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Dr. Piotr BednarczukExecutive Vice President, Corporate HR and HR Delivery, Merck KGaA, Darmstadt, Germanysubstantially, if you do not have aconsistent definition of what talentmeans, it becomes difficult to manage globally across business sectors or even within those sectors.You need this global consistency toensure that you can actually manage this in a consistent and a coherent manner. Do you as a companyhave a clear definition of “talent”that is globally lived and executed?Very often this is not the case.The Importance ofIntegrated ProcessesThe other point is that we thinkthat the talent management process cannot be an isolated process.Let’s take an extreme example froma performance process. Managersdo a performance review, that getsclosed, and then HR sends out ane-mail months after the fact and is Skillsoft, 2015now conducting the talent management process, saying please give mea list of your talents and then wewill discuss it. Basically you haveindependent processes that are notlinked to each other.We believe that in order to makea difference, the processes of performance talent, talent calibration,and succession management needto flow like one business process.You would basically have a budgeting process — during the year, youwould spread out activities, butthey reinforce and build upon eachother. For example, if I have a discussion on performance and potential, this discussion is captured inone system and is transferred overto the next process, which couldbe a calibration or a talent discussion. Many companies that make abig impact and have a competitiveadvantage have more integrated(continued)processes than isolated systems.We are moving in that direction. Weactually now have a globally consistent integrated system for thewhole talent management process,and the integration into other processes like compensation, development, and recruiting is continuing.The Importance of TalentAnalyticsIn many cases you will see companies, and you can divide theminto different categories. Somecompanies have a more informalapproach to talent management,and basically they just set certainmilestones in the process wherethey have some formal assessmentor formal governance. Other companies have a more data-drivenapproach where they derive dataout of the process, and based onDr. Piotr Bednarczuk  ExecBlueprints  4

Dr. Piotr BednarczukExecutive Vice President, Corporate HR and HR Delivery, Merck KGaA, Darmstadt, Germanythat data they provide transparencyabout what is going in the companyand basically manage the processthrough transparency and data. Weare a company that believes in thisdata-driven approach. When wemake workforce decisions, they arebased on data.Having a Portfolio ofCapabilitiesWhat do we mean by having aportfolio of capabilities? Whatoften happens when companiesmake talent decisions is that several of the appointments to certainpositions are very often based onone-dimensional criteria such asexpertise.To make a decision on futureplacements, we added additional criteria to build a portfolio Skillsoft, 2015approach. One important criteriaas an indicator for future leadership capability is learning agility.Learning agility describes how agilea person is to reflect on him or herself, reflect on the work environment, and how agile they are todevelop. There are multiple dimensions, e.g. people agility. Can youwork with people with diversebackgrounds? Are you comfortableworking in such an environment?Another dimension is change agility. Are you comfortable workingin an environment that changes?So this learning agility is one of thekey predictors for future potential,especially in the leadership area.In addition to expertise andlearning agility we provide assessments based on a company competency model. This model is directlyderived from the business strategies and reflects on the behaviors(continued)leaders need to exhibit in order toachieve the business strategy.The next element in the portfolio approach is what we callthe experience profile, meaning inwhich areas people have gainedexperience, e.g. do I have experience working in different countries, do I have experience workingwith different teams, P&L experience, or do I have more projectexperience?Overall in our company theadherence to company values isalso a precondition for any placement decision.The art of talent managementis that even though you have thedata-driven approach, you stillneed good judgment to make surethat you provide the right sourceof workforce decisions for thebusiness.Dr. Piotr Bednarczuk  ExecBlueprints  5

Dr. Piotr BednarczukExecutive Vice President, Corporate HR and HR Delivery, Merck KGaA, Darmstadt, GermanyHow Company CultureDrives StrategyThe biggest factor that we see driving talent passion is the companyculture. This cannot be createdby processes or tools; it has to bemore like the DNA of the company’s leaders. Through the transparency of the key performanceindicators (KPIs) that you provideand through the discussions thatyou have, you need to buildthat DNA in the company. Wherethere is a passion to develop people, leaders are rewarded for that.It is not just like a hobby forsomebody to develop; it shouldbe embedded in the company culture and it should be the expectation of the company. Therefore, ittakes time.We had a strategic shift in 2011,and many processes were newlyaligned to the new strategic priorities of the company. When youimplement a new process, it willtake two to three cycles to reallyhave an impact on the company.You must be patient in order tosee the first outcomes, because thewhole system lives throughthe discussions within the companyand through this culture of making sure that people are aware thatthis is important for the company, Skillsoft, 2015(continued)Company culture and strategy will determinethe approach that is right for you. Within ourcompany, we think we need a more globallyconsistent approach, an integrated process, andalso a data-driven process to make a differenceand to have a competitive advantage.Dr. Piotr BednarczukExecutive Vice President, Corporate HR and HR DeliveryMerck KGaA, Darmstadt, Germanyand being transparent about howimportant this is.In a nutshell, we feel that talent management contributes tothe competitive advantage ofcompanies, especially companiesthat depend on the innovation oftheir workforce to sustain theiradvantage.Developing People for OurCompanyDeveloping people for your company is quite culture-specific aswell. Basically what we follow,which is not a rigid policy, butmore like a way of thought, is theso-called 70/20/10 rule. I think itis known that 70 percent of learning is done on the job. What weare trying to do is provide enoughopportunities for people to learnthrough different assignments sothat they can build their experience profile as I described before,or build their competencies. This isan important 70 percent. 20 percent is mostly related to somethingaround coaching, mentoring, andproviding sponsors or buddies sothere is an exchange of continuousfeedback for the talent. The lowestamount of the impact, which is10 percent, is the formal training and the aspects of preparingfor different assignments. This isthe development approach that wetake to build the cycle and to ensurethat we have the right portfolio ofpeople in the organization that canfulfill the strategic requirements ofthe company in the future. I thinkthis portfolio approach is the keysuccess factor for many companiesas we move into the twenty-firstcentury. nDr. Piotr Bednarczuk  ExecBlueprints  6

