IBM Strategy & Transformation

IBM Strategy & Transformation A Global Transformation with Oracle - Taleo Recruitment Using IBM’s Rapid Deployment ApproachA case study in delivering a recruitment delivery model that achieves leadership and connectedness 1

Agenda • The Company • The Business Issue • Our Approach • The Solution • IBM’s Methods & Approach • IBM’s Qualifications & Capabilities

Agenda • The Company • The Business Issue • Our Approach • The Solution • IBM’s Taleo Methods & Approach • IBM’s Qualifications & Capabilities

The Company • For 85 years making sustainable progress and positive change on every continent. • The world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, mining equipment, industrial gas turbines and diesel-electric locomotives. • A leading services provider to their customers for Financial Services, Remanufacturing Services, logistic Services and Progressive Rail Services

The Business Issue • Recognized a need to develop a global sustainable talent pipeline to compete in the global marketplace • Identified constraints with their internal talent pool due to rapid growth in emerging markets including recent mergers and acquisitions • They realized that In order to achieve their business growth goals they needed to simplify, improve and standardize recruiting processes. They needed to identify and select the best talent while rewarding and recognizing their current employees for delivering.

Our Approach • IBM assisted in assessing their current capability through a talent process and execution constraint analysis. • Based on that analysis we developed a targeted end state, which included people, process and technology recommendations • Presented a compelling new option and constructed a roadmap with they could achieve their goals and offered assistance to help implement the solution using our rapid deployment methods and tools

Agenda • The Company • The Business Issue • Why IBM • Our Solution • IBM’s Methods & Approach • IBM’s Qualifications & Capabilities

Our Solution • Included a new delivery model for recruitment – including a redesign of the people, process and technology associated with the end-to-end recruiting process • Utilized IBM Best Practice methodology and tools for a rapid deployment of a global solution • Integrated with the implementation effort we provided change management, a communication plan and communication support to engage key stakeholders in the transformation effort • Partnered with Oracle to deliver new recruitment technology using Taleo in a SaaS model • Provided language translation services, training development, interface development to PeopleSoft as well as post go-live support for end users.

Our Solution • Utilizes high performer profile information to target top candidates • Reaches out to the right candidates easily with tailored career sites • Connects to social networks like Facebook and LinkedIn • Makes recruiters and hiring managers more effective with intuitive recruiting tools • Enables direct access to Taleo through email and mobile devices • Selects the best candidates using multi-tiered screening and assessments using passport partners • Seamlessly on boarding new hires and getting them productive fast.

Agenda • The Company • The Business Issue • Why IBM • Our Solution • IBM’s Methods & Approach • IBM’s Qualifications & Capabilities

IBM’s Rapid Deployment Methodology and Approach Streamlined global tools, strong business controls, standard global processes and data, and consistent employee experiences are key to IBM’s methodology Different HR service delivery models Fragmented and aging systems Inconsistent local policies, terms, and processes To minimize business risk and address these challenges we elected to use IBM’s proven best practice delivery model methodology

Driving leadership and connectedness in today’s business environment requires focus on the workforce 14 • Increasing Shareholder Value – Talent is a Competitive Advantage • The ability to manage growth and innovation, drive productivity and gain a competitive advantage from the workforce is growing in importance and focus, leading to: • Top Line Growth via maximization of talent • Talent Cost Optimization (“Talent in the right role at the right time”) • Innovative retention & reward strategies • Recognition of the value of being an “Employer of Choice” • Leading through connections – Empowering Employees through values • Our 2012 CEO study offers important insights into the future of organizations and the workforce imperatives: • Organizational transparency introduces new opportunities to create value through collaboration • To re-balance control with openness, CEOs are focused on values, collaboration and mission through structured yet innovative methods of communication • Outperformers embrace greater openness, and excel at executing tough change • The Changing Workforce – Cultural Intelligence & Adaptability • External forces are changing the way that we need to look at the workforce we have and the workforce that we will need. These forces include: • Changing demographics and buying behaviors • Accelerated globalization including global economic trends

Supporting the workforce strategy, integrated talent management drives both strategic and operational benefits Leveraging talent programs to gain competitive advantage through optimized workforce performance $ $ Optimize workforce productivity and engagement, develop and retain “top talent” Learning & Development Rewards & Retention Succession Planning & Management Performance Mngt. & Career Planning Workforce Planning Strategic Performance Planning Workforce Management Global HR Talent Strategy Operational Talent Acquisition Knowledge Management Time/Leave Management Flexible HR Infrastructure, Reduce costs, improve efficiency Benefits $ Payroll Maximizing the efficiency of HR support operations 15 This diagram is adapted from Lawson Software, Inc. and is used with their permission.

