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SAE 2013 Strategic Human Resource

Management and the Evolution of the Technical Automotive Workforce

Summit

Donna Grant Dorsey, Navistar

We Are NOT in Kansas Anymore!

Navistar’s history:Navistar’s history:Rich with product Rich with product developmentdevelopment

19121909

1918 1924

19361942

1943

1950s

Cyrus H. McCormick

Major milestones in Major milestones in Navistar product developmentNavistar product development1831: Cyrus McCormick invents

mechanical reaper

1902: International Harvester founded in Chicago

1907: Adds trucks to product mix

1910s: Adds school buses to product line

1930s: Opens first engine plant

1960s: Makes everything from lawn mowers to refrigerators

1967: Reaches peak of 114,000 employees

1985: Sells ag business, focusing on trucks and engines

1986: Changes name to Navistar

2003: Sets aggressive growth trajectory3

To sustain our growth, we have also To sustain our growth, we have also integrated our product development integrated our product development functionfunction

The bottom line: The bottom line: Multiple imperatives for the IPD HR Multiple imperatives for the IPD HR functionfunction Centralizing IPD Eliminating silos “Re-potting” engineers

from Ft. Wayne Hiring over 800 new

engineers – 25% of them right from college

Attracting, retaining, integrating talent

Moving to a new campus

Coping with unprecedented change

Vision of IntegrationVision of Integration

Be close to the product Leverage our strengths Work across functions Break down silos Spend time working, not meeting Focus on the customer See the bigger “global” picture Leverage collective wisdom and

experience

Higher levels of engagement, accountability and an

organization that delivers on commitments

How do you describe your role in the talent acquisition process? Are you …

Putting one brick on top of another? Building a wall for a church? Creating a cathedral?

Consider your network outside Navistar – suppliers, former colleagues, classmates, etc. – how many people can you refer to Navistar? We think each of you can refer at least 10 people. Send me an email with the names (and contact information if you have it!) of 10 people you would refer to Navistar.

Leadership Challenge – Talent Acquisition

ActivitiesActivities

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University Relationships•Executive Champions•School Selection Criteria•Campus Affinity Groups•Diverse Recruiting Team

Associations•NAACP Participation•Society of Women Engineers•National Society of Black •Engineers•Society of Hispanic Professional Engineers

Special Projects•HBCU Capstone Projects•R&D Projects•Illinois Math & Science Academy

Scholarships•U of I Champaign•U of I Chicago•Florida A&M University•Tuskegee

Internships•IMPRINT•Target schools with diversity criteria•Engagement throughout school year

Hiring EventHiring Event

Detroit Career FairDetroit Career Fair

*5 acceptances

•Many Scalable Options•Pre-Screen and Final

Intern Interviews•Reduction in Interview

Expenses•Convenience

•Increased Speed to Decision

•Innovative Solution

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•They don’t….•I am better off…..

•They don’t….•I am better off…..

•They don’t….•I am better off…..

On-boarding Consistency

“Welcome” letter from VP IPD & GiftHit the Ground Running (3 days)List of new hires to leadership for introductions Breakfast with leadership (2-3 sessions to cover recent new hiresInformal lunches with VP’sConsistency in the pre on-boarding processMentoring AssignmentLearning PlanNew Hire Mixers (Quarterly)Post on-boarding culture audit

OnboardingOnboarding

College Format1-3 WeeksLeaders as TeachersHands-on Experiences

Cohort GroupsGroup Mentoring

CONFIDENTIAL and Proprietary to Navistar

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Time Task Time Task Time Task Time Task8:00 AM 8:00 AM 8:00 AM 8:00 AM8:30 AM 8:30 AM 8:30 AM

9:30 AM10:00 AM 10:00 AM 10:00 AM Break

10:15 AM 10:15 AM 10:15 AM

11:30 AM 11:30 AM

1:00 PM 1:00 PM 1:00 PM 12:30 PM

1:30 PM

2:30 PM 2:30 PM break 2:00 PM3:00 PM 3:00 PM 3:00 PM 3:00 PM

4:30 PM 4:30 PMReflection/assess the

day/tomorrow's schedule/Q&A 4:30 PMReflection/assess the

day/tomorrow's schedule/Q&A 4:30 PMReflection/assess the

day/tomorrow's schedule/Q&A5:00 PM 5:00 PM 5:00 PM 5:00 PM5:30 PM 5:30 PM 5:30 PM 5:30 PM6:00 PM 6:00 PM 6:00 PM 6:00 PM6:30 PM 6:30 PM 6:30 PM 6:30 PM7:00 PM 7:00 PM 7:00 PM 7:00 PM7:30 PM 7:30 PM 7:30 PM 7:30 PM8:00 PM 8:00 PM 8:00 PM 8:00 PM8:30 PM 8:30 PM 8:30 PM 8:30 PM

