Author of this article: Li Ying
As more and more large enterprise groups choose to build financial sharing, the current construction of financial sharing has formed a standard methodology, and there are also many excellent practical experiences. However, there is a lack of sufficient standards and experience to guide how to conduct operational management. For example, performance management, which many companies are more concerned about: Which organization and position should take the lead? How to set fair performance indicators? How to drive employees to work actively and efficiently through performance management? Based on many leading practices, it is necessary for the financial shared service center to establish a sound performance management system in order to promote the continuous improvement of the overall management level of the shared service center. Based on the author's years of experience in the construction and operation of financial sharing and Yonyou's large number of leading financial digital intelligence practices, this article analyzes the performance management of financial sharing centers that everyone is concerned about.
The construction goals of financial sharing include: integrating resources, reducing costs, improving efficiency, ensuring quality, improving customer satisfaction, and so on. The realization of the above goals can be effectively controlled based on performance management, so that managers and every employee of the financial shared service center know their position, job responsibilities and goals, so as to ensure that the financial shared service center provides stable services for internal and external customers. , continuous improvement of quality services. Therefore, performance management is a very important dimension in the operation and management of the financial sharing center. It involves all aspects of organization, personnel, processes, systems, etc. It emphasizes the consistency of organizational goals and employee goals, and emphasizes the common growth of the organization and employees.
Establish a complete organizational system
First of all, a sound organizational system should be established to provide sufficient organizational guarantee for performance management. In the early stage of shared construction, there is generally no separate operation and management personnel, and the team leaders or team members are part-time. Performance management has not really been put on the agenda, but simply analyzed some performance reports and data. With the deepening of financial sharing construction, the financial sharing service center needs to set up a separate operation management group and full-time operation management personnel, including performance management posts. The performance management of the financial shared service center should be organized by the performance management post, fully cooperate with the team leaders and employees to carry out the performance management work, and report to the person in charge of the shared service center. Its main responsibilities are as follows:
-
Responsible for the improvement and optimization of the performance system of the financial shared service center;
-
Organize the formulation and revision of performance management plans and assessment dimension indicators;
-
Responsible for summarizing the data of various assessment indicators and preparing performance assessment reports;
-
Responsible for publicizing and communicating the performance appraisal methods of the financial shared service center;
-
Accept employee assessment complaints and follow up.
Set scientific assessment indicators
Secondly, setting scientific assessment indicators is the premise of performance management, and the scientificity and rationality of the assessment indicators will directly affect the success of performance management. For the performance management of financial shared service centers, the balanced scorecard is currently the mainstream method. It includes four dimensions of finance, customers, internal processes, and learning and growth. Decomposing these four dimensions into quantitative indicators of four dimensions can form the overall performance evaluation index system of the financial shared service center. The indicator system is divided into two aspects: organizational performance and individual performance.
1. Organizational performance:
Organizational performance can use the balanced scorecard to comprehensively guide the continuous improvement and improvement of the operation and management level of the shared service center through the design of the quantitative index system directly related to the positioning of the financial shared service center and the organizational goals of different stages of maturity. The index dimensions refer to the following:
financial dimension
-
Initial costs: software costs, implementation costs, training costs, pilot costs.
-
Human cost: the salary cost of financial personnel.
-
Cost to Income Ratio: Cost Profit Margin.
-
Plan completion status: the completion rate of the business plan.
customer dimension
-
Customer Satisfaction: Customers' overall satisfaction with the shared service center.
-
Whether the problem is handled in place: the complaint handling rate of the shared service center.
-
Service Level Agreement: Service Level Agreement Achievement Rate.
internal process dimension
-
Timeliness: the business processing efficiency of the shared service center.
-
Accuracy rate: The business error rate of the shared service center.
-
Process standardization: the business standardization rate of the shared service center.
-
Risk control: the control and monitoring of risks.
Learning and Growth Dimensions
-
New Business Training: Shared Service Center Training Target Completion Rate.
-
New business promotion: the timeliness and quality of new business response of the shared service center.
-
Completion of shared promotion: Whether the phased goal of the promotion has been achieved as planned.
-
Knowledge sharing: the number of knowledge uploads and downloads in the sharing service center.
-
Institutional system construction: the integrity of the institutional system construction of the shared service center.
-
Innovative applications: innovations in shared service centers, such as the introduction of robots.
