Performance Management Process

Workshop Content

Performance Management Process PMP:

PMP Introduction

Objective Setting

Development Planning

People Planning

Mid-Year Reviews

360 Degree Feedback

Organization Health Survey OHS

PDR Assessment

Danh mc t vit tt

AOP: Annual operating plan

RAM: Responsibility Assignment Matrix

NOPBT: Net operating profit before tax

OFCF: Operating and Financial Cashflows

Introduction

to PMP

PMP Process

Each of the steps of the PMP process take place over the calendar year.

Objective

Setting

Objective Setting Overview

What is Objective Setting for?

To link our individual objectives to the

AOP, functional priorities and RAMs

To ensure our individual objectives are

focussed on the right results

Why do we have Objectives Setting?

It allows us to translate our AOP into

personal objectives for the year. Both in:

Business Objectives

People Objectives

2008 Objectives should be entered onto your PDR Form

SUMMARY

COMMENTS: Use this section to make summary comments and highlight important information

Summary of 2001 Performance :

Developmental Priorities for 2002:

Business ResultsRating

People ResultsRating

Individual BonusObjective Score*

*For bonus eligible employeesonly

SALARY RECOMMENDATION

Merit Promotion EquityTOTAL COMPOUNDED

% INCREASE

Percentage :

TOTAL COMPOUNDED CURRENCY INCREASE :

CURRENT PROPOSED

BAND

ANNUAL SALARY

EFFECTIVE DATE

BAND MINIMUM

BAND PENETRATION

SIGNATURES

Print Name Sign Name

EMPLOYEE: DATE:

MANAGER: DATE:

NEXT LEVEL: DATE:

HUMAN RESOURCES: DATE:

Summary of 2008 Performance :

Development Priorities for 2009 :

PERFORMANCE AND DEVELOPMENT REVIEW

Name

Nguyen Van A Title

Marketing Manager

Review Period

From: 1 Jan 08

To: 30 Dec 08

Manager

Nguyen Van B Location: SEA BU

Division : SAMEA

BUSINESS RESULTS:

Each objective should be directly aligned with growing (or supporting the growth of): Revenue and Share, Profit (by reducing costs and improving margins), and Cash Flow.

OBJECTIVES RESULTS

1. Base Business

Volume increase 15% vs 2007 NOPBT

2. Strategic Plan Leadership Strengthen LRB leadership thru innovation and footprint expansion

3. Health and Wellness

AF grow 0.9MM

4. BPT/Productivity Manage effectively NCB A&M. Optimize media effectiveness via shared sponsorship.

PEOPLE RESULTS:

Each objective should be directly tied to developing people (others and/or yourself), improving the overall effectiveness of the work group, or upgrading the human capital of the company.

OBJECTIVES RESULTS

1. Creative an Inclusive and Cherishing work environment: Suggest at least 2 WLB initiatives in team 2. Talent development: Support new comer for an effective on boarding 3. Manager Quality: Create an opportunity for team member to lead team meeting 4. Employee Learning and Development: Clearer communication of priorities & business results

It is a description of an outcome to be achieved, and is quantified so it is measurable - this may include timeframes, percentage increases, quality

measures, benchmarks, etc

It is not an activity - the two are different

Activity Outcome

Playing football matches

Driving your car

Doing interviews

Calling on accounts

Running a Waste Action Group

Being top of the league at end of season

Arriving at destination safely within an hour of leaving

Hiring 5 talented individuals to build bench

Selling 100,000 cases more than Plan

Reducing waste by 5% vs last year

What is an Objective?

OBJECTIVE SETTING TIPS

The objective states a clear end result, output or outcome so there is

no room for misinterpretation.

Specific:

The objective should describe hard measurable - Key Performance

Indicators (KPIs) that are expected/acceptable.

Measures could include : Quality, Quantity, and Cost

Measurable:

Objectives Must Be SMART

There is a reasonable chance that the objective can be met by this

role. The objective also has to be challenging and aspirational.Attainable :

This objective is related directly to and is within the individuals sphere of influence and key job accountabilities.

