1. HEALTH WEALTH CAREER REALIZING GLOBAL ADVANTAGE THROUGH GLOBAL LEADER DEVELOPMENT CASE STUDY: INSIGHT, DEVELOPMENT AND MOBILITY AT OIL SEARCH

2. HEALTH WEALTH CAREER KATE BRAVERY Global Solutions Leader Talent Business Mercer RAELEE HOBSON Organizational Development Manager Oil Search T: +852 3476 3815 E: kate.bravery@mercer.comkate.bravery@mercer.com T: +612 82388014 E: raelee.hobson@oilsearch.comraelee.hobson@oilsearch.com

3. © MERCER 2015 2 THE SKILLS SHORTAGE PUZZLE GAINING COMPETITIVE ADVANTAGE Jobs  People People  Jobs TALENT SCARCITY ISSUE & PARADOX “Worldsourcing… where we source talent, manufacturing, and markets from whichever location in the world it makes the most sense” BILL AMELIO CEO of Lenovo

4. © MERCER 2015 3 TODAY’S REALITY REQUIRES LEADERS TO THINK & ACT GLOBALLY REGARDLESS OF LEVEL OR TRAVEL BUDGET Geographic expansion Global mergers, acquisitions, JVs Global customers and suppliers Global talent Thinking style Ethnicity Gender Sexual orientation Age Disability Experience DEMAND FOR INCREASED CROSS-CULTURAL KNOWLEDGE AND SKILLS TO BE EFFECTIVE 3

5. © MERCER 2015 4 GLOBAL MINDSET HOW TO BUILD IT IN YOUR ORGANIZATION STIMULATE INSIGHT ACCELERATE DEVELOPMENT MOBILIZE TALENT 1 2 3 Identify the criteria for global leadership success, and assess leaders against them Effective individual and team development interventions linked to business objectives Set up an infrastructure and culture to grow your talent pipeline

6. © MERCER 2015 5 1. STIMULATE INSIGHT IDENTIFY POTENTIAL & ASSESS READINESS Our research shows that to successfully operate in today’s constantly changing and globally connected world, leaders need a distinct skillset. Traditional tools are not always effective in assessing dynamic skills such as catalytic learning and comfort with complexity. A blend of tools that assess underlying attributes, leadership capabilities, and cross- cultural skills can lead to impactful results. INTERVIEWS PERSONALITY INVENTORIES 360 FEEDBACK INTERCULTURAL COMPETENCE CROSS-CULTURAL WORKSTYLE ASSESSMENT CENTERS Mercer’s framework outlines 12 criteria for global leadership success.

7. © MERCER 2015 6 2. ACCELERATE DEVELOPMENT WHATS WORKING 123 START EARLY IN CAREER IDENTIFY TALENT NO SUBSTITUTE FOR BEING THERE CULTURE OF MOBILITY DEVISE LEARNING IN CONTEXT REAL- WORLD COMPLEXITY 4 REWARD CULTURAL COMPETENCE MENTOR RECOGNISE PROMOTE

8. © MERCER 2015 7 Manager of self Manager of others Manager of managers Functional manager Business manager Enterprise manager Group manager Passage five Passage four Passage three Passage one Passage two Global Executive Passage Full package Baseline Attributes Global Mindset Global Skills Source: Charan, Drotter and Noel, 2000 360 degree feedback Mentoring First international assignment Strategic global projects Second international assignment Assessments Multi-cultural teams Special projects Short term assignments Mentoring Global region assignment Executive education 3. MOBILIZE TALENT CAREER PATH DEVELOPMENT

9. © MERCER 2015 8 Source: Charan, Drotter and Noel, 2000 Manager of self Manager of others Manager of managers Functional manager Business manager Enterprise manager Group manager Passage five Passage four Passage three Passage one Passage two Global Executive Passage Full package Baseline Attributes Global Mindset Global Skills 360 degree feedback Mentoring First international assignment Strategic global projects Second international assignment Assessments Multi-cultural teams Special projects Short term assignments Mentoring Global region assignment Executive education Look for early career opportunities for short- term assignments First multi-year assignment to develop cultural literacy A second assignment in a market with a different maturity or growth stage Assignment with multi-country/regional remit LINK MOBILITY STRATEGY TO BUSINESS OBJECTIVES Mindset of global Talent development Align Metrics to local needs & individual development Ring fens roles and support structure 3. MOBILIZE TALENT CAREER PATH DEVELOPMENT

10. © MERCER 2015 9 HOW ARE WE DOING IN ASIA PACIFIC? GLOBAL LEADERSHIP PRACTICES SURVEY Only half of companies reported linking assessments of their global leaders to individual development plans. THE GOOD NEWSROOM FOR IMPROVEMENT involve their top executives in identification and review of global leadership talent pools. of companies have a function dedicated to global leadership talent. One-third do not identify candidates for global assignments at the manager level, which poses problems for the bench of strong global leaders in the future. 77% 80% 51% 30%

11. © MERCER 2015 10 © MERCER 201510 INSIGHT, DEVELOPMENT, MOBILITY ONE COMPANY’S STORY

12. © MERCER 2015 11 INSIGHT, DEVELOPMENT, MOBILITY ONE COMPANY’S STORY WHO ARE WE Oil & gas exploration and development company based in Papua New Guinea since 1929. Most assets located in PNG, where we hold a spread of production / exploration licences. We have a 29% interest in LNG Project, the largest development ever undertaken in PNG. One of our core objectives is to leave a positive legacy in all areas that we operate.

