Letter to NST on the adoption of 360 by the government

Dear Mr Editor,

New Strait Times

360 performance appraisal is inconsistent

It was a bad decision to introduce 360 as the staff performance appraisal method  by the Malaysian government..  Definitely not after Key Peformance Indicators and Key Result Areas has been adopted and practiced. 

With 360 appraisal, performance appraisal goes back to the old subjective opinions of the appraisers.  All the disadvantages of judgemental assessment would come into play.  Some of them are helo and negative effects, central tendency and confrontation avoidance.  Assessors are prone to be influenced by initial impressions and recent performance.  To make matters worst, subordinates views are now taken into consideration by this model.  What is the value of the subordinates appraisal who definitely lacks the competency to evaluate his boss performance?

Being performance orientated government, appraisal should be on the output or outcome based results.  It is more objective devoid of cronism and favouritism..  If ministers are evaluated through their Key Performance indicators,  staff appraisals should be using the same tool. .  Performance measure facilitate benchmarkings which are useful in promotion, recognition and intervention purposes.

I suggest the Malaysain government should reconsider its decision.

Thank you.

Dr Arriffin Mansor

ABM Consult

012-2786282

arriffin@gmail.com

True Performance Gap Analysis

Variance or gap analysis which are either positive or negative are being normally applied in most business evaluation or appraisal processes.

The variance gaps could be broken down into sub-variance analysis:  broken down analysis to explain the causes of the gaps.  This is also called the performance network analysis.

The output input analysis is much deeper and better root cause analysis where true efficiency and performance are measured within  the dynamic of two performance periods.

The excel program could be used for the above purposes.

Graph could illustrate and distinguish true performance where output contributed by the increase of volume inputs are identified and eliminated.

The following performance areas could be measured by the output input analysis.

1. Corporate objective (CEO objective)
2. Functional departments 
• marketing
• production 
• purchasing
• HR
• Finance
3. costs, volume, profit model
4. working capital
5. fixed capital
6. Cash flow Projection
7. Financing Performance

Trainees shall bring back templates and models of performance metrics.

Through dynamic analysis, the impact caused by volume would be removed or ignored.  Thus only true performance shall be measured.

	STEPS	TOOLS	PURPOSES
1	Performance diagnosis	Gap and bench markings	Identify SWOT
2	Market Target	Market mapping	Identify market opportunity
3	Goals	Efficiency and Performance	Measures
4	Key Result Areas	Root cause analysis	Performance problems and solutions
5	Key Performance Indicator	A set of indicators	To measure performance of a job holder, section or department or business
6	Performance Measures	Output/input ratio, Non-ratio and non-finance	Measure all economic activities
7	Performance gaps	Graphic dimensional, illustration	To show by drawings the impact on output by inputs
8	Strategic Management	Strategic Map	Coordinated and integrated Strategies
9	Profitable Model	Cost, volume, profit analysis	Simulate profits with key variables
10	Business objective/goal	Return on Equity Chart	To check
11	Capital employed	Working and fixed capital	Strategic and best practices
12	Funding	Equity + Loans = Capital	A healthy capital structure
13	Expected Results of the plans	Financial Statements	To show the outcome/results
14	Healthy check on plans	Ratios	A balanced healthy outcome
		Tel 012-2786282	©arriffin@gmail.com