Hi. My name is Ian Davis, and I am the President & CEO of Davis & Company: Human Capital Strategists. As a global human capital strategy firm with a presence in the United States, Canada, and the European Union, our principal offices are based in the United States – Specifically, Pittsburgh, Pennsylvania. Please join us we bring you “The Workforce: A Strategic View”

The foundation of our consulting practice is that success is the necessary result of soundly developed and flawlessly executed strategy. This graphic, which will be the basis for our discussion, will take us from strategy to success. It will help you understand how we approach the most critical of business functions – Talent Management. By the end of this presentation, we hope you will understand how we might be able to help you flawlessly execute your business strategy. Ready ?

<click> The 2008 AFC Championship – Baltimore Ravens against the Pittsburgh Steelers Young quarterback Joe Flacco lines up behind the ball. Let’s watch what happens… <click>

That’s right Troy Polamalu does it again, the most prolific interceptor in the NFL. He just seems to be everywhere. If you follow American football, you know the rest of the story… the Steelers went on to be the Six Time Super Bowl Champions – a feat unequaled in the sport. The Pittsburgh Steelers have a business strategy. It answers the question – as all business strategies must – what must I do to accomplish my organization’s mission – in this case, Win The Super Bowl. Yes, I know. The Steelers are a professional sports team… but make no mistake about it – they’re a business… and they have a strategy. And their business strategy is this: <click> Defense Wins Championships. The Steelers don’t ignore the rest of the team – after all they have a great offense, special teams, front office, coaching staff, and especially the fans, but they have a clearly articulated business strategy… and it focuses on the defense.

So if the first arrow in our graphic is the Business Strategy, what follows? You’ve probably guessed it… <click> it’s the Workforce Strategy… and it answers the question: “What must my workforce look like in order to flawlessly execute the business strategy?” Please remember, we’re looking at this from a strategic vantage point. At this point we’re not going to concern ourselves with whether we’ve properly prepared, say, the maintenance crew, with the training to ensure that the concession stands at Heinz Field are working properly… that comes later… much later. Remember that question, “What must my workforce look like in order to flawlessly execute the business strategy?”… <click> The answer – The Workforce Strategy – is made up of three components: <click> The Core Workforce Mindset or Culture – Ever since I can remember back in the 1970’s when the famous Steel Curtain was lowered, the Steelers have been known for their defense. Pittsburgh is simply a tough, defensive team. <click> Strategic Competencies – Those things that make a defensive team great – on the line: size, strength, toughness; in the secondary: agility, athleticism, the ability to read the offense, fearlessness. <click> Strategic Leadership Behaviors – Pittsburgh’s head coaching legacy is, by and large, a who’s who of defensive football talent. From Chuck Noll, originally the Defensive Coordinator for the Baltimore Colts under Don Shula, to Kansas City’s Defensive Coordinator, Bill Cowher, to Minnesota Vikings’ Defensive Coordinator and Pittsburgh’s current head coach, Mike Tomlin. And Mike Tomlin, recognizing Pittsburgh’s business strategy, kept Defensive Coordinator Dick LeBeau on board, the architect of Pittsburgh’s famous “zone blitz”, while saying goodbye to offensive coordinator Ken Wisenhunt (who ironically moved to the Super Bowl losing Arizona Cardinals). At Davis & Company: Human Capital Strategists, we can help you develop a workforce strategy that will help flawlessly execute your business strategy.

Next is the Talent represented by the Talent Wheel… Talent is the engine of all organizational success. The Talent Wheel is made up of five talent processes and is encompassed by the overarching process of leadership. <click> These five talent processes are: <click> Talent Planning <click> Talent Acquisition <click> Talent Deployment <click> Talent Development <click> Talent Rewards

What are thought leaders saying about the Planning element? <click> Cappelli has found that the majority of employers just don’t plan. <click> IBM finds that we are stuck in the present. <click> The Conference Board suggests that integration and alignment is a major problem, <click> and the BCG says there’s much more to be done to connect customer demand to workforce planning. <click>

So, as the adage goes, “we must plan our work, then work our plan” <click> The workforce plan must be directly connected and aligned to the business strategy. Can you imagine your entire workforce working diligent on something that is not in concert with your strategy? Now THAT is the definition of insanity! <click> A good workforce plan is strategic… it emphasizes those few “wealth-creating” roles in your firm. <click> Finally, it must recognize that equality is a concept best left to politicians and preschoolers… It has no place in the business world. Two quick side notes on the various types of work, and on differentiation… <click>

Fundamentally, there are three kinds of work in any organization: <click> Strategic work – which is integral to who you are and what you do. You must own your strategic work. <click> Support work – necessary and supportive, but not something you must own. <click> And Surplus Work – it is surplus to your reason for being. This you should find a way to eliminate.

