1. Pfizer Performance Management Process
REV011510

2. Performance Management Process
Roles of the Manager & Colleague
The Global Performance Management (GPM) Process and Tool
How do I get started & GPM materials

3. Performance Management at Pfizer
Performance Management is a global process:
Aligns across Pfizer
Helps the organization manage the performance and development of each colleague at every level
Enabled through technology
Organizational benefits:
Consistent process in managing performance globally
Provides accurate, real-time and historical performance data
Drives standards across the enterprise
Performance Management works in conjunction with other key people processes such as compensation and talent planning to provide an integrated approach to managing, measuring, developing and rewarding colleagues for their contributions

4. Why have Performance Management?
Colleagues perform best when they feel personally connected to their work and the organization and have a clear vision and understanding of what needs to be achieved
Managers can most effectively drive performance by providing colleagues with informed, positive, fair, accurate and detailed feedback both formally and informally
Performance discussions should focus on achieving objectives and long term career goals with emphasis on the skills and competencies for the future
Only Positive Results from Increasing Employee Understanding:
Clarifying employee performance standards not only positively impacts individual performance, but also drives several important employee attitudes. Employees who fully understand the standards on which they are evaluated try 19 percent harder, are 34 percent more committed to the organization, and are 36 percent more likely to feel “matched” to their job. These substantial changes in employee attitudes, plus the obvious direct impact on performance of 31 percent, result in a substantial total impact on performance of 36 percent Corporate Leadership Council report 2002

5. Performance Management and the bottom line
Managers must recognize the financial opportunity that managing performance presents. Research shows that focusing on Development (a performance management component) can increase colleague performance by 25%, which translates to $12.5 billion in annual revenue
Employees Reporting to Manager A
Manager A is very ineffective at developing employees
Employees Reporting to Manager B
Manager B is very effective at developing employees
125
25% Performance Improvement directly attributable to Manager B’s effectiveness at employee development
100
Source: Learning and Development Roundtable 2003 Employee Development Survey.
In addition, execution of globally aligned, integrated and differentiated HR programs would further increase the market value by another $20,000 to $40,000 per colleague (based on research by Huselid)

6. A Pfizer Manager Core Competency: Grows Others
Engage Today’s Talent & Build the Next Generation
Grows
Others
“Grows Others” is one of the 9 Manager core Competencies:
Provides challenging and stretching tasks and assignments
Holds frequent development discussions
Is aware of each direct report's career goals
Constructs compelling development plans and executes them
Pushes people to accept development moves
Will take on those who need help and development
Cooperates with the developmental system in the organization
Is a people builder
Draft & Confidential; Preliminary plans only; implementation of intentions expressed in this document may be subject to employee consultation in certain countries

7. Pfizer Core Competencies
Colleague
Manager
Senior Leader
Functional/Technical Skills
Demonstrates Business Acumen
Anticipates Customer & Market Needs
Strategic & Innovative Thinking
Acts Decisively
Acts decisively
Seizes Accountability
Holds people Accountable
Holds People Accountable
Grows Self
Grows Others
Grows Leaders
Change Agile
Leads Change
Builds change-Agile Organizations
Self Awareness
Insight, Influence & Inclusion
Commits to “One Pfizer”
Peer Relationships
Build Effective Teams

8. My Objectives Objective Setting Purpose
Colleague and manager plan to achieve results by:
Defining contributions relative to colleague’s role, manager’s objectives, team and Pfizer business
Creating agreement on performance objectives and determining how to demonstrate Pfizer Values and Core Competencies to drive optimal results
Key Steps
Colleague drafts individual performance objectives that align with organizational goals and are written in SMART format
Specific, Measurable, Actionable, Realistic, Time-bound
Colleague submits request for manager approval of Objectives
Manager approves objectives and colleague is committed to objectives
If manager approves objectives and modification is later required, colleague may modify objectives and resubmit or manager may return objectives to colleague for modification

9. My Development Development Planning Purpose
Opportunity for colleagues and managers to:
Assess strengths and development needs
Focus on building strengths
Discuss and agree on aspirational outcomes
Agree on development outcomes that focus on short-term achievement of current performance objectives and long-term achievement of professional aspirations
Create an action plan with a variety of development actions to achieve these outcomes
Identify time frames and tracking methods to ensure outcomes are achieved
Key Steps
Based on self-assessment and other feedback, colleague drafts professional aspirations, strengths, development needs and development outcomes and actions
Colleague submits request for manager approval of and commitment to Development Plan
Manager approves the Development Plan and colleague is committed to the plan, which can be modified as needed

