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Leadership at McKesson: ILEAD

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1 Leadership at McKesson: ILEAD
BU Leader: introduce ILEAD and discuss its importance to the business. HR Leader: It’s not a surprise to anyone that leadership is crucial to our success as a business. McKesson and U.S. Pharma, in particular, continues to hit or exceed our plan, year over year, as the bar gets raised higher and higher. The secret to our success according to Mark is two things: focus and leadership. We know how to focus, execute and deliver. Leadership is not a new concept to us either. However, the industry, our customers and the whole healthcare system is changing the ground beneath us. So, to maintain our ground and advance, we saw the need to relook at how we view leadership and reshape it to meet the future needs of our customers. Generics Spring Fling FY15

2 HR Leader: ILEAD stands for: Inspire, Leverage, Execute, Advance and Develop. We will spend some time today introducing these attributes and discussing how it moves our business forward.

3 ILEAD is our common definition and shared commitment to leadership
ILEAD is our common definition and shared commitment to leadership. By embracing this commitment, we bring out the best in ourselves and position McKesson to continue to drive better health – for our company, our customers, and the patients we touch for years to come. -Healthcare is transforming in real time and the future will be increasingly ambiguous with change happening rapidly and at scale -McKesson must focus now to prepare leaders for the global future -Driving execution is still critical, but to win, McKesson leaders must also inspire, leverage, advance, and develop a deep, diverse bench of global talent HR Leader: ILEAD is the leadership response to our changing landscape. It is our shared definition, used across all businesses in McKesson, and commitment to great leadership. We believe that better leadership will lead to better business results for our company, customers and patients we touch for years to come. 9/19/2018

4 ICARE is WHO we are ILEAD is WHAT we do Better Health for our customers, our co-workers and our company is WHY it matters HR Leader: Finally, some/many of you were with McKesson when ICARE was introduced 10+ years ago. It became the foundation of who we are as a company. Now, our next evolutionary step is focusing on what we do as leaders. I ask that you personally embrace ILEAD like ICARE and bring it into your day-to-day to better yourself and those around you, and ultimately for McKesson and the customers we serve. BU Leader: Add his/her personal leadership story/messages here to personalize what leadership means to this function. Personal stories of how he/she developed a new skill is ideal. 9/19/2018

5 What ILEAD means to you New approach to our Leadership Competencies
Embrace ILEAD as how you will achieve your goals ILEAD will be built into our people processes Performance Management Documents Talent Review Process Individual Development Plan Hiring Practices (Competencies) Promotions (Competencies) Training HR Leader: So, we ask that you do take it personally. Focus your development around these leadership expectations built for the future. And set the same expectations for your teams if you lead people. 9/19/2018

6 Inspire Rally people around what matters and towards what can be achieved, and engage them to play their unique and vital roles. Leverage Harness the full range of our diversity, our people, and our capabilities, working together to deliver unrivaled performance and solutions. Execute Align our people, resources and systems around clear plans and make the necessary, and sometimes tough, decisions to reach our most aggressive goals. Advance Demonstrate the courage to take risks and face challenges head on, while having the resilience to move forward in difficult situations. Develop Actively invest in growing yourself and those around you to build the talent and capabilities we need for the future. HR Leader: ILEAD applies not only to leaders of people, but also individual contributors. We believe leadership happens at all levels. Like Mark says, leadership is not a level, but a set of actions. So, let’s take a closer look at ILEAD: Inspire As a leader, people look to us for direction to be successful. Having the right strategy and looking at problems in new ways give our people confidence in our future. How we bring people together, rally them around what matters and towards what can be achieved, lifts those around us to move us forward is how to inspire our people Leverage - We have complex problems in our industry, requiring looking at problems from different angles. We work with all kinds of people. And we need all kinds of perspectives and capabilities to achieve our aggressive goals. Leverage is about how we harness the power of each of our unique abilities. Execute - Execute is something we know a lot about. We know that being decisive in complex situations and seeing the right path to deliver results is what allows us to hit our goals Advance - Advance is our ability to keeping moving forward despite setbacks and the courage to take risks and tackle the tough issues Develop - Finally, great leadership isn’t born. It’s actively grown and developed through investing in ourselves and then in others 9/19/2018

