Organizational Effectiveness & Development
FY16 PMP
MANAGER BRIEFING
YEAR-END RESPONSIBILITIES:
“EVALUATION PHASE”
Agenda “Evaluation Phase”
1.
Manager Roles in Performance Management Process
2.
Deadlines & Changes for this Year
3.
Process Content Review
4.
Compensation / Salary Planning Overview
6.
Manager How To’s (primarily for new Managers)
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
PMP 2016 – EVALUATION PHASE – GUIDING PULSE
HR and Manager Roles
PULSE FOR HR
PULSE FOR MANAGERS
WINNING TOGETHER
Aligning the year-end process within our HR
community
WINNING TOGETHER
Aligning the target evaluation with respective
peers is key for a joint decision
STRIVING FOR EXCELLENCE
Honoring great performance and aiming a fair
calibration of results among all colleagues
BREAKING NEW GROUND
Supporting the PMP approach to foster
entrepreneurship
STRIVING FOR EXCELLENCE
Honoring great performance and aiming a fair
calibration of results among all colleagues
BREAKING NEW GROUND
Supporting the PMP approach to foster
entrepreneurship
LET’S START ADVANCING PMP
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
PMP 2016 – EVALUATION PHASE – Deadlines
AME DUE DATE
RESPONSIBILITY
WHAT
Thursday, Sept.
15th
Employee
Self Evaluations
Friday, Sept. 30th
Manager
1.
2.
3.
Conduct Pre-Dialogue with Employee (your employee’s opportunity to
provide their perspective of their target achievements)
Contact relevant peers, internal and external customers for input
Send form to “Round Table Step” in 4Success
•
TRR (Total Results Rating)
•
IPP (Individual Performance Percentage)
•
Managerial Comments regarding overall Target Achievement
•
Placement in Potential Matrix
•
OLF Capability Rating was suspended again for everyone this
year
Friday, Oct. 14th
HR
Analyze calibration and finalize “Round Table Step” in 4Success
Monday, Nov. 28th
by 5:00PM EST
Manager
All TRR data from 4Success will be automatically uploaded into the Salary
Planning Tool by Friday, October 21st. Complete Merit Increases in Salary
Planning Tool by Monday, November 28th
Friday, Dec. 30th
Manager &
Employee
1.
2.
Conduct Feedback Dialogue and Share Approved Merit Increase
E-sign form in 4Success with Employee
•
•
Merit Memos
will be
available
Wednesday,
December 7 in
the Salary
Planning Tool
MBP/KCIP
Bonus Eligible
Employees
will receive
their direct
deposits on
Tuesday,
December 13,
please conduct
your employee
feedback
discussions
before this
date!
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
PMP 2017 – LEDVANCE
Changes for this year!
Individual Performance
Personal Development Review
• 3 Individual Targets in Value Structure*
• Manager calibrates within his/her team
• No Round Table discussion
• Based on value rating and demand
analysis (Training, Potential, Talent)
• Combined with Succession Planning
• Foster pro-active demeanor of employee
• Round Table discussion
Key:
Key:
Manager decides
and calibrates guided by
the system
Employee acts
pro-active
e.g. via self
nomination
ADVANCE WITH US
DRIVE RESULTS
The Performance Management Process will be split into TWO PARTS:
Global Project team (participants: HR and Business)
… Q4
Sep
Q1
Oct
Individual Performance
Target Setting FY 2017
*= Sales Targets
Nov
Q2
Dec
Jan
Feb
Q3
Mar
Apr
Personal Development Review
1) Evaluate behavior
2) Training actions
3) Potential rating and SP
4) Talent status
May
Q4
Jun
Jul
Aug
Sep
……
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
PMP 2016 – EVALUATION PHASE – CONTENT
(FY 2015 approach to be continued)
Rating 1 + 2: Total Result Rating (TRR) and Individual Performance Percentage (IPP) via
Total Results Rating
IPP-Range in %
Level Description
Distribution
Not achieved
0
Performance fails to adequately meet
any of the expectations, or fails to
meet expectations to a significant
degree in several areas, against the
targets and tasks
5%
Partially achieved
40
50
70
Performance meets some but not all
expectations against the targets and
tasks
20%
Achieved
90
100
Partially exceeded
120
Performance fully meets all
expectations against the targets and
tasks (at least 100 % target
achievement)
50%
130
150
160
Consistently exceeded
175
200
Performance fully meets all and far
exceeds several expectations against
the targets and tasks
Performance fully meets all and far
exceeds most expectations based on
the targets and tasks
20%
5%
The Manager has to evaluate to which degree the Employee has achieved his/her targets, and summarizes this in a Total Results Rating (TRR).
