Equitable Talent Development/ Succession Planning. Barbara Frankel SVP, Executive Editor April 14, 2015
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1 Equitable Talent Development/ Succession Planning Barbara Frankel SVP, Executive Editor April 14,
2 Assistance 2 For assistance dialing in to the conference, please call For basic technical assistance (can t see slides, can t hear, etc.), please use the text chat box in bottom right-hand corner of your screen. For other assistance, contact Customer Service at You may submit your questions via the web by using text chat box in the bottom right-hand corner of your screen DiversityInc. Reproduction Prohibited.
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4 2014 DiversityInc Top 50 Companies for Diversity 4 1. Novartis Pharmaceuticals Corporation 2. Sodexo 3. EY 4. Kaiser Permanente 5. PricewaterhouseCoopers 6. MasterCard Worldwide 7. Procter & Gamble 8. Prudential Financial 9. Johnson & Johnson 10. AT&T 11. Deloitte 12. Accenture 13. Abbott 14. Merck & Co. 15. Cummins 16. Marriott International 17. Wells Fargo 18. Cox Communications 19. Aetna 20. General Mills 21. KPMG 22. Target 23. IBM 24. ADP 25. New York Life 26. BASF 27. Eli Lilly and Company 28. Northrop Grumman 29. WellPoint 30. Colgate-Palmolive 31. Kellogg Company 32. Dell 33. The Coca-Cola Company 34. The Walt Disney Company 35. Kraft Foods Group 36. TIAA-CREF 37. Allstate Insurance Company 38. Toyota Motor North America 39. Wyndham Worldwide 40. Rockwell Collins 41. Medtronic 42. Time Warner 43. Verizon Communications 44. Comcast 45. TD Bank 46. Monsanto 47. KeyCorp 48. JCPenney 49. AbbVie 50. Nielsen 2015 list announced April 23! DiversityInc. Reproduction Prohibited.
5 Best Practices Talent Development: Mentoring 5 Musts to Succeed Program is formal (company run) Senior executives are mentors (top 3 levels) Success tied to exec comp Cross-cultural pairings At least 50% Cultural-competence training in advance Monitor pairs every 3 months Break up toxic relationships Assess success Measure engagement, retention, promotions Publicize results DiversityInc. Reproduction Prohibited.
6 Senior-Leadership Involvement Crucial 6 Have formal, cross- cultural mentoring % of top execs par7cipa7ng 98% 72% 69% 2008 Top Top 50 41% 2008 Top Top Top Top 50 DiversityInc. Reproduction Prohibited.
7 Have Formal Succession-Planning in Place 7 96% 90% 90% 90% 80% 74% 74% 74% 2008 Top Top 50 Women Blacks La:nos Asians DiversityInc. Reproduction Prohibited.
8 Succession Planning: Best Practices 8 Mandatory diverse slates Realistic to available talent pool All applicants must be seriously qualified Cultural-competence training for exec recruiters Both internal and external Understand unconscious bias Consider looking outside company/industry Top 50 companies increasing external senior hires by 10% In-depth on-boarding crucial DiversityInc. Reproduction Prohibited.
9 Have Mandatory Diverse Slates 9 92% 56% 2008 Top Top 50 DiversityInc. Reproduction Prohibited.
10 High Potentials: Best Practices 10 Keep diversity in mind when identifying Have specific goals in mind Reject slates that aren t diverse enough Include other diversity dimensions orientation, disability, veteran status Be transparent about who is high potential Old-school secrecy leads to turnover Have additional programs for under-represented high po s Don t assume everyone has the same background/experience Exposure to senior leadership critical DiversityInc. Reproduction Prohibited.
