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Built to Last. CMC - HR Special Interest Group Trow Global. Rob Petrov Senior Vice President. Presentation Overview. Trow Global intro & background What it takes to be a “50 Best Managed” company People-building Managing change Leadership development Integration & talent retention.
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Built to Last CMC - HR Special Interest Group Trow Global Understand, Innovate, Partner, Deliver
Rob Petrov Senior Vice President
Presentation Overview • Trow Global intro & background • What it takes to be a “50 Best Managed” company • People-building • Managing change • Leadership development • Integration & talent retention
Trow Global • One of the world’s fastest growing engineering firms and 4th largest Canadian engineering firm • Gross Revenue of $400 million, Net Revenue of $250 million, • Compounded annual growth rate of 41% while maintaining profitability • 3000 employees in 100+ locations in 8 countries • Coast to coast to coast presence in North America, from Burnaby and San Diego to Orlando and St. John’s to Nunavut • Owned and operated by employees; experienced Board • Multiple winner of Canada’s 50 Best Managed Companies (including 2009); DefiMeilleurs – Best Employer, 1st place in Large Employer category • Diversified business model in services provided, markets served and geographic locations • Key Practice Areas: Multi-disciplinary Engineering, Environmental, Architectural, Urban Planning and Project Management • Key Markets: Buildings; Earth, Environment, & Sustainability; Energy, Industrial and Infrastructure
Our Mission • Provide innovative solutions in engineering, project management, environment and urban planning. • Deliver superior value and service to our customers, and sustained profitability to our shareholders • Invest in our people and practices • Lead through strong relationships with clients, through motivated employees, technical excellence and quality management. • We understand, we innovate, we partner and we deliver.
Our Values • Client-focused • Innovation and continuous improvement for both clients and staff • Respect (trust), integrity, loyalty • Leadership, empowerment, teamwork • Employees are our most important asset & we have a continuing commitment to enhance their professional & personal development • Openness (to change)
Revenue and Employee Growth Net Revenue Growth Fiscal Year Ended March 31, $CDN Personnel Growth Fiscal Year Ended March 31 Includes US #1 Includes US #1 41% compounded annual growth rate 43% compounded annual growth rate F F Approx. ¼ of growth is organic Approx. ¾ of growth through acquisition
The Merger in 2008 • On June 13, 2008, merger of Trow and Teknika HBA to form Trow Global completed and minority investment by global growth equity firm General Atlantic • Gross Revenue of $253 million, Net Revenue of $170 million – one of the largest 10 engineering firms in Canada • Balance sheet debt-free at time of transaction • One of Canada’s 50 Best Managed in 2007 (and in previous years) • National and diversified company, with international footprint, and strong historical growth organically and through acquisitions • Blue chip clientele and strong, experienced management • Balanced mixture of private and public sector clients
Since 2008 Locations Specialties Staff 2008 Merger AB, BC, ON, QC, USA, INT Trow Global 1,800 Multi-disciplinary Trow Global = [Trow + Teknika HBA + GA Investment] Specialties Latest Acquisitions Staff Locations Advanced EnvironmentalEnvironmental London, ON 15 Occupational Hygiene Banerjee & AssociatesStructural Markham, ON 35 Group Eight EngineeringElectrical Hamilton, ON 40 Mechanical Structural Lab 2000Environmental Laval, QC 60 Geotechnical Joliette, QC Materials PROCDIndustrial Quebec, QC 30 Progenie Civil Sept-IIes, QC 10 Mechanical Montreal, QC Richardson FosterCivil Barrie, ON 40 Municipal Hamilton, ON Water Resources Bracebridge, ON Smylie & CroweElectrical London, ON 30 Mechanical ADI Limited Multi-disciplinary Fredericton, Saint John, Moncton, Oromocto, NB 350 Architecture Charlottetown, Summerside, PEI Halifax, Truro, Sydney, Port Hawkesbury, NS, St. John’s, NF Edmonton, AB X-nth Mechanical Atlanta, GA; Boston MA; Las Vegas NV; 320 Electrical Milwaukee, WI; Orlando FL; San Diego & San Francisco CA; Plumbing Beijing & Shanghai, CHINA; Nagpur, INDIA Barenco Environmental Gormley, ON 40
