1. How Leadership Development Drives Quality Cindy Milrany, CFO, CAO

2. Freese and Nichols, Inc. Multi-service engineering, architecture and environmental science firm 117-year history means experience, strength and stability 12 offices, all in Texas More than 450 experienced professionals, technical experts and support personnel

3. Freese and Nichols, Inc. 2010 Malcolm Baldrige National Quality Award First engineering and architectural firm to receive the award

4. Baldrige Criteria

5. Challenge PSMJ found: – 1 in 75 A/Es has the natural skills to lead – Many lack Communication skills Marketing abilities Business aptitudes Interest Entrepreneurial drive Leaders can be developed

6. Strategy The Leadership Pipeline Passage Three LeadSelf Lead Self Lead Others Lead Group Lead Business Passage One Passage Two Skills Time Value

7. Leadership Pipeline: Passage Two Lead Others – Skills Managing projects Planning & scheduling Monitoring performance – Time Setting priorities Solving problems Time with the team Time with clients – Values Doing the work “right” Success of others Lead Group – Skills Thinking strategically Thinking long-term Motivating & inspiring Coaching & giving feedback – Time Coordinating with others Building social contacts – Values Doing the “right” work Success of the firm

8. Formal Selection System We didn’t want the selection to become political We didn’t want just a few people making the decision We wanted the managers to have input We wanted the process to be seen as fair

9. Career Assessment Tool Business Career Interest Inventory – Application of expertise – Working with people – Control and influence Encouraged employees to think about their careers and where they best fit – Technical – Management – Sales/Marketing

10. Used Potential From Reviews With development, this person shows potential to perform at the next level. With experience and development, this person shows potential to perform at the next level. This person can continue to contribute and expand his/her responsibilities at the current level. Improvement is required in order for this person to maintain his/her current level.

11. Leadership Development Program Eight month program – Invitation from the CEO – One-day session each month – Assigned readings and projects – Senior management participation – Entire management team informed and supportive

12. Critical Leadership Skills A company focus A market focus A problem-solving focus 1.Think strategically 2.Think long-term 3.Competitiveness 4.Energizing other 5.Client focus 6.Continuous improvement 7.Confronting problems 8.Solving problems 9.Coaching and giving feedback

13. Leadership Development Skills Strategic planning and strategic thinking Financial skills Management skills Leadership skills Coaching skills Team-building skills Interviewing and recruiting skills Performance planning and review skills

14. Action Learning Learn by participating Learn by doing Learn by solving real-life problems Learn by receiving feedback – Assessments – Assigned exercises and projects – Senior management feedback

15. Learning Financial Skills Learn how to read financial statements – Balance Sheet and Income Statement – Ratios and trends Learn how to read F&N’s financials Exercise – Analyze the financial statements – Identify problems – Develop management actions – Present to senior management

16. Learning Strategic Thinking Key components of strategic planning – Mission, Vision, Strategies, Actions F&N’s Integrated Planning Process – CI Management System Exercise – SWOT analysis and recommendation Participate in F&N’s planning process

17. Individual Development Plans (IDP) 360  assessment of required skills – Self-assessment – Manager’s assessment – Direct reports’ assessment – Peers’ assessment Meet with a professional counselor/coach Meet with their manager and the COO Develop an IDP

18. Project Assignment Leadership Challenge, by Jim Kouzes and Barry Posner Plan for the first 100 days in a new job – Model the way – Inspire a shared vision – Challenge the process – Enable other to act – Encourage the heart

19. Results A broader, longer-term view – Understood the company – Understood why – Became independent thinkers Hit the ground running – 80% of participants were promoted – Some are now leading performers Becoming mentors and role models Decentralized leadership

20. The Process Continues 2003 - First Leadership Development Program 2008 - Second Leadership Development Program 2011 - Senior Leadership Program

21. Why is Leadership So Critical? “There’s not many companies that have enjoyed 117 years of successful practice and I fully expect, with the leadership we have and the leadership that will succeed them, Freese and Nichols will be around in another 100 years.” -Jim Nichols Chairman Emeritus Freese and Nichols, Inc.

22. Thank You Questions