THE BURNING PLATFORM IN PERFROMANCE &TRAINING DEPARTMENT BY BEATRICE KANDIE EASTERN HYDROS COPI FORUM 16TH MARCH 2017: No part of this report may be circulated, quoted, or reproduced for distribution outside KenGen without prior written approval from KenGen. This material was prepared by the Human Resources & Administration Division use and purposes of the division only.

Performance Management- What, who, why, when and how FOCUS AREAS IN THE DEPARTMENT Performance Management- What, who, why, when and how Learning and Development- current changes in policy Career Planning and Succession Management- where are we on this? Change Management- what are our priorities

PRIORITY INITIATIVESW JOH-KGN001-20071109-CA-P1 we have adapted our horizon II strategy and are focusing on 7 key initiatives Further detailed Improve returns of current plants (OPEX) Ensure profitability of future projects (CAPEX) Improve PPAs and tariff regulations Pursue new financing approaches (e.g., partnerships-SPV, asset monetization) Establish new structures to execute and finance projects (KenGen A/B/C) Deliver current pipeline and access new geothermal fields (e.g., Magadi, Suswa, Longonot) Improve organizational health and build required skills/ capabilities (e.g., SPV creation, motivation) 1 2 3 4 5 6 7 Priority initiatives Vision: To be the market leader, in the provision of reliable, safe quality and competitively priced electric energy in the East African region Strategic pillars Organisational health Enhance annual plan- ing and budget Foster innovation and continuous improvement Upgrade IT support/ enablers Capital planning and execution Operational excellence Regulatory and financing Optimise maintenance practices and increase availability Reduce operational and overhead costs Improve operational processes and structure Drive performance management1 Improve leadership health Achieve people readiness for growth2 Improve PPAs/ tariff regulation Implement new CAPEX planning and execution processes Effectively deliver current projects Expand geothermal capacity, incl. new fields Establish new models Pursue new financing approaches +4,100 MW by 2025 1 Incl. talent management, promotion/succession planning, women’s motivation 2 Incl. FTE growth and skill/capability building SOURCE: Team analysis

Performance management What Employee performance management is the systematic process by which a company strives to improve organizational effectiveness and productivity through goal setting, tracking, monitoring and optimizing employee behavior and activities. How Accountability framework Performance Management Process Performance appraisal tool/rating Why Importance of PM Who Ideally all employees but currently done by Management staff

Performance management KENGEN’S 5-STEP PERFORMANCE MANAGEMENT PROCESS Focus of today 1 Monitor and improve process Develop business plans to set targets Develop performance agreements Incentive framework Take corrective actions Ensure rewards for good performance and manage poor performance 5 Performance agreements Choose SIs & SLA.s and set targets. Create budgets and plans Sign off performance agreements. Ensure rewards and conseq-uences 2 Performance management Measure and report Develop personal develop-ment and succession plans 4 Evaluate performance Personal development and succession plans Use performance evaluations as basis for promotions, personal development and succession plans 3 Measurement and reporting processes) Develop effective reporting systems to measure performance. . Cadence of accountability Performance evaluation and dialogues Track and evaluate performance Focus on having frequent and constructive performance dialogues Focus on Accountability amongst team members Focus on leadership role of supervisors in enabling team members execute on KRA.s Source: Team analysis

WHY EMPHASIZE ON PERFORMANCE MANAGEMENT …….. JOH-JHO780-20060215-AN-P1 WHY EMPHASIZE ON PERFORMANCE MANAGEMENT …….. Translates long-term organizational goals into near-term goals - Link goals to strategic business objectives. Performance Management Clarifies roles and expectations at corporate and business units level -outline performance expectations And goal setting. Provides framework for setting targets, measuring and tracking results, regularly, and assessing performance Focuses business units on areas of highest importance Facilitates sharing of best practices among different functions Source: McKinsey

ACCOUNTABILITY FRAMEWORK 2016/17 PART A EVALUATION CRITERIA Company Performance [60%] OVERALL COMPANY PERFORMANCE  Unit Wgt. Max Min (1)    PPA Availability Targets Annual (mode PPA %) (i)    Hydro KES Billion 7 9.105 (90%) >8.296 (82%) (ii)   Geothermal 10 17.034 (94%) >15.766 (87%) (iii)  Thermal 2 3.879 (85%) >3.651 (80%) (iv)  Wind 1 0.546 (85%) >0.514 (80%) Sub-Total   20 30.564 B 28.227 B (2)    GoK PC Status Ratio 5 Excellent (0 – 2.4) >Very Good (2.4 – 3.0) (3)    Return on Invested Capital % 15 9 (4)    Projects Execution 95 >85 Total 60