This rating is based on the Manager’s judgment; it is not simply a mathematical calculation of any target achievement scores. It should also include the manager’s
judgment on the achievement of results beyond the stated target (i.e., including the core task elements of the position as well as any ad hoc projects, etc., done
during the year outside of the expressed written targets).
The Individual Performance Percentage (IPP) depends on the Total Results Rating (TRR) and it is a mandatory rating for the PMP Target Group.
Key Message: CALIBRATION
CHANGE OF PMP METHODOLOGY
NO CHANGE OF PMP METHODOLOGY
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
PMP 2016 – EVALUATION PHASE – CONTENT
(FY 2015 approach to be continued)
Potential
Rating 3: Placement on Potential Matrix via
Seen from today
for the next 5-7 years...
Potential Talent
Talent
Exceptional Talent
The current performance is below
expectations; is principally able make a
more significant contribution in future,
but currently not fully able to do so.
Currently solid performer with high
potential to make bigger and better
contribution.
Currently strong performer with potential
to take significantly more responsibility
in terms of scale and scope/complexity.
Re-assign or re-scope
Performer with Potential
High Performer with Potential
The current performance is below
expectations; is principally able to make
a major contribution, but currently not
fully in a position to do so.
Currently solid performer with potential
to make bigger or better contribution.
Currently strong performer with
development potential for more
comprehensive tasks or more
responsibility.
Evaluate Further
Solid Performer
High Performer
The current performance is below
expectations - with limited potential to
make a more significant contribution in
future
Currently solid performer with lateral
potential.
Currently strong performer with lateral
potential; might demonstrate potential
for more comprehensive tasks over
time, but rather without increased
responsibility.
Potential for at least
two (2) more
Position Level
steps
Potential for at least
one (1) more
Position Level
step
Placement on Potential Matrix
Procedure:
• The Matrix gives an overview on whom
should be developed and with which
priority (next step).
• Potential statement will be discussed
in the next step, in “Personal
Development Review” in
February/March 2017
No or lateral
Potential
Performance
• Potential describes an employee’s ability to grow significantly in the future, either in the current role or beyond it
into a new, expanded and/or more complex role.
• Managers actively calibrate and decide on a Potential Matrix Placement for their employees.
• Remark: Step from below PL5 to PL5 is one Position Level step.
Key Message: CALIBRATION
CHANGE OF PMP METHODOLOGY
NO CHANGE OF PMP METHODOLOGY
Additional personal development topics (e.g.
succession planning, nomination or capability
rating) will be discussed in “Personal Development
Review” (Feb./ March 2017).
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
PMP 2016 – EVALUATION PHASE – CONTENT
Reduce Complexity (FY 2015 approach to be continued)
No Round Table Meetings
How does it look like WITH Round Table?
How does it look like WITHOUT Round Table?
DECISION BY RESPECTIVE HR AND MANAGER
DECISION BY RESPECTIVE HR AND MANAGER
Methodology of Round Table and respective preparation remain:
Procedure:
•
•
•
•
•
• Self assessment of employee remains
• Manager:
– Pre-evaluation
– Contact relevant peers for input Calibration of results
• HR:
– Review Calibration on country or territory level and adjust if necessary
– To adjust ratings set up of Round Table in 4Success
– Finalize ratings via Round Table step in 4Success
Prior the self assessment of employee
Pre-evaluation of manager (as preparation for Round Table)
Presentation of respective employee
Potential Matrix discussion
Peer Validation
Personal development topics (e.g. potential statement, succession planning,
nomination or capability rating) will not be discussed – will be conducted in
“Personal Development Review” (Feb./ March 2017).
Personal development topics (e.g. potential statement, succession planning,
nomination or capability rating) will not be discussed – will be conducted in
“Personal Development Review” (Feb./ March 2017).
Key Message: CALIBRATION
CHANGE OF PMP METHODOLOGY
NO CHANGE OF PMP METHODOLOGY
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
HR Infonet – New Performance Management Page!
What you will find?
• Today’s Presentation
• Performance Feedback Form (to help with peer evaluations)
• Effective Feedback Guide/Job Aid for Managers
Compensation
Salary Planning 2017
1.
Compensation Philosophy
2.
Market Reference Values
3.
Implementation
4.
Types of merit treatment
5.
Salary Planning Applications: US/Canada/Mexico
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PMP 2016 HR Briefing | HR SL POD | July 2016
Compensation Philosophy- LEDVANCE AME
Pay at LEDVANCE
• Is competitive to market
• Is internally equitable
• Rewards performance that supports LEDVANCE’s business objectives
Salary Planning offers an opportunity to reward performance
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PMP 2016 HR Briefing | HR SL POD | July 2016
Market Reference Values
Market Reference Value (MRV)
Definition:
LEDVANCE establishes a Total Target Compensation Market Reference Value (MRV) for each position.
