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Goals & Objectives Setting

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 2 2015/2016 Performance Management and Total Rewards It is anticipated by end Q3, 2015, we will introduce our new 2015/2016 Performance Management and Total Rewards program including: o Philosophy, Principles & Process o Materials and Tools o Education Program o Communication Process The purpose of our performance management process is to establish and align annual goals, encourage continuous feedback and drive performance differentiation. Each of us deserves feedback on our performance and support in our continuous growth and development. 2015/2016 Performance Management

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 3 Training Objectives Understand the Organizations approach to Goals and Objectives Setting Clarify the difference between Goals, Objectives and Metrics Provide examples for effectively completing your Goals and Objectives template Share next steps and action items for employees

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 4 2015 Goals and Objectives Setting Key Points Each Executive Leadership Team (ELT) member will work with their management team to create 2015 goals/objectives and to ensure all employees create goals/objectives. As an employee, you are responsible for: Creating threefive meaningful goals/objectives, balancing performance and one developmental goal/objective. Defining how each goal will be measured for achievement. Documenting goals/objectives by May 31, 2015 using the recommended template. If you already have goals/objectives documented in another format (i.e. Workday), you do not need to re-enter them into the recommended template. Gaining mutual agreement (with your manager) on your goals/objectives. Maintaining an electronic copy of your goals/objectives until our new performance program is introduced, at which time, goals/objectives will be transferred into the new system. Note: Goal weighting and weighting percentages are at the discretion of each ELT member during this interim period.

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 5 Why Set Goals? Value for Employees Need to understand areas of responsibility and priorities Want to know how their efforts contribute to the bigger picture Provide direction for development Value for Organization Ensure that business units are headed in the same direction and that team/individual efforts are aligned to support the business needs Focus peoples efforts and attention on critical priorities

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 6 Goals/Objectives/Metrics Defined: The What you will achieve Goals are key outcomes to be achieved in order to fulfill your purpose or mission. Goals establish long-term direction. Objectives are specific, measurable steps toward the achievement of the broader goal. Metrics are what you measure to demonstrate you have met your objectives and achieved your goals.

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 7 Goals versus Objectives GoalsObjectives Support achievement of larger purpose or strategy Support achievement of goals Longer term for the year or even beyond set annually Shorter term set each check-in period (at least quarterly recommended) No more than 3-5 recommended for yearScoped to be achievable within check- in period Aligned within and across functions/departments and thus may not always change as they cascade Employees objectives align with employees goals and thus are individually-specific Communication of goals and goal-setting at team meetings recommended to ensure alignment Set, reviewed and discussed during one- on-one check-Ins between employee and manager Should be clear and measurable enough to know if they have been achieved, but may be broader and less concrete than objectives Meet SMART* criteria define specific deliverables to be attained within set period *SMART = Specific, Measurable, Attainable, Relevant & Time Bound

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 8 Effective Goal-Setting Define the vital few, overarching goals that must be achieved to fulfill the purpose of the company, department or individual Set annually, though some goals may have a longer time horizon May be aspirational in a way that guides and motivates greater effort (e.g. become #1) May not be perfectly SMART, but will be clear enough so everyone will know if we are moving in the right direction Should be communicated and aligned at all levels within the organization and across functions contributing to the goal through cascading goal alignment * 3-5 recommended

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 9 Example: Cascading Goal Alignment (Manufacturing) Note: Sometimes goals may be the same as the level above; often they will be modified to reflect the contribution of department/team/individual to the larger goal Company Reduce operating costs by 7%. Business Unit Reduce scrap rate by 15%. Dept/Team Identify and eliminate top 3 causes of scrap. Individual Conduct Root Cause Analysis.

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 10 Example: Cascading Goal Alignment (R&D) Note: Sometimes goals may be the same as the level above; often they will be modified to reflect the contribution of department/team/individual to the larger goal. Company Move two products into Stage V over the next two years. Business Unit Meet or exceed Tier #1 project milestones. Dept/ Team Complete CMC regulatory requirements for Project X. Individual Plan and implement Project X process formulation activity.

