1. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 1 Chris Bennett August 2012 Human capital in the Boardroom and “C” suite – some thought starters

2. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 2 Human capital in the Boardroom and “C” suite  A very big subject!  Those at the top set the tone of the organization and those in the enterprise will seek to model their behaviour

3. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 3 Two “orientations”  Organizational human capital strategy and risk management  Board & director effectiveness

4. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 4 The Board’s role  The key issues  Strategy and risk assessment  Operational effectiveness and risk assessment  Human capital risk management

5. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 5 Key human capital issues  Recruitment/sourcing  Talent management  Performance management  Effective use of the human assets of the enterprise

6. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 6 Strategy assessment  Strategic alignment  Ongoing operations  Risk assessment  Acquisitions, disposals, market entries and exits

7. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 7 Human capital operational effectiveness assessment  How can the Board assess operational effectiveness in human capital management?

8. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 8 Human capital risk management  Risk identification and articulation  Classification of risk  Are plans to address identified risks in place?  Do effectiveness measures align with risk identification and classification?

9. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 9 Some key issues in Board and director effectiveness  Why is human capital management different for this group? Who’s responsible?  Is the Board a “team”? Should it be?  What is the Board Chair’s role?  Board & director performance review  Reviewing the CEO’s performance

10. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 10 Board & director performance review  Why? ◦ It’s required ◦ Benefits of doing it  How? ◦ A very quick overview of a process  Reviewing the CEO’s performance

11. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 11 Possible questions for Boards about human capital risk  What are the key human capital risks that we face?  Which are strategic and which are operational?  Have we articulated the risks?  Are actions in place to address each risk?  What measures are used to assess our HC strategy and risks?

12. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 12 Possible questions for Boards about human capital strategy  How does our overall HC strategy support our business strategy?  What are the key lines of our HC strategy?

13. Produced by BPA Australasia Pte Ltd (BPA). All rights reserved. Contents must not be distributed/quoted/used without the prior written permission of BPA. 13 Possible questions about Board and director effectiveness  What kind of Board are we?  When did we last discuss our role?  What committee structure do we need?  How effective are we as a Board and as directors?  What is an appropriate process of Board & director performance review?  What process do we use to identify and balance the skills of the Board?  Who is responsible for the learning and development of Board & “C” suite members?