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EffectivePerformanceManagement-ACaseStudyPPM20032Agenda-Whyperformancemanagement?-Whatistheprocess?-Howtomakeitwork?-Valuealignment/topdowndrive-Linkingrewardsanddevelopment-Aspectsofinfrastructure-Communication/education-Partoftheculture-Wheretostart?PPM20033Whyperformancemanagement?•Basicmanagementcycle–Planning,organizing,staffing,leading,andcontrolling•Fundamentalcorporateinfrastructure•Consistencyinmeasuring/rewarding•SustainabilityinbusinessandpeoplePPM20034Whatistheprocess?•Annualprocess–Pastreviewandnextgoalsetting–Appraisalprocess:rewards–Individualdevelopmentplanning–On-goingreviewanddocumentation•GlobalalignedPPM20035PhilipsWay:PeoplePerformanceManagement(PPM)is……aprocesswhichhelpstoalignpersonalandbusinessobjectives…drivenby‘thePhilipsway’:oneculture,onebrand,onecompanyoneglobalapproachforPeoplePerformanceManagement…supportingtheimprovementofbusinessresultsforPhilipsPPM20036PPM:acyclicalprocess…PPM20037Howtomakeitwork?-valuealignment&topdowndrive•Aperformanceorientedvaluesystem•Companyvalueasthecorethroughoutorganization•Valuederivedcriteriaintheorganizationstructureandsupportingsystem(HR)•Determinationshownfromthetop•LeadersbeingdrivenbythesameprocessPPM20038OurValuesDelightcustomersWedelightourcustomersbyanticipatingandexceedingexpectationstherebycreatingsustainablemarketleadershipDeliveroncommitmentsWepursuebusinessexcellence,beingrigorousindeliveringonourcommitmentsDeveloppeopleWeinspireandenableeachothertouseourcreativityandentrepreneurialflair,andtomaximizeourpotentialDependoneachotherWeworkas“onePhilips”inanenvironmentoftransparencyandtrusttomobilizeourcollectivecompetenceandthatofourbusinesspartnersValuesPPM20039Howtomakeitwork?-linkingrewardsanddevelopment•Tightlinkagebetweenperformanceoutcomeandrewards•EmbeddedindividualdevelopmentprocessPPM200310PhilipsWay:LinksbetweenPPMandotherHRareasSalary&AnnualincentiveIndividualDevelopmentPPM200311Howtomakeitwork?-aspectsofinfrastructures•Fullrangeofdocumentation•On-linereviewsystem•Performancedistribution•CalibrationprocessPPM200312PhilipsWay:•Documentation–Jobdescription(JD)–Businessbalancedscorecard(BBS)–Personalcontributionagreement(PCA)–Individualdevelopmentplan(IDP)•On-linePPM–PPMisanon-linesystem•Guideddistribution–10%,20%,50%,15%,5%•Calibrationprocess–ManagementteamdiscussionPPM200313Howtomakeitwork?-communication/education•DefinedrolesandresponsibilitiesinPPM•Fullcoverageofcommunication•Ongoingupdates•DeadlinesandconsequencesPPM200314PhilipsWay:Rolesandresponsibilities•ImplementationLeaders•Experts/facilitatorsofPPMtraining•Tutors(OperationalHRManagers)•RegionalAdministrators•PPMProjectTeamCorporateHRMPPM200315Howtomakeitwork?-partoftheculture•Businessachievementneedssystematicdriveinmanagingperformance•Performancecomesfromemployee•ManagementjobistoenhanceemployeeperformancePPM200316PhilipsWay:AneffectivePPMprocessisaboutthedialoguebetweenmanagerandemployee…EmployeesManagers•Understandhowtheycontributetobusinessresults•Understandwhatisexpectedfromthem•Understandtowhatextenttheymeettheseexpectations•Developthemselves•Deployandrealizebusinessgoals•Setclearobjectivesandevaluateperformance•DeveloppeoplesotheycanaddmorevaluePPM200317Wheretostart?•Aperformancemindedleadershipteam•AcompetentHRorganizationandpersonnel•Aneffectiveinfrastructure•Adriveoncommunicationandeducation•Aclearsetofvalueandvalueorientedculturewithcriteria