A Guide to Performance Management Welcome to Workday the Power of You

Our Exelis Commitment to Performance Management Drives Business Results and On-Going Employee Development Align individual efforts with the organizational, division, business area and departmental goals to maximize results Focus all employees on performance and development priorities to maximize individual productivity and development Provide an opportunity for assessment and development of Exelis leadership and functional/technical competencies Encourage communication and a collaborative review and development of employee results against goals, objectives, outcomes and employee behavior and competencies

Transition to Workday, our official Exelis Human Resources Information System (HRIS), now includes performance management With Workday Managers can access employee data and organizational information Managers and employees will establish performance objectives, set expectations and identify development opportunities Employees can manage personal data, benefits, performance goals and professional development Employees will perform a self assessment on how they incorporate leadership competencies in their daily work. They will also have to comment on their strengths and development opportunities.

Roles and Responsibilities Employee Manager Initiates PfP Develops SMART performance and development goals in alignment with company goals Communicates goals and career aspirations with manager Assesses own performance and results Verifies understanding of developmental needs and opportunities Participates actively in performance management discussions Remains receptive and requests feedback Demonstrates responsiveness and timeliness Shares Exelis goals to ensure employee’s alignment Provides employee feedback on performance, behavioral competencies and functional/ technical competencies Coaches, reinforces and motivates Offers timely and supportive feedback Remains engaged with employee through the performance period Provides employee tools and resources to accomplish goals Shared Responsibility Commit to established goals Communicate expectations, changes to goals, challenges/ successes, tools/resources needed Maintain open and ongoing communication Remain engaged in development conversations

2014-2015 PfP Process MyHR Workday Meet to Discuss Employee Manager Next Level Manager MyHR Workday Meet to Discuss Update & Approve 2014 Goals Establish 2015 Goals & Submit Approve & Comment on Goal Progress Review & Approve Review & Acknowledge Process Complete

Moving Through the Process 1 2 3 4 5 6 C MyHR Workday Meet to Discuss Update & Approve 2014 Goals Establish 2015 Goals & Submit Approve & Comment on Goal Progress Review & Approve Review & Acknowledge Process Complete Employee Manager Next Level Manager

Employee & Manager Meet to Discuss 1 2 3 4 5 6 C Commit to established goals Communicate expectations, changes to goals, challenges/ successes, tools/resources needed Maintain open and ongoing communication Remain engaged in development conversations

Update 2014 Goals in MyHR MyHR Workday 1 2 3 4 5 6 C Meet to Discuss Update & Approve 2014 Goals Establish 2015 Goals & Submit Approve & Comment on Goal Progress Review & Approve Review & Acknowledge Process Complete Employee Manager Next Level Manager

Report on 2014 Goals in MyHR https://myhr.exelisinc.com 3 4 5 6 C Select the 2014 Interim Feedback Session Review & update progress towards your 2014 goals Click “Submit Feedback” Click “Interim Feedback Session” Click “Submit Feedback”

Manager Comment and Submit 1 2 3 4 5 6 C 1 Add feedback for 2014 employee goals 2 Click “Submit Feedback”

Employee Signs Feedback And Begin Workday 1 2 3 4 5 6 C Click “Submit Feedback” Employee receives and acknowledges feedback in MyHR and MyHR process is complete. ! ! Transition to Workday

MyHR Complete –> Transition to Workday New System, Same Process 1 2 3 4 5 6 C MyHR Workday Meet to Discuss Update & Approve 2014 Goals Establish 2015 Goals & Submit Approve & Comment on Goal Progress Review & Approve Review & Acknowledge Process Complete Employee Manager Next Level Manager

Complete Career Profile https://wd5.myworkday.com/exelisinc/login.flex ! You MUST use Google Chrome or IE 10(or higher) to log in. 1 2 3 4 5 6 C Click on your Name in the top right corner and select View Profile Complete your Career Profile either by: Importing from LinkedIn Entering your job history, education, and skills on the Careers tab Click “View Profile”

Launch 2015 PfP in Workday 1 3 2 4 1 2 3 4 5 6 C Inbox Notification Click “Launch” Click “Self Evaluation” Notification 4 Click “Go to Guided Editor”

Enter 2015 Goals 1 2 3 4 5 6 C ! 1 Click “+” to add a goal Fields will adjust and save automatically. 2 Enter your goal here Click icon for dropdown menu. Category – performance or development Supports – align the goal with a company goal from the list Due Date – completion date of the goal 3 Click “Next” to continue

Attach Supporting Documents (Optional – use only if needed) 1 2 3 4 5 6 C 1 Click “+” to add an attachment 2 Click here to upload attachment 3 Click “Next” to continue DO NOT ATTACH CLASSIFIED, COMPANY CONFIDENTIAL DATA, COMPENSATION DATA OR ANY ITAR CONTROLLED DOCUMENTS IN YOUR PFP

Evaluate Competencies 1 2 3 4 5 6 C 1 Click item to edit 2 Select skill level for each 3 Click “Next” to continue

Assess Strengths and Development Opportunities 1 2 3 4 5 6 C 1 Click item to edit 2 Enter evaluation 3 Click “Next” to continue

Overall Evaluation 1 2 3 1 2 3 4 5 6 C Click item to edit Enter evaluation 3 Click “Next” to continue

Summary Go back to a particular section by clicking “Guide Me” 1 2 3 4 5 6 C When your PfP is complete, click Submit to send it to your manager

Manager Approval and Comment 1 2 3 4 5 6 C MyHR Workday Meet to Discuss Update & Approve 2014 Goals Establish 2015 Goals & Submit Approve & Comment on Goal Progress Review & Approve Review & Acknowledge Process Complete Employee Manager Next Level Manager

