Performance Magazine 14th Edition

Issue No. 14 March/2019

COVER STORY FIVE LEVELS OF ORGANIZATIONAL MATURITY: PERFORMANCE MANAGEMENT PERSPECTIVE

ARTICLES EXCELLENCE IN PERFORMANCE REPORTING: THE NEW YORK MAYOR’S MANAGEMENT REPORT TOP 8 CHARACTERISTICS OF HIGHLY EFFECTIVE MANAGERS WINNING THE GOLIATH VS DAVID BATTLE WITH BIG BRANDS GEN Z: HOW THIS NEW GENERATION IS CHANGING THE WORKPLACE WHY LIVE CHAT IS THE BEST CUSTOMER SERVICE RIGHT NOW KPIS $ WORKING CAPITAL PER EMPLOYEE % TRAVEL TIME FROM CHARGEABLE TIME # HOURS LOST DUE TO ABSENTEEISM LIFESTYLE MOST COMMON SLEEPING HABITS THAT ARE RUINING YOUR SLEEP

PORTRAIT

AISHA ZAYED AL ALI Lead by results, Inspire by character

Imprint: Independently published An appropriate citation for this magazine is: The KPI Institute, Performance Magazine, Printed Edition, no. 14, March, 2019, 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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INDEMNITY STATEMENT

Š 2019 The KPI Institute Ltd. All Rights Reserved.

ID Number: TKI0192111 ISBN-13: ISBN-10:

CONTENTS

EDITOR’S NOTE

4

Strategy

49

NEWS

7

Effective ways to grow your startup business in 2019

49

13

How talent management brings discipline and data to Human Resources

52

Winning the Goliath vs. David battle with big brands

55

COVER STORY Five Levels of organizational maturity: Performance management perspective

INTERVIEWS

18

Gavin Lawrie

20

Aisha Zayed Al Ali - Lead by results, inspire by character

ARTICLES

MARCH 2019

17

Glen Rabie

PORTRAIT

3

13

LIFESTYLE Most common habits that are ruining your sleep

KPIs

57 57

59

26

Accounting

59

26

% Billing Accuracy

59

33

% Budget Variance

60

$ Working Capital per employee

61

Business Consulting

62

Performance Reporting

33

Excellence in performance reporting: the New York mayor's Management Report

33

$ Cost of services delivered

62

Employee Management

36

% Travel time from chargeable time

63

5 priceless Bbenefits of working in a shared space

36

$ Hourly fee

64

Human Resources

65

# Hours lost due to absenteeism

65

% Internal promotion rate

66

% Performance appraisals completed on time

67

Gen Z: how this new generation is changing the workplace

39

How to encourage effective teamwork within your design department

41

Innovation

44

4 analytics predictions to look for in 2019

44

What does the future of work look like?

46

RECOMMENDED RESOURCES Books: Must-haves for your 2019 reading list

68 68

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

EDITORIAL TEAM Marcela Presecan Borbala Pentek Iris Matubis

CONTRIBUTORS James Cummings Deeana Radley Anna Kucirkova Robin Singh Jenna Hilton Glen Rabie Laura Gayle Peter Davidson

DESIGN

With these thoughts in mind, we proudly announce the launch of our fourteenth issue of PERFORMANCE Magazine. 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.

This edition provides details on subjects such as Strategy, Innovation, Performance Reporting, Employee Management, Business Intelligence and KPIs, among others.

Flip through pages of extensive research studies, interviews, concept presentations, insights from practice, alongside KPI in-practice examples and book recommendations, all related to performance management.

In our 14th issue of PERFORMANCE Magazine we go in-depth into the life of Aisha Zayed Al Ali, Senior Director of Institutional Effectiveness at Mohammed bin Rashid School of Government, United Arab Emirates. Ms. Zayed is a graduate of Performance Management Program from the Cranfield University in the UK and holds a Master of Public Administration degree from the Dubai School of Government affiliated with Harvard Kennedy, as well as a Master’s in Business Administration, double majoring in HR & Marketing.

Ms. Zayed is an expert in strategic planning, EFQM assessment and policy analysis. She began her career at the Ministry of Health (MOH), after which she moved at the General Authority of Youth & Sports Welfare (YSW), the Federal Electricity and finally, at the Water Authority (FEWA). She is currently the Senior Director of Institutional Effectiveness at Mohammed bin Rashid School of Government (MBRSG).

So now we invite you to take part in a world dedicated to improving performance and all that is comprised in the search for improvement, in its smallest details.

Enjoy this March’s PERFORMANCE Magazine!

Vlad Ghirbomean Head of Graphic Design 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 Post Editor, or having your interview featured in PERFORMANCE Magazine.

Andrei Costea Head of Publishing & Media, The KPI Institute

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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.

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THE KPI INSTITUTE’S PROFESSIONAL CERTIFICATION PROGRAMS

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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.

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MARCH 2019

NEWS

NEWS

> PepsiCo steers towards more automation As we’ve seen over the years, two trends have started to become more apparent, as brands & companies become larger around the world. The first one pertains to automation - technology advances and with it, the areas in which it can be applied.

"In doing so, we will drive down cost and that enables us to plow the savings back into the business to develop scale and sharpen core capabilities that drive even greater efficiency and effectiveness creating a virtuous cycle."

– Ramon Laguarta, CEO, PepsiCo

The second one, which isn’t as obvious, but ties in to the first one, is businesses have decided to increase efficiency and revenue by going on a diet and becoming slimmer, through corporate restructurings.

CFO Hugh Johnston also confirmed that the chief reason behind this restructuring is their desire to further embed automation into the business’ structure, as they’re looking to automate and merge the best part of their business model with the latest & greatest in tech, in order to become much more efficient than they have ever been.

In a move to consolidate their dedication to this plan, PepsiCo also announced the reshuffling of its beverage-related business, by splitting into four regional divisions across the United States and one Canadian division, to maximize speed, decisionmaking and allocation of resources.

Both of these trends can be seen in action when we look at PepsiCo. At the start of 2019, they announced they will undergo large-scale changes, based on a 4-year plan, in order to completely overhaul the company’s entire employee base.

To put things into perspective, the company recently filed with the Securities and Exchange Commission an expected

> Using B2B Influencer Marketing to spur European SaaS success Influencer marketing has become one of the most hype forms of marketing at current, with 39% of marketers that participated in a Linqia study stating they looked to increase their influencer marketing budget in 2018. The same study showed that most marketers are ready to spend between $25,000 and $100,000 on influencer marketing alone.

At its core, this type of marketing focuses on influential individuals and their effect over potential customers. Initially, it wasn’t used in marketing, but as a tool to gauge political sway.

In 1940, a study conducted by Lazarsfeld, Berelson and Gaudet concluded that there was a two-step flow of communication between voters candidates and mass-media, whereby voters are influenced by what candidates say, who in turn are influenced by what the media narrates.

This idea was built upon in a follow-up study in 1960 and as populations & mass-media grew in time, it spread into other areas of social life, not just politics, becoming the phenomenon we know today.

So what does this have to do with European SaaS companies?

Well, software as a service companies – SaaS, are picking up on this trend, as the industry has only been growing in recent years. SaaS is effectively a software licensing & delivery model in which a company or an individual gets access to the software they desire through a subscription service. The software is hosted 7

MARCH 2019

$2.5 billion pre-tax restructuring cost throughout the period 2019-2023, with around 70% of this sum being related to severance & other employee costs.

This announcement comes as a bit of a surprise, as in 2018, PepsiCo announced they did have plans to lay off several employees, but that the total amount would not be greater than 1% of its more than 110,000 employees. With this new plan, they are committed to saving over $1 billion annually, until its deadline.

centrally by its developers, which means a user can access it from any computer.

In 2018, Gartner estimated that SaaS sales grew by 23%, up to $72 billion in total, and are projected to continue growing at a similar steady pace going into 2019. More growth equals more competition, which demands new ways to grow your customer base. That’s where influencer marketing kicks in, and some European SaaS companies are ahead of the curve on this matter, in 5 specific ways:  Using a learning hub, like ClickMeeting or Mention, to educate their target market  Identifying specific social needs/wants and acting on them  Finding good brand promoters  Organizing B2B conferences and building mentorship through them, like Brand Minds in Romania  Engaging their audience through video tutorials on YouTube Obviously, allocating a bigger budget for marketing purposes is still a surefire way to increase your visibility to some degree, but that doesn’t mean you cannot be smart about your investments.

Take note from success stories, like those of Hotjar, Agorapulse, ClickMeeting, Mention, SVGator and others to find efficient ways to raise your market notoriety.

NEWS

> How the Fintech Model is Revolutionizing the World Fintech, or financial technology is an umbrella term for technological innovations which strives to challenge and compete with current traditional financial methods, in order to better deliver financial services.

Back in 2005, as customers began feeling discontent with their banks, a new market for unmet needs became available, that of financial services. Startups began creating technologies that would answer customers’ needs.

In that year, the UK saw the birth of Zopa, while a year later, LendingClub was established in the US. Moreover, in the same year, 2006, the company Mint created a personal finance management dashboard, and another organization – Square, launched a mobile point-of-sale terminal in 2009.

Since then, fintech has spread across the world and developed to such a degree that it now encompasses 8 different categories of technology: robo advisors & personal finance, regtechs, digital banks & banking software providers, payments & remittances, insurtechs, blockchain/dlt & bitcoin, and finally we have alternative finance.

By 2017, we already saw some fintech companies like Lu.com, Stripe, One97 and SoFi achieve great success, as their market valuation went into the billions. But how did they achieve this level of success and moreover, how are they slowly but steadily revolutionizing the world?

In short, these companies sparked change by sticking to the some of the core tennets of innovation, which are legality, problem-solving and effective implementation.

1. Innovation is legal Governments will not attempt to block novelty from coming out of the market. They will try to either enact legislation that makes it easier to innovate, or abolish laws that intentionally place hurdles in front of new developments. This presents advantages for both fintech startups, as well as other industry startups who prove to be trustworthy servants of the market.

2. Innovation solves problems While banks around the world are facing a trust problem with their customers, fintech startups are doing their best to combat that, gaining a competitive advantage. Neobank Monzo or TransferWise bring unprecedented levels of transparency, which is forcing others to follow suit.

3. Innovation brings effective implementation Unlike previous era companies that went fist-first into the market, trying to fight for a spot, present-day fintech startups understand that it is better to become effective partners for incumbent organizations. It is not efficient to fight everyone in the market.

It is much better to become a joint effort with another existing organization, in order to improve efficiency, find new solutions and leverage on each other’s strengths.

These are just 3 ways in which the fintech startup model has influenced present day markets, as far as we have seen up until the current year.

As partnerships become more complex and unprecedented, who knows what business models might be seen in a couple of years, as a result of fintech pioneering.

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NEWS

> STC receives the Integrated Performance Excellence Award It is with great pride and joy to announce that during the Certification Awards Ceremony that took place in Riyadh, Saudi Arabia, on the 18th of February, the Saudi Telecom Company (STC) received the ”Integrated Performance Excellence” Award in strategy and performance management.

The KPI Institute, through its Global Performance Audit Unit, worked with STC in order to assess the organization’s performance management maturity level, which resulted in a level 4 out of 5 evaluation score, showcasing STC’s high level of management maturity.

“This is a clear indication of the company’s maturity level performance.

While their strength indices should be further nurtured and a few of their low performance points need to be better developed & enhanced – based on worldwide criteria, this is nonetheless a resounding success” Aurel Brudan, CEO, The KPI Institute The organization was measured across five different areas:  Strategic Planning  Performance Measurement  Performance Management  Performance Culture  Employee Performance Management Furthermore, the evaluation process adopted a set of maturity model frameworks, developed to assess the complexity of institutional capacities, in order to identify gaps between maturity levels and provide the necessary guidance to overcome them.

“The award reflects our commitment to our DARE strategy and represents a clear indication that we’re on the right track when it comes to HR management & performance measurement strategies.”

Ahmad Al Ghamdi, Vice President at STC Human Resources The Saudi Telecom Company has gone through several strategies over the years. It first started with LEAD, between 2012 – 2014, through which it attempted to become the leading force within the KSA Market.

Then, in 2015, all the way to the end of 2017, they created NEXT HORIZON, aiming to transfer the business and culture of STC in the greater business environment, as well as throughout the entirety of the company.

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Fast forward to the former present and at the start of 2018, it decided to reinvent itself once more with DARE. D – Digitalize STC A – Accelerate core assist performance R – Reinvent customer experience E – Expand scale and scope aggressively This strategy allowed it to get a much better understanding of its business environment, than ever before. As such, STC expanded into new markets and new digital services, like the Internet of Things, Cyber Security, Cloud Computing, In-depth Data Analytics and much more, which essentially paved the way for performance to grow at unprecedented rates.

It is always an honour to work with companies that dedicate themselves to performance excellence and with this award, the Saudi Telecom Company has proven that they can be a visionary leader and an admirable example for others to follow.

NEWS

> AI Development – the final frontier in Europe Artificial Intelligence development has been growing at incredible rates since its inception. While some, like the late Stephen Hawking or Elon Musk do not want to join the bandwagon, as they oftentimes touted about the dangers of AI, others such as Google, Amazon, Apple, Intel and others have seen the benefits this technology brings and want more of it.

Since the very first acquisition of AI specialized tech in 1998, big players around the world have invested almost $8.6 billion on AIrelated items, from software to entire startups.

However, most of the investment has been done primarily in the US, with China following suit in recent years. Europe, for the most part, has been lagging quite badly, despite numerous ventures that were birthed on the old continent even as recent as 2018.

Many are of the opinion that the recently enacted privacy legislation, as well as legislative projects aimed at managing AI development are to blame for this, as most newly-created companies simply move to the US once they’re acquire by any big tech company.

That being said, with the number of annual acquisitions in the AI industry rising by more than 500% between 2013-17 –Google is currently leading the pack with 29 AI startup acquisitions, and the number of university course enrollments specializing in AI going up, most notably in China, where AI and Machine

Learning course enrollment in 2017 was 16x that of 2010, Europe has decided to stay on the side no more.

In December 2018, the European Union has decided to invest approximately $20 billion into the AI industry, making it one of the largest investments in the field currently. This project is known as AI4EU. AI4EU is deemed to be an on-demand knowledge hub, unifying all things related to AI research & development coming out from the EU. At present it boasts over 70 partners, from 21 countries and will run for 3 years.

Governments, NGOs, businesses, startups, research organizations, universities and individuals are to share their knowledge, expertise and tools, on a common platform, so that each source learns from others. The aim is to build AI development faster than ever, in order to spur economic growth in a sustainable, open and interconnected fashion, in what will be both a physical and virtual level.

In addition to this, in order to assuage any concerns, the EU will also look to establish an Ethics Observatory, that oversees AI development, ensuring it is human-centred.

With this bold plan now in action, it is now a matter of time – 3 years specifically, to see whether Europe can catch up to North America and China, or if it will continue being a breeding ground for others to take their pick of the litter.

> Walmart on rails is becoming reality Last year, Walmart began a pilot program, to become self-sufficient when handling its cargo. While this is something quite novel, as most retailers do not want to dabble in the minutiae of transporting goods, Walmart reckons it can cut costs through this strategy, in order to boost its e-commerce presence.