Market position (%) = Total Target Compensation (base salary + bonus target) / MRV
MRVs
MRVs Do Not:
• Give HR and Managers a reference point
to determine employee pay
• Determine the exact pay level appropriate for
employees
Market Position compares an individual’s pay to the market. The recommended range is 85%-115% to market.
Market Position
85%
• Meets minimum
qualifications
Indicators
• Newly promoted
• New in function
90%
•
Need to develop certain
skill and / or knowledge
100%
•
•
Meets all job objectives
Fully experienced
110%
115%
• Cross trained
• Special skills
• Performer with potential
• Talent
• High potential
• Top Performer
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PMP 2016 HR Briefing | HR SL POD | July 2016
Implementation
Merit Budget:
• The Board approves the budget for each country.
• Expressed as a %
• The budget is a finite pool of money that managers have to allocate to their employees.
Pay for Performance:
• The Total Rewards AME team will model merit guidelines in alignment with the approved budgets
• Performance rating (TRR) correlates to increase in pay or lump sum awards
• Managers allocate their merit budget to their employees based on the following factors
• Performance compared to individual objectives
• Performance compared to peers’ performance
• Pay compared to market
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PMP 2016 HR Briefing | HR SL POD | July 2016
Types of Merit Treatment
1. Merit Increase
• Increase to base salary linked to individual performance
• Effective January 2017
2. Lump Sum Award
• Reward linked to individual performance distributed as a one time payment.
• Rewards employees for performance without further increasing the premium salary they are receiving
Lump Sum Guidelines
US/CAN/MEX
If an employee’s market position is 121%-129% at least half of their merit must be paid as a lump sum.
If an employee’s market position is 130% or higher, their entire merit must be paid as a lump sum.
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PMP 2016 HR Briefing | HR SL POD | July 2016
Salary Planning Applications
US/Canada/Mexico
HR Infonet Click here for HR Menu
Compensation Salary Planning 2017
Three applications:
• US/Canada Salaried
• Mexico
• US Hourly
 Only Exeter
*Only local managers can access these applications
Key Dates:
• October 5 - US/Canada opens
• By October 21 TRR scores will be uploaded
• November 14 - Mexico opens
• November 28 – All Applications close to Managers at 5pm EST
• December 7 - Merit memos available for Managers to print
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PMP 2016 HR Briefing | HR SL POD | July 2016
Salary Planning Applications
US/CAN
US/Canada (Salaried): 10/5/2016-11/28/2016
• Who: All salaried employees in the US and Canada hired before 10/1/2016.
• What you will see:
• All salaried employees who report directly/indirectly to you.
• 3 budgets: US, Drummondville, and LEDVANCE Ltd. (Mississauga)
 All CAD pay is blue
• What you will do:
• Enter % or $ amount for each employee
• Approve your employees increases
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PMP 2016 HR Briefing | HR SL POD | July 2016
Salary Planning Applications
Mexico
Mexico (Salaried): 11/14/2016-11/28/2016
• Who: All salaried employees in Mexico hired before 10/1/2016.
• What you will see:
• All salaried employees who report directly/indirectly to you.
• Budgets by location (Juarez, Mexico City, GSS)
• Monthly base salaries and monthly Comp 1 MRVs
• What you will do:
• Enter % or Peso amount for each employee based on TRR performance rating
• Approve your employees increases
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PMP 2016 HR Briefing | HR SL POD | July 2016
PMP 2016 – EVALUATION PHASE – CONTENT
Reduce Complexity (FY 2015 approach to be continued)
Salary Planning
Guiding Pulse
A merit increase is an increase to an employee’s base salary that
is linked to individual performance for the past year. Lump sum
payments can be awarded in lieu of a salary increase.
Merit increases and Lump Sum payments are not
automatic. Merit increases are earned through job
performance.
The budget for Salary Planning is a finite amount of money.
Managers are responsible for distributing their merit budget to their
employees based on comparative performance and staying within
budget.
Managers determine employee increases by considering the
following factors:
• Performance compared to individual objectives
• Performance compared to peer performance
• Pay compared to the market
A key driver to adequately discuss individual
compensation is market benchmarking
(Market Reference Value – MRV).
The MRV gives HR and Managers a reference point to
determine pay. An employee’s pay can be above or below the MRV
depending on their level of performance, knowledge, skill, etc.
New Managers
1.
Employee Feedback
• Writing a Performance Review
• Feedback Dialogue
2.
4Success How Tos
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Step 1: Pre-Dialogue with Employees
Purpose of the pre-dialogue with employees is to allow the employee a platform to showcase their
achievements and share their inputs for how well they feel their targets were achieved.
