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Great Culture and Place to Work

Great Culture and Place to Work Cultural Development Toolbox Rosalia Cunningham - Chief Sherpa & HNA OD Team Office of the CEO January 13, 2012. Today’s Journey. Hilti History …. What is Hilti ? A Snapshot.

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Great Culture and Place to Work

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  1. Great Culture and Place to Work Cultural Development Toolbox Rosalia Cunningham - Chief Sherpa & HNA OD Team Office of the CEO January 13, 2012

  2. Today’s Journey

  3. Hilti History …

  4. What is Hilti ? A Snapshot Hilti holds a leadership position world wide in the specialized field of fastening and demolition systems for the construction industry Hilti holds a leadership position world wide in the specialized field of fastening and demolition systems forthe construction industry Measuring Distance measuring,Leveling & aligning,detecting Insulation & Protection Drilling & Demolition Foams Systems,Fire Stopping Drilling & chiseling,Diamond systems Cutting & Grinding Professional Services Cutting, sawing, sanding,Diamond systems Full Service, Calibration,Fleet Management, Financial Service,Anti-theft protection Fastening & Installation Planning & Specifying AnchoringDirect fasteningScrew fasteningInstallation Specification, Consulting,Engineering, Software

  5. Where is Hilti ? EVERYWHERE !! Europe 3 Europe 2 Europe 1 North America Asia Latin America Africa, Near and Middle East

  6. Who is Hilti? Mr. Hilti and family Founded in 1941 Martin Hilti (1915 - 1997) as Hilti oHG - a mechanical workshop in Schaan, Principality of Liechtenstein, with five employees 1971Acquisition of a production plant at Kaufering, Germany 1954 - Step-by-step setting up of an international sales network with independent sales organizations and local representatives - Construction of the parent plant in Schaan 1972Founder – Health Issues 1964 Addition of a drilling and anchoring line to the sales program 1948Start of development of a powder-actuated fastening system

  7. 1985 Creation of three divisions: drilling and demolition, powder-actuated fastening and anchor technology 1989Development and initial implementation of Strategy 2000 1979 Inauguration of headquarters for North and Latin America at Tulsa, Oklahoma, USA 1986Innovation (INNO) – Work/Life Balance 1994 Our people and company culture are not soft-strategy elements, but key drivers of our company’s success, one of our biggest secrets to living our purpose Michael Hilti – Chairman of the Board of Directors 1987Entry into construction chemicals market 1985Leadership Makes a Difference – Culture Statement 1982Entry into diamond coring and cutting market, and launch of first breaker

  8. 2003Operating in more than 120 countries, 110 Home Depots and the Internet with 9 manufacturing plants, and app. 14,100 employees. 1994 Founding of Hilti Asia Ltd. in Hong Kong and relocation of Asia market region management from Schaan to Hong Kong 1996 Revision of corporatestrategy 2003 Global Rollout 1998 Step-by-step implementation of "Champion 3 C" strategy 1995 Introduced to HNA Executive Management Team as culture initiative not program of the month

  9. 2010 Acquisition of Unirac in North America Launch of Aluminum Solar Flat Roof Systems 2011 Achieved highest GEOS rating in Hilti’s history 2008 Creation and launch of full recognition awards for customer based as well as peer nominations 2013 Next decade… ERA of the Journey Evolution!!! 2012 Wellness initiative launched Total employees globally over 20,000 2010Revision of corporatestrategy – Vision 2020 introduced 2009Purchased Diamond B, Inc. and rebranded to Hilti DPC

  10. Our Journey Evolution….

  11. Secret Recipe – 3 secrets of Gung Ho Spirit of the Squirrel: Worthwhile Work Way of the Beaver: In Control of Achieving the Goal Gift of the Goose: Cheering Each Other On

  12. Our Culture Journey Principles First Principle We do Worthwhile Work Second Principle We take Self-Response-Ability to Achieve Our Goals Third Principle We Encourage Each Other and Recognize Results • Encourage Courage • Monitoring & Measuring the Right • Things Right • Recognizing & Rewarding • Aligning Recognition & Reward • Systems • Defining the Playing Field • Develop Your Potential • Sharing Leadership & Teamwork • Enabling Empowerment • Aligning Structures, Processes • and Systems • Serving a Higher Purpose • Living Core Values • Becoming Best At • Having Shared Goals • Having a Balanced Life The Mirror – See the “Ideal Hilti” Focus – Energy Disciplined Action Outstanding Results

