flatley at mhic.com
01-04-2002, 05:23 PM
Dear Niamh,
*
I wouldn't rely solely on such rigid fixed targets.*
*
We are an eleven year-old loan consortium (CDFI) that has financed over $550 million in affordable housing throughout Massachusetts.* We have successfully used a review system based on reaching or exceeding objectives established at the beginning of the year -- mutually agreed by supervisor and employee. *Naturally, an organization will have numerical targets it sets for itself each year (but this itself should be a dynamic process, changing targets over time) -- and these overall targets should be passed along to the staff who will have to deliver them.* But their review should allow for innovation (and failure) and new initiatives that occur (or should) on an ongoing basis.
*
We also divide our incentive compensation into two components.* Officers in our Corporation are eligible for incentive compensation in a “base” rate (up to 15%), as approved by our Board each year, as the same rate for all Officers, and an “individual” amount up to 10% -- or a total maximum possible “bonus” of 25% of salary.* The larger “base” amount is based on the theory that if the organization is successful, then everyone contributed – and should benefit.* (Rewarding teamwork is always essential, I believe.) *This is more like “profit sharing” in some ways.
*
One other point, we give incentive compensation to all employees.* Non-officers are eligible for a maximum bonus of up to 20% of salary – again on the theory that everyone does contribute to success (and should have a stake in achieving it!).
*
Attached below are:
*
our individual goal form, established at the beginning of each fiscal year;
the individual review form, filled out at the end of each year; and
and company review forms (as presented to our Board for our FY 2001).*
*
Last year (FY 2001) our incentive compensation maximums were 20% (officers) and 15% (non-officers), and I have modified the forms to conform to our current (FY 2002) standards.* Please feel free to use these forms as you see fit.
*
Joe Flatley
*
*
*
Individual Performance Goals
July 2001 through June 2002
*
Employee’s Name:********************************************* ****** * ********* Department: *
*
List individual performance goals, maintaining consistency with department goals.* Outline measures of success and possible interim steps necessary to achieve success.* Indicate the level of difficulty for each goal by selecting a number between 1 and 5, with 1 being relatively easy and 5 being very difficult.* This rating should reflect the difficulty in meeting or exceeding the outlined performance measures.
*
*
Level of Difficulty
<!>1. *** <![endif]>GOAL:
* *** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
<!>2. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
[i]1*** 2*** 3*** 4*** 5
o** o** o** o** o
<!>3. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
[i]1*** 2*** 3*** 4*** 5
o** o** o** o** o
4.* GOAL:
***** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
<![if !supportLists]>5. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
<![if !supportLists]>6. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
*
*********** Employee’s Signature* ___________________________________************** Date* _________________
*
*********** Manager’s Signature* ____________________________________************** Date* _________________
*
*
*
*
ANNUAL PERFORMANCE REVIEW FORM
JUNE 2001
*
*
Employee’s Name:********************************************* ****************** Department: * *
*
PART 1 – GOALS:* Transfer the list of abbreviated individual performance goals (title only), including the level of difficulty for each goal (indicated by a number between 1 and 5, with 1 being relatively easy and 5 being very difficult), as stated in the Individual Performance Goals for July 2000 through June 2001 form.* Please attach a copy of the full version of the Individual Performance Goals.* Indicate evaluation rating for Performance on a scale of 1 to 10, where 1-5 represents the range from marginal to good performance in meeting expectations, and 6– 10 represents various degrees of exceptional performance, as measured by the individual’s success in exceeding expectations.
*
*
*
*
*
EMP
MGR
<![if !supportLists]>1.***** <![endif]>GOAL:
*
Difficulty
__****
Performance
__
*
___
<![if !supportLists]>2.***** <![endif]>GOAL:
*
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>3.***** <![endif]>GOAL:
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>4.***** <![endif]>GOAL:
Difficulty
__
Performance
__
*
___
<![if !supportLists]>5.***** <![endif]>GOAL:
Difficulty
__
Performance
*
_
*
___
*
<![if !supportLists]>6.***** <![endif]>GOAL:
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>7.***** <![endif]>GOAL:
*
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>8.***** <![endif]>GOAL:**
*
Difficulty
___
Performance
*
___
*
___
*
*
PART 2 – OTHER:* Describe any initiatives, accomplishments, and/or atypical responsibilities not assessed in PART 1 – GOALS ([i]optional).
