Renewal Worldwide, Renewal Worldwide, Inc.Inc.

A Map to the FutureA Map to the Future

Bridgett Larkin, Sheri Schlicher,Bridgett Larkin, Sheri Schlicher,

Justin Vollmer, Chinwen WangJustin Vollmer, Chinwen WangDecember 4, 2007December 4, 2007

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AgendaAgenda Outline of current challenges facing the Outline of current challenges facing the

organizationorganization Unveiling of Renewal’s new vision Unveiling of Renewal’s new vision Timeline for SuccessTimeline for Success Organizational StructureOrganizational Structure

Identify key roles Identify key roles

Introduction streamlined functionsIntroduction streamlined functions Centralized human resource departmentCentralized human resource department New compensation and benefits structureNew compensation and benefits structure

Communicating the need for changeCommunicating the need for change Change management departmentChange management department

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Current ChallengesCurrent Challenges

Ineffective Vision Ineffective Vision

Scattered competenceScattered competence Redundant and Redundant and

overlapping processesoverlapping processes• IT staffingIT staffing

• ERP SolutionERP Solution

• Business StrategyBusiness Strategy

Lack of a cohesive Lack of a cohesive business modelbusiness model

Existing structureExisting structure Political issuesPolitical issues

Existing pay & benefit Existing pay & benefit plansplans CostlyCostly Lack of internal equity Lack of internal equity

among business unitsamong business units Negative impact on moraleNegative impact on morale

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Renewal’s New VisionRenewal’s New Vision

Existing Vision:Existing Vision: To provide innovative IT solutions to all commercial public To provide innovative IT solutions to all commercial public

sector, and higher education organizationssector, and higher education organizations

New Vision:New Vision: To provide innovative and affordable IT To provide innovative and affordable IT

solutions to all customers through the solutions to all customers through the effective optimization of our diverse and effective optimization of our diverse and unified talent pool; utilizing organizational unified talent pool; utilizing organizational communication and commitment. communication and commitment.

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Time Line – A Map of the FutureTime Line – A Map of the Future

Phase 1: Organizational Structure

2 Months

Phase 3:“My Renewal”

4 Months

Phase 2: Systems Integration

9 Months

1. Initial meeting with C-Suite• Create a new, unifying vision• Generate buy in for new plan2. Meeting with 28 existing

CEO’s• Gain buy in• Identify & address potential

problems

3. Talk to employees• Administer general satisfaction

survey• Communicate new vision &

goals Answer questions & address

concerns4. Meet with 28 CEO’s• Unveil new org chart• Inform them of new

assignment; allow them to begin to assemble their team

5. Contact individual HR departments

• Conduct job analysis• Conduct salary analysis6. Prepare report for C suite to

review. • Compile data from general & salary

surveys and job analysis • Report includes cost cutting

suggestions

7. Investigate and select outsourcing vendors

• Payroll• Benefits – Employee self service8. Systems Testing• Running of parallel systems

9. Unveil new plan to employees• Bring CEO’s into the step to

assist with the Plan• Need to demonstrate how the

newstructure will benefit them

10. Roll out new compensation & benefit plan

11. Review & Audit• Remove parallel systems12. Dissolve Task Force• Integrate members into SBUs13. Continue Integration &

Follow Up• Project completion

Overall integration project to be completed within 18 months

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Internal Consulting TeamInternal Consulting Team

Create a Weston Consultant GroupCreate a Weston Consultant Group Hold Expert Knowledge Hold Expert Knowledge

• Global information management consultingGlobal information management consulting

• Specialization in benefit, pension, payroll, and Specialization in benefit, pension, payroll, and delivering software vendor solutionsdelivering software vendor solutions

Cost effectiveCost effective• Eliminates high cost of external consultantEliminates high cost of external consultant

• Weston group is already familiar with Renewal’s culture Weston group is already familiar with Renewal’s culture and processesand processes

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Gap Analysis – Relationships of Gap Analysis – Relationships of RenewalRenewal

Observations, Recommendations and Deliverables

CurrentStatus

Personnel Processes DataInput/Output

Skills &Competencies Culture

GapAnalysis

Personnel Processes DataInput/Output

Skills &Competencies Culture

Identification of Pain Areas

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Gap Analysis – Recognizing Gap Analysis – Recognizing ImpactsImpacts

Develop “As Is” BaselineDevelop “As Is” Baseline Process Mapping and FlowchartsProcess Mapping and Flowcharts

Define desired end stateDefine desired end state

Identify OpportunitiesIdentify Opportunities Eliminate redundancies within SBUsEliminate redundancies within SBUs Streamline processes through consolidationStreamline processes through consolidation

Identify RisksIdentify Risks Data discrepanciesData discrepancies Missing competenciesMissing competencies Future compatibilityFuture compatibility

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Gap Analysis – Ensuring the Gap is Gap Analysis – Ensuring the Gap is ClosedClosed

Performance Improvements must be measuredPerformance Improvements must be measured

Training is developed and standardizedTraining is developed and standardized

Resistance will be addressedResistance will be addressed

Needs to be conveyed and engrained in cultureNeeds to be conveyed and engrained in culture

Champions identified from top and bottomChampions identified from top and bottom

Information shared and feedback encouragedInformation shared and feedback encouraged

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The Future of Renewal – Organization The Future of Renewal – Organization ChartChart

Scott Blanchard Chairman & CEO

CIO

EVP Business

Development

Chief LegalCFOJason WestonCOO

EVP HR

EVP Change Manageme

nt

Board of DirectorsAnd/or

Planning Committee

ChangeInitiatives

IntegrationTask Force

IT Staffing and Recruiting

EnterpriseSolutions

Business Strategies

New SBU’s

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Incentive ProgramsIncentive Programs

Profit Sharing PlansProfit Sharing Plans Distribute a fixed percentage of total organizational Distribute a fixed percentage of total organizational

profits to employees.profits to employees.

