Integrated Approach to Talent Management Moderator Kerry Overton

Integrated Approach to Talent Management Moderator: Kerry Overton Deputy General Manager, Shared Services Austin Energy Outlook Conference October 8, 2009 Page 1 of 17

An Integrated Approach to Talent Management • Sourcing • Staffing & Assessment • Workforce Planning • Workforce Design • Employee Development • Workforce Management Page 2 of 17

Panelists Anthony Bretzke, Director Organizational Excellence CPS Energy (San Antonio) Edward Belmares, Senior Director Human Resources CPS Energy (San Antonio) Pat Alba, Chief Administrative Officer Austin Energy Calvin Zanders, Senior Process Consultant Austin Energy Page 3 of 17

How the Process Works: Fitting Together the Pieces of the Puzzle Talent Manager Data Managerial Judgment & Talking Talent Sessions • Managerial Judgment – the review of the performance history and demonstrated potential for potential candidates occurs over a series of Talking Talent Sessions. • Talent Manager Data – a comparison of each candidate’s competencies, experiences and technical skills to those required for the role. Page 7 of 17

Leadership Development • Learning and Development – Supervisory Development Program (SDP) • Based on competencies, experiences and technical skills for the role • Blended learning – Stakeholder involvement in development of SDP – Increased use of assessments to determine gap analysis for career development • Succession Planning – – – Individual Development Plans Coaching (supported by an e-coaching tool) Participation in external leadership development programs Job rotations, job shadowing or developmental assignments Succession planning development is facilitated and monitored throughout the year by Organizational Excellence. Page 8 of 17

Austin Energy’s Business Environment 437 sq. mi. service territory Austin Energy • 1, 634 employees • Average age: 44 years AE Service Area • Average tenure: 10 years • Retirement eligibility w/in 5 years City of Austin – 35% of total workforce – 61% of management team Page 9 of 17 Travis County

Austin Energy’s Business Environment CHALLENGES • Demographics • Employee Development • Critical Positions • Other challenges • Green Jobs Page 10 of 17

Austin Energy’s Business Environment DEMANDS • Need for flexible work arrangements • Increased training need • Multi-generational workforce • Increased regulatory certification requirements Page 11 of 17

Integrated Workforce Strategy How will Austin Energy meet the customer and business demands of the future? Workforce Planning Total Rewards Integrated Workforce Strategy Talent Acquisition w/ reporting capability Succession Management Employee Development Page 12 of 17

Integrated Workforce Strategy § § § § Workforce Planning Total Rewards Integrated Workforce Strategy Talent Acquisition City of Austin – “Best Managed City” § Austin City. Energy of Austin – “Best Managed City” Strategic Plan § Staffing Austin Energy Strategic Plan Levels (current) § Retirement Staffing Levels (current) § Percent Retirement of Growth § Attrition Percent of Growth § Headcount Attrition. Projections (future) § Critical Headcount Projections (future) Positions § Critical Positions § § § § w/ reporting capability Succession Management Employee Development § § § § Page 13 of 17 Branding / Recruitment Role Profile Development Universities/ Colleges Community Colleges/ Tech Schools Alumni & Retirees On-boarding/ New Hire Orientation Talent Searches Development Opportunities Performance Evaluation Skill Development (technical) Career Management Program Management Development Employee & Team Development Job Rotations ISO Mentoring

Integrated Workforce Strategy § § § Retirement Benefits Recognition Compensation Workforce Planning Benefits Intangibles Total Rewards Integrated Workforce Strategy Talent Acquisition w/ reporting capability § § § 9 -Box (Performance/Potential) Succession Management Talking Talent Sessions External Recruitment Alumni Outreach Bench Strength Development Page 14 of 17 Employee Development

Why Implement Performance and Talent Management? Page 15 of 17 Success Factors adapted by AE

AE’s Talent Management Today’s Perception Tomorrow’s Reality Corporate-wide Goal Alignment Hard to link corporate strategy to what I do each day. Our corporate goals are clear to me; I know how my daily work impacts the overall strategy. Performance Management Not enough meaningful, fact-based discussions with my manager; not sure that it’s fair. Reviews are fair, based on my goals; consistent feedback lets me know where I stand. I put in the hours, I get paid; no benefit for extra effort. I am rewarded for measurable results; there is a link between my actions and my pay. Career Development Limited options for promotion; no guidance for my development. Several opportunities exist for me to take a leadership role at the company; clear requirements for getting there. 360 -Degree Feedback Single rater feedback. Provides opportunity for multi-rater feedback. Managers & Leadership Created from within Our managers/ leaders are weak, either promoted based on favoritism from within or recruited from the outside. The company develops strong leaders. Managers at the company are both well trained and caring. Page 16 of 17 Success Factors adapted by AE

Integrated Approach to Talent Management Open Discussion & Dialogue Austin Energy CPS Energy Page 17 of 17