’s Kellogg School of Management in 1974, he started working at FMC Corporation, taking on roles that spanned from strategic planning and financial controlling to production management. It was here that he became fully aware of how, in his words, ”deficient accounting information can be an obstacle and prevent making good decisions”. After switching from a financial controller to an operations manager, Gary quickly discovered that much of the information he had been reporting on as a financial controller was at best useless and at worse, misleading, incomplete and dysfunctional. As a result, he decided to promote the use of internal management accounting, which paved the way for the next step in his professional life. 28 DECEMBER 2016

“If we wish to further better our understanding of EPM, the next step to advance the power from using such methods is to imbed analytics into them.”

PORTRAIT

Despite all the technological developments aiding us in our measurement endeavors, we should try as best as we can to manage our work-life balance on a continuum.

In 1981, he began his long-standing management career, having been a valuable member in some of the more prestigious names in the industry, such as Deloitte, KPMG, EDS and is currently part of HP. Both Deloitte and KPMG presented him the chance to meet the 2 individuals, which in his view, molded his professional career and his entire way of thinking about complex things, then deconstructing and explaining them at a very basic level. At Deloitte, he met his mid-career mentor, Bob Bonsack, to whom he has dedicated all of his books, as it was he who spent a lot of time transferring to Gary his knowledge and experience into the soon-to-be fully grown expert and consultant. Then, KPMG offered him one of the greatest opportunities of his professional career – to be trained in activity-based costing (ABC) by none other than Robert S. Kaplan, who at the time was a professor at the Harvard Business School. His schooling on ABC allowed him to author his first book on the topic, after which he started publishing more and more, gradually shifting his career focus to education and inspiring others. Afterwards, in 1996, he joined SAS, the large global analytics software vendor, where he worked for 16 years, promoting enterprise performance management (EPM) methods. Having helped numerous organizations, throughout his career, improve their cost structure, cycle-times, quality, strategy and customer service levels, SAS presented him with

a new challenge – performance management. As such, after having written several books on cost management, Gary began working on his first enterprise performance managementfocused book, which was a stepping stone into the world of EPM, allowing him to accumulate more knowledge and write increasingly comprehensive books on the topic, helping businesses implement and integrate their EPM methods and their supporting software systems. But his active nature did not allow him to slumber into retirement and as such, he founded his own advisory firm, AnalyticsBased Performance Management LLC, and started up his own website - garycokins.com, with the intent of helping out others and spreading the knowledge concerning EPM and all of the methods, secrets and techniques that come associated with it. Gary sees this as his professional calling, staunchly striving to apply the lessons he has learned from his mentors, Bob Bonsack, but also Mark Twain and Will Rogers, whom he credits as being the inspiration behind his general thought process and way of thinking.

The whys, the hows and the whats of Enterprise Performance Management In Gary’s opinion, there’s currently quite a bit of confusion in the marketplace about the concept of Enterprise Performance Management. Simply Googling the concept should yield very telling results. As he puts it, the confusion begins with which phrase should we call Performance

Management? This confusion in part is due to semantics and language. We often see in the press and media the acronyms BPM for Business Performance Management, CPM for Corporate Performance Management and EPM for Enterprise Performance Management. For this interview, Gary chose to use Enterprise Performance Management and its acronym EPM. He uses the term “analytics-based enterprise performance management” when there is emphasis on analytics imbedded in the various EPM methodologies. Additional confusion is that EPM is perceived by many as far too narrow. It is often referenced as a CFO initiative with bunch of measurement dashboards for feedback. It is much, much more. More recent confusion comes from the term being narrowly applied to a single function or department, such as marketing performance management or information technology performance management Some good news is that EPM is not a new methodology that everyone now has to learn, but rather EPM tightly integrates business improvement and analytic methods that executives and employee teams are already familiar with. Think of EPM as an umbrella concept. EPM integrates operational and financial information into a single decision-support and planning framework. These include strategy mapping, balanced scorecards, costing (including activity based cost management), enterprise risk management (ERM), forecasting, and capacity-sensitive driver-based budgeting DECEMBER 2016 29

PORTRAIT

and rolling financial forecasts. These methods fuel other core solutions such as customer relationship management (CRM), supply chain management (SCM), risk management, and human capital management systems, as well as lean management and Six Sigma initiatives. It is quite a stew, but they all blend together. Primitive EPM methods existed decades ago. These methods were present before EPM was given a formal label by the information technology research firms and software vendors. One could argue that EPM existed even before we had computers. Consequentially, if we wish to further better our understanding of EPM, the next step to advance the power from using such methods is to imbed analytics into them. The new era of an Internet-driven digital world of Big Data and analytics has arrived. It is now time to leverage analytics. An example is the marketing and sales function getting more profit from existing and prospective customers. Another example is supply chain management having better forecasts to reduce uncertainty and improve their decisions of what to make, where and when to make it, and how to more quickly and efficiently distribute what they make. A third example with a strategy map and its companion balanced scorecard, to apply correlation analysis to measure the explanatory value that “influencing” KPIs have on “influenced” KPIs to validate the quality of the KPI selection.

Strengths and resulting benefits of EPM According to Gary, the primary benefit from using EPM methods is it provides information, insights, and foresight for making better decisions. When his full vision of EPM is realized, with its seamlessly integrated methods, then Gary observes the artificial boundaries of the organization chart – often referred to as “silos” – disappear. Managers and employees then work as a team. In addition, although each EPM method is powerful on its own, they become even more powerful when analytics of all flavors – regression, correlation, segmentation, clustering, and associations to name a few – are imbedded into each method. 30 DECEMBER 2016

But in order to clarify why EPM offers so much information, insight and foresight, we have to take an in-depth look at what caused this concept to become to widespread. Gary reckons that eight major forces have caused it to spring up all of a sudden: Failure to execute the strategy Although executive teams typically can formulate a good strategy, their major frustration has been failure to implement it. The increasing rate of involuntary job turnover of CEOs is evidence of this problem. A major reason for this failure is most managers and employees cannot explain their organization’s strategy, so they really do not know how what they do – each week or month – contributes to their executives’ strategic intent. Strategy maps, balanced scorecards, key performance indicators (KPIs), and dashboards are some of the components of EPM’s suite of solutions that address this. Unfulfilled return on investment (ROI) promises from transactional systems Few if any organizations believe they actually realized the expected ROI promised by their software vendor that initially justified their huge large-scale IT investment in major systems (e.g., customer relationship management [CRM], enterprise resource planning [ERP]). The CIO has been increasingly criticized for expensive technology investments that, although probably necessary to pursue, have fallen short of their planned results and return on investment (ROI). The executive management team is growing impatient with information technology investments. EPM is a value multiplier that unleashes the power and ROI payback from the raw data produced by these operating systems. EPM’s analytics increase the leverage of CRM, ERP, and other core transactional systems. Escalation in accountability for results with consequences Accelerating change that requires quick decisions at all levels is resulting in a shift from a command-and-control managerial style to one where managers and employees are empowered. A major trend is for executives to communicate

Most organizations now realize it is no longer sufficient for their own organization to be agile, lean and efficient. their strategy to their workforce, be assured the workforce understands it and is funded to take actions, and to then hold those managers and employee teams accountable. Unlike our parents’ workplaces where they retired after decades with their employer, today there is no place to hide in an organization anymore. Accountability is escalating, but it has no teeth without having consequences. EPM adds teeth and traction by integrating KPIs from the strategy map-derived scorecard with employee compensation reward and motivation systems.

PORTRAIT

The need for quick trade-off decision analysis Decisions must now be made much more rapidly. Unlike in the past where organizations could test-and-learn or have endless briefing meetings with their upper management, today an employee often must make a decision on-thefly. “Yes or no?” “Go or no-go?” This means employees must understand their executive team’s strategy. In addition, internal tension and conflict are natural in all organizations. Most managers know that decisions they make that help their own function may adversely affect others. They just don’t know who is negatively affected or by how much. A predictive impact of decision outcomes using analytics is essential. EPM provides analytical tools including regression and correlation analysis. Insights gained range from marginal cost analysis to what-if scenario simulations that support resource capacity analysis and future profit margin estimates. Mistrust of the managerial accounting system Managers and employees are aware that the accountants’ arcane “cost allocation” practices using non-causal broad-brushed averaging factors (e.g., input labor hours, percent of sales) to allocate non-product-related indirect and shared expenses result in flawed and misleading profit and cost reporting. Some cynically refer to them as the “mis-allocation” system! Consequently, they do not know where money is made or lost or what drives their costs. EPM embraces techniques like activity-based costing to increase cost accuracy and reveal and explain what drives the socalled hidden costs of overhead – the indirect and shared expenses. It provides cost transparency and visibility that organizations desire but often cannot get from their accountants’ traditional internal management accounting system. Poor customer value management Everyone now accepts how critical it is to satisfy customers to grow a business. However, it is more costly to acquire a new customer than to retain an existing one. In addition, products and standard service-lines in all industries have become

commodity-like. Mass selling and spray-and-prey advertising are obsolete concepts. This shifts the focus to require a much better understanding of channel and customer behavior and costs-toserve. This type of understanding is needed to know which types of existing customers and new sales prospects to grow, retain, acquire, or win back using differentiated service levels – and how much to optimally spend on each type of customer that is worth pursuing. It requires working backwards by knowing each customer’s unique preferences. EPM includes sales and marketing analytics for various types of customer segmentations to better understand where to focus the sales and marketing budget for maximum yield and financial payback. Return on customer is an emerging term. Dysfunctional supply chain management Most organizations now realize it is no longer sufficient for their own organization to be agile, lean and efficient. They are now co-dependent on their trading partners, both upstream and downstream, to also be agile, lean efficient. To the degree their partners are not, then waste and extra unnecessary costs enters the end-to-end value chain. These costs ultimately pass along the chain resulting in higher prices to the end consumer which can reduce sales for all of the trading partners. Sadly, there have been centuries of adversarial relationships between buyers and

sellers. EPM addresses these issues with powerful forecasting tools, increasing real-time decisions, and financial transparency across the value chain. It allows trading partners to collaborate to join in mutually beneficial projects and joint process improvements. The broken budgeting process The annual budget process is often viewed as a fiscal exercise by accountants that is disconnected from the financial executive team’s strategy and does not adequately reflect future volume drivers. Many budgets are often scorned as being obsolete soon after they are produced; biased toward politically muscled managers who know how to sandbag their requests. Though some organizations revert to rolling financial forecasts, these projections may include similarly flawed assumptions that produce the same sarcasm about the annual budgeting process. What is the solution? Entrepreneurs know the adage, ‘‘You need to spend money to make money.’’ In other words, excessive belt-tightening can jeopardize an organization’s success. Rather than evaluating where costs can be cut, it is more prudent to take a different view: Ask where and how the organization should spend money to increase its long-term sustained value. Of course, all of these aspects are not without their own challenges. And as far as our consultant is concerned, he believes the main DECEMBER 2016 31

PORTRAIT

Try not to have self-interest. What goes out often comes back. Many will reciprocate.”

challenge within EPM is to accelerate the adoption rates of its methods. It is too slow. Today software technology is no longer an impediment. The software tools are proven. The obstacles involve people and their behavior. Obstacles include resistance to change, which is human nature since people prefer the status quo; fear of being measured and held accountable; fear of others knowing the truth; and weak leadership.

Furthermore, over his 40-some year career, Gary used to believe that the best leaders and executives have the best answers. Nowadays, he finds that the best leaders have the best questions. Thus his second tip would be ask the appropriate question and stop feeling the need to always have an answer ready for everything, as it may not be the best one for the matter at hand.

The result is that managers who are tasked to implement EPM methods need to place a high emphasis on behavioral change management. Unfortunately, few of them possess this skill.

There is far too much complexity, volatility, and uncertainty for any executive to rely on his intuition, the so-called sixth sense or past experiences that got him promoted to his position.

But if he were to give specific challenges that one encounters on a daily basis, when working with enterprise performance management, he lists the following two: A. Selecting the correct strategic KPIs for use in the balanced scorecard and selecting appropriate operational performance indicators (PIs) displayed in dashboards. B. Right-sizing activity-based costing (ABC) models to prevent them from being overly complex and well beyond diminishing returns on extra accuracy relative to the incremental administrative effort to collect, validate, calculate, and report the information.

Performance outside working hours and field tips On the topic of measuring ourselves upon clocking out at work and using the available technological solutions to help us achieve, this is an area which our interviewee has had little treading, other than using his smartphone calendar to schedule appointments. Although he is not an early adopter, Gary feels that with the explosion of mobile apps and devices like Fitbit, that monitors one’s physical activity, this is an emerging use of technology for individuals in their personal life. On the same topic, he notes that despite all the technological developments aiding us in our measurement endeavors, we should try as best as we can to manage our work32 DECEMBER 2016

Fail fast and move forward life balance on a continuum. His sense is that a majority of today’s career-conscious professionals are out of balance, focusing incessantly on work and forgetting about their lives or the impact their work-first mentality has on the lives of others – including their family and friends. This last point intertwines with his first tip for professionals now starting on this road: “When interacting with others, always think about what you can do or offer to help them.

In addition to this, one must strive to create a culture in his or her organization that is built around analytics, discovery and investigation. This includes tolerance with others to make mistakes – as long as one learns from their mistakes. Fail fast and move forward. There is no need to dwell on the present for too long, given that once a mistake occurs, it is already starting to become history. Understand as best as you can what went wrong, so that you reduce the chance for the same issue appearing twice, and keep on going forward, improving and developing. Gary concluded the interview saying to consider this brief narration by John Nash, the Princeton University mathematician and Nobel Laureate in Economics. Nash introduced a theory describing how rational human beings should behave if there is a conflict of interest. In the 2001 Academy Award-winning movie about Nash’s life, A Beautiful Mind, he said: “I like numbers because with numbers truth and beauty are the same thing. You know you are getting somewhere when the equations start looking beautiful. And you know that the numbers are taking you closer to the secret of how things are.” Gary believes that the executive management teams with the courage, will, caring attitude, and leadership skills will shift their organization’s EPM methods and practices from the status quo to progressive ones.

HAVE YOU HEARD ABOUT THE LATEST TRENDS IN PERFORMANCE IMPROVEMENT? WE’VE JUST LAUNCHED 2016 EDITION OF

STATE OF PERFORMANCE IMPROVEMENT AND KPIS PRACTICE REPORT 2016 FAST AND EFFECTIVE ACCESS TO HEALTHCARE DATA ANALYSIS We know how rapidly your business environment is changing and maybe it’s time for an upgraded perspective on the process of making strategic decisions.

The continuous process of benchmarking allows hospital to see how their organizations stack up DIDexecutives YOU KNOW? against competitors as well as national leaders. 80% of respondents notice a positive impact on business development after KPIs and performance improvement

COMPLETE practices are deployed STRUCTURE within their organization. 22%ENCOMPASSING of respondents considerTHREE Employee Performance EQUALLY Management as most susceptible to improvement. IMPORTANT DIMENSIONS 55% of respondents appreciate their processes as extensively aligned to organizational strategy.

PATIENT FOCUS

9 DEMOGRAPHICS This dimension focuses on patient experience,

HOSPITAL RESOURCES ADMINISTRATION 26

TOPICS

HOSPITAL PROFILE

300+ RESPONDENTS This dimension relates to the operational

This approach provides insights into the assessing the interaction between hospitals core operations and hospital related activity, profile of the hospitals and the aspects and patients in terms of medical service being centered around the following areas: concerned with this dimension are: hospital Encompassing the latest trends and practices in performance improvement, the report aggregates insights from a quality, timeliness of medical care or patients finance, technology, staff engagement, demographics, hospital profile and social experience and safety. from the services sector compliance and governance. responsibility. variety of enterprises, to manufacturing, from private to public organizations.

