How Leadership Development Drives Quality

Cindy Milrany,CFO, CAO

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.

• 2010 Malcolm Baldrige National Quality Award• First engineering and architectural firm

to receive the award

Baldrige Criteria

4 Measurement, Analysis, Knowledge Management

1 Leadership

CRITERIA FRAMEWORK

7 Results

Organizational Profile:

Environment, Relationships, Challenges

5 Human

Resource Focus

3 Customer and Market Focus

6 Process

Management

2 Strategic Planning

Challenge

• PSMJ found:– 1 in 75 A/Es has the natural skills to lead– Many lack

• Communication skills• Marketing abilities • Business aptitudes • Interest• Entrepreneurial drive

• Leaders can be developed

StrategyThe Leadership Pipeline

Passage Three

Lead Self

Lead Others

Lead Group

Lead Business

Passage One

Passage Two

SkillsTimeValue

Leadership Pipeline: Passage Two

• Lead Others– Skills

• Managing projects• Planning & scheduling• Monitoring

performance– Time

• Setting priorities• Solving problems• Time with the team• Time with clients

– Values• Doing the work

“right”• Success of others

• Lead Group– Skills

• Thinking strategically• Thinking long-term• Motivating & inspiring• Coaching & giving

feedback– Time

• Coordinating with others

• Building social contacts

– Values• Doing the “right” work• Success of the firm

Formal Selection System

• We didn’t want the selection to become political• We didn’t want just a few people making the

decision• We wanted the managers to have input• We wanted the process to be seen as fair

Career Assessment Tool

• Business Career Interest Inventory– Application of expertise– Working with people– Control and influence

• Encouraged employees to think about their careers and where they best fit– Technical– Management– Sales/Marketing

Used Potential From Reviews

• With development, this person shows potential to perform at the next level.

• With experience and development, this person shows potential to perform at the next level.

• This person can continue to contribute and expand his/her responsibilities at the current level.

• Improvement is required in order for this person to maintain his/her current level.

Leadership Development Program

• Eight month program– Invitation from the CEO– One-day session each month– Assigned readings and projects– Senior management participation– Entire management team informed and

supportive

Critical Leadership Skills

• A company focus• A market focus• A problem-solving

focus

1. Think strategically2. Think long-term3. Competitiveness4. Energizing other5. Client focus6. Continuous improvement7. Confronting problems8. Solving problems9. Coaching and giving

feedback

Leadership Development Skills

• Strategic planning and strategic thinking• Financial skills• Management skills• Leadership skills• Coaching skills• Team-building skills• Interviewing and recruiting skills• Performance planning and review skills

Action Learning

• Learn by participating• Learn by doing• Learn by solving real-life problems• Learn by receiving feedback

– Assessments– Assigned exercises and projects– Senior management feedback

Learning Financial Skills

• Learn how to read financial statements– Balance Sheet and Income Statement– Ratios and trends

• Learn how to read F&N’s financials• Exercise

– Analyze the financial statements– Identify problems– Develop management actions– Present to senior management

Learning Strategic Thinking

• Key components of strategic planning– Mission, Vision, Strategies, Actions

• F&N’s Integrated Planning Process– CI Management System

• Exercise– SWOT analysis and recommendation

• Participate in F&N’s planning process

Individual Development Plans (IDP)

• 360 assessment of required skills– Self-assessment– Manager’s assessment– Direct reports’ assessment– Peers’ assessment

• Meet with a professional counselor/coach• Meet with their manager and the COO• Develop an IDP

Project Assignment

• Leadership Challenge, by Jim Kouzes and Barry Posner

• Plan for the first 100 days in a new job– Model the way– Inspire a shared vision– Challenge the process– Enable other to act– Encourage the heart

Results

• A broader, longer-term view– Understood the company– Understood why– Became independent thinkers

• Hit the ground running– 80% of participants were promoted– Some are now leading performers

• Becoming mentors and role models• Decentralized leadership

The Process Continues

• 2003- First Leadership Development Program•2008- Second Leadership Development Program•2011- Senior Leadership Program

Why is Leadership So Critical?

“There’s not many companies that have enjoyed 117 years of successful practice and I fully expect, with the leadership we have and the leadership that will succeed them, Freese and Nichols will be around in another 100 years.”

-Jim Nichols Chairman Emeritus Freese and Nichols, Inc.

Thank YouQuestions