EDC at 40: POWERING INFINITE POSSIBILITIES

BUILDING A ROBUST COMPETENCY

DEVELOPMENT FRAMEWORK

PSTDUNCON20163 June 2016

Nad Pating [0917 6252532]

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EDC IS A GLOBAL, DIVERSIFIED, RENEWABLE POWER COMPANY

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AND WE ARE A PROUD MEMBER OF THE LOPEZ GROUP

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WE STRIVE TO LIVE BY OUR VALUES OF A PIONEERING ENTREPRENEURIAL SPIRIT, BUSINESS

EXCELLENCE, UNITY, NATIONALISM, SOCIAL JUSTICE, INTEGRITY

EMPLOYEE WELFARE AND WELLNESS

We will become the global leader in geothermal energy as we strengthen

our leadership in the Philippine renewable energy industry

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RENEWABLE SOURCES

Geothermal Hydro Wind Solar

We are committed to providing the present and future generations with a better life with clean and renewable

energy…

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1169MW 150MW

132MW 4MW

EDC PRODUCES A TOTAL OF 1,455 MEGAWATTS TO POWER INDUSTRIES AND HOMES

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WE ARE THE ONLY COMPANY OF THIS SIZE THAT IS COMMITED TO CLEAN, RENEWABLE ENERGY

Bacman Geothermal Business Unit

(140 MW)

Pantabangan/ Masiway

(132.5 MW)

Negros Island GeothermalBusiness Unit

(223 MW)Leyte Geothermal

Business Unit(700 MW)

Mt. Apo GeothermalBusiness Unit

(106 MW)

HYDRO

GEOTHERMAL

GEOTHERMAL

GEOTHERMAL

GEOTHERMAL

WIND / SOLARBurgos Wind FarmBurgos Solar Farm

(154 MW)

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EDC ACCOUNTS FOR 9% OF THE PHILIPPINES’ TOTAL ELECTRICITY PRODUCTION

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EDC HAS 40 YEARS OF HISTORY AND LEADERSHIP IN RENEWABLE ENERGY

EDC was founded under the Philippine National Oil Company

Geothermal identified as a viable source of energy

First 3 MW produced in Brgy. Tongonan, Leyte

The Company launched its Initial Public Offering in the Philippine Stock Exchange

November 29: EDC became a private corporation under The Lopez Group of Companies

Tongonan and Palinpinon 1 Steamfields

1993-1997:Bacman and Palinpinon 2 Steamfields

1996-1999:Leyte & Mt. Apo 1 & 2 Steamfields & BOT Plants

1976 1977 1983 1993 1996 2006 2007

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60% FG Hydro investment

Acquired Palinpinon & Tongonan Power Plants

Acquired Bac-Man Power Plants

Chile

Peru

Entered into a JVA with Hot Rock Ltd. for projects in Chile and Peru

Entered into a JVA with Alterra Power Corp. for geothermal exploration and development projects in Chile

Commissioning of Burgos Wind Project

2015Commissioning of

Burgos Solar Project

2008 2009 2010 2011 2012 2013 2014

5Concessions acquired in Chile (2) & Peru (3)

OUR STRATEGIES HAVE BORNE FRUIT WITH TREMENDOUS OVERSEAS GROWTH POTENTIAL

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2001: RA 9316 OR THE ELECTRIC POWER INDUSTRY REFORM ACT (EPIRA) CHANGED THE LANDSCAPE OF THE PHILIPPINE ENERGY INDUSTRY

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Generation(Power Plants)

Transmission(Higher Voltage)

Distribution(Lower Voltage)

Retail Supply

Prior toEPIRA

~90% NPC and NPC-IPPs,~10% DU IPPs

NPC

Generation(Power Plants)

Transmission(Higher Voltage)

Distribution(Lower Voltage)

Retail Supply

After EPIRA

NGCP (previously TransCo)San MiguelAboitiz

First Gen/EDC

18 Private Distribution Utilities 119 Electric Cooperatives 3 Municipals;

2001: RA 9316 OR THE ELECTRIC POWER INDUSTRY REFORM ACT (EPIRA) CHANGED THE LANDSCAPE OF THE PHILIPPINE ENERGY INDUSTRY

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SHIFT IN ORGANIZATIONAL STRUCTURE

EXPAND ITS INTERNATIONAL FOOTPRINT

DIVERSIFY TO OTHER R.E. PLATFORMS

FOCUS ON OPERATIONAL EFFICIENCY

EDC HAS TRANSFORMED AND CONTINUOUSLY EVOLVING

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HEALTHOverall

Wellness EDUCATIONEmployability &

Entrepreneurship

Values-Formation

LIVELIHOODProfitability

Business Viability

ENVIRONMENTBiodiversity Preservation

Advocacy

OUR ULTIMATE GOAL IN OUR CSR IS COMMUNITY SELF SUFFICIENCY AND SUSTAINABILITY

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We are setting a higher bar for ourselves but, for us, it cannot be any other way. We will help power our nation’s growth ambitions yet achieve this in ways that recognize the need for a livable planet and a livable Philippines.