Group 1Vehicle SMT

Thermal Management 101[Carlstrom/Chapman]

Sara Lee, Café

Group 2Powertrain SMT

Transmissions 101[Vishnu Shankar]WHQ 4-A Cap-24

training space reserved, Room 5 (Melrose Park)

training space reserved, Room 5 (Melrose Park)

training space reserved, Room 5 (Melrose Park)

Group 1Performance Management 101

[Joyce Schrimpl]Sara Lee, Café

break Group 1Powertrain SMT

Transmissions 101[Vishnu Shankar]WHQ 4-A Cap-24

Powertrain PlatformSpecialty Products 101

[Tyler Vincer]Melrose Park, Training Room 5

Dealer Education Web-based Training Modules

https://evalue.internationaldelivers.com/service/service_info/

Welcome.aspx

Dealer Education > Learning Management System >

Course Catalog

Group 2Vehicle SMT

Thermal Management 101[Carlstrom/Chapman]

Sara Lee, Café

Dealer Education Web-based Training Modules

https://evalue.internationaldelivers.com/service/service_info/Welcome.aspx

Dealer Education > Learning Management

System > Course Catalog

Group 2Performance Management 101

[Joyce Schrimpl]Melrose Park, Training Room 5

Dealer Education Web-based Training Modules

https://evalue.internationaldelivers.com/service/service_info/W

elcome.aspx

Dealer Education > Learning Management System >

Course Catalog

Diversity and Inclusion / Lunch[Sherry Silverberg and Reed

Gregory]Melrose Park, Training Room 5

Monday, June 13th Tuesday, June 14th Wednesday, June 15th Thursday, June 16th

Culture is the thread that is woven through all we do AND holds it all together.

What we are: Observers and Listeners Communicators and Promoters Initiators and Sponsors

What we are not: Complaint Committee Solely Responsible for the Culture

IPD’s Culture Counsel

IPD’s Culture Forums Based on the results of our OCI and N-Gauge surveys, we will be hosting several interactive Culture Forums in May and early June.

What will the counsel do? During the first year, play a major role in developing, implementing and sustaining a constructive culture within IPD, as well as advising on and perhaps participating in ‘all things culture’ including: move to Lisle prep, culture training, on-boarding, recruiting, employee and team development, etc. We will serve as a sounding board for senior management and as a communication conduit throughout IPD. We will communicate to all employees on programs, themes and initiatives that involve the Counsel’s corporate-wide and local work.

IPDWe took a closer look at our employee engagement. One outcome of that effort was a realization of just how much it is driven by our culture. As culture is an aggregation of our individual behaviors, we need to better understand these behaviors and set expectations around them in order to INTENTIONALLY create and implement a constructive culture for and within our organization.

CONFIDENTIAL and Proprietary to Navistar

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Pursuit of Consistent High QualityWe know that relentless pursuit of excellence in all we do serves our customers and stakeholders alike

Disciplined/Precision EngineeringWe strive to be leaders in the industry leveraging disciplined, precision engineering to achieve the

highest standards of quality

Continuous ImprovementWe perform best when we have time

to think, plan, design, test and improve our processes and products,

including learning from mistakes

Talent and Teamwork We are a team of talented

employees whose collaborative efforts and alignment support our

vision and strategy, and ensure superior business results

History and Tradition We honor and build on our years of

history as an industry pioneer to deliver great products and customer

solutions

Open CommunicationWe accept the challenge of creating a work environment where information is shared,

expectations are clear, and we all participate in courageous and challenging

conversations to improve our individual and organizational performance

Customer FocusedWe serve our customers when we

listen carefully, meet the challenges they present, and exceed their expectations

Building Relationships We recognize the power and

purpose of building camaraderie with our colleagues and our

partners, leveraging the unique talents of others

Seeing the PossibilitiesThe future has no limits – we can design, execute, and deliver the most innovative products and

services – expanding our reach to new customers and new markets

IPD Culture Commitments

EnablersEnablers

Peer to peer recognition process Professionals Program Manager expectations and development Talent assessment that includes “how”

work gets done Culture Council teams Engaging our Executive Champion

Fundamental Values ∙ Relationships ∙ “Can Do” Attitude ∙ Wisdom and Experience ∙ History and Tradition

Leverage Strengths

Early Career Strategy: Early Career Strategy: Building Building Our Own Our Own Talent Talent PipelinePipeline

CONFIDENTIAL and Proprietary to Navistar

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