1. 1 Contributing to a better quality of life And more variations in the written language

2. 2 Nurse Elise Sørensen recognises a need Primitive ostomy bags are the standard World’s 1 st disposable bag in 1954 = independence Coloplast sets new standard Pioneers in healthcare

3. 3 Coloplast products and services help patients achieve greater independence from medical challenges in 5 areas: Ostomy care, Continence care, Wound care, Skin Health and Breast care. Defining Coloplast

4. 4 6000+ employees Subsidiaries in 25 countries Distributors worldwide Manufacturing facilities in China, Costa Rica, Denmark, Germany, Hungary and the U.S. Coloplast spans the world

5. 5 As individuals and as an organisation we: Are customer driven Are quality conscious in all we do Have a fair and respectful management style Learn and share Have a passion for our business... and we strongly believe that the road to outstanding results is shorter when you have fun on the way Coloplast’s values

6. 6 Our employees are: Independent thinkers Willing to take on responsibility Committed to development The key drivers of their own job performance Given the resources they need to succeed More than 6000 committed employees

7. 7 Without exception, Coloplast has increased turnover every year since 1957. In 2003, the goal for 2008 was set at DKK 9 billion. Development in turnover (1989-2004) 0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000 89909192939495969798990001020308 9091929394959697989900010203 goal 0404 mDKK Revenue

8. 8 Revenue per region 81% of total turnover is generated from sales in the European Market The Americas account for 13% Rest of the World. This region only accounts for 6% of total sales. It is, however, the fastest growing segment. Europe81% Revenue by geographical regions Rest of the World6% 13%The Americas

9. A new performance appraisal Focus and transparency in business performance & behaviour

10. 10 Introducing Leadership/Employee Competences We need to continuously improve everything we do to meet our business objectives This includes improving HOW we achieve our results We are introducing Leadership/Employee Competences to improve our business behaviour We will expect this behaviour from our managers and employees We will evaluate our employees against these behaviours we will develop our employees towards these behaviours We will use the implementaton of the Leadership/Employee Competences to structure and refocus the Performance Appraisal in Coloplast

11. 11 Restructuring the Performance Appraisal The focus of the new performance appraisal is 3-fold for ALL employees and managers: Increased focus and evaluation on business performance Increased focus and evaluation on business behaviour Increased focus on development of all employees for continuous improvement

12. 12 The Leadership Competences - for managers with personnel responsibility Visioning and Directing Holistic Business Understanding Strategic Thinking Mobilising People Growing People Team Leadership Developing organisational capabilities and teamwork High Performance Execution Personal ownership Results orientation Accountability

13. 13 The Employee Competences - for managers and employees without personnel responsibility Commitment Cooperation Change Willingness Independence Initiative Customer Orientation Knowledge Sharing

14. 14 The Performance Appraisal in a process view Personal Development Plan Objectives for the coming year Leadership/Employee Competency Assessment Business Performance Assessment Job Assessment Summary of Assessment Follow up IT support system

15. 15 Assessing leadership/employee behaviour Leadership/Employee Competency Assessment Personal Development Plan Conclusions from Assessment Top-Down Assessment Dialogue based Assessment 180/360 Degree evaluation Other way that is perceived fair and respectful Follow - up It is recommended that you start by using this approach in order to share the same assumptions. Then you can decide your own assessment method. Corporate HR is developing a 360 degree appraisal tool.

16. 16 Training and Development From a Corporate perspective the Leadership Competences are supported by the following programmes Coloplast Business Programme - CBP Coloplast Management Programme - CMP Executive Leadership Programme - ELP (New programme) Remaining training and development activities will be supported by local HR

17. 17 Presentation Performance Appraisal database - 3 steps Preparation Manager Employee Conclusions and minutes 1. Manager writes minutes and approves 2. Employee comments and approves 3. Managers superior comments and approves Performance Appraisal Individual preparation to be made in the database Conclusions and minutes in database Dialogue between manager and employee

