Strategic Performance Management In The Business Commerce Essay

The strategic public presentation direction construct, the chief aims of that are to do cardinal determinations and actions that form and steer what an organisation is, what it does, and why it does it, with a focal point on the hereafter. In short, for long-run growing of the organizational scheme and strategic aims, SPM is the implicit in factor.

Armstrong and Baron specify public presentation direction as ‘a procedure which contributes to the effectual direction of persons and squads in order to accomplish high degrees of organisational public presentation. As such, it establishes shared understanding about what is to be achieved and an attack to taking and developing people which will guarantee that it is achieved ‘ ( Cannell, 2010 ) .

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SPM is the design for be aftering the following development stairss of public presentation direction in administration. It displays how to:

Define the leading restraints.

Determine the present adulthood degree and what is required to turn.

Emphasis on actions of future development and supply information

Make benefits from investings.

Design and form concern development and adapt as the capableness alterations.

The strategic planning is a many-sided, disputing procedure, but it is ever focused on the basic ends stated above. Strategic be aftering infers that some organisational determinations and actions have more weightage than others as it ‘s impossible to make everything that needs to be done at the same clip. So, it is all about doing the tough determinations and what are the most demanding steps to be taken as it happens.

Percept of SPM in Organizations:

There is frequently a narrower position towards public presentation direction. The employees frequently try to defy public presentation direction. The grounds behind this could be

Employees think that it will make nil good to them.

They frequently take it as unfavorable judgment of their work.

Sometimes directors do n’t truly use the result to the organisation.

In many little organisations SPM is considered waste of clip.

Employee and besides the employees do n’t hold a clear apprehension what is SPM and what it might make to the organisation.

Undertaking 2

This subdivision discusses about the cardinal facets of Armstrong ‘s Performance Management theory and their impact on the public presentation of the organisation.

Armstrong ‘s Performance Management theory:

Armstrong and Baron specify public presentation direction as ‘a procedure which contributes to the effectual direction of persons and squads in order to accomplish high degrees of organisational public presentation. As such, it establishes shared understanding about what is to be achieved and an attack to taking and developing people which will guarantee that it is achieved ‘ ( Cannell, 2010 ) .

In short public presentation direction should be

StrategicA – it is must hold long-run ends

IntegratedA – it should bond between of import factors like concern growing, HRM, qualities of persons and squads.

It should integrate:

Performance betterment


Behavior ManagementA

However, Armstrong has suggested many factors those are of import for public presentation direction. But some of them are more of import than others. Role definition provides frame work for public presentation direction. It sets out three things, purpose, the consequence countries and capablenesss. Performance reappraisal is besides of import as it discusses on the position to be obtain on past public presentation as a footing for doing programs for the hereafter. Performance planning is a work and people related activity that focuses what has to be done, how is it done and what is achieved. The development plans records the actions agreed to better public presentation and to develop cognition, accomplishments and capablenesss. Performance understanding defines function demands aims and criterions of public presentation cognition accomplishments and capablenesss, public presentation steps and indexs, corporate nucleus values and demands ( J.I. , 1986 ) .

TCS ( Private ) Limited[ 1 ]: Technetium came into being in 1983 as a domestic messenger company to make full a nothingness that arose due to the Government of Pakistan denying foreign messenger companies the right to run locally. The TCS journey since its origin has been tickle pinking TCS logistics service company keeping the Armstrong ‘s public presentation direction theory.

The Experience on Work of TCS:

Factors impacting Performance as defined above is affected by a figure of following factors, all of which should be taken into history when managing, measurement, modifying and Honoring public presentation they comprise:

. Personal: the person ‘s accomplishment, assurance, motive and committedness of company impacting their forces.

. Leadership: the quality of encouragement, counsel and support provided by the directors and squad leaders of this company ‘s.

. Team: the quality of support provided by co-workers magnificently of this company ‘s.

. System: the system of work and installations provided by the company ‘s.

. Contextual ( situational ) factors: internal and external environmental force per unit areas and alterations are much better of this company ‘s.

