LEADING SAFETY (Leading Change)

Presented By:Craig Damos, CEO & President

THE WEITZ COMPANYDes Moines, Iowa

Elevating Safety Performance Shared Learning Beyond Safety Programs, Tools and ChecklistsChange Our Thinking; Change Our CultureLeaders Need to Lead

General Contractor153 Years Old16 Locations Florida to Guam3,200 Employees Hourly & Salary2008 (est.) Volume $1.6 billion Employee Owned 365 ShareholdersOverview of The Weitz Company

In March 2005, The Weitz Company Won the Following Safety Awards:National AGC Safety Award (>1 million hrs.); and National AGC Grand Award all GCs Safety Pride & Performance

Safety Performance - Stats2008 calculations are current through August 31, 2008.

YearHoursTRIRLTIRDART$ / HR20042,985,8054.81.53.5$0.3120053,741,5324.80.63.1$0.2820064,291,5533.60.52.2$0.1020074,841,3633.30.31.8$0.1820085,653,2053.30.41.8$0.15

2008 calculations are current through August 31,2008.

DATA

Manhours# of Lost Time Cases# of Restricted Duty Cases# of Medical Only CasesTRIRLTIRDART RateTotal # of Recordable Incidents

20085,653,2051141403.30.41.892

20074,841,363736373.30.31.880

20064,291,5531137293.60.52.277

20053,741,5321247314.80.63.290

20042,985,8052230204.81.53.572

20032,678,6431229426.20.93.183

20022,625,9281029194.40.83.058

Weitz EMRIndustry Average

20080.511.00

20070.641.00

20060.691.00

20050.581.00

20040.581.00

20030.591.00

20020.551.00

LTIR - DART Rate

0.38915977751.8396644028

0.28917476341.7763592608

0.51263493662.2369524505

0.64144847623.1537883412

1.47363943733.4831477608

0.89597605953.0612515367

0.76163550562.9703784719

LTIR

DART Rate

THE WEITZ COMPANY LTIR/DART Rate

EMR History

0.511

0.641

0.691

0.581

0.581

0.591

0.551

Weitz EMR

Industry Average

THE WEITZ COMPANY EMR History

Stat History

YearHours WorkedTRIRLTIRDART Rate# of Recordable Incidents

20085,653,2053.30.41.892

20074,841,3633.30.31.880

20064,291,5533.60.52.277

20053,741,5324.80.63.290

20042,985,8054.81.53.572

20032,678,6436.20.93.183

20022,625,9284.40.83.058

Sheet3

2008 calculations are current through August 31,2008.

DATA

Manhours# of Lost Time Cases# of Restricted Duty Cases# of Medical Only CasesTRIRLTIRDART RateTotal # of Recordable Incidents

20085,653,2051141403.250.391.8492

20074,841,363736373.300.291.7880

20064,291,5531137293.590.512.2477

20053,741,5321247314.810.643.1590

20042,985,8052230204.821.473.4872

20032,678,6431229426.200.903.0683

20022,625,9281029194.420.762.9758

Weitz EMRIndustry Average

20080.511.00

20070.641.00

20060.691.00

20050.581.00

20040.581.00

20030.591.00

20020.551.00

LTIR - DART Rate

0.38915977751.8396644028

0.28917476341.7763592608

0.51263493662.2369524505

0.64144847623.1537883412

1.47363943733.4831477608

0.89597605953.0612515367

0.76163550562.9703784719

LTIR

DART Rate

THE WEITZ COMPANY LTIR/DART Rate

EMR History

0.511

0.641

0.691

0.581

0.581

0.591

0.551

Weitz EMR

Industry Average

THE WEITZ COMPANY EMR History

Stat History

YearHours WorkedTRIRLTIRDART Rate# of Recordable Incidents

20085,653,2053.250.391.8492

20074,841,3633.300.291.7880

20064,291,5533.590.512.2477

20053,741,5324.810.643.1590

20042,985,8054.821.473.4872

20032,678,6436.200.903.0683

20022,625,9284.420.762.9758

Sheet3

Weitz Jobsite-Related Fatalities:12/04 electrical sub - electrocution06/05 employee - trench collapse09/05 plumbing sub - head injury02/06 electrical sub - electrocution08/06 flooring sub - electrocution11/06 electrical sub - electrocution08/07 steel erection sub - fallIrony Beyond Awards and Statistics

RolesVisionaryStrategic ThinkerChange AgentCheerleaderResponsibilitiesBuild Our PeopleBuild The BusinessThe Weitz Company CEO Roles and Responsibilities

RolesSafety VisionaryStrategic ThinkerSafety Change AgentSafety CheerleaderResponsibilitiesSafety LeaderCoalition Builder Leaders from all levels of the Company engage field and management

CEO Safety Roles and Responsibilities

June 2006 September 2007Walked 80+ jobsites.Key questions: Do we have the programs and tools to keep people on our jobsites safe?How can we improve our safety performance?Getting a Pulse on the Organization

What I Heard, Observed and Learned:We are good at safety not great.Subcontractor performance is a key issue.We need to elevate safety awareness.Collaboration with and buy-in by the field is critical.Getting a Pulse (cont.)

