Effective Performance Management

Part I - Evaluating Performance

Process Overview

1
Learning Agenda
Building High Performance Culture at Britannia

• MODULE I - Understanding Performance @ Britannia

– Gaining an understanding of the current BIL people practices

• MODULE II – Conducting Effective Appraisals – The Process

– Process for conducting appraisals

2
Understanding Performance
Management @ Britannia
• Your role in building High Performance Culture
• Importance of Performance Management
• Performance Management Calendar
• Performance Management Process
• Understanding Evaluation System

3
High Performance Culture at Britannia

4
Business Goals - Year 2011-12

Deliver competitively superior results:

NSV - Rs. 56,339 MM
PAT- 1,706 MM
Market Share- BIL above market.

Create competitive advantage through operational excellence:

• Dramatically Reduce Cost & Improve Value :BNext benefits of Rs. 2,250 MM
• Significantly strengthen key processes across value chain: Procurement,
Manufacturing, Replenishment, Quality & GTM
• Profitably commercialize market place opportunities: With focus on
Creativity / Innovation, Customer Service

Invest in People for superior performance

Significantly ramp up in individual competencies and organizational capability to
deliver company goals

5
Performance Management Phase

Plan Coach Evaluate

• Set Objectives • Provide • Review
continuous & Performance
real time
feedback

6
 Performance Management - Roles
THE COMPANY
Company maintains an environment, with
systems that support high performance
and the development process.

EMPLOYEE MANAGER
Employees have Managers and leaders provide
primary the feedback and support
responsibility for necessary for employee
their performance performance and
and development. development.

7
 How is Performance measured?:

Britannia
Goals / Mission

ORGANIZATI

ORGANIZATI
ON “What” “How”

ON
Values
Britannia
&
FY Priorities
Culture

Knowledge,
Skills &
CTIO

CTIO
FUN

FUN
Departmental Leadership
Results : what
N

N
Priorities Behaviors
Behaviors : how
is achieved the work is
• Performance done
outcomes • Required
Major Areas of Actions
• Performance Responsibility / behaviors
compared to Individual Priorities
• Behaviors
VIDU

VIDU
INDI

INDI
- KRA’s
AL

AL
job standards supporting
• Performance desired
goals and/or organizational
Performance Development Process culture
objectives

8
Behavioral Performance Measurement

• Leadership
Organization
• Ownership
Values • Passion for Learning
Proposed
additional
evaluation
Defined by Competency frameworks:
in
Employee • Core Values
FY11-12
• Behavioral / Leadership
Behaviors
• Functional- Outside the Annual
Appraisal cycle

Defined by:
• Ways of Work
Action
- Strategies / Programs / Tasks
• Standard Operating Continued
CURRENT
Procedures assessment
in
FY12-13
Individual Defined by KRA’s / Individual Goals
and Objectives
Results
CURRENT (Organization wide)
 Core Values Behaviors
Core Values Description
Leadership We have the courage to shape a better future for all stakeholders
Ownership We hold ourselves accountable for consistent, sustainable results
by focusing on opportunities & eliminating obstacles, internal or
external
Passion for Learning We apply thought, creativity & sound business judgment to meet
aggressive goals & continually invest in people, products &
processes

These are integrated into our Leadership Behaviors framework…..

10
 8 Leadership Competencies
Leadership Description
Competency
Collaboration & People demonstrating this competency are effective in working with peers, partners and others who are not in the line of
Influencing their command. These individuals work effectively with those who are outside their immediate work area/span of control;
End result of their collaboration, sharing ideas/resources impacts the company.
Customer Focus People demonstrating this competency think about serving customers. Can be applied to Internal and External Customers

