Effective Outcome-Based Performance
2024-07-13

Steven Covey advises on achieving success with this principle: Begin With The Clear Big End In Our Mind. It is very true that every time we want to do something the most effective way is to bring up a clear picture of the end result first and then we look for ways to achieve the End Picture in the most effective and efficient way. This applies to all professions: Architect, Chef, Sport, and so on, each of these professions must imagine the best end result that will meet the emotional needs of their respective Users or Clients.

The same applies in managing work to get the best Work Output in the most effective and efficient way is to first formulate what the best End Result is, complete with quality indicators. After that, then formulate how to realize the performance target in the most effective and efficient way.

The formulation of all Output Targets in the Company is fixed. What is different is the size of the success indicators (KPIs). The Main Function of each Work Unit (Resource) is fixed: Marketing, Sales, Production, IT, F&A, HC, Audit, etc. It's like a doctor's profession. Each specialist has a different scope of work even though it is in the same area, namely in the human body. And each specialist has a list of work outputs that will be the same.

So, an effective Job Description does not contain a list of tasks but contains a list of WORK OUTPUTS that must be produced by each position. This is in line with Steven Covey's principle: "Begin With The Clear Big End In Our Mind".

EXAMPLE:

LIST OF JOB OUTPUTS:

Job Description will bring Business Value or Capital when it contains a list of Performance Outputs that must be produced. If the Job Description only contains a LIST OF TASKS then employees only focus on the activity process of these tasks. And employees feel that they have performed well if they have carried out the task. Whereas Human Capital emphasizes the Business Value of the Work Output of each HR. So the CAPITAL aspect is not from the HR person but from the OUTCOME produced by HR. If there is HR that does not produce OUTCOME, it means that the HR does not produce Business Value or does not provide ROI or does not show its Capital value.

Example of Human Capital Section Output List:

1. Availability of up-to-date and accurate documentation regarding: Organization Capital and Job Capital of all Work Unit Organizations in the Company.

2. Achievement of HR KPI Targets in all Work Units.

3. Achievement of the level of conformity between the Profile of all Positions and the Profile of the Human Resources who hold them.

4. Achieving the level of filling of all positions in a timely manner.

5. Achieving the level of HR Costs that meet reasonable standards in all Work Units.

6. Achieved compliance level with all articles of the Labor Law.

7. Achievement of a reasonable level of operational costs in HC Work Units.

8. Achievement of the target emergence of Core Values Behavior from all HR in their respective workplaces.

9. Achieving the quality of HC Section services for HR needs in the Company.

The list of Position Outputs above is the main content of the Job Description of an HC Manager. Furthermore, the HC Manager delegates (Cascading) all of these Work Outputs to his subordinates. And, the HC Manager's job is to control and motivate the subordinates to complete the KPI targets of each Work Output.

Note that the content of Job Description is not a list of tasks but a list of work outputs. From the list of work outputs, a continuous innovation process is then carried out to find the most appropriate way or strategy or method to realize each KPI target for each Work Output.

This is what is meant by OUTCOME-based Performance Management. Where, Outcom is a Work Output that is attached with its KPI target.