Discover more insights about the report on: marketplace.kpiinstitute.org

DECEMBER 2016

AROUND THE WORLD

THE CANADIAN TRANSPORTATION AGENCY Increasing performance throughout the years JESPER MENTINK

n the beginning of this century, the Canadian Transportation Agency has recognized the need to develop and utilize performance management practices in order to increase its performance levels. A performance management system provides managers with detailed information and data, which can be used to improve the decisionmaking process, and eventually performance. In 2000, a performance management solution for the public sector of Canada was already deemed necessary. In particular, the Canadian Transportation Agency was in need of a framework that would define clear and measurable results, that would enable benchmarking with other institutions and/or companies within the public sector of Canada. Before implementing a KPI framework, the Transportation Agency did not utilize a structured system and/or process to consistently collect, analyze and report performance data. Therefore, it would have been difficult to evaluate or analyze the companyâ&#x20AC;&#x2122;s level of achievements. The Agency had no in-depth and real-time information about its own performance at any given point in time. As an example, the CTA was having difficulties with reporting on the total costs related to its projects and programs. As such, the challenge for the agency was to identify qualitative, as well as quantitative indicators to measure their performance over the short, medium and long-term. Consequently, the following indicators 34 DECEMBER 2016

were set in place and analyzed over time, to determine which were appropriate and which were not: Validity Is the indicator allowing the company to be precise in effectively measuring results? Reliability Is the indicator a consistent measure over a determined period of time? Relevance Is the indicator relevant to the determined activity, product or process that is being measured? Simplicity Is the relevant information available and will the information be feasible to collect and analyze? Affordability Is it cost-effective to collect and analyze the relevant information? You cannot manage if you do not measure After the successful implementation of the Performance Management Framework, the Canadian Transportation Company acknowledged that it brought the following benefits: Concrete information and accurate data can now be utilized for analyzing the agencyâ&#x20AC;&#x2122;s operations and progress in implementing its strategy;

Improvement of management practices; Improvement in planning, managing and measuring performance. The new practices that were introduced were not only beneficial for the Canadian Transportation Agency, but also for the Government of Canada, as it is now able to compare performance levels within its own public sector, and at the international level as well. Over the past years, the Canadian Transportation Agency has committed itself to managing its activities as efficiently and effectively as possible. The Agency now has a strategic plan, monitors and measures key operations and projects, as well as maintains good reporting practices. If we were to take a closer look at the its overall strategy, we would find that it emphasizes the following: Regulatory effectiveness; Service excellence; Maintaining a high-performing level. As can be seen in the annual report 20132014, the organization is now using over 20 different KPIs, which were segmented into several categories: Overall performance, Dispute resolution, Regulation, Compliance, and Communications. These KPIs help the organization analyze and compare its performance. In the following table, you will see that several of these indicators, belonging to Canadian Transportation Agency, have an upward trend:

AROUND THE WORLD

Services

Standard

Target (%)

Rail and accessibility disputes facilitated

30 days

80%

Complex disputed resolved

90 days after pleadings are closed

80%

Undisputed coasting trade appl. processed

Prior to start date of vessel perform. services

95%

2012 - 2013 results

2013 - 2014 results

97%

100%

45%

87%

96%

98%

In addition to the KPIs that have an upward trend, here are a few experiencing downward trends:

Services

Standard

Target (%)

Air travel complaints facilitated

90 days

80%

Air licenses issued

14 days after receiving a complete appl.

90%

Time to publish formal decisions on our website

1 day

100%

2012 - 2013 results

2013 - 2014 results

93%

82%

96%

93%

99%

93%

In regards to improving its current approach to measuring performance, the Agency can consider bringing more clarity in naming its KPIs. For example, â&#x20AC;&#x153;Time to publish formal decisions on our websiteâ&#x20AC;? does not indicate the fact that the measurement itself is referring to % On-time publishing of formal decisions on the website, so from the get-go, this KPI is misleading, which can alter performance results. Another recommendation we can make is advise the Canadian officials to look at the Target and Standard column of the table. It is good practice to ensure that KPI names are concise and meaningful for the measurement process to facilitate communication of performance results. Keeping things brief and simple is often the key to success. All things considered, as we have seen with Canadaâ&#x20AC;&#x2122;s CTA, performance management frameworks help companies visualize their performance results and better understand their business. Governmental entities are pressured to provide better services to citizens and are held accountable for how they use their resources. In this context, performance management practices are steadily and surely becoming mandatory for modern governments. DECEMBER 2016 35

AROUND THE WORLD

GUERNSEY’S OPPORTUNITIES IN FINTECH JESPER MENTINK

N more and more commonplace and we owadays,

technology

becoming

see it being used in virtually every facet of life, from health to communications, and from transportation to finance. The rise of FinTech – the financial technology industry, has caused quite an upstir, but also opened up many opportunities. According to KPMG, one of the largest professional auditors worldwide, 7.4 billion USD have been dispersed across 416 deals in H1’ 2016 alone. In the following graph, you can find the annual financial trends in relation to VC-backed FinTech companies. As can be seen in the histogram, the annual global financing trends to VC-backed FinTech companies has increased exponentially

over the past years. In addition, financing activities are predicted to rise to 6-8 billion USD by 2018. One of the first governments that published a strategic vision for FinTech was Guernsey. In 2015, the State of Guernsey published their report ‘A strategic vision for FinTech’, which was conducted with the help of PwC, and representatives of the FinTech sector and the local industry. The State of Guernsey, together with Commerce & Employment (C&E), and the Finance Sector Policy Unit (FSPU) described the significant opportunities that FinTech would create for Guernsey’s existing finance industry. It would enable Guernsey to preserve and

enhance its’ position as a ‘Key International Finance Centre’. According to the European Commission, FinTech can be defined as ‘the combination of innovative financial services and the availability of capital through the use of new (digital) technologies, such as crowdfunding’ Generally speaking, FinTech can be divided into four sectors, namely: Payments & currencies: online payments, mobile payments, crypto currencies etc.; Software: programs and processes to improve back and middle office processing;

Annual Global Financing Trends to VC-Backed Fintech Companies 2011 - 2016 YTD (Q2’16) 807 710 560 451

416 $14.5

311 $7.3 $2.1 $0.6 2011

$2.5 $0.6 2012 Q2 Investment ($B)

$3.1 $0.6 2013

$5.2

$7.4 $2.5

$1.8 2014 Overall Investment ($B)

2015

2016 YTD Deals

The Pulse of Fintech Q2 2016, Available at https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2016/08/the-pulse-of-fintech-q2-report.pdf 36 DECEMBER 2016

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Platforms: peer-to-peer lending, crowdfunding; Data & analytics: telematics, biometrics, compliance; big data etc. Guernsey’s opportunities Guernsey has a substantial number of opportunities that are to be exploited. The major opportunities include: Establishing a trusted location for international data Guernsey aims to establish top quartile data regulations that provide both a strong level of data privacy, as well as compliance for businesses. It will particularly benefit individuals that want greater control of their data, and require privacy assurance. In addition, businesses that want to demonstrate credibility through regulatory compliance will receive less ‘draconian treatment’ than what is currently proposed under EU regulation. In regards to FinTech opportunities, it will enable the creation of value and intellectual property by being able to analyse ‘big data’, and it will facilitate growth in local technology-based industries. Creating an institutional peer-to-peer platform Peer-to-peer platforms can be of significant value. Peer-to-peer lending is the most dominant, while it bypasses traditional bank lending. Regarding opportunities, peer-to-peer platforms are complementary to Guernsey’s existing fund administration. The island has innovative fund structures, such as cell companies. However, peer-to-peer lending platforms vary significantly with traditional platforms. The importance lies within the guidelines that are established to ensure that only high quality platforms operate in Guernsey. Treasury functions of payments The level of competitiveness within the payments sector is high, and is dominated by major players that operate at low profit margins. However, few niche markets are identified where Guernsey could do business.

‘Guernsey should target corporate treasury functions and create a ‘’walled garden’’ for the operations of foreign exchange and payments.’ Creation of wealth management platforms Through the creation of e-trading/portfolio platforms and a close integration of front and back office systems, wealth management platforms are able to develop and/or operate more effectively and efficiently. Guernsey believes that there is opportunity for growth in the provision of these platforms. Indicators In order to guide the vision of FinTech, the government of Guernsey has set indicators, which include: 1. FinTech opportunities with a high economic value will be prioritized Given the limited resources on-island, it is important to maximize the value of the contribution to the local economy from those resources. Positive indicators Primary contribution: The opportunity creates employment in the Island, particularly in senior/specialist roles through establishment of a physical presence in the Island. The opportunity makes a valued total tax contribution to the Island, i.e. combination of payroll, social security and company (income) tax (if applicable). The opportunity involves a locally owned organization and profits contribute to the local economy. Secondary contribution: The opportunity provides secondary benefits to the Island by the employment of local service providers, e.g. data centres, IT, legal, accounting, consulting and financial services administration. The opportunity provides a recognized contribution to the Island economy through its activities. Negative indicators The opportunity only creates a digital footprint in the Island and the local economic contribution from connectivity and data storage fees is low. The opportunity only creates employment for a small amount of unskilled labour. A strategic vision for FinTech, Available at https://www.gov.gg/CHttpHandler.ashx?id=96797&p=0

Nonetheless, the State of Guernsey would increase their strategic vision significantly by utilizing a scorecard and/or dashboard to measure performance. The next steps that Guernsey must take include: the development of a commercially focused business group that targets and manages potential opportunities, the implementation of a start-up fund, a clear delineation of its strengths and needs, an analysis of the appropriateness of payments legislation, a development of NRFSB rules and regulations of lending activity and a few more. Nevertheless, aside from the future improvements that need to be made, Guernsey remains one of the first governments that published a strategic vision for FinTech, thus creating not just a few, but a plethora of opportunities. DECEMBER 2016 37

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CLUJ-NAPOCA Best Practice in Strategy Building ALINA MIERTOIU

S for top executives to spend time and trategic planning - is it just a fancy way

energy working on formal documents that have no real impact in the organization, or is it a remedy that can solve many issues within the organization?

In “The Art of War”, Sun Tzu defined strategy as: “the great work of the organization. In situations of life and death, it is the Tao of survival or extinction. Its study cannot be neglected.” Therefore, we can think about strategy as a proactive approach of estimating future events and trying to benefit from them. Managers have the possibility to develop future growth models and to promote the development of a strong competitive advantage , and not just draft a rigid operational list or conduct a SWOT analysis. Moreover, strategy is never the product of top executives working with consultants, it is “the great work of the organization”, allowing stakeholders to influence the final strategy of the organization.

38 DECEMBER 2016

One of the most important aspects of a strategic plan is that it gives a broader understanding of the internal and external environment, focusing on strategic priorities, rather than on what is important in the short run. Although it can be time consuming and perceived as a rather complex and complicated process, strategy building is very beneficial for an organization’s growth.

the key strategic factors, the strategic profile of the city, its competitive advantage and of course, the operational programs which would help implement the strategy. The program also has a practical component of political and administrative ownership on implementing the strategy, and a thorough monitoring and evaluation system was recommended.

Even though strategic planning is widely used in organizations, more and more governmental entities or countries are following this model as good practice for community development. A best practice example of developing a strategic plan from2014 to 2020 at the community level is Cluj-Napoca, second biggest Romanian city registering a fast growth.

“Cluj will be a model of good governance, with a transparent, progressive and performant public administration, where the citizen will become the partner of the administration. Cluj will become a pole of academic excellence, where the academia engaged in the life of the community will be the source of creativity, innovation and research. Cluj will become a European mark through its dynamic, vibrant cultural life which supports experimentation and initiative taking. Culture will represent a transversal factor in organizing the community, becoming the engine of social transformation and urban regeneration.”

The strategic planning process for the city of Cluj-Napoca was developed in almost two years, as it started in February 2013 and ended in December 2014. It focused on involving both the community and specialists from different fields in shaping

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The three key strategic factors were: innovation, university and participation. Based on these three factors, 8 strategic dimensions were established, each divided in smaller working groups with more specific themes:

People and community to which 8 working groups were assigned;

Good governance divided in 2 working groups;

Because this strategy was focused on community involvement and on having a real impact, a research study assessing the quality of life was conducted as part of the preliminary structural analysis. Qualitative and quantitative data were analyzed, as well as the national and international strategies or the key competitors. Besides the preliminary structural analysis, the working groups employed other instruments for the development of the strategy, such as: PEST or SWOT analysis, identification of key strategic problems, analysis of the potential competitive advantage, and strategies and operational programs drafting in each of the previously mentioned sectors. Following the employment of these instruments, one of the most notable overall recommendations for the implementation of the 200 operational programs is the creation of three different groups. Groups responsible with implementation, monitoring and evaluation in three different strategic areas:

Innovative, creative and competitive city with 5 working groups;

Culture and local identity divided in 5 working groups;

Participation responsible with Associativity, Social Inclusion, Multiculturalism, Youth, Public Health, Sport and Community and Film; Creativity accountable for Local Economic Development, IT, Culture and Creative Industries, Tourism, Territorial Marketing, Environment, Safety; University in control of Higher/ Pre-University Education, Historical Identity.

Urban development and spatial planning with only one working group;

Green city one working group;

Healthy city which had 3 working groups assigned;

Safe city with one working group.

We can see that a special attention was paid to metrics and performance indicators, which helped all groups in the preliminary analysis to measure the actual performance and to describe the current state of each sector. Moreover, employing a measurement system based on indicators helped each working group to discover the strategic problems or areas that can be used as strategic advantage. The strategy also clearly states that the monitoring and evaluation stage of the operational programs and the strategy for each sector, require performance measurement systems. To put things into perspective, if we follow the methodology used by the strategic planning team from Cluj-Napoca, we can easily see how it could be adapted not only in other governmental settings, but also within a private organization. DECEMBER 2016 39

AROUND THE WORLD

BARBADOS bridging the gap between man and government MARCELA PRESECAN

T can be slow to act – really slow. And we The thing with governments is that they

are not referring here to the much debated and criticized situation of Hurricane Katrina, the 2016 Argentinian Locust Swarm or the recent Indian Heat Wave. We are talking about the average citizen, standing in line at the counter to get his/her paperwork done, about the kicking around back and forth for an official stamp or the lengthy time it takes a civil servant to answer a telephone call. And it is as true, as it is not so surprising, that a world sprouting up millennials like never before, cannot endorse much longer the “primeval tantrums” of governmental bodies. The crux of the matter So, what’s with this slow-paced sickness, afflicting government agencies and civil servants alike? And is there a cure to this epidemic? Debates over time and, otherwise random disclosures, have surfaced not one, but many factors to blame. On the government’s side, these include but are not limited to: unstructured processes, burdensome procedures, hopeless bureaucracies, inadequate equipment and outdated technology. With respect to civil servants, governments are accused of entertaining ill-mannered staff, lack of business acumen, limited accountability, the inability of public officers to carry out duties and meet the expectations of the citizens. As news of ridiculously apathetic governments spreads, many of these entities search for a 40 DECEMBER 2016

solution that they can parade around, in order to settle down angry nationals. And it is now, in the latest ages of man, that governments have come to realize the need for producing and measuring the results that their societies expect of them. However, throughout this process, not all of the world’s governments have managed to get to the bottom of things. Many are having customized performance management systems designed for them, others are integrating performance criteria within their already existing frameworks, for reporting on performance. Few of them actually go deep enough to acknowledge the core of the matter that needs improving, the foundation of all things, whether system or society: man.

Thorough this framework, the Government of Barbados is thus trying to ensure that: Public servants are educated enough to inform the public about the best public provider for their needs; An efficient environment is created as a prerequisite for quality public service delivery; The public profile of governmental institutions is raised, while allowing increased stakeholder buy-in; Progress towards the achievement of the country’s Medium Term Development Strategy is achieved.

So even though it might come across as a surprise, Barbados makes it as one of our favorite countries on this topic, due to their systematic approach.