Result Orientation People demonstrating this competency have a drive for improvement of business results. Helps achieve return on
resources invested; Generates continuous improvement and at higher levels intelligently transforms business at entity level
for superior results.
Commercial People demonstrating this competency, are driven to make money. They always have an eye out for new and better means
Orientation to solve business problems and achieve enterprise and business success. They are able to capture and use creative
solutions to business problems. As someone moves higher up this scale, their strength and length of their vision increases.
Strategic Orientation People demonstrating this competency think beyond their own area. Strategic thinking can be applied to a function or
process, a product and market, a business unit or a corporate entity involving various businesses. This competency
requires complex thinking abilities, incorporating both analytical and conceptual abilities.
Developing Developing organizational capability is about developing the long term capabilities of others and the organization, and
Organizational finding satisfaction in influencing or even transforming someone’s life or career. They demonstrate the ability to create
Capability organizations that is both agile and sustainable. Identify processes, systems and infrastructures that require development,
enhancement, and revitalization for e.g. succession planning; efficient work structures; securing additional resources.
Leader who excels here always keeps an eye on the future
Team Leadership People demonstrating this competency can focus, align, and build effective groups. This competency includes leadership
roles in cross functional, cross organizational, or project teams as well as conventional line or staff management positions.
Leaders who will demonstrate this competency operate with a strong belief that building strong leadership teams as well as
independent leaders is their responsibility. They identify and act to remove barriers that inhibit the performance of teams.
Change Leadership People demonstrating this competency drive for improvement through people, transforming and aligning an organization in
a new and challenging direction. They rethink events; develop new concepts, questions, assumptions and stay focussed on
situations, customers and market place with the objective of staying abreast or going ahead of their needs.

11
 Leadership Competencies:
Incorporation of Core Values….
Applicability to Grades
Leadership Competency
VP M1 M2 M3 M4 M5 Officers

Collaboration & Influencing

Customer Focus

Result Orientation
(Incorporates ‘Ownership’ Core Value)
Commercial Orientation

Strategic Orientation NA NA NA NA
(Incorporates ‘Leadership’ Core Value)
Developing Organizational
Capability NA NA NA NA
(Incorporates ‘Leadership’ Core Value)
Team Leadership
NA NA NA NA
(Incorporates ‘Leadership’ Core Value)
Change Leadership
NA NA NA NA
(Incorporates ‘Leadership’ Core Value)

‘Passion for Learning’ – Core Value NA NA NA NA NA

Click on Grade hyperlink for detailed Behavioral descriptors by Grade………. 12

Recommendations to evaluate
Leadership Behaviors:

• Overall Rating is a wholistic assessment of both Performance and

Leadership Behaviors.

Further details in upcoming module…….

13
Understanding Performance
Management @ Britannia
• Your role in building High Performance Culture
• Importance of Performance Management
• Performance Management Calendar
• Performance Management Process
• Understanding Evaluation System

14
Importance & Criticality of Performance Management

Succession
Planning

Learning Performance
Management Coaching

Performance
Management

Rewards and Career

Recognition Advancement

Career
Coaching &
Management

15
Understanding Performance
Management @ Britannia
• Your role in building High Performance Culture
• Importance of Performance Management
• Performance Management Calendar
• Performance Management Process
• Understanding Evaluation System

16
 Annual
Appraisal
2012

T ATION
Self PRE BA& closure of NORM A LI Z
e
Assessme
nt Dialogu
an a g e r r a ti n g HRBP,
m
: F un ctional Head,
pl oyee Who
Who: Em to 15th April an ager RHRM’s ay
h Who: M th April to 21 M
st
Ma rc
16th il to 3 0 30th April
15th Apr

HR eview FINAL post BAT dialogue MERIT

Stee ring Com R Ratings & tter
Increase Le
Re v ie w & HRBP nager
Who: M D
th May Who: Ma th June
22nd May to
25
28 M
th ay to 15
By: 30 Ju
th ne

17
Understanding Performance
Management @ Britannia
• Your role in building High Performance Culture
• Importance of Performance Management
• Performance Management Calendar
• Performance Management Process
• Understanding Evaluation System

18
 Performance Management Process
Goal Setting Mid Yr - Review Annual Appraisal

Role Based Org/ Dept Mid Year Review - Self assessment by Finalization of
goals Goals the employee Ratings by HR
Steer com

Pre BAT dialogue

KRA setting with the employee Review and
Approval by MD

Appraisal by
Manager Communication of
final ratings to Dept
Heads/ RHRM
Review with
Manager’s Manager POST BAT
dialogue

Normalization at Compilation (Merit

Region/Dept/Functi increase letters )
on and communication
Ongoing feedback and coaching
19
Development needs
Understanding Performance
Management @ Britannia
• Your role in building High Performance Culture
• Importance of Performance Management
• Performance Management Calendar
• Performance Management Process
• Understanding Evaluation System

