TDG Leadership Legacy Forum 10/1/12 Presented By: Greg Martis

What Current Historical Event requires these leadership characteristics? Leadership Characteristics: – Requires Financial responsibility, budget savvy, can understand and sell accounting viewpoints – Perceives the consequences of actions (3 steps ahead), makes tough, sound decisions on time. – Ingrained precepts of quality/continuous improvement – Can be creative, innovative and resourceful to get results Answer At The End Of My Talk

Agenda Intro and background Magnetrol background IT Vision slide and IT Horizontals Current activities tied IT Horizontals Break Darren Meyer – IT Management to Inside Sales Manager John Aaron – “Freedom Within Structure” Loren Data – Experience, experience, experience. Will Fiedler – Transitions – personal, job, and company. Wrap-up

Background (see essay bio too) Born and raised in Lockport, Illinois 2 brothers, mom and dad born in Lockport, mom’s Great Grandparents came from Italy Education: – Graduated from LTHS (home of the “Porters”) – North Central College (B.S. Chemistry and Computer Science) – Drexel University (M.S. Computer & Electrical Engineering) 1 wife, 2 daughters, and 1 dog (all M’s) Lived in Illinois, Delaware, Pennsylvania, and England – traveled for business and pleasure to 25 countries Outside interests – Anything outdoors, especially fly fishing, hiking, orienteering, and camping – Racquetball, basketball, baseball, and biking – Coaching

School & Work History B.S. Chemistry & Computer Science, M.S. Computer & Electrical Engineering Argonne National Laboratory (’82-’84) – As an intern in college, learned the value of “real” money and research DuPont (’84-’90) – First job out of college, learned what 40 hours/week is like, “a year-long project, huh?” UOP (’90-’07) – Advanced Process Control, Project Management, Lived in UK for 3 years. Understanding work and family life, learning about the “rest” of the world and valuing diversity, global infrastructure support Honeywell Specialty Materials (’07-’09) – Integrating with a large company, expanded management to 92 locations across the world. Learned about up-ward management, a lot of change and movement, politics, outsourcing/co-sourcing Honeywell Technology Solutions Inc. (’09-’11) – IT services for government contracts working with all military branches, NASA, and FAA. Experience to government contracts and spending decrease, services business, group transformation, lots of travel, budget management, and leadership development Magnetrol (Dec 2011) – Business transformation, building global team, and having fun!

About 800 employees, impressive employee commitment, global presence, 500 reps, 10,000 customers, >200 products, IT is locally focused, point solutions to meet local needs, much more…

What is level and flow control?

Why is this important to us? Our lives are touched every day and every minute by level and flow control applications Level and flow control protect dangerous environments – nuclear, petrochemical, and waste treatment Something as “simple” as this can make money IT is embedded throughout the product lifecycle: in the control process, data collection, product manufacturing, engineering, marketing, sales efforts, financial processing, global reach, and many more areas Don’t let the size of the company fool you, IT is just as complex in small to medium sized companies as the conglomerates. More on this later…

Magnetrol - Vision, Mission, Values VISION STATEMENT: To be the customers’ preferred partner in the global supply of level and flow control solutions MISSION STATEMENT: To grow profitably to a $250M company by: Leveraging the entrepreneurial spirit rooted in our “family business” heritage and further developing human assets for a diverse, open, inspired and technologically advanced culture where each associate is valued and fully engaged. Ensuring that the highest standards of corporate citizenship are an inherent part of the way we conduct business. Fostering an operationally effective organization for bringing superior quality products and services to market that consistently exceed customer expectations and facilitate customer partnerships. Exceeding industry growth focusing on key market segments and adapting our products, distribution, manufacturing and services to best address current and emerging customer needs. CORE VALUES: Leadership, Integrity, Respect, Responsibility, Growth

Magnetrol Core Values Core ValuesTo AssociatesTo CustomersTo OwnersTo Community Leadership We strive to create an internal environment that encourages creativity, innovation, and risk- taking, and accountability We exercise exceptional customer service We strive to develop and nurture mutually beneficial partnerships We take risks if needed and speak up with ideas and thoughts for the greater good We take accountability for the performance of the Company We make decisions that contribute positively to the community and the Environment Integrity We are sincere, open, honest, candid and caring We take pride in our work We strive to build trust with our customers and business partners We look for opportunities to earn customer’s business We bring our best effort every day We conduct business in a fair, ethical, and lawful manner We conduct business in a socially responsible and environmentally friendly manner Respect We appreciate individual differences and diversity Similarly, the value of solid teamwork is recognized We are courteous and professional We are conscientious and timely in addressing customer needs We strive to understand and support the decisions made to further business goals We maintain a positive standing in our community via respectful social, environmental and ethical conduct

