-Performance Management 7 – ( Seagate ) Trends and Business Cases of :

© 2005 Wisepost Business Partners All rights reserved For Our Better Future 1 Performance Management & Best Practices

© 2005 Wisepost Business Partners All rights reserved For Our Better Future 2 Manage for Employee Goal Realization a global high-technology company providing storage technology and products as of 2002, employs more than 45,000 individuals and generates revenue of more than USD 6 billion  Case Description Seagate’s two-pronged approach toward embedding and enabling a strong track record of goal realization consists of executive level goal alignment workshop and an organization-wide goal cascade. Executive come together in a one-day off-site workshop to ensure that their annual performance goals are fully aligned. Deployment of a state-of-the –art online performance management system enables goal transparency and real-time goal management across the organization.  Goals  To set the organization up for success by managing aggressively and consistently toward the actual realization of carefully crafted and aligned goals.  Results The goal-alignment cascade fosters strong clarity of goals and alignment of efforts at the top of the organization. The CEO and senior executives value the outcome of the goal-alignment process and workshop so highly that they push to embed the cascade into each year’s fiscal planning process Organizations must involve employees in goal refinement, target setting, and the development of an efficient strategy to achieve goals. Further, organizations must provide maximum visibility of shared goals to ensure that employees’ activities are aligned with the organization’s mission and priorities. Practice 7 : Seagate

© 2005 Wisepost Business Partners All rights reserved For Our Better Future 3 Practice Driver  Conflicts and opportunities are not identified in goal setting Siloed geographies Siloed functions  Difficulty managing goals from corporate and individual levels CEO Goals EVP Goals VP Goals Manager Goals Team Goals Individual Goals I don’t know why my goal matters I don’t understand goal I am going to keep doing what I was doing last year

© 2005 Wisepost Business Partners All rights reserved For Our Better Future 4 Seagate Performance Management SystemGoal Workshop and Cascade Goal Setting and Alignment HR works with CEO and EVPs to update corporate objectives annually. HR facilitates goal-alignment workshop for CEO and senior executives. Executives work together to ensure goal consistency and to eliminate redundancies. Following executive goal alignment, goals are cascaded throughout the organization through the company’s new online performance management system. Goal Setting and Alignment HR works with CEO and EVPs to update corporate objectives annually. HR facilitates goal-alignment workshop for CEO and senior executives. Executives work together to ensure goal consistency and to eliminate redundancies. Following executive goal alignment, goals are cascaded throughout the organization through the company’s new online performance management system. Monitoring and Feedback HR meet with senior executives quarterly to ensure corporate objectives are updated. Changes are made if needed. Managers and employees are encouraged to discuss performance monthly or more often, if needed. Employees are encouraged to complete development plans based on new competencies for employees and leaders. Monitoring and Feedback HR meet with senior executives quarterly to ensure corporate objectives are updated. Changes are made if needed. Managers and employees are encouraged to discuss performance monthly or more often, if needed. Employees are encouraged to complete development plans based on new competencies for employees and leaders. Performance Evaluations Formal performance evaluations are conducted annually using the new automated system. Employees are alerted by the system to complete an self-evaluation that routes to the manager who is alerted to complete the final review online. Performance Evaluations Formal performance evaluations are conducted annually using the new automated system. Employees are alerted by the system to complete an self-evaluation that routes to the manager who is alerted to complete the final review online. Rewards Performance ratings from the system are automatically fed back into the global HR system where they are used as the basis for annual salary reviews and annual bonus programs Rewards Performance ratings from the system are automatically fed back into the global HR system where they are used as the basis for annual salary reviews and annual bonus programs Goal Setting and Alignment Workshop Senior executives prepare goals for presentation to other executives Executive present goals and review them to ensure consistency and to eliminate redundancies. Goal Setting and Alignment Workshop Senior executives prepare goals for presentation to other executives Executive present goals and review them to ensure consistency and to eliminate redundancies. Goal Realization Cascade Once goals are aligned, executives cascade them to the organization through the company’s online performance management application. Managers use the online system to monitor goal process, ensure ongoing alignment, and minimize “friction points” impeding goal achievement. Goal Realization Cascade Once goals are aligned, executives cascade them to the organization through the company’s online performance management application. Managers use the online system to monitor goal process, ensure ongoing alignment, and minimize “friction points” impeding goal achievement. Practice in Context

© 2005 Wisepost Business Partners All rights reserved For Our Better Future 5 Goal-Alignment Cascade  Develop Goal Alignment Work Plan In order to accomplish goal alignment against corporate objectives, HR develops and drives a three-month strategic goal-setting and alignment process for senior executives prior to the start of the fiscal year.  Draft Executive-Level Goals Senior executives draft their goals with the help of an “alignment template” provided HR  Conduct Goal Alignment Workshop Following their individual goal preparation, executives convene as a group with the CEO and present in a full-day workshop  Identify Cross-Organizational Goal Misalignment At the workshop, executives present their own goals and review others’

© 2005 Wisepost Business Partners All rights reserved For Our Better Future 6 Goal-Alignment Cascade  Provide Support Tools to Identify and Resolve Goal Misalignment Seagate Goal-Alignment Checklist: HR provides a “checklist” of common alignment problems as a resource to aid executives in problem resolution Seagate Goal-Refinement Checklist: HR provides a refinement tool to help managers prioritize and reframe existing goals for downward cascading or adjustments across the year  Cascade Goals to Individual Level After the completion of the goal-alignment workshop, executive-level goals are posted online to facilitate next-level goal cascade  Make Goals Visible to Individuals at All Levels  Manage Goals Online Online application allows employees to adjust goals or create new goals as required, and provides managers with a series of performance reports like “Unaligned Goals Report,” and “Goal Snapshot Report.”

© 2005 Wisepost Business Partners All rights reserved For Our Better Future 7 Seven Trends Found in the Best Practices Linking Individual Performance with Company strategy Team Performance Management Frequent Feedback and Coaching Embracing a Culture of Performance Management Aligning Rewards and Pay with Performance Rewarding Top Performing Employees Automated Performance Management

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