20
 Understanding the Ratings
KRA Rating ( Evaluation ) Overall Rating ( Calibration)
• Based on KRA Achievement in the current
year • Based on KRA Achievement + behavior
displayed in the current year
• 4 point rating scale
• 5 point rating scale
- Role Model (R)
- Top Performer (T)
- Solid Performer (S)
- Marginal Performer (M)
- Needs Improvement (NI)

• Annual Bonus payouts depend on KRA • Annual salary increments depends on the
Rating overall rating

Consistent Availability of a
Performance on Behaviours
Payouts KRA rating score Performance suitable role in
the job Demonstrated
( 2- 3 yrs) higher grade

Performance Bonus

Salary Increments

Career Advancements
21
 Understanding the Ratings ( contd…)
Rating scale Definitions
R:  Employee is a role model for performance excellence and leadership behaviours ,
Role Model demonstrated and characterized by high energy and passion. Creates visible ,
significant, consistent and unique contributions at an organizational /functional
level.
 Employee is considered a subject matter expert who disseminates knowledge &
continually coaches others

T:  Employee significantly and consistently surpasses performance and

Top Performer leadership behaviour expectations, proactively contributing to functional and
organizational objectives.
 Employee is proficient in required knowledge or ability for current role and
continually disseminates knowledge and coaches others

S:  Employee consistently meets performance goals and leadership behaviour

Solid Performer expectations
 Employee is capable and knowledgeable in his/her areas of work
M:  Employee is not consistently meeting performance and leadership behaviour
Marginal Performer expectations
 Employee has little or partial knowledge about area of work and requires
significant improvement in ability to enhance performance
NI :  Employee is not meeting performance and leadership behaviour expectations
Needs Improvement  Does not demonstrate knowledge or ability to perform majority of assigned
duties

22
Conducting Effective Appraisal
The Process….
• Pre BAT Dialogue
• Decision Making
• Post BAT Dialogue

23
Pre BAT dialogue

Formal meeting between Manager & employee to:

- Highlight accomplishments in the self assessment of employee vis-à-vis
the goals set
- Feedback and recognition received by others including internal and
external customers
- Initiatives taken and value created for Business, during the course of the
year

Please note : Pre BAT dialogue is NOT

- a forum for Managers to share performance feedback
- a forum to discuss the evaluation and ratings
- a salary discussion

24
Conducting Effective Appraisal
The Process….
• Pre BAT Dialogue
• Decision Making
• Post BAT Dialogue

25
How Do I Differentiate Performance?

Adjust initial decisions

• Answer the questions below to ensure that you have a fair distribution of performance ratings that meet differentiation guidelines.
• If you answer “yes” to a question, note whether you can make changes in your ratings that could change that answer to a “no.”

Question Answer
Yes No

Objectivity
Have I assigned higher ratings than deserved to some people because I want my direct reports to like me?
Is there an element of favoritism towards particular employees in any of my rating decisions?

Have I assigned higher ratings than deserved to some people because I am hesitant to communicate difficult performance decisions?

Have I assigned higher ratings than deserved to some people because I believe positive communication will bolster their
performance?

Is it likely that these decisions would be challenged as too high or low by other managers who work with people in this group?
Would any of the employees to whom I have assigned a given performance rating “lower the bar” for this rating?
Do any of the employees assigned the same rating require significantly more or less coaching/support than the rest of the group?

26
 Normal Distribution:
Normal Distribution :
• Requires managers to rank their employees by level of performance (both KRA &
Leadership behaviors)

• Recognize Differentiated Performance in the Organization

Bottom Top
15% Middle 60% 25%

Rating :-- BE / NI ME EE / OS 27
Guidelines for Normalization
• Skewness of the normal curve (if any) should be discussed. The Managers to
justify the reasons for skewness.