And - a brief note on three different kinds of workforce strategies. <click> <click> Cost Centered Strategies often have a dramatic (and favorable) immediate impact on the firm’s financial performance. The problem is, you can’t continue to save (or worse, cut) your way to prosperity. This kind of organizational anorexia is long-term suicide. <click> The much vaunted Best Practices Strategies are better. The longer term value is higher than the cost centered strategy (although the incubation period is longer). Problem here is that with the marketplace of ideas being so efficient with the arrival of the internet, everyone has access to so-called “best practices”. They are “best” only for a short time, and provide no long term sustainable competitive advantage. So what we need is a workforce strategy that is uniquely connected to our business, our strategy, and our marketplace. <click> This “Differentiated Workforce Strategy” is just that, a workforce strategy that is driven from our specific business strategy. While it takes longer to generate returns, its long term value is that it makes our workforce the single greatest sustainable competitive advantage. Let me repeat that. Our workforce becomes our single greatest sustainable competitive advantage.

Okay, back from our quick, but important, digression. Let’s dig into the files of Davis & Company: Human Capital Strategists <click> Respironics, a very successful billion dollar medical device company, has enjoyed a compound annual growth rate of 25% since its IPO in 1988. For all of that time, until 2005, Respironics was a technology company. But in 2005, then Chief Strategy Officer, John Miclot, realized that a fundamental shift was required in the business strategy from a company focused on <click> technical innovation to a company focused on <click> the needs of the market – whatever they may be. To focus on one’s own technology but ignore the needs of the market would be suicide. So Miclot, supported by his HR team, made the change. It was a fundamental shift from an <click> engineering organization to a <click> market-based organization. From the customers <click> being the end users of the products to <click> the customers including intermediate business owners who were selling the product themselves. This created a shift from <click> an internally-focused organization to <click> externally-focused organization. As you can imagine, the human capital implications of such a change were staggering. The team at Davis & Company: Human Capital Strategists were there to help the team at Respironics think through the strategic human capital implications of such a sea change in their business strategy.

How can we help? <click> Davis & Company: Human Capital Strategists can help you create that differentiated workforce strategy, <click> develop an entirely new workforce plan, <click> or realign your existing plan, as necessary. To learn more, just e-mail us at info@workforcecustomization.com or visit us at www.workforcecustomization.com

Okay, remember our graphic? <click> Let’s move on from the Workforce Planning to Talent Acquisition. Much has be said and written about Talent Acquisition… From Jim Collins’ “Getting the Right People on the Bus, to high tech internet data mining strategies, the world of Talent Acquisition has never been more important.

Thought leaders have weighed in on this subject too. <click> McKinsey found that most executives don’t think they can attract top talent. <click> International recruiting guru Lou Adler recognizes that a manager’s success is in the team, and <click> Beverly Kaye, author of “Love 'em or Lose 'em: Getting Good People to Stay”, reminds employers that they have a six month probationary period, too. <click>

Let’s go back into our files… <click> The year is 1999 The Company <click> is Rockwell Collins, multi-billiion dollar defense and commercial avionics manufacturer. The problem ? <click> Overhaul a badly broken talent acquisition system to attract world class technical talent to Cedar Rapids, Iowa, in the middle of the biggest tech boom in history. Let’s let the numbers speak for themselves. <click>