Relevant :

This objective states a time frame, target date(s) and/or milestone(s)

during the year that are expected to be met.Time-bound :

S

M

A

R

T

Base Business

BPT / Productivity Agenda

Health & Wellness

Strategic Growth Agenda

Business Objectives

Functional Priorities

Base Business

Achieve AOP targets for BU/MU

Volume

Revenue

NOPBT

OFCF

Share

Achieve Core AOP initiatives

Availability Capacity planning, meeting peak demand

Growth New geographies, going deep / wide

Anti-competition Restrict share, targeted initiative

Brand KPIs TOM, Spon Awareness, Affinity etc.

Customer Objectives Channel development, growing priority customers

Functional initiatives Restage / Relaunch / Audit compliance / Strengthen distribution

Strategic Growth Agenda

Innovation led growth

Develop business strategy

Business turnaround

New business development

PO1 initiatives related to structure / capability etc

Infrastructure / capability build

Portfolio change / re-alignment

Focused growth strategy

Health & Wellness

Define roadmap & goals

Grow GFY / BFY volume mix

Identify key opportunities and build H&W innovation pipeline

Understand trends and projection for own market and impact for own function / area

Launch / sustain employee H&W initiatives

BPT/Productivity Agenda

Cost effectiveness programs / initiatives

System / process improvement initiatives

Eg. innovation process rollout, My Access implementation

Shared services, high-impact PO1 initiatives

Creating an Inclusive & Cherishing Work Environment

Employee Learning and Development

Manager Quality

Talent Development

People Objectives

Examples for Individual Contributors:

Lead and/or actively participate in inclusion-related activities and initiatives (e.g.,

employee networks, inclusion councils)

Serve as a peer coach or mentor to a new employee who has a different background,

function, or style

Identify one thing that can be done to make your team more inclusive and then implement

Examples for People Managers:

Have a conversation with each direct report to discuss something that can be done to

improve his/her work/life effectiveness, and work together to implement

Drive 100% participation among direct reports in inclusion initiatives (e.g., task force,

employee network, training)

Establish an effective mentoring relationship with a person who is different from you

Initiate an inclusion activity in regular team meetings (e.g., once per quarter)

Creating an Inclusive & Cherishing Work Environment


Serve as a mentor to a new associate in order to help develop his or her knowledge of the PepsiCo system

Partner with a colleague on a project to help him or her develop a specific skill set

Co-develop workshops and round table discussions on professional development for an employee network or other group


Coach new members of your staff to ensure their successful on-boarding and integration to the team

Design stretch work assignments (and support activities) for direct reports to promote skill development

Create opportunities to enable direct reports to gain broader experiences and understanding of PepsiCo (e.g., cross-divisional, cross-functional assignments)

Ensure rich 70-20-10 development plans are in place for all direct reports and achieve 100% completion of mid-year reviews to discuss progress

Talent Development


n/a Manager Quality objectives are specific to People Managers


Consistently share timely, balanced performance feedback to direct reports,

and conduct regular feedback sessions with all direct reports

Create an opportunity for each team member to lead a team meeting

Develop and implement a method for recognizing and celebrating the

achievements of others on your team

Gain knowledge about your individual team members that enables you to

coach and motivate in the most effective manner

Have regular conversations with each team member to ensure alignment on

goals and priorities, helping them to adjust priorities as necessary

Manager Quality


Join and actively participate in an external professional organization or conference

Seek out and take on a stretch opportunity to develop new skills

Complete a functional /leadership assessment and put a plan in place to address one of your skill gaps

Actively seek out opportunities to learn more about a business or function other than your own (through market tours, meet and greets, lunch & learns, etc)

Further advance functional skills by attending training related to your specialty, as well as functional training outside your specialty to broaden your knowledge

Seek a mentor to improve your functional/leadership excellence or to give you exposure to another part of the business


