American Association of Blacks in Energy

33rd Annual Conference

Leadership Development at Southern CompanyMarsha Sampson Johnson

SVP Human Resources and Chief Diversity OfficerMay 20, 2010

Premier Energy Company Serving the Southeast

Southern Nuclear Southern Power

SouthernLINC Wireless

Attractive Investment

4.4 million customers

#149 on Fortune 500 list

History of sustainable, predictable growth

Strong financial performance

#1 ranked, nine years in a row, electric service provider in customer satisfaction by ACSI

Business Results

Southern Style

Competencies

Leadership

Strong Culture 25,000 + employees strong

Long-tenured workforce

Cultural Tenets– Safety & Wellness– Southern Style– Inclusion

2010 Diversity Inc. Top Company– Top 10 Employers for Blacks– One of 25 Noteworthy Companies

2010 Top Military Friendly Companies (9th out of 100)

Business Results

Southern Style

Competencies

Leadership

Employees: 25,584

Management ≈ 3600

Professional ≈ 8800

Non-Exempt ≈ 5000

Craft Labor ≈ 8000

75% male / 25% female

77% non-minority / 23% minority

Average Service: 18 years

Average Age: 46 years

Leadership Development – A Business PriorityDrivers

Industry Complexity

ChangingWorkforce

Culture of Inclusion

Recruitment &Retention of Talent

Environmental regulation Infrastructure expansion Cost pressure

Retirements across all levels of leadership Multiple generations working together Female & minority representation

Leveraging differences for innovation Changing employee expectations Increasing rate of change – need rapid response Tightening labor market Realities of a mobile workforce Today’s employees expect development

Leadership at All Levels

Development at All Levels

First-Level Managers

Managers of Managers

Executives

Emerging Talent

High potential identification Talent reviews Leadership development programs Projects, assignments, job rotations Internal & external training Coaching & mentoring

Internal leadership training for new managers Leadership development programs Cross-system moves, special assignments/projects Coaching & mentoring

Senior Leadership Development Program (SLDP) University-based leadership training Cross-system moves, special assignments/projects Coaching & mentoring

Leadership training – usually university-based programs System assignments Coaching & mentoring

All Employees Internal & external training (online & classroom) Tuition Reimbursement Program Projects, assignments Coaching & mentoring

Strong Foundational Skills

- Drive/ambition - Understands organization culture- Strong interpersonal skills - Adapts to change- Presence - Learns and applies new skills- Resilience

Future Role Capability

Demonstrates potential to move to the next leadership level and achieve expectations.

HIGH

POTENTIAL

Distinguished Performance

-Technically competent - Embraces company values- Consistently achieves results over time

Leadership Competencies

Adapting & Responding to Change

Critical Thinking

Deciding & Initiating Action

Entrepreneurial & Commercial Thinking

Formulating Strategies & Concepts

Leading & Supervising

Persuading & Influencing

Planning & Organizing

Relating & Networking

Cultural Competence

Technical Competence

Delivering Results

MANAGERIAL LEVEL: First-Level Manager EMPLOYEE: J.K. Sample

Low Low-Mid Mid-Range High-Mid High

COMPETENCIES 1 2 3 4 5 6 7 8 9 10

Adapting & Responding to Change •Critical Thinking •Deciding & Initiating Action •Entrepreneurial & Commercial •Formulating Strategies •Leading & Supervising •Persuading & Influencing •Planning & Organizing •Relating & Networking •

• Blue range is Southern Company benchmark range for first-level manager• Black dots are J.K. Sample’s actual results

Career & Development Planning Partnership

Development Employee Aspirations

Company Needs

Identify what’s required Assess current capabilities Develop plan to close gaps & leverage strengths

Putting it All Together

Business Results

Southern Style

Competencies

Leadership