韬睿-东风乘用车公司-Goal Setting Workbook Example

GoalAlignmentProgramGoalSettingWorkbook(Example)Thisdraftisintendedfordiscussionpurposesonly.Itisincompletewithouttheaccompanyingdiscussion.

Itisconfidentialandshouldnotbedistributedtoanythirdparty,orpublishedinwholeorpartinanyform,withoutthepriorwrittenconsentofTowersPerrin.ContentsWallStreetexpectationandtheDriversofValueatXYZCompanyWhatisGoalAlignment?GettingStartedwithGoalSettingExcerptfromClientFileModule1:StockMarketFundamentalsPurposeUnderstandstockmarketfundamentalsandhowourstockisvaluedRationaleEmployeesownstockoptionsandstock,andwanttounderstandResearchshowsthatemployees’commitmenttobusinessstrategyisinfluencedbytheirunderstandingofvaluedriversEmployeeswillmorereadilyembracemanagementdecisionsiftheyunderstandstockmarketdynamicsandtheimplicationsforourcompanyHowdo

WallStreetanalystsviewus?WhatWallStreetissayingaboutusWallStreetanalysts’projectionsofourstockpriceDLJSGCowenINGBaringFurmanSelzPrudentialSecuritiesSalomonSmithBarneyJ.P.MorganJSAResearchWedbushMorganMerrillLynchGoldmanSachsABNAMROToppickStrongbuyStrongbuyStrongbuyBuyBuyBuyBuyAccumulateMarketoutperformerHold$60$51$45to$50$51$56$53$55$55$47to$52$46to$49—CompanyRecommendationTargetPricein

12to18MonthsElevenWallStreetanalystscurrentlytrackXYZ;

herearetheirprojectionsEarningsDrivenManufacturing $8.22 $8.42 $8.24 $8.66 $8.39NetworkSystems 3.36 5.70 2.95 2.33 3.59Subtotal 11.58 14.12 11.19 10.99 11.98Subscriber/CashFlowDrivenABC 11.10 18.13 17.00 14.00 15.06MNO 19.00 17.48 16.00 17.00 17.37CDE 2.74 2.05 2.00 1.32 2.03Other 6.58 8.22 1.81 5.69 5.58Subtotal 39.42 45.88 36.81 38.01 40.04TotalXYZ $51.00 $60.00 $48.00 $49.00 $52.00CowenDLJFurmanSelzMerrillLynchAverageHereishowfouranalysts

arriveatapersharetargetpriceforourstockWhatWallStreetexpectsfromusTonextpageWhatWallStreetexpectsfromusOtherABCMNOCDERelativeContributiontoFiveYearEPSGrowthServicesServicesSystemsSystems$0.28*$3.002001/2002Inlessthanfouryears,weexpecttoearn$3.00per

share—upfrom28centslastyear—andmuchofthatearnings

growthwillbefueledbythesuccessofourservicesbusinesses*Excludesone-timeitems1997TonextpageTopreviouspageWhatWallStreetexpectsfromusTonextpageTopreviouspageCDEABCMNOOtherCDEABCMNOOther1997Revenue2002EstimatedRevenueBytheyear2002,servicesareexpected

togeneratemorethanhalfofXYZ’revenuesStrategicCorporateGoalsDivisionGoalsIndividualGoalsIncreasecustomersatisfactionby10%(basedoncustomerssatisfactionsurveys)Increasethenumberofshipmentsyouscheduleperdayby5%Reducedeliverytimeby30%WhatisGoalAlignment?Goalalignmentistheprocessbywhichemployeesdevelopanactionplantoachievespecificgoalsthatwillsupportboththedivisionandthestrategiccorporategoals.CorporateDivisionTeamCompany’sMISSIONSTRATEGYGOALSBUSINESSDRIVERSEMPLOYEE’SGOALSandCOMPETENCIESWhydoweneedGoalAlignment?Goalalignmentprovidesanindividualizedworkplanthatrigorouslylinksanemployee’sgoalsandcompetencieswiththecompany’smissionandstrategicobjectives.WhatisthestructureofaGoalAlignmentprogram?DefinedriversofbusinesssuccessDevelopvaluetreesIdentifylineofsightSetindividualgoalsEnhanceourcompetenciesSTEP1:DefinedriversofbusinesssuccessWhilealigningourunitstrategywiththecompany’sstrategyandmission,companyXwilldeterminethespecificsthatdrivetheirbusinessandarethekeystotheirsuccess.Thosearewhatwecallorganizationaldrivers.Thesedriversareultimatelytheresultofanintricatecombinationofpeople,culture,structure,andprocesses.NumberofInnovativeFeaturesImplemented#ofCustomerSuggestions

