PERFORMANCE MANAGEMENT SYSTEM

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PERFORMANCE MANAGEMENT SYSTEM AT BPCL
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Company Profile Bharat Petroleum

• Integrated Petroleum Refining and Marketing
  Company
• Fortune 500 Forbes 2000 company
• Sales Volume 27 Million MT
• Revenue US 31 Billion per annum
• Two Refineries at Mumbai Kochi and One
  subsidiary Refinery at Numaligarh
• Large distribution network across India 425
  locations
• Network of 8400 Retail Outlets and 2,200 LPG
  Distributors
• 14200 employees

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PMS Journey

• April 1999 Strategic shift in approach to PMS by
  way of introducing Balanced Score Card concept
• April 2003 Linkages with reward mechanism
  through introduction of Performance Related
  Incentive Scheme along with relative ranking
  (bell curve) introduction
• April 2009 Leveraging of technology (SAP
  Platform) for Talent Management beginning with
  PMS
• October 2009 - Launch of Strategic Performance
  Excellence workshops Rigorous, involved process
  of creating alignment between business strategy
  and individual goals.

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Purpose of PMS

• To facilitate achievement of the Vision and
  Business Plans of the Corporation and foster
  development of every management staff, thereby
  gaining competitive advantage in the market

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Objectives of PMS

• Create awareness of Corporate and SBU/ Entity
  goals
• Translate such goals into tangible objectives and
  measures at the individual level through
  discussions between Appraiser and Appraisee
• Identify managerial attributes/ competencies
  necessary to achieve the goals
• Establish a formal process of continuous feedback
  on performance
• Identify developmental plans to enhance
  performance
• Provide an input for deciding career progressions
  and rewards

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Process Flow
Performance
Planning 30th April
15th May of
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Relative Ranking process and Values
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Linkage of PMS with other HR processes

• Career transitions
• Progressions
• Staff development
• Payment under Performance Related Incentive
  Scheme for Management Staff (PRISM) /PRP

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The Challenge of strengthening the PMS

• How do we achieve
• high degree of alignment between business plan
  and individual goals
• consistency in KRAs across the similar roles e.g.
  Territory Managers
• high degree of discipline especially in terms of
  time line
• high degree of standardization in end to end PMS
  process

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We strengthened the system by

• Leveraging technology by launching Integrated
  PMS on
• SAP Platform
• The Objective
• Automate a critical performance monitoring
  process to ensure 100 compliance and on time
  delivery of the performance value chain
• Demonstrate Transparency, Ease of Use effective
  Internal Cross Learning
• The Action
• Automated a comprehensive e-PMS using SAP
  platform with standardized tools templates
  (effective PMS cycle 2008-09)
• Touched each every employee made their role
  relevant
• Distinctive connection established between
  corporate strategy individual KRAs Objectives
  by introducing concept of Default KRAS
• Initiated Development of dashboards for each
  line manager for all tangible measures across for
  easy review

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Process Flow Preparation Stage
Employee

is assigned
Position
Mapped Role / Job
Predefined SBU/ Role specific KRAs
Individual KRAs by Line Manager
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Process Flow Planning Stage
Preparation Stage
Planning Stage
EMBEDDED HR
APPRAISEE
APPRAISER
Create KRAs / Finalize Attributes and Add to
the Template Based on the Job
Modify KRAs / Attributes And Measures

• PMS Template contains
• Personal/ Organization Data
• Appraiser/ Reviewer
• KRAs based on Role / SBU
• Attributes

Appraisee Acceptance

• PMS Document
• Finalized with
• KRAs
• Objectives
• Measures
• Attributes

Document is finalized Moves to Next Stage
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Process Flow - Review Stage
From Planning Stage
Mid year Review Stage
APPRAISEE
APPRAISER
Reset KRAs/ Measures (Add / Delete / Modify
KRAs) Comments on performance

• PMS Document
• Finalized with
• KRAs
• Objectives
• Measures
• Attributes

Review of KRAs / Suggest Changes
Appraisee Acceptance
Document is finalized Moves to Next Stage

• PMS Document
• Finalized with
• KRAs
• Objectives
• Measures
• Attributes

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Process Flow Final Assessment
From Review Stage
Final Assessment Stage
APPRAISEE (Self Appraisal)

• PMS Document
• Finalized with
• KRAs
• Objectives
• Measures
• Attributes

APPRAISER (Final Assessment)
REVIEWER (Review of Final Assessment)
Embedded HR Facilitates
MODERATOR (Review of Final Assessment)
APPRAISER (Sharing of Marks / Recording
Comments)
Appraiser Facilitates
Process Completed
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We strengthened the system by

• Launch of Strategic Performance Excellence
  workshops 30 workshops covering around 900 key
  role holders
• The Objective
• Establish a comprehensive connect between
  strategy at the Business level performance
  drivers at the individual level
• Ensure that each and every role holder sees a
  clear connect between their individual goals with
  that of their Business or entities
• To help all functions role holders collaborate
  to ensure that objectives are best achieved when
  role holders work as an effective team chasing
  performance

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Performance Management Excellence

• The Action
• Articulation of Strategies for next three years
  and creating business/entity wise strategy maps
  Established a Strategy on Page as a learning
  process for role holders to appreciate strategic
  cascade.
• Converting strategies into measurable indicators
  at various levels
• Setting goals targets against the standard
  metrics
• Putting in place measurement and monitoring
  mechanism
• Designing a holistic feedback and development
  process for sustained performance
• Reiterating the need for role holders to
  understand and appreciate how effective
  leadership will help them build a credible PMS
  program
• 15 workshops completed covering 4 SBUs and
  3 Entities

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• Thanks