www.esb.ie

A Decade of Delivery Through People

John ShineDeputy Chief Executive

25th May 2011

www.esb.ie

ESB in Figures

People - ROI

People – ROW

Assets (€ B)

Turnover (€ B)

EBITDA (€ B)

2000 2010

9,000 6,500

1,700500

3.9 12.0

1.8

1.00.4

3.0

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Significant Presence Abroad

Over 8,000 PeopleProjects in over 20 countries

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Strategic Framework 2020

World class sustainable networks

A renewable business of scale

Best practice GTS portfolio

Competitive energy supply business

Significant international presence

World class sustainable networks

A renewable business of scale

Best practice GTS portfolio

Competitive energy supply business

Significant international presence

… and Be A Leader In Carbon ManagementAnd Energy Efficiency

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A Decade of Industry Transformation from…

3rd PartyGenerators

ESBGeneration

ESB NationalGrid

ESBDistribution

ESBSupply

Customers

In 2000, ESB was the Irish Electricity Market!

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…to a New Energy Industry

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Starting Point In 2000!

Underinvestment in Networks

Aging Legacy Generation Fleet

No Presence in Renewables

Facing forced “Surrender” of Market Share

Shareholder negative on future ESB Growth /International Expansion

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€6B Investment in Networks Infrastructure

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Renewal and Refocus of Generation Fleet

Built 7 x New Plants ( 3 x UK/Spain)

Sold 2 x Thermal & 2 x Peaking Plants

Significant Overhaul / Refurbishment

Closed 8 x Old Plants

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A Renewables Portfolio of Scale

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Transformation of Supply Business

From

•Monopoly

•Public Service Ethos

•Electricity Only

To

Competition

Dual Fuel/Gas Rebranding

Energy Services

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Geographic Expansion – 2010 Acquisition of NIE

Electricity T&D Networks OF NI

800,000 customers

1,300 staff

Largest Acquisition in Company

History - £1.2 Billion

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Management Development - A 10 Year Journey

PACT No’s & Work

Practices

Safety Leadership

PPC Local

Change

Rationalisation& AssetSales

SustainabilityLeadership

Cost Reduction &

Pensions reform

20002000 20022002 20042004 20062006 20082008 20102010 20122012

IMDProgramme

Top 60

AshridgeProgramme

Top 300

Diversity

Coaching

IMDProgramme

Top 60

A New Management Engagement

PerformanceManagement

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Talent Management - Framework

RecruitmentPromotion Performance

Management

Career Planning& SuccessionManagement

LeadershipDevelopment

PersonalDevelopment

Integrated FrameworkIntegrated Framework

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Driving Business Performance

Strategy Strategy AlignmentAlignment

SelectionSelectionSystemSystem

PerformancePerformance & Reward& Reward

LeadershipLeadershipDevelopmentDevelopment

SuccessionSuccessionManagementManagement

BUSINESSSTRATEGY

INDIVIDUAL PERFORMANCEManagersManagers

ImprovedPerformance

At its most basic it’s about individual performanceAt its most basic it’s about individual performance

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Professor George Kohlrieser IMD

Performance Conversations &

Coaching Skills Programme for Executive Team

& Top 50 Senior Managers

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Pillars of High Performance Leadership

Leading from the mind’s eye

Cycle of bonding

Conflict resolution

Power of dialogue

High impact negotiation

Leader as secure base

Managing emotions, creating high energy

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Putting The Fish On The Table !

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Coaching in ESB

Commitment from Top/Resources

Aligned with Business Strategy & HR Strategy

About Releasing Potential and Maximising Performance

Across Full Management Chain (almost!)

All New Managers – First 100 Days

Team Coaching now on Agenda

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Coaching Framework

TRIGGERS

ImprovedImprovedSuccessionSuccessionAssuranceAssurance

PerformancePerformanceImprovementImprovement

CapabilityCapabilityAwarenessAwareness

OrganisationalOrganisationalLearningLearning RetentionRetention

OUTCOMES

SuccessionSuccessionAssuranceAssurance ITDPITDP PromotionPromotion RoleRole

ChangeChange1 : 11 : 1

FeedbackFeedback

CoachingCoaching

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First 100 Days Coaching Focus

Obtain awarenessof our own skills& vulnerabilities

Manageorganisationalpolitics

Understandchallenges &opportunities

Build trust& relationships

Get controlof diary

Agree role& objectives

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Emerging Benefits of Team Coaching …

Focus On Team Improvement Goals Being energetic, aligned, cohesive and showing leadership

Identifying the things that either Doing, or not Doing, don’t support achieving the Team’s Goal

Identifying/Understanding Competing Commitments

Commitment to delivery of own personal targets Committment to Corporate versus Business Line goals Focus on destination versus following agreed journey

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Coaching Evaluation

Supported achieving objectives (70.9%)

Improved focus on work role (71.8%)

Approach work role differently (70.9%)

Valued coaching (88.2%)

Main Findings:

General endorsement of the ESB Group coaching programme and activity to date

Greater level of awareness and integration required to become part of the fabric of the organisation

“ “

“ “

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Client Experience – Still WIP !

InadequateDelegation

PoorFeedback

Activity Trap

PoorCommunication

SiloApproach

CareerInsecurity

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Management Development - More Personal !

“PACT” No’s & Work

Practices

Safety Leadership

“PPC” Local

Change

Rationalisation& AssetSales

SustainabilityLeadership

Cost Reduction &

Pensions reform

20002000 20022002 2004 2004 2006 2006 20082008 2010 2010 2012 2012

More PersonalCertaintySecurity

Less Personal CertaintySecurity

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Empowerment

But more than ever we need…!

High Energy and Resilience Real

Conversations

Role Flexibility

Ideas Offered &Listened to

Teamwork

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Pillars of Staff Engagement

Priorities

50

40

30

20

10

0

%

StrategicStory

EngagingManagers Listening Integrity

International Research January 2011 by Sheppard Moscow/The McLeod Report

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The Journey Continues !