From October, 1999, through June, 2000, Rockwell Collins Talent Acquisition function was completely off the radar screen until the number of open requisitions for new talent began to rise and the time it took to find them almost doubled. <click> From June of 2000 until the fall of 2001, the team at Davis & Company: Human Capital Strategists was called in to assess the situation, develop, and then implement, a top-to-bottom recovery plan designed to regain control of one of the most critical business functions at Rockwell Collins – Talent Acquisition. <click> Watch as the number of open requisitions skyrockets from about 300 to 600 in only a year. Here, a plan is developed, and a freeze is put on all but mission-critical requisitions. <click> During the next two months requisitions immediately flatten out as the redesigned talent acquisition system is put in place. As new resources, systems, and technology are applied, open requisitions <click> plummet from over 600 to less than 100, low enough that the upgraded team can handle the load and deliver outstanding candidates. At the same time, <click> the age of the requisitions grows steadily, indicating that the organization is either not canceling old and unnecessary requisitions, or the organization is not attending to critical requisitions. Eventually, as the new plan is implemented, the root cause is identified <click> and aged requisitions are either filled or cancelled, and result in a stunningly low age of only seventeen days. A common statistic to measure the efficiency of the Talent Acquisition function is External Time To Start <click> (the amount of time between the opening of the requisition and the arrival of the new employee from outside the firm) <click> Notice that the Time To Start goes up and down throughout the timeline, but reaches a peak in April <click> decreases thereafter, and, for the final three months, drops well below the goal of 71 days – the lowest point since statistics were measured. Overall, this is an <click> excellent story showing that a disciplined approach to process improvement when experts are brought in to diagnose and treat a complex problem. <click>

So how can we help in the world of Talent Acquisition? <click> Beyond the excellent process improvement results at Rockwell Collins, we can help you ensure your Talent Acquisition is aligned with your Business Strategy <click> We can help you develop an employment brand that will help the right people in the labor market knock on your door… and the wrong people just keep on walking <click> But we can also help you analyze and redesign your Talent Acquisition process to get the right people on the bus with the greatest speed and the least cost. Okay, back to the Talent Wheel… <click>

Process Number Three in the Talent Wheel is Talent Deployment. This is closely aligned with Jim Collins’ notion of getting the right people on the bus. Deployment answers questions like: What seat? How do we change seats? Are all seats of equal value? Who sits at the front? How about the back? How do we get them from one seat to another? <click>

<click> Deployment means engagement, and engagement means effort, performance and financial return. <click> Data shows that a 10% increase in engagement results in an 8% increase in discretionary effort which leads to a 2% improvement in performance.

There is excellent work that has been done and continues to be done in the world of Deployment. <click> In the world of employee engagement, Gallup’s now-famous 12 questions helps determine of you have an engaged workforce. <click> In the world of union vulnerability, Gettman’s Union Vulnerability Index has been the standard for 30 years. <click> The COP model reminds us that organizations are most effective when employees operate at the nexus of their strengths, passions & the organization’s needs, and <click> Buckingham and Clifton’s work reminds us that building a great team should focus on strengths and that an over-emphasis on “fixing” people is not in the organization’s long-term interest.

At Davis & Company: Human Capital Strategists, <click> <click> we can help you deploy your workforce to align properly with your business strategy. This is one of our great passions. <click> ensuring that you utilize all of your employees skills and gifts, <click> with a minimum of risk from harmful outside interference, and so that <click> your employees are fully engaged in their passions and your mission.

Next stop? <click> Employee Development One of the most critical – and complex – parts of the human capital equation, employee development needs all of our attention. <click>

<click> So why do employees leave? Let’s watch

Apparently, the writers of Jerry McGuire think it’s money… And for some people, it is. But for the majority of people, the research tells us something else. The top three reasons employees really leave are <click> their relationship with their boss, <click>the nature of the work, <click> and, you guessed it, employee development <click>

Some other telling statements about Employee Development: <click> It certainly is cheaper to develop your stars than to hire them. <click> This is such an excellent statement by Larry Bossidy & Ram Charan, I’d like to read it to you in its entirety: … read it… So with this insightful comment, Bossidy & Charan provide a great segue into our next slide… <click>

Employee Development is a large and complex subject, combining many process steps like: <click> role analysis – what work needs to be done? <click> employee skills assessment – what are employees capable of doing? <click> employee performance assessment – how well can they do it? <click> gap analysis – where are the skill and performance gaps? <click> root cause analysis – why do these gaps exist? <click> problem solving – what should we do to close the gaps… is employee development really the answer? <click> solution design – if development is the answer, what type of development is needed? <click> new, stretch assignments? – research at the Center for Creative Leadership suggests that this represents 70% of how we develop <click> candid feedback, on the job training, mentoring / coaching? – typically 20% of the how we develop, or <click> formal coursework and training? – only about 10% of how we develop. And while Davis & Company: Human Capital Strategists takes a disciplined and rigorous approach to the assessment and execution of employee development, we are, at heart, a human capital STRATEGY firm. <click>

