March, 2002

HR Strategy Agenda Introduction

HR Contributions to Speed Our Return to Financial Health HR - Transition and Orientation - Strategic Intent, Drivers, Contribution - Business Alignment

The HR Strategy - 5 Focal Areas/ Strategic Thrusts

Introduction 2002 2004 Strategy FIRST TO RECOVER & PLAY TO WINTransactional Excellence, HR Strategy & Planning, Attract & Retain, Leadership Supply, Performance Management

Strong Operational Focus for 2002 in the Face of: - Economic Uncertainty - Flat Revenues - Dramatic Cost Reduction - Improved Profitability

Underlying Themes: - Simplification and Integration - Cost Competitiveness - Focus (through fierce prioritization) and High Impact

Total Decrease ($192,561) 40.5%

Definitions:IBHR VariableIn-Business HR- Immigration - LLP TuitionLLP Business Learning Teams- Global Assignment Centers - GTS-Tactical

ServicesSecurity- Government Compliance- GTS StrategicRewards- AP Regional Services - GECSBenefits- EMEA Regional Services- HRISChild Care- LA Regional Services- Service CenterLLP Core. HR Strategy- Core Process Redesign

G & AGlobal HR Costs ($000)HR Contributions to Speed Our Return to Financial HealthSource: HR Finance, 03/2002

We Continue to Benchmark HR Value We Significantly Cut Cost & Continue to Contribute to the Bottom Line.

2001 Saratoga Institute Average HR Cost per Employee Technology Sector = $247513.3% LowerThan 2000 Mkt20.8% LowerThan 2000 Mkt2001 Saratoga Institute Average HR Expense as a Percent of Operating Expense Tech / Mfg Sector = 0.72%HR Contributions to Speed Our Return to Financial Health19.4% HigherThan 2000 Mkt26.9% LowerThan 2000 Mkt

Helped Increase the Cash Reserve of the Corporation Through Significant Contributions:Discontinuation of Milestones: $14M reduction in 2001 Fringe Cost plus a liability reversal of $80MRestructuring of Officers Life Insurance Plan: One time cash inflow of $62MAsset sale: $15M of guaranteed payments within 1 year of sale plus future potential paymentsHR Contributions to Speed Our Return to Financial Health

HR Contributions to Speed Our Return to Financial Health1/20018/2001 12/20012/20021/2001 8/2001 12/20012/2002Note: 0.15% Have Resulted in Administrative Charges or Litigation Matters; 0.00% with Adverse Results

Total Decrease = 2,163 (46.7%)Total Decrease = 41,367 (28.1%)Sources: TWIN; Corporate Law Dept. 3/2002

Other Key 2001 HR Contributions Human Asset Strategy Planning System Leadership Supply Dramatic Paperless Transactions Mergers & Acquisitions HR Global Data System OneMotorola Functional Strategy Shareholder & Performance Focused Rewards Relative Performance Assessment Exemplary demonstration of treating employees with dignity and respect during downsizing

NO ENTRYHR OriginsDecentralizedCentralizedHRIntegratedIndependentCenters of ExcellenceShared ServicesCore/IntegratedServices Transition

People Activities Process ActivitiesImplement StrategyOrganization RenewalStrong Operational FocusFuture Strategic FocusChange AgentStrategic PartnerTransactional ExpertEmployee ChampionEfficient InfrastructureIncrease EmployeeCommitment & Capability- D.Ulrich Our Evolution from the administrative Personnel of the80s, through Human Resources in the 90s to the focus on Management and Optimization of Human Talent Today Orientation

Strategic IntentHR Solutions Create a High Performance Culture which Optimizes Employee Contributions and Maximizes Shareholder Value

PerformanceManagementBusiness Strategies of RecordTransactionalExcellenceLeader. SupplyIBHR

CoreServices/ HR StrategyAnd PlanningHuman Asset Plans Strategic Needs of the Corporation Attract & RetainRecover First:Play to WinCOEsRegionsCost Compe-titiveness, Fo-cus , ImpactSimplify/IntegrateAn Integrated Strategy With 5 Critical Thrusts

Simplification & IntegrationCostCompetitivenessFocus &High ImpactPerformanceManagementTransactionalExcellenceHR Strategy& PlanningLeadershipSupplyAttract & RetainAreas of FocusThemes Increase Operating Effectiveness : - Continue Internal Paperless Initiative - Improve Quality, Speed & Performance of all HR Base Transactions Globally Determine Viability of a For Profit Business: - Global Partner for HR Services / Transactions

Funding Constraints (Expense and Capital) Alternate (Competing) Systems Lack of Integration Systems Sub-optimized Due to Limited / Inconsistent Use of Core Process Redesign Transactions Centers Are Ahead of Manager / Employee Willingness Limited Applications to Leverage Infrastructure Transactional Excellence Key Gaps

