March 22, 2017
Standex Food Service Equipment GroupOperational Excellence / Strategy Execution
Jacksonville, FL
Standex and Food Service Equipment Group (FSEG) Overview
Bryan WadieVice-President Strategy Execution, Food Service Equipment Group
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A Message from David Dunbar, CEO
At Standex we believe culture is as important as the strategies we execute.
Our goal is to be an Employer of Choice creating an environment that attracts, retains & develops highly capable employees and fully engages them.
David Dunbar
CEO, Standex International
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Standex | Profile
Trading Symbol: SXIEmployees: More than 5,000 worldwideHistory: Founded in 1955, more than 50 years on the NYSEDivisions: Food Service Equipment Group, Electronics, Engraving, Engineering Technologies, Hydraulics
Locations: Facilities in more than 50 countriesGeneral: Manufacturing, B2B, Engineering, ProductsPatents: 73 patents grantedApproach: Strategically partner with customers to deliver high quality custom solutions.
Standex International is a growing global
publicly-traded, diversified manufacturing
company operating in five segments:
Engraving, Electronics, Engineering
Technologies, Hydraulics and Food Service
Equipment.
The company’s market-leading businesses are
recognized for delivering high quality technical
solutions to customers. Standex leverages the
combined strengths of its businesses and value
creation system to deliver profitable growth in
current and new markets.
Standex InternationalBusiness Segments Overview
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FOOD SERVICE EQUIPMENT ENGRAVING HYDRAULICSELECTRONICSENGINEERING TECHNOLOGIESStandex International
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Standex | 2020 Vision
Become an operating company composed of larger
strategic business platforms.
Deliver above-market total shareholder return.
Forge long-term customer relationships by delivering
custom solutions to critical problems.
Be an employer of choice.
Be a valued and recognized member of our communities.
Contents Growth Disciplines Playbook
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Chapter Title Description
1
Annual Standex Growth
Disciplines Process (GDP)
Overview
• Steps and timeline for developing a growth strategy each fiscal year
2Vision & Statement of
Purpose
• Developing a short-term and long-term vision for the business
• Clearly articulating the purpose of the business
• Defining core capabilities and differentiators in the market
3Industry Landscape &
Market Maps
• Researching market size and growth
• Identifying market segments by end market, product type, and geography
• Creating competitor profiles and analysis
• Evaluating core, extension, and adjacent segments
4 Laneways • Developing specific growth laneways
5 Acquisitions• Prioritizing areas to pursue inorganic growth along the identified growth
laneways
6 Market Tests
• Overview of the market test methodology
• Developing hypothesis to test and criteria for evaluating success of test
• Description of market test phases and key decision points
7KPIs & Tracking
Performance
• Establishing important KPIs and developing reports for tracking
performance
Contents Talent Management Playbook
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1. Talent Management Strategic Framework
Talent Management Strategic Framework
Tools to attract, engage, & develop talent
Organization & Talent Review Process
2. Hiring & Onboarding
• Hiring & Onboarding Process
• Employee Value Proposition & SXI Culture
• New Hire Interview Guide
• New Hire Roadmap
3. Framework To Assess & Develop Leadership
• 4 Dimensions of Leadership & Assessment Tools
• Profile of a Successful SXI Leader
• SXI Leadership Competency Model
• SXI Core Values
4. Organization & Talent Reviews
5. Developing Hi-Potential Talent
• Talent Development strategy
• Factors That Enhance Career growth
• Difference between performance & potential
• Identifying hi-potentials: The 7 Signposts
• Development dialogues
• Development Plans
6. Performance Management
• Leader Role In Talent Management
• Goal Setting & Alignment
• Performance Feedback
• Performance Improvement Plans
7. Engagement & Team Effectiveness
• Business Case For Employee Engagement
• Communications & Engagement strategy
• How Can I Improve Engagement Of My Team
• Team Engagement Tools
• Corporate & Division Communications
APPENDIX – HR Contact List
Contents OpEx Playbook
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FOUNDATION
1. Customer Value
2. Strategy Deployment
3. Safety
4. 5S
5. Visual Management System
LEAN THINKING
6. Map
