Leadership
Leadership Sustains an Organization
Bob Pence, CEO

Freese and Nichols, Inc.
• Multi-service engineering, architecture and environmental science firm
• 117-year history means experience, strength and stability
• 12 offices, all in Texas
• More than 450 experienced professionals, technical experts and support personnel

Freese and Nichols, Inc.
• Water resources engineering
• Environmental engineering
• Civil engineering
• Master planning
• Building design and renovation
• Construction services
• Program management

Freese and Nichols, Inc.
• Municipal
• Water District/River
Authority
• Higher Education
• Military/Government
• Energy

Our First Hundred Years:
Continuity of Leadership
Jim Hawley
1894
Marvin Nichols
1938
Jim Nichols
1976
Bob Nichols
1988
1st Consulting
Engineer in Texas
Developed
1 st Water Plan for
State of Texas
Took Firm from a Partnership to a Corporation
Broadened
Ownership to
More Employees
Bob Herchert
1991
Started Our
CI Journey in 1996

Leading the Way into the 21st Century
• Caring for Our Culture
• Maintaining the Highest Ethical Standards
• Focusing on Clients
• Engaging our Employees
• Managing Performance
• Leveraging Innovation
• Developing Future Leaders
• Looking Farther into the Future
• Staying on the Journey

Caring for Our Culture
Our Company Values Are Our Common Threads
Mission Statement
Innovative approaches
. . . practical results
. . . outstanding service
Vision Statement
Be the firm of choice for clients and employees

Caring for Our Culture
Our Guiding Principles
• We are ethical
• We deliver quality
• We are responsive
• We add value
• We improve continuously
• We are innovative
• We develop professionally
• We respect others
• We give back to our communities
Family
50
40
30
20
10
Innovation
Hierarchy
10
20
30
Market
40
50

Caring for Our Culture
Community Involvement
• 117 Hours of Service
• Board Leadership
• Office Projects
• Women’s Center
• Meals on Wheels
Freese and Nichols’ Corpus Christi office teamed together for the Relay for Life to support cancer survivor
Rachelle Parry.

Maintaining the Highest
Ethical Standards
The First Thing We Ever Built Was a Reputation
Recipient of the National 2008 American Business Ethics
Award, by the Foundation for Financial Service Professionals

Focusing on Clients
Hedgehog Concept
Be the very best at client service, resulting in long-term mutually beneficial relationships

Focusing on Clients
Long-term Client Relationships
Ft Worth
1894
Dallas
1910
Austin
1934
Abilene
1939
U.S. Army
1963
Client Retention
35%
30%
25%
20%
15%
10%
5%
0%
1894 - 1959 1960 - 1979 1980 - 1999 2000 - 2009
DFW Airport
1965
Lockheed Martin
1997
Texas A&M
1998

Engaging Our Employees
We’ve Always Enjoyed Our Work

Engaging Our Employees
• Strategic Plan Rollout
• Midyear Status
• CEO Roundtables
• Principal Group Lunches
• Continuous Improvement
Lunches

Engaging Our Employees
• Best Small &
Medium
Companies to
Work for in
America
• Top Ten, Best Civil
Engineering Firms to Work For
Nationwide

Managing Performance
• Management Accountability
• Financial Accountability
• Transparency
• Protection of Shareholder
Interests

Leveraging Innovation for Clients
Bridging the Gap: An Innovative Crossing for the Trinity River

Leveraging Innovation for Employees
Helping Employees Take Responsibility for their Work
Employee eResource – Work Load
Feb 11 Mar 11 Apr 11
Project Project Name
1151POTNT 1147 Potential Projects (pre-2011)
COR08271 O. N. Stevens Raw Wtr Influent Impr
COR10165 Mary Rhodes Phase 2
GBA10355 I-35/Texas Highway 130 Water Transm
SWB11121 Reg Carrizo Proj: Water Integr Pipe
TR110152 Pump Stations 13/13A Improvements C
TR110442 On-Site Storage System Construction
TRA07353 CPS - Pump Station 13/13B & Equaliz
TRA08184 TRA CRWS On Site Storage System (OS
TRA08301 CPS for Admin Bldg & Plant Disinfec
** Total Scheduled
4
1
4
3
3
121
0
4
40
0
180
4
4
8
6
3
64
8 8
4 10.4
3
40
0
0
8
8
0
12
113 79.4
0
2
Employee Portal - Utilization

Developing Future Leaders
Passage 2
Passage 3
Passage 1

Looking Farther into the Future
We Never Lose the 30,000-foot View
– Changes in clients’ business in 20 years?
– Changes in key competitive differentiators?
– Impact of industry consolidation ?

Staying on the Journey
Baldrige Feedback Report
Some 2011 CI Projects
– Futures Committee
– Knowledge Database
– Subcontractor
Management
– Technical Excellence
Program – Phase 2