*
Employee:*
*
*
*
*
*
Manager:
*
*
*
*
*
*
PART 3 – OVERALL RATING:* An accounting of the employee’s overall success in meeting core responsibilities, challenges, initiative, teamwork, and expansion of role.* Please mark the box that most accurately depicts the employee's performance during the review period.
* <!>cid:image001.gif@01c1953e.646adb00<![endif]><!>cid:image002.gif@01c1953e.646adb00<![endif]><![if !vml]>cid:image003.gif@01c1953e.646adb00<![endif]><![if !vml]>cid:image002.gif@01c1953e.646adb00<![endif]> [i]Meets Expectations [i]Exceeds Expectations Performance Goals (Overall rating based on PART I)
1
2
3
4
5
6
7
8
9
10
Performance Beyond Stated Goals: ** Other: (explained in PART 2)
1
2
3
4
5
6
7
8
9
10 ** Teamwork
1
2
3
4
5
6
7
8
9
10 ** Expansion of Role
1
2
3
4
5
6
7
8
9
10 ** Initiative
1
2
3
4
5
6
7
8
9
10 Overall Rating
1
2
3
4
5
6
7
8
9
10
*
PART 4 – COMMENTS:* Please use this section for other performance-related communications you wish to include in this performance review.
*
Employee’s Comments:
*
*
*
*
*
*
*
*
*
Manager’s Comments:
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
____________________________________************** ********* ______________________________________
Manager’s Signature******************* Date********************************* Employee’s Signature****************** Date
*
*
*
*
*
*
*
************************************************** ******
*
Annual Organizational Performance Review Summary
(June 2001)
*
I.* Achieving the Goals in Business Plan
**** Review progress in achieving each of the goals.* Score the performance on a 1 to 10 scale (1 being lowest and 10 being highest).* Determine evaluation based in part on difficulty of goal.
*
Evaluation
1.** GOAL:********** Solicit, secure interest, underwrite, and close loan/investment projects.
***** RESULTS:*** $80 million in loan/equity commitments and $73 million in closings; record high level of closings.* MHIC has maintained its credit standards and return objectives in a highly competitive marketplace.
*
*
<!>2.***** <![endif]>GOAL:********** [i]Develop new markets and new products
***** RESULTS:*** Restructuring of loan pool as LLC; new acquisition and line of credit products; partnership with Property and Casualty Initiative.
*
*
3. * GOAL: ********* Achieve minority participation in jobs and businesses.
***** RESULTS:*** For the most part, meeting very ambitious goals.* Minority jobs: 63% in Boston area; 19% average in balance of state.* Minority businesses: 45% in Boston area; 10% average in balance of state.
*
*
<!>4.***** <![endif]>GOAL:********** [i]Maintain member/investor confidence.
***** RESULTS:*** Secured over $46 million in net equity in 2000 Fund, largest ever; return investors; positive references; broadening base of investors.
*
*
<!>5. *** <![endif]>GOAL:********** [i]Manage portfolio; confront problems and work to resolve.
***** RESULTS: ** Resolved loan credit problems; credit review process effective; significantly strengthened asset management systems and staffing; problems identified and actions taken toward resolution.
*
*
6.** GOAL: ********* Achieve excellence in customer service.
***** RESULTS:*** High marks from customers in surveys; repeat customers; demonstrated loyalty of existing customers.
*
*
*
II.** Overall Evaluation
******** Evaluate overall performance, on a 1 to 10 scale.
* ************************************************** ********************************* Low*********************************************** ************************ High
Results against Goals********************************************* *** o o o o o o o o o o
Ambitiousness or Difficulty of Objectives**************** o o o o o o o o o o
Initiative**************************************** **************************** o o o o o o o o o o
Teamwork****************************************** ************************ o o o o o o o o o o
Organizational Learning/Strategic Planning************* o o o o o o o o o o
*
III.* Incentive Compensation Levels
****** Establish the base incentive compensation levels for all employees for this year.* In addition to this base amount, each employee is qualified to receive an individual incentive compensation amount of 0% to 10%.