Core Values (cont.) Core ValuesTo AssociatesTo CustomersTo OwnersTo Community Responsibility We create a safe and secure work environment We use company assets conscientiously We honor our commitments We provide quality products and services We are responsive to our customer commitments We strive to utilize resources in an efficient and responsible manner We honor our commitments We support initiatives that help create an increasingly sustainable environment We volunteer, participate, and contribute to the community we live in Growth We encourage and support personal and professional growth and development We reward based on merit We provide input and even challenge options if needed leading to richer decisions We have a built in capacity to manage and cope with customer “impatience” The customer has a right to demand superior solutions faster than we can deliver We know our competition We add value in every step of our operations We contribute ideas towards growth and savings We participate in industry events, standards bodies, trade organizations, and community business organizations

My Experience With Large vs Medium Sized Company Differences Focus AreaMy Current Approach Size of companyHuge – 150K employeesMedium employees Apply experiences Policies, procedures, and standards Very bureaucratic and a policy for everything Some policies, but many policies are not formalized “Freedom Within Structure” VisionStrategic plan – 5 yearsNo formal strategyBuild strategy, but not lose focus on “the now” Personal ControlMany levels of approval required Report to the CFO who reports to the owner Finally! Leadership abilityMinimalVery internally focusedBuild Leadership capability through others and partners VirtualWay of workingNot establishedEstablish Family considerations24X7 expectationsFamily firstTry to balance ComplexityMajor multitasking, critical major issues, but limited control Not trivial, but able to get hands around the challenges Bring in outside perspectives Learn and adapt

Jan Feb Mar Apr May Jun Jul AugSepOct Nov Dec 2012 IT Vision for 2012 and Beyond Assess and Prioritize Vulnerabilities Strategic Direction Gaps/Opportunities/Demand-VOC Constraints/Organizational Readiness Execute Infrastructure Roadmap (e.g. remediate vulnerabilities, virtualization) Establish & Maintain IT Portfolio Governance & Financial Mgmt Process Execute Application Roadmap (e.g. ERP, MPSS, MQOS, SharePoint, Outlook, etc.) Project Mgmt Change Mgmt Maintain Efficient and Effective Operations Optimize Global IT Team Integration and Alignment 14

IT Vision (continuous work in progress) Processes and Procedures Infrastructure and Security Global IT Tools ERP- SAP OPTIMIZATION Roadmaps Governance, PM, ITIL, Six Sigma Virtualization, Backups, Firewalls IM, Social Media, SharePoint Sales, Production, HR, Financials 2012 Objectives Assessment of current environment Governance Model Group structure to meet current and future business goals Critical Application/Systems roadmaps Change management Leadership/Team development Global IT Integration Financial management Operational Excellence

IT Horizontals – Courtesy of Dick Dooley IT HorizontalMagnetrol Philosophy (evolving) Overall Technical Architecture IT Service Management - Building roadmaps focused on Virtualization, Enterprise Systems, Security, … Using Partners for rapid infusion of knowledge and leadership Project Management Office PRIMMS, PM tools, Process Improvement – John Aaron will cover this Enterprise Wide System(s) & Business Process Redesign Business Transformation through ERP Process Improvement with Six Sigma philosophy Mobile handhelds - APP based development - Cloud Residence - Multiple Function Devices (BYO). Being “pushed’ by the business faster than comfortable Reviewing hosting options for ERP Security Leveraging outside expertise to assess, assist in creating strategy, and perform vulnerability analysis Leadership Development 22 Leadership Characteristics wrapped around apprentice model. Loren Data, Darren Meyer, and Will Fiedler will speak to this. Organizational Culture and Change Using ADKAR model supported by two PHDs – (Julie Bjorkman and Chris Fernandez) Real meaning of Mission and Reinvetion Ownership & accountability expectations Vision, Mission, Values  Balanced Scorecard  Department Goals Monitoring done through Department Scorecard Internal Consulting Great idea. Looking at driving this through Leadership Characteristics and Apprentice program Learning from valued partners (Contax and RL Canning)

IT Service Management Do you have a Services Portfolio? Are your customers involved in defining the services, sharing their expectations, and providing feedback? How many services have you retired this year? What is the value of each service? How is each service performing?

