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PBC (Personal Business Commitment) is a personal business commitment plan. PBC is a tool to ensure the implementation of the strategy after it is formulated.
PBC is a performance management system based on strategy founded by IBM. Before IBM, all employees should set their own "personal business commitment" around the values of "pursuing success, quick execution and team spirit".
PBC agreement consists of three parts: 1) Business objectives (with a weight of 80%) include KPI and key tasks; 2) Management objectives (weight 20%); 3) Personal development goals (reference indicators).
The sources of these three parts are:
1) business objectives: divided into key indicators KPI and key tasks. Key indicators (KPI) are conventional indicators, including income, development, RePAR, quality and safety, which are reflected in the decomposition of the result indicators. The key task is dynamic indicator, which is the supplement and perfection of key indicator (KPI).
When I set business objectives in the PBC system, the sources of information include the following aspects:
Refer to the business objectives in the Boss PBC (information from superiors, colleagues and customers);
Consult relevant internal information, such as the company's strategic development ideas, company values, etc.
Communicate directly with the boss the phased key work that he is responsible for (refer to the phased key work of the department);
Refer to your job description;
Apply to the department head for consulting the performance index library of the department organization.
2) Management objectives: If the PBC agreement is signed by a team, the team leader must set the management objectives of the team.
At this time, we need to think before setting up from three aspects: the requirements of business objectives for organizational construction and employee management; Seven management behaviors that an excellent manager should have (goal commitment, teamwork, performance management, encouraging innovation, developing subordinates, recognizing contributions, and creating an atmosphere); The system of post competence that needs to be established urgently. On this basis, the person in charge should make clear the key points and difficulties of department management in order to further set the staff management objectives.
3) Personal development goals: With the help of the boss, set 2-4 indicators. This goal is for reference only, but all employees are required to set it.
Compared with other performance management tools, PBC has the following five differences:
Like other performance management systems, PBC has a PDCA closed loop (making personal performance commitments-conducting performance coaching-implementing performance evaluation-performance evaluation and application of results), which is a performance management cycle of PBC with commitment as the core. It emphasizes that the superior and the subordinate maintain communication and exchange in the closed loop, and reach an agreement through communication, which is very different from KPI performance appraisal.
The following figure is the PBC table, the core of which is that the performance objectives include KPI, that is, the results, as well as the key tasks and plans for implementing KPI.
Key tasks come from the goals in KPI, that is, what key tasks need to be completed to ensure the realization of the goals.
The evaluation cycle of PBC is generally four times a year, which is divided into the first, second and third quarters (focusing on the realization of performance goals) and the annual evaluation (comprehensively evaluating performance goals, management goals and personal development goals). The evaluation is based on the weighted score ranking and is divided into five grades:
The proportion of people in the five-level performance evaluation within the department is issued by the responsible department. At the PBC level, employees' personal performance is linked to the performance of their organizations, which ultimately shows the performance level of their departments. This evaluation is conducive to strengthening the team consciousness and cooperation consciousness of employees within the organization. If the proportion of excellent performance levels in the organization is relatively high, the organization performance is good (as shown in the following figure); If the organization's performance is poor, the proportion of excellent performance level within the organization is relatively low, and the proportion of poor performance level is relatively high.
After the performance results come out, the part that promotes the continuous improvement of performance is the performance improvement plan (as shown below):
? There are four applications of PBC's annual performance evaluation results:
1, as one of the bases for "I" to be promoted/eliminated (the performance appraisal result is only the necessary condition or threshold value for post promotion, besides, factors such as organizational development needs, personal ability evaluation and honor points should be considered before deciding whether to be promoted);
2. As a guide for the future development of "I", according to the five grades of the evaluation results, different employees are given such as guaranteed incentives, multi-directional rapid promotion, planned promotion with special guidance, inclusion in employee training plan, keeping in place, coaching promotion, making performance improvement plan, giving warning, and considering leaving.
3. As the basis for "I" to tailor the training plan: the boss will help "I" to clarify its own strengths and weaknesses, so as to make a personal training development plan for the coming year;
Quarterly and annual PBC will serve as the basis for my performance bonus payment and salary adjustment.
In fact, PBC is a comprehensive management system, which is connected with strategy and decomposed into result indicator KPI, which clarifies the relationship between key tasks and KPI and forms annual management goals and personal development goals. At the same time, strengthen the correlation between organizational performance and individual performance, and the application of performance results in human resources.
