Sapura Performance

Management System 
Guidelines
 
  
 
 

   

 
     
 
Table of Contents
1.0 Introduction ................................................................................................................................................................................................3
2.0 An Overview on the Sapura Performance Management System (PMS) Framework ................................4
3.0 Roles and Responsibilities for Each Phase in the Sapura PMS .................................................................................9
4.0 Role of the Sapura Performance Management System (PMS) Team in the Sapura PMS .................... 19
Appendix 1: Guidelines for filling the Individual Performance Form (IPF) ................................................................. 20
Appendix 2: Performance Improvement Management (PIM) .............................................................................................. 31
Glossary ...................................................................................................................................................................................................................... 33
 

   

Page 2 
 
     
 
1.0 Introduction
Dear Sapura Executives,
As we expand our business and footprint in a highly competitive and volatile business
environment, there is a need for excellence in everything we do in order to stay ahead. One of the
key elements that will ensure our continuous success is the performance of our employees in living
our core values and achieving results. We have come a long way from building a business from
ground zero to where we are today and there is now a critical need to instill a high performance
culture among our employees to ensure our continued success and growth.
There is no doubt that our people has been and will remain our most important assets who must be
motivated and developed in order to contribute value to our Company and enhance our
competitive advantage. There is now a great need for the Company to establish a highly
performance – driven work environment where people with a passion for excellence can thrive.
With that in mind, we have designed a new Performance Management System (PMS) which is
focused on delivering the following outcomes:
 Measure individual performance objectively based on agreed Work Plans, Goals and Key
Performance Indicators (KPIs).
 Measure objectively how employees subscribe to our company values and as demonstrate
competencies that are critical for achieving the KPIs set.
 Clear identification of development needs thereby increasing focus on closing competency
gaps.
 Retain and differentially reward top Performers while at the same time objectively
manage poor performers.
Overall, this PMS will enhance employee engagement and supervisor-employee relationships
because throughout the PMS cycle, there are many opportunities for performance discussions,
open feedback and coaching to achieve superior business results. With a sound PMS in place,
Sapura can then begin to manage talent more strategically, enabling leaders to identify potential
successors using reliable performance and competency evaluations.
 
This Sapura PMS manual contains policies and guidelines designed to help you become a proficient
Sapura PMS user. This manual has the following content that will support your use of the system:
 Sapura PMS Guidelines
 Sapura Core Values Dictionary
 Sapura Competency Dictionary
 Sapura Business KPI Directory
 Individual Performance Form (IPF)
I trust you will take the time to read this Manual and understand the processes involved. Once you
become familiar with the process, you will find the Sapura PMS an indispensable tool in managing
your performance and development that contributes to our organization’s success, your own
success and the success of others working with you.
Thank you.

Datuk Shahril Shamsuddin

President and CEO

Page 3 
 
     
 
2.0 An Overview on the Sapura Performance Management System
(PMS) Framework

The Sapura Performance Management System (PMS) is a structured process for managing
individual performance so that the efforts of all executives can be effectively harnessed to achieve
Sapura’s business objectives.
The value of Sapura PMS to Sapura staff, Sapura leaders and the organization as a whole may be
summarized as follows:
1. Empower individuals to take charge of their own success by giving them the skills to
identify goals that are aligned to the business, plan meaningful development actions,
monitor their own progress, collect data about performance and assess performance
objectively and fairly.

2. Drive ownership and accountability throughout the organization for delivering results.

3. Drive ownership and accountability of managers for managing all resources under their
care, including people resources.

4. Recognize the right values that people demonstrate at the workplace and reinforce
leadership behaviors that will nurture a positive climate where people can perform and
realize their full potential.

5. Enhance staff engagement through open and regular dialogue about performance as well
as the desire for personal growth and development.

6. Grow a workforce with the right skills (technical, functional, leadership) and mindset that
will set Sapura apart from its competitors.

Page 4 
 

The Sapura PMS empowers every executive to manage his/her contribution to the organization in
these four areas which together constitute a holistic performance plan:
Performance Areas defined in
No. the Individual Performance
Form (IPF)
1 Work Objectives
2 Sapura Core Values
3 Executive & Leadership
Competencies
4 Individual Development Plan
(IDP)
What it Means to You
These are hard targets, the “WHATs” that you are expected to
achieve. Hard targets must align with business targets and they
are the reason your job exists. Objectives are always measured
by specific KPIs.
Sapura Core Values are the fundamental beliefs that guide and
motivate attitudes and actions of the employees. They identify
the things we prize most so influencing the way a person actually
behaves.
The key behaviors for Sapura Core Values have been clearly
defined to set the right behavioral standards for every employee.
These are the behaviors and skills you demonstrate, the “HOWs”
for achieving the “WHATs”. The right values and effective
leadership behaviors are as important as the targets you deliver
because your behaviors ultimately influence the work culture
and climate at Sapura. Leadership Competencies have been
clearly defined for different job grades to set the right behavioral
standards for all executives.
Although the Individual Development Plan (IDP) is not a
performance area that will be rated, it forms an important part of
your overall performance plan. Completion of the IDP is a good
indicator of whether you are continuously growing in your skills
and knowledge.
Page 5 
     
 
At the end of every financial year or performance cycle, every staff’s performance will be evaluated
and rated. The performance ratings exercise will be monitored by the Sapura PMS team to ensure
that performance is fairly rated across divisions and businesses. Ultimately, all executives will be
differentiated into the following performance categories: 
Overall
Final Performance Category
Rating
(OFR)

1&2 Under Performing Individuals (UPIs) are people who achieved an Overall Final Rating (OFR) of “1”
or “2” after the Year End Rating (YER). UPIs clearly fall below expectations in most of the
performance areas and are therefore deemed as not contributing to the success of their teams and
the Company.

