2022STRATEGICFRAMEWORK-REFRESH

FOR INTERNAL DISTRIBUTION | REV 02.20.2017

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MISSIONRevolutionize the industry…Create the future

VISIONAn environment where extraordinary demand for Beck’s superior products, services, and innovative solutions will result in unique and rewarding experiences for our customers and our people.

VALUESIntegrity is doing the right thing when no one is looking and behaving with uncompromising honesty. We believe in maintaining lasting relationships based on honesty, consistency and with the highest ethical standards. This creates credibility in our personal and professional relationships.

Caring is showing concern, empathy and compassion for others, ourselves, and our environment. Our concern for one another shows itself in our commitment to Safety first in all we do and never compromising on it. We encourage each other to be the absolute best and hold each other accountable to that. We help those in need, contribute to the communities in which we work and develop creative ways to be responsible with all our resources.

Integration is working unselfishly toward common goals across disciplines, teams, departments and regions. We believe that our collective contributions are greater than our individual skills. We will be transparent as a group and seek to understand each other’s expertise to provide the most value possible in delivering our services to one another and our clients.

Innovation is never being too comfortable with the status quo by developing new ideas and applying those solutions that differentiate us in valuable ways. We hold each other accountable for continuous improvements in our results and will not look at innovation as an end to itself. We will maintain an environment where we foster new ideas and encourage changes that can help us improve.

TABLE OF CONTENTS

INTRODUCTION 3

INTEGRATION 4

DELIVERY EXCELLENCE 5

STRATEGIC GROWTH 6

PEOPLE 7

CONCLUSION 8

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2022STRATEGICFRAMEWORK-REFRESH

INTRODUCTION

“I can’t change the direction of the wind, but I can adjust my sails to ensure I reach my destination.” This quote by country great, Jimmy Dean, is a poignant reminder of the attitude required for us to succeed. In 2012, we wrote the 2022 Strategic Framework for Beck. While it is important to choose a time frame sufficient for us to dream, we knew then that much would change during the next ten years, so we only wrote our objectives for five years, allowing us the opportunity to check in on the direction of the wind and, if needed, adjust our sails. This document is not intended to replace our 2022 Strategic Framework. Instead it’s dedicated to refreshing it; specifically, adjusting our objectives to our current conditions as we look ahead to the next five years.

When we wrote our Framework in 2012, we had five major areas of improvement. We wanted to accomplish more through integration, we wanted to grow the company because we had suffered some contraction based on the economic downturn of 2008, we wanted to improve how we partnered with our subcontractors namely taking advantage of the inefficiencies we found in the mechanical/ electrical/ plumbing trades, we wanted to reduce the impact of our building on the environment, and we wanted to further promote more sustainable ways to design and build. We have accomplished a considerable amount of what we set out to do five years ago. (2022 Strategic Framework) However, it is now important to realign based on our current climate.

In order to properly do this, we convened various groups of leaders four times over the course of 2016. We had countless structured and unstructured conversations, as well as introduced research and thought-provoking presentations from external thought leaders. From there, we established themes to address as a firm, then aggregated those into four core principles which we will address and incorporate into our next five years. It is our way of tacking our sails to change with the winds.

It is clear to us that we have further work to do in order to achieve our goals in Integration. While we have made significant progress, we always understood that this would be a marathon, not a sprint. Integration gives us the opportunity to truly make a difference in our industry and we want to continue to build on this differentiator.

Based on the condition of our economy and many of the markets we work in, the last five years have illustrated the need to focus our efforts on the fundamentals of our business. With the economic downturn, many clients stopped building while several of our competitors, subcontractors, and suppliers cut resources. The bottlenecked demand caused some of the most aggressive expansions in the commercial construction sectors many of us have ever experienced in our careers, gobbling up resources, stretching the capabilities of our best subcontractors and suppliers, and leading to an influx of new people and new companies. We cannot assume that it is back to business as usual. Instead, we need to dedicate ourselves to properly training and over-communicating the fundamentals of our business. This commitment to delivery excellence is a requirement for us to be successful in this evolving environment.

