1. law, govt and politics
2. legal issues
3. human rights

Equitable Talent
Development/
Succession Planning
Barbara Frankel
SVP, Executive Editor
April 14, 2015
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2014 DiversityInc Top 50 Companies for Diversity
1.  Novartis Pharmaceuticals
Corporation
2.  Sodexo
3.  EY
4.  Kaiser Permanente
5.  PricewaterhouseCoopers
6.  MasterCard Worldwide
7.  Procter & Gamble
8.  Prudential Financial
9.  Johnson & Johnson
10.  AT&T
11.  Deloitte
12.  Accenture
13.  Abbott
14.  Merck & Co.
15.  Cummins
16.  Marriott International
17.  Wells Fargo
18. 
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31. 
32. 
33. 
34. 
35. 
Cox Communications
Aetna
General Mills
KPMG
Target
IBM
ADP
New York Life
BASF
Eli Lilly and Company
Northrop Grumman
WellPoint
Colgate-Palmolive
Kellogg Company
Dell
The Coca-Cola Company
The Walt Disney Company
Kraft Foods Group
36. 
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50. 
TIAA-CREF
Allstate Insurance Company
Toyota Motor North America
Wyndham Worldwide
Rockwell Collins
Medtronic
Time Warner
Verizon Communications
Comcast
TD Bank
Monsanto
KeyCorp
JCPenney
AbbVie
Nielsen
2015 list announced April 23!
© DiversityInc. Reproduction Prohibited.
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Best Practices Talent Development: Mentoring
• Musts to Succeed
• Program is formal (company run)
• Senior executives are mentors (top 3 levels)
• Success tied to exec comp
• Cross-cultural pairings
• At least 50%
• Cultural-competence training in advance
• Monitor pairs every 3 months
• Break up toxic relationships
• Assess success
• Measure engagement, retention, promotions
• Publicize results
© DiversityInc. Reproduction Prohibited.
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Senior-Leadership Involvement Crucial
Have formal, cross-­‐cultural mentoring % of top execs par7cipa7ng 98% 72% 69% 2008 Top 50 2015 Top 50 2008 Top 50 2015 Top 50 41% 2008 Top 50 2015 Top 50 © DiversityInc. Reproduction Prohibited.
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Have Formal Succession-Planning in Place
96% 90% 90% 90% 80% 2008 Top 50 74% Women Blacks 74% La:nos 74% 2015 Top 50 Asians © DiversityInc. Reproduction Prohibited.
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Succession Planning: Best Practices
• Mandatory diverse slates
• Realistic to available talent pool
• All applicants must be seriously qualified
• Cultural-competence training for exec recruiters
• Both internal and external
• Understand unconscious bias
• Consider looking outside company/industry
• Top 50 companies increasing external senior hires by 10%
• In-depth on-boarding crucial
© DiversityInc. Reproduction Prohibited.
9
Have Mandatory Diverse Slates
92% 56% 2008 Top 50 2015 Top 50 © DiversityInc. Reproduction Prohibited.
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High Potentials: Best Practices
• Keep diversity in mind when identifying
• Have specific goals in mind
• Reject slates that aren’t diverse enough
• Include other diversity dimensions – orientation, disability,
veteran status
• Be transparent about who is high potential
• Old-school secrecy leads to turnover
• Have additional programs for under-represented high
po’s
• Don’t assume everyone has the same background/experience
• Exposure to senior leadership critical
© DiversityInc. Reproduction Prohibited.
Succession
Management for a
Diverse Talent
Community
Latoria Farmer
Executive Director
Diversity & Corporate Responsibility
Key Areas
1. High Performance Culture
2. Defining High Potentials
3. Talent Development Ecosystems
4. Benefits and Best Practices
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 283776
12
KPMG’s Commitment to Diversity and Inclusion
v  Strong infrastructure
v  Defined diversity goals
v  Diversity Networks
v  Inclusion Councils
v  Women’s Initiatives
v  Developing Diverse Leaders
v  Supplier Diversity
v  Inclusion Leadership Forum
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 283776
13
High-Performance
Culture
The best
with the
people
skills and
determination
to deliver
above and
beyond
14
Cultivating High Potentials
v  Attributes characterized as most valuable
v  Skills and capabilities
v  Global experience and cultural acuity
v  Receptivity to change
v  Steward of talent
v  Career advocacy
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 283776
15
Talent Development Ecosystem
KPMG
Business
School
Leadership
Teams
Mentor
Performance
Management
Leader
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 283776
Sponsor
16
Talent Development
Pride Advisory
Board
Selects emerging LGBT
leaders for P15 to support
talent-centric priorities,
improve the recruitment
and retention of LGBT
professionals, and
promote educational
awareness.