Federico R. LopezChairman and COO

First Philippine Holdings Corporation

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NOW, LETS TALK ABOUT BUILDING A COMPETENCY FRAMEWORK

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I’LL ASSUME 4 THINGS:

YOU WANT TO LEARN FROM THE SESSION

YOU ALL HAVE IDEAS, EXPERIENCES AND QUESTIONS ABOUT OUR TOPIC

YOU ARE WILLING TO TRY TO BE UNCONVENTIONAL

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LEFT SIDE GROUP:

WRITE 1 BURNING QUESTION ABOUT COMPETENCIES AND COMPETENCY

FRAMEWORKS

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RIGHT SIDE GROUP:

WRITE 1 IDEA/THOUGHT/INSIGHT ABOUT COMPETENCIES/COMPETENCY FRAMEWORK

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WE ARE IN SEARCH FOR INDIVIDUALS WHO CONSISTENTLY DELIVERY SUPERIOR PERFORMANCE

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Knowing is not enough; we must apply.Willing is not enough; we must do.

-Goethe

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competencies• A cluster of behaviors that are

specific, observable, and verifiable.

• These behaviors enable a personto deliver superior performancein a given job, role or situation.

• Form the foundation of critical people practices in the organization.

NOTE THAT THERE ARE VARIOUS COMPETENCY FRAMEWORKS AND MODELS YOU CAN REVIEW AND ADAPT

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Don’t knowwhat to do

Have not done it in the past

Don’t know how to do it

Don’t wantto do it

PEOPLE DON’T PERFORM ON THE JOB AS EXPECTED

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What People KNOW

Technical and/or professional

information needed to successfully

perform job activities

What People HAVE DONE

Educational and work achievements needed

to successfully perform job activities

What People CAN DOA cluster of behaviors performed on a job

Who People AREPersonal dispositions and motivations that relate to job satisfaction, job success or failure

DDI PROVIDED THE FRAMEWORK ON COMPETENCY PROFILING USING THE COMPLETE SUCCESS PROFILESM

© Development Dimensions Int’l, Inc., MMX. All rights reserved.

Desired Outcomes

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Key Results

Values,Desired Culture

Business Strategies and Goals

CO

MP

ET

EN

CIE

SCosts

Quality

Effective

Growth

Customer

Satisfaction

Turnover

Productivity

Efficiency

Hire

On-board

Develop

Manage Performance

Workforce Planning

Succession Management

Quality of Hire

Time to

Productivity

Focused

Training

Alignment &

Accountability

Retain &

Deploy Talent

Identify Potential &

Ensure Readiness

© Development Dimensions Int’l, Inc., MMX. All rights reserved.

COMPETENCIES HELP DRIVE EMPLOYEE PRODUCTIVITY AND ENGAGEMENT

COMPETENCIES

Talent Acquisition

Performance Management

Rewards Management

Talent Development

Career Management

Succession Management

• Sourcing and selection• Assessment Systems

and Standards• Onboarding

• Competency-based Appraisal System

• Performance Indicators

• Competency-based Merit Increases

• Special Incentives

• Gap Analysis• Training Curriculum• Coaching/Mentoring

• Organization Review

• Career Pathing

• Succession Plan• Talent Review and

Promotion• Hi-Po’s Development

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EDC EMBARKED ON COMPETENCY PROFILING AS THE FIRST STEP TOWARDS A COMPETENCY-BASED HR TALENT MANAGEMENT PROGRAM

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SUCCESS PROFILES

CORECOMPETENCIES

LEADERSHIPCOMPETENCIES

FUNCTIONAL COMPETENCIES

BUSINESS STRATEGIES

ORGANIZATIONAL GOALSVISION

MISSIONVALUES

THE COMPETENCIES WERE LINKED TO EDC’S VISION, MISSION, VALUES AND STRATEGIC OBJECTIVES

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PLANNING DATA COLLECTION DOCUMENTATION

Background and Research

Data Review

Business Driver Card Sort

(online survey)

Knowledge and

Experience Questionnaire

PRELIMINARY PROFILE GENERATION

PROFILE CONFIRMATION

COMPETENCIES ARE IDENTIFIED THROUGH A SUCCESS PROFILING PROCESS

© Development Dimensions Int’l, Inc., MMX. All rights reserved.

