Management Team Meeting Context for our Work

26July2016

FY2016 Accomplishments

We Need Context from Our Complexity

• New YPO strategy • Lifelong Learning Initiative • All member survey

• FY16 Accomplishments and work underway

• Renewal rates and statistics • Management Team Survey • Role Clarity and Organization Definition

• Continuing work on our IT platforms

• Unexpected & Unplanned Issues

• 454 Chapter Exec Committees • 13 separate YPO & YPO Gold Regions

• 2 Integrated Regions • 2 Chapter/Region Councils: YPO & YPO

Gold • 55 Network Exec Committees • 4 Network Councils • >160 Active Group Administrators • 6,800 Event Chairs/Committees • 3,800 Forums • YPO Board and its 14 committees

20% higher than other organizations

94-95%

Member renewal rates

COMMITTED

5% GROWTH PER YEAR

25,000 MEMBERS

130 COUNTRIES

454 CHAPTERS

GROWING

Members who volunteer each year as champions

40%

ENGAGED

More than USD100 million Financial turnover and

strong financial reserves

STRONG

Diverse industries. Ages from 24 to 96.

All life and business stages.

COMPREHENSIVE

1. Membership renewal rates are high and remain high. So far, tracking ahead of last year.

2. High transition rates from Y to YGold (90%)

3. There is deep equity in the YPO brand. 4. Members intend to continue in YPO for the next

three years. 5. Span of membership across 133 countries 6. Increasing appeal for women members 7. Spouse/partners more satisfied than members 8. Key investments in membership development and

IT underway 9. Strong financial position

1. Member satisfaction is declining, though still high on an absolute basis

2. Members overall are less happy with the value they perceive for international dues. Members outside the US are even less happy.

3. Members do not intend to dedicate more of their time to YPO (but not less either.)

4. Technology improvements are needed (and underway)

BalancingtheYPOWellnessBooks

LookingGood… NeedsAnotherLook…

Strategy for Lifelong Leadership and Learning

Strategy for Lifelong Leadership and Learning

Implementing across four themes:

1. Going to market and operating as a single organization to serve our members directly and through their chapters & regions, networks and direct-to-member.

2. Moving from an old school education view to a current learning view

3. Committing to delivering a lifelong journey for our members

4. Aligning and simplifying our member leadership structures to deliver the intentions of our strategic framework.

YPO is a Platform for Member Engagement

– While we do provide services and products, YPO’s primary role is to be a platform for the members to engage each other.

– As defined in the strategic framework: – “Members fundamentally improve themselves, their businesses, their

families and the world by harnessing the knowledge, influence and trust of the most important business leaders across the globe.”

– “The peer-to-peer experience is founded in open sharing of different perspectives, in which members embrace their differences with mutual respect.”

– “YPO provides a platform for members to access local and global opportunities.”

YPO is Simple … Really!

CreatingthePlatform

1.NurtureacommunityofYPOpeers

2.Createasafeenvironment

3.Createopportunitiesformemberstogatherandconnect(local&global)

4.Stimulatelearningandideaexchange

PurposetohelpmembersbecomeBetterLeadersthroughLifelongLearningandIdeaExchangetm

CorePrinciples

- Communityofpeerleaders

- Platformforlifelonglearning&ideaexchange

- Safehavenculture

- Uniquelypersonalexperience

EngagementChannels

ChaptersandRegions

Networks

Direct-to-YPO

Member-to-Member

YPO Organization Shifts Underway

Age based focus ….................... Interest based focus

Anecdote-based reasoning ….... Data-driven reasoning

Traditional Set plan and design Agile prioritization & alignment Members self-serve …............... YPO helps-serve

Task orientation …...................... Relationship orientation

Collaboration activity …............. Measurable Outcomes

Management as order-takers …. Strategic implementers

From this … To this …

Themes of Emphasis Ahead

1. Protect and enhance the core principles of the YPO platform 2. Harness the global network for the relevance of each member:

