Schering-Plough’s ETWeb 10 Implementation How the implementation of global performance management facilitated the combination of Schering-Plough and Organon BioSciences

Agenda Context and Business Challenge Our Solution Project Approach Project Organization and StepStone Role Key Learnings

Context and Business Challenge

Our Solution

Project Approach

Project Organization and StepStone Role

Key Learnings

Context November 20, 2007 marked Day 1 for the new combined company between Organon Biosciences and Schering-Plough HQ - Kenilworth, NJ 33,500 employees $10.6 billion annual sales HQ - Oss, the Netherlands 17,000 employees $5 billion annual sales One Company, One Culture, One Team

November 20, 2007 marked Day 1 for the new combined company between Organon Biosciences and Schering-Plough

HQ - Kenilworth, NJ

33,500 employees

$10.6 billion annual sales

HQ - Oss, the Netherlands

17,000 employees

$5 billion annual sales

Business Challenge Schering-Plough’s Performance Management Program (PMP) Globally consistent process, ratings, terminology Performance and Development are planned and assessed Paper-based forms Organon BioSciences Performance & Development Dialog (P&DD) ETWeb v 9.0 Available on the web and in multiple languages Supports similar process focusing on Performance and Development

Schering-Plough’s Performance Management Program (PMP)

Globally consistent process, ratings, terminology

Performance and Development are planned and assessed

Paper-based forms

Organon BioSciences Performance & Development Dialog (P&DD)

ETWeb v 9.0

Available on the web and in multiple languages

Supports similar process focusing on Performance and Development

Business Challenge Successfully drive the integration process at the company level by integrating performance management Create a globally consistent process Cascading goals and setting objectives Ratings and ratings calibration Keep the best of both Plan and assess both performance and development Planning, mid-year and year-end sessions with ongoing coaching and feedback Leverage technology Upgrade from ETWeb v 9.0 to ETWeb v 10.5 Enhance with external best practices Integrate competencies into development planning Incorporate role of dotted-line manager

Successfully drive the integration process at the company level by integrating performance management

Create a globally consistent process

Cascading goals and setting objectives

Ratings and ratings calibration

Keep the best of both

Plan and assess both performance and development

Planning, mid-year and year-end sessions with ongoing coaching and feedback

Leverage technology

Upgrade from ETWeb v 9.0 to ETWeb v 10.5

Enhance with external best practices

Integrate competencies into development planning

Incorporate role of dotted-line manager

Our Solution Implemented January 2009 to further drive integration of Schering-Plough and OBS Enhanced existing processes with best practices Competencies Shared Accountability Manager Available via the internet and in 17 languages myPMP received positive reviews during discussions with the European Works Council Extensive colleague and HR support is provided through a website that contains training materials and job aids as well as through the myPMP mailbox

Implemented January 2009 to further drive integration of Schering-Plough and OBS

Enhanced existing processes with best practices

Competencies

Shared Accountability Manager

Available via the internet and in 17 languages

myPMP received positive reviews during discussions with the European Works Council

Extensive colleague and HR support is provided through a website that contains training materials and job aids as well as through the myPMP mailbox

High Level Approach Nov 2007 Colleagues remain on existing performance management process and system to complete the 2007 year-end process Implement enhanced process and upgraded system across entire global organization Colleagues remain on existing process and system for full performance year Most managers use both to manage colleague performance and development Project team designs enhanced process and upgraded system 2007 Jan 2008 Jan 2009 2008 2009

Colleagues remain on existing performance management process and system to complete the 2007 year-end process

Implement enhanced process and upgraded system across entire global organization

Colleagues remain on existing process and system for full performance year

Most managers use both to manage colleague performance and development

Project team designs enhanced process and upgraded system

Project Timeline Design & Develop PMP Feb ’08 - May Jun - Dec Design performance management process Document business requirements Document technical requirements Prepare business case Submit RFC Conduct focus groups Finalize contract Finalize detailed design specification Install system Configure and customize system Conduct unit and system testing Develop user support materials and training Engage PMP Support Network Engage Works Councils Jan ‘09 Conduct user acceptance testing Conduct HR training Launch communications Conduct user acceptance testing Move system into production Conduct HR training Monitor ongoing usage and user issues/helpdesk calls May ‘09 Go Live PMP Design & Develop TM Go Live TM Feb - Apr Move system into production Conduct colleague training Monitor ongoing usage and user issues and helpdesk calls Finalize detailed design specification Configure and customize system Conduct system testing Develop user support and training materials Engage PMP Support Network Engage Works Councils Plan

Design performance management process

Document business requirements

Document technical requirements

Prepare business case

Submit RFC

Conduct focus groups

Finalize contract

Finalize detailed design specification

Install system

Configure and customize system

Conduct unit and system testing

Develop user support materials and training

Engage PMP Support Network

Engage Works Councils

Conduct user acceptance testing

Conduct HR training

Launch communications

Conduct user acceptance testing

Move system into production

Conduct HR training

Monitor ongoing usage and user issues/helpdesk calls

Move system into production

Conduct colleague training

Monitor ongoing usage and user issues and helpdesk calls

Finalize detailed design specification

Configure and customize system

Conduct system testing

Develop user support and training materials

Engage PMP Support Network

Engage Works Councils

Project Organization Executive & Project Sponsors Advisors & Change Agents Project Team Four full-time project team members with the following skill sets / responsibilities: Project Management Business Analysis Process Design System Configuration Training System Testing HR Leadership OE Network PMP Support Network Project Support Translations Works Council Data Privacy Office IT Security Office Legal Testing Services Infrastructure

Four full-time project team members with the following skill sets / responsibilities:

Project Management

Business Analysis

Process Design

System Configuration

Training

System Testing

HR Leadership

OE Network

PMP Support Network

Translations

Works Council

Data Privacy Office

IT Security Office

Legal

Testing Services

Infrastructure

StepStone Role Technical leadership/in depth knowledge of the system Functional design specs Liason between StepStone and SP Customizations that SP could not do System admin training, and train the trainer

Technical leadership/in depth knowledge of the system

Functional design specs

Liason between StepStone and SP

Customizations that SP could not do

System admin training, and train the trainer

Human Resources Support

Colleague Training and Communications Performance Management Overview Competencies Planning Process Mid-Year Process Year-End Process

myPMP Support Model

Key Learnings Create detailed process flows (swim lane diagrams) to verify business expectations and drive system workflow Working team provided input and created local ownership Ensure clean data feeds the system Don’t underestimate training and communications Ensure appropriate staffing Build in enough time for internal and external approval processes (e.g., works councils, data privacy offices, contracts) Offer paper-based capability Leverage StepStone for project management if you don't have strong internal project management skills

Create detailed process flows (swim lane diagrams) to verify business expectations and drive system workflow

Working team provided input and created local ownership

Ensure clean data feeds the system

Don’t underestimate training and communications

Ensure appropriate staffing

Build in enough time for internal and external approval processes (e.g., works councils, data privacy offices, contracts)

Offer paper-based capability

Leverage StepStone for project management if you don't have strong internal project management skills

Questions