Office Metro Area Province 2006 Pop. (000s) Toronto Ontario 5,113 Montreal Quebec 3,636 Vancouver British Columbia 2,117 Ottawa-Gatineau Ontario/Quebec 1,131 Calgary Alberta 1,079 Edmonton Alberta 1,035 Quebec City Quebec 716 Winnipeg Manitoba 695 Hamilton Ontario 693 London Ontario 458 Kitchener Ontario 451 St. Catharines-Niagara Ontario 390 Halifax Nova Scotia 373 Oshawa Ontario 331 Victoria British Columbia 330 Windsor Ontario 323 Saskatoon Saskatchewan 234 Regina Saskatchewan 195 Sherbrooke Quebec 187 St. John's Newf./Labrador 181 Barrie Ontario 177 Kelowna British Columbia 162 Abbotsford British Columbia 159 Greater Sudbury Ontario 158 Kingston Ontario 152 Canadian Locations Local Presence in 80% of Canada’s 25 Largest Metro Areas √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ • 100+ offices worldwide with over 75 offices across Canada • Over 3,000 employees • One of Canada’s 50 Best Managed Companies √ Office
North American and Global Locations Network of Global Offices Staffed by Trow Professionals Atlanta, Boston, Houston, Kansas City, Las Vegas, Milwaukee, Orlando, San Diego, San Francisco, Tallahassee, USA Ho Chi Minh City, Vietnam Jeddah, Saudi Arabia Algiers, Algeria India China
Typical Clients A Sampling of the Clients We Serve Public Sector Private Sector
Experienced Management Team Executive Committee Team External Board Directors Vlad Stritesky, President and CEO: President since 1995, Board Member Greg Henderson, CFO of Trow Global Ronald Blanchard, Senior Vice President of Finance Stan Gonsalves, Executive Vice President and President of Trow International Wilfrid Morin, President of Teknika HBA Division and Sr. Vice President, HR/Quality Management:President of Teknika HBA since 1998, Board Member Tom Ng, Senior Vice President of Canadian Operations:Board Member Marc Tremblay, Senior Vice President of Teknika HBA & Trow Global Québec Regional Manager Rob Petrov, Vice President Corporate Services Mike Koski, President of Trow Engineering Consultants Inc. Robert Sheh, Chairman: Founder and Managing Partner of Alta Group LLC, former President of CH2M Hill International and CEO of Parsons The Honourable William Davis: Counsel to Torys LLP, Former Premier of Ontario Raul Fernandez: Chief Executive Officer, ObjectVideo; former CEO, Proxicom; former member of the U.S. President's Council of Advisors on Sci & Tech. Chairman of the Compensation Committee Philip Trahanas: Managing Director, General Atlantic, the world’s largest global growth equity investment firm Daniel Johnson: Counsel to McCarthy Tétrault LLP, Former Premier of Quebec, Director of the Bank of Canada. Chairman of the Governance Committee Sam Iapalucci: Former CFO of CH2M Hill. Chairman of the Audit Committee
Project Awards Awards for Parent Company and Regional Divisions, 2008 - 2010 • 2010 Consulting Engineers of Alberta Showcase Awards • ReNew Canada Magazine – 21 of the Top 100 Infrastructure Projects in Canada • Total of 4 Awards for BubbleDeck® technology • Award of Merit, Consulting Engineers of British Columbia • Grands Prix québécois de la qualité
Management Awards Awards for Parent Company and Regional Divisions, 2008 - 2010 • 6th on the ZweigLetter 200 Hot Firms List • Engineering News-Record (ENR) – Top 150 Global Design Firms • ENR – Top 200 International Design Firms • Brampton Outstanding Business Achievement Award • Business Achievement Award • DéfiMeilleursEmployeurs – 2008 and 2009 • Canada’s 50 Best Managed Companies
Growth Strategy Growth (in 2012) Net Revenue: From $200 to $500+ M Organic Growth: 10% to 15% Acquisition Growth: 10% to 15% Employees: From 2000 to 5000+ Expanded Practices All Expanded Markets Buildings Earth, Environment & Sustainability Energy Industrial Infrastructure Expanded Locations Canada United States International
