Leading the transition of your shared services activities to an outsourcer can be an exciting yet daunting project, but also a sad time as many of your SSC staff will be made redundant. In this session, Michelle Adams will prepare you well for this journey by sharing how to: • Attain business as usual in just a few months • Handle the motivation of outgoing staff to transfer knowledge to your outsourcing partner • Set up the right governance structures to ensure your business units’ needs are addressed and SLAs are being delivered

1. Smoothly passing the baton
from captive to outsourced
service delivery in just a
few months
Michelle Adams – European Service Delivery Director
Judith Morris-King – Global Process Expert
14th March 2012
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2. What you will get from this presentation
1. Introduction to AZ & Project Bridge
Journey
2. How did we do it?
3. Key Challenges and how we overcome
them
4. How did we keep staff motivated?
5. Did we achieve what we set out to?
6. What did we learn?
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3. AstraZeneca
Global Pharmaceutical Company
14 major R&D sites in 8 countries, 23 supply and manufacturing
sites in 16 countries
We employ over 61,000 people, 47% in Europe,
30% in the Americas, 23% in Asia, Africa and Australasia
We invest over $4 billion in R&D each year
and have over 15,500 people in our R&D organisation
A 70-year track record of innovation that includes the
introduction of many world-leading medicines.
In 2010, our worldwide sales totalled $33.3 billion, with operating
profit of $11.5 billion.

4. This is what we did over 3 years
Transferred our services to be Established an
delivered out of 6 locations in in-house Shared
Genpact & 4 in AZ Service Centre
in Asia Pac
GFS EMEA &
Central
Genpact AZ, Lublin
Genpact AZ, Cluj
GFS NAM
GFS LATAM
Genpact AZ,
Rabat Genpact AZ,
Genpact AZ, Delhi GFS APBS
Guatemala
Realised our vision for
Genpact AZ,
one Global Sao Paulo
Organisation
Delivered the new transactional finance
Operating Model
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5. Why did we do it?
AZ Finance Landscape – “Before” Transition Model
Sweden
210
NA UK 530
Rest of Europe
400 330
Japan
AsiaPac 45
MEA
30 210
LatAm
210
Business Partnering
Specialist Finance
Transactional Finance
Administrative staff
Other staff
Objective of Bridge - to improve further the effectiveness of
Area totals are rounded and approximate
AstraZeneca’s finance function in driving, measuring and reporting
business performance, while simultaneously reducing the costs of the
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finance function toward external best practice levels of efficiency

6. So how did we do it?
• Overview of Project Bridge Methodology, Transition and
Work Stream approaches

7. Project Bridge Summary
Change Costs Compliance
• Transfer of transactional • $55m project which involved • We are 80% complete in
activities through a a global project team with standardising controls
combination of Business regional experts based in across all regional areas
Process Outsourcing and in- region GTF supports
House Service Centre
delivery • Significant improvements in • More efficient compliance
cash allocation and manual reporting and senior
• Reshaped how and where we invoicing on overdue credit leadership report outs
deliver our services globally card spend
• Clear control ownership
• Transitioned services out of • More than 75% of cost saving and traceability of controls
53 Marketing Companies benefits realised to date with for audit purposes
across EMEA the Americas the remainder being tracked
and Asia Pacific to completion • Genpact enforcing and
improving our compliance
• Standardised KPI reporting models
approach across all regions
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8. Global Transition Plan
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009 2010 2010 2010 2010 2011 2011 2011 2011
UK Will finish
in AZ
Turkey
Russia
Greece &
Turkey
Sweden Started in Sweden
CEE
MEA
LATAM
North America
Asia &
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India

9. How we organised ourselves.....Programme Structure
Global Finance Services - Global Programme Director
Programme Mgmt Office
Global Transition Director
Sweden UK CEE/MEA LATAM NAM
Transition Transition Transition Transition Transition
Director Director Director Director Director
SMEs SMEs SMEs SMEs SMEs Global Processes
HR
Communications
Finance & Benefits
IS
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10. Transition Methodology - Planning Toll-gates
“Plan, Execute and Completion” phases used the Tollgate approach to align to the major
milestones & service transfer to Genpact.
Preparation Knowledge Transfer
Initiate Sol ID Pilot Production Stabilisation
(Hire - Train) (and On-the-Job Training)
UAT
Planning and preparation for Service Delivery through existing
Knowledge AZ roles and staff. Complete
Transition. Contract completion
Initiate Transfer Knowledge Transfer and quality
and education. Team roles &
responsibilities agreed assurance. Commence retained
roles education and training.
Tollgate 0 UAT
Agree detailed solution for each Tollgate 3
Sol ID process. Finalise retained Service Delivery by Genpact starts.
capabilities and organisation design AZ remain accountable. New AZ
Pilot
retained organisation known and
Tollgate 1 educated.
Complete Genpact team recruitment. Tollgate 4
Prepare Genpact and AZ teams for Service Delivery through new
Knowledge Transfer. Complete service model Genpact & AZ.
Production
Preparation preparation for systems access and Service Governance operational.
arrival on-site. Commence AZ Refine and improve AZ and
retained recruitment. Define / refine Stabilisation Genpact ways of working. Benefit
AZ retained ways of working delivery underway.
Tollgate 2
10 Tollgate 5

