Securing the Future, With the Best People for the Job

1. Securing the Future, With the Best People for the Job Jackie Lanham, Director of Resourcing & Development Friday, 22nd May 2009 Retailing Developing Deploying Succession Planning Attracting Acquiring Retaining

2. Why does it matter? Conditions for success Progress to date Succession deliverables We need you to …………… Next steps and assumptions Agenda 2

3. Business Drivers Why does it matter? Why Does It Matter? Contributing to Profit • Co-operative employees who can enhance their career are more likely to be engaged(Talkback 2008) • The perceived strength of our commitment to development falls after 6-12 months’ service(Talkback 2008) • Highly engaged employees are more than twice as likely to be top performers than other employees • Talent Management practices drive engaged companies to achieve higher profit per employee by 40% Profit Cost • Saving Cash • Senior hires cost c. one year’s salary to recruit • External survey shows 40% of senior new hires leave in 18 months • CRF 2009 Top Employer Survey. Co-operative reported 20% of key management/executive positions filled internally. UK average response is 60% Fundamentally it mitigates risk 3

4. Common Reasons for Failure Senior managers don’t spend enough high-quality time on talent management (59%) Organisation is “siloed” and does not encourage constructive collaboration, sharing of resources (48%) Line managers are not sufficiently committed to development of people’s capabilities and careers (45%) Line managers are unwilling to differentiate their people as top, average and underperformers (40%) CEOs, senior leaders are not sufficiently involved in shaping talent-management strategy (39%) Senior leaders do not align talent-management strategy with business strategy (37%) Line managers do not address underperformance effectively, even when chronic (37%) Why We Will Succeed Our process is inclusive, HR and the business in partnership focusing on: Active succession planning Organisation structure opportunities (within and across) Performance success and issues Recruitment and development planning Career development planning We have common benchmarks: Co-operative management competencies Workshops and support for HR from the Centre Growing performance culture Group grading structure One approach to calibre analysis We have your support and active involvement Conditions for Success 4

5. Process developed Practical focus on “potential for what” Benchmarks well externally Feedback to date positive Roll-out commenced Development for HR progressing well, up to 20 trained Process commenced in: HR IS – Food IS – Group and plans being formulated for the rest of the business. Progress to Date • Estates • Specialist Commercial • Food Logistics 5

6. Succession Deliverables 6

7. Build the link between succession planning and your business strategy Role model by completing the process with your own teams Actively sponsor follow-up actions Be creative about career development, prove that moves can happen Actively support the development of key successors Ask yourself: Will you stake your personal credibility on your successor’s future performance? Would you work for your future successor – can you see them as your leader? Who are you going to assemble around you so that you can do the best job possible? How will you manage stakeholders to support your successor? How will you effectively manage the handover to your successor? Chase us on progress! We Need You To …………….. 7

8. Potential Next Steps A formal assessment of potential successors for key roles (Q1 2010) A Group development programme for senior successors (Q2 2010) Graduate review, check progress of Graduates in first post (Q1/Q2 2010) Key Assumptions Support for investment You will be prepared to contribute your thinking and road test the solutions Active Support for the assessment and development outcomes Next Steps and Assumptions 9