CLC Rebuilding The Employment Value Proposition Four Strategies To Improve Employee Effort And Retention

Corporate Leadership CounCiL® rebuilding the employment Value proposition Four Strategies to Improve Employee Effort and Retention July 2009

ROAD MAP FOR THE PRESENTATION Current State of Three Strategies the Employment Council Resources to Rebuild the EVP Value Proposition From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 2

Employee engagement affected by economic DISCRETIONARY EFFORT CONTINuES TO DEClINE; downturn. INTENT TO STAY lARgElY STABlE ■ The percentage of Employee Engagement Trends employees exhibiting high discretionary effort has decreased by more than half 30% since 2005. ■ Employees’ intent to stay has rarely held steady. 25% …Intent to Stay Employees Displaying High levels of… ■ Intent to stay among high potential employees has dropped by 21% between 20% Q4 2008 and the first half …Discretionary Effort of 2009. 15% 10% 5% 0% 2005 2006 1H 2007 2H 2007 1H 2008 2H 2008 Q1 2009 Q2 2009 Time From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 3

Maintain employment value proposition in THE NExT CHAPTER: REBuIlDINg THE EVP preparation for labor market recovery. Trajectory of Dow Jones Industrial Average (DJIA) 2008–2009 ■ Economic uncertainty and organizational change damaged the employment 13,000 value proposition. 3 ■ Organizations need to State of Play: 12,000 reexamine their EVP in ■ Effort stabilizes at lower rates ■ hIpo retention risk remains high preparation for economic improvement. urgent Priority: Continue to focus 11,000 on performance but assess damage done to EVp and prepare for eventual 1 labor market recovery 10,000 State of Play: ■ discretionary effort falls by over 50% since 2005 DJIA ■ one in four hIpos plan to leave 9,000 urgent Priority: Retain key talent and address underperformance 8,000 2 State of Play: ■ Effort falls further 7,000 urgent Priority: Correct line manager behaviors with greatest impact on performance 6,000 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Source: http://www.nyse.tv/dow-jones-industrial-average-history-djia.htm From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 4

The Employment Value Proposition (EVP) ClC’S EMPlOYMENT VAluE PROPOSITION MODEl: drives attraction and commitment in the labor A KEY TO ATTRACTION AND COMMITMENT market. Attraction Benefits The Five EVP Categories Commitment Benefits ■ Constructing and delivering ■ Reduces the ■ Increases the an effective employment compensation premium commitment of new value proposition allows Rewards people needed to hire by 50% hires by up to 29% an organization to source more deeply within the labor ■ Enables organization ■ Improves the market by increasing access to reach 50% deeper commitment of to passive candidates. into the labor market employees by up to 37% opportunity Work to attract passive candidates ■ When candidates in the labor market view an organization’s EVP as attractive, they demand less organization of a compensation premium when deciding to join. The Employment Value Proposition the set of attributes that the labor market and employees perceive ■ Organizations with the as the value they gain through employment in the organization. most effective EVP delivery have 30–40% of employees displaying high levels of REwARDS OPPORTuNITY ORgANIzATION wORK PEOPlE commitment compared ■ Compensation ■ development ■ Customer prestige ■ Business travel ■ Camaraderie to less than 10% of ■ health Benefits opportunities ■ diversity ■ Innovation ■ Collegial Work employees in less effective ■ Retirement Benefits ■ Future Career ■ Empowerment ■ Job Impact Environment ■ Vacation opportunities ■ Environmental ■ Job–Interests ■ Coworker Quality organizations. ■ organization Growth Responsibility alignment ■ Manager Quality Rate ■ Ethics ■ Location ■ people Management ■ Meritocracy ■ “Great Employer” ■ Recognition ■ Senior Leadership ■ organizational Recognition ■ Work–Life Balance Reputation Stability ■ Industry ■ Informal Environment ■ Market position ■ Well Known Brand ■ product/Service Quality ■ Respect ■ Risk taking From the CoRpoRatE LEadERShIp CounCIL® ■ organization Size www.clc.executiveboard.com ■ Social Responsibility ■ technology Level © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 5

ClC survey participants represent numerous SAMPlE OF PARTICIPATINg ORgANIzATIONS geographies and industries. Below Is a Sample of the More Than 50 Organizations That Participated in the Council’s Employment Value Proposition Survey from Q4 2008 to Q2 2009 ■ Participating organizations are representative of global workforces. ■ Sample industries represented include retail, energy, financial services, government, and technology. NORTH CA OF R E O AT LI NA ST DEPA N T IO TA M RT EN O R TO P F TRANS From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 6

Employees face layoffs, restructurings, and EMPlOYEES ARE ExPERIENCINg SuBSTANTIAl CHANgE shifting responsibilities. ■ A majority of employees Percentage of Employees Who Experienced Percentage of Employees Who Expect Change have experienced a Change at Their Organization in the Past Six at Their Organization in the Next Six Months significant organizational Months change in the past six months. did not do not Experience anticipate Change 18% Change 34% ■ Many employees anticipate more change at their organization in the next six months. 82% Experienced 66% anticipate Change Change Most Commonly Experienced Changes by Most Commonly Anticipated Changes by Percentage of Employees Percentage of Employees ■ Significant organizational Restructuring: 55% ■ Layoffs of team Members: 34% ■ Change in one or More Senior Leaders: 44% ■ Significant organizational Restructuring: 32% ■ Layoffs of team Members: 42% ■ Change in one or More Senior Leaders: 31% From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 7

Engagement is deflated by change and even more ORgANIzATIONAl CHANgES NEgATIVElY IMPACT so by anticipation of change. COMMITMENT Percentage of Employees Exhibiting High Discretionary Effort and Intent to Stay by Organization Change1 ■ Organizational change Indexed refers to disruptive change such as layoffs, ExPERIENCED CHANgE: NO ExPERIENCED CHANgE: NO massive restructuring, A ANTICIPATE CHANgE: NO B ANTICIPATE CHANgE: YES and involuntary transfers within the organization, 1.00x 1.00x 1.0 1.0 not common change that 0.89x 0.9 employees face each day. ■ Implication 1: Anticipation of 0.30x 0.3 change is more damaging to performance and retention than actual change. High Discretionary High Intent-to-Stay High Discretionary High Intent-to-Stay E ort E ort ■ Implication 2: To manage “survivor syndrome,” focus 12% OF EMPlOYEES 6% OF EMPlOYEES on anticipation of change. ExPERIENCED CHANgE: YES ExPERIENCED CHANgE: YES C ANTICIPATE CHANgE: NO D ANTICIPATE CHANgE: YES ■ Implication 3: If your employees are anticipating 1.19x 1.2 change, then you are likely to have a turnover challenge. 0.63x 0.6 0.53x 0.5 0.33x 0.3 High Discretionary High Intent-to-Stay High Discretionary High Intent-to-Stay E ort E ort 22% OF EMPlOYEES 60% OF EMPlOYEES From the CoRpoRatE LEadERShIp CounCIL® 1 Change in the last six months or in the next six months. www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 8

