The Road to Excellence Intro Welcome Whos who

The Road to Excellence

Intro Welcome Who’s who

Agenda Reason for this programme Key note speech FORM 1 process and rules Team opening exercise Organisation Cultures The role of board in their specific area What is governance and who is responsible The scope of the programme to follow

Opening Key note speech Jim Hamilton - Director

Jim Hamilton - 30 th July 2019 Company Confidential General Manager Development Program "There are people who make things happen, there are people who watch things happen, and there are people who wonder what happened To be successful, you need to be a person who makes things happen. “ happen. James "Jim" Arthur Lovell, Jr. , (born March 25, 1928) former NASA astronaut Copyright © 2018 AESSEAL plc Ref: Strategy 18 -draft 1 , October 21, slide 5 Company Confidential

Lead to inspire, inspire to lead “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others. ” “Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. ” Jack Welch, GE “If we win the hearts and minds of employees, we’re going to have better business success. ” “The leader is the person who brings a little magic to the moment” Denise Morrison, Campbell Soup Mary Barra, GM “Growth is never by mere chance; it is the result of forces working together. ” James Cash Penney, JC Penney Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 6

Succession Planning for an Aging Workforce The definition of an ‘aging workforce’ in the UK is any employee 50 years of age or older (45 years or older in the USA). This age group is more likely to take early retirement, work shorter hours, have long term sickness or may even die in service. Succession Planning is critical in this demographic. 35 30 25 20 15 10 5 0 -5 -10 Level 2 - Years to 65 Level 1 - Years to 65 1 2 3 4 5 6 7 8 9 1011121314 • UK average for aging workforce is 30% • AESSEAL plc has 145 employees in this category – 29% (9% are 60 years or older) • Level 1 Directors (AES, AVT & Vulcan) have 90% in this category (whilst retirement at 65 is not mandatory, 50% of this group are over 60 years of age) • Level 2 Directors (AES, AVT & Vulcan) have 64% in this category Team Briefing Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 7 The AES Iceberg Is Melting

Senior Managers – Development Programme Why? • To retain the people who are the future • To ensure the culture of AESSEAL plc is global • To build on the skills already in the group • To be sure our senior team is ‘fit for purpose’ • Succession planning, you’re here because you are good, were here to make you better, and if possible the best !!! Who? • Managers already in a senior role who will benefit from a broader understanding of the business • Talent identified for the future or soon moving into upper management • Good leaders who can be great leaders but don’t fully know that yet Team Briefing Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 8

Senior Managers – Development Programme Trainers/Facilitators • Business Skills – Phil Webb, TAM UK • Leadership - The Leadership Trust (External Residential Course) • Soft Skills or behavioural skills - Roger Fielding Consulting Supported by: • Jim Hamilton + Directors as necessary • Julia Bloomer • Donna Cannon (HR) • Naz Shabir (Legal) • Craig Hay (Finance) Team Briefing Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 9

Senior Managers – Development Programme Business Skills and Responsibilities Content includes; Law, Culture, Planning & Governance, Finance, Budgets, Fraud Detection, Anti-Bribery, Stock Control, Security, HR Essential, Recruitment, Motivation, Performance Management, Sales Team Management, Health & Safety, Strategy, Managing Change, Time Management, Relationship Building, Conflict of Interest, Contracts, Payment Cycles and Terms, Delivery Timescales, Intellectual Property and our ‘Golden Rules’, Values, Process Mapping, Marketing, Brand Responsibility, Reporting Team Briefing Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 10

Senior Managers – Development Programme The Leadership Trust delivers high impact, experiential leadership development, which changes behaviour and transforms individuals, teams and organisations for clients across the globe. With foundations in the Special Forces, the Trust’s approach has been honed over four decades with expert input from behavioural psychologists and specialists in leadership development. Leadership in Management Course Content includes; Leadership Projects • Indoor and outdoor based projects • All candidates will lead at least one project • Individual and team challenges • Observing and reviewing others • Group work to identify the principles of leadership • Presentations • Personal Feedback Team Briefing Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 11 Leadership Trust Class of November 2001

Senior Managers – Development Programme Softer or behavioural skills What we will look at… The essential components of leadership … • self awareness – who are you? what are your values? • purpose and direction – why do you matter? where are you taking us? • leading others – why would we follow you? Can we trust you? • developing others – what are we getting from you? • developing yourself – are you cutting-edge or stale? How we will look at it… Doing the hard work on the ’soft skills’…. • workshops with exercises and ‘homework’ • 1 to 1 coaching quarterly over 24 months • personal profiling (eg psychological type; approach to conflict) • action learning • Hands-on projects and assignments Team Briefing Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 12

Questions Copyright © 2018 AESSEAL plc Ref: AES-01 , October 21, slide 13

FORM 1 process and rules A portal – www. teamactionmanagement/AESTAM FORM 1 is a blank form – with no names Use as many as you like over the course duration At any time, but especially after a day training Give us your Views Questions Ideas Problems Mention good things too

FORM 1 process and rules No rules – no questionnaires – no names, unless you want to All of this will form feedback for use on Day 5 It will inform and feed in to the session where we create the framework Don’t be shy Don’t hold back Think about the whole business Think about the global business This feedback comes directly to TAM and will not be passed on. Portal will close the day before Day 5

Team opening exercise Should someone’s social media activity effect their employability?

