President’sCorner

By Robert Shively

Leading the Field – SM&P’s Leadership Development Program Gaining Speed

Success in our businessdepends on the work of indi-viduals who operate inde-pendently in the field. EachTechnician must be directlyaccountable for the qualityand accuracy of his or herwork, and that’s why ourbusiness model of trust,empowerment and accounta-bility is so critical to achiev-ing safety and quality (protec-tion of the infrastructure andthe community in which itresides) on every job. Ournew leadership developmentprogram is organized aroundthis reality, seeking to giveSupervisors and Managers theskills to enable and supportevery employee to perform tothe highest standards, ticketafter ticket, day after day.

We can do this best bymanaging by objective ratherthan by task, whatever jobwe’re doing. Hall-of-FameUCLA basketball coach JohnWooden explained this con-cept clearly when he told hisplayers, “Never confuse activ-ity for accomplishment.” Foran SM&P Technician thattranslates to: “Never leave ajob site having merely com-pleted the tasks, but rather,confirm that you have metthe objectives.”

“Management by objec-tive” (or MBO) is a process ofagreeing upon objectiveswithin an organization so thatmanagement and employeesunderstand what the objec-tives are and buy in to

In 2005, SM&P Supervisors wereasked to define leadership. The over-whelming response to this questionwas: getting a group of people to alterwhat would otherwise be the naturalstate of things. On March 1st, SM&Pdeployed its company-wide LeadershipDevelopment Program specificallyaimed at helping Supervisors do exact-ly that – alter the natural state ofthings, thereby taking their teams tothe highest levels of achievement.

All Supervisors have now receivedtraining in Leadership Essentials. Thiscore-competency course was deployedto Supervisors in March and April.The Leadership Essentials course intro-duced basic leadership skills such asmeeting both personal and practicalneeds during on-the-job interactions.The course also introduced founda-tional tools to be used in future leader-ship development courses.

Pam Crissman, Manager ofLeadership Development, helped facili-tate most of the Leadership Essentialsclasses. “The Supervisors broughtenergy and enthusiasm to the class-room with them,” said Crissman.“Sharing ideas among the grouphelped me pin-point some of SM&P’sbest practices in leadership.”

Each class had Supervisors at vary-ing levels of experience. NewSupervisors were concerned about thechallenges of leading a new workgroup. Experienced Supervisors com-mented on how leadership challengeshave changed over time. Whether itwas new or familiar information, mostSupervisors found the LeadershipEssentials class to be a necessaryreminder of the importance of usingleadership skills in the Field.

Throughout the year, Crissmanand her course facilitators will bedeploying additional leadership coursesto Supervisors – courses such asConflict Resolution and RapidDecision Making.

SPRING 2006

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Rob Shively kicks off the Leadership Essentials Class in Indiana

Supervisors David Fulkerson and Victor Winger taking the LeadershipEssentials Class in Houston

IN Supervisors share Dan Baker’s Altoids during their LeadershipEssentials class

In early March 2006, SM&P launched a dedi-cated business-to-business locating service for pri-vate facility owners such as medical centers, educa-tion campuses, airports, office complexes and retailcenters. The program was kicked off in theMilwaukee and Indianapolis markets, with plans toexpand to Dallas and St. Louis, and eventuallynation-wide.

This service is based on a dedicated team con-cept with experienced Technicians working withlocal contractors, excavators and facility managersas partners in protection. We are offering cus-tomer-defined service to customers with privately-owned underground facilities. We help them con-trol costs and maintain efficiency by schedulingtheir locate requirements in advance. On-goingrelationships with customers will enable SM&P’sprivate locate teams to become familiar with theirburied facilities. It is this relationship building thatwill ensure the fastest and most accurate service.

Technician Ryan Miller is handling privatelocate responsibilities in the Milwaukee area, andJohn Link is the Milwaukee private locate busi-ness manager. John Wagner is the first PrivateLocate Technician for Indianapolis, supported byRob Syck.

These teams are already building business intheir respective areas. Early marketing efforts haveincluded visits with prospective customers and con-tacts with Indiana and Wisconsin One-Call Centersto spread the word about the clear advantages of

partneringwith SM&Pfor facility pro-tection.

Unlikesmaller com-petitors,SM&P canoffer privateowners the lat-est in locatingtechnology,vast industry experience, and liability protection asit pertains to facility restoration costs. Theseresources will offer real peace of mind for local con-tractors, excavators and private facility owners.

