standex food service equipment group

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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”

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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.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.standex.com/about/contact-standex&ei=MVLmVNbMHYqdygSKvoG4AQ&bvm=bv.85970519,bs.1,d.aWw&psig=AFQjCNEj9bsrh8ty_Ng7hTPM0PrzQlFwvw&ust=1424466352287431

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.

Standex Value Creation System

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Vision

Culture

Business

Strategy

Value

Creation

System

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

FSEG Operational Excellence & Strategy Deployment

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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


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


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%


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)


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


Where Should You Spend Your Time?

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OPERATIONAL EXCELLENCE


Customer Value

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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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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


Strategy Deployment Calendar

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Annual deployment calendar

synced with corporate planning

calendar


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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Schematic View of FSEG Cascade

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This gets messy quickly.


Strategy Deployment Management Process

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RCCM A-3

RCCM can be applied

To KPI’s or AP’s


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


Annual Assessment

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Part of OPEX Assessment


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Managing the Eight-Step Process

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80% = Plan20% =

DoCheck

Act


Problem Solving

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Standex FSEG Evolution

Would like to cascade one level lower in next FY19 cycle

“Departmental” level

Challenges…

Tension between:

“Instead of: and

“In addition to”

Variety of adoption rates

Complexity of the cascade:

1 Group

5 businesses

8 locations

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New acquisition

standex food service equipment group

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