Horizontal Career Paths A Great Way to Keep The Best

• Kim Pelzar – Vice President, Human Capital 2006 to present • Susan Cwieka – Senior Executive Director 2002 to present

Summary • The Benchmark Story • Horizontal Career Paths • The Benefits – For Associates – For the Company

• Current Practices • Lessons Learned • Future Opportunities

The Benchmark Story • 2003: 23 communities doing things 23 different ways • Doubled in size from 2003 to 2005 – From 23-43 communities

• Major growth and change from acquisitions • Decision that human capital required investment • Values: It’s PERSONAL – – – – – – – –

Personalizing services is our difference Excellence is the benchmark Respect and candor in all communication Stand for integrity One company of passionate associates No excuses – commitments count Accept and embrace change Leading and learning through innovation

The Benchmark Story • A Talent Driven Culture – Business Goals – Individual Development Plans

• Talent Development – Management Development Program – Career Development – Benchmark University

• • • •

Internal Promotion Priorities Aligned Compensation Strategies Accountability Total Performance

Horizontal Career Path • Career growth that does not take the form of moving up the traditional career ladder, but can take many other forms – Lateral movement to roles in different functions or departments – Step down in level to get new experience – New challenges in current role in order to broaden experience and grow depth and breadth of skills

Benefits of Horizontal Path • To Company – Address challenge of limited traditional promotional opportunities – Keeps associates engaged – Builds individual and organizational capability – Supports workforce planning • Succession planning

Benefits of Horizontal Path • To Associates – Provides opportunities to learn and grow – Drives engagement – Demonstrates versatility and flexibility – Builds company knowledge and transferable knowledge – Promotes career growth discussions with manager

Current Practices – Front Line • Cross functional moves – Dishwasher → Server → Resident Care Associate – Receptionist → Resident Care Associate

• Growth opportunities – – – – – – –

Lead positions (Resident Care Associate, Server, etc.) Opportunity to become faculty member at Benchmark University On-boarding colleagues Getting experiences at other communities Cultural Ambassador program Associate Council participation Peer mentor program

Current Benchmark Practices Leadership • Lateral Transfer or Step Down Accepted as Part of Culture – Home office to communities – Communities to home office – Cross-functional moves

• Growth in Role • Senior Positions • Specialist Positions • Individual Development Plans

Examples of Lateral Transfers • Community to Home Office – Former ED = Corporate Recruiter for Community Leadership Roles – Former RCD = Clinical Resource for New Resident Services Business

• Home Office to Community – Former Home Office Business Manager = Community Director of Business Administration – Former Accountant = Community Management Track

• Community Cross-functional Moves – DBA → Sales – Activities Director → Harbor Program Director

Career Growth in Role

Individual Development Plans • Career Growth Process – Establish development goals for year that are revisited periodically

• Owned by associate • Discussion with manager educates manager on aspirations • Provides opportunity for career growth discussion

Career Development Challenge • Community leaders wanted traditional promotions – Executive Directors, Resident Care Directors, Directors of Community Relations, other Department Head roles

• Limited positions at higher level that provide vertical promotion opportunities – Regional Director roles

• Business need for community leaders with leadership and technical skills

Solutions • Introduce Specialist role – Technical expert

• Standardize and Leverage Senior Role – Leadership focus

Specialist Role • Provide a career opportunity for sales, resident care and other operations-focused professionals who possess excellent technical skills and who have demonstrated the ability to turn around the respective function at challenged communities • To provide effective interim, hands-on support to challenged communities • To fill in when department head positions are open on an interim basis

Background – Senior Role • Standards and practices for Senior role varied across the Company – Inconsistent criteria and expectations of incumbents

• Lack of understanding of opportunities and responsibilities of role

New Senior Role Philosophy • Seniors are our strongest community leaders, “the best of the best” • Potential Seniors demonstrate the leadership skills and ability to contribute at a higher level to the greater good of the Company • Seniors charged with various leadership responsibilities – Mentoring and coaching talent – Focusing on a challenged community – Contributing to a company strategic initiative

Job Scope • Should be determined after considering both the business needs of the communities/cluster/company and the development needs and opportunity of the individual • Focus may shift to and from one of the following areas, based on business needs – 80% of his/her time on the home stable community and 20% on assisting one or two communities OR working on a specific strategic project or initiative (80/20 rule) – In certain rare circumstances, a Senior may be assigned 100% to a challenging community for a limited period of time upon agreement of the Senior Operator and the Functional VP

• Those who dedicate 20% of time working at another community and/or working on a project – Frequency determined by home community business needs – When working at other communities, role is limited to 3-4 clearly defined responsibilities excluding efforts that may pull person into another team

Key Responsibilities • Talent development – On-boarding of newly hired Department Heads or Executive Directors – Mentoring of new or current Department Heads or Executive Directors

• Potential support on acquisitions and development as requested by COO • Partnering with Senior Operator/ED on cluster/community-wide leadership efforts • Other responsibilities specific to job

Living Example of Growth Strategy – Susan Cwieka • 2009 President Circle Winner • Attributes – Truly engaged in customer service and sustaining a strong operating business – Models “Shared Business Partnerships” by constantly seeking ways to help sister communities – Never says “no”, finds solutions, remains positive – Built and maintains an exceptional team of Department Heads that are able to sustain the building for long periods of time as necessary – Viewed as a Sales leader and excellent Operator in community and cluster

Susan’s Timeline 2003

- Hired as ED for troubled community - Trained new ED for 4 months (currently top talent)

2004

- On-boarded another new ED (now leader at award winning community)

2005

- Executive Director at flagship community

2006 – current

- Became informal leader of geographic cluster - Implemented monthly “ED only” meetings to solve business problems and improve cluster’s overall performance

2007

- Managed sister community for several months in the absence of ED, while maintaining responsibility for primary community - On-boarded new ED at that community

Susan’s Timeline - 2008 • Championed the Yardi rollout not only at primary community, but assisted with subsequent rollouts • Participated in the creation of the Solutions platform and led the community to pilot newly developed Signature Services products • On-boarded new ED at sister community and provided on-going support with value-add • Current leader of cluster occupancy drive

Cascade of Growth in Role • Susan’s department heads are all involved in on-boarding cluster department heads • Many managers and front line are faculty members • Front line associates frequently work at other communities, when needed • Culture of teams is to contribute beyond community – Associates see benefits of being part of larger Benchmark team

Lessons Learned • Setting clear expectations for any horizontal movement is critical – Role – Future potential – Compensation

• Ongoing communication is important • Responsibilities at other communities may have negative impact on primary community, if not monitored

Future Opportunities • More lateral movement in department head roles • More movement between home office and communities • Transition of more formal Management Development Plan to a more focused process of growth through experiences in various department head roles • Proactively identifying top talent at all levels to provide growth opportunities

Questions & Answers