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Building on People
Management by Objectives
Appraising Performance
Planning for Development
Contents
Introduction.................................................................................................................................................... 2
Defining Objectives ....................................................................................................................................... 2
Communicating Objectives ........................................................................................................................... 3
Appraising Performance: the SLP-3 ............................................................................................................. 3
What is a Performance Appraisal? ........................................................................................................... 3
When to Appraise Performance ................................................................................................................ 3
Preparing a Performance Appraisal .......................................................................................................... 4
The SLP-3 Form ............................................................................................................................................ 4
Specific Objectives and Results ................................................................................................................ 4
Performance Factors ................................................................................................................................. 4
Overall Performance in Present Position .................................................................................................. 5
Comments ................................................................................................................................................. 6
Career Considerations .............................................................................................................................. 6
Plan For Development .............................................................................................................................. 6
The Appraisal Meeting .................................................................................................................................. 7
Starting the Meeting .................................................................................................................................. 7
During the Meeting .................................................................................................................................... 7
Giving Feedback About Performance ....................................................................................................... 7
Concluding the Meeting ............................................................................................................................ 7
Conclusion..................................................................................................................................................... 8




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Introduction
Training and development of people is the primary responsibility of any manager. The Performance
Appraisal is one of the major people management tools used within Schlumberger. Without objectives it is
impossible to appraise performance and without effective performance appraisal it is impossible to train
and develop.
Appraising performance is one of the most difficult tasks a manager has to perform. However, when
properly carried out, it is one of the most effective tools in managing people: their job performance, their
motivation, their training and development.
This booklet describes how the process of setting objectives, appraising performance and planning for
development should be carried out.
Managers at every level should read these guidelines each time they set objectives or carry out a
performance appraisal, They should discuss the appraisal and development process freely with their HR
Manager, whose role is to give them advice and guidance.
The booklet is given to professional staff of Schlumberger, not only to those who have to carry out
appraisals, but also to those who will be appraised, so that they understand the process.
Defining Objectives
Specific objectives for an individual are a combination of:
objectives resulting from the strategy and general goals of Schlumberger, the group, division,
business or department
objectives related to the key results areas of the job description; a specific objective should be set
in each key area
objectives which specify the results of the individuals development plan
For those on a financial incentive program, incentivized objectives are termed Key Performance
Objectives (KPOs) and should align with one or more of the following focus areas:
Growth: To continuously outpace the market, maximizing revenue through market share,
pricing, M&A and new businesses.
Returns: To deliver superior financial margins, maximizing income through efficiency, size and
cost focus
Integrity: To live by the same high standards of business practices everywhere. Actions,
decisions and behaviors assuring that we do what we say.
Engagement: To understand and exceed the expectations of all stakeholders: customers,
employees, suppliers, communities, authorities, investors.
Normally no more than 6 to 8 major objectives should be set at any one time. Priorities need to be
focused: a long list of objectives quickly loses sight of the key results needed.
Objectives should be:
based on data
measurable (ideally quantitative and at least qualitative)
achievable and realistic
adapted to the level of responsibility and experience of the individual


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challenging, requiring individuals to make real efforts, thus helping to develop their skills and
abilities
Every manager should have at least one specific objective concerning the management and development
of their people and communication with them.
Individuals should have at least one specific objective related to their own personal development.
Communicating Objectives
Objectives must be discussed and agreed with individuals in order to ensure their personal commitment
and motivation to achieve them. Objectives that are imposed are unlikely to gain either.

An objective must specify
the time scale in which the objective is to be achieved
how the person will achieve it (e.g. defining the means and resources: people, equipment,
budget, support from other departments, etc)
how the results are going to be measured
Objectives should be reviewed regularly, and if necessary amended as business priorities change.
Appraising Performance: the SLP-3
What is a Performance Appraisal?
A Performance Appraisal is simply the comparison of actual results against agreed objectives, and a
review of performance-related behaviors or how the objectives were achieved. As such it is the key tool
to help managers, giving:
the starting point of training plans to improve the performance of individuals in their current jobs
an identification of their skills and potential for future career development
an opportunity for employees to know how they are doing and to express their job and career
concerns and interest
The form that that is used throughout Schlumberger to record performance appraisal is known as the
SLP-3.
When to Appraise Performance
The SLP-3 form is normally prepared once a year. At this time the process covers both:
the appraisal of the previous years performance, and
the definition of the following years Plan for Development
A performance appraisal should also be carried out prior to transfer of an individual, unless one has
recently been carried out. It is important that a record of what the individual has accomplished and how
they have performed is maintained.
The performance appraisal is about individual performance on the job in the past year and what they are
going to do in the following year. It is not about salary or merit increases, matters over which the direct
supervisor does not have full control and which should be the subject of a separate discussion.