13. © MERCER 2015 12 INSIGHT, DEVELOPMENT, MOBILITY ONE COMPANY’S STORY ACCELERATED DEVELOPMENT PROGRAM OBJECTIVES BUSINESS CONTEXT FOR DEVELOPMENT INITIATIVE IN 2014 TALENT AGENDA

14. © MERCER 2015 13 ACCELERATED DEVELOPMENT PROGRAM OBJECTIVES BUSINESS CONTEXT FOR DEVELOPMENT INITIATIVE IN 2014 INSIGHT, DEVELOPMENT, MOBILITY ONE COMPANY’S STORY Increase % of High Criticality Roles with “ready now” successors To validate talent pools and provide targeted development opportunities To understand our culture and how this might impact strategic success Change in the strategic agenda requiring more / different talent Lack of local talent moving up No clear definition of “good” leaders Mobility of leaders limited

15. © MERCER 2015 14 OIL SEARCH LEADERSHIP FRAMEWORK WE WILL BE SUCCESSFUL WHEN EVERYONE AT OIL SEARCH IS: SUCCESS PROFILES TO MEASURE POTENTIAL Framework and success profiles are both level-based.

16. © MERCER 2015 15 ACCELERATED DEVELOPMENT 2015 PROGRAMME April Business/function leaders nominate ADP candidates May Conduct nomination assessments and select ADP 2015 participants July Prepare individual reports and group analysis July Conduct individual feedback sessions July 29-30 Development Day June Conduct insight assessments

17. © MERCER 2015 16 ADP 2015 ASSESSMENTS Mercer Online 360 Behavioral Interview Virtual Assessment Centre INSIGHT ASSESSMENTS (17 selected ADP participants) NOMINATION ASSESSMENTS (33 participants) Culture Calculator (RW3) Abstract Reasoning Global Leadership Profile

18. © MERCER 2015 17 ADP 2015 DEVELOPMENT DAY TOOLKIT MODULES ON TOPICS SUCH AS: Leadership transitions Personal/leadership brand Making the most of your mentor Working cross-culturally Future leaders at Oil Search PRESENTATION ON WHERE YOU WILL BE IN FIVE YEARS TWO TRACKS (SENIOR & EMERGING LEADERS) LOTS OF NETWORKING TIME OBJECTIVE: COMPLETE INDIVIDUAL DEVELOPMENT PLAN One-on-one feedback sessions with participants & coaches took place before Development Day.

19. © MERCER 2015 18 ADP 2015 WHAT WE DISCOVERED

20. © MERCER 2015 19 ADP 2015 WHAT WE DISCOVERED Virtual Assessment Centre simulations were more discriminating in terms of how people thought and operated than cognitive ability tests in PNG ‘Accountability’ was perceived differently at different levels in the organization whilst influencing senior stakeholders was a specific challenge to PNG nationals Although there is an awareness that cultural differences exist, leaders needed more help to understand how these nuanced differences impact work practices and how to readily adapt their style accordingly. Organisational culture may impact decision making, change & adaptability, and strategy execution as the dominant culture is highly formal and hierarchical

21. © MERCER 2015 20 ADP 2015 ONGOING LEARNING & ROI

22. © MERCER 2015 21 ACCELERATED DEVELOPMENT ORGANISATIONAL IMPLICATIONS THE ORGANISATIONAL DEVELOPMENT INITIATIVES THAT HAVE TAKEN PLACE SINCE 2013, INCLUDING THE ADP, HAVE LED TO SIGNIFICANT CHANGES IN OUR: Succession planning methodology Recruitment practices Performance management processes Mobility function

23. © MERCER 2015 22 FINAL COMMENT DEVELOPING A GLOBAL MINDSET Building a global mindset must be an organizational pursuit with c-level sponsorship, infrastructure to support mobility and the culture to promote in-role development. Global Leadership simulations, cross cultural teaming and overseas experiences provide critical contextual learning experiences. The new bread of assessment tools can help you move quickly from ‘insight’ into development activity. IMMERSIVE DEVELOPMENT EXPERIENCES Development interventions linked to business strategy are most impactful. Ensuring the talent / mobility agenda are discussed with business strategy can help ensure development has relevance, momentum and visibility. SUSTAINABLE LEADERSHIP STRATEGIES

24. © MERCER 2015 23