3 Performers are people who achieve an Overall Final Rating (OFR) of ‘3’ after the Year End Review
(YER). Most people fall within this category. Performers are people who meet expectations across
all performance areas and may fall behind in some with acceptable reasons.

4 High Performers are those who achieve an Overall Final Rating (OFR) of “4” after the Year End
Review (YER). High performers are people who exceed expectations in one or more of the
performance areas described earlier.

5 Top Performers are those who achieve an Overall Final Rating (OFR) of ‘5’ after the Year End
Review (YER). Top performers are people who exceed their work objectives, display excellent
leadership, have deep technical knowledge and competence, and often contribute in other
significant ways which are above and beyond the call of duty.

This practice allows Sapura to reward people who have made significant contributions to the
success of the business while keeping to its annual compensation budget.

Page 6 
 
     
 

Like most other performance management systems, Sapura PMS has four distinct phases, each
phase with its specific activities. The performance cycle follows the Sapura financial year which
starts on 1st February and ends on 31st January:

 
 
 
 
   

Page 7 
 
     
 
The key activities and timelines for each phase are described as below:

Phase 1: Performance Phase 2: Coaching, Phase 3: Performance Phase 4: Rewards

Planning Feedback & Managing Review & Appraisal & Improvement
Project Transition Performance
Management

Mid Year Review (MYR)

1st to 31st July
1st February to 1st January to
Ongoing throughout the year
28th February Year End Review (YER) 31st January
1st January to 31st
January
1. Top management 1. Superiors and subordinates Mid Year Review (MYR)
1. Sapura PMS team
communicates Business meet as regularly as needed 1. Both appraisers and review rating
& Project targets to to discuss the various appraisees discuss and compliance and
Business Units. performance areas in the review all recommend actions.
Individual Performance performance areas in
2. Business Unit/Division 2. Individuals
Form (IPF). the IPF.
Heads communicate performance are
and cascade targets to 2. Coaching and feedback 2. Both parties should categorised into
their department/ sessions can be formal and highlight areas of respective
division staff division informal. concern, discuss and performance
heads and individuals agree on immediate categories.
3. Superiors should give
within their respective action plans to close 3. Appropriate
coaching and feedback
businesses. performance gaps. Rewards &
regularly, especially to
3. Individuals complete Recognition will be
individuals who are not on 3. Both parties may
relevant sections of the given to people who
track. review and adjust
Individual Performance perform.
Form (IPF). 4. Subordinates should seek targets upwards, if 4. Performance
4. Superiors and coaching and feedback appropriate. Improvement
subordinates meet to whenever needed in order to Year End Review (YER) Management
discuss and agree on stay on track in all aspects of procedures will be
the performance plan the Individual Performance 1. Appraisees review implemented for
for the year and signoff Form (IPF). their IPFs and rate all Under Performing
the Individual performance areas. Individuals (UPIs).
5. Superior and subordinates
Performance Form (IPF). 2. Appraisers and
meets and review
5. The signed off IPF to be appraisees meet to
performance upon
kept by the subordinate discuss and agree
completion of project and
for reference and on ratings. Both
follow project transition
reviews for the year. parties review the
process.
IDP and comment
on whether
development goals
have been met.
3. Appraisers and
appraisees and HOD
sign their IPFs.
4. Appraisers submit a
copy of the signed
IPF to HR.
     
 
3.0 Roles and Responsibilities for Each Phase in the Sapura PMS

3.1 Phase 1 – Performance Planning

3.2 Phase 2 – Coaching, Feedback and Managing Project Transitions

3.3 Phase 3 – Performance Review & Appraisal

3.4 Phase 4 – Rewards and Performance Improvement Management

Page 9 
 
     
 
3.1 Phase 1 – Performance Planning
 

This phase is the most important of the four phases because it sets the foundation for all other
Sapura PMS activities throughout the performance cycle. Many common issues about unfair
performance ratings and evaluations are a result of poor performance planning. Hence, it is
important that you invest your time to ensure that this phase is done well.

Performance Planning should start by 1st February and end by 28th February each year, giving all
executives sufficient time to complete all the critical sequential activities described below:

Step Activity Subordinate Responsibilities Superior Responsibilities

1 Business/ 1. Attend and participate in Key 1. Communicate and explain

Division Heads Performance Indicators (KPIs) setting clearly Business Unit or Division
communicate and communication sessions. project specific goals and how
Business & these are linked to the overall
2. Seek clarification to confirm
Project targets organizational goals.
understanding of Business Unit (BU)
to individuals.
or Division goals and expectations. 2. Communicate and explain own
Individual Performance Form
3. Seek clarification to confirm
(IPF) to subordinates.
understanding of personal
contribution to Business Unit (BU) or 3. Suggest KPIs for subordinates
Division goals. and guide subordinates to
avoid setting overlapping KPIs.
4. Practice good interpersonal
skills to engage with
subordinates.
2 Prepare the 1. Review your previous year’s 1. Provide guidance for
Individual Individual Performance Form (IPF) (if completing the Individual
Performance any) to identify if changes are Performance Form (IPF).
Form (IPF). needed for any of the performance
2. Suggest new KPIs especially for
areas.
new initiatives/projects or for
2. Prepare a draft IPF with work subordinates with new roles
objectives, core values, and responsibilities.
competencies and Individual
3. Ensure that IPF Guidelines are
Development Plan (IDP).
followed.
3. Review your draft work objectives to
ensure they are aligned to BU or
Division goals. Use Key Performance
Indicators (KPIs) directory to set KPIs.
4. Adhere to the IPF Guidelines in
Appendix 1.
5. Seek clarification from your superior
where necessary.