We must be more focused and strategic about our growth. Over the past five years, we have more than doubled the size of the firm by revenue. This firm-wide growth has occurred in every location, resulting in better critical mass, new expertise, and a deep bench of future leaders. It has also allowed us to achieve better visibility. At our current size, we have the right scale to be successful and have the impact it takes to influence our industry. However, now we must be more selective about where our new projects come from. This is the time to be diligent and strategic about what we pursue and where we find new work, focusing on quality over quantity.

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Additionally, with the growth in revenue, we have added a few hundred people to the firm. We are at a place where we must be intentional about the development of our talent, as they are our distinguishing factor and most original offering.

Although we are builders, we should keep in mind that what we do has the ability to improve lives and communities. We should strive to build buildings that will improve the lives of the people who occupy them. Remember that through designing and building buildings; we build people, we build better communities and we can help change the prospective circumstances of those less fortunate than ourselves. We are helping to improve the health, education, spirituality and fulfillment of the people in the communities we work. This is what Beck means for many of us here, and why we are excited to provide you with a refresh on our 2022 Strategic Framework. When we perform exceptional work more efficiently and effectively, we increase our capacity to improve lives, something we should always be excited about.

INTEGRATION

It is our unique offering to the marketplace and the lifeblood of our firm. It is our most “Killer App”, and represents our best opportunity to create value for our clients and ourselves. While we have been relatively successful in selling our integrated approach, we have more work to do to gain the efficiencies we seek. We must be more disciplined and intentional on the delivery of our integrated work.

As a part of our 2012 Strategic Plan, we wrote our 2014 Integration Framework. We believe this is still a valid set of guidelines for the operation and implementation of our integrated work. For the purposes of this refresh, we will highlight a few initiatives from this Framework, and update you on what we have done to date, as well as our aspirations for the next five years in Integration. As we move forward, we must be diligent with embracing and implementing the Four Fundamentals laid out in this Framework.

ESTABLISH THE TEAM EARLY It is imperative to the success of our Integrated delivery that we fill the key roles within our projects early and that these roles are not disrupted throughout the project. We understand that team health and establishing transparent ways of measuring it is essential, because no amount of process can overcome a team that does not trust, rely, and operate well together. We must move beyond simple cooperation to deep collaboration, which is only possible when we take an authentic interest in each other’s work. We have dramatically increased the resources available to help our teams launch and perform consistently. Initiatives like on-boarding, just-in-time training for the entire team, proper project kickoff and start up, all increase our ability to hold each other accountable. We know it is also important to have proper coaching for our teams. Successful projects start with functional high-performing teams.

SELECT THE IPL At times we have struggled to properly select our IPLs, and to give them the authority and the training to sufficiently shepherd our integrated teams. For this reason, we want more emphasis around training and coaching for our IPLs. We have established an IPL Forum, a support group for IPLs where those in this role can share recipes for success and receive support from peer IPLs. We are very excited about improving the strength of this position, as all teams need competent captains.

DEFINE BEFORE YOU DESIGN Over the past year, our Design and Pre-Con teams have engaged in a focused effort to establish a Target Value Design Process. We believe this process more accurately lays out an approach to successfully defining and designing projects in a manner to meet the owners’ requirements. The acceptance and transfer of risk, when projects are not properly defined, has been an Achilles heel to not only our firm, but our entire industry. We must improve our efficacy here on both integrated and non-integrated work as properly defining our projects before design and final pricing will ensure we have less volatility in our delivery.

COLLOCATE It is difficult for teams that do not know each other and do not spend time with each other to actually perform well together. We want to break down the reporting and physical silos to fuel our success as a team. As we look to establish more defined measurables on integrated performance, it is important that we hold ourselves accountable on being together, working together and succeeding together.

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Thus in addition to the Four Fundamentals above, the Integration Framework called for the establishment of an Integration Council; a place where we could learn together, share ideas across regions and establish best practices in furthering our integrated approach. The Framework also calls for a National Leader in Integration. We have appointed a National Director of Collaboration and a National Director of Integration in addition to the Integration Council, to support the quality of our integrated processes, and more importantly the health and efficacy of our integrated teams.

