1. A Strategic Approach to People Development Team #1 Members Wade Alleman Darren Bond Glyn Booth Bruce Bryan Rod Denton Marilynn Edwards Keith Goeller Trey Jordan Chanel Lagarde Dave Lawler Michele Slater Daron Whisman Bouygues Management Institute EMBA 743 – Global Strategy “Je suis heureux de vous revoir”

2. Actual Number of Births per Year in the U.S. 19272002 1946 19651984 Depression 45.4 mil 1927 to 1945 2001 - 56 to 74 2006 - 61 to 79 Baby Boom 75.5 mil 1946 to 1964 2001 - 37 to 55 2006 - 42 to 60 Baby Bust 66.0 mil 1965 to 1983 2001 - 18 to 36 2006 - 23 to 41 Baby Boomlet 74.6 mil 1984 to 2002 2001 - 0 to 17 2006 - 4 to 22 Source: U.S. Bureau of the Census

3. Workplace Characteristics Source: Human Resource Institute

4. Workplace Survey Results Workers of different generations blend as they work together; age is not a major factor at work Source: Human Resource Institute

5. Workplace Survey Results Median Age of the U.S. Labor Force Selected Years, Actual and Projected Source: Human Resource Institute

6. Workplace Survey Results The Age Distribution of the Labor Force Will Continue to Shift Source: Human Resource Institute

7. Company Information – 184 Hospitals, 79 surgery centers – United States, England and Switzerland Key Issues – Age pyramid at Executive Management positions – Shortage of candidates for CNO position – Shortage of primary workforce (Registered Nurses) Best Practices – Extensive Executive Development program – Partnership with universities – Incentives to attract candidates into nursing field

8. Company Information – Primary business of exploration, production and refinery of crude oil and natural gas – Operates in 145 countries and employs 115,000 people Key Issues – Age pyramid with technical staff employees – Economic volatility of the industry Best Practices – Mentoring new employees with experienced staff – Focused recruitment strategy – Internal talent sourcing system Shell Oil Company

9. Company Information – Automotive Manufacturer – 53 countries, 365,000 employees, $177B Revenues Key Issues – Transfer of knowledge across global operations – Size of company makes change difficult Best Practices – GM University – Interactive Distance Learning and e-Learning – Strong focus on value of diversity

10. Company Information – Agricultural Herbicide and Biotechnology – 51 Countries, 14,000 Employees Key Issues – Shift from chemical company into biotech company – Switch from manufacturing to academic culture – Attracting and retaining key technical resources Best Practices – Extensive training on “business case” for diversity – Formal mentoring program for future leaders – Well defined attraction and retention program for critical skills

11. Company Information – Subsidiary of Occidental Petroleum – U.S. based commodity chemicals Key Issues – Amalgamation of previous chemical companies – Refocus on core business – Age pyramid at executive levels and primary workforce Best Practices – Consistent and well defined/documented practices – Leadership training for all levels of managers – Well defined and deliberate succession planning – Leaders training leaders

12. Company Information – Insurer of medium to large casualty risk clients – Privately held ($50M) Key Issues – Transfer of knowledge from founder to successors – Knowledge concentrated in few key employees – Train employees on IT functionality Best Practices – Well defined and executed succession plan – Deliberate/focused IT strategy – Creation of employee loyalty

13. Company Information – Aerospace and Defense – 25 countries, 125,000 people, $25B Revenues Key Issues – Age pyramid across all levels of the organization – Retaining IT technical skills to maintain core business Best Practices – Mentoring new employees with experienced staff – Flexible work environment – Enticing employee retention incentives – Comprehensive succession planning

14. Documented succession plans Common Best Practices Diversity training - extreme emphasis on valuing and understanding diversity Mentoring programs designed to capture and pass on the institutional or tactical knowledge of older employees Leadership development programs

15. Specialized/targeted training programs Common Best Practices (cont’d) Hiring and training of more multi-tasked employees Aggressive recruiting and retention programs

16. Genuine management commitment to people development Final Thoughts Age pyramid and emerging diverse workforce Alignment of people processes with business strategy – Similar HR “Tool Kit” applied strategically Valuing and understanding diversity is a must for: – Successful succession planning – Adapting to the changing market forces

17. Questions ? Team #1 Members Wade Alleman Darren Bond Glyn Booth Bruce Bryan Rod Denton Marilynn Edwards Keith Goeller Trey Jordan Chanel Lagarde Dave Lawler Michele Slater Daron Whisman Bouygues Management Institute EMBA 743 – Global Strategy “Je suis heureux de vous revoir”