1. Client Presentation

2. 2 About Novations Human performance firm headquartered in Boston Founded in 1986 Owned by Mitec Inc. Work with over 50% of the Fortune 500 Large international presence through US based company subsidiaries Expanding to non US-based organisations globally through alliance partners

3. 3 The Four Stages Research Contribution to the organisation Average Perceived Value 20% 30% 40% 50% 60% 70% 80% 90% Salary Curve Average Performance Employment in Years 1 to 56 to1011 to 1516 to 2021 to 2526 to 3031 to 3536 to 40

4. 4 High Performance at the Four Stages of Contribution Stage 1 Basic Competence Willingly Accepts Supervision Meets Commitments Dependant Upon Others Stage 2 Technical Expertise Works well with others Builds Reputation Independent Stage 3 Expertise Broadens Coaches Networks Inter-dependant Stage 4 Represents Company Sponsors Key People Influences Key Decision Shapes Direction

5. 5 The Four Stages Foundation A descriptive model of what differentiates high and low performers over time Focus on both individual and organisational needs and expectations Platform for building high performing talent management systems All employees (not just a select few) are capable of high performance and meaningful contributions Describes essential functions people perform in successful organisations

6. 6 Performance Management The Four Stages provides a positive way of framing contribution expectations for a position/role in a way other than good vs. bad behaviour For example, articulating the specific behaviours required for a role using Stages language Performance management is often a way to add teeth to the application of the Four Stages framework within an organisation See also Rewards & Recognition

7. 7 Measurement An organisations workforce can be profiled by using the Four Stages, providing a visual map of the organsation in a unique way (how people are contributing), vs what contribution is needed (and from whom) to be successful in the marketplace The organisations strengths and weaknesses will be apparent, and the outcome can be correlated with business results For example, how many Stage 2s are required to run a successful project or new business venture? See also Succession Planning

8. 8 Succession Planning The Four Stages provides a way of thinking about future roles and candidate readiness in terms of contribution and general capability The Stages also forces discussion on the general systems in the organisation that support or hinder employee readiness for new roles For example, rather than wondering if a mid-level functional manager can move into the MD (Stage 4) role of his/her function, the focus is more on those who demonstrate Stage 4 capability regardless of their specific functional background, who can quickly learn technical aspects as needed See also Measurement

9. 9 Career Planning/Retention The Four Stages provides a road map for career planning, helping the individual understand how they can contribute differently and continue to grow within the organisation If the Stages framework is supported by other systems (such as rewards), it can be a powerful retention tool through recognising those that add more value, who also have more experience and knowledge to share. Retention of key resources is a likely result.

10. 10 Selection/Job Assignment The Four Stages provides an excellent backdrop for thinking about competencies and skills required for current and future positions The Stages can provide a framework for defining the skills and behaviours needed in a role, and matching candidate qualifications to the need. One can interview for past demonstration of certain Stage behaviours, providing richer data for decision making in hiring from the outside or internal candidates See also Performance Management

11. 11 Leadership Development The Four Stages allows an organisation to think much more broadly about leadership development, and move away from a narrow focus on the limited opportunities shown on the organisation chart An organisation can develop a whole host of leaders who have demonstrated Stage 3 behaviours This process sets the people and organisation up for success prior to being moved into a formal leadership capacity; rather than hoping it works out See also Succession Planning

12. 12 Reward/Recognition The Four Stages framework can inform the Reward and Recognition systems within an organisation Often the concept of a 3 rd alternative (non-manager Stage 3s), the others being formal management positions and technical experts (Stage 2/Super-2s), provides an avenue of compensation and recognition not often exploited by the organisation Using the Stages can provide options for thinking about how people are rewarded (often non- monetarily) in meaningful ways (such as unique stretch job assignments, for example) See also Performance Management

13. 13 Training The Four Stages provides a framework for thinking about an organisations training offerings Offerings can be mapped or categorised by Stage, and potential gaps identified in any given curriculum Quite often, a rich curriculum develops as a result, since development and contribution are defined more broadly and the focus is not just on technical skills See also Leadership Development

