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Finance CompetenciesManual

Global Finance

For internal use only

November 2012,

©2012 HEINEKEN International

Dear Finance colleague,

The Finance function has set itself a clear vision of, “Striving for Financial Excellence driving competitive efficiency in financial accounting and recognised improved effectiveness in business partnering, resulting in value creation and improved control.” In order to achieve this vision we must continue to enhance the capabilities of our people.

This competencies manual aims to address:• Do you know what functional competencies you need to excel in your job?• Have you identified what your strengths and areas of improvement are?• Most important, do you have a development plan incorporating these competencies that will address your

learning needs and take you to the next level in your career?

The answers to these questions lie at the heart of HEINEKEN’s Finance competency review and personaldevelopment planning process.

Together with other functions, we are committed to building a stronger culture based on performance andcompetence. The Finance competencies will support us in achieving the following specific ambitions in theyears to come.1 HEINEKEN - WIDE we share the same benchmarks to evaluate and develop the Finance capabilities.2 Every Finance colleague is clear of his or her competency profile and has an agreed personal development plan.3 All recruitment and development decision are made in reference to this competency framework.

This manual provides relevant information and tools for every Finance professional. This initiative willbenefit not only the company, but also you as an individual. Please take full advantage of the opportunities thisprogramme offers by working with your manager to identify your strengths and gaps and developing your personal development plan.

Lastly, many thanks for all of you, who have helped build this manual.

René Hooft Graafland Chief Financial Officer

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“I would like to take this opportunity to express my thanks to all of you for the outstanding work on the Finance Competency manual. The great work that has been done for this tool helps you and your colleagues excel in your job. It also makes it possible for employees to identify their needs and make a development plan incorporated with these competencies. The Finance Competency manual will now, and in the future, serve as a benchmark in the career of you and your colleagues.”

Michael O’Hare Chief Human Resources Officer

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Contents

1 Preface 4 2 Introducing the Finance competencies 63 The Finance competencies 9 1 Strategic Direction 10 2 Strategic Alignment 12 3 Business Analysis & Challenge 14 4 Integrating Perspectives 16 5 Financial Compliance 18 6 Technical Finance Advisory 20 7 Continuous Process Improvement 22 8 Transactional Finance Process Execution 24 9 Risk Management 26 10 Stakeholder Management 28 11 Financial Reporting and Communication 304 The competency review and development cycle 325 Review and PDP templates 506 Glossary 52

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Preface

The purpose of this manual

Raising the bar of an organisation starts with raising the capability of its people.

At HEINEKEN, we believe in developing people’s functional competence so all can excel in their fields of expertise. In order to ensure that we do this consistently and objectively, we are introducing a set of global functional competencies.

The Finance Competencies presented in this manual were defined by a global team of HEINEKEN Finance professionals. The competencies set the benchmark common for HEINEKEN employees in the Finance function. Only by achieving these standards will we achieve our functional goals and ambitions and enable HEINEKEN’s business agenda.

The aim of the tools in this manual is to help employee and manager to hold an objective functional competency discussion, to agree on personal development priorities and to create a plan to further develop the employee’s current and future functional competence.

Who should use this workbook?

This manual is for all Finance employees within HEINEKEN who participate in the review and Personal Development Plan (PDP) process.

How to use the manual

Read about the thinking behind the competenciesSection 2 explains the thinking behind the competencies HEINEKEN has identified as essential.

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Know the competenciesSection 3 gives you a detailed description of each competency; the ideal combination of knowledge, skills and behaviours needed in order to excel.

Follow the steps in the processSection 4 takes you through what you need to do at each stage of the competency review and development cycle, as an employee or as a line manager. In this section you will find some helpful tips and an example Personal Development Plan.

Use the templates available Section 5 has the self assessment and PDP templates that you need to begin your own personal development planning The content of this manual is available in electronic format. The following templates are available in user-friendly Word files:• Competency overview• Competency review and Personal Development Plan (PDP)

The best approach to a competency review

• You and your line manager will make the most difference to your future, the function’s performance and to HEINEKEN as a whole by carrying out the review in an objective, transparent and open manner. The more honest and open you are when doing the self-assessment the more you will benefit. This approach will enable you to get the most from the competency review and to tailor-make an effective and motivating PDP.

