1. Achievement & Development Process (ADP)

2. Outcomes of Session
Understand your role in a Performance Management Process
Understand the four elements of the Achievement and Development Process - Goal Alignment - Continuous Feedback - Summary Discussion - Human Resource Review

3. Why have a Performance Management Process?
Clear Expectations of the Individual
Aligned Goals
Clear Performance Understanding
Career Development Plan
Plan for Individual Improvement in the position
Evaluate Corporate Resources (individuals)
Individual Income Management
Manage individual Expectations
Open two-way Communication

4. Performance Management Components
Achievement & Development Process
Balanced Measures
Training & Development
Performance Management
Career
Development
Staffing Strategy
Compensation Strategy

5. ADP Process Process by which we can: Set individual performance goals
Review performance against goals
Plan future goals
Determine equitable compensation
Support individual development
Aid individuals in career planning

6. Achievement and Development Process
Elements of ADP
Achievement and Development Process
Goal Alignment
Continuous Feedback
Summary Discussion
Human Resource Review
SUCCESS

7. Goal
A desired result that increases customer satisfaction and/or improves processes to attain business objectives;
A desired result that contributes to employee growth and development

8. What is Goal Alignment?
Process used at all levels of the organization for setting goals that are consistent with and supportive of with the goals of:
the next level up and down - Vertical
key customers - External
key partners within the company - Horizontal

9. Goals/COTs - Definition
Business Goals: macro, high level, business results/objectives; there can also be higher level business unit/process area goals
Individual Goals: Your business unit/process area objectives that support the Business Goals.
Critical Operating Tasks: specific actions key to the achievement or in support of corporate or business/process area goals

10. ADP Goals/COTs drive...
Individual / team accountability for achievement of results – performance
“pay for performance” compensation through merit increases and incentive pay

11. Goal Setting/COT Alignment Process
Goal Setting/ Alignment
Review and update during year
Review higher level goals
“How do we/
should we contribute?”
Our Goals
Determine team and individual work
Develop COTs
“Are goals/COTs aligned?”
“Do goals/ COTs meet criteria and guidelines?”
Develop action plans for goals
begin

12. Constructing A Goal/COT Statement
Answers the question: “What am I/are we committed to achieve?”
Begins with a concrete, action word
Focuses on what is to be achieved and when, not how it is to be accomplished
Is objective, clear and concise
Is specific with timing

13. Effective Goal/COT Development Checklist
Specific...describes end results
Meaningful...contribute to accomplishment of business goals
Aligned with other goals...linked with higher level goals & goals across organization/between functions
Realistic and attainable...a manageable number within your control
Timing and measurable..include a deadline
Balanced...include process improvement & end result achievement; team and individual results

14. Vertical Goal Alignment Example
Corporate Goal
Achieve sales of “X” dollars for (year)
Business Unit Goal
Achieve sales of “Y” dollars during (year)
Western Region Goal
Gain additional market share by July, (year)as follows: Missouri: 40% Texas: 42%
Sales Representative COT
Identify 10 new target accounts and convert at least 5 by (year)

15. Horizontal Goal/COT Alignment Example
Western Region Goal
Gain additional market share by July, (year) as follows: Missouri: 40% Texas: 42%
Establish production schedules for (yr.) and beyond to support new business with no loss of efficiency levels within the plant
Plant Production
Identify 10 new target accounts and convert at least 5 by June, (yr.)
Sales Representative

16. Achievement and Development Process
Elements of ADP
Achievement and Development Process
Goal Alignment
Continuous Feedback
Summary Discussion
Human Resource Review

17. Continuous Feedback Review
What is Continuous Feedback?
Leader’s role
Continuous Feedback Process
feedback sources
feedback topics
soliciting feedback
good feedback
development planning

18. What is Continuous Feedback?
Process for individuals and teams to collect feedback from managers, peers, co-workers, customers, and suppliers to assess performance against goals, customer satisfaction, and developmental needs
Feedback is continuous and collected on an on-going basis via informal and formal means
Feedback should capture both the “what” and “how”
what was achieved
how was it accomplished

19. Benefits Of Continuous Feedback
Allows employees to collect specific, actionable information directly from individuals with whom they work most closely. This information can be used to improve:
individual performance
work processes
relationships with others

