Performance Management A d iscussion of Owens Corning’s global performance management process (ADP)

1. Performance ManagementA discussion of Owens Corning’s globalperformance management process (ADP) Ray O’Lenic e*Employee Leader 8/22/2002

2. Business Drivers – HR Integration and Human Capital Performance Selection PerformanceManagement Succession Planning Strengths Goals Performance Career Development Learning & Development Compensation Enabling people to achieve superior business results

3. Business Drivers – Employee & Leaders Expectations • Employee Expectations - Employee Survey results identified employees expectation that promotion, compensation and development would be supported by an objective performance management process. • Leader Expectations - Leaders needed information upon which to base selection/nomination for current and future openings and other staffing decisions. • Sr. Leadership Expectations - Sr. Leadership directed that compensation be driven by performance. • Scope includes all salaried employees world-wide.

4. Achievement and Development Process Human Resource Review Goal Alignment Continuous Feedback Summary Discussion Elements of Performance Management (ADP) Jan-Feb 01 Jan – Dec Jan – Feb 02 Mar – Apr 03 • All Salaried employees • Global & Multi-lingual • e*Enabled • Integrated (systems & processes)

5. Achievement and Development Process Human Resource Review Goal Alignment Continuous Feedback Summary Discussion Elements of Performance Management (ADP) Goal alignment focuses employees on business goals

6. Goal Alignment – Balanced Scorecard Financial & Process Human Capital Customer Goals are specific objectives for achieving business, results, improving customer satisfaction or maximizing performance of our human capital.

7. begin Review higher level goals Develop action plans for goals “How do we/ should we contribute?” Identify customers and FFU criteria Goal Setting/Alignment “Do goals meet criteria and guidelines?” Determine team and individual work “Are goals aligned?” Develop goals Goal Setting/Alignment Process

8. begin Review higher level goals Develop action plans for goals “How do we/ should we contribute?” Identify customers and FFU criteria Goal Setting/Alignment “Do goals meet criteria and guidelines?” Determine team and individual work “Are goals aligned?” Develop goals Goal Setting/Alignment Process Goals Should Be: Meaningful Realistic/Doable Aligned Balanced Measurable

9. Create New ADP: Start New ADP Start New ADP

10. Goals Panel: Goals Goal Section: Identify a higher level goal that will be supported by an individual COT. You may indicate the same goal multiple times that will be supported through different COT’s. Goals

11. Development Areas Panel: • For each Development Area you should complete the following information. Development Areas Development Areas

12. Achievement and Development Process Human Resource Review Goal Alignment Continuous Feedback Summary Discussion Elements of Performance Management (ADP) A continuous process to collect feedback from many sources on performance against goals, customer satisfaction, development, etc. From internal and external sources – employee driven.

13. Identify feedback sources Decide on actions to take Solicit feedback Evaluate progress Document & interpret feedback Seek additional feedback Continuous Feedback Process

14. Identify feedback sources Decide on actions to take Solicit feedback Evaluate progress Document & interpret feedback Seek additional feedback Continuous Feedback Process Self, leader, Peers, team, Customers, Suppliers, etc.

15. Identify feedback sources Decide on actions to take Solicit feedback Evaluate progress Document & interpret feedback Seek additional feedback Continuous Feedback Process Progress on goals, Expectations, Interpersonal Skill, quality, etc.

16. Elements of ADP Achievement and Development Process Human Resource Review Goal Alignment Continuous Feedback Summary Discussion Annually, each employee has a formal discussion to review performance vs goals, feedback, completion of development/growth and goals for the upcoming year.

17. Mutually set the time for the meeting Document the discussion Meet&discuss Set initial goals for new year Prepare for the discussion Summary Discussion Process

18. Characteristics Leader Employee • Leads discussion • Discusses achievements • Shares feedback • Discusses Career & Development needs • Discuss next year’s goals • Initiates • Leads as required • Listens • Coaches • Challenges • Supports • Provides feedback A frank and open discussion about achievement of goals, development and next year’s goals.

19. Goals Panel: Goals Goal Section: Identify a higher level goal that will be supported by an individual COT. You may indicate the same goal multiple times that will be supported through different COT’s. Goals

20. Strengths Panel: Select your Strength by clicking on the drop down box and selecting the desired competency. Provide brief examples of the competency to support your selection. Strengths Strengths

21. Development Areas Panel: • For each Development Area you should complete the following information. Development Areas Development Areas

22. Career Objectives Panel: Short-Term Objectives: Career Objectives Outline up to 3 Career Objectives for the next 12 months. Also indicate your Target Date for reaching your stated objective. Career Objectives

23. Comments & Signoff Panel: Employee Comments: This section allows you to summarize your performance for the Review Period. These comments should not be a repeat of those in previous sections. Utilize this section for additional comments and opinions regarding your Annual Summary Discussion. (i.e., personal opinions on evaluation given by your leader) All comments documented in this area will remain in your own words. Comments & SignOff Comments & Signoff

24. Comments & Signoff Panel: Leader Comments: Your leader will then enter comments on your performance for the Review Period. You will then be able to review the comments one additional time before the document is finalized. Once you have reviewed the comments, to finalize the document you will need to enter the final review date. Your leader will also enter the date they complete their final review of the document. Comments & SignOff Comments & Signoff

25. Achievement and Development Process Human Resource Review Goal Alignment Continuous Feedback Summary Discussion Elements of ADP

26. Achievement and Development Process Human Resource Review Goal Alignment Continuous Feedback Summary Discussion Elements of ADP A leadership process, facilitated by HR, to discuss HR implication of business strategies. It follows completion of the ADP process. org changes, individual EE needs, job moves, training, successions, diversity opportunities and recruiting needs are discussed – company wide.

27. HRR Outputs • Plans for job movements, succession planning, recruiting • Development plans for employees • Feedback to Training and Development organizations • Shortfalls in structure, skills, training, and manpower • Preparation for Strategic Human Resources Review

28. ADP (Performance Management) Critical Success Factors • Strong linkage to achievement of business goals • Sr. Leadership Support • Employee commitment and involvement • Employee driven process • Global technology infrastructure & e*APP • Training – leaders, employees

29. Technology HR Portal “HR OnLine” • Global • Technology • Infrastructure • Networks • Desktop • PeopleSoft 8.3 • Broadvision (future) E*learning Materials Other HR E*Apps E*Employee ADP App Technology Enables – People create success

30. Measurement • Integrated global data supports metrics • Company-wide • Top to bottom • Metrics on completion and status for every employee, manager, business, etc. • Used to support HR leaders & Managers in managing their EE groups.

31. Business Drivers – HR Integration and Human Capital Performance Selection PerformanceManagement Succession Planning Strengths Goals Performance Career Development Learning & Development Compensation Maximizing human capital performance is the key driver

32. Q&A Q&A