Talent Management, Becoming part of the Equation Sonserae Toles; Siemens Hank Riehl; Skillsoft

1. Learning: Re-Imagined Talent Management, Becoming part of the Equation Sonserae Toles; Siemens Hank Riehl; Skillsoft

2. Agenda • Siemens; A Brief Overview • The Talent Management Landscape • Implementing Talent Management at Siemens • Group Discussion; Q & A

3. Siemens Overview March 2009

4. Siemens: A Global Integrated Technology Company

5. Every business day… • …We help the U.S. Postal Service process all letter mail delivered to American homes and businesses • …We filter one in ten glasses of water consumed by Americans • …We help treat more than 30,000 cancer patients with our radiation therapy systems • …We process 170 million U.S. healthcare information transactions • …We help provide baggage security services in 450 of America’s commercial airports • …We average more than five new U.S. patents to help improve the lives of millions of Americans

6. What is Talent Management ? • The fostering of Employee Development • According to an organizational master plan • That serves organizational short-and-long-term strategic goals • Using a universally defined and applied set of methods and analytics • In short, taking the randomness out of the Employee Development process that exists in so many organizations

7. What is expected from TM ? • Some or all of the following • The right person qualified-for, and in the right job today • People prepared (or preparing) for greater responsibilities • Plans and Readiness for effective Succession • Consistency in evaluations & appraisals (Performance Management) • Learning solutions aligned with organizational needs (consistent, pertinent, better ROI) • Embraced by the rank-and-file; fairness, opportunity, mobility

8. TM Implementations; Approaches • Performance Centric • Structured Performance Appraisal is the hub • drives development plans, tracking of same, succession, promotion-readiness, etc. Common criteria (competencies) allows roll-up of data and talent-searches. • Competency Centric • Process purposely kept separate from Performance Appraisals (non-threatening) • Self and 360 assessments (not attached to salary) in place of Performance Appraisals (which still exist) • Otherwise similar to PM in methods • Learning & Development Centric (Implicit TM) • Learning Programs engineered to meet explicit needs • Assigned, tracked and reported-upon

9. Talent Management evolving at Siemens

10. Current State: Duplication/Decentralization & Cost • What we found: • Process • Inconsistent processes, tools, systems and methodologies used to facilitate and support common efforts and programs • Cost • Duplication of efforts and resources • Country wide forecasted training spend increasing 25% from FY07 to FY08 • No controls to manage inflating costs • Strategy • No cohesive strategy for learning and development across the US to drive financial and resource investment • What are the Implications? • Process • No/little training for some operating companies • Lack of consistent learning/development strategies limit leadership pipeline • No standard certification of “quality” • Cost • No/limited tracking/analysis/ measurement • Unable to make effective decisions about financial investments and project prioritization • Strategy • Unable to develop a common set of leadership skills across Sectors • Unable to make investment decisions with full transparency

11. Desired State: Cost-Effective COE Project Charter: The purpose of this project is to drive out 25% General & Administrative (G&A) costs for HR in the areas of Learning, Leadership and Development (L&LD). L&LD is defined for purposes of this project as: OD, Leadership Development, Learning and all of their respective sub-processes. This will be done by bundling governance, standardizing processes and sharing where appropriate. All options to decrease costs and to simplify and/or eliminate overly complex/non-value added processes will be considered, while maintaining the same level of quality.

12. COE Development Process Establish Cross-Sector Steering Com. Bundle Define Savings Develop Model Inventory & Analyze Organize Topic Sub Teams -Inventory -Value -Cost -Cross-Sector Applicability -Learning -Development Programs -Diagnostics -OD -PMP -HRVP Nominated L&LD leaders -US Project -Americas Project -Global Project -Continuity -Cost Effective -Metrics -Est. 1.5M -Vendor Mgmt

13. Solution: Integrated L&LD Concept • Bundle non-technical learning solutions and staff to apply strategic framework for the delivery and measurement of output • Standardize development programs by applying appropriate structure at the right time / level, and measuring the outcomes • Establish continuity within and between learning and development programs by improving synergies and reducing costs Using a Competency-Driven Strategy: Leadership & Development Early Career, Exempt Level+ • Drive a high performance culture • Build a global diverse talent pipeline • Build strategic competencies though education, learning & development • Create “Enterprise Premium” Learning Learning Future L&D state creates competitive advantage in attracting, developing and retaining people

14. Development Program Roadmap

15. How’d it Work? We don’t know (yet) • This is all a plan right now… • It gets implemented in October… • What are your thoughts? • Strengths • Weaknesses • Risks • Have you attempted something similar? • Results ?

16. Questions / Observations • Thank You • Sonserae Toles; Siemens • Hank Riehl; Skillsoft