Building on Talent itinerary for getting the right leaders ready Sonia Diaz Del Oro Director, Global Learning & Organizational Development Royal Caribbean Cruises, Ltd. Teri Hires, Ph.D. Regional Vice President, PDI Ninth House Royal Caribbean’s Itinerary for Getting the Right Leaders Ready

1. Building on Talent
Royal Caribbean’s Itinerary for Getting the Right Leaders Ready
Sonia Diaz Del Oro
Director, Global Learning & Organizational Development
Royal Caribbean Cruises, Ltd.
Teri Hires, Ph.D.
Regional Vice President,
PDI Ninth House
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2. Agenda
Introductions
Overview of Royal Caribbean Business
Business Case and Challenges
Building on Talent
Framework
Process
Results
Evolution of Talent Management
Questions and Comments
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3. Questions
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4. About Royal Caribbean Cruises Ltd.
Second largest cruise company in the world
40 Ships – 3 expansion projects
$6.7 billion company
64K+ employees worldwide
Strong brands
Royal Caribbean International, Celebrity Cruises,
Pullmantur, Azamara Club Cruises, CDR Croisieres de
France, and Tui
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5. Competitive Strengths
Innovative new ships –
aggressive growth plans
International presence
Strong relationships with
travel agents
Multi-branded strategy
Best people
Strong ethics and values
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6. Challenges We Face At RCL
Business People
External business Shipboard/Shoreside
conditions Diversity
Geopolitical environment Recruitment & retention
Regulatory environment Engagement
Complexity of our business Movement & scheduling
Competitive landscape Training
Guest expectations Leadership Development &
Succession Management
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7. Why must leadership development and
succession management be a strategic
business focus for the future of RCL?
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8. Business Case

9. How We Define Building On Talent
Major commitment towards identifying and developing
leaders for tomorrow
Develops leaders to assume multiple roles organization-
wide
High potentials selected based on:
Current performance
Advancement potential
Key RCL attributes (Business, Personal, Interpersonal and Leadership
Effectiveness)
Launched to senior leaders, cascaded to manager level
Drives business results
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10. Building On Talent Facts
28% of director and above population are in the program
Average 11 years tenure
Retention of 85% of our high potential population since
program inception versus 78% of all employees
15% of participants no longer with RCL mainly due to:
Reduction in force/position elimination
Performance
Personal reasons
Internally filled Director and Above positions – 87% were
BOT participants

11. Building on Talent Framework
Identify and Succession
Assess Talent Develop Talent
Review Talent Planning
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12. Building on Talent Framework
Identify and Succession
Assess Talent Develop Talent
Review Talent Planning
Leaders consider performance and potential
of their direct reports
Uniform tools, guides and worksheets
ensure consistency
Talent review meetings facilitated with
leadership teams
Talent discussed and debated during talent
review meetings
Formalized communication and program
launch with selected high potentials
Process occurs annually
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13. Talent Portfolio
A
High Achieving High Capacity
Performance
SOLID
B PERFORMER
At Risk Under Achieving
NR
C
3 2 1
Potential
VP (two cases SVP)
AVP
Director **All eligible directors & above were placed in one of these categories
when evaluated for performance/potential
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14. Building on Talent Framework
Identify and Succession
Assess Talent Develop Talent
Review Talent Planning
360 Degree Feedback
Psychometric evaluations – cognitive, work
style, personality
“Year in the life” business simulations
Personalized feedback reports generated
Debriefs of feedback with boss and
development planning action plans created
Stack ranking reports generated for executive
leadership use and for “birds-eye” view to
determine development themes
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15. Executive Development Center
Structured
Interview Prework Orientation
3 Business Simulations
(to reflect a ‘year in the life’
of an Executive)
Cognitive Ability Tests,
360 & Personality
Inventories Developmental Development
Integration
Feedback Written Report Planning
Meeting
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16. Using Data for Decisions
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17. Using Data for Decisions By Competency
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18. Building on Talent Framework
Identify and Succession
Assess Talent Develop Talent
Review Talent Planning
Tied to business results and core
competencies
Customized to the individual
Executive coaching engagements
On-site leadership workshops delivered
Wharton, Harvard, UM and other
external executive development
programs
Special projects
Job rotations, new assignments
Mentoring (current and past participants)
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19. Building on Talent Activities and Results
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20. Building on Talent Activities and Results
**5 out of 6 top jobs have been promoted from within
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21. Building on Talent Framework
Identify and Assess Talent Develop Talent Succession
Review Talent Planning
Completion of succession
charts
Short term emergencies and
medium/long term
succession considered
Succession charts reviewed
and updated on regular basis
Job rotations and
assignments as needed
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22. Outcomes
35% of current Officers in different functional role today
than originally hired
52% of current Officers were promoted from within
Groomed and promoted from within:
4 of 5 Named Executive Officers (NEOs)
5 of 7 direct reports to Chairman & CEO
23 out of 50 leaders from top 3 layers of organization
Evolving our succession practices from effective to world-
class with the adoption of a more formalized approach –
Building On Talent

23. Recognition and Reward
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24. RCL Succession Planning Evolution
World-Class Talent Management
Dynamic and Transparent Process, Ready-now Talent Pools, Global Job
Rotations, Succession Cascades to Professional and Management Roles
Integrated Building on Talent
2004 &
Broad Business Focus, Talent Reviews, Assessment Centers, Executive
Beyond Development, Enterprise Perspective, More Internal Promotions
Traditional Succession Planning
Prior to
2003 Key Positions Targeted, Specific Job Rotations, Some Internal Promotions,
Female
Male
Business Unit Focus
Emergency Planning
Primarily External Replacements, Little Formal Development Internally
No Formal Succession Process
Ad-hoc Identification of Successors for Executive Positions

25. Key Considerations
Understand where your business is headed – paint a
picture of the future
Find early “adopters”
Involve leadership – make it their own
Partner with HR
Know when to get help – external point of view
Create linkages – tie into other talent management
processes
Avoid “big bang” approach – evolve appropriately
Be relentless about process – but don’t forget the people
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26. Questions and Comments
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27. Contact
Sonia Diaz Del Oro
Director, Global Learning and Organizational Development
Royal Caribbean Cruises, Ltd.
(305) 539-6304
sdiaz1@rccl.com
Teri Hires, Ph.D.
Regional Vice President
PDI Ninth House
(972) 256-6504
teri.hires@pdininthhouse.com
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