Developing a Globally Aligned and Locally Relevant D&I Strategy

1. Developing a Globally Aligned and Locally Relevant D&I Strategy Bobby Griffin Global Director of Diversity and Inclusion Flowserve Corp.

2. Defining D&I for Your Organization Visible and Invisible Individual Differences Inclusion is where diversity intersects and impacts the business Traditional Dimensions - Gender - Ethnicity - Nationality - etc. Expanded Dimensions - Thinking style - Leadership style - Experience - Generational Age - Physical Ability - etc.

3. Relevant Business Drivers • Create innovative solutions • Build customer relationships • Increase productivity and engagement • Attract, acquire, develop and retain • Improve service levels and profitability

4. D&I and Organizational Priorities D I V E R S I T Y I N C L U S I O N Vision Mission Values Strategy 2014 Flowserve Corporation :: Proprietary & Confidential

5. Stage 5: • The Way We Do Business • Stage 4: • Strategic Business Imperative • Stage 3: • Integration Into BusinessProcesses • Stage 2: • Adoption of Core Principles • Stage 1: • Compliance Assessing the Current and Aspirational D&I State -Where You Are -Where You Want To Be

6. Organizational Alignment D&I Vision To create an inclusive and engaging environment that leverages employee differences to achieve business results. D&I Mission To inspire and challenge employees through driving awareness, developing capability and integrating diversity into business processes and external relationships. Bottom Line Impact

7. Advancing D&I Through People ProcessIntegration

8. Global Alignment and Local Relevance Globally Aligned Locally Relevant Regional Inclusion Councils Local Inclusion Councils Local Inclusion Councils Local Inclusion Councils Local Inclusion Councils Employee Resource Groups Employee Resource Groups Employee Resource Groups Employee Resource Groups Broad Employee Inclusion and Engagement

9. Implementing a Plan to Address Opportunities

10. Utilizing a Broad Communication Strategy Proactive and Opportunity Based Communications

11. Diversity & Inclusion Integrated Measures SEPARATE PLAN Diverse employee separation rate #/% #/% of business strategy plans that include diverse talent needs ATTRACT ADVANCE #/% of diverse candidates in pool • Diverse employee promotion rate ACQUIRE DEVELOP #/% of diverse hires • #/% of diverse employees who participated in development Programs ENGAGE DIRECT Scores on engagement survey questions by demographic groups Performance ratings of historically diverse groups compared to historically non-diverse groups

12. Organizational Stages of D&I Key Indicators/Milestones: Stage 3

13. Defining Leadership Roles Demonstrate Declare Define Personalize Business Value - Understand the case for change Define Success - Establish the measures of success for D&I Declare Commitment - Share accountabilities for personal and organizational D&I success Communicate the Message - Effectively communicate the D&I message Model Inclusion - Model inclusive behaviors Deliver Results - Provide resources and direction

14. Broadening Organizational Perspective Desired Focus Historical Focus High Standards Bar High Standards Bar Optimal Unacceptable