Over-correcting to respond to the news on THREE REASONS wHY YOu SHOulDN’T SHIFT stability is a mistake. APPROACH TO STABIlITY ■ Stability has increased only one place in importance for attraction and it is not a top driver of commitment. ■ Outside of the U.S., stability 1. Stability has always been is not a top three driver of important: organizational stability attraction. ranked #4 in 2006 and #5 in 2009. ■ Many consultants are urging organizations to focus heavily on stability in their STABILITY EVP. 2. Stability doesn’t drive commitment: organizational stability is the 29th most important commitment driver. STABILITY “Provide as much job security as possible. … 3. Stability less important for HIPOs: Security and stability organizational stability is the are greatly valued by most 30th most important driver of employees.” commitment for HIPOs. Employee turnover and Retention Factsheet Guidance Chartered Institute of personnel STABILITY development From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 9

It is far better to be transparent than to over- SET STABIlITY ExPECTATIONS; DON’T PROMISE promise on stability. STABIlITY ■ When communicating Impact on Commitment of Overselling Candidates on Stability the EVP, accuracy drives commitment, while over- promising and under- delivering damages Organizations setting unrealistic candidate commitment. expectations of stability not only miss out on significant 29% ■ Specifically, failure to returns, but also drive accurately set expectations commitment down. about stability drives down commitment by up to 46 Employee Commitment percentage points. ■ Regardless of your 46% organization’s actual performance and stability, accurate expectation setting is critical. Employee has high Expectations for Stability Which are not Met Employee has high Expectations for Stability Which are Met (17%) From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 10

line manager communication gIVE lINE MANAgERS SIMPlE guIDElINES FOR HOw guidelines help to avoid over-promising. TO MANAgE COMMuNICATIONS AROuND STABIlITY Checklist of line Manager Do’s and Don’ts for Managing Communications ■ Line managers are often unsure of how to handle communications with Do’s and Don’ts for Do’s and Don’ts for candidates and employees Communicating with Job Candidates Communicating with Employees during periods of uncertainty. DON’T DON’T ■ dismiss information about the organization that ■ Evade conversations, even if you don’t have the ■ Specifically, many managers candidates cite answers tend to minimize issues ■ Get defensive when answering questions ■ Minimize or invalidate employees emotions or concerns rather than ■ Speculate on any changes going on at the company ■ Be afraid to say that you don’t know the answer addressing them directly. ■ avoid talking about events at the company that are ■ provide false reassurances (e.g., “don’t worry about it; highly visible in the media I’m sure it will all work out”) ■ Simple communication ■ Make promises you are unsure the organization can ■ Speculate on what might happen guidelines can help deliver ■ Share personal grievances with the company managers to balance DO DO frankness and optimism in a way that drives commitment ■ acknowledge any recent events that have been visible ■ provide realistic detail of both the positive and in the media negative aspects of changes to the role rather then leading to ■ Ensure message is consistent with that of hR, ■ Encourage questions and dialogue disappointment. executives, and managers at the organization ■ Maintain a visible presence to employees ■ provide rationale behind the downturn-related change ■ Validate employees’ emotions and explain the benefits and consequences ■ Share any information you have around timelines for ■ Clarify the organization’s vision, plans, and progress of decisions and communications the change initiatives ■ Share stories from your past experience about how ■ describe how the downturn and related-changes will you and your organization managed through periods affect employees and the business in the short and of instability long term ■ Remind employees of the immediate impact they can ■ Explain how the role impacts the organization have and contributions they can make in their role ■ thank employees for their contribution and recognize their achievements ■ Repeat key messages numerous times ■ Escalate important employee concerns to appropriate hR representative or manager From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 11

Avoid over-promising and under-delivering SET STABIlITY ExPECTATIONS; DO NOT PROMISE on stability. STABIlITY ■ Promising and then failing to Mandates for the Head of HR deliver on all EVP attributes damages commitment— stability is no exception. Tomorrow Next week Next One to Three Months ■ Most people struggle with managing difficult messages effectively when they are 1 trying to influence a positive outcome (e.g. attracting talent, retaining valued employees). ■ audit the quality ■ ask recruiters if candidates are ■ Implement declined candidate of communication posing questions about the surveys to determine the guidelines given to stability of the organization or extent to which stability (or ■ Organizations must educate managers to help specific roles, and if there are communications around managers and recruiters them respond to common themes, create FaQs. stability) is playing a role in about the risks of over- questions from declines. promising and provide ■ Create a one-page summary employees and guidelines for managing of major planned organization ■ Review your current candidates. communications. changes (layoffs, reorganization, engagement/climate survey ■ deploy CLC’s senior management changes) tool to assess whether it ClC Checklist of do’s and across the business and measures communications 1 don’t’s for Managing list employee and line effectiveness; if not, Communications. manager segments requiring add questions. targeted communications or communications support. ■ Check if your Communications team is collecting current press items on the company and make these accessible to recruiters and hiring managers as part of interview preparation. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 12

Organizations are less effective at delivering the THREE POTENTIAl CAuSES OF EVP MISAlIgNMENT EVP. EVP Effectiveness1 Decline and Root Causes ■ In 2009, organizations are 14% less effective at delivering EVP attributes 2006 than in 2006. 2009 51% ■ The decline in EVP delivery effectiveness might be 14% attributed to a shift in employee preferences, 37% a change in the EVP’s effect on commitment, or poor delivery of the most important attributes. Average EVP Effectiveness 1 2 3 Drivers of Attraction Have Drivers of Commitment Inefficient Delivery of Most Changed Have Changed Important EVP Attributes 1 delivery effectiveness represents the percentage of employees From the CoRpoRatE LEadERShIp CounCIL® that rate overall EVp delivery as effective or very effective. www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 13

