1. Great Culture and Place to Work
Cultural Development Toolbox
Rosalia Cunningham - Chief Sherpa & HNA OD Team
Office of the CEO
January 13, 2012

2. Today’s Journey Hilti History Our Culture Journey Evolution
Design and Implementation
Organizational Knowledge Management
Measuring and Assessing
Recognition of Impact
Loading up your Toolbox

3. Hilti History …

4. What is Hilti ? A Snapshot
Hilti holds a leadership position world wide in the specialized field of fastening and demolition systems for the construction industry
Hilti holds a leadership position world wide in the specialized field of fastening and demolition systems for the construction industry
What is Hilti ? A Snapshot
Measuring
Distance measuring, Leveling & aligning, detecting
Drilling & Demolition
Insulation & Protection
Drilling & chiseling, Diamond systems
Foams Systems, Fire Stopping
Cutting & Grinding
Professional Services
Cutting, sawing, sanding, Diamond systems
Full Service, Calibration, Fleet Management, Financial Service, Anti-theft protection
Fastening & Installation
Planning & Specifying
Anchoring Direct fastening Screw fastening Installation
Specification, Consulting, Engineering, Software

5. Where is Hilti ? EVERYWHERE !!
Asia
Europe 3
North America
Europe 2
Europe 1
Africa, Near
and Middle East
Latin America

6. Who is Hilti? Mr. Hilti and family
Founded in 1941
Martin Hilti ( ) as Hilti oHG - a mechanical workshop in Schaan, Principality of Liechtenstein, with five employees
1971 Acquisition of a production plant at Kaufering, Germany
Step-by-step setting up of an international sales network with independent sales organizations and local representatives
- Construction of the parent plant in Schaan
1972 Founder – Health Issues
1964 Addition of a drilling and anchoring line to the sales program
1948 Start of development of a powder-actuated fastening system

7. 1985 Creation of three divisions: drilling and demolition, powder-actuated fastening and anchor technology
1989 Development and initial implementation of Strategy 2000
1979 Inauguration of headquarters for North and Latin America at Tulsa, Oklahoma, USA
1986 Innovation (INNO) – Work/Life Balance
1994
Our people and company culture are not soft-strategy
elements, but key drivers of our company’s success, one of our biggest secrets to living our purpose
Michael Hilti – Chairman of the Board of Directors
1987 Entry into construction chemicals market
1985 Leadership Makes a Difference – Culture Statement
1982 Entry into diamond coring and cutting market, and launch of first breaker

8. 1996 Revision of corporate strategy
2003 Operating in more than 120 countries, 110 Home Depots and the Internet with 9 manufacturing plants, and app. 14,100 employees.
1994 Founding of Hilti Asia Ltd. in Hong Kong and relocation of Asia market region management from Schaan to Hong Kong
1996 Revision of corporate strategy
2003
Global Rollout
1998 Step-by-step implementation of "Champion 3 C" strategy
1995
Introduced to HNA Executive Management Team as culture initiative not program of the month

9. Acquisition of Unirac in North America
2010
Acquisition of Unirac in North America
Launch of Aluminum Solar Flat Roof Systems
2011
Achieved highest GEOS rating in Hilti’s history
2008
Creation and launch of full recognition awards for customer based as well as peer nominations
2013
Next decade… ERA of the Journey Evolution!!!
2012
Wellness initiative
launched
Total employees globally over 20,000
2010 Revision of corporate strategy –
Vision 2020 introduced
2009 Purchased Diamond B, Inc. and rebranded to Hilti DPC

10. Our Journey Evolution….

11. Secret Recipe – 3 secrets of Gung Ho
Spirit of the Squirrel:
Worthwhile Work
Way of the Beaver:
In Control of Achieving the Goal
Gift of the Goose:
Cheering Each Other On

12. Our Culture Journey Principles
First Principle
We do Worthwhile Work
The Mirror – See the “Ideal Hilti”
Serving a Higher Purpose
Living Core Values
Becoming Best At
Having Shared Goals
Having a Balanced Life
Outstanding Results
Second Principle
We take Self-Response-Ability
to Achieve Our Goals
Third Principle
We Encourage Each Other
and Recognize Results
Defining the Playing Field
Develop Your Potential
Sharing Leadership & Teamwork
Enabling Empowerment
Aligning Structures, Processes
and Systems
Encourage Courage
Monitoring & Measuring the Right
Things Right
Recognizing & Rewarding
Aligning Recognition & Reward
Systems
Focus – Energy Disciplined Action

13. Ms. C’s Doom Loop Disappointing Results Reaction, No Buildup; without
Understanding
No Buildup;
No Accumulated
Momentum
New Direction,
Program, Leader,
Event, Fad or
Acquisition
Ms. C could make her entrance at this point????