Women’s
Advisory Board
Leverages Stacy Lewis
Rising Stars, Executive
Leadership Institute for
Women, and Career Life
Strategies to underscore
retention, development,
and advancement.
Hispanic Latino
Advisory Board
Assigns partners as career
advisors to high performing
senior managers, directors
and managing directors.
Regularly engages with talent
pipeline to affirm advocacy.
Abilities in Motion
and Veterans
Advisory Boards
Focuses on the recruitment
of people with disabilities
and veterans in the
workplace, as well as
successful navigation of the
work environment. AIM
launching 1in5 in 2015.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 283776
Asian Pacific
Advisory
Board
Champions Leadership
Development Series
for senior managers and
directors designed to
enhance leadership
acumen through
multiple touch points.
Diversity
Advisory Board
Identifies high potential
and high performing
senior managers,
directors and managing
directors for career
advocacy and
executive coaching.
African American
Advisory Board
Hosts Leadership Insights
Summit to develop deeper
relationships with high
performing managing
director and partner
candidates, and provide
visibility with senior
leadership.
Partner
Pipeline
Recurring touch points
between Chief Diversity
Officer and Functional Vice
Chairs to understand the
diverse complement of
managing director and
partner candidates.
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Benefits and Best Practices
v  Benefits
v  Cross cultural teams added perspective on client solutions
v  Cross functional teams deliver depth and breath of skills
v  Business leaders managing diverse, dynamic teams
v  Managers and above build inclusive leadership competency
v  ERG members support diverse enterprises
v  Best Practices
v  Increase diverse management serving premier accounts
v  Integrating D&I into market development resources
v  Retention investments in diverse talent pipeline
v  Employee engagement diversity scores at or above firm average
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 283776
18
Corporate Responsibility Highlights: Diversity & Inclusion
“
We respect
the individual.
At KPMG, diversity and inclusion are woven into everything we do.
We know that every individual in our organization adds value and contributes to our ability to provide
exceptional service to our clients. We…
•  Seek out, engage and recruit top-performing diverse individuals to join us;
• 
” • • 
Invite professionals into career-enriching opportunities through networking, mentoring, KPMGsponsored events, professional organizations, and community involvement;
Support diversity and inclusion through a strong national infrastructure, and
Pursue and support vendor relationships with businesses of diverse ownership.
BOARD OF
DIRECTORS
KEY PRIORITIES:
TALENT
DEVELOPMENT
OFFICE
ADVOCACY
PROCUREMENT:
23%
29%
MARKETPLACE
BRAND
OF TOTAL
SPEND
WITH SMALL AND/OR
DIVERSE BUSINESSES
DIVERSE
AS OF OCT 1, 2014
63%
EMPLOYEES &
PARTNERS
ARE DIVERSE
MORE THAN
62%
NEW HIRES
ARE DIVERSE
56%
PROMOTIONS
INTO & WITHIN
MANAGEMENT
ARE DIVERSE
KPMG TRAINING SUPPORTS
INCLUSIVE CULTURE:
RESPECT AND DIGNITY, LENS OF INCLUSION,
STRAIGHT FOR EQUALITY &
DISABILITIES ETIQUETTE AWARENESS
TRAINING
5
NETWORK ADVISORY BOARDS
OFFER DIVERSE LEADERSHIP DEVELOPMENT FOR HIGH POTENTIAL
AND HIGH PERFORMING EMPLOYEES
AFRICAN AMERICAN LEADERSHIP
INSIGHTS SUMMIT, WOMEN’S
Rising Stars, Asian Pacific
Islander Leadership Development
Series, Pride (LGBT) 15,
Abilities in Motion 1i5
NOTE:
METRICS
OF SEPT 30,limited
2014 liability partnership and the U.S. member firm of the KPMG network of independent member
© 2014
KPMG
LLP,AS
a Delaware
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 283776
40%
171
DIVERSITY NETWORKS
AND COUNCILS
46%
OF PARTNERS
AND EMPLOYEES
ENGAGED IN OF EMPLOYEE DIVERSITY
DIVERSITY
NETWORK LEADERS RATED
HIGH PERFORMERS IN FY 14
NETWORKS
DIVERSITY NETWORK MEMBERSHIP
FY14 VS. FY13
OVERALL
GROWTH
+42%
19
© 2014 KPMG LLP, a Delaware limited liability partnership and
the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 283776
The KPMG name, logo and “cutting through complexity” are
registered trademarks or trademarks of KPMG International.