20. Continuous Feedback Process
Identify feedback sources
Evaluate Progress
Solicit feedback
Develop and Implement Action Plan
Document & interpret feedback
Prepare & Lead ADP summary discussion with leader

21. A Feedback Source is someone who...
Identify feedback sources
A Feedback Source is someone who...
you work with on a regular basis
can provide information about how your work is going
is familiar with your goals/COTs and achievement toward them

22. Possible Feedback Sources
Identify feedback sources
Possible Feedback Sources
Your feedback sources should include:
yourself
your leader
peers & colleagues
team members
cross-process team members
internal and external customers/suppliers

23. Feedback Topics Progress on goals/COTs
Solicit feedback
Feedback Topics
Progress on goals/COTs
Meeting your customer’s needs & expectations
Interpersonal skills
Work habits
Quality of work
Leadership characteristics and job competencies

24. Formal Surveys Two versions: leader (also two versions; cost)
Solicit feedback
Formal Surveys
Two versions:
leader (also two versions; cost)
individual contributor (no cost)
Available electronically via HR Online

25. Document & interpret feedback
Good Feedback
Is informal and ongoing
Relies on combination of sources and methods used to collect it
Comes from asking open questions
Depends on active listening
Is specific, based on examples, and actionable
Develops over time
Usable for improvement

26. Receiving Feedback Listen attentively
Remain calm, objective, and open-minded
View all information as potentially useful
Ask for specific examples
Avoid rejecting, defending, or justifying
Paraphrase or summarize to clarify understanding
View it as a challenge & opportunity for development
Thank the person for the input
Give the feedback time to digest

27. Giving Feedback Begin by using the word “I”. State your Feelings
Describe the Behavior in specific terms
Be prepared to give Examples
Give the Reasons for your feelings
Explain What you would like the other person to do
Ask for Agreement

28. Competencies Categories of behaviors key to roles performed at OC
Solicit feedback
Competencies
Categories of behaviors key to roles performed at OC
Typically used during interview process
Examples:
communication
teamwork
problem solving
customer focus
Use these in soliciting feedback and to outline strengths & areas for development

29. Achievement and Development Process
Elements of ADP
Achievement and Development Process
Human Resource Review
Goal Alignment
Continuous Feedback
Summary Discussion

30. What is a Summary Discussion?
Leader and employee have a discussion on the following:
performance against goals
summary of feedback collected, how those learnings were applied
strength/development area identification
career growth (short and long term)
development needs and plan
Formal documentation once per year (based on reviews during the year)

31. Characteristics Each business determines the timeframe
Leader and employee both prepare and discuss
Leader acts as coach
Focuses on achievements and development
Forward looking
new goals/COTs for the year
development needs & career objectives
Leader and employee share feedback

32. Preparation Summarize
overall performance & achievements against goals/COTs
feedback received
Identify:
strengths & developmental areas
Tie to Competencies
career planning (short & longer term)
development needs/actions
possible new goals/COTs
Use common electronic format for summary discussion

33. Goal/COT Alignment

34. Competencies Leadership Characteristics Job Competencies
Supporting Tools:
Leadership Characteristics
10 Characteristics that have been identified by the Sr. Leadership Team
Job Competencies
Also known as Targeted Selection interview dimensions
Competencies by Function
Provides selected Characteristics and Competencies that should be reviewed for employees in specific functions.

35. Position Description
The ASM is responsible for development and implementation of a territory business plan defining distribution, product, pricing and promotional strategies (including System Thinking concepts and processes) for designated retailers and distributors of Owens Corning building material and composite products. This position drives the generation of sales growth for the Roofing, Insulation, Composites and Exterior Systems Business Units within the assigned area which may have approximately $8-$10 million in annual sales volume. Strategies include account conversions, product upgrades, new product introductions and effective use of internal and external sales support resources to build customer partnerships.
The ASM works with product and sales teams including a customer service support team for the region. The ASM manages local pricing to build profitable businesses across multiple product lines. Building customer relationships is key to delivering outcomes, along with working through a variety of markets and channels of distribution. The product mix includes glass, insulation, roofing, foam, siding, and windows. The markets and channels of distribution include one and two step distributors; buying co-ops, retail store chains, and national accounts. Performance requirements include achievement of sales commitments by business unit; emphasis on profitable product mix; focus on the customer’s customer; and management of expenses within a budget. Key competencies include tenacity, problem solving, risk taking persuasiveness, responsiveness, independence, customer focus, work standards, teamwork, and communication skills.