Most valued attributes remain similar in 2009. ROOT CAuSE #1: PREFERENCES HAVE SlIgHTlY SHIFTED Rank Order of EVP Attributes by Importance for Attraction ■ The top five most valued 2006 Versus 2009 EVP attributes in 2006— compensation, future career opportunities, work-life balance, development, and zone of Alignment stability—are the same in More 40 2009. Important MORE IMPORTANT IN 2009 35 Manager Quality of EVP Attribute for Attraction 30 2009 Rank Order Importance 25 Collegial Work Environment Meritocracy 20 Organization Size 15 Retirement Benefits 10 Vacation 5 attraction Camaraderie lESS IMPORTANT IN 2009 distance Score1 less Important0 = 120.6 0 5 10 15 20 25 30 35 40 less Important More Important 2006 Rank Order Importance of EVP Attribute for Attraction dist09–06=√∑ x 09 (x 09 – x 06)2 38 1 =1 From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 14

Noteworthy change in importance for some EVP ROOT CAuSE #2: gREATER SHIFT IN DRIVERS OF attributes. COMMITMENT ■ EVP attributes that became Rank Order of EVP Attributes by Impact on Commitment more important in 2009 2006 Versus 2009 include coworker quality, “Coworker Quality” is the collegial work environment, third most important driver of commitment and job impact. in 2009, but was only number 16 in 2006. ■ EVP attributes that More 40 zone of Alignment decreased in importance Important MORE IMPORTANT IN 2009 include development Coworker Quality opportunities and informal 35 work environment. Collegial Work Environment Job Impact 30 of EVP Attribute for Commitment Future Career 2009 Rank Order Importance Organization Size Opportunities “Development 25 Opportunities” was the second most important driver 20 Development Opportunities of commitment in Work-Life Balance 2006, but is only Customer Prestige number 17 in 2009. 15 lESS IMPORTANT IN 2009 10 Social Responsibility Commitment Technology Level distance Score1 5 = 152.2 less Important 0 0 5 less Important 10 15 20 25 30 35 40 More Important 2006 Rank Order Importance of EVP Attribute for Commitment dist09–06=√∑ x 09 (x 09 – x 06)2 38 1 =1 From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 15

Attributes that drive most commitment changed ROOT CAuSE #2: THE TOP DRIVERS OF COMMITMENT between 2006 and 2009. HAVE CHANgED FROM 2006 ■ The top five most important 2009 EVP Drivers of Commitment and Change in Rank Order Since 2006 EVP attributes to drive commitment have shifted across the past three years. Rank Order Rank Order of Importance of Importance ■ Coworker quality and Change in Change in for Commitment for Commitment collegial work environment Rank Order, Rank Order, became top 10 drivers of EVP Attributes 2009 2006 2006–2009 EVP Attributes 2009 2006 2006–2009 commitment. Jobs-Interest Alignment 1 3 2 Work-Life Balance 20 27 7 Manager Quality 2 5 3 diversity 21 24 3 ■ Development opportunities Coworker Quality 3 16 13 Industry 22 20 (2) dropped in importance for people Management 4 4 0 Environmental Responsibility 23 21 (2) driving commitment. Customer prestige 24 31 Respect 5 1 (4) 7 Collegial work Environment 6 14 8 Compensation 25 26 1 Senior Leader Reputation 7 7 0 Camaraderie 26 29 3 Job Impact 8 17 9 organizational Growth 27 30 3 Innovation 9 11 2 Market position 28 25 (3) Empowerment 10 8 (2) organizational Stability 29 28 (1) Ethics/Integrity 11 10 (1) Social Responsibility 30 22 (8) Future Career opportunities 12 6 (6) technology 31 23 (8) organization Size 13 19 6 Retirement Benefits 32 32 0 Recognition 14 9 (5) Well Known Brand 33 36 3 Meritocracy 15 12 (3) health Benefits 34 33 (1) “Great Employer” Recognition 16 13 (3) Vacation 35 34 (1) Development Opportunities 17 2 (15) Informal Environment 36 35 (1) product/Service Quality 18 15 (3) Location 37 37 0 Risk taking 19 18 (1) Business travel 38 38 0 From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 16

EVP delivery effectiveness has ROOT CAuSE #3: MASSIVE EVP EROSION IS OCCuRRINg dropped across all categories. Percentage of Employees Rating Overall EVP Delivery as Effective or Very Effective 2006 Versus 2009 ■ Fewer organizations received high effectiveness ratings for delivery across Level of Effectiveness all EVP categories in 2009 in 2006 compared to 2006. 56% Level of Effectiveness 52% in 2009 ■ Organizations’ effectiveness at delivering EVP attributes 48% related to an employees’ Delivery as Effective or Very Effective 44% day-to-day work dropped 41% Employees Rating EVP Category 22%. 40% 38% 32% 30% 29% Organization Opportunity People Work Rewards EVP Category From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 17

Corporate leadership Council data analysis IMPERATIVES FOR REBuIlDINg THE EVP suggests four key imperatives for rebuilding the EVP. getting to the Four Imperatives 1. Which attributes have changed the most in importance for attraction and/or commitment? 2. Which of those attributes have seen the greatest drop in delivery effectiveness? 3. Which of the attributes meeting the above two criteria demand the greatest attention in the current climate? Job-Interests Stability work Environment Development Alignment organizations Work environments Job-interests development are being told to are less supportive, alignment is key to has dropped as highlight stability, but more important commitment now, a commitment Challenge but there are risks now. but threatened driver, but remains to over-focusing by organizational an organizational on it. change. priority. Set stability Re-establish Enable employee Support career expectations; networks to fuel self-selection into self-reliance on the do not promise engagement and work and roles to part of employees Imperative stability. productivity. increase alignment to overcome with interests. organizational barriers. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 18

