Retaining Talented Women on a Global Scale Moderator: Jennifer Brown, President

1. Retaining Talented Women on a  Global Scale Moderator: Jennifer Brown, President Jennifer Brown Consulting, LLC • Consulting Team with training, consulting, and coaching expertise • 10 years specializing in Leadership, Communication Skills, and Diversity in the Workplace • Corporate and non-profit clients; variety of industries

2. Two Key Aspects for Women • The importance of life stages: women are impacted globally by personal and family life changes such as children in the home, responsibilities for aging parents, etc. • The importance of supportive managers: supportive managers rather than mentors crucial for retention and advancement of women. • (From a recent study entitled “Women in a Global Workforce”, done by Sharmila Rudrappa at University of Texas at Austin’s Center for Women’s and Gender Studies, regarding feedback from a summit sponsored by Dell and Diversity Best Practices)

3. Recruitment and Retention Factors • Recruiting talent: Factors for the recruitment of women • 76% look for good compensation and benefits packages • 58% look for strong market positions for the company • 51% look for opportunities for challenging work • 44% look for opportunities for women to advance • 42% look to identify with company values • Retaining and advancing women workers: Factors for retaining women after they are part of your organization • 63% Supportive Managers • 54% Supportive Networks outside the workplace • 50% Flexible work hours, job share, ability to work from home or work part-time • 42% Commitment to diversity and culture • 40% Access to challenging assignments

4. Obstacles, and Reasons for Leaving • Obstacles to advancement and retention • Obligation to family (Asians looked to extended family and hired help; other women sought flexible hours) • Perception of women’s obligations outside the company • Perceptions of womens’ capabilities • Stereotyping • “Being unwilling to relocate hurts my advancement” • Reasons for leaving the workforce • Personal/family obligations • Excessive work hours hindered familial obligations (particularly for American women) • Personal choice to stay home and be a wife, mother • Inadequate salary compensations • Forced choice to stay at home to be a wife, mother

5. Additional Points of Note • Perceptions on Position, Culture, and Career • Differences in particular between Asian women and other regions in importance of career and access to career advice. They had a higher response rate in being willing to relocate to a global assignment, especially compared to women in North America and Europe. • Networking groups • Even though 31% of the women said that their companies sponsored a women’s network, only 53% of them took part in these networks.

6. Attracting, Developing and Retaining Talented Women on a Global Scale Monica Diaz Merck -Diversity Director, Global Constituency Groups & Work Environment Mary Tatarian IBM - Global Dependent Care, Work/Life Fund & Life Works Program Manager\ Vera Chota IBM - North America Leader, Workforce Partners October 29, 2008 2:15 – 3:35 pm

7. The world's largest technology innovation company, offering software, hardware and services in areas ranging from mainframe computers to nanotechnology • A leader in work/life programs, dating back to the 1950s • Approximately 386,000 employees in 170 countries • Over 40% of IBM global employees work virtually • 72% of IBM global women executives are moms

8. 43% of global population has less than 5 years of service 19% of global workforce joined IBM via acquisition or outsourcing arrangements Continued growth in EO legislation 69 of the 73 countries in which we operate have anti-discrimination laws … and the number is growing! Employees at every level are increasingly interacting with customers and colleagues in other countries/time zones Globally Integrated Enterprise 1975: 50%+ revenue from outside the US 1985: 50%+ employees outside the US 2006: India has the second largest IBM population IBM’s Reality: The Current Environment

9. Why should business be concerned about developing women leaders? It makes good business sense: • Extends the portfolio of skills at the top of the organization • Provides female role models and mentors • Creates an organization that is reflective of its customer base • It drives business results: Companies with the highest representation of women on their senior management teams had*: • 35% higher Return on Equity • 34% higher Total Return to Shareholders • 42% higher Return on Sales *2004 Catalyst study, The Bottom Line: Connecting Corporate Performance and Gender Diversity

10. IBM’s Advancement of Women Strategy Input on Barriers Develop Strategies .Surveys . Focus Groups . Roundtables • Encourage girls • Recruit the best talent • Mentor / Network • Formalize the process • identify • grow the talent Measure Results . Challenge the system

11. How Does IBM Develop Women? • Enhance the pipeline • Encourage girls to be engineers • Recruit the best talent • Make women feel welcome • Women’s networks • Women’s programs • Support their growth throughout their career • Identify talent and make it a formal process • Formal and informal programs to grow talent • Aggressive mentoring and career development programs • Challenge the system • Measure results