Baxter International Inc.
Saving and Sustaining Lives Worldwide
Equitable Talent Development and Succession Planning
Irina Konstantinovsky
April 14, 2015
Copyright © 2014 Baxter. All Rights Reserved.
Agenda
•  Baxter Company Overview
•  The Case for Developing a Diverse Pipeline
•  Global Inclusion & Diversity at Baxter
•  Talent Development Strategies
–  Integrated Talent Management
–  Knowing Our Talent
–  Defining High Potentials at Baxter
•  Creating Opportunities for Exposure and Development
Copyright © 2014 Baxter. All Rights Reserved.
22
Who We Are…
Saving and Sustaining Lives
Baxter is a global, diversified healthcare company applying innovative science to develop
specialty therapeutics and medical products that save and sustain lives.
Baxter products are infused, injected or inhaled more than two billion times annually—or
six million times a day—to treat life-threatening acute or chronic medical conditions.
People with hemophilia, end-stage kidney disease, primary immune deficiency and a range of
other diseases depend on our products at their times of most urgent need.
Baxter 2014 Performance
• $16.7 billion net sales
• $1.4 billion invested in R&D
• Nearly 60% of sales outside
the U.S.
Copyright © 2014 Baxter. All Rights Reserved.
23
Why care about Talent? Emerging trends…
Business leaders recognize the compe::ve advantage of having quality talent and pipeline in their organiza:ons There is a con:nued focus for HR – from transac:onal/opera:onal to strategic and business-­‐driven partner Decline in employee engagement and loyalty among key segments… while in others the war for talent is hea:ng up… again! Emergence of new global economy and global compe::on for talent Copyright © 2014 Baxter. All Rights Reserved.
24
The Talent Pipeline Requires Focus on Diverse Talent
Global distribution of the talent pipeline1
White males
10%
% of Asians say they
42
have to work harder than their
colleagues to feel included
40% of African-Americans
say they feel like outsiders in
their corporate cultures
55% of Hispanics believe
there are disadvantages to
having a sponsor of color
% of Caucasian executives
7believe
protégés of color are
90%
Women and
multicultural
individuals
Source(s):
1Center
for Talent Innovation
Copyright © 2014 Baxter. All Rights Reserved.
less qualified than their
Caucasian counterparts
% of Caucasians believe
90
a person of color will rise to the
top of their company
25
Baxter’s Vision to Global Inclusion and Diversity
By valuing differences, our
teams will be…
•  more innovative
•  better connected to our
diverse world of patients,
and business partners
Making Baxter a more
competitive and sustainable
company.
Copyright © 2014 Baxter. All Rights Reserved.
26
Baxter’s Four Pillars of I&D
WORKFORCE
“Our People”
WORKPLACE
COMMUNITIES
MARKETPLACE
“Our Culture”
“Partnerships”
“Our Advantage”
Cultivating an inclusive culture
in which diversity is valued
Building community
partnerships
Innovative customer connections
& supplier partnerships
Goal: Building a globally diverse organization
Attract
Understand and address
the diverse needs to our
employees, customers,
business suppliers,
patients and caregivers.
Develop
Retain
Copyright © 2014 Baxter. All Rights Reserved.
27
Driving Talent Development at Baxter
Assessing
Talent
Developing
Talent
Knowing
Talent
Talent Development is successfully achieved at Baxter when leaders know their talent,
objectively assess their talent, and effectively develop their employees.
Copyright © 2014 Baxter. All Rights Reserved.
28
One Consistent Global Talent Management System
Talent Profile
The cornerstone of our talent inventory and career development activities at Baxter
Knowing
Talent
Copyright © 2014 Baxter. All Rights Reserved.
29
Key Areas of Assessment
Performance and
Leadership Potential
Risk of Loss and
Impact of Loss
Assessing
Talent
Copyright © 2014 Baxter. All Rights Reserved.
30
How We Determine Potential
LEADERSHIP POTENTIAL is an assessment of one’s ability and likelihood to
advance in position and assume greater leadership responsibility over time.
It is the combination of four ratings:
Leadership Promise
Mastery of
Complexity
Balance of Values
and Results
Personal
Development
Orientation
*Adapted from DDI
Copyright © 2014 Baxter. All Rights Reserved.
