Talent Development - An Investment vs A Cost?

ICBE Conference 18th April 2007

If you want one year of prosperity, grow grain If you want ten years of prosperity, grow trees If you want 100 years of prosperity, grow people
Chinese Proverb Kouzes & Posner, The Leadership Challenge

Genworth Financial

Company Confidential

Why Invest Time in HR?

Impact of the soft stuff on business performance and the capability of managers (at all levels) to deliver this
Visionary companies have outperformed the stock market by a factor of twelve since 1925 Successful innovating companies have found clear values and vision to be practical keys to higher productivity over a 11 year period such companies increased their Revenues by 678% vs 166% Stock prices by 901% vs 74% vs 1% Net income by 756% New companies offered on the US stock market are 42% more likely to survive for 5 years if they score highly on an index of 'valuing human resource' 60-90% of the market value of companies is in their intellectual assets, with Human Capital being the highest % Using research over the period 1991-2001 in 100 UK manufacturing companies, the findings showed; Implementation of good HR practices had a higher impact on the positive profit variability and productivity on these companies than strategy, quality or R&D initiatives combined "concern for employees welfare was the single most important predictor of organisation performance" IPD paper #22 "Impact of People Management Practices on Business Performance" 1987, drawing on the work of the Sheffield Effectiveness Programme Hope & Fraser Mgt Accounting, 1997 Pfeffer, "The Human Equation", 1998 Collins & Porras "Built \to Last" 1997 Kotter & Heskett Quoted in "Innovation Explosion" 1997

Key message; over 30 reports in the US and Europe conclusively prove that management capability in clearly articulating and implementing coherent values and underlying HR practices is the most significant driver of long term business performance
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HR - Impact of Managerial Styles on Results and Work Environment

Balanced Managers were proven to score better in terms of both results and work climate dimensions
Balanced style compared to Controlling Work Group Effectiveness (results) Morale Tension Commitment Team Building +20% +34% -33% +97% +33% Novice +80% +45% -15% +103% +51%

Key Message: focused management development can deliver better business results and the work climate needed for long-term success
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> A Learning Culture

Talent Management
Our approach to building the pipeline

> Performance Management Identifying the Pipeline

> Leadership Success Path & Derailers

> Training & Development Growing the Next Generation of Talent

Genworth Financial 4

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A Learning Culture

> Active Learning of Every Point in the Compnay > Senior Leadership Team Drive Down Into the Organisation > All Management Role Model > Active Development Plans - Reviewed Quarterly > Underpinned by Genworth Values

Genworth Financial

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Role of the Learning Function

Culture
Respond to Feedback from Managers & Associates:
Keep: management training More: Use Genworth Development Center to Help Build

technical training insurance training operations training Improve: orientation

Capabilities

Catalysts

individual development planning

Propel Strategic Messages

Enable Operational Excellence

Genworth Financial

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Performance Management
GOAL SETTING

DEVELOPMENT PLANS

Whats expected of me? How am I doing? How can I improve/develop?

GOAL REVIEW FEEDBACK COACHING

ANNUAL APPRAISAL EMS

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The Annual Talent/people Review by Each Business With the CEO, Members of the CEO Team
100% focused on People and Culture
Force rank talent by performance and promotablity (AKA the 9 Blocker) Review and give feedback on the performance, promotability, and developmental needs of top management Make the tough call where needed Review succession plans for key management jobs e.g., feeder positions Make early identification of high-potential talent and ensure their development Best Bets Assess the talent base in key growth areas Finance, Actuarial, & Sales Review the business quality initiatives, resources needed, skills inventory, performance assessments and training priorities

Much More Than Just a Rack & Stack

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Pipeline Development
Best Bets
Currently Senior Professional Next Role EB+ Potential Keep in Mind Quality DNA

Best Bets EB

High Potential EB

High Potential
Currently Senior Professional One Additional Role Prior to EB+ EB Role 18-24 Months

Early Career EB Potential

Early Career
Greater Than 24 Months for EB Role Less Than 5 Years Experience Currently Lead Professional Potentially Off Program

Our Process to Fill the Leadership Pipeline

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The 9 Blocker
Promotability
O v e r a l l R a t i n g
High Medium Limited