2. Personal performance:
Individual performance is decomposed from top to bottom of organizational performance, which is consistent with organizational performance goals. The formulation of individual performance indicators has a great impact on employees. It must be able to motivate employees to actively pursue contributions to the organization and self-growth. The index reference is as follows:
Financial (efficiency) dimension
-
Workload: Set the monthly standard workload of employees according to different businesses, increase the corresponding points when the standard workload exceeds the standard, and deduct the corresponding points if the standard workload is lower than the standard workload.
Customer (service) dimension
-
Customer Satisfaction: The customer's satisfaction with personal business processing, and the corresponding points are deducted for personal complaints.
Process (SLA) dimension
-
Timeliness of business processing: If the employee's business processing efficiency exceeds the time limit stipulated in the SLA, the corresponding points will be deducted.
-
Accuracy rate: employee business error rate, if it is lower than the SLA agreement, the corresponding score will be deducted from the correct rate.
Learning and Growth Dimensions
-
Training Exam: Actively participate in training and pass the training exam.
-
New employee training: responsible for training new employees.
-
Knowledge sharing: including knowledge contribution, knowledge learning, and knowledge sharing points.
-
Process optimization: Actively assist in process optimization.
-
Innovative applications: put forward various innovative ideas, etc.
Form an effective evaluation system
In addition, performance management has different emphases in different development stages of the financial sharing center. Therefore, the formation of an effective evaluation system at different stages will directly affect the efficiency and service quality of the financial shared service center. It is recommended to set different evaluation standards for different stages and different types of jobs in the financial shared service center, specify specific assessment requirements and evaluation methods, and give certain weights, and regularly conduct statistics, analysis and assessment in the form of performance reports.
1. Organizational performance:
Since the financial shared service centers of each enterprise are in different stages, their work focuses are also different. Therefore, for financial shared service centers at different stages, the assessment requirements and assessment priorities are different.
-
Shared construction stage: It is necessary to measure the extent to which the financial shared service center can reduce costs and improve financial work efficiency through the integration of financial and related businesses. At this time, the main assessment is the financial dimension and the internal process dimension.
-
Shared optimization phase: Pay more attention to process optimization in all aspects. This stage mainly focuses on the financial dimension and the internal process dimension, and assesses the standardization of the business, errors, and the quality of financial data. At the same time, the satisfaction of the customer dimension should also be measured slightly.
-
Stable operation stage: focus on the service quality of the financial shared service center. At this stage, the customer dimension is particularly important, and it is necessary to focus on assessment of satisfaction and complaints. At the same time, attention should be paid to the improvement of data quality in the financial dimension and the optimization of new business processes in the internal process dimension. The learning and growth dimension needs to measure business development.
-
Operational Excellence Phase: Focus on measuring customer development. This stage focuses on measuring the customer dimension and the learning and growth dimension. The financial dimension needs to consider whether to measure the expansion costs and income of external customers. The internal process dimension focuses on continuous optimization of internal processes, customer information security, and financial quality.
2. Personal performance:
For the individual performance of employees, due to the inconsistency of job responsibilities, job content and work focus of each position, differentiated performance management objectives, performance appraisal systems and weights should be formulated based on the characteristics of the personnel positions.
-
Business processing sequence positions: mainly based on objective quantitative evaluation, mainly assessing financial dimensions and internal process dimensions, combined with a small amount of qualitative evaluation.
-
Operational Support Sequence Posts: Evaluate in a combination of qualitative and quantitative methods, mainly assessing internal process dimensions and customer dimensions.
-
Management sequence positions: mainly qualitative evaluation, adding the dimension of assessment learning and growth, the person in charge of the financial shared service center and the individual performance evaluation of each group leader should comprehensively consider the comprehensive evaluation of the members of the group.
Develop a sound performance management mechanism
Finally, as an independent organization, the financial shared service center should establish a sound performance management mechanism and implement whole-process performance management. This is of great significance for promoting and improving the performance of the organization and employees and forming a virtuous circle. The performance management of the financial shared service center should also follow the PDCA cycle, that is, performance planning, implementation, assessment, and application of results.
1. The whole process of performance management
The performance report preparation of the financial shared service center needs to be set according to the frequency of performance appraisal, and the performance management post is responsible for the preparation and release.
-
Performance plan: Design the assessment index system in combination with strategic goals and job responsibilities, and sign individual performance contracts.
