EMPLOYEE AND MANAGER GUIDE

PERFORMANCE MANAGEMENT
INCORPORATING COMPETENCIES

❙❙ Understanding the “What” and “How” Components

❙❙ Understanding the Performance Rating Categories
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 TABLE OF CONTENTS
LyondellBasell’s Vision for Performance Management 4

Where does performance come from? 4

LyondellBasell Competencies 5

Different roles, different responsibilities, different expectations 6

Selecting the level of competency that applies to you 6

Contributing Dependently (entry level and/or junior positions) 7

Contributing Independently (most individual contributor positions) 8

Contributing Through Others (middle to some senior management positions) 10

Contributing Strategically (senior management to executives) 12

Different roles, different responsibilities, different expectations 14

Performance Rating Categories 14

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LYONDELLBASELL’S VISION Where does performance come
from?
FOR PERFORMANCE Performance is comprised of “What” an

MANAGEMENT employee accomplishes plus “How” the employee

accomplishes it. It is not sufficient to only consider
what we accomplish. In the company’s current
In 2019 we began the shift towards a more constant
period of growth and cultural change, how we
flow of discussions around performance through
work with each other and our clients is linked more
our Continuous Performance Management process.
than ever with our capacity to be successful as a
This shift is meant to ensure that managers are
company. At the end of the 2019 performance cycle,
equipped to provide continual, on-going and
each employee’s performance will be reviewed on
effective feedback in order to create a culture of
both the what and the how. Therefore, it is important
ownership for our work and success, support
that employees and managers discuss both aspects
a culture of recognition and accountability, and
of performance throughout the year.
promote personal and professional growth for each
employee.

Simultaneously, through Continuous Performance

Management, employees are encouraged to take RT
M oal
A G
ownership of their performance and development,
S

s
while seeking and incorporating feedback
throughout the year. Continuous Performance
Management encourages employees and managers
The What
to have an ongoing dialogue about the “What” – the
specific goals set – and the “How” – the manner
The How
in which we accomplish our goals. Continuous
Performance Management is designed to: om i e
c
C

❙❙ Align employees across the organization with

the business strategy and objectives
peten s
❙❙ Enhance individual, team and corporate
performance, creating a culture of continuous
improvement
The “What” is comprised of individual SMART
❙❙ Motivate employees by including support for
goals (specific, measurable, attainable, realistic,
day-to-day performance, and medium to long-
timely) that are aligned to the company’s business
term career growth
objectives and priorities within each team, that
❙❙ Establish strong performance relationships contributes to LyondellBasell’s success.
characterized by frequent real-time feedback,
The “How” focuses on how performance results
and open two-way communication
are achieved and represents the way we expect
❙❙ Keep it simple; wherever possible reducing employees to work with each other and with our
administration and reinvesting management clients as we accomplish goals. We have selected
time into building meaningful performance eight LyondellBasell Competencies that describe the
relationships behaviors and attributes that are core to our team.

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 LYONDELLBASELL
COMPETENCIES
By combining the “What” and the “How” we create
an environment in which performance increases
for both individual employees and the company as
a whole.

Instills Trust and Drives

Exemplifies Integrity Results
Gaining the confidence and trust of others through Consistently achieving results, even under tough
honesty, integrity, and authenticity. circumstances.

Demonstrates
Courage Collaborates
Stepping up to address difficult issues, saying what Building partnerships and working collaboratively
needs to be said, acting with integrity, doing what is with others to meet shared objectives, within and
right. across functions.

Builds Cultivates
Effective Teams Innovation
Building strong-identity teams that apply their diverse Creating new and better ways for the organization to
skills and perspectives to achieve common goals. be successful. Uses lateral thinking. Questions the
status quo.

Ensures Customer
Accountability Focus
Holding self and others accountable to meet Building strong customer relationships and delivering
commitments. customer-centric solutions. Focuses on internal and
external customers.

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Different roles, different responsibilities, different expectations
We recognize the diversity of roles and responsibilities present within our company and therefore, we have created
four different behavioral levels for each of our eight competencies. These levels describe behaviors that an
employee will demonstrate for a specific competency level.

Selecting the level of competency that applies to you

It is important for you to understand which competency level applies to your current position. In order to gain this
understanding, you should have a discussion with your manager. Your performance related to the competencies
will be assessed at the end of the performance cycle against the competency level you and your manager select.

