Operating Processes Manitowoc Company

1. Operating ProcessesManitowoc Company AIMC Conference June 2, 2003 Steve Kopecky, Manitowoc Company Tracy Pleus, Manitowoc Company Mike Venn, Tradewinds Consulting, LLC

2. Outline • Overview of Manitowoc Company • Evolution of the Accelerated Leadership Development Process (ALDP) • Executive involvement • Internal/external partnership • Successes and key advice • Impact of program

3. Founded in 1902, Manitowoc is a leading global, diversified, multi-industry manufacturer Overview • Crane Group • Crawler cranes • Tower cranes • Mobile telescopic rough-terrain and all-terrain cranes • Boom trucks Foodservice Group • Ice-cube machines • Ice/beverage dispensers • Walk-in refrigerators/freezers • Reach-in refrigerators/freezers Marine Group • Commercial ship construction • Government and special-use vessels • Repair, maintenance, and conversion services

4. Organizational Development and Effectiveness Department • One person when project was started • Reflect the corporate philosophy of very small headcount and overhead • Prefer to work in partnership with vendors who compliment internal expertise • Look for vendors who can present turnkey solutions

5. Pre Getting Started • Varied support existed • 2-3 prior attempts to institute high potential development laid groundwork • Achieved critical momentum when: • Established credibility with executive team and board of directors by providing successful service around corporate governance • New acquisitions made need to improve bench strength critical

6. Getting Started • Selected external resources to partner with • Worked together to craft and deliver a compelling story to the executive team for improving bench strength • Received agreement to analyze the need for a one-week program

7. The Analysis • Asked to review any data that would help us understand business direction and challenges • Individually interviewed the entire executive team • CEO • 3 group presidents • VP of HR • CFO • CIO • Additional person focused on key initiative

8. The Analysis Questions • Asked questions in 7 areas • What was most influential in promoting and accelerating their growth as a leader • Topics that would help make their business and your people more successful • Expectations around logistics of a program • How they would like to sponsor and participate in the program • Key indicators of success for a program • Their model for leadership effectiveness • How a program could support their strategic direction and vision

9. The Program • Four weeks in length! • Unanimous willingness to be involved! • Focused around a core business process! • Work them hard! • Budgeted for action learning projects!

10. Executive Involvement • Week One • Program “launched” by CEO Sunday evening and Monday morning • Each of the three Group Presidents had 1.5 hours with the group to discuss their “part of the world” and the challenges they saw ahead • Sat in on some of the sessions • Had panel discussion with successful Manitowoc GMs

11. Executive Involvement • Week Two • Action learning project involved leadership teams from three Manitowoc businesses • One Group President attended report of action learning projects • VP of HR, VP of Sales, Treasurer, lead operations person gave presentations • CEO and three Group Presidents joined us for lunch • Held panel discussion with the three Group Presidents and external consultant used for strategic planning (CEO sat in on this)

12. Executive Involvement • Week Three • CEO joined us at a Packers game • Action learning project involved leadership teams from three Manitowoc businesses • One Group President and VP of HR attended report of action learning projects • Participants selected “final project” and were given training on influencing and communication skills to prepare them to interact with the executive team

13. Executive Involvement • Week Four • Participants attended Manitowoc Company annual meeting • Participants had dinner with Manitowoc Company Board of Directors • Final project results presented to executive team

14. Executive Involvement • Additional executive interaction occurred through • Informal conversations with OD&E Department staff • Formal updates and written reports after each ALDP session

15. As the Project Evolved • Shortly into the project we realized it would be more cost effective to add internal staff • Added one full-time professional and a shared administrative person • Additional staff allowed us to deliver the project below budget

16. Expertise on internal culture and need/manner for influencing Knowledge of what program needs to align with Overall project management Communications Some delivery Administrative coordination Capture lessons learned Around for daily influencing Experience in leadership development Knowledge of external trends Initial analysis recommendations Initial design recommendations Knowledge of external presenters Much of the delivery Internal/External Partnership Internal External

17. Partnership Example—Program Debrief • Attended by internal and external partners • Occurred after each program week • Followed consistent format • Review evaluations • Document changes to second offering of week • Use knowledge and evaluation data to improve design subsequent weeks • Describe “unstructured benefits”

18. As the Program Evolved • Got to know skills and capabilities of participants • Received feedback • Altered approach to fit “the team” • Faced some challenges • Participant commitment to program varied • Day-to-day demands (participants and internal team) • Implementing development plans • Constant need for communication

19. Successes—Early Wins • A tool suggested by a participants during week one immediately adopted by a Group President into his situation analysis • Discovery that another part of the business had capability to do needed lab testing • Conversations among participants about different business potentials

20. Successes—Later Wins • Awareness of how quickly one could learn about another business and contribute valuable ideas— important to future direction of moving employees across businesses • One participant adopted metrics used in another business • Ideas from participants finding there way into several 2003 business plans • Two participants “recruited” to improve some 2003 business plans • Business planning process for 2004 “taken to the next level” through contributions of the participants • 6 of 13 have been promoted since the program began a year ago

21. Moving Forward • Initial champion departed, but another has stepped up • New member of executive team • Transition bench strength from a “treatment” plan to a “wellness” plan • Competing for attention with other priorities • Continuing to align with other initiatives

22. In Summary • Internal/external partnership worked by putting the right tasks in the right hands and trusting each other • Executive support was created and sustained by • Involving the entire executive team from the beginning • Building a program that met their mindsets for executive development and solved their current business challenges (with an eye to the future) • Engaging executives in some manner during every week of the program

23. Key Advice • Continually think at the strategic level • Address issues on a daily basis • Work to achieve the right balance between the strategic and the daily • Don’t underestimate the importance of using the right process to select the right participants • Tap into the passion of the participants

24. The Impact of Group One • Improved business plans in 2003 • Executive endorsement of an even more effective business planning process for 2004 • Corporate confidence that leadership expertise CAN transfer across businesses • A new business proposed • For 14 participants a support network across the company that will last a lifetime