September 2005 Copyright, Exxceed, Inc.

Performance Management & Learning

Delivering a complete solution that supportsorganization excellence & individual fulfillment

Exxceed, Inc.Dean H. DussiasPresident & CEO

September 2005 Copyright, Exxceed, Inc.

Purpose of This Presentation

• Explore how you can increase the strategic contribution to business results

• Encourage you to experiment with human capital solutions that optimize—– Performance and learning– Organization excellence and individual fulfillment

• Share performance management and development experiences

September 2005 Copyright, Exxceed, Inc.

Learning & Talent Management Drive Business Results

BusinessResults

Outcomes

Revenue

ValueCreation

Hiring

SuccessionPlanning

Performance Management

Resourcing

Development

Human Capital Management Business

Management

Competencies and other

Human Capital Information

Learning

September 2005 Copyright, Exxceed, Inc.

Focus on Metrics: Balanced Scorecard & Strategy Maps

Financial:Financial:To exceed our financial goals and accomplish our Mission, on what must we focus?

Learning: Learning: How will we sustain our ability to change & improve?

Operations:To satisfy our customers, at which operational processes must we excel?

Customer:Customer:To achieve our Vision, how do we win and keep winning, with customers??

Mission/Organizational SuccessMission/Organizational Success

Development IT, Systems& Processes

Service/ProductQuality

CustomerConfidence

CustomerRetention

Revenue growth&

Value creation

Culture

HUMAN CAPITAL STRATEGY

September 2005 Copyright, Exxceed, Inc.

The Challenge Today —What’s Driving Change in Performance

Management and Learning?

• With increasing global competition, growing and sustaining an advantage has become more challenging

• Retiring boomers/Changed view of the workplace –loss of individuals with institutional knowledge and values

• Rapidly changing skill sets – technology change –growth in knowledge

September 2005 Copyright, Exxceed, Inc.

Performance Management and LearningCreating Organization Change

• Role and job flexibility – requirements, activities changing

• Need to accelerate and focus learning

• Alignment essential to success:– Communication easier and more difficult– Employees need to know what behavior and results are

expected of them– Employees must own the behaviors and results

• Organization must continually learn and develop its capabilitiesat the employee level

September 2005 Copyright, Exxceed, Inc.

Key Questions Driving Performance Management

• How can you demonstrate that your performance management system improves employee performance and organization success?

• What processes do you have in place to ensure that employees understand and do the things that result in organization success?

• How do you ensure that your top performers are recognized, empowered, and retained?

September 2005 Copyright, Exxceed, Inc.

Key Questions Driving Learning

• How do you know that the learning you offer improves business performance?

• How do you ensure that employee capability and activity are aligned with your key organization goals and objectives?

• How do you determine the most important learning needs for each employee?

• How do you justify the value of the investment in learning?

September 2005 Copyright, Exxceed, Inc.

The World has Changed: Human Resources vs. Human Capital

Human ResourcesNecessary ElementCost/LiabilityUtilizeAdministrativeRoutine and Functional

Human CapitalCompetitive AdvantageCapital/AssetAct as OwnersValue AddedChallenge and Enable

September 2005 Copyright, Exxceed, Inc.

Today’s HR Role(s) in Transition:

Polite and Policing Partners and Players

Human Resources Transactional and

OperationalCompliance focusedCost/Liability reduction“Siloed”Mundane, Administrative,

Routine

Human CapitalStrategic with Thought

LeadershipDesirable and Value AddedCapital/Asset buildersOwned Organization-wideChallenged, Fulfilled and

Enabled

September 2005 Copyright, Exxceed, Inc.

Great Companies

The Goal: Sustainable Performance

Great CompaniesGreat CompaniesCreate Create

Sustainable Sustainable PerformancePerformance

MediocreIn every way

Too LittleResults Focus

Cut-throatand Confrontational

Individual Fulfillment

Bus

ines

s Ex

celle

nce

September 2005 Copyright, Exxceed, Inc.

Today’s Performance Management:Aspire to Excellence

• On-going process, shared by individuals at an organization

• Combination of people, information, systems and process knowledge

• Combines:– Strategic insight– Business model drivers, including metrics– Understanding of jobs, roles and responsibilities– Communication at group and individual level– Individual goals– Learning and Development

September 2005 Copyright, Exxceed, Inc.

Performance Management Excellence High Performance Workplace

• High standards, well understood– Results orientation – shared metrics – Coherent culture supporting “how” results are delivered

• Candid conversation– Focused on true business drivers – includes metrics– Tough decisions made to benefit organization and individual careers– Coaching occurs on an “everyday” basis– Periodic surveying

• Stretch objectives are viewed as achievable and inspiring

• Reasonable level of internal competition– Challenge– Fairness

September 2005 Copyright, Exxceed, Inc.

