We are committed to building a long-term legacy of trust and value in BP. We want to create a company that demonstrates safe, responsible and sustained performance in a way that balances the needs of today with those of tomorrow.n

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Creating a long-term legacy

of trust and value in BP

January 2011

Dear Colleague,

We are committed to building a long-term legacy of trust and value in BP. We want to create a company that demonstrates safe, responsible and sustained performance in a way that balances the needs of today with those of tomorrow.

To enable us to achieve this, one of the steps is to adopt a standardised and consistent approach to individual performance management in BP. Completion of every step of the performance management cycle (including use of this new form) is mandatory*. If you do not complete the cycle you will not be eligible for your 2011 bonus programme (payable in 2012).

In using this form, there are three areas I would like you to focus on. First, you are required to outline the core accountabilities associated with your job. Second, in 2011, you are required to set priorities under the following (details are outlined in each section of the form):

• My contribution to safety, compliance and risk management.
• How I will do my job.
• What I will deliver for the near and long term.

Finally, you are also expected to outline the development actions that will help you to deliver your job and your priorities for 2011. These actions should also support on-going delivery of your Personal Development Plan (PDP).

Please ensure that you discuss delivery against your priorities and the progress you have made on your development actions throughout the year and especially at year end.

This approach is one step of our journey as we reset performance in BP. I shall keep you informed of the progress we make and how this will affect individual performance for 2012.

With thanks,

Bob Dudley

Group Chief Executive

*        Employees not subject to individual performance management will continue to be exempt.

In addition, in areas where the implementation is subject to consultation, the appropriate process will be followed with the relevant bodies.

2011 performance management cycle

Section 1: My job

Section 2: My priorities for 2011

Section 3: My development

Complete Sections 1-3 by 31 March

Performance planning

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Section 5: Overall rating

Complete Section 5

By 29 February

Performance        Performance

Outcomes

        Management

        Cycle        Performance

discussions

during the year

Section 4: Feedback

on my priorities

Complete Section 4

mid-year feedback

by 31 July

Year-end feedback

of performance

Section 4: Feedback

on my priorities

Complete Section 4 year-end

feedback by 31 December

Please read these instructions first

Use of this form is mandatory*. You must ensure every section is completed. Most will be completed by you, and some by your Line Manager. You must follow the 2011 performance management cycle as described on page 3. If you do not complete this cycle you will not be eligible for your 2011 bonus programme.

Section 1: Personal details and my job

•        Fill in your personal details.

•        Work with your Line Manager to identify the key accountabilities of your job.

Section 2: Priorities for 2011

Work with your Line Manager to agree your 2011 priorities. In particular:

• You must ensure that your priorities are aligned with those of your Line Manager and wider Team/Business.
• You must have at least two priorities in each category and no more than 12 overall.
• All priorities should include an action, end result, measure and date.
• You should also speak to other individuals to get input on setting your priorities, for example, matrix/dotted-line reporting relationships and other key stakeholders.

Section 3: My development

• You are expected to discuss and agree with your Line Manager the development actions that will enable you to meet the responsibilities of your job and achieve your 2011 priorities.
• The actions you outline should support your longer-term career development goals described in your Personal Development Plan (PDP).

Section 4: Feedback on my priorities

•        At mid year and at year end, you and your Line Manager will be expected to provide feedback against your priorities in each category.

• All employees and Line Managers are expected to complete Section 4 for both mid-year and year-end performance discussions.
• You should also seek feedback from those individuals who had input into setting your priorities.

Section 5: Overall rating

•        Your Line Manager will be expected to provide overall feedback on progress against both your priorities and your development actions at year end.

• Delivery of your priorities in the category of ‘My contribution to safety, compliance and risk management’ will weigh heavily in the year-end assessment of your overall performance.

Your rating is not solely based on achieving your priorities. It is also based on the broader responsibilities of your job and your performance relative to your peers. Feedback on your development will not impact your overall rating.

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