Change Management and Employee Engagement Team MA Charter

Change Management and Employee Engagement Team M&A Charter and Plan

Charter – Change Management and Employee Engagement Team Mission Deliverables • • Develop a comprehensive change management plan that identifies what is changing and what is not as a result of the merger Design and deploy mechanisms to help employees understand the required changes and take personal responsibility for successfully implementing them Prioritize activities in the change management plan by creating HR Plans for Day 1, first 100 days, first six months, and first year post-close Develop mechanisms to help employees understand embrace the mission-critical cultural attributes that will define integration and business success within their part of the combined organization Help people make sense of the changes so that they choose to align, engage, and commit their energy and passion to helping the combined organization achieve its integration goals and meet its full business potential Create feedback loops to ensure the organization receives continuous input on what’s working and what’s not throughout the transition period • Comprehensive change management plan describing what’s changing and what’s not for Day 1, First 100 Days, First Six Months, and First Year postclose Identification of mission-critical cultural imperatives that must be preserved or initiated to ensure the success and sustainability of the change Employee Engagement Initiatives, including: • - Managing through Uncertainty Workshops - Joint Intranet site for merger FAQs and announcements - Day 1 Welcome Celebration and Gifting - Site Visits by Executives shortly after Close - Employee Orientation - Town Hall Meetings - Employee Surveys to evaluate onboarding, integration, and launch - Appreciative Inquiry (AI) initiatives, as appropriate Feedback loops to assess what’s working and what’s not • Interdependencies/ Coordination/ Collaboration Required • • Executives in charge of each business unit to ensure alignment HR teams to ensure all people-related issues are addressed Communication team to ensure consistency of messages Corporate to ensure alignment with vision/values In Scope Out of Scope • • Hot topics/urgent issues to be solved • Core Team Members List here • • • © PRITCHETT, LP 800 -992 -5922 All target’s business units External communications All employees External stakeholders 1 Key decisions by executives regarding what’s changing/what’s not on Day 1 & beyond Synchronization of HR activities across all business segments Clarity around who’s doing what for all Day 1 HR requirements Organizational design/staffing decisions within New Division Availability of Executives to participate in employee engagement initiatives Ensure zero redundancy with Communication Team activities www. Merger. Integration. com

Change Management and Employee Engagement Team Overview 1 Charter Team, 2 determine what’s changing, and develop change plans Area Key deliverables Change Management • Identify team members • Create team charter and key deliverables • Launch team • Formulate key decisions list for New Division Analyze what’s changing and what’s not • Develop HR Plans for: Day 1 First 100 Days First Six Months First Year © PRITCHETT, LP 800 -992 -5922 3 Design celebrations, surveys, training, communication, and feedback loops Employee Engagement Lessons Learned, Best Practices • Conduct Managing Through Uncertainty Workshops • Launch joint intranet site for FAQs and announcements • Plan/conduct Day 1 Welcome Celebration and gifts • Schedule site visits Executives shortly after Close • Conduct Employee Orientation sessions • Administer 100 -Day employee survey to gauge understanding and alignment • Hold Town Hall Meetings with employees six months post-close • Administer 1 -Year employee survey to gauge success of integration / new division launch 2 Capture lessons learned, document best practices • Discuss lessons learned and what can be done differently going forward • Codify learning for future benefit • Document and share best practices across businesses to benefit the entire enterprise • Celebrate team successes www. Merger. Integration. com

Change Management and Employee Engagement Team Work Plan Deadline Nov Change Management Activities • Identify core team and extended team members • Create team charter and key deliverables • Launch Core Team (virtually) • Formulate key decisions list for New Division • Launch Extended Team with Face-to. Face Meeting • Analyze what’s changing/what’s not • Develop HR Day 1 Plan • Develop HR 100 -Day Plan • Develop HR Six-Month Plan • Develop HR 1 -Year Plan © PRITCHETT, LP 800 -992 -5922 7 14 Dec 21 28 5 Jan 12 19 26 2 Feb 9 16 23 30 6 March - February 13 20 27 12/19 1/2 3 www. Merger. Integration. com

