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H E A L T H W E A L T H C A R E E R

Tapaswee Chandele, Human Resources Director

Coca-Cola Southern & East Africa Business Unit, Johannesburg

H AV I N G “ R E A L C O N V E R S AT I O N S ”

W I T H P E R F O R M A N C E E N A B L E M E N T

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Performance Enablement:

Moving in a New Direction

2

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C O N T E N T S

• C O N T E X T

• W H Y M A N A G E P E R F O R M A N C E

• C U R R E N T R E A L I T Y

• P E R F O R M A N C E E N A B L E M E N T

• I S I T W O R K I N G ?

• Q U E S T I O N S

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C O N T E X T

W H O W E A R E

O U R TA L E N T P H I L O S O P H Y

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T H E C O C A - C O L A C O M PA N Y

W H O W E A R E

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S E A B U - A VA S T & C O M P L E X

G E O G R A P H Y

18 countries

420m people

207 languages

7,500km distance between the 2 farthest cities in the BU

160m people making $1.5 day or less

60m people making as much as the avg. European, ~$ 170 B consumer

spending growth

60% of Sub-Saharan Africa’s GDP

63 Plants

C O C A - C O L A S O U T H E R N & E A S T A F R I C A B U S I N E S S U N I T A T A G L A N C E

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O U R TA L E N T P H I L O S O P H Y

Performance – We believe in strong, sustained performance from all employees in order to drive business results. We must provide clarity of expectations, coaching and feedback to all associates to enable them to deliver. We must all raise the bar for performance every year.

Leadership Behaviors – Everyone will be evaluated and assessed on the leadership behaviors that drive future performance and support our Winning Culture. An individual’s behaviors determines their pay and progression. This mean it is not just what you do, it’s how you do it.

Differentiation – Employees who make the greatest contributions will receive the greatest rewards. This means those identified as high potential talent will receive differentiated investment. We hold those in critical roles to a higher performance standard. This means we will differentially invest in the development and rewards of those in critical roles and in specific talent segments.

Transparency – We will be open with every employee about his/her potential and what it takes to succeed at the Coca-Cola Company. This means everyone understands their potential to progress and has a clear roadmap to realize their potential.

Development is a partnership – Employees play a critical role by guiding and executing their development plans; people managers are responsible for enabling the employees’ development by providing guidance, coaching and feedback; the organization plays a role by providing development opportunities and an infrastructure that supports them.

Accountability – People managers will be held accountable for developing our people in ways that drive performance and support our Winning Culture. We have high expectations of our leaders to lead in the right way! This means the organization will systematically strengthen leadership capability to ensure that every employee at Coca-Cola has a world class people manager.

B Y T A L E N T … W E M E A N E V E R Y O N E O F U S !

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P E R F O R M A N C E M A N A G E M E N T

W H Y M A N A G E P E R F O R M A N C E ?

E X T E R N A L C O N T E X T

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DO YOU AND WILL YOU HAVE THE TALENT

YOUR BUSINESS NEEDS TO DELIVER YOUR

SHORT AND LONG TERM PRIORITIES ?

AS TALENT STEWARDS, EFFECTIVELY ENABLING

THE PERFORMANCE OF OUR PEOPLE IS OUR

BIGGEST LEVERAGE POINT.

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A F E W FA C T S T O C O N S I D E R

Why Do Performance

Management at All?

Maximized, people can drive differentiating

business advantage;

underutilized, they can be a draining

overhead cost.

Workforces that exhibit enterprise

contribution yield 2X impact on profit and

revenue.

When associates have effective informal

support networks, organizations gain as

much as a 42% increase in discretionary

effort.

How Important is

the Manager?

Leadership can accelerate or

stagnate a business.

Strong leadership (achieving strategic

objectives and delivering results through

people) yields 2X impact on profit and

revenue GROWTH.

But 46% of leaders fail to meet their

objectives.

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W H E R E S H O U L D W E F O C U S O U R T I M E T O G E T U P L I F T I N P E R F O R M A N C E ?

Negative

Impact

Low Impact (less than 5%)

Moderate

Impact (increase up to

10-15%)

High Impact (increase

20%+)

1. Rank order employees from best to worst performance.

2. Do more than one formal review per year.

3. Emphasize weaknesses or gaps in formal performance reviews and informal

feedback.

4. Tie distinctions in performance to rewards and consequences.

5. Use 360 degree feedback in formal performance reviews.

6. Measure performance and results accurately.

7. Encourage employees to demonstrate innovation, flexibility, and reasonable

risk-taking.

8. Give managers tools to translate long-term goals into step-by-step plans.

9. Ensure employees develop and stretch through challenging experiences within

their roles.

10. Provide employees with informal future focused feedback that is fair, accurate,

and helps them improve.

11. Ensure employees understand the standards by which they are accountable.

12. Emphasize performance strengths in feedback.

Research conducted by Elaine Pulakos, PDRI, a CEB company

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What do the best managers do differently?

1.Remove obstacles

2.Roll up their sleeves and help, when asked

3.Acknowledge progress & effort along the

way

From The Progress Principle, Teresa Amabile, Harvard Business School

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O U R C U R R E N T R E A L I T Y

T H E B U R N I N G P L AT F O R M

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W H Y C H A N G E ?

