Muncie Power Quarterly

MPQ

MUNCIE POWER QUARTERLY

MEETING THE CHALLENGE

TERRY CRAGO DISCUSSES HOW YOU CAN SAVE SALT WITH THE MESP 300 SERIES

ALSO INSIDE: CEO’S CORNER:

WHAT “THINK WEEK” TAUGHT US

BEST PRACTICE: MAINTAINING THE MESSAGE

GET TO KNOW US: FINDING THE RIGHT PEOPLE

MANAGER Q&A: MOVING FORWARD AS A TEAM

2015 - ISSUE THREE

CEO’S CORNER

RAY L. CHAMBERS Chairman, CEO & President Ray L. Chambers joined Muncie Power Products as Vice President of the Tulsa (Oklahoma) Division in 2004, became President of the company in 2009, and was named to his current position in January 2012. He holds a bachelor’s degree from Oklahoma Wesleyan University and a master’s degree from Nazarene University in Bethany, Oklahoma. He is a thought leader and visionary within the industry.

WHAT “THINK WEEK” TAUGHT US Addressing big-picture topics is part and parcel of running a global company. Taking the view from 30,000 feet is supposed to give you the perspective you need for guiding your team through the workplace labyrinth, right? Absolutely. Equally taxing is finding the time to get the work done - that you’ve identified from that vantage point.

At Muncie Power Products, we’ve adopted a bold, new kind of calendar that makes the important work of taking on big topics consistently a priority in our company. One week every month - is “Think Week.” Our management group along with our

“We’ve adopted a bold, new kind of calendar...”

- Ray Chambers

company’s up-and-coming leaders are part of a team that is tasked with strategy execution.

It seemed every time we had a particularly pressing matter, organizational deficiencies held us back. Either we couldn’t get everybody to the same meeting, at least to the same meeting regularly, or there was another roadblock.

Microsoft CEO Bill Gates started the “Think Week” concept years ago when he would seclude himself to retrench and refocus on his company. Then, the concept expanded to Microsoft managers.

But it was once or twice a year.

Our twist on “Think Week” is that it is a monthly commitment at Muncie Power Products. We clear our calendars to focus on the priorities we’ve identified.

CEO’S CORNER

Here’s how it works, some lessons learned and suggestions about how you can adopt a strategy to think big-picture and solve some complex problems in your company.

5. Get out of the office: We use the rest of the month to do what we’ve always said we should do more. We’re in front of customers, our industry and employees.

1. Major rewards require major commitment: Designating this much time on important topics absolves you of the natural guilt you feel when you’re concentrating on one thing, yet know there are so many other matters that need your attention.

We’re interacting the rest of the month with the people who make our business what it is. We’re traveling.

We’re out of the office.

2. It takes a village: If you operate in functional silos, you spend all your time managing communications and never getting ahead of the change.

This much time to focus means the list of outstanding things that need to be done, actually get done.

3. Focus, focus, focus. During “Think Week,” there’s nothing else on the calendar.

We identify the areas to be addressed, assign individuals topics and determine how much time or how many meetings it is expected to take to resolve the problem. In between, individuals are assigned tasks that will set the stage for the “Think Week” discussions.

4. Be intentional: Everyone is present during “Think Week.”

There’s no excuse for not being there because we plan for it. And we discuss topics in a variety of settings but each has a purpose.

We break bread together. We walk through issues together. We strive to be thorough.

6. Involve your future leaders: We include our top leaders and we intentionally bake in our future leaders. We know some day we won’t be here and we want people to have the backdrop of why we made the decisions we did.

7. It’s ongoing: We’re more than half way through our first year using this kind of calendar and it’s working.

We’re getting big jobs done. Going forward, we’ll have fewer topics but they’ll be meatier.

8. Collective wisdom: It’s the team’s collective wisdom that makes “Think Week” work. As you review problems, you’ll look at the plan, the cost and the timeline. You need everyone at the table to find solutions.

9. Not for the faint of heart: This is an intense calendar schedule and the work is difficult. We would not have been able to do this just a few years ago, but we’ve worked our way to this point.

You’ll have to find the right time for your company. n

BEST PRACTICE

MAINTAINING THE MESSAGE The importance of employee and consumer knowledge.

DAVE DOUGLASS Director of Training and Education

Dave Douglass has been with Muncie Power Products for 37 years. Douglass, who has a bachelor’s degree from Ball State University, first worked for the company as an assembler in the warehouse. In his spare time, he keeps busy maintaining a 1979 Mini Cooper, which he completely rebuilt. He and his wife have one adult daughter.

