PERFORMANCE MANAGEMENT

1
IMPORTANCE OF SETTING CLEAR OBJECTIVES
What is ?
Spotlights are series of e-guides which will help our employees and their Line Mangers

▪ Enhance their understanding on the BAT Performance and Talent Management Process
▪ Equip practical guidance throughout the process and provide answers to frequently asked questions

The spotlight will cover 4 key topics and will be released from Feb- Sep 2021.

1 Feb 2 Apr 3 Jun 4 Sep

Importance of Setting Giving and Receiving Having Development Assessing

Clear Objectives Feedback Conversation Performance
 1:
IMPORTANCE OF SETTING CLEAR OBJECTIVES

Performance Management Process

Detailed overview of the Cycle

Next Steps

FAQ

3
PERFORMANCE MANAGEMENT PROCESS
Performance Management

Performance management impacts all employees and allows us to better differentiate performance between
individuals.

PERFORMANCE GUIDED
RATINGS DISTRIBUTION
PERFORMANCE Key elements of your Reward is linked
RATINGS to Performance Rating
Outstanding 10%
Outstanding results across all defined objectives, with positive impact
on others and/or; Delivered significant stretch
Exceeds 20%
Expectations
Regular ongoing feedback check-ins
PERFORMANCE throughout year. Exceeded expectations across majority of defined objectives, and/or;
Delivered some stretch
REVIEWS
Meets 60% - 65%
Owned by employees and line managers Expectations
Met expectations across all defined objectives and; Occasionally out-
performed in some objectives

Requires 5% - 10%
Simplified governance Improvement
RATINGS Not achieved several objectives although some objectives have been
GOVERNANCE completed successfully
Guided distribution levels
Performance Management Cycle
1
Q4-Q1
COMPANY Performance Management Cycle follows completion of
PRIORITIES company plan, Global/ Regional Priorities Established

6
25 Jan
Performance ratings have been finalised
and signed off in the system RATING LINE OF
2
SIGN OFF SIGHT Dec- Feb
Line of Sight outcomes are cascaded throughout the
organization
PERFORMANCE
MANAGEMENT
5
Dec-Jan CYCLE
Year End Review Discussion takes place and review YEAR END
discussions/comments are documented in
OBJECTIVE
REVIEW SETTING
SuccessFactors
3
Jan-Mar
Individual Objectives are agreed between employees and line
4 CONTINUOUS managers.
Mar- Nov FEEDBACK Objectives can be edited/modified during the performance
Review Discussion takes place and review cycle
discussions/comments are documented in
SuccessFactors

Setting clear objective and Regular Feedback (throughout the year) is critical for employees
6
to track their progress against set objectives.
 Line of
Sight Line of Sight

Across the business, we are looking at how BAT can become a stronger, simpler, and faster organisation to support our ambition of
building a better tomorrow for our employees, our consumers, our shareholders and society at large.

Robust Line of Sight ensures alignment and focus across functions and teams, linking individual employee objectives to the organization’s
high-level goals, Corporate strategy and Ethos.

BUSINESS UNIT
COMPANY
AND / OR LINE MANAGER INDIVIDUAL
STRATEGIC
FUNCTION OBJECTIVES OBJECTIVES
OBJECTIVES
OBJECTIVES

Some quick references which will help you understand the Line of Sight better

Three Critical Priorities Our Ethos

We are We are We are We are We are

Bold Fast Empowered Diverse Responsible
Combustible Step-change in Simplify the
value growth new categories company
Objective
Setting Objective Setting
WHY SHOULD I SET OBJECTIVES?

FOR EMPLOYEES: FOR LINE MANAGERS:

• Enables you to understand your contribution towards the overall • Enables you to identify priorities in order to decide on the right level of focus and
departmental, functional and business unit goals resources

• Provides clear understanding of what your priorities are and how the • Defines how your team member will contribute towards the achievement of the team
work will be measured and evaluated objectives and those of the overall department, function or business unit.

• Encourages your personal growth and self-responsibility whilst raising • Provides the basis for performance discussion. Helps you to capture employee’s
awareness of your strengths and development areas. strengths and opportunities for development and agree on an action plan

HOW DO I WRITE MY OBJECTIVES?

Writing individual performance objectives in the following format is a good way to ensure complete clarity around your activities and
how you propose to measure your success:
Define performance objective
A convenient way of writing performance objectives to ensure they describe the how (Action Verb), what (Object) and why (Result).

