PAN CONSULTING GROUPyou’ll never believe what we’re cooking up for you.™

organizational assessment

proposal for Blue Ribbon, Inc.

AUGUST23, 2015

HOW TODAY WILL PAN OUT Quick introductions

Our understanding of Blue Ribbon’s goals and potential challenges

Our recommended assessment approach Gaining a more complete picture of today: strengths, weaknesses,

opportunities Building a map to where you want to go Project details for our assessment proposal

Recommendations for implementing the change successfully

PAMDEHOLLANDER

AMBER NICKDUGGANCONLEY

THE PANTHEONWHO WE ARE

A PANORAMIC VIEW

Project Outcomes

Assessment Culture, org design

& HR systems

ResearchComparison with

best practices

Recommendations Managing transition &

transformational change

Timely DeliveryAssessment phase

completed by mid-March

Organizational Objectives

Geographic to customer-oriented

Competitive to collaborative

Improve top leadership talent

Drive change through improved

HR systems

Adopt best practices

for managing change

Current Situation

Strong historical success, with extensive global presence and broad market capitalizationSales declining over last 3 years, losing key global customers (Nike, Coke)New CEO and new strategy for returning to growth by moving focus from offline to online marketing

In order to deliver actionable data for sustainable results, our exPANded view approach takes a holistic view of all organizational components.

This complete view helps you understanding where you are today, where you need to be, and how you can get there.

NOT JUST A FLASH IN THE PANOUR COMPREHENSIVE APPROACH

exPANded view model

exPANded view:ORGANIZATIONAL DESIGNSituation: Currently organized by geo, would like to organize by customer instead

Objectives: 1) Assess the decision to move to customer structure,; provide alternatives if needed2) Provide advice on how to manage transition to new org structure

Assessment: Determine how well customer-oriented structure aligns with new strategy vs. alternative models Conduct assessment of current state to identify gaps between the present and future org design Review latest research on best practices for successful org structure transitions and

transformational changeBest practices:

Capital Bank Corp (CBC): using current state assessment to define org design criteria Marriott: achieving customer service excellence through organizing by market segment

Key work tasks & participants: Half-day offsite to ensure alignment of strategy with proposed org structure (executive team) Focus groups, surveys, and interviews (diverse stakeholders across locations, functions & levels) Two-hour session to review assessment results and best practices and identify gaps (leadership

team)Key deliverables:

Analysis of suitability of proposed org structure Comprehensive report on results of current state assessment Description of gaps between current and future state Recommendations for managing transition to new structure, based on best practice research

exPANded view:ORG CAPABILITIES & ROLESSituation: New organizational capabilities and roles are required to successfully execute on new strategy

Objectives: 1) Determine the organizational capabilities critical to succeeding with new strategy2) Understand what is needed from the most critical organizational roles in the new

structure

Assessment: Define the skills, technologies and human abilities the new strategy will require for competitive

advantage identify the outcomes, responsibilities and interactions needed for critical roles within new

structureBest practices:

Barnes & Noble: organizational roles that support multiple competing business models (offline / online)

Private Client Bank (PCB): using responsibility chart to clarify organizational roles with complex interactions

Key work tasks: Meeting with executive team to identify organizational capabilities (skills, technology, human

abilities) Offsite with leadership team to gather input on organizational roles (outcomes, responsibilities,

interactions)Key deliverables:

Description of top organizational capabilities required Definition and analysis of critical roles required Recommendations for assessing existing talent and developing new competencies

Situation: New culture requires significant change and collaboration across the company

Objectives: 1) Explore culture to identify gaps between current and future culture 2) Discover ways to collaborate and strengthen joint efforts

Assessment: Identify current culture Determine participation level

Best practices: UNOPS: Moving from geo to customer centric

Key work tasks: Mitigate challenges/barriers for new strategy Research organizational capabilities/strengths

Key deliverables: Models for:

Current and possible future culture Company strengths/qualities New cultural opportunities

Recommendations: Gain support for new strategy & change Recommendations: Exploit organizational capabilities/strengths to reveal niche

exPANded view:CULTURE & VALUES

exPANded view:HR SYSTEMS & PRACTICESSituation: Acquisitions based growth and global centric operations has HR in a state of disarray

