Performance Management System Within Sun

¶ … Performance Management System within Sun Microsystems Limited Ensure High Organisational Performance? Whenever we try to understand the possible responses of an organisation to the application of a management system to the organisation, one has to first study the organisation and its historic culture. In the case of Sun Microsystems the first step that we will take is the study of its top manager currently. The new head of UL operation is Trudy Norris-Grey and in the earlier assignment, was a Vice-President at Oracle UK.

This is due to Leslie Stretch being promoted to handle an international role at the head office. It is well-known that UK has been one of the most successful regions for Sun Microsystems at the time when the company was suffering due to the difficult years. Previously the organisation was best known for Sparc servers and Solaris operating system, and Sparc had been developed by the company. Now it is promoting x86-based systems and also a stress on the development of the Java development environment.

It is also trying to become important in grid computing and open source software. The company had not been viewed as a strong company as it had earlier grown in the dot com age and lost money later. When the dot com period ended, the company had a lot of expensive equipment lying around. The new manager has been an accountant and according to her the company has performed well after the dot com years.

(Trudy Norris-Grey, Sun Microsystems UK managing director) The achievement of the company can be seen from what they have done together with some volunteer programmers. They have come out with a Free Office suite programme. The word processing in this program is called Writer and that is able to read documents which have been written in Word or WordPerfect. There is also a programme called Calc which is able to open Excel spreadsheet files.

The database programme is called Draw and that is able to perform almost as well as Access and can open those files. Similar to PowerPoint there is a programme called Impress. While the programme is not perfect, yet this is available free and in the beta version. This programme can even write into a PDF. The major item lacking is for something similar to Outlook for email.

The group of programmers first created OpenOffice but soon found out that they could not compete with Microsoft which had an almost monopoly over the office management software. The MS Office is rather expensive and costs around $400 and that is difficult for a home user or small office to shell out. This gave the developers the idea of not trying to sell this programme, but give it for free.

(Open Office Is Open Season on MSOffice) This is some news which has come out recently and it makes it clear that the company certainly has software development capabilities. The aim of the top management regarding the company is also clear. The company has historically been an innovative company, and the continuation of innovation should not be a difficult task for the company.

Earlier the major innovations were from the development of products, but the marketing angle was not so good, and now the company feels that it should think more of customer requirements before undertaking development. The problem is not only with Sun, but with the total industry that it does not give value for money to the customer.

Even taking the simple example of a PC, it is known that it has more power than was available for landing Apollo on the moon, yet is it being used enough, and available statistics say that only about 10% of the power of a PC is used, and the PC lies idle for 90% of the time. (Trudy Norris-Grey, Sun Microsystems UK managing director) In the U.S. The investment every year currently on PCs is about $100 billion a year, and this money is not giving returns to the extent of $90 billion.

Sun also has to decide on the requirement of its customers. One of their major customers is the government for whom they have produced the identity details and this is stored in the computers as also on the identity cards. This cannot be shared with any others, naturally. The identity is used for the control of borders and felons and it has full details of individuals on them. Another area of their interest is grid computing, and this is a subject many people do not understand.

This helps Sun to get a window of opportunity to help people shift into grid computing. The European Particle Physics Laboratory, CERN is a big user of grid computing. They understand the facilities and are not bothered about where the job is processed, but are only interested in getting the answer back fast. (Trudy Norris-Grey, Sun Microsystems UK managing director) Thus it is clear that the organisation is trying to develop fast and one of their main requirements is in the area of marketing.

Now let us get into the area of first defining clearly what constitutes a performance management system, so that a decision on this can be taken. This means different things to different people. Some people feel that it is like a Balanced Scorecard while others feel that it is a total method of looking after an organisation from service planning to even individual appraisals of staff working in the organisation.

Other organisations know as an it system to help in the collection of performance data, and that is what most of the performance appraisal systems being sold by consultants and it companies are. Performance management frameworks, performance measurement and reporting systems are really the basic structures that can help in the management of the organisation. Thus it should be seen clearly that performance measurement is a part of performance management.

(Foundations of performance management) Where the organisations are well managed, and with effective frameworks there are proper balances between tight controls at the senior management level, a clear requirement for required reports and their formats as also a scope for flexibility in service. This is at the team and individual level so that the performance becomes meaningful to the customers. We should also remember the old saying that 'What gets measured, gets done' and this leads to effective use of robust and relevant performance management.

This information should be used as the basis of decision making, and that step is required for performance management to be effective and performance to be up to the required standards. This is the difficulty of using performance management as most organisations are not able to identify and use the required measures of performance. At many instances, the managers and others will require information about the same activity, and then what should be reflected in the measures is difficult to decide.