Ken Braunbach, VP of Inbound Logistics, noted that wholly delegating tasks to a 3rd party provider would yield little control over operations, network optimization and delivery times, as they’re at that provider’s discretion.

Now, Walmart truckers had already been delivering goods between warehouses and railway points over the years. What will change now is that the company will be essentially delivering to itself without the middle man, which it hopes will make the entire process leaner.

Another reason why the retailer has decided to go for this move is cargo container design.

Most rail containers only have swing doors, which if you’ve ever seen, aren’t the best when it comes to loading goods into a store or a warehouse.

Walmart’s intermodal containers however will have roll-up doors, which allow for greater access and maneuverability.

“What (having roll-up doors) that means is that those can deliver at any time — whether a store is open or there's receiving associates available in the backroom. When they (associates) are ready to unload into the store, they open the back door and it's ready to go." – Ken Braunbach The company’s VP of Inbound Logistics did mention that this pilot program will not entail Walmart completely abandoning all of its logistics 10 MARCH 2019

suppliers. It is simply a service meant to supplement existing contracts, in order to better satisfy its growing e-commerce demand.

E-commerce sales for the Arkansasbased company grew by 43% last year.

While this figure has not yet reflected direct profits, that’s mostly due to the company investing its earnings in infrastructure, people and other new initiatives along these lines.

In addition to all of the aforementioned reasons, the company’s trucking labour pool has experienced a 94% turnover rate. More so, the drivers’ market in general has become stiff – fewer new faces are entering the scene, while current ones are changing their demands, such as wanting to stay at home during the night.

With railway transportation being much cheaper than its highway counterpart - albeit not as quick, it will be interesting to see how Walmart develops its system, in order to account for all of the aforementioned reasons behind this change. Will they ship merchandise by train earlier in the night, only to have it picked up at the break of dawn by trucks?

Or will they commit to shipping by train and developing a schedule for clients, based on which they can expect goods to arrive?

Whatever it is they’re planning, Walmart won’t be severing logistics ties any time soon, but this does make a good case for a company pursuing even greater control over its costs.

COVER STORY

BUILD A PERFORMANCE CULTURE THROUGH INTEGRATED STRATEGY COMMUNICATION SOLUTIONS FROM THE KPI INSTITUTE Planning Strategy Messaging Workshops Strategy Reporting Workshops Strategy Communication Campaign Plan Implementation Roadmaps Upskilling Strategy Communication Toolkit Standardized Communication Templates Strategy Communication Training Live In-House Masterclass Presentation Evaluation Strategy Communication Dashboard Performance Culture Audit Data Visualisation Audit Staff Surveys Print Visual Displays Roll-ups Popup-Spiders Posters Flyers Customized Infographics

Strategy Communication Content Strategy Communication Internal Newsletter Targeted Strategy and Performance Emails Cartoon Series Mascot Design Fact Sheets Team Engagement Strategy Communication Information Sessions Strategy Ambassadors Network Strategy/Performance Internal Community of Practice Resources Library Strategy and Performance Portal Organisational Performance Library Best Practice External Resources Strategy/Performance Tool Redesign Personalised Strategy Maps Scorecard/Dashboard Design Performance Reports Design

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COVER EVENTS STORY

FIVE LEVELS OF ORGANIZATIONAL MATURITY: PERFORMANCE MANAGEMENT PERSPECTIVE MARCELA PRESECAN concept of organizational maturity generally refers to the evolutionary process of an organization building its people, processes and T hetechnology readiness and capability through the adoption of quality practices.

With regard to performance management practices in the organization, maturity relates to the adoption level of dedicated performance management tools, the shaping of internal performance management processes, the mechanisms, processes and relations through which performance management systems are run and administered, the build of the performance management architecture itself and the degree of performance management system integration.

Organizational maturity frameworks provide a transitional set of common characteristics against which maturity can be assessed. The performance management perspective on organizational maturity provides us with five levels of evolutionary growth.

Each level is characterized by a common approach towards the organization’s main operational levers: Tools, Processes, Governance, Architecture, Integration.

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COVER STORY

 1st Level of Maturity: INITIAL

 2nd Level of Maturity: EMERGENT

The “Initial” or “Inceptive” organization, although curious about performance management practices, is not generally familiarized or is completely unaware of performance management tools that can support the implementation of the performance management system in the organization.

The “Emergent” organization will have begun to discover and experiment with performance management tools. While internal processes are uncoordinated and performance management tools still unstandardized, the need for improvement is strongly enunciated.

While the organization is vividly trying to lay the foundations of the performance management system itself, its processes are too inconsistent. Despite the disconnect in internal processes and activities overlap the organization is overly focused on immediate outcomes.

Activities for consolidating performance management practices in the organization are planned and expectations defined. In the case of emergent organizations, the performance management architecture can be perceived as transitional. The strategy at this maturity level is a formal documentation that does not provide the added value expected.

There is poor formulation of organizational objectives and misalignment between different levels of the organization, mainly due to ineffective communication. Some of the basic performance measurement practices such as KPI selection and KPI documentation are slowly employed by the organization.

The performance architecture is itself incipient with strategic planning practices that are mostly informal and mainly rely on top management experience. Performance measurement is not a common practice in the organization. It is either nonexistent or very limited. KPIs are vaguely defined for the organization with no formal consensus regarding the KPI calculation methodology, nor any centralized evidence of the KPIs monitored.

There is a poor organizational identity and unclear direction, which translates into limited awareness of employees in regard to what matters for the organization and limited transparency in actions and performance levels. The outputs of organizational initiatives are unidentifiable as accountability is unclear and there is limited visibility into the manner projects are linked to organizational objectives.

At this maturity level, a lack of active involvement from senior management to support the Performance Management Architecture is commonly encountered. Internal communication systems are not yet well structured and there is a poor overall knowledge level with regards to what performance measurement and management systems generally imply.

Usually, this generates a weak acknowledgment towards the importance of using Key Performance Indicators (KPIs). There are no initiatives used to motivate or increase engagement levels among employees. Innovation is not facilitated in any way and individual performance is not measured or rewarded.

14 MARCH 2019

The KPI selection process is exercised without minding designated criteria, methodology or techniques. Some of the KPIs selected are also documented, although there is no standardized approach towards the use of KPI Documentation Forms/Templates. Data collection is becoming more structured, and in some areas of activity visual representation tools are used to track the progress of KPIs. Although there is a formal process of reviewing and reporting on performance, performance review meetings do not deliver the much-needed insight into decision-making the organization might require. A performance-oriented culture exists but is not supported by consistent communication initiatives from leadership.

Senior management is aware of the importance of measuring performance and has a basic knowledge in this area, but there is a certain formality with the efforts submitted in this direction.

Managerial positions are accountable in terms of performance results, but measuring individual performance is not a widely used practice in the organization.

COVER STORY

 3rd Level of Maturity: STRUCTURED

 4th Level of Maturity: INTEGRATED

The “Structured” organization will have already selected and defined the most suited performance management tools for the organization.

Such an organization will have already gained control of the its main performance management processes. There is a well-coordinated effort in standardizing performance management practices across the organization, there are defined process flows and upgraded process activities.

The “Integrated” organization carries out a dynamic process of continuous change. There is an overall effort of increasing efficiency through waste reduction, while performance management processes are becoming cross-functional and streamlined. The main focus of the organization revolves around cascading and alignment. There is a general acknowledgement of the benefits that such tools bring to the organization.

The approach towards adopting the performance management architecture is however still inconsistent. Strategy monitoring tools, such as scorecards, dashboards and portfolio of initiatives are used, however they are not cascaded at the lower levels of the organization.

A more structured approach towards selecting Key Performance Indicators (KPIs) is observed. KPI selection criteria is clearly defined and commonly agreed by internal stakeholders. KPI selection tools and techniques are gradually enhancing the KPI Selection process.

The cascading of the performance management system is closely monitored. The wider purpose is achieving homogeneity.

Performance measurement is a process that adds value to the organization, through the effective use of performance management tools and adequate system governance.

A streamlined KPI documentation process is employed based on a standardized KPI documentation form. The process of setting targets for KPIs is becoming increasingly comprehensive, by means of data sourcing, market data comparison and benchmarking. The reporting process relies on standardized templates and guidance to create the final report. Performance review meetings take place at the end of each performance management cycle and are well-organized.

As learning and improvement is not yet formalized in maturity level 3 organizations, progress seems to happen rather naturally.

The performance culture is supported by a strong business case for measuring performance across the organization which is communicated across the organization.

Awareness level among employees is moderate to high in relation to organizational main objectives and performance levels. Templates and procedures are developed to support the performance management cycle. The governance of the system is well defined.

In most cases, employee performance is tracked, and it involves assessment of individual objectives and KPIs. Rewards are offered to employees as well as training opportunities to ensure performance improvement.

15 MARCH 2019

An integrated selection process for Key Performance Indicator (KPIs) is observed and a streamlined KPI documentation process is already employed. The KPI target setting process is increasingly complex. Data gathering is supported by a standard software solution and most of the KPIs are monitored in scorecards and dashboards.

Business Intelligence tools are also commonly used for reporting, which makes the process relatively fast and accurate.

The performance culture relies on effective communication that reaches all internal and external stakeholders. Performance Managements is structured as an organizational capability.

Performance measurement is integrated in all activities at all organizational levels and enables a certain level of autonomy in the working environment.

There is a strong culture of learning and improvement, which captures innovative ideas. Employee performance evaluations are aligned to the entity’s strategy and performance is stimulated through a combination of financial and non-financial rewards. Investments are made to constantly improve the quality of the working environment and the employee engagement.

COVER STORY

 5th Level of Maturity: OPTIMIZED

FINAL THOUGHTS

The “Optimized” organization will have used standard performance This model of maturity highlights the main stages an organization management templates and perfected and/or automated them. is traversing when trying to successfully put into effect its strategy Performance management processes have been tested and trialed. and performance management system. Many organizations There is a whole process of re-engineering and re-positioning them tend to overlook the complexity of implementing a performance for the better benefit of the organization. The system is transparent, management system as well as the tie-ins it has with already SMART initiatives enable continuous performance improvement. established organizational processes.

Strategic planning is an important organizational process which is well integrated with other key processes. The strategy itself relies on By absorbing in other systems and processes in the organization, the simple and clear tools. Awareness on what the organization desires performance management system also to achieve is high even among front-line employees. Performance implicitly performs a health check on measurement is an important organizational process which is well operations. integrated with other key processes.

The five stages of performance KPIs rely on simple and clear tools to collect data. At this maturity management system maturity level, in most cases, there is a state-of-the-art selection process hereby outlined provide a for Key Performance Indicators (KPIs). All monitored KPIs – valuable view on the phases of operational or individual – are aligned to the corporate strategic a performance management objectives. A centralized KPI library consolidates the internal know- system implementation how on how KPIs are calculated and reported in the organization. project, but also unique Usually, the target setting process sets meaningful performance insight into the other levels, which trigger positive behaviors from employees. The process organizational processes it is completely automated, systems are integrated and rely on the impacts in its trajectory. latest technology in terms of Business Intelligence. All KPI results are displayed in dashboards and scorecards compliant with data visualization best practices.

Modelling and other advanced data analysis techniques are commonly used by organizations with optimized performance management systems. These organizations usually rely of Business Intelligence tools to report on performance and track progress of organizational initiatives. It is characteristic of organizations at this level to have a flexible performance management system able to easily adapt to changes.

The performance management system is widely used within the organization and the stakeholders are actively engaged to improve the current processes. There is a strong learning and improvement culture. The organization has managed to translate performance management into everyone’s job. The role of each employee is clear.

This enables staff members to make consistent decisions aligned with what the organization aims to achieve.

At this stage, organizations invest in technology and in the wellbeing of their employees. The working environment is stimulating and manages to leverage on individual talent. Highly motivated employees benefit from considerable autonomy, which nurtures innovation within the entity.

Gamification is a common practice within the entity to engage and develop employees’ skills. The bonus system is comprehensively rewarding based on multiple performance components (individual, team, organizational).

16 MARCH 2019

INTERVIEWS

EVENTS INTERVIEWS

Glen Rabie CEO - Yellowfin  Australia

Gavin Lawrie Managing Director 2GC Active Management  United Kingdom

17

MARCH 2019

INTERVIEWS

INTERVIEWS

”I think the most successful organizations are those that are transparent, where there is a global understanding of the strategy and the KPIs required to achieve success.”

Business Intelligence Glen Rabie CEO - Yellowfin Australia What have been some of the most interesting developments within the BI industry, in 2018, from your point of view?

I think that in 2018 the industry has made a significant shift towards augmented or automated analytics.

It becomes really interesting when you look at things from an acquisition perspective, with the likes of Salesforce acquiring Datarama after their purchase of Beyondcore, Tableau with Empirical Systems and Workday with Stories.bi.

Thoughtspot also received significant funding and Yellowfin released its second product for automated analysis – Signals.

All these events indicate a significant shift in investment by vendors into the automated space.

New developments breed new challenges. What would be your top 3 expected challenges for Business Intelligence companies, knowing the current state of the field and the direction it’s heading towards?

I think the challenge is really keeping up with the next wave of innovation for BI and Analytics products, which would be the aforementioned augmented analysis. Gartner predicts that this wave will dominate the next 3 years. If vendors are not investing in this now, they will be left behind.

18 MARCH 2019

However, this does mean significant retooling and architecture changes for some vendors – especially those that are workbookbased like Tableau, Qlik and PowerBI. I think these large vendors are going to struggle to keep up with the changes in technology that are driving the space.

Speaking of BI companies, Yellowfin has been a very consistent player in the market, with entities such as Gartner recognizing that quality, which is why unlike other, more swingy companies, Yellowfin has maintained a sturdy position.

Can you tell us what enables you to have such consistency over some of your competitors?

Firstly, we started out with the right architecture. Yellowfin was one of the first browser/server-based BI applications on the market. This has meant it has been relatively easy to modernize the application over time, without having to pull it all apart.

Secondly, I think we have not been driven by what our competitors do. We have our own philosophy on analytics, which I think differs significantly from our competitors – namely that we focus far more on the business user versus the data analyst.

We understand that the value of analytics is determined by the business taking action on their data, rather than simply the analytical

user experience. With this in mind, we are constantly focused on how we can get more business people to use data on a daily basis.

The immediate result of this is a far greater focus on collaboration, which has been our strength for a long time, and now Yellowfin Stories doubles down on that, enabling business people to provide far more context and narrative to their numbers.

Can you unveil any future plans for Yellowfin, which may allow it to surpass its competition, in the same healthy & consistent manner that we’re used to seeing?

We have just come out of a huge release, Yellowfin 8, which introduced two new data products – Signals and Stories. Both of these are highly differentiated in the market.  Yellowfin Signals discovers the most important outliers and changes in trends as they happen.  Yellowfin Stories provides the context and narrative for businesses to take action.

You will not find any major vendor offering these types of solutions today, and that is very exciting for us. Beyond this, we have a big pipeline of innovations ahead, from improved and automated data preparation, to more flexible dashboard designs.

However, probably the most exciting work in development is our new mobile app, which promises to be something quite special.

