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Confidential. Global Discovery SMT CIRA, RIRA, CVGI, CNS Pain October 2008. Contents. Update on progress Talent Dialogue findings 2008 Reminder talent pool definitions and principles we agreed. Cross Functional Development Moves. Talent losses in 2007/2008. Where are we today?

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    1. Confidential Global Discovery SMT CIRA, RIRA, CVGI, CNS Pain October 2008

    2. Contents • Update on progress • Talent Dialogue findings 2008 • Reminder talent pool definitions and principles we agreed. • Cross Functional Development Moves. • Talent losses in 2007/2008. • Where are we today? • Global Talent Pool overview and changes. • Global Talent pool nominations. • Leadership capabilities, potential and performance overview. • Key development needs and proposed actions. • SWOT analysis. • Summary of actions and Next Steps • Summary of key next steps. • Pre-reads • Succession charts • Consolidated talent matrix • Development actions taken • Global and Functional talent pool nominations • Changes to Global Talent Pool.

    3. Laura Earnshaw: Simon, not sure how you will want to use the time so will leave you to update the timings Agenda • Update on progress (Simon x mins) • Talent Dialogue findings 2008 • Reminder talent pool definitions and principles we agreed. • Cross Functional Development Moves. • Talent losses in 2007/2008. • Where are we today? • CIRA Global Talent Pool Nominations (x mins). • RIRA Global Talent Pool Nominations (x mins). • CVGI Global Talent Pool nominations (x mins). • CNS Pain Global Talent Pool nominations • Talent Pool comments (x mins). • SWOT analysis review (All 30 mins). • Summary of actions and Next Steps (Simon x mins) • What does it mean to be in the Global Talent Pool? • Summary of key next steps. • Pre-reads • Succession charts • Consolidated talent matrix • Development actions taken • Global and Functional talent pool nominations • Changes to Global Talent Pool

    4. 2008 Talent Dialogue Discovery Results

    5. Global Discovery - 2008 Global Talent Dialogue results • Survey Background and Scope • This is the fourth year we have conducted a survey of individuals from the global talent pool. As last year, our objectives were to establish the views of our talent pool directly, and to do this via 1:1 dialogues to confirm the value we place on them. • As in previous years, many individuals commented that they valued the fact AZ was reaching out to them for their views, and that the experience of the dialogue was personally rewarding. • 126 Global talent pool members were surveyed across the organisation. Of these, 15 were from Global Discovery and 9 were included last year: • CSL– 6, HP–6 ,ET–3 • Male – 11, Female - 4 • The following slides show the results for Discovery for selected questions. They compare: • The 2008 Discovery results to Discovery results from previous years • The 2008 Discovery results to the 2008 AZ results (I.e All SET areas combined).

    6. Dialogue and Relationship with Line Manager Have you had a conversation with your line manager about you being in the Global Talent Pool? Global Discovery – 2008 Global Talent Dialogue results I feel recognised by my line manager for my contribution

    7. I receive very helpful feedback relating to my performance from my Line/ Project Manager Global Discovery –2008 Global Talent Dialogue results I receive very helpful feedback relating to my Development from my Line/ Project Manager

    8. How often do you receive feedback from your manager? Global Discovery – 2008 Global Talent Dialogue results Does your manager provide you with 1:1 coaching to assist your development?

    9. Individuals and their role I have sufficient scope to influence, for example – people, decisions, direction etc. Global Discovery - 2008 Global Talent Dialogue results I have sufficient challenges in my role e.g. high levels of responsibility, pressure deadlines etc

    10. Dialogue and Relationship with HR I receive very helpful feedback relating to my Development from HR Global Discovery - 2008 Global Talent Dialogue results My HR colleagues provide me with feedback and coaching that enables me to give good feedback to those who work for me/with me

    11. Career and Development Planning Are you clear on your career options and next steps? Global Discovery - 2008 Global Talent Dialogue results Do you have a quality Individual Development Plan that is up to date?

    12. I feel happy and settled with my employment and career prospects in AZ Global Discovery -2008 Global Talent Dialogue results

    13. Update on Progress

    14. The Global Talent Pool Individuals identified to have a strong track record of performance, demonstrate the appropriate Leadership Capabilities, have strong potential and have been identified to have the potential for the Top 200 roles in AZ, (i.e.SMT), regardless of their level today or how long it may take to get there. SET Focus Talent with potential for EVP and Top 50 critical roles within 5 years ET-VP potential 5+ years HP- VP potential 0-5 years CSL- Current VP with potential for broader or more senior roles Subset of Talent Nominated to Executive Focus Subset of Talent Nominated to Global Talent Pool Functional/SET Area Talent Pool Individuals who have been identified to have potential for key positions w/in the Functional/SET area (typically head of department at executive director level, reporting to VP) and potentially cross functional/SET areas regardless of their level today or how long it may take them to get there