7. Flow
8. Pull
9. Perfect
LEADERSHIP
10. Problem Solving
11. Leader Standard Work
12. Change Leadership
Food Service Equipment
Food Service Equipment Group
The Food Service Equipment Group has 5 divisions with annual revenues of ~$400M
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Refrigerated
Solutions
Cooking
Solutions
Merchandising
Pumps
FSEG Sales by DivisionPro Forma FY2017
Refrigerated
Solutions
Cooking
Solutions
Scientific
Refrigeration
Scientific
Refrigeration
Merchandising
& Pumps
Food Service Equipment
A rich history of growth through acquisitions combined with organic growth
50 years of excellence in the food service industry
beginning with Procon in 1966, and with Horizon Scientific as our most recent acquisition (Oct 2016)
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2,500 EMPLOYEES
10 Locations
Food Service Equipment
Customer intimacy is a key priority in everything we do
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We serve a variety of customers …Food Service
(QSR, Fast Casual, Casual
Chain)
Food Retail(Dollar, Drug, Convenience
& Grocery Stores)
Institutional
Food ServiceBeverage Scientific
Customer
Examples
Types of
Products
Cooling & freezing
cabinets & walk-ins
Ovens
Char-broilers
Fryers
Roller grills
Toasters
Warmers
Cooling & freezing
cabinets & walk-ins
Merchandizers
Roller grills
Toasters
Food wells
Rotisseries
Fryers
Ranges
Ovens
Walk-in coolers Pumps
Laboratory
refrigerators
and freezers
FY2015
Sales~60% ~20% ~3% ~5% ~10%
Food Service Equipment
OpEx Vision
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Move from Tools to a System Across Enterprise
Lean Production/
Lean Manufacturing
Lean Supply Chain
Lean Enterprise
Lean Extended Enterprise(Lean Consumption)
Food Service Equipment
FSEG OPEX Progress
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OpEx launched April 2015
Grown to 5 full time resources embedded in the businesses
175 events
1,500 associates participated
Strategy Deployment launched April 2016
Initial embrace has been strong but limited
More tools than processes/systems
Food Service Equipment
Strategy Deployment
Does your strategy get to all levels of the organization?
Can every employee articulate the strategy AND their role?
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Links Strategy and Transformation Planning
CREATE ALIGNMENT
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Food Service Equipment
Where Strategy Deployment Fits
SXI 5 Year Long Range Plan
Annually Dec-Jan
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STRATEGIC PLANNING STRATEGY DEPLOYMENT ACTION
Next FY tie to Balanced Performance Plan
Year 1 of Long Range Plan
Annually Feb-Apr
Annual Budgets
Action Plans
Key Performance Indicators
X - charts Bowling Charts
Alignment Accountability
= Original Plan x = Progress at Review
Action Step/ Kaizen Events Milestone Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec
Improvement Priority Title: *Department/Location:
*
Management Owner:
* Date: *
Core Objective: *
TimelineTarget Improvement
Planned
Dates
Policy Deployment Action Plan
Review Team: * Next Review: *
Environmental Situation Summary: *
Status ( P a st Due i n Re d )
ImpactOwner (Lead is bold)
2003
Action Plans
Food Service Equipment
Strategy Deployment Calendar
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Annual deployment calendar
synced with corporate planning
calendar
Food Service Equipment
Strategy Deployment Toolkit
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Represents significant change in process improvement, especially as seen through the eyes of the customer
Requires the organization to stretch itself
Usually requires multifunctional efforts and teamwork
Usually, no standard or system exists for this level of breakthrough (we have to create it)
Can be characterized as a “Big Win”
Crisp, active voice priority statements.
Confuse TTI’s or metrics with processes.
8 standard KPI’s for all
businesses & locations
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3
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Food Service Equipment
Strategy Deployment Management Process
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RCCM A-3
RCCM can be applied
To KPI’s or AP’s
Food Service Equipment
Monthly meeting within first 10 days of month. 4-6 hours
Standard agenda: Review the day
Financial Review
KPI’s
Strategy Deployment Review
Gemba Walk
People / Organization Issues
Other Business
Review Meeting and Cadence
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5%
15%
60%
20%
In Addition
Part of Visual Mgt and Leader Std Work
Daily shift start
Daily gemba walk
Weekly kaizen/AP team
Bi-weekly transformation review