Foldcraft Co.: Transformational Journey

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Foldcraft Co. Transformational Journey

• Steve Sheppard
• Chair and CEO, Foldcraft Co. (Retired)
• CEO,Winds of Peace Foundation (Current)

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Introduction

• Incorporated 1948
• 100 Employee-Owned S Corp
• 350 Members
• 4 Wholly-Owned Subsidiaries
• 2006 50MM Consolidated Sales
• 2007 Plan 53MM
• Companies, Products, Services
• Transformational
• Values-Based

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Foldcraft Business Objectives

• Grow Equity By 12 Per Year
• Diversify Our Business
• Manifest Employee Ownership
• Improve Competitively and Globally
• Simple.But How?

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What if?

• You could substantially increase the involvement
  and satisfaction of your employees, and in the
  process afford better benefits, twice the
  retirement income of comparable companies and
  higher wages?
• You could increase productivity at your company
  by an average of 5.3 annually?
• There is a magic pill that could boost your
  investment rate of return by 2.7 every year?
• There is an initiative that can increase sales,
  employment and sales/employee by 2.4?
• You could increase the likelihood of the
  longevity of your firm by 15.2?
• There could be a strategy that would better
  assure your firm would continue operating
  independently?
• You could eliminate corporate income taxes?

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What if?

• You were working for the benefit of you and your
  co-workers, not some absentee owners?
• You had the opportunity to create real wealth
  through owning equity?
• You could buy into owning a company without
  investing any of your own money?
• You woke up one day and realized that you really
  will become old and retire some day?
• You had the opportunity to create twice as many
  retirement bucks as the average worker?

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ESOP Noteworthy

• Outstanding Employee-Owner in America, 1993
• Outstanding Employee-Owner in Minnesota, 1993,
  1994,1996
• Outstanding Employee-Owned Company in Minnesota,
  1996, 1998
• Outstanding Employee-Owned Company in America,
  1998

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Foldcraft Statistics

• 47/200 Participants Own 6-Figure Accounts
• The Average of Those 6-Figure Accounts Is More
  Than 160,000
• 30/47 Accounts Are Owned By Non-Managers
• 19 Accounts Are Owned By Factory Participants, 11
  By Office
• Average of ALL 200 Accounts Is More Than 75,000

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CORPORATE WELLNESS
I NTELLECTUAL S OCIAL E MOTIONAL S PIRITUAL O
CCUPATIONAL P HYSICAL
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II. Open Book Management Chapter and Verse

• Chocolate Chip Cookies
• The Great Game of Business
• The School Desk Company
• The ESOP Huddle
• Weekly Closes
• Individual Profit/Loss Statements
• White Boards, Hour-by-Hour Charts

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III. Foldcrafts Lean Journey
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Unleashing Ownership Potential

• Kaizen Teams
• Inside and Outside, All Members
• Intense, Focused, Accountable (25-50-40)
• Educate, Facilitate, Elucidate, Celebrate
• Caras Story

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Foldcrafts Lean Journey
1st Foldcraft Kaizen Event Results

• The Vent!

• 25 Productivity Increase

• 66 WIP Reduction

• 50 Floorspace Reduction

• Proved to ourselves that it could be done

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Process Lead Time
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Foldcrafts Lean Journey
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Results Achieved 98-Present

• Significant product expansion

• Insourcing previously purchased items

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Foldcrafts Lean Journey
Kaizen Continues Every Day, Every Hour!

• Monthly Events
• Point Kaizens
• HOT Lab Work
• Public Events
• Hour-by-Hour Charts
• White Boards
• Etc.

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IV. Ownership Magic

• Opportunity for Culture Shift
• Holistic Development
• Participation
• Ownership

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Stewardship

• Membership in an organization means that we have
  chosen and accepted this playing field. This
  choice and acceptance becomes our contract. Our
  desires for compensation, self-expression,
  participationwhatever we want from a placeare
  viable only so long as we can commit to the
  mission, results, constraints, principles,
  difficulties of the larger institution. If we
  cannot support these requirements and boundaries,
  then we should leave. Stewardship offers more
  choice and control in exchange for a promise.

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What I Promise to You
Open Book Management Member Involvement
Stewardship Servant Leadership
Listening Vision 100 Best Companies
Change Opportunity
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What You Promise to Me
Partnership Commitment Participation Attitude
(Courtesy, Respect) Body, Head,
Heart Change Self-Management Peer
Pressure Desire to Be All That You Can Be
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• Cross Boundaries
• Transformational
• Educational Travel
• Third-World Realities
• Broadening Member Thinking
• Educating Re Diversities
• Global/Cultural Sensitivities

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Foldcraft Foundation

• Established 1997

• Funded by Foldcraft
• 10 Pre-Tax Profit

• Separate Member Board

• Global Focus

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Does It Make A Difference?

• Competition (Falcon)
• Customers (YUM!)
• Acquisitions (Millwork)
• Share Appreciation
• Distributions

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V. The Global Context

• Winds of Peace Foundation
• Martha Valle Valle
• Honduras ESOP
• Organizational Workshops