Assessing
Talent
31
Rater Tendencies & Bias Overview
Bias
Descriptions
Confirmation Bias
Encourages us to ignore, downgrade or overlook evidence or information that contradicts our preconceived
notions, or that disproves our theories and hypothesis about things. In a talent discussion, it may meant hat you
will look for evidence supporting your preconceptions about particular people, and overlook or ignore evidence to
the contrary
Halo Effect
A positive view, or single strong attribute, colors the view of things that person does subsequently. For example,
someone gives a polished presentation, and we automatically assume their competence in other areas.
Horns Effect
Opposite of Halo effect, where we allow a negative view or experience of someone to taint our perceptions of
other aspects of their performance.
Anchoring/Similar
to Me
Subconsciously or consciously give things a greater weighting than they actually merit. We might also anchor
around qualities that we either possess ourselves, or that we value personally. So if the person is ‘like us’ in
some critical way, we may ascribe greater potential to them than evidence supports.
Loss Aversion
Tendency to protect ourselves against loss, to veer away from risk. At it’s extreme it can be a complete aversion
to taking any kind of risk at all, but it can also appear as over cautiousness, protecting one’s own team or an
unwillingness to make difficult decisions.
Self Interest Bias
Decision makers veer towards decisions or solutions that will result in greater gain for them personally. In
calibration discussions, this can manifest itself as promoting people the leader personally hired
Comparison
Tendency to rate people in comparison to other individuals at the exclusion of job standards
Primacy/Recency
Ratings reflect only initial (Primacy) or recent (Recency) observations of performance
Leniency/Strictness
Majority of individuals rated at high end of the scale (Leniency) or ratings at the low end of the scale (Strictness)
Stereotyping
Tendency to generalize across groups and ignore individual differences or performance
Assessing
Talent
Copyright © 2014 Baxter. All Rights Reserved.
32
Bringing it all Together
OC
Development Plan
(Direct Reports to OC /Region Leaders)
Individual
2009 OI Workbook v8
Development Needs
Top 1-3 Development Actions
Competencies/areas for development
Specific development activities that include relationships,
on-the-job experiences and education/training
18
Confidential
Baxter’s annual process used to identify
organization and people-related needs that
are critical to enhance Baxter’s overall
performance, productivity and profitability.
v  Performance and leadership potential
v  Robust succession plans
v  Risk mitigation plans
v  Talent development and movement
Copyright © 2014 Baxter. All Rights Reserved.
We pay particular attention to our
Diverse and Top Talent
Assessing
Talent
33
Creating Opportunities for Exposure and Development
•  Internship programs
•  Business Resource
Group (BRG)
Leadership
Opportunities, including
work stream leaders
•  Early Development
Programs in Finance,
Marketing, Technical, IT,
etc.
•  Accelerator Program
•  Diverse Mentoring
Program in key
businesses and
functions
•  BRGs connecting
members with Sr.
Leaders and others
providing opportunities
for advancement
•  Sponsorship initiative
(in development)
Copyright © 2014 Baxter. All Rights Reserved.
•  Leadership Programs
•  Management
Programs
•  External Programs
•  Power of Managing
Inclusively
•  BRG events and
activities for
development
Developing
Talent
34
Not a Silver Bullet: Establish Key Talent Objectives
Build talent from within the organization
Focus on past performance
Promote on Results
Development based on performance
Learn and then promote
Focus on skill depth
Copyright © 2014 Baxter. All Rights Reserved.
Buy talent from external labor market
Focus on future potential
Promote on Behaviors
Development based on business need
Promote and then learn
Focus on skill breadth
35
In closing…
Establish key objectives to ensure your organization has an
equitable talent development strategy
Ensure you have processes and tools to
“know the talent”
Have rigorous ways and tools for
leaders to assess talent on
performance, potential and risk
Offer a multi-pronged approach
to developing talent
Copyright © 2014 Baxter. All Rights Reserved.
Assessing
Talent
Developing
Talent
Knowing
Talent
36
Questions
Copyright © 2014 Baxter. All Rights Reserved.
37
38
2015 Web Seminar Schedule
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
May 5 – Asian-Pacific Heritage Month Cultural Competency
May 19 – CEO Commitment
June 9 – LGBT Pride Month Cultural Competency
June 23 – DiversityInc Top 50 Best Practices
July 21 – Supplier Diversity
Sept. 8 – Hispanic Heritage Month Cultural Competency
Sept. 22 – Mentoring and Sponsorship
Oct. 6 -- Disability Awareness Cultural Competency
Oct. 13 – Diversity Councils
Nov. 3 – Diversity Metrics
Nov. 10 – Religion in the Workplace
Please contact customer service at [email protected]
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