PEOPLE MANAGERS' GUIDE TO THE PERFORMANCE MANAGEMENT PROCESS AT PIRAMAL PERFORMANCE PLANNING AND GOAL SETTING FOR FY18

Transcription

1 PEOPLE MANAGERS' GUIDE TO THE PERFORMANCE MANAGEMENT PROCESS AT PIRAMAL PERFORMANCE PLANNING AND GOAL SETTING FOR FY18

2 PREFACE Dear Colleagues, In line with our 2020 Vision, we aim to deliver exponential growth that will help us live our purpose of Doing Well and Doing Good. To create a high performance organization at Piramal, we need to nurture an environment where every individual works like an entrepreneur, teams collaborate seamlessly across boundaries and there is alignment at every level towards a common Purpose and Vision. This is the objective of the performance management process at Piramal. To achieve our fullest potential, ongoing feedback and development is critical. Our performance management process delivers this by using the framework of the Piramal Success Factors to help us channelize our everyday behaviors effectively. We also believe that performance management is not just about the formal review conversations, it is also about the year-round feedback and coaching that managers offer employees. Each of us as people leaders therefore has a critical responsibility to share candid, constructive feedback and make time for coaching conversations with our team members throughout the year. As we expand across businesses and geographies, we have now introduced a world-class technology backbone for the performance management process through MyPiramal, powered by the Oracle Fusion platform. This allows you to set your goals online, share it with your peers and colleagues, align your goals to organizational and departmental goals and also track progress against them through the year. I am confident that through this new technology enabled process, we will together shape a high performance culture at Piramal. Warm Regards, Vikram Bector Chief Human Resources Officer, Piramal Group 02

3 TABLE OF CONTENTS Preface 2 Table of Contents 3 The Performance Management Philosophy at Piramal 4 Key Principles of Performance Management at Piramal 4 Your Role as a People Manager in Managing Performance 6 Performance as a combination of Goal Achievement and Behavior 7 Introducing the Piramal Success Factors 8 Overview of the Performance Management Process 10 The Goal-Setting Process 13 How the Business Strategy is converted into Goals for the Leadership Team 14 Cascading Goals to your Team 15 Cascading Goals on MyPiramal system 17 What Do Great Goals Look Like? 29 Creating Bandhan Goals 36 Goal Audit 36 Frequently Asked Questions 37 03

4 THE PERFORMANCE MANAGEMENT PHILOSOPHY AT PIRAMAL Key Principles of Performance Management at Piramal Performance management at Piramal is an ongoing, systematic process by which the overall performance of the organization is improved by improving the performance of every individual employee, in alignment with the organizational goals. This is done in stages starting from identifying organizational goals, translating these into team and individual goals, setting up clear targets and measures to achieve these goals, course correction during the year if required, continuous feedback and coaching throughout the year, and then concluding at the end of the year by understanding how one performed in discussion with the line manager. 04

5 Through the process, our approach is to create a high performance culture in Piramal through: 1) Alignment of goals across levels to the Piramal 2020 Vision: This implies all our goals should be contributing to the organizational goals, and we use a strong goal cascading process to ensure alignment of individual and team goals to the larger organizational goals. Piramal Group: Our Purpose and 2020 Vision Doing Well and Doing Good Making a positive difference, serving people and living our values Achieving a market capitalization of US$20bn by ) Focus on individual growth and development: The performance management process serves as a powerful tool for an individual s growth and development. This can be achieved by ensuring that one does not see this process as an assessment of any sort but instead leveraging its facets such as feedback and coaching throughout the year. 3) Differentiated rewards for high performance: It is our aim to identify and motivate our high performers and reward them in a clearly differentiated manner. Through the process, we also aim to offer clear performance feedback and support to our colleagues who may not be able to perform at their fullest potential. Through a strong and well-implemented performance management process, we aim to build a high performance, merit-oriented work culture, which demonstrates our commitment to our values of Knowledge, Action, and Care. 05