The Performance Assessment Framework for the Human Development Strategy with the Government of Barbados is clear, concise and provides access to some valuable performance indicators, which can be used to monitor results across Human Development Programs worldwide.

The Barbados HDS Through its Human Development Strategy 2011-2016, Barbados is maybe one of the few countries that gets it: governments are people, and investing in people will produce more efficient governments.

The Barbados PAF has a well-defined structure consisting of: Strategic Pillars, Activities, Performance Indicators, Results Indicators and Impact Indicators.

The Barbados Human Development Strategy promotes the development of human capital within the state’s Government, and then some. It comes up with a Performance Assessment Framework – PAF for short, which establishes performance indicators that monitor the execution of the Human Development Strategy.

A number of 15 Performance Indicators measure the progress of activities under 5 pillars, namely: 1. Enabling Environment 2. National Qualifications Framework 3. Demand-Driven Educational System

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4. Knowledge Management Systems 5. Research, Innovation and Entrepreneurship Capacity These Performance Indicators are mainly input and process indicators. They ultimately feed into 9 Results Indicators, also known as KPIs, the progress of which is rigorously monitored with the help of a Performance Scorecard, as can be seen on the following page. In addition to these, the framework’s Impact Indicators relate to the main objectives of the Barbados Human Development Strategy and reflect on the overall competitiveness of the country on the international market. Strategic objectives are formulated for the Results Indicators, under each of the 5 pillars and every indicator, whether Performance Indicator, Results Indicator or Impact Indicator is documented for the following fields: Name, definition, justification, limitation, source of Verification The following elements are standard items to be found within an Indicator Documentation Form. Indicator

Description of Target

R05

Number of persons utilising Career Planning and Counselling services at the post-secundary level.

Indicator Definition: This indicator refers to the number of persons who undergo a formal

session of career planning and counseling at the post-secondary level through one of the institutions authorized to offer the career planning and counselling service. Indicator Justification: The global competitive nature of the workplace demands a more skilled worker, one who comes with the relevant academic knowledge and skills to satisfy the demands of employers in the labour market. For all individuals, including students and persons in the labour force, career planning guides the education and training decisions and lays the foundation for lifelong learning and continuous career advancement during their working lives. However, it is recognized that there is a need for better coordination between career planning services being offered within and outside education and training institutions and the labour market. As it currently exists, there is no formal framework of career counselling at the secondary level. Whatever level of counselling that currently exists is focused more as a reactive intervention for personal development rather than a proactive intervention towards professional and lifelong development. Building on the existing network of the Guidance Counselors Association of Barbados, a National Career Planning and Counseling Unit – NCPC Unit, under the MEHR will be established to coordinate and support such activities within the secondary and post-secondary school system.

The NCPC Unit would be responsible for effectively utilizing labour market and human resource information and other research to provide a pool of information for dissemination to schools and educational institutions. For the adult population outside of the school system, the National Employment Bureau, under the Ministry of Labour and Social Security, will be strengthened to become the premier career counselling centre for the labour market and will liaise with the NCPC to provide a mechanism that would support the transition of students from school to work. Indicator Limitation: This indicator will require the establishment of the appropriate policy framework and institutional mechanisms to support its promotion and implementation. Work on these aspects will commence in Quarter 1, April – June of the Financial Yeah 2012 – 2013. Source of Verification: Administrative records of the MEHR and registered educational providers and agencies authorized to deliver career counselling services. So what have we learnt from Barbados’ example? Well, if nothing else, the simple fact that citizens demand quick and efficient actions from the government, just as they do from the market. And that’s the thing with people: they can be fast, really fast. Give them what they need to perform and they will, in turn, produce an efficient government.

Barbados, Human Development Strategy Indicators, Available at https://labour.gov.bb/pdf/Barbados_HRD_PAF.pdf DECEMBER 2016 41

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GO PREMIUM

EVENTS INDIVIDUAL PERFORMANCE

HELPFUL TIPS ON HOW TO PERFORM AN EMPLOYEE PERFORMANCE REVIEW JAMES DANIELS

P regularly schedule employee performance art of your job as an employer is to

reviews. These reviews give you a chance to chat one on one with your employee and discuss strengths and weaknesses they may have. This performance review can then be used to determine if they are eligible for a wage increase. In most companies these performance reviews are conducted on a yearly basis. They are bound to cause stress for the employee who is under review, but often the employer or HR person conducting the review is also under pressure to ensure they do a thorough review. The following is a list of tips that can help you get more information as you prepare to conduct employee performance reviews. Conduct Employee Satisfaction Surveys in Advance Employee satisfaction surveys give employees a way to get more information and feedback from their staff, usually in an anonymous way. This information can then be useful as you head into performance reviews. It may help you form the questions you want to ask. 44 JULY DECEMBER 2016 2016

One good source for more information on this topic is InsightLink, where you can find a lot of useful tips and information. Prepare for the Review Not only do you want to take the time to write out the questions to ask, you also want to prepare for the review in other ways. Have a full job description, the goals expected from the employee, and speak to those the employee works closely with. All of this can be shared in the review as a means of helping the employee being reviewed, as well as you. Not a Place to Air Grievances for the First Time The employee performance review shouldn’t be thought of as a place to air grievances with the employee’s performance for the first time. This should already have been discussed. The review shouldn’t come off as though they are being attacked. Keep Things Positive The entire review should be kept positive and optimistic. Where there is something

negative to discuss, try to turn it around and turn it into a positive learning experience. The review is meant to be a helpful meeting for you and the employee, so keeping things positive will certainly help with this. Give the Employee the Floor While you will have plenty of questions to ask, there should be a chance to shift the focus to your employee and give them a floor. Ask for their input; ask if they feel they need more support and guidance, and if they have anything to add. This is a chance to gain insight into how they do their job and how you can help them do it even better. It’s also important to ask employees how they think they are doing in their job, so ask for their own self-assessment. It will help them to feel valued and let them know you want their input. By following these simple tips, you will be well on your way to conducting successful and insightful employee performance reviews. These reviews should benefit both parties, so keeping things positive and honest is the best way to go.

INDIVIDUAL PERFORMANCE

INTERVIEWS, QUESTIONS & EMOTIONAL INTELLIGENCE LEVELS ANDREEA POPONEA

W known

e’re all characterized by something as emotional intelligence, which cannot be felt by physically touching a person. It affects the way we behave and interact with other people, and also how and what personal decisions we make, in order to reach positive results. According to a study conducted by Forbes Magazine, out of all the employees that participated in it, 90% of the top performers registered high values for their emotional intelligence quotient, whilst out of those sitting at the bottom of the performance ladder, only 20% scored high on the EQ chart. Nowadays, one of the most common mistakes that many HR professionals have noticed is the fact that employers are still recruiting based on hard skills, rather than taking into consideration soft skills as well. Soft skills, or Emotional intelligence, are based on the following five pillars: Self-awareness and self-control these allow you to remain aware of your emotions and manage your behavior and inclinations Empathy the ability to understand and share feelings with other people Social expertise the ability to develop positive relationships and understand people’s intentions, behaviors and moods, whilst giving you the motivation to improve your relationships Personal influence the capacity to act positively and inspire the people around you

Mastery of purpose and vision this is all about bringing authenticity to someone’s life Emotional Intelligence Interview Questions 1. Self-awareness and self-control Tell me about the time when you did or said something and it had a positive impact on a coworker, customer, or an employee. How do you know if your words or behavior have a positive/negative impact on others?

Have you ever been in a situation where you thought you needed to adjust or alter your behavior? How did you become aware? Where you ever surprised by criticism? What was it about and why were you surprised? Are you ever looking forward to go to work? 2. Empathy Think of a moment when you didn’t understand something at work. What did you do?

INDIVIDUAL PERFORMANCE

Every response you give to another person involves your intellect and your emotions. The intellect composes the message, and the emotions provide animation and grace. Emotion is the message what music is to the lyric. Without the tune, would anyone ever remember the lyric? The skill to combine intellect and emotion in this dramatic and powerful fashion is emotional intelligence, and it possesses the power to elevate even the common exchanges of everyday encounters from the base level of me-and-you to the sublimity of I-and-Thou! – Howard Hopkins

Think of a time when you easily discerned that someone needed help. What did you do? 3. Social expertise Let’s talk about that time when you were able to get something done at work, due to the relationship you had with another person. What makes you a good follower? Did you solve any work-related issue recently? If yes, how? Tell me about a situation where your input improved someone’s work. 4. Personal influence Describe a situation in which you would be confident enough to disagree with someone. When do you ask for assistance? Let’s talk about the last time you sought someone’s help with something. 46 JULY DECEMBER 2016 2016

Have you ever thought of a way of being more efficient with your work? How did you go about it?

What makes you laugh?

What about that time when your plan didn’t come to fruition, what happened? How did you feel about that?

What makes you angry?

Describe your goal-setting process. Were you ever put in charge of leading a project or a team? 5. Mastery of purpose and vision Were you ever bored at work? What job do you loathe? What type of work would you find inspiring? In addition to the aforementioned pillars, Phil Johnson, the founder of the Master of Business Leadership system, compiled a list of the most popular interview questions, used by MBL clients, to evaluate a candidate’s current level of emotional intelligence:

How do you have fun?

How could you create more balance in your life? What is one of the internal battles to have each day? Who inspires you? Why? On an “average day” is your main focus on results and tasks or people and emotions? The bottom line of it all is that you can be a top performer without emotional intelligence, but having a high EQ quotient helps with situations where your hard skills cannot fix a certain issue. The good news is the more you train your brain, by repeatedly using various emotional intelligence-enhancing strategies, the better you become at everything you do, from interacting with others or even your work.

INDIVIDUAL PERFORMANCE

THREE WAYS TO FOSTER MEANINGFUL CHANGE ANDREEA POPONEA

H day after day? Probably more than you ow often do you do the same thing

think. In fact, about 40% of the things we do every day are habits that don’t require any active thinking at all. Perhaps even more startling, some research has found that at least 80% of our thoughts are essentially the same, day in & day out. It seems like we are hard wired to be creatures of habit. The problem is that some of these habits have real consequences. Have you ever driven home from work only to realize you don’t remember anything about the last 30 minutes? This happens because our brains are one of the most energy-consuming organs in our body, and therefore we develop habits and routines as a way to conserve precious energy to think about more important things, like what to make for dinner. In the same way that we develop routine habits, we also develop cognitive biases,

systematic errors in thinking that lead to bad decisions and mistakes. An example is called the “confirmation bias,” where we seek out and pay attention only to information that confirms our existing beliefs. This bias is particularly easy to observe during election seasons. Cognitive biases are universal, they affect all of us, and some of these biases prevent us from seeing the world in new ways and creating meaningful change. But what has all of this to do with business? Challenging the status quo, adapting different perspectives, and accepting risk and failure are extremely difficult, but all of these are necessary for businesses to thrive in our constantly changing world. To make this happen it is necessary for

individuals and organizations to become agile. When individuals are agile, they have a level of mental and behavioral flexibility that unlocks their ability to generate original ideas and put those ideas into practice. This leads to organizational agility, the capacity to recognize, create and exploit opportunities in a changing environment. Agile companies foster innovation and evolve more successfully than their competitors by capitalizing on opportunities emerging around them. TRACOM, an agile solutions provider, has pioneered a course to recognize and overcome the cognitive biases that stand in the way of agility. The goal of the program is to help people develop new habits that will unlock possibilities for their teams and organizations. Here are three examples of techniques to boost positive change in your organization:

INDIVIDUAL PERFORMANCE

1. Encourage Your Employees To Share “Ridiculous” Ideas “It’s just so crazy, it might work.” A lot of times we are afraid, or more often are actively discouraged from thinking creatively. We become victims to patterns or processes and we follow protocol to avoid risk. Yet many of the greatest business successes have come from breaking protocol and trying something completely new. But ironically, while many leaders implore their people to think outside of the box, in reality they discourage employees by digging in, becoming more conservative, and forcing employees to follow the old tried-and-true processes. While they say they want new ideas and risks, they don’t actually make it safe for people to do these things. Throughout history new ideas have been consistently rejected and ridiculed. But without the persistence of the people we now view as famous innovators, we would be decades behind in terms of medical, technological and scientific advances. So 48 DECEMBER 2016

what if you implemented a new procedure of having your employees share their most ridiculous or far-fetched ideas? Many of those ideas would be crazy and unusable, but that’s okay. The technique works by opening the team up to new possibilities they wouldn’t otherwise consider, and building off ridiculous ideas to create practical and usable ideas. The team will achieve a collective mind shift and consider innovative ideas that otherwise would have been out of their reach. The key is you have to make this a part of your every-day processes, thus making it safe for people and developing a new organizational habit. If you think this technique seems farfetched, do a Google search on “salmon cannon” to get a small glimpse of the possibilities this can have for an industry and company.

give yourself a constraint that you can only work on it Tuesday morning between 9:00 and 9:20. While this might seem difficult, it forces you to think of how you can complete the report more efficiently. For example you could decide that instead of the usual three-page detailed review of your department’s efforts, you’ll write a one-page bulleted synopsis.

2. Give Yourself Constraints

3. Define Excellence

Lock yourself up! It turns out, people can be inspired by life’s constraints. This might be surprising, as we typically think of creativity or change being fostered from someone who was given limitless resources to achieve the magnificent (think of the popular, but completely untrue, image of Thomas Edison working alone late into the night on his inventions). In fact, life is full of constraints, and this ultimately is what leads us to be creative.

Excellence for me is… Most companies have a mission statement that describes its ideal of success and company culture, but shouldn’t we also define excellence within our specific departments and even for ourselves? When we hire employees, they typically know their objectives and the requirements associated with their job. But as they progress in a company, so do their responsibilities. In a similar way, our departments also continually progress and change.

For example, poems are inherently constraining due to limits on length, rhyme patterns, and so on. Yet these constraints are what separate master poets from amateurs. A few of you might remember the TV show, “Whose Line Is It Anyway?” an improvisational comedy show where the comedians were given certain constraints to create a funny story. These constraints were audience suggestions, and because of these constraints, the comedians created comical skits that would never have been thought of without the constraint, and ultimately led the skit to be that much funnier. Imposing constraints is also the basis of supply chain management, where we are constantly looking for ways to improve efficiency through adding constraints.

A great way to focus people and help inspire a culture of excellence is to explicitly define what excellence looks like. This does not mean regurgitating the mission statement that is plastered in the hallway. It means defining what excellence means for a specific department, or even project, and constantly evaluating efforts against that definition. Simply creating 5-7 criteria for excellence, even if the criteria seem obvious, can re-energize and motivate your workforce. One tip is to create an acronym that meaningfully captures your criteria and is easy to remember.

These are all real constraints. This technique works by imposing artificial constraints on an issue or problem. For instance, when struggling to write a departmental report,

When we give ourselves and our employees constraints, we can create a new foundation to foster change. These constraints can be unique to your company’s products or services, or can be as simple as growing revenue by 10% using LinkedIn connections, creating a promotional video without auditory words, or developing a new product that is the same size, but weighs 30% less. These constraints can spark new and practical outcomes.

Change begins by altering the way we think and behave. Many people assume this is difficult, but it is mostly just a matter of adding new strategies to our daily routines, which creates new and more effective habits. Casey Mulqueen, Ph.D. is an organizational psychologist and senior director of learning and development at the TRACOM Group.

EVENTS ORGANISATIONAL PERFORMANCE

HAPPINESS AND ORGANIZATIONAL PERFORMANCE MARIETTE WAHYUNINGSIH

H hard

appiness is not usually associated with data, performance, efficiency and so forth, but a Kansas State University researcher, Thomas Wright, points out that this particular factor can contribute greatly to organizational performance. Wright states that when employees have good levels of happiness or psychological well-being along with job satisfaction, they perform better and are less likely to leave their job.

