Introduction Page 2 Objectives Setting Guidelines Pages 3-5 Performance Assessment Guidelines Pages 6-7
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1 Introduction Page 2 Objectives Setting Guidelines Pages 3-5 Performance Assessment Guidelines Pages 6-7
2 Introduction The goal of performance management is two-fold: 1. Link individual performance to company strategies and initiatives in order to drive company-wide performance. 2. Maximize each employee s individual contributions help them unlock their potential and increase their commitment to their own success and to the success of Technicolor. In order to foster a performance culture, employees must feel connected to their work and to the organization overall. Managers need to take an active role in creating and maintaining these connections as they are often more important to improving performance than traditional financial and non-financial incentives. To that objective, ensuring that employees are aware of what they are expected to achieve and ensuring they have the ability, means and skills to achieve what is expected from them is vital. The STEP tool ensures that every employee is well aware of the fundamental information and objectives and have factual and documented assessment of their performance, development and evolution plans on a yearly basis. However, objective setting, development plans and performance assessment meetings are just milestones of the yearly business process. Throughout the year and on an ongoing basis, managers must engage with employees to provide feedback and coaching for their teams to enhance employee performance and keep highly motivated teams. 2
3 Objectives Setting Guidelines (1/3) OVERVIEW Setting clear objectives is key to the process. Managers and their teams members discuss and agree on what is expected for the coming year, in line with division / function objectives. Setting development plans inline with objective setting is critical to ensure that employees have the skills needed and increase their commitment to their own success and to the success of Technicolor. PREPARATION Heads of Division and Corporate Functions determine the objectives and priorities for their organization aligned with the Global Strategy of Technicolor (Drive 2020) Managers develop according to the Global Strategy the objectives that are necessary for their teams to contribute to the division priorities and objectives and cascade to team members. Team members, through their own objective setting, define how they will contribute to the results of the team and of the organization as well as objectives related to projects /areas / prioritized initiatives they would like to pursue during the year AT THIS STAGE TEAM MEMBERS MUST: START THE STEP PROCESS AND ENTER THEIR PROPOSED OBJECTIVES IN THE TOOL SEND THEIR PROPOSAL TO THE MANAGER ARRANGE AN OBJECTIVE SETTING MEETING WITH THE MANAGER 3
4 Objectives Setting Guidelines (2/3) THE OBJECTIVE SETTING MEETING The OBJECTIVE SETTING MEETING plays a key role in shaping the responsibilities of each employee during the year and what results are expected. The output of the meeting will determine where the employee will be concentrating his/her efforts and what he/she is expected to achieve. During the objective setting meeting managers and team members must share their priorities, perspectives and interests and agree on a defined set of objectives that make sense for both the employee and the organization. Division objectives Manager Objectives Personal Objectives Manager and team members should also discuss all other aspects of the STEP process related to individual development plans and career aspirations. PART 1 : COMPLETE EMPLOYEE & JOB RELATED INFORMATION Check Employee data. Complete as needed the Primary Job Purpose and key responsibilities of your current position OBJECTIVES SETTING MEETING Annual Objectives PART 2 : SET OBJECTIVES FOR THE COMING YEAR - KEY GUIDING PRINCIPLES Consider how your job function aligns with the greater Global Strategy and other corporate initiatives, and reflect that in your personal objectives. Set a minimum of 3 and a maximum of 6 performance objectives. A Performance Objective has 3 parts : description, measurement criteria and weight The minimum weight for a performance objective is 10% The sum of the weight of all the objectives must be 100% Setting one Behavioral Objective is mandatory for all employees For Managers and Supervisors : Setting one People Management Objective aligned to Technicolor s values is mandatory Members of the Operational Excellence projects groups have one mandatory performance objective based on the project. This objective is set and communicated by the project group sponsors. One of the performance objectives can be based on the division/corporate function priorities and guidelines for next year expressed by the EXCom member in charge of the division/function. In that case, this objective represents 10% of the STEP. 4
5 Objectives Setting Guidelines (3/3) PART 3 : IDENTIFICATION OF DEVELOPMENT NEEDS and TRAINING Employee and manager agree on the skills needing development based on Technicolor s published list located in STEPOnline in the areas of Management & leadership, personal efficiency and business acumen. Employee and manager quantify and prioritize level of development and agree on action plan (including training) that could help the employee to progress in his/hers personal development. At the end of the year, employee and manager discuss outcome of plans put in place and associated training feed-back (if applicable). PART 4 : EMPLOYEE PERSONAL ASPIRATIONS Employee and manager are also encouraged to have a discussion on what the employee s aspirations are. This could include any suggestions on their short or mid-term evolution or development : Mobility, projects or initiatives the employee would like to work on, questions and answers on the