Rahul Deo Gupta

Rahul Deo GuptaMBA, B. Tech., BSMP, PMP

Head of Enterprise Project Management Office (EPMO)

Rafal Real Estate Development Co.

“Cascading objectives across an organisation through an effective SMO”

Who we are …

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Headquartered in Riyadh, RAFAL Real Estate Company was founded in late 2007, with the objective of developing distinguished communities with unique lifestyle, offering both, clients and Investors, a real opportunity to live and invest in style

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Our projects …

• The highest residential property in Riyadh and the first vertical residential compound in Saudi Arabia

• An ‘iconic’ property that people aspire to

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Our projects …

• The discreet service will exceed expectations and make our guests’ feel at home

• Defining global living in Riyadh

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Our projects …

• An aspirational and iconic mixed use residential tower managed by Kempinski

• Designed to reflect high standards of luxurious life style

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Our projects …

• An integrated, closed and vibrant residential environment

• Everything around you is designed for your comfort and lifestyle

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Through the eyes of SMO

SMO SMO

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Question 1 ???

What areObjectives, Initiatives & KPIs

?

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Objectives, Initiatives & KPIs …

I want to reduce my weight

Why would you want to reduce weight?

to remain healthy

Objective ?

Measure“to remain healthy”?

Work out some indicators• BMI• blood pressure• sugar in blood• cholesterol level, etc.

How“to remain healthy”?

Identify initiatives• Jog for 30 minutes every day• Having a prescribed diet, etc.

Key Performance Indicators• blood pressure• cholesterol level

Objective

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Objectives, Initiatives & KPIs …

Strategy

Objectives

KPIs Initiatives

RemainHealthy

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Question 2 ???

How can I arrive atObjectives

?

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A step backwards …

• Assessment

• Mission, Vision, Values

• Customer Value Proposition

• Strategic Themes

• Environment scan including Stakeholders requirements• SWOT

• Product/ Service attributes• Image• Relationship


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Affinity Diagram

Strategic Themes

• Strategic Themes

T1• Business Growth

T2• Business Value

Proposition

T3• Operational Excellence

Strategic Themes Intended ResultsBusiness Growth • We are close to our customers

• We are the market leaders in sectors we serveBusiness Value Proposition • We are a customer centric organization

• We add value to our customers• We develop local core technologies

Operational Excellence • Our processes efficiently and effectively deliver the customer needs

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Strategic Theme: Business Growth

• Partnering with the customers for a long term

relationship

• Being close to the customers with an intention

to understand their needs better and offering

them cost effective solution

• Being able to “earn” the customers’ trust

• Getting the rightful place in the customers’

share of wallet

Them

eSt

rate

gic

Res

ult

Fina

ncia

lC

usto

mer

Inte

rnal

Pr

oces

ses

Lear

ning

&

Gro

wth

We are close to our customers We are the market leaders in sectors we serve

Strengthen Customer Relationship process

Develop skills & knowledge

Enhance delivery of customer requirements

Attract & retain the best talent

Improve market expansion process

Improve Customer satisfaction

Increase sales

Business Growth

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Objectives (Strengthen customer relationship process)…

Description:Customer relationship management process runs throughout the customer lifecycle starting from being aware till disposal. All departments function according to the needs of the customers.

Intended Results:• Happy and loyal customers giving us more business• Increase in new customers• Increased customer loyalty• Increased presence in end user market (Moving from B2B to B2C)

Candidate measures:• $ Revenue from repeat customers• % Customer satisfaction score• # new key customers• % share of wallet of key customers

Candidate initiatives:• Train sales employees on Key account management• Launch SAP for visit management

Owner: National Sales Manager

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BSCFi

nanc

ial

Cus

tom

erIn

tern

al P

roce

sses

Lear

ning

&

Gro

wth

P2. Improve JVs, Mergers & Acquisitions processes

P1. Strengthen Customer Relationship process

P5. Enhance Operational processes

LG1. Enhance employee engagement

LG2. Attract & retain the best talent

LG3. Develop skill & knowledge

P4. Enhance Market expansion processes

LG4. Enhance succession planning

C1. Improve Customer satisfaction (Internal & External)

C2. Improve delivery of customer requirements

The Customer Honesty Reliability Adaptability

Our

Va

lues

F1. Enhance revenue F2. Improve profits F3. Reduce Cost

P3. Improve project management processes

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Strategy management

Mission

Vision

Strategic Objectives

Initiatives

KPIs

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Question 3 ???

What exactly are KPIs

?

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KPI definition

Measure Name $ Revenue from repeat customers Strategic ObjectiveStrengthen Customer Relationship Management process

Measure Owner XXXXXXX Unit of Measure Million SAR

Measure Calculation Formula= Sum of (Sales from repeat customers – Discounts to repeat customers)

Frequency of Update Monthly Frequency

of reporting Quarterly

Measure Data Element Sales from repeat customers Discounts to repeat customers

Measure Data Source(for defined data element above) Sales register Sales register

Current Value of Measure (Baseline _Dec 2015) YYYY Red <=95% Target Value Yellow >95% & <100%

Target ValueGreen >=100% Target

Value

Target Value of Measure

2016 2017 2018 2019 2020

XXX XXX XXX XXX XXX

Approval

Name/ Designation XXXX Signature/ Date

Name/ Designation XXXX Signature/ Date

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Stretched Targets and Performance

PERF

ORM

ANCE

STRETCHED TARGET UNREALISTICALLY STRETCHED TARGET

Burn off Zone

Disengagement & counter productive Zone

TARGET

Under performance

Zone

Performance Zone

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Question 4 ???

How can I cascade the Objectives

?

