Designing Strategy from the Bottom Up Presenters Bill

Designing Strategy from the Bottom Up Presenters: Bill Petty, Chairman & CEO, Exactech Amy Bermar, Founder & President, Corporate Ink Moderator: Diane Stoneman, Director of Consulting & Training, Winning Workplaces © 2008 Winning Workplaces. May not be reproduced or distributed without expressed written permission of Winning Workplaces.

About Winning Workplaces q Founded in 2001 by co-owners of Fel-Pro, an auto manufacturer nationally recognized as a leader for progressive workplace practices. q Nonprofit committed to helping small/midsize organizations build healthy, innovative and productive work environments. q Triple bottom line: Business, People, Community.

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Top Small Workplaces Competition q In collaboration with The Wall Street Journal q 2007 Winners profiled: WSJ. com/Entrepreneur q 2007 TSW Report @ Winning. Workplaces. org q 2008 Top Small Workplaces evaluation underway q Wall Street Journal announces October 13 q TSW Conference October 14 & 15

Top Small Workplaces 2007 Top Small Workplace Winners Alaska Wildland Adventures Barclay Water Management Corporate Ink Cowden Associates Inc. Exactech, Inc. FRCH Design Worldwide Gentle Giant Moving Co. Guerra De. Berry Coody Healthwise NRG Systems, Inc. Phelps County Bank Point B Solutions Group, LLP Reflexite Corporation Restek Corporation Summit Aviation

2007 Top Small Workplace Winners Key Theme These leaders continually work to build a culture of employee engagement and ownership. Involving employees in strategy development is essential.

The Delivery Gap Global Study of nearly 500 firms • 82. 3% of respondents (managers) ranked motivating employees to align with business strategy as the number one or two most critical issue. • Only 46% felt management handled this effectively Int’l Association of Business Communicators (IABC)

So What’s the Problem? Potential factors • Inability to articulate strategy clearly, in a way which resonates - inform vs. engage approach - communicate in a way not interesting or compelling • Not taking account of local circumstances - global alignment vs. local tailoring • Lack of leadership commitment (and ability) to share strategy • Business literacy issues

Today’s Agenda q Tale of two companies q Philosophies and practices q Impact on business and workforce q Lessons learned q Questions from audience

Featured Firms Amy Bermar Founder & President Corporate Ink Public Relations Firm Newton, MA 12 employees Bill Petty Chairman & CEO Exactech Manufacturer of orthopedic devices Gainsville, FL Over 300 employee owners

Bill Petty, Chairman & CEO Exactech

Exactech Background q Founded in 1985. 300 employees. q Bone and joint restoration products used in surgical treatment of arthritis of hip, knee, shoulder, and spine. q Product development focused on finding solutions to improve patient outcomes. q Markets products throughout U. S. and 30 other countries.

Cornerstone Strategy Sustain a customer centric culture that creates customer loyalty q Strategy key to our success. q Customers do not have loyalty so much to an organization but to the people in that organization. q We must have loyal employees q The company must be loyal to employees and earn that trust and loyalty.

Strategy Development How Did We Do It q Top strategy developed by Leadership Team. q Each team or function develops strategies to meet overall company goals. q Compiled and presented for approval to board of directors.

Strategy and Goal Setting On-Going Process q Teams modify strategies and goals. q Cornerstone strategy does not change. q Values do not change.

People – Our Philosophy q Having enough of the right people is our greatest asset. q We select people more on their fit with the core values and purpose than on skills and knowledge. q We have a bias for promoting from within because it reinforces our core values. Recognition and Appreciation

Recruitment q Small in-house recruiting team; seldom use outside recruiters. q Employee recommendation and networking with success. q Though there may be a hiring delay, we do not hire until we find the right fit.

Training and Development q Initial orientation q Mentor program q Career and individual development planning q Job specific training q Educational assistance q Increase emotional intelligence in the corporate culture

Communication q Communicate the Company’s commitment to its culture and values q Ensure connectedness of remote and international employees q Expand “I Am Exactech” program q Increase corporate presence in the community q Facilitate work-life balance

Summary of Our People Goals “Life is like the carpool lane. The only way to get to your destination quickly is to take some people with you. ” Peter Ward We believe our people programs will keep the right people “on the bus” and speed us to our destination.

Results: Relative Growth % in 2007

Amy Bermar, Founder & President Corporate Ink

Corporate Ink Background q Top Boston PR firm q Known for tech expertise q Boutique = more value, more smarts q Low turnover q Differentiator: Strategy. Execution. Results. q 20 years old in 2009. No layoffs. Ever. q 2007 Top Small Workplaces Winner

Our Business is Good q 15 staffers, 18 clients. q More business than we can pursue q 50% growth yearly q 2008: 100% win rate q Replacing other PR firms 6 of 10 times q Sole choice: 3 out of 10 times q Beating bigger firms 2 out of 10 times

Ultimate Fact No One Wants to Do a Lousy Job.

So who needs strategy? q Clients: Know my industry. My company. My pressures. q Staff: Challenge me. Make me believe I matter. q Business: We sell our time. Waste time = lose money. Overcharge = lose clients. Everyone.

Get Smart Fast How we do it q Few secrets. q Open meetings. q Business immersion – even for juniors. q Accountability. Every day. q Think like a CEO – early warning. Start with the conclusion. Be honest.

Get Smart Fast How we do it q Yearly training in “The business of PR”. q Culture: Zero politics. q You win by helping others win.

2001 - The Big Chill A Pivotal Moment q Clients dropping like flies q Industry layoffs @ 50% q The challenge: Cut staff? Or salaries?

The Solution Let the team decide. q 2 hours. q Brutal honesty. q Differing views. q Endpoint: Pay cut.

Make it real. Every Year How Did We Do It q Annual goals meeting: no sacred cows. q Around-the-table assessment on how we fared. q Frank talk about revenue. q Everyone contributes. q It’s not a consensus.

Walking the Walk 10 Steps to Success 1. Teach people to manage their time. 2. Everyone does their own monthly analyses – and recommend improvements. 3. Training in everything – like email. 4. Brainstorming without the bosses. 5. Public credit, all the time

Walking the Walk 10 Steps to Success 6. Everyone owns a strategic initiative. 7. Contribute value, every meeting. 8. Mistakes readily acknowledged. 9. Mentor program. 10. Performance-based bonuses for all.

Lessons Learned q Some people need to be pushed to stand up. q Money talks. q Clear expectations, voiced often, from CEO, make it real. q Late bloomers can deliver value (if you’re patient). q People want leadership and appreciate apologies. q We’ll have to fire someone someday.

Questions? www. corporateink. com www. exac. com

Upcoming 2008 Webinars Featuring Top Small Workplace Leaders q July 29 • Fostering Trust Within the Workplace Paul Silvis, Founder, Restek, Bellefonte, PA Paal Gisholt, CEO, Smart. Pak, Plymouth, MA q Sept 25 • Maintaining Community in a Virtual Workplace Michael Lacey, CEO/Pres. , Digineer, St. Louis Park, MN Timothy P. Keenan, President & Founder, HPTi, Reston, VA