Change Management 101 Operationalizing the Transition to the

Change Management 101: Operationalizing the Transition to the Guidewire Platform Aaron Brow, Jennifer Noel and Nikki Webster November 5, 2015

The purpose of this presentation is to provide general information about CNA and its current Human Resources strategies. Given the unique nature of CNA strategies, they may or may not be appropriate for use by other organizations and may be subject to change without notice. "CNA" is a service mark registered by CNA Financial Corporation with the United States Patent and Trademark Office. Certain CNA Financial Corporation subsidiaries use the "CNA" service mark in connection with insurance underwriting and claims activities. Copyright © 2015 CNA. All rights reserved. 2

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Meet the Presenters Aaron Brow Vice President, Organizational Change Management (OCM), Human Resources Aaron is responsible for leading the OCM team in its mission to deliver practical change management solutions that drive results and build organizational change management capabilities for CNA’s long term success. Nikki Webster Director, Learning and Development, Human Resources As part of her role, Nikki is responsible for designing and developing learning for enterprise initiatives, including Guidewire implementations. Jennifer Noel Director, Organizational Change Management, Human Resources Jennifer has worked on Guidewire system implementations at CNA in a variety of roles including; change management, business process and requirements. 3

WHY CHANGE MANAGEMENT? CNA’s approach.

Text Poll What can we expect when we don’t manage change effectively? o Lower productivity o Passive resistance o Active resistance o Turnover of valued employees o Disinterest in the current or future state o Arguing about the need for change o Changes not fully implemented o People finding work-arounds o People revert to the old way of doing things o Divides are created between ‘us’ and ‘them’ o All of the above 5

Barriers of Success Top 10 Barriers to Transformation Success Delivery Focus OCM Focus Resistance to Change 82% Inadequate Sponsorship 72% Unrealistic Expectations 65% Poor Project Management 54% Case for Change not Compelling 46% Project Team Lacked Skills 44% Scope Expansion / Uncertainty 44% No Change Management Program Not Horizontal Process View IT Perspective not Integrated 43% 41% PERCENT OF FIRMS 36% Source: Survey of CEOs Regarding Business Transformation: Barriers to Success, Conference Board, Copyright © Equa. Terra 2007. All rights are reserved. 7

Greatest Contributors to Our Success • • Active and visible executive sponsorship Structured change management approach Dedicated change management resources and funding Frequent and open communication about the change and the need for change management • Employee engagement and participation • Engagement and integration with project management • Engagement and support from middle management 8

CNA’s OCM Model 9

OCM Methodology Degree of support for the change CNA’s Organizational Change Curve Time 10

Six Levers of Change Six change levers are the focus for the OCM change strategy. They address top barriers and drive change readiness for adoption. 1 Compelling vision and communications 2 Executive Stakeholder management 3 Stakeholder and change networks 4 Change impacts and adoption 5 Training to build capability 6 Organizational design 11

Six Levers of Change 1 Compelling vision and communications 12

Six Levers of Change 2 Executive Stakeholder management 13

Six Levers of Change 3 Stakeholder and change networks 14

Six Levers of Change 4 Change impacts and adoption 15

Six Levers of Change 5 Training to build capability 16

Six Levers of Change 6 Organizational design 17

DEPLOYMENT HISTORY And, lessons learned.

CNA Guidewire History 2004 2007 2010 Pilot of Guidewire Claim. Center Commercial New Account Set Up ~ 30 Users Upgrades to Claim. Center 2005 2008 2012 1 st Guidewire Deployment – Commercial Claim. Center ~ 1, 250 Users Commercial Small Business ~ 400 Users Pilot Specialty Claim. Center 2015 2013 Deployment of Specialty Claim. Center ~ 700 Users Enterprise Policy. Center Monoline Excess Liability (Umbrella) ~ 50 Users New Account Setup ~ 12 2017 Enterprise Policy. Center: Package Products Specialty Lines of Business 2014 2016 Enterprise Policy. Center 1 st Business Unit: Life Sciences ~ 275 Users Enterprise Policy. Center: Common Customer ~ 1000 Users Workers Compensation ~ 1000 Users Excess Liability (Umbrella) ~ 1000 Users Surety: Bond Processing ~ 350 19

2010 2004 2005 2007 2008 2012 2013 2014 2015 Our Work: 2005 First Guidewire Deployment: Commercial Claim. Center (approximately 1, 250 users) Microsites High Level Change Impacts Change Network Communication Campaign Classroom Training, Hands on in Training Environment Job Aids and Self Study E-Learning - Show Me’s, Try Me’s and Branching Command Center Deployment Team 20

2010 2004 2005 2007 2008 2012 2013 2014 2015 Our Work: 2008 Commercial Small Business (approximately 400 users) Organizational Impact Analysis Microsites Change Impact Work Sessions Organizational Design New Job Aids via Help Screens High Level Change Impacts Change Network Communication Campaign Classroom Training, Hands on in Training Environment Job Aids and Self Study E-Learning - Show Me’s, Try Me’s and Branching Command Center Deployment Team 21

Job Aids via Help Screens 22

2010 2004 2005 2007 2008 2012 2013 2014 2015 Our Work: 2014 and beyond…. Enterprise Policy. Center: Additional business units OCM Role, Methodology Microsites New E-Learning - Snippets Organizational Impact Analysis Microsites Change Impact Work Sessions Organizational Design Job Aids via Help Screens High Level Change Impacts Change Network Communication Campaign Classroom Training, Hands on in Training Environment Job Aids and Self Study E-Learning - Show Me’s, Try Me’s and Branching Command Center Deployment Team 23

Microsites: An Integrated One-Stop Shop 24

Six Levers of Change Six change levers are the focus for the OCM change strategy. They address top barriers and drive change readiness for adoption. 1 Compelling vision and communications 2 Executive Stakeholder management 3 Stakeholder and change networks 4 Change impacts and adoption 5 Training to build capability 6 Organizational design 25

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