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Introducing the Finance competencies

Overview

Each competency consists of knowledge, skills and behavior levels: • Knowledge is information you have in your head which is applied when performing

a function (facts, plans, strategies, tools etc.)• Skills are observable abilities to apply your knowledge to accomplish something• Demonstrated Behaviour levels describe the ‘evidence’ that someone operates on a

certain level. Each level describes visible actions taken to produce business results, by using knowledge and skills

Finance competencies can be demonstrated on 3 behaviour levels:

Level 1• The impact is on the employee’s “own” area of responsibility and “own” team• People here are “contributors” and the focus is mostly about “self”, • Verbs used: understand, demonstrate, support, contribute, analyse

Level 2• The impact is on the employee’s “team /function” and effect on “other” departments• People here are generally “experienced” and the focus is mostly on the “team”• Verbs used: manage, ensure, develop, create, analyze, measure, evaluate, improve

Level 3• The impact is on the employee’s “OpCo”, “department” or “organization” • People here are “leaders” and the focus is on the whole “organisation” or “business”• Verbs used: lead, own, drive, challenge, maximize, champion, develop, innovate

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Finance Competencies

The Finance competencies are designed to simply and clearly explain the core areas within our function. They are interrelated and have been created to ensure that we have the right capability to deliver our goals. Our Finance competencies are:

1 Strategic Direction The ability to identify alternatives and opportunities in order to stimulate the

formulation of and ensure the development of coherent business strategies.

2 Strategic Alignment The ability to translate business strategy into financial and operational plans, metrics

and targets in order to ensure HEINEKEN consistently delivers on its ambitions.

3 Business Analysis & Challenge The ability to provide reliable and relevant information, insight and challenge on

business performance in order to ensure optimal decision making.

4 Integrating Perspectives The ability to understand and integrate diverse business and functional perspectives in

order to ensure alignment in decision making and actions.

5 Financial Compliance The ability to interpret and apply external regulations and internal rules, in order to

meet financial compliance obligations.

6 Technical Finance Advisory The ability to apply technical finance expertise to optimize financial decision making

and to capture opportunities in the areas of tax, financial markets and financial accounting.

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7 Continuous Process Improvement The ability to identify opportunities and realize change in order to optimize process

efficiency and effectiveness and to meet changing business requirements.

8 Transactional Finance Process Execution The ability to execute finance processes according to defined standards in terms of

quality, efficiency and timing in order to deliver best-in-class financial services.

9 Risk Management The ability to identify, measure and assess financial risks, establish and deploy policies,

controls and mitigating actions, in order to achieve an optimal balance between risk and return.

10 Stakeholder Management The ability to create and sustain high quality stakeholder relationships, in order to

manage expectations and influence decision making to achieve HEINEKEN’s objectives.

11 Financial Reporting and Communication The ability to report and communicate effectively, in order to enhance internal and

external understanding of business performance and strategy.

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3 The Finance competencies

1 Strategic Direction 102 Strategic Alignment 123 Business Analysis & Challenge 144 Integrating Perspectives 165 Financial Compliance 186 Technical Finance Advisory 207 Continuous Process Improvement 228 Transactional Finance Process Execution 249 Risk Management 2610 Stakeholder Management 2811 Financial Reporting and Communication 30

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Strategic Direction

The ability to identify alternatives and opportunities in order to stimulate the formulation of and ensure the development of coherent business strategies.

Key knowledge requirements Can understand and explain ...

• HEINEKEN as a company, its overall strategy, its products, its competitive environment, consumers, its global positioning, values & strategic metrics

• Long term strategic ambition of HEINEKEN and how this is reflected in the strategic metrics

• Macro-economic trends and their implications for HEINEKEN both in the short and long term

• The business drivers for specific region, OpCo or function

Key skill requirements Is able to ...

• Generate strategic alternatives beyond the obvious• Signal trends in both external and internal

environment• Identify the key drivers, assumptions and scenarios

for strategy formulation• Model and analyse the strategic alternatives• Articulate the implications of strategic scenarios for

OpCo, Region, Function and HEINEKEN to which they refer

• Influence our business partners and facilitate the strategic decision making process

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Demonstrated behaviour Level 1

• Demonstrates understanding for the fundamental drivers of the Beverages / fast moving consumer goods industry and its relevance for the area of responsibility

• Shows understanding of the different functions and their role in HEINEKEN

• Supports the analysis needed to make strategic decisions

• Uses and taps into internal networks and decision makers within their own area of responsibility

Level 2

• Applies knowledge about the Beverages / Fast Moving Consumer Goods industry and HEINEKEN´s market position

• Proactively works together with other functions in strategy formulation

• Develops models to support strategic decisions

• Leverages diverse information sources to enhance decision making

Level 3

• Drives the strategic agenda• Is recognised as an influential

strategic thinker by the business• Constantly explores new

opportunities together with other functions

• Actively connects and co-ordinates with other functions to formulate a coherent strategic plan

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Strategic Alignment

The ability to translate business strategy into financial and operational plans, metrics and targets in order to ensure HEINEKEN consistently delivers on its ambitions.


