PLG Viewpoint Engagement Survey

2010

Background

• The PLG Viewpoint Engagement Survey was introduced in June 2008

• It is an important temperature check in assessing the engagement levels of the PLG and measuring the extent to which the Values have been embedded

• Gathers feedback across 10 topics – Contribution & Recognition, PaperlinX Values, Behaviours, Culture, Leadership, Communication, Development, Rewards, Satisfaction and Business Strategy

• Originally planned to be performed on an annual basis, however no survey for 2009 due to a need to focus on business priorities. Survey re-launched in September 2010

• So why focus on engagement? o Engagement is highly correlated to key business measures, including

productivity and retention, customer satisfaction, total shareholder return (TSR), and sales growth

o Employees who are most committed perform 20% better and are 87% less likely to leave

o Organisations that have improved their engagement level have realised corresponding improvements in their business success measures

o Links to alignment and understanding of business strategy

Viewpoint 2008 - Results

• Response rate = 78%

• Strengths (75% or above favourability)o Behaviours 88% favourability o Culture 86% favourability o Contribution and Recognition 81% favourability o Business Strategy 83% favourability o Rewards 75% favourability

• Opportunities (less than 75% favourability)o Leadership 71% favourability o Development 69% favourability o Communication 66% favourability o Satisfaction 62% favourability o Values 62% favourability

Viewpoint 2008 - Results

• Themes of open/ verbatim comments:

o Need increased strategic leadership to combat decline in paper industry - can no longer afford to blame external factors

o Must identify new markets and growth opportunities

o Increase sense of urgency re change and critical business issues - we are not responding fast enough

o Turn up the pressure on accountability and poor business results

o Must do a better job of managing costs in the business

o Need to increase our performance management abilities to deal with poor performers

Viewpoint 2008 - Actions

Action Plans 2008

• Too many! About 19 globally plus Regional actions

• Global actions identified included:o Developing and implementing change and project

management framework to assist leaderso Remeasuring LSI 360’s for the PLGo Conducting local management Values workshops

• For obvious business reasons we did not progress many of the actions

• However did make progress in areas such as:– Embedding the Values in HR processes– Implementing change and communication frameworks

(particularly PPXE)

Viewpoint 2010

• The survey comprised: o 70 statements separated into 10 topics - same as 2008 for trending

purposeso 4 open questions (the previous survey only included one open

question)o 3 demographic questions

• Respondents asked whether they strongly agree, agree, mixed,

disagree or strongly disagree with the statement

• The survey was administered and analysed by Snap Surveys, a UK Survey Software company

• The survey was open from the 15th September to 28th September 2010

Viewpoint 2010 – How to view the results

• A statement is classified as favourable if the respondent either agreed or strongly agreed to the statement

• If a topic is over 75% favourability it is listed as a strength.

• An opportunity is below 75% favourability.

• A notable change is a statement that is +5% points or -5% points different from the favourability score for 2008

Viewpoint 2010 – Executive Summary

• Marginal reduction against 2008 results but should be viewed as incredibly positive given the business environment of the last 2 years

• Overall favourability across the PLG of 73% against 74% in 2008

• Strong results overall for Culture, Business Strategy, Behaviours and Contribution & Recognition

• Some opportunities in Communication, Development and Rewards (as is likely to have been expected) – however these results are not poor

• Significant opportunities and improvement required for Values and Satisfaction as both have been consistently low for 2008 and 2010

Viewpoint 2010 – Executive Summary

• The results suggest there is a disconnect between the individual and PaperlinX – “I” vs “PaperlinX” – for example:

o I perform well but question if PaperlinX will be successful

o I communicate to my team but question whether PaperlinX shares ideas well and communicates sufficiently

o I put in above and beyond what is required and as such believe we are under too much pressure with a limited work-life balance

o I care about my team but question PaperlinX’s commitment to caring for its people

Viewpoint 2010 – Executive Summary

• Areas for focus for 2011 from the results appear to be:

o Improve communication and knowledge sharing across

the Groups

o Seek ways to better embed and embody the PaperlinX

Values amongst the PLG

o Improved employment brand of PaperlinX and the PLG

o Stronger leadership in the areas of change

management and delivery of strategic plans

Viewpoint 2010 – Executive Summary

• Notable reductions in overall favourability for Europe and ANZA

o Attributed to worsening scores across the board particularly Values, Development and Satisfaction

o Most notable across Europe Divisional Office which saw reductions across most of the topics – notable exception was culture which remained high

• Improvement for Group Office’s overall favourability

o Culture, Business Strategy, Rewards, Contribution & Recognition and Communication all improved from 2008

o Development and Values dropped but not enough to reduce favourability below 2008 levels

• North America remains the most engaged region but overall favourability did drop from 2008