Seek experiences to build personal capability in key development areas based on the PepsiCo Career Growth Model

Actively participate in leadership or industry conference and commit to sharing/implementing best practices

Seek out opportunity to expand network and/or build visibility through monthly lunches with key functional/divisional leaders

Seek a coach/mentor to improve your functional/leadership excellence or to give you exposure to another part of the business

Employee Learning & Development

Objective Setting Process

AOP Cascading by Manager

Propose/set objectives by employee

Discuss & agree objectives by Mgr & Emp

Finalize & Sign off by Mgr & Emp

Business Objective: Group 1: Strategic Growth Agenda Group 2: Productivity & Environmental Sustainability

People Objective:

Group 3: Creating an Inclusive & Cherishing Work Environment Group 4: Talent development

Exercises

People

Planning

What is People Planning?

to plan organization and people capability ahead of business needs

to ensure that individuals career interests, skills, and capability are considered in the context of current and future organization needs

to drive career management

to discuss the employees potential with their employees

to identify and address broader organization issues

PPP provides managers with an opportunity...

Why do we have People Planning?

a thorough assessment of current talent and future organization

needs

career development feedback to all individuals

a useful tool to support the accomplishment of business

objectives and leverage management tools already in place

PPP provides...

Development

Planning

What is Development Planning?

The Development Planning allows a manager to:

identify personal development objectives for their direct report

identify specific actionable steps to help their direct report achieve the desired

progress

assign responsibility for ensuring progress and set deadlines against agreed

development actions

provide indicators of what improvement against development objectives

should look like

Why do we have Development Plans?

To plan and support personal growth

To provide a framework for having a

career interest discussion between a

manager and direct report

Who participates in The Development

Planning Process?

All level 4 and above employees

Both the direct report and manager are

responsible for creating the

Development Plan

Development Planning Overview

Development Planning Process

Prepare first draft of a development plan

Agree development opportunities

Create an action plan

Identify career interests

Career Development Action Plan (CDAP)

This word document is designed as a form for ease of completion.

Date: Primary Manager:

Date:Employee:

SIGNATURES

Proven Results

Leadership Capabilities

Functional Excellence

Knows the Business

Critical Experiences

Proven Results

Leadership Capabilities

Functional Excellence

Knows the Business

Critical Experiences

How Will We Know You Met

Objectives

(On-the-Job Outcomes, Behaviors

changed, etc.)

Timing

(Dates for each

Tactic)

Specific Steps/Tactics

(What are the key steps and tactics necessary

to accomplish this objective )

Development Action Plan Objectives

(Transfer SMART Objective to

Appropriate Section of PDR)

Career Factor Element

(Select area of focus)

How Do I Get There?

Mobility Considerations: (e.g., Family Education, Family Health, Family Job )

Geographical Restrictions:Geographical Preferences: Willing to relocate? Yes No

What are your longer-term career aspirations (3-5 years)? (functions, type of work,

division, level, title, etc.)

What are your target jobs for the next 1-2 years? (Can include your current position or other specific jobs

for which you are now or close to ready.)

Where Do I Want to Go?

Date Approved: Date Submitted:

Job Title:

Name:

Nothing herein will be considered an expressed or implied promise of promotion or continued employment.

OUR DISCUSSION

MY DEVELOPMENT

MY CAREER

Determine your development objectives

for the year. These should be linked to

achieving your performance objectives.

Use 3600 feedback results as input.

Objectives should reflect the People

Results objectives from the individuals PDR.

Specify the on- the-job outcomes that your direct report is expected to achieve. These

should directly link to the performance

objectives.

In detail, describe the steps, tactics and support

required to help achieve objectives.

Identify short and long-term career

interests. You should also, where

possible, identify relocation preferences

and restrictions. Be specific.

PepsiCos Career Growth Model

The PepsiCo Career Growth Model provides a foundation for career development.