  13. Ms. C’s Doom Loop Disappointing Results Reaction, without Understanding No Buildup; No Accumulated Momentum New Direction, Program, Leader, Event, Fad or Acquisition

  14. Many camps along the Journey…Design and Implement

  15. Team Camps – global and vertical • We discuss selected topics on a global and vertical plane in a bi-annual (18 – 24 month cycle) rhythm, called Team Camps • All team leaders participate twice in a team camp • As member of a management team • With their own team • The Team Camps are facilitated by internal people in the local language, called “Sherpas” (Strategic, Team Leader and Spirit)

  16. Desired Hilti Culture - Vision 2020 The Team Camps of Our Culture Journey Rubicon Pit Stop One Voice Mini Pit Moment of Truth Why Not? The die is cast Traps of busyness Feedback ceremony Slow down to Speed up! Beacons Reflect on Positioning Prioritize & Action Planning Team Dynamics Unique customer experience! Seamless process ’’extra mile’’ Ideal Team Road to the Summit Foundation Focus – Energy & Disciplined Action to achieve Outstanding Results Core Purpose & Values Self-Response-Ability Encouragement & Recognition

  17. Day ONE A.M. Day TWO A.M. • Desired and Current Culture Status • Introduction • Session Overview • SHERPA Exercise • Needs Activity • Lifelines • Desired Culture State • Brutal Facts (HWH) • Tower of Power / Enabling Elements of Greatness • Overview of Our Culture Journey • Hilti Movie • 2nd Principle “We takeSelf-Response-Abilityto Achieve OurGoals” • Reflect on Drama • Empowerment • Hilti Leadership • Enabling Structured Processes - DiSC Lunch TC1 Overview: Foundation– Orientation / BTS Day TWO P.M. Day ONE P.M. • Enabling Structured Processes (Cont’d.) • SL2 (w/Context Video) • PMP/Red Thread w/ SL2 • Disciplined Action (DA) Personal • 3rd Principle “WeEncourage EachOther & RecognizeResults” • Reflection on Key Points • Planet Hilti Reward / Recognition Systems • Disciplined Action (DA) Personal • Recap & Review • Leading Change • Team Camps • Who Moved My Cheese? Movie* • 1ST Principle “We doWorth-while Work” • Hilti Core Purpose • Hilti Core Values • Mission Statement Commitment • Best At Statement • Shared Goals Approach • Making a Personal Connection to Worthwhile Work • Disciplined Action (DA) Personal (Work/Life Balance) • Fish! Worthwhile Work in Action Movie* Team Spirit “Rite of Passage to Greatness” Ms. C Lunch

  18. TC2 Overview: 2+ Day Team Camp Rubicon Day 1 Day 2 (conclude ~5:00pm) The Beginning • Feedback as a Gift • Drama: Team Courage • Team Development / Managing Team Conflicts • Embracing & Leading Change • DA Individual • Third Principle: • “We Encourage Each • Other and Recognize Results” • DA Individual • DA’s Team – Consolidation & Prioritization • Desired Culture State • Brutal Facts • -Organization • -Team • Define Team’s Rubicon • Barriers to Greatness • Disciplined Action - Team • First Principle: “We do Worthwhile • Work” • Team Connection to Worthwhile Work – Visualizing the Team’s Future • Personal Connection to Life Balance • DA Individual • Second Principle: • “We take Self Response-Ability to Achieve Our Goals” • Hilti Leadership & Knowing Yourself • Participants arrive at the location for lunch • Path to OCJ Team Camp Rubicon “Crossing the Rubicon” Poolside/Campfire Reflection “Becoming balanced on the Journey with the 6 L’s” Painting the Team’s Purpose

