Performance Management

Coaching Session

Performance Management Taskforce

March 2012
 Agenda
A- Introduction (mission, Vision and Strategic Guidline)

B- Why Apply PMS

C- Performance Management Mechanism

D- Findings from the survey conducted

E- Designed Toolkit

F- SMART or SMARTER Objectives

G-Examples on writing & cascading SMART objectives

3
 Vision and Values
Vision & values
Lafarge aims to be the undisputed leader in building materials. Lafarge's core values of respect, care and excellence have accompanied our
success for over 175 years.

Lafarge is committed to:

•offering our customers the best in innovative materials and reliable products and services,
Reinforcing our position as the world leader for our suppliers, employees, customers and shareholders.

Respect, care and excellence

Respect, care and excellence - these values are inseparable from the results-oriented culture that thrives at all levels of Lafarge's organization. These values -
which Lafarge sees as crucial to its long-term leadership - have been formalized in the Lafarge philosophy, known as the Principles of Action.    
 

Respect for customers

Present in over 70 countries, Lafarge is committed to understanding and serving the needs of its customers at a local
level. Shareholders
Care for employees and communities
Lafarge is committed to being a world leader in:
Profit Planning &
employee health and safety, Value Preparation
Respect
protection of the environment,
Our
social responsibility, Vision
Income Price
Security Service
corporate governance. Quality
Development
Employees Customers
Excellence in our work
For Lafarge, excellence is the key driver of our success. Lafarge's management philosophy, the Lafarge Way, enables our people to develop their
talents in a performance-oriented culture.

Amr Attia Mohamed – Lafarge Cement Egypt Mechanical Maintenance

Planning and Preparation Team Leader
 Strategy

Strategic guidelines

Our strategy and priorities to be the best in our business

Our priorities

In order to build on what we are today and remain the world leader in building materials, we must be:
•somewhere it is possible to work in complete safety,
•a growth company with the best portfolio, the best products and the best local teams,
•profitable, with low costs, effective investments and a management focused on results,
•committed to sustainable development, with low CO2 emissions, sustainable products and systems and a socially
responsible attitude.

Our strategic guidelines therefore remain unchanged, with:

 Two strategic priorities:
To strengthen our portfolio of current positions, combining strong existing positions with those offering new opportunities for Cement,
Concrete and Aggregates.

To develop our sales in products, systems and innovative services which contribute to sustainable construction, through our Extra Mile
program.

 Three operational priorities:

To promote health and safety. We have made progress but improving our behavior and leadership remain a key challenge.
To reduce costs, generate cash and ensure that management of costs, in the same way as that of cash, becomes an integral part of our culture
and our daily work.
To develop people, with Group managers who better reflect its international presence. Along with challenges in relation to identifying,
assessing, developing and retaining talents.

Amr Attia Mohamed – Lafarge Cement Egypt Mechanical Maintenance

Planning and Preparation Team Leader
 Performance

Performance improvement is a constant priority. We have a significant source of understanding and

mastering of our costs and the ability to execute quickly.
How do we define performance?
Performance is the visible result of our actions.
Every employee delivers performance. It has two goals: competitiveness and customer satisfaction.
Performance relates to every aspect of our business - strategy, sales, marketing, industry, finance, human
resources and sustainable development.

The five key success factors in performance management

How do manage those who improve their performance? They take into account five dimensions:
•they mobilize people, share the vision;
•they excel locally with a global mindset;
•they set the right objectives;
•they implement effectively;
•they recognize achievements.
 Fourteen “good practices for managing performance improvement”, which illustrate these five dimensions, have been formalized
in the document “managing performance improvement at Lafarge” (see a selection of chapters on th right side column of this
page).

Amr Attia Mohamed – Lafarge Cement Egypt Mechanical Maintenance

Planning and Preparation Team Leader
 A. INTRODUCTION

• It is the goal of every organization to be competitive with the best in

every part of its business priorities

• The main purpose of performance management Is to develop the

people and improve performance by clarify goals and coaching
regular.

• The most important purpose is to provide honest and accurate

formal evaluations to support the reward for performance .

• Manager ,engineers, and subordinates have the mutual

responsibilities for making the process work.

• Each has a role in setting goals , coaching and evaluation

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 B. WHY APPLY PMS

1. Aligns individual performance objectives with business

objectives.

2. A system by which employees can develop on the job &

managers can develop coaching & counseling skills.

3. Appraises managers on management practices.

4. Encourages open discussions on employee development &

career prospects.

5. Provides periodic progress reviews alerting employees of

areas they need development before annual performance
appraisal summary.