T 20

H V 70

L E 10

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Definitions of Potential
An individuals capacity for development based on performance, aptitude, and demonstrated ability to take on broader responsibilities To what extent could someone do a BIGGER job, not just a different job? Think about the persons leadership ability as against the GE values and behaviours the more senior roles require demonstrated leadership ability Potential may change year by year depending on when people start to grow out of their roles and show that they are ready for bigger challenges Limited An individual who is performing as a professional or expert; should remain in that position or make a lateral move with similar responsibilities/depth. Has found their right level or niche. Does not mean that they will never move could easily take another role at same or similar level. Can be an outstanding performer but has reached a ceiling for the time being Medium Potential An individual with the likelihood of competing successfully for a higher banded position or lateral position with somewhat broader responsibility. ie Have seen the person demonstrate enough for you to confidently imagine them performing well in a bigger and more demanding role We would expect individuals in this category to move one band within the next two years or enjoy significant additional progression within the same two year period. Unclear at the moment about longer term potential High Potential An individual with a high probability of competing successfully for higher banded positions or lateral positions with much broader responsibilities. ie Have seen this person perform so well against their goals and in demonstrating GE Values that you are confident that they would perform successfully in much bigger and more demanding roles We would expect individuals in this category to move at least one band or take a lateral position with much broader responsibilities within 1-2 years and have capability and capacity to enjoy significant additional progression within the next five years

Genworth Financial

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How Do Leaders Succeed in Genworth?

The expectations

u Learners for Themselves & for Creating a Learning Environment for People to Grow u Set & Articulate a Vision u Synthesize Complex Issues Into Simple Messages (Framework) u Prioritize & Reprioritize Constantly u Execute on the 5 to 6 Key Initiatives u Demonstrate the Values of Genworth Leadership u Unafraid of Failure - Learn From It When It Occurs u Creative But Pragmatic u Passion for Winning

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And How They Can Derail

The differentiators

u u u u u u u u u u u

Miss Commitments Behavior Inconsistent With GE Values Poor Fit for the Job Dont Face Into the Tough Calls Too Slow to Act Try to Do Too Much Themselves Fail to Delegate Ego Gets in the Way of Energizing Others Cant Keep Pace With Changes Around Them Repeated Failures Too Selective on Job Opportunities More Concerned About Optics & Stature Than Results and Team Play

Genworth Financial

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Genworth Financial Leadership Curriculum

Sr. Executive & Executive Leader
Single team BMC Outside speakers conduct seminars on topics of strategic interest Select attendance at Executive Development Seminars at top business schools

Increasing Leadership Responsibility

Senior Leadership
Advanced Leadership Course (GNW MDC) Center for Creative Leadership Advanced functional courses Ongoing special offerings

Leaders

New Leaders Series/On-boarding Experienced Leaders Course GNW Management Policies & Processes Advanced functional courses

Associate
New Employee Orientation Know Your Business Process Excellence Tools Compliance Training Foundations of Leadership (for new exempts) Skill building electives Competency based job & technical training

Presentation Skills Project Management

Facilitation Skills Work-Out! for Non-Financial Managers

Influencing Skills Skills Series

Courses from New Leaders Series

Electives

Finance

Team

Genworth Financial

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Sample Executive Development Programs, BMC/EDC Level

Week 1: Feb 28-Mar 4 Drivers of Change Key Benefits: Understanding Why Change Must Be Embraced and Managed Globalization: Taking Place With or Without Us Regulation: The Rules of the Game are Changing Macroeconomics: Forces and Flows Innovation: Treating Change as a Strategic Imperative Week 3: May 9-13 Working Within the Competitive Environment Key Benefits: Seizing Available Opportunities & Maximizing Leverage The New Economy: Global Swiftness & Flexibility Organizational Competence: Building Structure & Skills to Support Strategic Intent Accelerating Change: Using Change to Unbalance the Competitive Structure Marketing: : Accomplishing Objectives Effectively & Consistently Technology: Picking Winners Consistently & Using Technology Efficiently Week 4: Jun 20-24 The Challenge of Leadership and Decision Making Key Benefits: Doing the Right Things at the Right Time Shareholder Value: What It Represents, & How It Can Be Delivered Financial Reporting: Compliance, Accuracy and Integrity Strategic Communication: Making Your Message Support the Strategy Business Simulation: Testing Your situational Awareness & Skills Governance: Using Structure & Communication to Get Adherence to Goals & Values Leadership: Implementing Vision Business Challenges: Bringing Real-World Problems to the Table
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Week 2: Apr 4-9 Understanding Internal Problems and Opportunities Key Benefits: Positioning the Organization for Change and Improvement

Genworth Financial

Continued Developmental Tools

360 Leadership Competency Model Executive Assessments Leadership Development Programs On-line Computer Based Training Achieving Business Impact Re-missioned From Course to on Demand for Initiatives Mentoring Short Term International Rotations

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Changes
More focus on development vs. Training Fewer captive courses in-house, more use of external suppliers Overhauling new employee orientation and know your business Introducing competency approach and functional knowledge networks Strengthening curriculum design techniques for trainers in ops, sales, compliance Increased promotion of active industry and professional group participation and certification

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Our Approach to Developing People