  19. TC3 Overview: 2+ Day Team Camp Pit Stop Late Afternoon Day 1 Day 2 Start the Race (Strategic/Team Leader) Courage (Team Leader) My relationship Traffic Light The Walk (Team Leader) Prepare the Race The Race Personal Pit Stop Team Pit Stop (Team Leader) Pit Stop Forever (Team and Team Leader) • From Rubicon to the Pit Stop • The Pit Stop Letter • Camp Fire (Team Leader) • Strategic Sherpa Night Roles

  20. TC4 Overview: Team Camp Moment of Truth 1st day 2nd day 3rd day Beginning Beginning 07.30 08.00 Setting the Stage 08.00 – 09.00 Our Call to Action 07.30 – 09.30 The Voice 09.00 – 09.30 09.30 Break In the Round 09.30 – 10.15 10.00 – 12.30 A Quantum of Surprise Strategic Sherpa – Hannes Saeubert Timeframe Break Lunch at Aspen 10.15 12.30 – 01.00 Voice of the EB 01.00 – 01.45 My Personal Contribution 10.30 – 11.30 Strategic Sherpa Hour 11.30 – 12.30 Personal feedback Lunch for early arrivals 01.45 – 02.00 12.00 Lunch 12.30 – 01.30 My Call to Action 02.00 – 02.30 Break with heavy appetizers 01.45 01.30 – 04.00 The Experience: Customer Award~ Break 02.30 – 02.45 Welcome & Review OCJ 02.00 The Call 04.00 – 04.15 Break 02.45 – 03.00 A Quantum of Pride: Team Assessment Camp Closing 03.00 04.15 – 05.15 The Challenge Our Customer Promise 03:00 05.15 – 05.45 Teambuilding Activity – On Target 06.30 06.30 Gala “Arbor” Dinner w/ social Strategic Sherpa – Hannes Saeubert Team Dinner w/ social Campfire in Lodge 08.00

  21. TC 5 Overview: Why Not? Day 1 Afternoon Day 2 Full day Day 3 Morning Future Imperatives of the Organization –Entrepreneurial Player Essence of the Hilti Culture US living our Playbook@Hilti • What is the essence of the Hilti Culture? • Let’s open our BOOK and our minds to the journey! • Where is the team on the journey? • Let’s experience our culture as a Team • My personal change agreement • Challenge & advice • Letter to myself • The One Thing • Understand it • WHY is this important for the org’s Vision? • WHAT do these strategic imperatives mean for us? • The Playbook: The Real Game • Our team: Diarizing the learning • How will we do this? • -Addressing • accountability • The One Thing • Apply it • What does it look and feel like? • -Business Simulation: • The Practice • Strategic Sherpa Night • WHAT is needed to achieve the org’s strategic imperatives? * TC5 Global Std.

  22. TC Overview: One Voice 2nd day – P.M. Wednesday, 01/18/12 Team Alignment Arrival (1st day) Tuesday, 01/17/12 Team Reflection 2nd day – A.M. Wednesday, 01/18/12 Team Direction Breakfast (7:15a) Lunch (12:30p) Team Mirror: “1 – 10” on the path being a High Performing Team Team Commitment: Put Vision into Action II - 2012 OYP - To Do (Practice the learnings on one critical business topic or develop complete OYP) Team Vision: How does the team want to be perceived? What Leadership Attributes are needed in the future? Arrival Break (3:00p) Break (10:00a) Lunch (Noon) Welcome Team Support: Define and share your Leadership (keep/change) - The Walk Team Connection: How do we want to work together? Responsibilities, Roles, Decision making, Communication, & Follow-through Meet the Team: -Speed Dating Team Integration Part I: Fast Leap Team Communication:Sharing the message and gaining buy-in within our organization. Fireside Social at the Summit (6p)Team Dinner (7:30p) Team Focus: Put Vision into Action I - Stop Doing Team Experience: Building the bridge to our future Team Integration Part 2: Sharing in the round Social (6p) and Team Dinner (7p)

  23. Manage Organizational Knowledge …

  24. The Hilti Business Model

  25. Cultural Development Model Mindset and Leadership Team Engagement and Self-Actualization Impact Impact Customer Centricity/ Productivity Impact and Sustain the Journey Customer Engagement and Satisfaction Impact Impact feedback Employee Engagement*: A team member’s degree of positive emotional attachment to the organization, their role and to their team.