Change Management and Employee Engagement Team Work Plan Deadline Employee Engagement Activities • Conduct Managing through Uncertainty Workshops for Target employees • Launch joint intranet site for FAQs and announcements – populate regularly • Plan Day 1 celebration and gifts • Conduct Day 1 Welcome Celebrations (actual date depends on Close date) • Schedule site visits by Executives (actual dates depend on Close date) Dec Nov 7 14 21 28 5 Jan 12 19 26 2 Feb 9 16 23 30 6 March - February 13 20 27 1/25 • Conduct Employee Orientation sessions (actual dates depend on Close date) • Administer 100 -Day employee survey to gauge understanding and alignment • Hold Town Hall Meetings with employees six months post-close • Administer 1 -Year employee survey © PRITCHETT, LP 800 -992 -5922 100 days post close Six months post close 1 year post close 4 www. Merger. Integration. com

Change Management and Employee Engagement Team Work Plan Deadline Employee Engagement Activities (continued) • Identify mission-critical cultural attributes • Design Appreciative Inquiry mechanisms to build commitment and engagement © PRITCHETT, LP 800 -992 -5922 Dec Nov 7 14 21 28 5 Jan 12 19 5 26 2 Feb 9 16 23 30 6 March - February 13 20 27 www. Merger. Integration. com

A Systems Model of Change Target Elements of Change Arrangements • Policies • Procedures • Roles • Structure • Rewards • Physical Setting Inputs Internal • Strengths • Weaknesses Goals Strategy External • Opportunities • Threats • Desired end results • Priorities • Standards • Resources • Linkage throughout People • Knowledge • Ability • Attitudes • Motivation • Behavior Outputs Social Factors • Organization culture • Group processes • Interpersonal interactions • Communication • Leadership org Methods © PRITCHETT, LP 800 -992 -5922 6 www. Merger. Integration. com

HR Day 1 Plan � � � � � � 1. Day 1 Welcome Celebration (a) Who will plan the celebration? Who must approve? Is there a “theme” or slogan? (b) What will the celebration include? Will questions be allowed/encouraged? (c) How will people be notified about the Day 1 Celebration? (d) Will it be the same celebration at all locations? (e) Will all locations participate? (f) Who will prepare presentations? (g) Who will deliver presentations at which locations? Live, on video, or broadcast? (h) Will there be gifts? If so, who will decide on gifts? Who will order? Shipped when? (i) Will there be decorations, banners, balloons? Who will decorate? (j) Will there be food and beverages? Who will order? (k) Will there be welcome packets? If so, what is the content and who will prepare? (l) What is the budget? Who pays for it? (m)Who (on site) will be responsible for coordinating everyone involved? (n) How much notice will we have to prepare for Day 1 Celebration after Close? (o) Who will notify whom when the deal has formally closed? (p) How will gifts/information be given to employees who miss the celebration? (q) Will normal business hours be observed on Day 1? 2. Day 1 Security/Business Cards (a) Will security badges be issued on Day 1? Are photos required? Must employees sign for them? (b) Will new business cards be issued on Day 1? Who will order? (c) Will any locks or passcodes be changed on Day 1? If so, who needs access to what? © PRITCHETT, LP 800 -992 -5922 7 www. Merger. Integration. com

HR Day 1 Plan (continued) © PRITCHETT, LP 800 -992 -5922 8 www. Merger. Integration. com

Key Decisions List for New Division � � � � � � � 1. New Division Name What will the name be for the New Division? What is its reporting structure? 2. Executive Team Staffing When will the executive team be decided? When will this team be announced? 3. Organizational Structure What organizational structure will be selected? When will this decision be announced? 4. Staffing Changes in remainder of the New Division (if any) Will there be staffing changes in the remainder of the New Division? If so, when will these decisions be made? When will they be announced? 5. Headquarters decision Will the headquarters for the New Division remain in the same city? If not, when will this be decided/announced? 6. Annual Business Objectives and Priorities What are the business objectives for the year? What are the top priorities within that list of objectives? What projects should be stopped, started, accelerated, or delayed? What “early win” projects can be launched to demonstrate the potential of the new division? 7. Vision and Values of New Division How do the Vision/Values of the new division synch up with the Acquirer’s 8. Mission-Critical Cultural Attributes What mission-critical cultural attributes will support the strategy and ensure business success in the New Division? What mission-critical cultural attributes must be preserved from the target’s culture to ensure business continuity and success? 9. Retention Challenges Are major retention challenges anticipated in any parts of the New Division? 10. Policies and Procedures Will employees of the New Division be subject to all the Acquirer’s policies and procedures? © PRITCHETT, LP 800 -992 -5922 9 www. Merger. Integration. com