12. Filling the Pipeline with Women Technical Leaders Recruiting External Partnerships (SWE, WITI, MentorNet) WIT Campus Liaisons Global Recruiting Events Marathon WIT Chapters Take Your Children to EX.I.T.E. WIT Subnets Work Day Introduce a Girl to Conferences Webinars Classes Engineering Mentoring Women’s Technical Leadership Forum Top Talent Outreach Women’s Communities Women’s Councils Development & Retention

13. IBM’s Women’s Councils • Proportional representation across all levels • Enhance the technical, professional and personal development of women in IBM • Facilitate IBM's commitment to the advancement of women • Create a vision for women as future leaders • Successes: • Networking events • Top Talent …. “How to have your cake and eat it too!” • Taking the StageTM series • Women’s Speaker Series • Women’s Communities • Mindset Workshops • Roundtables/Town Halls/Panels • Social Events • Communications • Executive updates • Newsletters • Web sites • On-line communities • Women’s Conferences Focus on inclusion … all women, at all levels, across IBM -- regardless of their definition of success

14. IBM Global Winning Plays India: Winspiration ‘08 South Africa, Slovakia & Vietnam: Ex.I.T.E. Camps GBS: Diversity Fusion Brazil: Advancement of Women Town Hall US: Focus on Black Talent NE & SW IOT: PwD Academic Partnerships Japan: Career Development For Women Engineers SWG: Super Women’s Group Hungary: Inspiring Talented Roma Students, The Hungarian Business Leaders Forum UK: Career Development for 14-15 Year Old Black and Asian Students NE &SW IOT: Seeds for Development

15. Merck is a global research-driven pharmaceutical company dedicated to putting patients first. • Established in 1891, Merck has a long-standing tradition of developing innovative new medicines and vaccines to improve the health and well-being of patients around the world. • Merck also strives to improve the world’s health through programs that help ensure patients have access to our products. “We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear. How can we bring the best of medicine to each and every person? We cannot rest until the way has been found with our help to bring our finest achievements to everyone.” - George W. Merck, 1950

16. Nearly 60,000 employees; half ex-U.S. 70% of U.S. population is white – an increasingly multicultural market Merck products are sold in over 150 countries Market growth is faster outside the U.S., and multicultural in nature Our Case for Change Merck in 1950 • 5,000 employees (mostly U.S.) • Ex-U.S. employees – unknown • U.S.A. Population was 89.5% white, 10% black • Merck operated in 21 countries, but primary focus was on U.S. Merck in 2008

17. The Business Imperative Our Customers • Women are entering the medical and professional health care community in record numbers • Women can be patients, but in most cases, they are also stewards of family health and wellness decisions - making most pharmaceutical decisions • Demographic trends suggest that the need for flexibility is greater for women and is likely to grow in the future • Merck’s workforce is young – close to three-fourths of the total workforce under the age of 45 • Most of our female employees are mothers • The family situations of Merck workers, the nature of work and the size of the Merck workforce in locations around the globe vary dramatically Our Employees

18. Asian Differently Able Black Employee ResourceGroups Women Generational Global ConstituencyGroups Lesbian / Gay/ Bisexual / Transgender Native/ Indigenous Latino/ Hispanic Men Inter-Faith The Approach Multi-cultural and Multi-dimensional Womenas part of the model

19. What else Merck does to Develop Women? • Make the attraction, retention and motivation of superior talent an integral part of how we measure the success of our leaders • Focus on women’s needs and identified barriers for career progression (i.e.: Mentoring, Flexible work arrangements, etc.) • Leverage external opportunities for networking and development (i.e.: Working Mother events) • Monitor progress through employee engagement and culture surveys

20. The Outcomes • Continuously improved the number of women in key roles • Currently, global female representation at the senior manager level (typically within two reporting levels of our CEO) is 29%; our target is to reach 36% by 2012 • Women are being fully developed and engaged, as vital leaders in the most important aspects of our business • Merck Women Network (MWN) - one of Merck’s largest and most active organizations is the with roughly 1,300 active members across the United States • Women Global Constituency Group (WGCG) – made global recommendations to Executive Committee in November 2007, on key areas of talent development and customer engagement

21. Most relevant programs / initiatives in attracting, developing and retaining women IBM Your Company Merck Representation: Focus on Senior Leadership Positions Global women’sadvancement Formal and informal mentoring programs for women Flexible Work Options Formal Mentoring to support development of women leaders Flexible Work Arrangements for all employees, globally • Not a new “what”, • but a different “how”: • Multi-cultural & • Multi-dimensional • Business Alignment • Senior Sponsorship • Voice of globally • diverse leaders IBM Global Work/Life Fund IBM Corporate Service Corps 5-Minute Drills Global Jams/Surveys Global Opportunity Marketplace What is different?

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