Disruption is the biggest root cause problem of FOCuS ON NETwORK CHANgES AND DISENgAgED decrease in satisfaction with work environments. EMPlOYEES, NOT REDuCINg wORKPlACE COMPETITION Decline in Supportive work Environment ■ Coworker quality and collegial work environments Change in have increased in importance Rank Order, Attribute 2006–2009 for driving commitment between 2006 and 2009. Coworker Quality 13 Collegial Work Environment 8 ■ Delivery of coworker quality has declined 7% and delivery of collegial work 1 2 3 environment has declined 9%. The Disengaged Competition for Jobs Network Change1 Are Staying ■ The quality of work environments may have declined for several Percentage of Employees Percentage of Disengaged who Percentage of Employees reasons, including increased Experiencing High Competition Are Actively Seeking a Job Experiencing Network competition, “prisoner for Promotion, 1H 2009 Disruption in Past Six Months of war” syndrome, and disruption of employee did not networks. Experience disruption 40% Deeper analysis suggests 78% ■ 46% that network disruption 35% is the most significant root cause, with 60% of 25% employees experiencing 22% 60% changes to their team or Experienced direct management. disruption Moderate or high Internal 2006 2008 1h 2009 Low Internal Competition for Competition for promotions promotions 1 disruption moving to a different team, suffering layoffs on your own team, experiencing a change in direct management. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 20

Bombardier creates a forum for managers to BOMBARDIER’S PEER CONSulTINg COHORTS (re)build cross-business networks designed to provide targeted job support. Bombardier Aerospace’s Peer Consulting Success Factors For Reestablishing Disrupted Cohorts Networks using Peer Cohorts For Supervisors and Managers from Diverse Functions ■ CLC research shows that Optimize Network Quality high quality job-focused ■ Cross-functional participation builds networks peer networks have beyond the immediate team that are valuable for a powerful impact on obtaining knowledge and resources leadership development. Managers ■ Connecting managers with peers at a similar take turns Managers also take stage in the careers with similar challenges fosters ■ Many organizations fall playing turns playing the empathy and relationship building short on helping employees the role of role of the “client” to activate and maintain “consultants” Optimize Network Interaction networks beyond the ■ Clearly defined roles and agenda help set immediate team. learning Facilitator expectations and ensure constructive, solutions-oriented discussion ■ Bombardier created line ■ a “report-back” element at the start of each manager peer consulting session enables reflection on what worked or did cohorts; with minimal time CONSulTINg COHORT MECHANICS not and contributes to learning and budget investment from ■ Bombardier convenes groups of seven managers HR and the line, managers from different business units monthly for eight Optimize Network Maintenance can benefit from ongoing months to advise each other on leadership and ■ the eight-month duration provides sufficient time management challenges. guidance and support from for networks to be developed and consolidated ■ Each manager plays the role of the “client” at their peers. ■ the focus on job-specific challenges drives least once across the eight-month time period; otherwise they are “consultants.” relevance of the network for participants ■ the client presents a management challenge and directs the type of consulting he or she wants from the group. ■ Consultants contribute based on the objective and approach set by the client. ■ a learning facilitator ensures that the client and consultants adhere to a pre-defined contract. Source: Learning and development Roundtable, ‘Bombardier’s peer Consulting Cohorts’ 2007. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 21

Make network rebuilding an organizational priority. REESTABlISH EMPlOYEE NETwORKS TO FuEl ENgAgEMENT AND PRODuCTIVITY ■ Helping employees rebuild their immediate and cross- Mandates for the Head of HR business networks has an immediate impact on the supportiveness of the work environment. Tomorrow Next week Next One to Three Months ■ Organizations can foster network rebuilding in fast, inexpensive ways by simply 1 updating information on individuals and organization structures. ■ Request that all ■ Embed simple ■ Embed networking employees update network creation in the organization their online profile/ and maintenance through peer consulting contact information 2 tactics into formal cohorts. on intranet training programs directories. (see CLC’s case ■ assess the business profile on hewlett- case for implementing ■ Request that all packard’s Career online professional departmental and Support networks). or social networking functional heads platforms if none exist, create and make ■ Implement hIpo or if they do exist, available an up-to- ClC network support review quantity and date organizational 3 strategies. quality of utilization chart. to determine what improvements should be made. (see CLC’s case profile on Sabre’s Employee Connection Center). From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 22

Organizational change reduces the alignment ORgANIzATIONAl CHANgE IS REDuCINg JOB-INTEREST between employees’ interests and their work. AlIgNMENT Percentage of Employees with High Job-Interest Alignment by Change1 ■ Job-interests alignment Indexed is the top driver of commitment among EVP attributes. 1.00x 0.90x 0.81x ■ The more change an 0.74x employee experiences or anticipates, the less alignment they experience between their interests and the job they are doing. ■ Satisfaction with job-interest did not Experience Experienced Change but did not Experience Change Experienced Change alignment is lowest for Change and do not do not anticipate Change but anticipate Change and anticipate Change employees anticipating anticipate Change change, suggesting that the mere presence of uncertainty is disruptive. Percentage of Managers Rated Very Effective at “Providing Me with the Opportunity to work on what ■ This may be a consequence I Do Best” of managers being less able or willing to match work with 40% Very 29% Very 30% Very 31% Very employee interests during Effective Effective Effective Effective periods of change when they are focused heavily on meeting short-term business goals. note: organizational Change includes layoffs, change in job responsibilities, change From the CoRpoRatE LEadERShIp CounCIL® in direct or senior manager, transfer to another part of the organization. www.clc.executiveboard.com 1 Change in the last six months or anticipate change in the next six months. © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 23

The more involvement employees have in their ENABlE SElF-SElECTION TO BETTER AlIgN role, the more satisfied they are with job fit. JOB–INTERESTS Percentage of Employees Satisfied with Job–Interests Alignment ■ When employees are By Degree of Involvement in Job Design Decisions involved in decisions about what job and work they do, they are more satisfied with 82% their job-interests alignment. Employees Satisfied with Jobs Interests Alignment ■ Organizations reap the greatest gains in returns 66% by going from providing employees no say in their role to providing moderate involvement, indicating that major process adjustments are unnecessary. ■ During periods of change, organizations tend to reduce, 31% not increase, employees’ ability to self-select for work and roles. No Involvement Moderate Involvement High Involvement Degree of Involvement in Job Design Decisions From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 24