Private Locate Services UpdateBY RYAN HYMAN, VICE PRESIDENT OF EMERGING ENTERPRISE DEVELOPMENT

accomplishing them. Inpractical terms for SM&P,MBO is a disciplinedapproach to work thatinvolves self analysis andcourse correction. At eachjob site the question is notmerely, “Have I runthrough the 10 basics?”Rather, one should ask,“Have I met my objec-tives? Am I operating safe-ly? Have I achieved anaccurate locate that pro-tects the facilities and covers the entire scope ofthe ticket? Will others beable to dig safely and willthe community be safe,based on my work? And,have I left the facility conditions in better orderthan I found them?”Until we can answer eachof these objective ques-tions, we should not complete that ticket.Anything short of this isnot living up to our commitments.

With an objective-based orientation, theTechnician begins and finishes every task with areview of the objectives.That mind-set is aninvaluable asset in com-pleting our work effective-ly, and leaving a job-sitewith a sense of confidencethat work has been doneefficiently, safely andaccurately. Follow thatapproach, and you’ll neverconfuse activity withaccomplishment. AtSM&P, we strive to setnew standards for ourindustry. Managing ourwork to accomplish theobjective rather than justdoing the tasks will takeus to new heights, makingSM&P a more stablecompany. Thank you forall you do.

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John Wagner,Central IndianaPrivate LocateTechnician

Ryan Miller,Milwaukee areaPrivate LocateTechnician

The Laclede Group’s earnings for the 1st quar-ter of fiscal year 2006 (ended December 31, 2005)were $26.2 million, compared to $16.6 million forthe same period of fiscal year 2005. On an earn-ings-per-share basis, first quarter earnings for fiscal2006 were $1.23, compared with $.79 during thesame period last year.

Principal non-regulated subsidiaries – LacledeEnergy Resources and SM&P Utility Resources,Inc. – each generated increased period-to-periodearnings, contributing to the group’s first quartersuccess.

Laclede Energy Resources (LER), which offersnatural gas commodity services to industrial andcommercial customers throughout the Midwest,including the St. Louis area, reported earnings thatwere $4.0 million more than in the same period lastyear. SM&P earned $.3 million more during thisyear’s first quarter than in the first quarter of lastyear.

“On an earnings-per-share basis,

first quarter earnings for

fiscal 2006 were $1.23,

compared with $.79 during the

same period last year”

The Laclede Group’s 1st Quarter Results

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Time, dedication, focus and leader-ship. A combination of these importantelements can lead to big results – resultsthat Eastern Missouri has worked hard toachieve. Eastern Missouri has steadilyworked to transform itself into one ofSM&P's success stories and is demonstrat-ing significant improvement over previousyears.

I recently had the opportunity to talkto District Manager, Jeff Trampleasure, onthe ways he and his Teams lead the field:

GB: “Over time, you have seen steadyimprovement in Eastern Missouri. Yousaid this was achieved by staying focusedon the big picture. What is the big pictureto you and your teams?”

JT: “Operational Excellence. That’s it.We talk about the four legs of the SM&PPerformance Stool every day. To those of

us in EMO, each leg hasa specific meaning:

Safety: a frame ofmind that we must alllive by…awareness is thekey

Quality: greatQuality comes from pay-ing attention to thedetails every minute ofevery day

On-timePerformance: living themantra of “no goinghome with a ticket duetomorrow”

Productivity: it does not come fromtaking short cuts, but by having a sense ofurgency as you perform your job.

Our quality has improved from1/1,489 in 2005 to 1/ 3,373 for the last 6months. We have improved from 80%OTP to over 98% for the last 4 months ina row — proving that strong OTP is anachievable performance measure. Withboth Quality and OTP, while we’ve madesignificant strides, we have room to achievegreater success.”

GB: “How do you recognize outstand-ing performance?”

JT: “We try to highlight the positives.While I hold the EMO Supervisors andTechnicians to very high standards and

they understand that they are accountable,I also make every effort to recognize whenthings are going right. Our district investsin incentives such as hats and t-shirts.These incentives serve as very small “thankyous” to our hard working teammates, butthey keep the meet sites fun. More impor-tant than the incentive itself, however, Iknow everyone appreciates getting a pat onthe back.”

GB: “How do you keep morale and performance levels high during ourbusiest season when the work can be overwhelming?”

JT: “Our entire district staff workshard to support our people. When theticket load gets overwhelming, we make a

Changing the Natural Course of Things in Eastern MissouriBY GAYA BOYERS

EMO's leadership team (back row: L-R: Jeff Trampleasure, Chris Smith, Dave Balch, Michael Stivers,Dan Walter, Alan Lee), (front row: L-R: Ken Spencer, Jason Stapleton, Jody Stapleton, Dave Ross,John Foster, Karl Bodine)

Please Turn to Page 4, Col 1EMO’s 2005 Summer Picnic was a family event

The hula hoop contest at EMO’s Summer Picnic got everyone involved

SM&P – Promoting our People

Another locating company could pur-chase gleaming white Ford Rangers andlocating equipment just like ours. Theycould adopt our 10 Basics and copy thefour legs of our Performance Stool. Itwould not matter. No other locating com-pany could ever compete with SM&P forone simple reason – our people. Our peo-ple set us apart from every other locatingcompany and it’s our people that make usthe best in the business.