36. Leadership Characteristics
Catalyst for Change
Good Listener
Communicates Openly and Seeks Information
Creates Teamwork Climate
Seeks Personal Growth
Personal Confidence
Personal Integrity
Encourages Individual Dignity
Sense of Urgency
Sense of Humor

37. Competencies

38. Leader’s Role Initiates process and schedules final review
Preparing for discussion as employee does
Responsible for seeing that all elements are covered
Provide own feedback
Reality check on performance results, strengths/development areas, career objectives & development plans
Coach employee
Ensure Summary Discussion Form is documented and signed

39. The Bands 2 3 4 5 6 7 8 Officers Senior Leadership Leadership
Managers,
Senior Individual
Contributors 3
Supervisors,
Professional,
Analysts
$120,000 to
$520,000 4
$90,000 to
$300,000 5
$65,000 to
$175,000
Technical 6
Owens Corning uses eight bands to encompass all of its job classifications, from administrative employees to officers of the Company. As you can see, there is a broad range of pay for each of the bands, and the bands overlap each other. This provides flexibility in many ways - for example, it reduces the risk that an employee will see a decrease in pay for making a career change.
$50,000 to
$140,000
Administrative 7
$30,000 to
$100,000 8
$20,000 to
$70,000
$15,000 to
$55,000

40. How does my evaluation affect my pay?
Performance evaluation is one tool that is used in determining an employee’s merit pay.
Focus on past year performance, multiple input from multiple levels
Overall achievement
Look at contributions to assignments; were improvements made or were processes done more efficiently

41. Compensation Goals
Reward fairly for your contribution to Owens Corning’s success
Provide a competitive compensation package
Align compensation with individual and Company performance
Provide flexibility for both the Company and you
Owens Corning’s goals for our compensation program are based on our total compensation philosophy:
Reward fairly for your contribution to the Company’s success;
Provide compensation that’s competitive with the external marketplace;
Make sure your compensation lines up with your individual performance and the Company’s performance; and
Provide flexibility for both the Company and you. You’ll see some examples of how this works later.

42. Major Surveys Used to determine market values
Organizational Resource Counselors (700 companies)
Hay PayNet - Next generation of Hay survey data (500 companies)
Owens Corning uses compensation data from major surveys to set market values for its jobs. For the United States, we use surveys from two highly reliable organizations,
Organizational Resource Counselors, which compiles compensation data on about 700 companies in the US, and
Hay Group PayNet, which surveys about 500 companies.
Both of these survey instruments allow us to access data on comparable, “peer group” jobs. For positions that are highly specialized, the Company may use other survey data.
Both allow for peer group specification
Other surveys may be used for specialized positions

43. Determining Merit Pay Focus on performance, achievements, feedback
Look at contributions to assignment
Consider current salary in relation to market value and band ranges of assignment
Consider amount and date of last increase
Administered within salary budget
Let’s take a look at how salaries are administered, beginning with how merit pay is determined.
As we mentioned previously, your individual salary depends on more than just the market value of your job. It also depends on your performance achievements and feedback about you. Owens Corning also looks at your individual contributions to your assignment, your current salary level, the amount and date of your last pay increase, and the Company’s annual salary budget.

44. Determining Incentive Pay
In addition to salary
Driven by business goals
Awarded against a predetermined plan
Parameters are set
Paid per individual and/or team performance against plan
May have a management discretion component
Can be eliminated at any time at the company discretion

45. Achievement and Development Process
Elements of ADP
Achievement and Development Process
Goal Alignment
Continuous Feedback
Summary Discussion
Human Resource Review

46. What is an Human Resource Review (HRR)?
A process in which leaders of the company meet to discuss the status of the company’s human assets
Follows Achievement and Development Summary discussions
Among leaders of a particular organization (NLT’s)
Facilitated by Human Resources Representative

47. HRR Focus Human resource implications of business strategy
Potential organizational structure changes
Needs of selected employees
Potential job movements
Training & development needs
Succession planning
Diversity opportunities
Inventory of organizational skills
Recruiting needs

48. HRR Outputs Plans for job movements, succession planning, recruiting
Development needs
Feedback to Training and Development organizations
Shortfalls in structure, skills, training, and manpower