  26. Our Call to Action

  27. Measuring and Assessing Impact…

  28. Facts and Figures Enthusiastic Customers Retention Morale Teamwork Productivity Profitability

  29. Triple Bottom Line

  30. ROI Framework Impact Sherpa Team Competency Team Members T Team Engagement Isolate the effects of OCJ T Strategy Alignment Changes in measures, Trend analysis to include intangible benefits. Organizational Development Wilson Learning Worldwide, 2009 (Kirkpatrick’s 4 – Level model)

  31. Chain of Impact Zoom Type Evaluation Level Content Focus & # of questions • Readiness 0 Preparedness (#4), Aligned/Direction (6), Working Relationships (9), Shared Leadership (5) • Immediate 1Sherpas’ Ability (11), Team Performance(9), Team Camp (7), Impact (17) • 30 Days 2 Knowledge, Skills & Attitude Changes: AIP’s (9), Barriers/Challenges (11), Resources/Recognition (6), • 60-90 Days 3Changes in On-the-job Behavior, Actions, Progress (10) • 6months 4Changes in Business Measures – Trend Analysis (8) • -------- • Long-Term (ROI) 5Compares OCJ Benefits to the Investment Costs

  32. Readiness Sensing Survey • Measurements: • Values, purpose and principles – highest ratings • Goals and priorities • Team engagement • Self-actualization / empowerment • Applying Management tools – lowest ratings • Results: • 48% of the respondents have been informed of the topic and content of the TC • 90% to 92% of respondents feel they and their team are ready • Degree of execution from last team camp – 7.5* • Clarity on goals and team priorities – 7.2 to 7.8 • Alignment with principles, purpose and values– 8.4 to 8.8 • Understanding of expectations, contribution and roles & responsibilities – 8.0 to 8.5 • 66% of respondents state Team Leader kept the Team Camp top of mind • Highest ratings: • Trust – 8.5 • Motivation – 8.5 • Ability to handle conflict – 8.4 • Lowest ratings: • Applying 8 steps for leading change – 7.2 • DISC usage – 7.3 • Situational Leadership usage – 7.6 • Degree of leading and facilitating change – 8.3 to 8.4 • Sense of empowerment – 7.3 • Comfortable asking for help – 8.8 to 8.9 • Quotes: • “These events are fine its good to get together with the team but my experience is that Hilti does not live up to what its professed culture really is.” • “Nobody wants to go anymore ... topics boiled down now...too long out field” • Results give guidance on areas of focus before and during OCJ

  33. Reward and Recognition Impact…

  34. OCJ Reward &Recognition Overview Enthusiastic Customer Award OCJ Recognition Internal Team Member Recognition Management Recognition Legacy Cup Award

  35. OCJ Online Recognition Bank • 4 tickets per person to recognize team members within the year. • Team members accumulate these tickets and “cash” them in for OCJ product through the online catalog. • Catalog offers products from 1 to 100 tickets for team members to select from. • Ticket quantity is determined by an established “ticket price”

  36. OCJ Online Catalog

  37. Recognition and Awards 2001 Recipient of the Ken Blanchard Companies Outstanding Award North America 2010 Excellence in People Development Award from

  38. 2011 - "Selling Power” ranks Hilti-North America #2 manufacturing company to sell for 2010 - "Selling Power” ranks Hilti-Canada #1 manufacturing company to sell for

  39. 2011 “Great Place to Work” Placed 15th globally (Microsoft #1) – 25 best in the World Michael Hilti, former Chairman of the Board • 2003 - Winner of the Carl Bertelsmann - Global Prize for exceptional Corporate Culture • Mythos brand – world-wide the strongest brand in the industry Cary Evert , CEO of Hilti North American

  40. Toolbox for Your Journey…

  41. Sherpa Team Charter • Influence the mindset of teams to create passionate and engaged customers. Customer Engagement & Satisfaction • Focus teams to embrace seamless, consistent, best practices to maximize efficiencies. Customer Centricity/ Productivity • Foster a spirited environment of learning, development, recognition, and fun. Team Engagement & Self-Actualization • Be the OCJ Advocate and become a Strategic Asset Impact and Sustain the Journey

  42. ... the journey to new heights!

  43. Time for Q & A?

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