Is
Designed around a continuum of competency acquisition, targeted to key roles Balances industry knowledge with exposure to best practices Dynamic blend of foundational building blocks & new topics of current interest Emphasizes development as well as training Encourages broadening & deepening of capabilities

Is Not
Unrelated events Shotgunned curriculum One size fits all Generic Internally focused Static, inflexible

Just classes and on line learning Focused only on how to move up

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Competency Models: A Way to Define What Success Looks Like

Technical

Personal Attributes Interpersonal, Team and Leadership Business Acumen

Genworth Values

Used As a Foundation for Many People Processes

q q q q q q q

Job Role Definitions and Career Path Maps Personal Development via Competency Assessment Competency Based Training Program Design Training Planning Recruitment and Selection Reward and Recognition Programs Strategic Assessment of Organization Capability
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Genworth Financial

Examples of Training/Development Topics By Level & Focus

Developmental Focus Technical & Job Skills Interpersonal & Leadership Business Acumen

Associates Track

How to do their job well

How to process an application

Conflict resolution

Know Your Business

Emerging Leaders Track

Basic management and leadership skills training

Advanced technical course

Hiring the Right People

How to Use Safari Cost Tracking

Experienced Leaders Track

How to lead for better execution across the organization

Technical overview courses for new technology

Using cross functional project teams and task forces effectively

Developing international business savvy

Senior Leaders Track

Individualized path to develop strategic change leadership capabilities

Business Acumen & Technical Skills become identical except for Technical Leaders

Strategic Planning

Industry association leadership role

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Risks and Concerns

Developing Executives & Sr. Executives Beyond Training University Partner Concept Is New Advanced Functional Training Who Is Good Out There? Learning Management System and Web-site Creating a Coaching Culture Establishing a Robust Individual Development Planning Process

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Yesterday
Employees Responsibility

Employee: When is my manager going to do something about my career?

Training & Development

Managers Responsibility

Today and Tomorrow

Managers Responsibility

Career growth: then now

Employee to manager: Ive done some thinking about my career and would like to discuss it with youwhere do I start?
Employees Responsibility

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Leader Development Process

First Time Managers (Newly-promoted ) Track A Outcome
Leaders understand expectations, policies, systems tools and resources; Management/leadership basics

New to Genworth Managers (Newly-hired) Track B Outcome

Leaders understand GNW culture, expectations, policies, systems tools and leadership resources

Existing Experienced Managers Track C

Electives from Tracks A&B

Learning Topics
Managers Role in Communication & Promoting Genworth Culture Performance Management Cycle HR Policies, Procedures & Systems Business Cycle, Financial Policies & Procedures Personal & Professional Development

Learning Topics
Genworth Organization and Culture Managers Role in Communication Performance Management Cycle HR Policies, Procedures & Systems Business Cycle, Financial Policies & Procedures Personal & Professional Development

Leadership Academy

Experienced Managers Course

Process
Human Resources Manager works with the new manager & his/her direct supervisor to create a personalized development plan to include:
Online learning resources New Leaders Series* Electives and online courses other development tools

Process
Human Resources Manager works with the new manager & his/her direct supervisor to create a personalized development plan that might include:
Online learning resources New Leaders Series* Electives and online courses other development tools

Advanced Leadership Course

The Executive Program

Follows new-hire orientation; continues throughout the business cycle for up to one year

Follows new-hire orientation; continues throughout the business cycle for up to one year

*New Leaders Series:

Building Effective Leadership Skills Advanced Coaching Skills Targeted Selection Practices

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New Manager Orientation Process

Planning for your arrival Buddy designated On boarding plan designed Training: functional on-boarding training workshops / online modules Business Cycle modules (according to plan)

Hire Date Welcome

Initial Development Plan

IDP established + 6 months

New hire orientation New leader assimilation + 3 or 4 months New Manager Orientation Session Online 360 process within first year

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Training Modules
Opening Module 1
Emotional Intelligence
EI competencies and behaviors How to develop EI
Agenda Objectives Definitions OPENING People Driven Strategy

Module 2
Cost Of Disrespect
Legal Emotional/personal Productivity/profess ional

Module 3
Effective Communication
Communication styles Dealing with conflict Giving feedback

Closing

Review Personal Action Planning

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Return on Development Investment

New Assignment Development In Place Impact Coaching Self-Development Courses
Source: Centre for Creative Leadership

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What It All Means...

Genworth Puts Time and Thought Behind the Development of Future Talent The Genworth Values and Competencies MatterThey Are the Behaviors and Skills That Will Help You Succeed . . . We Believe They Improve the Business Results and Because They Are a Conscious Screen Against Which You Are Measured Employees Have the Primary Responsibility for Making Their Career Happen, - managers play a supportive coaching role Genworth Ensures Your Progress Is Examined Systematically at Least Once a Year.
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Genworth Financial

Company Confidential

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