Greater likelihood to push for improvements and innovation In addition to this, happiness can push employees to get a deeper understanding of their work. This creates a push for motivation to not only work better, but also self-improve and find ways to develop the company, which is especially true for the company’s innovators.

As such, he lists the following elements as just some of the benefits of actively pursuing happiness as a goal in itself, in an organizational performance setting.

Innovators will try and develop modern ideas to create better products and offer better services, so as to net the company a larger profit. This gives them an edge when it comes to building the company’s success.

Boosted work performance

Reduced costs

The feelings and emotions of a happy employee brings better work performance.

Because happiness in employees is closely linked to productivity, it is also closely linked to lost productivity. If an employee’s salary is tied to an associated level of production, the company can register a loss in profits of up to $75 per week, due to psychological distress.

One the one hand, Wright points out that this key factor contributes to developing better work focus, as happiness increases feelings such as positivity, joy and contentment. On the other hand, when an employee is less positive, they attract negative emotions that will block their concentration and focus. Wright adds that happiness generates a higher job performance level by an astounding 0.30 to 0.50 on his study’s scale. As a result, the quality of one’s work may be quite low, increasing the amount of time needed to reach a certain target.

Wright estimates this loss by a form of utility analysis, having in mind a management employee with an average salary of $65,000. This adds up to a shocking $390,000 of an annual productivity loss for only 10 dissatisfied employees. Furthermore, an employee’s psychological state can alter their emotions towards their employing company, with the possible worst outcome of quitting their job. The outcome

of employees quitting is quite costly, as the company will need time and money to recruit and train new personnel. Wright’s study presents the intimate relationship between happiness and organizational performance. An employee’s personal perspective on work & well-being can oftentimes result in a greater domino effect being set into motion. It can bring improvements, such as better performance and spur innovation, but can also bring about massive loss of time, production and money. Hence, the company’s managers should always have this factor at the back of their minds and try to assist employees in reaching their full potential by: Fitting employees to appropriate jobs and tasks, that match their strengths Providing social support to reduce stress Teaching how to have a optimistic view on life and work, even when things don’t necessarily go as planned Creating a friendly, less stressful environment at work Hiring employees that are more emotionally mature In conclusion, companies need to acknowledge the impact that happiness can have on an organization’s development. They should analyze and create solutions which are aimed at maintaining development and growth for both themselves and their employees. DECEMBER 2016 49

ORGANISATIONAL PERFORMANCE

TESLA PLANS ON REVIVING AN OUT OF STYLE BUSINESS PRACTICE MARIETTE WAHYUNINGSIH

T forces in hopes of reviving a business

esla and SolarCity are combining their

practice that has gone out of style. How are they going to do that?

Tesla CEO, Elon Musk, plans on going back to what is known as vertical integration, even though many modern production businesses have been decidedly refusing to even think about this long forgotten business practice. Nevertheless, Elon Musk is not deterred by this fact and has decided to try his hand at combining a car company with a solar company. Tesla’s most recent blog post explained their decision: “Tesla and SolarCity have a tremendous opportunity to create a vertically integrated sustainable energy company offering end-toend clean energy products. Leveraging the core competencies of each company, consumers can look forward to deploying and consuming energy in an efficient and sustainable way, with SolarCity’s existing 50 JULY DECEMBER 2016 2016

solar power systems and ultimately with a solar roof, a Powerwall 2 that maximizes the benefits of the combined system, and a Model S, Model X or Model 3, all while lowering costs and minimizing dependence on fossil fuels and the utility grid.” Tesla is well acquainted with vertical integration, but the collaboration between Elon Musk’s team and their supply chain has been wobbly, fact revealed by the problems they had with the design and production of the Model X SUV. For the past 30 years, “lean” or “just in time” production has been the go to for all major players in the automobile industry.

This process has lowered inventory cost and made it possible for manufacturers to adjust to any market shifts. Musk is nothing like other manufacturers, and in not catering to this trend, he has become one of the main advocates for vertical integration. If you look back at the history of manufacturing, you might think this may not be a stellar idea, but then again Elon Musk has oftentimes defied the norm and it paid off. He has some serious plans to reinvent vertical integration and his innovative way of thinking might just bring this technique back in the game.

EVENTS OPERATIONAL PERFORMANCE

HARTSFIELD-JACKSON ATLANTA INTERNATIONAL AIRPORT PERFORMANCE ON THE WORLD’S BUSIEST AIRPORT ADELINA ACATRINEI

L our lives and just like passengers who ately, airports tend to become part of

frequent them, they’re incredibly diverse. According to Council International’s 2015 Airport Traffic Report, more than 101 million passengers passed though Atlanta in 2015. The Hartsfield-Jackson Atlanta International is the busiest passenger airport in the world. If we take a look at the Hartsfield Annual Sustainability Report, we’ll see that last year Hartsfield-Jackson served 225 destinations,51 countries and handled more than 2,500 arrivals and departures, bringing more than 250,000 passengers through the airport on an average day. The airport is named after two important Georgia politicians: Maynard Jackson and William B. Hartsfield. The latter, a former alderman and mayor of the city of Atlanta, founded the airport at the site of an abandoned racetrack in 1925 and became its first commissioner. With support from the city and the attraction of such companies as Eastern Air Lines and Delta Air Lines, Hartsfield Airport grew quickly. In 2003, after the death of former Atlanta mayor Maynard Jackson - first African American to serve as mayor of a major

southern city - the name Jackson was added to Hartsfield Atlanta International Airport. Sustainable Management Plan and Performance Measurement Starting with the 90s, Hartsfield-Jackson incorporated a host of sustainability practices into airport construction and operation. They retrofitted terminal and concourse restroom fixtures with low-flow water and toilet fixtures and as a result, over the years the water Energy BTU per FT2

2020 Goal

consume was significantly reduce. Also, HJA updated the underground Plane Train system to collect groundwater infiltrating into the train’s tunnel for use in the terminal boilers. The groundwater used to be discharged into the sanitary sewer. In 2007, Hartsfield-Jackson opened the Taxiway “V” and reduced aircraft taxi-out emissions. As proof that this facility is really respecting our environment, since 2011 the domestic terminal parking deck metal halide lights were replaced with efficient LED lights. Now, all the airfield lights are LED.

Water Emissions Waste Gallons per Passenger Tons C02e per Lbs per Enplanement Passenger Enplanement Passenger Enplanement

20% Reduction from 2008 baseline

90% Reduction from 2008 baseline

136,457

7.68

0.031

1.15

-5%

-4%

-17%

2014 Actuals

129,043

7.31

0.029

0.78

2020 Goal

115,896

5.46

0.025

0.05

2008 Baseline (Adjusted for growth) Reduction Achieved

Hartsfield Annual Sustainability Report, Available at http://www.atl.com/wp-content/uploads/2016/09/Hartsfield-Annual-Sustainability-Report-Ebook-062716.pdf

DECEMBER JULY 2016 51

OPERATIONAL PERFORMANCE

Why is Hartsfield-Jackson Atlanta the World’s Busiest Airport? If you go right now on the street and ask people which is the busiest airport in the world, you might get answer like Heathrow, JFK or Beijing Capital International Airport. Few people know that this accomplishment actually belongs to Hartsfield-Jackson Atlanta International Airport, located in the southern US city of Atlanta, Georgia. And now you should ask yourself, why is Hartsfield-Jackson Atlanta the world’s busiest airport?

the distances that were covered during a given year. Another factor that makes HartsfieldJackson the busiest airport in the world is the location. Atlanta is located within a two-hour flight of 80% of the US population. This makes the city a major port of entry into the US and a logical stopover for travelers within the expansive country.

the Airport Surface Detection Equipment Model X (ASDE-X) - became best of friends with air traffic controllers. This safety tool tracks the movement of aircrafts and vehicles on runways and taxiways, and aircrafts as they approach the airport for landing. This continuous location and identification information, which increases the controllers’ awareness of what’s happening on the airport surface, is especially helpful at night or in bad weather when visibility is poor. The Hartsfield Jackson Atlanta is not the only airport that is growing each year, but it’s the best in this field. Despite threats of geopolitical unrest, terrorism and the ever-present concerns about the safety of aviation, worldwide passenger traffic increased from 6.4% in 2015 to almost 7.2 billion,COMMUNITY with increases in not one, but all PERFORMANCE PARTNERSHIPS INDICATORS the world’s six regions: Asia-Pacific, Europe, North America, Latin America-Caribbean, Middle East and Africa. It seems people won’t stop travelling very soon!

Another important factor that contributed to HJA’s growth is the city. Atlanta attracts its fair share of travelers and has been ranked the seventh most business travelled city in the US - a very natural thing, since it is home to the First of all, you have to know that Hartsfield- headquarters of 10 Fortune 500 companies, Jackson has the Delta factor, that means it is including Coca-Cola, Home Depot (a massive home to one of the world’s largest airlines, home improvement retailer), UPS (the United Delta Air Lines. Until 2012, Delta heldEFFICIENCY the Parcel Service)ENVIRONMENTAL and of course, Delta Air Lines. INTRODUC TION COMMITMENT AND CUSTOMER TO GROWTH EXCELLENCE record for most annual traffic – measured by We all should LEADERSHIP know that to achieve SERVICE that level “Revenue Passenger Miles” (RPM) – of any of performance, air traffic managers have to airline in the world. The metric of RPMs takes be aware of what happens on the ground as into account the number of passengers and well as in the air. For that purpose, since 2008

PERFORMANCE INDICATORS UNIT

2010

2011

2012

2013

2014

Economic Performance Direct Economic Value Generated

Revenues

Direct Economic Value Distributed

Operating Costs Employee Wages and Benefits

$400.80

$411.21

$394.13

$490.39

$493.31

$201.17 $90,912,000

$229.56 $82,050,000

$220.04 $79,785,000

$203.38 $82,482,000

$243.30 $85,591,113

40,953,747 4,421,551

82.5 41,431,848 41,100,221 9.85 4,900,947 4,956,007

85.6 42,818,014 42,841,471 9.85 4,901,837 4,952,506

84.2 42,058,871 42,114,220 10.2 5,059,285 5,198,848

85.3 42,643,560 42,751,120 10.8 5,360,897 5,433,322

Market Presence Total Number of Passengers Annually

Total Domestic Passengers (millions) Total Domestic Emplanements Total Domestic Arrivals Total International Passengers (millions) Total International Emplanements Total International Arrivals

Annual Total Number of Aircraft Movements

Domestic Aircraft Movements International Movements

855,215 68,781

862,101 68,209

843,126 67,948

793,568 74,791

Total Amount of Cargo Tonnage

Metric Tons Domestic (thousands) Metric Tons International (thousands)

253 385

246 369

232 334

227 328

1,026,534 944,161 82,373

1,064,034 974,800 89,233

1,159,117 1,060,453 98,663

1,213,952 1,069,688 144,264

1,244,040 1,092,336 151,703

252,622,788 252,622,788 -

353,604,284 252,930,964 100,673,320

343,779,304 254,721,676 89,057,628

341,304,047 253,425,143 87,878,905

350,773,270 253,692,594 97,080,676

41,550

EMISSIONS AND WASTE

WATER ENERGY

Environmental Total Direct Energy Consumed

mmBTU Total Energy mmBTU Electricity mmBTU Natural Gas

Total Water Usage

Gallons Total Water Usage Gallons for CPTC Gallons for non-CPTC Buildings

Total Direct Greenhouse Gas Emissions

Scope 1 and 2 Co2e Equivalent Emissions

Total Amount of Waste Generated

Tons

Amount Disposed to Landfill

Tons

25,501

19,215

18,838

18,637

Amount Diverted

Tons Mixed Paper Recycled Tons Cardboard Recycled Tons Metals Recycled Tons Cooking Oil Recycled Tons Cooking Grease Recycled Tons Construction Waste Tons Greenwaste (Mulching/Composting)

15 897 -

33 370 13 -

29 349 30 314 188 14,000 13,035

613 246 216 58,000

44,732 46,582

Employment Total Workforce

52 DECEMBER 2016

DOA Full-Time Employees Firefighting Personnel Police Personnel Total Employees Including Airlines, Concessionaires, Contractors and Professionals

CHANGE IS IN THE AIR

2 0 1 5 A N N U A L S U S TA I N A B I L I T Y R E P O R T

OPERATIONAL PERFORMANCE

HOW UNITED AIRLINES IMPROVE OPERATIONAL PERFORMANCE MARIETTE WAHYUNINGSIH

L been lagging behind many other airline or the past two years, United Airlines have

corporations, corporations such as Delta. This is especially true in their operational performance. In the summer of 2014, its ontime performance had only 66 percent of their flights arriving right on schedule. However, this year, the airline reached a record breaking ontime performance of 76 percent, an astonishing 10 percent increase in the last two years. This major improvement was achieved by launching key initiatives to create better airline services for customers. Here are some of their initiatives for improving operational performance: Better Scheduling Adjustments Airlines will always face scheduling changes because of weather difficulties or other turbulence. That is why, a change in the ticket itinerary must be done. This scheduling adjustments will help customers prepare for the different flight changes and still get to their destination on the same landing schedule. The airline corporations also try to keep the scheduling adjustment to a difference of a few hours only, trying thus not to create discomfort to their customers.

Equipping Employees with Mobile Devices United Airlines believe that communication is key. This is especially true if they want to reach better on-time performance. In order to do so, United Airlines have given mobile technology to pilots, flight attendants, and other airport based employees. This helps create better communication for employees, who are able to reach customers on land and on air. As a result, scheduling flights will be on point and the airline service will improve. Innovative Technology to Better Predict Weather Changes It is difficult to face issues that you cannot solve, this means facing alarming weather changes that can create flight delays and cancelations. Any storms or alarming winds are barriers when it comes to improving the on-time performance. The only solution for this is to improve the weather predictions. United Airlines have developed modern technology to predict future weather, from strong winds and storms, to other climate changes. These predictions will help create better flight and landing scheduling. Its innovative technology will also help create recovery solutions to better face weather issues.

Adding More Seats to Airplanes In order to increase productivity in a limited time span, a strategy that can be implemented is that of having more seats in an airplane. This gives customers more options to choose from. United Airlines is targeting 121 seats per departure in 2018. This adds 16 seats to newly furbished airplanes. They plan to do this by replacing old planes that are ready to retire with larger ones. Unitedâ&#x20AC;&#x2122;s target is to cut the number of planes flying with only 50 seats by more than 35% and replace old jets with ones that have a capacity of 120-130 seats. They also want to install slimline seats which will create more space to add more seats without limiting legroom. These strategies create better operational reliability that will attract customers, while reducing costs. Thus, they are creating better airline services, reliability, and profit. United Airlines hope that by making improvements in operations and regaining customers, they will be able to attract more shareholders and partnerships that will develop the airline corporation. DECEMBER 2016 53

OPERATIONAL PERFORMANCE

TURKEY TOURISM THE COLLAPSE OF A FAMOUS TITAN? ADELINA ACATRINEI

I most popular travelling site, announced n 2014, TripAdvisor, the world’s largest and

that Istanbul is the winner of the Travelers’ Choice Awards for Destination. A big and somewhat expected success, given the great strategy implemented by the Ministry of Culture and Tourism of Turkey starting 2003. Climbing 11 places on the leaderboard, 2014 was the year Istanbul surpassed popular cities such as Rome, London or Paris. Those who were surprised by the new ranking, rapidly understood why that happened. Istanbul is a vibrant city which successfully combines the ancient with the modern. It’s full of historic monuments and mosques, but it also has tons of cool restaurants, hip boutiques, and design-savvy boutique hotels that artists, foodies and fashionistas love. In 2014, Turkey was the state with the 17th largest economy in the world, with a GDP of $820 billion. At that time, Turkey had set an ambitious target to become one of the ten largest economies in the world by 2023, the centenary of the foundation of the Turkish Republic. That required Turkey to triple its economy to more than $2 trillion, make significant upgrades to its energy, finance, and information technology, and to develop a $500 billion export sector. Unfortunately, the odds were not on Turkey’s side, and the country that welcomed 41 million visitors in 2015 and became the sixth most popular tourist destination in the world, experienced a drop of 40% in 2016. 54 DECEMBER 2016

Top 25 Travelers’ Choice World Destinations - Tripadvisor.com (+/- denotes change in ranking year-over-year, 0 is no change and new is new to the top 25) 1. Istanbul, Turkey (+11) 2. Rome, Italy (+2) 3. London, England (0) 4. Beijing, China (+17) 5. Prague, Czech Republic (+4) 6. Marrakech, Morocco (+13) 7. Paris, France (-6) 8. Hanoi, Vietnam (New) 9. Siem Reap, Cambodia (+14) 10. Shanghai, China (+12) 11. Berlin, Germany (0) 12. New York City, New York (-10) 13. Florence, Italy (-5)

14. Buenos Aires, Argentina (+4) 15. Barcelona, Spain (-10) 16. St. Petersburge, Russia (+4) 17. Dubai, United Arab Emirates (New) 18. Chicago, Illinois (-4) 19. Cape Town, South Africa (-3) 20. Bangkok, Thailand (-7) 21. Budapest, Hungary (New) 22. Sydney, Australia (-12) 23. Lisbon, Portugal (New) 24. Chiang Mai, Thailand (0) 25. San Francisco, California (-18)

OPERATIONAL PERFORMANCE

fearing the increasing influence of the People’s Protection Units (YPG) and the Kurdish Democratic Union Party (PYD). In 2014, three regions were declared autonomous and in 2015 YPG took over the control on the border of Syria with Turkey, on a stretch of almost 400 kilometers. When Russia intervened in the Syrian conflict, in September last year, the Kurds from Syria, together with the Syrian army and the Russian allies, advanced and won territories north of Aleppo. Turkey’s Coup Attempt - Who Was Behind It? Over the time, the Turkish army intervened in politics, seeing itself as the protector of the country’s secularism and democracy. This is how they explained the four military coups since 1960.