• HEINEKEN as a company, its overall strategy, its products, its competitive environment, consumers, its global positioning, values and strategic metrics

• Long term strategic ambition of HEINEKEN and how this is reflected in the strategic metrics and key performance indicators

• Relationship between strategy and operational reality : from strategy formulation to execution

• Financial processes and forecasting cycles


• Determine the business drivers and key performance indicators that reflect set strategic metrics

• Set target levels for all key performance indicators• Create and utilize financial models and analyses for

operational planning• Manage top-down and bottom-up planning and

forecasting processes

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• Demonstrates a basic understanding of the strategy

• Prepares robust financial scenarios, plans and targets for areas of direct responsibility

• Contributes to the alignment of bottom up plans with top down targets

• Co-ordinates financial planning process for own area of responsibility

Level 2

• Connects strategy to underlying business drivers

• Translates strategic plans into short term actions

• Manages the forecasting cycle and process

• Engages with all functions to ensure operational plans and financial plans are aligned

• Sets robust key performance indicators

• Challenges the business to ensure targets are stretching but achievable

• Anticipates external and internal changes and potential impacts on defined plans

Level 3

• Leads successful implementation of the strategy

• Shapes and drives the overall forecasting process

• Creates commitment and consensus through the entire organization on strategy and operational plans

• Mobilises the business to mitigate impacts on plans from external changes

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Business Analysis & Challenge

The ability to provide reliable and relevant information, insight and challenge on business performance in order to ensure optimal decision making.


• Basic financial models, relevant theory, processes and systems applicable to the finance function

• How the finance function and its different fields of expertise apply to HEINEKEN


• Business drivers for the respective Region, OpCo and Function


• Rigorously apply analytical skills to quickly identify key insights, issues and trends

• Translate complex information into simple and accessible messages that drive action

• Apply own judgement and make recommendations• Remain objective and independent• Demonstrate (financial) integrity• Challenge constructively and fact based while

remaining resilient• Create and utilize financial models and analyses for

operational execution

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• Demonstrates knowledge of basic concepts, relevant theory, processes and systems applicable to the function and applies them when performing analysis;

• Performs analysis of quantitative data, identifying the key insights;

• Contributes to reliability, relevance and quality of information delivered on business performance;

• Constructively challenges team members and handles critics;

• Identifies and anticipates key business risks and opportunities.

Level 2

• Identifies what analysis is required

• Analyses complex quantitative and qualitative data, quickly identifying the key insights, issues and trends

• Provides information with action (insight and advice) to the business.

• Challenges in an objective and independent manner

• Ensures key business risks and opportunities are known and addressed

Level 3

• Stimulates thinking of different perspectives

• Champions complex quantitative and qualitative analysis, quickly identifying the key insights, issues and trends

• Shapes information to management with insightful external and internal perspectives

• Promotes challenger mind set • Influences how business risks

and opportunities are addressed.• References external benchmarks

to provide context for business performance.

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Integrating Perspectives

The ability to understand and integrate diverse business and functional perspectives in order to ensure alignment in decision making and actions.



• Business drivers for the respective Region, OpCo and Function

• HEINEKEN internal networks and structures


• Build relationships and networks• Act as linking pin• Anticipate and manage business partners interests• Resolve conflicts in a constructive way • Remain objective whilst appreciating and

understanding different perspectives of business partners

• Demonstrate independent judgment

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• Establishes and maintains relationships with different business partners

• Co-operates constructively with different business partners

• Uses common language with the business

• Incorporates information and view of other functions into own work

• Represents Finance function in cross-functional initiatives

Level 2

• Actively connects and interacts with internal business partners

• Creates healthy debate with business partners by providing professional scepticism

• Resolves differences of opinion in business discussions and integrates different interests

• Transforms complexity and diversity of information into the full story necessary for decision making

• Promotes use of common business language

• Promotes cooperation between different OpCos, Regions and Functions

Level 3

• Utilizes own network to facilitate decision making processes

• Transforms different opinions into decisions that are optimal from business performance point of view

• Drives common priority setting• Acts as key business partner to

management • Define common language for the

business• Champions knowledge and best

practice exchange between different OpCos, Regions and functions

• Sponsors cross functional initiatives

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Financial Compliance

The ability to interpret and apply external regulations and internal rules, in order to meet financial compliance obligations.


• HEINEKEN company rules, policies, treatments and procedures

• SCOA & CCCS• HEINEKEN IFRS, statutory requirements and

managerial reporting rules• Tax rules and regulations• Financial markets rules, regulations and common

practices• The impact of instances of non-compliance• Other applicable internal, business controls and

external rules and regulations (e.g. pensions)


• Apply relevant rules and regulations in daily execution/operation

• Create and execute compliance assessments and report instances of non-compliance

• Resolve compliance issues• Translate external regulations and Company strategy

into internal rules, policies and regulations• Ensure internal rules remain relevant

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• Applies the relevant rules and regulations in daily operations

• Applies the procedures, policies and treatments in daily operations

• Contributes to discussion on rules in a local or functional context.

• Performs compliance assessment• Contributes to resolution of

compliance issues• Supports in documenting and

communicating rules and regulations

• Keeps abreast of changes to rules and regulations

• Signals non-compliance against key controls

Level 2

• Pro-actively defines, communicates and updates the relevant rules and regulations

• Identifies areas for which rules need to be defined or updated

• Translates rules into procedures, policies and treatments.