Task- 3

This subdivision discusses about the 7-S theoretical account and its application. Further the 7-S model is used to measure a squad public presentation program to run into organisational aims

7-S Model of Mckinsey:

TheA McKinsey 7S FrameworkA is aA managementA theoretical account developed by well-known concern consultantsA Waterman and PetersA in the 1980s. This was a strategic vision for groups, to includeA concerns, A concern units, and squads. The 7S are construction, scheme, systems, accomplishments, manner, staff and shared values ( Ethan M.Rasiel, 2010 ) .

To measure and supervise alterations in the internal state of affairs of an organization-this theoretical account is frequently used.

Scheme: A set of actions that you start with and must keep.

Scheme are plans an organisation that formulates to make identified ends through a set of determinations and actions aimed at deriving a sustainable advantage over the competition.


Structure is the manner by which organisational units relates to each other. Structure is the organisational chart and associated information that shows who reports to whom and how undertakings are both divided up and integrated. In other words, constructions describe the hierarchy of authorization and answerability.

Systems: All the processs, procedures and routine that qualify how the things should be done.

Style Style ” refers to the cultural manner of the organisation, how cardinal directors behave in accomplishing the organisation ‘s ends, how directors jointly spend their clip and attending.

Staff: “ Staff ” refers to the figure and types of forces within the organisation and how companies develop employees and form basic values.

Superordinate Goals: Longer-term vision, and all that values staff, that shapes the fate of the organisation.

Skills: Distinctive capablenesss of forces or of the organisation as a whole.

Modified 7-S theoretical account in my organisation:

I want to use some alteration that may pess good for my organisation For illustration, in my organisation, my chief end is to prolong long-run profitable growing & A ; which I can accomplish by doing more gross revenues.

Second, my organisation has some imperative values like good client service, teamwork, meeting of challenges, regard amongst each other, etc.

In order to increase the gross revenues of my concern, I have a selling division which deals with the media. Besides that I have a MIS division which helps me to enter, analyse & amp ; keep my company ‘s gross revenues & A ; besides the projection of future gross revenues.

Besides, I have an HR section in my organisation in order to enroll more efficient & A ; appropriate work force & A ; thereby increasing organisation ‘s future net income


In an organisation successful execution requires proper alliance of different activities & A ; processes. This includes construction, resource allotment, staffing, accomplishments, manner, wagess & A ; inducements, policies & A ; processs, shared values & A ; abilities ( Srinivasan, 2008 ) .

Alignment is a right mix of of tools to accomplish overall end. There are three constituents

Mind ( fiscal dimension ) ,

Body ( construction ) and

Spirit ( corporate civilization ) .

Alignment is an ongoing procedure, non an one clip issue. The finish is easy to achieve when all characteristics of a complex state of affairs or organisation are in alliance. However, alliance does non needfully assure success in anything, instead it does increase the chance of success.

However, misalignment may happen. It is besides common in many organisations. It is chiefly due to rivalry for between unlike sections, deficiency of proper communicating, customary differences, deficiency of readying etc.

Undertaking 4

This subdivision talks about of import phenomena in organization-Leadership. Some associated theories and illustrations are besides discussed in here.


LeadershipA defined as the procedure of societal influence in which one individual can enlist the assistance and support of others in order to carry through a common end. Definitions more inclusive of followings have besides emerged. Alan Keith of Genentech provinces that, “ Leadership is finally about making a manner for people to lend to doing something extraordinary happen. ” In other words, when people think about leading, images come to mind of powerful dynamic persons who command winning ground forcess, shape the events of states, develop dealingss, or direct corporate imperiums ( Achua, 2010 ) .

The qualities of a good leader are given below

A good leader has an model character.A

A good leader is enthusiastic about their work or cause and besides about their function as leader.A

A good leader is confident.A

A leader besides needs to work in an orderly and purposeful mode in state of affairss of uncertainty.A

Good leaders are tolerant of ambiguity and stay unagitated, composed and steadfast to the chief intent.

A good leader every bit good as maintaining the chief end in focal point is able to believe analytically.A

He/she has to be committed to excellence.

Theories of Leadership:

Leadership is “ forming a group of people to accomplish a common end. ” The leader may or may non hold any formal authorization. Students of leading have produced theories affecting traits, situational interaction, map, behaviour, power, vision and values, personal appeal, and intelligence among others

Trait Theory: This thought that leading is based on single properties is known as theA Trait theory ( Achua, 2010 ) .

