KPIs for Management In-house Training for TCC Land Executives.

On June 18, 2015, Prof. Dr. Chira Hongladarom and Dr. Sirilak Meksang were invited to be the speakers at KPIs for Management In-house Training for TCC Land Executives at the Empire Tower.

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Summary

KPIs for Management In-house Training for TCC Land Executives

on June 18, 2015

at the 195 Lounge, Empire Tower

KPIs for Management by Prof. Prof. Dr. Chira Hongladarom Hongladarom

  • This is the third workshop for TCC Land.
  • The purpose is to understand the use of KPIs to maximize the performance of the company.
  • I want to motivate you to work together under KPIs.
  • The company already has KPIs. Implementing KPIs with people is very sensitive.
  • Good people may perform beyond KPIs. Some are not highly motivated. KPIs set standards for those people.
  • In research, all young Ph.D. in Thammasat University do not have KPIs on how many researches they should do.
  • KPIs are good for large companies and giving incentives for good people.
  • KPIs are disincentive for some people and make them leave.
  • KPIs are borrowed from the West. The East measured based on finance.
  • All of you must pay roles in communication, exchange ideas and test run the indicators.

Dr. Sirilak Meksang Meksang

  • When we look at KPIs, what do you know and expect from KPIs?
  • We need to have KPIs to measure ourselves.

Participant’s expectations

Group 3

  • We have not much common knowledge on KPIs, we need to know the definition and how to use it in the real world
  • I know that KPIs can help the company expand.

Prof. Dr. Chira Hongladarom

  • Reality is the key.
  • Dr. Sirilak Meksang must show how to apply to hotel business.
  • My paper focuses on how to develop for the future.
  • Excellent.

Group 1 (President Table)

  • I look after hotel in Thailand and South East Asia.
  • We work in hotel so we want to learn financial and non- financial KPIs.

Prof. Dr. Chira Hongladarom

  • Non- financial are intangible and can be input for financial aspect.
  • We must to measure quantity and quality.
  • Non- financial KPIs are more important.
  • We must make people happy to work. Even though we pay them much, they leave because they are unhappy.
  • It is how to motivate people to work for you. Treat them with dignity.
  • In government sector and education, teachers file documents. They must be happy to do that. Do not burden people to do documentation. CEO must have combination and ask them whether they want to fill document or not.

Dr. Sirilak Meksang

  • People are foundation.
  • We need to know internal process

Prof. Dr. Chira Hongladarom

  • We can talk about learning process in workshop.
  • My concept of KPIs is more practical.

Group 2

  • We have hotel in New York and Laos. We manage international chain.
  • We need more specific KPIs. They must drive our responsibilities.

Prof. Dr. Chira Hongladarom

  • You need individual, group, business unit and the whole company KPIs.
  • Problem is that people do not put efforts.
  • KPIs must motivate people to do the best.
  • Be careful about talented capital.
  • Some good people lack energy and motivation so we need KPIs as minimum standard for them to work.

Dr. Sirilak Meksang

  • We need to educate line manager on thinking first. Your department KPIs must align with corporate KPIs.
  • We need to make sure that the department drives KPIs.
  • The leaders and managers must understand the process.
  • Work smart instead of work hard.

Prof. Dr. Chira Hongladarom

  • If people in the company are not highly motivated and happy, it takes some time for company to invest for people.

Group 4

  • KPIs are method of measurement of individual and business unit performance.
  • We want to know how to apply KPIs for hotel business, how to maintain KPIs and improve performance.

Prof. Dr. Chira Hongladarom

  • How to improve performance is important.

Prof. Dr. Chira Hongladarom’s presentation

  • Paron Isarasena Na Ayudhaya “Human Resource is the most important assets among other resources”
  • Singapore has less land but high income.
  • Antony Robbins “People have unlimited Potential”
  • I want KPIs to bring the best out of the people.
  • Albert Einstein "Not everything that can be counted counts, and not everything that counts can be counted."
  • We cannot use only one KPI.
  • I do many things based on reality. KPIs must be used based on the company’s demand. Work-life balance helps company survive in long run.
  • Future of your company is value diversity. It should be your KPIs.
  • When I develop people, I want the company to leap forward. It comes from people.
  • You must understand the context of your company and create value added for it.
  • People are important human capital as long as they are highly motivated and create value added.
  • Today is the first step that we have only 6 hours for learning and discussing about TTC Land’s KPIs for Management, thus we will look at our big picture and how KPIs have impact to our organization, we will analyze the TTC Land’s strengths and weakness. And then we will plan to improve TTC Land KPIs’s application.
  • In the workshop, when you present and I comment, it is a success.
  • We must find the way to work together in the future.
  • When we do the work shop, please follow the KPIs strategies by using 4 steps of thinking which are;

(1) Where are we?