Objectives: 1) Standardize HR practices throughout company2) Centralize HR systems around new strategy

Assessment: Review current HR systems & programs

Best practices: AgroLife: HR function strategy

Key work tasks: Collect and analyze current strengths and future opportunities of HR systems Gather feedback on current feedback program Identify ways mitigate challenges for re-staffing in new strategy

Key deliverables: Analysis of current HR systems and programs

Highlighting strengths and future opportunities Recommendation: Leverage model and assessment to attract, engage, reward, and retaining key

employees

Situation: Concerned top leaders across the organization may not have the “horsepower” to lead this change Objectives: 1) Identify top capabilities needed for new organization

2) Assess top talent and identify gapsAssessment:

Strategy: what’s needed to execute on the strategy of the business Organizational: does the org support the leadership development Individual: identify who are the top candidates

Best practices: Hartford Financial Services Group: moving from stability to change PepsiCo: defining successful career paths; cross-business unit opportunities

Key work tasks: Interviews, research to identify top leadership challenges Focus groups to uncover organizational readiness Review HR processes to assess and inventory current skills, knowledge and abilities

Key deliverables: Current state summary Gap assessment to future state Recommendations for design, delivery and evaluation of a leadership program

exPANded view:LEADERSHIP

PANNING FOR GOLDRECOMMENDED ASSESSMENT METHODS

Best Practice Research

ExecutiveInterviews

Stakeholder Interviews

Focus Groups

EmployeeSurvey

Leadership Self-Audit

Leadership Task Force Offsite

Org structure options

Managing transition to new org structure

Building a collaborative culture

Leadership assessment & development

Defining organizational capabilities & job roles

Leverage centralized / standardized HR systems to drive change

Ensure alignment of strategy with proposed org structure

Identify organizational capabilities (skills, technology, human abilities)

Identify critical leadership roles & capabilities

Current state assessment of org design

HR processes, practices & systems

Culture - what's good / not good

Leadership - top challenges, organizational readiness(?)

Current state assessment of org design

HR processes, practices & systems

Culture - what's good / not good

Leadership - top challenges, organizational readiness(?)

Current state assessment of org design

HR processes, practices & systems

Culture - what's good / not good

Leadership - top challenges, organizational readiness(?)

Inventory current skills, knowledge and abilities

Identify areas for development

Identify gaps between current & new strategy, assess current culture, identity central values/qualities, determine Value Proposition

Review org design assessment results and best practices and identify gaps

Review proposed structure; input on organizational roles (outcomes, responsibilities, interactions)

PAN team Whole executive team

Key employees & customers

Diverse sample of employees & customers

All employees Top 300 leaders 25-30 high-potentials from among 300 leaders

PANNING AHEADPROPOSED ACTIVITIES & TIMELINE

Cost range for assessment project depending on final agreed scope: $100-150K

We would be happy to support projects beyond assessment phase, including development

and implementation of the Organizational Change Strategy & Plan, and can provide a proposal for additional work upon request.

OUT OF THE PAN, INTO THE FIREBEYOND THE ASSESSMENT PHASE

Organization Design Hold offsite to finalize details of org design and generate leadership buy-in

Establish governance process to prepare for change while still running the business

Org Capabilities & Roles

Define organizational roles, including outcomes, responsibilities & interfaces

Assess current talent and engage in structured process to restaff the organization

Culture & Values Socialize proposals for new mission, vision & values to get feedback from stakeholders

Finalize mission, vision & values and recruit cross-functional team to chamipon and roll out

HR Systems Develop metrics, values and behaviors that will drive the new strategy

Align compensation, rewards & recognition, performance management and learning systems

Leadership Identify and define key leadership roles within the new org structure

Institute leadership development program to ensure “horsepower” to deliver on strategy

OPEN DISCUSSIONAt PAN Consulting Group our focus is on building successful, collaborative organizational design with our customers

Concerns? Thoughts? Questions? Feedback?

