YOUR STEP-BY-STEP GUIDE TO THE PERFORMANCE MANAGEMENT PROCESS AT PIRAMAL PERFORMANCE PLANNING AND GOAL SETTING FOR FY18

Transcription

1 YOUR STEP-BY-STEP 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. 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 02 Table of Contents 03 The Performance Management Philosophy at Piramal 04 Key Principles of Performance Management at Piramal 04 Performance as a combination of Goal Achievement and 06 Behavior Introducing the Piramal Success Factors 07 Overview of the Performance Management Process 08 The Goal-Setting Process 09 How the Business Strategy is converted into Goals for the 09 Leadership Team Goal Cascade and Alignment 11 Creating Goals on the MyPiramal system 13 What Do Great Goals Look Like? 25 Goal Audit 29 Frequently Asked Questions 30 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 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 06

7 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. 07

8 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. At the beginning of the performance cycle, the focus is on identifying organizational goals and translating them into clear, measurable team and individual goals. Throughout the financial year, the focus is on ongoing progress review, feedback and coaching between the line manager and the employee. At the end of the performance cycle, there is a formal end year performance review process to evaluate progress against goals and behaviors, and to close the loop with clear feedback between the employee and the manager. 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 While there are two formal documented discussions at the Mid-Year and End- Year, to make sure that there is ongoing feedback and coaching through the year, you must take time out from your busy schedules to spend time with your manager, seek specific performance feedback and coaching to improve performance. This needs to be a year-round process. 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. 08

9 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. This entire process is now facilitated online through the MyPiramal system. 09

10 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 10

11 Goal Cascade and Alignment 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 align your goals not just with your manager s goals, but also with your peers / cross-functional colleagues to ensure that interdependencies and the need for collaboration is addressed. What is a Key Result Area (KRA)? Your key result areas (KRAs) are those things that you absolutely, positively must do to fulfill your responsibilities and achieve your business goals. There are seldom more than five to seven key result areas in any job or in any business. 11

12 There are several ways in which you can create your own goals on MyPiramal: 1. Add new goals for yourself 2. Review and edit goals assigned by your line manager (Any changes will go to your line manager for approval) 3. Add goals for yourself aligned to the organisation goals published by your CEO / Business Head 4. Align your goals to that of a peer / colleague who has shared his or her goal with you Please note that you will be able to share your goals with others after your manager has approved them on the system. You can share your goals with your peers and others and these goals will then be visible to them. They can then align their goals to yours if required to ensure collaboration. 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 12

13 Creating Goals on the 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. 13

14 3. Go to Navigator > About Me > 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. Creating your goals: 1. Receiving goals assigned or created by your line manager 2. Creating your own goals 3. Aligning your goals Receiving goals assigned or created by your line manager 1. After having frozen their own KRAs, your line manager can assign goals to you through the process depicted below. 14

15 Line Manager assigns goal to team member(s) as per above screenshot. 2. Following this, you will now receive notifications as shown below: 3. Upon receiving the notification, you now have the chance to edit these goals and then share back with your manager for final approval. 15

16 4. When you receive the assigned goals from your line manager (as in the sample screenshot below), you will need to update weightages of the KRAs as appropriate. Do remember that the sum of weightages of all your KRAs should be 100%. We will learn about how to update the other parameters in goal-setting when we go through the process of Adding a new goal in the next section. Creating Your Own Goals 1. 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 is for your additional utility. 16

17 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. 2. Fill in the Goal Details page: This page allows you to key in the various parameters of your goal. The key elements of this page include the following: 1. Goal plan: This is set automatically for the current financial year 2. Goal name: This is as pecific and concise statement of the goal, typically in one short phrase or sentence 3. Start date: This indicates the start date of the goal. The default date is 1st day of the financial year. 4. Target completion date: This indicates the planned end date of the goal. The default date here is the last day of the financial year. 5. Actual completion date: You will fill this up with the actual enddate when the goal has been completed or at year-end as the case may be. You also have the option of extending a goal into the next financial year as you commence the next performance cycle. 6. 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. 17

18 Level: This indicates whether the goal is a stretch goal (going beyond expectations) or target (meeting expectations) 8. Weight: This indicates the weightage of the goal ie. the relative importance of it vis-à-vis your other goals. The weightage is a percentage (%) number. When you click on it, you can also see weightages of your other KRAs (for comparison). You will need to make sure that the weightages of your goals add up to 100%. The system will not allow you to allocate more than 100% in weightages across goals. 9. Description: This is open text space for you to provide more information to your manager on the goal. 10. Completion percentage: This section helps you and your manager track the progress of your goal. This field is useful during the midyear discussions or any of your performance review discussions through the year. Choose from 0, 25, 50, 75, 100, as percentage options. 11. Status: This indicates the overall status of the goal. You may choose from Not Started, In Progress, Completed to show the goal status. This is also useful during a review discussion with your manager. 12. 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. 18

