1. Innovation and Change at Morton Buildings, Inc.

2. History

1903 Interlocking Fence Company

1949 Designed its first farm storage building

1964 Became Morton Buildings, Inc.

Has grown to include over 200 offices in 36 states

3. Culture

Pride

• Industry Leader

• Quality Product

• Outstanding Service

Innovation

• Rewards for ideas

4. MBI Structure Board of Directors Sales Secretarial Management Human Resources And Marketing Crew Supervision Regional Sales Managers Crew Foremen Office Managers Regional Supervisors Office Managers Office Managers Local Sales Consultants Building Crews Engineering And Manufacturing Project Managers And Plant Managers Office Secretaries 5. Leadership and Change

Family Owned

1903-2003 President was a family member

2003 - President A

• 5 year contract

• Additions to upper management levels

• • Imposed changes

• • Communication limited

2007 - Addition of new product line

• Confusion

• Resistance

6. New Product

Lower cost, basic building package

• Lower quality materials

• Less options

• Operating costs cut

Reason

• MBI was losing the lower end of market

• Customers

• • More instant gratification at lowest cost

• • Less concern for lasting value

7. Resistance

From agricultural storage and shops to commercial buildings and churches, Morton employees pride themselves in providing the highest quality product in the industry.

8. Resistance

Lack of communication

• Loss of trust in leadership

• Confusion in expectations

Disagreement on need for change

• Complacency

9. Leadership and Overcoming Resistance

2009 President B

• Restructured/downsized management

• Opened communication

• • Regained trust of local employees

• Held regional meetings to support additional product line

• • Regional control of implementation

10. Overcoming Resistance and Sustaining Change

President B reinforced the need for change

• Updated documentation

• Increased performance standards

• Exhibited low tolerance for non-compliance

11. Effectiveness

Change in leadership

• President A

• • More management than leadership

• President B

• • Enabled the company to change

Addition of the new product line

• More successful than anticipated

• Necessary

12. Morton Buildings, Incorporated: The leader in their industry.

Leadership with a vision

Culture of Pride

Flexibility