6 Your Role as a People Manager in Managing Performance Performance management at Piramal is not just a once-a-year evaluation. Good performance management is a continuous, positive collaboration between you and your team members all year round. Most employees want to be successful contributors. They want to know what is expected of them and how they can most effectively achieve those expectations. As a people manager at Piramal, it is your job to: Clearly communicate expectations Provide employees with the tools, training, and information they need to succeed Offer regular, timely, and constructive feedback Be reasonable and fair when evaluating performance Recognize successes and achievements often Address performance issues in a proactive and timely manner in order to resolve them before they become significant Good performance management doesn t just help the employee. It can make your job a lot easier and help you build a high-functioning, productive team. Other benefits of effective performance management include: 06 Motivated and engaged employees Increased retention of good employees Higher productivity, lesser errors, greater customer satisfaction Reduced costs related to recruiting and training new employees Less time dealing with corrective action issues Building the Piramal Group s ( as well as your own team s) reputation as a great place to work

7 Performance as a Combination of Goal Achievement and Behavior At Piramal, we believe that outcomes achieved through undesired behaviours are not real performance. With our purpose of Doing Well & Doing Good in mind, performance in Piramal is based on not only the results (based on your Key Result Areas KRAs / goals) but also the behaviours you display every day at work (based on the Piramal Success Factors - PSFs). Performance at Piramal Results ie. KRAs / goal achievement Behaviors ie. Piramal Success Factors The X Axis: Focuses on the Goal / KRA aspect of performance in alignment to Balanced Scorecard methodology Eg. Performance measures such as EBIDTA, OTIF, Yield Improvement and Employee Engagement The Y Axis: Focuses on the Behavior aspect of performance in alignment to the Piramal Success Factors Uses behavioral evidence through critical incidents Involves stakeholders across functions 07

8 Introducing the Piramal Success Factors Thinks Big Serves Customer Commits and Delivery Focuses on the long term Translates vision into actionable plan Welcomes new ideas Leads change Results Identifies customer needs Delivers on customer expectations every time Finds new ways to add value to customers Builds trusted partnerships with customers Identifies and acts on opportunities Sets high standards for self and team Persists despite setbacks Takes ownership for business and quality goals Display Humility Collaborates Empowers and Develops Is humble Is open and transparent Treats others with respect Values diversity Works cooperatively with others Prioritizes team goals Builds relationships across boundaries Creates consensus Shares and accepts feedback Builds own and team s capability Creates a learning environment Encourages others to take on larger roles What is the Piramal Success Factors (PSF) Framework? The Piramal Success Factors (PSF) is a framework of high performance behaviors aligned to our 2020 Vision. They build on our values of Knowledge, Action and Care, and convert them into a set of everyday behaviors that will drive high performance as described below. All employees are expected to embed the Piramal Success Factors in their daily work and demonstrate proficiency levels in line with their bands. Examples of situations where you have demonstrated behaviour in line with the Piramal Success Factors are presented by your manager in the TopX discussions alongside inputs from other managers and stakeholders. This is used to identify your key strengths and areas of development. For more information on the PSF behaviors appropriate to your band or level, please refer to the booklet on the Piramal Success Factors. 08

9 ** As a people manager, it may be useful for you to record instances of exemplary behaviour on the Piramal Success Factors for each of your team members through the year. This is very handy when you have your coaching conversations with your team members and will also make sure you have all the relevant examples consolidated in one place, well in time for the formal TopX discussions. 09

