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King Arthur Flour Company: Mixing Tradition with New Inventions

Steve Voigt, President & CEOSarah McGinley-Smith, Employee-Owner

Moderator: Diane Stoneman, Dir. of Consulting and Training, Winning Workplaces

Start Time: 10 am CT

• Founded in 2001 by co-owners of Fel-Pro Auto Gaskets

• Committed to small enterprises building healthy, productive work cultures

• Triple bottom line: Business, People, Community.

Winning Workplaces

Winning Workplaces

Online Clearinghouse

Business Leader

Webinars

Consulting & Training

• The Wall Street Journal

• Winners profile @ WSJ.Com/Entrepreneur

• 2008 Best Practice Report@ WinningWorkplaces.org

• Top Small Workplaces conference Oct. 1& 2 in Chicago

ATA EngineeringDecagon DevicesIntegrated Project Management (IPM)JA Frate Jackson's HardwareJump Associates King Arthur Flour Company Landscape FormsLundberg Family FarmsNew Belgium BrewingPhenomenexRainforest AllianceResource InteractiveThe Paducah Bank & Trust The Redwoods Group

2008 Winners at a Glance

• Steady rate of growth, 2005-2007 = 23%.

• Revenues range= $8-$107 mil.; average $36 million.

• Employees ranges from 48 to 477; average 154.

• Average tenure= 6 years; average turnover rate 13%.

• Stable leadership: avg. CEO tenure = 17 years.

• Long term business: average 42 years.

• 10 out of 14 firms= employees share in ownership.

Our Agenda Today

• King Arthur Flour History

• Evolution Over Time- Two Perspectives

• Lessons Learned

• Audience Questions

Meet our Presenters

Steve Voigt

President & CEO

Sarah McGinley-SmithEmployee-Owner

King Arthur Flour King Arthur Flour HistoryHistory

1790: Henry Wood began importing flour to Long Wharf in Boston1896: Owners gave product a new brand name: King Arthur Flour1984: Then-owner Frank Sands moved company to Norwich, Vermont1990: Mail order catalogue established1992: Baker’s Store opened1995: King Arthur Flour’s new headquarters, Camelot, was built.1996: Frank Sands decides to sell his company to his employees2004: King Arthur Flour becomes 100% employee-owned2007+2008+2009: Ranked in top 5 for best places to work in Vermont

Snapshot of GrowthSnapshot of Growth

1990 2008

Employees: 3 160

Products offered: 142 1500

Annual catalogues: 125,000 5,800,000

Annual emails: 0 25,000,000

Facilities (sq. ft): 4000 62,000

King Arthur Flour TodayKing Arthur Flour Today• 170 employee owners

• $73 million in sales

• Flour: grocery, Bakery Food Service

• Direct: web, catalogue, retail store

• Education: Baking Education Ctr, LifeSkills, Traveling Baking Demonstrations

Company TransformationCompany Transformation

• Challenges

• Culture

• Leadership during change

• What went right

Employee InvolvementEmployee Involvementat time of transitionat time of transition

• Employees already acting like owners- now actually owners

• Stock price decrease

• Ownership vs. operational involvement

• Maintaining culture after original owners phase out

Employee Involvement Today= Employee Involvement Today= TeamsTeams

• Safety• ESOP • Stewardship

Employee Involvement Today= Employee Involvement Today= Brown Bag Lunches Brown Bag Lunches

Employee Involvement Today= Employee Involvement Today= Owner Meetings Owner Meetings

Employee Involvement Today= Employee Involvement Today= Intranet/Tablespoon/Wiki Intranet/Tablespoon/Wiki

Employee Involvement Today= Employee Involvement Today= Brain food Classes Brain food Classes

Ingredients for SuccessIngredients for Success• Involvement (the Round Table)• Quality• Fun and Celebration• Pride

• Open Book

Lessons LearnedLessons Learned

– Succession is tricky (it was in the days of kings as well)

– Developing leaders from within to match pace of new opportunities

– Communication even more critical

ROI Impact of ROI Impact of TransformationTransformation

Questions or Feedback?

Steve Voigt

President & CEO

Sarah McGinley-SmithEmployee-Owner

Upcoming Webinar

Engaging Fresh Young Talent in the Workplace Featuring:

Dave Schmitz, General Mgr, The Steppenwolf Theatre,

Tom Walter, CEO, Tasty Catering, Elk Grove Village, IL

October 20, 2009 @ 10:00 a.m. CST

Thank you for joining us.Thank you for joining us.

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