“Creating Value through Values” Workshop MRH Congres – Stockholm, May 2008 Patrick Van Aeken

1. “Creating Value through Values” Workshop MRH Congres – Stockholm, May 2008Patrick Van Aeken

2. Objectives • This workshop allows participants to… : • … have a better understanding of how values contribute to employee engagement, cultural change (and thus company performance) • … explore different practices for aligning values and performances

3. Workshop process • Brief introductionary presentation : • A conceptual framework • The AXA case • Briefing for work in subgroups • Working lunch : work in subgroups • Presentations by subgroups and discussion • Break • Wrap up

4. “The best way to do is to be” (Lao Tzu) Results : revenue, profits, welness,… HAVE (product) visibility leverage DO (process) Behaviours Mental models : values, beliefs, aspirations BE (platform)

5. The three dimensions of success ACHIEVEMENT : business results, effectiveness, productivity “IT” - Task Exceptional sustainable results ACTUALIZATION : happiness, health, flow COMMUNITY : trust, solidarity, mutual respect “WE” - Relationships “I” - Self

6. HAVE DO BE Ingredients for a remarkable organization (1) IT + Exceptional sustainable results WE I

7. Ingredients for a remarkable organization (2)

8. Workshop process • Brief introductionary presentation : • A conceptual framework • The AXA case • Briefing for work in subgroups • Working lunch : work in subgroups • Presentations by subgroups and discussion • Break • Wrap up

9. Three main era’s in the AXA history of the last 15 years AXA sets a global customer centric vision AXA consolidates and professionalizes AXA conquers the world • Selected external growth • Additional focus on organic growth – maximizing value • 2012 goal to increase revenues x2, profits x3 and become the Preferred Company among stakeholders • Sell off non-core business • AXA Way/six-sigma to encourage consistency and reduction of costs • Launch of international platforms The Strategy: • Rapid inorganic growth • Many large international and smaller acquisitions • Becomes #1 in France through acquisition of UAP in 1997 • How do we honor our mix of cultures and strategies while increasing the value of our Global organization? • What is our differentiated value proposition? • How do we satisfy customers and engage employees? • How do we manage our costs more efficiently? • How do we streamline processes? • How do we give our businesses freedom to win individually in their markets? • Where are the most profitable investment opportunities? • How do we bring acquisition staff into the “AXA Family”? • How do we integrate the processes of acquired firms? Key Questions: 1992 – 2000 2001 – 2004 2005 – 2012 (And Beyond)

10. Main cultural drivers linked to these era’s Strategy of cultural integration Strategy of operational excellence Strategy of differenciation

11. AXA Manager program • Objectives • To familiarize managers with AXA Management Style and AXA values • To enable managers to consider their own management style and the particular improvements they wish to make • To promote the exchange of experience between managers • To help all managers to get to know AXA better • Co-facilitation by consultant and AXA Senior executive ! • Program logistics • A five-day residential program, held throughout the year (4 programs every week !) at one of AXA University’s campuses in Bordeaux • Classes of +/- 20 managers, representing at least 8 countries • Highly participative pedagogical approach • Impact : • Scope survey results over the years showed an important improvement in the application of AXA management principles in the workplace • “… These sessions have made our fast growth possible… They have been key in bringing people together.” (Françoise Colloc’h, director of HR, communication and Synergies AXAGroup)

12. Team Spirit By unifying his team, the manager achieves results that are greater than the sum of each individual contribution Intrabusiness Each business unit must be managed like a small company within the company. Under no circumstances should the unit’s objectives prevail over those of the company or the Group. Innovating In many situations we are often held back by our perceptions, by fear of the unknown and by force of habit. Finding solutions often means deviating from the beaten track. AXAgrams • 28 pictograms, being a visual language : • To communicate the Group’s core values and management philosophy • To promote common understanding of key business concepts among a multilingual and multicultural workforce • Used in internal communications, business presentations, training programs

13. AXA Way • Context : striving for “operational excellence” : • Through well known Six Sigma methodology (within AXA re-named “AXA Way”) • With a team of internal consultants (called “Black Belts” ; 1 % of the population) leading improvement projects in all departments of the organisation. • Process : • Benefits : • Culture of “operational excellence” spread through the company • A generic quality methodology culturally completely integrated • Development track for talents Black Belt career 30 months 3 to 4 projects /year in different departments Selection of Black Belts 1 % for each BU specific competency profile Development opportunity for emerging talents Integration in the business In function of opportunities and motivation If no solution, mandatory integration in initial BU

