1. “Exemplary Business Practices and Stories from the 2008 Top Small Workplaces” Diane Stoneman, Director of Consulting and Training Mary Clark, Executive Director Winning Workplaces © 2008 Winning Workplaces. May not be reproduced or distributed without expressed written permission of Winning Workplaces.

2. Our Agenda  Background and criteria for Top Small Workplaces  Nine Practices that Make a Difference - Philosophies, stories, metrics

3. Our Beginnings  Founded in 2001 by co-owners of Fel-Pro.  Committed to small/midsize organizations building healthy, productive work cultures.  Triple bottom line: Business, People, Community. About Winning Workplaces

4. - Consulting - Training - Webinars Online Clearinghouse About Winning Workplaces Success Stories

5. Top Small Workplaces Competition  The Wall Street Journal  Winners announced Oct.13, profiled: WSJ.com/Entrepreneur  Report @ WinningWorkplaces.org  2009 competition underway

6. Top Small Workplaces 2008 Top Small Workplace Winners ATA Engineering Decagon Devices Integrated Project Management (IPM) JA Frate Jackson's Hardware Jump Associates King Arthur Flour Company Landscape Forms Lundberg Family Farms New Belgium Brewing Phenomenex Rainforest Alliance Resource Interactive The Paducah Bank & Trust The Redwoods Group

7. Who Qualifies?  North American-based  Independent, not part of larger corporation  No more than $200 million annual revenue  Employ no more than 500 people  Have been in business at least five years

8. Selection Criteria  Success in business, growth in revenue  Employee tenure and turnover  Investment in employees: benefits, training and leadership development  Stable work culture: high level of employee engagement, commitment and innovation  Employee participation in business decisions and in rewards of financial success

9. Top Small Workplaces: Who Applied? 782 Organizations Nominated 406 Completed Applications 35 Finalists 15 Winners

10. Final Judging Panel Colleen C. Barrett: President Emeritus of Southwest Airlines Co. Peter Cappelli: Dir., Center for Human Resources, Wharton School Judith Cone: Vice President for the Kauffman Foundation Diane Hessan: President and CEO of Communispace Tom Kinnear: Professor of Marketing at University of MI, School of Business Ken Lehman: Founder and Chairman of Winning Workplaces Corey Rosen: Co-founder, National Center for Employee Ownership (NCEO) Paul Silvis: Founder, Inventor and Head Coach, Restek Corporation

11. 2008 Top Small Workplaces  14 private; 1 non-profit  Revenues: $36 million ($8 - $107 million)  Number of employees: 154 (from 48 - 477)  10 states

12. An Overview An Overview Nine Business Practices That Make a Difference

13. 1. These companies take a long view of their business   Average 42 years in business   Grow average rate of 23% over last 2 years   Tenure of the CEOs average 17 years   Founders still involved in 50% businesses Commitment to building something that will last -- shapes decision making and culture, and influences both strategy and execution.

14. ATA Engineering, Inc. San Diego, California “While we could easily grow faster we believe in the long run we would do irreparable harm if we stumble in our hiring and training process.”

15. King Arthur Flour Norwich, VT “This is a good atmosphere. There are great people to work with and the leadership is wonderful. I love the history of the company. I’d be happy to retire from here.”

16. 2. It’s not just about profits…these firms intend to change society  Leaders share strong sense of mission  Driven by clear values -- make them come alive at work  Responsible stewards serving multiple stakeholders Why do it?  Places work in larger societal context – instills meaning  Breeds pride & loyalty: ignites workforce to take on challenges

17. The Paducah Bank and Trust Company Paducah, Kentucky The project proved to be “the most energizing and unifying undertaking their staff, and perhaps the City, has ever experienced.”

18. The Redwoods Group Morrisville, NC In 2006-2007, the organization contributed over 50% of its pretax profits to nonprofit organizations throughout the world.

19. 3. Open communication engages employees in the good times and bad. 3. Open communication engages employees in the good times and bad.  Commit to honest, transparent communication  Actively invite, expect employees to participate Why do it?  Essence of good relationships is communication  Compelling conversations build trust -- connect people, ideas and aspirations.

20. Landscape Forms Kalamazoo, Michigan

21. JA Frate, Inc Crystal Lake, IL

22. 4. Teamwork — it’s how the work gets done 4. Teamwork — it’s how the work gets done  Excel at instilling common purpose; put aside egos  Through role-modeling, team-based rewards and recognition Why do it?  Complex problem/projects demands multiple talents  Brings together diverse perspectives = innovation & fresh ideas  More productive; greater camaraderie  Allows firms to better confront challenges: less conflict, politics

23. Jump Associates, LLC San Mateo, California “I thought I had worked on teams before I came to Jump, but they were just a collection of individuals.”