IMPORTANT
You and your manager will agree on one competency level that will apply to all eight competencies. You will not
select different levels for each competency. The level selected should represent the level of the job you hold
currently.

Level of the “HOW” Example

1. Contributing Dependently You have joined LYB right after university/college, this is your first job
(entry level and/or junior positions) in the marketplace. You have been working between 0-5 years.

2. Contributing Independently You have been working for 5+ year as an individual contributor. You
(most individual contributor positions) do not have direct reports, but you can help new employees learn
about your field. This level also encompasses some senior individual
contributors that do not lead teams.

3. Contributing Through Others You have team leadership responsibilities. You are managing a team
(middle to some senior management and are accountable for use of budget resources within your team
positions) and have hiring authority. You may have a mix of individual contribu-
tors and team leaders reporting to you.

4. Contributing Strategically You are in charge of a division or large team, you create the strategic
(senior management to executives) plan and determine the budget required to execute your strategy. You
are usually managing managers or senior individual contributors.

You will find in the following pages the competencies definitions and expected behaviors by level.

We encourage you to discuss the expectations on how you will execute your goals, based on the level agreed upon
with your manager.

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Contributing Dependently (entry level and/or junior positions)
Competency
Instills Trust and Exemplifies
Integrity
Gaining the confidence and trust of
others through honesty, integrity and
authenticity.
Demonstrates Courage
Stepping up to address difficult
issues, saying what needs to be said,
acting with integrity, doing what is
right.
Builds Effective Teams
Building strong-identity teams
that apply their diverse skills and
perspectives to achieve common
goals. Fosters a culture of learning.
Ensures Accountability
Holding self and others accountable
to meet commitments.
Drives Results
Consistently achieving results, even
under tough circumstances.
Collaborates
Building partnerships and working
collaboratively with others to meet
shared objectives, within and across
functions.
Cultivates Innovation
Creating new and better ways for the
organization to be successful. Uses
lateral thinking. Questions the status
quo.
Customer Focus
Building strong customer
relationships and delivering customer-
centric solutions. Focuses on internal
and external customers.
Expected behaviors
❙❙ Complies with all aspects of the Code of Conduct and completes all
required trainings (online and in person)
❙❙ Displays consistency between words and actions
❙❙ Is honest and direct in dealing with colleagues
❙❙ Is reliable; can be counted on to honor agreements and commitments
❙❙ Challenges questionable conduct or proposals and diligently reports
them through formal channels
❙❙ Is willing to take on the unknown when asked to do so
❙❙ Will say what needs to be said
❙❙ Responds maturely to confrontation, issues and constructive
criticism
❙❙ Willing and able to face adversity and challenges
❙❙ Contributes to positive morale and team spirit
❙❙ Offers to help others complete work to ensure the team’s success
❙❙ Learns and reinforces the team’s common goals and priorities
❙❙ Shares credit with others for team accomplishments
❙❙ Actively seeks feedback to further own development
❙❙ Communicates the status and completion of assignments
❙❙ Raises issues that will stand in the way of achieving goals
❙❙ Seeks input to ensure assignments are done correctly
❙❙ Takes responsibility for own actions and deliverables
❙❙ Consistently strives to meet the objectives of assigned tasks
❙❙ Maintains work focus despite obstacles or setbacks
❙❙ Puts in effort needed to meet goals and expected results
❙❙ Displays resilience in tackling opportunities and challenges of the job
❙❙ Makes positive contributions to the group
❙❙ Solicits and listens to input from others
❙❙ Acknowledges others’ efforts, advice and contributions
❙❙ Volunteers to help others when needed
❙❙ Shares new ideas
❙❙ Is open to new ways of looking at things
❙❙ Dedicates time to learn and apply innovative methods and tools
❙❙ Welcomes input from others to develop and implement creative
ideas
❙❙ Asks questions to accurately identify customers and their needs
❙❙ Strives to understand and meet customer requirements
❙❙ Solicits customer feedback
❙❙ Is responsive and solution oriented when engaging with customers
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Contributing Independently (most individual contributor positions)
Competency
Instills Trust and Exemplifies
Integrity
Gaining the confidence and trust of
others through honesty, integrity and
authenticity.
Demonstrates Courage
Stepping up to address difficult
issues, saying what needs to be said,
acting with integrity, doing what is
right.
Builds Effective Teams
Building strong-identity teams
that apply their diverse skills and
perspectives to achieve common
goals. Fosters a culture of learning.
Ensures Accountability
Holding self and others accountable
to meet commitments.
Drives Results
Consistently achieving results, even
under tough circumstances.
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Expected behaviors
❙❙ Complies with all aspects of the Code of Conduct and completes all
required trainings (online and in person)
❙❙ Shows personal commitment to upholding policies, practices and all
aspects of the Code of Conduct
❙❙ Is honest and straightforward when working with others
❙❙ Honors agreements and commitments, even when working through
competing priorities
❙❙ Shows consistency between words and actions
❙❙ Challenges questionable conduct or proposals and in addition to
reporting them formally, integrates learnings into their own actions
and behavior
❙❙ Follows convictions in the face of adversity
❙❙ Proactively takes on the unknown
❙❙ Raises difficult issues to ensure they are addressed
❙❙ Offers ideas or opinions candidly even if it means taking a personal/
professional risk
❙❙ Participates in constructive dialogue with the team, ensuring
multiple perspectives are considered
❙❙ Places the team’s priorities above personal objectives and is open
to constructive feedback to increase effectiveness for the team
❙❙ Supports team decisions and promotes team spirit
❙❙ Involves others appropriately when working on team projects
❙❙ Seeks out stretch goals to support one’s development
❙❙ Monitors progress of performance and course corrects when
necessary
❙❙ Takes ownership of own work
❙❙ Takes responsibility for successes and failures in own work
❙❙ Follows through on commitments
❙❙ Balances quality of work with meeting deadlines (excellence vs.
perfection)
❙❙ Strives for continuous improvement and offers ideas on how to
make things better
❙❙ Demonstrates a strong drive to achieve superior results
❙❙ Drives tasks to successful completion and closure with a “no excuse”
mindset
❙❙ Shows determination in the face of obstacles and setbacks
❙❙ Acts with a sense of urgency to complete tasks
❙❙ Sets high standards for own performance
Collaborates ❙❙ Openly shares information with others
Building partnerships and working ❙❙ Involves others as appropriate to accomplish individual and group
collaboratively with others to meet goals
shared objectives, within and across ❙❙ Encourages unity and teamwork rather than “us vs. them” thinking
functions. ❙❙ Welcomes and acknowledges the ideas and input of others

