Next Generation Workforce, CEWD and Succession Planning March 2016

Agenda Workforce Challenges Overview CEWD Discussion Succession Planning NRECA Next Generation Workforce Goal

Global Talent Shortage 58% of global CEOs concerned about availability of talent Over next decade, ~52% of industry has potential to leave Not enough skilled workers to: Build new infrastructure Maintain and repair equipment Operate facilities and new technologies 14,400 co‐op / PPD jobs to be filled in the next 5 years

National Co-op Retirements 3,496 Source: NRECA Data Warehouse (Jan 2016)

National Co-op New Hires 2015 Hiring Percentages Gen Z (Ages 5 - 19): 3% Gen Y (Ages 20 – 35): 53% (Millennials) Gen X (Ages 36 - 51): 31% Baby Boomers (Ages 52 - 69): 13%

Retirement Eligible Employees Missouri Co-ops Retirement Eligible Employees Within Next 5 Years

Missouri Co-op Workforce Statistics ** All data are estimates based on NRECA data for distribution system employees 2014 4,136 315 7.6% 2015 4,385 132 3.0% Source: NRECA data for distribution system employees as of 01/2016 © NRECA, all rights reserved.  May not be copied, reprinted, published, translated, hosted or otherwise distributed by any means without explicit permission.

Shrinking Rural Workforce White areas are urban counties Compiled from Bureau of Labor Statistics (BLS) Data

Changing Demographics From 2010 – 2035: The Non-Hispanic White Majority will drop from 65.3% to 54.1 % The Hispanic population will nearly double from 51 million (16%) to 98 million (25%) The Asian population will grow from 15.7 million (5.1%) to 28.7 million (7.4%)

Generation Considerations Pulled from NASA’s Generation Y Perspectives presentation

Next Generation Workforce Challenges Rural Electric Utility Co-op Three Major Challenges: Attracting qualified employees from a smaller pipeline of candidates at the pace needed Retaining our new generation of co-op employees Loss of knowledge through retirements and attrition How do we leverage the positive attributes of these three co-op characteristics to solve the challenges identified above?

Succession Succession Planning Development Future Potential Plans Mentoring Performance Strategy Management Succession Plans NineBox Future Talent Leadership Development Mentor Assignments Stretch Experience Potential Planning Learning Agility

Agenda for Today’s Succession Planning Discussion What I have skipped: What is succession planning and why is it important? What are the keys to effective succession management? How to gain executive buy-in for succession planning. What I plan to discuss: A practical approach to succession planning for an organization of 25 employees. Caring – Succession planning is about caring … caring for your people, caring for your organization and caring for your members. Reality check: Most companies that have well defined formal succession plans are larger (all about the numbers); Most co-ops will have more of a challenge due to limited staff size, location, budget

5 Practical Steps + Communication ID Key Positions Assess Available Talent Create Readiness Chart Document Bench Strength Create Development Plans Communication

ID Key Positions CEO (Stan) EA (Jane) Operations Director (Steve) Member Services (Susan) Engineering (Mary) Eng 1 (Donald) Eng 2 (Stanley) Eng 3 (Cindy) Eng 4 (Norman) HR (Adam) Finance (Brian) Accounting (Cindy) Billing (Jake)

ID Key Positions Key Positions

Assess Available Talent for Key Positions Key Position Title: Position Vulnerability: Incumbent Name: (Open in < 1yr, 1 – 3 yrs, 3+ yrs) Cooperative.com HR Community: Succession Management Toolkit

Assess Available Talent for Key Positions Potential Performance

Create Readiness Chart Key Position Title: Position Vulnerability: Incumbent Name: (Open in < 1yr, 1 – 3 yrs, 3+ yrs) Dale Carnegie: Succession Planning for You and Your Managers

Document Bench Strength CEO (Stan) EA (Jane) Operations Director (Steve) Member Services (Susan) Engineering (Mary) Eng 1 (Donald) Eng 2 (Stanley) Eng 3 (Cindy) Eng 4 (Norman) HR (Adam) Finance (Brian) Accounting (Cindy) Billing (Jake) Bench Strength (within 1 year) 0 Successors 1 Successor 2 or More Successors

Create Development Plans Development Plans for All Employees Overall performance summary Key strengths Development Needs Development Actions On The Job Special Assignment Training

Succession Planning Communication Balance transparency with discretion Succession planning deals with sensitive issues. Take time to assess who needs to know what There will always be a degree of subjectivity and fluidity in your analysis of potential successors. Which types of information can and should be made public, shared internally or treated as highly confidential? Share your formal process and key criteria for choosing successors Being able to justify your reasons builds staff trust and engages your top performers in a clear development path to success. http://kallidus-blog.com/2014/01/08/communication-succession-planning/

CEWD Mission Build the alliances, processes, and tools to develop tomorrow’s energy workforce Industry Solutions – Regional Implementation Career Awareness Education Workforce Planning and Metrics Structure and Support First partnership between utilities and their associations – EEI, AGA, NEI, APPA and NRECA to focus solely on workforce issues Incorporated as a non-profit in March 2006 Utilities, associations and supplemental labor contractors join as members Members partner with educational institutions, workforce systems, and unions to create mutually beneficial employment solutions More than 112 members from large IOU’s to smaller cooperatives and municipalities that represent about 90% of employees in Electric and Natural Gas Utilities CEWD collects national workforce data, develops industry workforce solutions and assists members and their state consortia in regional implementation CEWD focuses on talent pipeline development for Key Jobs that require unique skill sets and have suffered from retirements and attrition over the last decade: line workers, power plant operators, technicians and engineers CEWD’s strategic plan is based on four pillars: Career Awareness, Education, Workforce Planning and Structure and Support

