Styring og belønning av prestasjoner (MIP: Managing Individual Performance) Eivind Garshol HR Manager Radisson SAS Oslo Plaza
Agenda Litt om Det Norske Veritas Belønning i DNV Managing Individual Performance (MIP) Performance Management Tool Erfaringer Spørsmål og kommentarer Slide 2
Litt om Det Norske Veritas Det Norske Veritas (DNV) er en uavhengig, selveid stiftelse som har til formål å arbeide for sikring av liv, verdier og miljø. Visjonen er å være kundenes førstevalg i alt vi gjør. Vi arbeider med klassifisering, sertifisering og rådgivning. Vi er snart 6000 ansatte ved 300 kontorer i mer enn 100 land. Slide 3
Objective To safeguard life, property and the environment Foundation established 1864 Slide 4
Organisation Human Resources and Organisation Finance and Controllership Relations and Communications Legal Affairs Technology DNV Software DNV Eiendom Slide 5
Main services % 45 40 35 30 25 20 15 10 5 0 DNV Maritime DNV Certification DNV Technology DNV Consulting As of 1 January 2004 Slide 6
International network As of 1 January 2004 Slide 7
Belønning i DNV Slide 8
Belønningspolitikk DNV vil tilby sine ansatte konkurransedyktig lønn og øvrige betingelser i forhold til relevant marked. Dette skal bidra til å tiltrekke, utvikle og holde på kompetente personer som DNV trenger nå og i fremtiden. Slide 9
Hovedprinsipper DNVs belønningssystem og praktisering av dette skal støtte opp under DNVs strategi og verdier og fremme ønsket bedriftskultur og lederatferd. Konkurransedyktighet skal vurderes ut fra de totale betingelsene som vi tilbyr våre ansatte vurdert opp mot relevant, sammenlignbart marked. Belønning skal fastsettes ut fra funksjonskrav, personlig kompetanse og arbeidsresultat (Position, Person, Performance) gjennom årlig vurdering. Slide 10
Stikkord om belønningssystemet Belønning er mye mer enn penger Belønning fastsettes/vurderes individuelt 15 lønnsgrupper 3 ansattkategorier (A-B-C) Universitetsnivå, høyskolenivå, mindre enn 2 år etter vgs. 3 funksjons-/ karriereområder Ledelse, fag, service Én tariffavtale Slide 11
Total DNV Reward Package Reward Elements Reward Types Definition Non-Monetary Work satisfaction/fun Work/Life Balance Inspiration/Values/Pride Enabling Environment Development/Opportunities Emotional Reward T O T A L Monetary Cars Other Perquisites Gifts/Service Awards Pension/Insurances Health & Welfare Holidays/Leave Annual Incentive Bonus/Spot Awards Base Salary Job Allowances Active Benefits Passive Benefits Short Term Variable Fixed Cash Elements B A S E S A L A R Y R T O T A L E T O T A L C A S H W A R D R E M U N E R A T I O N R E W A R D
Managing Invididual Performance Slide 13
MIP Process Overview Unit level (planning process) Individual level (MIP process) Slide 14
Performance Management Model Unit Level Input Goal setting Follow up/coaching Assessment A Unit's goals for year 200x Key unit The measure The target 1. Reporting Achievement at Goals: goals (KUG) (KPI) of status year end related to: NV's Strategy 1 1 OVV 2 2 2. Coaching * Key unit goals 3 3 / corrective 4 4 actions 5 5 6 7 "Unit 8 above" 9 KUGs 10 Slide 15
MIP Process and Time Line Input Goal Setting Coaching/Feedback Assessment KUG s Other Unit/ Bus. Goals Normal Job Expectations Prior Performance Assessment Individual Goals -Goal Statement -Measure & Target or -Verifiable Result Feedback/ Reporting of Status And Coaching or Corrective Actions as appropriate Results vs. Individual Goals Normal Job Expectations/ Rest of the job Other Significant Achievements (+/-) Next Year s Goals Rewards Promotions Personal Desires December February Ongoing January
Assessment The purpose of assessment Determine accurately and objectively the individual s contributions and improvement areas Provide background for use in recognition and reward that is linked to individual contribution Provide input to the next goal setting exercise Slide 17
Assessment areas Results vs individual goals Performance of rest of the job against normal job expectations Books, job descriptions, instructions to surveyors, etc. Other significant achievements Slide 18
Assessment Slide 19 Assessment Ratings DNV units (except DNV Consulting) 5. Significantly Above Expectations Significantly exceeds expectations in all areas; exceptional contribution vs peers 4. Above Expectations Exceeds expectations in several key areas and meets expectations in all others. Strong contribution vs peers 3. Meets Expectations Meets expectations in all key areas, good overall results. Contribution competitive with peers. 2. Some Improvement Needed Does not meet expectations in one or more key areas. Contribution lags peers. Improvement in specified areas is required. (Should generate return to standard goals in next cycle) 1. Not Satisfactory Continued performance below expectations in one or more key areas despite prior coaching/assistance or significant new deficiencies. Reassignment or termination warranted absent correction (Should generate return to standard goals in next cycle)
Performance Management Tool Slide 20
Performance Management Tool (PM Tool) Individual goals/ MIP only Automatic storage/ filing in Partner Automatic link to overall assessment form Slide 21
