Agenda

- Why performance management?- What is the process?- How to make it work?

- Value alignment / top down drive- Linking rewards and development- Aspects of infrastructure- Communication/education- Part of the culture

- Where to start?

Why performance management?

• Basic management cycle– Planning, organizing, staffing, leading,

and controlling• Fundamental corporate infrastructure• Consistency in measuring/rewarding• Sustainability in business and people

What is the process?

• Annual process– Past review and next goal setting– Appraisal process: rewards– Individual development planning– On-going review and documentation

• Global aligned

XX Way:

People Performance Management (PPM) is…

…a process which helps to align personal and business objectives

…driven by ‘the XX way’: one culture, one brand, one companyone global approach for People Performance Management

…supporting the improvement of business results for XX

PPM: a cyclical process…

How to make it work?- value alignment & top down drive• A performance oriented value system• Company value as the core throughout

organization• Value derived criteria in the organization

structure and supporting system (HR)• Determination shown from the top• Leaders being driven by the same

process

Our Values

Delight customers We delight our customers by anticipating and exceeding expectations thereby creating sustainable market leadership

Deliver on commitments We pursue business excellence, being rigorous in delivering on our commitments

Develop people We inspire and enable each other to use our creativity and entrepreneurial flair, and to maximize our potential

Depend on each other We work as “one XX” in an environment of transparency and trust to mobilize our collective competence and that of our business partners

Values

How to make it work?- linking rewards and development• Tight linkage between performance

outcome and rewards• Embedded individual development

process

XX Way:

Links between PPM and other HR areasSalary

& Annual

incentive

IndividualDevelopme

nt

How to make it work?- aspects of infrastructures• Full range of documentation• On-line review system• Performance distribution• Calibration process

XX Way:• Documentation

– Job description (JD)– Business balanced score card (BBS)– Personal contribution agreement (PCA)– Individual development plan (IDP)

• On-line PPM– PPM is an on-line system

• Guided distribution– 10%, 20%, 50%, 15%, 5%

• Calibration process– Management team discussion

How to make it work?- communication/education• Defined roles and responsibilities in

PPM• Full coverage of communication• On going updates• Deadlines and consequences

XX Way:

Roles and responsibilities• Implementation Leaders• Experts/facilitators of PPM training• Tutors (Operational HR Managers)• Regional Administrators• PPM Project Team Corporate HRM

How to make it work?- part of the culture• Business achievement needs

systematic drive in managing performance

• Performance comes from employee• Management job is to enhance

employee performance

XX Way:

An effective PPM process is about the dialogue between manager and employee…

Employees Managers

• Understand how they contribute to business results

• Understand what is expected from them

• Understand to what

extent they meet these expectations

• Develop themselves

• Deploy and realize business goals

• Set clear objectives and

evaluate performance

• Develop people so they can add more value

Where to start?

• A performance minded leadership team• A competent HR organization and personnel• An effective infrastructure• A drive on communication and education

•A clear set of value and value oriented culture with criteria