Page 10 
 
     
 
Step Activity Subordinate Responsibilities Superior Responsibilities

3 Plan for and 1. Send the draft Individual 1. Review the draft Individual
Conduct an Performance Form to your superior. Performance Form (IPF) to ensure
Expectation compliance with IPF Guidelines.
2. Set an appropriate time and place for
Setting
the meeting. 2. Review each work objective to
Discussion
ensure they align with BU or
3. Lead the discussion using your draft
Division goals.
Individual Performance Form (IPF)
and discuss all performance areas. 3. Note work objectives that are not
aligned or overlap with work
4. Seek your superior’s suggestions and
objectives of other executives.
ideas.
4. Prepare for the discussion with
5. Practice good interpersonal skills.
the aim of reaching agreement
6. Reach agreement on the with and gaining commitment
performance plan as defined in the from the subordinate.
draft IPF.
5. Encourage the subordinate to take
ownership and lead the
discussion.
6. Practice good interpersonal skills
to keep the discussion focused
and on track.
4 Sign Off the 1. After the discussion with your 1. Check the Individual Performance
Individual superior, make final amendments to Form (IPF) for accuracy and
Performance your Individual Performance Form compliance with IPF Guidelines.
Form (IPF). (IPF).
2. Sign the IPF.
2. Check to ensure compliance with IPF
3. Make a copy and retain it for your
Guidelines.
reference.
3. Sign the IPF.
4. Send the signed IPF to your superior
and obtain his/her sign off.
5. Retain a copy of the IPF for your
reference and future use.

* Notes: Please refer to the Individual Performance Form (IPF) in Appendix 1 for tips on how to:

 Complete the IPF; and

 Conduct discussions using good interpersonal skills

Page 11 
 
     
 
3.2 Phase 2 – Coaching, Feedback and Managing Project Transition
 

In Phase 2 there are 2 primary activities that are on-going throughout the financial year namely
Coaching & Feedback and Managing Project Transition.

Coaching & Feedback

Although Coaching & Feedback is labeled as Phase 2 in the performance cycle, it is in fact a
continuous process which should happen throughout the year. An effective Sapura PMS is built on
strong trusting relationships between superiors and subordinates. Hence, Coaching and Feedback
is an essential leadership skill for all leaders in Sapura.

While leaders are expected to provide effective and timely Coaching and Feedback to their
subordinates, subordinates must also proactively seek coaching and feedback when needed. The
benefits of regular Coaching and Feedback are:

 Superiors can help their subordinates succeed and in turn, they become successful.

 These conversations open opportunities for both parties to discuss new and better ways of
delivering results.

 Superiors can motivate and influence subordinates to enhance their skills in order to grow
and make progress in their careers.

 These conversations encourage open communication and build trust between

subordinates and their superiors.

 Regular practice will build a strong coaching culture at Sapura, thereby enhancing
Sapura’s ability to develop and grow talent from within.

Coaching and Feedback may be formal and informal. Both formal and informal coaching is
relevant and important in the Sapura PMS.

Formal Coaching
Formal coaching refers to coaching sessions that are mandated in the Sapura PMS and they include
the following:

Phase 1 Expectation Setting Discussion.

Phase 2 Managing Projects in Transition
Phase 3 Mid Year Review (MYR) and Year End Review (YER)

Phase 4 Managing Under Performing Individuals during the Performance

Improvement Management (PIM).
 

Formal coaching is characterized by structured processes and proper documentation in the

Individual Performance Form (IPF). This is to keep track of what was discussed and agreed upon.

Page 12 
 
     
 
Informal Coaching
Informal coaching is often done on a day-to-day basis whenever a subordinate needs help to
achieve better results or to close performance gaps. Informal coaching can happen in the
following situations:
1. When a subordinate/team undertakes an unfamiliar or new project.
2. When a subordinate/team is struggling to deliver assigned tasks or project outcomes.
3. When a high performing individual/team is looking for greater challenges.
4. When you believe that a subordinate/team can achieve breakthrough results with your
guidance.

While leaders are responsible for providing effective and timely coaching, subordinates are
responsible for receiving coaching and feedback with open minds and for taking actions to achieve
better results or close performance gaps.

Appendix 1 provides tips for effective communication, coaching and feedback.

Page 13 
 
     
 
Managing Project Transition
Sapura’s nature of business is driven by highly profitable projects which are carried out throughout
the financial year. Projects that are undertaken in Sapura have different duration for completion.
Some might take 6 months and some might take a year or longer. In the process of completion of
each project, employees of Sapura must understand and know how to manage their performance
during the transition from one project to another.