(2) Where do we want to go?

(3) How to do it?

(4) How to do it successfully?

  • From my view, we have to understand the concept of KPIs – first “Key” – we must identify the important aspect of what to measure, key means the most important and critical one, not everything.
  • Performance” is mainly to measure the effectiveness of the individuals but we must include the team concept or department performance as well to maximize efficiency, effectiveness and people’s potential in long term.
  • “Indicators” means to come up with statistics to indicate performances which reflect the TCC Land high standard of work. The problem is that not all performances can be measured.
  • Therefore, the key is to understand the distinction between Non – financial KPIs and Financial KPIs, most companies think the financial KPIs are the most important – but financial KPIs is the end of the process.
  • Company can maximize financial KPIs and must measure non-financial KPIs.
  • Non – financial KPIs like the measure of human capital. Potential is also important with Non – Financial KPIs will be the requirement for effective financial KPIs and some of Non – Financial KPIs are difficult to measure we call this as “intangible KPIs” success as engagement in work, creativity, innovation, emotional capital, loyalty, work under pressure, patience, etc. And my concept of happy at work or happiness capital
  • My happiness capital consists of good health, passion, purpose, meaning, capability, Learning, Prepare, Teamwork, Coaching, Challenge and Enrichment.
  • Some of KPIs can measure in “Quantity” not “Quality”. But it is good to start and we should care and improve about our strategies by “Learn – Care – Share” Activities as today, we invite some outside experts to join you and let your staff participate, brainstorm and feedback which is useful for making the goals of staff (Non HR), HR and CEO go together.
  • I think the lesson learnt from many organizations are using KPIs too much so cannot motivate people working with their potential or disincentive. Especially, Potential people or talent which most of them need freedom or autonomy.
  • And the parameter has to different not “uniform” because it is the obstacle to work with high performance and cannot create “value” for our organization as my “3 V” concept of values.
  • Especially, “Value creation” and “Value diversity” which created by your talent but Talents” have to work well with others, too. I wish we will discuss about TCC Talent Management next time.
  • TCC Land has to balance “People” and “KPIs”
  • What are KPIs for your Talent?
  • What are KPIs for your staff with need KPIs measure their performance because some people work as a clerk, some are diligent but not creative. So KPIs need for some people who needs stimulation.
  • For example in the University, Ph.D. people have to do 2 topics of research in a year, but for the potential people they do 5 topics which don’t need KPIs.
  • KPIs like harvesting, which is how to “Potential +Motivation” or “Incentive + Empowering” Thus “Intangible” is important as my concept of “HRDS” that very difficult to define “KPIs” but it is very necessary.
  • To make people to happy to work, they must be motivated with HRDS: Happiness, Respect
  • Dignity and Sustainability.
  • I think “KPIs” is only statistics which need strategic of Human Capital to serve “Vision – Mission” of TCC Land.
  • We should apply from “CEO Needs” and understand the diversity of human capital, then we can use KPIs for management plus continuously human capital development in TTC Land. Because the success of TCC Land is not only using strategic KPIs for management but it is continuously potential development.
  • 8 K’s Theory: basic in Human Resource Development

1.Human Capital

2.Intellectual Capital

3.Ethical Capital

4.Happiness Capital

5.Social Capital

6.Sustainability Capital

7.Digital Capital

8.Talented Capital

  • Then, they will lead to creativity.
  • KPIs is the important tool for Management but how to apply with TTC Land and your people is more important because it is a part of happiness capital development, high performance organization and sustainable development.
  • It is a long journey, rough as the Chinese poem said..

To grow

Annual crops.. 3-4 months

Perennial.. 3-4 years

Human .. lifetime

  • In conclusion, my suggestion for applying KPIs for Management for TTC land.
  • Do not copy but understand and develop for TTC Land
  • Measuring only Financial KPIs is easy but it is not the right way, we need to focus on Non – Financial KPIs success has VISION, Strategies and Human Capital Development
  • Using KPIs for Management in “WIN/WIN” (Non HR - HR – CEO)
  • Continually Improvement based on participation, Happiness and Balance
  • Effective Communication
  • In Economics, Only easy to measure is not enough, but we should measure the difficult factors, too (Tangible – Intangible)
  • Be careful about the KPIs applied to diverse groups some talent people in TCC Land do not follow standard KPI’s. We must use specific KPIs for talented capital otherwise they lack incentives.
  • KPIs have to be a tool for Human Potential Development. Use KPIs to develop and harvest potential high performance people (Talent)
  • KPIs can use for Strategic Human Capital Management and Development

Dr. Sirilak Meksang

  • The successful bottom line of KPIs is people.
  • People are afraid what will happen if they do not meet KPIs.