Regina DeTore PagliaSenior Vice President, Human Resources, Myriant CorporationHuman Resources: TheTalent PropositionOur biotechnology company’shuman resources department utilizes what we call “The TalentProposition” when recruiting andtraining new employees. Basically,“The Talent Proposition” can bereduced to a formula:Corporate Capabilities Corporate Culture Market Value Corporate Capabilities Thewhat, which refers to whatdo we do well and whatdifferentiates us from ourcompetitors. Core knowledgeis a hallmark of our productand services. The what is the“secret sauce” that fulfillsour mission and results in asuccessful organization. Thewhat is the results achieved inthe form of our products andservices. These are developedby leveraging the CorporateCapabilities. Corporate Culture The how,which refers to our uniqueTalents, Values, Environment,and Knowledge whichsupports “what” we do i.e.,produce our products andservices. From an internalperspective that includesour Infrastructure, Systems,Culture, Processes, Leadership/Direction, Management, OfficeSpace, Pay, Communication,and Rewards. The how is allthe tangible and intangiblecomponents in the workplacewhich are distinctive to ourorganization. This includes thevarious motivational factorsand physical environmentwhich enable our Talentto create our products andservices. Market Value Refers tothe revenue/profit and stockvalue produced from thesale of our products andservices. Stakeholders mustbelieve there is value in theproduct and services and arewilling to compensate thecompany above the cost ofthe production of goods andservices.In a nutshell: Results AchievedThrough People Resources andDirection Aligned with the Mission Purpose/Mission and Value toStakeholders. This translatesto the application of our CorporateCapabilities to achieve our mission to produce a product or service through the Talent of theOrganization. Along with the CoreCompetencies, the Organizationmust have a framework whichfosters those results i.e., TheCorporate Culture. Componentsof the Corporate Culture includeIn order to successfully attract, retain, andengage these individuals your Company Culturemust provide an environment which encouragesthem to stay, perform, and produce at their bestlevel.Regina DeTore PagliaSenior Vice President, Human ResourcesMyriant Corporation Skillsoft, 2015Regina DeTore PagliaSenior Vice President, Human ResourcesMyriant CorporationMr. AUTHOR can be e-mailed atFIRST.LAST@execblueprints.com“As Human Resource Professionals,we have a significant opportunity tocontribute to the strategy and value ofour company.” Joined Myriant in September 2010 Has more than 20 years extensiveHR experience B.S., Business, Suffolk University M.A., Human Resource Management,Framingham State UniversityMs. Pagila can be e-mailed atregina.paglia@execblueprints.comthe organizational resources, environment, guiding principles, andphilosophy among other factors inplace to inspire our Talent to create value in the market for stakeholders through those goods andservices.Company Mission: Be the globalleader in biotechnology with greenmarket application to maximizeshareholder values.The deliverable of the companymission is the product or servicedeveloped to achieve the mission.In the case above the product wouldbe bio-chemicals created by theengineering of organisms to represent environmentally sound chemicals used in consumer goods andRegina DeTore Paglia  ExecBlueprints  7

Regina DeTore PagliaSenior Vice President, Human Resources, Myriant Corporationadditive to or a replacement for topetroleum based products.To compete within the greenmarket, you need specific talentsand skills which create the saleable products which are designatedin the Corporate Mission. The talent refers to the people hired withthese specific skills, knowledge,and experience. In order to successfully attract, retain, and engagethese individuals your CompanyCulture must provide an environment which encourages themto stay, perform, and produce attheir best level. This includes thecorporate structure, system, processes, values, resources, and allthe elements which contribute to aCorporate Culture. When all thesecomponents are aligned the endresult is the marketable product. Skillsoft, 2015The Importance of TalentAssessment and How theProcess WorksOnce the organization’s businessstrategy is defined, it important toassess the organization’s humanresources needs. Correlating thisinformation is vital to meet thecompany’s needs, whether it isexpansion, contraction, or maintaining the current status.Other benefits include: Ability to retain “StarPerformers” Increase bench strength withinternal candidates Plan for expected leadershipopenings Determine need for externaltalent(continued) Mitigate risk of future skill andleadership gapsIn order to assess talent we: Prepare an Individual SkillAssessment using aSkill Assessment Worksheet Identify skills, competencies,strengths, and weaknesses Create a professionaldevelopment plan Complete the Skill and LevelAssessment for a group ordepartment to summarizethe skill development needs,promotions, and new jobfamilies for all in the group. Use a Performance Potentialscale to assist in completing theform.Regina DeTore Paglia  ExecBlueprints  8

