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ITW’s Enterprise Strategy at Work

Engagement at ITW Presented at The Employee Engagement Forum, Alexandria, VA

April 30 – May 1

ITW’s Enterprise Strategy at Work

Agenda

● Brief overview of the U.S. employee engagement landscape

● Company overview

● Keys to ITW Success

● Engagement within our United Way Campaign

2

ITW’s Enterprise Strategy at Work

Recent U.S. Employee Engagement Trends

3

Source: State of the American Workplace: Employee Engagement Insights for

U.S. Business Leaders, Gallup, Inc., 2013

10 years or more

3 years to less than 10 years

6 months to less than 3 years

Less than 6 months

12%

14%

12%

8%

42%

42%

44%

40%

46%

44%

44%

52%

Engagement Levels, by Tenure

Engaged Not Engaged Actively Disengaged

ITW’s Enterprise Strategy at Work

Traditionalists

Baby Boomers

Generation X

Millennials

15%

23%

19%

14%

44%

50%

53%

53%

41%

26%

28%

33%

Engagement Levels, by Generation

Engaged Not Engaged

Actively Disengaged

More Employment Trends

4

4%

44%

44%

8%

Percentage of Each Generation in Today’s

Workforce

Traditionalists Baby Boomers

Generation X Millennials

ITW’s Enterprise Strategy at Work

Traditionalists

Baby Boomers

Generation X

Millennials

15%

23%

19%

14%

44%

50%

53%

53%

41%

26%

28%

33%

Engagement Levels, by Generation

Engaged Not Engaged

Actively Disengaged

More Employment Trends

5

4%

44%

44%

8%

Percentage of Each Generation in Today’s

Workforce

Traditionalists Baby Boomers

Generation X Millennials

ITW’s Enterprise Strategy at Work

Traditionalists

Baby Boomers

Generation X

Millennials

15%

23%

19%

14%

44%

50%

53%

53%

41%

26%

28%

33%

Engagement Levels, by Generation

Engaged Not Engaged

Actively Disengaged

More Employment Trends

6

4%

44%

44%

8%

Percentage of Each Generation in Today’s

Workforce

Traditionalists Baby Boomers

Generation X Millennials

ITW’s Enterprise Strategy at Work

Traditionalists

Baby Boomers

Generation X

Millennials

15%

23%

19%

14%

44%

50%

53%

53%

41%

26%

28%

33%

Engagement Levels, by Generation

Engaged Not Engaged

Actively Disengaged

More Employment Trends

7

4%

44%

44%

8%

Percentage of Each Generation in Today’s

Workforce

Traditionalists Baby Boomers

Generation X Millennials

ITW’s Enterprise Strategy at Work 9

Oh, look. Treasures!

Engaged Employees

ITW’s Enterprise Strategy at Work 10

What no treasures?

Employees Not Actively Engaged

ITW’s Enterprise Strategy at Work 11

They are essentially being paid to adversely affect the company

Disengaged Employees

Gallup estimates that

active disengagement

“costs the U.S. $450

billion to $550 billion

per year”.

ITW’s Enterprise Strategy at Work

Cost of Disengagement

12

Customer ratings

Profitability

Productivity

Safety Incidents

Shrinkage

Abseentism

Patient safety incidences

Quality (defects)

In a meta-analysis, Gallup confirmed a “well established

connection between employee engagement and nine

performance outcomes”, which include:

ITW’s Enterprise Strategy at Work 13

ITW’s Enterprise Strategy at Work

Illinois Tool Works (ITW)

14

A FORTUNE 200

global industrial

manufacturer of

value-added

consumables and

specialty equipment

with related

service businesses

Headquartered in

CHICAGO,

founded in

1912

with an initial focus

on metal cutting tools

14

Highly DECENTRALIZED

organization

OPERATING UNITS IN

56 COUNTRIES

51,000 EMPLOYEES

10,000 ACTIVE PATENTS

ITW’s Enterprise Strategy at Work 15

ITW’s Enterprise Strategy at Work

Know Who We Are and

What We Stand For

ITW’s Enterprise Strategy at Work

Offer Avenues For Engagement Matching

Gift

Scholarship

Programs

Volunteer

Recognition

Networks and

affinity groups

‾ Women in

Finance

‾ Young Leaders

Career

development

tracks

‾ Emerging

Leaders

‾ Early in Career

Career Development

• Emerging Leaders

• Early in Career

Network & Affinity Groups

• Society of Women Engineers

• Young Leaders

Wellness Programs

Matching Gift

Scholarship Programs

Volunteer Recognition

ITW’s Enterprise Strategy at Work

Talk About It, Like All the Time

● Talking points developed for ELT

● On the agenda at Town Halls

● Use as many available avenues as we can – i.e. digisignage, print, intranet

● Work with Communications team to launch campaigns, offer promotions, provide

updates

ITW’s Enterprise Strategy at Work

The Right People Talking About (Like All the Time)

ITW’s Enterprise Strategy at Work

What They’re Saying (All the time – See, you’re

catching on!)

ITW’s Enterprise Strategy at Work

Community Investments

as a company we invested

here:

Because of

Communities where we live and work

ITW’s Enterprise Strategy at Work

Campaign Engagement

0 50 100

52% of the campaigns qualified

for an enhanced Corporate

Match

313 Campaigns

537 ‘s Supported

15,114 employees got involved

125 retirees participated

ITW’s Enterprise Strategy at Work

Preguntas?

24

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