14. 14 What Does Novations Do? Provide innovative and research-based solutions to help organisations develop and retain talent

15. 15 Novations Solution Components Talent Orientation Talent Development® Talent Coaching Contributing Through Others

16. 16 TalentDevelopment Program Targets all employees Key Concepts: The empirical basis of contribution High performance over time (The Four Stages) Career orientations 360 Feedback Responsibility for development Development plans and discussions Supporting process, tools, and skills

17. 17 Talent Development Today To the individual employee: The replacement of job security and the key to career opportunity and job satisfaction To the organisation: The source of engagement and competitive advantage

18. 18 Case Studies World-class manufacturer Caremark Global Research and Development Pharmaceutical Manufacturer Professional Services Firm

19. World Class Manufacturer

20. 20 Client Facts Process Control (industrial fluids measurement) manufacturing division 1,400+ employees Locations in US, Mexico, The Netherlands, Singapore, China, Japan

21. 21 Situation Business was experiencing a 15% compounded annual growth rate (CAGR) Leadership talent pool was weak (could not produce qualified leaders fast enough internally) Retarding new product development, global manufacturing and service capability

22. 22 Actions Incorporated Novations 360 tools & Stages framework Identified competencies that aligned with Divisions principles Held individuals accountable for own development planning and performance feedback Offered TalentDevelopment workshops to all employees Instituted regular senior leadership people reviews Reviewed progress of individual development plans and discussions of key employees Also reworked recruiting/selection process based on above concepts

23. Caremark

24. 24 Client Facts Pharmaceutical services company Prescription drug administration Claims processing Network of pharmacies HQ in Nashville, Tennessee 11,000 employees $9 billion revenue

25. 25 Situation High business growth rate Major concern about labour demographics on national level and internally 10% of Caremarks leaders will retire by 2010 Major focus on leadership development High potential employee development Key experts (technical resources)

26. 26 Actions Implemented TalentDevelopment Implemented TalentDevelopment & TalentCoaching with Leaders Included 360 surveys

27. 27 Results at Caremark Results since implementation (1.5 years): 3% leadership turnover reduction (3 pt. reduction) 1,400 leaders total in organisation Increased internal talent career progression by 26% 100% participation by business units 98% Agreed/Strongly Agreed that this initiative was a critical leadership development action for our company.

28. World Class Manufacturer Global Research and Development

29. 29 Global Research Global Technical R&D organisation One centralised organisation serves all of clients businesses Sites in U.S., China, India and Germany Approximately 2,500 employees

30. 30 Clients Global Research Principles for People Development Emphasise the role of the individual as the primary owner of his/her own career development Help individuals recognise that development can occur within a current job, not just through vertical or lateral movement Provide development opportunities for all employees

31. 31 Introduction to Novations came through a review of an article on Four Stages in technical journal Senior-level meeting was used to explore implications of Four Stages for Global Research Business need to retain & reward high-performing technologists Result: Agreement that Novations Four Stages research provided an ideal framework for considering the development of technical careers Clients Global Research People Development Solution

32. 32 Solution Specifics Used Four Stages framework to adapt Global Researchs competencies to help clarify how contribution expectations change over time for technical professionals Implemented TalentDevelopment Self-assessment Conducted by internal certified trainers Customised Development Guide providing development suggestions for both leaders and individual contributors around Clients competencies and Stages

33. 33 Solution Results Process and tools used globally Internal Client trainers (25) and champions identified, trained, and supported Approximately 2,000 employees have been trained to-date Feedback indicates this is one of the best implementations Client has done Four Stages thinking is embedded in Global Researchs culture Additional partnership opportunities identified

34. 34 Solution Results-Continued Client has restructured technologist roles based on Four Stages framework new chief technologist position (Stage 4 individual contributor position) created as result of using the Four Stages framework Its made all the difference in my career as a technologist Feedback from managers is that the Four Stages is an incredibly useful tool in managing and developing people

35. Pharmaceutical Manufacturer

36. 36 Situation The client came to Novations in late 2000 looking for help in implementing an employee development process. Target audience was employees in the Information Technology function within the Global Research and Development. Business issue was retention amid reorganisation and acquisitions. Additional business objectives of building a competency model to bring development, reward, and succession processes into alignment.