Synergies Achieved with Growth • Complimentary geographic locations – national international presence with critical mass • Improved diversification in services offered, markets service, and geographic locations – Risk Mitigation • Improved ability to secure technically challenging and large $ value projects with less competition • Employee relocation opportunities in a strong labour market • Faster reaction time to seize global opportunities and expand further with a Global platform • Take advantage of engineering services required to repair/replace the Global infrastructure challenges • Enhance the company’s value for a future Initial Public Offering to provide the second round of capital to grow Globally • Realize better economies of scale within a larger entity • Cross-selling opportunities and improved ability to piggy back off of existing clients in terms of services offered and geography’s served
Canada’s 50 Best • Benchmark for Canadian companies • Trow Global and our member companies are multi-time winners/requalifiers • Unique because it focuses on more than financial performance • An opportunity to self-evaluate all aspects of our business, including HR
Canada’s 50 Best The Requalification Submission • Changes to corporate strategy • Business model and planning process • Significant changes in finances, key personnel • What benefits have resulted • Financial highlights • Corporate social and environmental responsibility initiatives • Promotion of 50 Best designation The Process Winning versus Requalification
Benefits of ‘50 Best’ Benefits of the award • Wide recognition & exposure • Competitive edge • Enhanced credibility • Promotional assistance • Job creation • Sustainable growth • Networking opportunities • Recruiting benefits • Employee pride and involvement
What’s Next? • 50 Best Managed Platinum Club • First participation in Best Employers in Canada • Our HR initiatives go beyond reaching EoC status
Nicole Mahoney Director, HumanResources
Managing Change Managing People through Change … Step by Step Demonstrate a thorough understanding of the business and the impact of change • New Structure • New and Major Technological Enhancements • New People (Old regime vs New) • IPO Readiness
Managing Change Brainstorm (Team) the imperative for change, establish the vision moving forward and obtain alignment • Establish a sense of urgency • How is the business exposed if we don’t change? • Create a sense of excitement about the future • Buy-in is critical … people have to agree the vision is better
Managing Change Impact on People and Planning (Involve and Engage the right people) Drill down to identify gaps • Resistance • Blockers • Other Projects/Initiatives • Timelines • Capability
Managing Change Determine actions • Training plans • Communication plans • Alignment plans • Involvement plans • Sustainability
Leadership Development Finger on the pulse always … Gap analysis • Interviews with EC to Front line • Organizational Pulse Surveys • Communication effectiveness Surveys • Roundtable discussions
Leadership Development Finger on the pulse always … Solutions focused • Executive coaching • Strategic Leadership Messages (Change, Growth, Expectations) • Leadership Forums linked to gaps and business issues • Priority recommendations are determined, communicated and actioned • Post session confidential surveys are conducted and objective feedback is relied on for next sessions
Integration & Talent Retention Critical factors on review • Talent • Approach to business, morals, ethics • Financial success
Integration & Talent Retention Strategic decision to enhance and diversify • Partnerships not takeovers (strong collaboration/transparency) • Phased in approach (benefits/payroll/policy/process)
Integration & Talent Retention Continuity of success • Maintain entrepreneurial spirit (continue to do what they do) • Collaborative approach • Transparency (process; tools; experience; knowledge, etc…)
Managing Growth • Change • Leadership Development • Total Compensation