1. 1 Strategic Workforce Planning at Monsanto Stu Larson Global Strategic Workforce Planning Lead January 12, 2009

2. 2 Outline Brief Company Overview A Metaphor for Strategic Workforce Planning SWP Defined What Makes SWP a Value to the Business How SWP Works at Monsanto What We’ve Learned

3. 3 Monsanto Company “Agriculture is our only business” Focused on the farmer and the future of agriculture. “We succeed when farmers succeed.” -Hugh Grant, Monsanto CEO Monsanto is 100% focused on agriculture.

4. 4 Monsanto: Who We Are… We are committed to providing producers with agronomic tools that make them more efficient and maintain their profitability in their farming operation. By helping producers be more productive, with fewer resources and with less overall effect on the environment, we believe we are making the world a better place. A leader in the field of plant breeding, agricultural biotechnology and genomics. Headquartered in St. Louis, Missouri CEO Hugh Grant Approximately 21,000 employees More than 500 locations worldwide in five primary regions – Europe/Africa, Asia Pacific, India, Latin America and North America $11.72 billion in annual sales NYSE Symbol: MON www.monsanto.com producemoreconservemore.com Forbes 2009 Company of the Year HBR Top 50 Performing CEOs Hugh Grant #10 Produce More, Conserve More, Improve the Lives of Farmers

5. 5 A Metaphor

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9. 9 The Wisdom of the River Guide Either You Take the River… Or the River Will take You! Either You Take the River… Or the River Will take You!

10. 10 The Metaphor SWP is like running a river… – It’s definitely a journey, not a destination – SWP is about managing risks but it can never be free from risks – but would you want it to be? – The key is to anticipate what’s coming early enough to adapt to changing circumstances before you lose the option to do so – You have to know how to read the river and understand what it’s telling you

11. 11 analyticalforecastingplanning talent management “The analytical, forecasting, and planning process that connects and directs talent management activities to ensure an organization has: right people the right people right places in the right places right time at the right time right price at the right price business strategy to execute its business strategy.” From The Conference Board Research Working Group Report: Strategic Workforce Planning – Forecasting Human Capital Needs to Execute Business Strategy - 2006 What is Strategic Workforce Planning?

12. 12 Said another way… discover critical issues, understand patterns and trends, customize its approach "Strategic workforce planning enables the organization to slice-and-dice its workforce data to discover critical issues, compare different groups, understand patterns and trends, hone in on critical segments of the workforce, and customize its approach to managing different segments of its workforce." From The Conference Board Research Working Group Report: Strategic Workforce Planning – Forecasting Human Capital Needs to Execute Business Strategy - 2006

13. 13 What Makes it Different than Traditional Headcount Planning? Strategic: – Aligned with the Business Strategy – Forward thinking – Proactive not Reactive Analytical: – Based on metrics and quantifiable measures beyond just headcount Focused on Change: – Drives Talent Management, OD & HR Initiatives – Identify and prioritize highest value changes

14. 14 Value

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16. 16 History of SWP at Monsanto 2005: Began SWP as part of a larger People Strategy Initiative – Interviewed Highest level leaders to identify greatest talent needs for the future – Too High Level – Not actionable. – Developed several key tools including Interview Guide 2006-2007: Two pilot SWP programs – Technology organization (R&D) – Asia Pacific region – Key Learnings: – Get close to the business: Link to business planning cycle & metrics – Should be on-going and sustainable, not a one-time event – Be careful not to get lost in the analysis – Be sure to go beyond the headcount forecasts to Talent Management strategies Due to other global initiatives, broad SWP was deferred to 2008

17. 17 History of SWP continued Beginning in 2008: – New team created: Global Strategic Workforce Planning – Part of Talent Management Team Initial training provided to HR Generalists globally between September 08 and January 09. Short Term Forecast requirement emerged in December 08 – Based on need to more closely manage staffing growth First Long Term Strategic Workforce Plan turned in April 2009 – Each Unit and World Area submitted projections – Aggregated at corporate level to identify global needs and trends Significant Restructuring end of FY2009 SWP Cycle: 2 Begins January 2010

18. 18 How we are doing it… Strategic Workforce Planning Annual LRP Process Review Historic & Current Talent Trends Define Talent Strategies Business Team Meetings PHASE I: Analytics & Business Strategy Alignment PHASE III: Follow-Up & Update Business / Functional Leaders partnering with HR HR Generalists & Specialists People Vision Understand Future Business Strategy Identify & Prioritize Talent Gaps People Vision Talent Acquisition Plans PHASE II: Planning & Execution Talent Development Plans People Review & Succession Planning Meetings Talent Retention Plans

19. 19 It’s OD - under a different name… Understand the Business Strategy Identify the talent implications (limiting factors) Identify the key talent segments required Understand those key talent segments in detail – Who are they? What are their demographics? – How many do we have? Where are they? – Are we losing them? Are we attracting them? – Do we have enough? Do they have the right skills? – Etc. etc. Define Talent Management Strategies to close the gaps Create Metrics to track progress Execute and Follow-Up

20. 20 Challenges in the Strategic Workforce Planning Process Challenges in the Strategic Workforce Planning Process (What We’ve Learned) Helping HR develop stronger analytical skills Managing the Matrix… Who’s responsible for what? Tracking and Forecasting internal moves / transfers Forecasting and Managing Temporary Labor Linking with the Finance organization Linking with the Long Range Business Planning process Driving beyond Headcount forecasting to Strategic Talent Management (Requires strong OD skills – not to mention time and resources) Crisis mindset can hinder good long term strategic thinking

21. 21 Questions?

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