Granite Leadership Day May 22, 2011 If your actions inspire others to dream more, learn more, do more and become more, you are a true leader. – John Quincy Adams
Granite Leadership Day
May 22, 2011
If your actions inspire others to dream more, learn more, do more and become more, you are a true leader.
– John Quincy Adams
2
Welcome to Leadership Day
• Shelly Bauerly Kopel, Partner &
Leadership Day Coordinator
1. NAME
2. COMPANY
3. ROLE
3
Leadership Day Objectives
1. To facilitate connections and ongoing dialogue through cohort circles and large group activities
2. To enable discussion between and amongst participants to share best practices and lessons learned
3. To share knowledge on timely topics through informational sessions and informal discussion
4
Leadership Day Themes
2010: Cohort - Based Themes
Including - Health & Wellness, Trust, Customer Relationship Management, and Lean Organizations
2011: International Business
2012: Granite Collaboration
5
Leadership Day Agenda
Timeframe Agenda
1:15 – 2:30 PM Granite Company Collaboration Panel
2:30 – 2:45 PM Break
2:45 – 4:45 PM Role-Based Groups Brainstorm + Present (with break)
4:45 – 5:00 PM Wrap Up Session
5:00 – 5:30 PM Break
5:30 – 6:00 PM Social
6:00 – 7:00 PM Dinner and Kevin Kling
7:00 – 8:30 PM Fellowship (optional)
6
Welcome to Today’s Moderator
• Pat Mitchell
• Retired President & COO of Cold
Spring Granite Company
• Board Chair, DeZURIK and Geotek
• Director, Granite Equity LLC
• Chair, Granite Collaboration Team
7
Granite Collaboration
Purpose –– to explore and recommend potential collaborative initiatives that would have
the potential to benefit most/all of the Granite Companies.
Granite Collaborative Team –– One representative from each company, with functional diversity on the
team– Researches and recommends initiatives to the Granite boards, including
Granite Equity, LLC, with input from various stakeholders (starting today).– Pat Mitchell will Chair the Team and Shelly Bauerly Kopel will provide
administrative support.
Principles (to be further refined) –– Build on the value that has been adding though the sharing of stories, best
practices, and lessons learned over the years– Strive for win-win collaborations– Capture “low hanging fruit” and opportunities for high and broad impact– Stay agile and avoid corporate bureaucracy– Report updates on an annual basis (likely at this Annual Meeting)
8
Overview of Granite Collaboration Input Process
Granite Collaboration
Team
Example
Example
Example
Example
Example
Example
Panel Discussion
Group Brainstorming & Prioritization
Granite Collaboration
Team
9
Panel Presenters
Frank Wohletz – CFO, Microbiologics on Shipping Logistics with Spee-
Dee Delivery (Midwest) and FedEx (Outside the Midwest)
Cary Simon – Human Resources Director, DeZURIK on Leadership &
Management Development with Anderson Center
Dale Nordquist – CEO, GEOTEK on Community Giving with United Way
Art Monaghan – Partner, Granite Equity on Company Valuations with
Houlihan Lokey
Greg Closser – CEO, All Flex on Process Improvement with StrateX
Tracy Schulte – Associate, Granite Equity on Graniteman Triathlon
10
Shipping Logistics – Fed Ex (Outside the Midwest)
Leadership Day 2011 -Finance Cohort
– Federal Express Project
– Purchasing Department • Boxes• Copiers• Office Supplies• Shipping Supplies
The Team– Circuit Check
• Jim Hanzlik• Carol Peterson
– DeZurik• Dean Haskamp• Bonnie Funk
– Granite Equity• Ryan Schwartz
– Microbiologics• Jodi Corrigan• Frank Wohletz
– Federal Express• Sean O’Brien• Bruce Taylor• Patti Silverstein
11
Shipping – Fed Ex (Outside the Midwest)
Negotiated GEP Discounts from List
– Overnight - 63% + Volume (1%-5%)
– 2 Day – 58 % + Volume (1%-5%)– International – 62-75% + Volume
(1%-5%)
More to Come…– LTL (Ground) – Options in
June/July of 2012
Better Discounts based on Combined Volume
– Circuit Check• $35,000 Annual Savings
– Microbiologics• $40,000 Annual Savings
Results Benefits
For more information: Frank Wohletz – [email protected] more information: Frank Wohletz – [email protected]
12
Shipping – Spee Dee Delivery (Midwest)
Everyday low pricing at 30% below Fed Ex for local (Midwest) shipping
Owned by long-term core Granite partner/investor
Spee-Dee’s Delivery Area Benefits
For more information: Craig Heurung at Spee-Dee at 320-251-6697 [email protected] more information: Craig Heurung at Spee-Dee at 320-251-6697 [email protected]
13
Leadership & Management Development The Anderson Center
Leadership Forum (17)Executive Forum (18)Manager’s Forum (17)
Nearly 60 Granite leaders have attended at least one of these forums recently.