37. 37 Information Technology Function Northeast U.S. Headquarters 4 major locations (3 U.S., 1 UK) 800+ employees Support global R&D arm of Pharmaceutical organisation

38. 38 Actions To date, the implementation includes: Staged competency model TalentDevelopment program for all employees TalentCoaching for all managers and above Performance management process tied to competencies organisation specific development guide used in the TD process Internal certified trainers Stages linked to R&Ds career ladders framework 10 internal trainers certified in TD

39. 39 Results - Qualitative We used the Talent Development framework to help a colleague find her place in the new role that took advantage of her interests and talents to fill an organisational need. All of this led to us defining a role and a way of carrying out her role that she claims has put her into her "best-ever career best " "Jane, a technologist, was looking for an opportunity to progress her career while creating value for he organisation.. She did this by partnering with the Quality Management organisation to define a protocol on how team can work more effectively with Quality Management. This has been the best workshop/training Ive ever been through

40. 40 Evaluation Key Points Initial interest in Novations came from a colleague attending a public TalentDevelopment program Work started in a single function (IT) with a strong supporter of people development Certified employees at several sites to teach the programs Started with the competency model and built supporting systems from there Novations now working with another part of R&D organisation based on work with IT IT organisation is now doing additional TD sessions and certifications to refresh/update process for employees; has access to Novations concepts on internal website

41. Professional Services Firm

42. 42 Client Facts Professional services firm with practices in the following areas: Auditing Tax HR consulting IT systems consulting 2,000 associates Partnership firm ($ revenue N/A)

43. 43 Situation The client came to Novations in early 2001 looking for help to implement a new enterprise wide people system. Employee survey results showed that the firms employees were dissatisfied with the development opportunities provided by the organisation.

44. 44 Obstacles Over the past few years, the organisation had implemented several different systems aimed at automating the performance management and development process. Skepticism was high for any people initiative organisational focus was on billable time at the expense of staff development

45. 45 Actions Novations became a trusted business partner to the firm and continues to be active in the development of their people initiatives. To date, the implementation includes: Staged competency model TalentDevelopment program for all employees TalentCoaching for all managers and above 360s used as a developmental tool in the TD process behavioural interviewing process Performance management process tied to competencies organisation specific development guide used in the TD process All curriculum mapped to competencies and stages 12 internal certified TD & TC trainers

46. 46 Results - Quantitative Pre-2001 Career development activities were sporadic % of development plans completed and active Staff 27% Executive 8% % of performance evaluations Staff 55% Executive 9% Since Novations intervention 900 employees have participated in TD and/or TC % of development plans completed and active Staff 69% Executive 45% % of performance evaluations Staff 58% Executive 20%

47. 47 Results - Qualitative Lines up our expectations with individuals interests to get them to focus on what creates value for us It is imperative that we connect the dots and see the economic value of staff development People are getting value from the coaching sessions - they like the one-on-one interaction with the coach The concepts of staging competencies and showing people how to create value is great

48. 48 Evaluation Things that worked well for this client Started in a single business unit with a strong supporter of people development Certified line managers to teach the programs Started with the competency model and built supporting systems from there

49. 49 Levels of Training Measurement* 5 -Return on Investment (ROI) (5%) 4 -Business Results (10%) 3 -Application (behaviour) (30%) 2 –Learning (50-90%) 1 –Training Reaction (100%) *Jack J. Phillips-HRD Trends Worldwide 1999 (% indicates what portion of programs should be measured at that level) Increasing value Increasing complexity