The world’s best strategy is useless without employees mobilized to execute it. While there are hundreds of business books dedicated to how to develop a strategy, few explain its deployment and why 80 percent of new strategies fail to yield results. In this session, David Dart, vice president of human resources at Celanese Corp., will discuss key steps in transitioning a strategy from development to deployment and how the human resources function should lead this activity. In this session, attendees will learn: • The definition of an operating model and how it fits into strategy deployment. • The key steps in developing an operating model for your organization. • Methods of deploying an operating model effectively to ensure anticipated results are achieved. Speaker: David Dart, Vice President, Human Resources – Specialized Materials, Celanese, Inc.

1. Leading the Transition from Strategy
Development to Deployment
David Dart
Vice President, Human Resources
Celanese, Inc.

3. Our Organization and Culture is
Evolving…
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2012
2013
2014
Resetting Expectations
Delivering & Building Trust
Performance & Preparing for the Future
• Established mission, vision, and
refreshed values
• Strategy 1.0 (Low hanging fruit)
• Missed financial measures
• Responding to high attrition
• Performance management and
compensation changes
• Execution, Innovation,
Collaboration, and Customer
Excellence
• Stabilized organization
• Focus on cost / investments in the
right areas
• Unifying CE brand
• Top profit performance
• Celanese 2.0
• Lay the foundation of
sustainable, profitable growth
• Focus on talent – key roles,
specific development,
succession, and coaching

4. …and Strategy 2.0 Confirmed Many Strengths
as well as Many Opportunities
Strengths Challenges
Focus
Our technology and products are strong and often
preferred by customers…
…but we generate 3,500+ innovation ideas, 50% in
new spaces instead of translating existing applications
Customer
Net promoter score (NPS) highest amongst all
competitors in Auto segment (+23 vs. -24)…
…yet our account managers only get 35% of their time
in front of the customer
Commerce
Acetyl Chemistry drove results through asset
rationalization, and chain integration
…there are opportunities to value-price in EM due to
pricing remaining flat
Supply Chain Perfect order performance improved to 85%+...
…but we firefight 50% of orders to achieve that
performance
Growth While we have grown both bottom and top line…
…growth in Acetyl Chemistry has fallen below GDP
growth rate and EM growth is behind Vision 2016
targets
M&A
Balance sheet in a much better position today to
pursue M&A opportunities to achieve EBIT targets…
…we have little recent M&A deal and integration
experience, a critical capability to achieve success
Culture
Culture is evolving to one with balanced values,
customer focus, and delivery…
…but a lack of clarity on roles and responsibilities a big
challenge, and we must develop key capabilities to
succeed
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5. A Winning Culture enables us to successfully execute our strategy
Strategy DefinedAdapted from Playing to Win: How Strategy Really Works by AG Lafley
How we work together
Key skills & abilities required to make it happen
Key elements of execution that unlock value
The choices we make to deliver value
Setting the course for the organization
V I S I O N
W H E R E W E P L AY
H O W W E W I N
K E Y C A P A B I L I T I E S
O P E R A T I N G M O D E L

6. Skills and abilities required to achieve imperatives
Critical capabilities required to substantially push profitability
► Commerce (e.g., pricing, negotiation, contracting)
► Prioritization (e.g., product portfolio management, time with customer)
► Productivity (continuous improvement mindset across all areas)
Key capabilities that drive value must be ingrained in the culture

7. ► An operating model is where and how the most critical
work is done
► In other words, it’s the What, Who, When, and How
work gets done
► It is not an organizational structure, although the org
structure is an outcome of the operating model
7
What is an operating model?

8. Operating Model includes more than just
“boxes and lines”
Celanese
Operating Model
2.0
Structure
Capabilities
Resource alignment
Decision-making forums
Processes
Accountabilities

9. Four steps to deploying an operating model:
► Identify the key decisions that create value and the processes in
which they reside (the “What”)
► Clarify the roles and interfaces across the business (the “Who”)
► Define the decision rights (“Who, What, and When”)
► Create the forums to make those decisions (the “How”)
Clearly defined operating models enable speed
through systematic decision making
A little more on operating model

10. C E L A N E S E O P E R AT I N G M O D E L R E D E S I G N
Two value equations
Materials Acetyl Chemistry
Region (Europe, Americas, Asia)
Function alignment
Technology &
Innovation
Sales Supply Chain
Role of
center
Our operating model
► Rolled out operating
model in 9 meetings
to over 800 people in
three phases and in
all three regions
► Outlined key roles,
processes, and
decisions rights
► Created post-roll out
survey to understand
change cycle

11. SIPOC was evaluated for each critical
cross-functional process
S I P O C
Suppliers
The provider of
inputs to your
process
Inputs
Materials,
resources or
data required
to execute your
process
Process
A structured set of
activities that
transform a set of
inputs into specified
value to customers
and stakeholders
Outputs
The products
or services that
result from the
process
Customers
The recipient of
the process
output
Start End
5-7 major steps