Unfortunately, I cannot go into detail here, but expect something impressive

MAY 2017 18

INTERVIEWS INTERVIEWS

“Augmented Analysis will become more relevant than reports and dashboards for human analysis over the next three years.”

As an organization that designs products and services meant to help other companies improve their performance, what areas of business management have you noticed being most prone to errors? (Note: this can include any aspect, from employee mismanagement, company-wide miscommunication, creating process behemoths or trying to streamline processes too much and so on).

It is definitely not a pure technology problem.

When I see failure, while oftentimes people and processes represent the root cause, at the heart of things, the element that leads to them being so is the organizational culture.

I think the most successful organizations are those that are transparent, where there is a global understanding of the strategy and the KPIs required to achieve success.

Transparency enables the whole organization to be involved in conversations about performance and what each employee or business unit needs to do, to contribute to their organization’s success.

19 MARCH 2019

On the topics of business management and errors, many organizations – from smallsized startups to venture capital unicorns, are very gung-ho about BI solutions, rushing to get one before the paint has even dried up in their newly-built offices. How should interested parties go about finding the best BI solution for their company, so that the solution doesn’t cost them more than very aspects they are trying to measure? (Note: what would be the main aspects they should look at?)

It depends on a number of factors. We can ask ourselves for example “what use cases are you trying to account for”?

There are a ton of BI solutions on the market, and one of the main reasons for that is because many specialize in specific use cases, so knowing what is important to you is a huge first step in choosing the right vendor. Therefore, ignore the feature function and map out what you want from your BI solution.

Do you need to prepare data? Who will analyze said data and how will they present that back to the business? How do you want business people to interact with that data? Do you want to receive alerts when certain things change?

To manage the cost of any BI project, you need to come well prepared. The fastest way to waste money is not knowing what you want to measure and how. This sounds simple in theory, but in practice I have seen this over and over again, where organizational leaders do not have a clear understanding of the metrics that are important to their business.

People should keep in mind that it’s not about the software, it’s about the building of analytical content. Now that being said, it should be noted here that I am not talking about implementation costs, because BI is an ongoing deliverable.

Every organization has to be prepared to invest in people & analysts, to make your project successful, that’s just a given.

INTERVIEWS

INTERVIEWS

”Organizations have much greater success in performance management when they focus on implementing simple targeted olutions for specific applications.”

Consultant Gavin Lawrie Managing Director, 2GC Active Management, United Kingdom

TRENDS Which were the key trends in Performance Management, from your point of view, as seen in 2018?

What are your thoughts on the integration of Performance Management at the organizational, departmental and employee level?

Integrated performance management – i.e. performance management systems that concurrently support several of the distinct performance management applications discussed above – is a concept promoted primarily by software firms (presumably with a view to persuade their clients of the need to purchase ever more complex solutions).

In 2018, we saw a continuation of the trend to redefine performance management as a multifunctional collection of distinct applications – strategic, operational, personal, evaluative and organizational. Reassuringly, from my perspective, as it confirms the conclusions drawn in some of the earliest research papers published by 2GC in the early 2000s.

However, integrated performance management is, for fairly fundamental reasons, a chimera – the very different functional requirements of the various distinct applications of performance management within an organization make integrated solutions unusually complicated, and (at least in the experience of 2GC over 20 years working with organizations on these issues) more often than not the root cause of performance management failures.

It was clear then that for each of the distinct applications, the nature of the measures you would choose, the frequency that you would need to report them, the accuracy of measurement required and the management process that would be informed by the information are all necessarily different; it is great to see that nearly 20 years later, the message is increasingly influencing the practices of the performance management community.

Organizations have much greater success in performance management when they focus on implementing simple targeted solutions for specific applications, even if it means they end up with multiple parallel systems. It is better to focus time and energy on building simple systems that people can own and use, and to manage the boundaries between these systems intelligently, than to set out on a Quixotic quest for organization-wide integration and control through a single approach.

Of course, it is pleasing to note that Performance Magazine has also recognized these differences – featuring them in its site navigation since it emerged from smartKPIs. com in 2014.

Perhaps one day such approaches will work, but right now integrated approaches simply do not work well enough to justify their use.

20 MARCH 2019

Which will be the major changes in managing performance, in the future?

Over the last few years there has been an increasing interest within organizations on recognising and monitoring goals set by stakeholders other than the ‘owners’ of the organization. Perhaps the most visible such change is the widespread interest by organizations in ‘sustainability’ as both a strategic goal and product/service differentiator, but we also see it reflected in an increasingly active approach to regulatory compliance and the minimisation of litigation risk.

As these trends develop, I think there will be three consequences of note:  There will be recognition of the need to move toward tracking and rewarding appropriate behaviours and values rather than simply monitoring the completion of activities;  In the future simply doing the current job will not be sufficient, being able to demonstrate that the organization has successfully implemented critical changes in activity, attitudes and behaviours will form a critical component of communication with non-financial stakeholders.

As a result, there will be greater emphasis placed on performance management processes that ensure critical strategic and change goals are actually delivered on time and with appropriate effectiveness;  To support these developments, organizations will find themselves looking for more sophisticated and effective approaches to help them select and use non-financial non-operational measures.

INTERVIEWS INTERVIEWS

”There is a need to research into better ways for organizations to sustain multiple separate performance management systems.”

RESEARCH What aspects of Performance Management should be explored more through research?

I can see three areas that would benefit from original research.

First, building on pioneering work of the 1990s and 2000s, there is still a need to look again at how to better align and reflect user and corporate interests in measurement activities. Our understanding of how to define and catalogue useful and comparable non-financial measures is poor compared to our equivalent abilities relating to financial performance measures. Even within industry groups, our ability to monitor and compare performance against non-financial measures is lacking.

Fixing this is non-trivial, but some really interesting solutions are emerging from current work (for example) on measuring and monitoring organizational performance relating to sustainability; I think there will be some crossover from this to mainstream performance management topics.

Second, there is a need to research into better ways for organizations to sustain multiple separate performance management systems. For example, finding ways to break strategic performance management away from the ‘annual’ financial budget and review cycle, introducing mechanisms that more closely support shorter-term responsive strategic decision making required of modern strategic Balanced Scorecard designs, or related tools such as OKR. Organizations necessarily need to accommodate the differences in measurement frequency and style required by the multiple distinct performance management applications that 21 MARCH 2019

it uses (e.g. strategic, operational, appraisal, regulatory compliance, incentives etc.), but using separate conflicting systems is perhaps less efficient and effective than would be the case if these were more closely integrated.

Third, there will be an increasing need for effective auditing of non-financial performance management systems. The auditing of performance management systems is a service offered by several organizations (including 2GC, and smartKPIs), but there is no consensus on the right methods to use, or enough rigour for such audits to have legal or regulatory recognition.

Again, we can see one possible solution emerging from what is happening in the sustainability space, but it is unlikely that these ad-hoc solutions will scale sufficiently to work across a broad range of industries and sectors.

Which organizations would you recommend be looked at, due to their particular approach to managing performance, and their subsequent results?

Given the trends likely over the next few years, I would encourage consideration of the approaches being adopted by organizations that are effectively addressing sustainability issues.

Independently of whether sustainability as we see it today persists as an agenda item, these organizations are actively testing new approaches to performance management – including novel forms of performance management, and work to instil behaviours and values within organizations as well as monitoring activity.

Which of the existing trends, topics or particular aspects within Performance Management have lost their relevance and/or importance, from your point of view?

For the last decade, 2GC has run an annual survey of Balanced Scorecard usage, and over time we have seen increasing recognition that the original ideas underpinning the development of the Balanced Scorecard are being replaced by more effective methods.

In a research paper I co-authored in 2004, we recognized then three distinct ‘generations’ of Balanced Scorecard design which we labelled – 1st, 2nd, and 3rd generation. Each generation was introduced to correct for weaknesses in earlier approaches to this kind of performance management, and it is hugely encouraging to see usage catching up with best practices.

For the last couple of years, the majority of organizations in the survey have reported using the latest ‘3rd Generation’ design methods: it would seem that the generally inferior 1st and 2nd generation approaches are finally being replaced.

A second, yet related, area of note is the increasing awareness that measure selection for performance management purposes is necessarily more complicated than simply getting someone else to tell you what is important.

INTERVIEWS

INTERVIEWS

”Performance measures clearly only ‘work’ when the managers using them understand and subscribe to their importance.”

Performance measures clearly only ‘work’ when the managers using them understand and subscribe to their importance. To this end, it has become increasingly clear to us that databases of key performance indicators, and consulting programmes that choose KPIs for an organization are not really much use.

The Oxford English dictionary defines about 170,000 words, but no one would suggest that simply owning a copy will improve the quality of a person’s writing. The biggest KPI databases contain definitions of about 22,000 measures, but we have found no evidence that paying to have access to such a resource improves either measure selection or use within organizations.

Organizations have no real difficulty working out how to measure things, the real challenge they face is deciding what to measure.

PRACTICE What are the main challenges of Performance Management in practice, today?

TPerformance management systems are resource intensive to design, implement and use. In particular, they necessarily require input from more senior members of the organization’s management hierarchy (e.g. to set the overall scope and dimensions of the system, and to authorise the required changes in working practices if the systems are going to be used).

A primary driver of the evolution of performance management methods for the last 30 years has been finding ways to minimize this resource intensity – finding ways to make performance management system design quicker, easier and more reliable. While great improvements have 22 MARCH 2019

been achieved compared to the early days, there is still scope for further gains in this area – particularly in regard of how multiple performance management tools are coordinated and aligned.

This resource intensity has two real consequences that undermine the effectiveness of performance management: managers are reluctant to invest the time needed to make good use of the performance management information provided, especially if their ‘ownership’ of the chosen measures and targets is low; likewise the desire to spend time regularly reviewing and renewing performance measure selections and targets – essential if a performance management system is to have any longevity – is closely linked to managers perceptions of the ‘usefulness’ of the current system.

Persuading managers to find time to use and maintain performance management systems is hard!

What should be improved in the use of Performance Management tools and processes?

Design activities need to build and maintain support and interest among the managers who will have to use the tools – such engagement is critical if the tool is to have any utility or life within the organization.

This requires design approaches that focus on concise rather than complex systems, and emphasise clearly the purpose and expected benefits of the systems being developed.

Once systems are in place, active consideration is required to ensure that the other management work-processes within the organization are able to accommodate the new performance management

framework. In particular, financial and personal goal setting systems need to be adjusted to accommodate the working of a strategic performance management system. If a strategic review identifies the need to change a goal or adjust a project or operational process, it is unhelpful if other control systems (e.g. finance) prevents such changes happening.

What would you consider as a best practice in Performance Management?

Modern 3rd Generation style Balanced Scorecard design processes have represented best practice in the context of strategic performance management design and use for over 20 years and provide powerful methods to support organizational strategic alignment and the development of a performance management culture. They are quicker, easier to implement, and lead to the design of more robust and reliable solutions than the methods that they have replaced.

INTERVIEWS INTERVIEWS

”Performance measures clearly only ‘work’ when the managers using them understand and subscribe to their importance.”

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

might check it once to be sure it works (and fix it if it is broken); if you are cleaning the car, you probably don’t need to look at it at all.

That measures need to be directly useful to the people who engage with them.

What are the limits that prevent practitioners from achieving higher levels of proficiency in Performance Management?

That measures without targets are not useful for management purposes.

That the frequency of review needs to be adjusted to suit the purpose of the measure – for example, how often and why you need to check the speedometer in a car very much depends on what you are doing – if you are driving it, you hopefully will check it regularly and use the information to adjust your speed. If you are servicing the car, you 23 MARCH 2019

 Belief that performance management is a simple concept  A generally poor understanding of performance management issues within academia and consulting environments  The cost and (unnecessary) complexity of software solutions

SPECIALIZATION SPECIFIC QUESTION Consultant Point of View: What are the processes and tools you look at, in order to differentiate a successful performance management system, from a superficial one?

The test 2GC applies is very simple – whether when we sit with managers within an organization, we can find any evidence at all that the performance management system is actually being used to inform decision making, and whether there is any evidence that over time the performance management system is being updated/refined to better reflect current issues.

PORTRAIT

PORTRAIT EVENTS

AISHA ZAYED AL ALI Lead by results, Inspire by character ANDREI COSTEA

Short Bio Zayed Al Ali is a graduate of Performance A isha Management Program from the Cranfield University

in the UK. She holds a Bachelor degree in Health Sciences from Sharjah University, a Master of Public Administration degree from the Dubai School of Government affiliated with Harvard Kennedy, as well as a Master’s in Business Administration, double majoring in HR & Marketing.

She has attended the UAE Government Leadership Program and the leadership program at McMaster University, Canada. Aisha is an expert in strategic planning, EFQM assessment and policy analysis. She began her career at the Ministry of Health (MOH), after which she moved at the General Authority of Youth & Sports Welfare (YSW), the Federal Electricity and finally, at the Water Authority (FEWA). She is currently the Senior Director of Institutional Effectiveness at Mohammed bin Rashid School of Government (MBRSG).

Her undergraduate experience at the University of Sharjah and the specialized leadership programs offered there 24 MARCH 2019

„Keeping your business plan constantly revitalized, with ongoing updates, is key to achieving success in today's markets.”

PORTRAIT

„I would say there is a hypothetical relationship between Performance Management and Quality Management: both care about objectives, performance improvement, designing internal processes, data collection, monitoring and overall productivity.” played a big role in shaping her profession.

Earlier in Ms. Zayed’s career, she moved from Health Science to Quality Management, as the Head of Quality Division. This was possibly the turning point for her, as the trust bequeathed from top management offered the motivation to specialize in Total Quality Management, and later in Performance Management.

When your top management has confidence in your ability, as an employee, you will work hard to enhance your skills for self-development, but also to increase organizational success, because there’s so much trust put onto you. Nothing speaks more loudly about individual achievements than a person’s own work.

With this in mind, another important moment in Ms. Zayed’s life was during her time as a Manager of Excellence at FEWA, under the umbrella of the Federal Government, when FEWA was honoured with the Emirates Excellence Award as the best Federal entity in 2012.

Fast forward to the present day, she has a degree in Performance Management from Cranfield University. This further solidified her belief that developing your skills allows you to better fulfil any new role.

This also marked the moment when she made the move to Higher Education, as a Director of Strategic Planning and Corporate Performance at Mohammed bin Rashid School of Government (MBRSG), after which she attained her present role, of Senior Director of Institutional Effectiveness.

25 MARCH 2019

All of these moments left a profound effect on Ms. Zayed’s career path, as each role inspired her to become better, to acquire new knowledge & integrate it into the core of information she already had, enhancing it in such a way that she could now adapt to most organizational environments. for the movie Moneyball, which served to reinforce his beliefs that measurement is an indispensable tool for someone wishing to pursue greater performance levels, as the movie depicts how measuring your performance helps you better understand your strong and weak spots and how to counteract the latter.

Influencers, inspiration & initial pathing When talking about influential role models on a personal level, who may have had a lasting impact on her development, Ms. Zayed mentions that while her parents were true pillars of strength and solidarity, it was her grandmother that remained her outstanding role model, given her support.