Suggestion SystemsSuggestion Systems Formal method of obtaining employees’ ideas about Formal method of obtaining employees’ ideas about

improvementsimprovements

Reward based on the successful use of an ideaReward based on the successful use of an idea

Benefit Program

Cafeteria Plan (Section 125)Cafeteria Plan (Section 125) Increase employee choicesIncrease employee choices

Cost will be offset by payroll savingsCost will be offset by payroll savings

Ability to shift cost to employeeAbility to shift cost to employee

Tax benefitsTax benefits

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Hybrid Payroll SolutionsHybrid Payroll Solutions

Stand-alone Payroll PackageStand-alone Payroll Package Select and use desired applicationsSelect and use desired applications Flexible systems Flexible systems User friendly intuitive interfaceUser friendly intuitive interface

UltiPro HRMS Payroll SolutionUltiPro HRMS Payroll Solution Applicable for companies with 10,000+ employeesApplicable for companies with 10,000+ employees Manager and employee self-serviceManager and employee self-service Web based benefits open enrollmentWeb based benefits open enrollment Many optional modules available to meet specific Many optional modules available to meet specific

needsneeds

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Successful Change ManagementSuccessful Change Management

Employee’s participation in decision making Employee’s participation in decision making Effective communication among all levelsEffective communication among all levels Full support and authority of change departmentFull support and authority of change department Alignment of leadership stylesAlignment of leadership styles Suggestion incentive system – Promotes employee Suggestion incentive system – Promotes employee

buy inbuy in Establishment of effective training programsEstablishment of effective training programs Commitment at all levels of the organizationCommitment at all levels of the organization

Acknowledgement of former cultureAcknowledgement of former culture

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Change ManagementChange Management

Solicit employee participation through Solicit employee participation through committeescommittees

Internal surveys Internal surveys General satisfactionGeneral satisfaction Job analysisJob analysis Salary surveysSalary surveys

Creation of a permanent Change Management Creation of a permanent Change Management DepartmentDepartment Allow for smooth transition of future acquisitionsAllow for smooth transition of future acquisitions

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CommunicationCommunication

Focus differs according to levelFocus differs according to level Top management :compensation strategiesTop management :compensation strategies Mid-management : how to link performance Mid-management : how to link performance

evaluation and compensation sysevaluation and compensation sys General Employees: compensation policy, Detail, General Employees: compensation policy, Detail,

ProcedureProcedure

Intranet system – Offers a centralized location for Intranet system – Offers a centralized location for organization communicationorganization communication

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MyRenewal – The Community MyRenewal – The Community PortalPortal

Conveys brand identity and messageConveys brand identity and message

Promotes cultural cohesionPromotes cultural cohesion Use across all business unitsUse across all business units

Centralizes necessary tools and resourcesCentralizes necessary tools and resources Project managementProject management Knowledge management Knowledge management

Relevant newsRelevant news AcquisitionsAcquisitions

FeedbackFeedback Survey repositorySurvey repository

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MyRenewal – MyRenewal – The Community PortalThe Community Portal• Communication for stakeholders:Employee Center

• Benefits • Workflow• Training & Development• Organization Bulletins

Client Center• Case Issue Resolution• eRooms• Vendor Links

Investor

Center

ClientCenter

Employee Center

MyRenewal

Investor Center• Financial Reports• Market Analysis

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Hybrid Performance Appraisal Hybrid Performance Appraisal SystemSystem

Components:Components: MBO-Management by objectivesMBO-Management by objectives

360 Degree evaluation360 Degree evaluation

BSC-Balance Score CardBSC-Balance Score Card

Broad Band Salary DesignBroad Band Salary Design

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Performance ManagementPerformance Management

Set clear business and department goals with Set clear business and department goals with employees and mid-level managers on an annual employees and mid-level managers on an annual basisbasis

Evaluations based on team performanceEvaluations based on team performance

Evaluations from multiple sourcesEvaluations from multiple sources Multi-manager (fair for cross-function projects)Multi-manager (fair for cross-function projects) Employees of other departments (encourages cooperation Employees of other departments (encourages cooperation

and integration )and integration ) Team membersTeam members

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Performance Management Performance Management ContinuedContinued

Reduce but broaden salary level—Pay by Reduce but broaden salary level—Pay by competency not positioncompetency not position Retain highly professional workersRetain highly professional workers Maintains organizational structureMaintains organizational structure Reduce resistance of position cuttingReduce resistance of position cutting

Frequency Frequency After every project, 6 Month, 1 YearAfter every project, 6 Month, 1 Year

Long-term: Lead in BSC for each sectorLong-term: Lead in BSC for each sector Look after both short term profits goal and core competitiveness Look after both short term profits goal and core competitiveness

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On Boarding EmployeesOn Boarding Employees

Ensure understanding across the boardEnsure understanding across the board

Prepare and Offer TrainingPrepare and Offer Training Training modules with e-system (UPK)Training modules with e-system (UPK) Create incentives for training attendanceCreate incentives for training attendance

Continually Communicate Change!Continually Communicate Change!

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