1. PERFORMANCE MANAGEMENT 2010 March 2010
Introduction to 2010 Competencies and Performance Review Form

2. Key Topic Areas Talent Management Cycle New 2010 Competencies
2010 Performance Review Form
Timeline
Q&A
On-line demonstration of SuccessFactors System

3. Talent Management Cycle

4. New 2010 Herbalife Competency Categories
Passion
Achiever
Flexibility
Team Work
Communication Skills
Integrity / Ethics / Values
Distributor (Customer) Focus
Courage / Fortitude - Leaders
Business Acumen - Leaders
Gut Instinct - Leaders

5. Performance Management Program
Objectives for 2010
Align performance management and rewards and recognition globally with our core and leadership competencies
Simplify performance review form:
Reduced number of overall competencies to rate
*Added new “radio buttons” instead of “drop-down” box
*New Development Plan area
*Simplified Review Rating scale
*Included definitions for the rating levels on performance review
* Items covered during on-line system demonstration

6. Performance Review Form
Measurements
Number of competencies reduced from 2009 – 2010
No change to section weights
2009
2010
Supervisor and Above
MBO’s = 50% weight
4 Competency Categories
25 Competency Indicators
Competencies = 50% weight
10 Competency Categories
19 Competency Indicators
Staff
MBO section not rated
3 Competency Categories
16 competency indicators
Competency Weight = 100%
7 Competency Categories
12 competency indicators
New 2010 Competency Categories were added and some 2009 competencies were carried forward as appropriate.
Section weights are editable by manager. Contact HR before changing defaults.
Minimum weight per competency category is down to 2%, or up by a maximum of 3%.

7. Rating Scale Use same 1 - 5 rating scale: 5.0 = Outstanding
4.0 = Exceeds Expectations
3.0 = Fully Meets Expectations
2.0 = Partially Meets Expectations
1.0 = Does not Meet Expectations
Removed in-between options (example: high exceeds, or low exceeds). Reduces the number rating options from 12 to 5
Can still choose “not applicable”
Does not impact overall rating
Added definitions on the Performance Review form

8. 2010 Performance Review Staff Supervisor & Above MBOs 50%
These were developed with input HR and Company Executives to reflect the organization’s culture and to capture key factors that make an employee successful at Herbalife:
Staff
Supervisor & Above
Competencies %
. Achiever
. Communication Skills
. Distributor/Customer Focus
. Flexibility
. Integrity/Ethics/Values
. Passion
. Team Work
Development Plan
Document specific plans, goals, training programs or skills to be developed
Summary
MBOs %
3 to 5 individual project-oriented goals set at the beginning of the year
Competencies %
. Team Leader
. Gut Instinct
. Business Acumen
. Courage
Document specific plans for training programs or skills to be developed (Include Review Talent results)
Leadership Competencies

9. Competency Categories and Competency Indicators
Staff
Supervisor & Above
Competencies
1. Achiever
-Job Knowledge
-Reliability/Commitment
-Productivity
-Learning/Development
-Decision Quality/Problem Solving
2. Communication Skills
-Communicates Effectively
3. Distributor/Customer Focus
-Customer Orientation
-Builds Effective Relationships
4. Flexibility
-Flexibility/Adaptability
5. Integrity/Ethics/Values
-Integrity/Ethics/Values
6. Passion
-Initiative/Effectiveness
7. Team Work
-Collaboration
-Achieves Results
2. Communication Skills
3. Distributor/Customer Focus
4. Flexibility
-Leads Change
5. Integrity/Ethics/Values
6. Passion
-Inspires & Motivates
7. Team Leader
-Fosters Teamwork
-Empowerment
-Employee Development
8. Gut Instinct
-Gut Instinct
9. Business Acumen
-Business Knowledge
-Strategic Effectiveness
-Analytical Ability
-Persuasion & Influence
10. Courage
-Courage
Supervisor and above only

10. Levels of Performance
Outstanding: Very few employees fit in this category
Always performs at an exceptional level. Shows consistent and unusual initiative in the competency
Easily recognized by others outside their own group or dept.
Is a model example for others to follow. May mentor others
Caliber of performance is rarely equaled by others who hold comparable positions
Exceeds Expectations: Few employees fit into this category
Consistently accomplishes more than expected in the competency
Initiative, follow through and end result consistently meet or exceed expectations
Quality of performance, expertise, etc. standout as high quality consistently
Fully Meets Expectations: Most employees fit in this category
Regularly performs in an effective manner in the competency
Is capable of performing all aspects of the job. Requires direction but not consistently
Good, solid performance normally expected with necessary training and relevant experience
Partially Meets Expectations: Some associates fit in this category
Satisfactorily performs some of the required functions – but performance is inconsistent
Needs further development
Requires more consistent direction from manager
Does Not Meet Expectations: Very few employees fit in this category
Clearly below expectations. Must show significant improvement
Did not meet expectations, even after coaching, training, and feedback

11. Levels of Performance Competency indicator: Integrity/Ethics/Values
Outstanding: Person acts as a coach to others upon awareness of dishonest or unethical activities. Is seen as a “go to” person with a proven track record of consistently walking the talk. Exemplifies model behavior.
Exceeds: Person is widely trusted to keep confidences. Not afraid to speak up. Treats all levels in the company with respect. Holds self and others accountable as well.
Fully Meets: Has proven record of acting consistently with what he or she says. Conducts business transactions ethically. May not always feel comfortable speaking up. Admits mistakes, and holds self accountable.
Partially Meets: Does not take a stand. Does not consistently keep promises. Is inconsistent with what he or she says and does. May periodically blame others.
Does Not Meet: Too direct, may push openness and honesty to point of being rude or disruptive, or is known to blame others, or teat others disrespectfully. May gossip and have trouble keeping confidences.
Provided for sample purpose only

12. MBO Goal Setting Process
When setting MBOs for supervisors and above it is important to focus on “S.M.A.R.T” goals that:
Are Specific, Measurable, Attainable, Results orientated, Timebound
Align individual MBOs to → department → country → region → company key strategic initiatives
Drive company performance and track progress throughout the year
Keep employees focused on important strategic initiatives
Link MBOs to the company’s strategic initiatives
Goals must be input into SuccessFactors no later than April 1st.
Goals should be discussed/approved by direct supervisor & should be shared with indirect supervisor (if one) & cascaded to the staff.
All Supervisors and above should have received notice of their 2010 review from “Herbalife Performance Management”

13. 2010 Performance Management Timeline
2/24/2019
2010 Performance Management Timeline
March 2010
Provide communications and training materials to Regional HR heads
Conduct Management training on the new competencies and new form
Document MBOs in SuccessFactors system by April 1st
May
- Update status of MBO’s for manager
Refresher training available for new hires
June/July
Conduct mid-year evaluations
November
- Complete year-end evaluations
December
- Present completed evaluation to employee & start merit review process
End-of-year appraisal is the opportunity to discuss what was completed (accomplishment of MBO’s) and how it was completed (evaluation of key behavior competencies).
Process
At the beginning of the year Managers and employees work together to agree upon individual Management By Objective (MBO) goals that align to Herbalife’s performance objectives and ultimately link to our vision, mission and values.
Individual performance goals are documented and managed throughout the year via a web based on-line goal tracking system. An electronic means to document, track and update goals, check status and complete year end evaluations.
At mid-year, Managers complete mid-year evaluations for each employee.
At year-end
Employees complete their self-appraisal form and return to manager – HR does not receive.
Manager
Completes an evaluation for each employee - By November
Conducts employee meeting to present the review – By December
Determines annual merit award – By December
Sets development plans and goals for 2008 – By January
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14. Q&A