FG Final Slides-English

X
Performance Matters
Performance Management
Company ConfidentialFor Internal Use Only
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X Getting Started
Welcome and introductions Vital matters Fire exits Restrooms Ground Rules Cell Phones/Laptops Breaks/Lunch
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X Leadership Matters
This workshop is about: The performance management process Shaping a global performance culture Your role in achieving results by embracing our values
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X Performance Matters. People Matter.

Our company is passionate about delivering quality, innovation and performance to help our customers succeed. Most importantly, we are people. Thousands of caring and committed employees who do extraordinary things every day to make all our lives easier, safer and better.
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X You Are The Connection

In numerous countries Thousands of employees depend on you for leadership everyday. You are the connection between our employees and our future.
That is why you are here.
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X A Different Approach to Performance Management

Traditional performance appraisal systems focus only on pay or poor performance ours is different. With goal-setting, development and useful feedback along the way Our new performance management process enables and energizes people to perform so employees get as much out of their jobs as they give
Its an exciting time to be a part of our Companya time to realize our full potential
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X Organization and Leadership Review (OLR)

Builds on performance assessment process Objectives:
Review talent poolsstrengths and development needs Accelerate the development of key talent within the company Identify high leverage development positions or assignments Seek out diverse talent to assure that our pipeline builds from early career Plan for succession Build on organization capability to reach business objectives
Ma nag em ent Pe rfo rm anc e
OLR
GOALS FEEDBACK ASSESSMENT
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X How Do You Improve Employee Performance?
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X What Do We All Want?

What do employees want?*
*Source: McBer & Company, 1994

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What do you want me to do? How well did I do it? Where do I stand? Where am I going? What do I need to work on?

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What do managers want?

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What do managers want?

Simple process; intuitive, easy-to-use Efficient way to set direction Motivational; emphasizes development as much as evaluation Fair, equitable, consistent across the company Minimizes conflict, but provides a basis for taking action when necessary

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X Todays Main Messages

You are responsible for your own success Goals set direction for each of us Feedback is everyones job
Goals set direction and feedback provides guidance with checkpoints along the way
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X Objectives
Understand the performance management process Create aligned goals Specific, Measurable, Attainable, Relevant & Time-specific Provide useful, frequent, candid feedback Write and conduct a fair, collaborative assessment
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X We All Have a Role

EMPLOYEE Work hard to achieve goals Own their professional development Solicit, listen to and act on feedback Assess their performance objectively MANAGER Help set and clarify goals Support employee development and possible career progression Provide useful, frequent, candid feedback Assess employee performance fairly
COMPANY Make performance management/employee development a business priority Ensure fairness, consistency and process integrity across all businesses Provide tools and processes to develop skills and behaviors to enhance performance
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X We Care About
RESULTS RESULTS What Whatwe wedid did
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X We Care About
BEHAVIORS BEHAVIORS How Howwe wedid didit it
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X We Care About
BEHAVIORS BEHAVIORS How Howwe wedid didit it
PERFORMANCE
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X A Turning Point
Across our company we have many different ways of managing employee performance If we use the same process we can all focus on what it takes to win
From this:
To this:
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Understanding the performance management process matters.
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X A Common Framework To
Provide clear relevant direction to individuals Build teams of committed, aligned employees Instill our values Integrity, Excellence, Teamwork, Accountability Assess performance and talent Accelerate talent development
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X What Improves Performance?

Research indicates that any one of these can have a 25% positive impact on performance High Impact Performance Drivers Fairness and accuracy of informal feedback Employee understanding of performance standards Manager knowledgeable about employee performance Opportunity to work on things you do best Feedback that helps employees do their job better Opportunity to work for a strong executive team
Source: Corporate Leadership Council 2002 Performance Management Survey

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X Performance Management
Our process includes key drivers of performance improvement.
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X Goal-Setting
SET GOALS
Before or at the start of the fiscal year Performance Development
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X Providing Feedback
PROVIDE FEEDBACK
Throughout the year Frequent Useful Candid
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X Conducting the Assessment
CONDUCT ASSESSMENT
Upon completion of fiscal year Collaborative Fair
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Creating aligned goals matters.