Upon the completion of each project, the subordinate and superior should sit down for the project
review within one week upon project completion sign-off. During the project transition, the
subordinate and superior have the following responsibilities:
Subordinate Responsibilities
1. Update your Individual Performance Form (IPF)
with performance data of the project. Record
results/targets achieved. Rate each
performance objective.
2. Gather additional behavioral data for assessing
core values and competencies identified in your
IPF. Use the Situation, Task, Action and Result
(STAR) approach to record core values and
competencies demonstrated during the year.
Rate each core values and competencies.
3. Record actions taken and outcomes of your
development activities in the Individual
Development Plan (IDP) section of your IPF.
4. Send a copy of your IPF to your superior and set
a date for the project review.
5. Use the IPF to lead the review, discuss and
confirm all ratings.
6. Review the Individual Development Plan (IDP)
and identify appropriate development focus
and actions for next project.
7. Write comments, reflections, key learning or
insights gained from the project.
8. Sign the IPF.
9. Make appointment with next project leader
within two weeks and start performance
planning phase again.
Superior Responsibilities
1. Review every section of the completed
Individual Performance Form (IPF) and the
appraisee’s ratings.
2. Provide additional data about results achieved
and behavioral observations of core values and
competencies demonstrated.
3. Identify performance ratings which you
disagree with and prepare to provide additional
evidence to support your ratings.
4. Rate based on evidence so that your ratings can
be accurate and fair.
5. Encourage your subordinate to lead the project
review.
6. Practise good interpersonal skills to reach
agreement.
7. Discuss, agree and confirm all ratings.
8. Review the Individual Development Plan (IDP),
note development achievements, milestones
and barriers encountered.
9. Discuss appropriate next steps for the next
project.
10. Write comments on your overall observations
during the project, highlighting key
achievements and suggestions for enhancing
performance in the following project.
11. Sign the IPF and submit the IPF to HOD for
endorsement.
12. Submit one IPF copy to HR and one copy to the
next project leader in-charge.
13. Set discussion date with next project leader to
review the subordinate IPF and provide input.
This must be done within two weeks before a
new performance cycle starts (performance
planning phase).

   

Page 14 
 
     
 
3.3 Phase 3 – Performance Review and Appraisal
 
There are two formal reviews that must happen within this phase:
1. Mid Year Review (MYR) from 1st to 31st July, and
2. Year End Review (YER) from 1st January to 31st January.

These formal reviews are described below.

Mid Year Review (MYR)

The purpose of the Mid Year Review (MYR) is primarily to check progress at the midpoint of the
performance cycle. Reviews in addition to the MYR are encouraged so that appraisees have
sufficient time to take urgent actions in order to stay on track with their performance plan. When
done well, the MYR and other regular reviews during the year will reduce the element of surprise at
the Year End Review (YER).
The Mid Year Review (MYR) is an opportunity for the appraiser and appraisee to:

 Determine whether work objectives, core values, competencies and the Indivdual
Development Plan are on track.
 Identify performance areas that are on track and discuss how to meet or exceed
expectations.
 Identify performance areas that are falling behind and discuss how to close performance
gaps.
 Give and seek feedback and coaching so that appraisees have the support they need in
order to succeed.

During the Mid Year Review (MYR), both the subordinate and superior have the following
responsibilities:

Subordinate Responsibilities Superior Responsibilities

1. Gather performance data and record mid year 1. Review mid year results recorded in the IPF.
results in the Individual Performance Form (IPF).
2. Note areas of concern and identify opportunities
2. Review mid year results, identify areas to for coaching and feedback.
highlight during the Mid Year Review (MYR).
3. Note areas which are on track and identify
3. Send a copy of the IPF to your superior and set opportunities to recognize efforts made by your
an appointment for the MYR. subordinate.
4. Lead the discussion and use the IPF to guide the 4. Confirm the MYR meeting and allow your
discussion. subordinate to take the lead.
5. Seek coaching, guidance and feedback from 5. Review all performance areas in the IPF and
your superior. where appropriate, provide feedback, coaching
and suggest actions for your subordinate to stay
6. Discuss and agree on specific action plans.
on track.
7. Summarize your action plans in the IPF and set a
6. Discuss and agree on actions to be taken and set
date for a follow-up review meeting.
a follow-up date.
8. Retain the IPF and keep a record of the review
for reference in the next meeting.

Page 15 
 
     
 
Year End Review (YER)
The purpose of the Year End Review (YER) is to rate all performance areas to make an
overall assessment of how individuals have performed throughout the year. At the YER,
ratings are assigned based on results achieved and these are discussed and agreed upon
between appraisers and appraisees.

When the Mid Year Review (MYR) and other regular reviews are done well, the Year End
Review (YER) is merely a summary of results achieved over the past year and should pose
no surprises at all. The YER puts a closure to the performance cycle and is an opportunity
for the appraiser and appraisee to:

 Rate actual performance achieved at the end of the year against the goals set at the
beginning of the year.
 Review the Indvidual Development Plan, discuss what development plans were
completed and how these have helped the appraisee, discuss what was not
accomplished and the barriers encountered during the year.
 Recognize major achievements, understand how these were accomplished and discuss
how this can be sustained in the coming year.
 Recognize challenges, action plans that did not yield results and discuss what needs to
change in the coming year.
 Use insights gained from the past year to look for improvement ideas for the coming
year.
 

