Outcomes Based Remuneration
Outcomes Based Remuneration
Outcomes Based Remuneration
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First National Bank<br />
<strong>Outcomes</strong> <strong>Based</strong> <strong>Remuneration</strong><br />
(OBR)<br />
First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
Background<br />
Managed various business units at FNB<br />
• Business Intelligence (extremely specialised)<br />
• Cash & ATM’s (very operational)<br />
• 800 people<br />
• Direct Costs of + R900m<br />
• Infrastructure<br />
• 102 people<br />
• Capital Expenditure of R750m<br />
• Balance Sheet of R3bn<br />
The FirstRand Philosophy....
As a Business Unit owner, I want……<br />
Sustainable<br />
Results<br />
People
What is a good OBR model<br />
• Aligns to your strategy & objectives<br />
• Drives the right behaviour<br />
• Is self funded<br />
• Rewards effort and results<br />
• Is credible
My recipe in summary<br />
Strategy<br />
Objectives<br />
Alignment<br />
Cascading<br />
Measurement<br />
Reward<br />
KRA’s (Key Result Areas)<br />
KPI’s (Key Performance Indicators)<br />
Performance Contracts<br />
Targets & Performance Hurdles<br />
Performance Management<br />
Fixed, Variable or OBR
…and the Secret Ingredient ?<br />
Energy<br />
=<br />
Management buy-in<br />
Credibility<br />
2<br />
What you measure, gets done !<br />
Where you reward accordingly, gets done<br />
2
First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
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