14. Many camps along the Journey… Design and Implement

15. Team Camps – global and vertical
We discuss selected topics on a global and vertical plane in a bi-annual (18 – 24 month cycle) rhythm, called Team Camps
All team leaders participate twice in a team camp
As member of a management team
With their own team
The Team Camps are facilitated by internal people in the local language, called “Sherpas” (Strategic, Team Leader and Spirit)

16. The Team Camps of Our Culture Journey
Desired Hilti Culture Vision 2020
The Team Camps of Our Culture Journey
Rubicon
Pit Stop
One Voice
Mini Pit
Moment of
Truth
Why Not?
The die is cast
Traps of busyness
Feedback ceremony
Slow down to Speed up!
Beacons
Ideal Team
Road to the Summit
Reflect on
Positioning
Prioritize & Action Planning
Team Dynamics
Unique customer experience!
Seamless process ’’extra mile’’
Foundation
Focus – Energy &
Disciplined Action to achieve
Outstanding Results
Core Purpose & Values
Self-Response-Ability
Encouragement & Recognition

17. TC1 Overview: Foundation– Orientation / BTS
Day TWO A.M.
2nd Principle “We take Self-Response-Ability to Achieve Our Goals”
Reflect on Drama
Empowerment
Hilti Leadership
Enabling Structured Processes - DiSC
Day ONE A.M.
Desired and Current Culture Status
Introduction
Session Overview
SHERPA Exercise
Needs Activity
Lifelines
Desired Culture State
Brutal Facts (HWH)
Tower of Power / Enabling Elements of Greatness
Overview of Our Culture Journey
Hilti Movie
Lunch
Day ONE P.M.
Day TWO P.M.
Enabling Structured Processes (Cont’d.)
SL2 (w/Context Video)
PMP/Red Thread w/ SL2
Disciplined Action (DA) Personal
3rd Principle “We Encourage Each Other & Recognize Results”
Reflection on Key Points
Planet Hilti Reward / Recognition Systems
Disciplined Action (DA) Personal
Recap & Review
Leading Change
Team Camps
Who Moved My Cheese? Movie*
1ST Principle “We do Worth-while Work”
Hilti Core Purpose
Hilti Core Values
Mission Statement Commitment
Best At Statement
Shared Goals Approach
Making a Personal Connection to Worthwhile Work
Disciplined Action (DA) Personal (Work/Life Balance)
Fish! Worthwhile Work in Action Movie*
Team Spirit
“Rite of Passage
to Greatness”
Ms. C
Lunch

18. Painting the Team’s Purpose
TC2 Overview: 2+ Day Team Camp Rubicon
The Beginning
Day 1
Day 2 (conclude ~5:00pm)
Feedback as a Gift
Drama: Team Courage
Team Development / Managing Team Conflicts
Embracing & Leading Change
DA Individual
Third Principle:
“We Encourage Each
Other and Recognize Results”
DA’s Team – Consolidation & Prioritization
Desired Culture State
Brutal Facts
-Organization
-Team
Define Team’s Rubicon
Barriers to Greatness
Disciplined Action - Team
First Principle: “We do Worthwhile
Work”
Team Connection to Worthwhile Work – Visualizing the Team’s Future
Personal Connection to Life Balance
DA Individual
Second Principle:
“We take Self Response-Ability to Achieve Our Goals”
Hilti Leadership & Knowing Yourself
Participants arrive at the location for lunch
Path to OCJ Team Camp Rubicon
“Crossing
the
Rubicon”
Poolside/Campfire Reflection
“Becoming balanced on the Journey with the 6 L’s”
Painting the Team’s Purpose

19. TC3 Overview: 2+ Day Team Camp Pit Stop
Late Afternoon
Day 1
Day 2
Start the Race
(Strategic/Team Leader)
Courage
(Team Leader)
My relationship Traffic Light
The Walk
Prepare the Race
The Race
Personal Pit Stop
Team Pit Stop
(Team Leader)
Pit Stop Forever
(Team and Team Leader)
From Rubicon to the Pit Stop
The Pit Stop Letter
Camp Fire (Team Leader)
Strategic Sherpa Night
Roles

