© 2011 Underwriters Laboratories Inc. Preparing and enabling our people UL Change Management approach February 2016

Why 70 percent of change efforts fail 1.Allowing too much complacency 2.Failing to create a powerful sense of urgency 3.Underestimating the power of vision 4.Under-communicating that vision 5.Letting obstacles get in the way 6.Failing to create short-term wins 7.“Spiking the football” too soon 8.Neglecting to anchor changes into the organization John Kotter, Leading Change 2

A professional approach to delicate transitions Change management emphasizes the people side of change. Specifically targets leadership as primary change agents. When done well, people understand the strategic direction of the change. They feel engaged. Work collectively toward a common objective. They realize the benefits and deliver results to the organization. As a result, productivity improves 3

Topics Change Management approach and the project lifecycle Our Change Management strategy Our Change Management tactics Leadership engagement Communication plan and communication deliverables Training Stakeholder mapping Responsibility mapping (Oracle) Business impact documentation Role impact documentation Project Go-Live support approach and schedule Incentivizing and embedding the change Measurement of change management effort Next Steps

Stages of change 5 Why didn’t they ask me how I’d feel or what I wanted to do? What will the changes mean to me? What are the consequences of not changing? I may NOT! How could they do this to me? What choices can I make and what are the potential outcomes?

Phases in the transition process 6

7-stage approach to enable behavioral shift Inform Implement Strategic Communication Share Knowledge and Coach Inform Implement Strategic Communication Share Knowledge and Coach Pre-transition Understand Readiness for Change Define Vision and Strategic Alignment Pre-transition Understand Readiness for Change Define Vision and Strategic Alignment Understand Map Current /Future State Identify Stakeholder Needs Identify Business Impacts Understand Map Current /Future State Identify Stakeholder Needs Identify Business Impacts Enable Align Processes and Roles Build Knowledge and Skills Enable Align Processes and Roles Build Knowledge and Skills Incent Align Performance Metrics, Rewards and Incentives Incent Align Performance Metrics, Rewards and Incentives Assess Measure Effectiveness and Realign Assess Measure Effectiveness and Realign Align Engage Leadership and Change Coalition Build and leverage leadership buy-in and ownership Align Engage Leadership and Change Coalition Build and leverage leadership buy-in and ownership

Technology Integration Process Pre-Deal Target Information Due Diligence Target Assessment Integration Estimation Pre-Deal Target Information Due Diligence Target Assessment Integration Estimation Core Technology Integration Transition Desktop, Helpdesk, storage and LAN WAN and Security Core Technology Integration Transition Desktop, Helpdesk, storage and LAN WAN and Security Core Process Integration Financial HR Dynamics? Flex? Core Process Integration Financial HR Dynamics? Flex? IT Process Integration Planning People Purchasing Assets Processes & Controls IT Process Integration Planning People Purchasing Assets Processes & Controls Integration Closure Checklist Sign-offs Integration Closure Checklist Sign-offs Program Management Engage Leadership and Change Coalition Build and leverage leadership buy-in and ownership Program Management Engage Leadership and Change Coalition Build and leverage leadership buy-in and ownership

Our methodology leverages Kotter’s 8 step process for managing change… “Changing behavior is less a matter of giving people analytics to influence their thoughts than helping them to see a truth to influence their feelings.” -- John Kotter 9 Reference: John Kotter’s 8 step process

… our approach focuses on seven stages that enable behavioral shift… Inform Implement Strategic Communication Train and Coach Inform Implement Strategic Communication Train and Coach Pre-transition Understand Readiness for Change Define Vision and Strategic Alignment Pre-transition Understand Readiness for Change Define Vision and Strategic Alignment Understand Map Current /Future State Understand Stakeholder Needs Identify Business Impacts Understand Map Current /Future State Understand Stakeholder Needs Identify Business Impacts Enable Align Processes and Roles Build Knowledge and Skills Enable Align Processes and Roles Build Knowledge and Skills Incent Align Performance Metrics, Rewards and Incentives Incent Align Performance Metrics, Rewards and Incentives Assess Measure Effectiveness and Realign Assess Measure Effectiveness and Realign Represents Project Go-Live Date Align Engage Leadership and Change Coalition Build and leverage leadership buy-in and ownership Align Engage Leadership and Change Coalition Build and leverage leadership buy-in and ownership

Change Management activities and timeline Pre-Transition (Timing) 2 Months Pre Go-Live1 Month Pre Go-LiveGo Live and 1 Month Post Go Live Manage Expectations and Enable Infrastructure Educate and Prepare Shift Behavior and Sustain Change Set /Manage Expectations Communication Manage Expectations Town Hall Deep Dive Process Review Sessions End User Training Post Go-Live Support Pre Go-Live Town Hall Role Impact Documentation Oracle Responsibility Mapping Business Impact Documentation Stakeholder Mapping Ongoing leadership communication Sandbox Practice Environment End to End Scenario Practice SME Training / Train the Trainer Integration Team Kick Off

Communication plan Leverage lessons learned from previous integrations Draft site specific communication plan Review plan with leadership Work with leadership to implement plan 12 Project Phase Communication Audience Key Message Channel Applicable Training Modules Approver and Delivery Status Developer and Status

We will work with you to create and drive the following deliverables Leadership engagement Communication plan and communication deliverables Training approach and schedule Stakeholder mapping Oracle responsibility mapping Business impact documentation Role impact documentation Post Go-Live support approach and schedule Measurement 13