She notes that her grandmother used to tell her every time that „nothing should stop you from achieving your goal, as success is something you can make.”

Having a strong, confident and considerate figure helped shape her character as she grew.

On a professional level, our Senior Director mentions that it was a combination of individuals and writings that led her down the path of Performance Management.

First off, three individuals stood out to her: HH Sheikh Mohammed Bin Rashid Al Maktoum – as he formed the new, modern public sector in the UAE and inspired her to always strive for the best; Professor Tarek Coury, who supervised her Capstone in Socioeconomics, where her work won the best research paper award, and finally Muhammed Yunus, the Nobel Peace Prize winner, for his founding of the Grameen Bank.

Aside from exceptional individuals, Ms. Zayed also mentions that she’s an avid reader, perusing anything from psychology, human & market behaviours, to lots of international reports, such as the World Development Indicators Report, the Policy Research Reports or the semi-annual report on Global Economics from the World Bank, as she finds interesting information pertaining to policy research in these reports.

In addition to this, there were a number of books over the years that she feels left a lasting impression on her:  From Big Data to Big Profits:

Success with Data and Analytics

by Russell Walker.  Thinking, Fast and Slow

by Daniel Kahneman.  Start with No by Jim Camp speaks

about the negotiation tools.  The 10x Rule: The Only Difference

between Success and Failure

by Grant Cardone.  Banker to the Poor: Micro-Lending

and the Battle against World

by Muhammad Yunus.  Experiences: The 7th Era of Marketing by Robert Rose

PORTRAIT

Involving leaders, managing efficiently Over the years, all of these experiences led to a steady, yet certain growing interest in Performance Management. Once she entered the domain of Quality Management, it became a reality. This pathway allowed her to gain a better understanding of the Public Sector – how to manage and make it more efficient & effective, as well as improve her knowledge on management in general.

„Together, as one team, wherever I was, we worked to transform our organization, by measuring business performance objectively with the support of metrics.”

After her initial foray into the field of organizational administration, performance management became part and parcel of her leadership style. Ms. Zayed learned to lead by results, while keeping focus on corporate performance results, business improvement and corporate objectives.

canopy, you may very well establish yourself as a force in your market and look to overtake any competitors, because you now have all of the pieces in the right positions.

That being said, there are two elements left unmentioned – Key Performance Indicators and Data Validation.

This experience also led her to a better understanding of what top management can do to improve performance management in the public sector, and why it’s good to have the Board of Directors more involved in the overall business strategy.

KPIs are an interesting beast, because there’s chiefly two ways in which you can look at them. Most employees see them as a system of control, built to pressure the company’s strategy team to obtain relevant data on time.

Simply put, by involving leadership into the process, it allows them to exercise their organizational governance responsibilities to a greater degree, making managers and chief executives more accountable to their targets.

In turn, this trickles down to the employees, who now become more engaged in achieving said targets alongside their team leaders, as they become much more conscious of how their work impacts the company in general.

Once Ms. Zayed had come to this realization, it became increasingly clear to her that one can focus on people skills and participate in capacity building much more easily if you have a performance management system in place.

Moreover, once you decide to implement a PMS, you will surely also make use of a Balanced Scorecard, which will only serve to keep things clear-cut for everyone, from top to bottom, regardless of whether you work on the private or public sector.

The BSC will offer you greater data availability and precision, which you can then use to help people focus on areas that need improvement. Naturally, such an undertaking will contribute to building a culture of performance over time.

As soon as all of the aforementioned elements – an integrated business environment, a performance management system, a culture of performance and highly developed employees, become united under the same

26 MARCH 2019

Ms. Zayed notes that things become even more cumbersome when you add in the fact that building the corporate business strategy is a tremendous task to begin with.

KPIs in reality represent a system of improvement, but few people in any organization that implements them actually go the extra mile t o lay it all out in clear terms for everyone.

“People don’t even know that before KPIs, there’s a strategy. But how do we get to that strategy? What is it? What good does it serve? All these remain a mystery in so many organizations.”

Now, adding to this, there’s data validation.

Our interviewee mentions that when your average no. of KPIs is higher than around 70% of your business operations, the entire process of validating data is excruciatingly time-consuming, which in itself adds another layer of mystery for most people.

“Why are things taking so long? I only have 4-5 KPIs” would be the average response, when in reality, data validation means going through everyone’s KPIs. This is why Ms. Zayed highly recommends developing only the most relevant core KPIs for one’s business, and during the design phase of a PMS, one’s employees should join and help select them, whilst the Strategy team explains why things are being done the way they are and how these will bring improvements.

PORTRAIT

In addition to this, management should look to keep the business model constantly upto-speed, ensuring it fits the organization’s current purpose, environment and responds to customer behaviour accordingly.

This can be achieved easily by emphasizing Quality Management – Lean Process Improvement, as well as looking to further harmonize each employee level better with each other. Quality Management lets you reduce process cycle time and improve your overall quality of service.

Staying informed & updated As our interviewee notes, one of the main advantages of Performance Management is keeping a company’s business plan constantly revitalized, by updating as projects or quarters go by. The plan must evolve alongside internal and external changes.

She stresses that whenever improvements are needed, they should be top priority.

Managers should not wait until the midyear or annual review if there’s a clear path to improvement. Moreover, such expediency keeps processes simple and clear for everyone, allowing a company to easily deliver 7-star customer services.

27 MARCH 2019

Be confident. Be open-minded.

When asked about what career advice she’d offer to other professionals in the industry, Ms. Zayed notes one should look to increase their knowledge base, possibly even from other industries. In your free time, take part in research and engage specialists.

She herself volunteers for various social causes in the UAE, which has opened up many new professional opportunities and led to her meet some very dedicated & erudite individuals.

“One example of Quality Management that I’ve noticed produced astounding results pertains to data integration. It was about making data more accessible, through an integrated & streamlined data collectionblending-reporting process. It made data more open, as it was simple to move from rich data to big data, and easier to explain to anyone.”

At work, if you are in a position to do so, coach & mentor people, share your knowledge and enjoy the constant exchange of ideas that comes with being a Strategy Expert. Our Senior Director tells us that she’s always looking to challenge and improve her people skills, so any time there is an issue, she likes to get involved and try to help alleviate it.

Employee harmonization, at a base level, entails keeping everyone informed & involved. On a more complex note, Ms. Zayed believes employees should be allowed to participate in the company’s strategy planning sessions, offer feedback and be shown that their input matters.

„You are on this planet for to give a sense of reason to your life. Create a healthy life-work balance and work on constantly developing your skills. If you’re always at the forefront of knowledge, you will fit any scenario & match any background. Do things differently – don’t go breaking rules; instead try to make new ones, improving the old.”

For example, if the Strategy Team does not want to spend days crafting the final plan, only to have people misunderstand it and reject its premise, they need to be open towards criticism & negative opinions from the get-go. Be persistent, be determined, stay focused on the task at hand, let people express their thoughts. If you feel that criticism stems from a lack of understanding, coach those in need, don’t just brush this off as meaningless busywork.

By removing any obstacles at the strategy’s inception point, you will ensure its goals, milestones and objectives are attainable, on top of having actual support from everyone.

If communication is not done behind closed doors/sessions, everyone is in the loop and people are allowed to give their input, you won’t have chokepoints midimplementation.

Before we ended our interview, she told us that it’s even easier to understand her mindset, by explaining how she goes about managing her budget, as part of her personal performance measurement.

Ms. Zayed plans her activities for the whole month and keeps things as simple as possible, with a back-up. If A doesn’t work, she still has B, C or even D. However, no matter how difficult a challenge might be, she never gets upset.

A new hurdle simply means trying to find a new solution, which might mean changing something small or completely altering your view. Whatever it may be, keep your head up high and always think of how you can make the best of a bad situation.

MARCH 2019

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GO PREMIUM

PERFORMANCE REPORTING

EXCELLENCE IN PERFORMANCE REPORTING: THE NEW YORK MAYOR’S PERFORMANCE REPORTING MANAGEMENT REPORT BORBALA PENTEK reporting in public P erformance institutions is not an innovation anymore,

but rather a great method through which these entities promote efficiency and at the same time, responsibility towards the general public.

The New York’s Mayor’s Office understands that and has set out quantitative statements for the objectives they aspire to achieve, overseeing and presenting their subsequent results through performance indicators, thus solidifying its commitment to transparency and accountability.

The biannual Mayor’s Management Report (MMR) presents the major accomplishments registered by the State of New York in the 2018 Fiscal Year, structured in agency chapters.

The Structure of the Report Each agency chapter contains sub-chapters that present the institutions and departments contributing to the achievement of the objectives and reporting indicators.

For example, the chapter Public Safety and Access to Justice focuses on sub-chapters such as the New York City Police Department, the Fire Department, the New York City Emergency Management, the Department of Correction, etc. each of them having their own objectives with performance indicators associated with them.

Out of all these, today we’ll be taking a look at the New York City Police Department, which states its mission as: “To enhance the quality of life by working in partnership with the community to enforce the law, preserve peace, reduce fear and maintain order”.

31 MARCH 2019

In the Management Report, the objectives through which they plan to achieve their mission are the following:

SERVICE 1 - Manage public safety programs related to criminal activity.  Goal 1a - Reduce the incidence of crime.  Goal 1b - Prevent terrorist attacks.  Goal 1c - Respond to police emergencies quickly.

SERVICE 2 - Manage public safety programs related to traffic safety.

 Goal 2a Reduce the incidence of traffic collisions, injuries and fatalities.

SERVICE 3 - Manage public safety programs related to quality of life.

 Goal 3a Reduce the incidence of quality-of-life violations.

SERVICE 4 - Ensure courteous, professional and respectful interactions with the community.

 Goal 4a Improve police/community relations.

PERFORMANCE REPORTING

When it comes to their first goal, “Reduce the incidence of crime”, the Department follows through with their premise through Key Performance Indicators: New York City remains the safest large city with the lowest rate of crime per capita among the 10 largest U.S. cities.

However, in the 2018 Fiscal Year, the presented indicators show there are some problematic areas as well: murder increased by 1% compared to the 2017 Fiscal Year, while forcible rape also increased, by 17%.

Best Practices and Recommendations Some of the best practices that we noted about their report are the following: 

 

Targets and trends are presented, as well as the desired direction of development for each indicator Critical indicators are presented with a star designation The historical data included in the report allows for comparison of actual performance to past performance

32 MARCH 2019

EMPLOYEE MANAGEMENT

Another best practice in the MMR is that the most important indicators in the report are represented in a graph format, through which one can easily spot the status and progress achieved.

For instance, when reporting on the framework of Public Safety and Access to Justice, the Department of Correction presents two indicators in graphs, as follows:

Besides tables and graphs, there are descriptive parts associated to each agency chapter, department, service and goal. Furthermore, there is a section dedicated to noteworthy changes, additions or deletions.

This section provides miscellaneous information on KPIs, such as:    

New calculation formulas New data sources New indicators introduced to strategic goals Indicators no longer measured

In terms of improvement, one way to go about doing it is to use symbols (#, %, $) in front of each Key Performance Indicator, to ensure efficiency and eliminate redundancy.

However, the report can be an example for others to follow, in providing the means for citizens to evaluate a public institution’s performance.

12000

8000

4000

0

These KPIs contribute to Goal 1a, Ensure the security and safety of inmates in DOC custody, under service 1, Provide a safe and secure environment for inmates, staff and host communities.

33 MARCH 2019

Besides the abovementioned best practices, it is especially important that the final material represents collaborative effort several entities, with their objectives and progress in alignment, not just one or institutions.

the o f

and t w o

EMPLOYEE MANAGEMENT

EMPLOYEE MANAGEMENT

5 PRICELESS BENEFITS OF WORKING IN A SHARED SPACE IRIS MATUBIS

T

he shared economy is a model that has come of age since Airbnb, Uber and Alibaba. We entered into a collaborative consumption era, which allowed us to purchase just what we need, without the expendables.

When it comes to corporate needs, coworking spaces or shared offices are a costsaving solution for small-scale entrepreneurs, freelancers, remote employees and even students. Functioning similarly, these don’t just present an economical solution to commercial rent, they generate benefits money can’t buy.

Growing personal and professional network Being surrounded with like-minded people, the possibility of making friends and developing business contacts are greater in a shared space. For freelancers or remote employees, this is a good avenue to keep 34 MARCH 2019

a watchful eye on who can be a potential supplier, venture capitalist, future partner, client, or even employer.

The tech industry is still struggling to gain better access to talent; shared offices might just be the next avenue they should further explore.

The co-working community is not all business. Shared amenities such as lounges, board games, Xbox, ping pong, pool or foosball tables enhance engagement among co-workers, which is a good determinant for social health.

Remote employees and freelancers can find solace in co-working offices, together with like-minded individuals who respect their co-workers the way they want to be respected.

Mitigating feelings of isolation or loneliness, it substitutes the lack of organizational presence for such professionals.

Focus and Productivity Compared to working from home or a coffee shop, a co-working office mimics workplaces more accurately. The exposure to visual distractions is higher in coffee shops, where the environment is out of one’s control, or at home where you are tempted to do many other things than work, compared to co-working spaces where everyone has one common goal – to finish some work.

Distractions come in different forms. It is the little things such as chores, looking for an outlet to plug the charger, or hearing the expresso machine. Noise diversions aside, visual distractions can also take a toll on your focus, as the relationship between these diversions and productivity is strongly correlated.

EMPLOYEE MANAGEMENT

Co-working spaces eliminate these distractions as the overall atmosphere and ergonomics are modeled after a corporate office. You will be more inclined to get things done as you have only but a few hours at a co-working space, meaning not overstaying until after office hours.

This way, not only do you bolster productivity, but you also gain a sense of proper time management, albeit in a more compelled fashion.

Exposure to creativity Coaching and consulting require investment.

Working in a shared space allows you to easily reach out to entrepreneurs and crack a conversation with them.

Chit-chat in the lounges can turn into meaningful discussions, which you can draw lessons from. Finding out about the ups and downs of other people that provide real-life examples of how to run start-ups, manage people, develop a product or upcycle an old piece of furniture are just a few things you might pick up while engaging in a friendly chat.

The diverse, yet like-minded people who use shared spaces tend to generally be from different walks of life that can inspire you, professionally or personally.

Aside from your co-workers, most coworking office interiors are designed to spark your creative mind. Plants, green surroundings, white spaces, perfectly crafted wallpapers, hammocks and other things you might find there are meant to trigger your creativity, to light up the spark you need to come up with innovative solutions for your customers, or maybe even for your own personal problems.

35 MARCH 2019

Collaboration For remote employees, not having schedules where you have to physically meet may hinder the full potential of your professional collaboration. Meeting once in 6 months for a project can be cut down to half if there is proximity amongst team members.

Moreover, the very aspect of hanging out together during breaks can contribute to one’s productive engagement.

For example, lunches together can prove to be an avenue for healthy brainstorming sessions or building trust among colleagues.

That being said, collaboration is not only for those working at the same company.

Co-working spaces also open doors to B2B collaboration for start-ups, entrepreneurs or freelancers.