We must measure the performance of the overall project, hold our teams accountable to being a unified team, and continue to train and support each other to truly live out our value of integration. We must also be strategic in finding integrated work, with great customers who share our belief that through deeper collaboration we can improve the way real estate is delivered. Supporting this, we have chosen a five year objective that focuses on increasing the amount of integrated work we are doing, and increasing our delivery efficiency.

INTEGRATION FY 2022, 51% of our volume will come from Integrated projects, and we will earn 6% average profit on this integrated work.

DELIVERY EXCELLENCE

Increasing our ability to be innovative, to truly change this industry through integration, comes down to first mastering the fundamentals of our industry and doing the little things right. As the saying goes, he that can be trusted with a little will be trusted with a lot. We want to be excellent at delivering projects, because it is the core of our work, our reason for being, and the main thing our customers depend on from us. When we are excellent at project delivery, it increases our satisfaction with, and confidence in, each other. For the purposes of our discussion, delivery excellence means taking care of the fundamentals in safety, our project business terms, appropriate scheduling, keeping our clients happy, and setting our subcontractors & consultants up for success through accurate coordination and scoping of our projects.

SAFETY Our people are the most important asset of the firm. We have a moral obligation to ensure that every man and woman that shows up to a Beck job, goes home safely to their family. We will always have annual objectives that track our performance on safety, because aside from reinforcing our value of caring, it is one of the leading indicators of success on a job. Safe jobs are usually successful jobs, while the inverse is also true. A safe environment is the ultimate expression to our people, suppliers and customers that we truly care.

PROJECT TERMS In the past we have used words like profitability, business plans, or financial plans to describe this area of our work. It is increasingly true that profits in our business, both in design and construction, come from proper negotiation and adherence to the correct terms. We must be more diligent about the risk we accept, both formally and informally, with proper definition of projects before we have to commit to the cost. To this end, we must focus more on how we contract for work, and properly compensate for risk, along with using PDRI and Target Value Design as well as other tactics to ensure we properly define our projects. This will allow us to limit the risk we accept from unknown and poorly defined scopes and details. If we do these things correctly, we will have better and more profitable work. We must implement the strategies in our project business plans, and ensure our ability to perform these value-add components are negotiated at the time of our contract signing. In 2016, we established a Risk Committee to review the business terms of our contracts before signing to support these efforts.

SCHEDULING Our customers expect us to deliver on the commitments we make in terms of schedule. They expect smoothly delivered work; well sequenced and with obvious flow. We must increase the discipline around how we formulate our project schedules, but more importantly we must be disciplined as we work through our projects to update, and to insist on schedule adjustments and extensions when there are critical owner changes to the project. Accepting large scope changes, without any adjustments to our schedules, has caused chaos in our industry and

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our firm over the past five years. So much of the misery the men and women on our jobs experience can be tied back to poor schedules. Increasingly, it is unrealistic to think that we can buy our way out of schedule issues. Only properly sequenced work, well-timed and well-coordinated, can result in smoothly delivered projects. As in many cases, the accelerated delivery strategies, premium time and double shifting, only create further chaos and a less productive environment. As with safety, proper scheduling is a critical part of employee and customer satisfaction, and overall project success. In 2015, we invested heavily in a scheduling department.

TEAMS We must have the right people at the right time, and hold each other accountable to properly staff jobs. We should only accept projects where we have team members with the proper competency and experience to do that work. A poorly staffed job, with too few people or without proper role competencies, wreaks havoc on our results. Our managers must hold each other accountable to ensure proper staffing. We must build the right culture within our teams through proper team building, strong leadership and proper definition of each team member’s role, encouraging strong chemistry between team members, and supporting an environment for success. Additionally, we must develop opportunities for team members to give each other feedback to allow for smoother and more transparent communication. Over the next five years, we will focus heavily on setting up our teams for success. No amount of process or strategy can overcome poor culture nor a lack of team chemistry. We want true collaboration at the team level where team members are really working together to ensure mutual success. In 2016, we established a Director of Collaboration whose main job is to launch and support our teams.

