1 LDP Performance Management Handling a Persistent Under-Performer in a Culture of Inclusion

2  How many would admit to graduating at least one participant who was not ready or not the level quality you would want?  How many of you have a special performance management process or policy for your program (versus using the standard employee process)?  How many of you have, at some point, avoided or been less aggressive with a performance issue because an associate was in a protected class? Quick Polls

3 1. Validation: Many of us are experiencing the same challenges 2. Empowerment: Being more aggressive with performance management where needed. 3. Ideas & Best Practices: Learning from one another on approaches that have and have not worked so we can determine what will work best for us. Our Goals for Today

4  Disability Insurance Company – protecting paychecks in the event of an illness or accident  10,000 Employees in offices across the US, UK and Ireland  279 on the Fortune 500 rankings  1/3 of all Fortune 500 companies use Unum benefits  33 million people and their families are protected by our products Unum (Yoo-Num)

5  An enterprise-wide, multi-year rotational leadership development program designed to accelerate broad business knowledge across core areas of our business (i.e. cross-functionally trained leadership pipeline)  Each rotation may be months depending on the role, complexity, and business need  Graduate in Director-level roles  Ramped up to 8-12 hires each year, total of 36 currently in program, 20 graduates ●3 associates since inception have been ‘managed out’, 80% retention in program, 100% retention post program (so far!!)  Decentralized budget Professional Development Program (PDP)

6 “A rotational program is only as strong as your weakest associate.” - Unum Sr. Leader Managing Underperformance – Why is it so critical?

7  Our program is growing – law of large numbers.  Even the best and most rigorous selection processes only get it right 75% of the time, we are going to make bad hires.  Chosen associates are seen as extremely high performers, and if they are struggling, the first question is ‘what’s wrong with the program’ or ‘why aren’t they getting what they need to succeed’? Challenges

8  Overall program brand is depreciated  Managers stop raising their hands to take on talent  Unready talent is unleashed on the business  Graduates get MAD Implications if we don’t get this right…

9 High Performance Regularly exceeds expectations Lacks skills for success at higher level Sets standard of excellence in role Model leadership candidate Low Performance Little-to-no aptitude Weak, unsatisfactory performance Above-average aptitude Inconsistent performance Low PotentialHigh Potential Performance versus Potential

10 1.More leaders needed a more accurate view of the talent. 2.Expectations had not been set with associates that they could actually be removed from the program. 3.We needed to be more aggressive, or at least be able to move more quickly, than the standard employee process. 4.We cannot allow ourselves to be handcuffed by our decentralized budget. 5.It was important to have a regular and up-to-date calibration of the associates and determining whether they were on track for graduation. What we realized

11 1.Clearer definition around performance expectations and how it differs from a standard Unum employee. 2.Creation of a PDP Council – Leadership Team with regular talent reviews and the authority to make calls on talent (Thank you Tammy Bohen!) 3.Assignment of an Employee Relations Consultant to work exclusively with our program 4.Session at New Hire Orientation setting expectations around performance and what happens if you don’t ‘cut it’ (Thank you Matt Lebeck!) 5.Introduce a 9-Box Grid for assessing readiness Our Response – so far…

12 PDP 9-Box Grid Felicity April Samantha Dawn Juliette Brad Jason Ryan ShellyDillon Demonstrating Leadership Driving Business Results

13 PDP: Performance Expectations Overall Performance Rating Delivering Results Deliver strong work performance on all pertinent assignments Lead/participate on initiatives and special projects as opportunities arise requiring in- depth research and analysis Operational Leadership Provide feedback regarding process enhancements and continuous improvement on both rotation and role itself Present to organization leadership demonstrating work proficiency and impact on team Professional Development Develop thorough understanding of the role and interdependencies of the role/org on other areas of the company Build a positive network and reputation in organization with ability to return at leadership level upon program completion Contribute to Success of the PDP Be an engaged member of the PDP through such initiatives as: Recruitment, program continuous improvement, program-oriented projects, New Hire Orientation, etc. PDP Goals: Program Performance Business Goals: Rotation Performance