The Alcoa Power & Propulsion plant in Exeter, UK launched initiatives to improve employee engagement and morale as well as community involvement after a workforce reduction led to low scores. Programs focused on leadership development, employee well-being, and STEM education partnerships. This approach helped increase engagement scores from 33% to 77% over two years despite obstacles. The plant exceeded targets and won several awards for its success in building employee pride and community engagement.

1. PPMA Leeds 2014
Cindy Penney – Alcoa Power & Propulsion
1
9th May, 2014

2. Advancing each generation
Invented
Aluminum Aluminum
Applications &
Globalization Multi-Material
Solutions
2

3. Wing ribs (plate
and extrusions)
Wing tips
Hydraulic
vessels
Fuel connectors
Torquerods
Seat
frames
Window and
door frames
Wheels, brakes
and torque tubes
Fuselage to
wing
connection
Wing box
fasteners
Engine pylon
structure and
fasteners
Wing spars
(forgings
and plate)
Wing
stringers
Wing gear ribs,
trunions and support fittings
Upper wing skins
Crownframes
Auxiliary power unit
exhaust ducts
Vertical stabilizer
fasteners
Fuselage
stringers
Fuselage
skins
Seat tracks
Landing gear,
bay frames
Lower wing skins
Wing flap
fasteners
Fan blades
Guide vanes Hotsection
blades and vanes
Compressor cases
Fuel metering
unit
Fan hub and
compressor
frames
Bearing
housings
Alcoa content on Metallic aircraft
Current
Future
• Morethan 90% of all aluminum
aerospace alloys have been
developed by Alcoa
• Every WesternCommercial
aircraft flyingtoday uses Alcoa
fasteners
• Every WesternCommercial and
military aircraft engine uses
Alcoa castings
Alcoa Blue flies from nose to tail on metallic-intensive aircraft
3

4.  World leading investment casting plant
 600+ employees
 $132M in revenue
 Sole company location with on-site
Ceramic Core, Alloy and Casting
Foundry plants
 Main products are gas turbines and
aerospace airfoils
APP Exeter recently completed a full scale turnaround
4
APP Exeter Overview
Exeter is APP’s key operation in UK
Source: Alcoa Exeter 2014 Impact Awards Application
Team is proud of its 2-year turnaround
DART rate 85%
Revenue 47%
EBITDA 14 points
DWC 20%
GVS Scores 235%
Note: total percentage increase / decrease over 2 years from 2010 to 2012
EBITDA in 2010 was negative.

5. In 2010, both employees and community were disengaged with Alcoa
5
Situation and Response
What we set out to accomplish
 Increase engagement score to 65% by
2013
 Improve employee morale by
− Instilling workforce pride through
leadership development
− Focusing on employee wellbeing
 Build community engagement through
STEM related activities
− Developing a cutting edge program
− Winning recognition for our efforts
Situation
2010
33%
23%
32%
20092008
 Low morale and negative press resulting
from 47% work force reduction
 Declining interest in volunteering among
employee base
 Loss of connection with local community
Source: Alcoa Exeter 2014 Impact Awards Application
 Disturbing engagement score trend
GVS scores

6. Initiatives launched to build employee pride, improve wellbeing and
engage the community
6
Project Initiatives
Employee Pride CommunityWellbeing
Build a culture of mutual
respect
Advance supervisory
excellence
Enhance employability
of workforce
Grow people’s resilience &
ability to deal with change
Launch “Alcoans in
Motion”
Partner with health
organizations and charities
Rebuild contacts with
community stakeholders
Develop programs with
local institutions
Provide STEM
apprenticeships for local
youth
Source: Alcoa Exeter 2014 Impact Awards Application

7. Individual Focus
7

8. Feeling Valued
8

9. Building Pride
9

10. Communication Strategy
10

11. Persistence, partnerships and focused approach were key to
overcoming obstacles to success
11Source: Alcoa Exeter 2014 Impact Awards Application
Obstacles, Approach and Success Factors
Obstacles
Community
Indifference
Reputational
Risks
Limited
Funding
Employee
Skepticism
Approach
Maintained consistency in programs
Increased level of exposure
Utilized the community framework
survey to jointly identify key themes
Built relationships through employee
ambassadors
Focused on STEM related needs of
the community
Partnered with charity organizations
Leveraged Alcoa and govt. grants
Success Factors
Persistence
Focus


Persistence
Partnership
Focus



Persistence
Focus


Partnership

12. Project exceeded all of our expectations
12
Project Results
Increasing engagement scores Improved performance
Productivity: up 10% YoY
Over last 2 years:
- DART rate: down 85% to 0.16 from 1.06
- Employee turnover rates: 5.6%  2%
- Absenteeism: down 2%
77
23
20132010
Target: 65
3.35X
Source: Alcoa Exeter 2014 Impact Awards Application
Awards and recognition
Alcoa 2014 Impact Award Finalist
CIPD People Management Award 2013 – Overall Winner
Exeter College Engineering Employer of the Year 2012
Employers Engineering Federation 2012 SW Award for Skills
“Health Champion” by the Royal Society for Public Health in 2012
Mindful Employer’ Charter 2012 by the National Health Service Trust
GVS scores
Exceeded best-in-class scores for
Wellbeing, Community and Volunteering

13. Game Changing HR
13
Lessons Learned
Build
leadership
skills
Focus on
clear
objectives
Utilise formal programmes, lunch and learn
sessions to share best practice and
coaching
Develop
local
workforce
Source: Alcoa Exeter 2014 Impact Awards Application
Leverage
partnerships
Understand and pursue available grants
Engage them as a thought partner
Identify and invest in talent with potential
Encourage coaching of trainees/ engineers
Unify efforts under common themes, e.g.,
all community efforts were STEM related