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1 PRESENTED BY: RICH WELLINS, Ph.D, SVP, DDI Development Dimensions Int l, Inc., All rights reserved.

2 Means for 2014 Participant Average Ratings for Strategy Innovation Talent CSR Average Global= Development Dimensions Int l, Inc., All rights reserved.

3 Means for 2014 Participant Average Ratings for Strategy Innovation Talent CSR Average Global= Astra= Development Dimensions Int l, Inc., All rights reserved.

4 Asian Leading Company Development Dimensions Int l, Inc., All rights reserved.

5

6 $5,000

7 7

8 Outcomes That Count Leader engagement and retention Effectiveness of leadership development programs Current quality, future bench strength Composite financials: profitability, earnings per share, 5-year rate of return to investors, and stockholder equity? SO WHAT 8

9 5 Key Insights THE {new} ROLE OF HR ENGENDERING DIVERSITY LEADERSHIP PIPELINE 4 5 THE HI-PO TALENT POOL ANALYTICS: FROM SIGHT TO FORESIGHT 9

10 THE {new} ROLE OF HR 10

11 What Role Does HR Play? Reactor Develops and administrates policy Ensures compliance Source of HR expertise when asked Partner Embedded in business Resolves talent issues Supports rollout of talent management initiatives Anticipator Align talent capabilities with business strategy End-to-end talent management architecture Interpret talent trends and translate into opportunities 11 HR

12 What Role Does HR Play? Reactor Partner Anticipator 22% 60% 18% Develops and administrates policy Ensures compliance Source of HR expertise when asked Embedded in business Resolves talent issues Supports rollout of talent management initiatives Align talent capabilities with business strategy End-to-end talent management architecture Interpret talent trends and translate into opportunities 12 HR

13 What Role Does HR Play? LEADER 43% 37% 20% HR Reactor 22% Partner 60% Anticipator 18% Develops and administrates policy Ensures compliance Source of HR expertise when asked Embedded in business Resolves talent issues Supports rollout of talent management initiatives Align talent capabilities with business strategy End-to-end talent management architecture Interpret talent trends and translate into opportunities 13 HR

14 Talent Planning Intersection with Strategic Planning STRATEGIC PLANNING PROCESS Early/Strong Connection Moderate/Late Connection Weak/No Connection 5% Reactor 26% Partner 43% Anticipator

15 Talent + Strategy Boosts Financial Performance Top 20% Bottom 20% 6.2x 15

16 ENGENDERING DIVERSITY 16

17 Women in senior management: 24% in 2007, 24% in 2013 Women in Fortune 500 CEO positions: 14.4 percent in 2010, 14.6 percent in 2013 Wage gap has not closed in 15 years; Women expect to make less 17

18 Skill Gap Fallacy 18

19 Skill Gap Fallacy # WHAT NOW 19

20 Where Are the Gaps? Focusing on Development More International Assignments More Confident # WHAT NOW 20

21 21

22 Source: Global Leadership Forecast % of All Leaders Are Women 37% of All Leaders Are Women 22

23 Source: Global Leadership Forecast % of Hi-Po Leaders Are Women 28% of Hi-Po Leaders Are Women All High-Potential Leaders Percent High-Potential Women 23

24 LEADERSHIP PIPELINE 24

25 Leadership Pipeline 25

26 Leadership Pipeline Purposeful transitions Multi-level role mastery Common language Consistent approach to driving business goals 26

27 Pipeline Impact 1 Level Quality of Leadership Future Bench Strength Financial Performance 39% 40% 40% All Levels 74% 89% 63% 27

28 THE HI-PO TALENT POOL 28

29 66% HAVE HI-PO PROGRAMS 74% NOT VERY EFFECTIVE # WHAT NOW 29

30 Drivers of high potential program quality 1. Objective assessment data on hi-po s capability/potential 2. Mentoring/coaching programs for hi-pos 3. Hi-po leaders performance in developmental assignments is evaluated 4. Measure the effectiveness of programs for developing hi-pos 5. Identities of leaders identified as hi-pos are well-known in the organization 6. Includes all levels of leadership for hi-po programs not just senior managers 30

