Agilon Proposal to RCIAgilon Proposal to RCIJoni AndersonJoni AndersonSean CasadySean Casady

Aleksey DmitrenkoAleksey DmitrenkoKyndal GannonKyndal Gannon

Leena KhanLeena KhanPat LyonsPat Lyons

Camille PapillardCamille PapillardDiane VavrasekDiane Vavrasek

AgendaAgenda

Company InformationCompany Information Organizational StructureOrganizational Structure Leadership StructureLeadership Structure Compensation SystemCompensation System Employee Development PlanEmployee Development Plan

Roberston Communications Inc.Roberston Communications Inc.

Telecommunications CompanyTelecommunications Company 50 Employees 50 Employees

• 40 Exempt (including co-founders)40 Exempt (including co-founders)• 10 Non-exempt10 Non-exempt

Global CompetitorsGlobal Competitors

Organizational StructureOrganizational Structure Lattice-structureLattice-structure

• Co-founders as direction and evaluation Co-founders as direction and evaluation committeecommittee

• Remaining 38 exempt and 10 non-exempt as a Remaining 38 exempt and 10 non-exempt as a “talent pool”“talent pool”

• Talent Pool includes employees from all Talent Pool includes employees from all functional areas (e.g. IT, finance, marketing, functional areas (e.g. IT, finance, marketing, etc.)etc.)

Self organize into project groups (similarly Self organize into project groups (similarly to Agilon members) according to which to Agilon members) according to which functional expertise is needed for which functional expertise is needed for which projectproject

Lattice StructureLattice Structure

Organizational StructureOrganizational Structure

Commitment TrackingCommitment Tracking• Ensures follow-through on projectsEnsures follow-through on projects• Internal personnel databaseInternal personnel database

SkillsSkills KnowledgeKnowledge InterestsInterests Areas for ImprovementAreas for Improvement

Organizational StructureOrganizational Structure

Communication FacilitationCommunication Facilitation• Weekly meetings between project Weekly meetings between project

champions and co-founderschampions and co-founders• Internal blogInternal blog• Open-door policy for all members of RCI Open-door policy for all members of RCI

(including co-founders)(including co-founders)• Wide-open office floor, trading-style, Wide-open office floor, trading-style,

promotes easy migrationpromotes easy migration

Organizational StructureOrganizational Structure

Lattice structure is non-hierarchicalLattice structure is non-hierarchical Promotes innovation, Promotes innovation,

communication, collaborationcommunication, collaboration Motivates individuals due to Motivates individuals due to

increased interest in project workincreased interest in project work• Leads to employee engagement and Leads to employee engagement and

company loyaltycompany loyalty Encourages mutual learningEncourages mutual learning

Leadership StructureLeadership Structure

2 Levels of leadership2 Levels of leadership• 2 co-founders oversee the direction of 2 co-founders oversee the direction of

the organizationthe organization• All other employees work as peers to All other employees work as peers to

carry out the mission of RCIcarry out the mission of RCI• Relatively flat, egalitarian leadership Relatively flat, egalitarian leadership

structurestructure

Leadership RolesLeadership Roles

Co-foundersCo-founders• Serve as catalystsServe as catalysts• Assess ideas and determine the direction of Assess ideas and determine the direction of

the companythe company• Appoint project championsAppoint project champions• Accessible to all members of the organizationAccessible to all members of the organization

EmployeesEmployees• Mutual learningMutual learning

All employees are responsible for being both a All employees are responsible for being both a teacher and a learnerteacher and a learner

• Every employee could potentially be a project Every employee could potentially be a project leaderleader

Succession PlanningSuccession Planning How do we identify talent to eventually take How do we identify talent to eventually take

the place of the co-founders?the place of the co-founders?• Identification would be based on two criteria:Identification would be based on two criteria:

The degree of commitment that individuals showed The degree of commitment that individuals showed (number of projects they lead)(number of projects they lead)

The success of the projects that the individuals took The success of the projects that the individuals took part in (creativity of the projects and financial part in (creativity of the projects and financial outcome)outcome)

Succession planning ensures the stability of Succession planning ensures the stability of RCI in the event that the co-founders could RCI in the event that the co-founders could no longer serve as the top leadership levelno longer serve as the top leadership level

The organization should designate two new The organization should designate two new catalysts who could rotate every five years catalysts who could rotate every five years

