World Affairs Global Business Luncheon Jacksonville, Florida• Constant reinforcement of the values, beliefs and inherent tensions need to be reinforced continually through communication,

© 2014 W. L. Gore & Associates, Inc.

Culture as a Competitive Advantage

World Affairs Global Business LuncheonJacksonville, Florida

Terri Kelly

February 13, 2014


Nurture a vibrant Culture that engagesall Associates who deliver

innovative Products that create extraordinary value for all of our stakeholders

Founded on deeply held beliefs and guiding principles

Fosters an environment of trust, respect and teamwork

Encourages innovation and creativity

Instills ownership for personal and Enterprise success

CultureEmbrace the culture

Act with the utmost integrity

Help others

Work collaboratively in teams

Seek diverse perspectives

Are passionate about what they do

AssociatesDo what we say they will do

Build upon our deep knowledge

Leverage our core technology and distinctive capabilities

Enhance the quality of life

We are proud of

Products

Our Mission


Bill and Vieve Gore Where It All Began

More than 55 Years - Bringing Dreams to Reality


Founded in 1958

Privately held

~$3 billion in sales

~10,000 Associates

45+ plants and sales locations worldwide

Manufacturing locations in the U.S., Germany, Scotland, Japan and China

W. L. Gore & Associates, Inc.


Fortune magazine’s “100 Best Companies to Work For in the US• Gore is 1 of only 5 companies

on every list since 1984• Best Multinational Workplaces

ranked 5th (2013 list)

Included on numerous “Best” lists• France• Germany • Greater China• Italy • Korea• Sweden• United Kingdom

A Great Place to Work Globally


GORE-SHIELD® EMI Materials GORE® Protective VentsElixir® StringsGORE® Packaging VentsGORE® Portable Electronic VentsGORE® Automotive Vents

Enhancing Every Day at Home with Gore Products



WINDSTOPPER® Outerwear & Accessories GORE-TEX® Outerwear, Footwear, Gloves and AccessoriesGORE BIKE WEARTM ProductsGORE RUNNING WEARTM Products

Enhancing Every Day Outdoors with Gore Products


GORE® Disk Drive Filters GORE® Microwave/RF AssembliesGORE® Protective Fabrics GORE® SKYFLEX® Aircraft SealantGORE® Cable Based AntennaGore Energy Storage Products GORE® Cooling Filters

Enhancing Every Day at Work with Gore Products


Gore Stent-graft for Vascular DiseaseGORE® Septal Occluder Gore Medical Vascular ProductsGore Medical Products for Soft Tissue RepairGORE® SEAMGUARD® Bioabsorbable Staple

Line Reinforcement

Enhancing Health Every Day with Gore Products


TUBES

Peristaltic Tubes

Vascular Grafts

GORE-SORBERModules

Packings

FIBERSWeaving/SewingThreads

Glide®

Threads

FiltrationFelts

MedicalPatches

EMI Gaskets

SHEETSSealingGaskets

FILMS

Stent Grafts

Vents

Fuel CellMEAs

GORE-TEX®

Laminates

Battery/Capacitor Separators

FiltrationLaminates

DielectricMaterials

High Data Rate Cable Assemblies

TAPES

Microwave Cable Assemblies

Backplane Cable Assemblies

Flat Cable for Harsh

Environments

Core TechnologyePTFE

Fluoropolymers

Core Technology as a Common Link


We are a global Enterprise dedicated to applying

our unique materials capabilities and broad

expertise to solving complex challenges.

Who We Are


Industrial Products

Medical Products Electronic Products

Fabrics

An Enterprise Organized Around Four Divisions


• Emphasis on personal relationships• Organized around empowered teams• Highly networked, Lattice-based organization• Minimal bureaucracy• Environment that encourages innovation

