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Achievement & Development Process (ADP) 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 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 Performance Management Components Achievement & Development Process Training & Development Balanced Measures Performance Management Compensation Strategy Career Development Staffing Strategy Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review 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 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 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 ADP Goals/COTs drive...  Individual / team accountability for achievement of results – performance  “pay for performance” compensation through merit increases and incentive pay Goal Setting/COT Alignment Process begin Review Review and update higher level during goals year Develop “How do we/ action plans should we for goals contribute?” Goal Our Goals Setting/ “Do goals/ Alignment Determine COTs meet team and criteria and individual guidelines?” work “Are Develop goals/COTs COTs aligned?” 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 Effective Goal/COT Development Checklist 1. Specific...describes end results 2. Meaningful...contribute to accomplishment of business goals 3. Aligned with other goals...linked with higher level goals & goals across organization/between functions 4. Realistic and attainable...a manageable number within your control 5. Timing and measurable..include a deadline 6. Balanced...include process improvement & end result achievement; team and individual results 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) Horizontal Goal/COT Alignment Example Western Region Goal Gain additional market share by July, (year) as follows: Missouri: 40% Texas: 42% Sales Representative Identify 10 new target accounts and convert at least 5 by June, (yr.) Plant Production Establish production schedules for (yr.) and beyond to support new business with no loss of efficiency levels within the plant Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review Continuous Feedback Review  What is Continuous Feedback?  Leader’s role  Continuous Feedback Process – feedback sources – feedback topics – soliciting feedback – good feedback – development planning 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 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 Continuous Feedback Process Evaluate Progress Identify feedback sources Solicit feedback Develop and Implement Action Plan Prepare & Lead ADP summary discussion with leader Document & interpret feedback A Feedback Source is someone who... Identify feedback sources  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 Possible Feedback Sources  Your feedback sources should include: – yourself – your leader – peers & colleagues – team members – cross-process team members – internal and external customers/suppliers Identify feedback sources Feedback Topics  Progress on goals/COTs  Meeting your customer’s needs & expectations  Interpersonal skills  Work habits  Quality of work  Leadership characteristics and job competencies Solicit feedback Formal Surveys  Two versions: – leader (also two versions; cost) – individual contributor (no cost)  Available electronically via HR Online Solicit feedback Good Feedback Document & interpret 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 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 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 Competencies Solicit feedback  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 Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review 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) Characteristics  Leader and employee both prepare and discuss  Leader acts as coach  Each business determines the timeframe  Focuses on achievements and development  Forward looking – new goals/COTs for the year – development needs & career objectives  Leader and employee share feedback 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 Goal/COT Alignment 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. 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. Leadership Characteristics  Catalyst for Change  Personal Confidence  Good Listener  Personal Integrity  Communicates Openly and Seeks Information  Encourages Individual Dignity  Creates Teamwork Climate  Seeks Personal Growth  Sense of Urgency  Sense of Humor Competencies 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 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  Other items include: – Current salary in relation to market value and band ranges – Amount of time since last increase – Allocated salary budget The Bands Officers Senior Leadership Managers, Senior Individual Contributors Supervisors, Professional, Analysts 5 Technical 6 Administrative 7 8 $15,000 to $55,000 $20,000 to $70,000 $30,000 to $100,000 $50,000 to $140,000 2 Leadership 3 4 $65,000 to $175,000 $90,000 to $300,000 $120,000 to $520,000 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 Major Surveys Used to determine market values – Organizational Resource Counselors (700 companies) – Hay PayNet - Next generation of Hay survey data (500 companies) Both allow for peer group specification Other surveys may be used for specialized positions 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 Elements of ADP Achievement and Development Process Goal Alignment Continuous Feedback Summary Discussion Human Resource Review What is an Human Resource Review (HRR)?  Process in which leaders of the company meet to discuss various HR strategies  Follows Achievement and Development Summary discussions  Among leaders of a particular organization (NLT’s)  Facilitated by Human Resources Representative 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 HRR Outputs  Plans for job movements, succession planning, recruiting  Development needs  Feedback to Training and Development organizations  Shortfalls in structure, skills, training, and manpower Key Leader Staffing Process Identify Open Position Review interview data and determine if offer will be extended* Outline Job Specifications Responsibility: HR Leader Staffing Leader Sourcing Procedure: *Selection of non-Succession Plan participant must be validated by Senior VP of HR - 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 Questions? TM Career Management 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? Career Management Defining your career objectives, understanding your current performance, capabilities, aptitudes and then developing a plan to match your expectations. 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 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? 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 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 Key Steps  Self - Assessment regarding interests  Gather information regarding opportunites  Explore and network  Engage leader an mentor  Develop action plan  Get in the game Mentoring Process 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. The Mentoring Process - Overview Potential Mentor Identification Mentor-Mentee Pairing 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 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 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 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  Mentoring Process - Roles and Responsibilities Mentors – Set realistic expectations – Make themselves available – Maintain consistent contact – Identify areas for personal development – Share business contacts 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 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 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