0. Is your organisation fit for future?
Geraldine Haley
Global Head Executive Talent & Succession
October 2014

1. Three Key Questions
Why is succession planning important now to your organisation?
How do you ensure maximum value add for the business?
What is the role for HR to play that is different from the past?

2. Employee Distribution
Context Matters
150 years old with 90% of income and profits made in
Asia, Africa and the Middle East
1,600 branches and offices in 70 markets
Attrition can run as high as 25% annually in some markets
Key Facts
Employee Distribution
Full Year Results 2013
No single home market
Global roles located primarily in Singapore
“Networked” organisation so global processes acceptable
Operating income of over $100 million
Some sort of animation that allows a box of text to appear
Statutory profit before taxation down 11% YOY
86,640 employees representing 132 nationalities
*Employed Workers within SCB and Subsidiary Companies as of 31 July 2014 2 2

3. “We believe in Global – Global process and standards”3

4. Context matters: Our Talent Management Principles
We are inclusive without giving all people the same experience
We have opportunity to leverage our internal talent more
All employees have opportunity to develop in a way that suits them
Outstanding performance is based on playing to strengths
We meet with demand – we are business led and linked to outcomes
Talent management and development are embedded in the business cycle

5. How do you get high adoption by the business?
4 Components to Consider:
(1) Aspiration: Massively Multiply Our Leadership Capabilities
(2) Vitality
(3) Functionality
Attitudes and mindsets - the passion in business and HR for the products and processes
Products and processes that are linked to business needs for short and long term with effective execution
(BOTH!)
(4) Supported by outcomes and process measures
Adapted from model presented in article “Make your company a talent factory” by Doug Ready and Jay Conger - HBR June’07

6. How do you get high adoption by the business?1
Prepare
Define the scope of Succession Planning for the year
Define parameters (criteria) & standards
Collate relevant information e.g. critical roles, global / local statutory requirements 2
Plan
Communication plan (on the launch, steps and reminders)
Execution plan (who does what)
Training sessions for HR teams across the Group 3
Execute – Global Consistency
Build up from local business input
Through to regional
Global review and sign off 4
Follow Up
Ensure development plans for identified successors to enhance readiness
Refresh plans (clear accountabilities)
Access by all relevant HR and business users 5
Strategic Review
Step back to identify overall “story”
Organisational strengths and challenges
Identify action plans to monitor
Engage CEO and Board
Succession Planning Process 1 2 3 4 5
Global
Regional
Local
Simplified to show we do local, regional and global
Works bottom up
Ends in global reviews

7. How do you integrate with other people processes?
Succession Planning
Talent Review Discussions with business teams
Data to understand “heroes” and “villains”
Development Planning for successors
Helps prioritise executive development
External Mapping where needed
Important Feed to Resourcing Process
Need highly collaborative and integrated HR team!
Need to refresh each cycle – “strategic themes”
Static process?
Appetite to update – keep data live?
Track/measure appointment rates?
Executive Talent Meetings – 30 senior HR meet once a month to...

8. Potential vs. Performance
“Most high potentials are high performers but not all high performers are high potentials”
Judgment vs. Assessment
What is potential that isn’t performance?
Curiosity: People high in curiosity seek and are energised by learning and change
Insight: People high in insight seek new ways of looking at issues and are energised by creating transformational insights
Engagement: People high in engagement seek connections with others and are energised by engaging and investing in others
Determination: People high in determination seek challenging commitments and are energised by carrying through with bold, difficult goals
Ref: “A new era of talent management” by Claudio Fernández-Aráoz - HRMagazine Aug ‘14

9. Sample Template INCUMBENT SUCCESSOR Role SIF Name Flight Risk
Vacancy Likelihood
Capabilities
Title
Capability Readiness
Development Needs
Benchstrength 1 A B 2
Flight Risk
High
Low
Not known
Vacancy Likelihood
High: 2014
Medium: 2015
Low: 2016+
Capability Readiness
High: ready now
Medium: some development needed
Low: significant development gaps
Long Term successor
Benchstrength
Met: 2H or 1H & 2M
Close to Met: 1H or 1H & 1M or 2M
Not Met: All others

10. What is the role of HR that is different to the past?
What is the unique space HR can occupy?
What thinking is required by HR?
What is the highest value conversation to facilitate?
What are we doing in SCB?

11. What we do well Tone from the top – CEO Sponsorship
Basis for business dialogue and challenge on talent management
Provide tools (eg: capability frameworks, potential definitions)
Global process and timetable – non negotiable
Focus on diversity of candidate pool

12. What we have challenges with
Poor system to capture data (Excel!)
Need to work hard to source candidates outside of known population
Transparency – not enough!
Potential assessment is judgement only