E UROPEAN O PERATING M ODEL A Look Back

1. EUROPEAN OPERATING MODELA Look Back Patrick Ott

2. JAN EOM TRANSITION BEGINNING 2011 PL NL/BE CH HU SI HR AT RO CZ SK UK FR DE Scandi GR PT IT ES ONGOING FIN AM DE DR HR ONGOING FIN DR AM DE ONGOING FIN DR DE AM ONGOING FIN DE IT DR AM AM ONGOING DE FIN IT DR DE FIN IT DR AM ONGOING ONGOING AM FIN DE IT DR DE DR ONGOING IT AM FIN AM FIN IT DE DR ONGOING DE FIN DR AM IT ONGOING FIN CC DR AM ONGOING DE HR FIN TO BE STARTED DR AM DE TO BE STARTED AM DR FIN CC DE TO BE STARTED DE FIN AM IT DR HR TO BE STARTED DR IT AM DE FIN TO BE STARTED FIN IT AM DR DE TO BE STARTED HR IT DE DR AM FIN TO BE STARTED IT DE FIN AM DR HR

3. We are here EOM TRANSITION END 2011 PL NL/BE CH HU SI HR AT RO CZ SK UK FR DE Scandi GR PT IT ES COMPLETED FIN AM DE DR IT HR COMPLETED FIN DR AM DE COMPLETED FIN DR DE AM COMPLETED FIN DE IT DR AM AM COMPLETED DE FIN IT DR DE FIN IT DR AM COMPLETED COMPLETED AM FIN DE IT DR DE DR COMPLETED IT AM FIN AM FIN IT DE DR COMPLETED DE FIN DR AM IT COMPLETED FIN CC DR AM COMPLETED DE HR FIN COMPLETED DR AM DE COMPLETED AM DR FIN CC DE COMPLETED DE FIN AM IT DR HR COMPLETED DR IT AM DE FIN COMPLETED FIN IT AM DR DE COMPLETED HR IT DE DR AM FIN COMPLETED IT DE FIN AM DR HR

4. IMPORTANCE OF THE VISION EOM is… ...A Program to Ensure Future Business Fitness ...A Transition to Overall Sales Growth Accountability ...A Compilation of Initiatives to Restructure the Total European Organisation ...A Redefinition of the Balance Between Local and Central Functions ...An Alignment of Human Resources with our Strategic Initiatives

5. THE NEW LANDSCAPE – ESSC ESSC Krakow Support 22 Markets Across Europe (26 countries)

6. THE NEW LANDSCAPE – AFFILIATES 100% 0% 2% Data/Order Entry Marketing Communications 30% 0% (post ATLAS) DR, Training / Education & ABO Support Finance I.T.

7. PEOPLE DO THE WORK • Change Management Workshops • Expert Teams created the Change • ACIP Objectives • Deal with Animosity • Fireside Chats • Cultural Orientation • Celebrate Successes and Milestones • Clear Ownership & Accountability • Have Compassion for Anxiety

8. RECIPE + INGREDIENTS – SUCCESS FACTORS Early Communication – even if details are not worked-out Content- and Quality driven – not technical- and cost driven Built from the Ground – not commanded top-down A strong Team – not a project organization Middle Management involved early on – overall 60+ people Soft Factors incorporated – change management started 2009 Palace Guard Approach – protecting the change roadmap

9. GROUND HOG DAY – 7 LESSONS LEARNED Keep Ownership and Key Decisions in the Region – Manage regionally, cooperate and align globally Manage Expectations Carefully– New colleagues need time to get up to speed Accept Initial Frictions between Affiliates and ESSC – Start early with integration workshops Make sure the Functions have done their Homework before – Closely align with functional leaders and decide if the function is “ready” Manage the Business case from Day 1 –Track on name level, React immediately on deviations Do Not Forget about Colleagues who STAY – Transitions are difficult for those leaving AND those staying Create a Contact List for each Team – Help colleagues to understand who is NOW responsible for what

10. AMWAY KRAKOW