Veronika Hucke, Global Head I&D

26 February 2015

Driving change systemically:

Philips’ Inclusion & Diversity Strategy

3 26 February 2015

Content

• Philips overview• 2011 I&D status• Agenda setting• Strategy overview• I&D in Talent

Management• Outcomes• Q&As

Early 2011 status: Diversity targets out of reach

3 26 February 2015

2008 2009 2010 2011 2012 Target

5% 5% 5% 0% 10%

Share of female executives Share of executives with growth market nationality

2008 2009 2010 2011 2012 Target

10%

10%

11%

0% 15%

4 26 February 2015

3 26 February 2015

Aligning business and I&D strategy

• Markets• Portfolio• Talents

5 26 February 2015

Understand and address cultural barriers

• Networked• Western• Extraverted

13 26 February 2015

Philips I&D Strategy 2012 - 2016

I&D fully embedded in culture change initiatives

Inclusive talent management Targeted plans for specific needsPlan

Vision

D&I Framework

Deep leadership commitment

8 26 February 2015

Driving cultural change VIDEO

14 26 February 2015

Talent Management as key enabler for change

12 26 February 2015

Old pool approach did not power I&D

• Pool composition• Networked culture• Lack of transparency

18 26 February 2015

New approach supports I&D ambitions

Succession planning considers MT diversity requirements

Performance & potential evaluated of all employees to identify succession candidates.

Dedicated follow up on diverse talents

External mapping supplements non-diverse plans

Targeted measures to increase inflow of diverse talents

15 26 February 2015

Support grooming of diverse leaders

E.g.• Visibility of talents globally• Follow up on diverse candidates• Strong succession plans = diverse • All roles are posted

15 26 February 2015

Outcomes

• D&I systemically embedded in competencies and key HR processes

• Increased diversity of executive populationo 18% women, up > 60%o 15% growth market nationals,

up > 70%