Augustin Melendez - Eastman Kodak Company, Speaker at the marcus evans HR Summit Fall 2011, delivers his presentation on Why Employee Engagement Matters in Kodak’s Diversity and Inclusion Worldwide Strategy

1. HR Summit
Oct. 17-18, 2011
Augustin Melendez
Chief Diversity & Community Affairs Officer
Vice President
Eastman Kodak Company

2. Today‟s topics:
Kodak – Our Journey of Innovation and Change
Management experience
Transformation as an Enabler of Diversity
Employee Engagement‟s role in Diversity &
Inclusion in our global organization
 Your Questions and Answers
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3. Transformation
 1880-2002: Kodak is the world‟s leader in imaging (sensitized
materials: films, paper, cameras, graphics products)
 2003: Kodak begins “seminal transformation” from film/chemistry
business to digital imaging and printing
- four-year business transformation
 At the core: 10,000+ patents: digital imaging, nanotechnology, inkjet,
electrophotography, microprinting, thin-film technologies
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4. Kodak People
 1980s: Kodak had 120,000 employees globally, 60,000
in U.S.
 Today: ~18,000 employees globally, ~8,000 in U.S.
Non-U.S. U.S.
Employees Employees
49% 51%
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5. A Look at Kodak‟s Milestones
Digital Imaging
1st Digital Camera Affordable Ink Revolutionary Inkjet
Imaging
Document Management Color! Easy-loading
Photography
Roll Film X-ray Printing Affordability
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6. Today: Unleashing the Power of Intelligent Imaging
Kodak products touch about 40% of the world's
commercially printed pages.
About 45 million pictures are captured daily with
Kodak digital cameras or film.
More than 100,000 Kodak kiosk order stations
are in stores worldwide.
KODAK Gallery has 75 million members;
manages more than five billion images.
Over the history of the Academy Awards, the majority of
Oscar-winning movies have been made on Kodak film.
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7. Our Portfolio: 2010 Revenue = $7.2 Billion
Graphic Consumer Film,
Communications Digital Photofinishing &
Entertainment
Digital Printing Solutions Inkjet Systems Entertainment Imaging
Inkjet Printing Solutions
Electrophotographic Printing Solutions Digital Capture Traditional Photofinishing
and Accessories
Prepress Solutions Industrial Materials
Offset Solutions Retail Systems Solutions
Packaging Solutions
Film Capture
Kodak Gallery
Business Solutions
and Services
Document Imaging
Unified Workflow Solutions
Kodak Services for Business
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8. Our Strategy
Leverage our competitive advantage at the intersection of
materials science and digital imaging science
 Large markets in need of
transformation offer great growth
opportunities for Kodak
 Higher margins are driven by expanding A Profitable and Sustainable
consumables and services
Digital Company
 Our strength comes from our unmatched
combination of IP, deposition
processes, image quality, and brand
relevance
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9. Our Opportunity: Large Markets
Extending into new addressable markets and increasing market share
Enterprise IT Enterprise
Branded Goods
Printing & Packaging
Document Mgmt $237B
$75B
Small
Business Consumer & Commercial
Consumer graphics products &
Markets integrated solutions
Digital Commercial
Imaging ~$110B $290B
$280B (addressed market)
Publishing
$155B
Publishing
$155B
Consumer Printing and Enterprise
Self-Publishing Marketing Spend
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10. Employee Engagement at Kodak
The Context of Employee Engagement
SAY STAY STRIVE
Speak positively about the Have an intense desire Exert extra effort and be
organization to co-workers, to be a member of dedicated to doing the
Potential employees and the organization very best job possible
customers to contribute to
the organization’s
business success
Creating an intense desire for employees to actively take
part in the successful ventures of an organization.
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11. Engagement Matters
Actively Engaged employees work with passion and feel a
profound connection to their company. They drive innovation,
move the organization forward and ultimately improve company
performance.
Non-Engaged employees are essentially „checked out‟.
They‟re on auto-pilot, going through the motions through their
workday, putting time – but not energy or passion – into their work.
Actively Disengaged employees aren‟t just unhappy at work;
they‟re busy acting out their unhappiness. Every day, these
workers‟ attitudes undermine what their engaged coworkers
accomplish.
Source: http://gmj.gallup.com 11
From: MYKodak – Engaged, Non-Engaged Toolkit