Cultivates Innovation ❙❙ Brings forth creative ideas and innovative solutions

Creating new and better ways for the ❙❙ Sees opportunities where others see obstacles
organization to be successful. Uses ❙❙ Explores multiple alternatives to resolve an issue
lateral thinking. Questions the status ❙❙ Applies expertise in ways that are unique or innovative
quo. ❙❙ Is open to and builds upon new ideas and solutions offered by
others

Customer Focus ❙❙ Conducts research to better understand the customer’s business to

Building strong customer
relationships and delivering customer-
centric solutions. Focuses on internal
and external customers.
help anticipate and meet their needs
❙❙ Committed to identifying ideas and solutions to improve customer
service
❙❙ Partners with customers to resolve problems
❙❙ Internalizes and leverages customer feedback to meet their future
needs (is one step ahead of the client)

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Contributing Through Others (middle to some senior management positions)
Competency
Instills Trust and Exemplifies
Integrity
Gaining the confidence and trust of
others through honesty, integrity and
authenticity.
Demonstrates Courage
Stepping up to address difficult
issues, saying what needs to be said,
acting with integrity, doing what is
right.
Builds Effective Teams
Building strong-identity teams
that apply their diverse skills and
perspectives to achieve common
goals. Fosters a culture of learning.
Ensures Accountability
Holding self and others accountable
to meet commitments.
10
Expected behaviors
❙❙ Complies with all aspects of the Code of Conduct and completes all
required trainings (online and in person)
❙❙ Leads by example in adhering and promoting compliance to policies,
practices and all aspects of the Code of Conduct
❙❙ Demonstrates consistency between words and actions, gaining
others’ trust
❙❙ Models reliability and ensures the team meets its commitments
❙❙ Maintains honesty and integrity and ensures subordinates do the
same
❙❙ Is trusted to represent or protect the interests of others fairly
❙❙ Fosters an environment where people can openly raise issues about
situations and behaviors inconsistent with our values and standards
❙❙ Has the self-confidence to express views regardless of the audience
and make the hard decisions
❙❙ Encourages people to take a stand in the face of adversity and
defending what they believe in
❙❙ Confronts tough organizational issues and disagreements
❙❙ Delivers difficult messages candidly and respectfully
❙❙ Demonstrates the courage to say “no” when necessary
❙❙ Will not hesitate to take accountability for own failures or
shortcomings
❙❙ Builds diversity within teams; values difference of opinion and
views healthy debate as a means to advance better results
❙❙ Communicates clear goals and roles to team members
❙❙ Invests in team’s development
❙❙ Rewards team accomplishments and celebrates successes
❙❙ Effectively deals with poor performers and proactively manages top
performers
❙❙ Seeks and provides constructive feedback throughout the year on
employee/team performance
❙❙ Accepts responsibility for successes and failures of own work and
that of the team
❙❙ Learns from mistakes, fails fast and bounces back quickly
❙❙ Holds self and team accountable for outcomes (e.g., achieving
goals, acting with integrity, complying with policies and procedures)
❙❙ Monitors metrics and milestones to chart progress against
expectations and accountabilities
❙❙ Integrates and promotes feedback processes and mechanisms
Drives Results
Consistently achieving results, even
under tough circumstances.
Collaborates
Building partnerships and working
collaboratively with others to meet
shared objectives, within and across
functions.
Cultivates Innovation
Creating new and better ways for the
organization to be successful. Uses
lateral thinking. Questions the status
quo.
Customer Focus
Building strong customer
relationships and delivering customer-
centric solutions. Focuses on internal
and external customers.
❙❙ Sets the bar high and holds self accountable for striving towards
stretch targets
❙❙ Leads/inspires others to achieve high standards and shows resilience
despite setbacks or obstacles
❙❙ Fosters a sense of pride in the team and rewards accordingly for
reaching goals and meeting deadlines
❙❙ Demonstrates a consistent track record of success within the team
❙❙ Advances results through cross-functional partnerships (builds
bridges, not silos)
❙❙ Credits others for their contributions and accomplishments
❙❙ Encourages people to express their views openly
❙❙ Facilitates effective collaboration among coworkers and external
partners
❙❙ Involves others in making decisions on behalf of the group
❙❙ Stays current in area of expertise (continuous education, networks,
forums, research)
❙❙ Challenges others to think beyond the obvious and what’s been
done before to develop innovative ideas
❙❙ Invests in training and development to enable and stimulate
innovative and lateral thinking
❙❙ Creates an environment where teams welcome and leverage
outside-the-box thinking
❙❙ Partners with customers to better understand their challenges and
opportunities to make their business holistically more successful
(beyond product/service contract delivery)