IBM’s Rapid implementation approach addresses each of the elements of workforce and talent planning… Career Development & Learning Talent Acquisition Goal Alignment Performance Management Succession Planning Workforce Strategy Rewards Management Strategic Practice Integrated Practice Standard Practice Basic Practice Gaps in Practice Talent Management Areas Current HR practice maturity <Client> current maturity 16

…and leads to a multi-phased journey • Plan and manage implementation Build support capabilities • Deliver learning in talent processes and technologies • Deliver talent analytics program • Ensure value realization • Communicate results to stakeholders • Promote continuous improvement • Define business requirements • Select talent management solutions • Assign and align organizational responsibilities • Implement leading practices in talent management • Align performance & reward programs • Align career development and career mapping framework • Develop leadership capabilities and measurement program • Assign and align organizational responsibilities • Define competencies • Align organizational talent goals • Innovate and optimize people programs • Define future talent management processes • Ensure ongoing stakeholder involvement through change and communications network • Establish the integrated talent management vision & values • Assure strategic fit • Communicate the compelling reason for change • Develop change and communications plan of change • Establish governance • Create the roadmap and coordination Levers for Change 4 Levers for Change 3 Levers for Change 2 1 17

Getting Started: The GBS Workforce and Talent Assessment is assessment of current workforce strategy providing recommendations and roadmap for action Talent Culture • Key Job Roles defined • Flexible Hiring & talent strategy • Skills & Competency • Hybrid Learning strategy • High performance strategy • Diversity strategy • Value based climate strategy • Collaboration strategy • Innovation strategy Organization Design • Business Model Innovation • Enterprise Function design • Governance Strategy Leadership Business Objectives Readiness for Market • Competencies to achieve global business strategy • Key leader roles – current and future • Leader effectiveness strategy Talent & Workforce Strategy People Strategy Organization Values 18

Workforce and Talent Assessment – Sample Output

Taleo Recruitment Accelerators

2. Assign Accountability 3. Assign Timeline 1. Document 4. Work 5.Review Status 6. Escalated (if needed) 7. Document Resolution 8. Sign Order & Close IBM’s project governance approaches mitigate project risk Risk Management Scope Management Issue Management Program Management

Agenda • The Company • The Business Issue • Why IBM • IBM’s Methods & Approach • IBM’s Qualifications & Capabilities

Transform HR/Pay Strategy &Transformation Attract and Retain Workforce & Talent Mgmt Motivate and Develop Deploy and Manage Payroll Solutions Connect and Enable & Sustain Human capital expertise and resources for our clients IBM’s HCM Value Proposition Leading HR Services provider and innovator Applied research, thought leadership and benchmarking Unique HR business and process models, methods & tools Software solutions from IBM and alliance partners Specialized service capabilities and expertise In-house world-class HR operation + + + + • Over 2,000 human capital professionals in 42 countries experienced in collaborating with client organizations to develop and deliver solutions in our focused HCM service areas • To understand today’s top HR and Learning issues and develop innovative solutions -- investment in our people,research and thought leadership, models tools and other assets, strong alliances with key vendor partners and collaborating with our own industry-renowned HR organization

How IBM is different? - Human Capital Thought Leadership Institute of Business Value • 6 Recent studies IBM’s HR Transformation • $185M Global workforce talent initiative • 50 client briefings over last 18 months HCM Benchmarking Team • 600 HCM Metrics • 180 HCM Leading practices • 50 Detailed and current HCM Case Studies • 9 Detailed Surveys covering different HCM functional areas • Online tools for survey collection and statistical analysis • Working beyond Borders:Insights from the Global Chief Human Resources Officer Study • Focal Jobs: Visualizing talent through a different lens • Collective Intelligence:Capitalizing on the crowd • Getting Smarter about Your Workforce:Why Analytics Matter • The personal side of business continuity:Addressing human capital management during crises • Cultivating organizational creativity in an age of complexity:A companion study to the IBM 2010 Global Chief Human Resource Officer Study

IBM’s Qualifications – Oracle / Taleo HCM Capability • Largest Global PeopleSoft Practice with over 10,000 dedicated Oracle practitioners • More than 1500 successful engagements • Partnership since 1986 • Sandbox for demos and client workshops • IBM was one of only 3 vendors involved with the testing of PS 9.1 prior to release • Our PeopleSoft V2V delivery method allows us to accelerate project timelines, mitigate project risks, and deliver consistently excellent results • Largest Global eBS HCM Practice with over 500 dedicated Oracle practitioners • More than 200 successful engagements • Sandbox for demos and client workshops • Continued investment in Foundation offerings over 6m USD to date and currently Foundation solutions are deployed in over 24 countries • More than 100 trained practitioners • Offshore solution center to reduce project cost • Pre-configured solution that includes • Process flows • Integration • Reporting • Sample clients are: • Over 1500 consultants received distance learning • Over 50 consultants trained on Fusion HCM track. Planning to train another 500 by the end of 2012 • One of five partners in the rapid start program

Why IBM? • Our Consulting Style - The consulting style of our people is widely known throughout the industry as one built on the foundation of cooperative teamwork, commitment to quality, trust and respect. Our seasoned HCM specialists will work shoulder-to-shoulder with client project team members and their suppliers to form one cohesive, integrated team dedicated to the success of this project • Our Global Reach – Our size enables us to serve the global needs of our clients on a tailored and expedient basis. IBM employs 388,000 employees in 170 countries world wide. We has the largest and most experience PeopleSoft team amongst all of the system integrators. Our consultants have an average of 7+ years of product experience and 5+ years of industry experience • Business-focused approach – We have a successful track record in implementing best practice HCM processes and achieving benefits realization while maintaining the Taleo package standards. • Integrated Service Offering Capabilities - IBM can provide a full array of integrated services to support our Taleo HCM projects including leveraging our leading HCM and Strategy and Change Consulting practices, and integration Application Management Services (AMS) and/or Application Hosting Services for system support of the project or new system.

IBM Strategy & Transformation