11 Succession Management for a Diverse Talent Community Latoria Farmer Executive Director Diversity & Corporate Responsibility
12 Key Areas 1. High Performance Culture 2. Defining High Potentials 3. Talent Development Ecosystems 4. Benefits and Best Practices 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS
13 KPMG s Commitment to Diversity and Inclusion v Strong infrastructure v Defined diversity goals v Diversity Networks v Inclusion Councils v Women s Initiatives v Developing Diverse Leaders v Supplier Diversity v Inclusion Leadership Forum 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS
14 High-Performance Culture The best people with the skills and determination to deliver above and beyond 14
15 Cultivating High Potentials v Attributes characterized as most valuable v Skills and capabilities v Global experience and cultural acuity v Receptivity to change v Steward of talent v Career advocacy 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS
16 Talent Development Ecosystem KPMG Business School Leadership Teams Mentor Performance Management Leader Sponsor 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS
17 Talent Development Pride Advisory Board Hispanic Latino Advisory Board Asian Pacific Advisory Board African American Advisory Board Selects emerging LGBT leaders for P15 to support talent-centric priorities, improve the recruitment and retention of LGBT professionals, and promote educational awareness. Assigns partners as career advisors to high performing senior managers, directors and managing directors. Regularly engages with talent pipeline to affirm advocacy. Champions Leadership Development Series for senior managers and directors designed to enhance leadership acumen through multiple touch points. Hosts Leadership Insights Summit to develop deeper relationships with high performing managing director and partner candidates, and provide visibility with senior leadership. Women s Advisory Board Abilities in Motion and Veterans Advisory Boards Diversity Advisory Board Partner Pipeline Leverages Stacy Lewis Rising Stars, Executive Leadership Institute for Women, and Career Life Strategies to underscore retention, development, and advancement. Focuses on the recruitment of people with disabilities and veterans in the workplace, as well as successful navigation of the work environment. AIM launching 1in5 in Identifies high potential and high performing senior managers, directors and managing directors for career advocacy and executive coaching. Recurring touch points between Chief Diversity Officer and Functional Vice Chairs to understand the diverse complement of managing director and partner candidates KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS
18 Benefits and Best Practices v Benefits v Cross cultural teams added perspective on client solutions v Cross functional teams deliver depth and breath of skills v Business leaders managing diverse, dynamic teams v Managers and above build inclusive leadership competency v ERG members support diverse enterprises v Best Practices v Increase diverse management serving premier accounts v Integrating D&I into market development resources v Retention investments in diverse talent pipeline v Employee engagement diversity scores at or above firm average 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS
19 Corporate Responsibility Highlights: Diversity & Inclusion We respect the individual. At KPMG, diversity and inclusion are woven into everything we do. We know that every individual in our organization adds value and contributes to our ability to provide exceptional service to our clients. We Seek out, engage and recruit top-performing diverse individuals to join us; Invite professionals into career-enriching opportunities through networking, mentoring, KPMGsponsored events, professional organizations, and community involvement; Support diversity and inclusion through a strong national infrastructure, and Pursue and support vendor relationships with businesses of diverse ownership. KEY PRIORITIES: TALENT DEVELOPMENT 63% EMPLOYEES & PARTNERS ARE DIVERSE OFFICE ADVOCACY MORE THAN 62% NEW HIRES ARE DIVERSE MARKETPLACE BRAND 56% PROMOTIONS INTO & WITHIN MANAGEMENT ARE DIVERSE KPMG TRAINING SUPPORTS INCLUSIVE CULTURE: RESPECT AND DIGNITY, LENS OF INCLUSION, STRAIGHT FOR EQUALITY & DISABILITIES ETIQUETTE AWARENESS TRAINING 5 NETWORK ADVISORY BOARDS OFFER DIVERSE LEADERSHIP DEVELOPMENT FOR HIGH POTENTIAL AND HIGH PERFORMING EMPLOYEES AFRICAN AMERICAN LEADERSHIP INSIGHTS SUMMIT, WOMEN S Rising Stars, Asian Pacific Islander Leadership Development Series, Pride (LGBT) 15, Abilities in Motion 1i5 BOARD OF DIRECTORS 40% 29% OF PARTNERS AND EMPLOYEES ENGAGED IN DIVERSITY NETWORKS DIVERSE AS OF OCT 1, % PROCUREMENT: 23% OF EMPLOYEE DIVERSITY NETWORK LEADERS RATED HIGH PERFORMERS IN FY 14 OF TOTAL SPEND WITH SMALL AND/OR DIVERSE BUSINESSES DIVERSITY NETWORKS AND COUNCILS DIVERSITY NETWORK MEMBERSHIP FY14 VS. FY13 OVERALL GROWTH +42% 2014 NOTE: KPMG METRICS LLP, AS a Delaware OF SEPT 30, limited 2014 liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS
20 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. NDPPS The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International.