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19. 19 Leadership Competency Assessment  Fails to meet expectationsNeeds improvementMeets expectationsExceeds expectationsOutstanding VISIONING and DIRECTING Summary of evidence Holistic Business Understanding Assesses the implications of decisions and actions relative to relevant stakeholders  Demonstrates a strong commitment toward service, quality and customer satisfaction and loyalty  Takes calculated risks  Balances breakthrough thinking with the ongoing needs of the business  Is able to communicate a vision for the future  Strategic Thinking Demonstrates understanding of how business strategies and tactics work in the market place  Explores new possibilities and approaches issues differently  Anticipates and reacts to future trends and directional shifts in the market place  MOBILISING PEOPLE Summary of evidence Growing People Involves others in the formulation of plans and decisions affecting their work  Delegates the necessary authority to employees  Creates a challenging workplace  Develops employees  Team Leadership Appreciates the contribution from everyone in the group/team  Promotes co-operation within the team  Developing organisational capabilities and teamwork Promotes co-operation between groups  Promotes working across functions, departments and countries  HIGH PERFORMANCE EXECUTION Summary of evidence Personal ownership Takes and accepts responsibility  Seeks feedback to improve performance  Shows confidence  Takes initiative  Result orientation Admits and allows mistakes  Is able to prioritise and focus on value creation (EP, ESLM, CSLM, Waste, etc)  Recognises and reacts to achieved results (both over- and underperformance)  Sets high demands for own job performance and meets these  Gives constructive feedback  Sets clear and ambitious targets and follows up on these  Accountability Delivers on promise (walks the talk)  Ensures that feedback is given down and communicated up 

20. 20 What are SMART objectives? Specific - specify the objective as precisely as possible Measureable - how do you measure that the objective has been reached ? Accepted/Ambitious is the objective accepted, agreed and ambitious Accepted/Ambitious - is the objective accepted, agreed and ambitious ? Realistic - is objective realistic when considering time and ressources available ? Time Based - Set specific deadlines for objective fulfilment SMART objectives is a way of setting objectives based on criteria, that ensures the objectives are:

21. 21 Hvorfor indgår SMART mål i MUS? SMART mål udstikker en klar retning og prioritering af nøgleopgaver, så leder og medarbejder ved, hvad de skal ”løbes” efter. SMART mål er lette at følge op SMART mål er jobmål og ikke en aktivitets- eller projektplan SMART mål afspejler klare, gensidige forventninger, hvilket gør det lettere for os både at være medarbejder og leder

22. 22 Hvordan fastsætter man 1-årige SMART mål? Hvilke 3-5 områder er kritiske i jobbet i det kommende år? Definition af et SMART mål for hvert område Prioriter målene ved procentvis vægtning ! Eksempel

23. 23 Other initiatives Transparent career paths Identification of C-players Identification of talents Linkage between performance/competences and pay Organisational based competence development programme Gap analysis -globally

24. 24 Why has this process been initiated? We say we support 3 career paths (line, project and specialist), but what does that mean in practice? We need a clearer and more transparent structure for managers and employees to work with We want to be able to communicate the ”who, what and how” of career progression and possibilities in Coloplast, both internally and externally We want to clarify what it takes to progress career wise in Coloplast We want linkages between competences, qualifications required (generic) in any given job and actual position level in the organisation We want to create linkages between career levels and potential compensation & benefit possibilities We want to link behaviour to career levels and subsequently assess and evaluate this for present and future career positions

25. 25 3 career paths in Coloplast with Titles Vice President.. Project Director Chief.. Manager Director.. Head of.. Senior Project Manager All other employees Project Manager Senior.. Manager Team Manager Line Management Project Management Specialist..Manager Encompasses process owners or responsibles in departments etc. Senior Vice President Executive Vice President A B C D E F Position Level G

26. 26 Key responsibilities LINE MANAGEMENT To set targets, develop strategies and activities To create results through and with employees whom you are responsible for To develop organisation, employees, competences and structure To support projects/processes by allocating competent resources PROJECT MANAGEMENT To set targets and ensure target achievement with the employees allocated to the project To manage, drive, develop and coordinate project/process with cross functional complexity To make competency and resource needs visible SPECIALIST To set targets for competences and ensure target achievement To act as expert and drive development and utilisation of relevant professional expertise for Coloplast To support projects/processes by utilising and sharing knowledge

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