1. Effective Performance Management- A Case StudyRobert H. Xiao, Ph DHR Director, People & Organization DevelopmentPhilips China Corp HR
2. Agenda
Why performance management?
What is the process?
How to make it work?
Value alignment / top down drive
Linking rewards and development
Aspects of infrastructure
Communication/education
Part of the culture
Where to start?
3. Why performance management?Basic management cycle
Planning, organizing, staffing, leading, and controlling
Fundamental corporate infrastructure
Consistency in measuring/rewarding
Sustainability in business and people
4. What is the process?Annual process
Past review and next goal setting
Appraisal process: rewards
Individual development planning
On-going review and documentation
Global aligned
5. Philips Way:
People Performance Management (PPM) is…
…a process which helps to align personal and business objectives
…driven by ‘the Philips way’:
one culture, one brand, one company
one global approach for People Performance Management
…supporting the improvement of business results for Philips
6. PPM: a cyclical process…
7. How to make it work?- value alignment & top down driveA performance oriented value system
Company value as the core throughout organization
Value derived criteria in the organization structure and supporting system (HR)
Determination shown from the top
Leaders being driven by the same process
8. Our ValuesDelight customersWe delight our customers by anticipating and exceeding expectations thereby creating sustainable market leadershipDeliver on commitmentsWe pursue business excellence, being rigorous in delivering on our commitmentsDevelop peopleWe inspire and enable each other to use our creativity and entrepreneurial flair, and to maximize our potentialDepend on each otherWe work as “one Philips” in an environment of transparency and trust to mobilize our collective competence and that of our business partnersValues
9. How to make it work?- linking rewards and developmentTight linkage between performance outcome and rewards
Embedded individual development process
10. Philips Way:Links between PPM and other HR areasSalary
&
Annual incentiveIndividual
Development
11. How to make it work?- aspects of infrastructuresFull range of documentation
On-line review system
Performance distribution
Calibration process
12. Philips Way:Documentation
Job description (JD)
Business balanced score card (BBS)
Personal contribution agreement (PCA)
Individual development plan (IDP)
On-line PPM
PPM is an on-line system
Guided distribution
10%, 20%, 50%, 15%, 5%
Calibration process
Management team discussion
13. How to make it work?- communication/educationDefined roles and responsibilities in PPM
Full coverage of communication
On going updates
Deadlines and consequences
14. Philips Way:Roles and responsibilitiesImplementation Leaders
Experts/facilitators of PPM training
Tutors (Operational HR Managers)
Regional Administrators
PPM Project Team Corporate HRM
15. How to make it work?- part of the cultureBusiness achievement needs systematic drive in managing performance
Performance comes from employee
Management job is to enhance employee performance
16. Philips Way:An effective PPM process is about the dialogue between manager and employee…EmployeesManagersUnderstand how they contribute to business results
Understand what is expected from them
Understand to what extent they meet these expectations
Develop themselves
Deploy and realize business goals
Set clear objectives and evaluate performance
Develop people so they can add more value
17. Where to start?A performance minded leadership team
A competent HR organization and personnel
An effective infrastructure
A drive on communication and education
A clear set of value and value oriented culture with criteria