Summary

1. Meeting Summary

I met with Shawn to compare notes on several open issues, with most of the discussion centered on the lack of progress and clarity around post-November 1 order processing, broader HQ dysfunction, and concerns about the current IT and operating model. My takeaway is that key decisions still have not been made, even though some people may be acting as if they have. We agreed that we need better direct clarity from the right business owners rather than continuing to operate in ambiguity.

I also shared highly confidential information that global marketing is being reorganized and that Angela's transition out is still expected to move forward, with Zach likely taking a larger role. In context, that changes how I view Zach's fit. If the company is genuinely trying to reshape Festool marketing to look more like Shaper's model, then Zach makes more sense than he otherwise would in Angela's current structure.

A major theme was frustration with HQ execution and the broader S/4 and IT environment. Shawn and I aligned that the tenant discussion is at risk of becoming a distraction from the real issues. We need to define our actual requirements, establish where we are willing to draw firm lines, and build a fact-based case for what North America needs from IT and shared services. I also shared that IT is among the functions under outside review, which reinforces the need for us to get organized quickly with a clear list of needs, gaps, and business impacts.

We also touched briefly on facilities-related items, including cable pulls, furniture movement, and document storage in Repair. On that last point, I agree with Shawn's recommendation that we should first determine whether the documents need to be retained at all before spending money to scan them.

2. Attendee List

• Scott Warner
• Shawn Remick

3. Action Items

• [Scott] Clarify the current decision status for order processing after November 1 and determine who is treating the matter as settled versus still open.
• [Scott and Shawn] Align on a direct approach to the appropriate marketing leader to get a realistic view of the likely operating model and decision direction.
• [Scott] Maintain strict confidentiality regarding the planned marketing reorganization and related personnel changes.
• [Scott, Shawn, and Gage] Prepare a structured list of IT needs, required capabilities, current barriers, and business impacts in advance of management-level discussions tied to the external review.
• [Scott] Define where we want to set firm requirements or lines in the sand with HQ IT and shared services.
• [Scott and Shawn] Continue strategy discussions on the tenant topic so it does not overshadow the broader IT and operational issues that still need resolution.
• [Scott] Follow up with Shawn on the contract he requested so he can lock in the company he referenced.
• [Pascal] Review the document lockers in Repair and determine whether the contents need to be retained before pursuing document scanning.
• [Scott] If retention is required, help identify document scanning vendors/options.
• [Scott and Shawn] Discuss Ronnie separately in a follow-up conversation, including the pattern of frustration being raised by multiple stakeholders.
• [Scott] Evaluate what work can be delegated across my team given current personal bandwidth constraints.

4. Relevant Timelines

• November 1 - Key unresolved milestone for order processing. Decision remains unclear.
• June - Shawn referenced being willing to wait until June on the IT-related path, but only if we use the time to create a stronger, evidence-based case.
• Near term - Angela is expected to be informed soon that she does not have a future here.
• Near term - The external review and related organizational discussions are expected to become public at the management level soon.
• Tomorrow - Shawn and I planned a follow-up conversation regarding Ronnie.
• Near term - I need to send Shawn the requested contract so he can secure the vendor/company.

5. Additional Notes

• Shawn reported a side discussion with John, who wanted more detail on the plan and questioned why we would not keep the current tech stack. The response remains that the long-term direction has to go to SAP, even if the transition path is still unclear.
• Current facilities items discussed were tactical in nature - cable pulling, furniture moves, and related building work.
• On document retention, the right first question is whether the records need to be kept at all. Scanning should only be considered after retention requirements are confirmed.
• My read from Bernd remains that he wants partnership and acknowledges his team is a barrier, but I am still concerned about spending time without meaningful outcomes. If we engage, we need to be explicit about what we need and why.
• Shawn was direct that the tenant discussion is not solving the core issues. I agree there is a risk that it creates the appearance of progress without addressing the underlying operational and IT deficiencies.
• We both expressed concern about the lack of process discipline at HQ, especially around SAP changes, prioritization, communication, and accountability.
• Shawn's feedback was that the security resource at HQ may be technically capable but is not operating collaboratively or responsively enough to support the business effectively.
• I shared that the board's outside review appears intended to challenge long-standing organizational assumptions and force modernization. That is directionally positive, but the timing and implementation approach will matter.
• Shawn's view, which I largely share, is that HQ culture is a major contributor to the current breakdowns, particularly when combined with the strain of the S/4 program.
• We also briefly discussed Vera's support model and the new short meeting format. My expectation is that these may evolve into lighter-touch email updates once the initial round is complete.