Leadership capability

Training & Development Areas in Pepsico

Know Business Critical ExperienceFunctional excellence

Communication

Presentation

Time management

Project management

Team building

Coaching & development

Change Management

Motivation & Inspire

Conflict Solution

Orientation program

Induction program

Experience bev & food

HR for Non HR

Targeted selection

PMP

TSE

Basic Finance

Basic Marketing

M&W

Customer Demand Forecast

Department assignment

Location assignment

International assignment

Task force

Territory University

Account management

Senior Sale management

Building brand Leadership

Marketing Strategy

Finance University

ACCA

HR Management

Organization Behaviour

Training & Development in PepsiCo

70%: On the job training

20%: Coaching & Mentoring

10%: Course training (off the job training)

On the Job Learning

Learning Through On

The Job Assignments

1. Starting from beginning

Ex. New functional initiative

2. Fix-it:

Ex. Revitalizing a failed business process

3. Project/Task Force

Ex. Improving cross functional communication

4. Change in Scope:

Ex. New customer/plant

5. Line to Staff:

Ex. From Department to other

Learning Through

Hardships

6. Business Mistakes and Failures

Re-launching quality standards after customer complaints

7. Job Rotation

Swapping jobs

8. Subordinate Performance Problem:

Confronting of managing capability issues

Learning Through

Other People

9. Role Models

Shadowing people

with a variety of styles

10. High Intensity

Interaction:

Reporting to a

different manager with

a particular approach

on a specific project

Other Learning

Opportunities

11. Job instruction

training

Training programs

12. Supervision:

People management

On the job training: A formal or informal program of instruction by subject matter experts

who coach, advise employee in need training while they are performing real job tasks. The

ways

Coaching & Mentoring

Coaching is the process used to guide others to discover the best way to accomplish a goal successfully. The topics are

Mentoring is a developmental partnership

through which one person shares knowledge,

skills, information and perspective to foster the

personal and professional growth of others. The

topics are

Functional knowledge

Effective communication

Effective personal Management

Time Management module

PepsiCo Leadership

Managing Teams

Managing change

Effective Personal Management


PepsiCo Leadership

Business Economics

Effective networking

PepsiCo Vietnam Business topic

Managing Change

PepsiCo culture

PepsiCo career growth Model

Global economy

Environment & Business

Strategic planning

Off the job Training

Off the job training happens at a site away from the actual work environment. It

often utilize lectures, case studies, role play, simulation, game The topics are

Functional knowledge


Effective personal Management

Time Management module

PepsiCo Leadership

Managing Teams

Managing change

Strategic planning

Criteria for Successful Development Plans

The development need is based on feedback of observed behaviour (e.g. 360

feedback/ leadership assessment)

The development challenge is measurable i.e. gap between current and

future behaviour

The development plan is owned by the individual and supported by manager

The development actions build skills and behaviour over time

Mid-Year

Reviews

Mid-Year Review Overview

Mid-Year Review is designed to:

Review your direct reports progress, against their Business and People Objectives

Ensure objectives and Development Plans are still aligned with business priorities for the balance of the year

Mid-Year Review meeting provides an opportunity to:

Review year to date performance against Objectives and the Development Plan

Feedback on any discussion that has taken place during People Planning

Make any changes to objectives for the balance of year

Agree on action plans to ensure that performance and development objectives will be achieved/improved over the balance of the year

Who participates in Mid-Year Review?

All employees with PMP objectives

Mid-Year Review Process

Set a Date & Prepare

Review Progress Year to Date

Recognize Positive & Discuss Opportunities

Agree on Balance of year

360 Degree

Feedback

What is 360 Degree Feedback?

It is a snapshot of how a specific employees impact is perceived by others in organization

An employee receives anonymous input from his/her direct reports, peers,

clients, and direct feedback from manager

It provides a full perspective of developmental strengths and opportunities

across the PepsiCo Leadership Imperatives

Why do we have 360 Degree Feedback?

