3Barry-Wehmiller Companies Founded in 1885 in St. Louis, we began a new leadership journey in 1975 as a $20 million producer of brewery equipment with marginal financial strength and have become:An American-based global provider of capital equipment with more than $1 billion in revenuesOver 65 global locations and 5,200 team members, with union and non-union facilitiesPrivately held by 400 shareholders with an outside, professional Board of DirectorsA blend of 48 separately acquired companiesWe are like the rest of you
4Barry-Wehmiller Companies Surviving challenging yet enriching experiences in the late 70s and early 80s, we articulated a growth strategy in 1988 that was focused on balance and sustainable value creation.Implementing this vision, we have grown revenues and share value by 19% per year compounded for 21 years.In this economy, our business model has been challenged and our performance has been solid. In FY ’09, our share price growth exceeded 12% while we continued to invest in our culture.We are like the rest of you
5Total Revenues: $1.1 Billion Balance of MarketsContainer MfgIndustrialEnvelopeCorrugatedConvertingOtherPharmaceuticalHousehold & Personal CareBeverageFoodsSnack FoodsTotal Revenues: $1.1 Billion
6Revenue Growth 19% Compound Growth Rate $1,150 $941 $772 $520 $425 $323$248$132$95$44$425$520$772$941$1,15019% Compound Growth RateDiscuss our dramatic growth- only possible with a thriving People-Centric leadership culture
8My Leadership JourneyB.S. in Accounting from Indiana; Michigan MBA; joined Price Waterhouse in 1968Joined BW in 1969 and worked in all disciplinesUpon my father’s death in 1975, my intense period of leadership development began at age 29.At this same time, I was raising a family of six, and was experiencing a wide range of similar leadership and life challenges.
9My Leadership Journey 1976 - 1982 Dramatic and undisciplined growth Extended period of financial crisis1985 Began acquisitions to re-engineer company, inspired by Emerson model for growth1987 IPO on London Stock Exchange resolved financial crisis1988 A new beginning with focus on “Achieving Principled Results on Purpose”My personal vision became…“To touch as many lives positively as I can”
11What We BelieveAt Barry-Wehmiller, we believe that business enterprise has the opportunity to become the most powerful positive influence on our society by providing a cultural environment in which people can realize their gifts, develop and apply their talents, and feel a genuine sense of FULFILLMENT for their contributions in pursuit of a common inspirational vision.
12What We Believe“You are here to enrich the world, and you impoverish yourself if you forget the errand.”– Woodrow Wilson
13True Nature of Commitment We believe that we are stewards of each unique person who is part of our organization!
14What We BelieveWe embraced Lean as we heard that it was all about people.We learned that Lean, as commonly practiced, was all about profit improvement.Our Living Legacy of Leadership (L3) is a hybrid approach that combines our unique leadership principles with Lean tools to create a more inspirational model.
15“I am talking to my wife more!” What We BelieveLean is a powerful leadership tool that is fundamental to creating sustainable value and fulfillment for ALL STAKEHOLDERS.When Lean is embraced only as a tool for profit, we miss the powerful opportunity for inspirational and sustainable continuous improvement.Steve said it best:“I am talking to my wife more!”
16What We BelieveHow are we ever going to create sustaining value organizations if we don’t fully discover, develop, engage, recognize and reward the substantial gifts of our team members?Remember… Only 10% of people who go to work believe that the organization they work for cares about them.
17What We Believe“We have paid people for years for their hands and they would have given us their head and heart for free if we had only asked!”– Ken Blanchard
18We believe in People, Purpose and Performance. What We BelieveWe believe in People, Purpose and Performance.It is with this simple clarity of purpose that we strive to harmonize all aspects of our vision and related leadership and recognition initiatives.
20How We Live Our BeliefsWe develop compelling visions and share them in an inspiring way.We foster inspirational leadership to realize our vision, reinforced by education in our unique brand of people-centric leadership.We strive to recognize and reward team members along the journey in timely, proportionate and thoughtful ways.
21Vision Where and Why?We challenge all our teams to develop visions for growth that “paint a picture” of what could be and the value created.Visioning has become not only a discipline for our business units, but a powerful leadership technique for all departments and teams.Visioning is more powerful than simply planning; it inspires the engagement of the entire organization.