PERFORMANCE MEASUREMENT CRITERIA : PART A SCORING PART B: Divisional Performance [40%] Part B DIVISIONAL PERFORMANCE Actual  Unit Score   Max Min (1)     Service Level Agreements (SLAs) % 10 100 - X (2)     GoK PC Performance 5 (3)     Strategic Initiatives 15 (4)     Behavioral Attributes (BA) Sub-Total 40

How -Performance appraisal RATING DEFINITION 5 = Exceptional Exceeds expectations by a substantial margin (Greatly exceeds set standards.)   4 = Above Average Exceeds Requirements/Expectations (Exceeds set standards) 3 = Average Meets Requirements/Expectations (Meets set standards) 2 = Fair Needs improvement (Below set Standards) 1 = Poor Poor / Unacceptable (Far below set Standards)

How -Performance appraisal Scale Description Performance Behavior 5 = Exceptional Work expectation is consistently exceeded. Quality of work is consistently superior Always and exceptionally demonstrates the required behavior and serves as a role model   4 = Exceeds Expectation Work expectation is sometimes exceeded and quality of work is excellent. Consistently demonstrates exceptional behavior. 3 = Meets Expectation Accomplishes what is expected andquality of work is good. Demonstrates required behavior.

How -Performance appraisal Scale Description Performance Behavior 2 = Needs Improvement Only achieves some work goals, not all. Often, does not meet expected quality standards.   Rarely demonstrates required behavior. 1 = Poor/ Unacceptable Work is repeatedly below expectation and / job requirements. Rarely achieves established goals. Requires significant improvement. Does not demonstrate required behavior, requires significant improvement.

Current challenges Low return rate of performance agreement forms- currently at 25 % Performance reviews –return rate at 76% Performance Rating- people are overrated ( Most staff rated at A &B)- Does it reflect our true performance Tracking of performance – use of Performance boards has not been active

If the plan does not work, change the plan, not the goal…….. Anonymous

Learning and Development Training plans 2016-18 ( focusing on prioritized areas) 70:20: 10 Model of Learning- current focus Use of internal trainers Block programs vis viz open program- optimizing resources Evaluation of training for impact assessment and ROI ( use of reports, knowledge sharing through COPI, departmental meetings, online feedback using surveymonkey)

Changes in L&D CLAUSE CHANGE INTRODUCED Eligibility of training programs Employee should have served for period of two (2) years to be eligible for reimbursable self-sponsored programs   Employees on contract terms also eligible provided that they have a balance of one year (1) continuous service Eligibility to PHD programs will require staff to have served for a minimum of 5 years and should be level 4 and above. However level one and level zero are excluded from this rule due to their positions

Changes in L&D Leadership and management development programs This outlines how to handle the leadership development programs Conference and benchmarking tours This outlines how to implement conferences and benchmarking for best practice Other training options Other options include job rotation, coaching and mentoring, twinning and attachment to suppliers and manufactures Reimbursable self-sponsored training program An employee is eligible for only one program in each of these category certificate, Diploma, Masters and PHD

Changes in L&D Subscriptions to professional bodies Company will reimburse subscriptions to professional bodies for staff in various professions upto a maximum of two (2) professional bodies Evaluation of training Every employee attending training will be required to submit a standard report after training   Supervisors will be required to evaluate staff action plans from training Company will avail fora and channels of sharing information obtained from training or conference. Employee who fails to share knowledge gained from training will not be accorded any other opportunity until they share the information

Bonding Agreement Employees undertaking self-sponsored programs shall be bonded according to the amount reimbursed for tuition   Bonding will also be done guided by cost spent on individuals for short term programs Bonded employee will not be allowed to transfer to another department for a period of three (3) years unless the department being considered has a similar function to the former and required similar skill set

Career Planning Definition Career planning is a process through which companies identify, grow and flow talent through all the levels in order to consistently deliver corporate goals Current status A job evaluation in 2010 resulted in 7 levels and expanding the job grading structure to allow room for progression A job analysis is being carried out to distinguish jobs from each other Thereafter Preparation of career maps will be done to inform employees on possible progression trajectories

Identification of critical roles and competences they require Career Planning Identification of critical roles and competences they require Expected outcomes Harmonized job titles Seamless talent movement at all levels Development of company critical skills which are rare in the labour market

Succession Planning Succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace employees who leave an organization. It is a dynamic process focused on securing the future talent of the organization. It reaches across levels and is focused on creating a pool of talent that is available to meet the needs of the organization at multiple levels.

Breaking the silos- Teambuilding activities one KenGen one team Change Management Breaking the silos- Teambuilding activities one KenGen one team Good stewardship of resources- reduce the misuse and wastage Time Management

JOH-KGN001-20071212-JvW-X1 THANK - YOU