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Preparing a Performance Appraisal
The SLP-3 is completed by the direct supervisor.
Results against objectives should be reviewed with individuals in the normal course of business, and in a
formal, structured way minimum semi-annually. Employees should know how they are doing so the
contents of an SLP-3 should never be a surprise. This means that the manager needs to note what
happens during the year, which will make the annual SLP-3 much easier to complete.
The performance appraisal covers the whole period under review, not just the good or bad results of the
last few weeks. Managers must take the time to reflect fully on all aspects of individual performance since
the last appraisal. For employees who complete a partial year due to some type of leave (eg. maternity,
disability, educational) or because they transferred to the role mid-year, the appraisal should consider the
performance only during the period working, and what is reasonable to achieve during that time.
What is written on the SLP-3 is the collective view of the management. Differences of opinion between
the manager and his/her superior or the functional manager must be resolved before the individual is
appraised.
Prior to the performance appraisal meeting, managers should complete the appraisal form and discuss it
with their superiors. Where appropriate, it should also be discussed with the functional manager.
The SLP-3 Form
Specific Objectives and Results
This section comprises three elements:
Outline of specific objectives: a statement of the years agreed objectives or KPOs
Results: the record of what actually happened
Comments: where the employee expands on the results including reasons for any differences
between objectives and results
The manager needs to consider whether the difference is due to:
the individuals effort being insufficient
lack of skill and knowledge
events outside the individuals control (but what did they do to try to resolve the problem?)
insufficient resources being available
Equally when the desired results have been obtained it is important to reflect on how they were achieved
including the balance of individual effort and aspects beyond the employees control.
This section thus allows the manager to review job performance factually, comparing actual with planned
results.
Performance Factors
This part of the SLP-3 requires the manager to rate employees on the 13 behaviors under the Blue Print
Mindset categories of Commitment, Integrity, Teamwork, and Drive.
The manager rates the employee on each factor as Development, Satisfactory, Strength, or Leadership.
Behavior definitions are provided to help the manager choose the best fit.


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The list of Performance Factors and definitions in several languages may be found here.
For any factors rated as Development, managers must be able to cite facts or events they have observed
that have led them to this rating, so that individuals are fully able to understand the reasons.
Identifying a factor as a development area allows the manager to focus on it in the training and
development plan. For each such factor, a specific plan is required to describe how the desired
improvement will be achieved.
Remember: when managers complete the performance appraisal, they are not judging personality; they
are simply concerned with job performance and professional behaviour.
Overall Performance in Present Position
The manager has to assign the performance of the individual to one of the four categories: Outstanding,
Exceeds Expectations, Meets Expectations, or Development Needed. There are no in between
categories. In assigning an overall rating, both what was achieved and how it was achieved are
important. The overall performance is rated considering both the results obtained compared with the
objectives set (70% contribution to overall rating) and the Performance Factor ratings (30% contribution to
overall rating). Someone who has achieved exceptional results on their objectives but shows an average
distribution on the Performance Factors should not be rated Outstanding. Likewise, someone who shows
Strength or Leadership on most of the Performance Factors but has not achieved exceptional results on
his or her objectives, should also not be rated Outstanding.
Below is a general guideline in assigning the Overall Performance rating, however managers should
exercise their judgment considering the full context of performance.
Overall Performance
Rating
Results vs. Objectives (70%) Performance Factors (30%)
Outstanding Exceptional results in the current job.
Completed objectives and achieved
next evolution beyond original
expectations. Significant
contributions to group and/or center.
There are no rigid criteria for how
the distribution of performance
factor ratings should look in order
to be considered Outstanding,
Exceeds Expectations, Meets
Expectations, or Development
Needed.
In general, Outstanding
employees will typically have
more factors rated as strength or
leadership than their peers. In
the same way, Development
Needed employees will have
more factors rated development
than their peers.
Exceeds Expectations Exceeded objectives in some
significant areas, including the most
challenging objectives.
Meets Expectations Has achieved majority of objectives,
may have needed additional support
on the more challenging objectives.
Development Needed Has not achieved the required results
overall, or needed an excessive level
of support at this grade level in order
to achieve objectives.