10 Overview of the Performance Management Process The performance management process has three distinct steps at Piramal and the annual cycle is from April to March, coinciding with the financial year. The three steps are: 1. Planning Performance Performance Planning and KRA Setting 2. Managing Performance Ongoing Progress Review, Feedback and Coaching 3. Assessing Performance End Year Performance Review Planning Performance Performance Planning and Goal Setting The first step of the performance management process is to define the performance expectations from employees in alignment with organizational goals. Planning of performance is enabled through the Goals module on Oracle Fusion and consists of the following steps: Develop organizational goals (Business Unit scorecard mapped to the CEO / Business Head) Cascade organizational goals to departmental level Set individual goals Managing Performance Ongoing Progress Review, Feedback and Coaching This is an ongoing activity throughout the performance cycle and involves managing employee performance throughout the year. The focus here is on the manager providing specific, constructive feedback through the year and also offering coaching to the employee on his / her performance and developmental goals. This should also be a two-way dialogue where the employee voices his / her views, identifies obstacles, shares feedback and asks for support from the manager. There is a Mid-Year Review as well, which is a formal checkpoint for the manager to look at progress against goals and offer suggestions for course-correction. A mid-year TopX forum is also recommended to be conducted to take feedback from stakeholders, focusing on the employee s development needs. 10

11 Assessing Performance End Year Performance Review This is the final stage where the employees performance for the year is assessed and formal feedback is provided. Performance on goals is assessed through the End Year Performance Review. There is also an End Year TopX forum conducted to make sure that the employee s performance on the Piramal Success Factors is also considered through stakeholder feedback. Based on goal / KRA achievement as well as behaviors exhibited against the Piramal Success factors, performance ratings are arrived at. At the beginning of Performance Cycle During the Performance Period At the end of Performance Period Performance Planning and KRA Setting On Going Progress Review, Feedback and Coaching Mid Year Review End Year Performance Review Common Denominators in all these three stages Results ie. KRAs / goal achievement Behaviors ie. Piramal Success Factors Performance can be defined as a combination of: Results (The outcomes! goals achieved by the employee as measured by KRAs) Behaviors (The approach, behaviors and values demonstrated during the process of achieving KRA5) Will be measured through the Piramal Success Factors, a framework of high performonce behaviors aligned to our 2020 Vision 11

12 Note: While there are two formal documented discussions at the Mid-Year and End-Year, as a people manager, you have a very important role in offering specific performance feedback and coaching to improve the performance of your team members. This needs to be a year-round process. It is strongly recommended that you conduct at least quarterly performance check-ins with each of your team members, over and above informal feedback sessions through the year. In line with feedback received from employees in Bandhan as well in our various people connect forums / town halls, from FY 2018, we will be moving to an online performance management system that is far more streamlined and transparent on the MyPiramal system supported by Oracle Fusion. As a people manager, this offers you a system to track performance of your team members through the year it also stores performance records of all your team members in one place. It also has many additional functionalities including the ability to solicit feedback from stakeholders for each of your team members online at the end of the performance cycle. 12

13 THE GOAL-SETTING PROCESS At Piramal, we first align on organizational goals at the Group and Business level, and this then gets cascaded across levels. The end result is that employees create goals that are linked to the overall organizational objectives; this also encourages a more transparent line of sight. Employees have a greater visibility on how they are contributing to the Piramal Group s and their business / function s success. Goal setting needs to be settled by the start of the financial year, or in case of new joinees within a month of their joining. As a people manager, you have the accountability for ensuring that all your team members including new joinees have clarity on their goals, and also understand how their goals contribute to your (their manager s) goals, to the team goals, departmental goals and organizational goals. This entire process is now facilitated online through the MyPiramal system. 13

14 How the Business Strategy is converted into Goals for the Leadership Team In the month of January, preliminary budgets are circulated for the next financial year and based on the business strategy for next year the organisation / business goals are decided. Final KRAs and budgets for each business are presented to the Chairman for final approval. After approval, the Business Head/ CEO puts in the organisational goals online as shown below. You will receive a notification on MyPiramal when your business head CEO publishes his / her goals online to the entire organization. Sample Online Screenshot of Business Head creating organizational goals 14

15 Cascading Goals to your Team After the Business Head publishes the organizational goals for the entire organization, there is a cascade process of the organizational goals to the Excom / direct reports of the Business Head. Further, the Excom shares their KRAs with their teams, who prepare their KRAs in alignment with their manager and the business objectives. In this manner, the cascade of organizational goals happens till the last mile, and at every level, goals are aligned to the level above. This process is completed by 31st March to make sure that everyone is clear on their goals for the new financial year. It is strongly recommended that you encourage your team members to align their goals not just with your (the manager s) goals, but also with their own peers / cross-functional colleagues to ensure that interdependencies and the need for collaboration is addressed. 15