• Key contributions by employees rated EE/OS explained along with

justifications of critical incidents

• All employees rated BE/NI by their managers should be discussed and

Performance Improvement Plans (PIP’s) to be made

• Any striking imbalances like fall of ratings from OS to ME/BE or vice versa to
be discussed

• Spike in performance due to which a particular employee is allotted superior

ratings in consecutive year to be discussed

28
Conducting Effective Appraisal
The Process….
• Pre BAT Dialogue
• Decision Making
• Post BAT Dialogue

29
Post BAT Dialogue
- Share overall Feedback on performance against KRA’s and Core Values,
explain the relative position of the employee vis-à-vis others in the team.
- Communicate and justify the overall ratings allotted to the employee with
relevant examples
- Discuss strengths, areas of improvement and career aspirations of the
employee
- Discuss future goals and responsibilities that will employee is likely to handle.

What it is What it is not

- Formal feedback session - Discussion on compensation –
- Basis for making development performance bonus or increments
and improvement plan and
reaching agreement about what
should be done in the future

Post BAT Discussions and Salary Discussions are separate

30
Objective of Annual Appraisal process:

FIRM ,
FAIR &
WITH HEART

Shared Learning &

Shared Growth…..
31
 Thank You!

More on Best Practices in upcoming module ….

32
Appendix

33
 Competency
Collaboration & Influencing
(Motivates others to work with Self
) - Shows others how their objectives align with own
Customer Focus (Knows the
Customer's perspective and uses
knowledge to anticipate the
customer's requirements)
Result Orientation
(Delivers uncompromisingly for
higher performance)
Commercial Orientation
(Generates New Commercial
options beyond own area)
Strategic Orientation
(Defines strategy for own area)
Developing Organizational
Capability
(Systematically works on building
own team capability)
Team Leadership
(Empowers teams to perform)
Change Leadership
(Mobilises others to initiate
change)
Passion for Learning
VP - Threshold Behavior
- Uses the informal structure, dynamics and culture of an organization to get things done
- Actively seeks inputs in decision-making
- Actively contributes to the broader organization or team, compromising on own preferences where necessary
- Invests in building relationships with others
- Understands how the customer perceives their own business relative to competition or market
- Understand the customer's organization, culture and how things get done
- Develops measurable customer-specific key performance indicators
- Anticipates evolving customer needs and how the organization can address them with current or new products
-Delivers performance that stands out in the market
- Energized by better ways of doing things,. So that higher levels of performance are possible
- Introduces incremental improvements to enhance business performance, using robust analysis and benchmarking
- Works smarter not just harder and learns from mistakes
- Generates new profit making initiatives beyond own area whilst applying disciplined risk and return criteria
- Actively draws insight from a wide variety of internal and external sources, to generate new ideas and opportunities for own and
other parts of business
- Drives and encourages commercial behaviour in the organization
- Creates new commercial opportunities by building cross functional, company or industry partnerships
- Articulates evolving priorities for the business within 3-5 year horizon and incorporates understanding of other relevant industries
- Integrates a variety of information or translates corporate strategy into the definition of a business/unit/product/functional strategy
- Asks questions which open up new ways of seeing the company or its industry
- Has a clear view of how the different capabilities of the team members work together
- Systematically and constructively gathers individual development input from multiple sources
- Uses sound assessment methods including behavioural interviews, multiple assessors to select internal and external candidates
for development planning
- Explains to individuals how they can contribute to team development
- Sets specific development goals for individuals in order to build capability of function or department
- Seeks to understand systematic retention challenges and addresses them
- Provides assignments that take and individual into a new area of work to enhance bench strength of the team
- Agrees responsibilities based on insight into an individual's competencies as well as experience, taking calculated risks where
appropriate
- Empowers the team to identify and solve problems, providing necessary support
- Uses understanding of self and team to resolve conflicts effectively
- Creates a clear sense of team identity and holds the team accountable for meeting collective goals
- Rewards individual initiatives beyond expectations to advance the common goal
- Encourages others to pursue opportunities for change
- Takes action to influence specific individuals, such as giving them a part to play in the change effort
- Publicly tracks the progress of change in order to keep people engaged
- Engages with people throughout the change process to understand and address emotional reactions and maintain commitment
Applies thought, creativity and sound business judgment to meet aggressive goals and continually invest in people, products and
processes
34
 Competency
Collaboration &
Influencing
(Actively engages with
colleagues)
Customer Focus (Delivers
against the Customer's
needs relative to existing
products/services offered)
Result Orientation
(Delivers beyond
Expectation)
Commercial Orientation
(Makes the most of the
opportunities to improve
profitability of own area)
Strategic Orientation
(Articulates medium term
priorities)
Developing
Organizational
Capability
(Provides Structured
Individual developmental
support)
Team Leadership
(Actively Involves the Team)
Change Leadership
(Advocates Change)
Passion for Learning
M1 - Threshold Behavior
- Prefers working in groups
- Asks questions, tests assumptions and openly discusses issues
- Readily accepts and uses expertise and inputs from others
- Actively listens and responds to the concerned feelings of others even when not explicitly stated
- Adapts communication to the specific audience
- Builds informal networks internally and externally and views them as part of the value creation process
- Develops detailed understanding of customer's needs, issues and prioritises through routinely seeking customer feedback
- Knows how organization performs against customer expectations
- Works to improve customer satisfaction within framework of existing products/services offered
- Communicates good and bad news to customer in a timely manner
- Energized by challenges
- Sets new and stretch goals for self and team, and achieves beyond what is expected