– Organize content based on interests and accessibility instead of age – Nurture one-to-one connections, beginning with mentoring – Apply technology, data and insights for members to be aware and

access relevant content 3. Be truly global and diverse 4. Clarify member experience and value as a champion

YPO strategy documents are available on the Exchange ypo.org/leadershiplearninglifelong

• Strategy Narrative • Strategy Framework • Mission and Principles • Governance GCODE • Global Brand Identity • Strategy Implementation Plan • Strategy Rollout Presentations • Frequently Asked Questions

Strategy for Lifelong Leadership and Learning

Alignment and details of the new strategic framework

FY17 Priority Plan Initiatives

Apply systems for lifelong learning and member relevance

o Develop 3 year Lifelong Learning execution roadmap o Implement CRM usage and adoption and Analytics

Platform within CRM o Call every member and update member profiles in

Exchange/CRM for enhanced member connection and improved communication

o Pilot and apply segmentation messaging of member communications

o Simplify and Coordinate Marcom Partner Support o Facilitate one to one learning between members through

the peer mentoring program

Align member leadership & strategy o Socialize strategy across the organization o Integrate member value for dues messaging o Implement P & P Changes o Committee realignment and resulting strategies o Implement new naming for chapters and member

categories o Board composition review ** o Update and align YPO brand assets

Operationalize & implement key strategies o Events Strategy - creating event definitions and a flagship

calendar/event model to build out a five year plan o Define and begin to implement Networks 2020 o Implement the Forum Strategy

Focus areas for organization improvements & stewardship o Continue of the membership development pilots o Chapter Criteria Review ** o Risk assessment review ** o Develop and define next phase technology plans and value metrics o Introduce a succession planning tool including manager training to

map the mid-level management o Ensure ongoing strategy follow up

**DenotesboardRoadmapitem

Interest-based - Ranking of Learning Opportunities

YPO Platform Drives Membership Value

PercentageofMembersIndicatingOfferingasVeryorExtremelyValuable

Our One Team Journey Let’s Talk About Us …

Management Team Role in the Strategy

“Our management organization drives all strategic implementation with members' guidance and will be a worldwide, multi-cultural organization reflecting our member needs and geographies. It will be a customer-centric organization that most effectively implements the direction and policies established by members using reliable technologies and people systems.” – Professional management & workplace – Analyze alternatives and recommend path for approval – Implement plans and Policies & Procedures – Perpetuate and Protect the YPO Platform – Leverage the scale of YPO for the benefit of each member – Report to Board of Directors

“Ecosystem” of Support for Each Channel of Engagement

Chapters and Regions

Networks

Direct-to-YPO

Member-to-Member

Member Spouse/Partner

Children

TheYPOBoard,committees,departments,champions,managementteamandcontractorsallcombinetocreatean“ecosystem”ofsupportthrougheachofthenon-competitivechannelsofmemberengagement.YPOscalesaroundtheglobethroughitsPoliciesandProcedures,StrategyFrameworkandtheconnectivityamongitsmembers.

Management Team Highlights

1. YPO is undergoing incredible change and transformation

2. Strengthening its culture and has raised performance expectations

3. The management team is growing in their professional careers. 4. Established Executive Success Framework & tools for people to be

in charge of their own journeys 5. People want to stay with YPO – and are developing by moving to

new internal opportunities 6. Change & transformation bring stress and some uncertainty for which

we are starting to see the impact through our 3rd annual engagement survey

7. We have more work to do

YPO score 59 -5

This score has decreased by -5 points since the previous survey.

