STEP September 29, 2005

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STEP September 29, 2005. Performance Alignment Review (PAR) Wayne Hays Shirley Dickson. Agenda. Brief Solectron Background Performance Management Overview Highlights Form Overview Rating Calibration Lessons Learned. Solectron History. Solectron was founded to - PowerPoint PPT Presentation

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  • STEPSeptember 29, 2005

    Performance Alignment Review (PAR)Wayne HaysShirley Dickson

  • Agenda

    Brief Solectron BackgroundPerformance Management OverviewHighlightsForm OverviewRating CalibrationLessons Learned

  • Solectron HistorySolectron was founded toTake advantage of the growing need for Electronics Manufacturing Services (EMS)Accommodate the overflow from manufacturing operations of Original Equipment Manufacturers (OEMs)

  • From a single manufacturing location (1977)...

  • To a presence in more than 20 countries...Asia/PacificAustraliaChinaIndiaIndonesiaJapanMalaysiaSingaporeTaiwan

    AmericasBrazilCanada Mexico United StatesEuropeBelgiumFranceGermany HungaryNetherlands Romania Scotland Sweden Turkey United KingdomUnited StatesCaliforniaKentuckyMassachusettsMichigan North CarolinaOregonPuerto RicoSouth CarolinaTennesseeTexas

  • Our Service OfferingsProduct DesignDesign for Six Sigma and ManufacturabilityProduct LaunchProduct Life Extension Sustaining EngineeringPCBA and Subsystem ManufacturingSystems Assembly and TestResponsive Supplier NetworkProduct Fulfillment and LogisticsGlobal Network for Lowest Landed CostRepair Product LogisticsEnd-of-Life SupportProcess Loops for Design and Manufacturing Improvement

  • CustomersBrocade CISCO SystemsDellEricssonHewlett-Packard IBMLucentMicrosoftMotorolaMarconiNortel NetworksSamsungSonySunTiVo

  • RecognitionAwarded the Malcolm Baldrige National Quality Award for manufacturing in 1991. In 1997, after waiting the required five years, Solectron reapplied for the award and became the first company to win the Award twice in the history of the program.For more than 25 years, Solectron has received more than 450 customer, quality and community awards.

  • Performance Alignment Review (PAR)

  • The Case for ChangeAt Solectron, we are undergoing a major transformation designed to help us better serve our customers, simplify how we do business and improve our financial performance. Instituting standards for aligning and measuring individual performance is a key part of the larger transformation underway.Ultimately, our success can be traced back to how we answer two fundamental questions: Do we as a company have the right goals and vision to move forward? And, just as importantly, do each of us personally and through our teams understand what we must accomplish and which behaviors we must model to make Solectrons vision a reality. It is about individual performance and collective progress. It is about building a One Solectron culture that simply outperforms the competition.Kevin OConnor EVP, Human ResourcesMichael R. Cannon President and CEO

  • What We Found...Dozens of processes, forms, cycles, approaches used across the corporationAnecdotal feedback from employees and HR indicating the lack of any performance feedback from managersLinkage to other critical HR processes weak (compensation, stock awards, promotions, succession, executive selection, etc.)Behavioral and cultural expectations unclear

  • Performance Management GoalsCreate a common performance cultureEnhance individual, team and organizational effectivenessAlign individual performance with business goalsCreate a culture of on-going feedback and developmentCreate a consistent methodology to assess employee contributionProvide information to help determineCompensation decisionsPromotionsRewards & RecognitionDevelopmental Opportunities

  • Performance Cycle

  • Performance Review Tempo

  • One Solectron BehaviorsSustained Profitability: Reduce operating expenses; strengthen balance sheet; eliminate duplicate structures; improve effectiveness and efficiencyAsset Velocity: Increase inventory turns; improve cash-to-cash cycleExecution Excellence: Reduce complexity; common repeatable processes; improve overall quality and responsiveness; collaborate better with each other; streamline our organizationRevenue Growth: Continue to win new business; secure follow-on businessRestore Employee Morale: Themes include change; flexibility; creating an environment of open & honest feedback; learning quickly; accepting new challengesIntegrity Team PlayerChampion ChangeCoach OthersContinuously LearnTo accomplish our Business PrioritiesWe must create a One Solectronculture through demonstration of the right behaviorsOrganizationGoals, Priorities, Imperatives, Behaviors

  • Business Priorities & BehaviorsIntegrityTeam PlayerCoach OthersChampion ChangeContinuously LearnBehaviorsHow work is accomplishedResultsWhat work is accomplishedPerformance to ExpectationsBusiness ContributionsEqual Emphasis on Results & Behaviors

  • Sample Behavioral DescriptionTeam PlayerWork effectively and cooperatively with others; establish and maintain good working relationships; cultivate an active network of relationships; identify opportunities and take action to build strategic relationships.

