The human resources function at BASF Corp. serves as a great example of how to help businesses drive growth and profitability through customized people, leadership, organization and culture strategies. In this webinar, “Working Together to Win at BASF: Developing and Aligning Business & Talent Strategies,” a diverse group of strategic HR and business leaders from BASF in North America come together to share some of their best practices around understanding specific business needs and delivering a customized and on-demand human capital solution that is sustainable and a value-add. Three supporting learning objectives/session takeaways: Collaboration is key: A strategic HR solution extends beyond the individual and lives within the flexibility of the entire HR model. The customer comes first: Understanding not only the business strategy but also how the business strategy will bring value to the end customer when aligning an appropriate talent strategy is vital. Live with a continuous improvement mindset: Come to the table every day with the mindset that there is always room for improvement and ensure that the HR solution you are providing is solving for the true need of the business.

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5. September 12, 2018
Working Together to Win at BASF:
Developing and Aligning Business
& Talent Strategies

6. Today’s Presenters
Deon Carter
Senior Vice President,
Performance Chemicals
Herminio Hernandez
Strategic HR Business
Advisor
Megan Mabee
People Consultant
Bernadette Palumbo
Vice President, Human
Resources Operations
Heidi Gerhard
Director, Talent Acquisition
& University Relations

7. Key Changes: New BASF HR Model
Our new model delivers quality, efficiency, and consistency to drive greater business value.
Delivery
Teams
Centers of
Excellence
SHRBA/
SHRMA
Shared
Services
Integration
Centers of Excellence
Thought leaders responsible
for design and development of
policies and programs.
Shared Services
Primary support for Managers and
Employees responsible for
handling HR questions and
delivery support for HR programs.
Delivery Teams
Flexible and Specialized teams
responsible for delivering solutions.
SHRBA/SHRMA
Voice of the business and
manufacturing responsible for
handling people strategy.
§ Leadership Development
and Excellence
§ Employee and
Organizational Development
§ Total Rewards
§ Mergers & Acquisitions
§ Diversity + Inclusion
§ Planning & Strategy
§ Talent Acquisition &
University Relations
§ Strategic Human Resource
Business Advisor (SHRBA)
§ Strategic Human Resource
Manufacturing Advisor
(SHRMA)
§ Core Talent Solutions Team
§ People Consulting Team
§ Labor and Employee Relations
§ Talent Acquisition & University
Relations
§ Technology & Analytics
§ Total Rewards and HR
services
§ myHR Manager Resource
Team – contact for managers
for all HR issues
§ myHR – contact for employees
for all HR questions
7

8. Plastic Additives Business Performance
EBIT historically improved
[VALUE]
Premium on
Cost of Capital
Not earning
Cost of Capital
Earlier Timeframe: Profit improved through cost
reductions and volume growth
Steady increase in sales volume and profit margin
Fixed costs significantly reduced
Later Timeframe: New business realities driving us
to adapt our strategy
Evaluated Raw material position
Evaluated utilization of Assets
Evaluated opportunities for fixed cost reduction
8
2022

9. Plastic Additives Business Performance
Premium on
Cost of Capital
Not earning
Cost of Capital
Plastics Additives ready for a new Way
Forward to return to Growth Path
9

10. Portfolio breadth
Application know-how
Product stewardship
Manufacturing Global Footprint
Our way forward: Grow with Excellence in: Manufacturing, Customer
Focus and Value Management
10
Build on our strengths Pursue ambitious goals
Enhance product portfolio with
differentiated solutions
Ensure world class production
and supply platform
Excellence in value management
Deliver best Customer
Experience

11. Plastic Additives Business – Human Capital Plan
Pursue ambitious goals
Enhance product portfolio with differentiated solutions
- Realignment via Customer-focused relationships
Ensure world class production and supply platform
- Selection of key customer interfaces
Excellence in value management
- New program to energize sales relationships
Deliver best Customer Experience
- Supply Chain Reorganization

12. Plastic Additives Business – Human Capital Plan
Pursue ambitious goals
Enhance product portfolio with differentiated solutions
- Realignment via Customer-focused relationships
Ensure world class production and supply platform
- Selection of key customer interfaces
Excellence in value management
- New program to energize sales relationships
Deliver best Customer Experience
- Supply Chain Reorganization

13. Talent Acquisition Structure: Segmented Strategy & Execution
13
EXECUTIVE TA
(6.2-7.2)
NON-EXEMPT TA
(Randstad RPO)
EXEMPT TA
(6.1 & Below)
UNIVERSITY
RECRUITMENT
TEMP LABOR
(KellyOCG)
D E L I V E R I N G H I G H - Q U A L I T Y TA L E N T T O B A S F
TALENT ATTRACTION
Employer Branding & Candidate Experience
Diversity Recruitment Strategy
Sourcing Strategy
PROCESS & TECHNOLOGY OPERATIONS
Reporting & Analytics
Operations & Technology
Compliance
PMO
E N A B L E D B Y C E N T E R S O F E X P E R T I S E

14. Executive Recruitment
Impacting our Leadership Pipeline
n How we deliver on our promise:
„ Attract high caliber, diverse talent for these critical
decision making roles
„ Influence quality of hiring decisions, in partnership with
our Strategic HR Business Partners, providing
exemplary advisory service to our Senior Leaders
„ Ongoing monitoring of our KPIs (Quality, Efficiency,
Effectiveness)
n Enablers for Success:
„ Cultivate strong global pool of diverse talent to fill
critical positions, in partnership with Talent
Management
„ Robust sourcing and assessment methodology which
takes a holistic view of talent and leadership capability
14

15. Executive Recruitment
Impacting our Leadership Pipeline
15
Mindset
Agility
Collaboration
Communi-
cation
Trust
Common
Goals
Efficiency
Challenges
Outcomes
Impact

16. Business
Challenge
Solution
Implemented
● Assess the opportunity to improve product delivery to strategic customers
● Optimize transportation channels to better meet customer needs
● Hone and perfect demand forecasting and product availability
1. Establish a governance structure to drive process improvements
2. Restructure the Supply Chain organization with minimal business disruption
3. Enable employees to enhance capabilities and embrace different ways of working
Value
Delivered
● Project Management Office (PMO) stewards high-impact projects and monitors KPIs
● Continuous Improvement team launched to better address Supply Chain pain points
● Benchmarking guides organization in working towards “best in class” traits
● Employees trained on incorporating new tools and techniques into daily operations
Supply Chain Transformation to Drive Business Results
The People Consulting Team supported the Plastic Additives Supply Chain organization in its
transformation
16

17. Change Management Journey
17
Four factors critical to successful change adoption have guided the Plastic Additives Supply Chain
team on its transformation journey
1
2
3
4
Change
Adoption
Right Solution
Clear Impacts
Reinforced Expectations
• Increased empowerment
by improving skill sets →
fostering collaboration
• PMO process → track and
monitor performance
• Flexed org structure →
focus on priority challenges
• Six Sigma framework for
projects → data-driven root
cause analysis
• Clear accountability and
rewards for strategic goals
→ business results
Compelling Vision
• Continuous
Improvement mindset
→ bottom-line results

18. Putting it All Together
18
Business Focus Talent Strategy
Flexible On-Demand
Support
Greater
Business Value

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