• Manages the compliance process• Initiates and engages

discussions on rules in the local or functional context

• Creates and delivers compliance assessments.

• Assesses and prioritises compliance issues

• Manages resolution of compliance issues.

Level 3

• Champions the relevant rules and regulations.

• Pro-actively identifies internal and external developments for which rules needs to be updated.

• Revisits the effectiveness of the existing rules.

• Ensures alignment of rules with HEINEKEN strategy.

• Contributes to industry and expert groups to influence developments in rules and regulations

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Technical Finance Advisory

The ability to apply technical finance expertise to optimize financial decision making and to capture opportunities in the areas of tax, financial markets and financial accounting.


• HEINEKEN as a company, its overall strategy, its products, its competitive environment, consumers, its global positioning, values & strategic metrics.

• HEINEKEN company rules and policies• SCOA & CCCS• IFRS, statutory accounting and managerial reporting

rules• Tax rules and regulations• Operation of financial markets and traded financial

instruments• Financial accounting (especially linkage between

balance sheet, income statement and cash flow)• Financial valuation models and techniques• Basic principles of financial reporting and

transactional systems• Capital structures, associated costs of financing and

tax considerations


• Perform a full impact assessment from different perspectives

• Anticipate developments across areas of expertise.• Leverage existing knowledge or obtain from internal

or external sources as required• Identify improvement opportunities• Identify industry developments, benchmarks and

best practices• Select, consult and manage the relationship with

external advisors• Effectively present facts and information to support

the evaluation of decisions and recommended courses of action.

• Interpret information to propose a recommendation or make a decision

• Remain objective and independent.

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• Provides advice upon request • Keeps knowledge up-to-date to

address requests for advice• Shows understands the essence

of a request for advice• Prepares or contributes to the

analysis• Discusses the outcome within

its functional area when appropriate

• Supports evaluation of various scenarios or proposals

Level 2

• Provides pro-active advice or makes decisions

• Captures knowledge by learning from industry and benchmarks to create best practices and drive consistent advice.

• Identifies cross-functional implications and impact on business objectives

• Prepares thorough analysis including a rating of possible solutions

• Clearly communicates to financial and non-financial stakeholders on complex finance topics

• Identifies opportunities for value creation.

Level 3

• Champions technical advice and decision making across the organisation

• Promotes knowledge gathering and sharing

• Addresses the impact of changes in the business strategy

• Contributes to industry and expert groups to influence developments in rules and regulations

• Anticipates the impact of changes in the external environment.

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Continuous Process Improvement

The ability to identify opportunities and realize change in order to optimize process efficiency and effectiveness and to meet changing business requirements.



• End-to-End business processes• Lean/Six Sigma/TPM methodology• Operating standards and procedures• SCOA and CCCS • HEINEKEN Enterprise Process Model• Basic principles of relevant local legislation and

procedures• Applications functionality • Process performance measurement


• Capture changes in business requirements• Identify best practise opportunities through

benchmarking• Design and implement improved business processes• Translate impact of process changes on roles and

responsibilities• Capture and share knowledge and experience within

organisation • Apply appropriate methodology • Enhance performance measurement system• Identify opportunities for the usage of enabling

technologies • Effectively deploy improvement initiatives using

change management techniques

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• Contributes to continuous process improvement initiatives by proposing changes to end to end processes

• Uses performance indicators for process improvement

• Effectively uses IT tools and applications

• Applies appropriate continuous improvement methodology

Level 2

• Trains and develops people in continuous improvement

• Challenges existing processes to identify improvement opportunities

• Benchmarks own processes to provide insight

• Quantifies financial benefits and costs associated with improvement ideas

• Analyses impact of changes on processes and ways of working

• Implements process improvements

• Ensures documentation of processes and procedures

Level 3

• Drives a culture of continuous improvement, benchmarking and innovation

• Leads improvement programs • Leads the change management

process• Challenges performance

measurement systems• Determines appropriate

methodology• Defines the functional

requirements driven by improvement ideas

• Champions cross functional approach to improvement projects

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Transactional Finance Process Execution

The ability to execute finance processes according to defined standards in terms of quality, efficiency and timing in order to deliver best-in-class financial services.


• End-to-End processes and business controls• Accounting policies, rules, standards and procedures • SCOA and CCCS• Operating standards and SLA• Standard operating procedures • Customer requirements• Ways to structure transactional finance activities • Process performance measurement • Applications functionality • Query management and dispute resolution

techniques.