8% of Fortune 500 companies have gotten rid of rankings

90% of HR leaders say that the traditional process does not yield accurate results.

“We can

succeed

together,

or fail

separately,” – Ceree Eberly,

Chief People Officer, The

Coca-Cola Company

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A R E W E C A P I TA L I Z I N G O N T H E P O W E R

O F O U R P E O P L E T O D AY ?

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P E R F O R M A N C E E N A B L E M E N T

W H AT H A S C H A N G E D ?

H O W D O E S P E W O R K ?

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WE’VE DESIGNED A NEW PERFORMANCE

ENABLEMENT PRACTICE, WITH THE SCIENCE

AND ROI DRIVING WHAT’S IN, WHAT’S OUT,

AND HOW WE DO THINGS.

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P E R F O R M A N C E E N A B L E M E N T

H O W I S I T D I F F E R E N T ?

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W H Y W I L L I T W O R K ?

It's based on science. We’ve combed the research across different fields,

including:

• Psychology

• Neuroscience

• Behavioral Economics

• Management

We’ve focused on the

few things that drive

the biggest uplift in

performance to

maximize the ROI of

time and effort.

We’ve also learnt the art of making it

stick from other companies:

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A S I N G U L A R P U R P O S E

PERFORMANCE MANAGEMENT ENABLEMENT

Mobilize our people around the work that matters most to execute our business strategy

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Repeat Monthly

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Associates should gain:

Clarity on what is expected of them

Transparency of why and how their work matters

A better understanding of where they stand

Feel supported by their team

Managers should gain:

An increased understanding of how to strategically leverage their people

as critical resources by better aligning skills to work to drive results

Increased visibility in the strengths, gaps, and performance of all of their

direct reports

Increased capacity as their team is able to take on more

More frequent insight into their own skills as a manager

Enhanced flexibility to recognize and reward their people

Increase results by delivering through higher performance of their people

P U R P O S E O F P E R F O R M A N C E

E N A B L E M E N T

The purpose of performance enablement is to mobilize our people around

the work that matters to execute our business strategy.

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T H E P R A C T I C E

I S I T W O R K I N G ?

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Do Associates & Managers believe in

Performance Enablement?

What happened with Year-end Rewards?

What about Poor Performers?

Are they Opting In?

of Associates opt-in to

give upward feedback

to 1 or more managers

each cycle

of Managers complete

their reflection on

associates each cycle

and 3% NEVER DO;

18% RARELY DO

*In our P3 system, for a Full Year, <

3% were identified as NP/D. For

most, no action was taken and they

still remain with the company.

BIGGEST IMPROVEMENTS IN 8 MONTHS

PRE EXPERIMENT:

I think our (traditional) Performance Management

process:

AFTER 9 MONTHS:

I think our experimental Performance Enablement

approach:

WHICH APPROACH

DO YOU PREFER?

“Our team

meetings

add value”

Improved by 28%

in GCCL

“I have the support

I need to be

successful”

Improved by 31% in

Central & Southern Europe

“I feel supported

by my

teammates”

Improved by 16%

in GCCL

“I have confidence

in The Coca-Cola

Company’s future”

Improved by 11% in

Latin Center

Upward feedback scores have

improved across 11/11 questions On average, in 8 cycles or less,

managers have improved by 9%

Are Managers Improving?

SETTING ASSOCIATES UP FOR GREATER SUCCESS

What is the Right frequency?

WEEKS

Frequent, informal, future-focused

conversations fuel performance.

These can be 7 minute check-ins by

the Coke machine. Seek to

understand and coach by asking:

8%

performance

Delivers little to no value

Is painful but necessary

Delivers moderate value

Enables my team to perform at a higher level

66% Performance Enablement

Experiment Approach

14% Traditional Performance

Management Process (P3)

20% No Preference

agree

66%

neutral

24%

10% disagree

“What are

you working

on?” “How can I help?”

69%

58%

I believe that my

manager/

supervisor

makes fair pay

decisions.

10% in 8 mos IN THE FIRST 4 MONTHS,

of associates were identified

as struggling to perform.

OF THOSE:

28% improved in just 4-6 weeks

18% exited due to poor

51%

7% 5%

37%

8%

18%

15%

59%

W H AT I S T H E F E E D B A C K S O FA R ?

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While it is too soon to make a direct connection to business performance, the

early indirect indicators are promising:

Correlation to

Business

Performance* Engagement Question IMPACT AFTER 8 MONTHS

.74 I am able to sustain the level of energy I need throughout the work day.

.62 The people I work with are willing to help each other, even if it means doing something outside their usual activities.

.63 I believe strongly in my BU's strategic priorities.

.56 The senior leadership team in my BU provides a clear sense of direction.

Up to 8%

Up to 1%

Up to 7%

Up to 15%

*Towers Watson Linkage Analyses

As we move forward, we will be paying close attention

to direct and indirect impact on business

performance.

W H AT I S T H E I M PA C T O N B U S I N E S S P E R F O R M A N C E ?

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