Leadership engagement Leadership role is to drive the overall change Specifically: Ensure local commitment of resources Help define the future process, identify how the future process will impact the business and individual roles and responsibilities Lead individual discussions addressing job/responsibility changes (if needed) Drive communication to all colleagues (set and manage expectations) Encourage and enable colleague preparation and training events Set expectations that drive colleagues to adapt new systems/processes

Training approach and schedule Leverage appropriate approach: “Train-the-Trainer,” Online or instructor led Training courses map to Oracle roles Conduct training earlier in the implementation process, but … … provide sandbox practice environment to ensure knowledge retained and enhanced Colleagues required to demonstrate proficiency prior to receiving access to production Review end-to-end scenarios prior to Go-Live 15 Trainer Delivery Approach Audience Size and Roles Training Topic Training Approach # of Hrs. Training Schedule

Stakeholder mapping 16 Employee ID Colleague Name Role Manager Office Location Applicable Training Modules SME Designation UAT Participant

Business Impact Documentation Approach Leverage future state process flow Facilitate discussions to identify how change in process and system will impact the business and customer Determine mitigation plans (as appropriate) Assign accountability Align with project management to track issues and status of mitigation 17

Post Go-Live approach and schedule 18 Support Approach Support Schedule

Our change process 19 Post implementation Implementation Concept and design Business need/readiness AwarenessDesireKnowledgeAbilityReinforcement Successful Change Phases of change for employees Phases of a change project

Stage 1: Align Align Leadership Align leaders’ values and behaviors with the business vision and future state, and gain buy-in and ownership to the integration vision. Enable a Change Coalition Identify (select) and engage a team to serve as change agents and local site implementation team to drive change. Build and Leverage Leadership Buy-in and Ownership Continue to engage leadership and leverage leadership to create buy-in and ownership in their respective organization throughout the initiative. Leadership 1-on-1 and group discussion Leadership commitment plan Identify and engage site steering committee or leadership team ToolsObjective Identify and engage site implementation team Leadership commitment strategy Facilitated sessions

Stage 2: Inform Implement Strategic Communication Build awareness and understanding of the integration vision, and set/manage expectations regarding what to expect throughout the change process. Share Knowledge and Coach Throughout the change process conduct knowledge sharing and coaching sessions with key colleagues to transfer knowledge and build local expertise. Kick off meeting Communication strategy and tactical plan Initial IT deliverable expectations Communication deliverables and feedback mechanism(s): Ongoing updates Leadership communication Key messages for leadership to distribute Celebrations Knowledge sharing sessions Informal coaching Lessons learned sharing ToolsObjective

Stage 3: Pre Transition Understand Readiness for Change Understand individual and organizational readiness for change by understanding colleagues’ needs, and identifying effectiveness of existing communication processes, leadership alignment and change strategies. Define Vision and Strategic Alignment Align vision across leadership, build case for change and clearly articulate future state. Change readiness interview guide or facilitated session Strategy articulation Case for change Current State / Future State map ToolsObjective

Stage 4: Understand Map Current State / Future State Understand the difference between the current state and the future state processes, roles, technology, tools and structure. Understand Stakeholder Needs Identify various stakeholder groups (internal/external). Determine how each group will be impacted or affected by change, and how the change will be perceived by each group. Document impacts and determine strategies to build awareness, buy-in and ownership for each group. Identify Business Impacts Identify how changes from the current to future state impact the business, and determine strategies needed to address business impacts. ToolsObjective Stakeholder mapping Future state process mapping Business Impact template

Stage 5: Enable Align Processes and Roles Align individual roles and responsibilities to the future state process. Understand organizational structural changes and identify skill needs for future state roles. Determine skill gaps and training needs to bridge colleagues from current role to future role. Work with HR if organizational structure is impacted. Build Knowledge and Skills Develop and implement training strategy to build knowledge and required skills. ToolsObjective Future state process map Future state organization chart Roles descriptions Training strategy IT technical training (automated and instructor led) Small group coaching sessions Q&A sessions

Stage 6: Incent Align Performance Metrics, Rewards and Incentives Define desired competencies and behaviors, set and manage performance expectations, and align performance review process (including rewards and incentives) to desired future state behaviors. Implement short-term incentive programs as appropriate. ToolsObjective Incentive / reward best practices Recommended metrics

Stage 7: Assess Measure Effectiveness and Realign Measure effectiveness of integration activities and realign as needed. ToolsObjective Integration effectiveness survey Leadership lessons learned facilitated discussion

Oracle Responsibility mapping 52 Oracle Responsibilities identified and defined Role packages defined Provide consistency to which specific Oracle Responsibilities align with each role For example: Sales Role will receive Oracle Responsibilities required to create quotes and orders Facilitate meeting with site leadership/management to map colleague “stakeholders” to Oracle Responsibilities Review and approve mapping with finance to ensure no SOD conflicts IT provision responsibilities for each colleagues NOTE: Colleagues will be required to demonstrate training proficiency for respective responsibilities prior to being granted access to Oracle responsibilities. 27

We work with you to create, drive deliverables Change vision and creating sense of urgency Communication plan and communication deliverables Training approach and schedule Stakeholder mapping Oracle responsibility mapping Business impact documentation Role impact documentation Post Go-Live support approach and schedule Measuring success 28

CM deliverables aligned to Project Lifecycle Engage site leadership Engage site integration team Draft communication plan 29 Complete Oracle responsibility mapping Document business impacts Document role impacts Implement communication Complete training Conduct stakeholder mapping Conduct Oracle responsibility mapping Document business impacts Implement communication Train SME/Trainers and launch sandbox practice environment Implement communication Implement post Go-Live support strategy