2. British American Tobacco Performance Management MBA HRM 16.4.99 HSEBA

3. British American Tobacco

4. Leading international tobacco company Confidence in the future of the cigarette market Controversial product A clear vision for success

5. Our industry Annual world market consumption: 5.5 trillion cigarettes 15 billion cigarettes sold around the world every day Tobacco provides a livelihood for 145 million people

6. Highly ranked amongst global companies 13% world market share Gross turnover £24 billion in 1997 British American Tobacco

7. International cigarette companies Philip Morris - 17.2% British American Tobacco - 13% RJ Reynolds - 5.8% Rothmans - 3.1% JTI - 5.1% CNTC 30.3% Others 23.4% Reemtsma - 2.2%

8. British American Tobacco world-wide Operations in 180 countriesManufacturing in 48 countries Over 100,000 employees

9. British American Tobacco regions Asia-Pacific America- Pacific Latin America and the Caribbean *AMESCA Europe *Africa, Middle East, South & Central Asia

10. World’s number one Our vision for the future Profit performance alongside top global companies

11. British American Tobacco

12. British American Tobacco Nordic Founded 21.1.1909 under the name of Itämainen Paperossitehdas i.e. Oriental Cigarette Factory Renamed as Suomen Tupakka Oy in 1931 Renamed as BAT Finland Oy on 1.9.1992 BAT Nordic activities started in North Europe 1995 Renamed as British American Tobacco Nordic Oy in 1997 Net turnover MFIM 250 in 1998 Staff 88

13. Performance Management

14. 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 Performance Appraisal and Career Enhancement system (P.A.C.E)

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

16. PACE Agenda Competence review Development plan Setting objectives for next year Performance review Future career preferences

17. RatingDefinition & Description AExceptional Performance The individual has exceeded expected performance criteria by a wide margin in all key result areas BExcellent 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. COn 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. DPoor Performance The individual has under-achieved in a number of key result areas. EUnacceptable Performance The individual has constantly failed to meet the performance criteria in all key result areas. Performance Review; Rating

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

19. Management Competencies · People Leadership · Resource Management · Business Development · Communicating · Influencing · Creative Thinking · Rational Decision Making · Career Commitment

20. Development Plan An agreed plan to address the identified areas for improvement, covering more than one review period Training courses/seminars Alternative development methods

21. Objectives for Next Year Objectives should be S.M.A.R.T. Specific Measurable Attainable Relevant Time-bound Key Result Areas (KRAs) and agreed specific performance criteria for the coming year

22. Future Career Preferences Career preference Next job preference, if identified Special circumstances Mobility

23. Career management Growing talent from within Graduate recruitment and Management Trainee Programme Pace discussions Career development meeting procedure Career Reviews

24. 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

25. CDM Procedure Pace Guidelines (November) Changes Schedule Key Capabilities/ Competencies KRA- Issues MT Preparing of appraisers/ appraisees (December) HR PACE (31 Jan) Performance Ratings Career Aspirations Development Needs Strengths and Weaknesses ExecuTRACK Area CDM (End Feb) Discussions (January) Head of function with mgrs of target population (combined with the Mgrs own PACE discussion) 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 Local CDM (ASAP) Feedback from Regional and Functional CDMs Update and follow-up of issues Graduate Recruitment Functional CDM Local CDM Follow-up of Plans Update/Review Graduate Recruitment Feedback from Mentors Regional CDM (22.-23. April)

26. Career development meeting procedure CDM agenda - Review of current situation and its implications - Organisation development - Potential definitions - Career plans - Succession plans - Development plans - Management trainee intake and development