Integrated Approach to Talent Management

1. Integrated Approach toTalent Management Moderator: Kerry Overton Deputy General Manager, Shared Services Austin Energy Outlook Conference October 8, 2009

2. Sourcing Staffing & Assessment Workforce Planning Workforce Design Employee Development Workforce Management An Integrated Approach to Talent Management

3. Anthony Bretzke, Director Organizational Excellence CPS Energy (San Antonio)Edward Belmares, Senior Director Human ResourcesCPS Energy (San Antonio)Pat Alba, Chief Administrative OfficerAustin EnergyCalvin Zanders, Senior Process ConsultantAustin Energy Panelists

4. 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.

5. 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. Leadership Development

6. 1634 employees Average age: 44 yrs Average tenure: 10 yrs Retirement eligibility w/in 5 years 35% of total workforce 61% of management team Austin Energy’s Business Environment Travis County 437 sq. mi. service territory Austin Energy AE Service Area City of Austin

7. Demographics Critical Positions Green Jobs Austin Energy’s Business Environment CHALLENGES • Employee Development • Other challenges

8. Need for flexible work arrangements Increased training need Multi-generational workforce Increased regulatory certification requirements Austin Energy’s Business Environment DEMANDS

9. Integrated Workforce Strategy How will Austin Energy meet the customer and business demands of the future? Workforce Planning Talent Acquisition Total Rewards Integrated Workforce Strategy Succession Management Employee Development

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

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

12. Why Implement Performance and Talent Management? Success Factors adapted by AE

13. AE’s Talent Management Tomorrow’s Reality Today’s Perception 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, factbased 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 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 Create managers and leadership 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. Success Factors adapted by AE

14. Integrated Approach toTalent Management Open Discussion & Dialogue