Chapter 9 Flashcards
What are the 3 levels of planning for an organisation to achieve its corporate objectives?
- Strategic planning
- Tactical planning
- Operational planning
Explain what Strategic planning is.
- Setting the overall objective
- Usually undertaken by top management.
- Typical timescale between 1 - 10 years.
Explain what Tactical planning is.
- Deciding on the method to achieve overall objectives.
- Usually undertaken my middle management.
- Typical timescale between 6 months - 2 years.
Explain what Operational planning is.
- Concerned with daily needs.
- Manager involvement likely.
- Typical timescale between 1 week and 1 year.
Explain briefly the term ‘Key Performance Indicator’.
- A clearly defined set of measures.
- To judge performance against.
List 5 common KPI’s used by businesses to measure the performance of advisers.
- Fact-find completion.
- Persistency / Cancellations.
- Range of advice provided.
- Complaints from investors.
- Conduct & Values.
Explain what ‘inputs’ and ‘outputs’ measure.
Inputs: The activity / effort being put into the job.
Outputs: The results of the activity.
Explain the main aim of a 1-2-1 meeting.
- Check current performance against agreed standards.
- Identify training / Development needs.
- Identify areas of strength.
- Give feedback on progress.
- Identify problem areas.
- Have a two-way conversation with individual team members.
State the benefits of using a ‘balanced scorecard’ to measure an individuals overall performance.
- The balanced scorecard approach uses more than just financial indicators to measure performance against the company’s criteria and standards.
Identify 4 examples of areas that could be included on a ‘balanced scorecard’.
- Financial.
- Fair outcomes for customers.
- Internal quality.
- Learning and growth.
List the benefits of the performance review and appraisal for the organisation.
- Can be used to check the effectiveness of:
– The recruitment process.
– The induction process.
– previous training / development programmes. - Can identify future training needs and allow appropriate planning.
- Can be used for succession planning.
- Can provide information to ensure SM&CR Conduct Rules are met.
State three fundamental areas that are typically covered by a firm’s strategic objectives.
Strategic objectives would typically include three from the following:
* profitability;
* the market or service to be provided;
* culture;
* providing good outcomes for consumers;
* market share; and
* environmental, social and governance (ESG).
You work for a business that uses a balanced scorecard to measure individual performance. One of the criteria is customer focus. Give three examples of what this might include.
- Complaints.
- Mystery shopping.
- Client satisfaction survey.
List four broad areas individual objectives could address.
- internal quality;
- fair treatment of customers;
- learning and growth; and
- financial.
Explain what the nine box matrix is and how it can be used to develop talent.
- It is a method that helps to identify future talent.
- It does so by looking at current performance and future potential.
- Individuals who are rated highly on both axes are regarded as having outstanding performance and high potential.
- These individuals should be identified for future leadership positions and supported.
- It identifies what other individuals need to do to develop further.
