Investing in Leadership and Skills Development

Leadership and development are critical components of Pentair's organizational fabric. Our investment in leadership development is paramount to our success as an organization that continues to grow and change. It is also a critical element of our value proposition for our current leaders and those who aspire to leadership roles.

We invest in our leaders and their development through a range of opportunities tailored to their development priorities.

These include:

• Leadership and career assessment
• Professional coaching
• Leadership team development
• Strategic initiative leadership
• International assignments

In addition to these individualized development experiences, Pentair invests in formal education and training for leaders worldwide. Two examples of these programs are described below.

Managing at Pentair

Our Managing at Pentair (MAP) program for managers of people worldwide focuses on the key leadership principles and skills needed in a high-performing organization. The program was established in 2006 to support the development of a consistent base of skills for all managers that can be enhanced as Pentair's strategies evolve.

Offered around the world, this three-day program provides practical guidance, tools, and practice in managing processes, people, and performance grounded in the Pentair values. Specific topics include Pentair values in action, every manager's role in the Pentair Integrated Management System, hiring the best people, setting expectations, providing feedback and coaching, managing conflict, and developing talent for the future.

To date, the program has generated considerable success. Supervisors have reported that the effectiveness of MAP participants as managers increased an average of 20 percent after attending the program.

Executive Development Program

Pentair's Executive Development Program (EDP), is designed to develop and retain upper mid-managers with the potential to take on global leadership roles, general management roles, and/or functional leadership responsibilities. Participants are nominated by Global Business Unit/Region Presidents. Final classes of approximately 25 leaders are approved by Pentair's Officer Executive Council, ensuring an appropriate representation of participants from around the world.

The program consists of four modules of approximately one-week each, delivered over a two-year period.

• Module 1 - Leadership Ethics and Development (LEAD): This module targets the participants' role as a leader, their leadership skills, and their leadership impact on Pentair. Randy Hogan kicks off this week by sharing his expectations for executives at Pentair and his experiences as a senior leader. As part of this module, participants begin action learning team projects sponsored by Pentair executives. Each team presents its recommendations to Pentair's Officers at the beginning of Module 2.
• Module 2 - Finance: This module focuses on the essential elements of finance for non-financial managers, creating a solid understanding of financial basics and Pentair's key metrics. Pentair's Chief Financial Officer, Chief Accounting Officer, and other finance leaders join University professors in delivering this module.
• Module 3 - Growth: Randy Hogan and other Pentair Officers provide participants with insight into Pentair's growth strategies. Using case studies and Pentair examples, University professors and Pentair leaders provide participants with guidance on vertical market and competitive strategy.
• Module 4 - Global Business: This module is designed to help participants navigate the key issues and complexities inherent in global growth. Emphasis is placed on cross-cultural leadership effectiveness and driving change in a global business.

Since its inception in 1999, eight classes of leaders have completed EDP. The same group of participants remains together over the two years of the program. In addition to the insights and skills developed during the program, many past participants have commented that the resulting relationships last long after the program has ended, and that this cross-Pentair network is a valuable asset, both to the individual and to the company.