10. Progress Reviews (mid-year)
My Performance
Progress Reviews (mid-year)
Purpose
Opportunity for reviews between annual reviews (typically at mid-year, and as often as needed), to document progress toward:
Performance objectives
Demonstration of Pfizer Values and Core Competencies
Overall performance to date
Key Steps
Colleague prepares self-review by documenting achievement of performance objectives and demonstration of Pfizer Values and Core Competencies; colleague submits to manager
Manager and colleague can work independently on their particular version
If the manager has not reviewed yet, colleague can recall the request and continue editing Progress Review
Manager writes and updates the Progress Review, which serves as official documentation
Manager and colleague meet to discuss their review, as well as share information and perspectives

11. My Performance Annual Review Purpose
Opportunity for a formal annual review, to document year-end achievement of: Performance objectives, Demonstration of Pfizer Values and Core Competencies, and Overall performance
Key Steps
Colleague prepares self-assessment by documenting achievement of performance objectives and demonstration of Pfizer Values and Core Competencies; colleague submits to manager
Manager writes and updates the Annual Review, which serves as official documentation and determines colleagues rating; manager submits to next-level manager who approves the manager’s rating
Colleague acknowledges rating and may add final comments
Year-end ratings affect merit increase, and bonus and long-term incentives if elegible (This may not always apply to non-US, non-GPP colleagues)

12. Pfizer Global Performance Rating Scale
Performance Categories
(Recommended distribution guidelines)
Description- Performance with Integrity and consistent demonstration of the Pfizer Values is foundational to the way we work, must be considered in assessing results, and will directly impact the final rating. Full demonstration is required for a rating of “Consistently Met” or higher.
Exceptional Results
Expectations were surpassed
Excellent results and recognizable demonstration of Integrity in achieving performance outcomes
“Top Quality” products and services
Accomplishments far in advance of agreed-upon time frames and/or financial criteria (i.e., budget, plan, allocated resources)
Significantly Exceeded
Expectations were exceeded or significantly exceeded
Superior Results and operates with integrity in daily exchanges, actions and in achieving performance outcomes
Products and services of superior quality
Accomplishments in advance of agreed-upon time frames and/or financial criteria
Exceeded
Expectations were exceeded in some areas and definitely met in all others
Significant Results and upholds integrity in achieving performance outcomes
Products and services are of high quality
Some accomplishments in advance of, some aligned with, agreed-upon time frames and/or financial criteria
Drives business results with Integrity
Consistently Met
Expectations were met
Fully satisfactory performance, solid results, fulfilled job requirements and integrity demonstrated in achieving performance outcomes
Good quality products and services
Accomplishments aligned with agreed-upon time frames and/or financial criteria
Delivers business results with Integrity
Partially Met
Expectations were partially met, improvement required in some areas
Results partially fulfilled requirements and expectations
Products and services of acceptable quality
Accomplishments not consistently aligned with agreed-upon time frames and/or financial criteria
Deficient Results
Expectations were not fulfilled, performance unsatisfactory, significant improvement required
Results substantially below job requirements and expectations
Products and services of deficient quality
Accomplishments not regularly aligned with agreed-upon time frames and/or financial criteria
Significantly Deficient Results
Expectations were not met, unacceptable performance, immediate improvement required
Results consistently poor and significantly below job requirements and expectations
Products and services of notably deficient quality
Accomplishments not aligned with agreed-upon time frames and/or financial criteria

13. My Compensation Compensation Dialogue
The Compensation dialogue is the final part of the performance management cycle
Opportunity to connect on how performance influences:
Merit increase (annual salary review)
Global Performance Plan (bonus/incentive plan)
Long term incentives, i.e., allocation of stock options
Talent assessment

14. Rating Link with Compensation and Talent
The GPM process supports a clear link between performance and compensation. The individual performance rating contributes to a colleague’s merit increase determination and, if eligible, their Global Performance Plan (GPP) and Long Term Incentive (LTI) award determinations (including stock options and other equity-based awards e.g. RSU).
The Individual performance rating is an input to Compensation and Talent Management. Ratings are completed prior to Compensation application.
Individual Performance
Rating
Position in Range/
Compa Ratio
+ Merit Budget
Merit (Annual
Salary increase)
Individual Performance
Rating
Company
Performance/
Funding
Global Performance
Plan (GPP) Bonus
Individual Performance
Rating
Potential +
Budget
Stock Options/
Restricted Stock Units
(RSUs)
Also, it is important to note that individual performance ratings together with potential are key to identifying talent within Pfizer.
Individual Performance
Rating
Potential
Talent
Management