Thus, we encourage clients to ensure that they are spending sufficient time on the strategic, wealth-creating roles and competencies… those that are at the heart of the firm’s strategy. An example from our files will illustrate well… Let’s go back to Respironics… <click> remember our transition from a product- and technology-centric firm to a market-centric firm? Well, in order to ensure that such a transition is supported by a corresponding shift in talent, we embarked on a project to evaluate and bolster the strategic marketing elements of the firm. Data here has been hidden or modified for confidentiality reasons. In early 2007, <click> we assessed the current state of marketing knowledge <click> & attitudes, <click> benchmarked those against world class “market-centric” firms, <click> did a traditional gap analysis and sliced it several ways, and embarked on a program to address the gaps by various means. <click> We even identified blind spots where we overestimated our competency despite its comparative weakness. <click> All this to say, of course, that, while this detailed analysis is critical to successful development… we believe that, from a human capital strategy point of view, it is critical to “Do the Right Thing” first, and then “Do the Thing Right”.

To fully address the huge subject of Employee Development is too much for this presentation, so please allow me simply to summarize our approach to employee development. There are five different strategies to employee development, and, at different times and for different purposes, leaders should use all five to develop their teams. <click> They are growth within the context of your current job using existing or new challenges. If you’re not doing this already, you’re missing the biggest (and easiest) development opportunity. <click> Grow by assuming a new job opportunity. This is an excellent method, often characterized by the expression “trial by fire”, but is not always readily available especially in an organization that is change-resistant. <click> Grow by responding positively to ongoing feedback. Speaking of feedback, let’s digress just for a minute to make a point about this element of leadership that is usually poorly done by leaders everywhere… <click>

Using the framework of Good, Better, Best, <click> let’s consider three types of employee feedback. <click> Good is the Annual Performance Appraisal. It’s regular, it’s documented and it focuses on both organizational goals and personal development. <click> Better is a system of periodic reviews that reinforces good behavior and redirects poor behavior on a more regular basis, say, quarterly. It too is regular, usually documented and gives the employee even more opportunity to correct behaviors before they become ingrained habits. <click> But best is daily feedback in the hall, by the water cooler, in the employee’s workspace, anywhere that is suitable for the message. Now, this feedback is not haphazard, it’s just informal. Simple comments like, “Hey, Sue, word on the street is that your presentation to Finance was great yesterday… atta go!”, or more specifically, “Hey Sue, I spoke to Joe in Finance today. He gave me some feedback on your presentation. He said that you talked to the audience, not the slides, and he also said that your tone was much more relaxed, not so stiff. It sounds to me like the work you’re putting into your presentation skills is paying off. Well done.” This kind of feedback, but positive and constructive criticism is important to give and receive every day. Okay, back to Employee Development. <click>

After the development strategy of Ongoing Feedback <click> Is to grow with the assistance of an individual coach or mentor. This is generally easier than people assume. Coaches external to the organization have significant benefits which include formal training in modern coaching methodologies, objectivity, and the ability to gather data from multiple sources confidentially. They are often used for senior executives, hi potentials, or employees occupying strategic roles. Internal coaches are less expensive and typically suitable for broad use across the organization. If internal coaches are being considered, some training of the prospective coaches should be considered mandatory. Finally, <click> Formalized training. This is often thought of as the best answer to “fix” employee problems. In fact, the root cause of the majority of organizational problems is not skill deficiencies. It actually runs the gamut of things like, communication shortcomings, absence of or lack of adherence to established processes, lack of clear expectations, lack of tools, lack of support, etc. And where training occurs, it often doesn’t stick, because it was designed around the instructor not the employees or the organization.

Finally on the Talent Wheel is <click> Talent Rewards, that process by which employees are compensated, both economically and psychologically, for their work. Again, our focus at Davis & Company: Human Capital Strategists is to take a strategic view of rewards – one characterized by a willingness to differentiate, sometimes dramatically, between those performers that are integral to the flawless execution of the business strategy, and those that aren’t. Some principles we adhere to are as follows: <click> Ensure your strategic roles are occupied by “A” players <click> Peg fixed compensation for strategic roles at the midpoint of the market, or at most, slightly above. <click> Peg variable compensation for these roles above the market midpoint and occasionally well-above, and <click> Tie the incentive payout directly to the achievement of the workforce strategy. For the most senior roles, tie it also to the achievement of the business strategy. <click> Regarding benefits, your basic benefits should be competitive with the market <click> Niche benefits should reflect the makeup of your workforce, if any unique demographics present themselves – for example, a particularly young, or technical, or older workforce would derive greater value for the cost from benefits that connect well to that demographic. <click> Share the risk of benefits with employees – they will have a greater sense of their value and will help you control costs <click> Provide some unique benefit that connects to your business culture. Are you in the cardiac care business? Perhaps company-matching donations to the Heart Association or tickets to their annual Black Tie Gala for selected employees. <click> And lastly, don’t forget all those low-cost high value talent reward opportunities that present themselves every day. Like a public “Atta Go” to a successful employee. <click>