❙❙ Addresses gaps in the team’s ability to meet and anticipate
emerging customer needs and enables solutions
❙❙ Proactively seeks customer satisfaction input and translates into
concrete actions for the team.
❙❙ Holds team accountable for balancing individual customer needs
with the interest of the wider organization
❙❙ Delivers superior customer experience through agile teams
dedicated to solving problems
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Contributing Strategically (senior management to executives)
Competency
Instills Trust and Exemplifies
Integrity
Gaining the confidence and trust of
others through honesty, integrity and
authenticity.
Demonstrates Courage
Stepping up to address difficult
issues, saying what needs to be said,
acting with integrity, doing what is
right.
Builds Effective Teams
Building strong-identity teams
that apply their diverse skills and
perspectives to achieve common
goals. Fosters a culture of learning.
Ensures Accountability
Holding self and others accountable
to meet commitments.
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Expected behaviors
❙❙ Complies with all aspects of the Code of Conduct and completes all
required trainings (online and in person)
❙❙ Within one’s area of accountability, designs and monitors processes
and structures that embed best governance practices, allocates
resources and develops policies to support them
❙❙ Is a role model for ethics and integrity at all times
❙❙ Acts in the best interest of others and the organization, even when it
conflicts with self-interest
❙❙ Demonstrates and advocates consistency between words and
actions, gaining people’s trust and respect
❙❙ Is truthful and transparent, fostering a sense of trust in the
organization and its leadership
❙❙ Acts decisively and diligently to deal with individuals who do not live
our values nor comply with our Code of Conduct
❙❙ Does not turn a blind eye to situations which may be difficult or
unpopular to resolve
❙❙ Selects and promotes individuals with managerial courage
❙❙ Fosters a culture that supports doing the right thing regardless of the
impact
❙❙ Takes stands on behalf of the organization in the face of adversity
❙❙ Displays composure and resilience while leading the organization
through periods of turbulence, ambiguity or uncertainty
❙❙ Builds a diverse and cohesive leadership team that drives
achievement of superior results
❙❙ Creates a culture that enables cross-functional teamwork
❙❙ Invests time and effort on continuously improving team
effectiveness
❙❙ Models teamwork by working effectively with other leaders
throughout the organization
❙❙ Shares talent across divisions, functions and regions to serve the
best interest of the company
❙❙ Fosters a community of learning and sharing
❙❙ Leads by example by demonstrating ownership of decisions and
actions
❙❙ Creates an environment of accountability and provides a safety net
for learning from mistakes
❙❙ Ensures the organization meets its commitments
❙❙ Holds leaders accountable for performance and ethical conduct of
their teams
❙❙ Transparently elevates issues to the top early enough to enable the
organization to course correct
❙❙ Provides balanced reporting (the good and the bad)
Drives Results
Consistently achieving results, even
under tough circumstances.
Collaborates
Building partnerships and working
collaboratively with others to meet
shared objectives, within and across
functions.
Cultivates Innovation
Creating new and better ways for the
organization to be successful. Uses
lateral thinking. Questions the status
quo.
Customer Focus
Building strong customer
relationships and delivering customer-
centric solutions. Focuses on internal
and external customers.
❙❙ Builds a high-performance culture
❙❙ Selects, rewards and promotes individuals based on achievement of
results and how they were achieved (the what and the how)
❙❙ Eliminates obstacles affecting organizational performance
❙❙ Drives results that have a clear, positive and direct impact on
business performance
❙❙ Exemplifies collaborative leadership by inviting a wide variety of
perspectives to discussions
❙❙ Creates a climate where people communicate without fear of
criticism or retaliation
❙❙ Builds a culture and reward system that drives collaboration and
teamwork across organizational boundaries
❙❙ Breaks down organizational barriers
❙❙ Proactively enables sharing of best practices, expertise, resources
and ideas
❙❙ Builds skills and injects talent to accelerate innovate/lateral thinking
❙❙ Creates a culture that nurtures and rewards creativity and
innovation
❙❙ Challenges the organization to generate and implement
breakthrough ideas and solutions
❙❙ Confronts “status quo” thinking
❙❙ Has built customer intimacy and insight to provide forward-thinking
recommendations that strategically impact their long-term success
❙❙ Fosters a customer-focused mindset
❙❙ Ensures organizational resources and support are geared towards
anticipating/meeting customer needs
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Different roles, different responsibilities, different expectations
Our performance management philosophy is shifting towards development and career growth of our employees;
therefore, we have realigned our Performance Rating Categories.

