Inspiring Great Performance Every Day.

Opportunities to Get On.

ContentsA helpful guide for managers and colleagues

Our performance principlesOur Leadership Behaviours and Values

Everyday conversations

‘How’ you do your job is as important as ‘what’ you do

The performance cycle

Setting performance expectations

Helpful hints

Making the most of your objectives

The end of year performance review

Frequently asked questions

Inspiring Great Performance Every Day

A helpful guide for managers and colleaguesAt Tesco, we all share the same, single goal: to serve our shoppers

a little better every day. When we feel happy, valued and rewarded

we perform at our best, achieving great things together.

This guide is about Inspiring Great Performance Every Day and explains how

all of us can play our part, inspiring each other in all we do.

It explains how important it is that we all talk frequently about performance

and development as well as how and what we do, to help us be our best and

have fulfilling careers.

Our performance principlesInspiring Great Performance Every Day is how we help everyone to

understand their part, and recognise the contribution each of us makes.

Our principles describe what this means for all of us:

Our principles What they mean for our colleagues

• Managers lead performance and

development conversations with their

colleagues.

• Fewer reviews, simpler forms and

transparent performance ratings.

• Using the Leadership Behaviours and living

our Values every day.

• Clear job descriptions that detail role

purpose and skills needed.

• Three SMART objectives.

Frequent performance and development conversations that inspire

‘How’ you do your job is as important as ‘what’ you do

Inspiring everyone to play their part in serving shoppers a little better every day

Our valuesFor Tesco they are universal values, which

have helped guide us as we have grown in

new markets and new countries.

• No one tries harder for customers.

• We treat people how they want to be treated.

• Every little help makes a big difference.

Our leadership behaviours:Empathy Collaboration Resilience Responsiveness Innovation

Everyday conversationsAt Tesco, everyday performance and development conversations are key

to the way we work. They keep us engaged, support our growth and help

us to keep our objectives and career goals on track.

By having frequent, regular conversations we can build trust and support

– and achieve great results together.

Everyday conversations with your managerWhen it comes to happiness and performance at work, our relationship

with our manager plays a big part. A great manager will lead inspiring

everyday conversations, helping us achieve the best results, giving

recognition for a job well done and supporting our development and

career goals.

The diagram below shows the different types of performance and development conversations you and your manager might have:

‘Thank you for being brilliant’An opportunity to celebrate everyday

little helps as well as big successes.

Inspires great performance with

recognition and motivation.

‘

might help you’

‘I know some stuff that might help you’

On-the-job coaching, hints

and tips, sharing useful

experiences. Helping

someone to conquer a

challenge or solve a

problem.

‘How’s it going’ Short, friendly, relaxed

catch-ups on projects,

plans, careers and personal

development.

Regular, informal

conversations that keep us

connected and valued.

Honest feedback when things

aren’t going well, given

respectfully. We might not want

to confront it, but these

conversations can be some of

the most beneficial.

'Friendly support in times of need'

Empathy in times of trouble,

being there to help.

Trust, understanding and

support to make things

easier at work.

‘DifficultConversations’

‘How’ you do your job is as important as ‘what’ you doThe ‘how’We measure the ‘how’ through

observations and feedback on values-

led behaviours, as well as your delivery

against each of the Leadership

Behaviours and Values.

The way that you work with your

colleagues and serve our customers

plays a big part in making Tesco a great

place to work.

Embracing our Values and Leadership

Behaviours helps us all to achieve our

Core Purpose – they’re ‘how’ we go

about our work. Considering the effect

your behaviour has on others.

Becoming more self aware can help you

understand your strengths and areas

you want to develop.

The ‘what’What you deliver is measured against

your job description, objectives

and your overall contribution to our

business.

• Job description – the purpose of your

role, responsibilities and the skills you

need.

• Three SMART objectives, set at the

beginning of the year or when starting

a new role.

• Business contribution – to our Core

Purpose and The Big 6.

A manager’s role is to help colleagues review how they are performing both technically in their roleand against our Leadership Behaviours and Values.

a

a

Tesco Performance

Cycle

End ofyear performancereview

Set 3 SMARTobjectives

The performance cycleOur performance cycle is designed to make sure everyone at Tesco has

the guidance they need and the recognition they deserve.

At the beginning of the performance year, or the start of a new role, every colleague

agrees three SMART objectives with their manager. Throughout the year, you and

your manager will have regular conversations about performance and development,

including progress on these objectives.

Everyday conversations are the most important thing, but at the end of the year you

will capture your performance rating in a simple form, which helps to record a brief

summary of your performance and development conversations.

Setting performance expectationsEveryone at Tesco should feel they have the guidance they need and the

recognition they deserve.

At the beginning of the year, or a new role, all colleagues agree their job description

and three, clear objectives with their manager. This helps to make sure we all know

what is expected of us in our work and how our individual actions help Tesco to

deliver its Core Purpose and The Big 6.

Throughout the year, colleagues will have regular performance and

development conversations with their managers.

These conversations will help give you a clear idea about your progress, performance and development needs and will make sure you know what to expect when it comes to your end of year performance review, when you and your manager reflect on your overall contribution and performance.

Great objectives are SMART

Simple - They say exactly what results you want to achieve.

Measurable - Clearly state how the results will be measured.

Achievable - Can they be achieved in time, and alongside your day job?

Relevant - Are the objectives a priority for your role?

Timely - What is the date by when the objectives need to be achieved?

Colleagues should work with their manager to make sure they have SMART objectives and up to date job descriptions.

