OEOC Conference : Maintaining Employee Ownership: Is it in Top Management’s Job Description?

1. OEOC Conference:Maintaining Employee Ownership:Is it in Top Management’s Job Description? April 19, 2013 Jeffrey Evans The Will-Burt Company CEO, President and Chairman

2. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Will-Burt: 1894, 1918, 1986 ESOP • 6th CEO over 120 years • Several other ESOP boards of directors Jeffrey Evans, THE Will-Burt Company

3. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Employee-owned companies do better than their peers • Sales and profits • Employee morale • Adherence to values and mission • Long-term wealth creation for everyone How do ESOPs stack up with others?

4. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Will-Burt from 2000 through today • ESOP company on the verge of bankruptcy • TRW / Argotech • Firestone Tire Stores ESOP Success Examples

5. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • It starts at the top - leadership must be committed to the ownership culture • Employees that think and behave like owners perform like owners So HOW does this happen?

6. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Communications – start with listening • Shared challenges, shared resources, and shared benefits • Be true to your values HOW is the Culture Built and Nurtured?

7. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Start with listening • MBWA • Quarterly Newsletter • Quarterly All Hands Meeting • Weekly “News from the ‘Burt” • Open door policy 1. Communications

8. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Monthly lunch with the president • Monthly EAC meeting (employee activity committee) • Z-Dep quality policy 1. Communications

9. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Open book management • “The good, the bad, and the ugly” • Everyone needs to understand the goals • Include key objectives and metrics • Everyone gets annual strategic plan summary • Accountability and alignment • “It is not / IT IS my job!” 2. Shared Challenges, Resources, Rewards

10. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Good communications, alignment and accountability lead to a “Snowball Effect” • Develop and follow the plan • See improvement • Achieve shared profits and stock valuation • Go back to step #1 2. Shared Challenges, Resources, Rewards

11. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Will-Burt Mission and Values • Long-term Goal: Make Will-Burt a place where people want to work • Quality, safety and profit (in that order) • Balance between current income and bonus, benefits, and long-term stock growth 3. Be True to Your Values

12. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • Fair wages • 2 retirement plans (ESOP, matching 401-k) • Excellent medical and other benefits • Bonus to all employees in “good years” • Excellent stock value growth 3. Be True to Your Values

13. Maintaining the Ownership Culture:Is it in Top Management’s Job Description? • ESOPs are better for customers, employee-owners • Tax law and structure make ESOPs possible • Culture makes performance happen • Top leaders must develop, feed and care for ownership culture 3. Be True to Your Values

14. Thank You !!!