1. The New Hemsley Fraser Performance Management System Introduction & Overview

2. Purpose & Agenda The purpose of this presentation is to provide an overview of the new Performance Management System. In this presentation, we will discuss: Aligning individual objectives with business strategy and values Focusing on the conversation The what and how of employee performance Link between performance management and pay System implementation Training and support 1

3. Performance Management Performance management is the general term used to refer to the systems by which an individual is managed and regularly assessed. It provides an opportunity for constructive, two-way, performance- focused discussions between employee and manager. 2

4. Aligning Objectives with Strategy and Values Having a strong Performance Management System ensures that an employee’s key tasks and objectives align with business needs. The graphic below is a representation of the link between business strategic goals, Demos Values and employee objectives. 3

5. Focus on the Conversation In addition, the new Hemsley Fraser Performance Management System is more about the conversation between employee and manager than it is about completing the Personal Development Review form. The system focuses the conversation on: What the employee does and how the employee does it Self-ratings and manager ratings Areas of strength and success Areas for improvement Desired values (behaviours) in the workplace Learning and development goals 4

6. Employee Performance The new Performance Management System is based on the notion that performance is equally measured by both the what of an employee’s job and how they complete their work. The what of the job consists of an employee’s technical job roles, responsibilities, accomplishments and results. These link to the Hemsley Fraser strategic goals and initiatives. The how of the job is the manner in which they complete their work. It is how employees bring values to life in the context of their job. These are based on the Demos Core Values. 5

7. Performance Management & Pay There will continue to be a relationship between performance and level of pay. The performance review rating is an important measure of individual performance, and therefore will be one of the factors taken into account in determining an employee’s individual pay level. Other factors are outlined in the Performance Management Guidelines for Performance Reviews and Performance Management Questions & Answers. 6

8. System Implementation When does the new system become effective? The new system is being implemented in April 2011, with annual reviews undertaken in April of every year. What happens to new starters? The probationary process is directly linked to the new Performance Management System. This means all new starters will have an interim review three months after their start date that will include setting their first set of objectives. Their first performance review will be six months after and thereafter every April. 7

9. Training & Support What training and support is available to employees? Information will initially be provided through the various briefing and training activities surrounding the 2011 launch. The Personal Development Review form is on the HF Intranet. Each employee has access to their learning pathway on the Performance Management Portal. There they can locate: Launch Announcement from April 2011 E-learning module identifying key features of the systems and guiding employees through Part A of the Personal Development Review Form Guided Practice: Writing SMART Objectives Guidelines for Performance Review Questions & Answers Employee & Manager Review Checklists 8