• Manage standardized processes • Process transactions in an accurate and timely

manner• Plan and organize work efficiently within defined

framework• Set targets and monitor KPI’s/PPI’s in order to

measure performance level• Introduce and maintain business controls• Measure and optimize customer satisfaction• Manage exceptions and escalations with the right

sense of urgency • Implement agreed process changes and

improvements

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• Demonstrates accuracy, according to standards, accounting rules, instructions and operating procedures

• Timely processes transactions • Demonstrates understanding of

financial End-to-End processes, interactions with other parties and own role

• Uses KPI’s/PPI’s in own area of responsibility

• Identifies deviations from standards on scope of tasks

• Applies dispute management strategy

Level 2

• Ensures agreed process performance levels are met

• Analyses deviations from the standards and introduce actions in order to meet the standards

• Ensures common minimum practises

• Manages resource selection, training, continuity and replacement

• Manages conflicts of interests in priority settings

• Manages dispute policy• Anticipates potential subjects for

dispute

Level 3

• Shapes culture of providing best-in-class services

• Defines processes and standards in order to run services effectively and efficiently with appropriate business controls

• Develops performance measurement systems

• Systematically uses client satisfaction indicators to assess and improve performance

• Drives actions to maintain or increase the level of customer satisfaction

• Develops and maintains Governance structure

• Creates dispute management policy

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Risk Management

The ability to identify, measure and assess financial risks, establish and deploy policies, controls and mitigating actions, in order to achieve an optimal balance between risk and return.


• HEINEKEN business processes and decision making process

• HEINEKEN’s top financial risks• HEINEKEN’s risk policies and procedures• HEINEKEN business control framework• Risk management principles and methodologies• Key developments in financial markets• Financial risk management instruments and their

appropriate application


• Identify and report critical financial risks • Analyse financial risks and assess the risk mitigation

costs versus the potential impact • Develop and implement appropriate controls for

financial risks• Propose risk mitigation solutions• Create, implement and monitor risk management

plans• Identify best practise opportunities through

benchmarking• Collaborate across functions to ensure flows of

relevant information

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• Applies risk mitigating controls• Supports the evaluation of

financial risks• Contributes to discussion on the

risk mitigating actions• Monitors the execution of risk

mitigating actions and escalates when necessary

• Contributes to timely delivery of financial risk reporting

Level 2

• Identifies relevant risks for the business

• Analyses, measures and evaluates risks

• Constructively challenges business decisions and actions

• Creates and manages risk mitigating actions

• Develops and implements risk mitigating controls

• Effectively reports about financial risks and timely escalates when necessary

• Defines procedures and identifies policy exemptions

• Applies external best practices and standards

Level 3

• Shapes financial risk policies and ensures alignment with HEINEKEN strategy

• Leads the development of controls for financial risks

• Decides on pragmatic risk management solutions

• Effectively communicates financial risks to relevant stakeholders

• Encourages a culture of open dialogue and challenge of business decisions and actions

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Stakeholder Management

The ability to create and sustain high quality stakeholder relationships, in order to manage expectations and influence decision making to achieve HEINEKEN’s objectives.


• Roles and responsibilities of key internal and external stakeholders


• HEINEKEN internal networks and structures • Stakeholder’s interests and needs• Key success factors to build effective relationships


• Identify relevant internal and external stakeholders • Identify and analyse the needs and concerns of

different stakeholders• Build and maintain effective relationships• Create consensus amongst stakeholders• Influence and negotiate effectively to achieve positive

outcomes

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• Networks and utilises informal structures within the organisation

• Provides analysis and relevant information to support stakeholder management

• Identifies direct stakeholders

Level 2

• Anticipates the needs and concerns of stakeholders

• Establishes and manages relationships with stakeholders, including priority setting

• Influences stakeholder’s view by using compelling arguments

• Anticipates potential disputes and manages disagreements with tact and respect

Level 3

• Proactively manages multiple complex stakeholder relationships

• Defines overall stakeholder relationship objectives

• Takes ownership and drives resolution in complex and high impact disputes

• Coaches others on effective stakeholder management

• Influences external governance bodies and regulators

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Financial Reporting and Communication

The ability to report and communicate effectively, in order to enhance internal and external understanding of business performance and strategy.



• Key business drivers impacting HEINEKEN’s financial performance

• HEINEKEN’s planning and governance cycle• Financial and managerial reporting requirements• What drives HEINEKEN’s external reputation


• Prepare high quality documents for internal and external use

• Identify the optimal form of communication to various audiences to ensure maximum understanding

• Explain business performance in an accurate and concise manner

• Conduct high quality presentations for various audiences

• Develop relevant business reporting

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• Applies the basics of accounting and financial metrics and variance analysis

• Supports the preparation of financial information

• Supports the preparation of reports and/or supports the preparation of communications

• Contributes to timely delivery of financial information

• Ensures consistency and accuracy of financial information

Level 2

• Oversees the process to produce relevant reports and/or communications

• Manages the quality, reliability and timely delivery of reports and/or communications

• Improves the understanding of information presented and simplifies jargon

• Assesses the impact of financial communication on the reputation of HEINEKEN

• Creates high quality presentations and communications

Level 3

• Leads the development and challenge of standardised reports, reflecting the information needs of the business.