12. How leaders can engage employees’ heads, hearts, and hands:
The Ten C’s of Employee Engagement
1. Connect: show that employees are valued
2. Career: provide challenging and meaningful work
3. Clarity: communicate a clear vision
4. Convey: clarify expectations and provide feedback
5. Congratulate: give recognition
6. Contribute: help people see and feel how they are contributing
7. Control: create opportunities for employees to exercise control
8. Collaborate: be a team builder; create an environment that fosters
trust and collaboration
9. Credibility: demonstrate high ethical standards
10. Confidence: be an exemplar of high ethical and performance
standards
Source: http://www.thepracticeofleadership.net 12

13. What‟s missing?
CULTURE
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14. Global Diversity…
the degree and depth of richness represented by
the populations of people along multiple
dimensions supporting Kodak, and
Global Inclusion…
the effective engaging and leveraging those
individuals to impact the business.
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15. Our Values
Respect for the dignity of the individual
Trust
Credibility
Integrity
Continuous improvement
and personal renewal
Recognition and
celebration
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16. Cultural Variables
1. Environment
10. Thinking control/harmony/
deductive/inductive constraints
linear/systematic 2. Time
Single- focus/ multi -focus
fixed/fluid
past/present/future
9. Structure
order/flexibility 3. Action
being/doing
Cultural
Orientations
8. Competitiveness
4. Communication
high/low
competitive/cooperative direct/indirect
expressive/instrumental
formal/informal
7. Individualization 5. Space
private/public
individualism/collectivism
universalism/ particularism 6. Power
hierarchy/ equality
-3-547-2118
Source: Brake & Walker,
Doing Business Internationally 16

17. How do we define diversity and inclusion?
 Diversity: acknowledging, understanding, accepting, valuing, and
celebrating differences among people with respect to age, class,
ethnicity, gender, physical and mental ability, race, sexual orientation,
and spiritual practice.
 Everyone counts!
 Inclusion: An inclusive environment in which we leverage diversity to
achieve company business objectives and maximize the potential of
individuals and the organization.
 If we do this right, we:
 Fully engage energies of Kodak's
employees
 Meet competitive challenges in the
marketplace
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18. “When we gather people with diverse backgrounds,
we invite different viewpoints and ideas. This triggers
creativity, innovation and growth – all essential for Kodak’s
success in the 21st century.”
-- Kodak CEO Antonio M. Perez
Antonio’s Four Strategic Corporate Policy Priorities:
 Grow Digital Growth Initiatives
 Positive Cash Generation Before Restructuring
 Customer Centricity
 Employee Engagement, Diversity and Inclusion
How we get there:
Starts and Ends with Leadership
• Sets the tone and expectation for Excellence
• Models diversity and inclusion from top to bottom
• Effective Leadership critical during lean economic times
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19. Global D&I Priorities Business
D&I Outcome: Outcome: Metrics
MyKodak
Globally Inclusive Inclusive Work Growth & Survey;
Culture/Workplace Environment Innovation Employee Touch
Points
Diverse Markets Inclusive Customer Market-share
Marketplace Satisfaction ROI
Knowledge &
Skill Best Talent; High Achieving ACP;
Development for Engaged Workforce Performance Training Metrics
Global Inclusion
Global Diverse Diverse hiring;
population Cross-cultural Workforce Retention;
reflects
Workforce reflects Representation
appropriate
Demographics Marketplace
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20. 1. Managing diversity for a global organization:
10,000-foot view
 Inclusion and diversity strategy aren‟t always translated
globally. Different regions have different needs.
 We need the best thinking, insights that a diverse workforce
provides.
 We need to understand, recognize and respect the
perspectives and customs of our customers and partners
throughout the world.
 As we grow in global markets, we all are accountable for treating each other –
our customers, our business allies, and our
community partners – with dignity, fairness,
and respect.
 Managing diversity is more than
acknowledging differences in people.
We also must recognize the value of their
differences, combat discrimination, and
promote inclusiveness.
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21. 2. Managing diversity: 1,000-foot view
 As Kodak changed and grew smaller, refined our Global
Diversity & Inclusion focus to reflect the company‟s
changes – but kept focus on inclusion and engagement.
 Developed global inclusion strategy, messaging and
training tools that are integrated with HR engagement
structure.
 Global Diversity & Inclusion Council – 2011
 Jean Lewis - regional APR global inclusion
manager based in Mumbai, India
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22. Asia-Pacific Region (APR) Council
1 Study of External Research Available
2 Compilation of APR Demographics
3 Formation of APR Council
4 Administer an APR Employee Survey
5 Employee Communications
6 Discussion with GDIC and APR Leaders
7 Engage Strategy & Tactics (2012)
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23. Asia-Pacific Region (APR) Employee Survey
 Purpose:
 Identify our strengths and challenges with respect to Inclusion and Engagement.
 Design future activities for enhancing our Inclusion and Engagement efforts in APR
 Design:
 16 Questions based on 3 areas: Diversity, Inclusion and Employee Engagement
 Languages: English, Chinese, Japanese, Korean
 Respondent Size
 40% employees across all divisions in APR based on random sampling
 Data Collection/Analysis
 Response through on-line anonymous survey/statistical evaluation tools
 Results:
65% Response Rate
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24. 3. Managing diversity: At the front line
ACT 2011 –
Senior Leader Diversity & Inclusion Accountability/Scorecard
Workplace: • Non-U.S. Women
• Build inclusion & engagement Executives
globally • U.S. Supervisory inclusion • Global Women GOLD
Marketplace: training Pipeline
• BU/Region Diverse Markets • Global Supervisory inclusion • WOC Initiative (U.S.)
• Supplier Diversity and engagement training • U.S. Exempt Job Groups
Leadership commitments - few key focus areas
Confidential 24