Page 16 
 
     
 
At the Year End Review (YER), both the subordinate and superior have the following
responsibilities:

Subordinate Responsibilities Superior Responsibilities

1. Update your Individual Performance Form (IPF) 1. Review every section of the completed IPF and
with performance data as at 31st January. Record the appraisee’s ratings.
results/targets achieved. Rate each
2. Provide additional data about results achieved
performance objective.
and behavioral observations of core values and
2. Gather additional behavioral data for assessing competencies demonstrated.
core values and competencies identified in your
3. Identify performance ratings which you disagree
IPF. Use the STAR approach to record
with and prepare to provide additional evidence
competencies demonstrated during the year.
to support your ratings.
Rate each competency.
4. Rate based on evidence so that your ratings can
3. Record actions taken and outcomes of your
be accurate and fair.
development activities in the Individual
Development Plan (IDP) section of your IPF. 5. Encourage your subordinate to lead the YER.
4. Send a copy of your IPF to your superior and set 6. Practise good interpersonal skills to reach
a date for the Year End Review (YER). agreement.
5. Use the IPF to lead the YER, discuss and confirm 7. Discuss, agree and confirm all ratings.
all ratings.
8. Review the IDP, note development achievements,
6. Review the IDP and identify appropriate milestones and barriers encountered.
development focus and actions for the following
9. Discuss appropriate next steps for the following
year.
year.
7. Write comments, reflections, key learning or
10. Write comments on your overall observations
insights gained from the past year.
during the year, highlighting key achievements
8. Sign the IPF. and suggestions for enhancing performance in
the following year.
11. Sign the IPF and submit the IPF to HOD for
endorsement.
12. Submit the IPF to HR.

Page 17 
 
     
 
3.4 Phase 4 – Rewards and Performance Improvement Management

Sapura PMS is an effective business tool designed to harness every executive’s efforts
towards achieving the company’s overall goals and to provide useful data about each
individual’s contribution to the success of the organization.

Performance ratings will be used to identify people who should be rewarded for their
contributions and people who should be closely supervised because they failed to meet the
expectations of their job/role in the organization.

When an executive is rated a “1” or “2” which means s/he is an Under Performing
Individual (UPI), a series of steps, actions and guidelines will have to be followed to ensure
that the UPI is given a reasonable and fair opportunity to improve in his/her performance.
These brief steps and guidelines are described in Appendix 2.

Page 18 
 
     
 
4.0 Role of the Sapura Performance Management System (PMS)
Team in the Sapura PMS
As described earlier, individual performance ratings will influence the distribution of
rewards at Sapura. As such, Sapura desires to differentially reward people who are clearly
contributors and practice consequence management on those who are not contributors.

The role of the Sapura PMS Team is to ensure that people across the organization are rated
fairly relative to one another, so that an executive who is rated “4” in Division A is
comparable to another executive who is rated “4” in Division B. In short, the Sapura PMS
team acts as a body responsible for monitoring performance ratings of individuals within
Business Units/Divisions and across Business Units/Divisions.

This monitoring process is necessary for the following reasons:

1. While Sapura PMS offers structured steps and processes and has well defined
guidelines, variances will arise because of non compliance or poor understanding of
what is required.

2. Every leader has his / her own idea of what each rating scale means. Inevitably there
will be instances where some demand higher standards of performance than others.

3. In driving a high performance culture, Sapura wants to clearly differentiate top

performers from high performers from performers and those who are under
performing individuals so that differential rewards and recognition can be given.

Page 19 
 
     
 
Appendix 1: Guidelines for filling the Individual Performance
Form (IPF)

These guidelines have been prepared to help you complete your Individual Performance
Form (IPF) in a clear, accurate and meaningful way so that the IPF can be a useful tool for
you to manage your own performance and success.

It is the responsibility of every Sapura executive to become familiar with these guidelines.
Failure to comply may cause you to lose focus on what is important for your job/role and
therefore cause you to fall behind. Hence, it is very important that you become familiar
with these IPF Guidelines in order for you to become a proficient Sapura PMS user.

Refer to
No
Page No

1.0 Writing Work Objectives 21

2.0 Tracking and Assessing Sapura Core Values 25

3.0 Identifying and Tracking Executive & Leadership Competencies 26

4.0 Writing an Effective Individual Development Plan (IDP) 27

5.0 Summary of Overall Performance Ratings 28

Guidelines for Conducting Performance Discussions, Coaching and

6.0 29
Feedback

Page 20 
 
     
 
1.0 Writing Work Objectives
This is probably the most challenging part of the Individual Performance Form (IPF). Most
people think about their job/role in terms of daily/regular tasks e.g. attending meetings,
writing reports or solving operational problems. Executives often struggle with identifying
Key Performance Indicators (KPIs) which focus on outcomes and not activities/tasks. The
following guidelines will address common problems in writing work objectives.

How Many Objectives Should I Have?

It is important to have an appropriate number of work objectives so that you can stay
focused on what is important. Most people have a minimum of five (5) and a maximum
of about eight (8) objectives. It is not uncommon to see more than eight (8) objectives
for senior roles where the job scope is very wide.
A good test for whether you have a sufficient number of objectives is to ask yourself the
question: “Is my job scope adequately covered by all the objectives in my IPF?”
If you understand the importance of your job, the key initiatives in your business
unit/division and the overall goals of your business unit/division, then you probably have
set enough objectives to support your superior’s objectives.

How Will I Know Whether My Objectives Are Well Written?

Well written objectives meet the S.M.A.R.T criteria. Use the following S.M.A.R.T. criteria to
write objectives that are clear:

S Specific Objectives should be stated in specific terms to avoid confusion about what is
to be achieved. When your objectives are clear, you know what is expected
and how results will be measured at the YER.

M Measurable Objectives should have well-defined measurements so that you can track
progress and determine final results at the end of a performance cycle.
Measurements will contribute to accurate ratings when results are compared
against the plan. The 4 areas of measurement are quantity, quality, cost
and timeliness. Use the Sapura KPI Directory.

A Attainable Objectives should be within your reasonable influence or control so that you
will be motivated and committed to achieve them.

