E2-E3

MANAGEMENT
Group Performance Management
System

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WELCOME
This is a presentation for the E2-E3 Management
Module for the Topic : Group Performance Management
System .
Eligibility: Those who have got the Upgradation to from
E2 to E3.
This presentation is last updated on 15-3-2011.
You can also visit the Digital library of BSNL to see this
topic.

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AGENDA

Understand concept of Group Performance System

Foundation of GPMS and BBSC
Groupings in GPMS of BSNL
Sample SSA GPMS

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GPMS concept
The GPMS is an initiative under Project SHIKHAR of
BSNL with the intent to have an objective and
transparent system for assessing performance.

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GPMS concept
It is a system for:
Identifying KPI for individuals and various functional
groups within the organization.
Assigning objective KPIs to distinct groups aligned with
organizational objectives.
Assessing targets and their relative weightage against
such KPIs in objective & transparent manner.
Shall be used as yardstick for assessment of
performance of various groups.
Providing a basis for performance related HR policies.
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Foundation of GPMS
GPMS is the new performance measurement system
with a similar implementation approach of BBSC.
BBSC concept was adopted by BSNL in 2006.
In 2009 , an improved performance management version
in the form of GPMS has been introduced.
The GPMS scorecards for all the group types have been
designed to consist of KPIs to measure the Group
Performance on Financial , Customer/Market and
operational Parameters.
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Foundation of GPMS
In addition overall performance assessment KPI , it would
evaluate the groups on parameters that are difficult to
get captured quantitatively. An Overall performance
assessment would be done by the person to whom the
group reports. e.g.
The Evaluation for the groups at the corporate office
would be done by the CMD.

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Foundation of GPMS
Evaluation of the Territorial Circles will be done by the
Management Committee (MC).
Evaluation of SSAs will be done by the respective Circle
Heads and
Evaluation of non-territorial circles would be done by the
respective corporate office Directors and Executive
Directors.

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Foundation of GPMS
Every scorecard has a parameter to measure customer
satisfaction.
Customer Satisfaction to be assessed through a
customer survey administered by an external third part
agency and will be based on parameters such as brand
& advertising, product innovation , customer
responsiveness of field sales and customer service staff
, QoS etc. For circles which do not have any external
customer , the internal customers/stakeholders would be
doing the evaluation.
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Background
Introduction of GPMS in place of BBSC was considered
because existing BBSC set up adopted by BSNL, has
following shortfalls :
1. Job description at an individual level were not clearly
defined- Hence creation of Individual scorecard was not
very objective and systematic.
2. Long list of Activities without clear cut delineation of
activities and responsibilities made it less conductive to
effectively identify and communicate KRA of a specific
post.

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Background
3.Though BBSC have defined at various levels ,
the Large number of KPIs in each scorecard as
well as absence of critical enablers such as :
An appropriate org. structure.
Well defines processes for tracking
performance and IT system support hamper
their effective implementation.

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GPMS is considered Suitable for Implementation in

BSNL as
It is Based on new organization structure of BSNL.
KRA/KPIs are identified and defined on the basis of New
BU structure of BSNL, in consultation with top executives
of the respective BU.
Number of KPIs has been kept less to have focus
measurement of Key performance areas.
It is an Optimum combination of quantitative and
qualitative measurement.
KPIs are defined as per functional activities of an entity.
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Individual Performance Management System (IPMS)

Achievement of GPMS rests on the success of individual

executives in performing their assigned tasks.
IPMS has been introduced with intent to develop an
objective and transparent system for assessing
performance at the individual level.
IPMS will be on the lines of GPMS and to start with only
DGM and above rank officers are covered.

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Groupings in GPMS of BSNL

Category

Corporate
Office

Territorial

Non
Territorial
Circle

SSA

Group Type

Group types

1. Consumer Fixed Access ,

2. Consumer Mobility
3. Enterprise
4. New businesses
5. Corporate Affairs
6. HR (Incl. Legal and Vigilance)
7. Finance
Territorial Circle
1. Project Circle
2. Maintenance Region
3. Telecom Factory
4. Training Circle
5. QA, 6. Telecom Stores, 7.
Inspections (earlier T&D), 8. ITPC
9. NCES, 10. Data N/W
SSAs
Total
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No. of
groups
7

1
1
1
1
1
6

26
5
4
3
3
6

1
19

330
384

GPMS
Identifying Key performance indicators (KPI) for
individuals and various functional groups within the
organization.
Assigning objective KPIs to distinct groups aligned with
organizational objectives
Assessing targets and their relative weightage against
such KPIs in objective & transparent manner
Shall be used as yardstick for assessment of
performance of various groups.
Providing a basis for performance related HR policies
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GPMS scorecard creation

BSNL Corporate office to decide it for 18 groups
For SSAs, territorial circles to decide

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GPMS concept
Derived from the Vision and Strategy of the organisation
Planning
Long term strategic plan
Short term business plan and budgets
Measurement
Focused set of measures
Measures represent organization's plan and vision

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GPMS concept
Review
Plans are regularly reviewed and suitably revised
Performance
Rewards are linked to driving key measures

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GPMS elements
How do we look to shareholders?

Finance
What must we excel at?

How do customer see us?

