Annual review meeting: main details to remember

1. Annual review meeting:main details to remember “ Vision without execution is hallucination” (Thomas Edison)

2. Performance Appraisal Process Performance management is a continuous process of setting expectations about employee’s work, making the employee responsible for compliance with these expectations, timely feed-back on and effective management of deviations of employee’s behavior from these expectations

3. PwC Performance Management Cycle • September • Analysis of PY results and recommendations from annual review meetings • Development plan for the next year – based on KPIs and individual performance & development goals • July - August • Review of annual results: • Feedbacks • Upward feedback • KPIs • Coach’s recommendations • BU moderation meetings • Annual performance rating & promotion; recommendations for further development • Salary review Planning Annual Review. Reward • October - June • Feedback from projects • Mid-year review – progress assessment for the first 6 months • On-going coaching Feedback from projects. Mid-year review. Coaching

4. PC&D: Assurance FY11 Performance Review process

5. Two main approaches in Performance Management • Management by Objectives Encourages specific results: “WHAT” Example: Assurance KPIs, specific performance goals • Competency-based management Encourages specific behaviours: “HOW” Example: 10 Global Core Competencies

6. FY11 Assurance KPIs: main points • Actuals on FY11 mandatory KPIs will be sent to each Coachee, cc: Coach by Assurance HR by 10 June (to be used for year-end coaching meetings) • Specific comments are to be provided in Annual Summaries in case some of the KPIs are not met (met not fully) • To receive rating 1 an employee is expected to meet all mandatory KPIs as a minimum

7. PwC Global Core Competencies

8. Proficiency Levels within Competency

9. Year-End coaching meeting – main goals • Review performance and progression during the year • RPR, progression / promotion recommendations and general coach comments for moderation meetings • Determine skills gaps and understand career aspirations => preliminary development needs and development actions to be reviewed based on feedbacks from moderation meetings, and incorporated into FY12 development plan after

10. Annual Summary information • Performance against metrics and compliance goals (KPIs) • Performance feedbacks from projects – demonstration of capabilities required at the current grade and level (per Global Core Competencies) • Performance notes – e.g. feedbacks from clients, “thank-you” notes • Progress against performance and development goals set in annual development plan • Upward & peers feedback – mainly development tool; can be referred in assessment if scores / comments are particularly strong or weak • Employee’s self-assessment • all the information should be reviewed by Coach before coaching meeting • after the coaching meeting, Coach should suggest • Relative Performance Rating (RPR), • promotion or competency level progression for further consideration at Annual Moderation meetings

11. Relative Performance Rating (RPR): what should be taken into account • Performance trends, consistency of demonstrated skills / capabilities / behaviours • Development over the course of the year • Total number of hours contributed at each assignment, complexity of assignments, overall performance assessment for each engagement, degree of supervision required, unusual circumstances faced during the assignments • Differentiators from what is expected and typically observed of others with similar experience (peer group comparison) Overall PFF ratings should not be averaged to determine the preliminary RPR. Assessments of PFF represent single examples of performance, without context to performance relative to peers Coach should not share RPR with coachee to avoid creating expectations

12. Year-end Performance Ratings 1 - Significantly Exceeds Expectations Comfortably exceed all of their agreed objectives AND Consistently and significantly demonstrates the PwC Experience behaviors and skills above those that are expected. Performance will typically far exceed the majority of staff at their peer group and level 2 - Exceeds Expectations Meets all and exceeds some of their agreed objectives AND Frequently demonstrates the PwC Experience behaviors and skills above those that are expected. Performance will typically be above the majority of staff at their peer group and level 3 - Meets Expectations Meets the majority of their agreed objectives AND Demonstrates PwC Experience behaviors and skills that are expected. Performance will typically reflect the average level of performance at their peer group and level. 4 - Below Expectations Meets some of their agreed objectives. Further development is required in several areas AND Demonstrates some (but not all) of the PwC Experience behaviors and skills expected. Performance will typically be below the majority of staff at their peer group and level. 5 - Significantly Below Expectations Has not met their agreed objectives, with some at an unacceptable level. Significant and continuous development is required in one or more areas AND Does Not demonstrate the PwC Experience behaviors and skills expected. Performance will typically be at the bottom of their peer group and level.

13. Making a promotion recommendation • Readiness: consistent demonstration of the capabilities required at the current grade (per Global Core Competencies), plus some demonstration of capabilities for the next level • Attainment of required credentials – i.e. ACCA progression in audit groups • Business case for promotion – mainly at M+ level Promotion requires a minimum RPR of “meets expectations”. Person considered for promotion should already be at competency level “established” or “experienced” within the current grade.

14. Progression within grades: Competency Levels Developing: - Demonstrates some of the 10 GCC for the grade - Newly promoted and/or still developing - Requires significant coaching and supervision Newly promoted people. Plus, employees promoted in the PY who did not progress as expected. Established: - Demonstrates many of the 10 GCC for the grade - Able to perform majority of tasks with minor supervision - Undertaking increasingly more complex tasks, involved with large projects • More responsibility than less experienced, less competent colleagues within grade • Normallydeveloping people promoted in the PY – well established in their role, and require normal portion of supervision. Plus, those who were in the Established category last year, but did not demonstrate further visible progress in maximizing the competencies and skills required in their roles. Experienced: - Demonstrates most of the 10 GCC for the grade - Carrying out all tasks with limited or no supervision - Undertaking complex tasks, involved with large projects - Starting to demonstrate some of the competencies required of next grade Normally developing people who were Established in PY and show further progress by maximizing their skills and competencies in the current grade, who require minimum supervision in their roles.

15. Coaching Meeting: planning further development • Career goals and career aspirations; cycle of experience • Getting the right experience and developing the relevant skills • Acquiring necessary professional credentials and learning opportunities • Relationships w clients and within networks; level of exposure • Work-life choice: work/life quality goals, vacations planning

16. Back-Up

17. FY11 Assurance KPIs and Compliance Requirements

18. Getting the right experience and developing the relevant skills • The right mix of client experiences - e.g. proposal writing, technical skills, other cycle of experience • Getting feedback that is really helping to improve – are others aware of coachee’s skills and capabilities • Stretching beyond comfort zone • Demonstration of the skills needed to reach the next level. How coachee’s performance compare to peers? Advise coachee to assess himself against core competencies at the next grade – to push outside of comfort zone

19. Professional credentials and learning opportunities • Compliance and professional credentials required – e.g. RM and Independence requirements, professional qualifications, audit experience requisites • Other opportunities to contribute to coachee’s professional development • Knowledge sharing with other collegues – e.g. coaching on projects, instructing courses, contribution into knowledge management / knowledge sharing • Development of non-technical skills – e.g. business judgement, relationships management, teamwork, leadership skills Share your experience in acquiring professional credentials. Full professional qualification is important for international assignments and career progression

20. Leadership &businessdevelopment Key skills Project & project team management Key Skills Development and Acquisition in PwC Technical skills M AC SM P SAC AM D Professional development

21. Career goals and career aspirations • Annual performance goals and long-term career plan • Progress against annual and long-term career goals – whether current engagements / assignments help to achieve coachee’s career goals • Gap analysis – any gaps in skills, capabilities or client experiences that could prevent from advancing against planned career path • Comparison with peer group • Cycle of experience, exposure to partners and leadership • Progress in building relationships with clients and alumni, within PwC and profession Cycle of experience and business development capabilities becoming one of the key factors for progression within CEE PwC

22. Relationships w clients and within networks