step september 29, 2005
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STEP September 29, 2005. Performance Alignment Review (PAR) Wayne Hays Shirley Dickson. Agenda. Brief Solectron Background Performance Management Overview Highlights Form Overview Rating Calibration Lessons Learned. Solectron History. Solectron was founded to - PowerPoint PPT PresentationTRANSCRIPT
STEPSeptember 29, 2005
Performance Alignment Review (PAR)
Wayne Hays
Shirley Dickson
Agenda
• Brief Solectron Background
• Performance Management Overview
• Highlights– Form Overview
– Rating Calibration
• Lessons Learned
Solectron History
• Solectron was founded to
– Take advantage of the growing need for Electronics Manufacturing Services (EMS)
– Accommodate the overflow from manufacturing operations of Original Equipment Manufacturers (OEMs)
From a single manufacturing location (1977)...
Milpitas, California
To a presence in more than 20 countries...
Asia/PacificAustraliaChinaIndiaIndonesiaJapanMalaysiaSingaporeTaiwan
AmericasBrazil Canada Mexico United States
EuropeBelgium France Germany Hungary Netherlands Romania Scotland Sweden Turkey United Kingdom
United StatesCalifornia Kentucky Massachusetts
Michigan North Carolina Oregon
Puerto Rico South Carolina Tennessee
Texas
Our Service Offerings
Collaborative Design
Lean Manufacturingand Fulfillment
Post-ManufacturingGlobal Services
• Product Design
• Design for Six Sigma and Manufacturability
• Product Launch
• Product Life Extension
• Sustaining Engineering
• PCBA and Subsystem Manufacturing
• Systems Assembly and Test
• Responsive Supplier Network
• Product Fulfillment and Logistics
• Global Network for Lowest Landed Cost
• Repair
• Product Logistics
• End-of-Life Support
• Process Loops for Design and Manufacturing Improvement
Customers
• Brocade
• CISCO Systems
• Dell
• Ericsson
• Hewlett-Packard
• IBM
• Lucent
• Microsoft
• Motorola
• Marconi
• Nortel Networks
• Samsung
• Sony
• Sun
• TiVo
Recognition
Awarded the Malcolm Baldrige National Quality Award for manufacturing in 1991. In 1997, after waiting the required five years, Solectron reapplied for the award and became the first company to win the Award twice in the history of the program.
“For more than 25 years, Solectron has received more than 450 customer, quality and community awards.”
Performance Alignment Review (PAR)
The Case for Change
“At Solectron, we are undergoing a major transformation designed to help us better serve our customers, simplify how we do business and improve our financial performance. Instituting standards for aligning and measuring individual performance is a key part of the larger transformation underway.”
“Ultimately, our success can be traced back to how we answer two fundamental questions: Do we as a company have the right goals and vision to move forward? And, just as importantly, do each of us – personally and through our teams – understand what we must accomplish and which behaviors we must model to make Solectron’s vision a reality. It is about individual performance and collective progress. It is about building a One Solectron culture that simply outperforms the competition.”
Kevin O’Connor EVP, Human Resources
Michael R. CannonPresident and CEO
What We Found...
• Dozens of processes, forms, cycles, approaches used across the corporation
• Anecdotal feedback from employees and HR indicating the lack of any performance feedback from managers
• Linkage to other critical HR processes weak (compensation, stock awards, promotions, succession, executive selection, etc.)
