great culture and place to work

2010 Excellence in People Development Award Investing in the People of Oklahoma™

Rosalia C. Cunningham, M.A., PHR 1

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

Our Culture Journey Evolution

Design and Implementation

Organizational Knowledge Management

Measuring and Assessing

Recognition of Impact

Loading up your Toolbox



Hilti History …



Drilling & DemolitionDrilling & chiseling,Diamond systems

Cutting & GrindingCutting, sawing, sanding,Diamond systems

Fastening & InstallationAnchoringDirect fasteningScrew fasteningInstallation

Insulation & ProtectionFoams Systems,Fire Stopping

MeasuringDistance measuring,Leveling & aligning,detecting

Planning & SpecifyingSpecification, Consulting,Engineering, Software

Professional ServicesFull Service, Calibration,Fleet Management, Financial Service,Anti-theft protection

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



Asia

Europe 3

North AmericaEurope 2 Europe 1

Africa, Near and Middle East

Latin America

Where is Hilti ? EVERYWHERE !!



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

1948Start of development of

a powder-actuated fastening system

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

1964 Addition of a drilling and anchoring line

to the sales program

1971Acquisition of a

production plant at Kaufering, Germany

1972Founder –

Health Issues



1982Entry into diamond coring and cutting

market, and launch of first breaker

1979 Inauguration of

headquarters for North and Latin

America at Tulsa, Oklahoma, USA

1985 Creation of three divisions:

drilling and demolition, powder-actuated fastening

and anchor technology

1987Entry into

construction chemicals market

1989Development and

initial implementation of

Strategy 2000

1994

1985Leadership Makes

a Difference – Culture Statement

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

1986Innovation (INNO)

– Work/Life Balance



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

1998 Step-by-step

implementation of "Champion 3 C"

strategy

2003Operating in more than 120 countries,

110 Home Depots and the Internet with 9 manufacturing plants, and app.

14,100 employees.

2003

Global Rollout

1995

Introduced to HNA Executive Management

Team as culture initiative not program of the month



2010Acquisition of Unirac

in North AmericaLaunch of Aluminum

Solar Flat Roof Systems

2011Achieved highest GEOS

rating in Hilti’s history

2008Creation and launch of full

recognition awards for customer based as well as

peer nominations

2012Wellness initiative

launched

Total employees globally over 20,000

2010Revision of

corporatestrategy –

Vision 2020 introduced

2009Purchased Diamond B,

Inc. and rebranded to Hilti DPC

2013Next decade…

ERA of the Journey Evolution!!!



Our Journey Evolution….



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



Our Culture Journey Principles

First PrincipleWe do Worthwhile Work

The Mirror – See the “Ideal Hilti”

•Serving a Higher Purpose•Living Core Values•Becoming Best At•Having Shared Goals•Having a Balanced Life

Outstanding Results

Second PrincipleWe take Self-Response-Ability

to Achieve Our Goals

Third PrincipleWe Encourage Each Other

and Recognize Results

•Defining the Playing Field•Develop Your Potential•Sharing Leadership & Teamwork•Enabling Empowerment•Aligning Structures, Processes and Systems

•Encourage Courage•Monitoring & Measuring the RightThings Right•Recognizing & Rewarding•Aligning Recognition & Reward Systems

Focus – Energy Disciplined Action



Ms. C’s Doom Loop

Reaction,without

Understanding

No Buildup;No Accumulated

Momentum

DisappointingResults

New Direction,Program, Leader,

Event, Fad orAcquisition



Many camps along the Journey…

Design and Implement



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)



Moment of Truth

Foundation

Why Not?

Core Purpose & Values

Self-Response-Ability Encouragement & Recognition

Focus – Energy & Disciplined Action to achieve

Outstanding Results

Rubicon

The die is cast

Traps of busyness

Feedback ceremony

Pit Stop

Slow down to Speed up!

Beacons

Mini Pit

The Team Camps of Our Culture Journey

Reflect on Positioning

Prioritize & Action Planning

Team Dynamics

Unique customer experience!

Seamless process ’’extra mile’’

One Voice

Ideal Team

Road to the Summit

Desired Hilti Culture - Vision 2020



Day ONE 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

Lunch

Day ONE P.M.

1ST Principle “We do Worth-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*

Ms. C

Day TWO A.M.