The Performance Rating Category will be used to evaluate both the “What” and the “How”. Each category
represents the level at which the employee is performing against a specific objective, along with the demonstration
of a competency. At the end of the performance management exercise, the employee will receive a unique
performance rating for their overall yearly performance.

Performance Rating Categories

Performance Rating Category
Outstanding
Definition
Performance levels and accomplishments far exceed normal expectations.
This category is reserved for the employee who truly stands out and clearly
and consistently demonstrates exceptional accomplishments in terms of
quality and quantity of work that is easily recognized as truly exceptional by
others.

Exceeds Expectations Performance frequently exceeds job requirements. Accomplishments are

regularly above expected levels. Performance is sustained and uniformly
high with thorough and on-time results.

Meets Expectations Performance clearly and fully meets all the requirements of the position
in terms of quality and quantity of work. It is described as good, solid
performance. Minor deviations may occur, the overall level of performance
meets or slightly exceeds all position requirements.

Needs development Performance is noticeably less than expected. Usually performs to and
meets job requirements, however the need for further development and
improvement is clearly recognized.

Unsatisfactory Performance must improve significantly within a reasonable period of time if

the individual is to remain in this position. Employee is not performing to the
requirements of the job.

Leveraging our continuous performance discussions and developing collaborative behaviors go hand-in-hand in
your development.

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EMPLOYEE AND MANAGER GUIDE

PERFORMANCE MANAGEMENT
INCORPORATING COMPETENCIES