Making the Strategy Happen May21972 Organizational A Change in Action BADM

 IBM

 The past chemical spills from manufacturing plants and employee exposure to carcinogenic chemicals.  E-waste hall of shame  Not committed to remove chemicals from products  Lack responsibility of save recycling  Disposal of products

 Business specific competencies  Growth enabling skills › Making acquisitions, financing, risk management deal structuring, regulatory management and capital productivity enhancement  Privileged assets › Brands, networks, infrastructure, information and intellectual property, people skills and company processes  Special relationships › Pool skills, focus on competencies – SAP with hardware IBM, Compaq, etc. and systems consultants: Ernst & Young

To PlayTo Win May21972

 Strengths  Opportunities  Identify company weaknesses.  Identify threats facing the company.

 Internal drivers › Lawsuits from employees › IBM products quality control › Superfund law  External macro level drivers › Competition › Reputation › Consumers’ concerns

Technology Key Implications For Us Supply Demand Competition/ New Entrants Compelling Reason for Change May21972

Change Vision May21972  Current vision  New change vision

“Making The Strategy Happen” Requires Three Types of Initiatives: Top Down Bottom Up Cross Organizational May21972

 Not steps zigzagging all over the place, but a distinctive pattern or “foot print” in the form of a staircase of manageable steps  1 st steps secures an option on an opportunity, & shows promise, next steps test the concept further & help accumulate the confidence and skills for more steps  Single steps are dramatic in and of themselves, linking them together as a staircase of sequential growth achieves results

Strategy Growth Staircase Towards Our Vision Measurement criteria $ million etc 2007 Measurement criteria Measurement criteria Measurement criteria Measurement criteria Vision May21972 Indicate Major Areas to be addressed each year

 Goals for first year of the 5 year plan.

 Break down the first year plan into 4 quarterly themes and initiatives.  Identify goals, measurements and short term wins for each quarter.  Engage widely.

2009 Theme: Stock: $ Customers: million May21972 Vision Use copies of this slide on a year by year basis Show effect on various indicators

2010 Theme: Measurements May21972 Vision

2011 Theme: Measurements May21972 Vision

2012 Theme: Measurements May21972 Vision

Theme: Measurements May21972 Vision

Communications Plan May21972  Website  Press release

 Outline costs of major initiatives  Outline benefits…..  Create a compelling business case

 Major Risks to organization  Risks of not implementing the plan  Risk mitigation strategies