Dr. Sirilak Meksang’s presentation

  • When you have business plan, you have corporate KPIs.
  • KPIs should not be more than 8.
  • You need to identify what should be this year.
  • Changes have impacts on KPIs. You need to talk to employees to stop some KPIs because it will affect morale. You have to do evaluation and integration what they did in the past. Then, you need to change KPIs.
  • KPIs are in performance management system. You set objective at the beginning of the year. You should do performance appraisal every year.
  • When we look at job role, we look at skill, knowledge, attitude and competency to define the performance. The gap will lead to training and development.
  • When you do objective setting or KPIs, you should talk to each employee about what they should do and what they need to do to achieve objectives set by KPIs.
  • If you have the right KPIs, your company will develop people on the right track and have talents.

Participant

  • Values
  • Integrity,
  • Passion
  • Product
  • Innovation
  • Process
  • Professional
  • Public we care
    • Career path development to build human capital
    • Technological development/ Cost ratio/ Purchasing
    • Pipeline KPIs
  • We have department KPIs.
  • We try to cascade KPIs.
  • Difficulty is that policy changes so you have to change objective.

Prof. Dr. Chira Hongladarom

  • I talked to the president. The non-financial aspect to be developed is people.
  • We can put in human capital process. We can do more learning in the future.
  • Today is important. We can turn company into learning organization.
  • KPIs give a chance of human capital quality improvement.
  • Individuals need to be motivated and happy to work.

Dr. Sirilak Meksang’s presentation

  • When we do measurement, we need to have evidence of what we do.
  • We have objectives and put scores and ratings.
  • There must be a list of critical actions to reach objectives. If you cannot achieve critical actions, you cannot achieve KPIs.
  • We need to communicate code of conducts to employees.
  • Line managers must know how to write KPIs and understand performance appraisal.
  • They must be able to explain by using facts and evidence about the reasons for each appraisal result.

Prof. Dr. Chira Hongladarom

  • Many things cannot be done by KPIs. We must learn to make sure that the work is done with quality and CEO and executives are happy.
  • We must move the whole company in the one direction.
  • People’s KPIs will be discussed more.

Dr. Sirilak Meksang’s presentation

  • In organizations, we have different generations and they vary feedbacks.
  • You must have the right conversation with different generations.
  • You need to convince these are things your staffs need to do to achieve objectives.
  • Please give the constructive feedbacks and people will not feel too bad.
  • Performance management is helping, supporting and motivating your team understand objectives and achieve KPIs.

Prof. Dr. Chira Hongladarom

  • We understand that the company has plan.
  • There 4 steps for KPIs

1.Ask where are we?

2.Where do want to go? (KPIs goals)

3.How to get there?

4.How to overcome obstacle?

  • We must focus on 3 and 4.
  • We need to understand different kinds of human capital before using KPIs.
  • We need to communicate with employees. The boss and employees should adjust communication styles.
  • You have to invest in people.
  • The key is how to improve performance not how to set KPIs.
  • Combination of the company must synergize one another.

Participant

  • When we talk about KPIs, we need to get consensus between department head and staffs?
  • How much can you compromise staffs’ inability to achieve?

Dr. Sirilak Meksang

  • We can support them in motivation and knowledge.

Prof. Dr. Chira Hongladarom

  • KPIs must be win-win.
  • Some people must be trained and motivated to be the best.
  • Deadline is very important.
  • Long term vision can be improved by reading.
  • Leadership is also important. It is about other people trusting you.
  • High performance is not only deadline but finishing job with quality.

Dr. Sirilak Meksang

  • If staffs refuse to do jobs, find out if it is because motivation or still and help them develop.

Prof. Dr. Chira Hongladarom

  • We need to have communication training. We need them to be hungry for knowledge.

Participant

  • You focus on human capital. I agree.
  • Hotel motivates people.
  • Getting the right people. 80-85% of KPIs are attitude. It cannot be taught.
  • It must be two-way communication. We need to motivate staffs to work and see the same future.
  • Our company has different generations and it is a challenge for compromising. It is about attitude.

Prof. Dr. Chira Hongladarom

  • Do not let differences be conflicts.
  • Value diversity will be the future.

