Performance appraisal and reward systems

Christine Kroner, PhD

Expertise Group Leader Vascular Function Nutrition department Unilever Food and Health Research Institute Vlaardingen, the Netherlands

Unilever Research & Development

Home & Personal Care -

Unilever Foods - Corporate Research

Discover: Research Centres Foods: Vlaardingen HPC: Port Sunlight Corporate: Colworth Mumbai/Bangalore Shanghai (NL) (UK) (UK) (India) (China)

Design: Global Technology Centres Deploy: Regional Innovation Centres

Operating Framework: Interdependency of R&D and Marketing

B E N N E E F w I T S
I N T E R A C T I O N

World of Science & Technology

R & D

M A R K E T I N G

B R A N D S

World of Markets Customers Consumers

Joint Defining Business Opportunities

Grow Unilever Business

Challenges within our organisation

Short product cycles More competitors on market Develop, improve & introduce new, consumer relevant healthy food products at an increasing pace- for global consumers Cope with failures celebrate successes and continue quickly (motivation boost!) Global science driven projects

For R&D this means

More work in shorter time under increasing pressure, in a global environment

Increasing pressure to boost business results by: Long-term innovations in already existing product areas Exploring new benefit areas Initiating new businesses (internal and external)-Open innovations Balance between high quality science, high speed of delivery, short term vs long term delivery

Key to success

Excellent functioning R&D departments: driven, innovative, creative, successful, focussed & quick in delivery

Employees Individuals

Manager, Team Leader, Supervisor

Role of research manager

Open, stable and interactive environment where knowledge and information are readily available and people can grow. - vision: (what is our aim/what do we need to achieve) - recognition - feedback - trust and comfort - continuous development and learning Go the extra mile!! Quality of research (methods, practices, reporting, documentation)

Reward & award is key for securing employers motivation.

Understanding the scientists

Special conceptual frameworks, vocabularies, discipline culture which is different from e.g. support stuff

What do they need? A work environment with fulfillment- A great place to work Reaching his full potential Development & career options Inspiring environment: attract best peoplethe best people secure continuous success, success attracts best people

What a scientist wants

Emotional Social to interact
(solo vs team; own vocabular)

Deliver on time in full

(framwork)

Away days MT-Updates

A great place

Intellectual
to think
(great brains)

Physical to do
(excellent, Safe workplace)

Think tanks Forums Spiritual

to aspire
(culture, vibrant)

SHEQ

Vitality

Tools within Unilever

GPS MIS
CoB principles

Make Unilever a great place to work One common vision and mission Common values Attract best people, develop and keep them Promote and reward positive behaviour Reduce and neutralise negative behaviour 1. Performance appraisal 2. Reward systems

PR

The Global People Survey

Worldwide questionnaire,all Unilever employees, all worklevels
Understanding, belief, execution Quarterly tracking (former Unilever Pulse questions) Strategy, SIA, Must Win Battles Operating Framework Vitality Pace of change Keeping informed Leadership, commitment Annual tracking (GPS questions) Confidence, trust Direction, vision Leading by example Morale Pride

UNILEVER
Our mission is to add vitality to life
We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life

Performance Appraisal

Elements of a performance appraisal

One common mission, vision and (long-term) strategy Clear roles and responsibiltities
Job profile, role description aligned with Worklevel

Clarity on what is expected & measure it!

Strategy into action plan (linking to business targets) quarterly update Individual workplan (reviewed quarterly)

Set achievable goals

Personal development plan (PDP reviewed quarterly) Improvement, career development

Performance against peers

Differentiation matrix

Develop skills and competencies

- Training on the job, secondments, external courses, R&D academy

Roles and responsibilities -Alchemist ToolWL5

SVP Research & Development Director of Laboratory Deployment Director VP R&D Resources Department Director Project leader Project manager VP R&D Programme Programme Director

WL4

Chief S/T/E
Principal S / T / E

WL3

Senior S / T / E Lead S / T / E

WL2

Research S / T / E Scientist/ Technologist

WL1

S / T / E = Scientist / Technologist / Engineer

Strategy Into Action - Individual Workplan 2007

Jobtitle: Name : Department: Worklevel: Important: This work plan will be executed in the framework of the Unilever Code of Business principles and Foods Q&SHE policies and guidelines. Period covered if pro-rata:

Objectives

Activity

KPI

Timings

Individual performance against w orkplan

Sign for agreement Linemanager signature: Date: Employee signature: Date:

Reward systems

Unilevers reward policy

To attract, motivate and retain high performing individuals. It does this by reference to: Pay for responsibility Pay in line with market value Pay for performance Pay for potential (High potentials) Pay for results

Basics of a reward system

Open and transparent system with a peer review mechanism (DIF) Accepted by the R&D community (fit with culture) Fair (measurable) Warrants differentiation

Differentiation Matrix- a performance tool

L e a de rship D iffe re ntia tio n To o l W L 4
C o n t in u o u s l y R a is i n g t h e b a r! C o n s i s t e n t ly Ex c e e d i n g Ex p e c t a t io n s

Standards of leadership Common values 1. 2. 3. 4. 5. 6. Global mindset Real accountability External orientation Action not debate Team alignment Build superior talent

HOW
HOW
Beh avio u rs & Values

In c o n s ist e n t in m e e t in g e x p e c t a t io n s

In co n s is t e n t in m e e t in g a g r e e d in d iv i d u a l b u sin e ss t a r g e t s

WHAT
W HA T

C o n s is t e n t l y e x c e e d in g a g r e e d i n d i v id u a l b u s in e s s t a r g e t s

Sustained delivery

Framework of a reward system

Non-material Material

- Research price (yearly) - Publication price (yearly) - Patents (yearly) - Quarterly reward - Best grant (yearly) - Best project delivery (yearly) - Training/congresses

-Salary increases -Variable salary increase - Stock options - Variable Payments (business & own achievements) - Promotion - Career options

You may not know us. but you know our brands

etc.