The rating of overall performance is not a rating of potential for future jobs; it is conce rned only with how
the individual performs on the current job. That being said, it is self-evident that Schlumberger would want
to promote people who show the prospect of performing well above normal expectancy. If the current job
performance is not yet at that level, the first objective is clearly for the manager and the individual to work
to make it so.


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Comments
In this space managers can:
expand on any of the performance factors and explain why they have reached that conclusion
(citing facts, events and results)
add any other comments about performance which are relevant to the appraisal
Individuals are encouraged to write in this space and on the blank page at the back of the form any
comments they have or ideas about their job or career concerns that they want to express.
Career Considerations
This section automatically shows an individuals career considerations as expressed via the
Schlumberger Career Center. These include Job Preferences, Personal, Family, Dual Career, and
Mobility considerations.
It is very important that individuals keep their career considerations up to date via the Career Center,
especially before the SLP-3 process is initiated.
Plan For Development
This is the most important part of the SLP-3.
The objectives of the development plan are:
to improve current job performance
to develop demonstrated significant strengths
to identify actions for improvement
Each area identified for development should be addressed in the plan for development.
This plan obviously needs the agreement of the individual and should be developed jointly during the
appraisal discussion. The plan should consider the individual's Career Considerations as well as any
development required to improve performance in the current position.
A plan needs to be very specific as to what is to be done, by when and how the results will be measured.
It is the managers responsibility, together with the mentor, to support and coach the individual in order to
achieve this development plan.
The manager will need to devise the most appropriate methods, considering for example:
projects and work assignments
reading
mentoring and coaching
courses - internal or external (be specific)
temporary transfers or short term assignments, etc
The development plan does not contain recommendations for future assignments or for promotion.
Managers must not promise what they cannot personally be sure will happen.
The most important vehicle for development is the job the individual is doing.
It is usually quite possible for the individuals responsibilities and objectives to be structured to focus on
those areas where development is needed.
The manager needs to define and to agree with the individual regarding the specific objectives for the
coming year. In considering these the manager must review:


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in what way the job has changed
extra responsibilities that the individual is ready to take on
whether the job is structured to allow full development of skills
whether enough authority and responsibility is being delegated
The objectives set should be such that to achieve them the individual follows the plan for development
that has been agreed.
After discussing the coming years priorities with the individual, it is a good idea to have them propose
objectives accordingly. Final objectives should then be discussed, modified and agreed with the Manager.
The Appraisal Meeting
This section is written from the standpoint of the manager as a guide to a successful meeting, i.e. one
which the individual leaves in a motivated and constructive frame of mind.
Before the meeting it is important that the manager and the individual agree a time and place that will
ensure that they will not be disturbed nor out of time. Individuals must have some advance notice so that
they can be properly prepared.
Plan in advance how you will conduct the meeting, what result you want to achieve and what kind of
questions are likely to be raised.
Starting the Meeting
Set individuals at ease, do not start directly with the appraisal. Tell them how you are going to conduct the
meeting. Always start with specific objectives.
During the Meeting
Listen to individuals and let them talk. Ask them what they think, and how they feel they have performed.
It is far more constructive for them to reach a conclusion by themselves rather than being told.
Keep control of yourself; follow your plan. Move smoothly from one subject to another.
Giving Feedback About Performance
Focus on performance on the job (results, facts, events, etc.), not personality. Explain specifically why
you rate each factor as you do.
Focus only on key points, things that can be changed in behaviour or attitude and things the individual
needs to be aware of. Do not go into irrelevant detail. Be ready to revise your judgment if it turns out that
you were wrong.
Keep a reasonable balance between positive and negative. Even someone who is performing below
standard will do some things well.
Concluding the Meeting
It is essential that the meeting finishes on a positive note.
The final focus should be on the future: the plan for development and the following years objectives as
well as what resources you are going to commit to help individuals.


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Conclusion
The process of performance appraisal is one of the most effective ways in which managers can
encourage the development of people reporting to them.
The purpose of the appraisal process is:
to improve current job performance
to develop strengths to prepare for future jobs
Although courses and seminars are useful if properly selected, the job is the primary development
vehicle. It is the responsibility of the manager to ensure that it is used to the maximum.
To achieve this, managers must be ready to coach their people by:
Teaching the basic skills
Giving feedback on how they are doing
Giving the benefit of their experience - mentoring
More than teaching, coaching is giving people the motivation and the confidence to learn by doing.
In Schlumberger the process of performance appraisal, together with the role of the mentor and the
manager as the coach, are essential elements in the strategy of building on our people - our most
important asset.