King Arthur Flour Company: Mixing Tradition with New Inventions

Steve Voigt, President & CEO Sarah McGinley-Smith, Employee-Owner Moderator: Diane Stoneman, Dir. of Consulting and Training, Winning Workplaces Start Time: 10 am CT

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ATA Engineering Decagon Devices Integrated Project Management (IPM) JA Frate Jackson's Hardware Jump Associates King Arthur Flour Company Landscape Forms Lundberg Family Farms New Belgium Brewing Phenomenex Rainforest Alliance Resource Interactive The 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-Smith Employee-Owner

King Arthur Flour History

1790: Henry Wood began importing flour to Long Wharf in Boston 1896: Owners gave product a new brand name: King Arthur Flour 1984: Then-owner Frank Sands moved company to Norwich, Vermont 1990: Mail order catalogue established 1992: Baker’s Store opened 1995: King Arthur Flour’s new headquarters, Camelot, was built.

1996: Frank Sands decides to sell his company to his employees 2004: King Arthur Flour becomes 100% employee-owned 2007+2008+2009: Ranked in top 5 for best places to work in Vermont

Snapshot of Growth

Employees: Products offered:

1990

3 142 Annual catalogues: 125,000 Annual emails: Facilities (sq. ft): 0 4000

2008

160 1500 5,800,000 25,000,000 62,000

King 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 Transformation

• Challenges • Culture • Leadership during change • What went right

Employee Involvement at 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= Teams • Safety • ESOP • Stewardship

Employee Involvement Today= Brown Bag Lunches

Employee Involvement Today= Owner Meetings

Employee Involvement Today= Intranet/Tablespoon/Wiki

Employee Involvement Today= Brain food Classes

Ingredients for Success

• Involvement (the Round Table) • Quality • Fun and Celebration • Pride • Open Book

Lessons 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 Transformation

Questions or Feedback?

Steve Voigt President & CEO Sarah McGinley-Smith Employee-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

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