7 5 Attributes, 10 Competencies
Inspire Set Strategy Foster Innovation Leverage Be Collaborative Be Inclusive Execute Be Decisive Deliver Results Advance Be Courageous Be Resilient Develop Grow Self Grow Others HR Leader: There is more detail behind each of the 5 ILEAD attributes. Each attribute is made up of 2 competencies to fully explain it’s extent. These competencies also break into specific behavioral examples. At 3 levels: Executive, Manager, and Individual contributor. While all these competencies are relevant whether you lead people or not, the specific examples may change depending on whether or not you manage people. These differences will be reflected in the detailed behaviors. You will be hearing more and more about these attributes and competencies in the next 12 months and on. Development programs, tools, and processes are being built and integrated with ILEAD. Our PGORC and other leaders are embracing these competencies, making them their own to invest in how to better our leadership to deliver better business results. 9/19/2018

8 McKesson Leadership Profile: Manager level
Inspire Set Strategy Sees the big picture; understands key business drivers; anticipates challenges; navigates ambiguity and complexity; keeps people focused on the right goals Foster Innovation Finds new and better ways to drive growth and profitability and builds the capability, structure, and culture needed for innovation, learning, and creativity Leverage Be Collaborative Takes an enterprise perspective on priorities; builds and aligns team; networks and works well with others; eliminates unhelpful boundaries Be Inclusive Builds a culture of trust and openness; supports, welcomes, treats with respect, and appreciates differences in identify, backgrounds, styles, and perspectives Execute Be Decisive Uses good judgment and is able to make effective decisions on complex issues despite short time lines and pressure Deliver Results Secures resources and builds the team, system, and culture needed to meet commitments and drives results; balances short and long term needs and goals; effectively leads change Advance Be Courageous Takes on tough issues and challenges; displays inner strength; never wavers from doing what is right Be Resilient Deals well with setbacks and disappointments; flexible and adaptable in response to changing circumstances Develop Grow Self Hungry for new information; self aware; creates an atmosphere of continuous improvement  Grow Others Effectively assess talent, identifying abilities and interests; provides candid feedback on strengths and needs; invested in the development of employees

9 *Externally normed item
Inspire – Set Strategy Individual Contributor Management/Senior Mgmt Executive Understands how his/her work contributes to broader organizational objectives.* Spots new trends, potential problems, and opportunities early.* Aligns his/her performance objectives with the organization’s strategic plan.* Skilled at communicating insights and understanding of issues or problems.* Takes the initiative to clarify the strategy when there is confusion.* + Has a perspective beyond the "day-to-day" work to take a longer-term, broader view of business decisions.* Creates business/functional strategies that contribute to sustainable long-term growth. Helps others understand the organization's vision and objectives so that they can translate them into challenging and meaningful goals.* + Uses insightful analysis of market, customer and competitor data to inform and adjust strategic direction Anticipates opportunities and pitfalls in potential paths, investments and strategies and sets course wisely. 9 9/19/2018 *Externally normed item

10 Inspire – Foster Innovation
Individual Contributor Management/Senior Mgmt Executive Is willing to try new approaches and ideas (e.g., avoids getting stuck in a “one right way” approach).* Sees opportunities where others see roadblocks.* Is creative and resourceful in overcoming or solving problems. Constructively challenges the standard way of doing things.* + Encourages bold alternative approaches and new ideas to keep ahead of the competition (e.g., does NOT get stuck in the one right way mind-set). Provides support and encouragement to others when they attempt to innovate – even when they fail. Takes calculated risks by committing significant resources and/or time to address new business opportunities. Constructively challenges the standard approaches and finds improved processes to get work done.* Is willing to become a champion for new projects or programs, presenting them so that others support them.* + Constructively challenges the standard approaches and sponsors/leads improved processes to get work done.* 10 9/19/2018 9/19/2018 *Externally normed item

