Building a Culture of DisciplineCentral Penn Business Journal’s 15th Annual Top 50 Fastest Growing Companies | September 2011

Salvatore D. FazzolariChairman, President and CEO

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Harsco Core Ideology

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Safety Ethical in Thought, Word and Deed Disciplined Thought, Disciplined

Action and Disciplined People Transparency Personal Accountability and

Responsibility

Customers Targeted Market BHAG Envisioned Future

Value Creation Value Capture Value Selling Be the Best Sustainable

Superior Performance (20-Mile March)

Customers Employees Shareholders Suppliers

Uncompromising Integrity and Ethical Business Practices

Harsco Integrity Framework: Code of Conduct Security Practices Internal Control

To build teams that win with integrity anywhere in the world

Core Values

People – the "A Team" Human Capital Framework:

Global Talent Management System for Recruiting, Developing, Retaining and Assessing Human Capital

Continuous Improvement Continuous Improvement

Discipline through Lean and Six Sigma Methods

Business Transformation

Value Creation Discipline Economic Value Added (EVA®) Value Selling Culture

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2 4 Safety Practices Global Management Practices

Core Purpose

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Harsco’s Transformation Journey

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EnvisionedFuture &

Core Ideology

“OneHarsco”“A Team”

Knowledge-basedSolutions

Emerging Markets

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"All companies have a culture, some companies have discipline,

but few companies have a culture of discipline."

Jim Collins

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Culture of Discipline Starts with Basic, Fundamental Practices and Beliefs

Disciplined people who engage in disciplined thought and disciplined action, operating within a framework of responsibilities.

A focus on your Hedgehog.

A system of freedom and responsibility within a framework. People understand they do not have “jobs” – they have responsibilities.

Manage the system, not the people. Avoid bureaucracy that imposes unnecessary rules.

Practice extreme commitment to the cause. People go to extremes to fulfill their commitments and deliver results.

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A Culture of Discipline Great Companies Exhibit Six Characteristics

1. A clear framework of values and inviolable standards. High standards of achievement are expected as the norm.

2. Disciplined people are careful of what they commit to, and they fulfill their commitments. They deliver on what they promise and are careful to manage expectations.

3. Strategic consistency. Disciplined people and disciplined organizations stay true to the fundamental strategy and do not deviate.

4. Systematic, Methodical and Consistent. It is all about continuous improvement, having processes that work, and are not bureaucratic.

5. Culture of responsibilities versus jobs. Disciplined people take full responsibility for results.

6. Spartan work ethic, regardless of the economic environment. During good times, prepare for the worst. Make cost control a mindset, an integral part of the culture.

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A Culture of Discipline The Power of Mechanisms

Simple yet highly powerful management tools that turn goals into results

The crucial link between objectives and performance

Devices that translate aspirations into concrete reality

They make audacious goals reachable

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Core Values

Good to Great Principles

Climb the Summit

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A Culture of Discipline

Core Purpose To Build Teams that Win with Integrity Anywhere in the World

EnvisionedFuture

Uncompromising I ntegrity

and Ethical Business Practices

People – the "A Team"

Continuous I mprovement

Value Creation

Discipline

Disciplined People

First Who,

Then What Level Five

Leadership

Disciplined

Thought Confront the

Brutal Facts Hedgehog

Disciplined

Action Culture of

Discipline The Flywheel

Building Greatness

to Last Clock Building,

Not Time Telling Preserve the Core /

Stimulate Progress

Disciplined people who engage in disciplined thought and

disciplined action, operating within a framework of

responsibilities. This is the cornerstone of a culture that

creates greatness

Disciplined people who engage in disciplined thought and

disciplined action, operating within a framework of

responsibilities. This is the cornerstone of a culture that

creates greatness

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A Culture of DisciplineTakeaway Messages

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“We are what we repeatedly do. Excellence, then, is not an act but a habit.”

Aristotle

Establishing a culture of discipline is the most important element in business transformations

A culture of discipline is the cornerstone of a culture that creates greatness

Companies that have successfully established a culture of discipline exhibit six characteristics

It is imperative that appropriate mechanisms be established

Mechanisms are an extremely powerful management tool that turns goals into results