Leadership Leadership Sustains an Organization Bob Pence, CEO

Freese and Nichols, Inc. Multi-service engineering, architecture and environmental science firm 117-year history means experience, strength and stability 12 offices, all in Texas More than 450 experienced professionals, technical experts and support personnel

Freese and Nichols, Inc. Water resources engineering Environmental engineering Civil engineering Master planning Building design and renovation Construction services Program management

Freese and Nichols, Inc. Municipal Water District/River Authority Higher Education Military/Government Energy

Our First Hundred Years: Continuity of Leadership Bob Herchert 1991 Started Our CI Journey in 1996 Jim Hawley st Consulting Engineer in Texas Marvin Nichols 1938 Developed 1 st Water Plan for State of Texas Jim Nichols 1976 Took Firm from a Partnership to a Corporation Bob Nichols 1988 Broadened Ownership to More Employees

Leading the Way into the 21st Century Caring for Our Culture Maintaining the Highest Ethical Standards Focusing on Clients Engaging our Employees Managing Performance Leveraging Innovation Developing Future Leaders Looking Farther into the Future Staying on the Journey

Caring for Our Culture Mission Statement Innovative approaches... practical results... outstanding service Vision Statement Be the firm of choice for clients and employees Our Company Values Are Our Common Threads

Caring for Our Culture FamilyInnovation MarketHierarchy Our Guiding Principles We are ethical We deliver quality We are responsive We add value We improve continuously We are innovative We develop professionally We respect others We give back to our communities

Caring for Our Culture Freese and Nichols’ Corpus Christi office teamed together for the Relay for Life to support cancer survivor Rachelle Parry. Community Involvement 117 Hours of Service Board Leadership Office Projects Women’s Center Meals on Wheels

Maintaining the Highest Ethical Standards The First Thing We Ever Built Was a Reputation Recipient of the National 2008 American Business Ethics Award, by the Foundation for Financial Service Professionals

Focusing on Clients Hedgehog Concept Be the very best at client service, resulting in long-term mutually beneficial relationships

Focusing on Clients Long-term Client Relationships Ft Worth 1894 Dallas1910Austin1934Abilene1939 U.S. Army 1963 DFW Airport 1965 Lockheed Martin 1997 Texas A&M 1998

Engaging Our Employees We’ve Always Enjoyed Our Work

Engaging Our Employees Strategic Plan Rollout Midyear Status CEO Roundtables Principal Group Lunches Continuous Improvement Lunches

Engaging Our Employees Best Small & Medium Companies to Work for in America Top Ten, Best Civil Engineering Firms to Work For Nationwide

Managing Performance Management Accountability Financial Accountability Transparency Protection of Shareholder Interests

Leveraging Innovation for Clients Bridging the Gap: An Innovative Crossing for the Trinity River

Leveraging Innovation for Employees Helping Employees Take Responsibility for their Work Employee Portal - Utilization ProjectProject Name Feb 11Mar 11Apr POTNT1147 Potential Projects (pre-2011) 088 COR08271O. N. Stevens Raw Wtr Influent Impr COR10165Mary Rhodes Phase GBA10355I-35/Texas Highway 130 Water Transm SWB11121Reg Carrizo Proj: Water Integr Pipe 488 TR110152Pump Stations 13/13A Improvements C 368 TR110442On-Site Storage System Construction 440 TRA07353CPS - Pump Station 13/13B & Equaliz 140 TRA08184TRA CRWS On Site Storage System (OS 4000 TRA08301CPS for Admin Bldg & Plant Disinfec 0122 **Total Scheduled Employee eResource – Work Load

Developing Future Leaders Passage 3 Lead Business Lead Self Lead Others Passage 1 Lead Group Passage 2

Looking Farther into the Future We Never Lose the 30,000-foot View – Changes in clients’ business in 20 years? – Changes in key competitive differentiators? – Impact of industry consolidation ?

Staying on the Journey Some 2011 CI Projects – Futures Committee – Knowledge Database – Subcontractor Management – Technical Excellence Program – Phase 2 Baldrige Feedback Report

Thank You