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Objective cascade

Now

Targ

et

Bsin

ess a

s Usu

al

Sub

Obj

ectiv

e 1

Sub

Obj

ectiv

e 2

Sub

Obj

ectiv

e 3

Sub

Obj

ectiv

e 4-10

1030507090

110130150

Strategic Objective -Enhance Revenue

MSA

R

GOOD

Sub

Obj

ectiv

e 1

1 Increase Sales in New Market

1.1 Set up a new Sales Team

1.1.1 --- Recruit

1.1.2 --- Train

1.2 Conduct Market promotions

1.1.3 … … … …

1.2.1 --- Market Promotion

1.n Increase Production

1.n.1 --- Increase Productivity

1.n.m.1 --- Prepare Procurement Plan

1.n.1.1 --- Implement Kaizen

1.n.m --- Enhance Monthly Production

Sub

Obj

ectiv

e 2

Sub

Obj

ectiv

e 3

Sub

Obj

ectiv

e 4

National Sales Mgr.

National Sales Mgr.

HR Manager

HR Manager

… … …

Mktg. Manager

Product Manager

Production Manager

Shop Manager

Line Manager

Production Manager

Procurement Manager

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Initiatives definition

Initiative Name & Description

Implement Key Account Management : Implement the best practices of Key Account Management

Strategic Objective Strengthen Customer Relationship Management process

Owner XXXXXX Start Date 01-Dec-2015Manager Director Business Development, AHC Completion Date 31-May-2016Intended results

Key account customers are identified along with their needs and those are delivered

Assumptions & Constraints

We have in-house capability to implement the initiative

Purpose To increased customer loyalty & grow the business Commitment 3 resources working 10 Hours per week

RisksInitiative many not be completed in time if resources are not available as scheduled due to other priorities

Total Budget (kSAR) 45

# Major Tasks/ Milestones Start Date Completion Date

Deliverable Owner

Milestone budget (kSAR)

1 Project kickoff & build project charter 01-Dec-2015 15-Dec-2015 Mgr. BD2 Initial study and gap analysis 15-Dec-2015 30-Dec-2015 Mgr. BD3 Brainstorming for solutions 01-Jan-2016 15-Jan-2016 Mgr. BD4 Implement the solutions 15-Jan-2016 31-May-2016 Director BD 4556

Project performance measure

$ revenue from repeat customers

Red <=95% Target Value

Yellow >95% & <100% Target Value

Green >=100% Target Value

ApprovalName/ Designation XXXXX Signature/

DateName/ Designation YYYYYYYY Signature/

Date

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Objective cascade

Corporate BSCFCPL&G

SBU BSCFCPL&G

SBU BSCFCPL&G

Individual Goal sheetF KPIC KPIP KPIL&G KPI

Example of Objective CascadeLevel Perspective Objective KPI Target OwnerCorp Finance Enhance revenue $ Revenue

(MSAR)500 Group CEO

SBU Finance Enhance revenue $ Revenue (MSAR)

100 SBU CEO

Dept Finance Enhance revenue from C-Region

$ revenue (MSAR)

50 Regional Manager -Central

Ind Finance Enhance revenue from Riyadh branch

$ revenue (MSAR)

15 Branch Manager - Riyadh

Corp Customer Expand customer base in MENA

# new customers

300 Corp. Sales Mgr

SBU Customer Enhance customer base

# new customers

100 Manager – National Sales

Dept Customer Enhance customer base in C-Region

# new customers

40 Regional Manager –Central

Ind Customer Enhance customer base in Riyadh branch

# new customers

15 Branch Manager - Riyadh

Individual Goal sheetF KPIC KPIP KPIL&G KPI

Departmental BSC

FCPL&G

Departmental BSC

FCPL&G

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Question 5 ???

How to tie up the individual performance to Objectives

?

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Objective cascade to EPMS

Section A : Objectives has 75%

weightSection B:

Competencies has 25% weight

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Objective cascade

Corporate

Business

Department

Individual

Obj

ectiv

eCa

scad

eStrategyReview

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Question 6 ???

How to depict single KPIs measuring multiple

Objectives

?

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X Matrix

Breakthrough Objectives(Themes)

KPIs

& Ta

rget

sObjectives

Initiatives

Theme 1Theme 2Theme 3Theme 4

Objective 1

Objective 2

Objective 3

Objective 4

Objective 5

Objective 6

Initiative 4Initiative 3Initiative 2Initiative 1

Initiative 5

KPI &

Targ

et 6

KPI &

Targ

et 5

KPI &

Targ

et 4

KPI &

Targ

et 3

KPI &

Targ

et 2

KPI &

Targ

et 1

Nam

e 6

Nam

e 5

Nam

e 4

Nam

e 3

Nam

e 2

Nam

e 1

Reso

urce

s/ O

wne

r

Owner: XXXXX

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X Matrix

Breakthrough Objectives(Themes)

KPIs

& Ta

rget

sObjectives

Initiatives

Theme 1Theme 2Theme 3Theme 4

Objective 1

Objective 2

Objective 3

Objective 4

Objective 5

Objective 6

Initiative 4Initiative 3Initiative 2Initiative 1

Initiative 5

KPI &

Targ

et 6

KPI &

Targ

et 5

KPI &

Targ

et 4

KPI &

Targ

et 3

KPI &

Targ

et 2

KPI &

Targ

et 1

Nam

e 6

Nam

e 5

Nam

e 4

Nam

e 3

Nam

e 2

Nam

e 1

Reso

urce

s/ O

wne

r

Owner: XXXXX

RelationshipStrongPartialNone

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Critical Success Factors

Leadership support

Communication

Initiative management

Right team

Process orientation

IT as enabler

Reviews

Prioritization/ Focus

Freedom to fail

Questions ?

Thank You

Documents

Rahul Deo Gupta