Leadership Style Theory: Leadership takes a strong personality with a well-developed positive self-importance. Not so much as a form of motivations, but a set of traits is crucial.This theory describes what successful leaders do.

Action-Centred Leadership: This theory broadens the thought of a undertaking & A ; the people orientation. It was originated in UK.

Behavioral Leadership: This theory of leading efforts to clear up the different manners used by the effectual leaders ( Lussier & A ; Achua, 2010 ) .

Contingency Theory: he theory defined two types of leader: those who tend to carry through the undertaking by developing good-relationships with the group ( relationship-oriented ) , and those who have as their premier concern transporting out the undertaking itself ( task-oriented ) ( Fiedler, 1967 ) .

Transactional Theory: This theory is besides known as ‘exchange ‘ theory of leading. “ Transactional leading tends to be ephemeral ; in that one time a dealing is completed the relationship between the parties may stop or be redefined ” ( Lussier & A ; Achua, 2010, P-354 ) .

Transformational Theory: TheA transformational leaderA ( Burns, 1978 ) A motivates its squad to be effectual and efficient. Communication is the base for end accomplishment concentrating the group on the concluding coveted result or end attainment. This leader is extremely seeable and uses concatenation of bid to acquire the occupation done.A

He must be able to dispute the status-quo ;

He must be able to animate the people for a common vision ;

He must be able to supply efficient leading during the passage ;

He must be able to do the alteration a lasting portion of the organisation.

Difference between Transactional Vs. Transformational Theory:

Transactional Theory

Transformational Theory

Transactional leaders do non be given to trouble oneself with the motivational or emotional demands of the followings.

Transformational leading provides a more effectual attack to taking.

Transactional leaders are those who lead through the same signifier of alteration.

Transformational leaders challenge followings to go job convergent thinkers.

Transactional leaders offer safety & A ; security to a concern instead than having ballots from their followings

Transformational leaders serve as function theoretical accounts for their followings.

Measuring Leadership in Organization:

TheA transactional leaderA ( Burns, 1978 ) A is given power to execute certain undertakings and wages or penalize for the squad ‘s public presentation. It gives the chance to the director to take the group and the group agrees to follow his lead to carry through a preset end in exchange for something else. Power is given to the leader to measure, correct and train subsidiaries when productiveness is non up to the desired degree and wages effectivity when expected result is reached.

In my organisation directors has the power to take the group, measure group members and arrange proper preparation. They have the authorization to band any members from the group.


AA ‘Team’A comprises aA group of peopleA orA animalsA linked in a common intent. Teams are particularly suited for carry oning undertakings that are high inA complexityA and have many mutualist subtasks.

Advantages of Team work:

– more information and cognition is focused on the issue

– A greater figure and diverseness of options can be developed

– better apprehension and credence of the concluding determination

– members develop cognition and accomplishments for future usage

– shared duty – willing to take more hazards

As a director of an organisation, I have led many squads. From my position point some strengths & A ; failings of my squad are given below:

In our squad

everyone takes some duty for doing certain that we are on path.

all necessary information are available to all its members for making things efficaciously.

the ambiance is unfastened & A ; participative.

Sometimes few members try to rule other members to demo their high quality and frequently they try to keep back of import information from other members to acquire the upper manus.


As a leader of the group directors should link successfully with their work force to construct confidence and to actuate which in bend improves the concern. Team development is a continuously altering & As ; recursive procedure. Some of import steps that I have used for squad development are given below

Empowering squad construction by giving strong organisational support.

Strong organisational support ;

Always follow clear communicating to avoid misinterpretation state of affairss

Clear reference of the end.

Fair and efficient enlisting

Employee preparation

Undertaking -5

This subdivision talks about quality public presentation theoretical accounts and their advantages and restrictions.

Quality/performance direction theoretical accounts:

There are assorted theoretical accounts to mensurate the public presentation of the employees. The three theoretical accounts that I am most likely to accept are given below:

( 1 ) . ISO 9001 Quality System,

( 2 ) . Six Sigma Model,

( 3 ) . Performance Prism.


“ The Performance Prism model is a construct which chiefly provides a process theoretical account for the building of a public presentation measuring system ” ( Pinterits, 2008, P-38 ) . In this theoretical account, the relevant interest holders are identified & amp ; the public presentation measuring system is built around them. There are five basic stairss where the characteristics on public presentation are identified which are stakeholder satisfaction, schemes, procedures, capablenesss & A ; stakeholder part.