PROJECT CONTROLS We need to adequately monitor our projects so we find issues as they arise and address them quickly. Beck must set aside resources to ensure we have the backup when it is needed. We must send help sooner, which means, we first need to know where help is required. Secondly, we need to be willing to ask for more resources and/or help. Thirdly, we must create a transparent environment on our projects making it easier to see where help is needed. Project controls and project monitoring is not setting up a police state to interfere with or harass our teams, but instead, setting aside the resources for supporting our teams. We need to be certain there is no jealously over our portfolios of responsibility and must promote true collaboration firm-wide to ensure every person is successful. We cannot expect collaboration on our teams if we are not willing to accept the resources and outside help, when needed. We are investigating the establishment of a Managing Director and a group specifically dedicated to Project Analytics. We are also investing in software in this area, as well as deeper bench strength.

It is our belief that client and employee satisfaction, as well as profitability are the result of doing the above correctly. While there are a number of ways this could be measured we have chosen a very simple formula:

DELIVERY EXCELLENCE As a measure of overall delivery excellence; we will achieve an average of 1.4% Net Income from core domestic and international operations over the next five years.

STRATEGIC GROWTH

In the 2022 Strategic Framework we set an objective to grow; to become more significant in size with more strength in our reach and in our voice, with more resources to invest in innovation and in our people. After five years, we are now at a place where we must celebrate the growth we have achieved and adjust our focus to the quality of our continued growth over the quantity.

Over the past five years, we have increased our investment and focus on those growth markets that provide the greatest potential for expansion and those that we feel are most recession proof: Healthcare, Life Sciences, and Faith. We also believe we need to improve our competency in delivering projects for the Federal Government. Now that we have reached a critical mass as a company, it is time to revisit our commitment to the pursuit of these markets and our emphasis on growing in a very focused and strategic manner. We must protect our position by focusing on those customers in our existing core markets that share our values, and those that are seeking innovation and deeper collaboration in the delivery of their projects. As we move forward, we want to concentrate on two strategies for growth; winning in our growth markets, and a laser-like focus on customers in our core markets.

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GROWTH MARKETS In our 2014 Marketing Framework, we emphasized the need to invest more fully in markets that we believed were ripe for integration, those with long-term customers whom were likely to build repeat projects. We also wanted to focus on Market Sectors with sufficiently complex projects where a certain amount of expertise would be required to pursue them. Projects where deep collaboration between designers, consultants, contractors, subcontractors and suppliers are required. These market sectors give us a better opportunity to express the value of integration, and to apply our integrated enterprise in a more intentional way. Over the next five years, we intend to invest more robustly in these markets by identifying clients and searching for opportunities in each of our regions.

CLIENTS Beck has been and always will be a client-focused organization. In all of our markets and regions we must be focused on qualifying and pursuing the right customers. We know that winning and losing in our business, often times happens long before there is a specific project. While we will always have to be competitive on the business terms, and will always need sufficient expertise, often in our business, particularly in our core markets, success comes down to having the right relationships at the right levels of an organization. In the 2007 survey of our best customers, it was clear that they chose Beck because they had relationships with someone in the firm who had the ability to solve their issues when they arose. As we move forward, we need to continue to earn and maintain these “trusted advisor” positions with our best customers, deeply focusing on those long-term owners who share our values and place a priority on relationships.

We have grown significantly over the last five years and accomplished much of what we set out to accomplish. Now is the time to double down on our commitment to pursuing integrated work in our strategic markets and grow our business in areas that are more difficult to enter and therefore easier to defend. We must continue to focus on clients with whom we can develop superior relationships and where we possess the expertise to serve them well.

STRATEGIC GROWTH By FY 2022, 35% of our work will be in the strategic markets of Healthcare, Faith-Based, Life Sciences and Federal Government.

PEOPLE

A company cannot be good for its customers if it’s not good for its people and likewise our people cannot be good for each other if they are not good to themselves. As a professional services organization, we must acknowledge that our people are our future. They are our most valuable asset and our most important investment. Our ability to attract, develop, and reward the top talent within the industry is essential to our future success, our culture and the Beck brand. It is a mutual responsibility for which we are all accountable. One of the most famous sayings in sports is, “It’s never about the X’s and the O’s (your strategy) it is always about the Willies and the Joe’s (your people).” The result of great work should be a great life. We need to be sure we are connecting the dots well, and helping our people align their passions and interests in life to the work they do every day.

