1. Human Resource Planning Talent Building Model for Change www.switchhr.com : : 215-353-0658 511 Station Square Blvd. Lansdale, PA 19446

2. Seven Tenets to Talent Building 1. Talent Building is NOT Recruiting 2. Inventory the Talent Base (and repeat) 3. High-Performance Leadership 4. Open the Talent Pipeline 5. Focus on Top Notch Performance 6. Strategic Communications Infrastructure 7. Knowledge Sharing as B.J.Q.

3. High Potential (Superstar) These are your best and brightest ready to take on more now. Challenge, develop and pay well. Give stretch projects with rewards. Concentrate here! 10% Growth Potential These workers are very good and have potential to move up with support and training. Keepers. 10% Strategic Retain Sub group of Solid / Meets. Technically skilled, unique know-how you cant afford to lose. Important to keep in current role. 10% 50% Solid / Meets Doing what you pay them to do. May be eligible for a lateral. This is NOT a bad category to be in, but scrutinize bottom of oranges. Too New Less than three months in current assignment or unable to yet see what they can contribute. On learning curve. Scrutinize! 20% Over or Out Not working out in current role and you would likely not rehire them based on what you now know. Set a date to change role or dismiss.

4. HRP in Action (salary increase example) Merit Raises TypicalOptimal RATING% EE% Incr.% EE% Incr. Exceptional20%4%10%8% Exceeds20%3%10%7% Meets40%2.5%60%2% Just OK15%2%10%0% Not Meets5%0%10%0% Wtd. Avg2.7% Copy write 2010: Switch HR – All Rights Reserved Reprint, distribute, republish only with permission.

5. 1.) Talent Building is not Recruiting Recruiting ProcessResult Resume dart board Personality profiles Intelligence tests Interview Committee Background check Behavioral Interviewing 30-minute chat Retained search 1 Great Hire! 3 Does OK 1 Miss

6. 2.) Inventory Talent Base Forced Distribution vs. Comparing Self-to-Self Start with CEO direct reports and their reports List on spread sheet by overall performance Slot into HRP categories (color code) Defend 1 st inventory to CEO (one exec at time) Challenge high ball tendencies CEO offers Invest in greats (big raises!) Offers proactive replaces (hire proactively to fire eventually)

7. 3.) High Performance Leadership Executive Think Must Change! Exceptional must be rare exception (Super Stars) If more than 50% Exceed, it is too easy to work for your company – change what great looks like Too many strategic retains is BAD (held hostage) 20% of New Hires should NOT make it to 90 days Scrutinize bottom of forced distribution (Orange Minus) Purple: Would you rehire from what you now know?

8. 4.) Open Talent Pipeline Strategic Turnover – Quick over Speed to hire (cycle time as key metric) Keep talent pipeline open Proactive changes based on inventory Quick Over keeps pipeline hot Hire in proactively to fire out eventually Steering turnover vs. incrementally reducing it

9. HRP Staffing Model for True Talent Building 1 st Quarter2 nd Quarter3 rd Quarter4 th QuarterCumulative DepartmentInOutNetInOutNe t InOutNetInOutNetInOutNet Customer Service 2020-4 1-22-205-8-3 R & D100 1010002-20 Accounting0 0 1 00001-3-2 Sales and marketing 0000 0001011 0 Manufacture3-211 0 1-25-7-2 HR000000000000000 Info Tech000101000000101 Exec Admin0001010 0001 0 Office Support 2020 1010003 2 ALL8-443-10-74-54-4019-23-4 Copy write 2010: Switch HR – All Rights Reserved Reprint, distribute, republish only with permission.

10. 5.) Focus on the Top Notch Invest Most HR Efforts in Top 20% Differentiate rewards to contribution (*new equity) Top notch like money for effort and results Over-the-top merit rewards (per chart) Project incentives and spot bonuses Exposure to top brass and special assignments Public praise, power and control Ignore lowest performing peers

11. 6.) Strategic Communications Apply Sales Marketing to EE Communications Leverage in-house marketing expertise Web 2.0 Intranets (transparency and EE input) Function-specific Blogs as knowledge repository Digital signage and kiosks for plant personnel Performance mgmt as communication medium Strategic retains as mentors, authors, trainers Training Committee as University Dean

12. 7.) Knowledge Share as B.J.Q. Giving Knowledge More Vital than Getting It Knowledge-share as universal job requirement Online Company University / Core Curriculums Function-specific WBT and tests Knowledge sharing / info framing projects Announcements and policy mini-courses Knowledge-compliance and reporting requirements Incentives for documented knowledge sharing

13. Seven Tenets to Talent Building Blog Articles Via Links Below to www.switchhr.com www.switchhr.com 1. Talent Building is Not Recruiting Talent Building is Not Recruiting 2. Inventory Your Talent Base Inventory Your Talent Base 3. High Performance Leadership. High Performance Leadership 4. The Talent Pipeline The Talent Pipeline 5. Focus on Top Notch Performance 6. Strategic Communications Infrastructure 7. Knowledge Sharing Requirement Copy write 2010: Switch HR – All Rights Reserved Reprint, distribute, republish only with permission.