Succession Planning: 2 perspectives

1. Succession Planning:2 perspectives Presented by: Tom Kristoph, PRI/Brooks Automation Vickie Smith, Timberland

2. Career & Succession Planning PRI/Brooks Automation

3. How Did We Get Here? • Managers ask “ what does the company expected of me”? • CEO defines “manager expectations” for Manager Survival Skills Program • CEO completes leadership benchmark questionnaire • Executive team completes leadership benchmark questionnaire • The results are in!

4. Innovative Strategic Passion Results oriented Tactical Consensual Empathy Empowerment Aggressive Persuasive PRI Leadership Practices

5. Innovative Strategic Passion Results oriented Tactical Consensual Control Structure Communication Brooks Leadership Practices

6. Why Do This? • Identify company specific leadership behaviors required for success • Create a foundation for developing & retaining our current and future leaders • Provide a comprehensive development & feedback process for our leaders • Serve as a public statement to our managers, employees, customers & shareholders on the behaviors we expect from our leaders

7. Strategic Our leaders have a sense of direction that goes beyond today’s agenda; they understand the long range & big picture implications of their decisions; they plan and anticipate needs and outcomes; they understand the interdependence and impact of their decisions on other organizations Potential Benefits Potential Risks Long-range, multi-year vision Thinks in advance of the competition Able to visualize a fresh future state Helps others to see their roles in the big picture Sees the connections between today’s realities and tomorrow’s results Has breadth but not deep, analytical, problem solving Sets unrealistic goals Vision may not align with current company priorities Seen as out of synch with current realities Needs to surround self with & listen to other perspectives Sends people off in too many directions

8. Tactical Our leaders take the initiative; focus on producing high impact, profitable results; they anticipate and move quickly; they are flexible, agile and highly opportunistic; they stay close to the action and have immediate impact on the big picture Potential Benefits Potential Risks Practical, common-sense approach Gets things done Moves quickly to exploit opportunities Close to the action/customer Not bound by methods and procedures Short-term focus balanced with long-term, innovative visioning Keeps close personal eye on things. Becomes overextended May “do” at the exclusion of manage/lead” Confuses activity with results Jumps in prematurely; seen by others as micro-managing Appears arbitrary and lacking in-depth thinking Others get confused on their roles/responsibilities Operates as a “model” not a “mentor

9. Leadership Practices: Next Steps • Communication • Company meetings • Web Site • Public statements • Box lunches, coffee w/CEO • Recognition & reward • Performance management • Public recognition • Merit/bonus awards

10. Leadership Practices: Next Steps • Hiring • interview questions • interview feedback forms • Development & Feedback: • Executive 360/Self Assessments • Leadership Training • Key Talent Development • Career & Succession Planning

11. Career & Succession Planning - What is it? • A process to enhance the commitment, contributions & retention of People • A process to select and develop employees for key positions • A plan to ensure leadership talent and bench strength to keep pace with business growth

12. Career & Succession Planning - Why do it? • Our growth and success depends on having the right people committed & ready to take on leadership roles • Having “bench strength” ensures coverage and depth for current key positions • Having a “key talent pool” provides organizational agility/flexibility to take advantage of new opportunities

13. Career & Succession Planning 1. Approach: Simple & Elegant • what do we need, what do we have, what do we do to close the gap 2. Scope: Phased • start with VP level positions and top 20%

14. Career & Succession Planning 3. Linked with Other Business/HR Systems: • Business/Budget Planning • Staffing • Performance Management • Retention/Reward Programs • Leadership Development Programs • Leadership Practices & LEA 360 Assessments • Key Talent Program • Leadership Development & Training Programs • Manager Survival Skills • Leadership Training

15. Career & Succession Planning • Select the VP Level Positions in the organization, including your own • Define the “Success Criteria” for each position • Identify key people as “back-ups” with “readiness levels” & “at-large” candidates • Establish action plans, staffing plans, and development plans to ensure depth

