Performance Management Process A 5-step approach to building clarity of our Purpose, Strategies, Objectives and supporting Employee Empowerment

Performance Management Process Step 5: Compensation Rewards linked to measurable performance against mutual objectives Step 1: Define Purpose, Structure, Roles & Responsibilities Ongoing Coaching Step 4: Written Performance Reviews and Development Planning Step 2: Individual Job Descriptions and Objective Setting Step 3: Introduce Concept of Job Bands, Salary Ranges, Bonus Targets …The same process that your children participate in at school

Performance Management Concept Share responsibilities for business results Focus on behaviours as well as results Promote an environment where feedback and coaching occur regularly Empower colleagues to take ownership of their job Promote growth and job satisfaction by emphasizing individual development

Our Purpose  Step 1 Our Purpose To build a portfolio of recognizable consumer food novelty brands which provide sustainable value to our business partners. These include consumers, customers, employees, the community and business investors including suppliers

Five Spokes of Business Foundation  Step 1 Communicate a clear vision and strategy to drive profitable volume growth in branded freezable novelty products throughout North America Challenge, develop and reward out people against mutual/ measurable goals (Performance Management Process Align our products & services with our customer and consumer needs Business Foundation Create resources to win financially Drive process improvements and execution to deliver customer excellence

Setting Objectives  Step 2 An agreed job description is the foundation of this process You can’t set objectives if you are not crystal clear on your job responsibilities Objectives must be quantifiable and measurable Some examples of key performance objectives or results or what measures may include

Objective Setting  Step 2 Verbs for writing statements of performance objectives

Setting Objectives: Summary  Step 2 A three (3) phase activity Define the objectives  Form Obj. #1 Quantify impact of achieving each objective  Form Obj. #2 Action to take to achieve each objective  Form Obj. #3 … Three one-page, word forms to complete – maximum time 1 ½ hours

Job Bands, Salary Ranges, Bonus Targets  Step 3

Reasons for Conducting a Review  Step 4 To recognize positive performance To improve future performance To provide frank and constructive feedback to the employee To support a fair and equitable compensation system

Performance Review  Step 4 The employee will prepare his performance review for discussion with his supervisor The following ratings outline would be provided to the employee to help his/her completion of the Performance Review

… an overall performance rating would be concluded Performance Review  Step 4 It will be a simple 1 page form: makes your life easy List Objectives List Quantifiable Performance 1 - ? Performance vs Rating vs Each Objective Each Objective The supervisor and employee discuss the performance review Potential development training is identified : Examples  Technological knowledge, Computer skills, Leadership training, etc. … an overall performance rating would be concluded

Rewards  Step 5 The Performance Management process is directly linked to reward Annual Merit (not inflation) increases should reflect the individual’s overall Performance Rating The individual component of the Bonus Payout is tied to meeting or exceeding mutual objectives …Target one annual reward payout, Merit and Bonus, at one time for all Band B and up employees.