Compensation for AgilityCompensation for Agility

StrategyStrategy One egalitarian, narrow pay bandOne egalitarian, narrow pay band Tie compensation to agile behaviorsTie compensation to agile behaviors Award bonuses based on Award bonuses based on

organizational performanceorganizational performance Base pay increases on employee Base pay increases on employee

value value

Compensable Factors For Salaried Compensable Factors For Salaried EmployeesEmployees

FactorFactor WeightWeight

Cross FunctionalityCross Functionality 10%10%

Continuous LearningContinuous Learning 20%20%

CollaborationCollaboration 25%25%

InnovationInnovation 25%25%

Role Specific Role Specific ActivityActivity 20%20%

Compensable FactorsCompensable Factors Cross FunctionalityCross Functionality

• Engages in cross functional activitiesEngages in cross functional activities• Actively networks and collaborates across organizational Actively networks and collaborates across organizational

“boundaries”“boundaries” Continuous LearningContinuous Learning

• Actively pursues self-developmentActively pursues self-development• Is able to grasp and master new technical and business Is able to grasp and master new technical and business

knowledge/skillsknowledge/skills• Seeks feedback from othersSeeks feedback from others• Gives feedback to othersGives feedback to others• Supports and engages others in their own developmentSupports and engages others in their own development

CollaborationCollaboration• Consistently develops and sustains cooperative working Consistently develops and sustains cooperative working

relationships with colleagues relationships with colleagues • Encourages and facilities cooperation within the organization and Encourages and facilities cooperation within the organization and

within working groupswithin working groups• Fosters relationships and finds common ground with a wide range Fosters relationships and finds common ground with a wide range

of stakeholdersof stakeholders

Compensable FactorsCompensable Factors InnovationInnovation

• Contributes new insights and solutions for organizational Contributes new insights and solutions for organizational improvementimprovement

• Creates an environment that encourages creative Creates an environment that encourages creative thinking and innovationthinking and innovation

• Develops and implements new or improved programs, Develops and implements new or improved programs, processes, products, or other initiativesprocesses, products, or other initiatives

Role specific ActivityRole specific Activity• This compensable factor will vary for each role within This compensable factor will vary for each role within

the organization. The criteria and weight will be based the organization. The criteria and weight will be based on the duties and responsibilities of each role.on the duties and responsibilities of each role.

Bonus StructureBonus Structure

Awarded annually as a percentage of Awarded annually as a percentage of base salary (up to 10%) in a lump sum base salary (up to 10%) in a lump sum bonusbonus

Based on organization-wide Based on organization-wide performance metricsperformance metrics• Financial PerformanceFinancial Performance• Progress and InnovationProgress and Innovation• Customer SatisfactionCustomer Satisfaction

Promotes organizational performance Promotes organizational performance and a sense of ownershipand a sense of ownership

Hourly EmployeesHourly Employees

Pay based on local market levelsPay based on local market levels Pay level slightly above marketPay level slightly above market Included in the company wide bonus Included in the company wide bonus

Pay IncreasesPay Increases

Merit IncreaseMerit Increase• Employees reviewed annuallyEmployees reviewed annually• Directly corresponds to increases in Directly corresponds to increases in

duties and responsibilitiesduties and responsibilities• Appears as an increase in percentage of Appears as an increase in percentage of

the role specific compensable factorthe role specific compensable factor COLACOLA

• Based on CPI index to adjust for inflation Based on CPI index to adjust for inflation

Employee Development Plan Employee Development Plan

Flexible and adaptive planFlexible and adaptive plan Train employees on broad Train employees on broad

competenciescompetencies• InnovationInnovation• Cross-functionality Cross-functionality • Spontaneous CollaborationSpontaneous Collaboration• Continuous LearningContinuous Learning

How to Train for CompetenciesHow to Train for Competencies

InnovationInnovation-Role playing and action learning projects-Role playing and action learning projects

Cross functionality Cross functionality • Role playing, cross-training, multiple Role playing, cross-training, multiple

mentoringmentoring Spontaneous CollaborationSpontaneous Collaboration

• Team training and communities of practiceTeam training and communities of practice Continuous LearningContinuous Learning

• Mentoring, after action reviews, self-Mentoring, after action reviews, self-directed learningdirected learning

Questions?Questions?