Specific
Measurable Attainable Relevant Time-specific
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X Goal-Setting
SET GOALS
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X Creating Goal Alignment

Company Goals Segment Goals
Business Unit Goals
Department Goals
Individual Goals
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X The Goal-Setting Sequence

Employee drafts goals for next fiscal year Manager & Employee review goals discuss, collaborate and finalize
Employee
Manager discusses organization and department goals and provides copy
Manager reviews, makes changes and/or additions and finalizes
Manager schedules and prepares for meeting with Employee
Manager provides employee copy and places copy in Employees file
Manager
If appropriate, Managers Manager reviews
Managers Manager
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X The Goal-Setting Form
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X Individual Goal-Setting
As a Guideline 2-4 Performance Goals

Aligned with Companys goals Best practice: Ensure team alignment Focus on developing both strengths and development needs
1-2 Development Goals
Some goals can change during the cycle Write goals using the SMART format Specific, Measurable, Attainable, Relevant, Time-specific
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X Performance Versus Development

Performance Goals Focus on factors such as EBIT, Revenue, Operational Excellence, Cash, Growth, Safety
Example...reduce scrap 10% by the end of the second quarter
Development Goals Focus on the skills, knowledge and behaviors
Exampleincrease business acumen through improved understanding of a profit and loss statement, income statement and balance sheet. Demonstrate ability to read and explain data by the end of the second quarter
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X Writing Goals Overview

Specific clearly stated, targeted on a single result Measurable quantifiable, concrete Attainable challenging, but feasible Relevant to the employee and the organization Time-specific with end and intermediate milestones
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X Writing Goals
Goal 1 Reduce length of time job requisitions are open
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X Writing Goals
Goal 1 Reduce length of time job requisitions are open Better Goal 1 Reduce average length of time job requisitions are open from 47 to 30 days in the Healthcare segment by end of the fiscal year
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X Writing Goals
Goal 1 Reduce length of time job requisitions are open Better Goal 1 Reduce average length of time job requisitions are open from 47 to 30 days in the Healthcare segment by end of the fiscal year Goal 2 Improve the cycle time problem
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X Writing Goals
Goal 1 Reduce length of time job requisitions are open Better Goal 1 Reduce average length of time job requisitions are open from 47 to 30 days in the Healthcare segment by end of the fiscal year Goal 2 Improve the cycle time problem Better Goal 2 Reduce top 50 cycle times at the Harrisburg facility by 40% by the end of September
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X Goal Writing Exercise

Individually: Read the draft goal Determine which goal criteria is present Write a better goal In groups share your results Prepare to discuss your options, challenges
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Providing useful, frequent, candid feedback matters.
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X Coins Exercise
We need three volunteers
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X Providing Feedback
PROVIDE FEEDBACK
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X Four Step Feedback Model

4. Describe what you want to happen 3. Check for understanding and get the persons views
2. Describe the impact
1. Describe what happened

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X Really Listening
Attending Skills
Eye Contact Non-distracting Environment
Following Skills
Minimal Encouragers Questions
Reflecting Skills
Empathizing with Feelings Paraphrasing
Source: People Skills by Robert Bolton
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X Hints for Providing Great Feedback

Provide positive and constructive feedback Focus on behavior not personality Make it timely Give a little at a time Be creative, but sensitive Document notable feedback
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X Asking For Feedback

How do you feel about asking for feedback?
How do you feel about being asked to give feedback?
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X Providing Feedback Exercise

Read each feedback scenario Using the model make notes on the feedback you would give this person Role play in threes; give, receive and observe feedbackthen switch
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X
Writing and conducting a fair, collaborative assessment matters.
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X Writing the Assessment
CONDUCT ASSESSMENT
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X The Tools
Goal-Setting Employee & Manager Complete Purpose: Goal agreement Goal alignment Results tracking Profile Employee Completes Purpose: Career highlights Internal resume Learn about your employee Identify candidates for open positions Assessment Employee & Manager Complete Purpose: Summarize results and behaviors Employee development Career planning
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X The Assessment Sequence

Employee completes End-of-Year Results(EYR) section of goal-setting form for year in review
Employee
Employee conducts selfassessment for past fiscal year
Employee updates profile Manager & Employee review goals (EYR), assessment & profile; discuss, collaborate and finalize
Manager reviews goals (EYR), assessment & profile; makes changes and/or additions and finalizes
Manager schedules and prepares for meeting with Employee
Manager
Final assessment is signed by Manager and Employee. Manager places copy of goals (EYR), assessment & profile in Employees file
If appropriate, Managers Manager reviews
Managers Manager
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X The Profile
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X Who Can Provide Performance Information?
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X Who Can Provide Performance Information?