Transactional Excellence Improve Operational Effectiveness: Complete Global Consolidation of HR Transactions Global Employee Solutions Center Purchase/Develop System to Cover ALL Compensation Transactions Create Infrastructure/ Integration of Paperless HR Transactions Use CPR Methodology to Achieve Trans. Excellence( Integration, Cost Competitiveness)

Cost InternalOwnership External OwnershipLowHighCost InternalOwnership External OwnershipLowHighCost Projections Ability to InfluenceFuture Strategy, ChangeTimeTimeFlexibility Transactional ExcellenceOutsourcing has Proven to NOT be the Panacea Once Imagined. While Initial Costs do Appear to go Down, Future Changes Drive Costs Upward While Strategic CourseCorrection Ability & Flexibility Suffer Dramatically.No - - - - - Changes- - - -ManyYear OneFutureAcceptable CostAcceptable Levels

of Influence$s-R. Charan

Preliminary Partnership Discussion Indicates That There Is a Significant Market Opportunity That Could Result in a Savings From Reduced Fixed Costs Longer Term Business Partnerships May Offer Rewarding Solutions:- Efficiency & Lower Cost- Retain Control & Strategic Focus- Possible Revenue Streams Transactional Excellence

Simplification & IntegrationCostCompetitivenessFocus &High ImpactPerformanceManagementTransactionalExcellenceHR Strategy& PlanningLeadershipSupplyAttract & RetainAreas of FocusThemes Maximize Human Assets & Potential Via the Art & Science of : Creating Human Strategy, Planning (at World Class Levels), Deploying and Measuring - Our Workforce in a Way that Provides True, Sustainable, Competitive Advantage.

Differing Perceptions of Human Asset Planning, What It Covers, and What It Can Deliver HAP Not Recognized or Driven As a Core Business Process Workforce Planning Perceived As a Budget and Global Talent Supply Organization Exercise Costly and Unpredicted Variations Occurring in Talent Acquisition / Downsizing

HR Strategy and Planning Key Gaps

Why Human Asset Planning?

1998 Downsized 15,000 ($618M Severance) 1999 Hired 19,700 ($90M Hiring Cost)

2000 Hired 26,548 ($105M Hiring Cost)

2000 Downsized 3,900 ($140M Severance)

2001 Hired 7,908 YTD ($50M Hiring Cost)

2001 Downsized 36,800 YTD ($643M Severance)

2002 Downsized 4,567 YTD ($??? Severance)

Does This Cycle Make Sense?H R Strategy & Planning Total Cost = $1,646MSeverance: $1,401MHiring: $245M

Simplification & IntegrationCostCompetitivenessFocus &High ImpactPerformanceManagementTransactionalExcellenceHR Strategy& PlanningLeadershipSupplyAttract & RetainAreas of FocusThemes

Retention (Simplification, Integration, Impact)Redeployment and internal talent management (Cost Competitiveness)Employment Promise that delivers against the Motorola Brand (Focus & Impact)

Motorola Brand Promise Is Not Translated Into a Powerful Employment Promise Lack of Clearly Identified and Developed Candidates to Feed Leadership Supply Pipeline (E09 E14) Most Effective / Critical Skills Losses Are Not Currently a Managed Source of Future Talent to Motorola Most Effective Talent at Risk Where Development and Rewards Dont Match Performance

Attract and Retain Key Gaps

Retention and Redeployment20022003 2004Refocus on retention & redeployment of most effective 20% and critical skills employees in E12 E14Apply leadership supply processesDevelop retention strategiesRetain 95% of specific target population

Ensure rewards programs support retention of specific target population

Create alumni tracking capability for most effective talent & critical skills employees who leave the company

Expand pool to include E09 E11Most effective 20% (E09 E14) used as the feeder pool for open positions E12 E15

Institutionalize a Center of Excellence for Talent Management across Motorola. Build a bridge to Leadership Supply & Learning processes.

Continued use of feeder pool as next generation candidates for Leadership Supply positions

Employment Promise20022003 2004Integrate our efforts to translate the Motorola brand into an employment promiseDefine concept & rationaleDevelop informational materialSecure Sr. management support (office of CEO, CMO, Corporate Strategy, Kitchen Cabinet etc.)Develop project plan & obtain sponsorship, including funding, for 2003 implementation

Implement project plan

Continue implementation & evaluate. Conduct internal & external discovery of desired employment promise vs. perceived employment promise

Simplification & IntegrationCostCompetitivenessFocus &High ImpactPerformanceManagementTransactionalExcellenceHR Strategy& PlanningLeadershipSupplyAttract & RetainAreas of FocusThemesAdd Additional Extraordinary Apps

Investigate External Business

Top 100 Most Leveraged Jobs Not All Filled by Most Effective Performers Most Effective Talent at Risk Where Development and Rewards Dont Match Performance Lack of Diversity in Leadership Supply and Pipeline Leadership Supply Process Is Attracting External Attention Creating a Potential Revenue Opportunity

Leadership Supply Key Gaps

Motorola Leadership Supply metrics were tracked on 2001 Global HR Scorecard and achieved the following:80% of Top 50 positions held by Most Effective Performers 95% retention of Most Effective Performers80% transition of Least Effective Performers (100)2001 GoalsLeadership Supply - 2001 (200)

Execute Theme of the 100s with Extraordinary Applications"

Personal Development 100-Ensure Advanced Development needs are Met.-Top 100 Attendees from the Initial Executive Institute to be Invited to Phase II.

