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British American Tobacco Performance Management Example

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Presentation on theme: "British American Tobacco Performance Management Example"— Presentation transcript:

1 British American Tobacco Performance Management Example

2 British American Tobacco world-wide
The company has operations in 180 countries and the best-selling cigarette brands in 30 of those. The Group manufactures cigarettes in over 50 countries. Operations in 180 countries Manufacturing in 48 countries Performance Management Conducted Everywhere! Over 100,000 employees

3 Our vision for the future
World’s number one Superior Workforce Worldwide British American Tobacco is committed to a vision for the future. It is our ambition to lead the international tobacco industry and to perform alongside top global companies – across all industry sectors – in terms of profit growth. It is this long term goal that inspires our people and drives our strategy. (The man in the photo is Martin Broughton, the current CEO of British American Tobacco Industries)

4 Performance Management

5 Performance Appraisal and Career Enhancement system (P.A.C.E)
PACE is a key management process for reviewing the past and planning the future. It is a management tool which aims to: * Improve the performance * Enhance the development

6 Principles of PACE Pace is competency based
It is widespread throughout the British American Tobacco World Pace encourages objectivity Pace emphasises development

7 PACE Agenda Performance review Competence review Development plan
Setting objectives for next year Future career preferences The United States is the second largest cigarette market in the world by volume. It is the root of British American Tobacco's own origins and the centrepiece of the region, which also includes Japan - the world's third largest market and a major importer from the US. It is a dynamic market where consumer tastes and trends are constantly changing and nearly a third of all cigarettes sold are in the value-for-money segment. Two of the company's brands are among the top 10 in the US - value priced GPC and the popular premium menthol brand KOOL. The company has also developed successful new concepts, including the fast-growing ultra slim cigarette, Capri. Leading brands - KOOL, Carlton, Capri and Pall Mall. Kent and Lucky Strike are amongst the top 10 imported brands in Japan.

8 Performance Review; Rating
Rating Definition & Description A Exceptional Performance The individual has exceeded expected performance criteria by a wide margin in all key result areas B Excellent Performance The individual has exceeded performance criteria in most key result areas and has not produced any less than satisfactory results. C+ Above Target Performance The individual has either achieved expected performance criteria with one critical area exceeded or has exceeded standards in two critical areas with the result that a lesser priority area is under-achieved. C On Target Performance The individual has either achieved the expected performance criteria in all key areas or has exceeded performance in one critical area with the result that a lesser priority area is under-achieved. C- Below Target Performance The individual has achieved the expected performance criteria in all but one critical area. D Poor Performance The individual has under-achieved in a number of key result areas. E Unacceptable Performance The individual has constantly failed to meet the performance criteria in all key result areas.

9 There are two classes of competence :
Competency Review Competencies are skills, knowledge and behaviours which underpin effective managerial performance. There are two classes of competence : Management Technical

10 Management Competencies
· People Leadership · Resource Management · Business Development · Communicating · Influencing · Creative Thinking · Rational Decision Making · Career Commitment We are committed to maintaining the highest business and ethical standards in all our operations. To help achieve this, around the world we apply the same appraisal, training and career development processes as well as highly competitive remuneration and reward schemes. Setting the same rigorous standards internationally ensures that British American Tobacco has first-class people in all of its markets, creating a global pool of talent which the company can deploy with total confidence anywhere in the world.

11 Development Plan An agreed plan to address the identified areas for improvement, covering more than one review period Training courses/seminars Alternative development methods We are committed to maintaining the highest business and ethical standards in all our operations. To help achieve this, around the world we apply the same appraisal, training and career development processes as well as highly competitive remuneration and reward schemes. Setting the same rigorous standards internationally ensures that British American Tobacco has first-class people in all of its markets, creating a global pool of talent which the company can deploy with total confidence anywhere in the world.

12 Objectives for Next Year
Key Result Areas (KRAs) and agreed specific performance criteria for the coming year Objectives should be S.M.A.R.T. Specific Measurable Attainable Relevant Time-bound Ultimately, it is people who make our business successful and British American Tobacco takes pride in recruiting the very best international talent in order to achieve sustained growth and development. Our graduate recruitment programme targets 250 carefully-selected universities to give British American Tobacco access to the best graduates available around the world, and the company operates an equally selective mid-career recruitment programme to bring in experienced professionals from other companies, both in and beyond the FMCG sector.

13 Future Career Preferences
Next job preference, if identified Special circumstances Mobility Covering more than 50 markets, including both Russia and Germany the worlds 4th and 6th largest cigarette markets. (Note: this excludes the sales of Kreteks in Indonesia) Europe has two very different personalities.

14 Career management Growing talent from within
Graduate recruitment and Management Trainee Programme Pace discussions with superiors Career development meeting procedure Career Reviews This international approach to doing business provides a challenging work environment, stretching people's management capabilities and offering a world-wide career opportunities. As British American Tobacco continues to grow and develop new markets, the opportunities steadily expand.

15 Career development meeting procedure
Global approach Consistency world-wide Well informed, thoroughly debated and effectively managed judgements and decision making on the future careers of managers

16 CDM Procedure Local CDM Discussions Feedback from Mentors Local CDM
Pace Guidelines (November) Changes Schedule Key Capabilities/ Competencies KRA- Issues MT Local CDM Follow-up of Plans Update/Review Graduate Recruitment Discussions (January) Head of function with mgrs of target population (combined with the Mgrs own PACE discussion) Feedback from Mentors Preparing of appraisers/ appraisees (December) HR Local CDM (ASAP) Feedback from Regional and Functional CDMs Update and follow-up of issues Graduate Recruitment PACE (31 Jan) Performance Ratings Career Aspirations Development Needs Strengths and Weaknesses Views and proposals Prepared by Head of Function and HR Manager Local CDM (16 Feb) Potential Definition Career Plans Development Plans Succession Plans Graduate Recruitment Functional CDM ExecuTRACK Regional CDM ( April) Area CDM (End Feb)

17 Career development meeting procedure
CDM agenda: An Important Meeting! - Review of current situation and its implications - Organisation development - Potential definitions - Career plans - Succession plans - Development plans - Management trainee intake and development Western Europe is sophisticated, competitive and a highly developed region for consumers with high brand loyalty and taste for lighter, international style cigarettes. Here British American Tobacco can utilise its strong portfolio of international and regional brands, Lucky Strike and Barclay being among the leading names.

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