Dr. Sirilak Meksang

  • Diversity inclusion is a trend in multinational companies

Prof. Dr. Chira Hongladarom

  • I am pleased with the interaction.
  • My last two workshops had a lot of ideas but never came to non-financial KPIs like human capital.
  • People do well because of their motivation.

Discussion

Three opportunities and challenges for TCC Land for the future? And how KPIs can meet the challenges?

Intangibles KPIs-In your view, what are intangible KPIs?

  1. Finance
  2. Marketing/sales
  3. Internal Process Management
  4. Human Capital

How to apply the concept of 8K’s, 5K’s, 3 circles and HRDS for achieving KPIs successfully?

Group 1

1.Three opportunities and challenges for TCC Land for the future

Opportunities

1.1 How to grow capable and engaged team to match business plan development

1.2 Cost and investment plan to match revenue growth

1.3 How to balance portfolio expansion to match growing supply and demand of the region

Challenges

2. Intangibles KPIs-In your view, what are intangible KPIs?

2.3 Internal Process Management

2.3.1 SOP

2.3.2 Workflow

2.4 Human Capital

360 degrees

3. How to apply the concept of 8K’s, 5K’s, 3 circles and HRDS for achieving KPIs successfully?

3.1 8K’s

3.1.1 Human Capital-grow capable and engaged teams/

Rewards+Incentives+Recognition

3.1.2 Intellectual Capital-Job Enrichment+Training

3.1.3 Ethical Capital-Strengthen core value

3.1.4 Happiness Capital-To promote passion and link tasks and work-life balance

3.1.5 Social Capital-Integrated CSR projects internally and externally

3.1.6 Sustainability Capital-Emphasize sustainable concepts in all projects and processes

3.1.7 Digital Capital-Utilize technology to support growth

3.1.8 Talented Capital-Career development program in different levels

3.2 5K’s should be integrated in program.

3.3 3 circles

3.3.1 Context

3.3.1.1 Being in a happy workplace

3.3.1.2 Being optimistic to create harmony

3.3.2 Competency

3.3.2.1 Excellent career path development

3.3.2.2 Be able to point out potential talents

3.3.3 Motivation

3.3.3.1 Lower turnover rate (happier staff)

3.3.3.2 Link KPIs to reward systems

  • Evaluation
  • Bonus and incentives
  • Trust/failure/pride

3.4 HRDS can promote core value and meaningful of the purpose.

Prof. Dr. Chira Hongladarom

  • Comparing to past workshop, detail in human capital is very good.
  • Social capital is networking. Need to expand networking beyond silo.
  • Networking must combine the elements of the society in the future.
  • TCC Land can assure that human capital will move company into long term high level.
  • On the 3 circles, people work in organization like house. People will be happy if organization good for them.
  • If you treat people well like alliance, people can become part of your system.
  • Human capital is individual capability. Innovation, creativity and value added are important.
  • Creativity is turning action to success.
  • Involve academic as well as government people to be your network when you do social capital.
  • main principles
  • Trust one another
  • Mutual respects
  • Patient and understand their points of views.

Dr. Sirilak Meksang

  • Social Capital is to network within organization and it needs conversation.
  • Make sure we understand and trust each other.
  • This can be another KPI.
  • You need to manage stakeholders. They have different needs.
  • When people have beliefs which come from their attitudes, they will impact on people’s behavior, relationship and performance.
  • Understand that people have different needs and values.

Prof. Dr. Chira Hongladarom

  • Human capital is No. 1.
  • Other capitals are the subsets.
  • Quality of Human capital does not come from the years of education.
  • All capitals except digital capital are intangible.
    • Decision making/delegation
    • Internal Working Process
    • Manning/HR

Group 2

1. Three opportunities and challenges for TCC Land for the future? And how KPIs can meet the challenges?

Challenges

How KPIs can help meet the challenges?

1.1.1 Empowerment

1.1.2 Fear to make decision

-Clear SOP

-SLA (Service Level Agreement)

-Leadership Capability

-Dashboard and result presentation

1.2.1 Teamwork

1.2.2 Limited face-to-face communication with business units

-SLA (Service Level Agreement)

1.3.1 Training need/best staff

1.3.2 Mentoring and coaching

1.3.3 Product Knowledge

-Implement training

-On-site visit

-Introduction

1.4 Rewarding and recognizing success

-Cultural change

-Staff party

-Outing once a year

1.5 Lack of internal communication

-Weekly meeting

-Monthly meeting

-Supporting function meeting

2. Intangibles KPIs-In your view, what are intangible KPIs?

2.1.1 Tax management

2.1.2 Legal issues

2.1.3 CRM

2.2 Marketing/sales

2.2.1 Word of mouth and CRM

2.2.2 Market fluctuation

2.2.4 New project launch

2.3 Internal Process Management

2.3.1 Decision making criteria and communication

2.3.2 Approval process

2.4 Human Capital

2.4.1 Happiness in work and family

2.4.2 Benefits

2.4.3 Career path

2.4.4 Retention

2.4.5 Promote good and capable employees

3.How to apply the concept of 8K’s, 5K’s, 3 circles and HRDS for achieving KPIs successfully?