Appendix PAN Consulting Group

WHAT WE UNDERSTAND SO FAR Where you ARE today… A top large, global marketing advertising firm that has been losing market share since early 2000s to key competitors due to the disruptive technology shift to digital media

Current org structured around geographies

Growth has been driven primarily through acquisition; these have not been fully integrated

Where you WANT to be… Regain dominance in this space need to shift focus to digital and become leader in on-line and mobile marketing solutions

Refocus organization to align to customers

Strong leadership across the company to support the new direction and drive change

Restructure organization to unite all previous acquisitions

Notes: I moved all of the points

we had for notes to the speaker

notes in the charts; this way

we don’t regurgitate it on the slide but we

can certainly speak to

specifics when we deliver the presentation

WHAT WE UNDERSTAND SO FAR What you KNOW today… Digital technologies have been a significant disruptor in your market

Adapting to these new market conditions will take organizational change with strong leadership support not just new technical marketing skills

Timing is critical, must deliver plan to CEO and board by March 2013

Where you asked for our HELP to LEARN more…

First must gain a full assessment and understanding of where you really areMust have qualitative and quantitative analysis to build full plan from

Comparative analysis to best practices and competition

Second order to have recommendations on full implementation plan

Notes: I moved all of the points

we had for notes to the speaker

notes in the charts; this way

we don’t regurgitate it on the slide but we

can certainly speak to

specifics when we deliver the presentation

FRAMEWORK OF OUR ASSESSMENT Notes: need to

flush these out and also be sure they are “layman

terms”;

Given we have one hour – I

would keep this as summary

chart then have one slide each to go “deeper” on

the column areas

NOTES – WORKING DRAFT

You take frantic notes as she in quickly gives you the download on the key business challenges and asks for a proposal to assess Blue Ribbon’s current culture, organizational design, HR systems, and the challenges it will face as it transitions it’s new business model. Further, Patti is looking for you and your team to develop recommendations on how Blue Ribbon can mitigate these challenges.

Next chart has all of the notes

Blue Ribbon Corporation is a marketing and advertising company with over $6 billion in sales annually. With offices in 26 countries, divided into five key regions (Americas, Asia-Pac, Europe, India, and China) and over 17,000 employees,

While they were one of the leading marketing and advertising companies in the 2000’s, they were very slow to understand the importance of digital media/advertising, etc. As a result, they have had declining sales over the last 3 years and are losing key global customers like Coke and Nike.

To regain their leadership role, they are planning a massive shift in focus from mostly doing off-line marketing and advertising (Print, TV, Radio, Billboards, etc.) to becoming a leader in on-line (display ads, interactive campaigns, etc.) and mobile advertising. There is significant risk that they will not make this transition successfully and why this change has to be managed properly.

Blue Ribbon recognizes that their culture, organization design, and people are the key to making this transition successful and with their sales declining in their off-line business, it is imperative that they have the right culture, organizational systems, and talent to make this shift and quickly .

Blue Ribbon’s culture is best described as bureaucratic, political, and highly competitive. While they have a mission, vision, and cultural values the CEO and his leadership team feel it is uninspiring and not aligned with where the company must go. One example, the company is very decentralized and has let many of their business run on their own with little oversight from corporate headquarters. While this worked in the past, it has led to a culture where functions, business units, and countries have competed for resources or even to win customers. The new culture will require significant collaboration across business units, etc and that all leaders, teams, and functions put the company ahead of their own agenda.

Currently, they are organized by Geography’s with each country having their own team selling all products to customers in the local markets. Going forward they want to move to a Customer focused structure where they are organized by the type of customer they are serving . They need help in assessing this decision and advise on how to manage the transition.

They are worried that they do not have the “horsepower” to lead this shift to on-line and mobile advertising. She is particularly worried about the top 300 leaders in the organization and if they have the key capabilities and competencies for such a drastic change. She is also concerned about how they can assess where these leaders are and how Blue Ribbon can accelerate their development.

Beyond top leadership, Patti recognizes that they need to re-calibrate and get clear on which organizational capabilities are critical and how that translates into the critical job roles they should be focused on attracting, engaging, rewarding, and retaining.

As the company grew through acquisitions, not organically, they have put little emphasis in centralizing or standardizing their Human Resources practices, except for payroll and benefits, which they have outsourced. Now that they are centralizing these functions, there is significant opportunity to drive change via HR processes.

