1. Engagement and the talent-centered organization September 23, 2011 Mark R. Atkinson Talent Management & Organization Design

2. PwC Agenda: 30 minutes to get to “so what?!” Focus Pivotal roles Critical roles Holistic approaches Engagement begins before first touch Talent-centered organizations Employer brand, EVP & Employer of Choice And, finally, engagement—it’s not an initiative Traditional levers still work Pink, Ulrich et al Predictive analytics Q & A … along the way 2

3. PwC Focus 3

4. PwC Pivotal & critical roles—where are they? Pivotal roles Roles where a small performance variation can create a large change in business performance and outcomes are considered “pivotal” Two critical dimensions in defining & identifying pivotal roles: - A direct tie to delivering distinctive, strategy-based value - Significant leverage The often-missed point: Begin from the outside then, work your way back into your value chain to discover pivotal roles Critical roles Where is there a market or supply-based risk to core skill sets required in your value chain? - Performance doesn’t always transfer - Welders can be king for a day In short: - What are the critical roles in your value chain? - What are the demographics of your critical talent? - Does the market make many of those these days? How long does it take to build or access these talent pools? 4

5. PwC Acquisition priorities—targeting talent 5 own invest retain develop access market cost benefit analysis own retain develop access contract program manager Type of role StrategicBusiness Necessary Type of knowledge Generic Proprietary Generic/Business Necessary Call Center Operator: Needed to respond to customer inquiries, however the skill set required and job function performed are neither proprietary nor strategic. Proprietary/Strategic Green Tech Private Equity Analyst: Technical knowledge required in both finance and clean technology applied to critical deal flow roles focused on the integration of new technologies through acquisition. Proprietary/Business Necessary NASA Engineer: Unique NASA-developed processes and tools needed for routine program continuance roles. Strategic/Generic Project Manager: Having the right project manager with business-specific insight can determine the success of implementation. This is the combination of a generic skill set with strategic insight and experience.

6. PwC So, where are your employees? Level of engagement Likelihood of staying Profile Characteristics Champions Strong identification with company objectives High level of loyalty to the company High level of willingness give discretionary effort and self-initiative to also inspire and motivate colleagues Captives Rather critical, therefore difficult to lead Individualistic, interested only in their own professional advancement Ready to change jobs when opportunities become available (sometimes the employee feels these opportunities are not, therefore they feel stuck) Disengaged Dissatisfied Disconnected from the company More frustrated than dedicated Under-utilized resources of the company Tenants Very satisfied Straightforward, however, need to be directed Lack connection to company © 2010 PwC Saratoga 6

7. PwC Holistic approaches 7

8. PwC Holistic approaches—the talent cycle AttractRecruitScreenSelectDeployDevelopRetainSeparate 8 Too often, talent management & the levers that influence engagement are carved into disparate activities owned by different groups without the benefit of a unified vision, objectives & metrics …

9. PwC Employer of Choice (and other misconceptions …) Intentional Employer Brand Market demographics Targeted capabilities Employee point-of-view Employer of Choice shouldn’t be an award, it should be your brand Bound your target — be the Employer of Choice for that specific group or groups of employees and prospective employees who possess the capability to drive your value chain Design your brand to attract what you know you need from the prospective employee market Align your employee value proposition to deliver on your brand and retain those you want to retain to build and deliver on your business strategies 9 Organizations inherently attract some people and repel others. The question: is your brand attracting and repelling the right people?

10. PwC10 Proprietary & Strategic high touch high customization high investment own the relationships Generic & Strategic active brand visible own the relationships lowest touch customization practical Proprietary & Business Necessary high touch may outsource the relationships Generic & Business Necessary low- to no-touch outsource SLAs efficiency driven Core talent Core Talent The talent-driven organization

11. PwC Engagement is not an initiative 11

12. PwC Implications—engagement is not an initiative ‘Moving the engagement needle’ involves using old levers in new ways Missions that matter Employee value proposition Transparent technologies Job design Culture Leadership 12 Organizational Individual High performing organizations align elements of their organization with their talent strategy — that is, the daily experience of the employee fuels engagement and strategic improvisation Lack of alignment leads to Captives, Tenants, the Disengaged and retention issues

13. PwC What’s next? Innovation in the engagement space Using engagement to fuel strategic improvisation – We are on the brink of a major shift in organizational innovation In some sense, it’s being fueled by a connection with “old science” -Daniel Pink, David & Wendy Ulrich, et al -Autonomy, mastery, purpose and abundance New environments, like ROWEs New structures, like B-corporations Transparent technologies accelerating collaboration Renewed focus on connecting with values Strategic improvisation – the difference between classical music and improvisational jazz 13

14. PwC Thank you! Mark R. Atkinson mark.r.atkinson@us.pwc.com 469.939.0205 14