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Hello everyone. We hope you are doing well. In this video, we will brief you on our annual process of Performance Management. But first, in order to make our performance management meaningful, it is important for us to know how to set our KPI in a correct manner. What is KPI? KPI stands for Key Performance Indicator. They are the quantifiable, outcome-based statements you'll use to measure if you're on track to meet your goals or objectives. Why are KPIs important? For the organization, it's essential that business objectives are well communicated across an organization, so when people know and are responsible for their own KPIs, it ensures that the business's goals are achieved. Meanwhile, at an employee level, they can be used to measure performance and manage underperforming staff. In Sarawak Energy, one of our Key Focus Areas is High Performance Culture. To support this initiative, it is very important that all employees own and drive their KPIs and development goals with agreement from their Line Managers. But, first of all, you need to set the KPI correctly. How to do this? In our organization, KPIs should be set based on SMARTEST. What is SMARTEST? S, stands for Specific. Stating individual’s specific contribution and accountability to the Department’s result. M, stands for Measurable. Stating clearly the performance standard expected. Ae stands for Achievable. Challenging and motivating, taking into account employee’s experience and capabilities. R, stands for Realistic. In terms of the needs of the job and individual’s ability to execute. T, stands for Time-bound. Stating when a work result is due. E, stands for Engaging. Whether the individuals feel they really own the tasks and targets. S, stands for Satisfying. Whether these tasks and targets give individuals satisfactions and challenges. T, stands for Team-based. Who could collaborate with individuals in the team and how will others help. Now, you know how to set the KPIs in the right way. Let us take a look on our annual performance management cycle in Sarawak Energy People System which also known as SEPS. We will start with Performance Planning which usually takes place in January. Once the Performance Planning form is launched, Supervisor will be cascading their KPIs and employee will input their own KPIs and development goals as well. This is where the Supervisors will need to pay attention and ensure that they cascaded the right KPIs according to the SMARTEST. Then, the Supervisor and employee should have a discussion, be it virtual or face to face, to agree on the KPIs set and what is the result expected by end of the year. After that, the employee would need to acknowledge in the system as a sign of agreement and he is aware of the KPIs set to him. Once the employee acknowledges in the system, the process for the Tasks and Target Setting is now completed. Again, we would like to remind all Supervisors and Line Managers to not take this step for granted as it will affect the employee’s rating at the later stage. It is very crucial that you cascade the KPIs based on the SMARTEST. Failing to do so will result in big deviation of the employee’s rating during relative ranking session at the end of the year. Performance Monitoring on the other hand will start some time at the end of Q2 which is in the middle of the year. This is where the Mid- Year Performance Review form will be launched. What happened during the Mid-Year Performance Review? Employees are expected to update on their KPIs progress. Then, a discussion between the Supervisor and the Employee needs to take place so that they can discuss on how to close the gaps by the end of the year and how they can provide support to their employees in order to achieve the agreed KPIs. The Supervisors are also encouraged to take this opportunity to coach and motivate their Employees. Once done, employee needs to acknowledge in the system and, the Mid-Year Performance Review for the employee is now completed. What if there are changes to the KPIs? In cases of transfer, changes of Line Manager or due to the shift of business priorities, the Line Manager should launch Exception Planning form to update the employee KPIs after discussion with the employee. Once the Exception Planning form is completed by the Line Manager, the process of Task and Target Setting will need to take place again where the employee needs to update the KPIs and the Line Manager to cascade the new KPIs to the Employee. After that, as usual, a discussion needs to be done and employee needs to acknowledge the new KPIs set in the system before the process is considered as complete. And now we have come to the last part of the Performance Management annual cycle which is Performance Review. The Year End Performance Appraisal form will be launched in early of Q4. Employee will need to update the achievement of their agreed KPIs and rate themselves in the system. In Sarawak Energy, we have 6 levels of rating which are, 0 for Poor, 1 for Marginal, 2 for Satisfactory, 3 for Good, 4 for Very Good and the highest rating would be 5. Employee and Supervisor will then have a discussion to review and feedback on employee’s overall performance and development needs. It is important that the Supervisor assess and rate the employee objectively and fairly, and be transparent to the employee on their performance. Please be reminded that employee’s rating is subjected to change after Relative Ranking session. So, that’s the end of the presentation for our Annual Performance Management Cycle. We hope you are clearer in terms of what is expected out of you regardless as an Employee or Supervisor or Line Manager during the Performance Management process. Thank you for listening in and we hope you have a productive day ahead.