# Arriving – Departing Foreigners & Citizens, Ministry of Culture and Tourism, Turkey, Available at https://www.kultur.gov.tr/EN,163468/number-of-arriving-departing-foreigners-and-citizens-ju-.html

Disgraces are Like Cherries, One Draws Another The decline of the tourism industry has also coincided with a period of growing rancor between Turkey and other world powers. A diplomatic crisis erupted in November 2015, when the military shot down a Russian fighter jet along the Syrian border. In that moment, the President of Russia, Vladimir Putin, imposed sanctions on Turkey, known as a very popular destination for Russian people, thus hampering economic ties and tourism. Terrorism and political instability has triggered a switch for the country that spreads over two continents. For a long time, Turkey represented an area of stability between Europe and the Middle East. Now it is facing a long period of high tension, caught between the fight against Kurdish militants in the East and the fight to prevent the spread of violence in Syria. Ankara sees the Kurdish militants as the main threat to the state, but the attacks also come from the terrorists of the Islamic State. Deteriorating Security Turkey was involved in a conflict on two fronts: one on the inside of the country and one across the border, in Syria. The Government of

Ankara has led for decades an internal war with the PKK, considered a terrorist group by Turkey and by the West. For two years everything seemed to be quiet, but this period of relative calm ended in July 2015 after the murder of 32 young Kurdish activists, in the city of Suruc, southeast of Turkey. The target, apparently an ISIS militant, planned to go to northern Syria to help rebuild Koban, a city devastated by the jihadist group. That was a clear sign of the extension of the Syrian conflict on Turkey. After a wave of attacks and counter attacks from the army, PKK accused the authorities of wishing ISIS’s victory, and the end of the control of the Kurds in parts of Syria and Iraq. For PKK, the targets were the government and military objectives southeast of the country. But TAK is a more radical group, its attacks are more violent, and its aims are the busiest cities: Ankara and Istanbul. The Syrian Conflict Turkey was caught in the Syrian conflict and President Recep Erdogan was one of the first leaders who requested the removal of Bashar al-Assad, the leader of Damascus. Meanwhile, Ankara has increasingly become concerned with the attempts from the Kurdish groups to take control of the northern parts of Syria,

The military has had tensions with Mr. Erdogan’s Justice and Development Party (AKP) over its brand of political Islamism. The government of Turkey has blamed Fethullah Gulen, a very powerful US-based Muslim cleric, of instigating unrest. As a response, Mr. Gulen publicly denied the accusations and condemned the coup. A curious fact is that after the coup attempt, many soldiers have affirmed that they have been told they were taking part in military exercises and did not know a coup was being in progress. Meanwhile, the government of Turkey has arrested over 6000 people, including high-ranking judges and soldiers. Challenges and Hope The economists are worried that tourism revenues will drop to a quarter this year, which will cost Turkey about eight billion dollars, and will erase more than half a point of the country’s economic growth. However, given that last year’s tourism was responsible for half of the current account earnings, the decrease in visitors will create problems for Central Bank’s objective to reduce the deficit from the alarming 4.5% of GDP recorded in 2015. The Turkish authorities have announced a plan aiming to offer emergency support to the tourism sector, which includes a grant of 255 million pounds (87 million dollars) and a feature that allows tourism companies to restructure their debts. It is not clear yet what will be the impact of these measures. DECEMBER 2016 55

PERFORMANCE IMPROVEMENT

NEUROECONOMICS UNDERSTANDING HUMAN ECONOMIC DECISIONS ANA LECHINTAN

A disciplines arise, vanish, fuse together s human knowledge develops, scientific

or split apart. Newer technologies allow researchers access to areas newer explored before, from the lowest layers of the oceans, to the greatest depths of the human mind. Why do humans often take counterintuitive economic decisions which are not in favor of optimizing utility? Why do they sometimes act irrationally, despite thinking they made choices based on objective risk evaluations? What are the links between human action and productivity? Neuroeconomics starts to provide conclusive answers to such questions by filling the gaps in conventional economic theories. Holding a warm drink has been proven to influence test subjects into perceiving strangers as friendly and trustworthy. Carrying a heavy object while making a decision will increase the perceived importance of the said decision. Customers display increased purchase behavior in malls where jasmine scent is sprayed into the air. Neuroscience is to be credited for such interesting findings, representing an interesting step forward. 56 JULY DECEMBER 2016 2016

What is this hybrid science?

How does it work and what are its benefits?

Neuroeconomics is an emerging scientific branch focused, simply put, on economic decision making. It assesses the processes which take place inside the brain and influence human behavior when making judgements, with a focus on choices that have a financial impact: from personal investments in new assets to major transactions affecting entire countries.

Neuroeconomics allows an increasingly precise measurement of thoughts and feelings. For a better understanding of its functions and the new possibilities it offers, the genealogy of neuroeconomics should be taken under the magnifying glass and further analyzed.

Furthermore, this analysis is not only conducted theoretically or through behavioral experiments, as it is the case with economics and psychology, but is based on brain imaging and the localization of brain activity. Modern neuroscientific tools like electroencephalograms – EEGs or PET– scans allow researchers to see how the brain actually changes between different cognitive processes. In other words, as Jonathan Cohen, codirector of the Princeton Neuroscience Institute at Princeton University describes it, one “can watch, in close to real time, what’s happening in someone’s brain while they’re performing some mental task”.

It is the child of a large scientific family and is exactly what its name suggests: a fusion of neuroscience and economics. Thereby, both these sciences, perhaps despite popular believe, are closely related to psychology. First of all, psychology is the study of human behavior, whereby neuroscience, in its endeavor to analyze the nervous system, offers anatomical answers on the drivers of human action. For instance, psychologically speaking, depression is an alteration of the individual’s behavior, characterized by lack of liveliness and apathy, possibly triggered by an external negative life event. From a neurological perspective, depression is signaled by an altered brain structure and decreased chemical functions and can also be triggered by substances such as medication or hormones.

Secondly, psychology and economy are “siblings separated at birth” according to professor Cohen. The family story of how these disciplines have been disconnected and how they start to reunite again is being told in the paper Neuroeconomics: How Neuroscience Can Inform Economics: Economics parted company from psychology in the early twentieth century. Economists became skeptical that basic psychological forces could be measured without inferring them from behavior […] But remarkable advances in neuroscience now make direct measurement of thoughts and feelings possible for the first time, opening the “black box” which is the building block of any economic interaction and system—the human mind.

The main conclusion of the paper is the fact that the human brain is based on both controlled and automatic processes and operates using both cognition and emotional responses; neuroeconomics studies how these mechanisms interact

to drive economic actions by measuring physical reactions in the brain. Determining the factors which influence the human decision making process – feelings, cognitive processes, preferences, automatic impulsive reactions, attitude towards risk etc. – opens up a wide spectrum of possibilities for economists. From advertising to stock exchange, game theory to labor economics, understanding and thus being able to predict behavior will increase human development and overall wellbeing, if applied within an ethical framework. We have long passed the times when we would ponder why individuals take a certain decision or act in a specific way; we now understand that each action has a reasoning behind it, even though it may not be glaringly obvious to us right from the get-go. This new field of research will help shed even further light on what goes on in our minds, whether it’s buying one product over another or going from point A to B through D, instead of directly through C.

The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups. – Henry Hazlitt

DECEMBER 2016 57

STRATEGY

SOCIAL LISTENING AND SOCIAL INTELLIGENCE MONITORING INSTRUMENTS CLAUDIA ISTRATII

C would be without social intelligence tools? an you imagine how a social seller’s life

It would seem somewhat chaotic and erratic.

For social sellers it is important to be organized in order to reach their goals and generate ROI for their organization. Social intelligence tools can help organize their work and make them more productive in their daily activities. There is a trend nowadays that every high-profile organization should take into consideration. Companies need to center their attention on customer engagement and not on selling products. When talking about trends, social listening is a new step forward. Customer engagement specialists should concentrate on listening, instead of talking. Social Selling and Social Engagement Connection In a previous article, I talked about how social selling focuses on maintaining a relationship with the right prospects, engaging and sharing appropriate insights. Social selling is defined by Microsoft as a tool of building relationships and boosting sales. It is so easy for customers today to just research online and choose, instead of visiting a store and talking to sales representatives. 58 DECEMBER 2016

Social Listening Monitoring Microsoft states that social sales representatives “don’t broadcast generic marketing messages or post overt product pitches”. So, how does one sale without marketing messages or product pitches? The answer is social listening. A smart salesperson listens before he acts. By listening, he can keep under systematic review those keywords that their prospects are looking for. Furthermore, the best practice is to discover questions using social insights. This works for Microsoft CRM Dynamics and has no additional cost, but it is only available for customers living in the USA and Canada. InsideView, a tool provided by Microsoft, monitors more than 30,000 news about your prospects working through alerts with news and social activity. Moreover, it can even work as a lead discovery tool. After listening to social insights, the next step is to see how competitors act. This might indicate their weaknesses and help to improve your offers. This process could be longer than expected, but it is important to monitor their behavior on an on-going basis. After a rigorous research your business can grow in terms of competitive intelligence.

Social listening also refers to getting personal with your prospects. This social term means communication, sending personalized messages, and not pitching services or products on social media business profiles and waiting for prospects to share and like. It means to dare to comment, to engage in conversation. Clara Shih, CEO & Founder Hearsay Social and author of The Facebook Era, declares in an interview that it is “extremely important to listen first before responding or taking other action”. In the same order, Jason Miller, Senior Content Marketing and Social Media Manager, for the LinkedIn Marketing Solutions, says that: ‘’Customers and prospects expect responses in near real time. Arriving late to the conversation means you have missed your opportunity.’’ What is Social Media Engagement? Social Media Engagement implies a nurturing relationship based on insights. This entire process must be a cooperation between sales and marketing capabilities. The content that the sales representatives share with their audience should have a touch of marketing in terms of quality and creativity. Salespeople should also cooperate with customer service teams as to

STRATEGY

discover positive acts of communication and amazing experiences. Another tip regarding customer engagement is finding new opportunities in your network by simply posting birthday wishes or congratulating someone when he celebrates getting a new job etc. This is something specific on LinkedIn and Twitter. The cConnection with Microsoft Dynamics Microsoft Dynamics CRM “enables companies to market smarter, sell effectively and productively, and care everywhere”. This intelligence tool offers a solution for Sales, Customer Service, Field Service, Marketing and Social (Microsoft Social Engagement). If the Social Seller has access to the social option, it can give insights into customers’ feelings and behaviors. The Social Seller can analyze competitors’ scores, the opinions about the products or services they sell, customers’ reactions, and it has a post view tab to track their reactions as well. Customer Engagement Dynamics centers its campaigns on this three key concepts: Listen everywhere. Analyze sentiment. Achieve more.

on insights and after monitoring the results and predict new actions. Microsoft Social Engagement can be used in collaboration with Social Sellers, Social Marketers or Social Care (Customer Service Representatives). Other Social Intelligence Tools Nowadays there are many CRM Softwares from which sales representatives can choose according to their needs. It is good to mention Top 20, classified by Capterra, for 2016. Capterra classified them taking into consideration three perspectives: popularity, affordability and user-friendly perspective.

The best CRM Softwares according to the G2 Crowed infographic are: Salesforce CRM (88 points), Nimble (73), Pipedrive (73), HubSpot CRM (72), Pipeline Deals (70), which use their own score, based on customer satisfaction and market presence. Microsoft Dynamics scored 52 points, the same as amoCRM.

In conclusion, social listening is mandatory for marketers and social sellers. The tools we use are important in boosting the performance. Each business should choose their intelligence monitoring tools wisely and use them at their maximum capacity. Measuring social selling performance is a process that requires The popularity perspective includes: motivation and perseverance, but which can Salesforce, Zoho, Act!, Microsoft Dynamics ultimately bring profit. and Hubspot in Top 5 CRM. The most affordable perspective, is comprised of Apptivo CRM, HubSpot CRM, Zoho CRM, InStream and ProsperWorks CRM. Last but not least, in terms of user-friendly options as measured by the number of reviews received by customers, there are: Teamgate, Less Annoying CRM, Close.io, Pipedrive and Base which reached a top 5 status.

The key concept used in their Marketing Campaign and Intelligent Customer Engagement implies a personalized engagement, at a right time and place, based

DECEMBER 2016 59

ASK THE EXPERTS

HOW CAN WE ENSURE OUR KPIS ARE ALIGNED TO THE STRATEGY? CRISTINA TARÂTA

A to measuring performance is that in practice, in many

common disappointment among managers in regards

cases, the key performance indicators (KPIs) monitored do not seem relevant as they are not connected to the strategy. To better understand how this problem can be addressed, we must first identify its possible causes:

1. The strategy is not translated into clear objectives – nowadays, most organizations have a strategic plan in place for short and long terms. However, these plans may lack an important characteristic, the ability to clearly transmit what needs to be done and how success looks like. To provide this clarity, strategic objectives must be concise. For example: Increase stakeholders’ satisfaction, Optimize the delivery process, Reduce recycling costs or Ensure market expansion. Solution: Developing objectives using the SMART concept in mind is a good practice. Other important information such as timeframe, accountability, KPIs to measure the objective can be mentioned in an Objective Documentation Form.

2. The KPI selection is done independently to the strategy – during the selection process, KPIs are not chosen to reflect the achievement of strategic objectives. 60 DECEMBER 2016

Solution: Consider these three questions when measuring performance: What do I want to achieve? How will I achieve it? What are the best ways to measure / reflect the progress in reaching my objectives? The third question indicates what KPIs are suited for your objectives. In most cases, there is more than one way to measure your goals. For example, given the objective ”Increase customer satisfaction”, the marketing manager may choose to measure % Customers satisfied or # Customer satisfaction index. The decision to measure one KPI or the other will take into consideration things like budget allocated for the KPI’s activation (# Customer satisfaction index will require a multiple question survey that will be more expensive than measuring the percentage of satisfied customers), time to gather data and so on. Using other KPI selection criteria can help managers shrink the list of possibilities, but remember that the main criteria is to ensure your KPI is linked to a strategic objective.