20. TC4 Overview: Team Camp Moment of Truth
1st day
2nd day
3rd day
Beginning
Beginning
08.00
07.30
Setting the Stage
08.00 – 09.00
07.30 – 09.30
Our Call to Action
The Voice
09.00 – 09.30
09.30
Break
In the Round
09.30 – 10.15
10.00 –
A Quantum of
Surprise
Strategic Sherpa –
Hannes Saeubert
Timeframe
Break
10.15
Lunch at Aspen
12.30 –
Voice of the EB
10.30 – 11.30
01.00 – 01.45
My Personal Contribution
11.30 – 12.30
Strategic Sherpa Hour
Lunch for early arrivals
01.45 – 02.00
Personal feedback
12.00
Lunch
12.30 – 01.30
02.00 – 02.30
My Call to Action
01.45
Break with heavy appetizers
01.30 – 04.00
The Experience: Customer Award~
02.30 – 02.45
Break
02.00
Welcome & Review OCJ
04.00 – 04.15
Break
02.45 – 03.00
The Call
A Quantum of Pride: Team Assessment
Camp Closing
04.15 – 05.15
The Challenge
03.00
03:00
Teambuilding Activity – On Target
05.15 – 05.45
Our Customer Promise
06.30
06.30
Gala “Arbor” Dinner w/ social
Strategic Sherpa – Hannes Saeubert Team Dinner w/ social
Campfire in Lodge
08.00

21. TC 5 Overview: Why Not? Day 1 Afternoon Day 2 Full day Day 3 Morning
Essence of the Hilti Culture
Future Imperatives of the Organization –Entrepreneurial Player
US living our
What is the essence of the Hilti Culture?
Let’s open our BOOK and our minds to the journey!
Where is the team on the journey?
Let’s experience our culture as a Team
My personal change agreement
Challenge & advice
Letter to myself
The One Thing
Understand it
WHY is this important for the org’s Vision?
WHAT do these strategic imperatives mean for us?
The Playbook: The Real Game
Our team: Diarizing the learning
How will we do this?
-Addressing
accountability
The One Thing
Apply it
What does it look and feel like?
-Business Simulation:
The Practice
Strategic Sherpa Night
WHAT is needed to achieve the org’s strategic imperatives?
* TC5 Global Std.

22. TC Overview: One Voice Arrival (1st day) Tuesday, 01/17/12
Team Reflection
2nd day – A.M.
Wednesday, 01/18/12
Team Direction
2nd day – P.M.
Wednesday, 01/18/12
Team Alignment
Breakfast (7:15a)
Lunch (12:30p)
Team Mirror: “1 – 10” on the path being a High Performing Team
Team Commitment: Put Vision into Action II OYP To Do
(Practice the learnings on one critical business topic or develop complete OYP)
Team Vision:
How does the team want to be perceived? What Leadership Attributes are needed in the future?
Arrival
Break (10:00a)
Break (3:00p)
Lunch (Noon)
Welcome
Team Connection: How do we want to work together? Responsibilities, Roles, Decision making, Communication, & Follow-through
Team Support: Define and share your Leadership (keep/change)
- The Walk
Meet the Team:
-Speed Dating
Team Integration Part I: Fast Leap
Team Communication: Sharing the message and gaining buy-in within our organization.
Fireside Social at the Summit (6p) Team Dinner (7:30p)
Team Focus: Put Vision into Action I - Stop Doing
Team Experience: Building the bridge to our future
Team Integration Part 2: Sharing in the round
Social (6p) and Team Dinner (7p)

23. Manage Organizational Knowledge …

25. The Hilti Business Model

26. Cultural Development Model
Mindset and Leadership
Team Engagement and Self-Actualization
Impact
Impact
Customer Centricity/ Productivity
Impact and Sustain the Journey
Customer Engagement and Satisfaction
Impact
Impact
feedback
Employee Engagement*: A team member’s degree of positive emotional attachment to the organization, their role and to their team.