Before talking about PBC application, we must have a preliminary understanding of IBM strategic planning tool BLM. BLM is a management tool for strategic planning, and PBC is a support system for strategic implementation.
BLM (Business Leadership Model) is called business leadership model in Chinese and also translated into business leadership model. In the consulting industry, IBM's BLM model can be compared with the famous Boston matrix, SWOT analysis and Michael Porter's five-force model, and it is a method and platform for the convergence of enterprise strategy formulation and implementation.
BLM model helps the management to formulate, adjust and follow up the strategy from the aspects of market analysis, strategic intention, innovation focus, business design, key tasks, formal organization, talents, atmosphere and culture, and leadership.
At the beginning of the year, under the guidance of the department manager, every employee should make his own PBC on the basis of fully understanding the company's performance goals and specific KPI indicators, and list the specific actions, implementation plans and teamwork that need to be taken in order to achieve these performance goals in the next year. This is equivalent to the employee signing a performance contract with the company for one year.
The following is an introduction based on the case background, taking enterprise A as an example.
Enterprise A is a benchmark enterprise in a certain market segment of hotel chain industry, with advanced business model and ranking first in the market at present. Since the introduction of Round A in 2008, enterprises have developed rapidly. By the end of 20 13, there were 200 branches with sales of nearly 2 billion. Since 20 13, the market has changed, and domestic hotels such as international hotels have also taken a fancy to this market segment and competed for the beach. According to the external situation and the support of national policies, the decision-making level of the group has formulated the strategic goals of "100 stores in five years" and "10,000 stores" in ten years.
The company's medium and long-term strategic objectives have been formulated, which cannot be achieved according to the current internal strategic implementation system. How to make changes to meet the company's strategy of "a hundred cities and a thousand stores, a thousand cities and a thousand stores"?
In this context, in order to support the needs of the company's strategic development, it is urgent to make changes. The first thing that needs to be changed is the strategic planning and implementation system. During this period, the company consulted and evaluated many consulting companies and their solutions, and finally decided to introduce PBC performance management system.
Step 1, strategic planning. Before implementing PBC, strategic planning should be carried out first, and strategic map is a good tool-
The second step is to form an index database. Find each strategic theme through the strategic map and form a strategic index library:
Step 3: Refine indicators and key tasks.
The fourth step: each center undertakes strategic key tasks and refines them to form key task project cards;
Step 5: extract KPI and key tasks from the performance index database of each central organization to form the annual PBC.
Step six, make a detailed action plan.
The above figures are the logical process from the application of annual strategic planning to the formation of organizational KPI and key tasks of enterprise A.
Therefore, at the end of September each year, the senior management team of the enterprise should first brainstorm, discuss the expected results in combination with this year's annual strategic objectives, try to determine the five-year medium-term strategy, and clarify the work to be done next year. Next, the content of brainstorming is logically sorted out through the strategic map, and inappropriate annual strategies or management objectives for the next year are abandoned. Then, according to each strategic theme in the strategic map, extract the core KPI indicators and targets, and then discuss what key work to take next year to ensure the achievement of KPI targets, so as to further put the strategic KPI and key work of these companies into the first-level units.
According to the strategic indicators that units at all levels need to undertake, the core performance such as process performance will be improved and the annual PBC agreement will be formed. Then by decomposing the matrix table, according to the principle of horizontal to edge and vertical to the end, it is decomposed into employees at all levels. Therefore, PBC coordinates the company's long-term strategic objectives, annual business strategic objectives, organizational performance at all levels and personal performance.
At the same time, this management system is better than other performance management systems, that is, besides performance management, it is also a good strategy implementation system. Many companies have made a strategy, but they don't know how to ensure the implementation of the strategy, so they can adopt this management system.
In addition to KPI, key tasks are also very important in PBC management system, especially quarterly, monthly, weekly and daily, which involves process management to ensure the final result.
In practice, enterprise A has set up a strategic execution department, which is responsible for tracking and managing the key tasks of the year, quarter, month and week. Important key tasks are followed up and coordinated by the company through project establishment. At the same time, the core of the enterprise weekly meeting is to show KPI, especially the completion of important key tasks, which is displayed intuitively through the red, yellow and green light system. The focus of the meeting is to solve the problem of turning off the red light.