<![if !supportLists]>·******* <![endif]>Officers:*************** Range: 0-15%********* Recommended:* 15% base incentive compensation***
<![if !supportLists]>·******* <![endif]>Non-officers:******** Range: 0-10%********* Recommended:* 10% base incentive compensation
*
*
*
*
*
-----Original Message-----
From: Niamh Goggin [mailto:niamh.aspire-belfast@lineone.net]
Sent: Friday, January 04, 2002 10:26 AM
To: MFP
Cc: communitydevelopmentbanking-l
Subject: Performance Related Pay
*
We are a small young microfinance organisation lending to
micro-enterpreneurs in Belfast and other urban areas in Northern
Ireland.* We are about to recruit a new batch of loan officers and
intend to offer performance related pay.* The labour market requires
that I pay a roughly two-thirds basic salary and one-third performance
related pay.* The main performance indicators I use for loan officers at
the moment are:
*
No. and volume of loans against monthly targets
Portfolio outstanding against target
Portfolio at risk against target
Percentage of borrowers in (government defined) areas of particular
deprivation.*
*
I would be very grateful for practical, non-theoretical advice on
structuring performance related pay for micro-finance operations.*
*
Happy New Year / Bliain shona dhibh go leir
*
Niamh Goggin
*
*
Aspire micro loans for business Limited
5 Union St
Belfast
BT1 2JF
Northern Ireland
Tel +44 (0)28 90246245
Fax +44 (0)28 90246255
email:* niamh.aspire-belfast@lineone.net
<mailto:niamh.aspire-belfast@lineone.net>*
*
In its first 20 months in operation, Aspire has invested over £500,000
in micro-entrepreneurs in Belfast, with 78% of loans going to the most
deprived and under-invested communities.* Aspire customers who complete
a loan have seen their turnover rise by an average of 29%, their net
profit grow by 87% and employment levels have increased by 21%.* 85% of
businesses are still in operation one year after they received their
loan.*
*
*
*
This post transferred from the cdb-l mailing list
*
I wouldn't rely solely on such rigid fixed targets.*
*
We are an eleven year-old loan consortium (CDFI) that has financed over $550 million in affordable housing throughout Massachusetts.* We have successfully used a review system based on reaching or exceeding objectives established at the beginning of the year -- mutually agreed by supervisor and employee. *Naturally, an organization will have numerical targets it sets for itself each year (but this itself should be a dynamic process, changing targets over time) -- and these overall targets should be passed along to the staff who will have to deliver them.* But their review should allow for innovation (and failure) and new initiatives that occur (or should) on an ongoing basis.
*
We also divide our incentive compensation into two components.* Officers in our Corporation are eligible for incentive compensation in a “base” rate (up to 15%), as approved by our Board each year, as the same rate for all Officers, and an “individual” amount up to 10% -- or a total maximum possible “bonus” of 25% of salary.* The larger “base” amount is based on the theory that if the organization is successful, then everyone contributed – and should benefit.* (Rewarding teamwork is always essential, I believe.) *This is more like “profit sharing” in some ways.
*
One other point, we give incentive compensation to all employees.* Non-officers are eligible for a maximum bonus of up to 20% of salary – again on the theory that everyone does contribute to success (and should have a stake in achieving it!).
*
Attached below are:
*
our individual goal form, established at the beginning of each fiscal year;
the individual review form, filled out at the end of each year; and
and company review forms (as presented to our Board for our FY 2001).*
*
Last year (FY 2001) our incentive compensation maximums were 20% (officers) and 15% (non-officers), and I have modified the forms to conform to our current (FY 2002) standards.* Please feel free to use these forms as you see fit.
*
Joe Flatley
*
*
*
Individual Performance Goals
July 2001 through June 2002
*
Employee’s Name:********************************************* ****** * ********* Department: *
*
List individual performance goals, maintaining consistency with department goals.* Outline measures of success and possible interim steps necessary to achieve success.* Indicate the level of difficulty for each goal by selecting a number between 1 and 5, with 1 being relatively easy and 5 being very difficult.* This rating should reflect the difficulty in meeting or exceeding the outlined performance measures.
