HR Transformation During M&A

1. HR Transformation During M&A Building the Playbook for the Unpredictable Atlanta/SE 2nd Quarter Meeting June 15, 2017

2. Introducing Jim Pettit Seasoned HR technology and process leader Career included stops as a Corporate HR Leader HR Systems Implementation Consulting Author Business Owner Coach IHRIM Volunteer

3. Today’s Topics • Building the M&A Playbook during an HR Transformation • Case Study – All roads lead to Rome • The M&A Playbook • IHRIM Update

4. Building your M&A Playbook An HR Transformation Tale of Two Cities

5. Why have a Playbook? • Due diligence focus – not HR systems • HR systems = first impression to new workers • Different game plan depending upon characteristics of M&A “companies spend more than $2 trillion on acquisitions every year. Yet study after study puts the failure rate of mergers and acquisitions somewhere between 70% and 90%.” HBR, March 2011

6. The Caveat • “I know of no case study in history that describes an organization that has been managed out of a crisis. Every single one was led.” Simon Sinek, Leaders Eat Last

7. “Alpha” Company • Created as a result of a divestiture in Sept 2009 • Medical device manufacturer created as a spin-off from conglomerate. • 120 HR staff • 1500 Contingent Workers • 600 Managers • 15,000 employees in 22 countries • 17,000 positions • Newly formed HR Service Delivery team, partnering with IT, tasked with sourcing, contracting, converting and implementing all HR vendors/systems and services from parent. • People: Employees were transitioned to the new Workday solution during two stages: • US, Canada and International bonus eligible employees – Completed September 2010 • Remainder of international employees converted from legacy ADP Freedom– June 2012 • Process: • Create an in-house HR Service Center with high touch world class customer service – (September 2010) • Design and implement a new HR Service Delivery model (including Service Center, HR Service Delivery organization, HR COE’s, and external vendors) – (US/CAN September 2010) • Evaluate and re-engineer processes to streamline, standardize where possible – (Ongoing)

8. “Beta” Company • Created as a result of a divestiture in Nov 2014 • Medical device manufacturer created as a spin-off from consumer products company. • 120 HR staff • 1500 Contingent Workers • 600 Managers • 12,500 employees in 17 countries • 17,000 positions • Newly formed HR and IT teams tasked with utilizing copy of systems inherited from parent. • Systems: • Inherited Workday HCM, SAP HR and SAP payroll for US • Global payroll processes differ by country • Process: • Utilize an outsourced HR Service Center for US/CA for tier 1 HR and payroll support • Replaced inherited Taleo Recruiting application with Workday Recruiting • Clean-up and optimize existing Workday configuration – (Ongoing) • Develop global payroll strategy to consolidate payroll with one aggregator (CloudPay)

9. M&A Timeline • Months Since Divestiture #1 Migration 1 Alpha #2 Migration 2 #1 Migration 1 Beta #2 Migration 2

10. HRIT Organization Transformation Alpha Beta 2 HRIS in HR 4 HR IT in IT (25% IHRIM members) Outsourced Tier 1 Support • 6 HRIS team based in HR (50% seasoned IHRIM members) • 4 IT Developers in IT • In-house 5 person Tier 1 support

11. HR Non-M&A Activities in Years 1-3 Alpha Beta Implement Workday Recruiting Optimize Workday Change 401(k) and Benefit Administrators Implement CloudPay payroll • Implement Workday HCM • Implement ADP Payroll • Develop integrations to all HR administrators & Finance • Develop home grown LMS • Develop HR portal globally • Implement Taleo Recruiting • Deploy Compensation planning

12. The M&A Playbook Alpha Beta Leverage project plan template Integrate HR systems as part of total IT run initiative Slower • Leverage project plan templates • HR migration stand alone project run by HR • Quicker

13. Audience Participation

14. IHRIM Update A year in review with an eye towards the future

15. Topics of Discussion • IHRIM Story • The Price of Legitimacy • An Outdated Playbook • An Engagement without a Wedding • The Next Chapter • Operations • Membership • Education • Community • Meetings & Events • Marketing • HRIM Foundation

16. A Tribute to Adam West

17. IHRIM Operations • The Jam • Staff Expenses Exceed Revenue • Outdated systems • The Rescue • 75% decrease in staff expenditures • Next Steps • Investigate partnership with incubator • The Heroes • Volunteer Leader: • Shafiq Lokhandwala, Director: slokhandwala@ihrim.org • Staff & Key Volunteers • Gary Morlock CFO: gmorlock@ihrim.org • Laurie Carantit, Director of Operations: lcarantit@ihrim.org

18. IHRIM Member Services • The Jam • Renewal rate declining • The Rescue • Certification increased 10% in 2017 • Record enrollment in current IHRIM certification review course • Membership audit completed • Flat during 2017 • New replacing expirations • Next Steps • Investigate different pricing models • The Heroes • Volunteer Leader: • Catherine Honey, Director: choney@ihrim.org • Staff & Key Volunteers • Megan Tanner, Member Services Administrator: mtanner@ihrim.org

19. IHRIM Education • The Jam • 3 non-conference educational programs in 2015 • The Rescue • Average 2 virtual educational events / month in 2017 • Raising attendance • Raising satisfaction scores • Next Steps • Organize course offerings into tracks • The Heroes • Volunteer Leader: • Joyce Brown, Secretary; jbrown@ihrim.org • Staff & Key Volunteers • Laurie Carantit, Director of Operations: lcarantit@ihrim.org • Lynne Mealy: le.mealy@verizon.net

20. IHRIM Community • The Jam • 5 Affiliates left from over 20 Chapters • The Rescue • Pilot a Community in a Box concept • 38 attendees at introductory happy hour • 50 attendees at first event • 14 new IHRIM members • Next Steps • Seed additional communities • Partner with Affiliates/Communities to host events • The Heroes • Volunteer Leader: • Mary Ann McIlraith, Director; mmcilraith@ihrim.org • Staff & Key Volunteers • Megan Tanner, Member Services Administrator: mtanner@ihrim.org • Affiliate & Community leaders

21. IHRIM Meeting & Events • The Jam • Commitment to Toronto Conference • The Rescue • Renegotiate contract terms • Profitable Toronto conference with volunteers • Next Steps • Change the model • The Heroes • Volunteer Leader: • Stuart Rudner, Director: srudner@ihrim.org • Staff & Key Volunteers • Jan Fretwell: janfretwell@mindspring.com • Dave Binda: davebinda@icloud.com

22. IHRIM Marketing • The Jam • Ad hoc marketing efforts • Poor social media presence • The Rescue • SmartBriefs • Social Media Focus – After 1 month • 1% increase in LinkedIn • .5% increase in Twitter • 4% increase on Facebook • Next Steps • Improve the process & build the brand • Extend marketing to new markets • The Heroes • Volunteer Leader: • Doug Sampson, Director: dsampson@ihrim.org • Staff & Key Volunteers • Larry Hemley, President SJ Hemley, larry@sjhemley.com • Violetta Taborska, Technical Support: vtaborska@ihrim.org

23.  • Tack • Grazie • Takk • Krop Kuhn Kah • Asante Sana • Thank You! MerciObrigada Danke schönKiitos Gracias Dank u Shukriya Tesekkür ederim Terimah Kasih Dziêkujê Arigato Go Raibh Maith Agat