Performance Management Tool (PM Tool) Slide 22
Individual assessment form INDIVIDUAL ASSESSMENT FORM Name: Unit: Grade: Employee No.: Function: From date: Assessment Weight (optional) Rating* Common DNV A) Individual goals achievement (ref. MIP Process) B) Rest of the job (assessment based on normal job expectations in each BA/IBU/CU, e.g. job descriptions, instructions, "The Book", leadership principles etc) C) Adjustment for other significant achievements (big unexpected projects, deliveries etc) Overall annual assessment (total impression, an appropriate weighting of the elements above - not a mathematical calculation) + or - Electronic/Partner Signature: Comments (if any): Leader Date Paper form * All DNV units except DNV Consulting use a rating scale from 1-5. DNV Consulting uses a rating scale from 1-4. Assessment ratings DNV units: 5. Significantly Above Expectations 4. Above Expectations 3. Meets Expectations 2. Some Improvement Needed Slide 23 1. Not Satisfactory Assessment ratings DNV Consulting: 4. Excellent performance, ready for promotion 3. Strong performance, promotion possible 2. Regular performance or good early performance 1. Clear development needs
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Erfaringer Slide 25
Performance, measurement and compensation I have had a MIP (Planned Dialogue) with my line manager in the last 12 months No 28 % 2002 Total No 20 % 2004 BA level Yes 2002 Yes 2004 Question 6 a 89 % 91 % 93 % 86 % 88 % 87 % 88 % 80 % 82 % 81 % 82 % 77 % 72 % 72 % 75 % 65 % 66 % 70 % Yes 72 % Yes 80 % Eiendom Consulting Common Support Hubs Maritime Software Technology Services Corporate Units Corporate Technology Certification The rate of employees who have had an MIP has increased with 8% since 2002 Still 20 % of the employees say that they have not had their MIP The best score is in Corporate Technology with 93% saying Yes Technology Services has made most improvements since 2002 Certification and Eiendom had a negative development in score since 2002
Performance, measurement and compensation My last MIP (Planned Dialogue) was useful to me Question 6 b Total 2002 2004 BA level Mean 2002 Mean 2004 Strength 2002 Strength 2004 1,0 100 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % 9 % 8 % Strongly agree 36 % 30 % 29 % 30 % Agree Somew hat agree 12 % 12 % 11 % 9 % Somew hat disagree Disagree 9 % 5 % Strongly disagree 2,0 3,0 4,0 3,13,2 Eiendom 2,8 2,7 2,9 Consulting 3,1 3,1 Common Support Hubs 3,0 2,9 2,9 2,9 Maritime Software 3,4 Technology Services 2,42,5 2,5 2,5 Corporate Units Corporate Technology 3,0 3,2 Certification 80 % 60 % 40 % 20 % 0 % The mean has improved by 0,3 from 3,2 to 2,9 The positive answers have improved with 6 % points - from 68 % in 2002 to 74 % in 2004 Rather high dispersion with a standard deviation (SD) of 1,28 All BAs have made improvements since 2002, except from DNV Eiendom Technology Services has improved by 0,5 and are the best of the BAs with greatest improvement
Performance, measurement and compensation Question 6 c How was your last MIP (Planned Dialogue) compared to the previous one? Total Improved Same Worse NA BA level 0 % 20 % 40 % 60 % 80 % 100 % 70 % Eiendom 8 % 74 % 9 % 9 % 60 % 50 % 40 % 30 % 20 % 21 % 51 % 22 % Consulting Common Support Hubs Maritime Softw are Technology Services Corporate Units 19 % 22 % 21 % 16 % 20 % 30 % 57 % 46 % 52 % 56 % 47 % 59 % 6 % 18 % 5 % 25 % 7 % 18 % 5 % 20 % 6 % 25 % 4 % 7 % 10 % 7 % Corporate Technology 25 % 51 % 5 % 19 % 0 % Improved Same Worse NA Certification 19 % 46 % 7 % Improved Same Worse NA 25 % 21% say the MIP has improved compared to the previous one Still 51% believes that the MIP has not improved since 2002 The scores vary much between the different BAs Highest improvements in Corporate Units, while Eiendom has the highest negative score Technology Services, Certification and Common Support Hubs have highest NA rate
Performance, measurement and compensation I receive appropriate recognition for the work I do for DNV Question 6 f Total 2002 2004 BA level Mean 2002 Mean 2004 Strength 2002 Strength 2004 1,0 100 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % 4 % 5 % Strongly agree 36 % 33 % 32 % 31 % Agree Somew hat agree 16 % 16 % Somew hat disagree 10 % 8 % Disagree 5 % 4 % Strongly disagree 2,0 3,0 4,0 2,9 2,9 Eiendom 3,1 3,0 3,1 3,2 Consulting 2,9 3,0 2,9 2,9 2,9 Common Support Hubs Maritime Software 3,1 Technology Services 2,7 2,6 2,8 2,8 Corporate Units Corporate Technology 3,0 3,2 Certification 80 % 60 % 40 % 20 % 0 % The mean has improved by 0,10 from 3,08 in 2002 to 2,98 in 2004 The positive answers have improved with 3 % points - from 69 % in 2002 to 72 % in 2004 Improvements in half of the BAs only Corporate Technology has the best score with 2,6, while Consulting has the lowest score with 3,2 Corporate Technology, Technology Services and Certification have made most improvements since 2002
Erfaringer Betydningen av kritisk masse Betydningen av opplæring Betydningen av rollemodeller Betydningen av kalibrering Betydningen av langsiktighet og disiplin Slide 30