• Sets and challenges the frequency, quality and quantity of reporting

• Drives the financial communication strategic agenda

• Provides valuable feedback and insights from the financial community to management

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The Competency Review and Development Cycle

End-yearreview

Personaldevelopment

planning

Applicationand

monitoring

Applicationand

monitoring

Mid-year review

Selfassessment

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How it works

The 12-month cycle enables you and your manager to review your competencies and to create and execute a tailor-made Personal Development Plan (PDP) to address your needs and help you meet your aspirations. The cycle is integrated into the existing performance management process.

The first step is an evidence-based self-assessment; a prerequisite of the review session between you and your manager.

During the review session, you and your manager agree on your competency level and personal development priorities. This is the basis of your PDP.

You and your manager develop and agree on a PDP. The PDP contains clear responsibilities and expected results. It is a contract between you and your manager with shared responsibility and accountability. The ideal PDP contains a mixture of development solutions, such as on-the-job training, coaching, literature and training programmes.

You and your manager apply and monitor the PDP, holding a mid-year review to formally evaluate and record progress and make any necessary adjustments.

The remainder of this section explains each stage from both employee’s and manager’s perspective. It outlines the role of each party and lists the do’s and don’ts where applicable.

Introducing the process

As a manager, you may find it useful to hold a meeting with your teamat the beginning of the process, in order to:• Explain the background, objectives and deliverables.• Present and agree timings for the review and development sessions.• Address any issues or doubts amongst the people in your team.

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Self assessment

Carrying out a self-assessment helps you reflect on your knowledge, skills and behaviour and prepares you for the review.

How to conduct a self-assessment

• Familiarise yourself with all the competencies for your discipline.• Reflect on evidence for the behaviour statements of each competency for your discipline.• Based on this evidence make an initial judgment on your competency level. Use the self-

assessment tool to document clear examples of successful projects, daily work activities, and other demonstrated behaviour as evidence to support each statement of that competency level.

• Make sure you have recorded strong evidence to support all or almost all of the behaviours within the relevant level.

End-yearreview

Personaldevelopment

planning

Applicationand

monitoring

Applicationand

monitoring

Mid-year review

Selfassessment

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Ideally, each listed behaviour should be supported by unique examples of evidence, although sometimes the same evidence will be used for different listed behaviours. An example of this is a very large project that required many different competencies.If there is no evidence of behaviour, mark “no evidence”.If you have assessed yourself as Level 2 or Level 3 be prepared to show evidence to support the behaviours of the lower level(s) of competency as well (it is not necessary to note these down).

Good evidence:• Is factual, leaving little room for discussion. It describes when, what, why, how. And it

highlights the results. (See STAR below)• Is tangible. It can be seen or heard. It does not use words such as “can, understands,

thinks, knows”. It uses words like “achieved, wrote, approved, conducted, performed, led” and includes the outcome or result.

• Is representative of your personal standard; not an incidental behaviour.

When you describe evidence, consider the STAR format: Situation: What was the challenge you faced? Task: What did you set out to achieve? Action: What did you do? Results: What was the outcome of your actions?

• Evidence from past jobs may be used as well if it relates to competencies that are not part of your current job.

• You may find it useful to collect feedback from third parties such as colleagues, managers and project members.

• Send the self-assessment to your manager at least a week in advance of your planned review session.

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Do Don’tCheck understanding of the competencies. If unclear, ask your manager.

Assume you will have the same interpretation of each competency.

Allow yourself ample time to do a thorough self-assessment. It’s important.

Wait until the last minute to follow up.

Think hard about evidence of demonstrated behaviour and document each briefly but well. Build your case.

Assume your manager will remember everything you’ve done or automatically relate it to certain competencies.

Ask third parties for feedback. It will help you in your assessment, especially in areas where you are unsure about demonstrated behaviour.

Shy away from asking others for feedback.

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End-yearreview

Personaldevelopment

planning

Applicationand

monitoring

Applicationand

monitoring

Mid-year review

Selfassessment

End-year review

At the end-year review, employee and manager discuss and agree performance against objectives, competency levels, progress on personal development and decide future development priorities. The competency review takes place at the same time as the current end-year review.

The outcomes of the review meeting will form the basis of the PDP: •Agreement on your current competency levels for your discipline•Agreement on personal development priorities.

How to agree on the correct level of competency

•A competency consists of three key elements - skills, knowledge, and behaviour. Start by considering skills and knowledge, then review behaviour.

• The listed knowledge and skills are required at Level 2 and Level 3. An employee without these is likely to be at Level 1.

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•Look for evidence of the listed behaviours in recent work activities. This will help you make an impartial assessment.

•Competence level is determined by frequently observed behaviour that matches the majority of the behaviour statements for that level. For example, if there are five behaviour statements for Level 2, an employee must repeatedly display a minimum of four of the behaviours to be evaluated at that level; and the employee must also have demonstrated the behaviours of Level 1.

•Where a competency is not related to the employee’s present or past jobs, and there is no evidence of behaviour for assessing that competency, an employee receives the rating N/E (no evidence).