16 What is a Goal / Key Result Area (KRA)? Key result areas (KRAs) are those things that you expect your team members to absolutely, positively do to fulfill their responsibilities and achieve team, departmental and business goals. There are seldom more than five to seven key result areas in any job or in any business. It is a good idea to challenge yourself to make sure you are able to identify 5-7 key result areas for each of your team members as well as for yourself. This makes sure there is clarity and focus of what is expected for your team members and you. It also ensures you are prioritizing deliverables for your team. How Goal Cascade Works: An Example Level Business Goal Division Goal Department Goal Team Goal Individual Goal Cascaded Goals Double revenues from $100 Mn to $ 200 Mn in this financial year Increase sales of Product1 by 100% Recommend two new markets for Product 1 with $50 Mn in potential by the end of Q1 Conduct comprehensive market research into potential new markets for Product 1 by March 1 Complete thorough competitive intelligence studies of suggested Product 1 markets by February 1 16

17 Cascading Goals on MyPiramal system Logging into the Goals module of the MyPiramal System 1. Login to MyPiramal using the below link or scan the QR code for accessing the link. Link: 2. Use your single sign-on credentials to log onto the MyPiramal portal. 17

18 3. Go to Navigator >My Team> Goals to access the Goals module 4. The Goal Plan will be pre-set for the relevant Financial Year, eg. KRA Goal Plan FY Also you may access the previous years goal plans (in future years once we have completed multiple cycles of the performance management process) by clicking on the arrow beside the current goal plan name. 18

19 Creating, aligning and approving your teams goals: 1. Creating goals for your team member 2. Assigning a goal to your team member 3. Approving your team members goals Creating goals for your team member 1. Click on add goals. 2. Select the employee that you want to add the goal for. Also do remember to check the Allow employees to update key attributes in case you want to allow the employee to change certain attributes such as weight measurement etc for the goal created by you. 19

20 Also note you may choose to add this goal for all your reports (direct and indirect), for your direct reports only as well as for your dotted line reporting by selecting from the drop down above. 3. Each goal has four key sections on the MyPiramal System: Goal Details, Measurements, Target Outcomes and Tasks. The Target Outcomes and Tasks sections are optional and are for your additional utility. On the left hand side of the above screen, you may notice four sections (in red box); let us go through them one by one. 3. Fill in the Goal Details page: This page allows you to key in the various parameters of the goal. The key elements of this page include the following: 1. Goal name: This is a specific and concise statement of the goal, typically in one short phrase or sentence 2. Start date: This indicates the start date of the goal. The default date is 1st day of the financial year. 3. Target completion date: This indicates the planned end date of the goal. The default date here is the last day of the financial year. 20

21 4. Actual completion date: This is filled with the actual end-date when the goal has been completed or at year-end as the case may be. 5. Category: You may choose an appropriate one from the 4 quadrants of our Balanced Scorecard Financial/ Profitable Growth, Customer (Internal and External), Internal Resources, Learning and Growth/ People 6. Level: This indicates whether the goal is a stretch goal (going beyond expectations) or target (meeting expectations) Description: This is open text space for you to provide more information on the goal. 8. Completion percentage: This section helps to track the progress of your goal. This field is useful during the mid-year discussions or any of your performance review discussions through the year. Choose from 0, 25, 50, 75, 100, as percentage options. 21

22 22 9. Status: This indicates the overall status of the goal. You may choose from Not Started, In Progress, Completed to show the goal status. 10. Priority: This optional field allows you to choose how important this goal is for you and your organisation, by choosing from options - High, Medium, Low, Neutral. 11. Source of the goal: This field is auto-filled based on the source of the goal- Manager shared goals, colleague shared goals, organisational goals. 12. Success Criteria: In this section, you can mention the key milestones, activities, timelines or measures that will help to assess goal achievement. 13. Comments: Here, you may mention anything else that could not be mentioned elsewhere in this sheet.

