Talent Management at Kellogg

©2007 Kellogg Company – Global Learning & Development

STEP Meeting

2007

Kellogg and Keebler

Integrating Two Strong Cultures

Kellogg and Keebler

Kellogg Human Resources Strategy

Goal Setting and People PlanningGoal Setting and People Planning – setting and communicating organization and department goals for the year so that employees understand how their individual contributions support our corporate goals.

Performance Management (PMP)Performance Management (PMP) – translating corporate and team priorities into individual accountabilities and measuring what they achieved as well as how they did so.

Career DevelopmentCareer Development – aligning employees’ career interests with development opportunities to help them succeed and grow in current roles and prepare for future roles.

Succession ManagementSuccession Management – ensuring we have the right people in the right positions – now and in the future – to meet our corporate goals.

Kellogg Talent Management has Four Components

Talent Management Key Activities

Timing Activity

Jan

Feb

• Talk with your manager and set your accountabilities for the year

• Talk with your manager and complete your Individual Development Plan

Mar • Participate in a year-end review.

AprMay

Jun

Jul

• Participate in a midyear check-in

Aug SepOct

Nov

Dec

• Complete year-end self-assessment

• Send your self-assessment to your manager

What Talent Management Means to You

Personal input on your accountabilities

Ongoing coaching to stay on track

Regular performance discussions to know how you measure up

Rewards for your efforts

A clear career path

An understanding of how you impact company success

Talent Management – Employee Perspective

Talent Management

Talent Management 2006 Survey Findings:

• Process provides structure, clarity, consistency and focus to manage performance and develop careers

• Both employees and managers need to focus on open, constructive and timely communication

The Process

• Based on our strategy, the Global Leadership Team initiates cascade of corporate goals

• Business units and Functions, teams and individuals use the corporate goals to set their goals for the year

RESULT – Clear line of sight between corporate goals and how your individual contributions support them

Goal Setting & People Planning

Manager’s Role

Employee’s Role

• Ensures your team’s strategy and your goals are aligned with company strategy

• Communicates “line of sight” to the team

• Learn company and team priorities and identify ways to personally support them

Goal Setting & People Planning

KelloggPriorities Organization

Unit Priorities

Department /Manager Priorities

IndividualAccountabilities

• Communicate Priorities to Organization Units

• Review Kellogg priorities to see what can be impacted

• Identify departments / functions to best impact priorities

• Develop key deliverables to meet priorities

• Ensure linkages between Kellogg priorities and BU priorities

• Review Organization Unit priorities to see what can be impacted

• Develop department specific key deliverables to meet priorities

• Ensure linkages between BU priorities and key deliverables

• Identify Department / Manager priorities that can be impacted

• Develop individual accountabilities and measures to meet priorities (PMP)

Linking Individual Accountabilities to Kellogg

Priorities

Goal Setting & People Planning

• Deliver on all budget commitments – NSV/OP/CF

• Grow margins via continuous improvements in price/mix/ innovation, cost reduction and efficiency gains

• Grow Ready To Eat Cereal share

• Strengthen U.S. Snacks and expand Snacks worldwide

• Continue our focus on Inclusion and Diversity to better reflect our values and the consumers we serve

• Establish a worldwide talent management process that is robust and complete to help develop our people resources

• Improve employee health and safety worldwide

• Develop a stronger innovation pipeline

• Build a results-driven culture focused on our values

• Selectively review acquisitions/ alliances to support our strategy

• Carefully review selected geographic expansion

DELIVER RESULTS CREATE THE FUTURESTRENGTHEN THE ORGANIZATION

Kellogg Company Priorities 2007

Goal Setting & People Planning

The Process

• Provides structure for you and your manager defining accountabilities and checking progress throughout the year

• At year end, you review what you accomplished as well as how you did it

• Guides your manager’s options for rewarding your achievements

Performance Management

Manager’s Role

Employee’s Role

• Schedules one-on-one discussions to set performance accountabilities and direction.

• Conducts reviews including midyear check-ins of progress and year-end review for performance and compensation.

• Provides ongoing feedback and coaching throughout the year on performance.

• Develop 4-6 personal accountabilities with your manager that support business unit / function and team priorities and drive results. Know what to do and how to do it.

• Participate in a midyear check-in conversation with your manager

• Complete a year-end self-assessment to describe how your performance measured up against your accountabilities for the year.

• Participate in a year-end performance discussion to review your results for the year.

Performance Management

The Process

• Succeed and grow in your current role

• Prepare for future roles

You and your manager discuss your career goals and identify development opportunities that can help you:

In 2006, the Kellogg Talent Management survey responses indicated that 81% of employees have an Individual Development Plan, but only 65% have a good understanding of their career/growth options at Kellogg. (Both items are up 4% from 2005)

Career Development

Managers’ Role

Employees’ Role

• Reviews and discusses your Individual Development Plan (IDP) based on existing skills and developmental opportunities.

• Discusses development progress during midyear check-in.

• Provides ongoing feedback and coaching throughout the year on development progress.

• Complete a self-assessment of your core competencies, career goals and accomplishments.

• Draft an Individual Development Plan and discuss with your manager. Include specific development activities tied to current PMP accountabilities and future career opportunities.

• Actively pursue your development plans.

Career Development

The Process

• Our leaders continually assess our talent, to ensure the right people are in the right place to achieve our goals

• Through talent reviews, we ensure we have plans in place to develop our people and deliver on our strategy

Succession Management

Managers’ Role

Employees’ Role

• Reviews your team and assesses potential needs and development opportunities

• Communicates to you any information that might help you better develop for the future

• Complete a self-assessment of your core competencies, career goals and accomplishments.

• Draft and Individual Development Plan and discuss with your manager. Include specific development activities tied to current PMP accountabilities and future career opportunities

• Actively pursue your development plans

Succession Management