12. Example Success (Role) Profile:
Portfolio Development and Pipeline Vice President
• Create and implement process to cut, prioritize and focus pipeline
projects including facilitating project prioritization, resource allocation
and project approval decision-making
• Develop tools, reporting/dashboards to provide portfolio visibility to key
relationship partners
• Create a roadmap to provide forward looking guidance on future
launches
• Focal point and leader of overall EM pipeline: platform programs, new
applications, translations, raw materials swaps, new formulations
• Provide oversight for the portfolio review process and communicate
back to all stakeholders on progress of product launches,
recommended additions and cut programs
• Work closely with Sales, Marketing, the P&L leader and Technology &
Innovation team members to provide input and assist with prioritization
of customer-driven product and application solutions aligned with
Celanese, segment, and customer strategies
• Pushes for launches to meet a quarterly expectation for an internal and
external view
• Drive the EM pipeline and platform
through strategic planning,
analytics, rationalization,
prioritization and launch:
• Work with key stakeholders to
provide a holistic view of current
launches and timeframe
• Provide oversight for the
portfolio review process
• Ensure resources are utilized
effectively and efficiently to drive
increased profitability
• Lead the overall EM pipeline
Purpose Key Activities
Key Abilities
• Ability to successfully lead across
organizational boundaries, including
strong relationship management skills
• Has courage to lean in and focus on near
term value and sacrifice programs that
don’t deliver according to business
strategy
• Key Competencies: Managerial
Courage, Motivating Others, Negotiating,
Process Management, Developing Direct
Reports and Others
Outputs
• Delivers $50MM annually in Variable
Margin from new launches
Key Relationships
Portfolio
Development
& Pipeline
Director
Sales/
SegmentsManufacturing
P&L Leaders/
Marketing
Technology &
Innovation
KPIs
• # of commercialized projects in
aggregate and vs. plan
• Volume, rev., & margin vs. plan
• Innovation spend
• Innovation returns
• Pipeline size and quality
Key Decision Authorities / Responsibilities
Decide to initiate projects (Gate 0) A
Decide Program Mgr. staffing R
Decide go/no go for projects at Gate 1,2 etc A
Decide to launch projects A

13. RACI is a critical tool for clarifying
decision rights
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Responsible
R
Consulted
Consulted
Consulted
IA
Accountable
C
Informed

14. R
A
C
I
Responsible for activity or process
• Directly executing or overseeing process
• Responsible for obtaining approval,
involving and obtaining support from
“consulted” roles, and inform all “informed”
Consulted for information or expertise
during execution
• Must be consulted before decision is made
• Have an Advisor role, i.e. is required to provide
input and expertise
• Supports the responsible in executing the
activity when needed
• Do not hold veto right over the decision, but is
informed of outcomes
Accountable / Approval authority for
activity or process
• Provide final sign-off before action is taken
• Holds accountability for the overall decision
made
Informed of the process and outcome
• Must be informed after decision is made
• Requires transparency into the process and
outcomes in order to be effective
14
Clarifying decision rights and accountabilities

15. MFG Leader
Lead Planner
Participants
Objectives Inputs
Outputs / Decisions / Actions
Project prioritization meeting
“4-blocker” Frequency: Daily
CTO
EM GM
Selected P&L
Leaders
• Review status of closes planned for the week
• Close unresolved issues from previous daily meeting
• Evaluate new projects added since previous daily
meeting
• Provide a brief open forum to discuss any outstanding
issues
• Status updates
- On track vs. off track
- PO attainment
• Project proposal
- Project value (Volume, Sales Price, Manufacturing Cost,
Development Cost)
- Timing
- Key issues – technical, IP, quality, etc.
- Strategic rationale (alternatives)
- Business/platform impact
- Likelihood of commercial success (e.g. customer commitment)
• Prioritized projects for development identified
• Agreed on development plan for prioritized projects
- Resources needed (technical and commercial)
- Path to market
• Resource allocations/reallocations (as needed)
• Identify open issues to be discussed at the next
meeting and actions to close
Portfolio
Manager
Commercial
Leader

16. Early returns point to success
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$142
$177 $190
$262
10%
12% 12%
18%
-4%
1%
6%
11%
16%
21%
26%
$0
$50
$100
$150
$200
$250
$300
2012A 2013A 2014A 2015F
Adj. EBIT Adj. EBIT Margin
► Three consecutive quarters of $100M+ in
profit
► Over 700 projects approved leading to an
expected $150M in incremental revenue
► Price/margin increases across the board
while delivering exceptional value to
customers is creating profit momentum

17. Summary
► HR is responsible to ensure strategies are actually executed
through human systems
► Setting a strategy is easy – mobilizing an organization behind it is
the hard part
► An operating model is not an org structure
► Define
‒ Value creating decisions and processes (What)
‒ Key roles (Who)
‒ Decision rights (When)
‒ Forums where those decisions are made (How)
► Culture ties it all together
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