PERFORMANCE MANAGEMENT SYSTEM AT BPCL

1. PERFORMANCE MANAGEMENT SYSTEM AT BPCL

2. Company Profile – Bharat Petroleum • Integrated Petroleum Refining and Marketing Company • Fortune 500 & Forbes 2000 company • Sales Volume 27 Million MT • Revenue US $ 31 Billion per annum • Two Refineries at Mumbai & Kochi and One subsidiary Refinery at Numaligarh • Large distribution network across India – 425 locations • Network of 8400 Retail Outlets and 2,200 LPG Distributors • 14200 employees

3. PMS Journey • April 1999 –Strategic shift in approach to PMS by way of introducing ‘Balanced Score Card’ concept • April 2003 –Linkages with reward mechanism through introduction of ‘Performance Related Incentive Scheme’ along with relative ranking (bell curve) introduction • April 2009 – Leveraging of technology (SAP Platform) for Talent Management beginning with PMS • October 2009 - Launch of Strategic Performance Excellence workshops – Rigorous, involved process of creating alignment between business strategy and individual goals.

4. Purpose of PMS To facilitate achievement of the Vision and Business Plans of the Corporation and foster development of every management staff, thereby gaining competitive advantage in the market

5. Objectives of PMS • Create awareness of Corporate and SBU/ Entity goals • Translate such goals into tangible objectives and measures at the individual level through discussions between Appraiser and Appraisee • Identify managerial attributes/ competencies necessary to achieve the goals • Establish a formal process of continuous feedback on performance • Identify developmental plans to enhance performance • Provide an input for deciding career progressions and rewards

6. Process Flow Performance Planning 30th April 15th May of

7. Relative Ranking process and Values

8. Linkage of PMS with other HR processes • Career transitions • Progressions • Staff development • Payment under ‘Performance Related Incentive Scheme for Management Staff’ (PRISM) /PRP

9. The Challenge of strengthening the PMS How do we achieve • high degree of alignment between business plan and individual goals • consistency in KRAs across the similar roles e.g. Territory Managers • high degree of discipline especially in terms of time line • high degree of standardization in end to end PMS process

10. We strengthened the system by Leveraging technology by launching Integrated PMS on SAP Platform The Objective: • Automate a critical performance monitoring process to ensure 100% compliance and on time delivery of the performance value chain • Demonstrate Transparency, Ease of Use & effective Internal Cross Learning The Action: • Automated a comprehensive e-PMS using SAP platform with standardized tools & templates (effective PMS cycle 2008-09) • Touched each & every employee & made their role relevant • Distinctive connection established between corporate strategy & individual KRAs & Objectives by introducing concept of ‘Default KRAS’ • Initiated Development of dashboards for each line manager for all tangible measures across for easy review

11. Process Flow – Preparation Stage Employee is assigned Position Mapped Role / Job Individual KRAs by Line Manager Predefined SBU/ Role specific KRAs

12. Process Flow – Planning Stage Preparation Stage Planning Stage EMBEDDED HR APPRAISER APPRAISEE Create KRAs / Finalize Attributes and Add to the Template Based on the Job Modify KRAs / Attributes And Measures PMS Template contains • Personal/ Organization Data • Appraiser/ Reviewer • KRAs based on Role / SBU • Attributes Appraisee Acceptance PMS Document Finalized with • KRAs • Objectives • Measures • Attributes Document is finalized Moves to Next Stage

13. Process Flow - Review Stage From Planning Stage Mid year Review Stage APPRAISEE APPRAISER Reset KRAs/ Measures (Add / Delete / Modify KRAs) Comments on performance PMS Document Finalized with • KRAs • Objectives • Measures • Attributes Review of KRAs / Suggest Changes Appraisee Acceptance Document is finalized Moves to Next Stage PMS Document Finalized with • KRAs • Objectives • Measures • Attributes

14. Process Flow – Final Assessment From Review Stage Final Assessment Stage PMS Document Finalized with • KRAs • Objectives • Measures • Attributes APPRAISEE (Self Appraisal) APPRAISER (Final Assessment) REVIEWER (Review of Final Assessment) Embedded HR Facilitates APPRAISER (Sharing of Marks / Recording Comments) MODERATOR (Review of Final Assessment) Appraiser Facilitates Process Completed

15. We strengthened the system by Launch of Strategic Performance Excellence workshops – 30 workshops covering around 900 key role holders The Objective : Establish a comprehensive connect between strategy at the Business level & performance drivers at the individual level Ensure that each and every role holder sees a clear connect between their individual goals with that of their Business or entities To help all functions & role holders collaborate to ensure that objectives are best achieved when role holders work as an effective team chasing performance

16. Performance Management Excellence The Action: • Articulation of Strategies for next three years and creating business/entity wise strategy maps Established a Strategy on Page as a learning process for role holders to appreciate strategic cascade. • Converting strategies into measurable indicators at various levels • Setting goals & targets against the standard metrics • Putting in place measurement and monitoring mechanism • Designing a holistic feedback and development process for sustained performance • Reiterating the need for role holders to understand and appreciate how effective leadership will help them build a credible PMS program ………15 workshops completed covering 4 SBUs and 3 Entities

17. Thanks