If you are to explore a more advanced setup of co-working spaces for businesses, corpoworking spaces and collaboration hubs already exist. The former operates as one company’s own co-working space, where employees can feel more relaxed, while the latter aims to bring together a particular group of people in the same space to forge, ideate, experiment or create new concepts.

Events One of the priceless benefits of co-working spaces are the countless events that can be hosted within them. Events don’t have to only be social gatherings of sorts; they may very well be spoken word poetries, culinary meetings, PechaKucha nights, and other experiences that create a cozy ambiance for people to share opinions or hobbies.

This is a great way to break barriers and free

yourself from holding back those ideas that you’ve thought weren’t going to work or no one was going to listen to.

Co-working spaces definitely build the avenue to freedom of expression. However, what’s more to like about these spaces are the various events not only meant for fun, but for continuous learning in an entertaining manner.

For instance, celebrating failures instead of successes. For example, a community that encourages open discussions on failed experiences is a healthy way for people to grow on a personal and professional level.

Final thoughts While co-working spaces definitely bring great benefits in the form of financial relief to many employers, they bring even greater benefits by acting as stimulus hubs. For many employees, when given the chance to work on a project surrounded by people whose presence they enjoy, work becomes so much more than just an array of tasks.

It transforms into a fulfilling experience, as you band together with your co-workers, give 110% for a project, in order to deliver the best possible results, not only because of the eventual payday, but because you’re in great company – and you wouldn’t want to let anyone down.

PORTRAIT

PERFORMANCE LABS

THE GO-TO SOURCE FOR PERFORMANCE IMPROVEMENT IN UTILITIES

The KPI Institute has worked extensively in helping Utilities professionals from around the world to measure and improve their performance. This expertise is comprised in all the Utilities related resources gathered in an exhaustive performance lab.

WHAT MAKES US UNIQUE? Through our researchers expertize and flexibility we can provide all our customers with:

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EMPLOYEE MANAGEMENT

GEN Z: HOW THIS NEW GENERATION IS CHANGING THE WORKPLACE LAURA GAYLE

G 1996 and 2010, following the millennials

eneration Z includes people born between Like millennials, though, they prefer a modern office space, constant connectivity, flexible work (whose generational boundaries depend on the hours, and casual dress codes. source, generally spanning the mid-1980s to late Millennials want to live close to work with 1990s). These groups have both similarities and easy access to public transportation. Gen Z differences that employers need to understand is likely to prefer the same. Large employers before the first wave of Gen Z college graduates should consider partnering with cities and hits the job market. developers to help these generation gain access to apartments close to the office.

This very aspect is the first difference, since Gen Zers value formal education less than their predecessors, preferring to learn the skills they Shifts in Core Values need on the fly — preferably via YouTube.

Generation Z tends to be more competitive Millennials were digital pioneers, the first than millennials. They value salary and generation coming of age in the world of cell advancement but are less likely to have finished phones and 24-hour connectivity via electronic college. This entrepreneurial generation wants devices. Gen Zers are digital natives who suffer to help shape their company’s culture and road phone separation anxiety yet value face-to-face map for success. communication.

To harness that enthusiasm, corporations will need to build a pervasive culture that’s in tune Having watched their predecessors grow up, with what Generation Z employees highly enter the workforce, start their own businesses, value, including: and begin to shape the marketplace, members of Gen Z can provide special insight for 1. Privacy. Younger teens don’t like being tracked companies into the minds of millennial clients, and tend to be more reserved on social media employees, vendors, industry leaders, and other than their older counterparts. The challenge for business partners. You just have to understand employers will be winning their trust in order to them first. facilitate an open, friendly culture in the office.

Gen Z vs. Millennials in the Workplace According to Inc. magazine, 75% of Generation Z would like a job where they could perform different roles within the same workplace.

Meanwhile, millennials, shaken by economic and political turmoil now place a greater value job security than in previous years, according to Deloitte’s millennial survey.

Employers planning to hire Gen Z college grads will have to provide variety and interesting work to earn the loyalty of the latest generation.

37 MARCH 2019

2. Entrepreneurial. 72% of Generation Zers still in high school want to own a business. Slightly more jaded than millennials, this group takes a

little more convincing to set them in motion, but once committed to a goal, they understand the value of hard work.

3. Multi-tasking. Gen Z kids are expected to take multi-tasking to new heights: Where millennials prefer two screens open at once, Generation Z kids prefer five. They’re likely to be scanning the room while checking their phones while holding a conversation with you.

This trait could net additional productivity but also may require some checks and balances in term of office policies to ensure everyone stays focused on the job.

4. Hyper-aware. Generation Z experiences “4D thinking,t” thanks to their pervasive digital immersion. Overstimulation from birth has set their minds are bouncing in so many directions, these post-moderns have learned to become hyper-aware of what’s happening around them. This can be a boon for employers looking for detail-oriented quick starters.

5. Technology-reliant. Millennials became addicted to tech as they grew up, but Generation Z started out that way. Technology is as important to them as air and water. This can be a concern if employees spend too much time on social media and not enough on actual work, so this group may require stricter policies regarding internet usage for personal reasons.

EMPLOYEE MANAGEMENT

Modern Offices Here are some tips for office transformations that can help companies recruit and retain millennials while preparing for the next generation to fill in the ranks.

even more fluidly — a fact which should appeal to millennial business owners, as these two generations can relate to each other more effectively than older groups.

Gen Zers and millennials both value a collaborative workplace that’s fun yet productive. Quiet areas and noise-canceling headphones can allow employees to concentrate on complicated projects without giving up the convenience, creativity, and camaraderie of more open workstations.

Digitally tethered millennials and Gen Zers can benefit employers in the following ways:

Modernized offices with open floor plans, shared worktables, and tons of tech is bound to attract Gen Z employees. In addition, both they and Gen Y crave natural lighting, informal meeting areas, comfortable office furniture. Hopefully, dark cubicles that hinder communication and create a stifling work environment are soon to be a thing of the past.

Incorporating IoT technology in the workplace, such as smart desks that signal when you’ve been sitting or standing too long, can keep workers alert and healthier, and may even reduce obesity.

Ergonomic keyboards, chairs, and desks, and the advent of voice-controlled apps and devices should help prevent repetitivemotion injuries.

Amazon’s Alexa for Business and similar technology could revolutionize work as we know it, allowing workers to multitask via voice to update and manage calendars, data requests, and assignments. It can also streamline conference calls, and report IT requests and facilities issues. The challenge for designers is discerning how to use this technology effectively in an open office where cross-talk can be disruptive.

Connecting to Millennial Business Owners Millennials were the first generation to share characteristics with peers around the world as the Internet transcended borders.

Generation Z is composed of global citizens who communicate with international peers 38 MARCH 2019

Modern businesses are smart to take advantage of Instagram, Facebook, and other social media to improve business relationships. Millennials are comfortable in this area, but Generation Z was born into a world where tech savvy is a matter of survival. Hiring employees from both groups can help companies stay better connected to millennial business partners and clients.

Millennial clients prefer companies that intuitively employ technology to enhance customer experience, so millennial and Gen Z thought leaders and account managers

can be extremely effective in forging lasting relationships with millennials inside and outside the organization.

The millennial buyer gets much of their information through blogs, videos, podcasts, and social media, which makes it harder to attract and retain their interest if you don’t follow relevant industry information in the digital space.

Understanding the core values of Generation Z and how they can help or hinder relationships in the office is a valuable exercise for all employers.

This new generation promises to help formulate a more connected workplace in term of technology and relationships, and can provide special insights into the future of the marketplace and workplace.

EMPLOYEE MANAGEMENT

HOW TO ENCOURAGE EFFECTIVE TEAMWORK WITHIN YOUR DESIGN DEPARTMENT JENNA HILTON

Are you leading a team of designers towards a common purpose or goal? When there are lots of different designers working on one project, or even designers from different departments and different countries across the globe, then it can be quite difficult to streamline the process.

This is essential however, as if a few members of your creative team aren’t communicating effectively or following correct procedures, then the entire end product could be impacted as a result. As the leader of the team, the responsibility therefore rests on you.

If you’re not sure how to get your team to cooperate, you have come to the right place.

While not a comprehensive guide, here are 4 simple tips that you can implement for starters, if you want to encourage effective teamwork no matter where your team of designers are located.

Put A Strong Structure in Place When there are lots of people working on one project, it is important that you have clear communication in place, which will provide everyone with a structured approach in a fast-paced industry.

Everyone should be aware of what the common goal is and this is what will add value to the company’s long-term strategy.

Having this strong structure will ensure that the right teams of designers are being brought together and this will also contribute to reducing any conflict between the different teams.

39 MARCH 2019

Streamline the Design Workflow having people trying to compete with each When you are trying to get into the finer details and specifics of how things will get done within in a project, it can sometimes get lost in transition, amongst the huge stream of daily tasks. As a team, you need to look at different ways you can ease the design handoff, provide feedback, share information and make the whole process a lot more efficient so you are not wasting valuable time.

There are many great tools out there that you can make use of, such as the MCAD Collaboration Datasheet. Some of the amazing features and benefits that this provides is real-time communication between teams, no interchanging of file formats, a private and secure collaboration server, as well as the same type of design environment, all of which will massively help designers in the PCB process.

Encourage Knowledge Sharing Not every designer will be the same. They will all have their own personal strengths and then other areas in which they can learn and grow. As the team leader, it is your responsibility to maximize everyone’s contribution and build a culture focused more on sharing knowledge, rather than

other.

Encourage your team to share their own tips on how they have improved their working process. This does not have to be a formal event and can simply be a casual, but informative discussion. This is also a great way to reflect on what has worked, and what hasn’t, during your design process.

The Printed Circuit Board industry – PCB for short, is constantly changing. Thus, making adaptability a natural characteristic of your team will only serve to benefit them in the long run.

Implement A Design Critique Process To have a well-rounded design process where the team works together effectively, you need to have a process in place for design critique. During this process, you should provide specific feedback, be clear with what you are looking for, and the aim should always be to find solutions.

With the aforementioned tips in mind, you should have gained a first level understanding of how you can motivate your team to work more effectively. You’ll find that most workers just need a streamlined process to follow, so once you have that in place, ensure that communication doesn’t drop off and you’ll be on track.

EMPLOYEE MANAGEMENT

TOP 8 CHARACTERISTICS OF HIGHLY EFFECTIVE MANAGERS JAMES CUMMINGS

H have the best team, with happy members, ave you wondered why some managers

who meet deadlines and surpass project goals while others don’t? The secret ingredient is the attributes they have.

As a manager, you have to develop the leadership qualities that today’s highly effective managers have. Without further ado, here are the top 8 traits that set apart the outstanding manager, from the average one.

1. Inspire greatness To be an effective manager, you need to inspire your team members to be at their best and get results. You should focus on each individual, noting their strengths and weaknesses. Put your team members in positions where their strengths can be utilized to the utmost while building their weaknesses.

In doing this, you ensure each person is striving for excellence. Infuse the desire to make a 40 40 MARCH 2019

difference in your employees. Take them through leadership development training so they can make an impact, lead mini-projects, and run with the vision of the organization.

2. Bring Experience Great managers have experience leading others.

Experience is a wonderful teacher. It teaches you how to handle a project next time or build a working relationship with your team members.

Efficient managers don’t wait for experience to happen by chance. They seek ways to gain experience so they can become better leaders.

If you don’t have experience, step up to lead when you see the opportunity.

Volunteer for management roles in and outside your industry. You can manage, organize events, or you can raise funds for an organization. You can build the attributes needed to become a great leader while volunteering.

3. Be Honest and Transparent A good manager is an embodiment of honesty.

Being transparent about how you handle your business will earn the trust of your team members. Make sure you’re always honest about all your efforts and own up to your mistakes.

This will create employee loyalty and enable your supervising executives to lead with confidence. Also, an equally important point of reference is to be transparent with your clients.

As you may expect, this will have the same effect as being transparent with your employees.

4. Harness Creativity Creativity separates the mediocre managers from the great ones. It enables a project to be executed perfectly and gets customers interested in your product. Creativity adds appeal to the work experience.

EMPLOYEE MANAGEMENT

As a manager, creatively working out the results of your project and ensuring you handle each task in a unique manner will attract the attention of your target customers. It will also spur your employees to be innovative in their own right.

5. Work towards the Big Picture You should understand the goal of the organization. Be a great visionary and propel your team forward.

While it’s important to work on the details of a project, focus on the big picture so you can achieve your goal and pull the different parts together into a whole.

Carry your employees along with your strategic view of the project. This will help them to make meaningful contributions to the project and into the vision of your organization. It will also nurture a feeling of relevance, since they get to know how their work fits into the overall goal of the company.

6. Communicate Effectively Productive managers are effective communicators. They use words, text, and images that speak to people, give them a clearer understanding and help them take action. So how can you achieve the same result?

Start with your employees and team members.

They should understand their job roles, expectations and what they are to contribute to

a project. Listen to their input, their positive and negative criticisms and use them to improve your projects.

Work with them so they can produce maximum results. Tailor and adapt your communication to the situation at hand. The way you communicate with employees should differ from how you communicate with the board of directors or clients.

Ensure the board directors can understand the specific goals of your project/organization and how they will lead to growth and increased market share.

Ensure your clients or customers know the personal benefits of your product and why you do what you do.

7. Lead by example It’s not all about giving orders and expecting them to be carried out. An excellent manager leads by example and you should too.

Work side by side with your team and show them how to handle tasks.

When you create a deadline for a project, you don’t just leave it to your subordinates to handle, but work alongside them. Answer their questions, guide them through the details and lead your team from the start to the end of the project.

8. Seek knowledge The world is constantly changing and new ways of doing things keep showing up daily. The only way to keep abreast of situations is to upgrade your knowledge.

Managers distinguish themselves from their peers by constantly upgrading their knowledge base, by finding new things to learn and apply in their day-to-day tasks.

You should ensure that you’re constantly gaining new knowledge on how to take your company forward. One way that has traditionally yielded consistent results is the traditional route of getting a business degree or a master’s degree in business development, leadership, project management, or human resources. You’re bound to find some degree of success with that investment, depending on your choice.

Moreover, do not be a lone learner. Encourage your employees to learn new skills and reward those who update their knowledge base. That way, your products, and company will stay relevant through whatever market changes occur. In addition to this, more people with better knowledge equals more novel product or service developments.

When you have these leadership qualities, you’ll excel in whatever career you choose and bring value to whatever team or company you’re in.

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41

INNOVATION

INNOVATION

4 ANALYTICS PREDICTIONS TO LOOK FOR IN 2019 GLEN RABIE

o

ne of the greatest facets of my job at Yellowfin is the opportunity to continually scan the industry and see new innovations develop.

Each year, we see many technological advancements and products come to market that influence the way we consume data and enhance the way we work with analytics.

With this in mind, I predict we’ll see four major trends in the upcoming year. Here’s what to watch for in 2019.

1.

More Automation

We’re beginning to notice a shift in the analytics industry. Technology is changing the way organizations receive information – leading to more and more jobs being automated.

For BI teams to deliver more value to their business, they need to spend less time preparing data and more time delivering context. Thanks to technology, this will soon be possible. We’re close to the point where automation will be able to take the heavy lifting out of analytics.

42 42 MARCH 2019

INNOVATION

2.

