1. Your Talent Challenges Survey Responses from Thought Leaders Participants

2. Critical Human Capital Challenges  Providing leaders with skills to be successful  Engaging and retaining talented employees  Recruiting and selecting talented employees  Succession planning  Other

3. “Other” Critical Challenges  Achieving a truly performance-driven culture  Innovation and strategic thinking.  Career development as a means to engagement and retention  Engaging employees who are brought into the company via acquisition vs. recruited  Attracting key people when there is a shortage of them, e.g., mid-level medical professionals, jobs in the construction industry

4. Most Crucial Challenge  Succession planning34.5%  Providing leaders with skills to be successful24.1%  Recruiting and selecting talented employees20.7%  Engaging and retaining talented employees20.7%

5. Why So Challenging?  As a small company in Silicon Valley, it is challenging to get the best and the brightest leaders in technology  Lack of qualified candidates  We have 150 employees, with the majority (2/3) working in entry-level positions in finance. "Promotions” are rare

6. Why Challenging? (Cont.)  Currently we are replacing our CEO of 17 years. In some areas we are prepared for this succession and in others we are not. We need continual focus and planning in this area.  Our nine subsidiaries have not done a good job of putting in place a number two.  Changing leadership and lack of focus. Lack of accountability for performance.  As a result of long-term underinvestment in the fundamental skills required by managers and leaders, there is a systematic under-skilling in both cohorts at all levels.

7. Why Challenging? (Cont.  We are trying to change our culture to engage employees  We have been through 2 acquisitions in less than 2 years.

8. Biggest Barriers?  Finding the best and convincing them to come to our company over others in the bay area  Pay differences based on geography  How to keep very good employees motivated to stay in their jobs for more than a year or so  Gen Y: Want more personal attention and immediate action than what the business model can often afford (time, money, mentoring, work/life balance)

9. Biggest Barriers?  Management buy-in and support of the succession plan  Must create an environment where management will discuss hi- and low- potentials; reward and recognize hi potentials; help low potentials improve or move out  No succession process that the organization can use. Existing leaders are young, so it’s not a high-profile issue

10. Biggest Barriers?  Culture and skill sets  Lack of agreement on competencies required; lack of robust technology/metrics tools  Communication of a new strategic plan (employee alignment/engagement)  Building trust after an acquisition

11. What Might Your CEO Do?  Sell the benefits that a small company can provide a high- caliber technology leader  Build a culture where all employees are involved with the employee-referral program.  Endorse the culture of business units building their pipelines.

12. What Might Your CEO Do?  Encourage each level of management to address succession in their individual areas, and then come together as a team to roll up the plan.  Support decisions to help individuals leave the organization; provide stretch opportunities for high potentials

13. What Might Your CEO Do?  Skills assessments of leaders and put in place a formal succession-planning process.  Demonstrate by his actions that we really care about people and the business.  Communicate and implement action items to begin the process of building trust. Provide more than lip service.  Emphasize the importance of formal planning upfront and formal and informal execution.

14. Type of organization?  For-profit77.8%  Not-for-profit22.2%  Government 0.0%

15. Employees in your organization?  1-993.8%  100-49926.9%  500-99911.5%  1000-24997.7%  2500-499911.5%  5000-99993.8%  10,000-24,99915.4%  25,000 or more19.2%