-
Performance evaluation: The performance management post will summarize the relevant data obtained from the system or offline.
-
Compilation of performance reports: The performance management post calculates the final organizational performance and individual performance results to form a performance report.
-
Approval: The leader of the operation management team and the person in charge of the shared service center approve the performance report.
-
Publish performance reports: After approval, the performance management post releases organizational and individual performance reports.
-
Archiving: The performance management post is responsible for archiving the published reports for future reference.
2. Frequency of performance evaluation
-
Organizational performance: generally evaluated on a quarterly, semi-annual and annual basis.
-
Individual performance: evaluate on a monthly, semi-annual, and annual basis.
3. Application of performance results
Enterprises must apply the performance evaluation results of the financial sharing center in practice, so as to play the role of performance management. Based on the evaluation results, the financial shared service center can improve the overall performance level of the financial shared service center. Through the application of performance results, the financial shared service center can carry out rectifications in terms of systems, processes, and division of labor based on the evaluation results to improve the overall performance level of the financial shared service center; employees can understand their own work conditions and make improvements to ensure financial A virtuous cycle for shared service center personnel.
-
Positive incentives can be adopted for those with excellent assessment results, such as: salary increase, job promotion, providing opportunities for study and training abroad, being included in the talent resource pool as a backup management cadre for training, etc.
-
For those who are unqualified in the assessment results, pressure transfer can be adopted, such as: salary reduction, job demotion, participation in business training and examinations, reassignment of positions, etc.
4. Continuous optimization of performance management
The contents of performance management are not static and need to be continuously developed with the growth of the financial sharing center. The specific evaluation indicators and evaluation standards also need to be dynamically adjusted and optimized according to the actual situation. For example: in the initial stage of financial sharing, the performance evaluation indicators or evaluation standards can be appropriately relaxed, giving the new organization sufficient time and opportunities to continuously improve and optimize itself; The real level of performance and continuous improvement accordingly; after the financial sharing center runs stably, the performance appraisal indicators and evaluation standards can be adjusted again, so as to better and faster adapt to the innovative development of the enterprise business.
Rely on intelligent system tools
We can see that performance management involves a lot of indicators and evaluation models, and requires the support of a large amount of data. If all statistics are collected offline, it will be very difficult to obtain data and the workload will be very large, and the quality will not be guaranteed. Therefore, it is very important to have an intelligent system tool that can support data collection, processing and formation of valuable data assets.
Based on the financial sharing construction experience and a large number of enterprise leading practices, UFIDA has built two modules for the performance management of the financial sharing center, namely, operation analysis and performance evaluation, to help large enterprises obtain and analyze data faster and more accurately, and ensure timely execution of business , Effective focus on issues, continuous improvement of timeliness and quality, objective and fair performance evaluation, etc.
1. Operation analysis:
Operational analysis mainly obtains multiple application data of shared services such as shared operations, intelligent auditing, and images, and integrates data from multiple fields such as financial accounting and fund settlement to carry out detailed data sorting and layered processing, and finally form work progress according to the focus of shared operations , workload, work timeliness, and work quality analysis on four major themes, and more than 20 data reports, providing multi-faceted operational analysis data for users at all levels of the financial shared service center.
Figure 1: Operation Analysis Topic Report
2. Performance evaluation:
Performance evaluation is divided into organizational evaluation and individual evaluation, mainly including: performance modeling, performance statistics, performance evaluation of shared service center\working group\personnel. Organizational performance evaluation aims to evaluate the operation and management level of a shared service center through multiple dimensions, and make rectification based on the evaluation results, so as to improve the overall performance level of the financial shared service center; employee performance evaluation is based on different performance goals to create different performance The system, based on the system's detailed evaluation dimensions and evaluation indicators, helps the financial shared service center to realize the multi-level and multi-dimensional performance evaluation of personnel, and through the evaluation of employee work performance, rewards the good and punishes the bad, so as to improve the performance level of employees.
Conclusion
To sum up, the performance management of the financial sharing center is a process of continuous iteration and improvement, which requires a corresponding organization, full-time positions, scientific indicators, effective evaluation system, perfect management mechanism and system support, in order to form An effective incentive and restraint mechanism can continuously improve the quality and level of operation, so as to truly improve the operation level of the financial shared service center through performance management.