49. Key Leader Staffing Process
Identify
Open Position
Review interview data
and determine if offer
will be extended*
*Selection of non-Succession
Plan participant must be
validated by Senior VP of HR
Outline Job Specifications
Responsibility: HR Leader
Staffing Leader
Sourcing Procedure:
- JOBB Posting
- Internal review of key succession
plan information
- External Search as necessary
- Executive Team communication
and nomination
- Diversity nomination
- HR Leadership Team Review
Responsibility: Staffing Leader
Candidate Finalization
Review sourcing comparison
data and determine candidate
interview pool. (Provide status
update to Hiring Manager and
HR Leadership team.)
Responsibility: HR Leader
Conduct Interview
Panel consists of: Organization Senior Leader
Hiring Manager
HR Leader
Staffing Leader
Others as necessary
Responsibility: HR Leader

50. Questions? TM

51. Career Management ACTIVITY:
Ask the group to identify their objectives for this training session and record them

52. Career Management What is Career Management?
Your role in Career Management
Your leader’s role in Career Management
What tools and/or experiences are available for career management?

53. Career Management
Defining your career objectives, understanding your current performance, capabilities, aptitudes and then developing a plan to match your expectations.

54. Your Role in Career Management
You “own” this journey..only you can make the final decision about what to do or NOT to do
Consider:
Your contribution in current assignment
Your strengths and areas for development
Your short and long-range career objectives
Your developmental needs
Your potential to do other things

55. Your Role in Career Management
Select Tools to help define career objectives that include:
Interests
Motivation
Inventory of current capabilities (self)
Professional expectations
Personal expectations
What do you want to do?

56. Your Leader’s Role
Jointly determine what success is in your current assignment
Provide ongoing feedback about your performance
Ensure that career discussions occur
Provide a logical framework for review
Understand what resources are available to assist employees in this area
Understand career alternatives in OC
Be honest and direct regarding expectations
Your Leader’s role in Career Managment

57. What tools are available?
Achievement & Development Process
Personal Development Plan
Career Coaching Guidelines for Employees and Leaders
Education/Information on:
organization
roles/jobs
requirements
skills
experiences
competencies
Mentor

58. Key Steps Self - Assessment regarding interests
Gather information regarding opportunites
Explore and network
Engage leader an mentor
Develop action plan
Get in the game
Your Leader’s role in Career Managment

59. Mentoring Process

60. What is the Mentoring Process?
Mentoring helps employees develop and become a successful member of the team faster.
Mentoring helps transfer knowledge between seasoned employees and newer employees.

61. The Mentoring Process - Overview
Mentor-Mentee
Pairing
Potential Mentor Identification
Mentoring
ID Potential
Mentors
Assign Mentor to Employee
Mentee Initiates
Mentoring Session
Provide Mentor
with Information
Mentee Meets
with Mentors
Conduct Mentoring
Session
Maintain Mentor
Biographies
Mentee and Mentor
Agree to Relationship
Follow Up as
Necessary
Evaluate & Improve the Mentoring Process

62. Potential Mentor Identification
A positive role model of the company’s values and practices
Knowledgeable about organizational goals, policies, programs, and opportunities
Aware of the culture, trends, networks, and information resources within the organization

63. Potential Mentor Identification
Regarded as successful in their job
Skilled in setting goals, coaching, providing feedback
Strong in listening, communication, and problem solving
Committed to the process and effort

64. Mentor-Mentee Pairing
For new hires or transferred employees
Based on similarity and diversity of backgrounds and/or interests, willingness to mentor new hires, etc.
Meet to define relationship
The mentee can establish a relationship with a different mentor

65. Mentoring Process - Roles and Responsibilities
Mentors
Set realistic expectations
Make themselves available
Maintain consistent contact
Identify areas for personal development
Share business contacts

66. Mentoring Process - Roles and Responsibilities
Mentees
Initiate contact with mentor / plan meetings
Set goals for self
Open to feedback -- accept information without interpreting it as evaluation
Be candid about needs and deficiencies
Follow through on commitments/ seek help

67. Mentoring Process - Roles and Responsibilities
Mentees
Willing to discuss failures as well as successes
Do what is appropriate to build a strong relationship
Utilize resources provided for career growth

68. BUILDING SUCCESS IN A MENTORING RELATIONSHIP
Respect each other’s ideas & experiences
Realize ownership of the process is mutual
Seek additional support if necessary
Meet / communicate regularly