Approaches to Performance Management

Create Goal Alignment

Build Internal Capability

Develop Integrated Human Capital

Not “one size fits all”

Approach changes over time…

September 2005 Copyright, Exxceed, Inc.

Approaches to Performance Management

Create Goal Alignment

For organizations that want to:

Increase line of sight between individual behaviors, actions and goals with strategic objectives

Increase accountability of front-line staff

Base rewards on attaining organization goals

Follow balanced scorecard methodology

September 2005 Copyright, Exxceed, Inc.

Approaches to Performance Management

Build Internal Capability (Competency focus)

For organizations that want to:

Further develop the connection between knowledge, skills and abilities of their workforce and the contribution to the bottom line

Strengthen the link between growth (revenue) and R&D, product development and other major functional areas

Create more flexible and effective staffing for project-based organizations

September 2005 Copyright, Exxceed, Inc.

Approaches to Performance Management

Develop Integrated Human Capital

For organizations that want to:

Have all human capital processes reinforce the same messages

Combine the “what” of attaining goals with the “how”of competencies

Provide comprehensive dashboard and other HC metrics to senior management

September 2005 Copyright, Exxceed, Inc.

Goals-Based Approach

• Align organizational goals during strategic planning process

• Set at the organization, division, and department levels

• Cascade to individuals accountable for goal achievement

• Use Balanced scorecard dashboard to view goal achievement throughout the year– By organization, division, dept, manager, etc.– Individual goal achievement linked to org goals

September 2005 Copyright, Exxceed, Inc.

Create Goals Using Balanced Scorecard Categories

September 2005 Copyright, Exxceed, Inc.

The Power to Cascade Organizational Goals

September 2005 Copyright, Exxceed, Inc.

Summary of Performance Achievement

September 2005 Copyright, Exxceed, Inc.

Internal Capability (Competency)Approach

• Define performance templates based on comprehensive job profiles (CJPs)

• Leverage competency content where possible to expedite process– Create competency models– Validate models with SME input

• Generate aggregated competency “health” reports to ensure that mission critical competency gaps are addressed

September 2005 Copyright, Exxceed, Inc.

Assessments Display Gaps and Associated Learning Options

September 2005 Copyright, Exxceed, Inc.

The Power to Assess Overall Competency Health

Organizational competency data is displayed in chart format for management review

Comparative reports can be used to track competency improvement over time

September 2005 Copyright, Exxceed, Inc.

The Power to Drill Down and Leverage Data

September 2005 Copyright, Exxceed, Inc.

Simple to View Associated Learning

September 2005 Copyright, Exxceed, Inc.

Integrated Human Capital Approach

• Identify you high potentials as part of the performance management process

• Create development plans that support the succession process

• Improve capability to resource projects, new opportunities and challenges

September 2005 Copyright, Exxceed, Inc.

Include Measures to Capture Relevant Succession Data

September 2005 Copyright, Exxceed, Inc.

Ability to View and Modify Potential Successor List

September 2005 Copyright, Exxceed, Inc.

Commonly Shared Best Practice Recommendations

• Identify and track top performers

• Measure performance linked to business outcomes

• Provide continuous feedback and development opportunities

• Link rewards to performance and strategic objectives

• Create a culture that supports high performance

• Introduce automation

September 2005 Copyright, Exxceed, Inc.

Key Factors in Evaluating Human Capital Management Technology

• Complete solution: human capital content, software and services

• Integrated, single system with common data foundation across the entire employee life cycle (Comprehensive Job Profiles)

• Ease of integration with all other organization systems

• Scalable for large organizations

• Key Features:– Configurability to fit existing and changing processes– Natural language capability– State-based architecture– Task-orientation and ease of Workflow Management– Comment assistant and other valuable communication features…

September 2005 Copyright, Exxceed, Inc.

Exxceed Provides a Complete Solution:Content, Software and Services

HumanCapitalContent

HumanCapital

Services

SoftwareSoftwareAs a As a

ServiceService

Competencies – 9,000+Roles – 500+Jobs – 100+Links to learning - 10,000+Interview questions - 600

ImplementationCompetency ModelingStrategic ConsultingChange Management

CompetencySuiteSelectPlusPerformPlusDevelopPlusSuccessionPlusCompetencyCenter

September 2005 Copyright, Exxceed, Inc.

Thank you!

• Questions welcome…