Managing The Portfolio Marco Cattaneo Charles Sturt University Trained 25 people on ITIL V3 fundamentals – Magnetrol and RL Canning shared the cost and experience Focusing more effort on retiring services in order to free up time and $ for IT investment Optimizing performance for the key services that we support Starting to conduct more valuable discussions with the business Example – Virtualized about 30 servers in the last 2 months removing 15 physical servers from the IT environment. Amount of Effort In the Portfolio Life Cycle

Partnerships Key Points: – Infuse expertise into the team at the right spot and right time – Increase knowledge and sustain learning – Ensure common goal, joint ownership, and win-win situations – Integrate their resources as quickly as possible (hone your on-boarding process) – Drive additional value from partners (faster implementation, more complete solutions, documentation, insight, strategy,…)

Enterprise Production Capacity Optimization Cross Location Inventory & Sales Visibility Engineering Collaboration Leveraging Human Resources Globally Intercompany Purchasing Sales Collaboration & Project Execution Customer Satisfaction Three Year Objective The Goal: A Fully Integrated, Collaborative Global Company Using Best Practices To Secure Long Term Competitive Advantage ERP supports the attainment of a Globally Enabled Enterprise with Integrated Systems. (G.E.E.I.S) Integrated Finance & Accounting Quality & Innovation

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ERP Project and Process Improvement (Process & Tools) When implementing a global 3 year project, can we wait to improve until after the implementation? Use Six Sigma processes and tools to document and incrementally improve Mind mapping Now Future

Leadership Characteristics – Dick Dooley/John Aaron Baseline Yourself

Change Management Assess readiness for change Assess organization Assess risks Develop special tactics Assess/Prepare sponsors Assess/Prepare individuals and teams Change Management Strategy Communication Sponsorship Training Coaching Resistance Management Awareness Desire Knowledge Ability Reinforcement Readiness for change Achieve project goals Change Management Work Areas Change Management Outcomes Results Scores: Leadership/Sponsorship: 26 Project Management: 24 Change Management: 17 Assessment of ERP Sponsors

Vision-Mission-Values Aligned To IT Performance 2012 GoalsMetric 1) Globalization of IT 2) Manage Infrastructure & Security 3) Manage ERP & Applications 4) Manage IT Service & Requests 5) Define group structure to meet the needs of the business 6) Manage capital and expense budget Vision, Mission, Values Balanced Scorecard Department Goals IT Scorecard

Mission At Honeywell – provide services to load the ship below with equipment for 20,000 soldiers (truly life or death situation) How do you get people motivated and aligned to your Mission? Create an urgency Reinvent yourself, your team, your company Define what’s in it for everyone Paint the transformation picture – “before and after”

Internal Consulting The role of the ? professional is being transformed from that of the guardians or enforcer of an organization’s policies and procedures into that of a strategic business partner. As demands on and expectations of ? professionals change, they must continually develop new skills to add value to the organization. Essential skills of the ? Professional as Business Partner are consulting skills. As an internal consultant, ? professionals act as a proactive advisor providing critical input into the strategic initiatives of the organization and become increasingly involved in the implementation of strategies. As ? professionals take on these additional responsibilities, their role changes and they are able to have a greater impact on the organization. What Would This Look Like In Your Organization?

BREAK

Darren Meyer

Transition: IT to Sales Management Greg told on day #2 with Magnetrol that I was going to leave IT Long time supervisor moved out New supervisor never in a ‘pure’ supervisor role previously 4th boss in ~12 months (previously had same boss for 10+ years)

Leadership Performance in Different Roles, Over Time Your customer changes, but problems, challenges, expectations, etc. remain the same Management of people is the same – obtaining discretionary energy of your team Must “re-learn” how to manage up/down to different people

Technology Changes Facilitate Organizational Change and Leadership Change Can’t ‘default’ to system/IT solution…must explore people and processes first! How to introduce better/different use of technology amongst a slew of other changes Making sure not to overstep non-IT bounds and/or upcoming ERP changes…Becoming a user!

Collaboration Across Functional Lines IT gets a very broad view of the organization – a great opportunity to grow professionally IT must often act as a bridge across various gaps…user specifications…user expectations…user understanding…etc. IT is all about problem solving These are valuable business skills…not IT skills, if nurtured correctly and combined with the correct delivery

John Aaron

Life-Long Leadership Learning for Project Managers John Aaron Dick Dooley Greg Martis

How Do People Learn? Bloom's Taxonomy (1956 Taxonomy of Educational Objectives) divides educational objectives into three "domains": cognitive, affective, and psychomotor. It remains one of the most foundational and essential elements in education.

