Year Plan and Performance Goal Setting for 2012-13 @ SME Organisations

What are you Planning this year 2012-13 : How can you build Plan @ SME

April is generally the Start of Business Year (Financial Year Start) for Indian Firms. Our Financial year starts on April 1st and ends at 31st March. This month is very significant for all the HR folks because the following activities are expected to be done/co-ordinate for a better future.
Organisatioinal Objective Setting : HR to involve in building the organisational objectives for the year based on the mission and vision of the organisation. HR interacts and builds the clarity along with the CEO and the Heads of various Units/Function/Verticals... *Look for format at the end of this post.

Review of Performance: Its time for review of performance of the previous year interms of organisation as well as the Individual employees. This task needs the review of current performance system, expectations from the last year, setting the course of action for review from april last year to current year march... The greater challenge is if you have KRA's set for employees you need to make sure they are reviewed effectively. If the KRA's (or expectations of performance) are not set you have a greater challange to collate, create a meaningful performance review... have fun...
Challenges of Transition from last year to this year : After the review of individuals and organisation.. the greater challenge is to understand the future objectives and integrate into each employee/associate. Also the challenge of reviewing in rationalising the compensation, designations, roles etc.,
The Future : Actually this is What you can't predict.. But, can you stop! No!!!! So lets plan to have the details of organisational performance, future objectives, Understanding of each of the individual strengths, performance review data, Plan of action for the function for next year....

Time to Plan for year 2012-13 & Budget Realistically

As you are coming closure to the close of the year 2011-12 financial year, its important that you focus on planning for the next year. Here are the few steps suggest to ensure that you plan the most critical year ahead to beat the Recession Blues……
1- Define Organizational Objectives for year 2012-13
2- Identify the various matrices of organizational performance
3- Assign the basic assumptions based on Historical data for last year to future year and Make a tentative Manpower Plan (To be reviewed along the year)
4- Plan control mechanism every month for actuals Vs. Planned


Some of the Key areas of focus in execution of better next year:

1. Define Organisational Objectives for year 2012-13
a. If you have not done the Clear objective setting till date or did not bother because of the good market condition earlier.
b. Its time that you tighten the basics of Objective setting & Communication to employees this year which would put you into the driver seat or else You are planning TO EXIT the BUSINESS.
c. Some of the Inputs for Creating Objectives
i. Identify the most critical measurements for organizational performance.
ii. Define the objectives clearly using the SMART rule – Simple/Specific, Measurable, Attainable, Realistic/Realtime & Timelines for completion.
iii. Do not take more than 6-8 objectives may include Revenue, New Investment, Business expansion geographies/verticals, Quality, People Development, Technology & specific organizational developmental objectives.

2. Identify the various matrices of Organisational Performance
a. This may include various ratios related to Revenue Vs. People (Month wise, Division Wise and Yearly)
i. Revenue per person/employee
ii. Operational activities/logistics per Person/Employee
iii. Ratio of support function vs. the number of people in organisation
b. Based on the ratio’s create base assumptions for Manpower Planning ( Need to plan to stretch while assigning for better organizational performance).

3. Assign the Basic Assumptions for Manpower Planning
a. Make division-wise revenue & operational flow expectations
b. Assign the ratios to the future year
c. Create a statement showing manpower requirements division wise/ month wise / year.
d. Critical of this stage is to finalise the numbers & Various Cost implications based on the plan (Financial budget to be interlinked).
i. Map with each of the unit and finalise the realistic people requirements.
ii. Finalise the number of positions and the profiles to be tracked and hired during the next year.
iii. MOST IMPORTANT FOR THIS YEAR : You can list the acitivites which can be done at a backoffice create in any of the Institutes/colleges would help to reduce the budget. The Institutes can help you in Research for Business Development, Cold Calling, Creating Database, Identifying potential buyers/suppliers, create presentations and documentations etc., This is the most critical part in the times of recession… You would save atleast 60% of the cost using this model. Create a option for your to try as part of the plan.

4. Control the Plan
a. Identify the the time lines to review the actual vs. projected every month
b. Identify the areas where you can tweak the plans to ensure that it goes with your business value



Example of an Objective Setting Format (The following is a suggested format and can be improved to accommodate more specific inputs and timelines for better tracking): Create a Table for Organisational Objective Setting


Column1 : Key Area of Focus
 To achieve a goal of increasing the revenue by 2 folds to generate at least a revenue of 10 crores from all the existing Product/Service lines.

Column2: Measurement of Output:
To Generate revenues : Product 1 – 3 Crores, Product 2 – 2 Crores, product 3-5 crores

Column3: Timelines: Q1(Jun 2012) : 2 Crores, Q2 (Sept 2012): 3 Crores, Q3 (Dec 2012): 2 Crores, Q4 : 2 Crores *As per the seasonal expectations

Column4: Responsibility:  Divisional/Product Heads for Revenue, Operations for Product Delivery. Overview by CEO
Column5: Remarks : Comments related to objectives and clarifications if any.

The Other areas of Objectives for organisation can be :
2 New Products & Geographies
3 People Development
4 Financial Goals
5 Quality Goals
6 Technology Goals
7  Others...

( Suggested not more than 5-7 objectives to be focused in a year as corporate)

PLEASE DO ADD YOUR INPUTS AND QUESTION IF ANY, WHICH CAN BE ANSWERED AS PART OF IMPROVEMENT OF YOUR BUSINESS…..


About Husys: 


Husys - HR Function Management Company( www.husys.net ) is striving to build HR Department for Start-up, Small and Medium businesses since 2002. Husys strive to help in managing to stream line the  change that organizations go through during their growth phase. Husys addresses the key Human related issues to support organizational  Growth. We integrate the Hiring, Inducting, Performance Measurement, Policies, Employee Bonding and Development. We truly live our vision : "Synergizing Human Potential for Business & Society".