2nd Principle “We take Self-Response-Ability to Achieve Our Goals”

•Reflect on Drama

•Empowerment

•Hilti Leadership

•Enabling Structured Processes - DiSC

Day TWO P.M.

Enabling Structured Processes (Cont’d.)

•SL2 (w/Context Video)•PMP/Red Thread w/ SL2

•Disciplined Action (DA) Personal

3rd Principle “We Encourage Each Other & Recognize Results”

• Reflection on Key Points

•Planet Hilti Reward / Recognition Systems

•Disciplined Action (DA) Personal

•Recap & Review

Leading Change•Team Camps•Who Moved My Cheese? Movie*

Team Spirit “Rite of Passage

to Greatness”

Lunch

TC1 Overview: Foundation– Orientation / BTS



TC2 Overview: 2+ Day Team Camp Rubicon

• 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

Day 1

• Feedback as a Gift• Drama: Team Courage• Team Development / Managing

Team Conflicts• Embracing & Leading Change • DA Individual

Third Principle: “We Encourage EachOther and Recognize Results”

• DA Individual• DA’s Team – Consolidation &

Prioritization• Participants arrive at the location for lunch

• Path to OCJ Team Camp Rubicon

The Beginning Day 2 (conclude ~5:00pm)

Painting the Team’s Purpose

Poolside/Campfire Reflection

“Becoming balanced on the Journey with the 6 L’s”

“Crossing

the Rubicon”



TC3 Overview: 2+ Day Team Camp Pit Stop

From Rubicon to the Pit Stop

The Pit Stop Letter

Camp Fire (Team Leader)

Strategic Sherpa Night

Start the Race(Strategic/Team Leader)

Courage(Team Leader)

My relationship Traffic Light

The Walk(Team Leader)

Prepare the Race

Day 2Day 1Late Afternoon

The Race

Personal Pit Stop

Team Pit Stop(Team Leader)

Pit Stop Forever(Team and Team Leader)

Roles



3rd day2nd day

TC4 Overview: Team Camp Moment of Truth

Voice of the EB

In the Round

The Experience: Customer Award~

A Quantum of Surprise

Our Call to Action

Strategic Sherpa Hour

The Challenge

Break

Setting the Stage

Our Customer Promise

The CallBreak

Gala “Arbor” Dinner w/ social

My Personal Contribution

Lunch

The Voice

Camp Closing

Beginning Beginning08.00

06.30

08.00 – 09.00

10.30 – 11.30

09.00 – 09.30

09.30 – 10.15

11.30 – 12.30

12.30 – 01.30

01.30 – 04.00

04.00 – 04.15

04.15 – 05.15

05.15 – 05.45

07.30

03.00

10.00 – 12.30

07.30 – 09.30

01.00 – 01.45

02.45 – 03.00

1st day

Welcome & Review OCJ

Strategic Sherpa – Hannes Saeubert Team Dinner w/ social

06.30

02.00

Strategic Sherpa – Hannes Saeubert Timeframe

Personal feedback

Break10.15

Break with heavy appetizers

01.45

Lunch at Aspen 12.30 – 01.00

Break 09.30

A Quantum of Pride: Team Assessment

Campfire in Lodge

Teambuilding Activity – On Target

08.00

01.45 – 02.00

02.30 – 02.45

03:00

12.00Lunch for early arrivals

My Call to Action 02.00 – 02.30



TC 5 Overview: Why Not?

Day 1Afternoon

Day 2Full day

Day 3Morning

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

Understand it •WHY is this important for the org’s Vision?•WHAT do these strategic imperatives mean for us?•The Playbook: The Real Game

My personal change agreement •Challenge & advice•Letter to myself•The One Thing

US living our Playbook@Hilti

Strategic Sherpa Night •WHAT is needed to achieve the org’s strategic imperatives?

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

Essence of the Hilti Culture

* TC5 Global Std.

Future Imperatives of the

Organization –Entrepreneurial Player



2nd day – P.M. Wednesday, 01/18/12Team Alignment

2nd day – A.M. Wednesday, 01/18/12Team Direction

Team Vision: How does the team want to be perceived? What Leadership Attributes are needed in the future?