Viewpoint 2010 – Response Rates

• Response rate of 88% - an improvement from 78% in 2008

Region Total Responses PLG Members % Responses

Australia, New Zealand & Asia 23 24 96%

Europe combined 86 101 85%

North America 58 68 85%

Group Office 16 16 100%

TOTAL 183 209 88%

AgeTotal

Responses %

Under 35 8 4%

36-45 76 42%

46-55 73 40%

56 and over 26 14%

TOTAL 183 100%

Length of Service

Total Responses %

0-2 years 20 11%

3-7 years 51 28%

8-10 years 25 14%

plus 11 years 87 48%

TOTAL 183 100%

Viewpoint 2010 – Results By Topic

Topics 2010 2008 Change % +/-

Contribution & Recognition

80% 81% -1%

PaperlinX Values 59% 62% -3%

Behaviours 83% 88% -5%

Culture 88% 86% +2%

Leadership 68% 71% -3%

Communication 68% 66% +2%

Development 66% 69% -3%

Rewards 70% 75% -5%

Satisfaction 59% 62% -3%

Business Strategy 83% 83% 0%

OVERALL 73% 74% -1%

Viewpoint 2010 – Results By Topic

Strengths (≥ 75%):

• Culture 88% favourability - improvement from 86% in 2008

• Behaviours 83% favourability – however down from 88% in 2008

• Business Strategy 83% favourability –same as 2008

• Contribution & Recognition 80% favourability – slight decrease from 81% in 2008

Opportunities (<75%):

• Satisfaction 59% favourability - decrease from 62% in 2008

• PaperlinX Values 59% favourability - decrease from 62% in 2008

• Development 66% favourability - decrease from 69% in 2008

• Leadership 68% favourability - decrease from 71% in 2008

• Communication 68% favourability – however an improvement from 66% in 2008

• Rewards 70% favourability – decrease from 75% in 2008

Viewpoint 2010 - 10 Most Favourable statements

Statement 2010 2008 % Change+/ -

I care about my team members and recognise their performance

99.5% 99.0% -0.5%

I always try to do more than is actually required

97.3% 96.3% +1.0%

I try to keep abreast of current developments in my area of expertise

97.2% 94.7% +2.5%

I am held accountable for my performance 94.6% 93.7% +0.9%

I effectively communicate relevant information to my team

93.4% 92.6% +0.8%

I feel comfortable taking managed risks 92.9% 93.7% -0.8%

I feel I am performing well within my role 91.3% 91% +0.3%

I feel motivated to work for my business group

90.2% 86.3% +3.9%

I understand where my role fits in the business

90.2% 93.1% -2.9%

I believe that my role adds significant value to the execution of our business group

90.1% 87.9% +2.2%

Viewpoint 2010 –10 Least Favourable statements

Statement 2010 2008 % Change+/ -

PaperlinX shares ideas well across the organisation 32.8% 35.3% -2.5%

I am not under too much work pressure 41.0% 44.7% -3.7%

PaperlinX acknowledges and rewards excellent performance

44.8% 60% -15.2%

I feel we have a human, energised and fun workplace 45.4% 45.8% -0.4%

I think PaperlinX is doing a good job of retaining its most talented people

46.4% 52.6% -6.2%

I am able to strike a good balance between home and work life

46.4% 49.5% -3.1%

I feel that my career aspirations are being actively managed and that PaperlinX will be able to satisfy my ambitions

47.5% 45.8% -1.7%

Our leaders implement and manage change effectively 48.1% 48.9% -0.8%

Knowledge and information sharing is common practice among members of the Leadership Group

48.1% 36.8% +11.3%

I believe our leaders are effective at inspiring and motivating

49.2% 52.6% -3.4%

Notable Improvements (+5%) 2010 vs. 2008

Statement 2010 2008 % Change+/ -

Knowledge and information sharing is common practice among members of the Leadership Group

48.1% 36.8% +11.3%

My manager briefs me on important business issues and developments

83.6% 73.1% +10.5%

I believe that my business group has a positive workplace culture which helps to drive success

78.1% 68.4% +9.7%

I am encouraged to learn from my mistakes and successes

85.3% 77.3% +8.0%

I feel my boss cares about me and recognises my contributions

77.6% 71.6% +6.0%

I believe our business group's strategy will contribute to improving profitability

81.4% 75.8% +5.6%

I gain fulfillment from my job and my accomplishments

89.6% 84.2% +5.4%

10 Notable Reductions (-5%) 2010 vs. 2008Statement 2010 2008 % Change

+/ -

PaperlinX demonstrates care and concern for employees

64.5% 80.0% -15.5%

PaperlinX rewards excellent performance 44.8% 60.0% --15.2%

I believe the training I have received has supported my development

64.5% 79.0% -14.5%

I am proud to tell others that I am part of PaperlinX 73.2% 86.3% -13.7%

I believe PaperlinX is focussed on our future sustainability

74.8% 86.3% -11.5%

PaperlinX is concerned about my wellbeing 64.5% 75.2% -10.7%

I feel we really care about our people 51.4% 61.5% -10.1%

I believe that my remuneration is fair in relation to my responsibilities

56.3% 65.3% -9.0%

I understand and apply the PaperlinX Core Operating Principles

88.0% 96.4% -8.4%

PaperlinX actively supports my continuing professional development

53.0% 60.5% -7.5%

Still negative (<50%) for 2010 & 2008

Statement 2010 2008 % Change+/ -

I feel we have a human, energised and fun workplace 45.4% 45.8% +0.4%

Our leaders implement and manage change effectively 48.1% 48.9% +0.9%

Knowledge and information sharing is common practice among members of the Leadership Group