16. ( ) ( ) Position Name Position Name Position Name ( ) ( ) Career & Succession Planning - Key Position Replacement Plan Position Name Time in Job Back-ups ( ) ( ) ( ) ( ) Notes: • you are not obligated to stay within your own organization in identifying backups • an individual may be a back up to more than one position • individuals can be identified as back up to different positions by varying readiness codes • back up may be “external hire” Readiness Codes: • Now ( 1 ) • 6-12 months ( 2 ) • 1-2 years ( 3 ) • 2+ years ( 4 ) Candidates-at-large _____________( ) _____________( ) _____________( ) _____________( ) _____________( )

17. Career & Succession Planning - Position Profile Date____ Position_________________ Reports to:_______________________ Probability of position opening within next year? H__M__L__ within two years? H__M__L__ Key Success Criteria PRI Leadership Practices (check MOST important) Job/Industry Specific Requirements ___Aggressive ___Empathy 1. ___Strategic ___Consensus 2. ___Innovative ___Empowerment 3. ___Results ___Challenge 4. ___Tactical ___Passionate 5. Incumbent Name_______________Time in Position_________ Strengths Development Needs Development/Action Plan Backup Name____________ Current Position__________ Strengths: Development Needs: Development Plan: Backup Name____________ Current Position__________ Strengths: Development Needs: Development Plan:

18. Career & Succession Planning - Employee Profile Date__Name_____Joined PRI___Current Position____Department____Location___ Position(s) Identified as Backup For Readiness Incumbent _________________________ Level ( ) ________________ Readiness _________________________ Level ( ) ________________ Major PRI Responsibilities/Significant Accomplishments: Short/Long Term Career Goals: Willing to Relocate? Y__N__ Demonstrated Strengths: PRI Leadership Practices Job/Industry Specific Requirements ___Aggressive ___Empathy 1. ___Strategic ___Consensus 2. ___Innovative ___Empowerment 3. ___Challenge ___Results Oriented 4. ___Tactical ___Passionate 5. Development Needs: (Leadership, Technical, Industry, etc.) Development/Action Plan

19. Career & Succession Planning • Keep it simple • Be Tactical & Strategic • Act today; plan for tomorrow

20. Leadership & Talent Review

21. Background • Timberland’s global Leadership & Talent Review (LTR) process was created in 2003 to provide a cross functional review of organizational talent. • The process creates a forum for leaders of the business to ensure alignment of people resources against strategic intent to drive business performance. • Right People….Right Time….Right Role.

22. Risks Lack of succession planning presented four risks to the enterprise: • Readiness Risk: Risk of underdeveloped successors • Transition Risk: Risk of poor assimilation of talent into the Organization • Portfolio Risk: Risk of poor deployment of talent against business goals • Vacancy Risk: Risk of critical leadership positions being vacant

23. Four Key Objectives of the LTR Process Identify and assess our internal bench strength Drive Leadership development Recognize opportunities to strengthen organizational diversity Establish opportunities for broader internal succession across the organization (lateral depth and breadth)

24. Overview of the LTR Process Organizational Analysis Competencies Assessment Leadership Assessment Bench Strength Diverse Talent Overall Talent Assessment

25. Succession Planning What we look for: • Individuals who have potential for significant growth • Exhibit high performance in new & different situations • Have a demonstrated track record of building and fostering collaborative relationships • Possess leadership potential with a willingness to take risks while exhibiting in all interactions our core values

26. Talent Planning Methodology Selection components: An individuals experience Languages and mobility Career Interests Performance History Strengths and Development Opportunities Potential, readiness & risk Defined success factors Shared values Strong brand affiliation

27. Organizational Analysis Identify organizational issues that are hampering the organization from forward progress that may include skill gaps, talent mix/balance and key strategic business imperatives.

28. Bench Strength Positions vs. People: • Require scarce skill set • Integrally involved in delivering products or services • Are in high demand by competing organizations

29. Leadership Assessment Summary Exceeds Standard RESULTS Below Standard Exceeds Standard Below Standard BEHAVIORS/VALUES

30. Talent Planning Methodology Tailored individual development plans include: • Hogan Personality Assessment • Business events (Sales Meetings, Factories, Analyst calls, etc) • Internal Development Coaching / Reading • Feedback on observed behaviors • Cross-functional team projects • Academic / Workshops

31. Q & A

32. Thank you.