Through enterprise practice, I personally think that some effective strategies to promote PBC are:
1. Play to your advantage. Introduce external professional consulting institutions and experts. Especially in the early stage of the introduction project, most people in China believe in authority, and it can also ensure that it is scientific and systematic from the beginning.
2. Influence the chairman or president of the enterprise to systematically understand PBC and its role. PBC is a strategic implementation tool, and its introduction and establishment must be top-down, because it involves strategic planning and implementation. Let decision makers know what it is. What problems can be solved? What will happen?
3. Establish a leading body. Set up the PBC leading group of the company. This is also very important. It can avoid the contradiction between individuals brought about by the reform. If the decision is made by an organization, this problem can be well avoided.
4. Centralized training. Unify thinking and understanding, so that management can communicate in the same channel. In the practice of implementing PBC, some senior managers have no concept of strategic map, and some even speak jargon, such as why they don't put operation in the first place of strategic map and so on.
Through the unified training of authoritative teachers and experts, we can have a unified understanding of some basic concepts and systems, thus solving the difficulties caused by inconsistent communication and understanding. Unified training has the best communication effect and the highest efficiency. After the training of external experts, the company also needs to internalize the training knowledge and conduct training at all levels to let everyone know.
5. Pilot promotion. First in the headquarters, director level and above management positions, and then gradually promoted to regional, branch and grass-roots positions. Piloting can reduce the pressure of all promotion. Through local promotion, summing up experience, optimizing debugging and gradual promotion, the success probability is higher and the implementation is more stable.
6. Publicity and promotion. Let outstanding cadres express their opinions and publicize them in internal magazines and various channels. This is also very important, that is, some employees who have touching stories and outstanding achievements emerged through the implementation of this system will publicize on WeChat groups and various channels through corporate culture manuscripts and interviews, which are true and cordial, and the publicity effect is very good, which can really create a mainstream and enterprising atmosphere.
7. Make the project implementation plan. Warning in advance is arming in advance. Plan first and then act, that is, plan how to implement it, and let the top decision maker know what steps to take and what effect to achieve without causing information asymmetry.
The implementation schedule formulated by the enterprise at the time of promotion)
What is the effect of PBC implementation?
Judging from the current practice of enterprise A, PBC system runs well. Although it is not perfect, in the past three years, Enterprise A has done a lot of optimization in combination with the problems in use and the actual situation of the company (values, development stages, employee characteristics, etc.). ). Main achievements:
1. Today, * * * has 400 in-store branches and 500 preparatory stores.
2. The operating income is nearly 4 billion yuan.
3. From single brand to multi-brand strategy.
4. The annual target achievement rate before the change is 30%, and the annual strategic target achievement rate after the change is over 80%.
From the final result, this strategic implementation system has ensured the company's fastest development needs in the past three years. From the aspects of scale, performance and internal control, it effectively supports the realization of strategic objectives.
First, any management tool has its boundaries and should be used in combination with other management tools. Management is a comprehensive strength, not a single management tool or a powerful function, such as strategic planning ability, cadre ability, budget management ability and so on. The improvement of comprehensive ability is guaranteed by systematic training.
Second, the U-shaped change theory. Before any change, everyone's expectations are high. But because it is new, it will be different from the original habits, so everyone must have an adaptation process at the beginning. This period is very important. If the system is denied because the implementation process is not suitable, then all previous efforts will be in vain.
Therefore, the U-shaped theory tells us that we must persist in pushing, and with running-in, habit and adaptation, the effect of this system will be brought into play, and the more we use it, the better.
Third, build a performance management system, which is connected with the strategic planning system and then with the strategic implementation system. The performance management system is not related to the strategic planning system. If it is only a personal evaluation tool, its role is limited. Results management and process management must be combined to form a complete system which is controllable, clear and logical. The early warning mechanism of red, yellow and green light in process management is a good tool for process management, which improves the controllability of results and is combined with daily work.
Finally, any management tool needs to be constantly optimized according to the actual situation of the enterprise, so as to adapt to the development of the enterprise and take root faster and better. For example, during the implementation of PBC, Enterprise A introduced red and yellow light management mechanism, internal customer-oriented external performance, and insertion and arrangement methods for a few departments. The mandatory distribution ratio of PBC is not static, and it should be adjusted according to the development stage of the company and the actual situation of employees.