IncorporatedintoDesignProductInnovationBrandImageDeliveryTimeCostofTransactiontoCustomerCycleTimeNumberofCallBacksCustomerSupportRelationshipwithCustomerAvailabilityofProductsCustomerValuePriceReturnsFailureRatesQualityCustomerSatisfactionBusinessDriverDrivesoursuccessasanorganizationFirstLevelMetricsMostrelevantcomponentsofthebusinessdriverSub-metricsFurtherbreakupsofthefirstlevelmetricsSTEP2:DevelopvaluetreesThevaluetreeisamapwhichbreaksdowneachdriverintodifferentlevelsofmeasures/metrics.Thevaluetreedemonstratesthequantitativelinkagebetweeneachmetricandhighlightswherevalueisadded.Inaddition,gettingtotheveryrootofthedriverwillallowusnotonlytoquantifyeachmetricandmeasureitsimpactinourorganization,butalsofocusonareasofimprovementandemphasizeourbestpractices.ScheduleShippingSendInvoiceCollectPaymentsPost-SalesSupportCreditCheckOrder

DeliveryProcessOrderEntrySTEP2:Developvaluetrees—Whatisyourimpactonthisvaluetree?Thispictureshowshowyourdailyactivitiesaffectdriversofthecompany’sbusinesssuccess.Forexample,intheorderdeliveryprocess,therearemanystepsthataffectthemetricsinvolvedincustomersatisfaction.Enteringorderinformationcorrectlyandquicklywillreducecycletime,improvecustomervalueandconsequentlyincreasecustomersatisfactionDesigninganefficientshippingschedulewilladdcustomervalueandincreasecustomersatisfactionbyreducingdeliverytime.Promptandresponsivepostsalessupportprovidedtocustomerswillimprovethecompany’scustomerrelationship.(*) CustomerSatisfaction-Gratificationcustomerreceivesfromorder

DeliveryTime-Timefortheproducttobedelivered

RelationshipwithCustomer-Theconnectionwehavewithourcustomersovertime

CycleTime-TimefromorderentrytocollectionofpaymentsFocusontheoverallreturnratesofourproductsBeattentivetoproductreturnratesforproduct“A”Keepdailyaccuraterecordsofproduct“A”returnsInvestigatereasonsforreturnbycontactingcustomerdirectlywithin2businessdaysofreturnofreceiptSharereasonsforreturnwithProductionareabythe5thdayofeachmonthviawrittenreportQuality#ofProductReturnsbyCustomersProductFailureRatesWhatYourGroup/TeamCanDoWhatYouCanDoINDIVIDUALGOALSSub-MetricsFirstLevelMetricCOMPETENCIESCustomerSatisfactionOrganizing/

prioritizingProblemsolvingCommunicationBusinessDriverSTEP3:IdentifyLineofSightOnceweunderstandthekeyorganizationaldriversandhowweimpactthem,wearereadytosetthelineofsightmapwherewewillprioritizeourdailyactivities,setourgoals,andestablishanactionplantoenhanceourskillsinhopesofhavingapositiveimpactonourorganization.FinancialCustomerOperationalOrganization’sSuccessDailyActivitiesCompetencies(Skills,Knowledge,Behaviors)ImpactonBusinessDriversS.M.A.R.T.GoalsSTEP4:SetIndividualGoalsOnceyouhaveanunderstandingofhowyouractionsimpactthecompany’svariousdriversofsuccess,thegoalsettingprocesscanhelpyouto:Alignyourperformancewiththecompany/unitstrategySetyourgoalsinawaythatwillpositivelyimpactthesedriversWorkoncompetencieswhicharerelatedtoachievingthosegoalsStep5:EnhancecompetenciesCompetenciesareindividualbehaviors,skillsandknowledgerequiredtoperformandfulfillspecificroleorjobrequirements.Knowledge(understandinggainedbyexperienceinacertainarea)EngineeringexpertiseHumanResourcesexpertiseMarketingexpertiseSkills(abilitytouseone’sknowledgeeffectively)CommunicationsProblem-solvingAnalysisBehaviors(personalconduct)TeamworkLeadershipCustomerfocusCOMPANY’SMISSION

SALESDIVISIONSTRATEGYToprovidecustomerswithpromptandresponsivesalesservice

thatwillincreaseconsumerconfidenceintheproductsoffered

andXYZCorporationwhileincreasingthenumberofproductssold.DIVISION’SGOALSIncreasenumberofproductssold.Decreasenumberofcustomercomplaintsandreturnsregardingsalesservice.XYZCorporationisa$10billionleadingconsumerelectronicsspecialtyretailer.Theyhave300storesin30statescoasttocoast.Productsincludehomeofficeproducts,consumerelectronics,entertainmentsoftware,andappliances.XYZCorporationdependsgreatlyonitssalesforcetoattractandretaincustomers.FinancialToprovidecustomerswithalargeselectionofaffordabletechnology

andentertainmentproductsinapressure-freeshoppingenvironment

whilemaximizingthecompany’sprofitability.CustomerSatisfactionOperationalEfficiencyBUSINESSDRIVERSExample—SettingindividualgoalsFocusontheoverallreturnratesofourproductsQuality#ofProductReturnsbyCustomersProductFailureRatesWhatYourGroup/TeamCanDoWhatYouCanDoINDIVIDUALGOALSSub-MetricsFirstLevelMetricCOMPETENCIESBusinessDriverKeepdailyaccuraterecordsofproduct“A”returnsInvestigatereasonsforreturnbycontactingcustomerdirectlywithin2businessdaysofreturnofreceiptSharereasonsforreturnwithProductionareabythe