I would prefer to take this theoretical account for my concern as it will supply the lineation for be aftering my concern procedure. There is no maximal Numberss of steps included in this system therefore, this theoretical account offers no bar of adding excessively much complexness in my concern.

THE TCS[ 2 ]Experience

The rules of the Performance Prism have been applied at TCS globally, the international express messenger. The undermentioned narrative lineations the cardinal events that led to TCS ‘s executive squad following a new public presentation measuring system for their concern by using the Performance Prism model. TCS Pakistan began execution of the Performance Prism. TCS ‘s internal step of profitableness. They would besides reexamine the division ‘s operational public presentation.


Success Maping

Measures Design

The Ten Trials

Stakeholder Satisfaction

Stakeholder Contribution




public presentation paragim.jpg

Figure: TCS Pakistan Success map[ 3 ]

Figure[ 4 ]: The Procedure of Performance Prism

TCS maintain the Principles of public presentation prism measuring

Work that is non measured or assessed can non be managed because there is no nonsubjective information to find its value.

Immeasurable work should be minimized or eliminated.

Desired public presentation results must be established for all measured work.

Results provide the footing for set uping answerability for consequences instead than merely necessitating a degree of attempt.

Desired results are necessary for work rating and meaningful public presentation assessment.

Specifying public presentation in footings of coveted consequences is how directors and supervisors make their work assignments operational.

Performance coverage and discrepancy analyses must be accomplished often.

Frequent coverage enables seasonably disciplinary action.

Seasonably disciplinary action is needed for effectual direction control.

Two Rejected methods:

Balance Score card:

The Balanced Scorecard has ever attracted unfavorable judgment. Most people dislike the empirical nature of the model: Kaplan and Norton notoriously failed to include any commendation of anterior art in their initial documents on the subject. Some of this unfavorable judgment focuses on proficient defects in the methods and design of the original Balanced Scorecard proposed by Kaplan and Norton, ( Norreklit, 2000 ) and has over clip driven the development of the device through its assorted Generations. Other faculty members have merely focused on the deficiency of commendation support. ( Norreklit, 2000 ) But a general failing of this type of unfavorable judgment is that it typically uses the 1st Generation Balanced Scorecard as its object: many of the defects identified are addressed in other plants published since the original Kaplan & A ; Norton works in the early 1990s.

Statistical Process Control:

This theoretical account is largely proficient in nature & A ; merely the proficient arm of the quality direction system. “ This theoretical account concentrates on the determination procedure fluctuations ; rectifying these fluctuations depends on the creativeness & A ; inventiveness of the people involved ” ( Doty, 1996, P-1 ) . It is used in the service type industries.

In my sentiment I would non prefer to take this theoretical account for my concern every bit frequently the variable analysis can take to operational failure of fabrication workss & A ; their associated instruments. Besides the procedure malfunctions can take to the decreased merchandise quality, increased re-working, works shut-down, etc of my concern.

Undertaking 6

Maslow ‘s hierarchy of demands:

It is a theory in psychological science, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation. ( Maslow, 1943 ) Maslow later extended the thought to include his observations of worlds ‘ innate wonder. His theories parallel many other theories of human developmental psychological science, all of which focal point on depicting the phases of growing in worlds.

Application Of Maslow ‘s Theory:

Understanding the strengths and failing of Maslow ‘s hierarchy of demands is of import in the field of international concern. Measuring the different demands, values, thrusts and precedences of people from different states – individualistic or leftist – is improbably valuable in cross-cultural communications, and particularly within the workplace. It besides illustrates how differences in values can greatly impact work atmosphere and work ethic between civilizations: “ For illustration, social civilizations in many individualistic states, such as the UK, may take to an advantage in technological research and development. Many collectivized social civilizations, such as that in Japan, may ensue in an advantage in work force organisation, quality control of merchandises and service, and constitution of good relationships among contractees, providers and clients ” .


In their extended reappraisal of research based on Maslow ‘s theory, Wahba and Bridgewell found small grounds for the ranking of demands Maslow described or even for the being of a definite hierarchy at all. Chilean economic expert and philosopher Manfred Max-Neef has besides argued cardinal human demands are non-hierarchical, and are ontologically cosmopolitan and invariant in nature-part of the status of being human ; poorness, he argues, may ensue from any one of these demands being frustrated, denied or unrealized.

