Achievement Development Process ADP Outcomes of Session n

Achievement & Development Process (ADP)

Outcomes of Session n Understand your role in a Performance Management Process n Understand the four elements of the Achievement and Development Process - Goal Alignment - Continuous Feedback - Summary Discussion - Human Resource Review

Why have a Performance Management Process? n Clear Expectations of the Individual n Aligned Goals n Clear Performance Understanding n Career Development Plan n Plan for Individual Improvement in the position n Evaluate Corporate Resources (individuals) n Individual Income Management n Manage individual Expectations n Open two-way Communication

Performance Management Components Achievement & Development Process Training & Development Compensation Strategy Balanced Measures Career Development Staffing Strategy

Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback SUCCESS Summary Discussion Human Resource Review

Goal n A desired result that increases customer satisfaction and/or improves processes to attain business objectives; n A desired result that contributes to employee growth and development

What is Goal Alignment? n Process used at all levels of the organization for setting goals that are consistent with and supportive of with the goals of: – the next level up and down - Vertical – key customers - External – key partners within the company - Horizontal

Goals/COTs - Definition Business Goals: macro, high level, business results/objectives; there can also be higher level business unit/process area goals Individual Goals: Your business unit/process area objectives that support the Business Goals. Critical Operating Tasks: specific actions key to the achievement or in support of corporate or business/process area goals

ADP Goals/COTs drive. . . n Individual / team accountability for achievement of results – performance n “pay for performance” compensation through merit increases and incentive pay

Goal Setting/COT Alignment Process begin Review higher level goals “How do we/ should we contribute? ” Goal Our Goals Setting/ Review and update during year Develop action plans for goals “Do goals/ Alignment COTs meet criteria and guidelines? ” Determine team and individual work “Are Develop goals/COTs aligned? ”

Effective Goal/COT Development Checklist 1. Specific. . . describes end results 2. Meaningful. . . contribute to accomplishment of business goals 3. Aligned with other goals. . . linked with higher level goals & goals across organization/between functions 4. Realistic and attainable. . . a manageable number within your control 5. Timing and measurable. . include a deadline 6. Balanced. . . include process improvement & end result achievement; team and individual results

Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review

Continuous Feedback Review n What is Continuous Feedback? n Leader’s role n Continuous Feedback Process – feedback sources – feedback topics – soliciting feedback – good feedback – development planning

What is Continuous Feedback? n Process for individuals and teams to collect feedback from managers, peers, co-workers, customers, and suppliers to assess performance against goals, customer satisfaction, and developmental needs n Feedback is continuous and collected on an on-going basis via informal and formal means n Feedback should capture both the “what” and “how” – what was achieved – how was it accomplished

Benefits Of Continuous Feedback n Allows employees to collect specific, actionable information directly from individuals with whom they work most closely. This information can be used to improve: – individual performance – work processes – relationships with others

Continuous Feedback Process Evaluate Progress Identify feedback sources Solicit feedback Develop and Implement Action Plan Prepare & Lead ADP summary discussion with leader Document & interpret feedback

A Feedback Source is someone who. . . Identify feedback sources n you work with on a regular basis n can provide information about how your work is going n is familiar with your goals/COTs and achievement toward them

Feedback Topics n Progress on goals/COTs n Meeting your customer’s needs & expectations n Interpersonal skills n Work habits n Quality of work n Leadership characteristics and job competencies Solicit feedback

Formal Surveys n Two versions: – leader (also two versions; cost) – individual contributor (no cost) n Available electronically via HR Online Solicit feedback

Good Feedback Document & interpret feedback n Is informal and ongoing n Relies on combination of sources and methods used to collect it n Comes from asking open questions n Depends on active listening n Is specific, based on examples, and actionable n Develops over time n Usable for improvement

Receiving Feedback n Listen attentively n Remain calm, objective, and open-minded n View all information as potentially useful n Ask for specific examples n Avoid rejecting, defending, or justifying n Paraphrase or summarize to clarify understanding n View it as a challenge & opportunity for development n Thank the person for the input n Give the feedback time to digest

Giving Feedback n Begin by using the word “I”. n State your Feelings n Describe the Behavior in specific terms n Be prepared to give Examples n Give the Reasons for your feelings n Explain What you would like the other person to do n Ask for Agreement

Competencies Solicit feedback n Categories of behaviors key to roles performed at OC n Typically used during interview process n Examples: – communication – teamwork – problem solving – customer focus n Use these in soliciting feedback and to outline strengths & areas for development

Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review

What is a Summary Discussion? n Leader and employee have a discussion on the following: – performance against goals – summary of feedback collected, how those learnings were applied – strength/development area identification – career growth (short and long term) – development needs and plan n Formal documentation once per year (based on reviews during the year)

Characteristics n Leader and employee both prepare and discuss n Leader acts as coach n Each business determines the timeframe n Focuses on achievements and development n Forward looking – new goals/COTs for the year – development needs & career objectives n Leader and employee share feedback

Preparation n Summarize – overall performance & achievements against goals/COTs – feedback received n Identify: – strengths & developmental areas – Tie to Competencies – career planning (short & longer term) – development needs/actions – possible new goals/COTs n Use common electronic format for summary discussion

Goal/COT Alignment

Competencies n Supporting Tools: – Leadership Characteristics • 10 Characteristics that have been identified by the Sr. Leadership Team – Job Competencies • Also known as Targeted Selection interview dimensions n Competencies by Function – Provides selected Characteristics and Competencies that should be reviewed for employees in specific functions.

Leadership Characteristics n Catalyst for Change n Personal Confidence n Good Listener n Personal Integrity n Communicates Openly and Seeks Information n Encourages Individual Dignity n Creates Teamwork Climate n Seeks Personal Growth n Sense of Urgency n Sense of Humor

Competencies

A Path to Business Results Strengths-Based Organization

Traditional Thinking n Engagement model: – Employees surveyed on variables unrelated to business results – Lack of follow-through (Low commitment, no consistent follow-up process on survey results) n Leadership model: – Use weakness-fixing to drive performance (I. e. ADP focused on“fixing” what is wrong with people) – Standardize behavior (one way is the right way) – Focus was on team, dept or BU goals (Disconnected from OC goals)

Fundamental Principles of a Strengths Based Organization (SBO) n Engaging employees leads to business results n Leveraging strengths drives individual performance excellence To drive business results, OC is implementing these two principles Strengths-Based Leaders & Mgrs are the mechanism for implementing SBO

Leadership-Driven Strengths Path Continuous Improvement Identify Individual Talents Develop Talents Into Strengths Align Strengths With Business Plan Individual & Team Performance Excellence Business Results

…The Many Linkages (examples below) Engagement Strengths n What is expected of me n Opportunity to do what I do best n Align strengths with business plan (COT’s) n Received recognition/praise n Identify talents & apply on the job n Someone cares about me n Update processes to support use of strengths n Someone encourages development n My opinions count n My job is important n Talked with me about progress n Opportunities to learn & grow n ADP/growth plans focused on strengths n Place people in the right roles n Coaching by leaders n Focus on the individual

Breakthrough Thinking Traditional thinking Breakthrough thinking Traditional leadership behaviors New leadership behaviors Traditional business results Breakthrough Business results . Strengths-Based Organization principles are “new” ways of thinking

Leader’s Role n Initiates process and schedules final review n Preparing for discussion as employee does n Responsible for seeing that all elements are covered n Provide own feedback n Reality check on performance results, strengths/development areas, career objectives & development plans n Coach employee n Ensure Summary Discussion Form is documented and signed

How does my evaluation affect my pay? n Performance evaluation is one tool that is used in determining an employee’s merit pay. – Focus on past year performance, multiple input from multiple levels – Overall achievement – Look at contributions to assignments; were improvements made or were processes done more efficiently n Other items include: – Current salary in relation to market value and band ranges – Amount of time since last increase – Allocated salary budget

The Bands Officers Senior Leadership Managers, Senior Individual Contributors Supervisors, Professional, Analysts Technical Administrative 8 $15, 000 to $55, 000 7 $20, 000 to $70, 000 5 6 $30, 000 to $100, 000 $50, 000 to $140, 000 Leadership 4 $65, 000 to $175, 000 3 $90, 000 to $300, 000 2 $120, 000 to $520, 000

Compensation Goals n Reward fairly for your contribution to Owens Corning’s success n Provide a competitive compensation package n Align compensation with individual and Company performance n Provide flexibility for both the Company and you

Major Surveys Used to determine market values – Organizational Resource Counselors (700 companies) – Hay Pay. Net - Next generation of Hay survey data (500 companies) Both allow for peer group specification Other surveys may be used for specialized positions

Determining Merit Pay n Focus on performance, achievements, feedback n Look at contributions to assignment n Consider current salary in relation to market value and band ranges of assignment n Consider amount and date of last increase n Administered within salary budget

Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review

What is an Human Resource Review (HRR)? n Process in which leaders of the company meet to discuss various HR strategies n Follows Achievement and Development Summary discussions n Among leaders of a particular organization (NLT’s) n Facilitated by Human Resources Representative

HRR Focus n Human resource implications of business strategy n Potential organizational structure changes n Needs of selected employees n Potential job movements n Training & development needs n Succession planning n Diversity opportunities n Inventory of organizational skills n Recruiting needs

HRR Outputs n Plans for job movements, succession planning, recruiting n Development needs n Feedback to Training and Development organizations n Shortfalls in structure, skills, training, and manpower

Key Leader Staffing Process Identify Open Position Review interview data and determine if offer will be extended* Outline Job Specifications Responsibility: HR Leader Staffing Leader Sourcing Procedure: *Selection of non-Succession Plan participant must be validated by Senior VP of HR - JOBB Posting - Internal review of key succession plan information - External Search as necessary - Executive Team communication and nomination - Diversity nomination - HR Leadership Team Review Responsibility: Staffing Leader Candidate Finalization Review sourcing comparison data and determine candidate interview pool. (Provide status update to Hiring Manager and HR Leadership team. ) Responsibility: HR Leader Conduct Interview Panel consists of: Organization Senior Leader Hiring Manager HR Leader Staffing Leader Others as necessary Responsibility: HR Leader

Career Management

Career Management n What is Career Management? n Your role in Career Management n Your leader’s role in Career Management n What tools and/or experiences are available for career management?

Career Management n Defining your career objectives, understanding your current performance, capabilities, aptitudes and then developing a plan to match your expectations.

Your Role in Career Management n You “own” this journey. . only you can make the final decision about what to do or NOT to do n Consider: – Your contribution in current assignment – Your strengths and areas for development – Your short and long-range career objectives – Your developmental needs – Your potential to do other things

Your Role in Career Management n Select Tools to help define career objectives that include: – Interests – Motivation – Inventory of current capabilities (self) – Professional expectations – Personal expectations – What do you want to do?

Your Leader’s Role n Jointly determine what success is in your current assignment n Provide ongoing feedback about your performance n Ensure that career discussions occur n Provide a logical framework for review n Understand what resources are available to assist employees in this area n Understand career alternatives in OC n Be honest and direct regarding expectations

What tools are available? n Achievement & Development Process – Personal Development Plan n Career Coaching Guidelines for Employees and Leaders n Education/Information on: – organization – roles/jobs – requirements • skills • experiences • competencies n Mentor

Key Steps n Self - Assessment regarding interests n Gather information regarding opportunites n Explore and network n Engage leader an mentor n Develop action plan n Get in the game

Mentoring Process

What is the Mentoring Process? g g Mentoring helps employees develop and become a successful member of the team faster. Mentoring helps transfer knowledge between seasoned employees and newer employees.

The Mentoring Process - Overview Potential Mentor Identification Mentor-Mentee Pairing Mentoring ID Potential Mentors Assign Mentor to Employee Mentee Initiates Mentoring Session Provide Mentor with Information Mentee Meets with Mentors Conduct Mentoring Session Maintain Mentor Biographies Mentee and Mentor Agree to Relationship Follow Up as Necessary Evaluate & Improve the Mentoring Process

Potential Mentor Identification g g g A positive role model of the company’s values and practices Knowledgeable about organizational goals, policies, programs, and opportunities Aware of the culture, trends, networks, and information resources within the organization

Potential Mentor Identification g g Regarded as successful in their job Skilled in setting goals, coaching, providing feedback Strong in listening, communication, and problem solving Committed to the process and effort

Mentor-Mentee Pairing g g For new hires or transferred employees Based on similarity and diversity of backgrounds and/or interests, willingness to mentor new hires, etc. Meet to define relationship The mentee can establish a relationship with a different mentor

Mentoring Process - Roles and Responsibilities Mentors – Set realistic expectations – Make themselves available – Maintain consistent contact – Identify areas for personal development – Share business contacts

Mentoring Process - Roles and Responsibilities Mentees – Initiate contact with mentor / plan meetings – Set goals for self – Open to feedback -- accept information without interpreting it as evaluation – Be candid about needs and deficiencies – Follow through on commitments/ seek help

Mentoring Process - Roles and Responsibilities Mentees – Willing to discuss failures as well as successes – Do what is appropriate to build a strong relationship – Utilize resources provided for career growth

BUILDING SUCCESS IN A MENTORING RELATIONSHIP g Respect each other’s ideas & experiences g Realize ownership of the process is mutual g Seek additional support if necessary g Meet / communicate regularly