AnintroductiontoPhilipsConsumerLifestyle&TalentManagementAwell-respected,blue-chipcompanyfor120years2Foundedin1891HeadquarteredinAmsterdam,theNetherlandsSalesoverEUR25.4billionin2010(USD33.8billion)33%ofsalesgeneratedinemergingmarketsGloballyrecognizedbrand(worldtop50)Ourbrandvaluedoubledto$8.7blnsince2004119,000employeesSalesandserviceoutletsinover100countries€1.6billioninvestmentinR&D,6%ofsales50,000patentrights–36,000registeredtrademarks–63,000designrightsPhilipsdefined:weare…3…aglobalcompanyofleadingbusinessescreatingvaluewithmeaningfulinnovationsthatimprovepeopleshealthandwell-being.Healthandwell-beingAcommitmenttohealthy,fulfilledlivesinourcommunitiesandsocietiesourworldMeaningfulinnovationsImprovingpeopleslivesGoingbeyondtechnologyIntroducedattherighttimeOurfocusonHealthandWell-beingOurportfolioleveragescriticalglobaltrends44RiseofemergingmarketsAgingpopulationIncreasedconsumerempowermentandsustainablelifestylesClimatechangeandsustainabledevelopmentConsumerLifestyle€8.9Billionsalesin201017,000+Peopleemployedworldwide€0.3BillionnegativeNOCforTVend20104%ofsalesinvestedinR&Din201012010split2Othercategory(4%)ismainlylicenseincomeandisomittedfromthisoverviewPhilipsConsumerLifestyleBusinesses12Geographies1PersonalCareHealth&WellnessDomesticAppliancesTelevisionAudioVideoMultimediaMatureMarkets60%40%EmergingMarkets13%7%17%36%13%Accessories10%PhilipsConsumerLifestyleDrachten2011Keyfunctions:- InnovationPersonalCare(IPC)- InnovationDomesticAppliances(IDA)- HighImpactInnovationCenter(HIIC)- productionshaverheadsandshaversSomecharacteristics:- 2.000employeesofmorethan35nationalities- Productionof75millionshaverheadsand6.8millionhighendshavers- Productionvalue180MEURO(2010)- Innovationspend90MEURO(2010)Onthemoveto…acompetitive,consumercentricandgloballyorientedorganization7AselectionofproductsVision2015Philipswantstobeagloballeaderinhealthandwell-being,becomingthepreferredbrandinthemajorityofourchosenmarkets.WebelievePhilipsisuniquelypositionedforgrowththroughitsabilitytosimplymakeadifferencetopeoplesliveswithmeaningful,sustainableinnovations.PeopleAgenda2011MakingGrowthHappen9Strengthenthelearningcapacityoftheorganization– Customizelearningprogramstotheneedsofemergingmarkets– EnhancebestpracticesharingFurtheralignHRcapabilitieswithgrowthagenda– AllocateHRcompetencecentersclosetoemergingmarkets– EnsureeffectiveHRintegrationofnewlyacquiredcompaniesEnsurePPMandrewardprogramssupportVision2015– Incorporatelong-termgrowthobjectivesinperformancereviews– Enhancegrowth-enablingincentiveprogramsEnhanceourcapabilitytoattractandretainthebest– Boostouremployerbrand– Strengthenourrecruitmentprograms– AccelerateinductionSimplifyHRservicedeliveryexperience– ImplementHRSimplifiedinNAandSingapore– Prepareforlaunchin6emergingmarkets,incl.ChinaResourcetowin:TranslateVision2015intostrategicworkforceplansforkeyBMCs– Embedstrategicworkforceplanninginexistingbusinessprocesses– Specifycapacityandcapabilitygapsanddefine2011priorities AddressleadershipandtalentchallengestoensureVision2015achievement– Developlocallyrelevanttalentprogramsforemergingmarkets– Designandimplementinitiativestofosterentrepreneurialleadershipstyle– Secureourleadershipandtalentpoolmirrorsthecompositionofourmarketopportunities(geographies,gender)ImplementstrategyDriveperformanceChangeRoadmapDraft,version21-Dec-2010ManagementdevelopmentPhilipsLeadershipCompetencyframeworkConfidentialC-HRM,October201011WhatisPPM?• PPMisaglobalprocessforperformancemanagementwithinPhilips.Thetargetgroupisallemployeesofgrade50andabove,butalsoemployeesbelowgrade50areincluded.Approximately42,000PhilipsemployeesworldwideparticipateintheelectronicPPMtool• PPMisaboutthedialogbetweentheemployeeandmanageraboutemployeesperformanceanddevelopment(reviewandfuture)Developmentfocuseson:-howyoudevelopyourselfPerformancefocuseson:- whatyoudoinyourjob(results)- howwellyoudoyourjobDevelopmentReviewPlanPerformanceReviewPlanConfidentialC-HRM,October201012Whatsinitforme?YouhaveaclearunderstandingofhowyoucontributetorealizingbusinessgoalsalignedwiththestrategyandbusinessagendaYouknowwhatisexpectedfromyouinyourjobYoulearntowhatextentyoumeettheseexpectationsrelativetopeersYoureceivefeedbackonwhatyouaredoingwellandhowyoucanbecomemoreeffectiveinyourcurrentjobYouhavethepossibilitytodevelopyourselfandagreewithyourmanagerhowtheorganizationwillsupportyouinyourdevelopmentandyourfuturecareerwithinthecompanyYoudeployandrealizebusinessgoalswithyourteamYouhavetheopportunitytoimprovetheeffectivenessofyourteammembersandestablishaperformancecultureYousetclearobjectivesforyouremployeesandevaluateandcalibrateyourteammembersonwhattheydointheirjobandhowwelltheydotheirjobYouhavetheopportunitytodevelopyourpeopleAsanemployeeAsamanagerBacktocontents13Managingyourperformancewillfocusonboth'what'and'how'-thePPMgrid‘What'(Results)BacktocontentsValuedplayerImprovementrequiredRolemodelExceptionalresultsSolidresultsPartiallymeets‘What''How'(Behavior)Solidresults/ValuedplayerExceptionalresults/ValuedplayerSolidresults/Improve