And lest we forget perhaps the most important element in the Talent Wheel, <click> we come to Leadership. John Maxwell has taught us that everything rises and falls on Leadership. <click>

In The 21 Irrefutable Laws of Leadership, John tells us the story of McDonald’s. <click> Founded by Dick & Maurice McDonald, the early McDonalds restaurant was a smash hit. They received as many as 300 calls and letters every month. It was then they decided to market the idea of McDonalds franchises so they could make money without personally opening new restaurant. <click> It was a dismal failure… they were great managers, but not good leaders (apparently they weren’t grammarians either). But Ray Kroc, whom they hired was. Allow me to read a short paragraph from John’s bestseller… <click> “As soon as he visited the store, he had a vision for its potential, In his mind he could see the restaurant going nationwide in hundreds of markets. Kroc immediately bought the rights to a franchise so that he could use it as a model and prototype to sell other franchises. Then he began to assemble a team and build an organization to make McDonald’s a nationwide entity. He recruited and hired the sharpest people he could find, and as his team grew in size and ability, his people developed additional recruits with leadership skill.” <click> John captures one of the central tenets of leadership in this last sentence. Leadership is about finding, securing, developing and unleashing the best leaders you can find. An his First Law of Leadership – The Law of the Lid, says that your success (or that of your organization) is dependent upon your leadership ability. Grow your leadership ability, and you grow your success potential. <click>If you have enormous dedication, but only limited leadership ability, your effectiveness will be limited. <click> Grow your leadership ability, and you multiply your effectiveness.

Okay, let’s roll our Talent Wheel home… Here is what we have so far… Business Strategy begets Workforce Strategy, which relies on the elements of the Talent Wheel to help the team execute. When we execute the workforce strategy, by definition we have achieved <click> what we call “Workforce Success”. Now while workforce success <click> occurs here, it <click> starts here with a clear understanding of what constitutes workforce success and how we measure it.

Let’s look at how the Steelers measure workforce success. <click> This summary of the key defensive statistics of the 2008 Super Bowl winning season tells the whole story. The Steelers measured their workforce, and they’re workforce strategy using metrics that told them if their strategy worked. This Workforce Scorecard is not the team’s overall scorecard. That scorecard, the wins and losses and ultimately the Super Bowl, measures the degree to which they executed their business strategy. The workforce scorecard measures the degree to which they executed their workforce strategy. Notice that the Steelers were best in the AFC in every category shown but one, where they were second.<click>

One comment on Workforce Success Metrics… Remember that when you set strategic metrics, they must measure things that are integral to your strategic imperatives… which change from strategy to strategy. Let me give you some examples… <click> Remember, the business strategy, begets the workforce strategy, which is measured by a workforce success metric <click> If our strategic imperative is to generate higher margins on our high-end products, <click> Then perhaps we measure workforce success by comparing our average price premium to the competitions comparable price? <click> If we’re trying to increase customer confidence, <click> perhaps we measure workforce success by the percent of customers for whom we’re a supplier of choice? <click> If it’s customer loyalty, <click> then maybe the percent of customer retention? <click> And if we’re trying to ensure the future of our talent pipeline, perhaps it’s the percentage of A players in strategic roles, or <click> or the percent of backups for strategic roles. In any case, you must be very careful, when developing your workforce strategy to identify metrics that, when achieved result in business success. <click>

<click> The last piece of the puzzle, anticlimactically speaking, is almost boring. It simply says that the natural – and we believe necessary – result of good strategy and execution is… business success. <click>

Well… if you’ve made it this far, you’re more patient than I am… but thank you. I hope you’ve received some insights about how to look at the workforce more strategically and in the process gained a knowledge of how Davis & Company: Human Capital Strategists might help you to make your workforce your firm’s single greatest sustainable competitive advantage. If you’d like to connect just e-mail – info@workforcecustomization.com God Bless, and Take Care.

The Workforce: A Strategic View Davis & Company: Human Capital Strategists presents

From Strategy to Success…

What’s the Strategy? Execution

Execution What’s the Strategy?