Define measure of success

Measures of success refer to the qualitative and/or quantitative measures that are used to assess whether the performance objectives that have
been achieved.
Objective
Setting Objective Setting: Key Elements
ACCOUNTABILITY SMART 2 Dimensions

BUSINESS OBJECTIVES:
Contribute to growing volume, share, profit, cash flow and
other hard measures of success (e.g. margins, CAPEX,
wrapping material cost optimization, financial and
nonfinancial gains delivered through efficient contract and
Specific account management, product quality index improvement
A definitive, descriptive activity or outcome etc.).

Stretch and SMART objectives are agreed with
Line Managers.
Honest, regular feedback (both formal and
informal) is provided to employees on their
performance, strength and areas for
development.
Actionable individual development plans are
in place.
Measurable
How you intend to assess your achievement
Achievable
The objective must be within your capabilities PEOPLE OBJECTIVES:
Contribute to talent, leadership and personal development
Relevant as well as organizational productivity. People objectives
The objective must add value to you, your team help us to build organizational effectiveness and efficiency,
and / or the business ensuring that the right leadership is in place and that
employees strengthen BAT’s organizational capacity.
Time Bound
The objective has a clear, target date for
achievement

• Start with a blank sheet of paper and copy your departments’ objectives • Copy your old objectives under new headlines.

DO •
(Line of Sight).
Know what is expected from you in your role. DO •
•
Give yourself the same objective as your manager or your employee.
Focus on either the People or Business Objectives only.
•
•
Identify key areas of focus for Business and People performance objectives
Share and discuss your draft with your peers as appropriate.
NOT • Focus on your immediate business as usual scope of work.
• Keep it SMART. Focus on 6-10 key areas. • Over-engineer your objectives or over-commit yourself.
Objective Performance & Development Objectives
Setting
Example:
Objective Measurement of Success

The measurement of success for this objective can refer to: Monthly SLA Compliance %, Monthly
Deliver the Process Metrics
Payment on Time %, Monthly Accuracy %, etc.

Contribute to the efficiency and effectiveness of the Process
Business
Improve Customer Satisfaction Levels
For example, the measurement of success for this objective can refer to Number of improvement
ideas per year with at least XX number of hours capacity creation, etc.
For example: Timely execution of CSAT Action plans; Improve Customer Satisfaction scores by
XX% compared to last survey, etc

Ensure the successful adherence to Audit and SoX Controls For example: Quarterly SoX Compliance %, Yearly Audit Compliance, etc.

As an example, Timely execution of your voice action plans, Improve Your Voice Survey scores by
Improve Engagement and Satisfaction levels
XX% compared to last survey, etc.

People The measurement of success for this objective can refer to: Task level Descriptions up to date by
Ensure Knowledge Retention
end of Q2, etc.

Contribute to building a strong Continuous Improvement Culture
Develop leadership capabilities through volunteering and involvement
in key change initiatives.
For example: Yellow Belt Six Sigma Training obtained by end of Q3, Design thinking training
obtained by Q4, etc.
For example: Number of change initiatives driven successfully paired with fact-based feedback
from relevant stakeholders by the end of the year, etc.

Develop leadership capabilities through mentoring and coaching The measurement of success for this objective can refer to the Number of mentoring and
Development relationships with senior leaders or key stakeholders coaching sessions held and number of challenges surpassed on a quarterly basis, etc.

Develop leadership capabilities through trainings, via the available The measurement of success for this objective can refer to: Number of hours of leadership e-
educational resources. learning (Linked in learning) or classroom training completed by the end of the year, etc.
Next Steps
Objective
Setting
Quick Refresher: What are the steps in SF?

EMPLOYEE STEPS LINE MANAGER STEPS

• Cascade Line manager objectives to employee for line of sight

• Review Employees Objective to ensure objectives are reflected in line with your
discussion

• Discuss any changes in objectives before employee makes the changes in the
• Record your Performance Objectives (POs) by clicking on system
“Performance Objectives” and then
• Conduct regular review discussion and capture the comments offline and in the
• Please ensure you have Measures of Success (MoS) for each system from Q2 onwards (There will be a section to record Line Manager Section
objectives Comments )
• Save and close in order to further modify
• Edit the objective anytime if you move role or there is a change in
business priorities- as agreed with your line manager
• Review with your line manager and capture the comments offline
and in system (Q2 onwards)
• Objectives remain editable throughout the year.

