Performance Management and Incentive Plan

Purpose of the Plan To nurture, motivate and retain the top contributors to the bureau’s success To pay top performers better than 75% of competitive practices and average performers better than 50% (the average) To encourage highly responsive, creative, proactive, problem-solving.

Purpose of the Plan To facilitate teamwork and pride in the organization by rewarding bureau-wide and team as well as individual performance and integrating objectives up, down and across the bureau. To be inspirational, and to focus on sound leadership and management processes.

Purpose of the Plan To focus on direct accountability for stretch-but-achievable end-results. 7. To reflect the values of the organization.

Pay for What Performance? Approximately five business objectives called “Personal Performance Objectives” Core Competencies – the skills and talents required to accomplish the business objectives These are evaluated quarterly by your supervisor.

Cascading Objectives From the overall Mission of DCVB Objectives cascade from the next senior level… From the overall Mission of DCVB To Bureau Performance Objectives To Team/Division Objectives To Each Individual

Personal Performance Objectives 5 or so of the highest priority business objectives for each job based on a collaboration between each of us and our supervisor including: Performance Criteria Performance Standards Performance Measures

Personal Performance Objectives Bureau-wide Performance Objectives Team Objectives Personal Performance Objectives (individual)

Sample PPO Coordinate preparations for meetings including clearing calendars, promoting attendance, setting up venues, issuing meeting notices and distributing materials. Standard – Understand the timelines for each meeting and work backwards to set a plan to reach deadlines. Measurement -confirmations and attendance completed 2 days out, meeting room set-ups done 30 minutes before anticipated arrival time and adequate parking is available. WSB’s are kept up to date. Materials are proof read and presented professionally. Guests to DCVB are greeted cordially upon arrival and ushered to the meeting room.

Sample PPO Serve Visitors to Durham by making them feel special, extending their length of stay and encouraging them to spend more dollars in the community   Assure that every meeting & event planner receives service information from DCVB within 7 days of booking and by making personal contact a minimum of two other occasions for each group. Encourage 40% of all groups to utilize DCVB collateral and general services (against a benchmark of 31%). Encourage 20% of groups to utilize advanced services, such as a DCVB information table, registration assistance, spouse tour info, banners, etc. (against a benchmark of 15%).

Goal-setting Course Corrections Objectives are annual, expressed in quarterly YTD terms and may be updated quarterly or when required. Course corrections may be implemented by the next level of management (often on the recommendation of the plan participant).

Goal-setting Course Corrections Course corrections are important because: We need to be flexible to respond to situations outside our immediate control. We want goals to be stretch-but-achievable.

Performance Reporting The 3P’s PROGRESS against the plan PROBLEMS encountered PLANS for the next reporting period These are reported monthly

Core Competencies The skills and talents necessary to do the job. For example: Organization and time management Attention to detail Communication skills Interpersonal skills Dependability Team orientation

Core Competencies These are evaluated in your trial period, and then annually at your annual review. At the annual review, achievement of your PPO’s is weighted at 70% of your review and core competencies are weighted at 30%. On other quarters, achievement of your PPO’s will comprise 100% of your review.

Salary Components Base Salary Incentive

Salary Components Base Salary - The portion of your pay that is guaranteed with no fluctuation. Incentive – The portion of your salary that fluctuates based on accomplishment of your personal performance objectives. The risk and potential reward is based on direct accountability for end-results 85/15, 80/20, 75/25, 70/30

Salary Components There are 26 pay periods in a fiscal year (paid bi-weekly on Fridays). Each paycheck will reflect your base salary and your targeted incentive (at a 6-level) At the end of each quarter you will have a performance review, and if there is any additional incentive owed, it will be paid then in a lump sump.

Salary Components Example: You are paid a salary of $30,000 80% is base and 20% is incentive. $24,000 Base 6,000 Target Incentive $30,000 Target Compensation Bi-weekly pay is 1/26 of $30,000 or $1,153.85

Salary Components Actual salary could be higher than the target, because the incentive amount can grow or shrink based on achievement of objectives.

Cultural Implications Dramatically increased levels of teamwork as everyone works together on achieving mutually supportive objectives Bias toward action Bias toward prudent risk-taking Individual and team accountability Increased urgency

Cultural Implications Remember – the most important part of DCVB’s performance management system is: It’s meant to be fair The goals are meant to be “stretch-but-achievable”