organization and the team, etc. AT THE END OF THE MEETING, team member must : Understand the objectives and what is expected of him/her during the year. Ensure there is total clarity to avoid manager and team member to have different interpretations of the objectives and of the role of the employee in the company. Be willing to undertake the objectives. Ensure that the team member agrees and accepts the challenge that is given to him/her and feels accountable to deliver on the results. Be able to achieve the objectives. Ensure that the team member has the means, tools and competencies to reach the objectives set. AT THIS STAGE : OBJECTIVES AGREED DURING THE MEETING MUST BE ENTERED IN THE STEP TOOL BY THE TEAM MEMBER AND VALIDATED BY THE MANAGER CHANGE OF OBJECTIVES AND AMENDMENTS REMAIN POSSIBLE THROUGHOUT THE YEAR, HOWEVER A NEW OBJECTIVE SETTING MEETING MUST BE ARRANGED TO DISCUSS AND VALIDADE THESE CHANGES 5
6 PREPARATION Performance Assessment Guidelines (1/2) Performance assessment must be factual and based on the performance criteria pre-defined at the objective setting stage. Team members must enter in STEP facts and comments that will support the assessment of the performance. Managers must prepare the assessment of each objective and gather facts and comments that will support the discussion. THE OBJECTIVES ASSESSMENT MEETING During the OBJECTIVES ASSESSMENT MEETING the manager and the team member must discuss and compare their views and the facts each one brings to the assessment. When a result is below expectations, the manager must make every effort to isolate the issue and ensure that steps are in place for those difficulties to overcome in the following year. After the meeting, the manager enters the assessment for each objective in STEP. The results are discussed with N+2 of the employee and/or with the head of the Division. After his/her approval, the manager sends the STEP to the team member for signature. An objective can be assessed as: Outstanding Exceeded Met When Results are amazingly higher than pre-defined measurement criteria; employee rises well above other strong performing peers in demonstrating a high level of initiative and creativity. Results surpass all pre-defined measurement criteria despite obstacles encountered. All the measurement criteria were satisfied at minimum at the pre-defined level. Global Performance Level for the Year Outstanding Exceeded Expectations Meets Expectations Needs Improvement Unacceptable The Global Performance level feeds all internal process where performance level needs to be taken into account (Talent Review, Variable Compensation, etc) Partially Met Not Met Not all the measurement criteria reached at the pre-defined level. Performance unacceptable by any reasonable measure. None or very few of the measurement criteria reached. The STEP tool uses the assessment of each objective to determine a global performance level for the year* * Calculation details available on my.technicolor 6
7 Performance Assessment Guidelines (2/2) PREPARATION MEETING AGENDA FINALIZATION Manager Review the objectives of each direct report, make notes of any relevant facts and thoughts you would like to bring to the assessment meeting. Beyond the objectives, prepare a general feedback to you direct report pointing out how he/she has evolved during the past year. Team Member Enter in STEP: Comments about their performance for each objective Feedback on training and development actions undertaken during the year Career aspirations and overall comments regarding the past year Send STEP to Manager 1. Discuss the past year: What were the main events of last year? What were the positives and negatives about last year? What were the most important achievements of last year (for Technicolor, for the Division, for the team, for the employee) 2. Discuss the status of each objective: Review the objective and the measurement criteria Employee to comment on each objective: Difficulties encountered to reach the objective. Efforts provided. Unexpected events/ issues/situations. How employee dealt with the situation and solve the problem? Does employee estimate that the objective was under achieved/achieved/over achieved? And why? Manager to comment and provide his/her perspective on employee s comments and self-assessment. 3. Define the most appropriate assessment for each objective: Outstanding: results amazingly higher than pre-defined measurement criteria, employee rising well above other strong performing peers in demonstrating a high level of initiative and creativity. Exceeded: results surpass all pre-defined measurement criteria despite obstacles encountered. Met: all the measurement criteria were satisfied at least at the predefined level. Partially Met: not all the measurement criteria reached at the pre-defined level. Not Met: performance unacceptable by any reasonable measure, none or very few of the measurement criteria reached. 4. Development actions: Take the time to discuss outcome of development action plans and any relevant training that occurred during the past year. Discuss efficiency and impact with manager. 5. Close the meeting: Are there any final comments or remarks? Any frustrations? What would you do differently? In your opinion, what needs to change? If possible at this stage, start discussing the following year s objective setting process. Manager Enter the assessment on line as discussed in the meeting. Provide comments and suggestions on team member s aspirations and any other remarks Share, discuss and validate all STEP results with N+2 and/or Division President Send STEP to Team member for signature Team Member Validate Global Performance result by signing STEP, any further comments on the assessment must be registered here Send STEP to Manager for signature The STEP is completed once the Manager has signed. 7 12/4/2015
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