YPO Management Team Member Survey 2016 - All Respondents

FY16 Overall Custom Insight Engagement Index Score

Management Team Benchmark SurveyTop Quartile Strengths Outweigh Bottom Quartile Weaknesses

Empowerment & Autonomy

The work I do makes a difference

Stress & Workload amount of work & pace of work

Spirit of cooperationValues ideas & opinions

Trust

Purpose & Direction

Accountability

Respect for Management

Leadership & Motivation

High Performance StandardsOpportunities for Growth Follows thru on commitments

Encouraged to solve problems

Teamwork

Of74attributes,YPObenchmarked≥75%in25and≤25%in3.

What Matters Most to Engaged Team Members

1. Our senior leaders demonstrate strong leadership skills. 2. My manager helps people develop passion for their work. 3. Everybody is treated fairly at YPO. 4. YPO respects its management team members. 5. It really feels like everybody is on the same team at YPO.

FY16 Engagement, Alignment and Competency

Engagement with "The Organization"DISENGAGED ENGAGED

26% 29%average average

Strategic AlignmentNOT ALIGNED ALIGNED

19% 36%low high

Engagement with "My Manager"DISENGAGED ENGAGED

15% 46%low high

Competency (Upward Feedback)MOTIVATE RELATE EXECUTE

78th 79th 81st%ile %ile %ile

YPO Management Team Member Survey 2016 - All Respondents

Average/typicallevelsofengagementareintherangeof25%-35%.Average/typicallevelsofdisengagementareintherangeof20%-30%.

FY1472nd74th75th

FY1576nd79th80th

FY1514%47%FY1518%36%

FY1515%35%

Role Clarity & Allocation of Management Team

Team’s Top Motivators

Flexibleloca+ons(abilitytoworkremotely)Flexibleworkschedule

Rela+onshipswithpeersand/ormembers,spouses/partnersandYNGersDegreeofautonomyandcontrolinmywork

Compensa+on/BonusesWorkingwithmembers,spouses/partnersandYNGers

Professional/skilldevelopmentYPO'spurpose/mission

Leadership/MyManagerTravel/OnlyinYPOexperiences

Recogni+onCareeradvancementWork/lifeintegra+on

Time-offOther(specify)

InternalCommunica+ons

0% 15% 30% 45% 60%

0%3%

7%7%8%

11%14%

16%16%16%

20%23%

26%32%

40%58%

Engagement Index by Role

Trends in Hiring & Positions Filled

0

25

50

75

100

FY14 FY15 FY16

InternalHire ExternalHire TotalHire

97

39

20

53

24

44

1520

39

97

What can be done to increase the level of fairness at YPO?

Notablecommentsmentioning:- Experience- Favoritism- Policies- Fairness- Hiring- Advance- Expectations- Compensation- Structure- Title- Clarity- Promotion- Advancement- Transparency

Stress and Workload ScoresPE

RCEN

TILE

0

25

50

75

100

MyjobdoesnotcausestressoranxietyinmylifeThepaceoftheworkatYPOenablesmetodoagoodjobTheamountofworkIamaskedtodoisalwaysreasonable

2720

Median(AllCompanies)

Lastyear25%13%6%

Organization Initiatives in Progress

– Sharing Engagement Results by Department – Work/Life Coaches for team members based upon interest – Skip level meetings – Prioritization and escalation training sessions (Executive Success Framework – Change to travel policy – Introduction of a Luggage Reimbursement policy – M2Mx for team members now and post Salesforce go-live – Planning: Mondays/Friday scheduling and time-off – Email protocol – Gratitude – celebrating milestone anniversaries – Engagement Champions for each department

We have a clear path. If we can liberate ourselves, we can see a bright future ahead …

1. Help make better people to make a better world … businesses, communities and families

2. Commit to and trust the YPO platform. Relationships are growing in importance.

3. Drive professional & personal growth … empowerment, autonomy, mastery 4. Unlock the wisdom of the community with one-to-one relevance 5. Apply technology to drive individual interests and focus on value 6. Be more “Millennial” friendly as a platform for the future 7. Be more agile. 8. Decentralize. Align on direction and drive decisions and actions for local impact 9. Have more fun

Thoughts? Questions?