48.1% 36.8% +11.3%

PaperlinX shares ideas well across the organisation 32.8% 35.3% -2.5%

I feel that my career aspirations are being actively managed and that PaperlinX will be able to satisfy my ambitions

47.5% 45.8% +1.7%

I am able to strike a good balance between home and work life

46.4% 49.5% -3.1%

I am not under too much work pressure 41.0% 44.7% -3.7%

Viewpoint 2010 - Verbatim Comments

PLG Members were asked to respond to four open questions:

• What do you think are the key issues facing

PaperlinX?

• Why did you join PaperlinX?

• What has made you stay at PaperlinX?

• What would keep you at PaperlinX?

Verbatims - Key issues at PaperlinX?

The most common issues that were discussed included:

• Industry Factors (41%) which included diversifying the business, growth, moving away from traditional paper markets, the declining market and economic conditions

• Accountability and Delivery (21%) around poor execution of strategies and processes, a need for changed business models/approaches, poor management, stronger communication and change management

• Financial Performance (18%) particularly returning the business to profit, securing cash flow and improving working capital

• Structure and strategy (13%) which included clarity over decision making and structure across the Group, clarity of direction, too bureaucratic with an inability to make a decision at the local level without consulting the group and the integration of Operating companies, countries and regions

• Retention and attraction (7%)

Verbatims - Why join PaperlinX?

The most reasons for joining PaperlinX included:

• The Role (38%) including it being seen as a growth opportunity, challenging role, the role suited personal ambition and the individual was brought in for the skills they could bring to the role

• Acquisition (35%) i.e. they had not joined PaperlinX but rather an Operating Company who was acquired by PaperlinX

• The Company (24%) including the potential success of PaperlinX, the global nature of the business, the reputation and the size of the business and;

• The People (3%) good people and believing in the manager

Verbatims - Why stay at PaperlinX?

The most common reasons for PLG members to stay so far included:

• Challenge and Growth (33%) including the continual opportunities to be challenged and advance

• People and Culture (33%) including the people, the individuals colleagues and managers, the culture, remuneration, support of managers and work-life balance

• The Business (19%) including liking the company, faith in the business, loyalty and it being a global company

• The Role (14%) including enjoyment in the role, variation of roles and the job is not finished

• No viable alternatives (3%)

Verbatims - What would keep you at PPX?

The most common reasons that would keep PLG members at PaperlinX into the future included:

• People needs (39%) including rewards & recognition, the remuneration, strong culture, good people/management, work-life balance, change in role and job satisfaction

• Promotion and Career Advancement (23%)

• Business Success (19%)

• Improved delivery of the business (19%) including change in business approach, clearer strategy, improved communication, confidence in the business & change in personnel

So what does this all mean?

• Improving communication, leadership, embedding of the values and managing work life balance appear to be most pressing issues for attention for 2011

• Change management continues to be a issue for leaders and the business

• Limited perceived career opportunities could pose retention problems in the long run

• The “fun” factor needs to return

• Disconnect between PaperlinX and the individual

• I perform well but question if PaperlinX will be successful

• I communicate to my team but question whether PaperlinX shares ideas well and communicates sufficiently

• I put in above and beyond what is required and as such believe we are under too much pressure with a limited work-life balance

• I care about our team but question PaperlinX’s commitment to caring and as such feel PaperlinX is losing good people

Regional Results Dashboard

Topics ANZA (%)Europe

Region 1 (%)Europe

Region 2 (%)

Europe Divisional Office (%)

North America

(%)

PaperlinX Group

Office (%)

PLG 2010 (%)

PLG2008

%

Contribution & Recognition

70% 81% 82% 67% 87% 72% 80% 81%

PaperlinX Values51% 63% 57% 37% 68% 51% 59% 62%

Behaviours 78% 82% 79% 63% 86% 74% 83% 88%

Culture 88% 82% 89% 89% 87% 88% 88% 86%

Leadership 70% 64% 67% 57% 74% 69% 68% 71%

Communication 68% 65% 59% 63% 75% 72% 68% 66%

Development 65% 64% 62% 44% 77% 59% 66% 69%

Rewards 70% 64% 63% 64% 78% 77% 70% 75%

Satisfaction 51% 49% 46% 46% 64% 64% 59% 62%

Business Strategy

83% 83% 78% 64% 91% 79% 83% 83%

OVERALL 69% 70% 68% 59% 79% 71% 73% 74%