23 4. Fill in the Measurements page: This page helps you quantify or put specific success measures for the goal. It also helps the you and your team member assess his/ her performance against the goal in an objective manner. The key elements of this page include the following: 1. Name: This is the only mandatory field in this section. Here you can name the measure or metric you would like to use for the goal. This measure helps you evaluate progress against your goal. 2. Unit of measure: Here, you can choose from one of the four options for unit of measure: None, Currency, Number, and Percent. For qualitative measures you many use the None option. 3. Start Date: This is the start date of the measure. It is generally the same as the start date of the goal. You only need to modify this in case the KRA measure has a delayed start. 4. Target Value: Put in the value of the Target as per the unit of measure. 5. Comments: Any comments for clarification or additional notes may be keyed in this section. 6. Target type: Choose between options - Maximum and Minimum, to define the target value further. This indicates whether this is an upward or a downward measure. 23

24 7. End date: This is the end date of the measure, in case it is not the end of the financial year. 8. Actual value: This is the actual achievement against the target set. You can mention this during the mid-year or end-year evaluation process. Click on Save and Close. A confirmatory pop-up confirms the addition of the measurement. 5. Fill in the Target Outcomes page: This sheet gives you an option to specify the expected result. This sheet is not mandatory; however the employee may fill it up if it helps to improve the quality of the KRA and expected outcome. This sheet is useful for defining developmental goals further through licenses and certifications, competencies, language. Remember, this is also an optional tab. 24

25 6. Fill in the Tasks page: This sheet helps an employee in listing down the tasks to be done to reach a specific goal. It helps you break down your team members goals further into specific tasks and activities. This is an optional tab. 7. After keying in the required details, you can click on Save and Close to save the KRA / goal and the goal would be assigned to your team member and would be visible in his notification tab. 25

26 Assigning a goal to your team member 1. Go to Navigator > About Me > Goals to access the Goals module 2. Click on Orange Arrow and then the Assign button in the dropdown 3. Select the employee that you want to assign the goal to. Also do remember to check the Allow employees to update key attributes in case you want to allow the employee to change certain attributes such as weight measurement etc for the goal assigned by you. 26

27 Also note you may choose to assign this goal to all your reports (direct and indirect), to your direct reports only as well as to your dotted line reporting by selecting from the dropdown above. 4. After selecting the team members, you can click on Next to assign the KRA / goal. 27

28 Approving your team members goals 1. Navigate to Navigator > My Team > Goals 2. Validate the KRAs of your team members based in the principles mentioned below in the section What Do Great Goals Look Like? 3. Click on Approve or Reject for each goal or all goals together for a tem member. Then click on submit to communicate back to your team member 28

29 What Do Great Goals Look Like? An effective and consistent approach to goal setting includes four facets: 1. Goals should be, at a minimum, SMART On the journey toward achieving great business results, well-written goals are the fuel that drives performance. SMART is an acronym that stands for specific, measurable, achievable, relevant, and time-bound. Specific The goal clearly defines the outcomes to be delivered and clarifies any interpretation as agreed upon by you and your manager in advance Measurable The achievement of the goal can be objectively assessed according to a predetermined measurement Attainable Relevant Time-Based You have the resources, time and access to people, data etc. to allow you to achievable the goal. At the same time, the goal is not too easy to attain-it stretches and challenges you The goal addresses work and results that clearly align with the overall Piramal Group vision, as well as the vision of your business unit, department or division The goal clearly specifies a target date or deadline 29

