1. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016Proprietary and Confidential Information of Collabworks, Inc. Copyright 2015 The ROLE Project – CHREATE Rewire HR May 17, 2016 Michael Grove Blending HR & BU’s to Optimize the Workforce

2. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 “Complexity causes 60% of the work to have NO value” Yves Morieux, Partner of the Boston Consulting Group Director of the Institute for the Organization HR Tech 2015 What is the Value of the Work? What is the Use of Talent? Introducing ROLE

3. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 ROLE is the Digitization and Quantification the Value of Work After 4 years or Research and Development, We Created a process to improve the Margin Contribution of the Workforce by: 1.Replacing Low or No Value Work with High Value Work 2.Improving the Alignment of Talent to the Work Solution Features : Clear and Quantitative Work Data Both Individual and Organization Benefit Deliver Improved Agility Increase Margin Contribution Be Sustainable – Core to Culture The WaaS Process: Digitizes Work Transforms Work & Talent Measures the Return

4. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 The Value of Labor is Recognized by the Margin Created Margin Contribution (MC) = Service Value (SV) – Labor Cost (LC) Or, MC = SV - LC Service Value = Value of the Work Performed Return on Labor Employed (ROLE) is Like Return on Capital Employed (ROCE) ROLE = SV/LC, or (MC + LC)/2 The Greater the Margin per Labor Cost the Greater ROLE

5. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 ROLE Drives Financial Margin Return Financial Margin (M) = Revenue - Cost Revenue = M + (Non Labor Cost) + Labor Cost (LC) Top Down Financial Model Service Value (SV) Model is Tuned to Match SV from Revenue WaaS Value Model Service Value (SV) = MC + LC ROLE = SV/LC or (M + LC)/LC When MC = M Service Value (SV) = M + LC Where Service Value is Revenue Associated with Labor

6. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 ROLE is a Pervasive Metric of Workforce Performance Use Case Example: The Individual % Full Time Equivalent (FTE) Services Performed (Work) 123456123456 1 FTE 1 Hema is a software engineering with 4 years experienced Assume SV = LC or MC = 0 Or, ROLE = SV/LC = 1.0 Service Value (SV; Metric) Ex. Relative Value Y = 2X 1 100% X = 1 FTE 2 90%X + 10%Y = 1.1 FTE SV Gain = 10%; ROLE = 1.1 123456123456 Transform Plan X Services Y Services Needs Desires 2 X = Lower Value Services Y= Higher Value Services

7. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 ROLE Clarifies and Validates the Value of Change Use Case Example: A Small Consulting Group Case 1 3 Senior Consultants Revenue (R)1.0 Labor Cost (LC) @ 0.2M ea.0.6 Non-Labor Cost 0.2 Margin (M) 0.2 Service Value (SV) M+LC0.8 ROLE (SV/LC) 1.33 $, M 50% High Value; 50% Low Value Work Case 2 2 Senior + 1 Junior Consultants 50% High Value; 50% Low Value Work Senior Talent – 75% High Value; 25% Low Value New Business + Revenue (R)1.0 LC: 2 @ 0.2M ea.; 1@ 0.10.5 Non-Labor Cost 0.2 Margin (M) 0.3 (50% Gain) Service Value (SV) M+LC0.8 ROLE (SV/LC) 1.60 (20% Gain) $, M

8. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Top Talent 6 Top Talent (Z), 30% of Engineering Group % Z Services Performed 50% 42% 27% 32% 18% Total Top Services by Top talent = 2.09 FTE = 35% 40% WaaS Clarifies Top Talent and % Top Talent Work Performed Actual Use Case; Fortune 50 High-Tech Once Aware: Group Increased Top Talent Work by 21% in 18 months HR can Add Business Value by Matching Talent to Work (not Job)

9. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Labor Margin Contribution Directly Impacts Financial Performance Use Case Example: A Corporation Revenue (R)500.0 Labor Cost (LC) @ 0.15M ea.202.5 Non-Labor Cost 239.4 Margin (M) 58.1 Service Value (SV) M+LC260.6 ROLE (SV/LC) 1.29 $, M Revenue (R)538.3* LC: + 67@ 0.12M each212.7* Non-Labor Cost 239.4 Margin (M) 86.2 (61% Gain) Service Value (SV) M+LC299.0 ROLE (SV/LC) 1.41 (9% Gain) $, M Case 1 270 Senior Talent; 1350 FTE 50% High Value; 50% Low Value Work Case 2 270 Senior Talent; 1350 FTE 75% High Value; 25% Low Value Work + 67 Junior Talent; FTE * Option 2: Revenue and FTE unchanged; then 67 Senior replaced by Junior, then LC reduces by $8.7M and M = $65.5M Margin; and ROLE = 260.6/193.8 = 1.34 (4.2%)

10. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 WaaS Process Engineering Use Case Summary Step 1: WaaS Assessment (1 Hr. per Group) 1.Real time assessment open dialog, motivated desire to change 2.Both managers and non-managers set objectives to address issues 3.Year/year assessment – engagement score improved by 33% Improvement team activity considered major benefit Step 2: WaaS Discovery – What is it? (1-2 Hrs. per Group) 1.Services (Work) identified include FTE/service, talent use, customer 2.Improvements (Changes) captured; 2/individual; 95% participation 3.Individual desires and objectives captured; personal & organization 4.Metrics identified: service value, importance, talent alignment

11. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 WaaS Process Engineering Use Case Summary Step 3: WaaS Engagement; What changes? (2-3 Hrs. per Group) 1.22 Teams formed; 80% participation; 17 leaders non-managers 2.Leaders/team coached; plans created; quantifiable ROI 3.1-1 manager review; individual improvement plans approved Captures changes in services, use of talent, improved metrics Step 4: WaaS Transformation; Did it change? (1-2 Hrs. per Group) 1.Teams pitched VPs; all 22 improvement plans approved 2.Group and individual plans aligned; commitment to change 3.80% of initial projects succeeded after 18 months Teams were self-driven with little management engagement 7.3% increase in ROLE

12. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Scrum Use Case – Example of Improving Work Inefficiency Scrum Improvement Team Non-manager Lead and Co-lead Scrum FTE Current 0.12 FTE Individual Example Forecast 0.05 FTE O.07 FTE Shifting from Low Value to High Value Service (IP, Architecture) Margin Contribution Increase = 0.2 FTE, 20% Bubble Up Solution Process Process Established and Agreed Investment: Monitor/Measure = 0.15 FTE/yr. Return: 0.75 FTE per year or 5/1 ROI Productivity gain: 0.6/20 = 3% ROI Solution Enterprise has 5,000 Software Engineers 20+ Participate is this typical group 12 meetings per week; 1+ hour duration Poor attendance; lack of resolution The Problem

13. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 The WaaS Process Enables HR to Add Business Value 1.Staffing: Enables the alignment of the work (not job) to the talent Increase service value/labor cost (ROLE) Leverage top talent performing top talent work Leverage productivity of integrating shared workforce platforms 2.Performance: Augment or eliminate performance reviews 1-1 management review (quarterly) re current and planned services provided o Integrates priorities, objectives, growth, desires, metrics 3.Active Engagement: Bubble up issues, setting objectives, real time process Directly ties perceptions to establishing improvement actions; quantitative 4.Total Rewards: Aligns compensation data and decisions with margin contribution 5.Management: Provides performance data; quantifiable outcomes; gaps to address Supports focused coaching, mentor, and development efforts 6.Leadership: Expands leadership activity to all levels – essential for change culture Each Increases the HR contribution to ROLE

14. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Leadership Use Case – High Tech Engineering Managers Non-manager Improvement Team Leaders Improvement Projects Automated Test Tooling CR Propagation Code Review Process Resource Planning Meeting Efficiency Training & Documentation Code Style Tools Development Gates IP Generation Knowledge Reuse After 18 Months Margin Contribution Increased by 12.9% 33% Improvement in Engagement Scores

15. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016Proprietary and Confidential Information of Collabworks, Inc. Copyright 2015 Use Case: ROLE and Margin Contribution Z Division 1 2 1 0 ROLE 2014 Cycle 1 +13% 2015 Cycle 2 2016 Plan (partial) 9 6 3 0 MC (M, $) 2014 Cycle 1 2015 Cycle 2 2016 Plan (partial ) +9.5% Division 2 +14.6% 3 ROLE = Service Value (SV)/Labor Cost (LC) Margin Contribution of Labor (MC) = SV - LC Division 1 +$591K (13%) Division 2 +$1281K (20%)

16. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 There is a Clear Desire to Increase Business Value CHRO Survey Regarding Providing Business Value

17. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 CHRO Survey: Range of Responses Re Adding Business Value “We need the CEO and the board to give us the authority to drive massive change and the investments in technology to give us the tools to achieve.” 12345678910 Score 1 – 10, 1 is Low 5 10 15 20 0 25 2016 Ave. 2019 Ave. % of Responses Comment Significant Variations in Individual Responses 2016 2019

18. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 The Challenges and Opportunities for Sustainable Change “Ordinary is Easy. Extra-ordinary separates you” – Darren Hardy Change is Not Easy It Require Investment, Commitment, Measurement, and Learning Change Management (Lean, 6-Sigma, …) Performance Barriers Requires a sustainable holistic view; high failure rate HR Talent Optimization Lacks data and process to optimize margin contribution BU Project Execution Lacks agility to optimize right talent to the right work at the right time

19. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Management’s Effectiveness in Workforce Margin Contribution ROLE = (MC + LC)/LC Margin Workforce Margin Contribution Management Effectiveness Quantitative Data The Execution Objective is to Increase MC/LC HR Can Support the Effectiveness of Managing the Workforce

20. Business Innovation Michael Grove, CEO Dedicated to Increasing the Margin Contribution of the Workforce

21. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Business Innovation Leads to Greater Margin Contribution Addressing Strategic Initiatives Often Fail – Lack of Clear Improvement and Measurability Organizations are Slow to Adapt (“In the Way”) The Use of Talent is Inefficient – Typically 30% or More Inability to Manage the Workforce to Value Contribution Business Innovation refers to improvements in the value of the work and use of talent: The objective – Increase the margin contribution of the workforce The Premises: There is an ongoing opportunity to optimize the work and use of talent to address changing customer/business needs. Changes will continuously improve the margin contribution of the workforce.

22. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 How to Create the Pipeline of Business Innovation The WaaS Bubble Up Process Group and Individual Improvement Opportunities Group Only Solutions Multiple Group Solutions External Capability or Solutions Innovation Projects Individual Transformation Plans Project Outcomes ROLE & Margin Work Distribution Talent Use Talent Growth Data Output Step 1: Identify Priorities and Leadership Passion Step 2: Filter

23. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 0 8 3 5 3 9 4 4 2 0 0 1 0 4 1 0 2 1 Engineering Improvement Use Case WaaS Improvement Data 0 11 4 6 1 8 2 7 25 Strategic Clarify & Communicate Customer Needs Data & Knowledge Leadership & Innovation Process Improvement Product & Technology Role & Capacity Talent Use & Training Automation Efficiency Innovation Quality Talent Align Training None 165 Improvements 270 Engineering Team – Part of 15,000 Engineering Organization

24. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Engineering Improvement Use Case – Improvement Teams Work First Improvement Data 0 11 4 6 1 25 8 2 7 Improve Scrum Meetings 22 Projects Teams Localize Recognition Improve Access to Knowledge (Wiki, and FAQ) Strategic Clarify & Communicate Customer Needs Data & Knowledge Leadership & Innovation Process Improvement Product & Technology Role & Capacity Talent Use & Training Automation Efficiency Innovation Quality Talent Align Training None 165 Improvements 270 Engineering Team – Part of 15,000 Engineering Organization

25. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Engineering Improvement Use Case – Supporting Actions 0 0 1 0 4 1 0 2 1 Talent Align Strategic Clarify & Communicate Customer Needs Data & Knowledge Leadership & Innovation Process Improvement Product & Technology Role & Capacity Talent Use & Training Automation Efficiency Innovation Quality Training None 165 Improvements BIP Actions Review method of coordination & decision making Facilitate communication; coach metrics and decision process Methods and System review, adjust processes

26. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Engineering Improvement Use Case – BIP Roles 0 8 3 5 3 9 4 4 2 Talent Align Strategic Clarify & Communicate Customer Needs Data & Knowledge Leadership & Innovation Process Improvement Product & Technology Role & Capacity Talent Use & Training Automation Efficiency Innovation Quality Training None 165 Improvements BIP Roles Coach team leaders, support decision making Support BIP community; solution marketplace Direct BU BIP project activities; process changes

27. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Business Innovation Partner Role and Traditional HR Roles Business Innovation Partner Ongoing BU execution of the BIP Process Direct BU BIP project activities, change culture Support HR with data analytics, metrics Coach team leaders, support decision making Support strategic change initiatives Support BIP community; solution marketplace HR Business Partner Staffing, Compensation (BU) Coaching, facilitate, training Improve/change Culture Employee Relations Training and development Staffing, compensation (System) (BU Performance) BIP Requires BU Domain Knowledge; Work First Processes

28. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Business Innovation Partner Role Alignment with CHREATE 2020 Business Innovation Partner (BIP) Ongoing BU execution of the BIP Process Direct BU BIP project activities, change culture Support HR with BU data analytics, metrics Coach team leaders, support decision making Support strategic change initiatives Support BIP community; solution marketplace CHREATE 2020 Roles Talent communities, networks Culture advocate; brand Workforce analytics; trends Work optimizer, talent pool, platforms Customized (BU) Compensation Productivity expert, advocate Team development & workforce capability Expert at new ways of working BIP Aligns with Emerging HR Roles for 2020

29. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Business Innovation Partner Function – ROI Example ROI Justification: Investment 1 Business Innovation Partner (BIP) per 250 FTE - $250K External Support: Experts, Project Needs - $150K Shared (On-demand) Workforce Budget - $200K Total Investment - $600K or $2.2K per FTE Return Labor Cost (LC) 250 @ $200K each = $50M Assume ROLE (SV/LC) = 1.5, Service Value (SV) = $75M Margin Contribution (SV-LC) = $75M - $50M = $25M 5% Margin Contribution Incr./year = $1.25M Year One ROI = (1.25-0.60)/0.60 = 108% Year Two ROI = ((1.25*2)-0.60)/0.60 = 317%

30. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 BIP Community – Improvement Marketplace BIP Community Drivers of Change Culture Strategic Improvements Improvement Marketplace Addressing 5 Forces of Change Technology Networks Connected Marketplace Work Digitization

31. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Workforce Innovation & Learning HR Transformation PMO/Chief of Staff (Organization Performance Engineering) People Strategy, Org Talent Assessment, Change Management, Org Effectiveness, Business -Talent Optimization Analytics and Reporting Total Rewards and HR Ops Employee Experience Talent Acquisition Organizing HR Around the Customer @ HERE, Inc. Business Innovation Customer-centric HR/IT/Finance Driving Culture Change and Workforce Optimization (ROLE Objectives) Future of Work New talent platforms Data integration Dashboards HR Digitization Incentives Agile HR Brand, EVP, Work Environment, Culture Steward Talent Supply Chain

32. Proprietary and Confidential Information of Collabworks, Inc. Copyright 2016 Change is Both an Opportunity and a Necessity “When the pace of change outside your organization is greater than the pace of change within, you will be eaten.” Best Practices Are Stupid By Stephen M. Shapiro