1. IT Alignment: The Supply / Demand Perspective April-2008 Meeting

2. Page 2 Agenda Happy Spring / April! Today’s Review –THE IT FACTORY Current State Supply / Demand Balance Actions Issues – Resource or Other Your Feedback is Appreciated Ideas for Improvement or New Method to View our Data

3. Page 3 Our IT Factory … Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS ACTIVE PROJECTS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold

4. Page 4 Our IT Factory … Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold We are averaging approx 35* new request projects per month … * March-08 is high due to RC transition.

5. Page 5 Our IT Factory … Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold We are averaging approx 20* completed projects per month … * expect this to decrease in 2008.

6. Page 6 Our IT Factory … Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold The number of project cancellations and rejections are decreasing …

7. Page 7 Our IT Factory … Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS ACTIVE PROJECTS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold There are 134 requested projects <90 days old. There are 22 requested projects >90 days old. (Fill / Kill) There are 36 projects on-hold. (Fill / Kill) There are 135 projects that are active and scheduled to complete in 3mo planning horizon.

8. Page 8 Our IT Factory … Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS ACTIVE PROJECTS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold 35/mo 20/mo <3/mo 134 22 36 135

9. Page 9 Our IT Factory … ARE WE FOCUSING ON THE RIGHT PROJECTS? Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS ACTIVE PROJECTS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold 35/mo 20/mo <3/mo 134 22 36 135 IT Worked on 155 Projects in March 80% Effort into 27 Projects (right ones) – 80/20 20% Effort into 128 Projects 19% Effort into 31 Top 5 Projects – down from 25% in March – 5 top5’s are scheduled to complete this week Yes

10. Page 10 Our IT Factory … ARE WE IN BALANCE? Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS ACTIVE PROJECTS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold 35/mo 20/mo <3/mo 134 22 36 135 No This will decrease as R3 Upgrade, M+A, Notes Rollout, etc. ramp up in 2H – 2008 … We need to make some adjustments in order to bring our factory into equilibrium … APPLY BRAKES, gently.

11. Page 11 Our IT Factory … TARGETS FOR BETTER BALANCE Inbound Projects Outbound Completed Projects Parking Lot Work Scheduled and In-Process to be delivered in NEXT 3 MONTHS ACTIVE PROJECTS Outbound Cancelled or Rejected Projects Short Term Parking Long Term Parking Work Started but Placed On-Hold 35/mo 20/mo <3/mo 134 22 36 135 X X X X X 25 60 20 >=5 Targets X Constraint

12. Page 12 Actions in Next Months: SUGGESTED ACTIONS THAT SHIFT PERFORMANCE TO TARGETS … Demand / Business Relations Managers –Only enter the highest value project requests – Decrease the volume from past –Reject projects that are requested or initialized – at sponsor checkpoint –Recommend cancellations for active projects in early phase of implementation –Manage customer expectations based on current constraints and from other actions below Portfolio Managers –Do not approve new projects, Approve new Top 5 projects to replace cancelled active projects – Make trades –Cancel or Hold active projects based on recommendations Projects Managers –(Re)Schedule active projects with realistic completion date (scheduled finish date) – making nice progress on this …include calendar time for production move and customer signoff –Validate remaining effort hours – encourage contributor estimate on timesheet Resource Managers –Validate that resource effort is flowing to approved work schedules –Approve less resource requests – concentrate resources on fewer projects and schedules –Transition RTE work to offshore services – freeing up more time for project work

13. Page 13 Issues IT resources are not overloaded in the 6 week horizon –We are capacitated for next 6-12 weeks Overloads: –False Positive?: Sheldon Wolfe (R3 upgrade) –R/3 upgrade allocations could cause overloads – approx half of allocations are completed … we will watch this (please raise the red flag) Available: –~10 resources have some available capacity (Make-to-order developers) Are there any resource constraints that need resolution?

14. Page 14 REFERENCE DATA PROJECTS SCHEDULED TO COMPLETE IN THE 3 MONTH PLANNING HORIZON ORGANIZED BY PARENT TEAMS

15. Page 15 Top 5’s scheduled to complete in next three months. Will we achieve these scheduled finish dates? … Encourage Proj Mgr to revisit and assess scheduled finish date … Work with Business Relations folks to manage the customer expectations … If adjust, make sure customer communication is appropriate …

16. Page 16 Planning Horizon for: BAD Encourage Proj Mgr to revisit and reset finish date based on current assessment …

17. Page 17 Planning Horizon for: BIC, BID Encourage Proj Mgr to revisit and reset finish date based on current assessment …

18. Page 18 Planning Horizon for: BMD, Shared Services Teams Encourage Proj Mgr to revisit and reset finish date based on current assessment …

19. Page 19 Planning Horizon for: OTC Encourage Proj Mgr to revisit and reset finish date based on current assessment …

20. Page 20 Planning Horizon for: EHS, eRela, Global Support, HR, Mfg+SupplyChain, Sales + Marketing Encourage Proj Mgr to revisit and reset finish date based on current assessment …

21. Page 21 Planning Horizon for: ITAI, PMO Encourage Proj Mgr to revisit and reset finish date based on current assessment …

22. Page 22 Project Manager Actions Set projects status to complete –Look for Work notifications and respond, otherwise set the work status to complete Set realistic schedules –Add a multiple-week bias to the estimated schedule finish date –Use online procedure in training –Step 10, Set the Schedule, http://learning.rohmhaas.com/D2D/Flash/D2D_Discretionary.html http://learning.rohmhaas.com/D2D/Flash/D2D_Discretionary.html Encourage use of contributor estimate in the timesheet –Overrides remaining allocated effort with “contributor’s best assessment of remaining work” –Discuss at weekly project team meeting(s) Set baseline when ready – project manager discretion –Baseline takes snapshot of allocated effort and schedule dates –Use online procedure in training –Step 13, Report Progress, http://learning.rohmhaas.com/D2D/Flash/D2D_Discretionary.html http://learning.rohmhaas.com/D2D/Flash/D2D_Discretionary.html