1. M&A Change Management Strategy (Manufacturing)

2. “Whenever you see a successful business, someone once made a courageous decision.” ~ Peter Drucker

3. The reality 50%+ of M&A activity fails to deliver on financial expectations* Most common reasons: ○Mis-aligned business strategy ○Culture shock - failure to address people issues ○Management ○Technology * Business Insider, 10/2012 * Forbes 3/2012 * Globoforce 9/2012

4. Integration Change Approach Copyright © 2014 Prosci Inc. All Rights Reserved

5. Current State of Project Strong sponsorship Solid project plan Need to build out the change plan

6. Level of Impact (Manufacturing) # of FTEs Change Percentage Significant impacts: org structure, reporting relationships, processes, tools and systems.

7. Proposed Sponsorship Model + Alignment Mfg. (Acquirer) Mfg. (Acquirer) JS SK VP COO CEO2 CEO Mfg, (Acquired)

8. Organizational Attributes: Acquiring Mfg. 8 Employees satisfaction high; no recent significant changes SAP Manufacturing environment Strong leadership and sense of team Culture is “family-focused” – trust-heavy General sense: local communication is effective

9. Organizational Attributes: Acquired Mfg. Rumors abound about potential for sale Under-performing financially for 6 quarters Immediate concern = job security Mfg’s legacy systems and processes seen as albatross Strong culture of “family,” very few WFRs historically 9

10. Sponsorship Roadmap: Your Role Be visible and approachable to employees Be primary spokesperson in Acquiring Mfg and secondary in Acquired Mfg. Communicate business case for change (up, down and across), and key updates as decisions are made Be candid and transparent; credibility is key Be open to feedback and listening; open dialogue

11. Communication Objectives Provide timely, transparent and accurate information to targeted audiences Leverage managers as change champions and communicators Communicate what we know, when we know it Leverage existing employee data

12. Change Communication Plan: Acquiring Mfg - Day One TimingVehicleKey MessagesSpokespersonNotes/ Feedback 8:00amEmail w/ announcement, copy of press release and invite to attend Townhall *Excited to announce acquisition * Share similar values and product- suites * Positions us as largest in industry * More details to follow * Please join Operations Leadership in common-area for Townhall CEO, cc:ing COO, VP & Director of Mfg. + HR 9:00amTownhall*Excited about acquisition * Share similar values and product- suites * Positions us as largest in industry * Details still being ironed out, but do anticipate a 12-18 month integration of Mfg facilities * Celebration! COO: repeat announcement VP + Director: local msgs HR onsite for at least one week

13. Next Steps 1.Continue to build out change & communication plans, aligned with project plan 2.Share plan with HR to ensure alignment with onboarding plan 3.Socialize plan with key managers to get input/buy-in

14. Questions