Strategic Workforce Planning at Monsanto

1. Strategic Workforce Planning at Monsanto Stu Larson Global Strategic Workforce Planning Lead January 12, 2009

2. Outline • Brief Company Overview • A Metaphor for Strategic Workforce Planning • SWP Defined • What Makes SWP a Value to the Business • How SWP Works at Monsanto • What We’ve Learned

3. Monsanto Company“Agriculture is our only business” Focused on the farmer • “We succeed when farmers succeed.” • Hugh Grant, Monsanto CEO and the future of agriculture. Monsanto is 100% focused on agriculture.

4. Monsanto: Who We Are… A leader in the field of plant breeding, agricultural biotechnology and genomics. We are committed to providing producers with agronomic tools that make them more efficient and maintain their profitability in their farming operation. By helping producers be more productive, with fewer resources and with less overall effect on the environment, we believe we are making the world a better place. Produce More, Conserve More, Improve the Lives of Farmers • Headquartered in St. Louis, Missouri • CEO Hugh Grant • Approximately 21,000 employees • More than 500 locations worldwide in five primary regions – Europe/Africa, Asia Pacific, India, Latin America and North America • $11.72 billion in annual sales • NYSE Symbol: MON • www.monsanto.com • producemoreconservemore.com • Forbes 2009 Company of the Year • HBR Top 50 Performing CEOs • Hugh Grant #10

5. A Metaphor

9. The Wisdom of the River Guide Either You Take the River… Or the River Will take You!

10. The Metaphor • SWP is like running a river… • It’s definitely a journey, not a destination • SWP is about managing risks but it can never be free from risks – but would you want it to be? • The key is to anticipate what’s coming early enough to adapt to changing circumstances before you lose the option to do so • You have to know how to read the river and understand what it’s telling you

11. What is Strategic Workforce Planning? “The analytical, forecasting, and planning process that connects and directs talent management activities to ensure an organization has: • the right people • in the right places • at the right time • at the right price • to execute its business strategy.” • From The Conference Board Research Working Group Report: Strategic Workforce Planning – Forecasting Human Capital Needs to Execute Business Strategy - 2006

12. Said another way… "Strategic workforce planning enables the organization to slice-and-dice its workforce data to discover critical issues, compare different groups, understand patterns and trends, hone in on critical segments of the workforce, and customize its approach to managing different segments of its workforce." From The Conference Board Research Working Group Report: Strategic Workforce Planning – Forecasting Human Capital Needs to Execute Business Strategy - 2006

13. What Makes it Different than Traditional Headcount Planning? • Strategic: • Aligned with the Business Strategy • Forward thinking – Proactive not Reactive • Analytical: • Based on metrics and quantifiable measures beyond just headcount • Focused on Change: • Drives Talent Management, OD & HR Initiatives • Identify and prioritize highest value changes

14. Value

16. History of SWP at Monsanto • 2005: Began SWP as part of a larger People Strategy Initiative • Interviewed Highest level leaders to identify greatest talent needs for the future • Too High Level – Not actionable. • Developed several key tools including Interview Guide • 2006-2007: Two pilot SWP programs • Technology organization (R&D) • Asia Pacific region • Key Learnings: • Get close to the business: Link to business planning cycle & metrics • Should be on-going and sustainable, not a one-time event • Be careful not to get lost in the analysis • Be sure to go beyond the headcount forecasts to Talent Management strategies • Due to other global initiatives, broad SWP was deferred to 2008

17. History of SWP continued • Beginning in 2008: • New team created: Global Strategic Workforce Planning • Part of Talent Management Team • Initial training provided to HR Generalists globally between September 08 and January 09. • Short Term Forecast requirement emerged in December 08 • Based on need to more closely manage staffing growth • First Long Term Strategic Workforce Plan turned in April 2009 • Each Unit and World Area submitted projections • Aggregated at corporate level to identify global needs and trends • Significant Restructuring end of FY2009 • SWP Cycle: 2 Begins January 2010

18. How we are doing it…Strategic Workforce Planning PHASE III: Follow-Up & Update PHASE II: Planning & Execution PHASE I: Analytics & Business Strategy Alignment Talent Acquisition Plans People Vision Review Historic & Current Talent Trends Identify & Prioritize Talent Gaps Business Team Meetings Understand Future Business Strategy Define Talent Strategies People Review & Succession Planning Meetings Talent Retention Plans Talent Development Plans People Vision People Vision Annual LRP Process People Vision Business / Functional Leaders partnering with HR HR Generalists & Specialists

19. It’s OD - under a different name… • Understand the Business Strategy • Identify the talent implications (limiting factors) • Identify the key talent segments required • Understand those key talent segments in detail • Who are they? What are their demographics? • How many do we have? Where are they? • Are we losing them? Are we attracting them? • Do we have enough? Do they have the right skills? • Etc. etc. • Define Talent Management Strategies to close the gaps • Create Metrics to track progress • Execute and Follow-Up

20. Challenges in the Strategic Workforce Planning Process (What We’ve Learned) • Helping HR develop stronger analytical skills • Managing the Matrix… Who’s responsible for what? • Tracking and Forecasting internal moves / transfers • Forecasting and Managing Temporary Labor • Linking with the Finance organization • Linking with the Long Range Business Planning process • Driving beyond Headcount forecasting to Strategic Talent Management (Requires strong OD skills – not to mention time and resources) • Crisis mindset can hinder good long term strategic thinking

21. Questions?