In his nearly four decades working at Muncie Power Products, Dave Douglass, director of training and education, has seen training evolve from sessions in a darkened room with an overhead projector to interactive digital modules accessible online from any part of the world.

Despite the upgraded method of delivery, the message has remained the same – education is crucial for both the company’s employees and its customers.

“If we can improve the knowledge level of people in the industry, we improve ourselves and we improve the industry in general,” Douglass said.

New employees receive thorough training to help them understand the specifics of the field.

“Most of our customer service managers and several of our zone sales managers have come to us with no background in the mobile hydraulic industry. We want to get those people up to speed so

“Despite the upgraded method of delivery, the message has remained the same – education is crucial for both the company’s employees and its customers.”

- Dave Douglass

they can help customers. We offer extensive in-house training for new engineers, customer service managers and zone sales managers,” Douglass said.

He personally conducts four, weeklong product and application schools within the company. In addition, he leads a number of outside classes, often tailored to a customer’s specific needs.

Educating distributors and customers is one of Douglass’ key goals.

“Our product line is pretty technical in nature. A lot of our distributors have experience in truck parts but don’t have much experience in hydraulics and power take-offs. For our distributors to be successful in selling our products, they need some technical education on what the products are, how they work and how to select the proper components for whatever vehicle they are working on,” he said.

The company views the training as an investment.

“We have always provided training to customers and we’ve never charged for that training. We’ve always felt the training pays us by having a well-educated network of distributors who are successful in selling our products,” Douglass said.

Technology has made it easier to spread the training to a wider audience. Muncie’s online training program, M-Power Tech, is accessible through the company

As the hydraulics industry can be very complex, especially for those new to the industry, Muncie Power Products has found that to be successful in helping customers best meet their application needs, a technical education course is key for employees and consumers alike.

website. Launched in 2011, the course features 14 lessons, which each take roughly 30 to 45 minutes.

as customers in the United States who maybe don’t speak English as a first language,” Douglass said.

“At the end of each training module, there is a 10-question quiz. Anyone who finishes all the modules and gets an 80 percent score or higher on each quiz receives a certificate of completion,” he said. “To date, we have had almost 500 people complete our online course.”

Keeping up with the demand for product training is a constant job for Douglass as the company creates new products and technology changes.

M-Power Tech will soon be available in Spanish, which will help educate a growing market for the company.

“We have a lot of export customers in Central and South America as well

“As we introduce new products or product changes, those things have to be incorporated into the training,“ he said.

“The online access makes it possible to get more people educated quickly and at a pace they can set themselves.” n

COVER STORY

MEETING THE CHALLENGE WITH THE MESP 300 SERIES

TERRY CRAGO Technology Solutions Group Manager

Terry Crago is a veteran employee with 36 years of service at Muncie Power Products. He holds an associate degree in engineering from Purdue University. Eight years ago Terry entered into his current position, leading the Technology Solutions Group.

At the end of this year, he will be retiring from the company.

Terry will be greatly missed.

Each winter season, municipalities, counties, private contractors and state departments are plagued with the same challenge: keeping roadways safe, while conserving salt and staying within budget.

Muncie Power Products has found the solution with its line of electronic spreader packages, the MESP 300 Series.

“Salt is extremely expensive, which makes it difficult to keep budgets constrained while also taking care of roadways,” said Kevin Woehler, assistant group manager, TSG. “It’s a constant struggle, and so what we try to do is create cost effective solutions to conserve salt.”

Muncie Power’s Technology Solutions Group (TSG) saw the the need for a product to meet this challenge and set to work finding a solution.

KEVIN WOEHLER Assistant Group Manager, TSG

Kevin Woehler has been an employee at Muncie Power Products for six years. Before entering his current role, Kevin held positions in engineering and business development.

In addition to a bachelor’s degree in mechanical engineering technology from Purdue University, Kevin is currently pursuing his MBA at Ball State University.

Their thought process: create a product to meet this need that was cost effective, simple to install and easy to set up.

Out of this process the MESP 300 Series was born, comprised of an electric controller, wiring harness, weather resistant enclosure and cartridge valve manifold.

“What the MESP 300 does is it measures the ground speed of the truck and adjusts the output of the salt spreader to put down consistent material density in pounds per mile,” said Terry Crago, technology solutions group manager.

The MESP 300 Series ensures that salt is being distributed proportionately unlike with many manual spreader valves.

As Crago explained, “With electronic systems like the MESP 300 it’s consistent, which is near impossible to do with a manual because the driver can’t constantly be making adjustments. The driver has no reference besides what he is seeing in the mirror and what looks good to him.”