• Employees should come prepared to the meeting with their self evaluation complete
• This is a time for Managers to ask questions regarding the employees overall achievements from
his/her perspective
Reminder: Final Year-End Feedback Dialogue occurs after all results have been calibrated (December)
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Step 2: Contact relevant peers,
internal and external customers for input
For your convenience, we have created a
Performance Feedback Request Form you can
send to your direct report’s peers, internal and
external customers for input.
This feedback is essential to ensuring you have a
holistic view of your employee’s daily interactions
and overall project impacts.
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Step 3: Writing a Performance Evaluation
• Comprehensive, Meaningful, and Constructive
• Highlights projects done well and/or not as well
• Focus on observable behaviors, facts and outcomes
• Provides commentary on what was done well to encourage repeat behavior
• Gives evidence of what was not done well with suggestions for improvement
• Focus on the impact of each goal/result
• Link achievements to new LEDVANCE values
• Be direct and objective, avoid judgmental comments and use specific examples with peer(s), internal and
external customer(s) input when possible
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Performance Review Examples
Poor Examples:
•
•
Great job, keep it up!
I’m very disappointed in the progress that has been made thus far. Feedback has not been good regarding Sally’s
interactions with the team and she needs to step it up. She is producing much less than her colleagues, Shivdeep and
Patricia.
WHAT IS WRONG WITH THESE EXAMPLES?
Good Example:
•
Sally has served as a key resource to move this project into the next phase. Timeline reviews on all key documents despite heavy
workload has kept the project timeline on target and is appreciated by her peers. She has ensured key stakeholders and myself are
up to date on project issues through a weekly report which highlights key issues of concern for discussion. Sally’s ISO-9000
knowledge is solid and her peers often pro-actively seek her advice. Her impact on the project has been significant, a few key
examples include suggesting the change in a regulatory response which ultimately gained buy in for key specification and the
creation of a streamlined approach. Great job! In FY17 I would like to see Sally share her opinions and speak up more in the team
meetings prior to decisions being made. Sally has strong communication 1:1 but her valuable insights could be implemented more
readily if she shared in the moment with the team.
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Step 4: Final Feedback Dialogue
Components of 30 minute dialogue:
• Review and discuss each target individually
• Share Total Results Rating (TRR)
• Assigned Individual Performance Score (IPP) if applicable
• Feedback from peers(s), internal and external customer(s)
• Placement in potential matrix
• Approved Merit Increase
• Acknowledge performance and thank employee for their
contributions
Employee’s should leave the conversation…
1. Understanding what they did well and where they have
opportunities for improvement
2. Knowing there will be a developmental discussion in
February/March 2017
3. Having an initial view of FY17 Targets
4. With a big picture view of the impact of their contributions and
how those contributions fit into LEDVANCE strategy




Carve out a minimum of 30 minutes
Ensure no interruptions
Turn your phone off
If face-to-face-, sit at a table or in adjacent
chairs, not behind your desk and computer
screen
 If virtual, consider screen sharing to walk
through results step-by-step
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
LEADlight Job Aid for Managers
Have more questions on how to
deliver effective feedback?
LEADlight is a new resource portfolio
of tools and ideas to maximize your
skills for effective management and
leadership.
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
4Success System – How to Log In
LEDVANCE Digital Doorman Link:
https://dd.osram.net/DigitalDoorman/
1. Select “4Success LEDVANCE”
2. Click “enter 4Success
LEDVANCE” button
3. Select “OSRAM Authentication
Americas” and type in your
password
If you are having system or authentication
issues, please submit a service request:
https://lightweb.sylvania.com/apps/helpdes
k/NAFTA_en/default.aspx.
All other systems issues - email
[email protected]
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
4Success System Landing Page –
Once you’re logged in!
Your To
Do List!
Short (5 minute)
comprehensive
process overviews
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
4Success System – How to Route Forms
You can route a form to each require step in the
system, by clicking on each from. Scrolling to the
bottom and clicking the appropriate button.
By Friday, September 30th: route all employees forms
to the “Round Table Step”
By Friday, December 30th: route all employee forms to
the “Employee Feedback” step for e-signature
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Employee Release and e-signatures
• Employee reviews the form which is
available in the To-Dos and acknowledges
the dialogue with the Manager.
• Employee may add separate comments to
the form in case he/she does not agree
with the feedback
• Employee signs the form, releasing it to the
manager for e-signature and completion
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Manager Signature – due by Friday, December 30th!
• Manager reviews and signs the form,
completing the Employee Feedback form
and process with the employee
You’re done!
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
Form Complete
• The complete form is then sent to the employee’s and manager’s completed folder on the Performance
tab, for future reference
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FY16 PMP Manager Briefing | Org Effectiveness & Development | September 2016
THANK YOU!!
Any questions?