Analytics Everywhere

We’re finding that business users don’t really want to work with dashboards. Dashboards push information to users with the assumption that they will take the time to analyze the data to make decisions. However, in reality, users don’t want to spend time sifting through data.

While we, as vendors, recognize that dashboards are not always the ideal way to communicate analytics within an organization, it can be difficult to break from something that’s been in the industry for 30 years.

Historically, vendors have expected users to login to their dashboard to consume data.

However, we’re starting to see a change in the industry. Some vendors are disaggregating their products, allowing content to be pushed to where users want and need to consume analytics.

Everyone uses multiple devices and wants a different experience with each device. The way we access information on our mobile devices is different than that of our laptops.

For example, many people use Siri or Cortana on their iPhone, but not on their laptop.

With this in mind, I think we’ll see more vendors redesigning and redefining what analytics look like on a mobile phone versus the desktop. In the past, the desktop experience has simply been replicated on mobile devices, but this hasn’t been effective.

Vendors are now approaching mobile BI differently, as their understanding of the mobile experience has become more sophisticated. I expect Mobile BI 2.0 will redefine the entire delivery interface.

4.

Data Storytelling Tools

A new role is arising in analytics, known as the Data Interpreter. As the title suggests, this As I talk with people about how they person interprets data for one’s business. The consume information, I see a clear pattern. Data Interpreter role has come about because

3.

Mobile BI 2.0

43 MARCH 2019

business users are realizing that dashboards don’t deliver everything they need, such as a narrative or context around the data it delivers.

One of the big questions surrounding this role is what tool sets these Data Interpreters will use. Some companies are already building this capability internally. For example, I recently saw one of the leading global advertising agencies build their own platform – giving them the ability to tell stories with data. This shows the need for a narrative driven BI tool.

It’s safe to say we’ll be seeing big developments in this environment as this year will progress.

The need for data storytelling tools will drive innovation in the industry like never before.

Each of these trends are already being thought about in the BI space, and I think 2019 has the potential to be a monumental year for analytics. As we constantly seek to drive innovation and better the way we consume analytics, 2019 is a year to look forward to.

43

INNOVATION

WHAT DOES THE FUTURE OF WORK LOOK LIKE?

ANNA KUCIRKOVA

W gatherer, farming ancestors worked to

hen this world began, our hunter-

live. Not a single iota of energy was wasted in a day. Wasted time equaled starvation.

In this new century, our world is reaping the fruits of the industrial revolution, the robotics revolution, and the technology revolution. Just as our ancestors might have wondered what the future held in working, we are living their future and wondering about our own.

So, what exactly does the future of work look like?

The Current Fluctuating Work Environment The worlds of industry, commerce, healthcare, education, and many others are fluctuating, which is causing considerable anxiety. Labor-market opportunities between 44 MARCH 2019

high- and low-skill jobs, unemployment and underemployment, stagnating incomes for a large proportion of households, and income inequality demonstrate that the job market is already trending toward the future.

Automation and artificial intelligence promise higher productivity, economic growth, increased efficiency, job safety, and convenience. But these technologies also have a broader impact on jobs, wages, skills, and the nature of work itself.

Lots of tasks that workers handle today could be automated. Simultaneously, jobsearching sites like LinkedIn and Monster are altering and increasing the ways people look for work and how companies recruit talent. Freelance work has become very enticing with digital platforms like Uber, Upwork, and Etsy making working for yourself much easier.

Another newer trend, especially in tech companies, is remote and virtual employees.

This not only allows things to get done around the clock, without commuting, but also provides companies with employees who have hard-to-find skill sets and is a way to accommodate employees who don’t want to move to work for the company.

These shifts in how jobs are done as well as how talent is recruited create both uncertainty and benefits. One of the biggest questions is what role automation will play.

Automation Is Coming Through current technology, about half the tasks people are paid to do could hypothetically be automated. It is encouraging to note that less than 5 percent of all jobs consist of tasks that could be completely automated.

INNOVATION

However, in about 60% of professions, at least a third of the tasks could be automated, which could lead to workplace transformations and redefinition of job duties for workers. Taking a look at current technology and estimating how quickly automation could replace human workers, only about 30% of hours worked globally could be automated in the next decade.

What Job Sectors Will Sustain or Grow Their Numbers?

Displaced workers are easily identified, but new jobs that are created due to advancements in technology are less obvious and exist in different sectors and regions.

Experts estimate that, globally, 250 million to 280 million new jobs could be created due to rising incomes on consumer goods, The impact of automation on employment with an additional 50 million to 85 million depends greatly on occupation and job title. jobs created in health care and education Automation jobs would most likely include spending. physical ones in predictable surroundings, like making fast food or operating factory In 2030, researchers estimate there will be machinery. at least 300 million more people aged 65 and older than in 2014. As people age, their Data collection and data processing are two spending on healthcare and other personal other jobs that have the potential to be done services increases, taking their consumer better and faster with machines. dollars out of retail and luxury purchases.

This will increase new demand for doctors, This particular AI innovation could nurses, and health technicians, as well as displace hundreds of workers in mortgage home-health aides, personal-care aides, and origination, accounting, paralegal work, and nursing assistants. There could be 50 million back-office transaction processing. to 85 million new jobs in healthcare by 2030.

And let’s not forget the jobs created by the There are, of course, jobs that absolutely development and implementation of new require human labor forces, such as technology. Spending on technology will management, scientific research, and double between 2015 and 2030. About half customer service. So, will the displaced the spending would be on informationworkers have to change careers to keep a technology services. This could create 20 job? million to 50 million new jobs by 2030.

45 MARCH 2019

Even with substantial growth in technology and AI, there are still jobs that require human labor: architects, electricians, engineers, carpenters, and construction trades. The world is also increasing its interest in renewable energy, so there will be more jobs in renewable energy, like manufacturing, construction, and installation of new energy options.

So, it’s possible for a former auto factory worker from Detroit could be retrained quite efficiently in manufacturing for renewable energy. But, what would that training entail?

Job Training for the Future To make sure the human labor force can accommodate newer jobs, people must be prepared to learn new skills. According to the Pew Research Center, „[automation and AI] are taking a bite out of manufacturing; automation, robotics, algorithms and artificial intelligence (AI) have shown they can do equal or sometimes even better work than humans who are dermatologists, insurance claims adjusters, lawyers, seismic testers in oil fields, sports journalists and financial reporters, crew members on guided-missile destroyers, hiring managers, psychological testers, retail salespeople, and border patrol agents.”

INNOVATION

People will not just train for the jobs of the future, they will create them, and technology is ready and waiting. Pew Research conducted extensive polls to find out what the members of the current job market see for the future and what will be some of the main themes: THEME 1: The training ecosystem will evolve, with a mix of innovation in all education formats The next decade will bring a diversified world of education and training options where various entities design and deliver services to those who want to learn. They expect that some innovation will be aimed at emphasizing the development of human talents that machines cannot match and at helping humans partner with technology.

They say some parts of the ecosystem will concentrate on delivering real-time learning to workers, often in formats that are selftaught. Also, more learning systems will go online. Workers will be expected to learn continuously. Educators have always found new ways to train the next generation of students for jobs of the future.

THEME 2: Learners must cultivate 21st century skills, capabilities and attributes Will training for skills most important in the jobs of the future work well in large-scale settings in upcoming years? Improvements in education are expected to continue. But, many of the most vital skills are not easy to teach, learn or evaluate in any educational setting.

Those skills, capabilities and attributes include emotional intelligence, curiosity, creativity, adaptability, resilience and critical thinking. The skills needed to succeed in the future are curiosity, creativity, taking initiative, multi-disciplinary thinking and empathy, skills that machines cannot yet demonstrate.

THEME 3: New credentialing systems will arise as self-directed learning expands While the traditional college degree will still be a necessity in the near future, more employers may be willing to accept alternate credentialing systems because traditional 46 MARCH 2019

college is becoming less popular. Online learning is the education of the future.

Employers will also begin to consider experience and skill sets over education. It is likely that employers will appreciate a college degree, as it does demonstrate a willingness to attain goals with determination and discipline.

However, those characteristics can also be demonstrated in the workplace. Deeply detailed reference letters may begin to carry more weight than a college degree.

THEME 4: Training and learning systems will not meet 21st century needs by 2026 Jobs of the future may change too quickly to allow today’s workers to get up to speed in time to fill positions. Many workers are unable to take on or unwilling to make the self-directed sacrifices they must to finetune their skills.

This leads educators to emphasize STEM learning (Science, Technology, Engineering, and Math) in our public schools. Teachers and politicians are working to ensure the

next generation is well-trained in technology in the hopes of staving off a job market starving for qualified candidates.

THEME 5: Technological forces will fundamentally change work and the economic landscape There is a loud cry in the job marketplace that advances in technology will overtake the time it takes to train new people. Many see a society where AI programs and machines do most of the work.

There is no doubt there will be many millions more people and millions fewer jobs in the future. But, if industry does a good job increasing skills training, technology may not quite take over at the rate many see as inevitable.

Conclusion Regardless of automation and AI, there will always be a need for a human labor force.

While robots and smart computers can take over some menial tasks, as well as cognitive driven tasks, humans will be required to maintain and program our artificial workforce.

STRATEGY

STRATEGY

EFFECTIVE WAYS TO GROW YOUR STARTUP BUSINESS IN 2019 ROBIN SINGH reating and sustaining a business is

important to find that sweet spot between your skill set and your interests.

along the way. As an entrepreneur, you should devote all your time, energy, and resources to your business if you really want it to succeed.

If your interests don’t line up with your knowledge, you don’t have to give up immediately. Give yourself time to educate yourself. You can rely on online training software to improve yourself. Learning Management System or LMS software can be your closest ally. Utilize educational courses and training programs that such systems provide to better yourself.

C a challenging task. You need to be able to tackle all the obstacles and risks

There are a couple of things you should keep in mind if you want to grow your startup faster than your competitors. In today’s article, we’ll be going over some of them.

Find Your Passion If you’re passionate about your business idea, nothing will be able to stand in your way. Passion is the driving force behind many things, and that’s true for business as well. Having said that, keep in mind that being passionate about a subject doesn’t make you an expert in it. So, it’s

47 MARCH 2019

Do Your Research Do you want to have a small familyowned restaurant, or are you looking to build a large enterprise? Does the market make sense? What’s the potential of your business? If you’re thinking of growing your startup in a highly competitive and saturated market, you’ll meet stiff challenges.

It’s best to find a niche, and offer people something that they don’t already have.

Before you commit, research the market and your targeted clients. Get as much information as you can about the field that you’re interested in.

Document Everything Having a document of how you do everything in the beginning stages of your startup is the key to your future success.

What are your recruitment processes, basic tasks, day-to-day activities?

Having everything in written form will make training and retraining easier, and you’ll have proof of your improvement and development. LMS software can help you with documentation, and you can use it for training purposes for your employees, either old or new.

47

STRATEGY

You can make use of free marketing on social media. Build a fan base on Instagram, Facebook, and Twitter by communicating and staying consistent with your followers. Post often, and keep your content interesting. For social media platforms, the best option is to put together a few pictures or other content in advance, stack them up, and post at least once a day.

Be Ready to Change The startup phase includes a lot of rapid changes, so you need to be flexible and ready to adjust. Just because you started your business with a single idea in mind doesn’t mean it has to stay that way forever. You should grow and develop alongside your business.

Stay open-minded and be ready to diversify. You could have an amazing startup idea that people really respond to, but with time your customers’ needs and desires evolve, and if you want to stay relevant and on top, you need to provide what they want.

Educate Your Employees You might have the right skill set to steer your startup, but how about your employees? Of course, you should pick your employees carefully, and keep your eyes wide open during the recruitment process. If you’re in a small niche, you might need to dedicate some extra time to educate your employees.

Online training software makes that so much easier for you. With LMS software, you can create your own courses that suit the needs of each learner. You can plan, create, and deliver your own e-learning

Final thoughts

content, and track your employees’ progress as they learn.

Creating a business is one thing, and keeping it afloat is another. The latter is where the real challenge lies. You really need to dedicate all your time and energy into it because no one else will. There are no hacks that will magically transform your business overnight; it’s all about hard work and your mindset.

Make use of technology as you develop your business. It can take the load off your shoulders and make education and training much simpler.

Offer something valuable to your audience, build a market base, and monetize it. You might not make six figures in your first year, but patience pays off ultimately.

Customer Service

To sum up, the most important things to keep in mind are:

Your relationship with your customers is what makes or breaks your startup.

Connect with your clients, listen, and understand them. It might take some extra resources and time, but excellent customer service makes for satisfied clients and a positive word of mouth.

Word of mouth is what can make your business get off the ground. It will attract new clientele, and make the old customers want to come back. This is especially true when you devote your time to your clients. It will inspire greater loyalty and dedication to you and your business.

Marketing,Marketing, Marketing Many startups overlook the importance of marketing and branding because of their high costs, but having a good marketing campaign from the start will have an enormous effect on your business. Your marketing doesn’t even have to be that expensive.

48 MARCH 2019

  

Your passion Your skill set Your customers

Having a business that you love will make you want to fight for it. Having a good skill set will give you high quality, and having loyal customers will inspire others to join you.

LIFESTYLE

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49 MARCH 2019

PERFORMANCE MANAGEMENT IN 2015

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STRATEGY

HOW TALENT MANAGEMENT BRINGS DISCIPLINE AND DATA TO HUMAN RESOURCES DEEANA RADLEY Talent Management

M

ost would agree that a well-planned business strategy is necessary for an organization to achieve desired business results.

Business leaders in the highest-performing companies understand that, and while a detailed business strategy is necessary for successful organizational performance, it is not sufficient.

A business strategy is merely a framework, a roadmap, an aspiration. A business strategy can be fully executed only if that strategy is directly aligned with an equally well-thought out talent management strategy.

Successfully implementing the business strategy is achieved only when the talent management strategy succeeds in getting the right people, in the right job role, doing the right work.

50 MARCH 2019

Three guiding principles serve as the foundation of an effective talent management strategy: 1. Business Strategy Talent management must begin the context of the business strategy. The business strategy needs to clearly articulate what the mission and objectives of the business are.

It needs to declare not only how the organization will effectively compete in the marketplace, but also how it will differentiate itself in the market by establishing a competitive advantage.

2. Human Resources Leadership Human resources (HR) should provide the talent management thought leadership within the organization. HR should not be accountable for the alignment of the business strategy and talent management strategy.

It should, however, be responsible for delivering the processes, tools, and guidance to execute an aligned and integrated talent management These organizational capabilities, or core strategy. HR must be respected and have competencies, become visible by answering deep expertise in administration, change the question, “What must we be better at doing management, organization leadership, and business strategy and consultation. than our competitors?�

STRATEGY

3. Seamless Integration All talent management processes need to integrate with one another with a singular focus on alignment with the business strategy.

Recruiting must be effective at bringing those with the right skills, knowledge, and attributes that support the strategy, into the organization.

Performance management keeps employees focused on doing the right work in the right way. Compensation models and strategies should not be a cookie-cutter approach across the organization.

Instead, the strategies support the concept that there are pivotal or critical roles that will drive organizational capabilities. It is essential to have (and keep) the right people in these highly valued roles.