(Foundations of performance management) The need for measuring performance is essential so that the performance can be evaluated and then take the needed actions for rectification. In other words, if results are not measured, success cannot be distinguished from failure and if success cannot be seen it cannot be rewarded. The problem with not being able to reward success is that it is probably leading to the rewarding of failures, and also not getting the required lesson from success.

The difficulty with not seeing failure is that one is not able to get the lessons, and if the results are not achieved, then the corporate goals cannot be met. Finally, what gets measured gets done. The management problem here is that emphasis on measurement and collection of indicators of performance is often viewed as an end in itself. The fundamental objective of performance management should not be forgotten and that in this case should be improved customer satisfaction.

The other problem is in getting to the correct measurement tools required. The monitoring of performance should be in all levels of the organisation. This means that it should be at the corporate, department, service unit, team and individual levels. (Performance measurement: A measure of success) The key aspect of performance monitoring at the corporate level is the receipt by managing director the receipt of quarterly reports which monitor progress on the priorities for the company. This will be on different indicators as desired, or required.

The second set of reports should reach the department management or the service area managers, and this should come every month. This should cover the priorities in service and also monitor the statutory requirements which have been met. The third level of reports should be at the level of unit or team managers and this should be done regularly. The frequency here should be as high as possible and has to always look at the progress on objectives, and target and action plans for the future.

(Performance monitoring) It is important that a suitable set of performance measures be decided to see the performances of all groups against the corporate objectives. Measures should be developed at every level of the organisation as this will help in the measurement of performance at those levels. Again all services and teams will have action plans that they will have to meet which will make sure that the organisation reaches its goal.

There has also got to be indicators for individuals as this will determine their performance for their teams and the organisation. (Measures of performance) the total service plan has to focus on the corporate and service objectives, highlight the important matters to the customers and staff, and the decision about the ultimate user of the information and their purpose for getting the information.

(Key steps to effective performance measurement) The measurement of the task done is against the information and there details that one has indicators for the objectives and also decides whether the task done will be meaningful and robust.

The total group of measures that has to be used has to cover the objectives in the long and short-term, the achievements in both qualitative and quantitative measures as also in terms of strategic and optional goals of the organisation and finally has to reflect the views of the main stockholders of the organisation. The change has to be controlled with an appropriate number of indicators.

But all indicators are likely to change over time and that depends on the accuracy and stability that they offer, their relevance to the users of the information collected and whether the performance indicators have led to improvements. (Key steps to effective performance measurement) The ultimate test of the performance management system is that whether it is focussed on the aims of the organisation, and appropriate for the people who are expected to use the collected information.

At the same time the system should be balanced enough to cover all aspects of the work done by the organisation, and also strong enough to withstand changes in the organisation due to people coming or going. This is a part of the business planning and management process and thus has to be integrated into the organisation. For the system to be used for a long time, it has to be cost effective as also relevant to the aims of the organisation.

While the performance management is also performing performance appraisal, it should not be viewed in a manner so that it ends up increasing waste, and all activities of individuals should be in lines which are helpful to the organisation and also on the account of the person who does it. In itself the system should be well defined and well understood due to the need for collection of data consistently.

(Performance measurement: A measure of success) At the same time the collected data should be in a form that will permit the collected data to be used easily. The system should be accurate enough suitable for the proposed use but open to required changes at a later date. The collected data should remain a form that will help comparisons with past periods or programmes. The data should be built up with clear documentation and thus verifiable.

While this is fine in theory, it may be difficult to build up systems which meet all these criteria and this requires a certain amount of flexibility. This means that the system can be started with only indicators that meet some of the requirements, and the balance decided when the system has been used for some time. (Performance measurement: A measure of success) There are organisations which have been working on this line since 2003 and those cases may be studied to have better ideas regarding the implementation of this concept.

This will also clarify the improvement of performance through the use of this method. (PMMI interim findings) In summation one can say that performance management can be viewed as a strategic approach in the management of business. The objectives of this system are to enhance organisational effectiveness and increase the value of the organisation through the increase of existing capabilities and development of new capacities. The system is mainly concerned with the development of capabilities at organisational level and individual level as also the development of individuals and working teams.

The importance of the system is due to the fact that it deals with the general difficulties that the organisation faces in the changing environment, and in achieving that the business goes in the general direction that it is really trying to go. This will help the business to achieve its long-term aims.

(Performance Management) It is important to remember that performance management is not a function under the total control of the personnel management team, but will have to be taken care of by the general management and individual managers at all levels. Yet the personnel managers have an important role to play as they are the important factors for the development of managers and individuals to develop the process of performance management and the needed skills in those individuals.

They also have to advise on the alignment of corporate, individual and team objectives in a manner the added values that are expected can be achieved. The system of personnel management is thus a help for the personnel and development specialists to get a real opportunity to be directly able to contribute in and develop the influence of corporate strategy to directly contribute to the improvement of the bottom line.