• Behavioral and cultural expectations unclear
Performance Management Goals
• Create a common performance culture
• Enhance individual, team and organizational effectiveness
• Align individual performance with business goals
• Create a culture of on-going feedback and development
• Create a consistent methodology to assess employee contribution
• Provide information to help determine
– Compensation decisions
– Promotions
– Rewards & Recognition
– Developmental Opportunities
Performance Cycle
Corporate GoalSetting & Alignment
Goals Flow Down
SettingExpectations
Mid-YearReview
Final Review
Rewards$
Ratings CalibrationMeeting
OrganizationGoals, Priorities,
Imperatives, Behaviors
Perform, Monitor,Feedback
Next Level Mgr
HRMgr
Mgr Mgr
Development Process
Performance Review Tempo
Q4 Q1 Q2 Q3 Q4Sept-Nov Dec-Feb Mar-May Jn-AugJn-Aug
Goal setting & alignment
Perform, monitor, feedback
Mid-year review
Final review
Sept-Oct
One Solectron Behaviors
Sustained Profitability: Reduce operating expenses; strengthen balance sheet; eliminate duplicate structures; improve effectiveness and efficiency
Asset Velocity: Increase inventory turns; improve cash-to-cash cycle
Execution Excellence: Reduce complexity; common repeatable processes; improve overall quality and responsiveness; collaborate better with each other; streamline our organization
Revenue Growth: Continue to win new business; secure follow-on business
Restore Employee Morale: Themes include change; flexibility; creating an environment of open & honest feedback; learning quickly; accepting new challenges
• Integrity
• Team Player
• Champion Change
• Coach Others
• Continuously Learn
To accomplish our Business Priorities…We must create a “One Solectron”culture through demonstration of the right behaviors…
OrganizationGoals, Priorities,
Imperatives, Behaviors
Business Priorities & Behaviors
Integrity
Team Player
Coach Others
Champion Change
Continuously
Learn
BehaviorsHow work is
accomplished
ResultsWhat work is accomplished
Performance to
Expectations
Business Contributions
Equal Emphasis on Results & Behaviors
Sample Behavioral Description
Individual Contributor Manager of Others Executive
• Asks for & offers help to others when needed.
• Understands team & organizational goals.
• Places team & organizational goals before personal goals.
• Shares best practices with others.
• Stays involved; actively participates.
• Treats others with dignity and respect
• Set expectations for cross functional; cross business cooperation
• Promote the use of own and others’ capabilities to other functions
• Proactively share information across organizational boundaries
• Promote a team culture, recognizing the contributions of all team members
• Share best practices across organizational boundaries
• Treat others with dignity and respect
• Address behavior in others that may damage constructive relationships
• Remove organizational barriers to collaboration and teamwork
• Share best practices across organizational boundaries
• Achieve business results through collaboration with others; place higher priority on Solectron goals than own personal goals
• Offer resources, even when it hurts, when it will help others achieve company goals
• Treat others with dignity and respect
• Actively engage with community and/or charitable organizations
Team Player
Work effectively and cooperatively with others; establish and maintain good working relationships; cultivate an active network of relationships; identify opportunities and take action to build strategic relationships.
Performance Concept
A00-04050117
Behaviors
Pe
rfo
rma
nc
e
Didn’t Meet Meet
Did
n’t
Me
etM
eet Behavior IssueBehavior Issue BalanceBalance
Results & Results & Behavior IssueBehavior Issue
Results IssueResults Issue
Performance = 5
Behaviors = 1
Performance = 5
Behaviors = 2
Performance = 5
Behaviors = 3
Performance = 5
Behaviors = 4
Performance = 5
Behaviors = 5
Performance = 4
Behaviors = 1
Performance = 4
Behaviors = 2
Performance = 4
Behaviors = 3
Performance = 4
Behaviors = 4
Performance = 4
Behaviors = 5
Performance = 3
Behaviors = 1
Performance = 3
Behaviors = 2
Performance = 3
Behaviors = 3
Performance = 3
Behaviors = 4
Performance = 3
Behaviors = 5
Performance = 2
Behaviors = 1
Performance = 2
Behaviors = 2
Performance = 2
Behaviors = 3
Performance = 2
Behaviors = 4
Performance = 2
Behaviors = 5
Performance = 1
Behaviors = 1
Performance = 1
Behaviors = 2
Performance = 1
Behaviors = 3
Performance = 1
Behaviors = 4
Performance = 1
Behaviors = 5
5
4
3
2
1
Behaviors
Per
form
ance
Overall Rating Guide
1 2 3 4 5
Exceptional
Commendable
Fully Effective
Needs Improvement
Unacceptable
Rating Distribution
• Managers have the flexibility to adjust distributions within guidance. Total distribution must equal 100%.
• Distribution is to be applied when population sizes reach 100 or more. Small departments are not expected to meet the distribution.
• Managers can include employees that have been managed out of the organization during the review period. These situations are limited to performance issues – not employees who have left in good standing.