ParadigmsSafety Less Important than Profit and ScheduleLow-Bid Sub Is Low-Cost SubSubcontractor Safety Performanceno control; not our employee Accountability Is a StickSafetys an Additional Cost

DilemmaUnanimous - All the Tools and Programs;Safety Statistics Are Sound;We Were Good, but not Great; andSerious Incidents Still Occurring on Our Jobsites.Now What????

Weitz Senior Leadership Time to Step Up! Recognize the Need to Change.Break the Paradigms.Focus on Culture.Elevating Safety Performance

September 2006 All Hands Huddle 80 Members of Our Senior ManagementProgram Content and Goal:Create a commitment to changeWeitz Senior Management Safety Boot Camps

Why the Need to Change?Reviewed each jobsite death in detailReviewed the human impact and aspectsUnanimous Agreement that a Strong Case Was Established to Change.Change Management Business Case for Change

Safety VisionSerious incidents and deaths are eliminated from our jobsites.Comfortable with a family member working on any Weitz project.Change Management Safety Vision

Change Management Safety StrategiesElevate Project Site High Hazard AwarenessBeyond hard hats and safety glassesElevate pre-construction safety planning.Get subs involved early!!Elevate daily/weekly construction site planning.

Enhance Project Site SupervisionProject site is our responsibility.Supervisory staff are properly trained.Project engineers get out of the trailer.Safety becomes everyones responsibility.Change Management Safety Strategies

Begin to Humanize Safety Play to Our StrengthsWe careTWC familyThe need to keep each other safeChange Management Safety Strategies

*Change Management Safety Strategies

*Change Management Safety Strategies

Elevate Subcontractor Safety PerformanceBetter subcontractor selection Set safety expectations up frontLean Construction Continuous ImprovementLast Planner eliminate schedule chaos!

Change Management Safety Strategies

Subcontractor Buy-In/InvolvementCEO and Corporate Safety Director meeting with subsEmbrace subs expertise; make sub part of the solution.Become egoless.Electrical we have much to learn! Get subs involved early.Lead by example.Change Management Safety Strategies

Change Management Process AccountabilitySr. Leadership Safety CommitteeKey decisions:Serious safety violations (3)Project site supervisionSub safety prequalification processSafe driving guidelinesCell phone/text messaging while drivingPost-offer pre-employment screensAll self-perform work (union and non-union)

Near Miss, Recordable, Lost Time Reviews How it happened CEO Follow-Up Lost Time Incidents

Change Management Process Accountability

Business Unit Safety CommitteeOpportunity leverage field leadershipProvide solutions/lead changeDetermines disciplinary action

Change Management Process Accountability

Safety RecognitionBUs > 1 million hrs. w/o lost time (4 of 10)Safety Recognition AwardRole Profile safety performance/ evaluationChange Management Process Accountability

Weitz Leadership Development ProgramGoal:Build Quality Leaders; Build the BenchLogistics Focus To Expand:Leadership capabilitiesChange management Financial and risk acumenPost-Program Development Ongoing

Enough?

If we stopped here would it be enough to get us to our Vision?

Tactical not enough to imbed into the culture.

Goal: Create a culture of excellenceA Standard of High PerformanceStrategic initiatives Supported by processes, systems and talented buildersDedicated resources committed to Quality and Excellence Overlap with Safety a Leap?Quality Another Arrow in the Quiver

Commonality Quality and SafetyA quality project is typically a safe project!!Similar Attributes (Quality and Safety)VisionCommitment (to high performance)Sound leadershipTeam playEffective communication Sound planning (throughout the project) Engaged employees (right attitude)Properly trained staffSupporting process and systems

A culture that creates a high performance standard for quality . . .

Will have a direct and significant positive impact on safety!!Connect the Dots Quality and Safety

Weitz CommitmentPlacing Our Bet To eliminate serious incidents and deaths (long-term):Quality LeadershipLeading ChangeUltimately Imbedding a Culture of Excellence

Vision The End GameElimination of Serious Incidents and DeathsIt will be an arduous journey . . . . The Weitz Company will get there.We will do whatever it takes!