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Performance appraisal and reward systems
Christine Kroner, PhD
Expertise Group Leader Vascular FunctionNutrition department
Unilever Food and Health Research InstituteVlaardingen, the Netherlands
Unilever Research & Development
“Discover”: Research CentresFoods: Vlaardingen (NL)HPC: Port Sunlight (UK)Corporate: Colworth (UK)
Mumbai/Bangalore (India)Shanghai (China)
“Design”:Global Technology Centres
“Deploy”:Regional Innovation Centres
Home & Personal Care - Unilever Foods - Corporate Research
Operating Framework: Interdependency of R&D and Marketing
World ofMarkets
Customers
Consumers
World ofScience
&Technology
R&D
MARKETING
INTERACTION
BENEFITS
NEw
BRANDS
Joint Defining Business Opportunities
Grow Unilever Business
Challenges within our organisation…
• Short product cycles
• More competitors on market
• Develop, improve & introduce new, consumer relevant healthy food products at an increasing pace- for globalconsumers
• Cope with failures celebrate successes and continue quickly (motivation boost!)
• Global science driven projects
For R&D this means…
Increasing pressure to boost business results by:• Long-term innovations in already existing product areas
• Exploring new benefit areas
• Initiating new businesses (internal and external)-Open innovations
Balance between high quality science, high speed of delivery, short term vs long term delivery
More work in shorter time underincreasing pressure, in a global environment
Key to success
Employees Manager,Team Leader,Supervisor
Excellent functioning R&D departments: driven, innovative, creative, successful, focussed & quick in delivery
Individuals
Role of research manager…
• Open, stable and interactive environment where knowledgeand information are readily available and people can grow.
- vision: (what is our aim/what do we need to achieve)- recognition- feedback- trust and comfort- continuous development and learning
• Go the extra mile!!
• Quality of research (methods, practices, reporting, documentation)
Reward & award is key for securing employers motivation.
Understanding the scientists
• Special conceptual frameworks, vocabularies, discipline culture which is different from e.g. support stuff
What do they need?• A work environment with fulfillment- A great place to work
• Reaching his full potential – Development & career options
• Inspiring environment: attract best people…the best peoplesecure continuous success, success attracts best people
What a scientist wants…
A great place…
Emotional Social…to interact
(solo vs team; own vocabular)
Intellectualto think…
(great brains)Physical…to do (excellent,
Safe workplace)Spiritual…to aspire
(culture, vibrant)Vitality
Think tanksForums
Away daysMT-Updates
SHEQ
Deliver…on time
in full(framwork)
Tools within Unilever …
Promote and reward positive behaviourReduce and neutralise negative behaviour
1. Performance appraisal
2. Reward systems
Make Unilever a great place to work
Attract best people, develop and keep them
GPS
PR
One common vision and mission
Common values
MIS
CoB principles
The Global People Survey
Understanding, belief, executionQuarterly tracking (former “Unilever Pulse” questions)
• Strategy, SIA, Must Win Battles• Operating Framework• Vitality• Pace of change• Keeping informed
Leadership, commitmentAnnual tracking(GPS questions)
• Confidence, trust• Direction, vision• Leading by example• Morale• Pride
Worldwide questionnaire,all Unilever employees, all worklevels
UNILEVER
Our mission is to add vitality to lifeWe meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life
Performance Appraisal
Elements of a performance appraisal
• One common mission, vision and (long-term) strategy• Clear roles and responsibiltities
– Job profile, role description aligned with Worklevel
• Clarity on what is expected & measure it!– Strategy into action plan (linking to business targets) quarterly
update– Individual workplan (reviewed quarterly)
• Set achievable goals– Personal development plan (PDP reviewed quarterly)– Improvement, career development
• Performance against peers– Differentiation matrix
• Develop skills and competencies- Training on the job, secondments, external courses, R&D academy
Director ofLaboratory Chief S/T/E VP R&D
ResourcesVP R&D Programme
DeploymentDirector
Programme Director
Scientist/Technologist
SVP Research & Development
Principal S / T / E
Research S / T / E
S / T / E = Scientist / Technologist / Engineer
Project manager
Lead S / T / E
DepartmentDirector
Project leader
Senior S / T / E
WL5
WL4
WL3
WL2
WL1
Roles and responsibilities-Alchemist Tool-
Strategy Into Action - Individual Workplan 2007 Name : Jobtitle: Period covered if pro-rata: Department: Worklevel: Important: This work plan will be executed in the framework of the Unilever Code of Business principles and Foods Q&SHE policies and guidelines.
Objectives Activity KPI Timings Individual performance
against workplan
Sign for agreement Linemanager signature: Employee signature: Date: Date:
Reward systems
Unilevers’ reward policy
• To attract, motivate and retain high performingindividuals.
• It does this by reference to:– Pay for responsibility– Pay in line with market value– Pay for performance– Pay for potential (High potentials)– Pay for results
Basics of a reward system
• Open and transparent system with a peer review mechanism (DIF)
• Accepted by the R&D community (fit withculture)
• Fair (measurable)
• Warrants differentiation
Differentiation Matrix- a performance tool L ea dership Differentia tion Too l W L 4
C o n t in u o u sly R a isin g t h e b a r !
C o n siste n t ly Ex ce e d in g
Ex p e ct a t io n s
H O W
In co n sist e n t inm e e t in g
e x p e ct a t io n s
In co n sis t e n t in C o n sist e n t lym e e t in g W HA T e x ce e d in ga g r e e d in d iv id u a l a g r e e d in d iv id u a lb u sin e ss t a r g e t s b u sin e ss t a r g e t s
Beh
avio
urs
& V
alue
s
Sust
aine
dde
liver
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Standards of leadershipCommon values
1. Global mindset2. Real accountability3. External orientation4. Action not debate5. Team alignment6. Build superior talent
HOW
WHAT
Framework of a reward system
Non-material Material
- Research price (yearly)- Publication price (yearly)- Patents (yearly)- Quarterly reward- Best grant (yearly)- Best project delivery (yearly)- Training/congresses
-Salary increases-Variable salary increase- Stock options- Variable Payments(business & own achievements)- Promotion- Career options
etc….
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