Your Performance Objective and Development Objective is merged into 1 integrated Form and has enhanced functionality to record
regular review and feedback.
 : What’s Next

Next Spotlight: Giving and Receiving Feedback

1 Feb 2 Apr 3 Jun 4 Sep

Importance of Setting Giving and Receiving Having Development Assessing

Clear Objectives Feedback Conversation Performance
FAQ
FAQ
Why are there no guidelines regarding the number of
objectives I need to set within Business and People
dimensions?
Line managers should aim to set between 6 and 10
objectives in total; no more. Line Managers and employees
should decide on the right balance between business and
people objectives for the plan period according to the
employee’s role and business needs.
What is more important, business or people objectives?
Both dimensions are equally important and will carry equal
weightage in your performance review. It is necessary for the
line manager and employee to discuss and identify priorities
Under both dimensions in order to decide on the right level
of focus and resources.
If I don’t know whether a performance objective should be
under Business or People dimension, what shall I do?
An important aspect of performance objective setting is to
identify the key priorities for the plan period. Please refer to
the definitions provided for business and people objectives
to assist you. However, if you are still unsure, please consult
your line manager or your HR Business Partner.
Is it possible to update objectives and measures of success
once they have been submitted?
There is no “Submit” button to submit your objectives to
your line manager. You just need to save and close. The
system allows employees to update objectives at any point
during the performance management cycle. Your line
manager will be able to see your objectives at any point.
The continuous feedback will allow both LM and employees
the opportunity to adjust the objectives and measures of
success in-line with the business priorities (e.g.
Business/Functional priority change) and/or employee’s
roles and responsibilities (e.g. new role)
Is there a need to set measures of success that define what is
expected from the ‘Outstanding’ and ‘Meets Expectations’
performance?
No, there is no need to define measures of success (MoS) at
different performance levels. It is important however to ensure
that all objectives are SMART and challenging. That in itself will
provide solid grounds for the objective assessment of the
employee’s performance at the end of they year. Please refer to
the definition of each rating for clarity.
It is very important to have Measure of success (MoS) for each
of your objectives across both dimensions (People and
Business).
Is it mandatory to document achievements for each objectives
during the Mid-Year Review?
There will be no formal Mid Year review. As a minimum
requirement, the employee’s comments and the line manager’s
assessment are mandatory to be captured during the regular
reviews throughout the year . It is good practice to document
achievements against each objectives. Feedback on a regular basis
on performance objective will provide a better picture of progress
and will ensure there is no misunderstanding between the line
manager and employee
Is it OK to have standard performance objectives for some type
of roles?
Yes, it is appropriate to have the same set of performance
objectives for certain types of positions. However, line
managers should be careful in applying this across the board
without proper consideration.
There might be still some cases when you would need to
customise objectives based on comparable complexity,
challenges and/or business context of particular roles, as well as
based on employees experience and capacity levels.
FAQ
How do you differentiate between 2 ratings: “Meets
Expectation” and “Exceeds expectation”?
Please refer to the definitions provided:
• Exceeds Expectations: Exceeded expectations across
majority of defined objectives, and/or; Delivered some
stretch
• Meets Expectations: Met expectations across all defined
objectives and; Occasionally out-performed in some
objectives
However, if you are still unsure, please consult your line
manager or your HR Business Partner.
If I am new joiner, when should I set my objectives?
You should ideally set your objectives within 90 days of your
joining . This is also mentioned in your onboarding checklist.
Within this period of time, you will get key information and
visibility on business priorities to set your objectives
effectively. Moreover, you will be able to edit objectives
during the year as discussed with your line manager to reflect
any changes.
What happens when my line manager changes/ leaves and my Who should we get in touch with for more information on
new line manager decides to change some of my objectives? Reward Changes?
When you set your objectives for the year, you reflect on your You need to engage with your Line Manager or your HR
Line of Sight. So your objectives are aligned to business Business Partner.
priorities. However, your objective can be changed at any point
of time depending on business priority change or your role
changes. It is very important that you align your objectives with
When will the next Spotlights will be released?
your new line manager. Your line manager will be able to see
your objectives, provide you feedback throughout the year and
The next spotlights will be released in T&OE SharePoint as
provide your YE Rating.
follows:
• April: Giving and Receiving Feedback
• June: Having Development Conversation
What happens if I get promoted or I move to a new role in • Sep: Assessing Performance and Potential
the middle of the year?
You need to agree the new objectives for the remaining part
of the year. You also need to have regular review session with
your new line manager to track progress against set plans.
It is also very important to have close the discussion with your
previous line manager, capture your progress against the set
objectives. Your progress along with your line managers
feedback will be captured in the system for future reference.