Change Agents Why your Transformational IT Initiative Will Fail Without Them Terri Campbell Sr. Director of Change Leadership

Today’s Conversation Today’s objective Increase awareness of the movement from Super User to Change Agent the critical role our Change Agents play in transforming the business on major IT implementations Why? So business can prepare a NEW CULTURE, new processes and new organizational roles to ADOPT new solution and realize the return on investment McKesson’s Historical Relationship with Business Strategy and IT Investment Are Businesses Ready for HANA? Managing The People Side of Change Critical Success Depends on our Change Network Q&A 9/20/2018 McKesson Corporation Confidential and Proprietary

McKesson at the Center of Healthcare Delivers pharmaceuticals to retail pharmacies and institutional providers like hospitals and health systems. Supplies pharmacy management software systems to more than 8,000 locations across the U.S. Pharmacies Manufacturers Payers Consumers Providers Provides software, automation, services and consulting to hospitals, physician offices, imaging centers, home health care agencies and payers. Confidential | For internal use only

Business Strategy Relationship to IT Investment Mergers Program Implementations Technology Launches & Acquisitions Organizational Transformation Work Your Way 9/20/2018 McKesson Corporation Confidential and Proprietary

Are Businesses Ready for HANA? A few Value Propositions Culture Context Real Time Decision Making “IT Infrastructure implementations require cultural shifts to achieve expected benefits from technical and process changes.” “As incremental design and culture changes are implemented within impacted business areas, it will be critical for Executive Leadership to define and communicate organization-wide design and culture expectations”. Accelerate Business Performance Improve IT Efficiency Culture Attributes to Leverage Analysis orientation rather than transactional Process Orientation: Discipline, measurement and incentives tied to key processes. Business Productivity Place a high value on Collaboration Interactions (across functions and sites) 9/20/2018 McKesson Corporation Confidential and Proprietary

Change Leadership: Managing the People Side of Change We accelerate business results through the discipline of managing the people side of change Accelerated ROI delivery WITH CHANGE LEADERSHIP UNDERSTANDING ACCEPTANCE ADOPTION SUSTAINMENT AWARENESS Speed of alignment Speed of adoption The Change Leadership Effect How do we know if our change efforts are working? Our employees are performing as required by the initiative The project is a measurable success Our employees are engaged and committed to the change 9/20/2018 McKesson Corporation Confidential and Proprietary

Change Leadership: Managing the People Side of Change We accelerate business results through the discipline of managing the people side of change WITH CHANGE LEADERSHIP UNDERSTANDING ACCEPTANCE ADOPTION SUSTAINMENT AWARENESS Risk without change leadership Operational Errors Confusion Sub-optimization 7 9/20/2018 McKesson Corporation Confidential and Proprietary

Change Leadership: Integrated Services Support Program Lifecycle Feasibility Sustainment Planning Implementation Define Design Build/ Test Deploy/ Warranty Sustain What We Do Establish the foundation Identify specific ways in which the business will be - Broaden business engagement across impacted areas Develop and execute targeted action plans Facilitate business readiness and provide the guidance and support Establish processes and mechanisms within the business to Change Leadership Delivery What We Deliver Change Program Design Change Program Management Governance / Sponsorship Plan Governance / Sponsorship Support Stakeholder Analysis Stakeholder Engagement Plan Change Network, Super User & Business SME Engagement Change Impact Assessment Business Readiness Assessment Communication Planning Sustainability & Transition Planning Cutover & Transition to Steady State Communication Development & Delivery Training Needs Assessment Training Planning Training Development & Delivery 9/20/2018 McKesson Corporation Confidential and Proprietary

Change Leadership: Change Network In order to be successful, a Change Network must be Designed, Built and Implemented SPONSORSHIP OWNERSHIP Steering Committee Process Committees/Key Business Owners Process Owners Local Sponsors Site Champions Advisory Councils (Change Agents) Super Users Project & Extended Team Governance / Sponsorship Plan Stakeholder Engagement Plan

People Change Requires Culture Consideration Key Takeaways People Change Requires Culture Consideration From transformational to smaller changes– what behaviors do you need Change Agents Are champions of the technological, business process and culture changes, and capable of leading them Super Users Have contributed to successful transitions and possess the necessary capabilities to effectively lead in the new environment Move Super Users Upstream Increases effective contribution to design, influents in leading cultural change 9/20/2018 McKesson Corporation Confidential and Proprietary