Peers Internal & External Customers
First Level Manager
Subordinates
Second Level or Other Manager
Self
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X The Assessment
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X Performance Summary The Whats

Highlights of performance for the entire year in bullet point format
Both successes and missed opportunities Consider performance against goals
Ask
What results did I expect from the employee based on his/her goals? Did the employee deliver consistently on the expected results? More? Less? How close was the employee to meeting each goal? How challenging was each goal? What external factors impacted the results? How much assistance did the employee need?
Goal-Setting
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X Performance Summary: Write Your Own

Draft several bullet point highlights of your own performance for the past year Consider your successes and missed opportunities Think about the entire year
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X Values/BehaviorsThe Hows
Integrity Champions Integrity and Trust Managerial Courage Teamwork Builds Effective Teams Manages Vision and Purpose Manages Diversity
Excellence Customer Focus Learning/Change Agility

1922, 1996, 20012003 by Robert W. Eichinger and Michael M. Lombardo. All Rights Reserved. This work was derived from the LEADERSHIP ARCHITECT Competency Sort Cards developed and copyrighted by Robert W. Eichinger and Michael M. Lombardo for Lominger Limited, Inc. Without the prior written permission of Lominger Limited, Inc., no part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of our company and its wholly-owned subsidiaries.
Accountability Drive for Results Business Acumen
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X Behavior Definitions by Position

Behavior Individual Contributor Manager Executive Managerial Courage Faces up to problems on any person or situation quickly and directly; doesn't hold back anything that needs to be said. Provides current, direct, complete, and "actionable" positive and corrective feedback to others; lets people know where they stand; is not afraid to take negative action when necessary. Knows how to manage in changing circumstances; can be counted on to execute new decisions and strategies; strongly advocates an independent point of view, but understands the need for change before being told; adopts and introduces best practices, such as operational excellence. Rewards and promotes managerial courage throughout the organization; builds processes to foster and protect openness and candor.
Learning/Change Agility
A relentless learner; learns quickly when facing new problems; entertains ideas, can project how ideas would play out; seeks out feedback; understands, articulates and uses the learnings; embraces best practices, such as operational excellence tools.
A change leader; creates effective plans to promote change; seizes opportunities; drives operational excellence and other best practices for organizational improvement.
1922, 1996, 20012003 by Robert W. Eichinger and Michael M. Lombardo. All Rights Reserved. This work was derived from the LEADERSHIP ARCHITECT Competency Sort Cards developed and copyrighted by Robert W. Eichinger and Michael M. Lombardo for Lominger Limited, Inc. Without the prior written permission of Lominger Limited, Inc., no part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of our company and its wholly-owned subsidiaries.
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X Strengths and Development Needs

Can be drawn from
Values/Behaviors List of 67 Competencies (behaviors) Your own words (observations)
As guideline, at least Two strengths
We all do something well Everyone needs to work on something
Two development needs
Consider both current and future roles/positions

Ask yourself what development needs does the employee have in order to be successful in the current or next position
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X Key Questions
Key questions focus on the most critical development and performance challenges Typically there are one or two questions Questions come from three main areas
Area Development Needs
Example Can he learn to negotiate and compromise with others versus always trying to win? Can she shift from an operational shortterm mindset to identify and plan for strategic issues? Can he expand his technical knowledge to become qualified for a crossfunctional position?
Anticipated Challenges
Career Scenarios
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X Best Next Moves

Reflects the managers assessment of the employees potential for transfer or promotion Managers Role: Clarify and manage employees expectations Identify appropriate position(s) for now and the short term (12 years)
Based on employees current performance, strengths and development needs Develop in place is possibleno timing code
Employees Role: Identify and discuss current, short and long term career goals and aspirations
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X Development Plans
What factors develop competence? In-job Experiences: %? Feedback, Coaching, Mentoring: %? Formal Training: %?
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X EFFECTIVE Development Plans
In-job Experiences: 70% Feedback, Coaching, Mentoring: 20% Formal Training: 10%
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X Development Plans
Employee owns/drives execution Focus on current and future responsibilities Incorporate assignments that leverage both strengths and development needs Emphasize in-job experiences Manager provides time, resources, coaching
Development Business Acumen Leverage Presentation Skills In-Job assignments Detail plan here Detail plan here Detail plan here Coach/Mentor Additional Training Detail plan here
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X Summary Categories
Results Review results against goals
Summary category goes here
Behaviors Assess employees demonstration of the nine key behaviors to get results
Summary category goes here
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X Results and Behaviors Summary Categories

Results
Some or many individual performance and development goals are not met. All or most individual performance and development goals are met; some are exceeded. All individual performance and development goals are met and many are exceeded.
Behaviors
Some or many of the nine key behaviors are not demonstrated in the execution of goals.
All or most of the nine key behaviors are demonstrated in the execution of goals.
All of the nine key behaviors are exemplified in the execution of goals. A role model and leader who influences others to demonstrate the behaviors.
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X Results and Behaviors Summary Categories

