Performance Management at

GE ……..Global and Local

Niamh Hegarty, Chief HR Officer

GE Money, Czech & Slovak
Republics
22nd October 2007, Prague
Agenda

¾Brief overview of GE & GE Money

¾GE Operating Mechanism
¾Leadership Development
¾Session C – the annual people review
¾Employee Differentiation Process
¾Values, Performance & Promotability
¾Q&A
GE …..Global Reach & Impact
• 310,000+ employees worldwide
• Six main business units – Industrial, Infrastructure,
Healthcare, Commercial Finance, NBC Universal & GE
Money

• Operations in 100+ countries

GE Money
• ~50,000 employees worldwide
• Truly global … 75% of revenue comes from
outside U.S.
• Operations in 55 countries
GE Money Czech Republic & Slovakia
• Active in retail and SME banking, retail
sales finance and auto leasing
• 3,700+ employees across both
countries
• 2007 - celebrating 10 years in Czech
Republic
The GE Operating Mechanism
 GE operating system
Annual integrated business and leadership
processes
Core business processes
SI SII
Session D Session C strategy operating plan
compliance org/staffing/
succession Session C C-II
follow up follow-up
Opinion
survey

Leadership Corporate
meetings officers
Global meeting
leadership
meeting
(GLM) Corporate
executive
council
(CEC) CEC CEC CEC

January March May July September Novembe

February April June August r
October December
 We are a company built on
values, powered by a culture of
performing
with integrity.
Values and Performance
Performance

Reward/promote Restart
Best leaders Second opportunity
Great GE futures to deliver results
Values

Remove Remove
Removals reinforce Easy call removals
importance of values
dimension
How We Develop Leaders
Leadership Development
Career
Opportunity Talent
System Assessment

Leadership
e360 Training
Ongoing Career
Coaching,
Mentoring, and
Development
Planning Skill/Competency
Session C Development

EMS Performance
Process Management
Leadership Development … The
Building Blocks
Attract Develop Manage Retain

• Attract: Hire outstanding talent

• Develop: Provide opportunities for people to excel, to

develop their skills, and to achieve their dreams

• Manage: Create and rigorously manage a performance-

driven culture

• Retain: Keep employees with high performance and

values
Session C
Everyday is a Session C … it’s
not a one-time event, it’s
a continual process
CEO commitment

Jeff Immelt
spends twenty full days
on people and succession
planning within a
three-month period …
every year
Key Development Process … Session C

Focuses both on the individual + the company

Individual Company
– Feedback – Organization
– Development – Leadership
– Career – Initiatives
Session C
What
• Review organizations ... any plans to change
• Feedback on performance, promotability, and development needs
• Succession plans for key leadership positions
• Key corporate initiatives

When
1Q 2Q 3Q 4Q
• Bottom Up • CEO Visits • Follow Up • C-II Prior to S-II
Videoconferences
• EMS Review • Leadership • December Full BOD
Reviews/ Plans
• Org. Reviews
• C Wrap Up
• CEC Debrief

How
• Company wide digitized process
• Leaders committed to developing themselves and others
Employee and Session C

Goal Ongoing Annual Review Session C

Setting Monitoring (EMS)
Review Goals – Performance Review
Coaching – Development Needs
Feedback – Career Discussion

Personal
Personal
Development
Development Plans
Plans

Salary Planning
Incentive Planning
Stock Options
Career Development Programs
Session-C Objectives
> Establish a framework for a formal performance discussion

> Improve business performance – link and align individual

objectives with business strategy

> Set clear expectations and stretch targets for performance

> Develop leadership and technical skills

> Identify strengths and development needs

> Highlight career/job interests

> Differentiate based on overall rating: top talent, highly valued

and less effective employees

> Reward based on contributions and skills

Session C Helps Create Our Culture

• There are multiple “formal” appraisals ... Session C,

EMS, Salary Planning, Option Planning, etc. But
there are “informal” appraisals ... every meeting and
every interaction!

• The leader sets the tone … listening and feedback is

the essence of building individual capability and the
company culture.
 Employee
Differentiation
Process - EDP
EDP – Basics

> Adopt consistent framework across GE

> Convey open and honest feedback to employees in a

straightforward manner

> Maintain the GE principles of “differentiation” and

“meritocracy”
Employee differentiation
• Differentiate between our top, highly valued and less effective employees
• Overall rating based upon 3 factors … performance, values, unique skills

Performance Values Unique skills

– Exceptional – Outstanding strength – Yes
– Consistently meets expectations – Solid values – No
– Needs improvement – Development needed

• Guidelines vs. fixed allocation … no forced ranking

• Promotability separate assessment in 9 block
• Overall rating is driver for compensation, bonus and options
Values
Actions and Values – How we work
Actions Values
imagine CURIOUS
We put imagination to work for our
customers, people, and communities
PASSIONATE
solve
We help solve some of the world’s RESOURCEFUL
toughest problems
ACCOUNTABLE
build
We are a performance culture that builds
markets, people, and shareholder value TEAMWORK
lead COMMITTED
We are a meritocracy that leads through
learning, inclusiveness, and change

Always with unyielding integrity OPEN

ENERGIZING
Performance
Performance – Operational Definition
™ What has been achieved and how
™ Observable results and behaviors over the past year

Exceptional: Consistently performing and contributing at a

level that outpaces changing expectations.
Consistently Meets Expectations: Consistently performing
and contributing at a level that keeps pace with changing
expectations.
Needs Improvement: Not always able to perform and
contribute at a level that keeps pace with changing
expectations.
Promotability
Promotability – Operational Definition
™An individual’s capacity based on performance, aptitude and
demonstrated ability and interest to take on broader
responsibilities
™Demonstrates attributes that could be applied to bigger roles
™Demonstrates leadership capabilities
™Communication and influence skills
™Promotabiltiy can be constrained by a recent promotion or
organization structural design

High: Continually expands personal capabilities and independently takes on

greater responsibility.
Medium: Continually expands personal capabilities and demonstrates
willingness to take on greater responsibility.
Limited: An individual who is performing as a professional/expert, likely to
remain in position or move laterally within the same band with similar
responsibilities/depth. Is positioned at the appropriate level to maximize
effectiveness.
 The System @ GE
360° Goal
Feedback Setting

The
Performance
Session C Mid Year
Management Session
System C

EDP
EMS
Competency
Model
Assessment
Summing it up ….

GE has a culture of
meritocracy, based on
Performance and Values,
supported by core processes
and tools of performance
management ……and we use
them!
Q&A