15 Granite leaders are scheduled for Leadership Forums in July & November, 2012.
Strategy Forum – July 16-20, 2013
For more information: Venita Wilkes – 320-253-3215www.anderson-center.orgFor more information: Venita Wilkes – 320-253-3215www.anderson-center.org
Forums Anderson Center
OverviewSkilled, Experienced Discussion LeadersDiverse ParticipantsCollaboration Action Item
14
Safety Initiative – Refined at March Leadership Forum
Goal – To decrease OSHA recordable injury rate from 8 to 6 by Dec 31, 2012.
Lag Measure – OSHA Recordable Rate
Lead Measures (“Steps to Safety”)– Cleanliness– Eye Protection– Injuries
Progress and March Leadership Forum (my Wildly Important Goal, with clear metrics on a Scorecard)
For more information: Cary Simon – [email protected] more information: Cary Simon – [email protected]
Safety Initiative
15
Community Giving – United Way
For more information: Dale Nordquist – [email protected] get started: Contact your local United Way – unitedway.orgFor more information: Dale Nordquist – [email protected] get started: Contact your local United Way – unitedway.org
Geotek’s First United Way Campaign Our Challenge to You
1. Consider a Community Giving Initiative, if you don’t already
have one.
2. Challenge – Let’s try to get to 75% Employee Participation in
United Way (or other Community Giving Initiative)
TOTAL PLEDGES AND DONATIONS =
$7,450.60
Employee Pledges $4,633.00Employee Auction $317.60Geotek Match $2,500.00
49% Employee Participation
Awarded Best Campaign in Olmsted County!
16
Company Valuations – Houlihan Lokey (HL)
In 2011, the Granite Equity LLC Board of Directors engaged HL to value Granite Equity Limited Partnership's interests in DeZURIK, Vector Windows, Asset Recovery, Heartland, and the partnership as a whole
Granite Equity LLC will also engage HL to perform an annual update of these companies', and new portfolio companies‘ valuations going forward.
Houlihan Lokey 2011 Project BenefitsHigh credibility - HL has a #1 position by volume globally in the middle market.
HL brings:ObjectivityIndustry and Product ExpertisePeer and Industry Recognition
Important value creation feedback loop for boards and management teams
Helpful in valuing management team ownership, especially with a perpetual fund
For more information: Art Monaghan – [email protected] also: HL.comFor more information: Art Monaghan – [email protected] also: HL.com
17
Continuous Improvement – StrateX
New Ownership and Management50-60% On-Time-Delivery20% increase in Short-term Demand
----------Production: Push out lead timesSales & Marketing: “We build flex
circuits and sell HOPE!”Management Decision: Get outside help
to accelerate improvement in performance.
Board of Directors Advice: “Recommended that we work with Bob Krausert at StrateX…Best in the five-state area.”
Lessons Learned• Management has to decide what
needs to be done• When you need an external
resource, eliminating the risk of a wrong choice is… priceless!
Results• On-Time-Delivery 95%• 25% capacity increase after
eliminating 2nd shift
2007 Scenario Outcomes
For more information: Bob Krausert – [email protected] more information: Bob Krausert – [email protected]
18
Graniteman Triathlon
First Annual (2010):– 3 Companies - Atomic Learning,
Granite Equity, & MicrobiologicsSecond Annual (2011):– 11 relay teams and 16
individuals – 6 Companies - Circuit Check,
Atomic Learning, Microbiologics, Anderson Center, KDV and Granite Equity
Participants Granite’s Third Annual Participation - 2012
July 14, 2012– .46 mile swim across Warner Lake– 15 mile bike ride– 3.1 mile run
Third Annual (2012):– How many new companies can we
get to participate?– How many total companies can we
have participate?– Relay Teams?– Individuals?
2011 Relay Team Winner was the team from Circuit Check2011 Individual Winner was Greg Schumacher
19
Graniteman Triathlon – Register by June 8th!
Relay Team Traveling Trophy– All employees; OR 2
employees + 1 immediate family member qualifies
Individual Traveling Trophy
GIVE IT A TRI!!!Register by June 8th
Granite Equity Company Challenge
For more information: Robyn Baker – [email protected] also: granitetri.comFor more information: Robyn Baker – [email protected] also: granitetri.com
21
Process for Role-Based Breakout Groups
BrainstormingShort-Term &
Long-Term
Prioritization Short-Term & Long-Term Ideas
Presentation of Prioritized Ideas
Short-Term Collaboration
Ideas:
1. Idea #12. Idea #23. Idea #3
Long-Term Collaboration
Ideas:
1. Idea #12. Idea #23. Idea #3
Short-Term Ideas:
Long-Term Ideas:
* See Participant List for Group Assignment
22
Things to Note
Upcoming Opportunities
– Graniteman Triathlon
– Fall SJU Football Gatherings
Evaluations
– Fill out now – collected at the door
Tonight…
– Social – Starting at 5:15
– Dinner – Start at 6:00 (with entertainment by Kevin Kling)– Kevin Kling is a well-known playwright and storyteller, perhaps best known for his
popular commentaries on National Public Radio. He delivers hilarious, often tender stories, and his plays and adaptations have been performed around the world... But tonight, we have him with us at dinner!
Tomorrow…
– 10:00 -1:30 p.m. Tradeshow in Guild Hall
– 2:00 – 7:00 p.m. Stakeholder Meeting, Social and Dinner