Avoid pitfalls during organizational change ORgANIzATIONAl CHANgE PRESENTS to prevent job-interests misalignment. BOTH PERIl AND OPPORTuNITY ■ At each stage of 1 2 3 4 restructuring, organizations New roles created/ Assessment and risk damaging job-interests Restructuring old roles eliminated selection of staff Staff redeployed alignment by not involving announced for roles conducted or redesigned employees in decisions about what roles and work they do. Danger With increasing pressure to act organizations fail to poor fit outcomes uncertainty, quickly means role involve employees not identified and ■ The silver lining to employees become responsibilities in decisions about addressed early restructuring is that new less verbal about and required skills their placement, enough. Good projects and roles also offer career aspirations are often not fully and decision makers fit outcomes opportunities to increase fit and less frank if defined; setting the are often not fully undermined by with strengths. directly asked. stage for poor fit in knowledgeable ongoing lack of the redeployment about affected staff role clarity ■ While command and stage control management can be necessary during change, optimizing fit between employees’ skills and their work drives business Mitigate Engage employees Communicate the allow employees have managers performance; this is one Risk by in discussions and three to five most to self-select for of redeployed Increasing area to increase, not reduce, projects around critical skills and new roles either by employees hold an Employee employee involvement. Self- business challenges knowledge areas direct application “objectives, priorities Selection to observe where required for success or “open door” and success factors” their strengths lie for each new or sessions with the session in the first and to allow them redesigned role. individuals leading week to clarify role to self-select into the reorganization requirements and work that aligns encourage dialogue with their interests around optimal and skills project mix From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 25

The CTO blog surfaces innovative solutions lET EMPlOYEES SElECT INTO THE PROBlEMS THEY faster and matches people with projects wANT TO SOlVE needs. Sample BCBSF Blog Discussion Threads ■ BCBSF received a very positive response to the blogs with 300 visitors, 90 contributors, and 115 unique ideas in the first two weeks. ■ Several discussion threads surfaced innovative solutions that might otherwise have taken longer to identify. ■ Individuals submitting Smith, John solutions that are ultimately tested and adopted are asked to participate in project teams, enabling Beta Beta Zeta better fit between project mix and individual interests and skills. The CTO responds to a post with a follow up ■ BCBSF launched three Chief question and uncovers a John, I am hopeful that such an option is available. You reference a solution that sounds great. what are the processes and technologies, and how are they essential to provide this environment? Technology Officer blogs to solution—and a person capable of helping to empower employees in its IT implement it. Smith, John function to submit innovative Barry, ideas for addressing core Thanks for your response. Yes, solution exists! I was at the “Alpha Software Conference 2009” last week and saw the demo. I discussed with Alpha architects right after the presentation and seems to be a viable solution for BCBSF. Solution is a pre-configured virtual development appliance developed with cloud-computing concepts. business challenges. John, I am hopeful that such an option is available. You reference a solution that sounds great. what are the processes and technologies, and how are they essential to provide this environment? From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com Barry, Thanks for your response. Yes, solution exists! I was at the “Alpha Software Conference 2009” last week and saw © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 the demo. I discussed with Alpha architects right after the presentation and seems to be a viable solution for BCBSF. 26

Empower employees to opt-in to the jobs and ENABlE EMPlOYEE SElF-SElECTION INTO wORK projects that fit their strengths. AND ROlES Mandates for the Head of HR ■ As many “strengths-based” organizations have learned, leveraging employee Tomorrow Next week Next One to Three Months strengths/interests unlocks commitment and productivity. 1 ■ During change, organizations tend to reduce rather than increase employee self- selection mechanisms. ■ Spot-check the quality ■ Review your internal ■ Redesign your internal of job descriptions job posting policy and job posting policy and for new/redesigned process to identify process to better enable ■ Facilitating self-selection roles to determine immediate ways to employee self-selection does not have to add if requisite skills/ improve access for time and cost; it is about ■ Leverage intranet and knowledge areas are employees increasing access to other technologies to clearly listed information, opportunities ■ ask line leaders to provide facilitate matching of and decision-makers. ■ Score your employees transparency employee interests/ ClC organization’s current into the process skills with key business 4 levels of employee for redeployment/ projects self-selection for roles/ applications for new roles ■ Improve job descriptions projects and to create access to to provide greater insight decision makers into core success factors ■ Work with line leaders for all roles and facilitate to identify key business self-selection projects requiring resourcing and identify ways to enable employees to self-select into supporting them From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 27

Development has dropped in importance EMPlOYEES wANT DEVElOPMENT, BuT IT DOES NOT for commitment. IMPROVE COMMITMENT AS MuCH AS IT DID ■ While development is still a Top Five EVP Preferences by Percentage of EVP Attributes with greatest Decrease in Rank top-five driver of importance Employees Selecting as Top Five EVP Attribute Importance for Driving Commitment for attraction, it has dropped 2009 from #2 to #17 in importance for commitment. Rank Order of Importance ■ This drop suggests that Compensation 53% for Driving Change in employees still want Commitment Rank Order, development, but when provided, it has less impact EVP Attributes 2009 2006 2006–2009 Future Career on their commitment. 42% development opportunities 17 2 (15) Opportunities Social Responsibility 30 22 (8) technology Level 31 23 (8) Work-Life 39% Balance Development 36% Opportunities Stability 29% From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 28

Organizations need to invest in employee ORgANIzATIONS STIll NEED TO FOCuS ON development to meet business objectives. DEVElOPMENT Percentage of Successors Immediately Ready Percentage of leaders Concerned About ■ Regardless of the for Their Next Role Skill Development of Their Team importance of development 2009 2009 within the EVP, development remains a strategic business priority. ■ In particular, leadership capability remains a critical 22% Immediately 25% not a concern with only 22% of Ready Concern successors ready now for their next role and only 25% of leaders confident in their team’s capabilities. not Ready Moderate or 78% high Concern 75% From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 29

Managers are less willing and able to invest in MANAgERS ARE lESS EFFECTIVE AT DEVElOPMENT development now. DuE TO COMPETINg PRIORITIES AND INVESTMENT RISK ■ As organizations experience Percentage of Employees Rating Direct Manager as Effective severe pressures and change, or Very Effective at Coaching, 2008 Versus 2009 managers tend to focus on Employees Rating Manager as Effective or Very Effective at Coaching delivering results—and take 56% 7% their eye off of coaching and 49% development. ■ In addition, managers may reduce investments in development simply because the payback appears less certain with team structures 2008 2009 undergoing significant change. ■ Because of these two 1 2 manager barriers, Competing Priorities Investment Risk organizations should shift Managers prioritize activities that produce short- Managers do not invest in development due to high risk term results to turn around business. of losing developed staff in organizational restructuring to helping employees on and layoffs. development. Distribution of Managers’ Time Spend per Percentage of Employees who Experienced or week, 2008 Versus 2009 Anticipate Change in Manager1 people Management In Hours activities non-people 56 Management activities 53 no 37% 23 26 63% Yes 33 27 2008 2009 From the CoRpoRatE LEadERShIp CounCIL® 1 Change in manager or senior leader in the last six months or anticipation of change in the next six months. www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 30