Keep in mind the following general differentiators:

Level 1• The impact is on the employee’s “own” area of responsibility and “own” team• People here are “contributors” and the focus is mostly about “self”, • Verbs used: understands, prepares, contributes, analyses

Level 2• The impact is on employee’s “own” team /function and the employee has effect on “other”

departments• People here are generally “experienced” and the focus is more on the “team”• Verbs used: explains, evaluates, communicates, managed • People at Level 2 also have all of the knowledge and skills required for that competency

Level 3• The impact is on the employee’s “OpCo” • People here are “leaders” and the focus is on the whole “organisation or business”• Verbs used: Leads, Shapes, Drives

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How to hold the review with your manager

•Bring a copy of your self-assessment to the review meeting with your manager. •Go to the review session with an open mind, invite feedback from your manager and

remain objective by focusing on the evidence that supports the behaviour statements for your self-assessed competence level.

•Where a discrepancy arises between your own and your manager’s assessment, remain open to feedback, keep the conversation fact based and focus on concrete examples of behaviour to support the correct level of competence as defined in the competencies.

•You and your manager must agree on your level of competence, as it will be the basis for creating your PDP.

Do Don’tSend a draft copy of the self- assessment a week in advance to your manager.

Leave it to the last minute so your manager does not have time to prepare.

Lead the discussion – guide your manager through your self-assess-ment, checking for understanding and agreement. This is your meeting.

Leave it to your manager to take over.

Encourage discussion of any difficult areas raised. Do ensure points that are impor-tant to you are discussed.

Shy away from sensitive areas, or ‘’leave that discussion for another time’’.

End the discussion with mutual agreement that everything has been fully covered.

Rush the conclusions because you have “other priorities”.

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How to hold the review with your employee Think carefully about the date/time/location for the review session. Make sure you get the self-assessment a week in advance to give you time to consider the evidence presented.If you foresee areas for discussion, prepare your feedback in advance of the meeting.Encourage discussion of any difficult areas so that important topics are covered and your employee has a clear understanding of your expectations.

The phrases below will help you deliver feedback constructively. Remember that your intention is to add value; therefore, focus on the behaviour, not the person, and base your feedback on fact, not on opinion. Adhering to these simple rules will increase objectivity and facilitate discussion.

State What I liked was ... What you did well was ...and What I didn’t like was ... What you didn’t do so well was ...and What I’d like you to do differently in the future is ... What could have made it even better ...

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Do Don’t

Have the correct ideal profiles for each employee, highlighting the priority competencies.

Wait until you are in the review session to determine the ideal competency level.

Allow sufficient time for the discussion – it’s important! An effective discussion should take two to three hours.

Squeeze the review session between other meetings (which may overrun).

Allow the employee to lead the discussion – provide coaching as needed to help the individual achieve a quality discussion.

Take over leadership and run it your way.

End the discussion with mutual agreement that everything has been fully covered.

Rush the conclusions because you have “other priorities”.

The review session results become a part of the Personal Development Plan and can be found in the PDP template.

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Personal development planning

Creating the PDP in a separate session works best. This allows you to take time after the review meeting to reflect on the discussion. You can then digest your manager’s feedback and think through the development solutions that make the most sense.

You will get the most out of the session by focusing on no more than three key areas of improvement. That way you can dedicate enough time to increasing your levels of skill and knowledge and to developing your behaviour. Moving from Level 1 to Level 2 and from Level 2 to Level 3 takes time and requires an intense commitment to continuous improvement. It is best to build a PDP that allows development of competence through a mixture of development solutions, with the majority taking place on-the-job.

End-yearreview

Personaldevelopment

planning

Applicationand

monitoring

Applicationand

monitoring

Mid-year review

Selfassessment

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A good PDP:• is SMART and clearly linked to the agreed development areas identified during the review • covers a twelve month period • details the support you need from your manager and other people in the organisation,

and highlights the agreed actions of each party • includes different types of development solutions • has a firm commitment to action from both the employee and manager• focuses on no more than three competencies Good PDP planning starts with a clear understanding of your personal development needs and of the development solutions that are available locally. You may also find it helpful to take a look at the personal development guide in this manual. There you will find practical methods for increasing competency levels. The development ideas are not comprehensive and are intended to stimulate thinking and further brainstorming between you and your manager.

The ideal development plan contains a mixture of development solutions that can take many forms. Here are some of them:

Development Suggestions Description

Receive coaching Coaching plays an important part in all development solutions. It can take many forms; for instance, ongoing guidance on specific projects (business projects or special assignments), evaluating meetings, input on written documents.

Study best practices Find out about and follow proven methods with deliverables, strategies, plans, implementation and project processes. Best practices provide a standard by which to set expectations. The more specific the best prac-tice to the subject matter, the better.

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Study case studies Use other people’s practical experience to find out what strategies, plans, ways of implementing and project processes have been successful (and unsuccessful) in the past. Case studies are a great source of fresh ideas and approaches. They can be closely or remotely related to the subject matter, depending on the learning objective.

