Talent Management at Avanade

Talent Management at Avanade Stephen Kelly June 2016

Š 2015 Avanade Inc. All Rights Reserved.

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Purpose of the session today…

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Provide a perspective on key talent challenges faced today

2./

Explore Avanade’s Integrated Talent Management Approach

3./

Provide examples of our Talent Management Model in action

© 2015 Avanade Inc. All Rights Reserved.

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Avanade? Who? Why?

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A leading digital innovator

Š 2015 Avanade Inc. All Rights Reserved.

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FY16 – FY18 People Priorities Transforming the way that we work Developing Exceptional People and Teams Transform our learning offerings, to position ourselves as having a world-class ‘digital’ learning culture.

Accelerate our Leadership pipeline by building a strong and diverse cadre of individuals and teams across the Avanade People Ecosystem

Support Avanade’s Imagine 2020 agenda by delivering and executing on the four key elements of our people ecosystem enablers being Talent Communities, Talent Framework, GDN at full power and Associate Network

Drive business growth by leveraging Market Units to deliver differentiated solutions to our clients Bring our Imagine 2020 Strategy, Vision, Values and Operating Principles to life for our people Reinvigorate direct growth and ensure we are doing the right business with the right clients in each of our newly-defined market segments Reinforce our position as the leading digital innovator and build a vibrant Microsoft-centric Avanade ecosystem Establish an Advisory Services capability to support growth of Cloud and Digital in chosen geographies Accelerate operational cost management and delivery excellence across our business

Celebrating, engaging and retaining our Talent Enhance our rich ‘Go Orange’ experience for all within the Avanade People Ecosystem Enable our People to be recognized for their brilliance Combat against our number one people issue, attrition

Strengthen our ability to differentiate ourselves in the marketplace and attract the top Imagine 2020 talent while realizing a more invigorating candidate experience

© 2015 Avanade Inc. All Rights Reserved.

Winning our Imagine 2020 Talent 5

Avanade’s size and scale ambitions…

60,000 Double Revenue from 2015

30,000 20,000

REVENUE TIME

2010

PEOPLE

REVENUE

PEOPLE

2015

© 2015 Avanade Inc. All Rights Reserved.

REVENUE

PEOPLE

2020

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Major talent challenges we face‌

Rapidly Rapidly changing changing markets markets

Skills & capability shifts

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Talent of tomorrow sees the world differently

Increased competition for acquiring & retaining Talent 7

The vision for our People Ecosystem Our People Ecosystem transformation The below sets out the vision for our People Ecosystem transformation.

Avanade 2020

Our vision To be the leading digital innovator, realizing results for our clients and their customers through the power of people and the Microsoft ecosystem.

People Ecosystem (c.62,000 people) 9,500 client facing

Driving our People Ecosystem success through 4 key initiatives 1

$bn+

33,000 GDN

In FY16 we created client focused Talent Communities which are responsive to the fast pace of the industry

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In FY17, we will create an Associate Network to maintain agility and speed within an ever-changing marketplace

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FY18 we see us establish a revitalized Talent Framework to enable capability development

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Continuous focus on harnessing the full power of the GDN to remain competitive

Š 2015 Avanade Inc. All Rights Reserved.

Delivering our Promise to our Clients

17,500 Associates (28%) N.B. The ecosystem is a supply side model which will dynamically shift depending on market and client demand, i.e. likely that only around 25% of the Associate network will be engaged at any one time.

Project headcounts are aligned to the 2020 Financial Model Accelerated case (2 March 2015)

This document contains <confidential> data per Avanadeâ&#x20AC;&#x2122;s Data Classification & Protection Standard

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Our integrated Talent Management approach

Business needs as aligned to Imagine 2020 goals

Integrated Talent Management Approach

Š 2015 Avanade Inc. All Rights Reserved.

Measurable Talent and Diversity Results

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Attracting & Acquiring Imagine 2020 Talent

Enhance candidate experience Redesign of our Career Site resulting in 90 second average time to complete job application

Build & expand employer brand

Diversity & innovation

Developed a clear and consistent Employer Brand in all Markets

Heavy diversity focus on recruiting women in technology

90% candidate SAT after Interview Process Redesign

Life at Avanade video series highlighting who our people are & what they do

Introducing blind sifting on resumes & reinvigorating candidate slating guidelines

Exploring further technology opportunities to increase a digital and personalized candidate experience

Digital Recruiting Messaging Platform to ensure consistent tone of voice and Avanade story across all social media platforms

Initiating unconscious bias training for recruiters, hiring managers & Senior Leaders

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Innovation emphasis at events and in messaging 10

Experience is everything…

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Assessing & Preparing to be future ready…

Our four step process Role Review 1. Role Review Assessing core and strategic roles

4.Transition Transition Review Review Ready to Transition (RTT)

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2.People People Review Review Client Facing and Functional Talent Reviews

3.Succession Succession Review Review Ready Now (RN) and Ready Future (RF) Successors © 2015 Avanade Inc. All Rights Reserved.

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…Ready to Transition View

487 Strategic and Core Roles 144 Strategic Roles 84 of these 144 roles have Ready Now Successors

60 of these 144 roles without Ready Now Successors

17 of 144 are Ready to Transition (RTT) 12 ready to transition now with Ready Now Successors

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5 of these are RTT with No Successors

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Our Talent Management scorecard Gender Total Leaders Diversity Attrition

Leadership Pool

Leadership Acquisition

FY14 840

FY15 923

FY16 930

13.3%

12.3%

16%

121 (14.4%)

145 (15.7%)

157 (16.9%)

Leadership Potential

Leadership Succession Roles with Succession Plans

FY14

FY15

FY16

413

524

487

# of Strategic Roles and % Strategic Roles with Ready Now (RN) Successors

137 (36%) © 2015 Avanade Inc. All Rights Reserved.

162 (47%)

144 (56%) 14

This is important to us…

People are our business…

Talent is the most critical issue after our Clients

We have strong Executive buyin. Two of our Four Executive meetings each year are focused on Talent

As Executives we are assessed on the progress we make around our Talent agenda

© 2015 Avanade Inc. All Rights Reserved.

33% of our Senior Executives rotate each year.

Over the last three years we have retained all Executive Talent important to us

We have reduced our Succession risk over the last three years… but there is still more to do

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Because ultimatelyâ&#x20AC;Ś

People build brands and brands build business Š 2015 Avanade Inc. All Rights Reserved.

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Questions?

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