Sprint transforms work experiences into learning NO lEARNINg wITHOuT REFlECTION with tools that promote self-assessment and Sprint’s Self-Evaluation Tools reflection. ■ To enable employees to POTENTIAl DERAIlERS SElF-ASSESSMENT extract value from each I have received feedback related Factors Known to Have Derailed Those Pursuing or on an Executive Career Path rotation and project they to this derailer (yes/no) work on, Sprint requires difficulty making and meeting commitments them to assess their learning FuNCTIONAl SKIllS SElF-ASSESSMENT abrasive, arrogant, or insensitive to personal impact on others takes credit for the work of others needs and strengths before difficulty dealing with ambiguity Name of university Name of university Developmental Business Functional Skills taking on a new role. hesitancy to take necessary risks or Company or Company Scale Makes decisions without considering the impact (on business results or other parts Marketing of the organization) ■ Employees also reflect on Sales/Sales Support/ lEADERSHIP DIMENSIONS SElF-ASSESSMENT hesitancy to confront difficult or unpleasant situations the factors most likely to hesitancy to delegate Customer Care Sprint Dimensions Name of university or Name of university or Developmental Company Company Scale cause them to derail in a new technology/network difficulty communicating clearly and persuasively in executive-level meetings role and at the end of each puts self-interest above company good Leadership: Communicate a Demonstrate operations Discipline compelling vision rotation reflect on what they difficulty making sound judgments about people Act With Integrity: Build and protect Finance SElF-EVAluATION OF lEARNINg reputation for doing the right thing, Reject have learned. unethical or questionable behaviorAreas Strategy Development Focus How They Map to learning Knowledge/Experience Needs gained Customer Focus: understand and exceed customers’ development deliver customer- product expectations, ■ Sprint’s Career Planning focused solutions Business development Guide provides a broader Deliver Results: Ensure quality while acting CAREER PlANNINg guIDE with a sense of purpose and urgency framework for career Build Relationships: Engage others growth Areas of Interest Strategic Possible Developmental Rotations Through Staff Associate Program pathing options; this helps Strategy ■ Marketing Strategy & planning ■ Finance/decision Support Product Development employees to select the right Product/Service Innovation ■ Business development & analysis ■ product Management Business Development Marketing-focused GM building blocks to get where ■ Sales (Business/Consumer) they want to go. ■ network/Engineering planning ops ■ Finance/decision Support Network and Technological Innovation ■ access planning ■ Business planning/development technology-capable GM ■ Marketing Strategy and dev ■ It Strategic planning ■ Customer Services ops ■ pR/Marketing Communications Customer Experience Innovation ■ Marketing Strategy/dev/planning ■ Brand Management deep consumer-focused GM ■ product Management ■ Business development ■ Finance operations/analysis and ■ Marketing Strategy Business Model/Partnership Innovation planning ■ product development/ Risk-oriented GM ■ Strategic Valuation Management note: please see appendix for additional details about Sprint’s learning acceleration toolkit. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 31

Empower employees to own and manage their SuPPORT CAREER SElF-RElIANCE TO OVERCOME development. ORgANIzATIONAl BARRIERS TO DEVElOPMENT ■ Organizations have Mandates for the Head of HR been investing in formal training and manager-led coaching; given budgets Tomorrow Next week Next One to Three Months and bandwidth constraints, now is the time to empower employees to “step up” and own their development. 1 ■ This is not about removing the onus entirely from organizations and managers; ■ Review your ■ deploy a simple “how ■ Create career pathing it is about providing simple Learning and ClC is my job developing guides within and across tools to employees so they development 6 me now?” diagnostic major job families to can better manage their Mission Statement to employees to help employees visualize careers. (if one exists) for help them reflect on potential trajectories relevance in the opportunities within ■ Create learning current environment their immediate experience maps for environment ■ Inventory tools employees to determine ClC currently provided ■ deploy a simple which experiences to 5 to employees ClC stretch role risk prioritize depending on to manage their 7 assessment diagnostic career path and stage development and to managers to help ■ Create tools for score them for them balance provision employees to self- relevance and of development with assess learning needs accessibility management of and strengths, identify organizational risk factors that might derail their development, and reflect on learning at the end of a project/role. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 32

Corporate leadership Council data analysis IMPERATIVES FOR REBuIlDINg THE EVP suggests four key imperatives for rebuilding the EVP. Executive Summary 1. Employees’ satisfaction with the EVp has declined by 14% since 2006. 2. anticipation of change is more damaging than change itself. 3. organizations must empower employees along three critical dimensions and avoid one pitfall. Job-Interests Stability work Environments Development Alignment organizations Work environments Job-interests development are being told to are less supportive, alignment is key to has dropped as highlight stability, but more important commitment now, a commitment Challenge but there are risks now. but threatened driver, but remains to over-focusing by organizational an organizational on it. change. priority. Set stability Re-establish Enable employee Support career expectations; networks to fuel self-selection into self-reliance on the do not promise engagement and work and roles to part of employees Imperative stability. productivity. increase alignment to overcome with interests. organizational barriers. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 34

ClC’s dedicated EVP solutions portal helps you REBuIlD THE EVP AT YOuR ORgANIzATION to embed insights from The EVP in Freefall in your ClC’s EVP Solutions web Page organization. ■ Access CLC’s EVP solutions portal via www.clc.executiveboard.com. Find research and tools that align with where you are in your own EVP project. View CLC’s latest data-based insights. Access CLC’s latest insights and tools on the EVP. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 35

Find research and tools that align with where lEVERAgE ClC’S EVP SOluTIONS SITE you are in your own EVP project. Sample web Page Components ■ Navigate the EVP solutions 1 2 3 site by clicking on headings (e.g. Design, Promotion, or EVP Design EVP Promotion EVP Delivery Delivery) that correspond with your EVP project Step I: Identify Preferences Step I: Select Channels Step I: Assess Delivery ■ Research and tools are highlighted Resource: Effectiveness further organized by sub- EVp/performance Survey headings Step II: Select Attributes Step II: Improve Channels Step II: Improve Delivery to highlighted Resource: highlighted Resource: Candidates and Employees EVp Redesign toolkit Employee Referrals toolkit highlighted Resource: philips’ Lifecycle-Based EVp delivery Step III: Customize EVP highlighted Resource: EVp design Center Step III: Align HR Processes and Policies highlighted Resource: Scotiabank’s Employment Value proposition Redesign Training for Your Team or Managers CLC training sessions are focused on your most pressing needs, tailored to your target audiences and flexible in delivery mode. professional instruction incorporates Council insight, learning activities and specific outcomes for your organization. Contact us to learn more about how a CLC training session can support your ongoing EVp priorities. From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 36