Customer/
Marketing

Vision &
Strategy

Operations

Learning
& Growth
How must our organisation learn and improve?
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GPMS element linkages

Financial Perspective

1. The economic model of

Return on
Investment

Revenue
Strategy

Productivity
Strategy

Sources of Growth

Sources of Productivity

key levers driving

financial performance

Customer/Marketing Perspective

2. The value proposition of

Value Proposition
Price

Qualit
y

Functio
n

Time

Imag
e

Relatioship

target customers

Operations Process Perspective

Build the
Brand

Make the
Sale

Deliver
the
Product

Service
Exceptional
ly

Learning & Growth Perspective

Staff
Competen
cies

Technology
Infrastructure

Climate for
Action

3. The value chain of core

business processes
4. The critical enablers of

performance improvement,
change and learning

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Financial perspective
This has to do with :

Profitability

Growth

Shareholder Value

Increasing Revenue

Cost reduction & Productivity Improvement

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Customer/Marketing Perspective
How are you performing from customers perspective?
What are the factors that really matter to customer?
Main concern of customers are:
 Time the time the company receives an order to the
time it actually deliver it.
 Quality Defect levels as perceived by the customers.
 Service- What is the value, your product or service is
creating for the customer.

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Customer outcome measures

Market Share

Market Share

Retention
Acquisition
Satisfaction

Acquisition

Profitability

Profitability

Satisfaction

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Retention

Operations perspective
Every business has a value chain by which value is created and delivered
Customer
need
identified

Identify the
markets/
create the

Build the
product/
Deliver the

product

product

Innovation process

Operations process

Service
the
customer

Customer
need
satisfied

Post sale service process

Innovation process : Critical to the future success of the business.

Operations process : Needed for efficient, consistent and timely
delivery of existing product and services to the customer.
Post sale service process: Warranty related, payment or other
activities enabling the customers to enjoy the quality product

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GPMS element linkages

Financial Perspective

1. The economic model of

Return on
Investment

Revenue
Strategy

Productivity
Strategy

Sources of Growth

Sources of Productivity

key levers driving

financial performance

Customer/Marketing Perspective

2. The value proposition of

target customers

Value Proposition
Price

Qualit
y

Functio
n

Time

Imag
e

Relatioship

Operations Process Perspective

Build the
Brand

Make the
Sale

Deliver
the
Product

Service
Exceptional
ly

Learning & Growth Perspective

Staff
Competen
cies

Technology
Infrastructure

Climate for
Action

3. The value chain of core

business processes

4. The critical enablers of

performance improvement,
change and learning

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Learning and Growth

To achieve our vision, how will we sustain our ability to
change and improve
The infrastructure that the organisation must build to
create long-term growth and improvement
Comes from:
People
Systems
Organizational procedures

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Features of Good Score Card

1. Executive Involvement
Strategic decision makers must validate and own
the strategy and related measures

2. Cause-and-Effect Relationships

A good Balanced
Scorecard will
tell the story of
your strategy in
actionable terms.

Every objective selected should be part of a chain of

cause and effect linkages that represent the
strategy

3. Balance between outcome and leading

measures There should be a balance of outcome
measures and leading measures to facilitate
anticipatory management

4. Financial Linkage
Every objective can ultimately be related to financial
results

5. Linkage of Initiatives and Measures: Each

initiative should be based on a gap between
baseline and target.

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Parameters in GPMS Sc
Measurable
Unambiguous
Negative or Positive
Each parameter is given weight and target (fair, good,
excellent)
Sum of weight of all parameters equals 100

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Targets
Derived from companys targets conveyed down the line
Can be changed on review in exceptional cases

Must be based on accurate forecast considering

appropriate business environment

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GPMS scoring
Performance Grading
Fair
Good
Excellent
Score-60
Score-80
Score-100
Performance level to be defined for Fair, Good and
Excellent
Score to be calculated in a linear manner as per
achievement
Performance less than the fair target will get Zero score
The total score against a KPI would be calculated after
multiplying the weightage of a parameter with its
performance score and final score will be sum total of
scores for all parameters.

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Calculating score
Positive parameter: Weight x

Actual Achievement
Target

Example: Growth in connections, staff trained

Negative parameter: Weight x

Target
Actual Achievement

Example: Fault/100, Duplicates bills issued, Absenteeism

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SSA GPMS sample- 1/4

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SSA GPMS sample- 2/4

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SSA GPMS sample- 3/4

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SSA GPMS sample- 4/4

Fin
Fin

2
Oth
0
ers
%

Fin

C/M
Empl
devel

New Businesses revenue (Rs. Cr.)

Budget adherence on opex (% actual
spend vs. budgeted) (on items excluding
those in schedule P)
Overall assessment on Finance related
issues, including budget adherence,
financial planning, accounting, revenue
assurance etc. (on scale of 1 to 5 - to be
assessed by Circle Head)
Customer satisfaction level (including
QoS) (Scale of 1 to 5)
Overall assessment on HR related
issues, including training, recruiting,
promotion, transfers etc. (on scale of 1 to
5 - to be assessed by Circle Head)

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20
20

20

20

20

IPMS
Ultimate linkage to individual performance
Can be a base for PLI
Initially implemented only up to DGM level

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