American Association of Blacks in Energy 33rd Annual Conference

Leadership Development at Southern Company Marsha Sampson Johnson SVP Human Resources and Chief Diversity Officer May 20, 2010

Premier Energy Company Serving the Southeast

Southern Nuclear Southern Power SouthernLINC Wireless

Attractive Investment
4.4 million customers #149 on Fortune 500 list

History of sustainable, predictable growth

Strong financial performance #1 ranked, nine years in a row, electric service provider in customer satisfaction by ACSI

Strong Culture
25,000 + employees strong Long-tenured workforce Cultural Tenets Safety & Wellness Southern Style Inclusion
Southern Style

Competencies

2010 Diversity Inc. Top Company Business Results Top 10 Employers for Blacks One of 25 Noteworthy Companies

Leadership

2010 Top Military Friendly Companies (9th out of 100)

Employees: 25,584
Management 3600 Professional 8800 Non-Exempt 5000 Craft Labor 8000
Southern Style

Competencies

75% male / 25% female

Business Results 77% non-minority / 23% minority
Leadership

Average Service: 18 years

Average Age: 46 years

Leadership Development A Business Priority

Drivers
Industry Complexity Environmental regulation Infrastructure expansion Cost pressure Retirements across all levels of leadership Multiple generations working together Female & minority representation Leveraging differences for innovation Changing employee expectations Increasing rate of change need rapid response Tightening labor market Realities of a mobile workforce Todays employees expect development

Changing Workforce

Culture of Inclusion Recruitment & Retention of Talent

Leadership at All Levels

Development at All Levels

Executives
Leadership training usually university-based programs System assignments Coaching & mentoring Senior Leadership Development Program (SLDP) University-based leadership training Cross-system moves, special assignments/projects Coaching & mentoring Internal leadership training for new managers Leadership development programs Cross-system moves, special assignments/projects Coaching & mentoring High potential identification Talent reviews Leadership development programs Projects, assignments, job rotations Internal & external training Coaching & mentoring

Managers of Managers

First-Level Managers

Emerging Talent

All Employees

Internal & external training (online & classroom) Tuition Reimbursement Program Projects, assignments Coaching & mentoring

Distinguished Performance
-Technically competent - Embraces company values - Consistently achieves results over time

I G H P O T E N T I A L

Strong Foundational Skills

- Drive/ambition

- Strong interpersonal skills - Presence - Resilience

- Understands organization culture - Adapts to change - Learns and applies new skills

Future Role Capability

Demonstrates potential to move to the next leadership level and achieve expectations.

Leadership Competencies
Adapting & Responding to Change Critical Thinking Deciding & Initiating Action Entrepreneurial & Commercial Thinking Formulating Strategies & Concepts Leading & Supervising Persuading & Influencing Planning & Organizing Relating & Networking Technical Competence Delivering Results Cultural Competence

MANAGERIAL LEVEL: First-Level Manager EMPLOYEE: J.K. Sample

Low Low-Mid Mid-Range High-Mid High

COMPETENCIES
Adapting & Responding to Change Critical Thinking Deciding & Initiating Action Entrepreneurial & Commercial Formulating Strategies Leading & Supervising Persuading & Influencing Planning & Organizing Relating & Networking

10

Blue range is Southern Company benchmark range for first-level manager Black dots are J.K. Samples actual results

Career & Development Planning Partnership

Employee Aspirations

Development

Company Needs

Identify whats required Assess current capabilities Develop plan to close gaps & leverage strengths

Putting it All Together

Southern Style

Competencies

Business Results
Leadership