3. KPIs are not relevant, as we measure what is easy to measure – this is a very common pitfall that occurs during KPI selection workshops, choosing certain KPIs that we are familiar with, or those ones that are easier to measure. Solution: To address this issue, keep in mind that the efforts to measure a KPI should not be greater than the benefits generated, however the key criteria is still relevancy.

ASK THE EXPERTS

4. KPIs are not relevant, as we measure what is popular in the industry â&#x20AC;&#x201C; in a similar way as mentioned above, managers may be tempted to measure the same KPIs that their competitors use. Benchmarking is a helpful tool in measuring performance, but it must be used wisely. Comparing one company with another may be irrelevant even if they are in the same market, in the same industry and have a similar size, if they have different strategies. Solution: Use benchmarking data, if it is available, as a reference point for your activities and make sure the comparisons you are making are relevant.

5. KPIs are not reviewed after every strategic planning cycle â&#x20AC;&#x201C; strategies change all the time, whether it happens in a well-structured way, like

annual strategy reviews or informal, when managers responding to market changes start new projects. All the changes happening in the organization may put KPIs further and further from the business activities. Solution: Reviewing the strategy should take place in an organized way, which ensures KPIs are recalibrated to the new strategic directions and there is consistency between what we measure and what we want to achieve. Strategy review should happen once a year, or even more often for really dynamic business environments or start-up companies and realigning KPIs should be a part of this process. In time, the organization evolves and so do its KPIs, therefore some of them may be superseded (the entity is mature enough to measure a more complex KPI), for some we may choose to suspend them, as the issue they were monitored has been solved, while others may need to be refreshed (changing the calculation methodology). The value generated by using KPIs is directly influenced by how relevant the data obtained from the performance measurement process is for business planning and decision making. Therefore, addressing the above presented issues may significantly improve the current performance management framework within the organization. It might take a while to get there, as people might be reluctant to go the extra mile in order to achieve performance, but you have to remember that nothing great ever came easily.

The course is available in digital format on marketplace: marketplace.kpiinstitute.org

DECEMBER 2016 61

LIFESTYLE

CLOTHES AND PERFORMANCE THE SECRETS OF WORKPLACE ATTIRE ANA LECHINTAN

B in common: they each wear similar clothes every day. Steve Jobs arack Obama and Mark Zuckerberg have one quite bizarre thing

and Albert Einstein used to have the same habit.

What is more, even some fashion gurus like Vogue’s Grace Coddington and Chanel’s Karl Lagerfeld prefer to dress the same. And all this for very valid reasons which are backed by science, not pulled out of a hat. So let’s roll up our sleeves and find out what drives this type of behavior in famous professionals and how we can benefit from it as well. More willpower for decision making At the beginning of this year, Mark Zuckerberg published a quite humorous post on his Facebook page, depicting his wardrobe in which he only had numerous gray T-shirts that all looked the same. However, the logic behind this monotonous sight is no laughing matter at all. In fact, it is the same logic standing behind the actions of Barack Obama and even Einstein. Psychologists call the phenomenon decision fatigue and thereby refer to the mental burden of taking decisions. Let’s step into the shoes of Obama and Zuckerberg for a moment. They are both held accountable by millions of people. The professional decisions they make have a strong impact on many societal sectors. All decisions imply making choices. Each time the individual makes one, regardless if it’s related to stock investment or deciding whether to eat a delicious cake or better hold back, a specific mental process is activated. This cognitive process is based on weighing the pros and cons of each alternative – reward versus risk. This mental analysis and the impulse to control it drain willpower, which affects the individual’s ability of making further judgements. Zuckerberg proved to be well aware of this fact, stating: “I really want to clear my life to make it so that I have to make as few decisions as possible about anything except how to best serve this community”. The same goes for Obama, who said that: “You’ll see I wear only gray or blue suits. I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make.” 62 DECEMBER 2016

Clothed cognition – The influence clothes have on the wearer Mass media is splendidly clothed with advice on the most suitable workplace attire. From fashion magazines to psychological journals, a great number of publications indicate the best way professionals should dress in order to achieve maximum success. Most of these best practices rely on the effect our clothes have on others by creating favorable impressions. However, a research study conducted by the Northwestern University takes on a revolutionary perspective: the impact clothes have on the wearer. Because, as the study proves, they do influence the way people wearing them think, feel and act. As a first step, the paper cites several studies as interesting examples on how others are affected by our attire: formally dressed employees are generally perceived as being more competent and intelligent by clients; women wearing formal clothing are more likely to succeed in hiring interviews, while on the other hand, if dressed provocatively, they give the impression of being less qualified and capable. Afterwards, the scientific work offers examples on how individuals themselves are influenced by what they wear: nurse uniforms make people act more emphatically, while large hoods increase the likelihood of them administering electric shocks; women wearing a bikini in classrooms tend to obtain lower scores in math tests than they would if dressed properly. This last effect, the influence wearing a lab coat has on test subjects, is the main focus of the study. First things first, lab coats are the classical attire of scientists, thus symbolizing precise knowledge, increased attentiveness and a greater focusing ability. In one of the experiments conducted as part of this research endeavor, participants were asked to wear a lab coat and solve exercises requiring focus and attention. One group was told the coat was a doctor’s coat, while to the others it was described as a painter’s. Just like the scientists predicted, wearing a coat which was allegedly destined for

LIFESTYLE

doctors increased the group’s performance in attention related tasks.

certain dress code and unwaveringly stick to it if you feel that it fits you.

This and other similar tests drew the conclusion that clothed cognition – the influence cloths have on the wearer’s psychological processes – is a fact and occurs if two factors are present:

Besides easing the task of deciding what to wear each day, these tactics also provide an exclusive signature style, which is an important component in personal branding.

The clothes have a symbolic, cultural or traditional meaning;

Furthermore, you can complement this strategy by trying your best to adopt healthy habits in all personal life areas. As a result, routines are built and unnecessary daily decisional struggles are avoided. Certain parts of your day could be customized to happen based on a recurring schedule, without risking the installment of boredom.

They have to be physically worn by the person which is supposed to be influenced, not simply displayed in their presence. We have to take our hat off in front of these findings, which conclude that clothes can have strong psychological and behavioral effects on their wearers. Clothes can cause people to embody their symbolic meaning, by triggering certain psychological processes associated with them. In other words, clothes do make you become what you wear. How can this knowledge be the ace up our sleeve and increase our performance? It’s important to note that we don’t have to wear the same outfit every day, like Obama or Zuckerberg, in order to save up on our mental energy. This could indeed be an option for professionals who are tasked with numerous responsibilities, however the principle can be applied in many ways. For instance, your wardrobe can be simplified by limiting the color palette to fewer complementary shades which are easy to combine. This doesn’t mean the garments have to be plain – they can be carefully and meticulously chosen according to the preferences and statement the wearer wants to make; furthermore, you can always keep a

Take morning routines for example – waking up, showering, driving to work. These are all activities which can be repeated over and over without requiring too much mental effort. The same goes for daily meals, which can be planned or even cooked in advance in order to avoid deciding on the best dinner option after a hard day at work. This list of routines can go on and be adapted in accordance to each individual’s preferences and priorities. As far as the concept of clothed cognition is concerned – the results of the study suggest that the clothes we wear influence the way we think, feel and act. By extrapolating the results of the lab coat experiment, it can be stated that wearing attire typical for a certain activity can lead to greater performance in that specific field. Now, on the one hand, wearing a neat business suit gives the wearer not only confidence, but also the abilities he/she as well as society associate with the said suit – professionalism, decisiveness, control, dignity and so forth.

On the other hand, putting on sports clothing may increase the wearer’s stamina and energy. So it all boils down to personal preference and dressing for the occasion, whether it’s going to work or for a jog. In addition to this, the authors of the study even speculate that wearing the robe of a judge might increase ethical behavior or that a firefighter uniform might increase courage levels. These results seem to be quite conclusive and the best way we can exploit them is to dress not only according to the influence we want to exert on others, but in accordance to the ideal behavior we would like to have in the situation we dress up for. In other words, we should dress for the occasion in order to optimize our performance, as often as possible. In this regard, clothed cognition can also be a wolf in sheep’s clothing. For instance, if our employer allows it, we might prefer wearing casual clothes at work. While this might make us feel more at home, comfortable and relaxed, it also might weaken our focusing ability. Moreover, keeping the same dressing style might blur the line between professional and personal life, making it hard to switch off work mode. For this reason, it is important to pay attention to this aspect and try to keep small but distinctive differences between office and leisure attire. In conclusion, these are performance’s new clothes: avoiding decision fatigue and paying attention to the clothed cognition phenomenon. This does not have to happen at the drop of a hat. Rather, we should incorporate the two principles into our lives gradually and make our habits fit them like a glove over time. DECEMBER 2016 63

GET THE MOST OUT OF YOUR LANGUAGE LEARNING APPS MARIETTE WAHYUNINGSIH

W the most popular apps today, it is no ith education apps being some of

wonder that there are so many people using them to learn a new language. Although many people use apps to learn a variety of languages, very few people know how to use those language learning apps to get the most out of them. As such, this article will try to offer you the most practical methods of maximizing your language learning efforts. Know your habits and plan ahead The first step is to set objectives and targets. This helps with keeping track of your progress and knowing when it starts slowing down. One of the better ways of not forgetting about this is to write down your main weekly learning objective and targets and place it somewhere in clear line of sight, so that you are constantly reminded of them. While doing this, ensure that you fully understand your habits and daily schedule, in order to plan ahead a bit of daily spare time for this endeavor, since at the end of the day, an app is just still an app – if you do not use it regularly, it serves little purpose. Try your best to maximize your time and effort, because let’s face it – we don’t have all day to use the app, so you have to know the right times in your schedule to use such an app effectively. 64 DECEMBER 2016

Use the vocal-interface option One of the main objectives of learning a new language is being able to communicate properly. Therefore, using the vocal-interface option that many language learning apps bring is close to being mandatory. Even though the app may feature great training sessions or games to help you learn the grammatical rules of a new language, you should also actively practice said language, which is generally done via its vocal interface. A couple of tips on this would be to read the sentences shown by the app out loud or even start making your own sentences using the wide array of new words you have learnt up to that point. And if that’s not enough, if you have any friends that are interested in learning a new language, you could always ask them to be study-buddies with you. This oftentimes speeds up the process greatly, as you get to engage in active discussions in the language that you’re trying to learn. Write a review on the app Just like any businessman and entrepreneur, app developers also want to flourish and increasingly satisfy their clients. Due to this, language learning app users should give feedback on the products they use, namely the apps. Now why would you go through the hassle of giving feedback?

Well, this serves three main purposes, each being a result of the former. First off, feedback will let the developers know what they have to improve. Secondly, this allows you the user to afterwards have a better experience with the app. Thirdly, the improvements brought to the app, due to your feedback, will let other users know that the app is worth their time and maybe even money, thus increasing the app’s user reach, which in turn goes back to our first point – more users, more input for more fixes and improvements. So remember, language learning apps are there to help you, but in order to maximize the benefits they offer, you have to do a bit of research. By making clear objectives and targets, knowing your daily habits and schedule, using an app’s vocal-interface option or enlisting the help of a friend can greatly speed up the process and you will quickly realize you’re fluent in a foreign language faster than you’d ever thought it would be possible. Moreover, in addition to all of these, by submitting constructive feedback, you’ll only help the improvement cycle described above, which will make the app even better.

LIFESTYLE

THE RELATIONSHIP BETWEEN EXERCISE AND BETTER BRAIN DEVELOPMENT MARIETTE WAHYUNINGSIH ome individuals believe that brain

S games, like Sudoku or chess might lead to an increase in your IQ. Others believe it is not about games when it comes to brain performance, but rather physical exercise.

According to Dan Hurley, New York Times contributor, physical exercise helps with developing and maintaining great brain performance. As is noted in his article, several research endeavors have proven that exercising helps reduce dangerous body changes, like physical shrinkage, and even enhances our organs’ flexibility. One particular research experiment tested four groups of mice in the following manner: The first group ate large amounts of healthy foods and had lots of toys but not a running wheel The second group ate large amounts of foods and had lots of toys with a running wheel as well The third group ate standard dull kibble and had no running wheel The fourth group ate standard kibble and had a running wheel

The experiment showed that the groups with the running wheel had higher levels of brain development than those without the running wheel. When they did a cognitive test on these groups and examined their brain tissues, it turned out that it was not the type of food or toys given to them that helped with brain development, but rather whether or not they exercised. This prompted quite a lot of speculation on the link between brain development and exercise and to better understand why this happened, let’s look at things anatomically. Our brains are made up of tissue. Their function declines with underuse and age. When people hit their late 20s, they will typically lose around 1% of their hippocampus volume annually. That is a huge amount of brain power loss and is generally related to memory and specific types of learning. By doing physical exercise, the brain’s decrease and decay will slow down or in some cases, even reverse in a way. The same stands true for muscle development – we need to exercise to maintain performance and avoid decay, hence why this connection was speculated. DECEMBER 2016 65

LIFESTYLE

This research continues the findings of a 1990 experiment, in which researchers showed that humans could have new brain cells when they hit adult age and older, through a process called neurogenesis, or the creation of new brain cells. However, they didn’t quite understand how that happened. Fast forward to the current year and coming back to our mice experiment, scientists noticed a greater amount of new brain cells in those group of mice that exercised. This gave them a new lead on neurogenesis and a possible answer to what causes it. Yet creating completely new brain cells is not enough to fully develop a well-functioning brain; instead, one must sync all of his/her new brain cells to be able to function normally. One way of doing this is by learning something completely new. And by putting the very same mice through a maze challenge, scientists observed just that – having put them through a learning experience helped with syncing their brain cells. But this cognitive activity only helped set in line all those new brain cells when they had to run the maze again, thus showing that learning, as opposed to a onetime experience, is the real driver behind this process. The researchers also mentioned that engaging in already-known activities, but simply altering one or two details will not have the same effect. The learning experience has to be brand new. This furthermore sheds some light on how exercising creates new brain cells, but it should be remembered that exercising is not the only activity that helps the brain rejuvenate itself. Other cognitive exercises, like exploring new places or trying out new hobbies also triggers this reaction. All things considered, we’re still barely grasping the first details of this relationship, between exercise and brain regeneration and as such, more studies must be developed until we can get the full picture behind this link. Nonetheless, we now know for a fact that exercising maintains a healthy brain, by reversing the adverse effects of aging. It also triggers the creation of new brain cells, needed to further develop the brain. So at the end of the day, maybe taking that 20-minute run that we’ve always said we were going to do, a few times a week, might just be one of the best things we do with our time. 66 DECEMBER 2016

GOING UP AND UP PERSONAL DEVELOPMENT & CLIMBING VALENTINA MATEI

A climbers, Wolfgang Güllich, in climbing you are always faced with new

ccording to one of the best sport

Sports climbing has gone from something done by only a select few, to an activity practiced by tens of thousands persons throughout the world. In the United Kingdom, The British Mountaineering Council – BMC, estimates there are about 5 million visits to climbing walls each year.

Nowadays, performance is at the heart of every person and the most important aspect of sports climbing is constantly attempting to overcome its own limits, which in turn translates into performance. As an activity with a strong social and interpersonal focus, it contributes to the development of skills such as: observation, fast analysis, fair assessment, adaptation, planning, concentration, dynamism, determination and self-confidence.

There are numerous types of sports climbing: bouldering, rock climbing, mountaineering, ice climbing, tree climbing or even indoor climbing, so don’t worry about not knowing where to start from – there’s plenty of options out or in there for you and lots of passionate people that can guide you along the way.

problems in which you must perform using intuitive movements, and then later analyze them to figure out why they work, and then learn from them.

