CCL President’s Message March 2008. Center for Creative Leadership Today’s Agenda Restructuring: Why? Restructuring: The Process. CCL’s New Organizational.

CCL President’s Message

March 2008

Center for Creative Leadership

Today’s Agenda

• Restructuring: Why?

• Restructuring: The Process.

• CCL’s New Organizational Structure.

• Restructuring: Next Steps.


Restructuring: Why?

• Client feedback shows lack of organizational impact.

• Internal feedback identified inefficiencies in Custom line.

• Custom consulting study confirmed inefficiencies.

• Overall, CCL underperforming to market opportunities.


Restructuring: Why?

The total North America year-over-year growth rate was 0.2% from FY06 to FY07 and 3.6% from FY07 to FY08 forecast.

The compounded annual growth rate (CAGR) has slowed significantly over the past two years (from FY06 to FY08):

•Open Enrollment = 2.6%

•Custom Solutions = -0.6%

•Other Income = 4.6%

•Total N. America = 1.9%

North America Revenue

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

FY04 FY05 FY06 FY07 FY08FC

OpenEnrollment

CustomSolutions

OtherRevenue


Restructuring: Why?

CCL’s Existing Organizational Chart


Restructuring: The Process

• Cross-functional group, led by David Altman, formed in December 2007 to come up with several restructuring options.

• Options were assessed against initial key drivers:

1) grow impact and revenue

2) work more places globally with more diverse clients

3) create new offerings

4) make it easy for clients to work with us

5) improve knowledge management

6) facilitate strategic and tactical partnerships

7)generate options not requiring new and large financial investments.


Restructuring: The Process

• Later in the process the following additional key drivers were incorporated:

1) attract more human capital

2) emphasize talent in client-focused areas

3) anticipate future direction

4) factor in custom consultant recommendations

5) consider key OLD recommendations

6) simplify revenue and expense responsibilities

7) unleash total CCL talent


Restructuring: Core Group Members

• Jerry Abrams (Advisor)• David Altman (Chair)• Paul Draeger (Advisor)• Joan Gurvis• Cile Johnson• Barak Karabin (Ad Hoc Member, Graphic Designer)• Sara King• Jennifer Martineau• Katherine Pappa• Bill Pasmore (Advisor)• Laurita Sirimongkhon• Susan Smith• Sylvester Taylor• Michael Van Impe• Debbie Zaleschuk• The following faculty/staff were added to the core team two weeks ago to help

improve the recommended structure: Kate Beatty, Brent Howell, Jane Koo, Ellen Manakas, Michael Wakefield, Jim Wilson.







CCL’s New Structure



•The President’s Office and GOLD



Chief Talent Officer Group



CFO/CAO Group



R&I/Product Development Org Chart



Global Markets Group



Global Marketing Group




Restructuring: Next Steps

• Hire consultants to assist with implementation.

• Set timeline for phased implementation.

• Provide regular updates through Reorganization Sharepoint site.

CCL President’s Message March 2008. Center for Creative Leadership Today’s Agenda Restructuring: Why? Restructuring: The Process. CCL’s New Organizational.

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