R Relevant Objectives should be relevant to your job and should align with your
Business Unit/Division targets.

T Time bound Most objectives have deadlines to ensure that results are achieved in a
timely manner. This provides a sense of urgency for action.

To help in setting effective KPIs, always refer to the Sapura Business KPI Directory.

Page 21 
 
     
 
Why Are There Base (Meet), Stretch and Exceed Targets?
In most instances, you will not meet your targets with precision. For example, you may
miss a target by 5% or exceed some targets by 10% or more. In these instances, it would
be important for you to know what ratings you will receive.

To achieve fairness and consistency in rating performance at the Year End Review (YER), an
objective can have a base (meet), stretch and exceed target. This practice will not only
challenge you to excel but will also differentiate you from others. Remember that there
are 4 categories of performers (top performers, high performers, performers and under
performing individuals) and you would want to try your best to do better than your “meet”
target.

How Should I Record Results Achieved?

When objectives are SMART, recording results achieved is straightforward. When the
objectives set and the results achieved are clear, then ratings for performance objectives
can be accurate and fair.

The example is illustrated in the next page.

 

Page 22 
 
     
 
 

Planning
Targets *Wgt
Key Results
KPIs Work Objectives 100%
Areas Base Stretch Exceed (A)
1 Project Timeline Complete 100% of phase One 31 October 31 Aug Before 31 30.0%
Management of Project A planned activities 2010 (Q3) 2010 (Q3) Aug 2010
within in Quarter 2 (Q3)

2 Project Cost Achieve and control expenses RM10 RM7.5 Below 20.0%
Management provision of RM10 million for million million RM7.5
Project A (year of 2010). million

3 Project Quality Ensure "0" casualty/incidents 0 Casualty 10.0%

Management - during the implementation of
Risk / Phase One of Project A
Compliance
Mgmt
4 Project Quality Achieve and maintain Client 4.0 point 4.25 4.5 point 20.0%
Management Satisfaction Rating (CSR) for
project A at minimum of 4.0
point from 5.0 point

5 Business Quality Assist BD team in preparing Winning Winning 100% of 20.0%

Development attractive and high-impact 90% all the 95% all the wins on
tender proposals and time of for time of for tender
presentations as when tender tender submission
required and win the tender. submission submission

Page 23 
 
     
 
How Should I weight Work Objectives Set?
Although all objectives in the Individual Performance Form (IPF) must be achieved, not all
objectives are of equal importance to your role. It is also dependent on business priorities.
Because of this, weights are assigned to each objective. There is no fixed formula in
assigning weights to specific objectives. Hence subordinates must discuss this step with
their superior during the performance planning phase.

As a general guideline, objectives which are of equal importance should be assigned the
same weightage. Avoid assigning more than 30% weightage to any one particular
objective as this put a person’s performance rating at risk if the heavily weighted objective
is not met. Below is an example of how weights are assigned in a balanced manner:

No Objectives Weightage (Wt%)

1 Objective 1 30%
2 Objective 2 20%
3 Objective 3 15%
4 Objective 4 15%
5 Objective 5 20%
Total 100%

How Should I Use the Rating Scale?

 

The Individual Performance Form (IPF) is designed to help you use the rating scale
accurately. As illustrated earlier, meeting your meet target represents a “3” rating. If you
have set and agreed on stretch and exceed targets, then achieving stretch and exceed
targets will represent ratings of “4” or “5” respectively. A rating of “1” or “2” clearly means
that the base target was not met. In Sapura you are expected to perform at a minimum of
rating “3”.

Confusion arises when you perceive or see a rating of “3” as being average. A rating of “3”
is not average. Instead it indicates that you have delivered and contributed to your
Department/BU/Division.
 

RATING SCALE
Rating Definition Description
1 Does not meet Significantly far below par performance
2 Below Does not fully meet expectation set
3 Meet Achieve expectation set
4 Stretch Achieve above expectation set
5 Exceed Excellent performance
 

   

Page 24 
 
     
 
2.0 Tracking and Assessing Sapura Core Values

Sapura Core Values represent the behaviors expected of Sapura employees, especially
those who lead subordinates. These values have been defined very clearly with key
behaviors and actions that you can observe and measure to make a sound judgment about
effectiveness.

How Many Sapura Core Values Should I Have in My Individual

Performance Form?
All Sapura Core Values are important for your job/role. Hence, you should include all of
them in your Individual Performance Form that will help you achieve your SMART goals for
the year.

How do I Track and Assess Sapura Core Values?

When you refer to the Sapura Core Values Dictionary, you will notice that every value is
defined by a set of required key behaviors. Hence, to track and assess the values, you need
to record actions taken in specific situations.
You should apply the STAR approach to record complete evidence of the Sapura Core
Values that you used in achieving your work objectives. Using the STAR approach, you
record:

ST Situation or What was the problem, challenge, assignment, task or project?

Task
A Action What you said and what you did to resolve the problem or to complete
the assignment/task given?
R Result What were the outcomes or results of your actions? What was the impact
of your actions to the situation at hand?

Page 25 
 
     
 

3.0 Identifying and Tracking Executive & Leadership

Competencies

At Sapura, Leadership Competencies represent the knowledge, skills and behaviors

expected of Sapura executives, especially those who lead subordinates. These
competencies have been defined very clearly for each job grade, with key actions that you
can observe and measure to make a sound judgment about effectiveness.

