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Case Study Philips: An Agile,

Integrated Talent Management

Approach

Mark VlaanderenGroup Human Resources

February 2017

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3

a year by 2025

We’re aiming to improve the lives of

three billion people

We strive to make the world healthier and more sustainable through innovation

We target healthcare customer and consumer needs along the health continuum

Healthy living

Health continuum

Prevention Diagnosis Treatment Home care

Connecting care in the home to

improve quality of life

Providing propositions for

healthy living

Supporting predictive and

preventative care

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We build on our strong leadership positions

Monitoring, informatics and connected care

Global top 3Magnetic Resonance

Global leaderImage-guided interventions

Global leaderUltrasound

#1 in ChinaAir

Global leaderMale Grooming

Global leaderOral Healthcare

#1 in North AmericaHome Monitoring

Global leaderMother & Childcare

Global leaderSmart catheters

Global leaderSleep & Respiratory

Care

#1 in North America

Cardiology Informatics

Global leader

Patient Monitoring

Global leaderNoninvasive ventilation2

>60% of sales from businesses with global leading positions1

Source: GfK, Nielsen, Euromonitor, Frost and Sullivan, Home Healthcare TBS, PCMS market insight. 1 Defined as the positions in which Philips has a top 3 position globally. 2 Based on non-invasive ventilators for the home.

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Present in more than +100 countriesPhilips’ seven largest markets

United States

€7.5billion

1 Seven largest markets by sales in 2015.

China

€2.8billion

Germany

€1.4billion

France

€806million

India

€845million

Netherlands

€639million

Japan

€1.0billion

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Talent

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Our approach focused on identifying leaders early, and accelerating their growth …

Identified High Potentials enter a program to develop them as GM

The Talent approach built on critical foundational elements

One leader profile

Competency based Assessment

Earmarked top talent

Standardized development

Prescribed career paths

Dedicated talent brokers

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and in 2011 we killed the program……because it wasn’t good enough!

… changing challenges

… poor prediction

… 97.9% neglected

… different needs

… differentiated progression

… no ROI

The Talent approach built on critical foundational elements

One leader profile

Competency based Assessment

Earmarked top talent

Standardized development

Prescribed career paths

Dedicated talent brokers

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So …

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In 2012 we set our Philips Talent Agenda, integral to the foundations of our company’s strategy

Our Talent Agenda continues to focus on the following top three talent priorities:

1. Ensure right leaders to deliver our business agenda

2. Build a strong leadership pipeline

3. Maximize all employee’s potential to contribute and grow in Philips

Deep Market Insights

Our People

Philips Brand

Technology Innovation

Global Footprint

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One leader profile

Competency based Assessment

Earmarked top talent

Standardized development

Prescribed career paths

Dedicated talent brokers

Building an Integrated Talent Management approach that enables organization agility

Business based planning

Potential and Successors

Develop everyone

Personalized development

Critical experience

Leader as career coach

Integrated Talent Management Approach

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Building an Integrated Talent Management approach that enables organization agility

• Business based planning

• Potential…and Successors

• Develop everyone

• Personalized development…

• Critical experience

• Leaders as career coach

Transparent career dialogues Continuous + integrated cycle Global Technology Platform

Continuous + integrated cycle

Transparent career dialogues

Global technology platform

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… and continue on our journey

• Evolution of Potential

• Career Navigation

• Daring moves

• Plug & Play programs

95% of all employees

have a development dialogue + plan

71%key positions filled

internally; 30% externally of which

23% from HVTs90%

talent in top boxes on PP grid is on a

succession plan

Succession Conversion up

from 25% to >50% and for best

practice areas passing

75%

85% reduction in talent staff

We are excited about progress since …

“I didn’t like hearing I wasn’t on the succession plans I

wanted. But having that visibility helped me really focus

my development—my manager supported me and I was

able to do training and mentoring that prepared me for

the type of role I want eventually.

“I was in the HIPO program too. Loved the programs, but in

the end I’d rather talk about real opportunities and work

together to get there.”

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