2. Performance Management A d iscussion of Owens Cornings global performance management process (ADP) Ray OLenic e*Employee Leader 8/22/2002

3. Business Drivers – HR Integration and Human Capital Performance Selection Performance Management Learning & Development Compensation Career Development Succession Planning Strengths GoalsPerformance Enabling people to achieve superior business results

4. Business Drivers – Employee & Leaders Expectations Employee Expectations - Employee Survey results identified employees expectation that promotion, compensation and development would be supported by an objective performance management process. Leader Expectations - Leaders needed information upon which to base selection/nomination for current and future openings and other staffing decisions. Sr. Leadership Expectations - Sr. Leadership directed that compensation be driven by performance. Scope includes all salaried employees world-wide.

5. Elements of Performance Management (ADP) Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review All Salaried employees Global & Multi-lingual e*Enabled Integrated (systems & processes) Jan-Feb 01 Jan – Dec Jan – Feb 02 Mar – Apr 03

6. Elements of Performance Management (ADP) Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review Goal alignment focuses employees on business goals

7. Goal Alignment – Balanced Scorecard Financial & Process Human Capital Customer Goals are specific objectives for achieving business, results, improving customer satisfaction or maximizing performance of our human capital.

8. Goal Setting/Alignment Process Goal Setting/ Alignment Develop action plans for goals Review higher level goals How do we/ should we contribute? How do we/ should we contribute? Determine team and individual work Develop goals Are goals aligned? Do goals meet criteria and guidelines? Identify customers and FFU criteria begin

9. Goal Setting/Alignment Process Goal Setting/ Alignment Develop action plans for goals Review higher level goals How do we/ should we contribute? How do we/ should we contribute? Determine team and individual work Develop goals Are goals aligned? Do goals meet criteria and guidelines? Identify customers and FFU criteria begin Meaningful Realistic/Doable Aligned Balanced Measurable Goals Should Be:

10. Create New ADP: Start New ADP

11. Goals Panel: Goals Goal Section: Identify a higher level goal that will be supported by an individual COT. You may indicate the same goal multiple times that will be supported through different COTs. Goals

12. Development Areas Panel: Development Areas For each Development Area you should complete the following information. For each Development Area you should complete the following information. Development Areas

13. Elements of Performance Management (ADP) Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review A continuous process to collect feedback from many sources on performance against goals, customer satisfaction, development, etc. From internal and external sources – employee driven.

14. Continuous Feedback Process Identify feedback sources Solicit feedback Document & interpret feedback Seek additional feedback Decide on actions to take Evaluate progress

15. Continuous Feedback Process Identify feedback sources Solicit feedback Document & interpret feedback Seek additional feedback Decide on actions to take Evaluate progress Self, leader, Peers, team, Customers, Suppliers, etc.

16. Continuous Feedback Process Identify feedback sources Solicit feedback Document & interpret feedback Seek additional feedback Decide on actions to take Evaluate progress Progress on goals, Expectations, Interpersonal Skill, quality, etc.

17. Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review Annually, each employee has a formal discussion to review performance vs goals, feedback, completion of development/growth and goals for the upcoming year.

18. Summary Discussion Process Mutually set the time for the meeting Meet & discuss Set initial goals for new year Document the discussion Prepare for the discussion

19. Characteristics Leader Initiates Leads as required Listens Coaches Challenges Supports Provides feedback Leads discussion Discusses achievements Shares feedback Discusses Career & Development needs Discuss next years goals Employee A frank and open discussion about achievement of goals, development and next years goals.

20. Goals Panel: Goals Goal Section: Identify a higher level goal that will be supported by an individual COT. You may indicate the same goal multiple times that will be supported through different COTs. Goals

21. Strengths Panel: Strengths Select your Strength by clicking on the drop down box and selecting the desired competency. Provide brief examples of the competency to support your selection. Strengths

22. Development Areas Panel: Development Areas For each Development Area you should complete the following information. For each Development Area you should complete the following information. Development Areas

23. Career Objectives Panel: Career Objectives Short-Term Objectives: Outline up to 3 Career Objectives for the next 12 months. Also indicate your Target Date for reaching your stated objective. Career Objectives

24. Comments & Signoff Panel: Comments & Signoff Employee Comments: This section allows you to summarize your performance for the Review Period. These comments should not be a repeat of those in previous sections. Utilize this section for additional comments and opinions regarding your Annual Summary Discussion. (i.e., personal opinions on evaluation given by your leader) All comments documented in this area will remain in your own words. Comments & SignOff

25. Comments & Signoff Panel: Comments & Signoff Leader Comments: Your leader will then enter comments on your performance for the Review Period. You will then be able to review the comments one additional time before the document is finalized. Once you have reviewed the comments, to finalize the document you will need to enter the final review date. Your leader will also enter the date they complete their final review of the document. Comments & SignOff

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

27. Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review A leadership process, facilitated by HR, to discuss HR implication of business strategies. It follows completion of the ADP process. org changes, individual EE needs, job moves, training, successions, diversity opportunities and recruiting needs are discussed – company wide.

28. HRR Outputs Plans for job movements, succession planning, recruiting Plans for job movements, succession planning, recruiting Development plans for employees Development plans for employees Feedback to Training and Development organizations Feedback to Training and Development organizations Shortfalls in structure, skills, training, and manpower Shortfalls in structure, skills, training, and manpower Preparation for Strategic Human Resources Review Preparation for Strategic Human Resources Review

29. ADP (Performance Management) Critical Success Factors Strong linkage to achievement of business goals Sr. Leadership Support Employee commitment and involvement Employee driven process Global technology infrastructure & e*APP Training – leaders, employees

30. Technology Global Technology Infrastructure Networks Desktop PeopleSoft 8.3 Broadvision (future) HR Portal HR OnLine E*Employee ADP App E*learning Materials Other HR E*Apps Technology Enables – People create success

31. Measurement Integrated global data supports metrics Integrated global data supports metrics –Company-wide –Top to bottom Metrics on completion and status for every employee, manager, business, etc. Metrics on completion and status for every employee, manager, business, etc. Used to support HR leaders & Managers in managing their EE groups. Used to support HR leaders & Managers in managing their EE groups.

32. Business Drivers – HR Integration and Human Capital Performance Selection Performance Management Learning & Development Compensation Career Development Succession Planning Strengths GoalsPerformance Maximizing human capital performance is the key driver

33. Q&A Q&A