    15. Ground Rules • Information should be shared openly and candidly • Cite specifics (not generalizations) of achievements and observable behaviors • Observations need to be personal, specific, timely • Support and constructively challenge peers • Listen; build on “the” conversation • Discussion is confidential and stays within this room • Be mindful of time • No sidebars

    16. 2008 Talent Review Principles Principles agreed at Dx SMT in June • Build and strengthen the Global Talent Pool, so that we are each excited by the individuals in the pool • For VP positions, candidates will first sought from the Global Talent Pool • If there are no suitable candidates then we would typically advertise (externally) • Clear succession candidates for each business critical position • Ensure suitable Director/VP positions are available to develop our key talent.

    17. Global Talent Losses *Source=POWERPoint slides from HR Partners and T&SWP Quarterly movement reports

    18. Laura Earnshaw: Simon, we have checked against all GBP submissions and our moves and losses data and cant find any more Cross-Functional Talent Moves *Source=POWERPoint slides from HR Partners and T&SWP Quarterly movement reports

    19. Where are we today?

    20. Global Talent Pool Changes • 31 nominees in 2007; 20 nominees in 2008. • 70% the same, 60% removed, 0% resigned • 25% new nominations.

    21. RIRA Johan Lund Thomas Eichholtz CVGI Peter Warner Craig Johnstone Hugues Dolgos Beritte Christenson CIRA Jeff Hanke Andrew Mortlock Graeme Smith Xiaolin Zhang Kevin Webster CNS Pain Fred Brown Philippe Walker Samantha Budd Julie DuCharme Adam Dudley Markus Haeberlein Johanna Lindquist Tim Piser Patrick Raboisson 2008 Global Talent Pool Nominations

    22. CIRA, RIRA, CNSP & CVGI - Consolidated SWOT Analysis Health of our talent pool in relation to our Strategy and Business Objectives?

    23. Action Planning and Next Steps

    24. What does it mean to be in the GTP? • Meet with a DxSMT mentor twice per year. • YSC personal assessment carried out to create individual development plan. • Prioritized for project/strategy work. • Expectation that they could be invited to apply for key senior vacancies – perhaps multiple times before being successful.

    25. Talent Action Plan for 2008/2009

    26. Next Steps • All GTP members to have dialogue with line manager about what it means to be in the GTP Q4 2008 • All those nominated for GTP but unsuccessful to have dialogue with line manager about why and the implications – this is critical in terms of retaining engagement Q4 2008 • Audit of line manager dialogues – to make sure that employees are hearing the right messages, e.g. confirmation of talent pool membership and what this means – Q4 2008 /Q12009 • SET meeting in December

    27. Development Actions agreed at August talent review • Simon to insert – as discussed

    28. Pre-reads Succession charts Consolidated talent matrix Development actions taken Global and Functional talent pool nominations Changes to Global Talent Pool

    29. Succession Charts

    30. CIRASuccession Planning for SMT Direct Reports and Business Critical Roles X

    31. RIRASuccession Planning for SMT Direct Reports and Business Critical Roles X

    32. RIRASuccession Planning for SMT Direct Reports and Business Critical Roles X

    33. CNS Pain Control RASuccession Planning for SMT Direct Reports and Business Critical Roles X

    34. CNS Pain Control RASuccession Planning for SMT Direct Reports and Business Critical Roles X ** Reflects splitting role into two when replacement needed

    35. Laura Earnshaw: Simon, we are waiting for Cecilia to confirm the available timeframes CVGISuccession Planning for SMT Direct Reports and Business Critical Roles X

    36. Consolidated talent matrix

    37. Discovery SMT Direct Reports – Consolidated Talent Matrix (Note if in role or with AZ 1 year or less) High Performance (track record vs. objectives during past 3 years) Medium Low Medium Low High Leadership Capability

    38. Development Actions Taken

    39. CIRAProgress Against Key Actionsfrom 2007/2008

    40. CIRASpecific Development Actions Takenwith Global TalentPool members

    41. RIRAProgress Against Key Actionsfrom 2007/2008

    42. RIRASpecific Development Actions Takenwith Global TalentPool members

    43. CNSPProgress Against Key Actionsfrom 2007/2008

    44. CNSPSpecific Development Actions Takenwith Global TalentPool members

    45. CNSPSpecific Development Actions Takenwith Global TalentPool members

    46. CVGIProgress Against Key Actionsfrom 2007/2008

    47. CVGISpecific Development Actions Takenwith Global TalentPool members

    48. Global and functional talent pool nominees

    49. CIRAGlobal Talent Pool nominees : (Clear Potential for Top 200 roles) NB – All are potentials for Exec 1 roles – Global RA Head

    50. CIRAFunctional Talent Pool nominees – Line Leadership