Defense Wins Championships

The Workforce Strategy Workforce Strategy Core Workforce Mindset / Culture Strategic Competencies Strategic Leadership Behaviors

The Talent Wheel Leadership Plan Acquire Deploy Develop Reward

Talent (Workforce) Planning Two thirds of US employers have no planning for their talent needs – Cappelli, 2008 Only 13% of organizations are good at predicting future skills, not just extension of present ones. – IBM Workforce planning is the newest and least integrated of all human capital management functions. – Conference Board As organizations strive to improve operations, they are realizing that significant untapped potential exists in the way they align their workforce to meet fluctuating customer demand. – Boston Consulting Group Source: Human Capital Institute, © 2008

Workforce Plan Support and optimize the business strategy Alignment is key Focus on “strategic” or “wealth-creating” roles Embrace differentiation

Spectrum of Roles

A Differentiated Strategy Diffusion Time of Strategic HR Concepts Impact on Firm Performance

From Our Files… Respironics – pre-2005 Respironics – post-2005 Technical Innovation Engineering creating novel products Customers are end users “Innovating, Creating and Selling” Market Needs Company solves customer problems Customers are sleep labs, durable medical equipment (DME) providers, and end users “Listening , Collaborating and Solving”

How Can We Help? Help create a Differentiated Workforce Strategy Develop a new Workforce Plan Realign an existing Workforce Plan info@workforcecustomization.com

The Talent Wheel Leadership Plan Acquire

Talent Acquisition Only 23% of executives feel confident they are able to attract the top talent they need. – McKinsey Effective hiring represents 70 to 80% of a manager’s success. – Lou Adler Studies show 90% of new hires decide to stay or leave a company within 6 months of taking a new job. – B. Kaye, “Love ‘Em or Lose ‘Em”

From Our Files… Talent Acquisition Overhaul 1999

From Our Files… Time to Start (days)

How Can We Help? Integrate Talent Acquisition into Strategy Focus on Strategic Roles Differentiated Compensation Strategy Employment Branding Develop a streamlined process

The Talent Wheel Leadership Plan Acquire Deploy

Deployment $ 10% 8% 2%

Leading Research & Tools Gallup’s 12 Questions Gettman Union Vulnerability Index The COP Model Focus on Strengths

How Can We Help? Deploy talent to: Align with strategy Maximize employee talents and passions Minimize risk Optimize engagement

The Talent Wheel Leadership Plan Acquire Deploy Develop

Employee Development Why do employees really leave?

Employee Development Why do employees really leave?

Employee Development Why do employees really leave? A poor relationship with direct boss Lack of challenging and meaningful work Little opportunity to grow & develop Source: Human Capital Institute, © 2008

Employee Development It costs roughly 1/30th the amount of time & money to develop an excellent person as opposed to hire his/her replacement. The foundation of a great company is the way it develops people – providing the right experiences, learning from other people, giving candid feedback and providing coaching, education and training. If you spend the same amount of time and energy developing people as you do on budgeting, strategic planning and financial monitoring, the payoff will come in sustainable competitive advantage. – Larry Bossidy & Ram Charan, 2008

Employee Development role analysis skills assessment performance assessment gap analysis root cause analysis problem solving solution design new assignments feedback, OJT, coaching formal coursework/training

From Our Files…

Employee Development

Feedback Annual Performance Appraisal Frequent Periodic Reviews Daily Informal Feedback Best Better Good

Employee Development

Put “A” players in strategic roles Fixed comp. for strategic roles at the market midpoint Variable comp. above the market midpoint Tie payout to the workforce strategy Core benefits at market midpoint Niche benefit tuned to workforce Share benefit risks with employees Provide some unique benefit(s) that connect to the business culture Low cost / high value rewards The Talent Wheel Leadership Plan Acquire Deploy Develop Reward

The Talent Wheel Leadership Plan Acquire Deploy Develop Reward

Leadership Leadership Ability Dedication Increased Effectiveness Effectiveness

Workforce Success Plan Acquire Deploy Develop Reward Leadership

Workforce Success

Workforce Success Metrics Business Strategy Workforce Success Metric Generate higher margins on premium products Increase customer confidence Increase customer loyalty Ensure pipeline of critical talent Average price premium vs. competition Percent of customers for whom we’re supplier-of-choice Percent customer retention a) Percent of A players in strategic roles, and b) Percent of ready backups in strategic roles

… and finally … Leadership

info@workforcecustomization.com For more information, visit us at www.workforcecustomization.com