Building The Agile Enterprise Josh
Bersin President and CEO April 11, 2012

History of IMPACT® IMPACT IMPACT
IMPACT 2012 2008 2011 IMPACT 2010 IMPACT 2009 Troops Leave Iraq Elections Egypt Libya China War in Iraq Iraq Lebanon Tunisia Europe 100 M LinkedIn LinkedIn IPO Facebook LinkedIn 600 M Facebook Apple, Facebook Launch of iPad 40 MM users 33M users ~6 B Cell Phones ~8 B Mobile 2

Top Drivers of Change 1
Accelerated Globalization 2 Talent and Skills Imbalance 3 Emergence of BigData 3

The Global Auto Marketplace Automobile
Sales – U.S. vs. China 20 U.S. 17.7 million 18 Million Vehicles Sold 16 14 12.7 million 12 10 8 China 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 4

The Global Auto Marketplace Automobile
Sales – U.S. vs. China Sales of Mercedes-Benz Cars in China 20 U.S. 193,339 200,000 17.7 million 18 23,000 in Million Vehicles Sold December 180,000 16 14 160,000 12.7 million 127,763 140,000 12 120,000 10 100,000 68,541 8 80,000 China 6 60,000 4 40,000 2 20,000 - 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 5

Global Talent Imbalances India Graduates
Millions, but Too Few Are Fit to Hire 75% of technical graduates and 85% The Cultural Revolution of general graduates in India are created a “missing unemployable by India’s high-growth generation” of talent between industries, including IT and call 40-55, so expatriates fill many centers. jobs at the top Regional Leadership Young workers flooding the marketplace, yet most have BofA’s wealth management arm, Country Leadership weaker language and Merrill Lynch, plans to hire 2,400 technical skills. trainees in 2012, a 50 percent increase over last year. And these are now global positions. Middle Management Entry Level “We are entering the era of China unparalleled talent scarcity, which will put a brake on economic growth around the world, and will fundamentally change the way we approach workforce challenges.” Age 6

Specialization: The Expertise Economy
7

Has Created Challenges in ….
Young, Diverse Workforce Engagement In 2012, 32% of employees are “planning on leaving” their employers, vs. 19% two years ago Only 55% of employees believe their employer is a sound “long term” place to work vs. 65% over last three years. People under the age of 35 are twice as likely to be looking for new work as older workers. - Mercer October 2011 “By 2013, 47% of employees will be those born after 1977. -- US Census Bureau 8

The Age of Big Data
… Everywhere 9

#1 Risk Loss of Customers
#2 Risk Talent and Skill Shortages 10

A New Model of Management
WORKFORCE WORKPLACE Young Specialized Connected Diverse Global Performance-Driven Mobile Team-Oriented Employee New Models for Career New Models for Work Partner Manager Peer Mentor Customer Candidate THE AGILE ENTERPRISE Highly Connected Virtual Teams Collaboration to Meet Customer Needs Rapidly Using Data to Make Decisions New Models for Management 11

A New Model of Management
“In prior economic recoveries we have always rebuilt our organizations the way we did before. This time is different. We are not going back. We are going to be leaner, quicker, and have to do more with less forever onward.” - Pat Crull, CLO of Time Warner Cable, formerly CLO of McDonald’s 12

A New Model of Management
People are an appreciating asset Customers are now in charge 13

How CEOs Define Agility 1
Rapid Decision-Making 2 A High-Performance Culture 3 Flexible Management of Teams 4 Transparent Availability of Information 14

Which Business Functions Most Contribute
to Agility 1 Sales 11 …… 2 Marketing 12 ….. 3 Customer Service 13 Legal & Regulatory 4 Operations…. 14 Human Resources 15

New Rules and Roles for
HR Traditional Management Agile Management Focus on Control & Alignment Focus on Speed & Customers Creates: Execution, Order, Control Creates: Adaptability, Innovation, Speed HR’s Job: Implement controls, standards, and HR’s Job: Implement programs, systems, systems to drive alignment & execution strategies, which foster expertise, collaboration, and decision-making 16

17

18

19

Agile Software Development adaptability Agility
is… transparency charter funding Daily STRATEGY simplicity Scrum information RELEASE goals unity retrospective ITERATION release plan acceptance vision review DAILY Weekly backing standup Sprint CONTINUOUS iteration plan TOO build burndown refactoring integration collaboration velocity Working Scrum burnup Software Master tests Focus: Accelerate Delivery 20

The Agile Manifesto People over
process and tools Working software over documentation Customer collaboration over customer research Responding to change over following a plan …. 21

Building the Agile Enterprise Agile
Management Agile Leadership Agile Learning Agile Talent Acquisition Agile HR

Agile Management  Growth in
Coaching & Development Model  Change or abandon the rating  Goals frequently updated  Social rewards and recognition  New talent management software tools Myth: Management starts top-down. Reality: Management is all bottoms up. 23

Agile Leadership  Agile leaders
are experts (Steve Jobs)  They are hands-on managers  They serve as a coach  They are at all levels of the organization  Leaders have global awareness Myth: Leadership is for the chosen few. Reality: Leaders are at all levels. 24

Enabling Leader at All Levels
The Grundfos Talent Engine 25% • To realize our Innovation Intent and strategies, leaders are needed but they are not the only ones 18% 12% • We also look for the best experts in various fields • We look for innovators in all areas 10% • Assessment of their profile is done through a single talent centre • All employees in the company are engaged in leadership 9% 26% 25

Agile Learning  Continuous learning
environments  Understand the capability model  Performance consulting, not just design  Globalize L&D function  Growth in mobile and gaming  Relentless focus on learning culture Myth: L&D builds blended programs. Reality: Learning is continuous and cultural. 26

Agile Talent Acquisition  A
continuous, never-ending process  Employment brand as core  Mine the referral network  Social media and new technology  Leverage and use BigData Myth: Talent Acquisition is recruiting. Reality: Talent Acquisition is continuous. 27

Agile HR  Redefine the
mission of HR  Engagement as a strategic weapon  Transparent access to talent information  Integrated talent technology  Globally integrated operating model  Deep skills within the HR team Myth: HR must be a global service center. Reality: HR needs a global operating model. 28

Role of BigData  Transparency
of business and workforce information  Analytics as a journey, not an end  Develop culture of data-driven decision- making  Empowers line leaders, not just HR and L&D Myth: Build an HR Data Warehouse Reality: Deliver Actionable Business Information 29

30