Regina DeTore Paglia(continued)Senior Vice President, Human Resources, Myriant CorporationThe Performance Potentialscale has five levels: StarPerformer, Strong Performer,Solid Performer, QuestionablePerformer, and Low Performer.The Individual Skill AssessmentWorksheet consists of 1) Skills ofthe individual, such as assumesaccountability, adheres to corporate compliance, and demonstratesautonomy and initiative; 2) placesfor recording “Current Rating” and“Target Rating,” and 3) a place toadd a “Development Plan to BuildSkill and Competency.” For example, you may have a very talentedScientist who delivers novel andinnovative scientific results, however the person does not presenttheir findings well. A DevelopmentPlan could include the person completing a Presentations Skill Courseand then delivering a presentationto the other members of the Team.We then add data from theIndividualSkillAssessmentWorksheet to create a Team Skilland Level Assessment Worksheetwhich lays out for each team member their current key skills; the keyskills they need to develop; a SkillDevelopment Plan; whether theyare promotable and when; and ifthe team member is a “flight risk”and on what scale — i.e., low,medium, or high.We have determined that focusing solely on the Individual TalentAssessment does not provide afull view of the Company CoreCompetencies. A Team Assessmentstep was added to the TalentAssessment process to look at theculmination and deficiencies of specific skills needed within the organization. The Team view quicklyidentifies where the department asa whole possesses the core skills,where skills need to be developed, Skillsoft, 2015what the readiness is of the department members, who is promotableand when, and who is a retention risk. This snapshot providesa quick view of what action stepsare necessary to maintain, improve,change, or hire necessary experience and skills.Professional Developmentand Promotion GuidelinesAt Myriant, our ProfessionalDevelopment Plan consists of: Timing — Included with theAnnual Performance ReviewProcess. Purpose — Discuss theemployee’s professionaldevelopment goals. Objective — Understand thegap between the employee’sdesired role and theemployee’s current skill setsand experience. Action Plan — Determine aplan to help the employeeprogress toward oneprofessional development goal. Key Outcome — Establishone or more professionaldevelopment goals for the next12 months. An example mayinclude: An employee in HRwho needs to improve theirability to track compensationdata and be able to createvarious scenarios with theinformation to analyze andmake recommendations. ThisAction Plan to Link Talentand Business StrategyRegina DeTore Paglia  ExecBlueprints  9

Regina DeTore Paglia(continued)Senior Vice President, Human Resources, Myriant CorporationMyriant provides resources for professional development in several ways.First, there are a number of training and development resources, availableinternally and externally, that can help employees master specific skills,knowledge, behaviors, and attitudes. Training can range from formal orinformal sessions to specific training related to the employee’s industry,position, or assignment.Regina DeTore PagliaSenior Vice President, Human ResourcesMyriant Corporationperson’s development goalcould include taking a seriesof Excel tutorials to masterpivot tables and other complexcalculations in order tofacilitate the analysis.The company’s role in professional development is as follows: Retaining key talent andkeeping employees engaged, asthey see a better professionalfuture at Myriant. Creating a culture ofemployees who are energized,enthusiastic, and committed toachieving results. Preparing employees fornew business priorities andincreasing organizationalcapabilities.Our company’s professionaldevelopment plan results in several key employee benefits: A more satisfactory work lifedue to increased professionalskills and competencies Steering/advisory committees Special projects/assignments Research/writing assignments Professional organizations Creates a sense ofresponsibility for identifyingand creating the future theywant Case studies Establishes expectations ofwhat employees can do withinour companyA promotion may be considered when an employee has takenon more responsibility and hasadvanced to a new role with a widerscope of accountability, decisionmaking, organizational impact, anddeliverables. Additionally, the business need must exist to supportthe promotion. The president willapprove all promotions.In order to be considered for apromotion, an employee must meetall of the following criteria:We believe that it is important to partner with the employeefor input in determining the mostappropriate professional development resources. Some examples toconsider: Academic coursesA manager’s role in professionaldevelopment is as follows: One-on-one coaching Improves employeeperformance Mentoring On-the-job experience Builds a reputation as amanager who develops andinvests in their people Assessment tools — SeeHuman Resources Serves to increase skill sets andperformance results withintheir

management processes. Talent management systems and the thinking around talent management itself have been one-dimensional in the past. If I have a position in the future, and this position is described now, and in 10 years this position will be ready, then I can develop people through talent management to get to that position. The problem with .