The Diverse Next 100 Pipeline Identify a Pipeline for the Next 100 Future Leaders, Including Diversity Candidates from Across the Company.

Internal Talent AgentDevelop the Business Case for Implementation of an Internal Talent Agent

Leader Supply as a BusinessBuild a Business Case for Sale of Leadership Supply ProcessStrategic Intent:100% Match Between: 100 Most Effective Leaders100 Most Leveraged Positions &Reward to ensure 100% Retention & Exceptional Performance

Simplification & IntegrationCostCompetitivenessFocus &High ImpactPerformanceManagementTransactionalExcellenceHR Strategy& PlanningLeadershipSupplyAttract & RetainAreas of FocusThemes

Lack of a Consistent High Performance Culture Personal Commitment Viewed As More Developmental Than Performance Management Orientated Consequences Not Aligned / Consistent Insufficient Management Tools and Training on Effective Behaviors Rewards Do Not Differentiate Sufficiently Between Organizational and Individual Performance Current System Largely Employee Driven

Performance Management Key Gaps

Performance Management Integrate/ Refine Existing Tools Define & Agree: Components of Performance Management. Conduct Best Practices Study, Baseline Motorola System to Findings Clear Goal Setting Linked to Next Layer Target Training: Employees & Managers Integrate: PC, Relative Performance, 360 Feedback Tighten Linkage to Rewards & Development(Simplification, Integration, Impact)

Simplification & IntegrationCostCompetitivenessFocus &High Impact

PerformanceManagementTransactionalExcellenceHR Strategy& PlanningLeadershipSupplyAttract & RetainAreas of FocusThemes-IntegratedTools/-Simplified Goal Setting-Sr. MgmtAccountability-Increase Effectiveness/-Short TermStrategy-For ProfitBusiness/-Long TermStrategy-Employment Promise/ CMO-HAPContent/Process /Future Strategies-Rewards-Exec.Ownership-HAPProcessStrategy-Retain

-Redeploy-EmploymentPromise/CMO Brand Promise-Develop- mentNew Apps.-HAPProcessStrategy-LeadershipSupplyAs Biz Summary-100s

Transactional Excellence

Cost Effectiveness-and Creates For Profit Business OpportunitiesHuman Asset Plan.Attract/Develop/RetainLeadershipPerformance Mgt.Consequences/RewardsHuman Resource Value Proposition Drives Shareholder Value

**Six key pointsOur focus is on how to drive Motorola recovery and leverage those gains to drive ongoing competitive advantage We have to support the Corporation in 2002 with the human implications of achieving the cost savings and improving profit in light of flat or even declining revenuesConcurrently we will further drive the prioritization of our work, to drive integration and simplification of our systems and processes, to minimize our cost base and maximize our impact on the Corporations recovery*

NOTES:

HRs vehicle for success is its tight alignment with the businesses and the implementation of business strategies. In this capacity, HR plays the following roles:

As Strategic Partner, HR increases business capacity to execute and improve shareholder value through execution.

As Change Agent, HR renews organizations, serves as cultural guardian and catalyst for change, and improves the design and cycle time of change initiatives.

As Employee Champion, HR increases employee commitment, capability and contribution to business goals, and anticipates employee issues, concerns and needs.

As Transactional Expert, HR builds an efficient transactional infrastructure, providing efficient processes, services and strategies translated into policies and practices.*Drivers:Leadership & Talent Supply Performance Culture Differentiated, Shareholder Focused, Rewards Human Asset Strategy Organization Design Training/ Development Transactional Excellence Cost / Expense Competitiveness/ Metrics *1 Strategy focused at 5 high leverage, ongoing and current events needs. Accomplished by looking at the cross cutting needs of the businesses and Corporation . Will singularly focus our IBHR, Regions, COEs and Core Services teams to Assure Success of Our Strategic Intent: TO HELP Moto. RECOVER FIRST! We Intend to PLAY TO WIN!!

*- $220B Potential TAM (Global 2000 Co.s) - Expect 10-15% Cost Savings Based on 2001 Levels ($10-15M) - 20-25% Ave. Net Margin (early) Est.

*HAP Has 3 Sub-strategies