14. AXA Business approach • A vision that encompasses : • A core business : financial protection • A brand name and promise : “be life confident” • A set of values • A responsible corporate strategy • A strategy that includes : • A business model • Segment priorities • Geographic priorities • Operational priorities • Our sources of leverage : • Developing employee competencies and engagement • Strengthening executive leadership Financial Protection involves offering our customers - individuals as well as small, mid-size and large businesses - a wide range of product and services that meet their insurance, protection, savings, retirement and financial planning needs throughout their lives. Team Spirit Integrity Innovation Professionalism Pragmatism. Product Innovation Distribution Management Quality of service Technical excellence Productivity

15. Think Feel Think Feel ENGAGEMENT Act Act Scope survey : from employee satis-faction to employee engagement • The Scope survey exists already for more than 15 years. • Yearly process : • Since 2006 we focus on employee engagement, through the following model : • A Cognitive dimension : Think = Belief in and support for the goals/values of the organization. • An Affective dimension : Feel = Sense of belonging, pride, attachment to the organization. • A Behavioral dimension : Act = Willingness to go the extra mile, intention to stay with the organization. • Engagement KPI of staff is integrated in performance appraisal of executives. • Engagement KPI is rising over the years. Methodological data processing and analysis Distribution of results and feedback Action plans

16. Ambition 2012 : becoming the preferred company To gain the preference, we need to stand outfrom the crowd in these three areas The third is an outcome of the first two… 2 significant HR initiatives PASSPORT 2012 A personal and individual pluri-annual document, helping each AXA employee worldwide to clarify his/her contribution to Ambition 2012 and making managers responsible in supporting their employees . AXA Miles Because we were on track towards the Ambition 2012 objectives, AXA awarded every single employee worldwide with 50 bonus shares in 2007, thus making each employee an AXA shareholder. Another 50 shares are announced for 2009 if results will be on track.

17. AXA Brand Spirit : from the “land of promises to the “land of proof” (may 2008) • The new Brand Positioning : AXA, the Financial Protection Company that continuously works to prove it is worth trusting • The new signature : “redefining / standards” • Values remain unchanged… • Three core attitudes were identified in a bottom up approach : attentive, available, reliable If you were a customer what would make you choose AXA tomorrow Which would make you proud of AXA tomorrow RELIABLE (34%) ATTENTIVE (34%) PROACTIVE (33%) AVAILABLE (32%) AVAILABLE (51%) ATTENTIVE (39%) RELIABLE (38%) PROACTIVE (32%)

18. It pays off… : financial results 2007 • AXA records solid performance in full year 2007 • Underlying earnings up 27 % • Ajusted earnings up 22 % • Net income up 11 % Henri de Castries, CEO : The reported numbers reflect the combination of a strong organic growth in all our business lines, the successful integration of Winterthur and confirm that our balance sheet is not affected by the subprime crisis

19. Workshop process • Brief introductionary presentation : • A conceptual framework • The AXA case • Briefing for work in subgroups • Working lunch : work in subgroups • Presentations by subgroups and discussion • Break • Wrap up

20. 4 subgroups questions • X • X • X • X

21. Workshop process • Brief introductionary presentation : • A conceptual framework • The AXA case • Briefing for work in subgroups • Working lunch : work in subgroups • Presentations by subgroups and discussion • Break • Wrap up

22. Workshop process • Brief introductionary presentation : • A conceptual framework • The AXA case • Briefing for work in subgroups • Working lunch : work in subgroups • Presentations by subgroups and discussion • Break • Wrap up

23. Workshop process • Brief introductionary presentation : • A conceptual framework • The AXA case • Briefing for work in subgroups • Working lunch : work in subgroups • Presentations by subgroups and discussion • Break • Wrap up

24. Workshop process • Brief introductionary presentation : • A conceptual framework • The AXA case • Briefing for work in subgroups • Working lunch : work in subgroups • Presentations by subgroups and discussion • Break • Wrap up