Marie Guillot, Silver Fox Associate President, ABACO International Lane Sloan, Silver Fox Advisor Energy Industry Leader Lunch & Learn

DownsizeRetainGrow Process Management Thoughtful Methodology Select Viable Options Opportunistic Recruiting Two Key Elements Staff Engagement Transformation Steps Strategic Options Implementation

Downsizing Reasons Want to be Lean & Mean No choice in liquidation Performance Criteria Experience Criteria Performance Criteria Focus on high grading staff Focus on sustaining operations Have to… cash short Timing Criteria Orderly closing down

A B C Retirement Ready A B C Experienced Staff A C B Inexperienced Staff Review with Lawyer Staff Skill Pool

A B C Retirement Ready A B C Experienced Staff A B C B Inexperienced Staff Target RED Review with Lawyer Staff Skill Pool

 Lack of sufficient objective performance data  Litigation considerations  Morale factor  Deep enough pockets for severance program  Potential for deep cuts

 Severance Methodology  Announcement Process  Severance Package  Outplacement Support  Counseling  Dealing Fairly  High leadership visibility  Extensive communications  Manage Mourning Period  Create a vision for future  Improve operational processes  Engage staff in change LeavingStaying Face brutal facts and give hope for future

 Work harder/longer hours same pay  Hiring freeze  Reduced time or overtime  Salary freeze or reductions  Cut variable expenses Some Possible Options People are your most important asset!

 Communicate employees most important asset  Lead by action  Engage staff in making tough choices  Initiate change improvement process  Provide rewards for cost savings  Rally employees we can do it Doing the right thing

Acquiring the Right top talent Downsized Candidates on street Young Bs Look for Potential As & Bs Shakers / Movers As & Bs Experienced Defunct company Candidates on street Downsized Disgruntled candidates Recruit Away Pay market rates for Right talent

Start with growth plans Develop organizational needs Define jobs to fit needs Establish positioning and target market Follow recruiting process Focus on screening candidates Choose right fit Consider retention process Start with blank sheet Utilize good search methods

Leadership Activities Management Activities John Kotter, “What Leaders Really Do” Setting DirectionPlanning & Budgeting Leadership is about coping with change Management brings order to achieving goals Aligning People Organizing & Staffing Motivating People Controlling & Problem Solving Culture of Leadership Training & Development