How Many Executive or Leadership Competencies Should I Have in My

Individual Performance Form?
You should identify no more than 5 competencies that are important for your job/role.
Hence, you should include in your IPF the Leadership Competencies that will help you
achieve your SMART goals for the year.

How do I Track Executive or Leadership Competencies?

When you refer to the Sapura Executive or Sapura Competency Dictionary, you will notice
that every competency is defined by a set of required key actions. Hence, to track and
assess competencies, you need to record actions taken in specific situations.

You should apply the STAR approach to record complete evidence of the Executive or
Leadership Competencies that you used in achieving your work objectives. Using the STAR
approach, you record:

ST Situation or What was the problem, challenge, assignment, task or project?

Task
A Action What you said and what you did to resolve the problem or to complete
the assignment/task given?
R Result What were the outcomes or results of your actions? What was the impact
of your actions to the situation at hand?

What Will Happen if I Do Not Have STARs?

If you do not record STARs or if you do not seek STARs from others, then you have no data or
evidence to assess and rate your Leadership Competencies. This will affect your Overall Final
Rating (OFR) at the Year End Rating (YER).

How Should I Rate Executive or Leadership Competencies?

Competencies become very objective when there is sufficient evidence to substantiate whether
you can be considered a role model for others, effective, still developing/growing or has a big
gap. What is important will be complete evidence or complete STARs to substantiate ratings.

Page 26 
 
     
 
4.0 Writing an Effective Individual Development Plan (IDP)

As an effective Sapura executive, you are encouraged to continuously grow and develop your
capabilities. This is to ensure that you continue to add value to Sapura as well as remain highly
skilled, valuable and employable.
To keep it manageable, focus on only two (2) competencies which you wish to develop during
the year. One way is to look at the Leadership Competencies sections of your Individual
Performance Form (IPF) and identify two (2) which you would like to include in your IDP.
Another way is balance one leadership competency and one technical skill for development.

Page 27 
 
     
 
5.0 Summary of Overall Performance Ratings

This section is merely a summary record of all the ratings agreed to in the earlier sections of
the Individual Performance Form (IPF). Where there are rating fractions, the appraiser can
recommend a final rating.

OVERALL FINAL RATING

1 Significantly Below Expectation
2 Generally Does Not Meet Expectation
3 Overall Meet Expectation
4 Overall Exceed Expectation
5 Significantly Exceed Expectation

Page 28 
 
     
 
6.0 Guidelines for Conducting Performance Discussions, Coaching
and Feedback

At Sapura, the Sapura PMS is NOT a form filling administrative exercise. It is about creating an
environment where people are motivated to do their best. While it is important to have well
written IPFs, it is equally important that conversations about performance are meaningful,
productive and engaging.

Every Sapura executive is responsible for using good interpersonal skills to build solid trusting
relationships that contribute to creating a conducive environment for people to thrive.
Following are some guidelines to help you achieve productive and efficient discussions about
performance.

How Can Discussions be Effective?

Discussions can be effective when you follow a proper process to stay on track and use skills
that build trust, open communication and commitment. Below is a proven model you can use:
 

  Discuss &
Open Clarify Close
  Agree
 

 
Open the discussion by
stating purpose and
importance.
Clarify all or selected
sections in the IPF; e.g.
- Objectives set
- Results Achieved
- Competencies
demonstrated
- Ratings, etc
Close by summarizing
agreed action steps and
set a follow-up date.
Discuss ideas and plans
e.g. how to improve
performance
Agree on the key items
discussed e.g. Meet,
stretch & exceed targets

Esteem Empathy Involvement Share Support

Maintain or Listen and Ask for help and Share Thoughts, Provide Support
Enhance Self Respond with Encourage Feelings and without
Esteem Empathy Involvement Rationale Removing
Responsibility

Page 29
     
 
How Do I Apply Good Interpersonal Skills?
For most people, good interpersonal skills do not come naturally. You can learn and then apply
them frequently in order to become confident and proficient. The skills described below are
applicable in all situations. You need to use them wisely in order for you to keep conversations
open, engaging and productive.

 Be specific and sincere with your praises or

Maintain or Enhance feedback
Esteem Self-Esteem  Recognize achievements and exceptional efforts
 Focus on facts

 Describe facts and feelings

Listen and Respond  Listen and respond emphatically to strong feelings
Empathy with Empathy expressed by the subordinate / superior
 Empathize without agreeing where appropriate

 Unleash ideas with questions

Ask for help and  Encourage the appraise to share performance
Involvement Encourage data and rationale for ratings while asking
Involvement clarifying questions
 Seek involvement from the appraisee / appraiser
on actions needed

 Share feelings and rationale to build trust

Share thoughts,
 Share additional performance data when
Share feelings and
rationale necessary
 Disclose selectively and wisely

 Help the appraise make decisions, but don’t take

Provide support over
Support without removing  Reinforce accountability
responsibility  Make commitments you can keep
 Actions speak louder than words

Page 30
     
 
Appendix 2: Performance Improvement Management (PIM)

In line with Sapura’s desire to nurture a high performing workforce, it has become important
for Sapura to differentiate people who perform from those who do not and appropriately
manage people who do not perform. Individuals who do not perform, who do not deliver
results or fail to align with Sapura’s values and competency expectations will face
consequences.

Performance Improvement Management (PIM) refers to an intense process where specific and
focused efforts and steps are taken to improve someone’s performance. PIM processes and
guidelines are used to manage people who are deemed as under performing individuals (UPIs)
with the intent of providing them with opportunities to improve and become valuable
contributors to Sapura.
Performance Improvement Plan (PIP) will be initiated by Human Resource and superior is
responsible to improve the performance of the staff through performance coaching
throughout the Performance Improvement Period.