21 Baxter International Inc. Saving and Sustaining Lives Worldwide Equitable Talent Development and Succession Planning Irina Konstantinovsky April 14, 2015 Copyright 2014 Baxter. All Rights Reserved.
22 Agenda Baxter Company Overview The Case for Developing a Diverse Pipeline Global Inclusion & Diversity at Baxter Talent Development Strategies Integrated Talent Management Knowing Our Talent Defining High Potentials at Baxter Creating Opportunities for Exposure and Development Copyright 2014 Baxter. All Rights Reserved. 22
23 Who We Are Saving and Sustaining Lives Baxter is a global, diversified healthcare company applying innovative science to develop specialty therapeutics and medical products that save and sustain lives. Baxter products are infused, injected or inhaled more than two billion times annually or six million times a day to treat life-threatening acute or chronic medical conditions. People with hemophilia, end-stage kidney disease, primary immune deficiency and a range of other diseases depend on our products at their times of most urgent need. Baxter 2014 Performance $16.7 billion net sales $1.4 billion invested in R&D Nearly 60% of sales outside the U.S. Copyright 2014 Baxter. All Rights Reserved. 23
24 Why care about Talent? Emerging trends Business leaders recognize the compe::ve advantage of having quality talent and pipeline in their organiza:ons There is a con:nued focus for HR from transac:onal/opera:onal to strategic and business- driven partner Decline in employee engagement and loyalty among key segments while in others the war for talent is hea:ng up again! Emergence of new global economy and global compe::on for talent Copyright 2014 Baxter. All Rights Reserved. 24
25 The Talent Pipeline Requires Focus on Diverse Talent Global distribution of the talent pipeline 1 90% Source(s): 1 Center for Talent Innovation 10% White males Women and multicultural individuals 42 % of Asians say they have to work harder than their colleagues to feel included 55 % of Hispanics believe there are disadvantages to having a sponsor of color 90 % 40 % of African-Americans say they feel like outsiders in their corporate cultures 7 % of Caucasian executives believe protégés of color are less qualified than their Caucasian counterparts of Caucasians believe a person of color will rise to the top of their company Copyright 2014 Baxter. All Rights Reserved. 25
26 Baxter s Vision to Global Inclusion and Diversity By valuing differences, our teams will be more innovative better connected to our diverse world of patients, and business partners Making Baxter a more competitive and sustainable company. Copyright 2014 Baxter. All Rights Reserved. 26
27 Baxter s Four Pillars of I&D WORKFORCE Our People WORKPLACE Our Culture COMMUNITIES Partnerships MARKETPLACE Our Advantage Cultivating an inclusive culture in which diversity is valued Building community partnerships Innovative customer connections & supplier partnerships Goal: Building a globally diverse organization Attract Understand and address the diverse needs to our employees, customers, business suppliers, patients and caregivers. Develop Retain Copyright 2014 Baxter. All Rights Reserved. 27
28 Driving Talent Development at Baxter Assessing Talent Developing Talent Knowing Talent Talent Development is successfully achieved at Baxter when leaders know their talent, objectively assess their talent, and effectively develop their employees. Copyright 2014 Baxter. All Rights Reserved. 28
29 One Consistent Global Talent Management System Talent Profile The cornerstone of our talent inventory and career development activities at Baxter Knowing Talent Copyright 2014 Baxter. All Rights Reserved. 29
30 Key Areas of Assessment Performance and Leadership Potential Risk of Loss and Impact of Loss Assessing Talent Copyright 2014 Baxter. All Rights Reserved. 30
31 How We Determine Potential LEADERSHIP POTENTIAL is an assessment of one s ability and likelihood to advance in position and assume greater leadership responsibility over time. It is the combination of four ratings: Leadership Promise Mastery of Complexity Balance of Values and Results Personal Development Orientation *Adapted from DDI Assessing Talent Copyright 2014 Baxter. All Rights Reserved. 31
