A JOURNEY OF TRANSFORMATION

Kathy Cullen-CoteCorporate Vice President, Human Resources

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Driving Organizational

Culture

Leading Industrial Innovation

Platform and Solutions

Global Software Company,

$1B+ Revenue

Design, Manufacture,

Operate, and Service “Things”

Global Network of 350K+

Developers and 1K+ Partners

THE NEED TO CHANGE

PTC embarks on a journey

to pioneer the physical-

digital frontier.

PORTFOLIO BUSINESS MODEL GO TO MARKET CULTURE

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OUR APPROACH

KEY ITEMSRemove Blockers

70 top leaders alignment

Support at all levels

Experiential learning

Sharing stories

BOD Committee

MARKET-DRIVENCURIOUS

AMBITIOUS

ALIGNED

EMPOWERED

RESPONSIBLE

INNOVATIVE

New Behaviors

OUR VISION

Take a fresh look at things.

CHANGE CHAMPIONS

Employee advocates drive innovation

across PTC.

INTRODUCING CHANGE MAKERS

Celebrating employees who are making

A difference.

CEO WORLD TOUR

31offices 4,400+ employees

DRIVING CHANGE

Employees attend Focus on PTC sessions

and

Learning Labs

PTC 2020 LEARNING LABS

Objectives

• Make sense of change and understand role in the company transformation

• Turn big picture strategy into a tactical action plan for individual contributors and managers

• Understand the behaviors PTC needs to exhibit to win

OUR PLAYBOOK

Employees align around our

transformation strategy.

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MEASURING SUCCESS

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CHANGE READINESS INDEX – PULSE CHECK

73%

27%

Ready for Change Unsure/Resisting

2016

(Baseline)

90%

10%

2020

(Target)

81%

19%

FY2017

(Pulse)

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MEASURING OUR CHANGE

PTC

Overall

May 2016

PTC

Pulse

Oct 2016

Improvement

CHANGE READINESS INDEX SCORE* 73 81 +8%

It is clear to me what PTC's change initiative entails 80 88 +8%I can see a clear link between my work and PTC's

objectives71 79 +8%

I feel empowered to make the changes necessary to

make PTC 2020 a success63 73 +10%

Overall, I believe PTC 2020 will make PTC a better

company79 84 +5%

*Index score is an average score of the four change readiness items

Scores indicate the percentage of employees who agreed or strongly agreed with each statement

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ADDITIONAL CHANGE READINESS ITEMS

Scores indicate the percentage of employees who agreed or strongly agreed with each statement

PTC

Overall

May 2016

PTC

Pulse

Oct 2016

Improvement

I can clearly explain to others the long-term strategy

of PTC71 81 +10%

I believe we will succeed in the change initiative 73 79 +6%

I understand the goals and objectives of the

PTC 2020 initiative77 88 +11%

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New ideas are

encouraged at PTC

+31%

I believe PTC is going

in the right direction

+29%

My job makes me feel like I am

part of something meaningful

+16%

BOSTON GLOBE SURVEY 2012 VS. 2017

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EXTERNAL SIGNS

121 SEAPORT

Our place.

Our time.

PTC AUTHORS AR ROADMAP!

PTC’s leadership in

AR is put on display

in a groundbreaking

HBR article.

2016 2018

PTC STOCK SKYROCKETS

PTC shareholder

value soars by executing

three strategic pillars: Growth,

Subscription, and Margin Expansion.

PTC NAMED IoT LEADER

Industry analysts

recognizePTC as theIoT leader.

TOP PLACE TO WORK

The Boston Globe names

PTC a top place to work!

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WHAT NEXT

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TALENT

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Step 2: Find Top Candidates

• Standard process

• Research-backed practices

• Prioritizing for brains and passion

• Data driven decisions

• Simple to use tools

• Mandatory training

THE NEW WAY…

Define the Job Align & Plan

Screen for Brains

& PassionSell the Job

Predictive Index

for Job Fit

Competency

Based Interviews

Step 1: Prepare

Step 3: Hire The Best

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• Role of the hiring manager

• Stakeholders for Hiring

• Job requirements & job postings

• Structured interviewing

• Predictive Index

• Evidence based candidate comparisons

WHAT’S DIFFERENT?

OUR JOURNEY CONTINUES

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DISCUSSION Q&A