Lunch (12:30p)

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

Team Focus: Put Vision into Action I - Stop Doing Team Experience: Building the

bridge to our future

Break (10:00a)

Arrival (1st day)Tuesday, 01/17/12Team Reflection

Break (3:00p)

Social (6p) and Team Dinner (7p)

Arrival

WelcomeMeet the Team:

-Speed Dating

Team Integration Part I: Fast Leap

Fireside Social at the Summit (6p) Team Dinner (7:30p)

Team Integration Part 2: Sharing in the round

Team Mirror: “1 – 10” on the path being a High Performing Team

Breakfast (7:15a)

Team Communication: Sharing the message and gaining buy-in within our organization.

TC Overview: One Voice

Lunch (Noon)

Team Commitment: Put Vision into Action II - 2012 OYP - To Do(Practice the learnings on one critical business topic or develop complete OYP)



Manage Organizational Knowledge …



The Hilti Business Model



Cultural Development Model

Mindset and Leadership

Team Engagement and

Self-Actualization

Customer Engagement

and Satisfaction

Customer Centricity/

Productivity

Impact and Sustain

the Journey

Impact Impact

Impact

feedback

Impact

Employee Engagement*: A team member’s degree of positive emotional attachment to the organization, their role and to their team.



Our Call to Action#1 Goal Goal:

Owner Action Steps Start Date End DateStatus @ 30 Days

Status @ 60 Days

Status @ 90 Days

Status @ 180 Days

Completion Date

Benefit of Goal Achievement Challenges to Goal Achievement:

Recognition and Communication

Metric/Target Current Base Line 30 Day Results

60 Day Results

90 Day Results

6 Months Results



Measuring and Assessing Impact…



Productivity

Morale

Retention Enthusiastic Customers

Profitability

Teamwork

Facts and Figures



Triple Bottom Line

85

94

89

88

79

88

88

86

85

81

77

88

87



Wilson Learning Worldwide, 2009 (Kirkpatrick’s 4 – Level model)

ROI Framework

Organizational Development

Sherpa Team Competency

Team Members

TTeam

Engagement

TStrategy

Alignment Trend analysis to include intangible benefits. Changes in measures,

Isolate the effects of OCJ

Impact



Chain of Impact

Readiness 0 Preparedness (#4), Aligned/Direction (6), Working Relationships (9), Shared Leadership (5)

Immediate 1 Sherpas’ 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 3 Changes in On-the-job Behavior, Actions, Progress (10)

6months 4 Changes in Business Measures – Trend Analysis (8)

--------Long-Term (ROI) 5 Compares OCJ Benefits to the Investment Costs

Zoom Type Evaluation Level Content Focus & # of questions



Results:48% of the respondents have been informed of the topic and content of the TC90% to 92% of respondents feel they and their team are readyDegree of execution from last team camp – 7.5*Clarity on goals and team priorities – 7.2 to 7.8Alignment with principles, purpose and values– 8.4 to 8.8Understanding of expectations, contribution and roles & responsibilities – 8.0 to 8.566% 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 8.4Sense of empowerment – 7.3Comfortable asking for help – 8.8 to 8.9

Measurements:Values, purpose and principles – highest ratingsGoals and prioritiesTeam engagementSelf-actualization / empowermentApplying Management tools – lowest ratings

Readiness Sensing Survey

Results give guidance on areas of focus before and during OCJ

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”



Reward and Recognition Impact…



OCJ Reward &Recognition Overview

Management Recognition

Internal Team Member Recognition

Enthusiastic Customer Award

Legacy Cup Award



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”



OCJ Online Catalog



2010 Excellence in People Development Award from

2001 Recipient of the Ken Blanchard

Companies Outstanding Award

North America

Recognition and Awards



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



2011 “Great Place to Work”Placed 15th globally (Microsoft #1) –

25 best in the World

2003 - Winner of the Carl Bertelsmann - Global Prize for exceptional Corporate Culture

Mythos brand – world-wide the strongest brand in the industry

Michael Hilti, former Chairman of the Board

Cary Evert , CEO of Hilti North American



Toolbox for Your Journey…



Customer Engagement & Satisfaction

Impact and

Sustain the Journey

Customer Centricity/

Productivity

Team Engagement &

Self-Actualization

• Influence the mindset of teams to create passionate and engaged customers.

• Foster a spirited environment of learning, development, recognition, and fun.

• Focus teams to embrace seamless, consistent, best practices to maximize efficiencies.

• Be the OCJ Advocate and become a Strategic Asset

Sherpa Team CharterSherpa Team Charter



... the journey to new heights!



Time for Q & A?

great culture and place to work

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