Creating and Sustaining a Continuou s Improvement Culture

1. Creating and Sustaining a Continuous Improvement Culture Rick Landin Brian Wellinghoff

2. Our Purpose • Express our belief that business can be a positive force within our society • Dig deeply into concrete experiences that have defined our journey • Detail how we foster our L3 culture • Assist you in finding at least one idea you can implement on tomorrow morning

3. Living Legacy of Leadership We commit to a sustained leadership model that creates a culture where each of us returns home with a sense of fulfillment.

4. Living Legacy of Leadership • Daily Communication • Responsible Freedom • Empathy • Celebration “Everyone has the capacity to be a leader”

5. Feedback to our Vision “You introduced us to a new concept of a purpose-driven company. For most of us this was clearly a new and enlightened way to view and act out our roles as a CEO.” Dick Gochnauer, CEO United Stationers “You speak to a basic and heartfelt need found in every person.  Thank you most of all for reminding me that leadership is to be, and can be inspirational in this regard…it is easy to lose sight of that basic and essential thought. “ Rob Colones, CEO McLeod Health

6. L3 Journey MWU (Hunt Valley) Comparing FY ‘07 to FY ’08: 100%increase in OI 27%sales growth Increase in inventory turns from 6.3to7.3 These results are the by-productsof our people-centric leadership focus

7. L3 Team

8. Role of the L3 Team • The L3 Team (or Lean Promotions Office) has the full-time responsibility to facilitate the change process along the L3 Journey • 35 L3 leadersare engaged across a dozen North American locations, plus 2 international L3 leaders • An L3 Team member’s most important role is to be a change agent- L3 leaders become proficient in communication, recognition, and emotional intelligence • Local resources benchmark every other BW division for best practices

9. Nurturing Exceptional Leaders • Along our L3 Journey, we have new opportunities to identify and recognize outstanding leaders

10. Exceptional People; Exceptional Results • In the last year, we have completed • More than 200 Kaizen events • More than 100 Lean projects • More than 1000 person-days of training • More than 30 value streams enhance our communication and the responsiveness to our customers on a daily basis

11. Addressing the Economic Climate “The American economy and much of the world now face extraordinary challenges, and confronting these challenges will continue to require extraordinary actions.” – Timothy Geithner, Treasury Secretary (March 23) • We are morecommitted than ever to enhancing our contribution to strengthen the future and fulfillment of all Barry-Wehmiller associates. • Given the overall economic environment, we are an integral part of the value propositionto create a future in harmony with each organization’s vision.

12. L3 Journey • As we experience softness in the production schedules, we have launched Lean events focused on short and long-term value creation, creating productive work for team members who may otherwise be idle. • We are focused on investing in our people and our businesses to emerge from this period even stronger. I feel privileged to be a part of the Barry-Wehmiller family and to work for a company that I believe truly does care about the lives and well being of the people that are a part of it and has our best interest in mind to ensure a long and stable future for all of us. – Samantha Ramsey

13. Keeping People Creating Value • Prioritized list of projects tied to the organizational strategy deployment (HoshinKanri) process. • Prioritized based on need, justification, payback potential. • Activities that will allow the organization to be more efficient and competitive coming out of the downturn in the economy.

14. Firsthand Stories Rick Landin

15. Firsthand Stories of our Culture • HayssenSandiacre is a 100 year-old manufacturer of form/fill/seal equipment • Combination of 2 acquisitions by Barry-Wehmiller in 1997 & 2006 • A “good place to work” with a strong track record of performance

16. Firsthand Stories of our Culture • In 2002, our team members helped author the Guiding Principles of Leadership- which challenged our view of culture • We realized that our “traditional” manufacturing practices weren’t aligned to our new vision, and we began to make changes • Took out time clocks • Took out start/break/quit alarms • Flexible work schedules • Computer access to all team members • Touch meetings throughout the facility

17. Firsthand Stories of our Culture • In 2007, with the retirement of several key manufacturing leaders we moved to a new structure in manufacturing with 7 team leaders. • These hardworking individuals had a wealth of experience, but no formal leadership training. • Through BWU, we began to focus on communication skills and leadership training.