Job valuation can serve as the basis of the compensation strategy. Learning and development initiatives should focus on developing the competencies that will support the business strategy.

The successful implementation of a talent management strategy requires the correct systems and strategic mindset combined with software tools that support all of the talent management processes that impact the entire employee life cycle. With the explosive growth of cloud-based

solutions, the market provides many options to organizations.

These may include the combination of standalone tools that focus on one aspect of human capital management (HCM) or a single solution that fully integrates all of the talent management processes. But implementing the talent management software solution without a clear strategy will achieve limited business results.

productivity, customer satisfaction, innovation, and financial performance.

The Academy of Management Journal published a study that found when talent management strategies align with business strategies, organizations experienced decreased employee turnover, and increased revenue, market value, and profits per employee.

Josh Bersin observed that those companies that have mature, well-established talent management programs experienced 26% more revenue per employee and 40% less voluntary turnover rate among their high performers than their peer companies. He also found a positive correlation between those companies that use talent management software and the overall quality of their talent management Business Results A well-executed talent management strategy programs. drives tangible business results. The Korn Ferry Institute reports that those companies that have Example of an Implementation of a effective talent management programs realize Talent Management Program measurable improvements in employee morale, Launching a talent management program often represents a huge cultural shift in organizations.

Previously, business leaders across the organization will have had their unique vocabulary and perspectives of what talent is, how to recruit for it, Likewise, a talent management strategy without the right supporting tools and technologies is destined for failure. Often, the implementation of software applications will create the impetus for new business processes across the organization that will support the talent management program.

Talent Management Practices Guiding Principles

51 MARCH 2019

51

STRATEGY

and how to manage it. As an example, one organization had as their management levels, managers, directors, vice presidents, and senior vice presidents. This organization reorganized quite frequently.

As a result, a manager who was promoted to the role of director before a reorganization often was demoted back to a manager under a new vice president after the restructuring.

The reason for this disruptive and demoralizing trend was that each leader had a different set of expectations and definitions of each management level. There

was no consensus as to what capabilities and competencies each level of management should possess.

This same dynamic presented itself in the recruiting and selection process. Each hiring manager had their subjective criteria as to what skills and competencies a successful candidate should have. Similarly, employees and managers made decisions related to investments in professional development based on individual preferences and choices with minimal organizational context.

Human resources championed the introduction of a talent management program to the organization. The HR team was careful not to own the program, but rather be the subject matter experts and consultants.

The team understood that if the perception was that this program is an HR program, it would become little more than an HR compliance exercise. HR provided the thought leadership and influence that enabled the executive team to adopt the plan as an organizational imperative.

The implementation of the talent management program and tools resulted in several indicators of its success: 1.

The entire leadership team was able to clearly articulate a shared understanding of the business strategy and the organizational capabilities that would be required to execute it.

2.

The leadership team reached a consensus as to what roles across the organization were the most critical to the business strategy.

3.

Teams created competency models that clearly outlines the competencies and capabilities required for those critical roles.

4.

Employees in those critical roles were rated and ranked based on the competency models.

5.

Consistent and rigorous recruiting processes were established to fill the critical roles.

6.

Development strategies were built based on the competency models.

7.

Teams created new compensation models to attract and retain top talent for the critical roles.

8.

The leadership team adopted a common vocabulary related to talent.

9.

Decisions related to talent were being made collaboratively used shared data that was captured using talent management software tools.

Just as organizations rely on business intelligence to monitor and manage the business strategy, talent management tools enable organizations to monitor and manage talent across the organization.

An effective talent management strategy brings discipline and data to not only the HR team but to all of the organization’s leaders. A strong talent management program that is a share priority will, invariably, drive significant business results.

52 MARCH 2019

STRATEGY

WINNING THE GOLIATH VS DAVID BATTLE WITH BIG BRANDS JAMES CUMMINGS

E who eventually comes out on top. Just

veryone loves the story of an underdog

like the biblical story of David and Goliath, small businesses want to believe that they too can compete with the big boys and win.

Believe it or not, the world is full of business upstarts that took on industry giants and emerged victorious.

In fact, it happens all the time. Not too long ago, Apple had the audacity to compete for market share with big industry names like IBM and Microsoft, and today they are one of the most admired businesses in the world.

What this proves is that it is possible for small businesses using certain techniques to battle with big brands and win.

So, how can start-ups and small firms take on big brands, with their bottomless pockets, and hope to succeed? By being able to adapt quickly and by taking advantage of the following strategies.

Identify your niche and stick to it Crafting a niche for yourself and sticking to it is the fastest way to succeed in the competitive business world. When you don’t have the resources for a wide variety of product options like the big boys do, the best solution is to identify one market that you can position yourself in and get as good as possible in that area.

Facebook didn’t set out to compete with Google for advertising market share; it started out by creating a social networking hub and got so good at it that people just had to advertise on it.

Even Netflix, now a household name all over the world, actually started out as an alternative to Blockbuster but got so good at filling that small niche that they can now compete against retail giant Amazon.

So, rather than trying to fight your way to the top (which will only help you get trampled faster), look for one product or service that creates a connection with your target market and focus on it. It will be easier to compete in the industry if you have a narrow focus.

Leverage on partnerships Two brains are better than one! It is easier to compete successfully if you are aligned with one or more forward thinking partners.

There are many medium sized, and even large companies actively pursuing partnership with small firms. These partnerships help the larger corporations gain a foothold in new areas of a market, new skills and new technology.

In turn, the small companies get the benefit of riding on the coat-tails of these bigger boys. Tech companies are often open to this system. A typical example is the 2014 strategic partnership between Uber and Spotify. This alliance had the advantage of helping Spotify close the gap with Apple’s iTunes, while Uber enjoyed the advantage of attracting a youthful audience.

Change the game It is unfortunate that lots of businesses are operating with old systems. Just because it worked for previous generations does not mean it will work today. You have to be willing and ready to identify the change you need and adapt fast.

53 MARCH 2019

STRATEGY

For instance, what are the current trends you are leveraging to promote your business? Are you aware that people spend as many as nine hours on social media platforms every day?

Mobile devices, apps and social media are some of the trends you can take actionable steps on. This is a veritable goldmine of opportunity just waiting to be harnessed.

There are options for protecting your business on State Insurance website, which you may want to give a look. You have the advantage of flexibility and agility that comes with a small size, so take advantage of it.

Use your size to your advantage

Equally importantly, what steps are you taking to ensure that you are providing the best customer experience possible? Do you have provisions in place to protect both your customers and your business from potential damage?

You may not know it, but the small size of your business can be used as a weapon to beat the bigger competition. David, with his small stature, was able to hear what people closer to the ground are saying, Goliath did not find it so easy.

What this means is that as a small business, you are in the best position to get close to your customers. You can really understand their needs and preferences, a vital key for growth in any industry. By paying close attention to your customers, you can significantly improve the way they interact with your products and services and, by doing so, create a highly personalized customer experience that the big brands will not be able to meet.

Truth be told, the big names have too many policies and structures in place that even if a customer related issue is discovered, it would take a long time to rectify it. Small businesses don’t have these constraints, you can roll up your sleeves whenever the situation demands it without worrying about your image in the industry.

Your small size makes it easy to adjust and alter your marketing strategy to suit the everchanging market needs of your customers.

You should be able to use your size and the resources available to you to your advantage, just as David did.

Believe in your ability No one sets out for a competition with the intention of losing. Those who train for a race expect to brush the tape. This is the David mindset. Imagine a five-foot tall boy standing before a giant, fully confident that he will make it out alive. As a small business, you need to have that kind of faith, the faith that you have the product or services that can compete favourably in the marketplace.

Even though the big brands have been there before you, if you really believe in what you are selling, it will be easier to sell. Never see your competitors as infallible, instead see that you have the potential to outperform them.

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LIFESTYLE

LIFESTYLE

MOST COMMON HABITS THAT ARE RUINING YOUR SLEEP PETER DAVIDSON

S throughout your life. Getting sufficient good quality sleep has leep plays an important role in your health and wellbeing all

various advantages. With proper good quality sleep, you can protect your physical and mental health, quality of life, personal security, as well as even develop better leadership skills.

Sleep plays an important role in the following processes:  It controls your body temperature and metabolism.  It keeps your immune system working.  It controls brain functioning and helps restore your memory.  It keeps your heart and blood vessels in a healthy condition.

If you don’t experience good quality sleep on a daily basis, then these procedures are interrupted and your possibility of developing lasting health problems increases.

To get proper sleep, it is recommended to stop eating about 2 hours ahead of your sleeping time. If you binge on a heavy meal and then go straight to bed, you will definitely not get restorative sleep, as your digestive system is being kept occupied.

Drinking Alcohol Generally, people think that having a drink is going to relax them, but in actuality, it is not true. It will not work as a sedative. Drinking alcohol before bedtime will decrease the amount of time you spend in a deep and restorative phase of sleep.

The average adult requires between 7-9 hours of sleep per night, in order to be at peak performance the next day. However, nowadays, the truth is that many adults are dedicating only 4, 5 or even fewer hours of sleep per night. It not only leads to sleepiness during the day, but can be the reason for poor productivity levels and even severe health problems.

Getting a great night’s rest isn’t as hard as you may think. A normal healthy person can sleep in 15 to 20 minutes. If it takes 30 minutes, an hour or more than that, then the following most common habits have to be blamed.

Eating Too Close to Bedtime Eating too close to bedtime can disturb sleep. Eating too many fatty foods, late at night can have a negative impact on sleep. It can strongly disturb your sleep cycle. Late night eating can cause acidity, indigestion or other issues because your body is working to digest food as you sleep.

If you take a small amount of alcohol like a glass of red wine or cocktail, it may sometimes be the reason why you experience dehydration or a headache. Maybe alcohol helps you sleep quicker, but you will not get a restful nap after consuming it.

Alcohol is a sleep-inducing chemical and it will mess with the adenosine hormone. Because of it, you will fall asleep very rapidly, but you will not get a good quality sleep. You should avoid taking alcohol more than 2 hours prior to sleep, if you’re planning a high-intensity day afterwards.

Using Electronics The use of electronics like mobile phones, tablets or laptops prevents the production of melatonin. It’s a hormone which controls your body clock. The level of melatonin increases in the evening. If you are too busy on your phone or email, then this level of melatonin won’t rise and you won’t feel like sleeping.

55 MARCH 2019

LIFESTYLE

Nowadays, mobile phones are becoming one of the most well-known sleep disturbers. The information which your brain processes will not allow you to get a good rest. The intense light emitted from your smartphone can also disorder your sleep cycle. It will prevent the production of melanin, which is vital for getting good quality deep slumber.

But you should always do physical activity at the right time. Don’t have an intense workout session late in the evening; it will ultimately stop you getting to sleep easily.

Generally, people become less competent at processing caffeine with age, so even if they drank it without an issue when they were younger, it might be more problematic for them now.

Ignoring How You Really Feel About Your Job Final thoughts Thus, keep in mind that electronic gadgets can actually distract you from the business of sleeping. They keep you awake. Try to put down your phone at least one hour before you want to go to bed. You can read a good book, put into practice meditation or adopt a relaxing yoga routine.

It may seem unreasonable, but if you are not satisfied with your job, then it will definitely become a reason for poor sleep. If you are over-stressed at work, you will definitely not get quality sleep.

Excessive Smoking

For a good night’s rest, it is always necessary to stick to a routine. When you are facing so much stress during the day then it will become much harder for you to fall asleep at night. Because of stress, it’s not easy to quiet our brains. So always try to create a bedtime routine.

Smoking cigarettes or use of cigars or a pipe can have an effect on your sleep, in many significant ways. In tobacco products, there is an active ingredient called nicotine. It may not allow you to sleep or might even lead to insomnia.

Being Inconsistent

Try some good habits like praying before sleeping or taking a hot bath. It will help you to get restful sleep. This regular bedtime schedule is not only important for children.

It’s important for everyone to increase the quantity and quality of sleep.

Smoking mostly disturbs the basic structure of sleep, which is commonly known as sleep architecture. If you smoke and your sleep gets disturbed, then it is the reason why you should quit smoking for your overall wellbeing. You can adopt some other alternative to quit smoking.

Drinking Coffee in the Afternoon or Evening Skipping Workouts It may be enticing to drink another cup of coffee as your energy gets down at work, but it may make you more tired in the long run.

Caffeine can take around five to six hours to lose its effectiveness, which will definitely disturb our sleep.

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Studies have revealed that morning and afternoon workouts can boost a person’s quality and amount of sleep at night. Of course, if you stay active then it will not heal your sleep complaints, but it will decrease the likelihood of them.

To acquire an enhanced night’s sleep and give your brain time to unwind, try one or more of the following tactics in addition to the above tips.

Try to solve any emotional problems before bedtime – stress only adds to a poor night’s rest, stick to a regular schedule or read a book before bedtime. You can set up your bedroom for optimum sleep intake or to intentionally block gadget disruption.

If something doesn’t work, try and test with other techniques until you observe your sleep improving. You can also get help from a physician, which may help you resolve your sleep issues.

KPIs

KPIs

% BILLING ACCURACY Definition Measures the percentage of bills that were issued without error and with the right cost on them the first time they were written, out of total bills issued.

Purpose To indicate the extent at which the accounting department issues bills that are accurate, as incorrect bills can affect the financial statements and need time and incur costs to be corrected.

Recommendations Problems with billing accuracy can happen more often in the case of companies with hundreds or thousands of clients (such as telecommunications) than in the case of companies with fewer transactions (such as consulting firms).

Optimal company cash flow can be achieved through timely and accurate billing. An efficient and effective in¬voice submission process leads to steadfast receivables and increased customer satisfaction.

An increase in % Billing accuracy commonly attracts an improvement in several other indicators such as $ Net

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ACCOUNTING

revenue from sales, # Cash to cash cycle time and % Renewal contracts.

Although manual data entry still embod¬ies the foundation of all accounting procedures, there are a few solutions that both complement and enhance human data processing:  Streamlined processes that encourage productive outcomes;  Modern software implementation for efficient data gathering;  Business Intelligence Solutions for high end results at low operating costs;  Reliable technological infrastructure for easy reporting and informed decision-making;  Trending applications for data exchange;  Cloud systems for big data storage and real time data administration;  Network protection for information security and data recovery.

A reliable billing process entails a high degree of accuracy and timeliness. Customer loyalty and advocacy are directly impacted by error-free invoice submissions and easy to understand billing processes.

A centralized data management system helps increase billing efficiency, as well as, drive customer retention through enhanced validity of data.

KPIs

% BUDGET VARIANCE Definition Measures the deviation between the actual costs and the planned (budgeted) costs for the same period. It can be applied at organizational, team, project or individual level.

Purpose To indicate the financial discipline in executing budgets. Can be used as a tool to control costs.

Recommendations Planning is an essential part of financial management, as well as budget spending.

Budget deviation analysis is a direct mean of controlling the company’s financial discipline in terms of budget execution according to the terms initially agreed upon.

Companies develop budgets as part of their financial strategy. However, progressing towards desired company goals, while

58 MARCH 2019

also maintaining financial discipline is sometimes easier said than done.

