STEP Winter 03 Leadership Talent Solectron LEADERSHIP TALENT

STEP Winter 03 Leadership Talent @ Solectron

LEADERSHIP TALENT MODEL STRATEGIC DIRECTION EVALUATE ORGANIZATIONAL TALENT What do we need? Where? What do we have? Are we aligned with strategy? CREATE FEEDBACKBASED PLANS DEVELOP TALENT • What are our strengths and needs? • How will we develop our top talent? • What top talent development is needed? • What resources are needed? • How will the resources be made available? MANAGE PERFORMANCE • How is our top talent performing? – Results – Values & Behaviors • Are incentives aligned with performance goals? PLACE TALENT STRATEGICALLY • Are we placing people to maximize their potential? • Are our placement actions aligned with our strategy? Infrastructure (Delivery, Communications, Integration) & Metrics LEADERSHIP VALUES & BEHAVIORS

Lessons Learned: Intent, Impact, and Integration Senior Sponsorship HR Partnership Senior Leadership Program Design v. Program Content Tools of the Trade

Next Steps Talent Review Process (TRP) Performance Alignment Review (PAR) Leadership Development (LPWS)

Strategic Leadership Model Business Context • • Business Challenges Leadership Responsibilities Current state of business environment Vision, mission, values Future state vision Strategy to attain vision • Implications of future state • Business priorities to attain future state • Implications for leadership focus • Implications for leadership capabilities • Responsibilities required to create the future Leadership Model • Resulting leadership focus • Skills & abilities required • Today vs. Future

More than just competencies … VALUES + BEHAVIORS + EXPERIENCES Leadership Challenges Growing a Mature Business Joint Venture/Start-up Renewal/Turnaround Acquisition Downsizing/Plant Closing International Assignment Represent SLR Externally Leverage BOD Relations Functional Assignments Finance Supply Chain Management Manufacturing Product Design Customer Support or Field Services Human Resources Sales/Marketing/Account Mgmt Information Technology = LEADERSHIP TALENT

The problem with traditional talent reviews: Can’t see the forest for the trees: focus on individual competencies with weak link to business strategy and total team capability I’d rather be trimming my toenails: less than engaging meeting dynamics

Evaluate Organizational Talent: The Talent Review Process • An annual company-wide process for systematically identifying executive talent to meet emerging business needs • Talent reviews are conducted by business units and corporate functions (matrix view of talent) • Data feeds to CEO review and Board of Directors succession planning review of officer positions

Key Process Steps Web cast kick-off meetings from business lead Resume and business strategy synopsis collection Strategy implications and alignment pre-meeting session Optional: strategy alignment session Off-site 1 -day talent review Organizational unit talent review with CEO Cross business-unit review; regular updates Tools: manager’s toolkit; rating guides; performance/potential grid, talent database, etc.

Performance Leadership Performance/Potential Talent Matrix – Development Focus Challenge, Reward, & Retain High Professional Develop & Retain Develop & Monitor High Risk Increase Responsibility Solid Performer Increase Responsibility & Scope High Potential Accelerate Development Solid Performer Develop & Retain Increase Responsibility High Promise Potential Accelerate Development

Bench Strength Summary Co m Performance pe To p. T ale ten nt t. C ad r e Ste Re -ev ad y Em Pe alu ate rfo er rm ers Potential gin g. T ale n t

Exercise: Finalize Talent Pools Recommended Talent Pools For your assigned talent pools, list recommended names on flip chart (one chart per pool) Agree on one health indicator (1 -5) for the pool Post charts on wall Group Dialogue Place a color dot (red, yellow, blue) beside appropriate names RED = disagree with nomination YELLOW = need more information BLUE = addition for consideration Group Consensus Voting Pool names (thumbs up, down, side) Health indicator (thumbs up, down, side)

Talent Review Process Outcomes A listing of key talent pools necessary to fulfill strategy Any names in the talent pools factor into a “regrettable loss” metric Bench-strength ratings analysis Management team rating of quality and quantity of talent pool make-up Action plan for developing identified talent and addressing gaps in organizational bench strength 4 -5 3 1 -2

Talent Imperatives -- sample Do we have key people in key positions? If no, what can we do to change? Do we need to increase responsibility for some key people? How can we do this? Do we need to re-evaluate where we have some people placed? What do we need to do?

Policy issues Results are not shared with incumbents or talent pool members Leadership Pathways workshop and development planning is vehicle for feedback No forced distribution

Metrics – Business Unit level Talent Pool bench strength score improvement Regrettable losses

Other metrics Satisfaction with supervision survey results improvement Succession plan readiness index Board confidence with management survey results improvement

Sample slide from Bo. D criteria agenda: Four Predictors of Executive Derailment I. III. IV. Poor interpersonal skills (most cited reason) • Arrogant and intimidating • Insensitive to others • Manipulative • Overly critical Failure to deliver on promises • Over committing and under delivering • Failed follow-through • Betrayal of trust Not adaptable to change • Inability to alter behavior (rigid) • Inflexible Failure to build and lead an effective team • Micro management • Refusal to delegate • Isolated return

Next Steps Talent Review Process (TRP) Performance Alignment Review (PAR) Leadership Development (LPWS)