Employee EngagementDuring Transformation

”Living The Dream”

Scott IrgangDirector of Labor Relations & Employee EngagementPitney Bowes

May 10, 2017

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It is not necessary to change. Survival is not mandatory.

~ W. Edwards Deming

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Pitney Bowes Through Time…

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Our Chronology

• 1920: US Government approves metered mail machines and Pitney Bowes (“PB”) is born

• 1922: PB sells 400 meters

• 1938: CEO Walter Wheeler boycotts a hotel that would not let African-American salespersons stay there

• 1970’s - 80’s: PB sells copy machines, fax machines and buys Dictaphone

• 2015: New strategy, logo, brand

• 2017...?

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Transformation

Why Transformation?

• 97-year-old Company

• Monolithic market presence + Presort

• 5 CRM (Customer Relationship Management) systems

• Client data base exercise

• International presence vs. global company

• 37 different ledger systems

• Stamps.com*

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The Plan…

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The Goal

• Stabilize mail & retain profitable analog

• Operational Efficiency

• Analog Digital:

➢ Location Intelligence

➢ E-Commerce

➢ Software

➢ Commerce Cloud

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How Do You Get There?

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The Execution

•Sales

•Acquisitions

•Talent Analysis

•Retention and Attraction

•Our Employees on The Journey

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“Transformational Engagement”

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“Employee Engagement matters…and it matters even more to succeed attransformation.”

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The Path (Ernest Shackleton: Antarctica)

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Transformational Employee Engagement

•Understand the Journey

•Role/Contribution

• Enjoy the Team

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Actions Taken

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Value, Strategy and Culture Guide Everything We Do

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ValuesCore Principles that

Guide Decisions It’s Why we

Endure

StrategyDirection that Guides our

Business Plans It’s How we

Unlock Value

CultureMindsets and Behaviors

Necessary toDeliver the Strategy

It’s How we Make it Happen

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VALUE: Why We Endure

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STRATEGY: Bridge to Our Second Century

Reinventmailing

Drive operational excellence

Grow our digital commerce business

TodayDec 2012 202026

Un

lock

Val

ue

CULTURE: How We Make it Happen

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Non-Monetary Strategy

• GRAT

• Developmental and Experiential EVP

• Internal Branding

• Culture Infusion

• Flexible Work

• Demonstrable Prioritization of Engagement

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The Survey

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Our Approach

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•Full Scale Approach (75 Q’s + Verbatims) + Pulses

•5 Aligned Metrics

•17 Categories•Kiosks+

•18 Languages

•NPS

•Corp Accountability

•Roll-Up•Country Norm vs.

Enterprise

•Manager Effectiveness•YOY vs Hi-Po

Action Taken ResultFeedback Action Taken

Social Responsibility More Publicized Activities

Performance Management Required Plans and Experiences

L&D Opportunities Awareness, Offerings & Monitoring

Recognition Use of GRAT and Supv. Meetings

Informed about IMPACT Comms. and Manager Support

Benefits Healthy Rewards, Financial Planning

Result

Response to Survey

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+5 % Points

+3

+3

+3

+3

+3

2016 Survey Results

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CategoryThreshold(SuggestedRating of 4)

Target(SuggestedRating of 3)

Exceeds(Suggested Rating of 2)

Far Exceeds(SuggestedRating of 1)

Sustainable Engagement

82% Favorable

83 84 85

Client Focus 76 79 81 85

Teamwork 76 79 81 83

Innovation 70 71 72 73

Manager Effectiveness 73 79 84 91

Engagement Metric

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66%

79%

89% 90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015

90%

2016

Global Participation Trend

2016: 18 languages; 12,000+ responses; 17,000 unique verbatims 35

76%80% 83%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015

Sustainable Engagement Index Trend

83%

2016

Total % Favorable Scores

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71%

74%

78%

66%

68%

70%

72%

74%

76%

78%

80%

2013 2014 2015

Client Focus Index Trend

77%

2016

Total % Favorable Scores

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67%

73%

76%

62%

64%

66%

68%

70%

72%

74%

76%

78%

2013 2014 2015

Teamwork Index Trend

76%

2016

Total % Favorable Scores

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75%

80%

83%

70%

72%

74%

76%

78%

80%

82%

84%

2013 2014 2015

Total % Favorable Scores

Manager Effectiveness Index Trend

83%

2016

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PB vs. Transitional and Global HiPo

Total Favorable Score

Transitional

Companies

Norm

2016 Metric: Sustainable Engagement 83 6*

2016 Metric: Client Focus 77 6*

2016 Metric: Teamwork 76 1

2016 Metric: Innovation 74 11*

2016 Metric: Manager Effectiveness 83 13*

Leadership & Future/Vision 70 6*

Brand Recognition 85 n/a

Communication 78 14*

Impact 68 n/a

Ethics 86 5*

Diversity & Inclusion 86 13*

Empowerment 82 11*

Growth & Development 77 19*

Performance Management 69 10*

Total Rewards 59 11*

Client Promoter 26 n/a

Employee Promoter 35 n/a

Global High

Performing

Norm

-3*

-7*

-7*

2*

5*

-11*

n/a

2*

n/a

-1*

0

1*

-1

-7*

-2*

n/a

n/a

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How to SustainEngagement Levels

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•EMPOWERMENT

The 2016 Drivers of Engagement

•LEADERSHIP & FUTURE VISION

•TEAMWORK

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Reason% Selected

for Attraction

% Selected

for Retention

The people 36 (+2*) 54 (+3*)

Opportunities to learn new skills 49 (0) 40 (0)

Challenging work 43 (0) 40 (+1)

Flexible work arrangements 34 (+2*) 43 (+3*)

Opportunities to advance my career 43 (-1) 29 (+1)

Attraction and Retention

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Who Can Help The Most:

• The person from whom most employees get the info necessary to do their job =

• The person that most connects our employees to Pitney Bowes =

• The person that employees identified as most influencing their individual Engagement levels =

THE MANAGER

THE MANAGER

THE MANAGER

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Transformation Kudos

Winner: Best Business

Transformation award“It's amazing to see, PB, this iconic American enterprise,

transforming itself into a digital, 21st

century company.”

Marc Benioff, Chairman and CEOSalesforce

“… In order to evolve your business like Pitney Bowes has, you have to take advantage of your greatest asset: data. …”

6 Companies That Give Real Meaning to "Digital

Transformation"Published January 2017

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Engagement During Transformation

•Understand the perception•Transparent journey & two-way•Share “baby step” successes•Align behaviors and talent •Manager as channel + leader role modeling• Internal vs. external branding•Exhale, count to 5 and…

•HAVE FUN46

Thank You

Scott IrgangPitney Bowes

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