ATTRACT Our recruiting strategy must be intentional about filling the gaps that exist amongst our experienced positions, bringing in outside leaders with a broad perspective on our industry. We also need leaders who can bring new competencies to the firm, bringing in the best and brightest young people to add depth to our pipe-line for the future. Important in all of this is recruiting men and women who share our values, who have demonstrated throughout their life caring and integrity, and those that believe in integration and collaboration as the ultimate way to get their work done. We must have a robust program for recruiting, and increasingly over-recruit so we have a deeper bench with additional resources and people that can be deployed to projects when relief is required.

DEVELOP This might not be your last job, but we hope it might be your last company. Over the years our leaders have frequently played a variety of roles in different services and diverse locations. Each person at Beck must have a plan for success in their career, and then we must help each other align a successful career and life plan. The benefit of having a clear career plan, which aligns with your training and development, is that it makes

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it easier to filter opportunities and track your progress against your own metrics, instead of the pressures and expectations of others. Our capacity and ability are wholly owned by each of us and increasing these through self-development, allows us to better provide for our loved ones, as well as gives us more flexibility for our own futures. For this reason, we must all take particular interest in continuing to improve professionally. Of course, when all of our people are expanding their capacity, this increases the capacity of the firm. At Beck, we have no shortage of opportunities, so the best way for us to ensure we can pursue more of those opportunities is though self-development. The more capacity each of us develops, the more freedom and flexibility we earn for ourselves.

REWARD We must have realistic strategies for success. When we perform well, consistently exceed our customers’ expectations, and smoothly deliver our projects, we create more value for ourselves and our customers. We must be intentional about sharing that value through great compensation and a robust bonus program. Over the next five years, we want to broaden ownership in the firm, and enable more of our top performers to partake directly in the equity of the company. Earning the right to lead our people, attracting clients, contributing to the bottom line of the firm, and living our values, are the best ways to ensure one is rewarded at the highest levels at Beck. The benefit of good work should be a good life! When we do well, we all share in that success.

PEOPLE To ensure the satisfaction and fulfillment of our Beck team, by FY 2022 we will earn an Internal Net Promoter Score 5% higher than the 2017 baseline.

CONCLUSION

As we wrap, I am reminded of the story of Ernest Shackleton, an early 19th century explorer. If you have not read the story, I would highly recommend; it is very interesting and outlined well in this HBS article. Whilst attempting to mount an expedition to the South Pole, Shackleton found himself in competition with another explorer, Admundsen, and his crew. Shackleton was focused on the small things and his crew prepared very well for their exploration. They did all the details right and tried to account for unanticipated events that could arise during the journey. He was particular in selecting the right crew; looking for men with diverse albeit complementary skills, whom he told openly and honestly about the risks exploring the South Pole would bring and the grit they would need. Shackleton and his team spent over a year preparing, practicing their routes and all possible scenarios they could encounter, unlike his competitor who spent most of his time on a media tour leading up to the trip. He even overstocked his food supplies and took more resources than necessary, which came at the cost of speed, because he wanted to be prepared.

During the journey, when a terrible storm arose, Shackleton was able to deviate from his initial mission of reaching the South Pole and realign with a new intention of getting all of his men home safely, which he did. He shunned the glory of being the first to explore the South Pole to fulfill his moral obligation of keeping his crew alive. Meanwhile, his competitor Admundsen lacked the prerequisite discipline and resources to reframe his mission. He was travelling lightly with less men and less resources than necessary, favoring speed over consistency, with a certain disregard for the capacity of his men and his ship. When the storms came, he lacked the ability to adjust, and was so caught up with being the hero who discovered the South Pole first, that he ultimately brought about the demise of himself and his entire crew. Shackleton, when asked, “How did he get all of his men home safely? Was it just luck?” paused and with a deep and thoughtful response said, “Yes, it was luck, but we did all the small things required to give luck a chance at end.

Let this be a reminder that while we may develop the best plans and have the best ideas, beyond these ideas, there are required heaps of seemingly small non-glamorous things which we must endure, to give our concepts a chance. Let us renew our commitment to being mindful of the small things, so we might experience success in a big way. As Shackleton says, “Success is always tied to luck, but first we must do the things required to give luck a chance.”

Thank you for all you have done and continue to do, to build a better Beck!