15. Ongoing Coaching and Feedback
Before
During
After
Decide what to accomplish and think through some questions to promote self-discovery
Decide if it is formal or informal, and what method of communication is most appropriate: in person, over the phone, , etc.
Prepare specific, objective examples
Anticipate how the colleague will react and how to respond
Plan for ample time
Use positive or constructive feedback
Actively listen to the colleague
Take notes
Follow up on any commitments or action items
Document feedback – whether it is positive or constructive
Keep an open dialogue and be available for follow-up
Check to see how the colleague is doing and if he/she has questions
Actively listen to the manager
Understand your objectives and discuss your skills, abilities and areas for improvement with your coach
Document feedback
Continuously ask for feedback and discuss your performance
Seek feedback from others.
Manager
Colleague

16. Talent Planning End of June – Talent Assessments Complete
6 Box Grid*
Retention Risk*
Next potential position
Next potential roles
End of July – Succession Plans Complete
Mid of August – Mid September – individual reviews with Division head and direct reports
Mid September -- LT talent review
End of September -- CEO led talent review
Levels covered in Talent Reviews
LT Review
Division head minus 2
Key Talent
Business Unit or Functional Group
VP Business Unit minus 2
*Ok if done sooner

17. Accessing GPM (Colleague Section)
Choose one of the following methods to enter GPM Home from the hrSource colleague desktop*:
Scroll through the available Quick Links list and click to highlight GPM Home, then click Go.
In My Menu section, click My Career link to expand the list. Then, click the Global Performance Management link, followed by clicking GPM Home.
In desktop section titled “Tell Me About ….” click My Career link. Click GPM Home in drop-down list under My Performance, then click the Go button.
*The enhanced GPM system is scheduled for launch in mid-February, However, all colleagues are encouraged to set their objectives using the offline Microsoft Word template that can be accessed from the 2010 Performance Management Process Resource webpage, where you will also find tips for setting SMART objectives.

18. Colleague Home Page 1 2 3 5 4 7 6 Highlights
Colleague Desktop: to access the colleague section of GPM
Manager Desktop: to access the GPM documents of colleagues reporting to you
Click year in upper right hand corner to access performance documents from previous years
‘Learn More’ links provide fast access to help and learning resources
Action buttons provide quick access to available documents
Quick access to Create/Modify Attachment and Notes
Color-coded status icons 1 2 3 5 4 6 7

19. Create Objectives Free-form text field to enter Objectives*
John Colleague
Jane Manager
Free-form text field to enter Objectives*
*Mock-up, subject to change

20. GPM Home for Managers (Manager Desktop)
You are working with 2009 documents
Highlights:
Quick snapshots of all colleague GPM documents
Color-coded statuses show you where you are in the process
Next steps marked with a yellow triangle
Easy access to help and learning resources
Access to documents from prior years 5 4 1 2 3

21. Tip Sheets Numbered steps walk colleagues through the system
Helpful tip sheets are available on line within the GPM system by clicking the “Learn More” links
Numbered steps walk colleagues through the system
Screenshots and detailed instructions make it easy to follow the steps in GPM

22. Colleague GPM Help- Tip Sheets & Learning Materials

23. Global Talent Planning
The Global Talent Planning system can be accessed from the Manager Desktop

24. Global Talent Planning- Landing Page
Colleague, Jane

25. Help Who do I contact for help with GPM?
If you have any questions about the GPM system or about the year-end process, please contact the hrSource Center at SOURCE ( ). If you are outside the U.S., please contact your local HR support.
For more information on Core Competencies, please visit:

26. Performance Management Planning Calendar
JAN
FEB
MAR
APR
MAY
JUN
JULY
AUG
SEP
OCT
NOV
DEC
Performance Management
GPM available
Colleagues create
Performance Goals
Manager approves goals
Managers and Colleagues work on progress reviews
Colleague Self
Assessment due
Goals Approved
Mid-years created
Managers collect feedback
Manager conducts Annual Review
Mid-Year Performance Discussion are held
Managers create colleague performance reviews
Managers release Annual Reviews
GPM releases Annual Reviews
Talent Planning
Calibration
Development Planning
 Ongoing 
Review and update IDP as appropriate.
At minimum, update IDP annually.
Review and finalize merit, GPP and LTI
recommendations
Mgrs conduct comp discussions
Compensation Planning Tool closes
Compensation