The Performance Excellence Process (PEP) is an

integral part of our Xerox Lean Six Sigma strategy. The

Performance Excellence Process is how we align strategies

and performance objectives across the entire corporation.

It also is how we manage performance to ensure we

deliver value to our customers. The result is that we

deliver improved and profitable business results that

increase shareholder value. This allows us to reinvest

in the growth of our company.

PEP is based on sound quality principles and effective

performance management. The process consists of three

phases, as shown in the PEP diagram below:

• Setting direction

• Deploying direction

• Delivering and inspecting results

(daily work processes)

Individual Objectives

(Performance Excellence Plans)

In 2001, the Performance Excellence Process replaced the

Managing for Results process and local-level performance

management processes and integrated them into a single,

global process for the corporation. PEP is applicable to all

performance levels (Operating Unit, Organization/

Function, Department, Team/ Workgroup, Individual).

The Performance Excellence Plan helps us document our

objectives, measures and targets.

A management process is implemented at every level

of Xerox and provides structured opportunities for

setting direction, communicating direction, and delivering

and inspecting results.

Performance Excellence ProcessPerformance Excellence Process

We deliver quality and excellence in all we do.

Quality means leading the market with innovative

products, services and solutions that are highly

valued by our customers and result in superior

business performance.

Xerox Lean Six Sigma will be the way we achieve

superior business performance and customer value.

Our Xerox Lean Six Sigma methods and tools

enable our people to continually focus on the

customer, create higher levels of customer value

and improve business results.

Five principles were defined to represent the

enactment of the Xerox Quality Value:

Customer-focused employees, accountable for business

results, are fundamental to our success.

Our work environment enables participation, speed and

teamwork based on trust, learning and recognition.

Everyone at Xerox has business objectives aligned to the

Xerox direction. A disciplined process is used to assess

progress toward delivery of results.

Customer-focused work processes, supported by disciplined

use of Lean Six Sigma tools, enable rapid changes and yield

predictable business results.

Everyone takes responsibility to communicate and act on

benchmarks and knowledge that enable rapid change in the

best interest of customers and shareholders.

AA Core ValueCore Value Five Principles to Live Our Core ValueFive Principles to Live Our Core Value

Delivering and Inspecting Results – Employee and

Manager Role

Each organization’s management process provides structured opportunities for performance management.

The manager and employee/team are jointly responsible for managing both job performance and development.

The manager provides coaching and feedback to employees/ teams on an ongoing basis. It is recommended that every Xerox employee receive, at a minimum, two (2) performance reviews annually:

Interim (mid-year) coaching and feedback session

Annual (year-end) performance review

When assessing performance, the focus is on results delivered against the measures and targets.

Additional information can be found at:

http://xww.docushare.world.xerox.com/dsweb/View/

Collection-138359

Setting Direction

Direction setting is completed by the Corporation and Business Groups by November.

Deploying Direction – Employee and Manager Role

The first step in deploying direction is for individuals to understand the direction set by the corporation.

In December or early January, everyone receives the following information (hard-copy or Web-based):

The Corporate Direction and Performance Excellence Plan

Organization Direction and Performance Excellence Plan with specific measures and targets, as appropriate

Appropriate Unit/ Team Level PEP Document

The manager and employee/team agree on critical performance objectives, measures and targets that are specific and challenging and that support the delivery of the organization objectives.

The manager and employee agree on a Personal Developmental Plan.

Everyone at Xerox will have a written Performance Excellence Plan and Personal Developmental Plan by the end of January or early February 2005.

Performance Excellence Process PrinciplesPerformance Excellence Process Principles

Vision

Our vision is “helping people find better

ways to do great work…” by constantly

leading in document technologies,

products and services that improve our

customers’ work processes and business

results.

Mission

Therefore, our mission is to become

change agents / innovators – using Xerox

Lean Six Sigma to constantly search for a

better way to meet our customers’

challenges… and to create new

technologies, products and services that

enable better results for our customers.

Enduring Values We succeed through satisfied

customers.

We value and empower our employees.

We deliver quality and excellence in all we do.

We require premium return on assets.

We use technology to develop market leadership.

We behave responsibly as a corporate citizen.

2005 Goals Improve customer experience

Grow revenue

Improve profitability and cash flow

Create a great employee experience

Live our values

Performance Excellence Process PrinciplesPerformance Excellence Process Principles

Year-End Overall Summary (for year-end review)Summarize the employee's/team's overall performance for the full year. Include the impact of situational factors or constraints.

Interim Overall Summary (for Interim Review)

Summarize the employee's/team's overall performance for the interim. Include the impact of situational factors or constraints.

We have discussed and agreed upon the above performance objectives and

measures / targets.We have completed the interim review. We have completed the year-end review.

Employee Signature  

Date Employee Signature 

Date Employee Signature 

Date

Manager Signature  

Date Manager Signature Date Manager Signature Date

    2nd Level Manager Signature(if required by your organization)

Date 2nd Level Manager Signature(if required by your organization) 

Date

NOTE: As part of the interim review session, please complete a Personal Development Plan (52164)

Role of Management Team: Shared Role of Management Team: Shared accountability for the performance and accountability for the performance and development of the European businessdevelopment of the European business

StructureCulture

Strategy

Execution

Leadership

Develop and maintain:A clearly stated and focused European

strategy A common high performance culture

Flawless operational executionClear and simple structures

Demonstrate and develop collective leadership:

Values and behaviourBusiness ethics

Talent

Decision: behaviours to support the role of Decision: behaviours to support the role of Management TeamManagement Team

Respect others

Helpful• Seek to

understand each other, and guests

• Accurately restate the opinion of others outside meeting

• Act the same inside and outside meetings

• No mail, SMS, PC during meeting

Full Contribution

Helpful• Clarify nature of

contribution required

• Take steps to get everyone’s view on the table

• Acknowledge when we don’t know

Take Action

Helpful • Do what we say

we will do• Measure what

we set out to do• Finish what we

started

Work Together

Helpful• Invite input from

others• Settle bilateral

differences outside meeting

• Share ideas and experience

• Share ownership

Focus

Helpful• Concern for the

good of the whole business

• Demonstrate sensitivity to local markets

• ‘closed loop’ focus – discussion, decision, implementation

• Champion customer and employee

Make Decisions

Helpful• Come prepared,

with the data and a view

• Everyone can state the decision made

Unhelpful• Excessive

focus on the past

• Lack of attention to practical priorities

Unhelpful• Take decisions

that others can make

• Cannot articulate the nature of the decision

• Jump to a decision before everyone has had the opportunity to input

Unhelpful• Procrastination• Responsibility for

action unclear

Unhelpful• Sit back and let

others do the talking

• Lose sight of the outcome

Unhelpful• Stay within

boundaries• Get bogged

down in the detail of others’ work

• Provide insight when not adding value

Unhelpful• Spend time on other

business during meetings

• Engage in side conversations