Below Expectations Meets Expectations Exceeds Expectations
Results
Some or many individual performance and development goals are not met.
All or most individual performance and development goals are met; some are exceeded.
All individual performance and development goals are met and many are exceeded.
Below Standard
At Standard
Above Standard
Behaviors
Some or many of the nine key behaviors are not demonstrated in the execution of goals.
All or most of the nine key behaviors are demonstrated in the execution of goals.
All of the nine key behaviors are exemplified in the execution of goals. A role model and leader who influences others to demonstrate the behaviors.
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X Category Selection Pitfalls

Halo/Horns Effect Central Tendency Recency Error Leniency/Severity Error First Impressions Just Like Me Self-Serving Bias
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X Performance Differentiation
The 9-Block helps ensure differentiation
Results
Below Expectations
Meets Expectations
Exceeds Expectations
Above Standard
Behaviors
At Standard
Below Standard
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X Completing the 9-Block

Grid should reflect differentiation
Results
Below Expectations
Meets Expectations
Above Standard
Jane Smith
Behaviors
At Standard
John Doe
Below Standard
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X Completing the 9-Block

Grid should reflect differentiation
Results
Below Expectations
Meets Expectations
Above Standard
Jane Smith
Behaviors
At Standard
John Doe
Below Standard
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X Conducting the Assessment
CONDUCT ASSESSMENT
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X Plan for the Collaborative Discussion

1. Logistics Schedule the meeting; allow for a minimum of one hour Meet Face-to-face No interruptions, turn off all phones 2. Things to Bring Copies of both the employees self assessment and your assessment of the employee Documentation of performance (+/-) Recommendations and resources for development: FYI Guide 3. Skills to Use Be ready to use feedback to encourage discussion Be sensitive to potential areas of disagreement Be open to hearing your employees point of view
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X Signatures
Signatures indicate that the manager and employee have discussed the assessment Signature does not mean the employee agrees with the assessment. The employee may write and attach other commentary.
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X Delivering the Employee Message

Schedule department meeting or one-on-one meetings Review process, forms and Employees Guide
Contact your HR Rep. for ordering instructions Ensure your employees have a copy of the department goals so they may begin the draft goal process
Use meeting to discuss department goals
Its your job to ensure employees understand and participate
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X Program Summary
Understand our performance management process Create aligned goals Specific, Measurable, Attainable, Relevant & Time-specific Provide useful, frequent, candid feedback Write and conduct a fair, collaborative assessment
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X

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

X Performance Matters. People Matter.

Company ConfidentialFor Internal Use Only

X You Are The Connection

That is why you are here.

Company ConfidentialFor Internal Use Only

X A Different Approach to Performance Management

Company ConfidentialFor Internal Use Only

X Organization and Leadership Review (OLR)

GOALS FEEDBACK ASSESSMENT

Company ConfidentialFor Internal Use Only

X How Do You Improve Employee Performance?

Company ConfidentialFor Internal Use Only

X What Do We All Want?

*Source: McBer & Company, 1994

X What Do We All Want?

*Source: McBer & Company, 1994

X What Do We All Want?

What do managers want?

*Source: McBer & Company, 1994

X What Do We All Want?

What do managers want?

*Source: McBer & Company, 1994

X Todays Main Messages

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

X We All Have a Role

Company ConfidentialFor Internal Use Only

BEHAVIORS BEHAVIORS How Howwe wedid didit it

Company ConfidentialFor Internal Use Only

BEHAVIORS BEHAVIORS How Howwe wedid didit it

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

Understanding the performance management process matters.

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

X What Improves Performance?

Source: Corporate Leadership Council 2002 Performance Management Survey

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

X Conducting the Assessment

Company ConfidentialFor Internal Use Only

Creating aligned goals matters.

Measurable Attainable Relevant Time-specific

Company ConfidentialFor Internal Use Only

Company ConfidentialFor Internal Use Only

X Creating Goal Alignment

Business Unit Goals

Company ConfidentialFor Internal Use Only

X The Goal-Setting Sequence

Manager discusses organization and department goals and provides copy

Manager reviews, makes changes and/or additions and finalizes

Manager schedules and prepares for meeting with Employee

Manager provides employee copy and places copy in Employees file

If appropriate, Managers Manager reviews

X The Goal-Setting Form

Company ConfidentialFor Internal Use Only

1-2 Development Goals

Company ConfidentialFor Internal Use Only