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NASSCOM India Leadership Forum 2014

Creating Sustainable Change through Organizational Alignment and Managing an Increasingly Diverse Workforce February 18, 2013To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.

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Business Events have Huge Change Management Implications

TransactionsPost Merger Alignment Combines two legacy organizations to realize synergies Change in Ownership Alters ownership, priorities of operations and deliverables Restructuring

Transformation & ExpansionOutsourcing Transitions services and transactions to external providers Technology Cost Optimization Implementation

Innovation & GrowthFocuses on generating new ideas and products

Global ExpansionSources new markets or talent for topline growth or for cost arbitrage

Realign units for better performance &quality

Reduces costs and associated resources

Realigns application portfolios, automates transactions

Commitment: Do we have leadership commitment and stakeholder support? Capability: Do we have the resources and capabilities to achieve this? Communication : How, what and when should we communicate? Consequence: Are we measuring and rewarding desired behavior? Culture/ Org.: What cultural nuances should we take into account?

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Change Challenges Clients Typically Face during TransformationChange challenges/risks companies typically experience Define success as “get the technology up”, instead of defining success as “end-users adopted desired behaviors”

Recommended best practices Ensure project team and sponsors define success as behavior change Clearly define desired behaviors (e.g. “stop/start/continue” doing) Define and track metrics indicating adoption of desired behavior Develop “consequence management” plan to encourage desired behaviors and discourage unwanted behaviors Conduct a stakeholder analysis to understand which and how employees are impacted, their concerns, how to best address those concerns Develop “what’s in it for me” messages tailored to managers and other key stakeholder groups Conduct workshop to support “personal transitions” Develop tailored and timely 2-way communications Develop strategy for involving sponsors and leaders in leading the change and holding them accountable for the results Provide sponsors and leaders with on-boarding and skill-building sessions Hold regular check-ins with sponsors and leaders Outline the role and required skills of Change Team members and select and fully staff based on the role profile(s) Provide Change Team with on-boarding and skill-building sessions Hold regular reviews of change management lessons learned

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Stakeholders, especially managers, are resistant to the change (e.g. using workarounds or continue to use old system), or have emotional reactions to the change

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nsufficient engagement from sponsors and leaders

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Insufficient Change Management capability and/or resources on client team

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The Human Dynamic in ChangeCommitment Early euphoria “It is the right thing to do” “ We will succeed” Adaptation Fear/uncertainty “Train is leaving, I better get on” “It’s hard, but we can do it” Paralysis “I can’t act with all this uncertainty” “My highest priority is to stay on top of the integration news” Withdrawal “I’ll do what is necessary to survive”

Organization Momentum

“Change is exciting” “Our company is taking a bold step”

“What does this mean for me?” “What are my priorities now?”

Departure “This is not something I want to be part of”

Time5

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Engaging Employees Across Diverse GeographiesNational Culture Organizational Culture

Practices

Values

Family

School7

Work

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Engaging Employees in Transition

Sell the “What’s in it for me?” — Motivate employees with the right messages — Give employees a reason to care

Brand the culture — Re-define expectations and commitments — Educate and promote the value to employees

Sustain employee behavior change

Align programs, communications, and delivery — Create a consistent experience — Reward/reinforce the right behaviors8

— Keep the brand alive— Actively measure and manage

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Definition of EngagementEngagement is a state of emotional and intellectual engagement

Engagement Commitment SatisfactionHow much I like things here. How much I want to be here. How much I want to and actually do improve our business results.

Three key behaviors that indicate strong engagement

Say!, Stay!, Strive!9