Value of Strategic Design in Enterprise- Wide Employee Recognition Programs Steve Baniecki – Manager of Compensation, Business Services Company, Exelon Corporation Jada Sudbeck – Sales Manager, Hallmark Insights Lisa Herwers – Marketing Manager, Hallmark Insights April 27, 2010

Purpose To present Exelon Corporation’s enterprise-wide employee recognition program, which successfully delivers an accessible, easy-to-use, centralized reward and recognition tool 2 © 2010 Hallmark

Introduction Exelon Corporation –One of the nation's largest electric companies with 19,500 employees and 5.4 million customers in IL and PA –Culture focuses on performance, encourages innovation and acknowledges the power of ideas generated by a diverse work force –Corporate goals are Attract and retain employees who will best serve and represent our customers and communities Treat diversity and inclusion as a business imperative, core value and moral obligation Create a challenging and rewarding workplace Hallmark Insights –Hallmark Insights is a business incentive provider that specializes in integrated recognition solutions. Our solutions engage employees through the value of choice to achieve corporate objectives, delivering measurable results to our clients 3 © 2010 Hallmark

Today’s Agenda Challenge Solution Results Insights Q&A 4 © 2010 Hallmark

Challenge - Background Formulate a Recognition Policy for enterprise-wide application –Provide direction on permitted programs & practices –Allow flexibility to accommodate the priorities and cultures of the operating companies Previous program & process: –Tracking process needed improvement –Administration was manual and paper-intensive resulting in delayed recognition –Access privileges were limited to Vice Presidents and above restricting usage of the program Launch the new solution following a workforce reduction 5 © 2010 Hallmark

Challenge - “What we needed to do” Secure management commitment to a comprehensive yet flexible Recognition Policy and enhancing the current system Implement a solution enterprise-wide while allowing each operating company or business unit the flexibility to maintain their own recognition program identities Modify and improve the solution technology Enhance tracking and tax compliance processes Open the recognition process to managers below the executive level Communicate the new solution 6 © 2010 Hallmark

Solution Exelon Reward and Recognition Program Comprehensive discovery plan for identifying program objectives and requirements Robust data integration for accuracy and compliance Meaningful awards with emphasis on timely recognition and recipient choice Extensive communication and training plan Detailed online reporting to measure performance and manager utilization 7 © 2010 Hallmark

Solution The Four Ds 8 © 2010 Hallmark Enterprise-wide needs Tax Compliance Exelon Commitment Identify behaviors to reward – connect to corporate objectives Identify/confirm incentives to engage entire base Establish metrics for success Communication plan Branding IT integration of online solution, HRIS file, Payroll file Single Sign-On from Exelon intranet Rules and timelines for multi-level approvals Custom functionality Execute communication plan Ongoing measurement of program success Employee feedback – formal and informal Model for successful incentive programs for our clients Understand and assess client situation Discovery Create incentive strategy Design Build and test the solution Development Launch and measure program Deployment

Solution RPI Best Practices Management Responsibility –Committed to program objectives and administration Recognition Strategy –A successful program encompasses formal, non formal, monetary, non monetary etc. Exelon’s program includes formal cash and gift certificate programs and less formal practices like logo merchandise. Recognition Measurement –Program Awareness & Adoption Recognition Training –Administration training Communications plan –Plan followed Cascade Model –Update and publish Recognition policies and guidelines –Pre launch communications –Orientation materials –Recorded demo of new solution Events and Celebrations –Departmental outings to the ballpark for team building or group recognition. –Chief Fun Officers (CFOs) appointed within HR to plan informal low or no cost fun activities for employees. –Taste of Asia and other similar events for other employee network groups to sample cuisine and enhance diversity awareness. Program Change and Flexibility –Evaluation of new program enhancements to meet new goals of the organization 9 © 2010 Hallmark

Solution Exelon Reward and Recognition Program Program Overview: –Enterprise-wide including union population –Accessible to all 700 key level managers –Exelon branded solution –Single sign-on access –HRIS and payroll integration –Up to 5 levels of nominations and approvals depending on various business rules –Proxy access –Reporting based on position management and user role 10 © 2010 Hallmark

Solution Program Logistics HRIS file is updated weekly Payroll file is distributed bi- weekly Easy access through Exelon intranet via single sign-on Proxy privileges Two programs with unique rules –Cash Recognition –Premiere Choice Gift Certificate Awards 11 © 2010 Hallmark

Solution Nominations and Approvals Approver notification upon login Manage approvals page 12 © 2010 Hallmark

Solution Premiere Choice Gift Certificate Award 13 © 2010 Hallmark Award includes personalized message of up to 500 characters, multiple logos for all business units, three delivery methods

Solution Cash Award 14 © 2010 Hallmark Award ed to nominator to print and present to recipient

Solution Redemption Home Page Recipients are able to redeem their awards online or use mail-in redemption form Award includes redemption instructions along with URL, award number and award value Fulfillment of gift cards - same business day 15 © 2010 Hallmark

Solution Merchant Selection Page Recipients are able to redeem their Awards for numerous merchant gift cards –Merchant selection –Merchant information, store location, terms & conditions 16 © 2010 Hallmark

Solution Communication A robust communication plan was implemented –Project plan began approximately 1 year prior to launch –Communications planning started four months prior to launch –Cross-departmental representation on communications team –Audiences, messages and vehicles identified –Vehicles included department meetings, s, company newsletters, multiple WebEx demos, online FAQs 17 © 2010 Hallmark

Solution Training WebEx Training –185 managers attended one of two available WebEx training sessions prior to launch –Reviewed Exelon Reward and Recognition philosophy and policies –Conducted a live demonstration of the new solution –Q&As were addressed using a private chat function 18 © 2010 Hallmark

Results This is a great program. This is not an area that I would skimp on for “budget” purposes. Remember, this is one of the areas that our troops are clamoring for -- greater recognition. Please encourage the use of this program with your staff. We’ll track it’s use as a team. - Matt Hilzinger, SVP & Chief Financial Officer, Exelon A bit of feedback on the new Program. I was in there last week for a Gift Certificate … First, cutting the bureaucracy out was great (giving key managers authority) and it was nice to do something which should take 10 minutes and it actually did!. Two, the system is a piece of cake to use and very user friendly. Lastly, Steve Baniecki was very helpful walking me through my first time. - Jimmy Llende, Director External Reporting & Analysis Via this , I want to recognize your [Steve] and George’s effort in making this happen. I’d ask also as our account lead, you contact Hallmark with the feedback that they have gone the extra mile for our Generation team and the extra session to train our report points of contact. If I could nominate them for certificates, I would. - Jim Byrne, Compensation Manager 19 © 2010 Hallmark

20 Results

21 © 2010 Hallmark Results

Insights Key Learnings –Benefits of a detailed comprehensive scoping plan –Aligning calendars early to coordinate IT resources –Regular status meetings for updates and deliverables –Representation from the field –Previews of functionality for end-users –Key Performance Indicators What’s next? –Launching an HR Portal by the end of 2010 Links to recognition tool and policies –Enhanced nominations and approval tracking Additional proxy functionality to streamline approvals –Ongoing manager training and communication –Introduction of new functionality to keep the program fresh 22 © 2010 Hallmark

Questions? Thank you! Steve Baniecki Exelon Corporation Lisa Herwers Hallmark Insights Jada Sudbeck Hallmark Insights © 2010 Hallmark