CEWD members in more than 30 US states also participate in state energy workforce consortia Consortia bring together energy companies, education partners, workforce systems and relevant governmental agencies in the state to tailor energy workforce solutions. A key benefit is nationwide learning and access to best practices. In this way, CEWD is able to provide its members with a “smart grid” of talent development expertise It’s all about collaboration, learning and leveraging

Essential Elements of Workforce Planning Organized Workforce Planning Structure and Support Strategic Workforce Priorities and Implications Workforce Risk Analysis Map of Current and Future Workforce Strategic Workforce Analysis Short and Long Term Talent Requirements BUSINESS PLANNING WORKFORCE ANALYTICS Link Workforce Needs to Corporate Business Strategies Forecast Talent Needs Cross Functional Collaboration Talent Pipeline Development Effectiveness Internal Employee Development Effectiveness Feedback for Continuous Improvement Short and Long Term External Talent Pipeline Development Internal Employee Development Knowledge Capture and Retention EXECUTION & METRICS WORKFORCE DEVELOPMENT Workforce Planning: A national template for Strategic Workforce Planning with tools, templates, best practices The Gaps in the Energy Workforce Survey for the electric and natural gas utility industry. State by State Demand Reports on utility employment and forecasted demand Strategic Planning Tools and Templates http://www.cewd.org/wizard/consortium/strategic-planning-materials.php Contractor Demand Analysis Toolkit http://www.cewd.org/toolkits/contractordemand.php Measure Results Build Internal and External Talent Pipeline

Career Awareness A National Brand, Get Into Energy, that is customizable for companies and consortia and an accompanying website: http://getintoenergy.com/ Branding material, toolkits, best practices available for each targeted demographic Coordinated Careers in Energy week activities through State Consortia Get Into Energy Jobs and Troops to Energy Job microsite: A searchable database of real-time job vacancy announcements from all CEWD member utility websites which is accessible to job seekers.

Troops to Energy Jobs Website Step by step Roadmap for Veterans Virtual Coach at any point in process Jobs Microsite for all CEWD member company positions with exclusive occupation translation Registration site Specialized TEJ website for veterans with roadmap for entering utility jobs. www.troopstoenergyjobs.com

NRECA Next Generation Workforce Goal

Next Generation Workforce Goal Enable cooperatives to attract and retain the best, brightest and best-matched talent for today and the future.

National Mentoring Program The purpose of this Mentoring Program is to help co-op employees: Build a professional network across the co-op system, Succeed in their new roles, and Decrease their learning curve Approach: Build Jan – Mar 2015: Rebuilt program based on lessons learned Test Mar – Aug 2015: Conducted successful pilot with 23 co-ops Oct 2015: Launched full program with 43 participants 2016 and beyond: Build on program Launch Measure Continuous: Anecdotal and survey data 2016 Goal: 120+ participants

Pilot Results Program Materials Relationships 100% of participants would refer a friend!

Program Status and Next Steps Our current program is represented by: Recruiting for new Mentors (Present – October 2016) Recruiting for new Mentees (INTERACT 2016, CEO Communications, HR Communications) 2016 cycle launched in October 2016 Seeking Referrals for BA Mentors! Mentors Mentees # of Participants 21 22 States 13 14 Regions 8 Distribution 7 15 G&T 9 4 Statewide 3 Service

Play video Bring Getting Started Guide

Mission Vision Program Overview To provide veterans, service members and military spouses, with the opportunity to continue their mission of serving America’s suburban and rural communities. Vision To create a coalition of cooperatives with the shared goal of empowering military professionals in their local communities.

Veterans Share Cooperative Values Our Opportunity Co-op Jobs 14,400 1,000,000 Transitioning Troops Solid Recruiting Pipeline 44% of Veterans from Rural Areas Highly Skilled, Trainable, Diverse Population Veterans Share Cooperative Values

Approach Build Test Launch Measure Short Term Goal: Co-op Engagement May – Dec 2015: Build program concept, tools and relationships. Test Sept – Dec 2015+: Pilots underway with Exec Committee Members. Launch Jan 2016: Launched at CEO Conference; reinforced throughout the year at every possible venue. Measure 2016 Goals: 100 Co-op Coalition Members 7 State Level Co-op Working Groups 2017+ Goals: Mature metrics as program grows Short Term Goal: Co-op Engagement Long Term Goal: Co-op Collaboration Ultimate Goal: Veteran & Spouse Employment

Progress since Launch 1st Offer to Veteran as a Result of the Program (Employee starts June 2016). Co-op Coalition Members Association of Illinois EC directors unanimously adopted the “Serve our Co-ops; Serve our Country” member pledge. 6 individual co-op registrations; additional 20 CEOs with intent to join the coalition plus Illinois co-op registrations (27). State Level Co-op Working Groups Illinois Co-op Veteran Working Group Established. Texas, Nebraska, Iowa, Indiana and possibly Georgia underway.

How to get Started

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