and collaboration• Leadership defined

by followership

Our Unique Culture


External Influences

Customers

Economic Climate

Local Cultures

Globalization

Government

Suppliers

Technology

Competition

Labor Market

Environment

Practices

Profit Sharing

Ownershipthrough ASOP

Contribution/Compensation

Process

Cluster Concept

Three-legged Stool

Commitments, Not Titles

Culture Survey

Practices

Profit Sharing



Process

Cluster Concept

Three-legged Stool

Commitments, Not Titles

Culture Survey

Early Influences

Maslow s Hierarchyof Needs

McGregor s Theory X vs. Y

DuPont Task Force

Creating anEnterprise

Key Disciplines

IP Protection

Core TechnologyCommitment

Investments, Not Expenses

Product ConceptStatements

Sponsorship

Value Pricing

Knowledge-BasedDecision-making

Key Disciplines

IP Protection

Core TechnologyCommitment



Sponsorship

Value Pricing


Core Values

Innovationand Creativity

High Ethicsand Integrity

Direct One-to-OneCommunication

Lattice

Deep Knowledge

Natural Leadership

Personal RelationshipsBuilt on Trust

Fitness for Use

Compensation Basedon Contribution

Core Values



Direct One-to-OneCommunication

Lattice

Deep Knowledge

Natural Leadership


Fitness for Use


Guiding Principles

Freedom

Fairness

Commitment

Waterline

Guiding Principles

Freedom

Fairness

Commitment

Waterline

What We BelieveBelief in the individualPower of small teamsAll in the same boat

Long-term view


Long-term view

Practices

Profit Sharing



Process

Cluster Concept

Three-legged Stool

Commitments,Not Titles

Culture Survey

Key Disciplines

IP Protection

Core Technology

Commitment



Sponsorship

Value Pricing


Core Values



Direct One-to-One Communication

Lattice

Deep Knowledge

Natural Leadership


Fitness for Use


Guiding Principles

Freedom

Fairness

Commitment

Waterline


Long-term view

The objective of the Enterprise is to make money and have fun doing so

-Bill GoreThe Gore Culture


Interest andMotivation

BusinessNeed

Skills andExperience

Leads to a high level of engagement

Gore CultureSome Key Elements

• Belief in the individualTrusts in individuals to do the right thing

Encourages self direction

Associates participate in defining their own commitments

PassionateAssociate



• The power of small teamsDrives focus around opportunities

Sense of accountability for making a difference

Shared ownership for achieving results

Encourages collaboration

Faster, knowledge-based decisions

Leads to empowered teams



• All in the same boatDecisions made in the best interest of the Enterprise

Broad resources to tap into

All associates are stockholders

Shared success

Part of a greater whole


• Taking a long-term viewInvest for long-term business health

Balance the financial perspective with other success factors

Allow time for innovation

Weigh the welfare of both current and future generations



Four guiding principles that drive our actions• Freedom

Everyone will allow, help, andencourage each other to grow

• FairnessEveryone will try to be fair

• CommitmentEveryone will make his or her own commitments

• WaterlineEveryone will consult before taking actions that might harm the Enterprise

Puts decisions in the hands of associates

Waterline

Freedom


Fairness

Commitment


I like working at Gore.

I am paid fairly for the contribution I make to the Enterprise.

I like the way the Gore culture is practiced in my business.

I have enough freedom.

Communication among Associates I work with is good.

Annual Culture Survey


But, the Culture does have its Challenges!


• Our Leadership Philosophy Living the cultural beliefs and values is imperative

You aren t a leader unless you have followers

You don t lead through command and control but through influenceYou re measured on both what you deliver as well as howDecisions are driven through the most knowledgeable Associates

Critical Role of Leadership


Five Dimensions of Leadership


Leading in a Highly EmpoweredEnvironment Requires Leaders to

Invest significant time to build trust amongst individuals, teams and leadersBe open, authentic and approachableBe comfortable operating without assumed authority and controlTrust individuals to do the right thingEmpower other knowledgeable Associates to take the lead Seek input on important decisions Listen with the intent to learn and be willing to change your mindExplain the rationale behind your decisions and actions, and help others understand your point of viewBe self aware and seek feedback on your effectiveness as a leader


Lessons Learned in Creating an Empowered Organization

Establish a common set of beliefs, values and key disciplines shared by the entire organization

Freedom with Responsibility

Don t let discipline be viewed as a negative

Establish the boundaries and ensure all aspects; the practices, reward system, decision-making, etc, are working as a system and reinforce the values and beliefsResist the temptation to add unnecessary bureaucracy

Establish mechanisms to ensure that current and emerging leaders believe in and model the values

Check followership from peers early in career

Address those that don t share the values


Encourages collaboration and networking across the Enterprise.

Encourages appropriate risk-taking and learning from mistakes.

Creates an environment of trust with associates.

Encourages diversity of thought and perspective in decision-making.

Trusts and empowers teams and individuals to make decisions, as appropriate.

Invests sufficient time in making the culture work effectively.

I can fully support and has earned my followership.

Leadership Effectiveness Survey


• Constant vigilance is required to manage the inherent tensions/polarities that exist and help the entire organization appreciate the value/need of driving both

Innovation AND Effectiveness

Focus on Best Opportunities AND Explore the Frontier

Power of Small Teams AND Collective Strength of the Enterprise

• Expose and involve the broader organization in managing the tensionsThis will deepen their own understanding of the trade-offs and accelerate the development of leaders



Driving EnterpriseEffectiveness

Improves productivityCreates economies of scale

Can be inflexibleAdds bureaucracy

Fostering Innovation

Encourages creativityMaximizes freedom

Results in loss in efficiencyDuplication of efforts

++ ++

Managing the Polarity


• Organizational choices are importantOrganize around what you want to be best atAny organization you define will try to sustain and grow itself, whether it should or not

• Utilize the power of peer pressure through peer review, and both challenge and support

• Constant reinforcement of the values, beliefs and inherent tensions need to be reinforced continually through communication, workshops, leadership forums, etc.

Context setting is critically important for folks to understand the why behind actions and decisionsIt s important to connect the dots and explain the linkagesEvery new practice or initiative should be reviewed from the lens Is this aligned and reinforcing our cultural values and beliefs?

• Don t lose the plot by disconnecting the culture from what purpose it serves in enabling business success

Create the linkages for folks to understand the connections



You can foster an empowered environment

WithThe right people

A strong commitment to the beliefs, values and disciplines

A few clear objectives and guidelines

And leadership that models and rewards it

It s All About People


Thank you!

Documents

World Affairs Global Business Luncheon Jacksonville, Florida• Constant reinforcement of the values, beliefs and inherent tensions need to be reinforced continually through communication,