The CEO and the Board of Directors has told Patti that she is responsible for supporting this significant business transition and must deliver a comprehensive Organizational Change Strategy & Plan by end of March 2013.

In terms of the CEO, she was brought in from a competitor that specializes in the digital side of advertising and analytics. She has no experience in Blue Ribbon’s core non-digital advertising business and some internal people feel it was a mistake to bring her in. She has replaced/upgraded two of her current executive team and instituted monthly Executive Committee meetings to be better manage the company and the transformation’s progress. Lastly, she has laid out a bold transformation for the company is willing to do what it takes to reverse the declining sales trend of the last three years.

While she may want our help developing/implementing the Org Change Strategy & Plan, our first order of business is to develop a comprehensive assessment approach for Blue Ribbon’s culture, organization design, and HR systems. The assessment needs to provide a qualitative and quantitative view of current practices, their strengths, and opportunities. She is also very interested in how they compare to existing best practices/research and seemed to hint that this should be the foundation for making recommendations to improve what they are currently doing.

OUTLINE FOR OUR PROPOSAL – WORKING DRAFT o Our understanding of the current situation at Blue Ribbon

o Key business challenges/issues

o Project objectives & scope

o Our approach to assessing their current culture, organization design, and HR systems (e.g. what tools, methodologies or concepts will you use to assess Blue Ribbon)

o Key work tasks for our approach

o Key project deliverables and outputs

o Project timeline

o Project fee’s

o Project structure (who is required on Blue Ribbon’s side and who will be on our team)

o Bio’s on each of our team members

PAM TOP IDEASMy initial thoughts

1. If culture is truly trying to be changed (why is Patti solely responsible for this change? ESPECIALLY with this timeframe.

2. The time frame is ridiculous! If the company is dedicated to turning itself around, they need to put in the time.

3. How dedicated is Patti? Are we going to be able to leverage her as we go forward and try and help? (it almost sounds like they want us to “silver spoon” them a new company…?)

4. How are we going to define or be defined by success?

My understanding of the current situation at Blue Ribbon 5. Key business challenges/issues (from a consultant POV)

a. True change in culture (wanting to go from individual focus to team (or product))

b. New mission, vision, and strategy

i. BUT….(Do they really need to change????= “leader in on-line”) or should they maybe stay as a niche for off-line???

c. STRONG focus on: Success indicators,value proposition, organizational capabilities, current state assessment & ensure there is LOTS of participation from the multiple people in multiple companies to ensure “buy-in” and success

Project objectives & scope 6. Develop a comprehensive assessment approach for BR culture, organizational design and HR systems

7. Provided in a qualitative and quantitative view of current practices, strengths and opportunities

8. * (if time allows/ foundation for recommendations on how to improve): How these compare to existing best practices/research

Our approach to assessing their current culture, organization design, and HR systems (e.g. what tools, methodologies or concepts will you use to assess Blue Ribbon)9. Focus on design criteria (compare other companies in the online marketing AND offline marking) = Galbraith’s success indicators, value prop,= our recommendation pf design10. ….(thinking…..)

Key work tasks for our approach Need more...

Key project deliverables and outputs1. A qualitative and quantitative assessment of BR’s current practices, strengths, opportunities and how these compare to existing best practices/research

a. External Review of BR company as is, their current competitors and customers (both current and potential).

b. External Review of BR company's future outlook (online marking). Top 3 current companies, their customers, and our possible niche

c. Internal Review of strengths, weaknesses, culture and structure

d. Internal Review of what’s going good, what’s going bad and what could be different...

2. An assessment of BR’s culture, organizational design and HR systems

a. Internal Review of culture, organization and HR

i. Interviews

ii. Focus groups

iii. Observations

b. External Review of top three Online marketing companies Culture, Organizational design and HR

3. Recommendations going forward

PAM TOP IDEASCont.