Inbox Notification & Launch - Manager 1 Inbox Notification 1 2 3 4 5 6 C 2 Click “Manager Evaluation” Notification 3 Click “Launch” 4 Click “Go to Guided Editor”

Add Comments to Employee Goals – Manager (Optional) 1 2 3 4 5 6 C 1 Click icon to edit 2 Enter Comments 3 Click “Next” to continue

Evaluate Competencies - Manager 1 2 3 4 5 6 C 2 Click icon for dropdown 1 Click a competency 3 Select an assessment for each Competency 4 Click “Next” to continue

Strengths and Development Opportunities - Manager 1 2 3 4 5 6 C 1 Click icon to edit 2 Enter Comments 3 Click “Next” to continue

Overall Comments - Manager 1 2 3 4 5 6 C 1 Click icon to edit 2 Enter Comments 3 Click “Next” to continue

Summary and Submit - Manager 1 2 3 4 5 6 C ! Comments in this section will not display in the PfP final print out.  Manager and Next Level Manager comments are not visible to the Employee. Click “Submit”

2nd Level Manager Approval and Comment 1 2 3 4 5 6 C MyHR Workday Meet to Discuss Update & Approve 2014 Goals Establish 2015 Goals & Submit Approve & Comment on Goal Progress Review & Approve Review & Acknowledge Process Complete Employee Manager Next Level Manager

Review Employee Evaluation - Next Level Manager 1 Inbox Notification 1 2 3 4 5 6 C 3 Review employee evaluation 2 Click “Manager Evaluation” Notification 4 Click “Approve”

Employee Receives and Acknowledges Review 1 2 3 4 5 6 C MyHR Workday Meet to Discuss Update & Approve 2014 Goals Establish 2015 Goals & Submit Approve & Comment on Goal Progress Review & Approve Review & Acknowledge Process Complete Employee Manager Next Level Manager

Employee Acknowledges Review 1 2 3 4 5 6 C 1 Click inbox notification 2 Click icon & acknowledge 3 Click “Submit” Process Complete

Creating Goals | Competency Evaluation | Performance Discussion Appendix Creating Goals | Competency Evaluation | Performance Discussion

How to Create “SMART” Goals Specific What specifically will I do? Example: Identify and plan a process improvement initiative in your department that will achieve reduced cost and increase quality by the end of first quarter. Measurable How can I measure success or know that I have reached my goal? Examples of measurable items: Revenue/Margin/Market Share/Growth/Budget/Operating Income Quality Standards/Attendance Rate/How Many (Percentage/Frequency) Customer Satisfaction/Employee Survey Results/Benchmark Standards Margin of Errors/Acceptable Rates of Mistakes Aligned Is the goal aligned to my department, business area, division goals? All customer complaints must be responded and resolved within 24 hours in order to improve customer satisfaction within our division. Results Oriented What’s the impact? Will it deliver results to enhance business or development? Examples of things that are Results Orientated: Consistent with Functional Specialty and Company Business Direction Challenging to Motivated Employees Career Development Objectives Time Bound What’s the due date? Be specific on exact date. Identify and plan a process improvement initiative in your department that will achieve reduced cost and increase quality by March 28, 2015. You Can’t Improve What You Don’t Measure!

Creating 2015 Goals There are two types of goals for 2015: Performance What do I have to accomplish to get my job done? What do I have to do to be successful in my job in 2015? Recommend 2-3 goals Development How can I develop (knowledge, skills, abilities, leadership behaviors) to grow in my current role or future role? Recommend 1-2 goals

Sample Performance Goals Reduce the cost of the X by 10% by July 28, 2015 in support of division requirement to create more affordable solutions Ship 25 tested, qualified systems to Air Force by September 25, 2015 to satisfy contract requirements Achieve 20% material productivity gains in both direct and indirect supply chains through business intelligence, e-buying channels and corporate sourcing capabilities by June 25, 2015 to organizational supply chain goals Lead Program X and deliver 300 systems by November 28, 2015 to the Navy as specified in contract Capture new business development opportunity of $xxM as committed in Q2 forecast

Learning Formula = Learn + Apply Development Goals Learning Formula = Learn + Apply We learn by doing Focus your development goal around what you can do to develop Examples: Added responsibilities Exposure to portfolio of products Projects and/or task forces Learning something new and taking responsibility to apply it to a project Scale (size) jump Scope (complexity) change Stretch Assignment

Complete Self Evaluation of Exelis Behavioral Competencies Review each behavioral competency description in PfP Select your skill level for each competency Developing Proficient Excels Write concrete examples to support your self assessment in the Strengths and Development Opportunities section Check bullets

“Developing” Assessment on Exelis Competencies Everyone has an opportunity for continued growth and development in one of the competencies and associated behaviors Developing rating is expected for employees that are New in role – less than one year Taking on expanded responsibilities in scope or scale Learning new technologies Dealing with complex problems Creating a rich development goal is essential to advancing ourselves and Exelis Check bullets

Checklist to Prepare for Performance Discussion Collect specific examples of performance and behavior (completed projects, external/internal customer input, peer input, missed deadlines, specific behaviors) Note key accomplishments, additional responsibilities, and areas for improvement Ask questions, listen and provide clarification Follow up on agreed upon goals as performance/behavior is demonstrated

Engaging in the Performance Discussion Work toward common goals Set clear expectations Give and receive regular feedback Ask for guidance Acknowledge good performance and desired behaviors Respect and plan the time for employee/manager discussions Work constructively toward understanding and agreement

Questions and Answers ?