Who are considered as Under Performing Individuals (UPIs)

As explained earlier, people who are rated with an Overall Final Rating (OFR) of “1” or “2” are
classified as Under Performing Individuals (UPIs). UPIs are required to follow the steps and
procedures described in this section so that they can show significant improvements during the
intense period called the performance improvement period.

What is the Purpose of the Performance Improvement Management (PIM)?

Sapura believes that every individual should be treated fairly and therefore be given time and
opportunities to show improvements. The performance improvement period is an intense and
focused period given to an UPI for him/her to improve his/her overall performance. During
that period, the UPI takes accountability for meeting expectations set in his/her IPF while the
superior provides the necessary support needed by the UPI.

Lack of improvement will lead to termination of employment of the Under Performing

Individual (UPI).

Page 31 
 
     
 
What Happens during the Performance Improvement Period for an Under
Performing Individuals?
Under Performing Individuals (UPIs) with an Overall Final Rating (OFR) of “1” or “2” will be
included in the Performance Improvement Management (PIM).
During this period, the following actions and guidelines will apply:

Actions and Guidelines

1. PIM takes effect from the date the Under Performing Individual (UPI) receives the
notification letter.
2. A formal written letter serves as a warning to the UPI on the urgent need to improve
performance.
3. The superior and the UPI jointly identify causes of performance gaps, review and agree on
action plans to close these gaps.
4. The superior and the UPI discuss and agree on all performance areas in the Individual
Performance Form - IPF (Work Objectives, Sapura Core Values, Competencies and the
Individual Development Plan) and the UPI commits to actions aimed at achieving a
minimum OFR of “3” at YER.
5. The superior provides monthly coaching and the UPI documents every coaching session in
the Coaching Log section of the IPF.
6. Formal performance reviews should be conducted every month during the Performance
Improvement Management Period.
7. If the UPI achieves a minimum Overall Final Rating of “3” at the end of the Performance
Improvement Management (PIM) period, the individual is considered to have met the
overall expectations set during the PIM period.
8. If the UPI continues to be rated with an OFR of “1” or “2” at the YER, the UPI will be
recommended for termination of employment to the Performance Improvement Committee.

Page 32 
 
     
 
Glossary

Terms Used Definition

Appraiser Someone who has to appraise the performance of others. People who have
subordinates are appraisers.
Appraisee Someone whose performance is being appraised. This includes all individual
contributors and leaders who report to a more senior leader.
Coaching A process used to guide others to discover the best way of accomplishing a
goal successfully.
Due Diligence The conformance or adherence to processes, policies and guidelines defined
in the Sapura Performance Management System.
Expectation Setting This is a formal one-to-one conversation between superior and subordinate to
Discussion discuss and agree on all aspects of the performance plan for the year. For
most people, this discussion takes place at the start of a financial year.
Feedback An ongoing process to let a person know how s/he is performing against
expectations. To be useful, feedback must be specific, timely and balanced.
Individual Performance This refers to the Form used by every Sapura staff to document their goals for
Form (IPF) the year and their achievements at the end of the year.
Individual Development This is an action plan found in the IPF which defines specific activities and
Plan (IDP) timelines aimed at enhancing skills or closing skill gaps.
Key Performance Measurements used to make goals clear and specific. Goals can be measured
Indicators (KPIs) in terms of quantity, quality, cost and timeliness.

KPI Setting and Cascading A formal discussion where business targets and scorecards are shared so that
KPIs can be cascaded from superiors to subordinates.

Leadership Competencies These are knowledge, skills and behaviors needed by an individual to become
an effective leader.

Mid Year Review (MYR) This review takes place in the month of July, 6 months after the start of the
performance cycle. The superior and subordinate reviews the IPF to check if
goals and IDPs are on track.

Work Objectives These are often also referred to as goals or KPIs which are documented in the
IPF. Objectives/goals must be SMART (specific, measurable, attainable,
realistic and time-bound).

Page 33 
 
     
 

Terms Used Definition

Performance This refers to an intense and focused process given to an under performing
Improvement individual (UPI) to improve his/her overall performance. During this
Management (PIM) specified period of time, the UPI is expected to take steps to perform up to
expectations, failing which she/he may be terminated.

Performance This refers to an intense and focused period given to an under performing
Improvement Period (PIP) individual (UPI) to improve his/her overall performance. During this
specified period of time, the UPI is expected to take steps to perform up to
expectations, failing which she/he may be terminated.

Performance Planning This is the first phase in the SPMS which takes place in February each year.
Phase During this phase, every Sapura staff completes the IPF and signs-off the IPF
after discussions with his/her superior.

Performance Review Regular and engaging discussions between the appraisee and appraiser on all
aspects of the IPF. These reviews often include a healthy exchange of timely
feedback and coaching to help the appraisee stay on track and ultimately to
achieve his/her goals.

Sapura Performance A business tool designed to empower every Sapura executive to take
Management System ownership and accountability for his/her performance and success.
(SPMS)

Sapura Performance A team that monitors the SPMS and recommends actions to ensure that the
Management Team SPMS is working effectively.
(SPMT)

Subordinate A permanent executive with clear roles and responsibilities and has a leader
to report to.

Superior A leader who manages other people and has accountability for their
performance.

Year End Review (YER) This review takes place in January each year. This is the final review of the IPF
when the appraiser and appraisee discuss and agree on performance ratings.

Page 34