British American Tobacco Performance Management MBA HRM 16.4.99 HSEBA

1. British American TobaccoPerformance Management MBA HRM 16.4.99 HSEBA

2. British American Tobacco

3. British American Tobacco Leading international tobacco company Confidence in the future of thecigarette market Controversial product A clear vision for success

4. Our industry • Annual world market • consumption: • 5.5 trillion cigarettes • 15 billion cigarettes sold around the world every day • Tobacco provides a livelihood • for 145 million people

5. British American Tobacco • Highly ranked amongst global companies • 13% world market share • Gross turnover £24 billion in 1997

6. Philip Morris - 17.2% British American Tobacco - 13% RJ Reynolds - 5.8% JTI - 5.1% Rothmans - 3.1% Reemtsma - 2.2% International cigarette companies CNTC30.3% Others23.4%

7. Operations in 180 countries Manufacturing in 48 countries British American Tobacco world-wide Over 100,000 employees

8. British American Tobacco regions Europe America-Pacific Asia-Pacific *AMESCA Latin America and the Caribbean *Africa, Middle East, South & Central Asia

9. Our vision for the future • World’s number one Profit performance alongside top global companies

10. British American Tobacco

11. British American Tobacco Nordic Founded 21.1.1909 under the name of Itämainen Paperossitehdas i.e. Oriental Cigarette Factory Renamed as Suomen Tupakka Oy in 1931 Renamed as BAT Finland Oy on 1.9.1992 BAT Nordic activities started in North Europe 1995 Renamed as British American Tobacco Nordic Oy in 1997 Net turnover MFIM 250 in 1998 Staff 88

12. Performance Management

13. Performance Appraisal and Career Enhancement system (P.A.C.E) • PACE is a key management process for reviewing the past and planning the future. • It is a management tool which aims to: • * Improve the performance • * Enhance the development

14. Principles of PACE • Pace is competency based • It is widespread throughout the British American Tobacco World • Pace encourages objectivity • Pace emphasises development

15. PACE Agenda Performance review Competence review Development plan Setting objectives for next year Future career preferences

16. Performance Review; Rating • Rating Definition & Description • A Exceptional Performance • The individual has exceeded expected performance criteria by a wide margin in all key result areas • B Excellent Performance • The individual has exceeded performance criteria in most key result areas and has not produced any less than satisfactory results. • C+ Above Target Performance • The individual has either achieved expected performance criteria with one critical area exceeded or has exceeded standards in two critical areas with the result that a lesser priority area is under-achieved. • C On Target Performance • The individual has either achieved the expected performance criteria in all key areas or has exceeded performance in one critical area with the result that a lesser priority area is under-achieved. • C- Below Target Performance • The individual has achieved the expected performance criteria in all but one critical area. • D Poor Performance • The individual has under-achieved in a number of key result areas. • E Unacceptable Performance • The individual has constantly failed to meet the performance criteria in all key result areas.

17. Competency Review • Competencies are skills, knowledge and behaviours which underpin effective managerial performance. • There are two classes of competence : • Management • Technical

18. Management Competencies · People Leadership · Resource Management · Business Development · Communicating · Influencing · Creative Thinking · Rational Decision Making · Career Commitment

19. Development Plan An agreed plan to address the identified areas for improvement, covering more than one review period Training courses/seminars Alternative development methods

20. Objectives for Next Year Key Result Areas (KRAs) and agreed specific performance criteria for the coming year Objectives should be S.M.A.R.T. Specific Measurable Attainable Relevant Time-bound

21. Future Career Preferences Career preference Next job preference, if identified Special circumstances Mobility

22. Career management Growing talent from within Graduate recruitment and Management Trainee Programme Pace discussions Career development meeting procedure Career Reviews

23. Career development meeting procedure Global approach Consistency world-wide Well informed, thoroughly debated and effectively managed judgements and decision making on the future careers of managers

24. CDM Procedure Pace Guidelines (November) Changes Schedule Key Capabilities/ Competencies KRA- Issues MT Local CDM Follow-up of Plans Update/Review Graduate Recruitment Discussions (January) Head of function with mgrs of target population (combined with the Mgrs own PACE discussion) Feedback from Mentors Preparing of appraisers/ appraisees (December) HR Local CDM (ASAP) Feedback from Regional and Functional CDMs Update and follow-up of issues Graduate Recruitment PACE (31 Jan) Performance Ratings Career Aspirations Development Needs Strengths and Weaknesses Views and proposals Prepared by Head of Function and HR Manager Local CDM (16 Feb) Potential Definition Career Plans Development Plans Succession Plans Graduate Recruitment Functional CDM ExecuTRACK Regional CDM (22.-23. April) Area CDM (End Feb)

25. Career development meeting procedure • CDM agenda • - Review of current situation and its implications • - Organisation development • - Potential definitions • - Career plans • - Succession plans • - Development plans • - Management trainee intake and development