30 SMART Element Specific-Goals are clearly defined Measurable- Clear Measures to track and assess employee performance Achievable- Goals are consistently challenging, yet within reach Relevant- Goals drive desired business results Time-Bound- Goals have clear dates or completion Questions to ask yourself as you freeze goals for your team member Is each goal clearly defined and results-oriented? Can you identify what the goal will accomplish? What are the specific measures within your team member s goals that you will use to assess performance? Can you identify both qualitative and quantitative measures within your team member s goals? Are the measures identified controllable by the team member ie. within their influence? Does each goal provide the opportunity for your team member to be successful in accomplishing the goal? Does achieving the goal depend on someone else? If so, has this dependency been discussed with all parties? Do team members with similar levels of job responsibility have comparably challenging goals? Is the level of complexity appropriate for your team member s level? Does the goal stretch and challenge them, while not being an impossible goal to achieve? Which one of the departmental or business goals does each of your team member s goals align to? All goals should align to a departmental or business goal. Does the goal have specific start and end dates? Are there other competing demands that would prohibit a goal from being completed on time? Do other team members with similar goals have similar time-frames to complete the goal? Your Response Checklist for assessing SMARTness of your team member s goals 30

31 2. Goals should be manageable in number Five to seven meaningful stretch goals are sufficient to challenge you and keep you engaged in your contribution to the business. Adding more goals is likely to have a negative impact on productivity and derail progress toward achieving any of them. 3. Goals should address all aspects of performance, not just financial Each year, the goal-setting process establishes a new contract between you and your team member; both should be equally invested in achieving the desired results. Well-written, regularly monitored goals provide the framework for accountability and the basis for productive performance conversations between you and your team member. Make sure your team member s goals strike the right balance between financial parameters, process parameters, customer related parameters and learning related parameters. With this spirit in mind, at Piramal, we use the Balanced Scorecard approach to performance management. 31

32 What is the Balanced Scorecard Approach to Performance? What you measure is what you get. The competitive environment today demands us to focus not just on financial performance, but also on continuous improvement, learning and deep customer-centricity. In line with this, at Piramal, we use the Balanced Scorecard approach to performance management to make sure each of us take a holistic view of our individual, team and organizational performance. The goals we set at the beginning of the year look at four dimensions: 1. Financial / Profitable growth How do we look to our shareholders? 2. Customer(Internal and external) How do customers see us? 3. Internal Process - What must we excel at? 4. Learning and growth / People Can we continue to improve and create greater value? Each goal is mapped to one of these four dimensions and together, they make sure we take a more integrated, long term view of performance. 32

33 4. Goals should have weightages that are neither too little, nor too much At work, we have many priorities and deliverables. How do these goals compare against each other? Which one is most important and which are others which may not be the most important but are still necessary to be achieved? We calibrate this by giving weightages to each goal helping us assess its relative importance with respect to our other goals. At Piramal, we believe that a goal / KRA should have between 5-30% weightage to be effective. It s a good idea to have your KRAs (hand-written or printed) put up in a place where you can view them anytime e.g., on the softboard at your work desk, on your computer s desktop, as your mobile wallpaper etc. so that you can focus on those items through your work day. 33

34 Practical Tips while setting goals for your team Designing and agreeing on goals should be a joint effort between you and the team member. Allow the team member a voice in their own performance management. Encourage them to advocate for their own professional growth. Here are some helpful tips while you go through the goal setting process for your team: Set goals with not for the team member. Employees who help set their own goals are more motivated to achieve them. Use the SMART formula for setting goals: Specific, Measurable, Achievable, Relevant, Time-bound. Tie individual goals to departmental goals. Doing so helps your team member see the importance of their own work and increases their job satisfaction. Assess the team member s competencies on the Piramal Success Factors. What are his / her strengths and areas of development? Does he / she need to develop any skills or knowledge to successfully perform their job? Consider the team member s long-term professional goals and aspirations. Do this year s goals help the team member reach their long-term goals? 34

35 Creating Bandhan Goals Post the annual employee engagement survey, all people managers are strongly urged to include a Learning & Growth / People goal on improving employee engagement within their teams. This ensures that there is adequate focus on people development and team management by all managers. As a best practice, all managers are requested to create a goal on Bandhan Bandhan: Employee Engagement in your Learning / People & Growth section of the Balanced Scorecard. The goal could be linked to the focus areas for improving employee engagement within your team you can use your Bandhan scorecard as an input to identify the one or two key areas for your team eg. Recognition for team, Regular feedback and coaching for team members, team member development etc. The goals should have a detailed action plan associated with it with 3-4 tasks Action plan for improving on the identified key areas is to be created in discussion with their team members It is recommended that you transparently share the Bandhan goal with the complete team. This help drive collective ownership for improving team engagement. You may add various Bandhan tasks related to this goal through the Tasks tab Each task under the Bandhan goal can have a start date and an end date 35