6. Links individual performance to financial rewards.

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C-Performance Management Mechanism

Clarify and agree upon the job content, objective, .1

expectations, appropriate action items, resources and coaching
support to enable the employee to work in a focused and
.empowered way

Assess performance and build a .3
development plan, in a more or less
formal meetings, whenever the manager
and the employee may determine
.appropriate
The Annual Appraisal is simply formal
synthesis of the performance review
.meetings over the year
9
Identify and develop the skills, .2
behaviors and experiences that must be
acquired by the employee to be more
effective in his/her current job and
prepare himself/herself for other
responsibilities in the future
D- Findings from the survey conducted

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D- Findings from the survey conducted – cont’d

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 E- DESIGNED TOOLKIT

Objectives & KPIs .1

Preparation Process

Objectives Review & Monitoring .3

and improvement Process Objectives Cascading .2
Process

12
 E- Designed Toolkit cont’d
E1- Performance Management Toolkit

1. Objectives & KPIs Preparation Process:

• Objectives must be aligned with Business Priorities and broad strategic
objectives that are summarized in the 4Cs
BU KPIs must be
included so that each
employee knows the • Each employee must have clear objectives from top management till shop
broad target the
company is pursuing to floor in order to achieve the department’s broad objectives
achieve

• Clear Key Performance Indicators (KPIs) must be defined (measurable

whenever possible) for every objective so that evaluation of achievements is
decided with higher accuracy.

Weight assigned to every objective is to be divided into

:two parts
- The major part dedicated to personal achievement
The smaller part is dedicated to the collective -
performance achievements

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 E- Designed Toolkit cont’d
E.2 Performance Management Toolkit cont’d

2. Objectives Cascading Process:

• Cross Departmental alignment of personal objectives among Directors and
Works directors in Plant and HO.
When objectives are
cascaded the cross
departmental
arrangement is still in • Department / Director Objectives are to be well communicated and available
place, thus avoid
conflicting goals. with every corresponding team member thus all is aware of the broad targets
we are working on.

• Every employee holding a managerial or supervisory position is to

communicate his objectives his subordinates within a clear cascading
framework.

Every employee is aware of his/her

department objectives such that
he/she is not only concerned with his
personal ones. We are all working
together to achieve main goals!

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 E- Designed Toolkit cont’d
E.3 Performance Management Toolkit cont’d

3. Objectives Review & Monitoring and improvement Process :

• Monthly review of KPIs
• Results can be posted via mail or department board so that every
employee is aware of where his/her department is standing.
• In pursuit of performance recognition and employee motivation, results
P-D-C-A mechanism achieved and reported as per the monthly report are to be published on
is adopted which acts
as a management a monthly dashboard with illustrations of the results. This allows for
tool that drives better communication of departmental as well as BU results.
management
decisions and actions •
rather than being a
The strategy and action plan for achieving the objectives and KPIs are to
reporting tool. be clearly communicated to all teams before putting them into action
• Recognition of exceptional work or situations is to be posted as well as a
way of motivating and rewarding the good work exerted by exceptional
employees.
• Mid Year Review of objectives
• All objectives are to be reviewed for all employees by mid year through
a mid year appraisal interview thus make sure everything is going on
track and modify the objectives whenever needed to serve market
15 developments and business conditions.
PDCA Management Cycle

It refers to Management tool that acts as an approach to

continuous improvement. The process provides a framework that
analyzes the current situation and sets courses of action to ensure
.effective goal achievement

Step 1: PLAN  Establish the objectives and processes necessary to deliver results
in accordance with the expected output (the target or goals)

Step 2: DO  Implement the plan, execute the process, and make the product.
Data collection is needed regarding the results through a continuous process of
.monitoring

Step 3: CHECK  Study the actual results (measured and collected in "DO" above)
and compare against the expected results (targets or goals from the "PLAN") to
ascertain any differences. Spot the deviations from the original plan in order to be
.able to take corrective actions

Step 4: ACT  Request corrective actions on significant differences between actual

and planned results. Analyze the differences to determine their root causes. Design
the corrective actions needed in order to accommodate to the changes and allow
.for achieving the goals
 F- SMART VS. SMARTER
OBJECTIVES

.vs

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 F- SMART vs. SMARTER Objectives cont’d

Abbreviation Word Explanation

S Specific
Objectives should specify what they need to achieve

M Measurable
You should be able to measure whether you are meeting the objectives or not

A Achievable
? Are the objectives you set, achievable and attainable

R Realistic
? Can you realistically achieve the objectives with the resources you have

T Time-bound
? When do you want to achieve the set objectives

E Extending
The objective should stretch the performer's capabilities

R Rewarding
The objective should contribute to an effort that might get rewarded for

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 G-Examples on writing & cascading SMART objectives
Your Objectives shall fall under the umbrella of the business priorities / 4Cs
1. Clean/Green/Injury Free
2. Care & Connect With People
3. Competitive advantage through cost & cash advantage
4. Customer equal business

Example of Electrical & Automation Objectivities

Microsoft Excel
Worksheet

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 H-Examples on Performance Review & Continuous Improvement

Electrical Department Monthly KPIs review & illustration Session conducted at

28-03-2012 in the VIP Room with 26 attendees from various Electrical Dept.
Teams; (Process Leaders, Team Leaders, Sr. Engineers, Engineers &
Supervisors)

Electrical Department Monthly KPIs Report

Adobe Acrobat
Document

Department KPIs figures & targets were printed & sent for all dept. teams &
workshops.
KPIs board will be purchased & placed in the most visible & vital areas.