Interview a role model Interviewing a senior manager or functional expert will help you under-stand the specific details about a strategy, a process, an organisation, or an approach.

Shadow a role model Observing the behaviour of a senior manager or functional expert is a widely used tool for people wanting to develop leadership competencies. If you are working on a functional competency, involving a third party works most effectively. For example, observing behaviour in meetings with cross-functional teams, or when working on project implementa-tion plans.

Perform special assignments

Performing a task or running a project that is not yet part of your remit is a very effective tool for directly practicing the competency that needs addressing. Special assignments often require close coaching, as they involve practicing a skill in real time.

Perform cross-functional assign-ments

Working “on the ground” with another team for a set time period will enable you to truly to fully understand other functional pro-cesses, timelines, stakeholders and issues.

Study subject theory Using the wealth of internal and external resources is an invaluable way of gaining sound theoretical understanding and insight into practical business cases. This approach can be a great way to absorb information and incorporate it into your own daily work. Personal development plans often include this more reflective way of learning.

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Attend an external training course

These work well when the competency is not company specific and re-quires an in-depth understanding of complex matters. Due to the costs and time requirements, external courses should be used only when the intervention needed is urgent and crucial to job performance. Courses need to be selected carefully.

Attend an internal training course

Internal training courses can potentially incorporate all the above devel-opment tools. The right course will transform performance over a short period of time. Make sure you evaluate whether the training content/content level addresses the need.

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Example of a Personal Development Plan

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Application and Monitoring

Once the PDP is agreed, employee and manager need to apply the actions and monitor the process.In bilateral meetings, both can refer to the agreed PDP actions. The employee asks for, and manager provides, regular feedback and support.

End-yearreview

Personaldevelopment

planning

Applicationand

monitoring

Applicationand

monitoring

Mid-year review

Selfassessment

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Mid-year review

The purpose of the mid-year review is to ensure that the development plan is on track. The mid-year review is also the moment to ask for support if the employee has difficulty realising some of the agreed actions.

How to hold the mid-year review

• The manager plans the meeting to monitor progress against the PDP, learning objectives, action steps and measurements.

• The basis for the functional conversation is the PDP. No additional preparation or paperwork is needed.

• The objective of the mid-year review is to ensure you are on track in achieving your KPIs and progressing with your PDP.

End-yearreview

Personaldevelopment

planning

Applicationand

monitoring

Applicationand

monitoring

Mid-year review

Selfassessment

48

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Review and PDP templates

Competency Review

With your manager and with reference to the HR profiles, please identify the ideal competency levels for your role. Mark the priority competencies as agreed and the summary of your review discussion. The strengths and development areas identified here will form the basis of your personal development plan.

Competencies Level 1 Level 2 Level 3

1 Strategic Direction

2 Strategic Alignment

3 Business Analysis & Challenge

4 Integrating Perspectives

5 Financial Compliance

6 Technical Finance Advisory

7 Continuous Process Improvement

8 Transactional Finance Process Execution

9 Risk Management

10 Stakeholder Management

11 Financial Reporting and Communication

Ideal for position Priority competency

X Actual level

5

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Summary of Strengths

Competencies Ideal level Demonstrated level

Development areas

Summary of Development Areas

Competencies Ideal level Demonstrated level

Development areas

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Personal Development Plan

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Glossary6Term Definition

CCCS Short for Common Cost Centre Structure. Refers to HEINEKEN’s definition of cost centre data

Financial Accounting Content, internal relations and consistency of HEINEKEN’s financial and managerial reporting

HEINEKEN (or the company)

The HEINEKEN Group, HEINEKEN N.V. (ultimate listed parent), HEINEKEN’s Operating Companies and/or companies with significant influence

HEPM Refers to the HEINEKEN Enterprise Process Model. Process framework in which End to end processes are documented, including process actors, relations and outputs

IFRS Short for International Financial Reporting Standards. HEINEKEN IFRS is an interpretation of these standards for HEINEKEN

KPI Short for Key Performance Indicator. Used as metric for performance indication

OpCo Short for Operating Company

PPI Short for Process Performance Indicator. Used as metric process performance indication

Rules Refers to HEINEKEN’s set of rules comprising of policies, treatments and procedures and external rules that apply to HEINEKEN’s operations

Risk management Examples of risk management can be: Pensions Risk; Currency fluctuations; Financial Reporting Risk; Corporate brands; Credit Risk; Interest rate; Outsourcing; Tax: Excise duties; Tax: Corporate Income Tax; Capital availability

SCOA Refers to Standard Chart of Accounts. HEINEKEN’s account definitions, accounting policies and treatments

SLA Refers to Service Level Agreement. Document stating process specific KPIs and provided service levels

Finance CompetenciesManual

finance competencies · the finance competencies overview each competency consists of knowledge,...

Documents