*
*
Level of Difficulty
<!>1. *** <![endif]>GOAL:
* *** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
<!>2. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
[i]1*** 2*** 3*** 4*** 5
o** o** o** o** o
<!>3. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
[i]1*** 2*** 3*** 4*** 5
o** o** o** o** o
4.* GOAL:
***** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
<![if !supportLists]>5. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
<![if !supportLists]>6. *** <![endif]>GOAL:
***** MEASURE OF SUCCESS:
1*** 2*** 3*** 4*** 5
o** o** o** o** o
*
*********** Employee’s Signature* ___________________________________************** Date* _________________
*
*********** Manager’s Signature* ____________________________________************** Date* _________________
*
*
*
*
ANNUAL PERFORMANCE REVIEW FORM
JUNE 2001
*
*
Employee’s Name:********************************************* ****************** Department: * *
*
PART 1 – GOALS:* Transfer the list of abbreviated individual performance goals (title only), including the level of difficulty for each goal (indicated by a number between 1 and 5, with 1 being relatively easy and 5 being very difficult), as stated in the Individual Performance Goals for July 2000 through June 2001 form.* Please attach a copy of the full version of the Individual Performance Goals.* Indicate evaluation rating for Performance on a scale of 1 to 10, where 1-5 represents the range from marginal to good performance in meeting expectations, and 6– 10 represents various degrees of exceptional performance, as measured by the individual’s success in exceeding expectations.
*
*
*
*
*
EMP
MGR
<![if !supportLists]>1.***** <![endif]>GOAL:
*
Difficulty
__****
Performance
__
*
___
<![if !supportLists]>2.***** <![endif]>GOAL:
*
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>3.***** <![endif]>GOAL:
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>4.***** <![endif]>GOAL:
Difficulty
__
Performance
__
*
___
<![if !supportLists]>5.***** <![endif]>GOAL:
Difficulty
__
Performance
*
_
*
___
*
<![if !supportLists]>6.***** <![endif]>GOAL:
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>7.***** <![endif]>GOAL:
*
Difficulty
__
Performance
*
__
*
___
*
<![if !supportLists]>8.***** <![endif]>GOAL:**
*
Difficulty
___
Performance
*
___
*
___
*
*
PART 2 – OTHER:* Describe any initiatives, accomplishments, and/or atypical responsibilities not assessed in PART 1 – GOALS ([i]optional).
*
Employee:*
*
*
*
*
*
Manager:
*
*
*
*
*
*
PART 3 – OVERALL RATING:* An accounting of the employee’s overall success in meeting core responsibilities, challenges, initiative, teamwork, and expansion of role.* Please mark the box that most accurately depicts the employee's performance during the review period.
* <!>cid:image001.gif@01c1953e.646adb00<![endif]><!>cid:image002.gif@01c1953e.646adb00<![endif]><![if !vml]>cid:image003.gif@01c1953e.646adb00<![endif]><![if !vml]>cid:image002.gif@01c1953e.646adb00<![endif]> [i]Meets Expectations [i]Exceeds Expectations Performance Goals (Overall rating based on PART I)
1
2
3
4
5
6
7
8
9
10
Performance Beyond Stated Goals: ** Other: (explained in PART 2)
1
2
3
4
5
6
7
8
9
10 ** Teamwork
1
2
3
4
5
6
7
8
9
10 ** Expansion of Role
1
2
3
4
5
6
7
8
9
10 ** Initiative
1
2
3
4
5
6
7
8
9
10 Overall Rating
1
2
3
4
5
6
7
8
9
10
*
PART 4 – COMMENTS:* Please use this section for other performance-related communications you wish to include in this performance review.
*
Employee’s Comments:
*
*
*
*
*
*
*
*
*
Manager’s Comments:
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
____________________________________************** ********* ______________________________________
Manager’s Signature******************* Date********************************* Employee’s Signature****************** Date
*
*
*
*
*
*
*
************************************************** ******
*
Annual Organizational Performance Review Summary
(June 2001)
*
I.* Achieving the Goals in Business Plan
**** Review progress in achieving each of the goals.* Score the performance on a 1 to 10 scale (1 being lowest and 10 being highest).* Determine evaluation based in part on difficulty of goal.