ClC genesee, our sister consulting practice, DEDICATED SuPPORT wITH ClC gENESEE provides implementation support to solve your ClC genesee’s Engagement Structure for Solving EVP Challenges unique EVP challenges. 1 2 3 4 ■ CLC Genesee clients that MEASuRE THE have taken this approach ASSESS YOuR REDESIgN YOuR COMMuNICATE IMPACT OF YOuR immediately reduced CuRRENT EVP uNIQuE EVP YOuR NEw EVP NEw EVP turnover by 8% and saved tens of millions annually. Survey employees, Engage key prioritize effective Establish and globally or in stakeholders communication track performance critical populations, to design a channels for metrics to to pinpoint the compelling and streamlined proactively strengths and credible EVp that messaging that manage the EVp weaknesses of your showcases the impacts all major and measure RoI unique EVp drivers employment brand touchpoints Robust Capabilities for Driving Change CLC Genesee is the global leader for workforce surveys and analytics. With over 40 years of global survey experience, CLC Genesee is positioned to support progressive hR organizations solve EVp challenges with: ■ an extensive global database of employee needs and values to help firms understand what matters most in employee career decisions ■ diagnostic tools that enable firms to assess values of key employee segments and employee perceptions of firm strength and weaknesses ■ proven methodologies to hone your brand to distinguish against competitors while centering on attracting and retaining top talent From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 37

ClC tests 38 EVP Attributes that DEFINITIONS OF EVP ATTRIBuTES drive attraction and commitment. ■ To develop an actionable list of EVP attributes, ATTRIBuTES NAME DEFINITION Council staff reviewed a Business travel the amount of out-of-town business travel required by the job variety of sources to identify potential EVP attributes. Camaraderie Whether working for the organization provides opportunities to socialize with other employees These sources included Collegial Work job postings, company Whether the work environment is team-oriented and collaborative Environment Web sites, business press Compensation the competitiveness of the job’s financial compensation package articles, consultant literature, academic and business Coworker Quality the quality of the coworkers in the organization research, and interviews with Customer Reputation the reputation of the clients and customers served in performing the job Council members. development the developmental/educational opportunities provided by the job and organization opportunities ■ A master list of over 200 characteristics was compiled diversity the organization’s level of commitment to having a diverse workforce and evaluated for similarity, Empowerment the level of involvement employees have in decisions that affect their job and career distinctiveness, universality, Environmental and overall ratability, leading Responsibility the organization’s level of commitment to environmental health and sustainability to the consolidated list of 38 attributes. Ethics/Integrity the organization’s commitment to ethics and integrity Informal Work Whether the work environment is formal or informal Environment ■ This final list of 38 organizational attributes Future Career the future career opportunities provided by organization opportunities can be categorized into five categories: Rewards, “Great Employer” Whether or not the organization’s reputation as an employer has been recognized by a third-party Recognition organization Opportunity, Organization, Work, and People. organizational Growth the growth rate of the organization’s business Rate health Benefits the comprehensiveness of the organization’s health benefits Industry the desirability of the organization’s industry to the respondent Innovation the opportunity provided by the job to work on innovative, “leading edge” projects From the CoRpoRatE LEadERShIp CounCIL® Job–Interests alignment Whether the job responsibilities match your interests www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 38

ClC tests 38 EVP Attributes that DEFINITIONS OF EVP ATTRIBuTES (CONTINuED) drive attraction and commitment. ■ To develop an actionable list of EVP attributes, ATTRIBuTES NAME DEFINITION Council staff reviewed a Job Impact the level of impact the job has on outcomes variety of sources to identify potential EVP attributes. Location the location of the jobs the organization offers These sources included Manager Quality the quality of the organization’s managers job postings, company Web sites, business press Market position the competitive position the organization holds in its market(s) articles, consultant literature, Meritocracy Whether or not employees are rewarded and promoted based on their achievements academic and business research, and interviews with organization Size the size of the organization’s workforce Council members. organizational Stability the level of stability of the organization and the job ■ A master list of over 200 people Management the organization’s reputation for managing people characteristics was compiled product Brand awareness the level of awareness in the market place for the products brand and evaluated for similarity, distinctiveness, universality, product/Service Quality the organization’s product or service quality reputation and overall ratability, leading Recognition the amount of recognition provided to employees by the organization to the consolidated list of 38 attributes. Respect the degree of respect that the organization shows employees Retirement Benefits the comprehensiveness of the organization’s retirement benefits ■ This final list of 38 organizational attributes Risk taking the amount of risk that the organization encourages employees to take can be categorized into Senior Leadership the quality of the organization’s senior leadership five categories: Rewards, Reputation Opportunity, Organization, Social Responsibility the organization’s level of commitment to social responsibility (e.g., community service, philanthropy) Work, and People. technology Level the extent to which the organization invests in modern technology and equipment Vacation the amount of holiday/vacation time that employees earn annually Work–Life Balance the extent to which the job allows you to balance your work and your other interests From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 39

