Work Force Planning Initiative CEWD Regional Conference – Columbus, Ohio

1. Work Force Planning Initiative CEWD Regional Conference – Columbus, Ohio By Ray Kelly IV August 26, 2008

2. Points to discuss in this setting • How/Why did we get started • How did we get leaders and the businesses engaged • What do you use the information for… WIIFM? • Benefits?

3. How/Why did we get started • Defined Workforce Planning architecture • Evolving standard processes and tools • Build standard containers for reporting information • Standard outputs fold into our business process • Get a much broader reach of people involved

4. How did we get leaders and the businesses engaged • Emerging information on workforce attrition • Recognition by the CEO and BOD • Formed a cross functional team, lead by HR • Gave the leaders something to work with and shared issues and improvements • Helped leaders tie their strategy to their workforce demographics to their training plans

5. What do you use the information for… WIIFM? • To fully understand and present knowledge retention strategy; within and across Business Units. • Deciding how to prioritize job classifications/hiring plans • Assess recruitment strategies and modify as required • Develop training delivery plans for qualifying/re-qualifying the workforce • Training Development plans

6. What are the Benefits of an Exercise like this? • Tied to operations plans and future strategies, improving opportunity for success! • Support from HR to use standard processes and tools • Uniform output should speed up the review and approval process with Senior Leaders • A more complete picture of the issue(s) and potential impact to the Enterprise • Improved input into the Recruiting, Staffing, Training, and Budgeting processes • Leverage the learning across the businesses AND have HR operate the process This should eventually give us a better long range plan for managing Knowledge and Skill Retention

7. APPENDIX

8. A High level Architecture - A few Model/Module descriptors

9. This is the DTE team charter. • Other charters developed: • Distribution Operations • Fossil Generation • Mich Con • Customer Service • Corporate Support • Finance • Nuclear Generation

10. We built the “Swim Lanes” to show the work process requirements. Swim Lanes • Provides role clarity and output ownership • Documents process steps and outcome expectations • Defines the timing required • Not every step required to be series • Frequent check in required • Created to develop consistency business unit to business unit • Shows linkage to our Enterprise planning cycle

11. The modeling tool sorts SAP data and pre-populates reporting templates This modeling tool can be run by each Business Units HR representatives

12. One of the pre-populated output reports 0202 Fossil Generation Years of Service vs Age • Average Retirement (AR) age and YOS for this work group, from 2002 through 2007 has been 59 and 37 years. • Learning period for promotion from feeder group(s) is 4 years. • Feeder group ready now = 3. • Suggestions: • Promote the 3 ready now. • Development guides required for 6 others • Hire X because 6 “for development” are not available. AR EXAMPLE, for illustration only! The proposed staffing projections may be modified at anytime and do not represent a guarantee of minimum or fixed hiring commitments or general staffing levels for any of the groups or locations listed, and that work locations, manpower deployment and staffing levels may be modified by management at anytime subject to changing service requirements, or productivity improvements or for any other allowable purpose. Management retains all legal, equitable and contractual rights to direct and adjust its workforce including, but not limited to, the right to hire, promote, transfer, discharge, suspend or demote.

13. Movements Into Movements Out of Data Range: 2006 - 2007 Current as of: July 9, 2008 Job Titles Comments Area: Promotions out of Job Demotions into Job Terminations / Retirements New Hires 22 0 0 3 / 0 Staff Engineer Financial Associate Applications Engineer Fin&T - 1 - 25% DTECH - 1 - 50% 2 4 Current: 15 Principal Market Engineer Associate Engineer - ESO Career Progression FG - 1 - 25% FG - 1 - 50% Senior Strategist - Energy Distribution 7 0 ED - 1 - 25% Internal Movements into Job Internal Movements out of Job Legend Demotions Internal Movement Descriptions Promotions into Job Internal Movement Descriptions Demotions out of Job Ext Hires Promotions Terminations & Quits / Retires Internal Movement Into Job Current HeadCount (excl prom & dem) Internal Movement Out of Job (excl prom & dem) Note: All counts represent total employee movement in the time frame chosen Internal Movement Descriptions Key Job Title Dept - Bldg - # moves - % movements The proposed staffing projections may be modified at anytime and do not represent a guarantee of minimum or fixed hiring commitments or general staffing levels for any of the groups or locations listed, and that work locations, manpower deployment and staffing levels may be modified by management at anytime subject to changing service requirements, or productivity improvements or for any other allowable purpose. Management retains all legal, equitable and contractual rights to direct and adjust its workforce including, but not limited to, the right to hire, promote, transfer, discharge, suspend or demote. Attrition AnalysisOutput Breakdown

14. Movements Into Movements Out of Data Range: 2006 - 2007 Current as of: July 9, 2008 Comments Area: 0 3 / 4 Principal Engineer - Energy Distribution Supervising Engineer Manager - Turnkey Projects DO - 3 - 37.5% DTECH - 1 - 100% 1 Current: 33 8 Supervising Engineer-Community Lighting DO - 1 - 12.5% Supervising Engineer & Ombudsman 8 0 DO - 1 - 12.5% 0 10 / 7 Senior Engineer Supervisor - Ombudsman n/a DO - 1 - 50% n/a - 1 - 100% 1 Current: 71 2 Senior Strategist - Energy Distribution DO - 1 - 50% Career Progression 22 0 0 3 / 0 Staff Engineer Financial Associate Applications Engineer Fin&T - 1 - 25% DTECH - 1 - 50% 2 4 Current: 15 Principal Market Engineer Associate Engineer - ESO Legend FG - 1 - 25% FG - 1 - 50% Demotions Senior Strategist - Energy Distribution 7 0 ED - 1 - 25% Ext Hires Promotions 0 4 / 0 Associate Engineer Terminations & Quits / Retires n/a n/a - 1 - 25% 4 Current: 12 0 Internal Movement Into Job Student Co-Op1 (excl prom & dem) DO - 1 - 25% Internal Movement Out of Job Senior Technician - System Underground (excl prom & dem) DO - 1 - 25% Internal Movement Descriptions Key Job Title Dept - Bldg - # moves - % movements The proposed staffing projections may be modified at anytime and do not represent a guarantee of minimum or fixed hiring commitments or general staffing levels for any of the groups or locations listed, and that work locations, manpower deployment and staffing levels may be modified by management at anytime subject to changing service requirements, or productivity improvements or for any other allowable purpose. Management retains all legal, equitable and contractual rights to direct and adjust its workforce including, but not limited to, the right to hire, promote, transfer, discharge, suspend or demote. Attrition AnalysisSample Output (4 Jobs)Can do as many as 5 jobs.

15. Training Development Curriculum / Course Development Total number of employees affected Estimated length in hours SME availability Media Classroom, Web, Blended Desired completion date New training materials Existing training materials Prioritization rating form Curriculum or course analysis required Submit worksheet to TTO DO Process Improvement Consultant Worksheet and instructions will be posted on Performance Measurement website Another Output, Training Plan:14) Training Plan Overall Training Plan Overall Presentation Slide Training Plan Overall Presentation Slide Job Classifications – Business Group • Job Classification & number of hires • Job Classification & number of hires • Job Classification & number of hires