27. Our Call to Action #1 Goal Goal: Owner Action Steps Start Date
End Date
30 Days
60 Days
90 Days
180 Days
Completion Date
Benefit of Goal Achievement
Challenges to Goal Achievement:
Recognition and Communication
Metric/Target
Current Base Line
30 Day Results
60 Day Results
90 Day Results
6 Months Results

28. Measuring and Assessing Impact…

29. Facts and Figures
Enthusiastic Customers
Retention
Morale
Teamwork
Productivity
Profitability

30. Triple Bottom Line

31. Isolate the effects of OCJ
ROI Framework
Impact
Sherpa Team
Competency
Team
Members T
Team
Engagement
Isolate the effects of OCJ T
Strategy
Alignment
Changes in measures,
Trend analysis to include intangible benefits.
Organizational
Development
Wilson Learning Worldwide, 2009 (Kirkpatrick’s 4 – Level model)

32. Zoom Type Evaluation Level Content Focus & # of questions
Chain of Impact
Zoom Type Evaluation Level Content Focus & # of questions
Readiness 0 Preparedness (#4), Aligned/Direction (6), Working Relationships (9), Shared Leadership (5) Immediate 1 Sherpas’ Ability (11), Team Performance(9), Team Camp (7), Impact (17) 30 Days 2 Knowledge, Skills & Attitude Changes: AIP’s (9), Barriers/Challenges (11), Resources/Recognition (6), Days 3 Changes in On-the-job Behavior, Actions, Progress (10) 6months 4 Changes in Business Measures – Trend Analysis (8) Long-Term (ROI) 5 Compares OCJ Benefits to the Investment Costs

34. Readiness Sensing Survey
Measurements:
Values, purpose and principles – highest ratings
Goals and priorities
Team engagement
Self-actualization / empowerment
Applying Management tools – lowest ratings
Results:
48% of the respondents have been informed of the topic and content of the TC
90% to 92% of respondents feel they and their team are ready
Degree of execution from last team camp – 7.5*
Clarity on goals and team priorities – 7.2 to 7.8
Alignment with principles, purpose and values– 8.4 to 8.8
Understanding of expectations, contribution and roles & responsibilities – 8.0 to 8.5
66% of respondents state Team Leader kept the Team Camp top of mind
Highest ratings:
Trust – 8.5
Motivation – 8.5
Ability to handle conflict – 8.4
Lowest ratings:
Applying 8 steps for leading change – 7.2
DISC usage – 7.3
Situational Leadership usage – 7.6
Degree of leading and facilitating change – 8.3 to 8.4
Sense of empowerment – 7.3
Comfortable asking for help – 8.8 to 8.9
Quotes:
“These events are fine its good to get together with the team but my experience is that Hilti does not live up to what its professed culture really is.”
“Nobody wants to go anymore ... topics boiled down now...too long out field”
Results give guidance on areas of focus before and during OCJ

35. Reward and Recognition Impact…

36. We Create Enthusiastic Customers Building a Better Future
OCJ Reward &Recognition Overview
We Create Enthusiastic Customers
Peer to Peer
Building a Better Future
Recognize Results
Enthusiastic Customer Award
OCJ
Recognition
Management Recognition
Internal Team Member Recognition
Legacy Cup Award

37. OCJ Online Recognition Bank
4 tickets per person to recognize team members within the year.
Team members accumulate these tickets and “cash” them in for OCJ product through the online catalog.
Catalog offers products from 1 to 100 tickets for team members to select from.
Ticket quantity is determined by an established “ticket price”

38. OCJ Online Catalog

40. Recognition and Awards
2001 Recipient of the
Ken Blanchard Companies Outstanding Award
North America
2010 Excellence in People Development Award from

41. manufacturing company manufacturing company
"Selling Power” ranks
Hilti-Canada #1
manufacturing company
to sell for
"Selling Power” ranks
Hilti-North America #2
manufacturing company
to sell for

42. Placed 15th globally (Microsoft #1) – 25 best in the World
2011 “Great Place to Work”
Placed 15th globally (Microsoft #1) – best in the World
Michael Hilti, former Chairman of the Board
Winner of the Carl Bertelsmann - Global Prize for exceptional Corporate Culture
Mythos brand – world-wide the strongest brand in the industry
Cary Evert , CEO of Hilti North American

43. Toolbox for Your Journey…

44. Sherpa Team Charter
Influence the mindset of teams to create passionate and engaged customers.
Customer Engagement
& Satisfaction
Focus teams to embrace seamless, consistent, best practices to maximize efficiencies.
Customer Centricity/
Productivity
Foster a spirited environment of learning, development, recognition, and fun.
Team Engagement
&
Self-Actualization
Be the OCJ Advocate and become a Strategic Asset
Impact and
Sustain the Journey

45. ... the journey to new heights!

46. Time for Q & A?