So don’t dally any longer and head up on that path to personal development as soon as your schedule allows it!

SOFTWARE SOLUTIONS WE HELP YOU BRING YOUR PERFORMANCE MANAGEMENT SYSTEM IMPLEMENTATION TO LIFE Sustainable technology solutions to support business processes and ensure agility in working with data in todayâ&#x20AC;&#x2122;s business environment.

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Our specialized team of analysts support customers by identifying requirements and in matching these needs with an appropriate Performance Management software solution.

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In case support is needed in monitoring existing implementations, we can support through providing a review of the project progress and by auditing the preliminary outputs

Given our knowledge of the field, we support organizations in selecting and deploying the right software solutions for their context.

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Pre-populated Excel Templates To access the pre-populated comprehensive collection of Toolkits, visit: http://store.kpiinstitute.org/templates.html DECEMBER 2016

HARDWARE REVIEW

HARDWARE

D-Link AC3200 ULTRA Wireless Router

Tobii Dynavox – EyeMobile Mini

The speed with which one can transfer files is essential both at the workplace, and at home. Sometimes, the workflow depends on the internet network speed and using a high-performing router is the simplest answer one can find in such a situation.

An important part of human life is the ability to communicate with one another and unfortunately, not everyone has that possibility. But here is where Tobii Dynavox, the market’s leading provider for augmentative & communication technology, comes into play, assisting those within society that suffer from communication disabilities, caused by cerebral palsy, ALS, spinal cord, injury, aphasia or autism. It aids those with that have speech impediments, giving them the ability to communicate clearly.

Fast and Efficient

The D-Link AC3200 ULTRA offers varying degrees of data transfer speeds, beginning at AC1200 and ending with AC3200. It also includes Smart Connect, which simplifies the connection process. The Smart Connect feature enables routers to automatically link devices to whichever channel offers the best speed and connectivity, without first choosing between connecting to the 5 or 2.4 GHz channel. What does this all mean? It means that it produces faster connections with fewer complications. The main advantage of the ULTRA router is its capacity to sustain faster speed at a distance and through barriers. This means that using this router can increase the network speed of a distant workstation from a measly 3 MB/s to an astounding 16 MB/s. The ULTRA can be used both at the workplace, and at home, and the potential user of this router must take into consideration the following main features: Advanced AC SmartBeam: which tracks the already connected devices for enhanced Wi-Fi speed and range; Tri-Band WiFi: comprised of two 5GHz and one 2.4GHz bands, which enable the maximum possible speed for each device; Smarter Bandwidth: which distributes traffic using band steering technology for optimal Wi-Fi performance; 1GHz Dual Core Processor: which creates faster network speed for a more powerful router. All these extraordinary features prove that the new D-Link AC3200 ULTRA Wi-Fi Rooter is a three in one offer, encompassing the power of three routers in one. The use of this router can lead to a greater internet network speed, which automatically improves your workflow. 68 DECEMBER 2016

Modern Technology for those with disabilities

The company boats a swath of devices, out of which the most interesting one seems to be the EyeMobile Mini. This hightech device allows users to browse the Internet, watch movies, listen to music, read e-books, browse social media sites and play games completely hands-free. It has an innovative user interface that gives one the option to click, swipe or touch any part of the screen now by simply looking at it, as the device is built to recognize eye movement. One can also make new tabs in a browser, in the same manner. Its special design lets anyone use it on the go, as it is lightweight and compact. EyeMobile Mini can easily be placed in a car, on a bicycle or even a wheelchair, by using a cellphone holder. Furthermore, the device is powered solely by the Windows tablet battery, so you can recharge while going about your business. Now, as with all product reviews, we have to mention downsides and when it comes to the EyeMobile Mini, the aforementioned part about recharging is its main flaw, as you can only recharge it by using a Windows tablet that has Win 8 or 10 installed on it. This means that products from Apple and Android are incompatible with the EyeMobile Mini, making it so that tablet users have a very limited range of choices available to them. Nonetheless, this product is one of the few to answer this particular need of the market and for that, Tobii Dynavox’s endeavor is commendable and we can only wait and see how their product fares from now on. Tobii Dynavox is a part of the Tobii Group, which also includes Mayer-Johnson, and was founded in 2001, having grown its presence on the market ever since, by designing cutting edge technological solutions for those with special needs and disabilities.

HARDWARE

Airtame

HP Spectre x360

Enterprises and business customers need to have a central device management system. For any meeting to go smoothly, they need to quickly and reliably transfer a presentation from any device onto the big screen.

HP’s Spectre x360 gets a major upgrade that makes it not only the best convertible laptop, but possibly the best ultrabook laptop. That’s not to say the original Spectre wasn’t a great convertible laptop (convertible, because its screen folds all the way back to simulate a tablet experience), but with the reimagined Spectre x360, HP seems to have gone about correcting everything that could have deduced from its ‘awesomeness’.

Connect in the Blink of an Eye

Airtame is a small wireless HDMI adapter that plugs into the HDMI port of any screen or projector. It is a very proficient and practical adapter, because unlike any other wireless HDMI adapters, its user does not have to plug anything into his computer or smartphone. It is also extremely easy to use; after downloading the application, the user is free to stream his content to the screen from any major computer platform, tablet, or smartphone. The main thought behind Airtame was that of increasing productivity and collaboration. With this in mind, Airtame was built in such a way as to be appropriate for any type of enterprise, offering tailored features for end-users, such as: WPA2 Enterprise networks, Ethernet connection, Access Point Mode and connectivity with IP. An Airtame user can mirror his entire computer desktop, or if he wants to move around freely while presenting, he can connect to his mobile device. This way, he can engage his audience, while sharing his presentation, PDF, Keynote or other work documents synced from Google Drive and Dropbox. What is more, KPI (Key Performance Indicator) dashboards are simple to set up with Airtame. Those who work with this type of dashboards can display anything that is available from a public URL. Although Airtame doesn’t have a dashboard service, it can nonetheless, work with any third-party service that offers a publicly accessible URL. How does it work? The user can simply select a URL and copy/paste into Airtame’s device settings. Airtame is great in multi-device networks, offering several connectivity options, which work without any glitches. They can all be centrally managed, and Airtame is working on a new cloud service for remote management. Airtame is also very useful in distributing informational displays or KPI dashboards throughout the whole company, while also being able to stream in any office, at any point.

The New and Enhanced Version

One of the most notable updates of the Spectre x360 is the size. HP has reduced the width to 12 inches by nearly eliminating the screen’s side bezel. What is more, it weighs only 2 pounds, 13.2 ounces and it is quite thin, at just about 13.5 mm at its back end. Now the Spectre x360 is so small that it can be place on the same level with the Dell XPS 13. In regards to its ports, it has two Thunderbolt 3 ports that take over for HDMI and DisplayPort duties. They also double as USB-C ports with 10Gbps transfer rates. On the opposite side, you get a single USB Type A 5Gbps port. It also uses USB-C charging, as HP dumps the barrel charger for a small 45-watt USB-C charger. Although the USB-C is a great addition, one small downsize to this new version of the Spectre x360 is the fact that it does not have as many ports as the previous one, and that one might face the risk of ‘running out’ of ports in certain situations. Nevertheless, HP’s Spectre x360 can be considered as one of the best ultrabook laptops out there with its reduced weight and size, being also the newer, faster and better version of the original Spectre x360. It’s performance and battery life are excellent and its form places it in direct competition with Dell’s XPS 13. As we can see, despite its few downsizes, its enhancements still place it very high in the ranking, making it the convertible that must be currently beat. DECEMBER 2016 69

SOFTWARE REVIEW

SOFTWARE

RescueTime

Microsoft Teams

Time management is a sensitive topic for any one of us, no matter if it’s the time we spend at home or at the workplace. It is very difficult to manage your time in such a way as to achieve your most productive self, and to do that you must first understand how you spend your time.

While project management applications manage the projects, the workflow and the teams of a company, helping everyone stay up to date with the progress of their tasks, the company still needs an application that enables better communication between its members. There are many such applications, but Microsoft’s newest addition brings with it a clean interface, a range of new features and an interesting design, proving to be a mature software which can be successfully used from day one. This new chat-based workspace is known as Microsoft Teams, and it is a very well developed collaboration tool that enables communication within Office 365 and other Microsoft tools.

The Software that Helps You Stay Productive

A very simple and efficient way of obtaining that knowledge is by using RescueTime, a very popular productivity application. RescueTime shows you how and where you spend the minutes and hours of the day while you are on your computer. The application is comprised of two components that work together in keeping track of your activities. The first one is a small downloadable application that you install locally on your computer, and the second one is a website where you can view the information that the application collects. The next step after the installation is customization. By customizing it, the software starts following your computer’s activity, logging all the minutes you spend on different websites, or in various apps. It also classifies all the apps and websites from Very Distracting to Very Productive, with Neutral in the middle. RescueTime then analyzes all your computer time and creates graphics to make you better understand how much time you spend on productive versus distracting tasks. RescueTime is a generous application, as it gives you numerous ways of understanding your productivity, from bar graphs and pie charts, to line items of applications you used and sites you visited. It also provides an analysis of when you are most productive during the day, thus encouraging you to better manage your time by creating a personalized schedule based on your highest and lowest productivity points. RescueTime is a well-developed productivity application that helps you become aware of the way in which you manage your time, and in doing so, it automatically helps you increase your productivity. 70 DECEMBER 2016

Easier Team Communication

Microsoft Teams has a clean and simple interface that is easy to use. As its name suggests, the product is divided into teams and each team can have multiple channels, based on projects or topics, where users can share documents. Apart from the different smaller spaces dedicated to each group, there is also a larger, shared conversation space allotted to everyone. What is more, its notification tab can keep track of mentions and replies, and the sidebar is equipped with a number of useful tabs, such as a place for meetings, for other teams and for important files. Unfortunately, thirdparty functionality is not as well developed, but the platform nonetheless supports Asana, Hootsuite, ZenDesk and a couple of others. Who can use Microsoft Teams? The software is available for Office 365 customers with a Business Essentials, Premium or Enterprise E1, E3 and E5 plan. Taking into consideration the fact that many companies work with freelancers, Microsoft has hinted that they might add a feature dedicated to guest users at one point. MT is fully compatible with Windows, macOS, Android, iOS and Microsoft assures users of the software’s authenticity and protection capacity, stating that all data is encrypted, using the same compliance capabilities as Microsoft Cloud. Overall, MT is a solid internal communication platform that strengthens organizations’ internal collaboration systems.

SOFTWARE

KAYAK

Travelling & booking at your fingertips Whenever we feel the urge to travel, we’re struck by the immediate reality of planning: where do we want to go, what will be able to see or do there, how can we get there, what type of transportation or housing is there and so forth. These are all common, frequently asked questions for a very good reason, as most booking sites do not offer us information on all of the above-mentioned points. And that is where KAYAK comes in. The app, KAYAK, is the namesake of the site where it all started and which is unlike your regular booking sites. It sifts through numerous travelling sites, compiling for you a list of the cheapest flights to your destination of choice, what hotels are the best bang for your buck, if there are rental cars or any affordable transportation that you can use

there and what’s the most efficient way to communicate during your travelling experience. The app also features a free real-time flight status alerts service, to quickly notify you of any incoming or outgoing flights. The app’s interface is crisply streamlined, displaying all the necessary information as clearly and user-friendly as possible. Available in over 40 international sites and 20 languages, with over 1.5 billion queries processed each year & 40+ million downloads to date, KAYAK has quickly become a force to be reckoned with in the industry. For those curious to find out more about the app and/or their services in general, KAYAK’s site features a very detailed FAQ page, with flight, hotel, car, trip and account-related questions each having their own dedicated category and set of queries.

TimeCamp

Tracking time and profit As a business or even as a freelancer, keeping note of several factors, such as time, workload, billing and profits, are paramount to ensuring your professional success in the long run and what better way to do it than with TimeCamp? TimeCamp, a project management and time tracking software that bears its designers namesake, is one of the most professional tools out there to help you with tracking everything there is when it comes to one’s business management. Do you wish to not lose time on billable hours that may not eventually be billed? Do you wish to know how much development time and costs you have incurred until this point? How about wanting to accurately and precisely billing your clients or measuring your project’s profitability? What about tracking actual project hours, to detect overrun and under run and analyze your estimated accuracy and efficiency? Or maybe you’d like to forecast time and costs for future projects? If all of these sound appealing to you, TimeCamp can offer all of these services and more! Quick online invoicing, features for billable time, one-click visual tracking of projects, reports and entire portfolios,

features that allow employees to self-monitor their productivity, attendance and time off tracking, as well as compatibility with Windows, Mac, Ubuntu, iPhone, Android, Chrome, Insightly, Asana, Podio, Xero, Wunderlist, Freshdesk, Github, Evernote, Dropbox, Google Sheets and many other. If you’re not hooked by now, wait until you see their pricing scheme. They have a free version, which can accommodate one user and offers tracking time, a mobile & desktop app, automatic time tracking, tracking computer usage and unlimited project & task tracking. Then there is the Basic version, which charges $6/user/month, and has exporting capabilities, addons and integrations, billable time & budgeting, on top of all of the aforementioned options. Finally, their Pro version, coming in at $9/user/month has all of that and invoicing, priority support, scheduled reports, timesheet approvals and project costs & billing rates. So if you are not using TimeCamp by now, you should definitely look it up, as it will provide invaluable aid in your quest for profitability and efficiency, whether you are a freelancer, have a start-up, a medium-sized enterprise or a large company. DECEMBER 2016

RECOMMENDED

RECOMMENDATIONS

Must-haves for your 2017 reading list 1

1. Performance Management: Changing Behavior that Drives Organizational Effectiveness

2. Rewarding Performance Globally: Reconciling the Global-Local Dilemma

This book is a definitive text for explaining the science of behavior and presenting proven research and business and industry examples for applying its principles at work, including: how to transform and/or create a positive culture, what leaders need to do more of, how to spark innovation, and how to manage multigenerational workforces.

The authors explore principles drawn from extensive research in human resources and cross-cultural management. They focus on the critical process of defining, measuring, and rewarding performance in multinational organizations, emphasizing the importance of managing a workforce effectively in today’s highly competitive, globalized environment.

3. Mental Toughness Training Program: The Guide to your Peak Performance, State Control, and Self-Discipline

4. Performance Is Everything: The Why, What, and How of Designing Compensation Plans

By Aubrey C. Daniels, John S. Baileyt

By David Hamann

This small book is a beginner’s guide to becoming Mentally Strong. It was written for those who seek to change themselves, who want to use mental toughness to achieve Peak Performance, to state control through mental toughness, to prepare their minds to all kinds of stressful situations, as well as for those who want to learn how to act in any type of difficult situation.

5. The Skilled Facilitator: A Comprehensive Resource for Consultants, Facilitators, Coaches, and Trainers By Roger M. Schwarz

This is a fundamental resource for consultants, facilitators, coaches, trainers, and anyone who helps groups realize their creative and problem-solving potential. In this new edition Roger M. Schwarz shows how to use the Skilled Facilitator approach to: boost improvement processes such as Six Sigma and Lean, create a psychologically safe learning environment for training, and help coaches work with teams and individuals in real-time. 72 DECEMBER 2016

By Fons Trompenaars, Robert J. Greene

By August J. Aquila, Coral L. Rice

The crucial issues of compensation and performance are inextricably linked. In this important resource, experts August Aquila and Coral Rice offer a unique perspective on how you can align your compensation and performance management plans in order to boost performance, maximize profits, and keep both your staff and clients happy. This companion offers readers the “Why, What, and How” for compensation plans filtered through the lens of performance management.

6. Leadership Hack: Leading the Millennial Tribe By Bruce Langevin

Bruce Langevin will have you questioning many of your basic leadership assumptions in this thought-provoking look at today’s workforce. The book is not just a suggested or recommended read, it’s compulsory for anyone who is serious about wanting to successfully engage and motivate Millennials to achieve their business objectives. Through this read Bruce’s remarkably insightful solutions will help you discover how to adapt and hone your leadership skills.