The vital importance of communication Upward Information Downward Instructions Directives Horizontal Coordination

Communication Goals

The Communication Process Encoding Channel Source Decoding Receiver Feedback

Who is responsible for communicating? § When you provide instruction to a person, or communicate an idea. § The person goes away and believed that you said something different – leading to a problem. § Who is at fault? YOU ARE § The responsibility for proper communication rests with the initiating person, not the receiver.

How we code Preferences or predication towards: § Visual § Auditory § Kinaesthetic we filter more often that which is not our preferred style

VAK Test Complete this test and then total the columns to provide three totals under V A K

Filters link to behaviours V A K filters Values and beliefs Reference to memory and experiences Behaviours and body language How we are seen to be

Impact of a Message Face to Face Communication

Impact of a Message Telephone Communication

You Are Communicating All The Time You cannot communicate Discuss

Body Language § The invisible science of reading people § Body language – the silent communicator § You can never NOT communicate § Reading the signs § Sixth sense in business

Communication interpretation § I am going to the park today Discuss the FIVE meanings of this sentence

Organisational Culture What is the Culture within a company? How does it manifest? How does your culture affect your business?

Organisational Culture The role of history in making culture Translation through peoples individual values What is Form and Practice? Change management techniques and approaches

What are values? Personal values and supporting beliefs Nature or nurture? Context of values What happens when your values are challenged or forced to change?

Finding fairness Sufficient fairness to bind differing values, backgrounds, experiences, abilities The art of communicating to achieve fairness The road to “Fair Enough”

FAIRNESS AND “Distributive Justice” – Dr Hal Erying: 0 I(s) = 0 I(Co) What we put in What we get out Time Money Degrees Satisfaction Experience Travel and Time Away Loyalty Perks Discomfort Training Personal Skill Time with the boss Connections Recognition and advancement Creativity Responsibility Security

The Decision Process: Dr Otis J Benepe

Mental process for decisions and actions in a group

The role of the Board of Directors To lead in a time of constant change To set the culture of the organisation To support fairness and inclusivity To control the company in its legal and financial obligations To report to Group To improve the business with a formal development plan To plan and re-plan at all times To apply the right resources against the plan

Governance What is Governance ? DISCUSS

Different laws in different places What is more important – the culture or the law?

Governance Doing what is right Being accountable Being compliant with the law Behaving in the AES way If you read about it in the papers tomorrow, can you justify your decisions and would you change the outcome?

The EIGHT pillars of AESSEAL Quality Think Safety! Treat People Fairly Communication Compete Fairly Loyalty Honesty Environment

What is PEST? An analysis of your markets Political Economic Social Technology Sometimes also adding Environmental and Legislative to make PESTEL

Your Markets

PEST analysis The world is changing ever more rapidly Your role is to adapt and plan to change Learn constantly Involve others – no one person can know everything Don’t assume your customers and markets will be there in a weeks time

PEST TASK – (20 min) Populate a four box PEST analysis to identify the challenges, pressures and opportunity for AESSEAL in the next FIVE years. Three groups of three who have ten minutes to present back to the group afterwards.

Capture task output! See how many Form 1’s you can fill in NOW!

What is Strategy? If you don’t know where you’re going – you could end up anywhere DISCUSS What is your strategy?

The process of Innovation New ideas New Customers New Problems to solve The Burning Bridge of technology Have a process to engage staff, suppliers, customers Look for opportunity Record it Do something about it Formally review in your board meetings

Strategy to action What is strategy GOSPA rules How to translate this to action in a people based business

Turning Strategy to action A Hierarchy of Planning Goals Objectives Strategies Plans Actions Use of GOSPA enables you to ensure that : Your actions are consistent with your goals The means of achieving your goals is thought through.

Strategy to action

Communication is critical Involving your staff is essential Engage brains Gain Feedback to get the buy-in Listen with both eyes

What have we learned? Discuss

The Golden Rules § You must not agree to any contract or approve any terms that have an overall uncapped or limited liability § You must not agree any contract that releases or transfers our intellectual property rights to another entity, and; § You must keep clear and concise record of all contracts that you or your subsidiary have agreed to. These can be filed through the AES Legal Department, but it is your responsibility to ensure the Legal Department receive all the relevant paperwork. § As a Director, you acknowledge it is your responsibility that all legal contracts are maintained in accordance with the golden rules. If there is any doubt then you should obtain guidance and support from the Legal Council of AES Engineer LTD. You acknowledge that any failure to adhere to the golden rules may result in disciplinary action being taken against you up to and including summary dismissal.

Culture Homework Using your knowledge, write a brief report to reflect on the following: Ø The impact of your local culture on the Golden Rules Ø Issues that may affect your ability to work within these rules Ø A GAP analysis Ø Actions or ideas that need to be considered going forwards Suggested 2500 words

The programme that follows today Day 2 – HR/Health & Safety Day 3 – Contractual Day 4 – Financial Day 5 – AES brand framework design The outcome during day 5 is to produce a standard framework for AES throughout the business units and countries Interim work is required to provide measurable feedback Overall feedback via the anonymous FORM 1 process will be correlated following the programme and used during Day 5

Thank you Go to portal: www. teamactionmanagement. com/AES Complete as many FORMs as you like anonymously to: Highlight problems Ask questions Suggest something Share an idea Complete 10 forms each – consider your whole business The results are held at TAM, and are used in DAY 5 of our course to help you to build the AES framework.