(Performance Management) The attitude that has been promoted by Sun Microsystems is that of building up trust and that can be expanded clearly by using performance management. It has been said by Cargill, director of standard at the company through saying "How do you manage communications? Management is about planning, organising, controlling and directing.

The struggle is the degree of management." (Hats Off to Communicators a Great Success in Denver) This is even truer about the Web sites which prompt people to say that one should look for what one did not say but what one did not say. The most important point is how much of truth should a person divulge to others. According to Cargill that question is answered by the previous problem and the importance is in answering the questions quickly.

The answers to the problems should be worked out before competition could even get around to asking the questions. This requires trust and that is not identical to truth. The basis of trust by people is on consistent behaviour. So far as Sun Microsystems is concerned, Trust has been an essential part of the organisation. When trust is a part of a relationship between two parties, it is like an act of faith among them.

(Hats Off to Communicators a Great Success in Denver) It is quite easy to destroy trust, but it is very difficult to rebuild trust when it is lost once. The use of technology according to him can be made to the advantage of the government communicator when the Web sites of organisations are made friendly to the user. This has to be combined with anticipated reaction to the statements of others about the organisation who's Web site it is. The importance is about issues where the organisation is involved.

One has to remember that Internet is a visual medium that reacts instantly, and one can understand it if one behaves like a user - listening to what is required and at the same time differentiating between the wants and the needs. The beginning should be kept simple and clear and this is due to the fact that the user will not have attention on the screen for more than seven to ten seconds during which he expects the visual to come up.

Then the site can be built up through various layers of information, and that will permit the user to go in as deep as the user wants. The important factor regarding communication is the creation of values, and this concept must be fully utilised in deciding of what is to be put on the Web.

(Hats Off to Communicators a Great Success in Denver) This is the feeling of a director of the organisation, but has it reached all the people in the organisation who are working on preparation of Web sites for customers? That highlights the requirement for the development of performance management. The results of the implementation of performances management now has to be studied and one of the interesting instances in performances of the local authorities, where it is being implemented from May 2003 and interim results are available now.

The basics of performance management have already been described and are not so difficult to understand. Whereas the principles are simple, the difficulties are in implementation and one of the areas is the setting up of meaningful targets. Once the system is set up, it has to be seen that the system is working, and this requires the setting up of many inter-related elements which have to be developed later.

In terms of literature on the subject it is crucial that the activities integrate culture, process, procedures and the management of people to enable learning and continuous improvement of the organisation. Thus it is essential for the correct environment to be built up in the organisation and this requires a strong leadership and a desire to improve the organisation. Both of these exist in Sun Microsystems. This is the culture of performance.

At the same time, the authorities will have to have patience as performance management is a long-term activity, and may take several years for the full development and embedding within the organisation. It will also require continuous attention. This review, of course does not stop some improvement from being perceived during the process of establishment.

(Interim findings from research into performance management in well-performing local authorities) It is important to have checks on the implementation along the way, and according to the staff who experience it, may be called the carrot and stick approach for implementation. In one of the authorities at Stockton-on-Tees, there has been the permission of flexibility to avid being straight jacketed in the approach of service meeting the requirements of the implementation plan. This has enabled the local implementation staff to feel that personnel management is their own development.

The changes at local level can be seen at Bath and North East Somerset also where the local council implemented the service staff on site to report vehicles which were vulnerable to the Police. They knew that this would stop the reduction of crime and this was a part of the objectives at the organisation level.

Discussions with the people at local level are also important and at Chichester District Council there was a day long meeting of the Head of Property with the implementing group to finalise each area of service and the contribution every role in increasing the economic prosperity of the area. This helped the staff to get motivated, made the staff motivated and the staff understood that their activities would be checked on. The gradual incremental approach is useful in getting the basics correct and then developing them to reach the objective.

This was seen to be useful in Bath and North East Somerset where this enabled the authority to regularly deliver on the legal requirement of more freed time for the officers to concentrate on other priority areas. Performance measures, which are a part of performance management, can also open the possibility of improving other areas like business planning. This can be seen in the case of West Sussex which has concentrated on improving performance management as one of the priorities of its CPA improvement.

This has led them to start on a new approach for staff appraisals and this is expected to strengthen the link between individual performance and business planning. (Interim findings from research into performance management in well-performing local authorities) There were two books called Crossing the Chasm and Inside the Tornado that were published in the end of nineteen eighties and declared to be essential reading for the staff at Sun Microsystems. Crossing the Chasm was a spotlight on what was being attempted at Sun during those early years of Sun.

This tried to explain the behaviour of customers when a new technology or idea came up, that threatened to disturb their sector. (the Chasm Companion: Book Review) That was.