Top five most important attributes for attracting APPENDIx: DRIVERS OF ATTRACTION DIFFERENCE employees have remained the same since 2006. 2006–2009 2009 Employee EVP Preferences and Change in Rank Since 2006 ■ Compensation, future career opportunities, work- life balance, development Rank Order Rank Order opportunities, and stability of Importance of Importance remain the top employment Change in Change in for Attraction for Attraction preferences in 2009. Rank Order, Rank Order, EVP Attributes 2009 2006 2006–2009 EVP Attributes 2009 2006 2006–2009 ■ Manager quality became a Compensation 1 1 0 Market position 17 20 3 top 10 preference in 2009. Future Career oppurtunities 2 2 0 technology 22 21 (1) Work-Life Balance 3 3 0 Collegial Work Environment 15 22 7 ■ Vacation and retirement Stability 5 4 (1) Coworker Quality 21 23 2 benefits are less important development opportunities 4 5 1 organization Growth Rate 24 24 0 for attraction in 2009 in Well Known Brand 20 25 Respect 7 6 (1) 5 comparison to 2006. Job-Interests alignment 10 7 (3) Camaraderie 35 26 (9) Location 8 8 0 Social Responsibility 32 27 (5) Recognition 11 9 (2) "Great Employer" Regonition 25 28 3 Ethics/Integrity 9 10 1 Informal Work Environment 26 29 3 Empowerment 16 11 (5) Industry 28 30 2 Meritocracy 18 12 (6) Senior Leader Reputation 30 31 1 people Management 12 13 1 organization Size 23 32 9 product/Sevice Quality 14 14 0 diversity 29 33 4 Innovation 13 15 2 Level of Impact 31 34 3 health Benefits 19 16 (3) Environmental Responsibility 34 35 1 Retirement Benefits 27 17 (10) Customer prestige 36 36 0 Vacation 33 18 (15) Risk taking 38 37 (1) Manager Quality 6 19 13 Business travel 37 38 1 From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 40

A relationship exists between engagement APPENDIx: ENgAgEMENT DRIVES BuSINESS OuTCOMES and organizational performance. Hospital Finds Higher Employee Engagement Serco gains 12% Increase in Customer leads to Higher Operating Margins Satisfaction by Improving Employee Engagement ■ Higher levels of employee engagement improve Customer Satisfaction organizational outcomes 1.35x Operating Margin such as profit and customer 1.12x satisfaction. 1.00x 1.00x hospital with hospital with Before Employee after Employee Low Employee high Employee Engagement Engagement Engagement Engagement Increase Increase Standard Chartered Bank Branches with Fortune 100 Manufacturer Achieves 50% Increased Employee Engagement levels lower Absenteeism Among Highly Engaged Have Higher Profit Margin Teams 1.16x Profit Margin Absenteeism 1.00x 1.00x 0.51x Bank Branch Bank Branch teams teams Experienced Experienced with Low with high decreases Increases in Engagement Engagement For more information on in Employee Employee Engagement Engagement employee engagement, please visit www.clcgenesee.com. Bank Branch From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 41

Sprint gives employees tools to extract maximum APPENDIx: SPRINT’S lEARNINg ACCElERATION development from every rotation or project they TOOlKITS work on. Sprint’s learning Experience Maps Key Rotational Experiences to Successful Leader Development ■ Sprint runs a two to three Highly Recommended Highly Recommended Strategic Role Only in Second and Third year rotation-based Staff in Every Rotation in at least One Rotation Rotations Associate program for mid- ■ Systems integration enterprise-wide level managers to accelerate Supervisory Technological Sophistication ■ Strategy/concept development situation ■ development of individuals and team ■ Work in technology sector of company their career progression to ■ Performance management of difficult/ ■ Supervise a team of technology savvy ■ ambiguous/future state situations (not general manager. everything is known) unpleasant people issues direct Reports ■ Significant communicate upward/outward ■ Hiring/firing of employees ■ develop or manage technology-driven role ■ number of direct reports products and services ■ The program’s core ■ Quality of direct reports Increase in Job Scope philosophy is that employees Unfamiliar Responsibility ■ Multiple function responsibility ■ diverse team (gender, ethnicity, age) own their development, ■ Multiple layers of management ■ different function from comfort zone ■ Large scope and scale ■ new area aided by tools to help to ■ Geographically dispersed team and ■ More complex role and environment ■ Lateral move assess their learning needs, individuals ■ Stretch compared to comfort zone ■ Leading those that are different from self Increasing Across find needed development TuRNAROuND/CHANgE All Rotations opportunities, and extract Manage Relationships ■ Take over situation with inherent maximum development from ■ Influence across divisions Levels of Executive Leader Development problems (take from bad to good) ■ Establish strong peer networks ■ Management roles and projects. ■ Take organization through redesign/ – process orientation ■ Matrix management major change initiatives – technical skill emphasis ■ alliances and partnerships ■ Significant, organization-wide employee ■ A key tool is the learning – Self-contained team Accountability/Deliver Results problems – Short-term planning horizon experience map which ■ Generate revenue ■ Critical business need in danger of failure ■ organization/Systems provides a structured ■ Cut costs ■ Take organization through lay-off; – Combination technical/people skill framework of the types ■ p & L decommissioning emphasis ■ Large budget ■ Manage declining business of experiences needed to – team impacts other functions/ build general management Quality Leadership and Support Start-Up organizations – Longer planning horizon skills, including difficult and ■ Work for top performing leader ■ Launch new business ■ Role with successful senior management ■ Launch new product ■ Strategic challenging experiences. – alliance/partnership (external) ■ high performance team (work with other ■ Rapid growth business exceptionally talented people) management ■ Work with an executive who develops, – Vision: connecting current with future mentors, and expands your responsibilities state and understandings – high complexity ■ Beyond immediate job scope – Multiple functional authority note: For more information, please see Sprint’s Learning acceleration Jobs case profile in From the CoRpoRatE LEadERShIp CounCIL® Realizing the Full Potential of Rising Talent, Value II at www.clc.executiveboard.com. www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 42

On this pages are a selection of survey SuRVEY PARTICIPANT DEMOgRAPHICS responses from a diverse sample. ■ Over 50,000 survey Industry gender responses across industries and geographic regions. Restaurant, Retail, 12.5% other Industry prefer not to Respond 1.5% and Media 1.0% Leisure 1.0% 11.0% Consumer Goods utilities 1.6% telecomm- 13.9% Government, unications 1.7% nonprofit, and Education Female 45.4% 53.1% Male technology 8.8% professional 28.1% Financial Services 1.7% Services oil, Gas, and Mining 3.5% Manufacturing 7.2% 8.0% Insurance geography Age united States 26.0% 2.0% other ages 65 or More 0.5% 8.0% africa united Kingdom 19.0% asia 22.3% ages and Ireland 5.0% ages 45–64 26.2% 18–29 Middle East 1.0% 12.0% australia and new Zealand Continental Europe 9.0% Central and South america 18.0% 1.0% Canada ages 30–44 51.0% From the CoRpoRatE LEadERShIp CounCIL® www.clc.executiveboard.com © 2009 The Corporate Executive Board Company. All Rights Reserved. CLC4081623058 43

CLC Rebuilding The Employment Value Proposition Four Strategies To Improve Employee Effort And Retention

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