1. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 1 Issue date: 2009-10-02, Security Class: Public How to handle Competence Questions in a Labour Market crisis? A Company Perspective. Geoff Glover, Vice President HR, Talent Management

2. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 2 Issue date: 2009-10-02, Security Class: Public Crisis What Crisis?

3. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 3 Issue date: 2009-10-02, Security Class: Public The Global Automotive Industry – The Good, The Bad and The Ugly. The Good. The automotive industry forms the backbone of the EU economy: More than 12 million families depend on the sector for employment; Association des Constructeurs Européens dAutomobiles or European Automobile Manufacturers Association (ACEA) members yearly invest 20 billion in R&D, or 4% of turnover; Net auto exports are worth 42.8 billion; Vehicle taxes deliver 381 billion to governments – 3.5% of EU gross domestic product.

4. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 4 Issue date: 2009-10-02, Security Class: Public The Bad. Approximately 20 million units surplus per year. Equivalent to 33% of installed capacity Equivalent to the whole of the European capacity All makes Every country The Global Automotive Industry – The Good, The Bad and The Ugly. Sweden France Belgium UK Germany Italy Russia Spain Czech Republic Hungary Vulnerable capacity is in North America – Western Europe

5. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 5 Issue date: 2009-10-02, Security Class: Public The Ugly. The Global Automotive Industry – The Good, The Bad and The Ugly.

6. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 6 Issue date: 2009-10-02, Security Class: Public Customers, Customers, Customers!! Brazil 3% of world population 198 m people 2,5 of world GDP

7. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 7 Issue date: 2009-10-02, Security Class: Public The Cost of Doing Business.

8. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 8 Issue date: 2009-10-02, Security Class: Public Asias Entry onto the Global Stage source: Fortune

9. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 9 Issue date: 2009-10-02, Security Class: Public Chinas Entry onto the Global Stage

10. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 10 Issue date: 2009-10-02, Security Class: Public For European Companies to compete successfully in the global economy, they will need to compete on the basis of: Premium products High quality Innovation Lean organisations - high productivity to offset cost disadvantage Sustainable development solutions Rapid development Superior service dimension European Competitiveness

11. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 11 Issue date: 2009-10-02, Security Class: Public Competence is the key Competence Competence is: Knowledge Experience Skills Behaviours

12. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 12 Issue date: 2009-10-02, Security Class: Public Competence is the Key High Competence Delivers Exponentially Higher Productivity McDonaldsManufacturing operatorComputer-game development

13. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 13 Issue date: 2009-10-02, Security Class: Public The Knowledge Age Agrarian Revolution - Industrial Revolution – Post Industrial or Information Society

14. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 14 Issue date: 2009-10-02, Security Class: Public Demographics in Europe threatening the supply of Competence Source: Eurostat

15. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 15 Issue date: 2009-10-02, Security Class: Public Attitudes in Europe threatening the Competence supply Källa: ROSE

16. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 16 Issue date: 2009-10-02, Security Class: Public Attitudes in Europe threatening the Competence Supply Källa: ERT

17. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 17 Issue date: 2009-10-02, Security Class: Public Attitudes in Europe threatening the Competence Supply Källa: Skolverket

18. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 18 Issue date: 2009-10-02, Security Class: Public Attitudes in Europe threatening the Competence Supply Year Number

19. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 19 Issue date: 2009-10-02, Security Class: Public The Education gap is Closing. source: OECD, Deutsche Bank Research

20. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 20 Issue date: 2009-10-02, Security Class: Public VCCs Competence Needs Employability Core subjects Diversity / Equal opportunities Generic competences Leadership Capability Competitiveness Business Relationships management Modern Production-system/ Global Business Acumen Value Stream Analysis Strategic Capability Lean Thinking 6 Sigma Flexibility Change Management Hybrid techniques Service solutions Electrification Environment Safety CAD Qualifiers EfficiencyChange Volvos Learning Agenda

21. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 21 Issue date: 2009-10-02, Security Class: Public Our Strategic Challenge More for less In a more for less environment, more learning development needs but less resources available to support (due to intense global competition). How are we tackling within Volvo: People not just sent on training on adhoc basis Competence Management Framework to clearly define what competences are needed to meet our business needs going forward. Strategic competence tool to identify those competences which are key to our future. Generic employee and leadership competences identified to support desired workculture. Target training interventions, based upon value add prioritisation Primary responsibility shifts from company to individual. Company moves from provider to enabler.

22. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 22 Issue date: 2009-10-02, Security Class: Public Our Strategic Challenge More for less How are we tackling within Volvo: Experiential learning. Relationships learning (mentorship and coaching). Internal teacher network. Knowledge capture/organisational learning Knowledge communities (bloggs) Suppliers – less, but more engaged, deeper partnerships with them. Leverage technology for economies of scale, global reach, repeatable quality and to support learning when and how individuals prefer.

23. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 23 Issue date: 2009-10-02, Security Class: Public Knowledge Skills Behaviours Experience Competence is a combined set of Competence is a combined set of Network Study circle Present own work Course /education Shadowing Instructor /supporter New /renewed role Welcoming trainees Project Arrange conference /meeting Reports, summaries Representing VCC Individual coaching Analytical work Receive study tours Being a trainer Mentorship Leisure activities Single point lessons Analysis of own work Speaking partner Lectures, tradeshows etc Lecture for managers manager Continuing education Personal reflections eLearning Information Feedback Learning in day-to-day activities

24. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 24 Issue date: 2009-10-02, Security Class: Public Delivering Business Success through People Affordable Effective Building Employee Commitment Leading and Managing Change Growing Employee Capability Talent Management Business Structure

25. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 25 Issue date: 2009-10-02, Security Class: Public Business Objectives And Competencies PROGRESS Analysis Plan Engage Develop The Wheel of Talent Analyse, track and review talent status Competence Management Employer of choice and recruiting Deploy talent Employee Engagement Perfomance Management Retention strategies Learning and Development Career planning Reward and Recognition Succession planning

26. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 26 Issue date: 2009-10-02, Security Class: Public Need to look at more for less in a broader perspective. Issues we identify with doing business in Europe are as large a problem for the European Union countries as for us. Reason: To solve their competence supply problem companies can decide to offshore more and more of their activities where the customer growth/available skills are Result: economic decline in Europe. We are prepared to work in partnership with others to solve this issue.

27. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 27 Issue date: 2009-10-02, Security Class: Public HOW are we prepared to move ahead ? In partnership with others for the good of multiple stakeholders- Volvo, PES, our suppliers, other companies, universities, young people. To organise learning activity through Government Technical Specialist Colleges, like GTG, to make it available as a standard learning set to other companies, students at the Specialist College, or to other colleges- shared with them by the Specialist College. To work with others to develop blended learning solutions such as e- learning, so that learning solutions can have reach throughout Sweden/Europe and be sustainable. To work with Government agencies to establish accreditation standards around occupational learning, which could form the basis of a national or European standard, for example, in Lean. Together with others create the infrastructure for lifelong learning.

28. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 28 Issue date: 2009-10-02, Security Class: Public Investment efficiency – Lifelong Learning Government Employer $$$ Inefficient spend/investments Overlap/Underlap School / Univ. Employees Unemployed Citizens

29. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 29 Issue date: 2009-10-02, Security Class: Public The Learning Hub Concept Learning providers Employer A Employer B Employer C Industry Sector Organisations Public Employment Service REGIONAL DEVELOPMENT AGENCIES Volvo Broker Academia

30. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 30 Issue date: 2009-10-02, Security Class: Public Learning Providers GovernmentEmployers + Global best practice + Employment context + Combine skills with experience + Real life examples - Investment constrained Lifelong learning + Pedagogic approach + Invest in core business - Regional not global Social partners + National standards + Link to academic curriculum + Link to economic strategy - Investment constrained, but ! + Seed corn funding The Partnership Model - Ambassadors for learning - Labour market context - Funding capability - Cross sector perspective

31. How to handle Competence Questions in a Labour Market crisis?, VCC Human Resources, Geoff Glover, gglover1 Page 31 Issue date: 2009-10-02, Security Class: Public CRISIS Wei + Gee Danger + Opportunity