Roughly 40 percent of trucks still use manual spreader valves, which means salt continues to be distributed ill proportionately and wasted due to the lack of automation.

With electronic systems like the MESP 300 Series wasted salt at intersections is no longer a concern, as the system automatically shuts off when coming to a stop and spreads proportionately to the truck’s ground speed.

“Becoming more efficient saves millions of dollars,” Woehler said.

“With the MESP 300 we utilized the technology effectively for cost optimization, finding the balance between cost and functionality.”

While the MESP 300 Series achieves this balance and serves as a solution, the system also offers many other key benefits including: simplicity of operation, driver safety and versatility.

As Crago and Woehler pointed out, more salt does not equal more melting. Once the optimum operation rate is reached, the excess salt isn’t doing anything.

The MESP 300 Series has been designed for easy operation and installation. Unlike some of the expensive models with complex operations and extra settings, the MESP 300 is a basic, yet efficient and effective system.

Contrary to other spreader systems the MESP 300 has been designed to fit just about any kind of truck in operation, is easy to retrofit and furthers driver safety with its remote unit, according to Crago and Woehler.

“The MESP 300’s remote unit promotes safety, as it prevents oil spills within the cab, eliminating harm posed to the operator by high pressure fluids,” said Woehler.

Muncie Power’s Technology Solutions Group continues to create cost effective solutions like the MESP 300 Series to meet the challenges posed to snow and ice applications.

“It’s always very fulfilling to see a product go from paper concept to actual hardware and see it prove itself,” said Crago.

“We probably have 1,000 MESP 300s in the field I would imagine by now,” added Woehler. “It’s neat to see a truck drive by with our product during the winter and know that our team and I contributed.” n

Typical Salt Application Rates

per lane mile 250-500 lbs.

2-4

miles $70-100 With waste and overspreading the cost can become significant very quick.

GET TO KNOW US

FINDING THE RIGHT PEOPLE As Muncie Power Products continues to grow, Sheila Spisak, director of people development, is ensuring that the company’s workforce has the skills and temperament needed to bring the corporation to the next level.

SHEILA SPISAK Director of People Development

Sheila Spisak, who has a bachelor’s and a master’s degree from Ball State University, joined the company in 2009. A certified senior professional in human resources, she has worked for several organizations, including Ball Corporation, Ball State University and Xavier University.

She and her husband, Rich, have three adult children and four grandchildren. Sheila serves on the board of directors of United Way and two professional human resource groups.

“We look for people who match the company’s values and core competencies. In addition to having a specific skill set, they must have certain personal and professional characteristics including: integrity, pride in their work and the willingness to operate to the very highest standards of quality and excellence,” Spisak said.

Leadership qualities are crucial for Spisak.

“We’re not just looking for people who can lead others. We need people who are self-managed and can lead themselves. They need to have drive and initiative,” she said.

Each new hire also must be a good fit with the current mix of people in the company.

“We know that for our company to continue our legacy of providing quality products in our industry we must hire future employees

who know what our current employees know — the importance of strategic planning, goal setting and working collaboratively.

They have to be able to work with their colleagues but also within teams to service customers and suppliers. Finding qualified job candidates to work with and learn from the company’s long tenured and extremely knowledgeable employees is one of our greatest challenges,” Spisak said.

Couple that with each new employee needing to go through a long learning curve about the company’s products and applications, and it lengthens the hiring and training cycle.

“We have a series of validated questions that we ask during the interview and the phone screening process. There’s a predictive index that we just started using. We interview to our core competencies and ask questions about values and quality and commitment to excellence,” she said.

The candidates’ responses are reviewed and evaluated by a hiring team.

“Finding qualified job candidates to work with and learn from the company’s long tenured and extremely knowledgeable employees is one of our greatest challenges.”

- Sheila Spisak

GET TO KNOW US

“They have to match the technical expertise, but they also have to be a good match for the company. It is hard to find the right talent, as we have a very high standard,” Spisak said.

She credits the company’s employees, many who have been with Muncie Power for decades, with raising the bar of what is expected.

“We know that in order to continue to be successful, we have to be able to replicate the qualities of our current workforce. That is what we always strive to do,” she said.

According to Spisak, the company’s management has been very conscious of its hires and promotions from within as it has grown.

“We’ve been very deliberate about working on succession planning and identifying and developing employees we feel could advance. We look at where we may have openings in the future and prepare our talent to be ready when the advancement opportunity is presented. The same attributes that make a person succeed in one area can bring them success in another with the right kind of technical education, professional coaching and training,” she said.

