1© 2016 FMI Corporation Ed Rowell March 2016 Building an Enduring Organization Key Principles

2© 2016 FMI Corporation 60 years one industry Optimize Performance Position for Growth Build Capacity Transition Successfully

3© 2016 FMI Corporation Source: FMI 2nd Quarter Outlook 2015 US Construction Spending (in 2005 $s) The ups and downs of construction… © FMI’s Center for Strategic Leadership

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Enduring Success = V(ision)*T(alent) Culture In what areas of the business do great leaders of industry focus the majority of their time & energy? Question…

Enduring Success = V(ision)*T(alent) Culture start with a clear vision Strategic Leaders

© 2016 FMI Corporation

Strategic leaders are clear on the why The Golden Circle By Simon Sinek © FMI’s Center for Strategic Leadership

Core Ideology Envisioned Future Who we are Where we are going © 2016 FMI Corporation

Core Purpose “To build a better future.” Core Values  Say what you mean, do what you say.  Be all in…it’s personal.  Go above and beyond.  Tackle the impossible.  Help others grow.  Work together for better results. © FMI Corporation 2016

BHAG We will build something extraordinary every continent in the world. Vivid Description © FMI Corporation 2016 We work anywhere and everywhere for those who pursue greatness. We seek unexpected answers that enable the future. We deliver an experience that draws customers to us with their most coveted projects. Our culture is alive and intentionally different. This is a place that curates smart, driven professionals into strong leaders. We are equal parts builders and business people. We practice and perfect sound fundamentals, but our playbook prizes ingenuity. We train like champion athletes, and a role on this team sacrifices stardom. We’re heroes to each other and our families.

© FMI’s Center for Strategic Leadership But why?

Fact: There is a strong correlation between a company’s vision and millennials’ loyalty to their company. © 2016 FMI Corporation

Enduring Success = V(ision)*T(alent) Culture fixate on finding, keeping the right talent at all levels Strategic Leaders

© FMI’s Center for Strategic Leadership “People are our greatest asset.” “Are we truly living this out?”

© FMI’s Center for Strategic Leadership If people are truly our greatest asset, we have… Formalized recruitment practices Developed “HI-POs” Built 3G succession plan s Defined future competencies

© 2016 FMI Corporation

Management & Leadership Percentage of Time Spent Front Line Leaders Operational Leaders Executive Leaders © FMI Corporation 2015

19© 2016 FMI Corporation

The Components of Trust

Behaviors that Build Trust

Talent essential …agile problem solvers © FMI’s Center for Strategic Leadership

Collaborative Engagement more likely to stay with their existing employer when feeling connected of execs cite lack of collaboration as the main source of workplace failures of companies rated collaborative culture and engagement a top priority Improved communication and collaboration can raise productivity levels by as much as

Talent essential …high-trust collaborators © FMI’s Center for Strategic Leadership

People are the Wildcard

From Hanson Dodge Creative © FMI’s Center for Strategic Leadership

Enduring Success = V(ision) X T(alent) Culture create multiplier effect through culture Strategic Leaders

© FMI’s Center for Strategic Leadership “Culture eats strategy for breakfast.” - P. Drucker

“The way we do things around here.”

The foundations that build cultural norms The drivers of culture Reinforces behaviors considered our way of doing things Drives performance – good or bad

If culture eats strategy for breakfast… Think about your company’s culture… What current drivers are creating amazing outcomes for your firm? What drivers are standing in the way of amazing outcomes? What kind of culture do we need to attract top talent and compete in the future?

© FMI’s Center for Strategic Leadership Discipline Adaptability + Performance

© FMI’s Center for Strategic Leadership Discipline Adaptability + New Markets Process

“Perfect is the enemy of the good.”

© 2014 FMI Corporation35 Developing Exceptional Leaders One at a Time About FMI FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including: Strategy Development Market Research and Business Development Leadership and Talent Development Project and Process Improvement Mergers, Acquisitions and Financial Consulting Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and equipment; owners and developers; engineers and architects; utilities; and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. Ed Rowell Consultant 210 University Blvd, Suite 800 Denver, CO (303) © 2016 FMI Corporation