Change Management Techniques to Drive Change

1. Change Management Techniques to Drive Change Presenter Marcela McCarthy, CPP Date October 2016

2. Panelists/Speakers • Marcela McCarthy, CPPDirector Payroll ServicesMcKesson Corporation

3. Agenda • Change Management – What is it? • Identifying who it impacts • Plan -“If you fail to plan you are planning to fail” -Benjamin Franklin • Implement change

4. What is Change Management? • What success looks like… • The business is ready • Users have adopted the change and are satisfied • Executives are aligned • Risks were mitigated • The organization is productive and efficient • The Business Case was realized • The discipline of managing the peopleside of change Helping groups improve or expand what they do Helping people do their jobs more effectively

5. Change Leadership Approach Who are the sponsors, executives, and impacted users for this project? How will we engage them? How will we capture issues or troubles raised after go-live? How will we communicate to all managers to share solutions? Stakeholder Engagement How, when and what will we communicate to the stakeholders? How will we measure the effectiveness of the communications? Communications On-going Sustainment Change Leadership Business Change Impacts Training & Readiness How will we identify the Process and procedure changes resulting from the implementation? How will we share this information with the user audience? How will we train people on the new way of working? What does the training collateral contain? How can we wrap the change impacts around that collateral?

6. Roles in Change Management Apply structure approach with resources and funding to drive adoption and usage Communicator Advocator, Coach, Resistance Manager, Liaison Active and visible build coalition communications Executive and Senior Managers Middle Managers and Supervisors Change Resource Team Project SME’s and Support Project Team Design Develop Deliver Integrate Change Expertise Experience Knowledge

7. Change Acceptance Curve

8. Leader Actions for Phases REWARD COMMUNICATE DENIAL COMMITMENT EXPLORATION RESISTANCE LISTEN FACILITATE

9. Identification of Project • Vision and benefits are understood • Initiatives are well integrated • Right people are involved • Business resources are committed • Program risks and issues are managed • Strategy, schedule and key milestones are understood

10. Leadership Readiness • are strong sponsors of the change • communicate the vision, benefits & key decisions • act as role models for the new ways • proactively track progress and remove obstacles • hold teams accountable for contributions to project • coach teams through the change process.

11. Change Management Tips for Leaders • Change = fear and anxiety • How we work though the change management process and support these individuals through the transition is the biggest single issue leaders have to deal with. • A plan that doesn’t address employees’ feelings is fundamentally unstable. • Expect emotional responses – anxiety, fear, defensiveness, grief – it’s just human nature. Be prepared for, but not apprehensive about , these reactions

12. Change Management Tips for Leaders • Proactive, Not Reactive • You have to spend time with employees to get their buy-in. • Our people must change and be realigned to support the intent and outcomes of this outsourcing initiative. They must understand the business reasons for the change and embrace them enough to acquire new mindsets and behaviors that will achieve the desired corporate results. • People are Key Assets • They possess critical knowledge, and without their buy-in, the success of this transition is at risk. Make sure to treat them that way. Think of them as “customers” of the change. • In discussions, try to redirect to the facts/business drivers to avoid emotion-based resistance.

13. Your Role in Helping Ensure Success • Be available and accessible as your team members have questions. • Give people frequent updates. Without updates, employees often assume that news is being withheld from them, and rumors will fill the grapevine. • One way communication alone isn’t effective, give employees a chance to voice their concerns and address them openly and honestly. • Realize people may be worried, even if they are not directly impacted. • Don’t underestimate the importance of the people - the project won’t be a success unless the people are transformed, alongside the process and technology. • Help maintain morale. Be positive and reassuring. • Help rebuild trust in our corporate vision during the transition process by continually reinforcing the strategy behind these changes.

14. Keeping Team Informed • Transparency • Frequent updates • Defined plan • Communicate Communicate

15. Change Readiness Roadmap: Notifications 8:30 – 12:30 Impacted SF team Individual Transition in Organization Training Payroll Dept notification - SF Payroll 8:30 PST - Dallas Payroll 10:30 CST - M&A / Accounting/Tax 8:30 PST 8:30 – 12:30 Non-Impacted SF team Individual Transition in Organization Training Payroll Dept follow-up Mtgs - SF Impacted - Other SF - Dallas 10:00 – 1:00 CST Managing Transitions in Organizations Training All Mgrs Notification Materials Review - deck - talking points - FAQ - awareness msg Manager Risk Retention Review with HR & CL Final Preparation with CL & HR 8:30 – 12:30 Dallas team Individual Transition in Organization Training SF Payroll employee 1:1 with HR – review severance and retention bonus specifics . Share FAQs & roadmap Manager Debrief with CL & HR Post Notifications Other Stakeholders Talking points sent to Sr Leader Direct Reports, CFOs & HRLT Stakeholder Message