    Individual ContributorManager of OthersExecutiveAsks for & offers help to others when needed. Understands team & organizational goals.Places team & organizational goals before personal goals.Shares best practices with others.Stays involved; actively participates.Treats others with dignity and respect Set expectations for cross functional; cross business cooperationPromote the use of own and others capabilities to other functionsProactively share information across organizational boundariesPromote a team culture, recognizing the contributions of all team membersShare best practices across organizational boundariesTreat others with dignity and respectAddress behavior in others that may damage constructive relationshipsRemove organizational barriers to collaboration and teamworkShare best practices across organizational boundariesAchieve business results through collaboration with others; place higher priority on Solectron goals than own personal goalsOffer resources, even when it hurts, when it will help others achieve company goalsTreat others with dignity and respectActively engage with community and/or charitable organizations

  • Performance ConceptA00-04050117BehaviorsPerformanceDidnt MeetMeetDidnt MeetMeetBehavior IssueBalanceResults & Behavior IssueResults Issue

  • Overall Rating Guide54321BehaviorsPerformance12345ExceptionalCommendableFully EffectiveNeeds ImprovementUnacceptable

    Performance = 5Behaviors = 1Performance = 5Behaviors = 2Performance = 5Behaviors = 3Performance = 5Behaviors = 4Performance = 5Behaviors = 5Performance = 4Behaviors = 1Performance = 4Behaviors = 2Performance = 4Behaviors = 3Performance = 4Behaviors = 4Performance = 4Behaviors = 5Performance = 3Behaviors = 1Performance = 3Behaviors = 2Performance = 3Behaviors = 3Performance = 3Behaviors = 4Performance = 3Behaviors = 5

    Performance = 2Behaviors = 1Performance = 2Behaviors = 2Performance = 2Behaviors = 3Performance = 2Behaviors = 4Performance = 2Behaviors = 5Performance = 1Behaviors = 1Performance = 1Behaviors = 2Performance = 1Behaviors = 3Performance = 1Behaviors = 4Performance = 1Behaviors = 5

  • Rating DistributionManagers have the flexibility to adjust distributions within guidance. Total distribution must equal 100%.Distribution is to be applied when population sizes reach 100 or more. Small departments are not expected to meet the distribution.Managers can include employees that have been managed out of the organization during the review period. These situations are limited to performance issues not employees who have left in good standing.

    FromToRules5Exceptional10%0-10%5 cannot exceed 10%; together cannot exceed 30%4Commendable20%20-30%3Fully Effective60%50-60%Can be adjusted up or down2Needs Improvement5%10% +Cannot be less than 10%1Unacceptable5%

  • Form Demonstration

  • Rating Calibration

  • Calibration ConceptThe purpose is to create a review process that establishes a more consistent, equitable, and accurate performance evaluation and feedback environment across manager groups within functions.The process facilitates a common understanding and method to arrive at final ratings Distribution of ratings is not the goal

  • Meeting ParticipationEVPVPDirectorSupervisorIndividual ContributorManagerNext Level ReviewAll manager of managers participate with their direct manager (peer group)Matrix reporting relationships not included, only direct reporting relationshipsOrganization structure will drive number of meetings requiredSequence of meetings not important (e.g., top down vs. bottom up)

  • Participation ExampleImportant: Functional reviews; not site or region!

  • Rating Profiles Optional Resource1 = UnacceptableEXCEPTIONALTop 10% of performers. Clearly stands out from others; exceeds all expectations, measures and targets against established objectives and/or standardsSelf starter who takes initiative and works independently with minimum supervision; produces high quality products with very little rework required; always delivers on commitmentsProactively assumes additional responsibilities; willingly works outside of job scope for the good of Solectron; consistently surprises with level of effort, quality work, improvement suggestionsProactive problem solver; looks for improvement opportunities with customers and/or process; recognizes what needs to be done and generates creative solutionsClearly understands and supports organization strategy and priorities; understands how own work contributes to the success of SolectronRecognized expertise; others seek out this person for guidance and counselWorks across functions and organization boundaries to build strategic relationships; valued team player who builds effective partnershipsConsidered a change champion; always open to new ideas and stimulates others to embrace change; model of flexibility, accepts changes and redirection as improvement opportunitiesOpenly shares information with others for the good of SolectronBuilds trusting relationships; provides constructive and honest feedback to help others succeed; accepts feedback from others and acts on the feedback for self-improvementWillingly takes on new challenges; stretches current capabilities; seeks new learning opportunities2 = Needs Improvement3 = Fully Effective4 = Commendable5 = Exceptional

  • Rating Calibration Tool Data Entry

    Data Entry

    PAR - Rating Calibration Tool

    Organization:Human Resources

    Leader:Kevin O'Connor

    Date:October 1, 2005

    ManagerEmployeeRatings

    Empl IDComdef Site (Optional)Last NameFirst NameJob Grade (Optional)Status (T for Termed)Comdef SiteEmpl IDLast NameFirst NameObjectivesBehaviorsFinalNP Scores

    Manager AEmployee 1333

    Manager AEmployee 2444

    Manager AEmployee 3333

    Manager AEmployee 4333

    Manager AEmployee 5333

    Manager AEmployee 6333

    Manager BEmployee 1545

    Manager BTEmployee 2322

    Manager BEmployee 3433

    Manager BEmployee 4444

    Manager BEmployee 5333

    Manager BEmployee 6333

    Manager BEmployee 7444

    Manager BEmployee 8433

    Manager BEmployee 9555

    Manager BEmployee 10444

    Manager CEmployee 1333

    Manager CTEmployee 2322

    Manager CEmployee 3333

    Manager CEmployee 4333

    Distribution Graphs

    PAR - RATING CALIBRATION GRAPHS

    Organization:Human Resources

    Leader:Kevin O'Connor

    Date:October 1, 2005;October 1, 2005

    Distribution Graphs

    0

    2

    12

    4

    2

    Rating

    Number of Employees

    Ratings Distribution - Numbers

    OFFICE USE ONLY

    0

    0.1

    0.6

    0.2

    0.1

    Rating

    Percentage of Employees

    Ratings Distribution - Percentages

    FinalFinalFinalFinalFinalFinal

    Final12345>0

    3COUNT:02124220

    4%:0%10%60%20%10%100%

    3

    3

    3

    3

    5

    2

    3

    4

    3

    3

    4

    3

    5

    4

    3

    2

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    3

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