11 Leverage – Be Collaborative
Individual Contributor Management/Senior Mgmt Executive Achieves objectives requiring a high level of cooperation from people in other parts of the organization. * Takes into account how his/her actions affect other groups or team members.* Actions clearly show that the needs of McKesson are placed above personal or local agendas. Is trusted by all members of the team.* + Shares information, networks and resources with others to build competence across the organization. + Works effectively across groups even when they have divergent goals and conflicting interests. 11 9/19/2018 9/19/2018 *Externally normed item

12 Leverage – Be Inclusive
Individual Contributor Management/Senior Mgmt Executive Actively builds a climate of trust, appreciation and openness to differences in thoughts, styles and backgrounds. Supports, welcomes and treats with respect people of different ethnicity, race, gender, age, cultural background, sexual orientation and gender identity or expression. Helps others understand the unwritten working rules of their team, location and McKesson. Actively solicits and seeks to understand alternative perspectives. + Cultivates a climate of trust, appreciation and openness to differences in thoughts, styles and backgrounds. Actively solicits, seeks to understand and incorporates alternative perspectives. + 12 9/19/2018 9/19/2018 *Externally normed item

13 *Externally normed item
Execute – Be Decisive Individual Contributor Management/Senior Mgmt Executive Is trusted by others to use good judgment when making decisions.* Is able to make effective decisions despite short time lines and pressure. Has demonstrated the ability to use his/her knowledge and experience to influence decisions. + Makes decisions carefully on complex, high risk issues. + Makes tough decisions and trade- offs to improve efficiency and create growth. 13 9/19/2018 9/19/2018 *Externally normed item

14 Execute – Deliver Results
Individual Contributor Management/Senior Mgmt Executive Follows through on objectives to ensure successful completion; i.e., does NOT get distracted before a project is completed.* Pushes him/herself to high levels of effort and performance.* Makes recommendations on how to solve problems.* Achieves agreed upon goals within the time allotted.* Takes the initiative to offer ideas and assistance to other people rather than waiting for others to ask for help.* + Keeps people focused on the highest priority goals and objectives.* Ensures that the team has organized its people, skills and resources to meet goals. When there is a need for change, she/he has the ability to provide leadership to make sure changes happens + Ensures that the organization has people, skills and resources to meet the strategic challenges of tomorrow. Energizes people to achieve exceptional results.* 14 9/19/2018 9/19/2018 *Externally normed item

15 Advance – Be Courageous
Individual Contributor Management/Senior Mgmt Executive Has the courage to try new approaches.* States his/her opinions honestly and straightforwardly, even when it is difficult or unpopular to do so. Accepts responsibility for own actions; doesn't blame others when things go wrong. + Has the courage to make the changes that will improve the organization.* Addresses performance problems quickly and frankly + Takes calculated risks and is willing to bear the consequences of unpopular decisions or outcomes. 15 9/19/2018 9/19/2018 *Externally normed item

16 *Externally normed item
Advance – Be Resilient Individual Contributor Management/Senior Mgmt Executive Sees failure as a temporary setback which can be recovered from quickly. Is able to make decisions and continually move forward in the face of constant change. Maintains a positive attitude and sense of opportunity during periods of turbulence. + + 16 9/19/2018 9/19/2018 *Externally normed item

17 *Externally normed item
Develop – Grow Self Individual Contributor Management/Senior Mgmt Executive Actively seeks feedback to improve him/herself.* Makes a real effort to constantly improve.* Willing to push outside his/her comfort zone in order to learn and grow. + Actively looks for opportunities to get feedback to improve.* Makes a real effort to improve based on feedback from others.* Creates an atmosphere of continual improvement in which self and others push to exceed the expected results.* + 17 9/19/2018 9/19/2018 *Externally normed item

18 *Externally normed item
Develop – Grow Others Individual Contributor Management/Senior Mgmt Executive Supports the development of others even when it means increased workload for him/herself.* Shares know-how freely to help others grow.* Gives honest feedback in a helpful way.* + Is truly concerned about developing others.* Is skillful at getting people to stretch for goals that go beyond what they originally thought possible.* Provides coaching and acts as a mentor to others.* Always on the lookout for talent to build a high performing team. + Holds others accountable for developing the talent of team members. Provides sponsorship for top talent by architecting experience and exposure opportunities. 18 9/19/2018 9/19/2018 *Externally normed item


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