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 Clean, Green, Injury Free

Clean, Green, Injury Free KPI

Cascade safety objectives & expectations to all

employees & engage and mobilize Review the personal safety KPIs during the midyear review
Operations plant teams to create safety mindset

Raise the housekeeping standard at the plant One housekeeping campaign per department per quarter

Accommodation advisory: complete the building of the

HR &
new accommodation facility and have the old one Building ready by end of April
Administration
demolished

Finance Actively engage with behavioral change through VFL Carry out 2 VFL/Month with recommendation report if founded

Commercial LCE EXCOM sponsor for housekeeping Housekeeping campaign every quarter

Lagging indicators : fatalities for employees &

Supply Chain Fatalities 0
contractors

Legal Lagging indicators : LTIFR for employees & contractors LTIFR<1

Strategy & LCE EXCOM sponsor for working at heights advisory Carry gap Analysis, develop BU action plan, implementation
Development implementation & Monitoring

Communications Include safety topics in all communication materials On Going - production of communication materials
 Customer Equals Business

Customer Equals Business KPI

Make sure quality of all products meet customer expectations/usage

Operations Quality contract IQP>96%
characteristics
HR &
by April 2012
Administration Sales academy program is launched
Reduce waiting time by applying time slot booking for drivers through Minimum waiting time to clear waiting area by
the IVR Q2
Commercial Establish product development function inside commercial dept. to
improve process of By end of Q1
product development using Lafarge policies & methodologies
Supply Chain OTIFIC (based on actual delivery time vs. time slot required by customer 96%
use our internal communication channels to promote customer service
Communications Ongoing - Quarterly magazine & TV screens
culture
 Care & Connect With People

Care & Connect With People KPI

Number of certified CROs, Inspectors &

Operations
Complete POM modules implementation for 90% of the 16 modules Planners
Transformation project: implementation of action plans related to the HR
of all the All action plans done by end of Q1
HR & taskforces as per the roadmap identified in each area
Administration
Training Calendars (Technical & Non Technical) are in place to ensure
End of Q1
covering all employees' training needs
Finance New country finance shared services organization in place Structure up & running by end of Q1
Continuous monitoring and all areas of
Commercial
Make sure IDPs of direct reports fully implemented development are covered
Synergize with aggregate quarry operations for dump truck & back haul
Supply Chain Generated cost savings
opportunities
Legal Provide legal support & services to all Lafarge business in Egypt Quality of service
Strategy & Continuous monitoring and all areas of
Development Make sure IDPs of direct reports fully implemented development are covered
Conduct, analyze survey & propose
Communications
Conduct employee satisfaction survey to measure employee satisfaction recommendations by Q4
 Competitive Advantage through cost & cash management

Competitive Advantage through cost & cash management KPI

Imbed cost reduction into plant planning cycle and create

Operations Monthly cost reviews
strong cost culture
HR & Maximize the use of the technical center as a revenue
Target>100K Euros
Administration generating facility
Identify potential areas for cost saving and eliminate all
Cost optimization initiatives by end of Q2
extras through managing spend better taskforces
Finance
Keep CAPEX spending under tight control within budget
 
envelope
Commercial Deliver budget local sales volume kt 8,797
Evaluate the logistic organization & conduct necessary
Supply Chain Effective Logistics organization by end of Q1
changes
Generate cash through best utilizing of pending issues (Nile Cash generation either by finalizing the deal or renting the
Legal
City) premises
Communications Control departmental cost within the budget Potential savings
 Old Objectives For PMS
Planned Actual
# Objective Year 2011 Results
Weight Achieved
 All job plan created on 2011 uploaded
 Create new database for tracking and following up
Maintenance:
1  All complete WOs sent from PM already done  15%  15%
Support for maintenance teams.
 Discoverer report unable anyone to follow up budget
vs cost
 Created new database for tracking and following up cost
Inventory: and monitor the Purchasing requisition budget
2  15%  15%
Cost Optimization and Inventory Level  Created discoverer reports for Inventory level
 Daily inventory value reports
 Helping in produce reports outlining spare parts situation
to secure all spare parts ensuring non stoppage for
equipments
Spare parts Planning:  Creating reports and charts depicting spare parts
3  30%  30%
Support planning team consumption related to different assets.
 Constantly determine types and quantities that meets the
criteria of slow moving spare parts
 Integrate all items with Lafarge Coding
 Arrange the archive in a soft copy
 Create and maintain database for PandP KPIs
 Create and maintain database for overhauls operation
 Maintain PandP database
 Maintain database for job plan and transfer it on Oracle
4 Document and Data base:  40%  40%
system
 Administer the data going in and out of Oracle system
ensuring that
 Shared server organized in a simple manner
 Databases reports
Total Score 100% 100%
Grand Total = Total actual achieved * 80% 80%

Amr Attia Mohamed – Lafarge Cement Egypt Mechanical Maintenance

Planning and Preparation Team Leader