24. 5. Employee development is key to consistent execution 5. Employee development is key to consistent execution  13 tuition programs; avg $3500/year/employee  Nearly half provide tuition for part-timers  Hire for “attitude” and “fit” for culture  Invest to build adaptable, competent workforce  Grow leaders from within  Mix of structured learning & “learning by doing”

25. Decagon Devices Inc. Pullman, Washington “We challenge employees with projects that let them show us - and sometimes themselves - what they're capable of. It seems like a crazy system, but it's amazing to watch it work.” “Think like scientists, work like farmers, dream like children.”

26. Rainforest Alliance New York, New York Out of current 98 staff based in U.S., 50 have been promoted or moved to new positions with company at least once; many received multiple promotions.

27. 6. Workspace Matters 6. Workspace Matters  Design open spaces  Ask for employee input Why do it?  Encourage fresh ideas and collaboration  Eliminate communication silos  Reinforce desired behaviors: problem solving, working things out themselves

28. Phenomenex Torrance, California Work environment is designed to breed familiarity, comfort, collaboration and “inspire the imagination.”

29. 7. Employees share in the risks and rewards  10 of 14 firms, employees own stock; 5 are ESOP companies  47% for employees vs. 37% for CEO/President  14 of the 15 firms practice open book management  Performance incentives: options, profit sharing, bonus, etc. Why do it?  “Trust, commitment and self-worth built when everyone that has helped to create the business success gets to share in it.”  Provide focus on key goals; breeds employee ownership

30. Resource Interactive Columbus, Ohio “When we sit across the table from clients and can tell them that every one of Resource’s employees is a shareholder, clients are blown away.”

31. 8. Focus on well-being, prevention and health to build endurance   Above industry average benefits   90% employees’ premiums; 72% dependents  13 offer flex work options; 11 wellness programs Why do it?  Better able to attract and retain top talent  Increases productivity  Decrease in stress, absenteeism, sick days and reduction in insurance premiums

32. New Belgium Brewing Ft. Collins, Colorado “A model organization on how to treat people, community and the planet.”

33. Lundberg Family Farms Richvale, California “On my first day they greeted me with a great big fruit bowl. They hired a trainer to come in our offices and teach us stretching at the desk. They really truly treat you like you’re important to them. It’s the real thing.”

34. 9. Through their employees, these firms compete on quality and service. 9. Through their employees, these firms compete on quality and service.  Clearly defined market niches  Extraordinary quality and unmatched value  Focus less on price -- product and service excellence How they do it?  Highly engaged, committed workforces  Employees act like owners -- and many of them are  Deep understanding of business, invested in success

35. Integrated Project Management Burr Ridge, IL

36. Integrated Project Management Customer Integrated Project Management Customer “The engineers at IPM have great conviction and experience. They’re ethical. While their fees are impressive they take it as a challenge to return AT LEAST their fee back to you in reengineering and construction choices. IPM’s an example of a company with equal or better compared to the bigger guy -- and they move more quickly.”

37. “They are consumer friendly and exceptionally helpful…It is one of those places you go back to, even if they charge more — even though they don’t often charge more — because of the service.” Customer Jackson Hardware San Rafael, CA

38. 2008 Top Small Workplaces Benchmarking and Best Practices Report www.winningworkplaces.org www.winningworkplaces.org Order by end of year using promotional code: “wsj1013” and get 40% discount.

40. The Future of Management by Gary Hamel To be competitive in 21 st Century -- need a “post-managerial society”  New ways of managing employees  New ways of structuring work  New ways of organizing talent to maximize wealth creation Results in lasting competitive advantage and sustainable organizations

41. Is Your Organization on the Path to Becoming a Winning Workplace?  Is there a free flow of information in your organization?  Do you have mechanisms that create a “democracy of ideas”?  Are your employees invested in achieving desired business outcomes?  How do you surface and challenge the mental models that shape your culture?

42. Upcoming Webinar Dec 10: Maintaining a Stable Workplace in an Unstable Economy Bill Brett, CEO, Barclay Water Management Bill Brett, CEO, Barclay Water Management 2007 Top Small Workplace Winner 2007 Top Small Workplace Winner Coming in January 2009: Business Leaders from the 2008 Top Small Workplaces featured in webinars