Operating Processes Manitowoc Company

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Operating ProcessesManitowoc Company

• AIMC Conference
• June 2, 2003
• Steve Kopecky, Manitowoc Company
• Tracy Pleus, Manitowoc Company
• Mike Venn, Tradewinds Consulting, LLC

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Outline

• Overview of Manitowoc Company
• Evolution of the Accelerated Leadership
  Development Process (ALDP)
• Executive involvement
• Internal/external partnership
• Successes and key advice
• Impact of program

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Overview
Founded in 1902, Manitowoc is a leading global,
diversified, multi-industry manufacturer

• Crane Group
• Crawler cranes
• Tower cranes
• Mobile telescopic rough-terrain and
  all-terrain cranes
• Boom trucks
• Foodservice Group
• Ice-cube machines
• Ice/beverage dispensers
• Walk-in refrigerators/freezers
• Reach-in refrigerators/freezers
• Marine Group
• Commercial ship construction
• Government and special-use vessels
• Repair, maintenance, and conversion services

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Organizational Development and Effectiveness
Department

• One person when project was started
• Reflect the corporate philosophy of very small
  headcount and overhead
• Prefer to work in partnership with vendors who
  compliment internal expertise
• Look for vendors who can present turnkey solutions

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Pre Getting Started

• Varied support existed
• 2-3 prior attempts to institute high potential
  development laid groundwork
• Achieved critical momentum when
• Established credibility with executive team and
  board of directors by providing successful
  service around corporate governance
• New acquisitions made need to improve bench
  strength critical

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Getting Started

• Selected external resources to partner with
• Worked together to craft and deliver a compelling
  story to the executive team for improving bench
  strength
• Received agreement to analyze the need for a
  one-week program

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The Analysis

• Asked to review any data that would help us
  understand business direction and challenges
• Individually interviewed the entire executive
  team
• CEO
• 3 group presidents
• VP of HR
• CFO
• CIO
• Additional person focused on key initiative

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The Analysis Questions

• Asked questions in 7 areas
• What was most influential in promoting and
  accelerating their growth as a leader
• Topics that would help make their business and
  your people more successful
• Expectations around logistics of a program
• How they would like to sponsor and participate in
  the program
• Key indicators of success for a program
• Their model for leadership effectiveness
• How a program could support their strategic
  direction and vision

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The Program

• Four weeks in length!
• Unanimous willingness to be involved!
• Focused around a core business process!
• Work them hard!
• Budgeted for action learning projects!

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Executive Involvement

• Week One
• Program launched by CEO Sunday evening and
  Monday morning
• Each of the three Group Presidents had 1.5 hours
  with the group to discuss their part of the
  world and the challenges they saw ahead
• Sat in on some of the sessions
• Had panel discussion with successful Manitowoc GMs

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Executive Involvement

• Week Two
• Action learning project involved leadership teams
  from three Manitowoc businesses
• One Group President attended report of action
  learning projects
• VP of HR, VP of Sales, Treasurer, lead operations
  person gave presentations
• CEO and three Group Presidents joined us for
  lunch
• Held panel discussion with the three Group
  Presidents and external consultant used for
  strategic planning (CEO sat in on this)

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Executive Involvement

• Week Three
• CEO joined us at a Packers game
• Action learning project involved leadership teams
  from three Manitowoc businesses
• One Group President and VP of HR attended report
  of action learning projects
• Participants selected final project and were
  given training on influencing and communication
  skills to prepare them to interact with the
  executive team

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Executive Involvement

• Week Four
• Participants attended Manitowoc Company annual
  meeting
• Participants had dinner with Manitowoc Company
  Board of Directors
• Final project results presented to executive team

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Executive Involvement

• Additional executive interaction occurred through
• Informal conversations with ODE Department staff
• Formal updates and written reports after each
  ALDP session

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As the Project Evolved

• Shortly into the project we realized it would be
  more cost effective to add internal staff
• Added one full-time professional and a shared
  administrative person
• Additional staff allowed us to deliver the
  project below budget

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Internal/External Partnership
Internal
External

• Expertise on internal culture and need/manner for
  influencing
• Knowledge of what program needs to align with
• Overall project management
• Communications
• Some delivery
• Administrative coordination
• Capture lessons learned
• Around for daily influencing

• Experience in leadership development
• Knowledge of external trends
• Initial analysis recommendations
• Initial design recommendations
• Knowledge of external presenters
• Much of the delivery

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Partnership ExampleProgram Debrief

• Attended by internal and external partners
• Occurred after each program week
• Followed consistent format
• Review evaluations
• Document changes to second offering of week
• Use knowledge and evaluation data to improve
  design subsequent weeks
• Describe unstructured benefits

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As the Program Evolved

• Got to know skills and capabilities of
  participants
• Received feedback
• Altered approach to fit the team
• Faced some challenges
• Participant commitment to program varied
• Day-to-day demands (participants and internal
  team)
• Implementing development plans
• Constant need for communication

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SuccessesEarly Wins

• A tool suggested by a participants during week
  one immediately adopted by a Group President into
  his situation analysis
• Discovery that another part of the business had
  capability to do needed lab testing
• Conversations among participants about different
  business potentials

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SuccessesLater Wins

• Awareness of how quickly one could learn about
  another business and contribute valuable ideas
  important to future direction of moving employees
  across businesses
• One participant adopted metrics used in another
  business
• Ideas from participants finding there way into
  several 2003 business plans
• Two participants recruited to improve some 2003
  business plans
• Business planning process for 2004 taken to the
  next level through contributions of the
  participants
• 6 of 13 have been promoted since the program
  began a year ago

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Moving Forward

• Initial champion departed, but another has
  stepped up
• New member of executive team
• Transition bench strength from a treatment plan
  to a wellness plan
• Competing for attention with other priorities
• Continuing to align with other initiatives

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In Summary

• Internal/external partnership worked by putting
  the right tasks in the right hands and trusting
  each other
• Executive support was created and sustained by
• Involving the entire executive team from the
  beginning
• Building a program that met their mindsets for
  executive development and solved their current
  business challenges (with an eye to the future)
• Engaging executives in some manner during every
  week of the program

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Key Advice

• Continually think at the strategic level
• Address issues on a daily basis
• Work to achieve the right balance between the
  strategic and the daily
• Dont underestimate the importance of using the
  right process to select the right participants
• Tap into the passion of the participants

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The Impact of Group One

• Improved business plans in 2003
• Executive endorsement of an even more effective
  business planning process for 2004
• Corporate confidence that leadership expertise
  CAN transfer across businesses
• A new business proposed
• For 14 participants a support network across the
  company that will last a lifetime