25. Diversity & Inclusion Governance Structure
New
Global Diversity & Inclusion Council New
BU/Regional /Functional Representation
Co-Chair, Gustavo Oviedo / Co-Chair, Augustin Melendez
EAMER APR Americas
Council Council (pilot) Council
New: Jean Lewis
China APR D&I Mgr Brazil
United Kingdom
Germany India Mexico
Russia Japan Canada
Poland SE Asia United States
Dubai ANZ
Korea
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26. More diversity & inclusion outreach
 Community Affairs – engaging more Kodak people in
working with diverse constituencies; external relations
 Women of Color initiative – identifying and sponsoring
high-potential women of color (globally) to help develop
skills, acumen to become our next generation leaders
 Executive engagement – CEO
meets with each diverse
constituency to discuss ways
they can become engaged
in the company‟s renaissance.
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27. Employee Networks & Engagement
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28. My Kodak SurveyHR Survey
 Top Management is taking the right actions to successfully
transform Kodak.
 My work is important to the direction this company is taking
 Kodak is winning with its customers with great new products and
services
 My work environment promotes enthusiasm
 I am proud to say I work for Kodak
 I have had an opportunity to participate in a discussion of last
quarter’s MyKodak Survey results.
 I have had a chance to hear about the company’s strategy from a
leader(s) in my organization.
 I understand the company's strategy.
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29. Goals for diversity, inclusion, and engagement
 Diversity & Inclusion is a journey, not a destination. So
the destination keeps moving!
 Aspire to an environment and enterprise where we all
Respect the diversity of others.
Bring integrity to everything we do.
Be trustworthy.
 Never stop learning.
 Celebrate achievements of others
 Give back to others. Create opportunities for those
who follow.
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30. Summary / Key Learnings:
Kodak‟s Journey of Innovation and Change
Diversity Focus a Key Enabler of our
Transformation
Employee Engagement role in Shaping our
Diversity & Inclusion Strategy Globally.
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31. Questions and Answers

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