- Exploits opportunities to exceed goals and works towards them, even under adverse circumstances
- Focused on implementing ways to improve profitability
- looks beyond numbers in making value-creating decisions, combining hard data and personal insights
- Acts quickly on and prioritises commercial opportunities within own area of responsibility
- Anticipates evolving commercial trends and takes steps to refocus business activities accordingly
- Understands own business within group and industry context
- Articulates evolving priorities for the business within a two-year horizon
- Frames the right strategic questions for the area of business
- Adapts short-term plans as business priorities for the company
- Differentiates performance levels based on individual skill level, motivation and context
Individual feedback:
- Frequently provides positive and negative behavioural feedback that can be used for systematic development
- Articulates what "good looks like" and provides specific real-life examples
Development efforts:
- Works with individuals to set appropriately challenging development goals, explaining not just what to do, but why to do it
- Provides practical development support
- Seeks to understand the retention issues of selected individuals, takes appropriate actions accordingly
- Actively engages the team to develop plans and resolve issues through collaborative problem solving
- Gains commitment using logic
- Agrees individual tasks based on previous experiences and shows them how their work fits in with what others are doing
- Holds individuals accountable for agreed plans and rewards those who support team objectives
- Communicates a clear, compelling new direction, whether or not they originated it
- Sets clear targets in line with the larger change effort to focus people on accomplishing the change
- Engages others internally and externally by making the case for change and explaining their role in it
- Helps others come to terms with the need for change
Applies thought, creativity and sound business judgment to meet aggressive goals and continually invest in people, products and processes
35
 Leadership Behaviors – M2
Competency
Collaboration & Influencing
(Actively engages with colleagues)
Customer Focus (Delivers
against the Customer's needs
relative to existing
products/services offered)
Result Orientation
(Consistently Delivers)
Commercial Orientation
(Identifies opportunities to
improve profitability of own area)
Strategic Orientation
(Articulates medium term
priorities)
Developing Organizational
Capability
(Provides Structured Individual
developmental support)
Team Leadership
(Actively Involves the Team)
Change Leadership
(Advocates Change)
Threshold Behavior
- Prefers working in groups
- Asks questions, tests assumptions and openly discusses issues
- Readily accepts and uses expertise and inputs from others
- Actively listens and responds to the concerned feelings of others even when not explicitly stated
- Adapts communication to the specific audience
- Builds informal networks internally and externally and views them as part of the value creation process
- Develops detailed understanding of customer's needs, issues and prioritises through routinely seeking customer feedback
- Knows how organization performs against customer expectations
- Works to improve customer satisfaction within framework of existing products/services offered
- Communicates good and bad news to customer in a timely manner
- Energized by working towards a specific goal set by others
- Works towards planning targets, overcoming obstacles, setbacks and uncertainty
- Plans for contingencies to ensure delivery
- Indentified opportunities in own area to contribute to the commercial success of the enterprise
- Applies financial assessment techniques to evaluate commercial opportunities
- Identifies ideas or practices found in similar companies within the industry that can be applied to own
- Understands own business within group and industry context
- Articulates evolving priorities for the business within a two-year horizon
- Frames the right strategic questions for the area of business
- Adapts short-term plans as business priorities for the company
- Differentiates performance levels based on individual skill level, motivation and context
Individual feedback:
- Frequently provides positive and negative behavioural feedback that can be used for systematic development
- Articulates what "good looks like" and provides specific real-life examples
Development efforts:
- Works with individuals to set appropriately challenging development goals, explaining not just what to do, but why to do it
- Provides practical development support
- Seeks to understand the retention issues of selected individuals, takes appropriate actions accordingly
- Actively engages the team to develop plans and resolve issues through collaborative problem solving
- Gains commitment using logic
- Agrees individual tasks based on previous experiences and shows them how their work fits in with what others are doing
- Holds individuals accountable for agreed plans and rewards those who support team objectives
- Communicates a clear, compelling new direction, whether or not they originated it
- Sets clear targets in line with the larger change effort to focus people on accomplishing the change
- Engages others internally and externally by making the case for change and explaining their role in it
- Helps others come to terms with the need for change
3636
 Leadership Behaviors – M3
Competency
Collaboration &
Influencing
(Supports Colleagues)
Customer Focus (Has
basic understanding of the
customer's needs)
Result Orientation
(Consistently Delivers)
Commercial Orientation
(Identifies opportunities to
improve profitability of own
area)
Threshold Behavior
- Offers help when there is mutual gain or when convenient
- Participates in teams if asked
- Shares information with Others
- Instructs rather than engages
- Gathers information in order to learn about the customer
- Has basic understanding about how internal/external customers use their products and servicers
- Listens to customer feedback and acts on it
- Energized by working towards a specific goal set by others
- Works towards planning targets, overcoming obstacles, setbacks and uncertainty
- Plans for contingencies to ensure delivery
- Indentified opportunities in own area to contribute to the commercial success of the enterprise
- Applies financial assessment techniques to evaluate commercial opportunities
- Identifies ideas or practices found in similar companies within the industry that can be applied to own
37
 Leadership Behaviors – M4
Competency Threshold Behavior
Collaboration & - Offers help when there is mutual gain or when convenient
Influencing - Participates in teams if asked
(Supports Colleagues) - Shares information with Others
- Instructs rather than engages