16. Communication • Staff • Sensitivity • Executive Updates • Customers – HR, employees

17. Change & Business Readiness Roadmap (example) Transition Post Transition Pre Transition March April May June Weekly CL Mtgs Weekly CL Mtgs Weekly CL Mtgs Weekly CL Mtgs Weekly CL Mtgs Weekly CL Mtgs Payroll Mgr Change Readiness Go Live Change Transitions Training Culture & Training Others Training - Dallas Financial Planning Overview – SF Impacted Resume Building - SF Impacted Professional Presence & Networking -SF Payroll Build Personal Brand & Interviewing – SF impacted Payroll Team Change Readiness Change Transitions Training – All Change Transitions Check in & Teambuilding – All Working with Virtual Teams Training - Dallas Resilience Training – All Payroll Business Readiness Monthly Payroll Dept Mtgs Monthly Payroll Dept Mtgs Monthly Payroll Dept Mtgs Monthly Payroll Dept Mtgs Monthly Payroll Dept Mtgs Monthly Payroll Dept Mtgs Go Live Stakeholder Updates & Business Readiness 7/12 Stakeholder Awareness Msg Monthly Executive Update Monthly Executive Update Monthly Executive Update Monthly Executive Update Monthly Executive Update Wk of 8/5 Stakeholder Mtg TG1 Report Out Wk of 10/20 Stakeholder Mtg TG2 Report Out Wk of 11/11 Stakeholder Mtg TG3 Report Out Wk of 12/20 Stakeholder Mtg TG4 Report Out

18. What’s Next –Sample What’s next communication • Week of 12/2 is a light week with only 2 confirms • Week of Dec 9 is a big week for Genpact • 8 confirms this week • 5 of these occur on 12/10 Create new Exec Payrun ID for exec payroll in TXE, S1E, S2E • Looking good for transition as scheduled on 12/23 • Transition retained items to Carrollton

19. Payroll Optimization: Project Roadmap March April May June Phase 1: Announcement & Project Readiness Phase 2: Knowledge Transition Phase 3: Process Execution Transition Go Live Change & Business Readiness 7/22 – 8/2 Solution ID 8/5 - 8/30 Pre-training 9/3 – 10/11 On the job (OJT) training Small group of Genpact team on site to baseline current AS IS processes Define adapted processes Finalize and sigh-off scope of work Broader Genpact team is brought up to speed on AS IS processes that were documented in Solution ID 10/14 - 11/8 Ramp Up Intensive on-site knowledge transfer, including work shadowing and hands on practice under supervision. Mckesson team certifies Genpact OJT team with License to Operate (LTO). Genpact begins testing new payroll processes and ramping up full India based team McKesson Payroll department supports exception processing and questions 11/11 – 12/20 Pilot Genpact begins transactional execution in production increasing to 100% volume by pilot end Track progress & analyze metrics Project/Genpact

20. Training • New Roles • New Skills • Plan of action

21. Metrics • Expected out comes • New Service Level Agreements • Performance evaluations

22. Pilot Volume Transition - Date View • The chart below shows two things: • Dates when worklist transitions to GP • All confirm dates during Pilot and who is doing the confirm

23. Metrics/Status report example Key Risk/Focus Areas & Mitigates Key highlights • Onsite Solution identification exercise completed with effective “As Is” process understanding and agreement on adapted process design • Process Risk Register (FMEA) and Sol id Action log prepared, to be jointly reviewed periodically • Key stakeholders aligned and governance structure set up • De-Risk Approach- Lift & shift model with minor adaptations • Canada activities to be out of scope for G and will be revisited during Q1 2014 Project Timelines Key Adaptations • All paper inputs to be scanned and route to Genpact via CRM tool • Hand off between G and retain team for auditing and further processing to be routed via CRM tool • All fulfillment services (check printing, distribution activity etc.) to be retained at McK. Communication between both the teams via CRM tool • G to post final Payroll after confirmation from team • Communication with employees on recovery of overpayment and collections of LOA to repay will be done by team Closed On track Delayed At Risk

24. Recognition • Determine timing of recognitions • Bonuses • Activities

26. Thank you Please remember to complete your evaluation of this session