RECOMMENDATIONS

MONEYBALL SPORTS, SABERMETRICS AND THE LOVE OF THE GAME

M in

oneyball is a sports movie that delves the cold and calculative science behind sports, in this case - sabermetrics. Sabermetrics is the specialized analysis of baseball through objective, empirical evidence, specifically baseball statistics that measure in-game activity. Thus, it is all about objective knowledge related to baseball. It points out facts such as which player has the highest on-base percentages rather than subjective arguments such as who is the best player in the game. The movie is based upon the 2003 bestselling book by Michael Lewis, “Moneyball: The Art of Winning an Unfair Game”, and while baseball continues to remain the backdrop, the movie touches upon how difficult it is for organizations to change, to flatten hierarchies through the availability of information and to achieve the efficiency demanded by capitalism. Moneyball tells the story of the 2002 season of the Oakland Athletics, a team that rose to notoriety because of its low payroll and unorthodox player selection. Billy Beane, played by Brad Pitt, a former player turned general manager, grows tired with the ancient, inefficient ways of the game he has committed his entire life to. When he stumbles across Peter Brand, played by Jonah Hill, a fresh out of Yale economist/ statistician, he realizes that he may have

found a more cost effective way to get the right players in the team. Using statistics, he finds value in players that no one else seems to do. People are overlooked for a variety of biased reasons and perceived flaws, such as age, appearance, personality. Mathematics cuts straight through that and Billy is able to create a championship team that they can afford, because everyone else in baseball undervalues them. After initial

It’s unbelievable how much you don’t know about the game you’ve been playing all your life - Mickey Mantle setbacks, he manages to claim, together with his newly found and undervalued team, 20 games in a row. This is a heavily layered movie, constructed purposely to be entertaining on many levels.

It can be watched purely as an entertaining account of modern baseball history - how player statistics became one of the most important factors determining financial success in modern baseball. For more sentimental audience it tracks the journey of a man, forced to embrace change and disappointment as he walked aimlessly through life, having an unremarkable career first as a failing professional player, then small-time scout, and washed-out general manager; only to finally wake up and find himself becoming one of the greatest living innovator of the modern game. Finally, for those who know or care little about the game of baseball, this is a tale of an industry under irreversible change; a documentary of the conflict between innovators who brave all kinds of perils to map out the new ways, and the old stalwarts who go all out to protect their crumbling turf. Moneyball is not the action-packed sports outing one may be expecting. Director Bennett Miller spends very little time focusing on the game of baseball, or even the personalities of the players. Moneyball is a movie about management, but it is also the proof of the fact that the Major League Baseball is not just a game of money, but a game of numbers versus a game of people.

DECEMBER 2016 73

THE KPI DICTIONARY · REFERENCE COLLECTION OF BOOKS

Find the most suitable KPIs to measure your business success! Examples of documented Key Performance Indicator Definitions for an in depth view on Performance Measurement Newly released publications: 14 Functional Area KPI Dictionaries 18 Industry KPI Dictionaries

7 years of business research invested

30,000+ resources studied

20+ subject matter experts involved

Content. Methodology. Visual Summary. Introduction. Global Perspectives. Practitioners’. Perspectives. Academics’ Perspectives. Consultants’ Perspectives. Map Snapshot. Country Profiles. Country Legislations. Trends in Search. 2015 Statistics. Media Exposure. Educational Programs. Main Events in the field. Career. Bestselling Books. Latest Published Books. Journal Articles. Portals. Communities. Corporate Performance Management Software. Business Intelligence Software. Employee Performance Management Software. | Interviews. Australia. China. Italy. Indonesia. New Zealand. Pakistan. Saudi Arabia. Singapore. Turkey. United Kingdom. | Keywords analyzed. Analytics. Balanced Scorecard. BI. Business Intelligence. Business Performance Management. Corporate Performance Management. Dashboard. Employee Evaluation. Employee Performance. Employee Performance Management. Enterprise Performance Management. Individual Performance Management. Individual Performance Plan. Key Performance Indicators. KPI. Metrics. Operational Performance Management. Performance Appraisal. Performance Criteria. Performance Evaluation. Performance Management. Performance Management Plan. Performance Management System. Performance Measures. Performance Review. Scorecard. Strategic Performance Management. Strategy Execution. Strategy Implementation. Strategy Management. | Educational Degree Institutions. Aston University. University College Dublin. Erasmus University Rotterdam. HEC Paris. Heriot-Watt University Edinburgh Business School. University of Leicester. London School of Economics and Political Science. MIP Politecnico di Milano. University of Liege HEC Management School. École Supérieure de Commerce Paris Europe. Universita degli Studi di Palermo. Franklin University. New York University Stern School of Business. University of Pennsylvania Wharton Business School. Regis University. Weber State University. Bellevue University. Georgetown University. University of Sydney. The University of Adelaide. Monash University. King Abdulaiz University, Faculty of Economics and Administration. Beirut Arab University, Faculty of Business Administration. United Arab Emirates University. Zayed University College of Business. Peking University Guanghua School of Management. The Chinese University of Hong Kong. University of Delhi, Faculty of Management Studies. Africa University, Faculty of Business Administration. University of Cape Town, Graduate School of Business. North-West University, Faculty of Economic and Management Sciences. | Performance Management Events. 2015. Bahrain: Manama; Egypt: Cairo; Hungary: Budapest; Hong Kong; India: Mumbai; New Zealand: Auckland; Oman: Muscat; Saudi Arabia: Jeddah; Scotland: Edinburgh; Singapore: Singapore; Spain: Barcelona; United Arab Emirates: Dubai; United Kingdom: London; United States: Florida, New York, San Diego, San Francisco, Texas. | Career. Jobs. Salaries. | Book Categories. Business Performance Management. Corporate Performance Management. Employee Performance Management. Enterprise Performance Management. Individual Performance Management. Operational Performance Management. Performance Management. Personal Performance. Strategic Management. Strategy Execution. | Peer Reviewed Journals. Top 18. | Portals. Top 10 Most Visited. | Communities Analyzed. Balanced Scorecard. Business Intelligence. Corporate Performance Management. Employee Performance Management. Key Performance Indicators. | Software. Gartner: Magic Quadrant for Business Intelligence and Software Solutions. | 232 countries reviewed. 87 with performance management legislation in place. Abkhazia. Afghanistan. Åland Islands. Albania. Algeria. American Samoa. Angola. Anguilla. Antarctica. Antigua and Barbuda. Argentina. Armenia. Aruba. Australia. Austria. Azerbaijan. Bahamas. Bahrain. Bangladesh. Barbados. Belarus. Belgium. Belize. Benin. Bermuda. Bhutan. Bolivia. Bosnia and Herzegovina. Botswana. Brazil. British Virgin Islands. Brunei. Bulgaria. Burkina Faso. Burma. Burundi. Cambodia. Cameroon. Canada. Cape Verde. Caribbean Netherlands. Cayman Islands. Central African Republic. Chad. Chile. China. Christmas Islands. Cocos (Keeling) Islands. Colombia. Comoros. Congo, Democratic Republic of the. Cook Islands. Costa Rica. Cote d’Ivoire. Croatia. Cuba. Curacao. Cyprus. Czech Republic. Denmark. Djibouti. Dominica. Dominican Republic. Ecuador. Egypt. El Salvador. Eritrea. Equatorial Guinea. Estonia. Ethiopia. Falkland Islands (Islas Malvinas). Faroe Islands. Fiji. Finland. France. French Guiana. Gabon. Gambia, The. Georgia. Germany. Ghana. Greece. Grenada. Guadeloupe. Guam. Guernsey. Guyana. Honduras. Hong Kong. Hungary. Iceland. India. Indonesia. Iran. Iraq. Ireland. Isle of Man. Israel. Italy. Jamaica. Japan. Jersey and Saint Pierre and Miquelon. Jordan. Kazakhstan. Kenya. Kiribati. Korea, North. Korea, South. Kosovo. Kuwait. Kyrgyzstan. Laos. Latvia. Lebanon. Lesotho. Liberia. Libya. Liechtenstein. Lithuania. Luxembourg. Macau. Macedonia. Madagascar. Malawi. Malaysia. Maldives. Mali. Malta. Marshall Islands. Mauritania. Mauritius. Mayotte. Mexico. Micronesia, Federated States of. Moldova. Monaco. Mongolia. Montserrat. Montenegro. Morocco. Mozambique. Namibia. Nauru. Nepal. Netherlands. New Caledonia. New Zealand. Nicaragua. Niger. Nigeria. Niue. Norfolk Islands. Norway. Oman, Sultanate of. Pakistan. Palau. Palestine. Panama. Papua New Guinea. Paraguay. Peru. Philippines. Pitcairn Islands. Poland. Portugal. Puerto Rico. Qatar. Réunion. Romania. Russia. Rwanda. Saint Barthelemy. Saint Helena, Ascension and Tristan da Cunha. Saint Kitts and Nevis. Saint Lucia. Saint Vincent and the Grenadines. Samoa. Sao Tome and Principe. Saudi Arabia. Senegal. Serbia. Seychelles. Sierra Leone. Singapore. Sint Maarten. San Marino. Slovakia. Slovenia. Solomon Islands. Somalia. South Africa. South Ossetia. Spain. Sri Lanka. Sudan (South). Suriname. Svalbard and Jan Mayen Islands. Swaziland. Sweden. Switzerland. Syria. Taiwan. Tajikistan. Tanzania. Thailand. Timor-Leste. Togo. Tokelau. Tonga. Transnistria. Trinidad and Tobago. Tunisia. Turkey. Turkmenistan. Turks and Caicos Islands. Tuvalu. Uganda. Ukraine. United Arab Emirates. United Kingdom. United States. Uruguay. Vatican City. Uzbekistan. Vanuatu. Vietnam. Virgin Islands. Wallis and Futuna. West Bank. Western Sahara. Zambia. Zimbabwe.

74 FEBRUARY 2016

PERFORMANCE MANAGEMENT IN 2015

More Publications INTERVIEWS

LEGISLATION

“New IT developments and software tools allow countries around the world to break conventional boundaries.”

EDUCATION

PERFORMANCE MANAGEMENT IN 2015

EVENTS

State of the discipline annual magazine

“Collaborative efforts will grow continuously and further impact Performance Management.”

Perspectives 13 Interviews. 10 Countries. Practitioners. Academics. Consulants

Around the World Performance - related legislation in 232 countries

Keyword Trends Statistics for the most popular performance-related keywords in Google search

Keep up to date with industry trends and leaders!

Education Degrees. Subjects. Main Events.

Resources Best-selling books. Latest published books. Academic articles. Portals. Communities

Software Gartner’s Magic Quadrant for 2016.

For more details visit our store: marketplace.kpiinstitute.org

Performance Magazine, Printed Edition. Sixth issue, December, 2016. Content: News. Avoiding the “Never say never” mentality. A new type of business: analyzing pros’ injuries for sports fans and fantasy players. Investment plan for 2017 – the US retail market. Marketing done slick: the Alex Boone method. Longines launches ski-boot data chip at Solden. The Smartwatch report: Forecasts, Trends and Market Response. How to increase your Amazon Affiliate revenue. Performance Management in the 21st century – understanding its core elements. Cover story: How to use the Balanced Scorecaard in a start-up company. Expert Interviews: Sattar Bawany, Adjunct Professor/CEO and C-Suite Master Executive Coach at the Curtin Graduate School of Business/Centre for Executive Education – CEE Global, Singapore. Michael J. Sutton, Chief Gamification Officer/Chief Knowledge Officer at Funification LLC, USA. Dean Spitzer, President of Dean R. Spitzer & Associates, USA. Monica R. Allen, Director of Strategic Planning and Evaluation at Mecklenburg County Government, USA. Mahmoud Mansi, Founder of HR Revolution Middle East, Egypt. Lim Kah Cheng, Chief Corporate Services at Human Resources Development Fund, Malaysia. Portrait. Gary Cokins, Founder of Analytics-Based Performance Mangement LLC, North Carolina, USA. A lifetime of continuous improvement, change and development. Around the World: The Canadian Transportation Agency – Increasing performance throughout the years. Guernsey’s Opportunities in FinTech. Cluj-Napoca – Best Practice in Strategy Building. Barbados – bridging the gap between man and government. Individual Performance. Helpful tips on how to perform an Employee Performance Review. Interviews, questions & emotional intelligence levels. Three Ways to Foster Meaningful Change. Organizational Performance. Happiness and Organizational Performance. Tesla plans on reviving an out of style business practice. Operational Performance. Hartsfield-Jackson Atlanta International Airport – Performance on the World’s Busiest Airport. How United Airlines have improved their operational performance. Turkey Tourism – the Collapse of a Famous Titan?. Performance Improvement. Neuroeconomics – understanding human economic decisions. Strategy and Performance Management. Social Listening and Social Intelligence Monitoring Instruments. Ask the Experts. How can we ensure our KPIs are aligned to the strategy?. Lifestyle. Clothes and performance: the secrets of workplace attire. Get the most out of your Language Learning Apps. The relationship between Exercise and better Brain Development. Hardware Review. D-Link AC3200 ULTRA Wireless Router – Fast and Efficient. Tobii Dynavox – EyeMobile Mini: Modern Technology for those with disabilities. Airtame – Connect in the blink of an eye. HP Spectre x360 – The New and Enhanced Version. Software Review. RescueTime – The Software that Helps You Stay Productive. Microsoft Teams: Easier Team Communication. KAYAK – Travelling & booking at your fingertips. TimeCamp – Tracking time and profit. Recommended. Titles to include in your 2016 reading list. Performance Management: Changing Behaviour that Drives Organizational Effectiveness, by Aubrey C. Daniels, John S. Baileyt. Rewarding Performance Globally: Reconciling the Global-Local Dilemma, by Fons Trompenaars, Robert J. Greene. Mental Toughness Training Program: The Guide to your Peak Performance, State Control, and Self-Discipline, by David Hamann. Performance Is Everything: The Way, What and How of Designing Compensation Plans, by August. Aquila, Coral L. Rice. The Skilled Facilitator: A Comprehensive Resource for Consultants, Facilitators, Coaches, and Trainers, by Roger M. Schwarz. Leadership Hack: Leading the Millennial Tribe, by Bruce Langevin. Movie. Moneyball – Sports, Sabermetrics and the Love of the Game. Keywords: Key Performance Indicators (KPIs). Balanced Scorecard. Performance Management. Performance Measurement. Performance Improvement. Strategy and Business Planning. Employee Performance Management. Personal Performance Management. Data Analysis. Data Visualization. Benchmarking. Customer Service Performance. Innovation Performance. Balanced Scorecard Management System Performance. Measurement. Evolution. Accuracy. Big Data. Management. Business Intelligence. Ethics. Education. Solution. Problem-solving. Decision-making. Project Management. Project Planning. KPI Selection. KPI Documentation. KPI Evaluation. KPI Life-cycle. Data gathering. Data presentation. Expert Interviews. Academics. Consultants. Practitioners. Events. Research. Mission. Vision. Strategy. Best know-how. Data and Facts. Common Sense. Data Accuracy. Performance Magazine Focus Categories: Editorials. Articles. News. Interviews. Multimedia. Strategy. Balanced Scorecard. KPI. Organizational Performance. Operational Performance. Individual Performance. Personal Performance. Around the World. The KPI Institute’s Professional Certification Programs. Certified Strategy and Business Planning Professional. Certified KPI Professional and Practitioner. Certified Performance Improvement Professional. Certified Employee Performance Management Professional. Certified Personal Performance Professional. Certified Data Visualization Professional. Certified Data Analysis Professional. Certified Benchmarking Professional. Certified Supplier Performance Professional. Certified Customer Service Performance Professional. Certified Innovation