Avoiding the Talent Traps Lessons in Selecting, Managing and Retaining Key Talent

1. Avoiding the Talent TrapsLessons in Selecting, Managing and Retaining Key Talent June 23, 2010 Katie Lemaire

2. Beware the talent traps • Talent is a critical success factor for biotech companies • Massachusetts has an abundance of critical talent • However, availability doesn’t guarantee success • The talent traps • The practices that got you to where you are…likely won’t get you to the next stage of growth

3. Talent challenges vary

4. Talent trap #1: What you see is what you get

5. Necessary for top performance but not sufficient Easier to seeand develop Competencies:What you see is NOT what you get Skill Knowledge Social role Self-image Traits Motives Characteristics that lead to longer-term success Harder to seeand develop

6. Competencies:What you see is NOT what you get • The need for Achievement: • The desire to engage in activities that satisfy testing of oneself against a measurable standard of excellence • The need for Affiliation: • The drive for engaging in activities that enable the establishment or maintenance of close personal ties • The need for Power: • The concern for having impact or influence on others that results in: • Others feeling stronger and more capable following interaction (Socialized Power) • Making oneself feel stronger and more capable (Personalized Power) 100 90 80 70 60 50 40 30 20 10 0 100 90 80 70 60 50 40 30 20 10 0 Achievement Affiliation Power

7. Motive profile of scientists 100 90 80 70 60 50 40 30 20 10 0 100 90 80 70 60 50 40 30 20 10 0 High performing scientist Average scientist Achievement Affiliation Power

8. Competency model for scientists Leveraging Knowledge Through Collaboration:

9. Competency model for scientists • Driving Innovation • Innovative problem solving • Embracing challenge • Creating Collaboration • Leveraging knowledge through collaboration • Self-awareness • Perception of others’ strengths and needs • Sustaining the Business • Leveraging science for impact • Customer communication • Developing other scientists* • Baseline Competencies • Analytical thinking • Influence without authority • Organizational awareness Sustainingthe Business Sustainingthe Business Sustainingthe Business CreatingCollaboration Driving Innovation

10. Interviewing for competencies 18 16 14 12 10 Number of Stories 8 6 4 2 0 Tech. Diff./innovation Outsidereputation Time to market Truth-telling Outstanding performer Average performer

11. Lessons learned • Treat each hire with the appropriate risk that it deserves • Develop a competency model for critical roles • Review existing talent to determine those that are better performers than others • Identify the attributes that differentiate them • Use these criteria to hire others • Use behavioral event interviewing to look for ‘below the water line’ competencies • Set up the ‘story’ • Ask people to describe their role • Probe for what they did, how they felt and what they were thinking

12. Talent trap #2: The best performer makes the best leader

13. Leadership requires different competencies 100 90 80 70 60 50 40 30 20 10 0 100 90 80 70 60 50 40 30 20 10 0 Outstanding sales manager Outstanding sales rep Achievement Affiliation Power

14. SalesVolume(x 10,000) Ready now Ready in 6-18 months Ready in 18-24 months Not a fit for the role Every one point drop in the readiness scale is = to a $1.28 million decline Leadership requires different competencies • Overall readiness for managerial roles

15. Lessons learned • Understand the ‘step changes’ in the talent requirements for leadership positions • Articulate and agree on the competencies common for leadership positions in your organizations • Review existing talent to determine those that are better performers than others • Identify the attributes that differentiate them • Use these criteria to select/develop and promote others • Invest in developing leadership capabilities • Off-the-shelf solutions

16. Talent trap #3: An engaged staff is enough

17. Engagement is insufficient • Clear strategic direction • Confidence in leaders • Quality and customer focus • Respect and recognition • Development opportunities • Pay and benefits Results Enhance individual performance / productivity Drive business performance employee effectiveness Drivers Attract and retain talent Operational excellence and quality • Performance management • Authority and empowerment • Resources • Training • Collaboration • Work, structure, & process Employee enablement • Optimized roles • Supportive environment Improve customer satisfaction and loyalty Establish innovative, competitive organization Hay Group’s employee effectiveness framework • Employee engagement • Commitment • Discretionary effort

18. Employee performance Employee retention Customer satisfaction Financial success Engagement is insufficient Increase in employees above performance expectations Reduction in turnover rates Customer satisfaction rates Revenue growth High engagement only 10% -40% 71% x2.5 High engagement and high enablement 50% -54% 89% x4.5 Based on linkage case studies using Hay Group’s global normative database

19. Engagement is insufficient Engagement and enablement go hand-in-hand Enablement 1 in 2 Engagement

20. Lessons learned • Don’t be caught off guard • Clarify your governance and decision making • Build discipline before you think that you need it • Listen to your employees (and former employees) • Connect employees to the big picture • Identify and communicate opportunities for growth • Strengthen the capabilities of your leaders