This document discusses Philips' Inclusion & Diversity strategy from 2012-2016. It notes that in early 2011, Philips was failing to meet targets for diversity in its executive population, with only 5% being female executives and those from growth market nationalities. The new I&D strategy aimed to fully embed diversity and inclusion into Philips' culture and talent management processes. A key part of the strategy was to support the grooming of diverse leaders through measures like globally visible talent pools, targeted succession planning for diverse candidates, and posting all roles publicly. By embedding these practices, Philips saw outcomes like an over 60% increase in female executives to 18%, and over 70% increase of executives from growth market nationalities to

1. Veronika Hucke, Global Head I&D
26 February 2015
Driving change systemically:
Philips’ Inclusion & Diversity
Strategy

2. 3 26 February 2015
Content
• Philips overview
• 2011 I&D status
• Agenda setting
• Strategy overview
• I&D in Talent
Management
• Outcomes
• Q&As

4. Early 2011 status: Diversity targets out of reach
3 26 February 2015
5%
5%
5%
0%
10%
2008 2009 2010 2011 2012
Target
Share of female executives Share of executives with
growth market nationality
10%
10%
11%
0%
15%
2008 2009 2010 2011 2012
Target

5. 4 26 February 2015

6. 3 26 February 2015
Aligning business and I&D strategy
• Markets
• Portfolio
• Talents

7. 5 26 February 2015
Understand and address cultural barriers
• Networked
• Western
• Extraverted

8. 13 26 February 2015
Philips I&D Strategy 2012 - 2016
I&D fully embedded in culture
change initiatives
Inclusive talent management Targeted plans for specific needs
Plan
Vision
D&I Framework
Deep leadership commitment

9. 8 26 February 2015
Driving cultural change VIDEO

10. 14 26 February 2015
Talent Management as key enabler for change

11. 12 26 February 2015
Old pool approach did not power I&D
• Pool composition
• Networked culture
• Lack of transparency

12. 18 26 February 2015
New approach supports I&D ambitions
Succession planning
considers MT diversity
requirements
Performance &
potential evaluated
of all employees to
identify succession
candidates.
Dedicated follow up
on diverse talents
External mapping
supplements non-
diverse plans
Targeted measures
to increase inflow of
diverse talents

13. 15 26 February 2015
Support grooming of diverse leaders
E.g.
• Visibility of talents globally
• Follow up on diverse candidates
• Strong succession plans = diverse
• All roles are posted

14. 15 26 February 2015
Outcomes
• D&I systemically embedded in competencies
and key HR processes
• Increased diversity of executive population
o 18% women, up > 60%
o 15% growth market nationals,
up > 70%