*
Evaluation
1.** GOAL:********** Solicit, secure interest, underwrite, and close loan/investment projects.
***** RESULTS:*** $80 million in loan/equity commitments and $73 million in closings; record high level of closings.* MHIC has maintained its credit standards and return objectives in a highly competitive marketplace.
*
*
<!>2.***** <![endif]>GOAL:********** [i]Develop new markets and new products
***** RESULTS:*** Restructuring of loan pool as LLC; new acquisition and line of credit products; partnership with Property and Casualty Initiative.
*
*
3. * GOAL: ********* Achieve minority participation in jobs and businesses.
***** RESULTS:*** For the most part, meeting very ambitious goals.* Minority jobs: 63% in Boston area; 19% average in balance of state.* Minority businesses: 45% in Boston area; 10% average in balance of state.
*
*
<!>4.***** <![endif]>GOAL:********** [i]Maintain member/investor confidence.
***** RESULTS:*** Secured over $46 million in net equity in 2000 Fund, largest ever; return investors; positive references; broadening base of investors.
*
*
<!>5. *** <![endif]>GOAL:********** [i]Manage portfolio; confront problems and work to resolve.
***** RESULTS: ** Resolved loan credit problems; credit review process effective; significantly strengthened asset management systems and staffing; problems identified and actions taken toward resolution.
*
*
6.** GOAL: ********* Achieve excellence in customer service.
***** RESULTS:*** High marks from customers in surveys; repeat customers; demonstrated loyalty of existing customers.
*
*
*
II.** Overall Evaluation
******** Evaluate overall performance, on a 1 to 10 scale.
* ************************************************** ********************************* Low*********************************************** ************************ High
Results against Goals********************************************* *** o o o o o o o o o o
Ambitiousness or Difficulty of Objectives**************** o o o o o o o o o o
Initiative**************************************** **************************** o o o o o o o o o o
Teamwork****************************************** ************************ o o o o o o o o o o
Organizational Learning/Strategic Planning************* o o o o o o o o o o
*
III.* Incentive Compensation Levels
****** Establish the base incentive compensation levels for all employees for this year.* In addition to this base amount, each employee is qualified to receive an individual incentive compensation amount of 0% to 10%.
<![if !supportLists]>·******* <![endif]>Officers:*************** Range: 0-15%********* Recommended:* 15% base incentive compensation***
<![if !supportLists]>·******* <![endif]>Non-officers:******** Range: 0-10%********* Recommended:* 10% base incentive compensation
*
*
*
*
*
-----Original Message-----
From: Niamh Goggin [mailto:niamh.aspire-belfast@lineone.net]
Sent: Friday, January 04, 2002 10:26 AM
To: MFP
Cc: communitydevelopmentbanking-l
Subject: Performance Related Pay
*
We are a small young microfinance organisation lending to
micro-enterpreneurs in Belfast and other urban areas in Northern
Ireland.* We are about to recruit a new batch of loan officers and
intend to offer performance related pay.* The labour market requires
that I pay a roughly two-thirds basic salary and one-third performance
related pay.* The main performance indicators I use for loan officers at
the moment are:
*
No. and volume of loans against monthly targets
Portfolio outstanding against target
Portfolio at risk against target
Percentage of borrowers in (government defined) areas of particular
deprivation.*
*
I would be very grateful for practical, non-theoretical advice on
structuring performance related pay for micro-finance operations.*
*
Happy New Year / Bliain shona dhibh go leir
*
Niamh Goggin
*
*
Aspire micro loans for business Limited
5 Union St
Belfast
BT1 2JF
Northern Ireland
Tel +44 (0)28 90246245
Fax +44 (0)28 90246255
email:* niamh.aspire-belfast@lineone.net
<mailto:niamh.aspire-belfast@lineone.net>*
*
In its first 20 months in operation, Aspire has invested over £500,000
in micro-entrepreneurs in Belfast, with 78% of loans going to the most
deprived and under-invested communities.* Aspire customers who complete
a loan have seen their turnover rise by an average of 29%, their net
profit grow by 87% and employment levels have increased by 21%.* 85% of
businesses are still in operation one year after they received their
loan.*
*
*
*
This post transferred from the cdb-l mailing list