Herzberg ‘s motivation-hygiene theory:

This states that there are certain factors in the workplace that cause occupation satisfaction, while a separate set of factors cause dissatisfaction. It was developed by Frederick Herzberg, a psychologist, who theorized that occupation satisfaction and occupation dissatisfaction act independently of each other. ( Herzberg, 1959 )

Application of Herzberg ‘s motivation-hygiene theory:

In 1968 Herzberg stated that his two-factor theory survey had already been replicated 16 times in a broad assortment of populations including some in Communist states, and corroborated with surveies utilizing different processs that agreed with his original findings sing intrinsic employee motive doing it one of the most widely replicated surveies on occupation attitudes.


A figure of behavioural scientists have pointed to insufficiencies in the demand hierarchy and motivation-hygiene theories. The most basic is the unfavorable judgment that both of these theories contain the comparatively expressed premise that happy and satisfied workers produce more. Another job is that these and other statistical theories are concerned with explicating “ mean ” behaviour and, on the other manus, if playing a better game of golf is the agencies chosen to fulfill one ‘s demand for acknowledgment, so one will happen ways to play and believe about golf more frequently, possibly ensuing in an attach toing lower end product on the occupation. Finally, in his chase of position a individual might take a balanced position and strive to prosecute several behavioural waies in an attempt to accomplish a combination of personal position aims.

Undertaking 7

In this subdivision rating of squad public presentation against agreed aims of the program is discussed and besides rating of the impact of the squad public presentation in lending to run intoing strategic aims is analyzed.

Performance measuring in my company:

When an organisation establishes the parametric quantities within which plans, investings, and acquisitions are making the coveted consequences, so it is called public presentation measuring.

This procedure of mensurating public presentation frequently requires the usage of statistical grounds to find advancement toward specific defined organisational objectives.In my organisation I will follow the undermentioned method

Performance Prism:

“ The Performance Prism model is a construct which chiefly provides a process theoretical account for the building of a public presentation measuring system ” ( Pinterits, 2008, P-38 ) . In this theoretical account, the relevant interest holders are identified & amp ; the public presentation measuring system is built around them. There are five basic stairss where the characteristics on public presentation are identified which are stakeholder satisfaction, schemes, procedures, capablenesss & A ; stakeholder part.

I would prefer to take this theoretical account for my concern as it will supply the lineation for be aftering my concern procedure. There is no maximal Numberss of steps included in this system therefore, this theoretical account offers no bar of adding excessively much complexness in my concern.

Strengths and failings of the employees:

I will look for

Good communicating accomplishments.

Ability to understand the state of affairs.

Adaptation to the job on manus.

Team work capablenesss

Working under emphasis.

Ability to run into date lines.

I will see the undermentioned things as failings

Individual who want to work alone.

Ca n’t take force per unit area

Not unfastened to other squad members.

Not sound in understanding the job

Undertaking 8

This undertaking discussed the actions of a trough in the organisations. The growing and the ability to make end of the organisation depends on the function of the director to a great extent.

Actions of a Director:

Promoting Team/individual

It is of import for the populace directors to promote and convert squad members, political higher-ups, legislators, stakeholders, journalists, and citizens that they are making a good occupation.

I do it in my organisation by formalizing success ; warranting extra resources ; earn clients, stakeholder, and staff trueness by demoing consequences ; and wining acknowledgment inside and outside the organisation.

Evaluate squad public presentation

I follow specific theoretical account in my organisation to measure the squad public presentation.

I try to be impersonal and rational in the rating. Evaluation is done based on some predefined criterions and besides some others factors

Determine required public presentation marks

It is based on old twelvemonth ‘s accomplishment and the growing of the company. Besides the public presentation of the employees plays an of import factor.

Influencing and carrying methodological analysiss

I give people important ends to accomplish and so utilize public presentation measures- including interim targets- to concentrate people ‘s thought and work, and to supply periodic sense of achievement.

Performance marks may besides promote creativeness in developing better ways to accomplish the end. Therefore step to actuate betterments may besides actuate acquisition.