SM&P recognizes the value in findingand developing talent from within. By giv-ing our talented employees the opportunityto broaden their professional experience,take on new responsibilities and rise to newchallenges, SM&P adds tremendous valueto the company’s bottom-line.

In the last year, SM&P has promoted89 employees. In the last quarter alone(January 2006 – March 2006), the follow-ing individuals were promoted for theirvaluable contributions to SM&P:

Karl Bodine – Supervisor, St. LouisAaron Campbell – Human ResourceSpecialistBryce Folsom – Supervisor, RockfordRoland Garcia – Supervisor, San AntonioRobert Henderson – Claims Coordinator,Detroit

Joey Hopper – Human Resource ManagerJohn Link – Manager, EmergingEnterprise DevelopmentJoseph Lorg – District Manager, TulsaRonald Malone – Claims Coordinator,Dallas/Ft. WorthKathryn McPeters – Supervisor, GrandRapidsRyan Miller – Private Locate Technician,MilwaukeeJeremy Rempert – Supervisor, RockfordMichael Rohlicek – Supervisor, ChicagoPhillip Sheridan – Supervisor, Dallas/ Ft.WorthGregory Strojny – Supervisor, MilwaukeeRob Syck – Manager of ProductDevelopmentWendy Vinard – Manager of CorporateHuman Resources & Legal AffairsJohn Wagner – Private Locate Technician,Central IndianaScott Woerner – District Manager,Houston

Congratulations and thank you to allof our talented employees. SM&P’s con-tinued success depends on you. Look fornews of quarterly promotions in upcomingissues of Lead the Field.

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The International Utility LocateRodeo is an annual event that recognizesprofessional underground utility facilitylocating. Technicians from across thecountry compete against one another infour Competitive Divisions:Telecommunications, Gas, Water, andPower. Locates are judged, timed, andmade at pre-determined locations. Thisyear’s competition will once again be heldin Atlanta, Georgia on Saturday, August5th.

SM&P sent seven of our bestTechnicians to compete in last year’sRodeo. They joined over 100 competitorsfrom across the country to compete forprizes and recognition. Our Technicians’performance, professional conduct andaccomplishments showcased SM&P as thebest in the business and home to the mosttalented individuals in the industry.

This year’s Locate Rodeo competitorselection process will be based on the fourlegs of the SM&P Performance Stool andguided by the following specific selectioncriteria:

• No vehicle accidents for a 12 monthperiod

• No personal accidents for a 12month period

• HP damage-free for a 12 month peri-od

• Highest Quality Ratio as averaged ina 12 month period

• OTP average greater than 96% over a12 month period

• Highest Productivity as averaged overa 12 month period

The selection process will begin inJune and will consider performance dataspanning from June 2005 to June 2006.

2006 International Utility Locate Rodeo

special effort to ensure Field personnelhave the necessary equipment – properlyworking laptops and locating devices,trucks in good condition, etc. Moreimportantly, we try to make sure there isenough manpower to support the work-load.

GB: “How do you encourage com-munication?”

JT: “We focus on the importanceof communication. One way to do thisis by example. I ask all EMOSupervisors to create a detailed agendafor their bi-weekly meet sites. They basetheir agendas on the agenda I create forour bi-weekly leadership meetings (whenI meet with the EMO ManagementTeam).”

GB: “What do some of the EMOSupervisors do that make them and theirteams so successful?”

JT: “Chris Smith, Supervisor ofSTL NW, has maintained an averagescorecard ranking of #5.5 in the compa-ny over the last four months. JodyStapleton, Supervisor of EMO Illinois,received the highest rating on his 360Degree Evaluation from his Technicians.After reviewing his evaluation, it becameobvious to me how loyal his Techniciansare to him and for good reason – hebacks his folks up 100%. Both JohnFoster of EMO SE and Michael Stiversof EMO Mid-State, along with theirTeams, have actively worked to cultivatestrong relationships with customer con-tacts, emphasizing the importance ofkeeping the customers we already have.”

GB: “Tell me about dedication andhow you see that important elementwithin your district.”

JT: “I have mentioned the impor-tance of incentives and reinforcing thepositives, but at the end of the day thesuccess of EMO rests on ourTechnician’s shoulders. I’ve never seen amore determined and dedicated groupof people. They pay attention to thedetails and are determined, now morethan ever, to come together as a districtand continue their focus on OperationalExcellence. I’m very impressed withwhat EMO has been able to achieve butwe have room for improvement. Successis not defined by a few good months,but by sustained great results.”