36 Goal Audit Following the goal-setting processat Piramal, goals / KRAS are audited for quality using SMART principles by your Business HR lead. All KRAs at a Business leadership level (n & n-1) along with arandom sample set of KRAs across bands are audited in depth, to ensure aligned-to-business, SMART KRAs, and usage of Balanced Scorecard (BSC) template in the goal-setting process by all employees Going forward the mid-year review and end-year review will also be done through the system wherein you will be able to update your progress in these goals through the system. 36

37 FREQUENTLY ASKED QUESTIONS 1. What are the approximate timelines for the Goal-Setting Process? Stage Finalization of the Preliminary Financial and People Budgets of Businesses Training / Onboarding sessions on effective performance planning and KRA setting using the new Oracle Fusion platform (e-pms) Business heads will meet with his/her direct reportees and chalk out the preliminary KRAs. The preliminary KRAs need to be sent to respective business HR and finance controller The Group CFO and Corporate Finance will have meetings with business heads to finalise the budgets The Finance Controller to incorporate the changes agreed during these meetings Meeting with the Chairman and Group CFO by Business Heads to finalize budgets and KRAs Business heads to meet his/ her direct reportees and update the changes in budgets/ KRAs Cascading of the KRAs across the business KRA Audit of each business and feedback where required Timeline By 20th Jan'17 Between 20th Jan to 28th Feb'17 By 7th Feb'17 By 13th Feb '17 By 17th Feb '17 By 22nd Feb '17 By 28th Feb '17 By 31st Mar '17 By 31st May 17 37

38 2. When do I need to set goals for new joinees in my team? It is expected that you complete the goal setting process for any new joinee in your team within a month of their joining. Even in case the team member is not eligible for performance appraisal on the online system, you must still make sure their goals are created, so that there is clarity of expectations. 3. Do my team members need to necessarily fill KRAs under each category of the Balanced Scorecard? It is recommended that you look at goals for your team across all four categories to make sure that you have a holistic view of their performance for the year. However, in some cases (especially at Band 1 / 2 levels), you may find that the bulk of your team member s KRAs are concentrated around Customer and Internal Process perspectives, if their job does not have clear Financial impact. If a team member is at Bands 1 / 2, you need not necessarily create financial KRAs such as EBITDA for them. Instead, they may have other KRAs such as sales, cost reduction, productivity, managing raw materials within X cost, meeting budgets etc. which are more relevant to their role and responsibilities. It is strongly recommended that even for team members who are individual contributors, you must set Learning and Growth / People goals around developing oneself, gaining new skills etc. This makes sure that your team members focus equally on performance and self-development. 4. Why are the goals / KRAs set by March-end while the appraisals are finalized in June? Goals / KRAs are set for the next financial year while the performance appraisal is done for the year gone by. Since the new financial year starts from April, hence it is important for all the employees to have their goals / KRAs set for the year before that. Financial performance of the organization for the year under review, is an important aspect of the appraisal process and subsequent outcomes. Since the financials are approved by the Board members only by May of the next financial year, and subsequently performance decisions are taken based on it, the process can only be completed by June of the new financial year. 38

39 5. How often should I review performance and offer feedback to my team members? As often as you can, through the year.the mid-year and end-year reviews are only provided as formal windows for performance conversations between the team member and manager. However, your performance dialogue with your team member must be year-round make sure you set aside time for this. It is strongly recommended that you plan for at least quarterly check-ins with each of your team members to review performance and offer clear, specific feedback. Apart from this, an ongoing focus on providing both positive and developmental feedback, as well as offering coaching support, will help you make sure your team members are fully engaged at work. 39

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