Customer Focus (Has - Gathers information in order to learn about the customer
basic understanding of the - Has basic understanding about how internal/external customers use their products and servicers
customer's needs) - Listens to customer feedback and acts on it

Result Orientation - Delivers as long as there is no major obstacle

(Strives to Deliver - Looks for opportunities to improve and takes adhoc actions
consistently)

Commercial Orientation - Shows understanding of practical financial issues and commercial fundamentals. Knows how money is made in business generally
(Understands how the - Understands the key profit drivers for area and sees how area/function contributes to the profitability of the enterprise
business makes money)

38
 Leadership Behaviors – M5
Competency Threshold Behavior
Collaboration & - Offers help when there is mutual gain or when convenient
Influencing - Participates in teams if asked
(Supports Colleagues) - Shares information with Others
- Instructs rather than engages

Customer Focus (Has - Gathers information in order to learn about the customer
basic understanding of the - Has basic understanding about how internal/external customers use their products and servicers
customer's needs) - Listens to customer feedback and acts on it

Result Orientation - Delivers as long as there is no major obstacle

(Strives to Deliver - Looks for opportunities to improve and takes adhoc actions
consistently)

Commercial Orientation - Shows understanding of practical financial issues and commercial fundamentals. Knows how money is made in business generally
(Understands how the - Understands the key profit drivers for area and sees how area/function contributes to the profitability of the enterprise
business makes money)

39
 Leadership Behaviors – Officers
Competency Threshold Behavior
Collaboration & - Prefers to work independently but will help if required
Influencing
(Will Respond if asked)

Customer Focus - Will respond to the customer requests, internal or external, when asked
(Responds to the customer) - Reactive in response

Result Orientation - Works to complete assigned tasks

(Fulfills assigned tasks) - Demonstrates desire to do the task adequately

Commercial Orientation - Works as directed towards financial goals but lacks good understanding of how activities link to financial metrics
(Aware of the need to make - Understands the importance of business of achieving commercial success
money)

40