© 2013 Portland General Electric. All rights reserved.

Employee Engagement in a Customer-Focused Culture

2013 Marketing Executives’ Conference

October 19, 2013

Carol Dillin

Vice President, Customer Strategies & Business Development

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Portland General Electric

828,000 customers

2,600 employees

Service territory population 1.7 million,44% of state’s population

52 cities served

4,000-square-mile service area

25,600 circuit miles of T&D lines

• Transmission 1,600 miles

• Distribution 24,000 miles

2,781 MW of generation

Summer peak load of 3,950 MW (2009)

Winter peak load of 4,073 MW (1998)

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The Journey

Source: Market Strategies, Inc.

Percent Positive Rating

Year-end results except where otherwise noted.

Peer utilities include: Pacific Gas & ElectricPacific PowerRocky Mountain PowerPuget Sound EnergySouthern Cal. EdisonSeattle City LightSan Diego Gas & ElectricNV Energy NorthNV Energy South

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Corporate Focus on Customer Satisfaction

Elevate the importance of customer satisfaction at the corporate level

Added customer satisfaction metrics by market to PGE’s corporate Scorecard

Added “customer value” and key stakeholder strategies to company’s Strategic Intent

Established a customer-focused organization with residential and general business market managers

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Promote Customer Information

Established ongoing research and measurementsMarket Strategies International (MSI) — Residential (quarterly); added General Business (semi-annually) J.D. Power and Associates (JD Power) — Residential and General Business (annual) TQS — Interviews with energy managers from Key Customer with 1+ MW (manufacturing, hospital, university)

Celebrated successes with employeesPosters, communications featured employees holding JD Power award

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Strategic Intent includes Stakeholder Strategies

Customer Strategy We will power customers’ potential as the region’s trusted energy partner

Employee Strategy We will engage and develop

high performing, flexible employees, providing meaningful work and

development opportunities to strengthen commitment

CUSTOMERS

EMPLOYEES

SHARE-HOLDERS

COMMUNITY

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“Line of Sight” to Customer

How to develop a customer-focused employee culture?

Build the business case for why customer satisfaction matters

Go from “good to great” on customer satisfaction

Create a “line-of-sight” between the employee and the customer

Launch an internal, companywide program to achieve these goals

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Customer Focus Initiative

Launched program in 2007

Orientation for all 2,600 employees

- “Line of Sight” electric cord exercise

Company-wide “Quick Hit” improvements

Created employee recognition program, Power Stars, to increase culture of telling customer stories

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Power StarsEmployee Recognition Program

Foster support and showcase employees who have demonstrated excellent customer focus

Categories

- Exceptional Service

- Back-stage hero

- Efficiency All-Star

Cash prizes, non-profit donations

Reinforce “story telling”

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Hearing the customer’s voice

Develop opportunities for all employees to hear what customers are saying on a continuous basis

“Voice of the Customer” monthly reporting program

External guest speakers at annual manager’s meeting

“Man on the Street” video[ empathy ]

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What are customers telling us they want now?

To do business with PGE when they want, how they want

Simple, first-time resolution

Feel valued

Innovative programs, technologies and solutions

Reasonable electric prices

PGE Confidential. For discussion purposes only.

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Customer Engagement Transformation2011- 2018

Integrated Approach Maximizes Customer

Value

Integrated Approach Maximizes Customer

ValueSatisfying service

from PGE employees who

resolve issues in a timely manner

Cost efficiencies enabled by automation

and process improvements

Cross-channel information

improves customer experience

Innovative programs, technologies and

solutions

Relevant information, when customers need

it, through their preferred channel

Self-service transactions across multiple channels,

at a higher rate than today

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Improvements in customer operations

2011

2012

2013

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Creating a vision for employees

Customer Engagement Transformation (CET)Vision Statement We will deliver great customer experiences and achieve world-class performance by transforming the way we engage and serve customers. This transformation – driven by improving business processes, investing in talent and leveraging technology – aligns with our strategic intent.

Vision “tagline” — where we’re headed and how we’ll get thereCustomer Engagement Transformation Great customer experiences. Powered by you. Strengthened by technology.

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Engaging and supporting employees through transformation

Build Change Agent Networks

Create transparency through focus groups

Survey to collect feedback and track“change saturation”

Make work fun and celebrate success!

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Where are we today?

© 2013 Portland General Electric. All rights reserved.

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Questions?