Celebrating Performance Usage Guidelines Updated August 2008 Context: The launch of Celebrating Performance has generated a great deal of positive feedback and excitement around the intent and projected impact of the program. Overwhelming feedback has reflected the need to establish usage guidelines for additional budgetary allocations to support new and existing recognition programs, leveraging the technology. Examples of these requests have come from Diamond Client Partners, Community Leads, Unit Leads, and Country HR, Retain Talent Leads and People Advocates. The Need: We have identified two categories of requests to leverage the program: 1. Ad-hoc awards: The desire to accommodate one-off instances of extraordinary effort and performance in dealing with an isolated issue, e.g., a team working to restore client services following an unexpected environmental event or simply a team or individual going above and beyond performance expectations to deliver value. 2. Parallel programs: The desire to leverage the platform technology, points structure, and catalogs to administer local recognition programs Principles: In evaluating the potential for leveraging the Celebrating Performance program, it is important to consider the intent under which it was constructed. Increase focus on day to day performance Expand total rewards beyond the top 30% Support the business model through cross geography and cross workforce recognition Institutionalize Performance Factors Improve Employee Engagement Instill a culture of recognition Provide a consistent measure for recognition Increase management visibility to recognition spend Provide a scalable platform to leverage technology for existing local recognition programs Without another mechanism for expanding budgets or allowing local recognition efforts to leverage the platform, recognition behaviors are likely to happen outside of the program. It is in the best interest of visibility and measuring return on investment to drive those transactions through Celebrating Performance, thereby also ensuring performance factors are used as a consistent basis for recognition. That being said, usage of the current budget should operate under the principles of Total Reward Planning and overall affordability and not be an added cost. Leveraging the Celebrating Performance Platform Process: Currently, we receive ad hoc request from leaders, projects or geographies to purchase points for recognition. We have established a process to provide additional budget to those requestors by accruing for the cost against a cost center code provided for the purchase. This practice takes place outside of the Reward Planning process and is tracked within a separate tool and communicated to Finance. Similarly, we receive requests from local recognition programs already in place or new program approved by local leadership to leverage the Celebrating Performance platform, point system and reward catalogs to support local efforts. As with the ad hoc request, a cost center code is provided for the total point purchase and communicated to Finance. Evaluation Criteria: Regardless of the origination of the request for additional points (ad hoc or local recognition program), we ask a series of questions around the intent of program and/or team recognition and apply that context to the decision matrix below. Approved requests are closely tracked and communicated monthly to Finance so that the appropriate cost centers are charged. Decision Matrix Test Evaluation Criteria 1 Is the intent consistent with the objective of the program, e.g., rewarding performance as described through one or more performance factors? 2 Would the intent of the reward further uptake of the Celebrating Performance platform? 3 Are the awards likely to be awarded in the requesting entity (expense would stay with funding)? 4 Are the awards funded through an offset for an existing reward program, e.g., through holdback? 5 If no to 4, are the awards one-time and for a specific performance-related effort? 6 Are the awards and funding approved by local leadership responsible for budget decisions? Yes Continue Consideration No Discontinue Consideration Continue Consideration Continue Consideration Grant Allocation Discontinue Consideration Discontinue Consideration Move to test 5 Continue Consideration Grant Allocation Discontinue Consideration Discontinue Consideration Contingency Funds: We also set aside a 1% contingency fund managed by the global recognition team to support extraordinary awards for which a cost center code cannot be provided. The decision matrix is also applied to these allocations which are approved by the global recognition manager. The budget allocations applied towards the contingency fund are also closely tracked against budget and communicated to Finance. Conclusion: This approach allows the Celebrating Performance program to be flexible enough to accommodate one-time extra-effort scenarios as while remaining cost effective and in line with affordability guidelines. It also allows existing recognition programs to leverage the investment we have made in the technology, standardize recognition criteria, as well as provide leadership increased visibility to recognition spend. We believe these practices have a positive impact by driving recognition behaviors through a highly visible and measurable program.