An Explanation of Cooper's Management, Development and Planning (MD&P) Program

What is MD&P and Why is it Important?

Your career success is important to you. That's natural. All employees want jobs that develop their skills and advance their careers. Your career success is also important to Cooper. The company needs skilled, talented people who can help it succeed. Your career interests and those of the company come together in the Management Development and Planning Program (MD&P). Since it was introduced in 1970, MD&P has evolved into a key management program that focuses on meeting business objectives while providing important career development opportunities for employees. Specifically, MD&P aligns your goals with those of the business to ensure the company's success, while helping you achieve your personal career objectives.

Salaried, exempt employees participate in MD&P and top management is fully committed to the program. Your individual MD&P review is part of a process that takes place across the company. The review process "rolls-up" to the very top. The Chairman, President and CEO and staff, as well as the Division Presidents, review talent across the company in a series of detailed annual MD&P reviews. Many questions are raised during these sessions, but none is more important that this: "Are we developing the talent we need to take Cooper successfully in to the next century?"

As a large, global manufacturer, Cooper Industries participates in many highly competitive industries and markets. Remaining successful requires focus, dedication, technical skill, and a commitment to quality and innovation. Success also requires that Cooper's human resources - its employees - have the skill, character and determination to excel in the global marketplace. We must satisfy our customers by becoming better, faster and more competitive every day. To do this, we must continuously improve our organization and ourselves.

The MD&P process is Cooper's method of ensuring that its human resources meet the current and future needs of the business. Responsibility for this process is shared by managers and employees. Effective use of the process benefits you and the company, but this can only occur with a real commitment from you and your manager.

Cooper's MD&P process is ongoing. The process begins with you and your manager agreeing on individual objectives that support the strategy of the business. As part of this process, every employee and manager must agree on a personal development plan to increase the skills and effectiveness of the individual during the coming year. At the end of each year, you and your manager will appraise your performance as measured against your objectives and establish new goals for the next year. Completion of your performance and development goals is expected. Since continuous growth is necessary for each individual, accomplishment of performance goals without completion of a development plan does not constitute adequate performance by either you or your manager.

It is critical that discussions between you and your manager be candid and include plans to overcome barriers to performance or development. MD&P is a shared responsibility and must be a collaborative effort.

Objectives and Benefits for Employees and Managers

Objectives
The MD&P process is intended to provide a simple, structured way to establish individual goals and objectives, plan for employee development and measure performance. Under the MD&P system, performance management, personal development, and career planning are the shared responsibility of employees and managers. Feedback and coaching allow individuals to learn and grow from their on-the-job experiences. Through such experiences and growth, individuals, develop the skills needed to undertake new responsibilities and to achieve their personal and career goals. Other benefits of the MD&P process include:

• Enhanced communication among employees and their managers
• Focused identification of employee strengths and areas for development.
• Defined employee development and performance expectations.
• Improved employee performance and, ultimately, business results.

The primary employee performance objectives of the MD&P process include:

• Providing a simple method of establishing individual goals and objectives that support business objectives.
• Offering an objective process to measure employee performance.
• Helping employees achieve job satisfaction by focusing on activities that provide motivation in their current job.
• Building a trusting working relationship between manager and employee based on the manager's support for the individual's current success and future potential.
• The primary development objectives of the MD&P process include:
  • Establishing one-on-one developmental planning discussions.
  • Helping employees identify and consider career options consistent with their knowledge, skills, strengths, and aspirations, by realistically aligning their capabilities with their future goals.
  • Creating an annual development plan for all MD&P participants.
  • Reviewing development plan results against planned activities.
  • Ensuring that Cooper has the right people in the right places to achieve it future goals by matching employees' talents with the organization's needs.

Benefits
The MD&P process will provide participants with information and tools that can help them:

• Contribute to the success of their business.
• Enhance their individual knowledge, skills, and abilities.
• Increase the value they deliver to the organization.
• Pursue their career objectives.

As employees and managers of Cooper Industries, we must do all we can to make MD&P work. Employees and managers must enter into the MD&P process determined to participate with openness and candor to make it productive and effective for all involved.