19 13. Source of the goal: This field is auto-filled based on the source of the goal- Manager shared goals, colleague shared goals, organisational goals. 14. Success Criteria: In this section, you can mention the key milestones, activities, timelines or measures that will help you and your manager assess goal achievement. 15. Comments: Here, you may mention anything else that could not be mentioned else where in this sheet

20 3. Fill in the Measurements page: This page helps you quantify or put specific success measures for your goal. It also helps you and your manager assess your 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. 20

21 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. 4. Fill in the Target Outcomes page: This sheet gives you an option to specify the expected result. This sheet is not mandatory, however you 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. 21

22 5. Fill in the Tasks page: This sheet helps you in listing down the tasks to be done to reach a specific goal. It helps you break down your goals further into specific tasks and activities. This is an optional tab. 6. After keying in the required details, you can click on Save and Close to save the KRA / goal. You can similarly fill in the details for each of your goals / KRAs. Remember to not have more than 5-7 KRAs / goals in total to make sure you have clear focus on the desired outcomes. 7. Once all your goals / KRAs have been created / aligned, you can submit the KRA sheet by clicking on the Submit for Approval button, and a notification will then be sent to your line Manager to approve your goals. 22

23 Your page will show as Pending Approval as below until your manager approves your goals. 8. On receiving a notification for approval of your goals / KRAs, your line manager accesses your goals, views, validates and approves them. 23

24 Aligning Your Goals As a best practice, all your goals should be aligned to your managers goals and flow from the same. 1. Click on the orange arrow on the right of the screen beside a goal you wish to align. 2. Click on Align from the drop down and choose the goals you wish to align your goal to you manager s goals, organisation goals or your peers goals that have been shared with you. 3. You may also share your goals with your peers to ensure that their goals are aligned to your goals. You may do so by selecting the Share option from the drop down. 24

25 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 25

26 Are your goals SMART? You can use the following checklist to assess if your goals fulfil the SMART criteria of specific, measurable, achievable, relevant, and timely. 1. Specific: What will the goal accomplish? How and why will it be accomplished? 2. Measurable: How will you measure whether or not the goal has been reached (list at least two indicators)? 3. Achievable: Is it possible? Have others done it successfully? Do you have the necessary knowledge, skills, abilities, and resources to accomplish the goal? Is it a stretch goal that challenges you to your full potential but is not impossible to achieve? 4. Relevant: What is the reason, purpose, or benefit of accomplishing the goal? What is the result (NOT activities leading up to the result) of the goal? 5. Time-bound: What is the established completion date and does that completion date create a practical sense of urgency? 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 manager; 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 your manager and you. Your goals must help you 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. 26

27 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. 27

28 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. 28

29 Goal Audit Following the goal-setting process at 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 a random 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. 29

30 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 30

31 2. How can I view goals shared by a colleague? You can view goals of a colleague reporting to the same manager as long as they have NOT checked the Private box while preparing their goals and they have chosen to share their goals with you. In case the Private box is checked, then the goal become private and is not visible or shared. 3. As a new joinee, by when do I need to set my goals? It is expected that your manager helps you complete your goal setting process within a month of your joining. Even in case you are not eligible for performance appraisal on the online system, you must still have your goals created, so that there is clarity of expectations. 4. Do I have to fill KRAs under each category of the Balanced Scorecard? It is recommended that you look at goals for yourself across all four categories to make sure that you have a holistic view of your performance for the year. However, in some cases (especially at Band 1 / 2 levels), you may find that the bulk of your KRAs are concentrated around Customer and Internal Process perspectives, if your job does not have clear Financial impact. If you are at Bands 1 / 2, you need not necessarily have financial KRAs such as EBITDA. Instead, you may have other KRAs such as sales, cost reduction, productivity, managing raw materials within X cost, meeting budgets etc. which are more relevant to your role and responsibilities. It is strongly recommended that even if you are an individual contributor, you must set Learning and Growth / People Goals for yourself around developing yourself, gaining new skills etc. 5. 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. 31

32 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. 6. Who is responsible for my performance evaluation and feedback through the year? You will benefit from taking full ownership for your performance management process including soliciting time from your manager to seek constructive developmental feedback. The mid-year and end-year reviews are provided as formal windows for performance conversations with your manager. However, your performance dialogue with your manager must be year-round make sure you seek time from your manager for this. Additionally, you are strongly urged to seek informal feedback often from people who work closely with you, including your peers, cross-functional stakeholders, customers etc. 32

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