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Employee Profile

Charmaine Jones is a Claims Clerk inSM&P’s Western Michigan (WMI) districtoffice. She started with the company as atemp in mid-2005, was soon hired full-time, and has already distinguished herselfas an outstanding employee with an excel-lent record of customer service.Charmaine is responsible for responding tocustomer damage reports, coordinatingresponse to damage inquiries with localSupervisors and providing follow-up docu-mentation to the customer. She also man-ages pre-dig photo records and maintainsTechnician audit records for Supervisors inthe district.

“There are a number of interestingaspects to my job,” Charmaine explains.

“I really love my work and keeping upwith the challenges that come along.

Doing my best every day is a matter ofpersonal pride.”

According to Charmaine’s supervisor,Rob Henderson, her job performance was

recognized recently by the WesternMichigan management team with a speciallunch and a gift certificate. “We havereceived numerous positive commentsabout Charmaine from customers such asSBC, MichCon and Consumers Energy, aswell as her associates within the company,”Henderson said. “These compliments comeas a direct result of her positive attitude,can-do spirit and pleasant demeanor.”

Charmaine Jones, Claims Clerk for SM&P’s(WMI) district

There is no doubt that SM&P’s Michigan Teamswork tirelessly each and every day to meet our compa-ny’s critical success factors. Led by a talented andeffective management team, our Supervisors andTechnicians have made significant progress in tenuremanagement, operational excellence, getting new cus-tomers and keeping our current customers.

Our Michigan teams responded effectively to thechallenges of a substantial expansion in business. Inrecent months we added major new accounts includ-ing SBC, DTE and MichCon. We increased our staffto meet this new workload. Although 60% of ourMichigan employees have been with the company fora year or less, we work hard to help them achieve alevel of comfort that will ensure their career successand our customers’ satisfaction.

Thanks to the leadership of our EasternMichigan District Manager, Pedro Guynn, ourWestern Michigan District Manager, Todd Hentges,our Human Resources Manager, Nancy Lantigua,and our Quality Manager, Blaine Walters, theMichigan Teams are strong performers.

The hard work and dedication of SM&PManagers and Supervisors across the state as well asthe additional HR support we received from PamCrissman has been the key to our seamless ramp-upin business in Michigan. I’d like to express personalappreciation and thanks to each member of theMichigan Region for their accomplishments during achallenging period. Congratulations on a job welldone!

Regional Spotlight – BY TIM COOPER, SENIOR DIRECTOR OF OPERATIONS, MICHIGAN

Jim Meyer leads a Michigan New Technician Training Class

Left to right: Martin Grandy, James Gotautis, Jeff Pergande, John Houtchins andAdam Miller in a recent Michigan New Technician Training Class

Beyond the Paint

So how long have you been using

the 4000?

- Anonymous

PRST STD

U.S. Postage

PA I DIndianapolis, IN

Permit NO. 9502

The quarterly Lead the Field

newsletter is published by

SM&P for its employees and

their families to communicate

important information about

our company and to highlight

our vision, values and direction.

Comments, suggestions and

contributions are welcomed.

Please direct them to

Editor Gaya Boyers,

SM&P Communications &

Marketing Manager.

Copyright 2006, SM&P Utility Resources, Inc.

Phone: 317-575-7866 Email: GayaBoyers@sm-p.com

SM&P Service AnniversariesA number of SM&P employees are celebrating significant career milestones in 2006*. Congratulations to each of you and best wishes for continued success and satisfaction in your work.

Celebrating 10 Years with SM&P:

David C. BalchMichael D. BennettBlake A. ChanyJohn A. DavisLonnie R. DavisBrandy A. FaucetteDarryl L. FisherBrent L. GilbertRichard A. GraingerPaul L. GreenCorey R. HancockJeffrey HancockKevin P. HoustonDavid Charles HydeFrank IglesiasCurt Wayne JonesKip R. KingsfieldChristopher A. KinneyDarren L. Knifong

Lynne Marie LaszcwskiMichael P. MarganGerald Lee MartinezSteven D. McHenryGuy P. McNittShane A. MitchellRichard Lynn Phillips

Danny A. PomeroyJason A. RiceHarold A. SharpRobert Glay SmithDavid Lee TidballKenneth W. TwehusDouglas Robert Williams

Celebrating 15 Years with SM&P:Name TitleJeffrey L. Gerber Supervisor – EvansvilleKenneth E. Spencer Jr. Supervisor – Eastern Missouri

Celebrating 20 Years with SM&P:Name TitleGerald L. Dejager Technician – Level 3, Milwaukee

*These SM&P employees are celebrating employment anniversaries from March 1, 2006 through May 31, 2006.

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