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 11 Examples of Development Goals Primary Purpose = Development of individualbut organization/business also benefits Knowledge/Skills Critical to Achieving Business Goals usually set individually, but teams could all agree on same development goal and thus gain more traction; e.g. strengthen leadership skills to improve retention of top talent. Competency Critical to Achieving Business Goals Improve ability to collaborate with colleagues in other locations. Use process learned in recent Project Management program to run Project ABC

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 12 Performance Management Template 2015: EXAMPLE Employee Name: Raj Avari Title: Senior Product Manager Date: 1-May-15 Manager Name: Sarah O'dell Title: Marketing Director Signed: 1. Goal: (What) Develop and implement business plan to increase market share of "X product" by 10% by Q4, 2015 Objectives Metric: % increase in market share each quarter 2015 Goals & Objectives Excel Template Setting Goals Use template to create each goal and associated metric(s)

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 13 Effective Objective-Setting S pecific M easureable A ttainable R elevant T ime Bound SMART Objective - example Partner with Project Management to ensure that the XYZ Team launch meeting is conducted by June 1. SMART Objective - example Partner with Project Management to ensure that the XYZ Team launch meeting is conducted by June 1.

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 14 Examples of Business Objectives Interpret market research to make strategic and tactical brand decisions by end of Q2 Goal (Marketing): Develop and implement business plan to increase market share of "X product" by 10% by Q4, 2015 Advance brand strategy through promotional education programs, patient outreach, sales training, and professional marketing on a quarterly basis Q2 Q3 Q4 Collaborate with cross- functional partners internally and externally to develop promotional and training materials by mid- year Sales meeting

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 15 Setting Development Objectives: How do people actually develop? Education Exposure Experience Courses, books, professional associations, journals Coaching, mentoring, feedback, networking, benchmarking, exposure to new businesses/functions/people New responsibilities, stretch assignments, task forces or project teams 10% 20% 70%

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 16 Examples of Development Objectives Goal: Improve ability to collaborate across locations. Q2 Q3 Q4 Monthly, have a virtual coffee with colleague in another location; actively listen to better understand their perspective. Complete an eLearning course on collaboration and put at least one tip/tool into action. Work with my manager to identify an assignment or project where I can get on- the-job practice to development my collaboration skills.

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 17 Performance Management template 2015: EXAMPLE Employee Name: Raj Avari Title: Senior Product Manager Date: 1-May-15 Manager Name: Sarah O'dell Title: Marketing Director Signed: 1. Goal: (What)Develop and implement business plan to increase market share of "X product" by 10% by Q4, 2015 Objectives Interpret market research to make strategic and tactical brand decisions by end of Q2 Collaborate with cross-functional partners internally and externally to develop promotional and training materials Advance brand strategy through promotional education programs, patient outreach, sales training, and professional marketing on a quarterly basis Metric: % increase in market share each quarter 2015 Goals & Objectives Excel Template Setting Objectives Use template to create objectives under each goal

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 18 What You Need to Do Now Create threefive meaningful goals, balancing performance and one developmental goal. Define how each goal will be measured for achievement. Document 2015 goals/objectives by May 31, 2015 using the recommended template*.Gain mutual agreement (with your manager) on your 2015 goals/objectives. Maintain an electronic copy of your goals/objectives until our new performance program is introduced, at which time, goals/objectives will be transferred into the new system. *If you already have goals/objectives documented in another format (i.e. Workday), you do not need to re-enter them into the recommended template.

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Confidential & Proprietary For internal use and integration planning purposes only. Do not distribute. 19 Directions to the PMP Website From the Our Winning Way website, click on the Actavis PMP link: You can also access the site by copying and pasting the following link: www.actavispmp.com