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Core Competencies

(aligned with the company values)

Focus on Achieving

Thinks of the Whole

Adapts to Changing Needs and New

Situation

Builds Relationships

Develops and Optimizes Talent

Leadership Competencies

(by Domain)

Interpersonal

Business/Management

Leadership

Personal Attributes

Functional Competencies

Resource Management

Drilling

Plant Operations

Plant Maintenance

THE END RESULT OF THE PROCESS IS EDC’S COMPETENCY FRAMEWORK AND PROFILES

USING COMPETENCIES TO DRIVE OUR PEOPLE PROCESSES

COMPETENCY-BASED PEOPLE MANAGEMENT

ALIGN PEOPLE STRATEGIES WITH BUSINESS NEEDS AND PRIORITIES

RECRUITMENT • Recruitment factor at all levels

• Candidates are assessed based on competencies

PERFORMANCE • Performance is measured in both the “what” (results) and the “how” (core competencies)

• Competencies are used to guide how IDPs are created

• Performance coaching

TALENT MANAGEMENT

• Hi-Po leadership talent understudy/shadowing program

• Cross-posting• Talent Review and

Promotions

EMPLOYEEDEVELOPMENT

• Anchored on core and functional competencies

• Technical certification• Advanced Education

Program• Executive development

WE BRING IN INTERNATIONAL EXPERTS TO DEVELOP LEADERSHIP COMPETENCIES

RANJAY GULATICustomer Centricity and Strategy

RICHARD GREENECommunication for Leaders

DEEPAK MALHOTRANegotiations

VERNE HARNISHScaling Up

DEVELOPING OUR PEOPLE’S TECHNICAL/FUNCTIONAL COMPETENCIES

ADVANCED EDUCATION PROGRAM (AEP) FOR GEOSCIENCES AND RESERVOIR ENGINEERING GROUP (G.R.E.G.)

DRIVE BUSINESS GROWTH BY UPGRADING KNOWLEDGE AND SKILLS OF TECHNICAL STAFF

• BASIC GEOTHERMAL SKILLS PROVIDED TO ALL GREG & RESOURCE MANAGEMENT DEPARTMENT STAFF

• MASTERS AND PhD TO THE CRITICAL MASS OF TECHNICAL STAFF

AEP COVERAGE: 2010 TO PRESENT

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Short Course/Seminar

Conference

Post-Grad Certificate

Masters Degree

PhD

CONTROL SYSTEMS INTEGRATION (CSI) FOR OPERATIONS AND ENGINEERING GROUP

ACHIEVE ORGANIZATIONAL EFFICIENCY BY INTEGRATING CONTROL SYSTEMS FOR POWER PLANT AND STEAM FIELD OPERATIONS

• CROSS-FUNCTIONAL CERTIFICATION TRAINING WAS USED TO UPSKILL EMPLOYEES FOR INTEGRATED OPERATIONS AND CONTROL SYSTEMS OPERATION

WE FOLLOW A COMPETENCY-BASED CROSS CERTIFICATION TRAINING

CSI COVERAGE AS OF JANUARY 2016

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Phase 0

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

OUR FOCUS ON COMPETENCY-BASED TALENT MANAGEMENT HAS DRAMATICALLY INCREASED OUR EMPLOYEE ENGAGEMENT

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2010 2012

59%

70%

88%

2014● 2014 Score: ● +3 vs Philippine Norm● + 9 vs Global Utilities Companies Norm● + 4 vs Global High Performing Companies Norm

%

WHAT HAVE WE LEARNED

• COMPETENCY FRAMEWORKS AND PROGRAMS MUST BE ALIGNED TO STRATEGY AND CHANGING BUSINESS NEEDS

• COMPETENCY FRAMEWORKS MUST BE INTEGRATEDWITH THE OVERALL TALENT AND REWARDS STRATEGY

%WHAT HAVE WE LEARNED

• THERE IS NO SINGLE BEST WAY TO ESTABLISH COMPETENCY FRAMEWORKS

• TECHNOLOGY AND DATA ANALYTICS ARE YOUR ALLIES

• HR BUSINESS PARTNERING TO HELP THE ORGANIZATION ACHIEVE ITS OBJECTIVES

My one key takeaway from this session is…

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