USA/Europe Shared Services Summit Leadership and talent in shared services 28 June, 2017 Andreas Landgrebe, Austria/CEE Cluster Dinesh Mirchandani, India Daniel Feldkamp, USA

Leadership and talent in shared services Not harder…but smarter! ANDREAS The paradigm in SSC/BPO have dramatically shifted from low cost to high “brain” Over the years the main attraction of using cheap labour has eroded (since it is a one time off and other regions offer even cheaper labour than CEE). Hence the SSC hubs needed to develop a new USP- respect. need to do this NOW asap : Increasing efficiency and productivity through attracting additional service layers from their internal/external clients Developing new methodologies and tools (particularly in the context of Art. Intelligence/Process Automation/Robotics), which makes those tools an OPPORTUNITY for them, not a thread. Building a sustainable business case, which turns them from a cost to a profit center

Leadership and talent in shared services ..but worth the effort ANDREAS For the executive management this means: Slide 2 Increased complexity due to the transfer of additional tasks demanding other service layers Shift of responsibility: HQs do not only transfer work, they also expect the entities to become self-sustainable P/Ls with only little management attention from home. SSCs managers need to become entrepreneurs And most importantly: Development and retention of top talent (languages and skills) becomes the crucial factor for success: With a growth perspective of 20% and more in SSC in CEE, qualified labour force, able to cope with the new challenges,  can take another job at any time

Leadership and talent in shared services McKinsey study on adoption of automation Technical automation potential Early scenario Late scenario Adoption Early scenario Late scenario 100 90 80 70 60 50 40 30 DINESH: McKinsey Global Institute has analyzed a range of potential scenarios for the pace at which automation will affect activities across the global economy and constructed a model. The dark blue solid S-curve line represents early adoption, the dotted line, the latest adoption scenario, aggregating across all of the activities of 80% of the world’s workforce. The pair of orange S-curves depict similar early and late scenarios for technical automation potential. Adoption lags Potential. While adapting currently demonstrated technology has the technical potential to automate 50% of the world’s current activities, the date at which this could happen is only 2037 and could be as late as 2076 i.e., centered around 2055. In the USA, farm employment fell from 40% in 1900 to 2% in 2000, and manufacturing from 25% in 1950 to less than 10% in 2010. New activities replaced those that disappeared even if it was hard to predict what they would be, while the shifts were happening. 20 10 2016 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 2100 Automation adoption will lag potential and take decades, across a range of scenarios % of time spent on activities that will potentially be automated 1 46 countries used in this calculation, representing 78% of global labor force SOURCE: McKinsey automation timing model

Leadership and talent in shared services Management matters DANIEL: Finding the right mix between international expertise/expats and local understanding Enriching the management selection by means of market mappings and management appraisals, benchmarking internal to external resources Choosing management, that brings along best practices in building up an entrepreneurial/P/L oriented spirit and best-in-calls HR strategies for retention, employer branding etc.

Leadership and talent in shared services Boyden facts and figures FOUNDED 1946 Privately held company GLOBAL REACH 65 offices | 40 countries | over 700 employees 6 INDUSTRY PRACTICE GROUPS Industrial | Consumer & Retail | Technology Healthcare & Life Sciences | Financial Services | Social Impact SATISFACTION RATE CLIENT 91% | CANDIDATE 96% 5 FUNCTIONAL PRACTICE GROUPS Human Resources – Finance – Board – IT – Interim DINESH: Boyden Intro #1 Invented the international retained search business in 1946 More than 65 offices in over 40 countries, 300 client partners, well defined practices Global Ranking – top seven by revenue, partner owned, partner led Top three firms in global footprint (offices) A founding member of the AESC, our industry trade body. We endorse and exceed the standards of the Code of Ethics and Professional Practice Guidelines of the AESC. Top five search firm in many of our markets. PERFORMANCE & QUALITY Repeat Business 75% | Completion Rate 87% AESC FOUNDING MEMBER The AESC seal represents quality and integrity TOP 5 EXECUTIVE SEARCH FIRM As ranked by the AESC with respect to performance, quality and integrity.

Boyden’s Global Reach: everywhere you are and aspire to be! • Toronto Calgary Pittsburgh Santiago Sydney St Petersburg Mumbai Pune Houston Sao Paulo Bangkok Frankfurt Berlin/Munich Dusseldorf Johannesburg Dubai Lima Beijing Auckland Miami Washington/Baltimore New York/New Jersey San Francisco Mexico City Atlanta Winnipeg Chicago Bogota Buenos Aires Lisbon Paris Lyon London Madrid Barcelona Valencia Moscow Amsterdam Milan Zurich Geneva Helsinki Stockholm Oslo Copenhagen Vienna Istanbul Sofia Prague Warsaw Bangalore Jakarta Taipei Hong Kong Singapore Seoul Tokyo Brussels • Bratislava • Bucharest Cairo DINESH Boyden Intro #2: We have over 65 offices in over 40 countries. One of the largest ES firms in the world. Extensive coverage of CEE- 7 Offices in Austria, Czech, Slovakia, Hungary, Bulgaria, Poland, and Ukraine. We are everywhere you are, and aspire to be. ANDREAS: Thanks for listening in and a joke to conclude

Thank you for your attention! DANIEL: Finding the right mix between international expertise/expats and local understanding Enriching the management selection by means of market mappings and management appraisals, benchmarking internal to external resources Choosing management, that brings along best practices in building up an entrepreneurial/P/L oriented spirit and best-in-calls HR strategies for retention, employer branding etc. Andreas Landgrebe, Austria/CEE Dinesh Mirchandani, India Daniel Feldkamp, Chicago/USA