Succession Planning at Glaxo Wellcome, R&D Succession planning goals Alignment to corporate culture Process Benefits Identification criteria Types of development Monitoring progress Summary

Succession Planning Goals Develop and retain high performers optimize intellectual capital Leadership pipeline groom individuals for future leadership positions

Alignment with R&D Culture Employee development principles and roles Performance management system competency-based performance & development planning reviews Internal recruitment Diversity

Alignment with GW world Across 76 sites, in 30 countries, 6 regions, with ~ 60,000 employees Support regionalization Centralizing - establishing global functions: i.e. M&S, IS, Finance, R&D, HR Align policies/systems Talk about size, spread of sites, Many systems and processes - no single infrastructure hard to share info hard to make decisions across operating companies and sites hard to move people around into development positions different policies regarding comp/bens & grading different policies regarding budgets and headcount Move innovations in different parts of company arenow sharing and adapted in others creative freedom to try out - R&D is place to experiment Centralizing our global functions - connect and streamline operations succession planning is happening globally now - all feed into central activity

Succession Planning Process: Strategic Talent Management Strategizing for Success Review/Define Business Objectives & Challenges Identify Critical Capabilities Agree Development Needs (Gap Analysis for Dept/Div) Identify Development Opportunities Coaching Skills Training Developing Others (1 day) Coaching Edge (2 days) Shaping the Culture Employee Development Philosophy Identify Barriers to Success Develop Action/Communication Plan for Department EDR Process Strategic Talent Review Development Planning Discussions

The Process Global EDR meeting Mgr-EE Dept. Mgmt team Div. Mgmt team Dir. Mgmt team R&D Exec E.D.R. 3-4 times per year 2 times per year Yearly

Benefits Development occurs in line with business needs Stimulates ideas & actions for development Shared ownership of people’s development Reduces bias Foundation for EDR Continuing to embed the process and culture around development Managers are starting to see the benefits HR structure to support OE working with each R&D Divisional Exec team support unique Divisional cultures work to adapt STM within each Division creative ways to get same outcome I drive process and work with OES to pull across R&D to interface with other business areas

Identification Criteria Past performance Development potential Competencies Behaviors Goals & aspirations

Types of Development Opportunities On-the-job: assignments projects new positions location functional Coaching/mentoring Leadership training Give real life examples where development happened as a result of STM/EDR process...

Types of Executive Leadership Training In house: S.E.D.P. I.L.P. I.C.L. External, e.g. C.C.L. I.N.S.E.A.D. L.B.S.

Monitoring progress for continuous improvement Track turnover Track promotions & new positions Track rewards bonus, share options Track training Gather feedback Employee survey

Key Results of Surveys In ‘98, 68% EDRC reported having written development plan vs 54% in ‘97 In ‘98, 77% EDRC given opportunity to improve professional skills vs 65% in ‘97 In ‘98, 80% EDRC reviewed development with manager for >60min vs 59% non-EDRC In ‘98, 70% EDRC believed rewards were linked to performance, vs 50% in ‘97 In ‘98, 51% non-EDRC believed rewards were linked to performance vs 35% in ‘97

In Summary Established a consistent process People are engaged Development is happening Increased communication & coordination across GW Continuously improving