Agilon Proposal to RCI

1. Agilon Proposal to RCI Joni Anderson Sean Casady Aleksey Dmitrenko Kyndal Gannon Leena Khan Pat Lyons Camille Papillard Diane Vavrasek

2. Agenda • Company Information • Organizational Structure • Leadership Structure • Compensation System • Employee Development Plan

3. Roberston Communications Inc. • Telecommunications Company • 50 Employees • 40 Exempt (including co-founders) • 10 Non-exempt • Global Competitors

4. Organizational Structure • Lattice-structure • Co-founders as direction and evaluation committee • Remaining 38 exempt and 10 non-exempt as a “talent pool” • Talent Pool includes employees from all functional areas (e.g. IT, finance, marketing, etc.) • Self organize into project groups (similarly to Agilon members) according to which functional expertise is needed for which project

5. Lattice Structure

6. Organizational Structure • Commitment Tracking • Ensures follow-through on projects • Internal personnel database • Skills • Knowledge • Interests • Areas for Improvement

7. Organizational Structure • Communication Facilitation • Weekly meetings between project champions and co-founders • Internal blog • Open-door policy for all members of RCI (including co-founders) • Wide-open office floor, trading-style, promotes easy migration

8. Organizational Structure • Lattice structure is non-hierarchical • Promotes innovation, communication, collaboration • Motivates individuals due to increased interest in project work • Leads to employee engagement and company loyalty • Encourages mutual learning

9. Leadership Structure • 2 Levels of leadership • 2 co-founders oversee the direction of the organization • All other employees work as peers to carry out the mission of RCI • Relatively flat, egalitarian leadership structure

10. Leadership Roles • Co-founders • Serve as catalysts • Assess ideas and determine the direction of the company • Appoint project champions • Accessible to all members of the organization • Employees • Mutual learning • All employees are responsible for being both a teacher and a learner • Every employee could potentially be a project leader

11. Succession Planning • How do we identify talent to eventually take the place of the co-founders? • Identification would be based on two criteria: • The degree of commitment that individuals showed (number of projects they lead) • The success of the projects that the individuals took part in (creativity of the projects and financial outcome) • Succession planning ensures the stability of RCI in the event that the co-founders could no longer serve as the top leadership level • The organization should designate two new catalysts who could rotate every five years

12. Compensation for Agility Strategy • One egalitarian, narrow pay band • Tie compensation to agile behaviors • Award bonuses based on organizational performance • Base pay increases on employee value

13. Compensable Factors For Salaried Employees

14. Compensable Factors • Cross Functionality • Engages in cross functional activities • Actively networks and collaborates across organizational “boundaries” • Continuous Learning • Actively pursues self-development • Is able to grasp and master new technical and business knowledge/skills • Seeks feedback from others • Gives feedback to others • Supports and engages others in their own development • Collaboration • Consistently develops and sustains cooperative working relationships with colleagues • Encourages and facilities cooperation within the organization and within working groups • Fosters relationships and finds common ground with a wide range of stakeholders

15. Compensable Factors • Innovation • Contributes new insights and solutions for organizational improvement • Creates an environment that encourages creative thinking and innovation • Develops and implements new or improved programs, processes, products, or other initiatives • Role specific Activity • This compensable factor will vary for each role within the organization. The criteria and weight will be based on the duties and responsibilities of each role.

16. Bonus Structure • Awarded annually as a percentage of base salary (up to 10%) in a lump sum bonus • Based on organization-wide performance metrics • Financial Performance • Progress and Innovation • Customer Satisfaction • Promotes organizational performance and a sense of ownership

17. Hourly Employees • Pay based on local market levels • Pay level slightly above market • Included in the company wide bonus

18. Pay Increases • Merit Increase • Employees reviewed annually • Directly corresponds to increases in duties and responsibilities • Appears as an increase in percentage of the role specific compensable factor • COLA • Based on CPI index to adjust for inflation

19. Employee Development Plan • Flexible and adaptive plan • Train employees on broad competencies • Innovation • Cross-functionality • Spontaneous Collaboration • Continuous Learning

20. How to Train for Competencies • Innovation -Role playing and action learning projects • Cross functionality • Role playing, cross-training, multiple mentoring • Spontaneous Collaboration • Team training and communities of practice • Continuous Learning • Mentoring, after action reviews, self-directed learning

21. Questions?