© 2002 General Motors PERFORMANCE MANAGEMENT PROCESS (PMP) Presented by: Cathy Martin Global PMP Integration Manager, GMU

© 2002 General Motors 2 Agenda Building a Performance- Driven Culture PMP Structure PMP Support Tools

© 2002 General Motors 3 Building a Performance- Driven Organization “One of our most important goals at General Motors is to build a culture of high performance and accountability in which leaders take personal responsibility for coaching and developing people, in addition to driving excellent business performance.” Rick Wagoner, President and CEO General Motors Corporation

© 2002 General Motors 4 Reward - Rewards top performers and is candid in coaching on performance issues Track and Coach - Tracks and coaches on results and behaviors Clear Goals Aligned to Business Results - Drives results with clear, measurable objectives System Components Spends enough time focusing on the capabilities of the people and the organization

© 2002 General Motors 5 PMP Guiding Principles Performance = Results x Behaviors Results are driven by clear, measurable objectives Behaviors are driven by actions outlined in four cultural priorities Performance drives pay Leaders are accountable for differentiating performance and pay Leaders must dedicate time to the process to do it right

© 2002 General Motors 6 Basic Tools Results PMP X Objectives based on business plan with stretch targets and metrics. Beha vior 360 Leadership behaviors focusing on 4 cultural priorities. = = Improved leadership driving excellent business performance. Grid Performance J X J  J X  X X 

© 2002 General Motors 7 Phase 1 Objective Setting: Identifying five to six high impact objectives with metrics and timing for the year  Identifying five to six high impact objectives with metrics and timing for the year Phase 1 Objective Setting: Identifying five to six high impact objectives with metrics and timing for the year  Identifying five to six high impact objectives with metrics and timing for the year GM’s Performance Management Process Individual Development Planning: Discussion between manager and employees Online construction of development plan  Discussion between manager and employees  Online construction of development plan Individual Development Planning: Discussion between manager and employees Online construction of development plan  Discussion between manager and employees  Online construction of development plan Phase 2 Midyear Review: Self assessment and Leader’s assessment on progress Midyear development discussion  Self assessment and Leader’s assessment on progress  Midyear development discussion Phase 2 Midyear Review: Self assessment and Leader’s assessment on progress Midyear development discussion  Self assessment and Leader’s assessment on progress  Midyear development discussion 360-Degree Feedback Process: All executives receive a 360-Degree Feedback assessment every other year to measure their alignment with the company’s leadership behaviors and values embedded in the four cultural priorities  All executives receive a 360-Degree Feedback assessment every other year o measure their alignment with the company’s leadership behaviors and values embedded in the four cultural priorities 360-Degree Feedback Process: All executives receive a 360-Degree Feedback assessment every other year to measure their alignment with the company’s leadership behaviors and values embedded in the four cultural priorities  All executives receive a 360-Degree Feedback assessment every other year o measure their alignment with the company’s leadership behaviors and values embedded in the four cultural priorities 3rd Quarter 1st Quarter

© 2002 General Motors 8 GM’s Performance Management Process, continued Phase 3 Annual Review: Similar process to midyear Includes discussion on 360 data  Similar process to midyear  Includes discussion on 360 data Phase 3 Annual Review: Similar process to midyear Includes discussion on 360 data  Similar process to midyear  Includes discussion on 360 data Reward: Annual review provides input into compensation decision  Annual review provides input into compensation decision Reward: Annual review provides input into compensation decision  Annual review provides input into compensation decision 4th Quarter

© 2002 General Motors 9 Setting Objectives Objective setting begins with business planning process at the top of the organization Objectives are cascaded down to the region, function, and department Employee has clear line of sight Objectives are allocated, not cumulated

© 2002 General Motors 10 Linking Objectives Allocated Objectives VS. Cumulative Objectives Leader Objectives:6 Direct Report 1 2 Direct Report 2 2 Direct Report 3 1 Direct Report 4 1 Leader Objectives:6 Direct Report Direct Report Direct Report

© 2002 General Motors 11 Purpose of Executive 360-degree Feedback Process Process where an executive gets feedback from Leader, Peers, and Direct Reports Help GM leaders determine whether they exhibit leadership behaviors aligned with the four cultural priorities Use in annual performance reviews to determine the behavior component of a leader’s performance Improve the executive’s job performance by providing feedback on their behavior

© 2002 General Motors 12 Rater Calibration Training Module Web-based training (30 minutes) embedded in the 360 system –Required to successfully rate three scenarios to start assessment process –If not successful - they are coached prior to starting assessment Course objectives include: –Define GM’s four cultural priorities –Identify the points of a seven-point rating scale –Identify attributes of effective, written comments –Identify common rating tendencies –Rate individuals accurately using seven-point scale

© 2002 General Motors 13 3 x 3 Performance Grid Grid Performance J X J  J X  X X  The 3 x 3 Performance Grid process and tool combines the results and behaviors of leaders. This focuses discussions on leadership capability which drives GM’s business performance.

© 2002 General Motors 14 PMP Support Executive Performance Management Web Site on ExecuNet NA Classified Performance Management Web Site –Presentations –Process and Forms –Training/Development Activities –Frequently Asked Questions Individual Development Plan Tool (for NA Classified Employees)

© 2002 General Motors 15 Midyear Review Web Tutorial

© 2002 General Motors 16 Midyear Review Web Tutorial, continued

© 2002 General Motors 17 Midyear Review Web Tutorial, continued

© 2002 General Motors 18 Individual Development Plan Tool

© 2002 General Motors 19 Reward Business Result$ Linking People, Performance & Result$ Q1Q2Q3 $ The PMP Business Plan Objectives Set Goals (linked to Business) Business Performance Track & Coach