Some recommendations on effectively managing budget spending include:      

Linking budget to strategy; Efficient allocation of resources; The use of KPIs to track financial progress; Connecting cost management to budget; Streamlining cash flow processes; Built-in flexibility for unexpected spending

% Budget variance can be both positive and negative. On the one hand, the unfavorable variance that concerns organizations is indicated by positive results (such as +7%) because they outline that expenses have exceeded the budget.

On the other hand, negative values (such as -7%) raise questions about the accuracy of planning or reliability of budget execution.

In addition to this, targets for this KPI should be set according to the internal procedures and standards. In the case of projects with large budgets, a deviation of +/- (5-10%) can be a large amount of money, so a +/- (3-5%) target is more appropriate.

As companies worldwide are more and more concerned with budget execution and accuracy of forecast and planning, there is an increasing interest for budget deviations.

It will become very interesting to follow what major players around the world decide to do with this knowledge.

KPIs

$ WORKING CAPITAL PER EMPLOYEE Definition Measures how much of the company’s working capital is available, in relation to its employees.

Purpose To indicate the adequacy of the working capital available to the volume of staff.

Recommendations $ Working capital is a measure of an organization’s efficiency and short-term financial health. $ Working capital productivity is commonly linked to operational performance. It is defined as the sum of accounts receivable and inventories, minus accounts payable, divided by the net sales. $ Working capital per employee can be linked to working capital in terms of human assets and employee related costs. Moreover, this last KPI is also a measure of productivity, 59 MARCH 2019

indicating how much working capital is generated by the work of one employee.

An increase in $ Working capital stimulates additional investment into a company’s human capital, positively influencing $ Working capital per employee.

A focus on the improvement of working capital within an organization leads to some of the following aspects:     

Efficient allocation of resources; Management’s commitment to improvement; Strategic planning that accommodates change; Setting well-defined goals; Benchmarking results.

It is recommended that companies do not overlook the importance of working capital and working capital per employee in their

effort to achieve operational performance.

An increase in working capital per employee should be accompanied by a proportional increase in labor productivity, in order for such an investment to yield the expected returns.

That being said, any of the aforementioned indicators’ levels vary from business to business, thus comparisons should only be made against similar companies, in the same industry.

High levels of working capital per employee indicate that the company can invest in its people (by means of providing training), however it is worth noting that building high levels of working capital can be costly in taxes.

This will be something that each company balances out based on their priorities and available resources.

KPIs

BUSINESS CONSULTING

$ COST OF SERVICES DELIVERED Definition Measures the overall cost of delivering a service to customers. It includes all costs directly related to that service (cost of labor plus delivery overhead costs).

Purpose To indicate the efficiency in using the resources for service provision, further on extracting the cost of services from the revenue to obtain the gross margin.

Recommendations Every service-related business would want to maximize its allocated resources and operate efficiently. One of the ways to do so is by monitoring the $ Costs of services delivered.

Managers are expected to calculate the total cost of delivering the service, and they

60 MARCH 2019

can do so by looking into the company’s financials, i.e. the income statement.

use of the $ Costs of services delivered are as follows:

Upon collecting the data, managers should be aware of the costs that are included in and excluded from the indicator. For example, direct labor such as employee wages should be considered as the cost of revenue, as well as the sales commissions of the employees.

 Ensure real-time visibility into the company’s performance and profitability;  Electronically record expenses for better access to time and expense management;  Motivate employees to improve on-time service delivery and save on costs.

However, overhead costs such as rent, phone service and utilities are commonly excluded from the indicator. Such expenses are incurred even if the services were not delivered. In conclusion, managers are expected to fully understand the costs and expenses made by their company, as well as the classification of such expenses.

Several recommendations to maximize the

There are opinions that consider equal the cost of services, to the cost of goods sold (considered for a services company).

However, services firms prefer to calculate cost of services, these being directly attributable to the services and being different from other costs incurred by the services, but not in a direct manner (the delivery overhead costs).

KPIs

% TRAVEL TIME FROM CHARGEABLE TIME Definition Measures the percentage of travel time from the overall chargeable to client time.

Purpose To reflect the time consumed for traveling, as it is sometimes included in service costs charged.

Recommendations One well known fact about the consulting business is that it requires lots of travelling.

Travelling, on the one hand, is done as part of negotiating and closing potential deals.

On the other hand, on-site consultancy projects almost always include travel time and expenses.

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Therefore, one of the most common challenges that come with quantifying consulting work is billing travel time.

Although a part of the consulting service overall, travel time has always been rather difficult to deal with.

At one end, if travel time and travel expenditure are charged to the client, they raise the $ Cost of service, and the $ Hourly fee, as such. The business consulting company would therefore come at the risk of losing its clients to more affordable competitors.

At the other end, travel expenditure is inherent with business deals that require

on-site consultancy, and it is, therefore, only natural that travel expenses are charged to the client as part of the on-site consultancy project. When travel is done as part of selling consulting services or closing on deals with potential clients, travel expenditure becomes a separate cost category to the company.

To save on travel costs, some companies also employ a standardized rate “per mile” or “per kilometer” of travel.

Whichever option managers choose, they should ensure that % Travel time from chargeable time is closely monitored and appropriate decision-making is done relative to billing travel costs to customers.

KPIs

$ HOURLY FEE

Definition Measures the average fee the company charges per hour, considering the types of services it provides and its position on the market.

Purpose To indicate how much the company can charge per hour. This is a measure of its competitive position in the market.

Recommendations The amount a company charges per hour of consulting service shows the company’s level of competitiveness on the market, the company’s profitability, and even suggests

62 MARCH 2019

the quality of the services offered. Therefore, many managers in the industry seek to effectively negotiate on their $ Hourly fee.

One way in which you can achieve this is by negotiating based on the client’s perception of value. Another consists of working with the client’s budget to negotiate a befitting $ Hourly fee for both parties. No matter the negotiation method used, managers are expected to go with the $ Hourly fee that enables them and the company that they represent, to get ahead of the negotiating curve.

Several other recommendations on

effectively setting consulting fees are as follows:  Benchmark on the consulting fees of competitors in the industry;  Set maximum and minimum thresholds for the consulting fee, but never go under the lowest acceptable rate;  Take time to research on the client’s demands before closing a sale at the negotiated price;  Remember that negotiation is not about winning or losing, but about establishing long term client relationships that build customer satisfaction and customer loyalty.

KPIs

HUMAN RESOURCES

# HOURS LOST DUE TO ABSENTEEISM Definition Measures the volume of time lost due to absence from the workplace, from a task or obligation. It can also be reported as a percentage of total scheduled working hours.

Purpose To indicate the impact of absenteeism on working hours.

Recommendations Absenteeism has a significant impact on company costs, bottom line earnings, staff productivity, employee morale and profit margins. Organizations that face high rates 63 MARCH 2019

are prone to disruption due to the fact that they frequently have to deal with shortages in manpower, over-utilization of remaining staff, costly replacement of workers and headcount increases.

The indirect costs of absenteeism can translate into: increased turnover, substandard quality for products and services, as well as, reduced ability to meet customer demands.

Some recommendations on reducing the costs associated with this KPI include the following:

 Efficiently measurement and monitoring of hours lost due to work absence;  Standard policies and procedures on absenteeism;  Process mapping and automation;  Absence management technology.

High levels of hours lost due to absenteeism can have a direct impact on productivity within an organization, therefore it is advised you carefully keep a watchful eye on this indicator, to spot any irregularities.

However, what constitutes an irregularity depends on the organization’s size, type of business and internal policies regarding absenteeism.

KPIs

% INTERNAL PROMOTION RATE Definition Measures the rate at which open positions are filled through an internal promotion process, within the organization.

Purpose To evaluate the organization’s ability to grow internal talent capable of filling different roles.

Recommendations Measuring promotion rates along with other human capital metrics, such as timeto-fill, recruiting costs and performance

64 MARCH 2019

effectiveness of promoted candidates once they are in new positions, helps to determine if promoting from within yields a return on investment.

However, this does come with certain limitations, such as strict monitoring of recruitment details is required, to ensure accurate data is reported for this indicator. A certain level of maturity of HR management systems is also a prerequisite.

Furthermore, looking for ideal thresholds by mimicking a different company’s thresholds

is not recommended, as these always vary based on company and industry.

One simply has to remember that when filling different positions, organizations can select internal candidates or rely on external hires. Both types of candidates offer different benefits for the organization.

However, internal promotions have the power to be more successful because there is more information available to make accurate decisions.

KPIs

% PERFORMANCE APPRAISALS COMPLETED ON TIME Definition Measures the proportion of employee performance appraisals completed as scheduled, from the total number of performance appraisals.

Purpose To assess the efficiency and effectiveness of the performance evaluation process.

Recommendations At an individual level, performance measurement through employee appraisals and reviews is one of the most commonly found HR management processes.

Managers and HR coordinators assess periodically the performance of employees using a structured process such as a formal performance appraisal.

65 MARCH 2019

An individual performance review process is more easily conducted when it is based on an objective and coherent evaluation.

A sound assessment provides insight into the progress of employees within the organization. Regular appraisals ensure that feedback on individual performance is embraced as a standard and necessary step towards professional integration and development.

A standardized performance review process ensures that performance appraisals are always completed on time, so that, the timeliness and integrity of the subsequent processes in the evaluation process are kept intact.

Several tips on conducting performance appraisals can be mentioned:  Encourage open-minded conversations;  Provide objective feedback based on actual results;  Avoid appraisal biases through 360˚ Review, standardized Performance Evaluation Forms, regular performance monitoring, benchmarking and uniform rating scales;  Ensure that the individual performance review process stays concise, measurable and focused.

RECOMMENDATIONS

RECOMMENDED

1

Must-haves for your 2019 reading list 2

1. Orchestrating Transformation: How to Deliver Winning Performance with a Connected Approach to Change By Michael Wade, James Macaulay, Andy Noronha, Joel Barbier

3

By Ranjeet Kumar, Mohammad Hassam Siddiqi

The piecemeal strategies and pilot projects that are hallmarks of conventional transformation programs are hopelessly inadequate for the intricate, sprawling organizational environments found in most companies. Orchestration "mobilizing and enabling so as to achieve a desired effect" - paves the way for a new, more holistic conception of organizational resources and how they work together to drive change synergistically.

This book is a concise collection of personal experiences and understandings about building effective teams and, as the byline of the book suggests, it contains all those lessons which are essential to form a winning team. It is penned with the objective to equip you not only with the experiences of a manager and a corporate trainer, but also with the best knowledge and insights available in the form of different books, researches, articles, and tutorials pertaining to team management.

3. Win the Heart: How to Create a Culture of Full Engagement (The High Performance Series)

4. Turning the Flywheel: A Monograph to Accompany Good to Great By Jim Collins

By Mark Miller

4

2. Winning it Together: Essential Leadership & Team-Building Essentials for Managers

Gallop reports that 70 percent of employees are not fully engaged on the job. Mark Miller draws on more than forty years of leadership experience to show leaders at all levels how to change the conversation and create real competitive advantage in the process.

In the fourth book in Miller's High Performance Series, CEO Blake Brown sets out to discover how to create the kind of workplace where everyone feels excited to come to work, passionate about what he or she brings to the company, and energized at the end of the day.

The key to business success is not a single innovation or one plan. It is the act of turning the flywheel, slowly gaining momentum and eventually reaching a breakthrough. Building upon the flywheel concept introduced in his groundbreaking classic Good to Great, Jim Collins teaches readers how to create their own flywheel, how to accelerate the flywheel’s momentum, and how to stay on the flywheel in shifting markets and during times of turbulence.

5

6

66 MARCH 2019

5. The Art of Sustainable Performance: Model for Recruiting & Selection and Professional Development By Sebastiaan Kodden

6. Armstrong's Handbook of Reward Management Practice: Improving Performance Through Reward By Michael Coveney, Gary Cokins

The secret of winning persons and teams lies in the combination of talent and four important performance indicators, on which - strangely enough - many organizations just do not select their employees. Sebastiaan Kodden studied performance indicators among executives and senior staff of over 1,100 professionals and 50 CEO's of the Dutch best-known companies. His surprising findings put the present recruitment and selection procedures of many Dutch companies in a new perspective.

Armstrong's Handbook of Reward Management Practice is the definitive guide to understanding, developing and implementing effective reward strategies. It covers all the essential aspects of improving organizational, team and individual performance through reward processes, including financial and non-financial rewards, job evaluation, grade and pay structures, rewarding specific employee groups and ethical considerations.

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MARCH 2016 67

Performance Magazine, Printed Edition. Fourteenth issue, March, 2019. Content: News. AI Development – the final frontier in Europe. How the Fintech Model is Revolutionizing the World. PepsiCo steers towards more automation. STC receives the Integrated Performance Excellence Award. Using B2B Influencer Marketing to spur European SaaS success. Walmart on rails is becoming reality. Cover Story. Five Levels of Organizational Maturity: Performance Management Perspective.

Interviews. Business Intelligence. Glen Rabie, Yellowfin CEO. Performance Management. Consultant Interview: Gavin Lawrie. Portrait. Aisha Zayed Al Ali, Senior Director of Institutional Effectiveness at Mohammed bin Rashid School of Government, UAE. Lead by results, Inspire by character. Articles - Employee Management. 5 priceless benefits of working in a shared space. Gen Z: How This New Generation Is Changing the Workplace. How to Encourage Effective Teamwork within your Design Department. Top 8 Characteristics of Highly Effective Managers. Innovation. 4 Analytics Predictions to Look for in 2019. What Does the Future of Work Look Like?. Performance Reporting. Excellence in performance reporting: The New York Mayor’s Management Report. Strategy. Effective Ways to Grow Your Startup Business in 2019. How Talent Management Brings Discipline and Data to Human Resources. Winning the Goliath vs David Battle with Big Brands. KPIs – Accounting. $ Working capital per employee. % Billing accuracy. % Budget variance. Business Consulting. $ Cost of services delivered. $ Hourly fee. % Travel time from chargeable time. Human Resources. # Hours lost due to absenteeism. % Internal promotion rate. % Performance appraisals completed on time. Lifestyle. Most Common Habits That Are Ruining Your Sleep.

Recommended Books. Orchestrating Transformation: How to Deliver Winning Performance with a Connected Approach to Change, by Michael Wade, James Macaulay, Andy Noronha, Joel Barbier. Winning it Together: Essential Leadership & Team-Building Essentials for Managers, by Ranjeet Kumar, Mohammad Hassam Siddiqi. Win the Heart: How to Create a Culture of Full Engagement (The High Performance Series), by Mark Miller. Turning the Flywheel: A Monograph to Accompany Good to Great, by Jim Collins. The Art of Sustainable Performance: Model for Recruiting & Selection and Professional Development, by Sebastiaan Kodden. Armstrong’s Handbook of Reward Management Practice: Improving Performance Through Reward, by Michael Armstrong, Duncan Brown. Keywords: Key Performance Indicators (KPIs). Balanced Scorecard. Performance Management. Performance Measurement. Strategy. Employee Performance Management. Personal Performance Management. Balanced Scorecard Management System Performance. Measurement. Management. Business Intelligence. Education. Solution. Problem-solving. Decision-making. Project Management. Project Planning. KPI Selection.

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