1. Global Readiness Event
Is it possible to change
interactions between groups ?
Dec 6, 2012

2. Applied Materials - G.I.S.
Global Culture Program – Case Study

3. Agenda
∗ How did it all start?
∗ Applied Materials, GIS, Global Culture Program
∗ The challenge and the approach
∗ The mission and main initiatives
∗ Program Measurements
∗ Lessons learned
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4. How did it all start?
“…In addition, Applied is implementing a comprehensive
program to better align its global organizations and processes,
including initiatives to enhance the Asia supply chain and
improve back office and information technology infrastructure
for more efficient transaction processing.”
Extracted out of Applied Materials annual report
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5. Applied Materials at a glance
World leader in Nano manufacturing technology™ solutions
1970+ 1990+ 2010+
Computing Communications Energy and Environment
Public Traded Nasdaq: AMAT Manufacturing: China, Germany, Israel, Italy,
Singapore, Switzerland,
Market Cap: $16.5 billion Taiwan, United States
Founded: November 10, 1967
Headquarters: Santa Clara, California Patents: ~8,200 issued
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6. Applied Materials Worldwide
104 Worldwide Locations North America
China
Taiwan
Israel
India
South East Europe
Korea
Asia
UAE
Japan
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7. The Challenge and Approach
∗ Background
∗ The Business is moving to Asia
∗ Deep changes in organizational structure requiring
matrix mindset
∗ Need for standardization, cost reduction and
elimination of local solutions
∗ GIS needs a new global operating module, from US
centric to a real global organization, close to the
customer
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8. Global Culture Program

9. Network Analysis Survey
(2010)
Main findings:
∗ core-periphery network
∗ 80% of US of interactions are internal
∗ Asia and EMEA interact 40% - 60% with US
∗ Interaction between Asia and EMEA is less then 10%
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10. Global Culture Core Team
China
Japan
Singapore
India
Korea
Ireland
Austria
Israel
USA
France….
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11. Global Culture Program - Mission
The 'Global Culture' program mission is to
support transition to a new global
operating mode, from US centric to a
truly global organization operating
effectively in collaboration and trust
while strengthening global leadership
and presence in Asia.
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12. Global Culture Program - Mission
The program will create an environment that:
∗ Increases employees’ engagement
∗ Reduces cultural barriers and uses cultural differences
as an advantage
∗ Builds Global GIS leadership
∗ Leverages skills across all locations
∗ Operates globally (teamwork engagement, forums
and trust) to increase effectiveness
∗ Builds communication around global time-zones
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13. Main Initiatives
Globalization Communication & effectiveness
Job
Families& Job Global
Leadership Roles &
Career Rotation Responsibilities
Paths Profile
Global
Flexible Team Global Idea Learning &
Hours Building Forum Mentoring
Events
Global Team leads Global Projects,
Financial visibility,
Business Partners,
13 And more…

14. Initiative Example: Leadership Profile
CUSTOMER FOCUS
• Strives to better understand and partner
with our customers
• Ability to put the needs of the team and
Applied Materials above yourself
ENABLE OTHERS TO ACT
• Strengthen others through personal
development
• Enlists others in a common vision – goal –
scope or work
• Recognizes contributions
• Builds a spirit of community
• Foster collaboration by building trust
• Makes others successful
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15. Initiative Example:
Leadership Profile
COURAGE TO LEAD IN A COMPLEX
ENVIRONMENT
• Sets the example through words and
actions
• Proactive, takes the initiative and drives
opportunities to closure
• Has the confidence to work independently CULTURAL AWARENESS &
with minimal direction ACCEPTANCE
• Possesses the courage to take risks and • Knowledgeable and curious
drive change about global cultures
• Addresses conflicts early and positively • Adjusts style to cultural
manages them differences
• Strives to engage and involve the
global team – open boarders
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16. Project and measurements