22Barry-Wehmiller University BWU Vision:Barry-Wehmiller University is founded upon the conviction that it is our responsibility to develop an integrated, inspirational and sustainable way of living our L3 vision.We now teach our own people-centric approach to continuous improvement.
23Barry-Wehmiller University We have developed 12 Leadership Practices that our frontline leaders strive to exhibit each and every day.We strive to teach “inspirational leadership” while unlearning traditional “management.”
24The Honor of Professorship Our classes are taught by frontline leaders, who are invited to share their knowledge, passion and experience with their peers.The unique content of our classes is developed internally by our own leaders.“I believe we can change the world for the better… one job at a time!”– Carl Gurbelski, MarquipWardUnited
25Barry-Wehmiller University Impact “I had a vision in my head and heart for the kind of leader I was, but I knew there was a gap. The lessons I’ve learned through BWU have helped fill that in. I am the message and I can make the difference.” – Howie Morois, PCMC“I personally continue to learn and practice the tools we have been exposed to in this journey. I am blown away on how simple the items are, but sadly we don’t always practice to the fullest. I feel that this journey will make me a better leader and, more importantly, a better person.”– Vince Jones, FleetwoodGoldcoWyard
26Learning the Barry-Wehmiller Way In each learning opportunity, a key question we ask is: “How does this make you feel?”“It is the first time anyone ever asked me what I thought! It gives me a sense of hope.”– Larry Pierquet43-year PCMC UAW Assembler
27Recognizing Milestones on the Journey In a people-centric culture, L3 implementation cares about how it makes people feel with equal importance to targeted results.Without timely and proportionate recognition, the full potential of Lean tools will be sub-optimized and unsustainable.Continuous improvement is a natural byproduct of engaged people who understand their value to the organization.
28Guiding Principles of Leadership SSR “I come in every day and try to be the person that they ‘think’ I am.”– Richard Pike, HayssenSandiacreAfter winning the GPL SSR award, Ruth Gumnitzky of MarquipWardUnited drove the car to the cemetery to show her mother, who had passed away.
29Guiding Principles of Leadership SSR Wayne and Jenni Zillmer of MarquipWardUnited were each selected for GPL SSR recognition and were surprised by the attendance at the event by their children and pastor.
30Are You Ready?I hear senior-level leaders tell me, “My people are not ready for this change.”The truth is, your people are starving for this change! But many of our leaders are not ready to lead this change.The challenge we face in America and in most other countries is that we don’t teach inspirational leadership. We teach management, and we get bosses, managers and supervisors. We need true leaders!
32Reflections on 40 Years of ‘Management’ Following the Industrial Revolution, America enjoyed global growth and prosperity for decades as a result of our industrial engine.Companies grew to be global providers.Unions developed to “protect” the workforce from management greed.Then, in the last 50 years, the world became more progressively “flat.”
33Reflections on 40 Years of ‘Management’ As our markets began to open up to global competition, management began to embrace new processes, while seeking new countries where labor costs were dramatically lower.We first went to non-union plants in Arkansas, then Mexico, Brazil and Eastern Europe, and now China.
34Reflections on 40 Years of ‘Management’ We could get away with “management” with our initial competitive advantage, but as competition continued to increase, we defaulted to seeking the lowest labor costs.Unfortunately, from my perspective, we never learned inspirational leadership that would have enabled us to avoid this pitfall by allowing our people to fully share their gifts.We need to move from management to “inspiration.”
36Our MessagePeople – True leadership begins with a focus on people and results in fulfillment.Purpose – Unwavering commitment to an inspiring visionPerformance – Our achievement of responsible performance is fundamental to our ability to be leaders within sustainable businesses.We will arrange for Bob to have dinner with a total group of 8 to 10 people that evening. By invitation only, about 7pm.The BW team will be available for cocktails after our breakout session for conversations include an open cocktail invite at 5pm.
37Our MessageYou, as leaders, have all the power within you to make this a better world…one job at a time!To inspire people toward a compelling visionTo develop them personally & professionallyTo recognize them for their outstanding achievements“The Wizard of Oz”We will arrange for Bob to have dinner with a total group of 8 to 10 people that evening. By invitation only, about 7pm.The BW team will be available for cocktails after our breakout session for conversations include an open cocktail invite at 5pm.
38We Believe in People, Purpose, Performance Bob ChapmanChairman and CEO38