1. Transformational Leadership November, 2013 Andrew C. Sekel, Ph.D.

2. Proprietary and Confidential. Do not distribute. Today’s Agenda, Transformational Leadership What is it ? Becoming a transformational leader Leading a large scale transformation 45 minute presentation, 30-45 for Q&A 2

3. Proprietary and Confidential. Do not distribute. My Background Started in behavioral health at age 21 as a teacher at an RTC Masters in Special Education Ph.D. in Counseling Psychology Eleven years as faculty, staff and clinician Ten years as a clinician and entrepreneur Eleven years as and executive at Centene and UHG Currently CEO of Optum Specialty Networks XXX 3

4. Proprietary and Confidential. Do not distribute. Transformational Leadership First use of term was by James Burns in 1978 Leaders and followers help each other to achieve higher level of morale and motivation. My view: Transformational leadership, changes the culture of an organization to create alignment with organizational vision and mission, and improves performance beyond expectations. Creates an environment of shared responsibility (team sport) Create a culture of trust, respect and community Promotes actions that support the organization rather than individual interests Promotes a deep sense of purpose 4

5. Proprietary and Confidential. Do not distribute. Qualities, Values & Actions of Transformational Leadership Compare and Contrast Leading from the front Leading from the back Acting with integrity Spinning Being honest and consistent Bending the truth Promoting the vision and mission of the organization Confusion about vision and mission Identifying and leading the solution of complex problems Ignoring or putting off Promoting coaching and professional development Viewing employment as a financial/labor exchange Requesting and using feedback Believing you know 5

6. Proprietary and Confidential. Do not distribute. Engaging Individuals Coaching, development planning Being accessible Encouraging and managing different views Understanding the power of your words Identifying goals and accountabilities 6

7. Proprietary and Confidential. Do not distribute. Engaging the Organization Support a developmental and maturing culture Focus on execution Inspire others Focus teams Make decisions and be accountable 7

8. Proprietary and Confidential. Do not distribute. Moving Forward as an Organization Building and refining mission and vision Building relationships Over communicating Resolving complex issues Facilitating change Making and monitoring plans XXX 8

9. Proprietary and Confidential. Do not distribute. Transforming an Organization “There are three mutually reinforcing elements that define fair process: engagement, explanation, and clarity of expectation…Whether people are senior executives or call center employees, they all look to these elements.  Engagement means involving individuals in the strategic decisions that affect them by asking for their input and allowing them to refute the merits of one another’s ideas and assumptions. Engagement results in better strategic decisions by management and greater commitment from all involved to execute those decisions.  Explanation means that everyone involved and affected should understand why strategic decisions are made as they are. An explanation allows employees to trust managers’ intentions even if their own ideas have been rejected.  Expectation clarity requires that after a strategy is set, managers state clearly the new rules of the game.” 9

10. Proprietary and Confidential. Do not distribute. A Model For Managing Transformation, Four Critical Issues Purpose Why are we making the change Picture What does the future look like Plan How do we get there Part What is your part/role 10

11. Proprietary and Confidential. Do not distribute. Sample Communication Assessment 11 Communications VehiclesCurrent Way Receive Information (check all that apply) % of ‘EEs “Greatly Preferred Way” to Receive each Communication Vehicle, compared to “Somewhat Prefer” or “Do Not Prefer” % of ‘EEs The Transformation bi-weekly newsletter57%50% Inside OptumHealth39%33% Town Halls35%43% Direct emails53%63% Team meetings44%68% 1/1s with my manager23%47%

12. Proprietary and Confidential. Do not distribute. Everyone Together 12 Actively Engage People in the Change Explain the Changes Look for real opportunities for people to give input Use employees’ feedback where possible If employee’s input is not used, explain why Give people time to move through the change continuum Respect their feelings of loss and excitement with new ways of working Remember we are building our culture Communicate in a clear and straightforward manner Provide balanced messages (allowing for inspiration as well as clearly speaking to challenges) Show that leaders understand how significant it is to move towards future state both from a “what” we will do differently, and emotionally) Listen as well as tell Develop/apply and share milestones and metrics for success Train so people are successful (technical and soft skills) Recognize achievement in new skills – kudos, team meetings, 1:1s, Spot Awards, etc Explain the Changes Provide Expectation Clarity

13. Proprietary and Confidential. Do not distribute.