From To Rules
5 Exceptional 10% 0-10% 5 cannot exceed 10%; together
cannot exceed 30%4 Commendable 20% 20-30%
3 Fully Effective 60% 50-60% Can be adjusted up or down
2 Needs Improvement 5%10% + Cannot be less
than 10%1 Unacceptable 5%
Form Demonstration
Rating Calibration
Calibration Concept
• The purpose is to create a review process that establishes a more consistent, equitable, and accurate performance evaluation and feedback environment across manager groups within functions.
• The process facilitates a common understanding and method to arrive at final ratings
• Distribution of ratings is not the goal
Meeting Participation
EVP
VP
Director
Supervisor
Individual Contributor
Manager
• Next Level Review• All “manager of managers”
participate with their direct manager (peer group)
• Matrix reporting relationships not included, only direct reporting relationships
• Organization structure will drive number of meetings required
• Sequence of meetings not important (e.g., “top down” vs. “bottom up”)
Participation Example
Function Leader
Direct Report
Direct Report
Direct Report
Next Level Leader
Direct Report
Direct Report
Direct Report
Calibration Meeting
Calibration Meeting
Etc…
Important: Functional reviews; not site or region!
Rating Profiles – Optional Resource
1 = Unacceptable
EXCEPTIONAL
• Top 10% of performers. Clearly stands out from others; exceeds all expectations, measures and targets against established objectives and/or standards
• Self starter who takes initiative and works independently with minimum supervision; produces high quality products with very little rework required; always delivers on commitments
• Proactively assumes additional responsibilities; willingly works outside of job scope for the good of Solectron; consistently surprises with level of effort, quality work, improvement suggestions
• Proactive problem solver; looks for improvement opportunities with customers and/or process; recognizes what needs to be done and generates creative solutions
• Clearly understands and supports organization strategy and priorities; understands how own work contributes to the success of Solectron
• Recognized expertise; others seek out this person for guidance and counsel
• Works across functions and organization boundaries to build strategic relationships; valued team player who builds effective partnerships
• Considered a change champion; always open to new ideas and stimulates others to embrace change; model of flexibility, accepts changes and redirection as improvement opportunities
• Openly shares information with others for the good of Solectron
• Builds trusting relationships; provides constructive and honest feedback to help others succeed; accepts feedback from others and acts on the feedback for self-improvement
• Willingly takes on new challenges; stretches current capabilities; seeks new learning opportunities
2 = Needs Improvement
3 = Fully Effective
4 = Commendable
5 = Exceptional
Rating Calibration Tool – Data Entry
Empl ID
Comdef Site
(Optional) Last Name First NameJob Grade (Optional)
Status (T for
Termed)Comdef
SiteEmpl
ID Last Name First Name Objectives Behaviors Final NP Scores
Manager A Employee 1 3 3 3
Manager A Employee 2 4 4 4
Manager A Employee 3 3 3 3
Manager A Employee 4 3 3 3
Manager A Employee 5 3 3 3
Manager A Employee 6 3 3 3
Manager B Employee 1 5 4 5
Manager B T Employee 2 3 2 2
Manager B Employee 3 4 3 3
Manager B Employee 4 4 4 4
Manager B Employee 5 3 3 3
Manager B Employee 6 3 3 3
Manager B Employee 7 4 4 4
Manager B Employee 8 4 3 3
Manager B Employee 9 5 5 5
Manager B Employee 10 4 4 4
Manager C Employee 1 3 3 3
Manager C T Employee 2 3 2 2
Manager C Employee 3 3 3 3
Manager C Employee 4 3 3 3
Manager Employee Ratings
Rating Calibration Tool – Distribution
Ratings Distribution - Numbers
0
2
12
4
2
0
2
4
6
8
10
12
14
1 2 3 4 5
Rating
Nu
mb
er
of
Em
plo
ye
es
Ratings Distribution - Percentages
0%
10%
60%
20%
10%
0%
10%
20%
30%
40%
50%
60%
70%
1 2 3 4 5
Rating
Per
cen
tag
e o
f E
mp
loye
es
Lessons Learned
• Change management is under rated
• There is no such thing as over communicating
• Sweat the small stuff
• Intensive “boot camp” for HR field partners