It is a process to develop our employees leadership and management skills

So the employees can learn which behaviors they are really

good at, and where they need to improve as leaders and

management

It enhances awareness and changes the way an individual

manages, leads, and works with others

Typically, Leadership/Senior Country Team (L10 and above)

May include some junior employees with specific development needs

Often evidenced with a 2 rating for PDR People Results

Normally, every other year = On Cycle

Some organizations may do it every year = Off Cycle

Who participates in The 360 Degree Feedback?

When do we do The 360 Degree Feedback?

PDR

Assessment

What is Performance Development Review (PDR)?

PDR is an opportunity to:

Review what has been accomplished during the year

Have a two-way communication between employees and their managers

Draft the Performance and Development Objectives

Make a decision on merit and bonus awards

PDR Assessment Process

Employee writes PDR self appraisal

Manager reviews and finalizes PDR appraisal

Calibration of performance ratings and Bonus I/O Score

PDR debrief meeting

1 2 3 4 5

BelowExpectations

Exceptional

Did not meetmost keyobjectives

Met mostkey

objectives

Met keyobjectives

Exceededkey

objectives

Significantlyexceededmost keyobjectives

UNSATISFACTORYYEAR

May have met some objectivesbut did not meet expectations on

the most important objectives

SATISFACTORYYEAR

Met expectations on most

objectives

GOODYEAR

Met key objectives and exceeded some

objectives

VERY GOODYEAR

Exceeded expectations on

the most important

objectives and met expectations

on others

OUTSTANDINGYEAR

Significantly exceeded

expectations on the most important

objectives and met expectations

on others

Rating Scale Definitions

The direct line manager at the end of the year is responsible for writing the final PDR

and decides the overall ratings using the following guidelines:

obtain self appraisal from direct report

gather input and discuss overall ratings with any dotted line managers

if the manager of the individual has changed during the year, the previous

manager should have written the PDR for the earlier part of the year at the time

the role changed

if the individual changes role during the year, their previous manager should

have written the PDR for the earlier part of the year at the time they moved on

The overall ratings should reflect the full year performance - if an individual has

changed jobs during the year the ratings should reflect across both/all jobs, with the

role that the individual did for the majority of the year being most influential

Who is responsible for writing the PDR?

Calibration Objectives

Bottom Up

Fairness

document reflects individual's performance

Equity

merit recommendation falls within guidelines

Clarity

the message is clear for the individual

Top Down

Consistency

across the business

in keeping with overall business performance and historic trends

within budget

Calibration Process

Functional managers identify potential calibration issues early

Functional calibration meetings held to cross check consistency

Total business review and sign off by business unit head

Organization

Health Survey

(OHS)

Why Do We Have an Organizational Health Survey?

To help us understand the level of satisfaction and commitment felt by our employees

It allows our people to give feedback in a confidential and comprehensive way, across all levels of business on the strengths and opportunities of our organization

It helps inform and focus the People Agenda within our business planning and management processes: Strategic Plan, AOP, and PPP

It provides a snapshot of employee perceptions at a point in time

It supports our commitment to make this a great place to work

ORG. HEALTH ORG. CAPABILITY GROWTH/PRODUCTIVITY

Why is Organization Health Important?

Committed & Satisfied Employees

Employees Achieving their Personal Best

Driving Business Performance

Fuelling Growth

Great Place to Work

Driving growth by improving business performance through our people

Workshop Deliverables and Outcomes

You now:

Understand the Performance Management process and how it links to achieving our business goals

Have the skills of writing SMART objectives

Can complete development plans using identified development opportunities

Understand what is PPP & why we need to have it.

Understand Mid-Year Review process

Understand why do we need 360 Feedback and what will it help to our org & people

Understand what is OHS about and what will it help to our org & people

Understand PDR assessment/year-end review process

Youve completed

The 7 Steps of PMP

Intro to PMP

Objective Setting

Development Plan

PPP

Mid-Year Review

360 Feedback

OHS

PDR

!!! WELL DONE !!!

Documents

Performance Management Process