An independent licensee of the Blue Cross and Blue Shield Association Mentoring Program February 12, 2009

The Company 3.7 million members 8 NC locations 4900 employees

Business Drivers for Talent Development −Larger and more global organizations −Leaner organizational structure −Demographic trends −Increasing importance of human capital −Economic uncertainty

Talent Development Companies are increasingly relying on career development as a retention tool. A strong source of competitive advantage is developing the skills, knowledge and behavior of existing talent. Corporate Leadership Council studies indicate that employees develop first and foremost from feedback and relationship activities. An employee’s direct manager is the key to talent development through coaching, development activities, and individual development plans.

Add title for transition slide Blue Xchange: The Program

Blue Xchange – Why Mentoring? Informal mentoring was already taking place… we wanted to support the effectiveness of mentoring relationships. Mentoring ranked 5 th in importance to leaders out of 17 development programs. Mentoring ranked highest in importance to women and young leaders. “Conduits of informal learning, e.g., mentors, can have up to a 26% impact on discretionary effort.” – CLC study 2.

Blue Xchange Background A diverse work team designed and launched Blue Xchange in In 2004, Training Magazine recognized Blue Xchange as a best practice in mentoring. Blue Xchange has made mentoring an integral part of our culture.

Blue Xchange Program Goals Identify, retain and develop high-performing employees Focus on diversity Develop networking opportunities Provide cross-divisional exposure Enhance recruitment and retention

Blue Xchange Roles Mentors—from all areas and levels of the company—provide guidance, coaching and advice to Mentees. Mentees are high-performing individual contributors and people leaders. Steering Committee determines guidelines, manages and monitors the mentoring program. Facilitates the application, selection and pairing of mentors and mentees.

Program Process Mentoring Meetings Development Plan Mini-Workshops Orientation Evaluation Agreement Form Program Components ApplicationInterview Selection / Matching Notification Orientation / Kickoff

Blue Xchange Today There are 64 active mentor/mentee pairs in the program. 40% of the current mentors were once mentees. Program is open to all employees after 1 year of service. Cohorts show an increase in promotions, transfers and title changes within the second year following program participation.

Program Participant Outcomes Since the program’s inception, program participants surpass the company’s average % merit increase every year On the average, employees receive the highest % merit increase in the second year following participation in the program Very few employees leave BCBSNC following participation in the program

Observations Percent merit increase averages for Mentees are consistently higher than overall employee averages Employees receive highest percent merit increases in the second year following program participation Program supports employee retention Most cohorts increase in promotions, transfers, and title changes 2-3 years following program participation Most participants receive promotions, transfers, or title changes within two years of program participation

Blue Xchange Lessons Learned Obtain visible senior level support and involvement Manage expectations of participants Be clear about purpose, audience and measurements Communicate clearly, consistently and regularly Evaluate and improve continuously Set pairs up for success

Expanding the benefits of Mentoring New Manager Assimilation −Provides support for transition to people leader Key Talent −High potential development −Paired with internal coach and mentor −Mentors include company officers and other senior leaders

Add title for transition slide Overall Talent Program Effectiveness

Source: Employee Preference Survey, BCBSNC, 2006 BlueXchange Participants Have a Good Relationship with the Company-2006

2008 Employee Preferences Survey Company Key Talent MenteesMentors Employee Commitment Index Employee Engagement Index Indication… When employees are provided more individualized development, they are more committed to the company and engaged in their work.

Talent Development Journey Project Management Job Shadowing Blue Xchange Career Development Employee Networks Career Navigator Blue University Developmental Assignments Volunteer Opportunities Continuing Education Coaching

Thank you!