Project timeline 1. Above deliverables ONLY= 60 days (NO Quant/Qual)/ 90 days (complete Quant/Qual assessment)

2. Additional help in developing & implementing Org. Change Strategy and Plan= 9-12 months

Project fee’s 3. Above deliverables ONLY=

a. 60 days (40 hrs per week* 3 people * 2 months)=1000 man hours @ $125ph.pp) (NO Quant/Qual)= $125,000

b. 90 days (complete Quant/Qual assessment) (2000 man hours @ $125ph.pp)=250,000

4. Additional help in developing & implementing Org. Change Strategy and Plan= 9-12 months (=retainer and possible internal help)= flat fee of $1M

Project structure (who is required on Blue Ribbon’s side and who will be on our team) 5. Above deliverables ONLY

a. Patti and another high ranking HR team member

b. Access to all department heads

c. 1 Representative from each country and each region and at least 1 rep. from each additional level of the company

6. Additional help in developing & implementing Org. Change Strategy and Plan

a. Board of Directors

b. All of the above

Bio’s on each of our team membersPamela (Pam) DeHollander: Pamela has been with “PAN” consulting group for 9 years. Her background is mostly in teams; with her specialty being in global team development/relations and training. (this is what I am doing my paper on, that’s why I choose it :)

AMBER TOP IDEASLeveraging a lot of Galbraith: perhaps our recommended ‘steps’ mirrors his outline from strategy definition to Implementaiton

First need to fully understand Corporate Strategy: Can regurgitate what we have heard but also this should be our key first step. Then we propose our approach - outline the workshops; goal and deliverable of each step

First step (parallel efforts here) get the strategy right: Implement Current State assessment (30%? workforce involved; multiple methods surveys/focus groups) p.39

Galbraith example Executive Leadership team in brief offsite Strategy workshop - get clarity p.31 Galbraith example)

Second extended leadership offsite - design the organization: Executive offsite activity: p.50-2 exercises Share assessment findings; align this to strategy perhaps leverage tool on p 56 to id gaps/changes needed design structure: claim customer focus - will this structure fit or do they need front-back hybrid org roles - this will be key to spend time on

To be continued as we learn more of the model….ALSO see the powerpoint example in our folder this week - we could build out this type of planning visual for our presentation

NICK TOP IDEASBACKGROUND

● Blue Ribbon Corporation is a marketing and advertising company with over $6 billion in sales annually. With offices in 26 countries, divided into five key regions (Americas, Asia-Pac, Europe, India, and China) and over 17,000 employees,

● To regain their leadership role, they are planning a massive shift in focus from mostly doing off-line marketing and advertising (Print, TV, Radio, Billboards, etc.) to becoming a leader in on-line (display ads, interactive campaigns, etc.) and mobile advertising. There is significant risk that they will not make this transition successfully and why this change has to be managed properly.

REQUESTAssess Blue Ribbon’s current culture, organizational design, HR systems, and the challenges it will face as it transitions it’s new business model

RECOMMENDATIONS

● Assessment -> base recommendations on results

o qualitative and quantitative view

o current practices, strengths, and opportunities.

o existing best practices/research

● Redo mission/vision/values

● Reorganization

o Customer focus? assess if right move

o Lateral processes to drive cross-functional collaboration

● Leadership capability assessment & action planning

● Capabilities -> job roles

● HR systems & practices

Framework for Proposal Components

Mission / Vision / Values -> Culture

Organization Design

Leadership Org Capabilities & Job Roles

HR Systems & Practices

Assessment of current practices, strengths & opportunities

Survey & focus groups

Galbraith instruments, Chapter 2

Needs assessment (Cummings & Worley, p. 466)

Galbraith (p. 124-128) - Chapter 3

Galbraith Chapters 5 and 6

Best practices & existing research

List examples List examples List examples List examples List examples

Likely challenges business will face

TBD TBD TBD TBD TBD

Recommendations for mitigating challenges

Large-group intervention to redefine mission/vision/values (AI based?)

Facilitate definition of design framework with CEO & executive team

Management & leadership development (Cummings & Worley, p. 467)

Steering Committee & Work Groups (Galbraith p. 117)

PROJECT PRICING AND COMMITMENTS FEES

Flat-rate for assessment = $ 75,000up to 6 weeks (to include facilitation for off-site)

Hourly Rate for implementation for any/all recommendation or additional help

3 full-time experienced employees @ $83 per hour

Signature:……