Helpful hints:Get the most from your objectives:

3 Your manager will agree your

objectives with you at the start of the

performance year, or at the start of a

new role.

3 Work with your managerto make sure

they reflect our Core Purpose and

support our values.

3 Use simple language and easy

to measure targets.

3 Have shared objectives with

your colleagues.

3 Review and update your progress

against your objectives with your

manager throughout the year.

Get the most from your job description:

3 Agree your job description with

your manager when you set

your objectives.

3 Your job description is a key

document, setting out what you do

every day. Check that it’s accurate

and the accountabilities are relevant.

3 Make sure the purpose is stillwhat’s

expected of your role.

3 Look at other job descriptions in your

function to help you understand what

to focus on and how your role fits in.

Making the most of your objectivesThese tips can help you to set your objectives effectively and help you to achieve them:•Use defined, measurable values as targets, such as percentages,

monetary values or dates. It will help you to be clear about what you’re

aiming for.

•To stay on track, make reviewing your objectives part of your

regular performance and development conversations throughout

the year.

•Throughout the year and as part of your everyday conversations you

will receive feedback on your performance against your objectives,

resulting in a rating for each at the end of the year.

The end of year performance review

Deciding the performance rating

Because the ‘how’ and the ‘what’ are

equally important, an overall rating will

be applied. For example, if you were to

deliver a ‘Miss’ on either the ‘what’ or

the ‘how’ for an objective, you would be

awarded an overall rating of ‘Missed’.

Likewise, if you have ‘Exceeded’on the ‘what’ and ‘Met’ on the ‘how’, you

will receive an overall rating of ‘Met’.

Supporting your performance

Everyday conversations with your

manager throughout the year mean that

as soon as you start to ‘Miss’, we can

support you to get back on track as

soon as possible.

Should your performance start to

‘Miss’, we’ll do all we can to support

you back to ‘Met’ with our supporting

your performance process. You don’t

have to wait until the end of year

performance review.

The end of year performance review is your

time to discuss your achievements over the

year with your manager, as well as reflect

on areas for development.

Your performance is measured by rating

both ‘what’ has been achieved and ‘how’

it’s been delivered.

The performance model shows how your

overall performance rating is decided.

This useful tool also helps to make sure

performance ratings are awarded fairly and

consistently across the whole organisation.

The end of year performance review

Exceeded Colleagues consistently ‘exceeding’ in the results they achieve.

A role model for the Leadership Behaviours and Values.

Met Colleagues consistently achieving good results. Demonstrates

the right Leadership Behaviours and Values.

Missed Colleagues consistently underachieving. Not displaying the

right Leadership Behaviours and Values.

At Tesco we consider arating of ‘Met’ as greatperformance,to be celebrated!

Tips on how to prepare

Your manager will• Have a clear view on what’s been

delivered and how it’s been

achieved.

• Spend time reflecting on your

conversations throughout the year

and the key messages they want to

share. There should be no surprises

at the end of the year.

• Attend a performance calibration

session, which is designed to ensure

that ratings are made fairly and

consistently across Tesco.

You will• Reflect on your performance and

development conversations throughout

the year- think about what’s been great,

what opportunities you’ve acted on, what

you’ve learned.

• Think about the feedback you’ve received

from colleagues and stakeholders

throughout the year and how you’ve acted

upon it.

• It may be helpful to bring supporting data,

evidence or examples.

Please check out our tips below to help you prepare for your end of year

performance review.

What to expect• Your manager will share feedback with you,

about what you’ve accomplished and how

you’ve achieved it.

• You’ll celebrate achievements and reflect

on areas for development.

• You’ll summarise the discussions you’ve

had throughout the year about your career

development and reflect on next steps for

the coming year.

• You’ll have an opportunity to share your

thoughts and feedback with your manager.

• Capture any next steps for the year ahead.

• You’ll discuss your performance against

your objectives and your overall

performance rating: Exceeded, Met or

Missed.

Frequently asked questions

What happens if I’m on maternity leave?

How is performance reviewed if you are long term absent or ill?

I’m new to Tesco, how will my performance be rated?

Can I appeal my rating?

If you will be on maternity leave at the end of the performance year,

you and your manager should have a conversation to discuss your

performance ratings before your leave begins.

If you’ve been on maternity leave for the entire business year, or there

are other circumstances which mean you and your manager are unable

to assess your performance, you will receive an overall performance

rating of ‘met’.

Maternity

If you’re absent at the time of the end of year performance meetings,

your manager will assess your performance and whether you were on

track to achieve your objectives before the absence began.

If you’ve recently returned following a long period of absence, you and

your manager will have regular conversations with you to discuss your

performance, your development needs and if you are on track to achieve

your objectives.

Long term absence or illness

If you’ve joined Tesco less than three months before the end of the

performance year, you will receive a rating of “New to Tesco” for your

overall performance and against any objectives set so far.

It’s still a good opportunity to have a conversation with your manager and

to set expectations for the new performance year, so do feel free to use all

the materials available to get the most from your conversation.

New to Tesco

Regular performance and development conversations with your manager

throughout the year mean you shouldn’t be surprised by any of your

ratings at the end of the year. However, should you disagree with your

rating or an objective achievement, you should discuss this with your

manager in the first instance.

If you’re still dissatisfied with the outcome after this conversation, you

may wish to speak to your managers’ manager. There is no formal

process for ratings disagreements, but if you are in this situation please

feel free to seek advice from your People Partner.

Can a colleague appeal their rating?