32 Rater Tendencies & Bias Overview Bias Confirmation Bias Halo Effect Horns Effect Anchoring/Similar to Me Loss Aversion Self Interest Bias Comparison Primacy/Recency Leniency/Strictness Stereotyping Descriptions Encourages us to ignore, downgrade or overlook evidence or information that contradicts our preconceived notions, or that disproves our theories and hypothesis about things. In a talent discussion, it may meant hat you will look for evidence supporting your preconceptions about particular people, and overlook or ignore evidence to the contrary A positive view, or single strong attribute, colors the view of things that person does subsequently. For example, someone gives a polished presentation, and we automatically assume their competence in other areas. Opposite of Halo effect, where we allow a negative view or experience of someone to taint our perceptions of other aspects of their performance. Subconsciously or consciously give things a greater weighting than they actually merit. We might also anchor around qualities that we either possess ourselves, or that we value personally. So if the person is like us in some critical way, we may ascribe greater potential to them than evidence supports. Tendency to protect ourselves against loss, to veer away from risk. At it s extreme it can be a complete aversion to taking any kind of risk at all, but it can also appear as over cautiousness, protecting one s own team or an unwillingness to make difficult decisions. Decision makers veer towards decisions or solutions that will result in greater gain for them personally. In calibration discussions, this can manifest itself as promoting people the leader personally hired Tendency to rate people in comparison to other individuals at the exclusion of job standards Ratings reflect only initial (Primacy) or recent (Recency) observations of performance Majority of individuals rated at high end of the scale (Leniency) or ratings at the low end of the scale (Strictness) Tendency to generalize across groups and ignore individual differences or performance Assessing Talent Copyright 2014 Baxter. All Rights Reserved. 32
33 OC Bringing it all Together Development Plan (Direct Reports to OC /Region Leaders) Individual Development Needs Competencies/areas for development Top 1-3 Development Actions Specific development activities that include relationships, on-the-job experiences and education/training 2009 OI Workbook v8 Confidential 18 Baxter s annual process used to identify organization and people-related needs that are critical to enhance Baxter s overall performance, productivity and profitability. v Performance and leadership potential v Robust succession plans v Risk mitigation plans v Talent development and movement We pay particular attention to our Diverse and Top Talent Assessing Talent Copyright 2014 Baxter. All Rights Reserved. 33
34 Creating Opportunities for Exposure and Development Internship programs Business Resource Group (BRG) Leadership Opportunities, including work stream leaders Early Development Programs in Finance, Marketing, Technical, IT, etc. Accelerator Program Diverse Mentoring Program in key businesses and functions BRGs connecting members with Sr. Leaders and others providing opportunities for advancement Sponsorship initiative (in development) Leadership Programs Management Programs External Programs Power of Managing Inclusively BRG events and activities for development Developing Talent Copyright 2014 Baxter. All Rights Reserved. 34
35 Not a Silver Bullet: Establish Key Talent Objectives Build talent from within the organization Buy talent from external labor market Focus on past performance Focus on future potential Promote on Results Promote on Behaviors Development based on performance Development based on business need Learn and then promote Promote and then learn Focus on skill depth Focus on skill breadth Copyright 2014 Baxter. All Rights Reserved. 35
36 In closing Establish key objectives to ensure your organization has an equitable talent development strategy Ensure you have processes and tools to know the talent Have rigorous ways and tools for leaders to assess talent on performance, potential and risk Assessing Talent Developing Talent Offer a multi-pronged approach to developing talent Knowing Talent Copyright 2014 Baxter. All Rights Reserved. 36
37 Questions Copyright 2014 Baxter. All Rights Reserved. 37
38 2015 Web Seminar Schedule 38 May 5 Asian-Pacific Heritage Month Cultural Competency May 19 CEO Commitment June 9 LGBT Pride Month Cultural Competency June 23 DiversityInc Top 50 Best Practices July 21 Supplier Diversity Sept. 8 Hispanic Heritage Month Cultural Competency Sept. 22 Mentoring and Sponsorship Oct Disability Awareness Cultural Competency Oct. 13 Diversity Councils Nov. 3 Diversity Metrics Nov. 10 Religion in the Workplace Please contact customer service at webseminars@diversityinc.com DiversityInc. Reproduction Prohibited.
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