The Project View Milestones Exit Criteria

Project Manager Report—Includes Measurement of “Doing, Experience, Achievement” Sample Report from PRIMMS®

Target Competencies Touch Upon Various Levels and Modalities for Each Project Cycle 1.Financial responsibility, budget savvy, can understand and sell accounting viewpoints 2.Persuasive, can move others to action, can delegate effectively 3.Perceives the consequences of actions (3 steps ahead), makes tough, sound decisions on time. 4.Business acumen and judgment, keeps cool under pressure and can handle “bad news” 5.Good at the art of presentation, communication and giving feedback 6.Ingrained precepts of quality/continuous improvement 7.Effective use of power, can negotiate, be diplomatic and tough 8.Can be creative, innovative and resourceful to get results 9.Excellent holistic/conceptual ability with capacity for detail 10.Maturity and willingness to be accountable 11.Customer orientation 12.Is positive, encouraging and reasonably optimistic 13.Can develop and effectively articulate a vision 14.Personal integrity, credibility and ethics 15.Sensitivity to managing time, timing issues and other people’s time 16.Build teamwork capacity & energy 17.Awareness of internal/external politics 18.A team player, positive attitude, can work in collaboration with others 19.Can handle complexity/ambiguity 20.Capacity for strategic thinking & action 21.Ability to understand and interact with the market 22.Builds and adjusts relationships 23.Decisions reflect a global orientation and mindset 24.Can leverage a diverse work force 25.Intuitive, good instincts, anticipates, future oriented 26.Understanding of, comfort with, and insight into risk

Qual Cards for Each Leadership Competency Assists in Mentoring

Mentoring : Assessing Leadership Development As Well As Project Results for Each Project Cycle

Competency Development Time Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 etc. Each Project is an Opportunity to Execute a Cycle

Our internal structures make repetitions of Knowing, Doing and Becoming additive for competency development over time. Higher Level Thinking Components Lower Level Thinking Components Competency 1 Competency 2 Competency 3 Perception Action Senses Muscles

Project 1 Project 2 Project 3 etc.

Loren Data

HELLO My Name is… LORENDATA No relation to this guy!

MACHINE SHOP – DRILL OPS. PC ORDER SCHEDULER PRODUCTION EXPEDITOR PRODUCTION COORDINATOR INSIDE SALES MANAGER MATERIAL HANDLER INVENTORY EXPEDITOR SALES / QUOTATIONS WAREHOUSE SUPERVISOR PROJECT QUOTES / APP. ENG. / TS MANAGER IT’S BEEN A COLORFUL CAREER………….. SO FAR!!!!

Will Fiedler

OPPORTUNITY

Wrap Up

Week At A Glance Monday, 10/1 The Dooley Group Leadership Legacy Meetings - Keynote talk - Outside companies and Universities - Transportable lessons from Cantigny - 10 Meeting Themes - Feedback - Share experience Tuesday, 10/2 The Dooley Group Leadership Legacy Meetings -Speakers from Outside companies and Universities - Transportable lessons from Cantigny - 10 Meeting Themes - Feedback - Shared experience Wednesday, 10/3 ERP Steering Team and Advisory Council Kickoff - Role of Leader in D- Day - Different Groups Working Together - Understanding all Team Members’ Issues and Goals - Coordinating a Global Attack Strategy - Understanding the Resources Needed to Do the Job - Visualizing the project, potential failure points, and plans to mitigate weaknesses or problems Thursday, 10/4 ERP Team Lead and Advisory Members Kickoff - Role of Leader in D- Day - Different Groups Working Together - Understanding all Team Members’ Issues and Goals - Coordinating a Global Attack Strategy - Understanding the Resources Needed to Do the Job - Visualizing the project, potential failure points, and plans to mitigate weaknesses or problems Friday, 10/5 ERP Team Lead Workshop - Integration and external infusion of ideas -Tactical Project Management role -Effective teams -Change Management -Communications -Myers-Briggs analysis -Leadership TDG Magnetrol Hal Nelson & Dick Dooley

Enjoy The Meeting And Happy Oktoberfest! John Falsetti, Executive Director of Information Technology, Maryville –Trying to Influence Change with “C” Level Leaders” and Limited Resources General Hal Nelson [Retired] U.S. Army – Session and Location Overview, Basic & essential Army Leadership ideas, plus transformation of the highest order, today, in the U.S. Military Joe Salwach, Director, Info. Services, the University of Kentucky - “Emerging Leaders, from three Cycles, connections/ outreach, Changes, impact Truls Henriksen, Owner - Henriksen Group “Leadership Perceptions From a Unique Entrepreneur & Technical Counsel – Impact on today’s younger /evolving professionals” Melanie Hanson, Executive Director & Mark Zirkelbach, VP & CIO Loma Linda University Health Systems – “Preparatory and Very Focused Leadership Learning Process - To Beyond I.T Colonel U.S. Army (Retired) Paul Herbert, Executive director of the first Division Museum at Cantigny - “ Leadership Lessons From Three Different but Very Successful Senior Military Leaders, Their Styles, Personalities, and Fit, to the Times and Situations” Colette Huzinec VP & Chief HR Officer, SmithBucklin Corp “Corporate Wide Culture & Expectations in a unique CEO Leadership Framework - Approaching Their Third Cycle”