11. Key challenges and how
we over come them

12. Preparation Knowledge Transfer
Initiate Sol ID Pilot Production Stabilisation
(Hire - Train) (and On-the-Job Training)
Challenges
Impact of late joiners to Genpact teams- knowledge and access
Front Line Manager (FLM) capabilities during training
FLM Presence, sponsorship and support
Decisions about which team members were suitable for on the job
training (OJT)
Quality of pre OJT training plans
Scoring of assessments – Genpact Vs AZ
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13. Preparation Knowledge Transfer
Initiate Sol ID Pilot Production Stabilisation
(Hire - Train) (and On-the-Job Training)
Challenges
On the job (OJT) Plans - significant amount of work for subject matter
experts (SME’s), particularly in relation to country specifics
Length of OJT period, impact of 100% Vs portion of team (particularly
Helpdesk)
Impact & pressure of workload on Genpact teams
Standard operating procedure submission & review
Front Line Manager (FLM) Quality
Assessments-teach backs Vs practical assessments
Demands placed on AZ resources
IS – Citrix Solution – use of AZ laptops
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14. Preparation Knowledge Transfer
Initiate Sol ID Pilot Production Stabilisation
(Hire - Train) (and On-the-Job Training)
Challenges
Not proactive in issue resolution
More Market dependencies
No root cause analysis on KPI misses
Lack of Communication across Genpact sites & Working in silos
Minimum sharing of best practice
AZ driving Service Governance structure & process improvement
initiatives
Attrition & effective knowledge transfer in the teams
Capability change for retained AZ teams
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15. How did we keep staff
motivated throughout
the Transition?

16. How did we keep staff motivated?
Shared Service Centre Bridge Programme Team
•Open & honest communication Judith to share her personal
journey from being a Process
•Retention Packages Manager within Cash & Bank
and then moving into a Subject
•Created excitement for change Matter Expert role (SME) on the
project.
•Embeded change in the culture
– change workshops & coaching How did she get though it all
with the uncertainty of having a
•Used people from teams in key job at the end of the project?
project roles
•Celebrated & communicated
short term wins
•Recruitment plans with new
shared service centre opening in
area

17. Did we achieve what we
set out to?

18. In 3 years we have.......
Transferred our services to be Established an
delivered out of 6 locations in in-house Shared
Genpact & 4 in AZ Service Centre
in Asia Pac
GFS EMEA &
Central
Genpact AZ, Lublin
Genpact AZ, Cluj
GFS NAM
GFS LATAM
Genpact AZ,
Rabat Genpact AZ,
Genpact AZ, Delhi GFS APBS
Guatemala
Realised our vision for
Genpact AZ,
one Global Sao Paulo
Organisation
Delivered the new transactional finance
Operating Model
18

19. What additional benefits did Bridge deliver.....
Change Costs Compliance
• Project Bridge key enabler of • SOTC – backlogs recovered • Previously limited
change through flexible resulting in $Ms cash back reporting of Fixed Assets
approach to project into the system. across any AZ Region –
management now in place across all
• Un-allocated cash reduced by
• Centralised and delivered 80% in Europe Region • Balance sheet
efficiencies in additional reconciliation policies
transactional finance scope • Significant increase in harmonized and
payment-on-time across strengthened - improving
• Delivered finance services to Western Europe by October the accuracy of the
support new global 2011 balance sheet
commercial business models
• Cash & Banking CPI around
• KPI reporting now in place number of open items on
across all regions for all bank reconciliations
processes improved from 1,700 pre
transition to less than 97 at
end of 2011
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20. We have over delivered on original scope & taken on new
scope.....
We are here
Genpact operating service in production
for:
UK, Sweden, GC Europe (most countries),
CEE, India, NAM (P2P, T&E), MedImmune,
CAMCAR, Venezuela, South Africa,
Maghreb , Saudi, Gulf (P2P) and Brazil
(except R2R)
% of FTEs with Genpact
Focus for Q4 and Q1 2012
• Transition remaining services in
Production: Egypt, Gulf (R2R), Brazil
(R2R), NAM (SOTC, Banking), Greece,
Turkey, Russia, Columbia, Chile,
Argentina, Peru
• Complete Final Tollgates (TG5)
We have transitioned more than 106% of original scope
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21. What did we learn?
• What went well, what would we do differently?

22. It’s not what we do, it’s the way we do it...
• Project run at regional/country levels
• Visibility of senior team members, open & honest culture
Engagement • Focus on personal journey
• AZ team primarily in-house and specific contract resources
• Balance risk & reward of early exits
Resources
• Clear approach and criteria applied to retention
• Simple project methodology
Project • Standardised risk & issue methodology across all regions
Methodology • Significant volume of 1:1’s between AZ leaders and AZ & Genpact
leaders
• Clear succession plans for critical resources
• Recruitment in Genpact
What would we
• KPI model
do differently
• Over invest in time for new delivery centres
• Language Dependencies
22 • Develop AZ Retained Operating Model straight away

23. Questions