31 Organizations With Hi-Po Programs Are: Top 20% Bottom 20% 3.6x 4.4X 4.9X? SO WHAT 31

32 ANALYTICS: FROM SIGHT TO FORESIGHT 32

33 #1 CEO HOT Button BIG DATA CEO Challenge Conference Board 2014 Human Capital Analytics 19 out of 22 CEO Challenge Human Capital Strategies Conference Board

34 Analytics Use and Effectiveness Not done at all Done effectively Benchmarking externally Gathering business impact metrics Data to design/optimize TM programs Using data to forecast future talent needs Gathering results metrics Benchmarking internally Gathering efficiency/reactions metrics 66% 13% 49% 21% 46% 22% 45% 23% 44% 24% 43% 27% 38% 30% # WHAT NOW 34 HR

35 Impact of Leadership Analytics 30% 27%! NOW WHAT 35 HR

36 Impact of Leadership Analytics 30% 24% 23% 27% 21%! NOW WHAT 36 HR

37 What Happens When You Get It Right? 37

38 Financial Impact 11x + 4x 4.4x ? SO WHAT 38

39 Financial Impact 11x + 4x 4.4x 5x

40 Financial Impact 8.8x + 6x 7.4x ? SO WHAT 40

41 Financial Impact 8.8x + 6x 7.4x 9x

42 PRESENTED BY: RAINIER TURANGAN Development Dimensions Int l, Inc., All rights reserved.

43

44 Critical Leadership Skills Integrate oneself into intercultural or foreign environment Leading across countries and culture

45 Critical Leadership Skills Intercultural communication within international business environments Leading across countries and culture

46 ASIA 7238 Leaders 867 HR 47

47 CEOs Rank Top Four Challenges * Human Capital Customer Relationships 27% 45% 22% 40% Innovation Operational Excellence 26% 33% 23% 41% Leaders who are very prepared to meet these challenges. *Sources: 1 The Conference Board, 2014; 2 Self-reported leader readiness to address these challenges; Global Leadership Forecast

48 Quality of Leadership 35% 35% Leader Rating 19% 38% % 40% 2014 HR Rating 25% %

49 Critical Positions That Can Be Immediately Filled 47% 46% 50

50 Ready-Now Leaders for the Future 20% 18% % % 51

51 Countries Included in our Numbers PRESENTED BY: HATTA TRIANGGA 52

52

53

54

55 INTRAPERSONAL SKILLS: Driving for Result INTERPERSONAL SKILLS: Building Trust Developing Strategic Relationships STRATEGIC LEADER COMPETENCY PROFILE LEADERSHIP SKILLS: Change Leadership Coaching and Developing Others Selling the Vision BUSINESS SKILLS: Customer Orientation Entrepreneurship Commercial Acumen Establishing Strategic Direction

56 Effective

57 C-Level Group Result Cluster / Domain Analysis Intrapersonal Skills 2.81 Leadership Skills 2.15 Driving for Result 2.81 Change Leadership 2.20 Coaching & Developing Others 2.30 Selling the Vision 1.97 Interpersonal Skills 2.81 Business Skills 2.38 Building Trust Developing Strategic Relationships Customer Orientation Entrepreneurship Commercial Acumen Establishing Strategic Direction 2.36

58 Comparison between SOE vs POE C-Level Executives n Avg

59 Profile of Indonesian Strategic Leaders (C-Level Executive) assessed against Global Executive competencies Comparison between Industries (Average Rating) Avg

60

61

62 1. Talent management is not a democracy 2. Start with the end in mind talent strategy must be tightly aligned with business strategy 3. You must know what you re looking for comprehensive success profile 4. Potential, Performance and Readiness are NOT the same thing 5. The talent pipeline is only as strong as its weakest link

63 Drivers of high potential program quality 1. Objective assessment data on hi-po s capability/potential 2. Mentoring/coaching programs for hi-pos 3. Hi-po leaders performance in developmental assignments is evaluated 4. Measure the effectiveness of programs for developing hi-pos 5. Identities of leaders identified as hi-pos are well-known in the organization 6. Includes all levels of leadership for hi-po programs not just senior managers 64

64 Countries Included in our Numbers 65

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