17. GIS Global Culture - key milestones
∗ June 2010 Network Survey
∗ July 2010 Formation and Workshop #1 (SCLA)
∗ October 2010 Workshop #2 (Singapore)
∗ January 2011 Workshop #3 (SCLA)
∗ February 2011 Baseline Survey
∗ June 2011 Mini workshops and wrap up plan
∗ February 2012 End of Program
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18. Baseline Survey – sample findings
Job families
A. My area of responsibility and job description are X % agree or strongly agree
well defined
B. I understand my career path options X % not sure, disagree or strongly disagree
R&R
C. I understand how my objectives contribute to the X % agree or strongly agree
success of GIS •Ratings consistently high across all regions
D. Roles and responsibilities are clearly X % not sure, disagree or strongly disagree
communicated and aligned across GIS
Global team lead global projects
U. I am able to influence key decisions that fall X % agree or strongly agree
within my global area of responsibility
W. Leadership opportunities are available in • Global leadership is a key improvement
the regions opportunity
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19. Baseline Survey - Main findings
Flexible hours
H. My manager supports working flexible hours X % agree or strongly agree
I. On average, how many hours do you spend X % with >5 hrs.
each week in meetings outside of the 7:00 am
to 6:00 pm time frame in your time zone
K. How many days a week on average do you • X % almost full time at home
work from home ? • X % work ≤1 day/wk at home
• Asia region works fewer days from home
O. How often do you have 1/1 meetings with • X % have 1/1 meetings biweekly or more often
your manager? • X % have 1/1 meetgs monthly or less often
P. How often do you meet with your manager in • X % meet in person at least quarterly
person ? • Europe and Asia regions meet their manager in
person less then twice a year
• Executives met with their managers most often
Job mobility and rotation
Y. I am interested in job rotation as an X % agree or strongly agree
opportunity for advancing my career or
gaining professional experience / personal
development
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20. KPI’s for Global Culture Project
Objective Current Value Target
X % complete
Overall program progress to plan 100% to plan
on schedule for May 11 …
Overall Program Organization assessment survey X (baseline) 10% improvement (3.82)
Workflow: Asia- X % | EMEA- X %
10% improvement of
| US- X%
Network Analysis Survey workflow outside of region
Advise: Asia- X% | EMEA- X% | and Advise seeking
US- X%
X % defined; coordination with
Corp Compensation required
Job Families Job families with R&R defined prior to finalization and X % by end of fiscal year
communication - on track for
100% by EOFY
Pilot completed by Oct 31
Creation and successful completion of pilot TBD - Q3/Q4
2011.
Job Mobility
Documented and approved
& Rotation % of identified and approved rotations in Wasn’t measured yet –
Target % and date to be
process by x date. TBD - Q3/Q4 defined (based on pilot)
% of employees that meet 2 or more times /
year in person with manager (incl group & X% X % with survey rating ≥ 3
Flexible Hours 1/1)
% of employees that meet once / year in X% X % with survey rating ≥ 2
person with manager (incl group & 1/1)
SLT review in April.
Published in Q2.
Roles & On track.
Define and rollout process for R&R Rollout update process
R&R defined, publication
Responsibilities definition and updates. Progress to plan. during Q3. (Monthly)
planned within 2 weeks. Published R&R updated
quarterly
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21. Results
● Network Composition moved in a positive direction for each region
and each question relative to 2010 – in many cases these changes
exceed X %
● AMER, ASIA, and EMEA now share the “core” of the network –
significant change from the AMER-dominated network of 2010
● ASIA and EMEA are at least as influential (if not more so) than AMER
in terms of their connectedness to other influential individuals
● AMER has been relieved of the burden of serving as a bridge to other
subsections of the network – though this work still continues in ASIA
and EMEA.

22. The new norms and values
We strive to an environment of strong and effective global matrix
organization, reduce culture barriers, build global leadership and
increase employee engagement
o New Regional and Country Business Partners roles to enable Close to the customer
and matrix management of remote/distant employees
o Defined standard, Global and simple Job families with clear Career path
o Structured Job rotation and mobility process to support organizational flexibility
and leadership skills development per environmental needs
o Global leadership development through empowerment, defined values, mentoring
and matrix/remote training
o Built cross culture engagement and trust through global team building activities
o Developed “sharing the pain” and “flexible hours” practices for remote/virtual
team work
o New working methods and processes to enhance global Communication, Ideas
Sharing and Financial visibility

23. Insights from this case
∗ Even Global Organizations can go through “regressive periods”
due to different factors (structural changes, mergers, etc.)
∗ Changing interactions between groups is possible and doable
∗ Interactions between groups can be measured and changed.
Network Analysis is a great tool to map and understand
interactions
∗ Managing cultural change as a project (tasks, milestones, KPIs,
etc.) is critical.

24. Insights from this case
∗ Soft elements like culture and cultural gaps affect performance
dramatically
∗ Teamwork and people’s excitement are critical for success
∗ Sometimes simple mechanisms like “sharing the pain” can have
strong impact
∗ Different areas in one company can have different global
maturity levels

25. What did we contribute ?
∗ Project Concept Definition
∗ Workshop Facilitation
∗ Network Analysis Survey – construction and
analysis
∗ Survey & KPIs construction and measurement
∗ Task Team Facilitation & Input
∗ Project Management
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26. Thank You !