18. Firsthand Stories of our Culture • My own BWU experience- • Working for someone at the top who cares about my personal development • Bob leads by example- with genuine caring for us and the people we touch inside and outside work.

19. Firsthand Stories of our Culture

20. Firsthand Stories of our Culture

21. People-Centric Leadership Through people-centric leadership, we align... the head to a vision the heart through inspiration thehandsto continuous improvement The results are ... sustainable levels of trust, FULFILLMENT and value creation for ALL stakeholders

22. Continuous Improvement Culture • Questions?

23. Practical Leadership Development Rick Landin Rhonda Spencer

24. Practical Leadership Development • The most important leadership development comes from experience. • We are committed to continuing to grow as a company, so that people have opportunities to grow through experience. • Our leadership culture, brought to life in the L3 journey, is critical to creating an environment for personal growth.

25. Barry-Wehmiller University • Barry-Wehmiller University is founded upon the conviction that it is our responsibility to develop an integrated, inspirational and sustainableway of living our L3 vision. • It is our belief that we can use the power of businessto dramatically impact the world in a positive way.

26. Barry-Wehmiller University • If we want to change the world, we must change the way we lead. • We are committed to inspiring deep and lasting personal change.

27. In our first two years, Created over 250hours of unique teaching content Engaged 650students in the BWU learning experience Certified 65BW Leaders to share their gifts through professorship Delivered over 4,900person-days of learning Launched online Learning Center to support access to the University across the organization Barry-Wehmiller University

28. BWU’s Brand of Leadership • What is Taught - (Curriculum) The distinctive Barry-Wehmiller Leadership brand. • Who Teaches - (Professors) Frontline leaders collaborating with BWU leadership on the creation and presentation of training. • How we Teach – (Process) Pre-work, inspirational training and supportive post-work that enables real leadership transformation.

29. BWU’s Brand of Leadership • Who we teach - (Students) • We target those individuals who have the greatest capacity to respond. • Each student must demonstrate their desire and commitment through an application process. • It is an honor to be selected. • We do not have a top-down approach. We reach out to the natural leaders in the organization- regardless of role.

30. BWU Delivery Channels • Individuals apply • Participants from various divisions • Limited capacity, highly selective • Emphasis on significant behavioral change • Taught locally • BWU certified professors • Divisions drive capacity • Emphasis on expanding a specific skill set • Learning Center or via webinar • Available “on-demand” • Nearly unlimited capacity • Emphasis on building understanding

31. Delivery Channels

32. BWU Student Experience • Every aspect of the BWU experience is carefully designed to impact significant personal change. Nothing happens by accident!

33. BWU Student Experience

34. Pre & Post Training Process Elements Occurs Pre-Class Set Personal Direction Leverages Course Objectives Focuses Mindset Occurs Weekly Personal Reminder Leverages Technology Invites Personal Action Refocuses Memory Personal Relationship Leverages Mentor’s Experience Provides Guidance, Support Focuses on Personal Mastery Occurs via Conference Call Peer Relationships Invites Discussion & Practice Creates Community Peer Accountability

35. L3 Fundamentals

36. L3 Fundamentals • L3 Fundamentals was the first class we launched in BWU • Fundamental to living our vision Connecting why we are doing this to how to do it.

37. L3 Fundamentals • Two week experience beyond the classroom • Essential lean tools- process mapping, 7s, SMED • Leadership behaviors- communication, leading change

39. LeadershipFundamentals

40. I accept the awesome responsibilityof leadership. Leadership Fundamentals

41. I practice stewardship of the Guiding Principles of Leadership through my time, conversations and personal development. Leadership Fundamentals

42. My personal communication cultivates meaningful relationships. Leadership Fundamentals

43. I reflect to lead my team in Achieving Principled Results on Purpose. Leadership Fundamentals

44. I exercise responsible freedom, empowering each of us to achieve our potential. Leadership Fundamentals

45. Professor Experience

46. Practical Leadership Development • Questions?

47. Measurements: Winning the Game Rick Landin Brian Wellinghoff

48. What it Means to Win • How do you define winning? • Why can’t the game of business be fun, challenging and rewarding?

49. What it Means to Win • This is what it means to win at Barry-Wehmiller Nicolas with his daughter, Candice and Eric

50. Winning in Operations:Service Parts Value Stream