I have motivated important betterments utilizing end product marks, they can make some results marks.

“ end product ” – focuses on bettering internal procedure.

“ result ” – motivate people to look outside the bureau.

Functions performed by directors

directors ‘ agendas are normally jammed. Whether they ‘re busy with employee meetings, unexpected jobs, or scheme Sessionss, directors frequently find small trim clip on their calendars. ( And that does n’t even include reacting to e-mail! )

In his authoritative book, The Nature of Managerial Work, Henry Mintzberg describes a set of 10 functions that a director fills. These functions fall into three classs:

Interpersonal: This function involves human interaction.

Informational: This function involves the sharing and analyzing of information.

Decisional: This function involves determination devising.

Table 1 contains a more in-depth expression at each class of functions that help directors carry out all five maps described in the predating “ Functions of Directors ” subdivision.


Mintzberg ‘s Set of Ten Roles






Seek and receive information ; scan periodicals and studies ; keep personal contact with stakeholders.


Forward information to organisation members via memos, studies, and phone calls.


Transmit information to foreigners via studies, memos, and addresss.


Front man

Perform ceremony and symbolic responsibilities, such as recognizing visitants and subscribing legal paperss.


Direct and motivate subsidiaries ; advocate and communicate with subsidiaries.


Maintain information links both inside and outside organisation via mail, phone calls, and meetings.



Initiate betterment undertakings ; place new thoughts and depute thought duty to others.

Disturbance animal trainer

Take disciplinary action during differences or crises ; decide struggles among subsidiaries ; adapt to environments.

Resource distributor

Decide who gets resources ; prepare budgets ; set agendas and determine precedences.


Represent section during dialogues of brotherhood contracts, gross revenues, purchases, and budgets.

Skills needed by directors

Not everyone can be a director. Certain accomplishments, or abilities to interpret cognition into action that consequences in coveted public presentation, are required to assist other employees become more productive. These accomplishments autumn under the undermentioned classs:

Technical: This accomplishment requires the ability to utilize a particular proficiency or expertness to execute peculiar undertakings. Accountants, applied scientists, market research workers, and computing machine scientists, as illustrations, possess proficient accomplishments. Directors get these accomplishments ab initio through formal instruction and so farther develop them through preparation and occupation experience. Technical accomplishments are most of import at lower degrees of direction.

Human: This accomplishment demonstrates the ability to work good in cooperation with others. Human skills emerge in the workplace as a spirit of trust, enthusiasm, and echt engagement in interpersonal relationships. A director with good homo accomplishments has a high grade of self-awareness and a capacity to understand or sympathize with the feelings of others. Some directors are of course born with great human accomplishments, while others improve their accomplishments through categories or experience. No affair how human accomplishments are acquired, they ‘re critical for all directors because of the extremely interpersonal nature of managerial work.

Conceptual: This accomplishment calls for the ability to believe analytically. Analytic accomplishments enable directors to interrupt down jobs into smaller parts, to see the dealingss among the parts, and to acknowledge the deductions of any one job for others. As directors assume ever-higher duties in organisations, they must cover with more equivocal jobs that have long-run effects. Again, directors may get these accomplishments ab initio through formal instruction and so farther develop them by developing and occupation experience. The higher the direction degree, the more of import conceptual accomplishments become.

Although all three classs contain accomplishments indispensable for directors, their comparative importance tends to change by degree of managerial duty.

Business and direction pedagogues are progressively interested in assisting people get proficient, human, and conceptual accomplishments, and develop specific competences, or specialised accomplishments, that contribute to high public presentation in a direction occupation. Following are some of the accomplishments and personal features that the American Assembly of Collegiate Schools of Business ( AACSB ) is pressing concern schools to assist their pupils develop.

Leadership – ability to act upon others to execute undertakings

Self-objectivity – ability to measure yourself realistically

Analytic believing – ability to construe and explicate forms in information

Behavioral flexibleness – ability to modify personal behaviour to respond objectively instead than subjectively to carry through organisational ends

Oral communicating – ability to show thoughts clearly in words

Written communicating – ability to show thoughts clearly in composing

Personal impact – ability to make a good feeling and instill assurance

Resistance to emphasize – ability to execute under nerve-racking conditions

Tolerance for uncertainness – ability to execute in equivocal state of affairss


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