3.1 Good attitude

3.2 Good communication

3.3 Focus on the same direction

3.4 Good digital literacy

3.5 Good leadership skill

Prof. Dr. Chira Hongladarom

  • The key emerging is the way we work here.
  • Empowerment is not easy in family business. If we look at long time, we cannot deny it. It is a key to a new culture.
  • The way you do should not destroy sustainability.

Group 4

1. Three opportunities and challenges for TCC Land for the future? And how KPIs can meet the challenges?

1.1 Keep standard/ growth of hospitality business

  • Meet the goal set of each year
  • HR management system (training, recruitment, feng-shui)

1.2 Put the right man on the right job

1.3 International diversity/ cross cultural

  • Outing, gathering, workshops, meetings
    • Finance
      • CRM
      • Accuracy and timely
      • Tax management (legally and minimize)
      • Deadline management
      • Risk management
    • Marketing/sales
      • Joint promotion between hotel and TCC’s business units (Thai Bev, BJC, etc)
      • PR/Barter Agreement
    • Internal Process Management
      • Use less time for approval process
      • Two-way communication
    • Human Capital
      • Happiness at work
      • Work environment
      • Annual physical check up
      • Award and recognition
  • One of the competencies all of you have is macro and global competency linking to opportunity.
  • You are right that rhythm and speed are important. That is opportunity we must capture and turn into action.
  • 4 groups are excellent.
  • I learn a lot from this afternoon.
  • KPIs are how to achieve and use intangible to achieve successful KPIs in sustainable way.
  • Make sure that everyone contributes to the company.

2. Intangibles KPIs-In your view, what are intangible KPIs?

3. How to apply the concept of 8K’s, 5K’s, 3 circles and HRDS for achieving KPIs successfully?

3.1 Human Capital-put the right man on the right job

3.2 Knowledge Capital-outsource training

3.3 Digital Capital-SAP training etc.

3.4 Happiness/Motivation-Happy Hours, Health and Fitness Facility, Day Care and Welfare

3.5 Respect/Talented Capital-Promote internal staff and career path, job rotation, multi-skill, pre-opening team/taskforce

Prof. Dr. Chira Hongladarom

  • One of the competencies all of you have is macro and global competency linking to opportunity.

Group 3

1. Three opportunities and challenges for TCC Land for the future? And how KPIs can meet the challenges?

1.1 Timing – losing a lot of opportunity. We need to be prepared. Cut short on something too long and set KPIs to meet the deadline.

1.2 Competition- if we are not ready, we will be lost.

1.3 Work life balance- we must prioritize what will move up the company

1.4 Scope of work-set priority

2. Intangibles KPIs-In your view, what are intangible KPIs?

2.1 Finance

-External factors like social, environment and relationship

2.2 Marketing

-Understand customers’ demands

-CSR

2.3 Internal Process Management

-Communication must be correctly done.

-Operating time must be short.

2.4 Human capital

-Do not make the same mistakes twice

-Work-life balance

3. How to apply the concept of 8K’s, 5K’s, 3 circles and HRDS for achieving KPIs successfully?

3.1 Satisfaction on work is important.

3.2 Put people in the right place and we can have KPIs.

3.3 Encourage people to think out of the box.

3.4 Embrace failure. Learn from failure how to do better

3.5 Simple responsibilities

3.6 Set career path (career goal).

Prof. Dr. Chira Hongladarom

Dr. Sirilak Meksang

  • When we ask about of challenges, we want to think about everything.
  • Some can match skills.
  • All theories will help you close gap.
  • Thank you very much for your really good presentations.

Closing Remarks by Mrs. Wallapa Traisorat, the President of TCC Land

I would like to send a great appreciation and gratitude to Prof. Prof. Dr. Chira Hongladarom Hongladarom and Dr. Sirilak Meksang Meksang. We learn a lot of really wonderful inspiration for us to grow and develop great concepts to be a healthy organization. We also learn a lot of knowledge to develop us to work together and communicate to achieve our plans and targets to be one of the top companies to contribute to our country and the region. I would like to mention to all of you that it is a very nice to have your great participation and energy to contribute and for us to develop and work together even better. Thank you very much.