Shingo Prize Conference 2012_Barry_Pennypacker

7/31/2019 Shingo Prize Conference 2012_Barry_Pennypacker

1/19

Building The Architecture

May 2, 2012Shingo Prize ConferenceJacksonville, FL

Barry L. PennypackerPresident & CEO


2/19

SF PowerPoint Template 03-27-08/2

All of the statements made by Gardner Denver in this presentation or made orally in connection withit, other than historical facts, are forward-looking statements. As a general matter, forward-lookingstatements are those focused upon anticipated events or trends, expectations, and beliefs relating tomatters that are not historical in nature. The Private Securities Litigation Reform Act of 1995 providesa safe harbor for these forward-looking statements. In order to comply with the terms of the safeharbor, the Company notes that forward-looking statements are subject to known and unknown risks,uncertainties, and other factors relating to the Companys operations and business environment, allof which are difficult to predict and many of which are beyond the control of the Company. Theseknown and unknown risks, uncertainties, and other factors could cause actual results to differmaterially from those matters expressed in, anticipated by or implied by such forward-looking

statements.

Factors that could cause or contribute to such differences include, but are not limited to: changingeconomic conditions; pricing of the Companys products and other competitive market pressures; thecosts and availability of raw materials; fluctuations in foreign currency rates and energy prices; risksassociated with the Companys current and future litigation; and the other risks detailed from time totime in the Companys SEC filings, including but not limited to, its annual report on Form 10-K for thefiscal year ending December 31, 2010, and its quarterly reports on Form 10-Q.

These statements reflect the current views and assumptions of management with respect to futureevents. The Company does not undertake, and hereby disclaims, any duty to update these forward-looking statements, although its situation and circumstances may change in the future. The inclusionof any statement in this presentation does not constitute admission by the Company or any otherperson that the events or circumstances described in such statement are material.

Safe Harbor Disclosure


3/19


Gardner Denver Overview

Early stages of transformation to a high quality,high margin Industrial Company with Energy exposure

Leading brands and technologies strong distributionNew, operationally focused team driving The Gardner Denver Way

~$2.4B(1) global Company with diverse and attractive end markets

Growing, profitable aftermarket opportunity

Focused on superior cash and earnings growthStrong track record on analyzing and integrating acquisitions


4/19


A Global Leader in Compressed Air And Gas,Vacuum and Fluid Transfer Technologies

We serve a wide range of industries with efficient & reliable products

Energy Medical Mining Transportation Food &Beverage


5/19


The Fish Rots From The Head First!


6/19


7/19


What types of structure or behaviorsshould be evident in a successfuloperationally excellent company?

I would argue that the ten ShingoPrinciples of Operational Excellence are

a place to start.


8/19


Ten Principles of Operational Excellence

Create value for the customerFocus on processRespect every individualLead with humilitySeek perfectionAssure quality at the sourceFlow and pull value

Enhance scientific thinkingThink systematicallyCreate a constancy of purpose


9/19


Why Do Most Transformations Fail?

Failure of leadership

Not a sufficient amount of urgencyTools are substituted for visionUndercommunicating, period!Not understanding the human resource

implicationsPound your chest too soonNot making changes permanent


10/19


So What Can We Do?

Recognize the psychology behind change.

CommitmentDenial

ExplorationResistance


11/19


How Do We Sustain Positive Change?

Remove bureaucracy

Blameless environmentEmpowerOpen and candid about the changeTake risksExhibit a sense of urgencyRecognize that change is not the issue,

resistance is!


12/19


Another Hint!

Learn First

Create Great Students

Create Great Teachers

P

D

C

A


13/19


Aftermarketgrowth

Innovativeproducts

Selectiveacquisitions

Marginexpansion

Organicgrowth

CUSTOMERS

InnovationHigh Velocity

RESOURCES

Is Operational Excellence A Strategy?

OE is an enabler, but not a stand alone strategy!

SHAREHOLDERS EMPLOYEES


14/19


15/19


Remember!


16/19


Lessons Learned

CUSTOMERS

Velocity

Innovation

RESOURCESSHAREHOLDERS EMPLOYEES

Employees need a vision or some type of image thatprovides clarity to the future.


17/19


Dont ever let yourself believe that you havedelivered the message and everyone gets it.

Lessons Learned

This is not a desk job. It is a contact sport! A failure to plan is a plan to fail. Be a prudent risk taker. Lack of financial success is usually an

organizational issue. Be flexible. It doesnt always work. People by nature are good, processes by nature

are bad.


18/19


Remember the 4 P s

PASSION PERSISTENT PATIENT


19/19


Thank You For Your Attention!

Questions?

Documents

Shingo Prize Conference 2012_Barry_Pennypacker