Investing in current employees through education, training and development is a major part of the strategic plan. In 2014, the company advanced or promoted about 25 percent of its workforce to positions of greater responsibility and technical expertise.

“We offer our employees internal training on leadership, supervision, problem solving and technologies that are new. We also encourage our employees to stay current by attending workshops, professional conferences and trade shows,” Spisak said.

Although Muncie Power is known for its quality products, Spisak finds its knowledgeable and talented staff is equally important in the mind of its loyal customers.

“We know that our people are our greatest differentiator. It all starts and ends with people,” she said. “You can have great products and great services, but it is our people who make the products and our people who deliver the services — they have to be excellent as well, and at Muncie Power, they are.” n

Our Greatest Differentiator – Our People

Our Greatest Differentiator – Our People VALUES

INTEGRITY

PROFESSIONAL

INNOVATIVE

KNOWLEDGEABLE

OUR EMPLOYEES

RESPONSIVE

ACCOUNTABLE

LEADERSHIP

MANAGER Q&A

MOVING FORWARD AS A TEAM

GREGG HENRICKS District Sales Director for Distribution

Gregg Henricks, a veteran of the heavy truck industry, came to Muncie Power Products three and a half years ago.

Henricks is based in Fort Wayne, Indiana, where he and his wife, Jennifer, reside with their two, teenage daughters.

In his free time, he enjoys golfing and spending time with his family. He takes pride in having one of the best lawns in his neighborhood.

Q. Why were you drawn to work at Muncie Power Products?

A. I was impressed with the leadership of the company, that was one big plus when I interviewed. I’ve been in the heavy truck industry for 20 years, and I know that the company has a great reputation and great products.

Q. What does the district sales director for distribution job entail?

A. I live in Fort Wayne, but split my time between Muncie, travel and Fort Wayne. I have 12 zone sales managers nationwide and we are working to build a cohesive team as we go through some changes and continue to grow.

My job is to help the transition go smoothly and to help drive new sales through the distribution channel.

Q. What is the secret to growing a sales territory?

A. Some people will tell you that it is all about price, but I don’t believe that. Relationships matter. At Muncie Power, we are very focused on relationships, both internally and externally. Those relationships and our value proposition are a big part of our success.

“I believe the key is to have the right people, products and services in place.”

- Gregg Henricks

The distribution pie is $12 billion a year, but it’s constantly being segmented.

How that is divided up is changing, and that’s going to be the biggest challenge for us — getting the distribution right. We’re always going to have other companies that start getting into our sandbox.

Q. Describe your leadership style?

A. I would describe my leadership style as democratic. I believe that input from the field is critical as we move forward and it helps considerably that I have experience being out in the field.

In my past, I had a 14-state territory that generated $33 million in revenue.

I can relate to what it is like to work a territory.

Q. What markets do you see as growth areas for the company?

A. We need to redirect our efforts on the distribution side so we can realize new opportunities in the market.

We are beginning to focus on the fleets, the dealers, the distributors and the municipalities.

We should be calling on the top 10 counties and cities in each state and the top 20 largest electric utilities and find out what equipment they are buying.

Our goal is to make sure when they buy equipment they buy from Muncie Power Products. This is just the tip of the iceberg.

MANAGER Q&A

Q. What will be central to the company’s success as it moves forward?

A. We have a lot of new products in the pipeline that will add to our offerings. I think there are a number of great opportunities ahead.

Where there’s a bright future for the company, there’s a bright future for the people who work here.

Q. What will the industry look like in 2025?

A. We’re not really sure. We are making changes to really drive sales in the direction we need to. I believe the key is to have the right people, products and services in place. n

DID YOU MISS A PAST ISSUE? TAKE CONTROL WITH THE V250 FLUID POWER SPECIALIST BRAD SMITH DISCUSSES THE NEW V250

2015 Issue 2 Featuring: Take Control With the V250

ALSO INSIDE: CEO’S CORNER: KEY INGREDIENTS TO OUR SUCCESS

MANAGER Q&A:

SETTING A CULTURE FOR GROWTH

GET TO KNOW US: FORGING A FUTURE

BEST PRACTICE:

HYDRAULIC RESERVOIRS CUSTOMIZED FOR YOU

2015 Issue 1 Featuring: EX Drive Means Longer Life

2015 - ISSUE TWO

2014 Issue 4 Featuring: What Can Lean Do For You?

2014 Issue 3 Featuring: Revolutionizing Hydraulic Controls

These and other issues are available at www.munciepower.com/mpq

Member of the Interpump Group Š Muncie Power Products 2015 Issue 3