Todco was a struggling oil and gas drilling services company in 2003 with high accident rates, low employee morale, and 50% turnover. It was for sale. After a buyout, the new managers implemented transparency policies - openly communicating the company's performance metrics, financials, and expectations to employees. This increased employee accountability, training, and understanding of the business. As a result, costs went down, morale and customer value increased, and the financial performance of the company was overwhelmingly positive. The document advocates that transparency in business can have significant benefits.

1. The Drum Beat of Transparency TODCO Story 1 Drum Beat Productions.com 972 462 0243

2. Todco - 2006 Company Profile Snapshot Company Profile: Todco Ticker: THE Exchanges: NYSE 2006 Sales: 912,100,000 Major Industry: Oil, Gas, Coal & Related Services Sub Industry: Exploration, Drilling Service & Equip Country: UNITED STATES Employees: 3030 Valuation: $2,300MM Business DescriptionTodco. The Group's principal activities are to provide contract oil and gas drilling services. The Group operates through four business segments: US Inland Barge, US Gulf of Mexico, Other International and Delta Towing. The US Inland Barge segment includes barge rig fleet that consists of 12 conventional and 27 posted barge rigs which operate in marshes, rivers, lakes and shallow bay or coastal waterways. The US Gulf of Mexico segment operates 27 jackup and 3 submersible rigs in the US Gulf of Mexico shallow water. The Other International segment operates two jackup rigs. The Delta Towing segment operates a fleet of marine support vessels consisting primarily of shallow water tugs, crewboats and utility barges. 2 Drum Beat Productions.com 972 462 0243

3. 2003 - Todco Employees – 1600 Valuation: $900MM Accidents reported one per working day Morale lower than the reach of the drilling rig Turn-over almost 50% Customers vowing not to do business with Todco if they were the last company on earth. This was a subsidiary that was not core and was for sale to the first bidder. 3 Drum Beat Productions.com 972 462 0243

5. There is no more dangerous, dirty, labor intensive, dangerous, long hours, low pay and did I mention dangerous job on the ocean.

6. Paying attention to the employees

7. Telling them what to expect and doing it

8. Holding them accountable after training

9. Showing them how they were measured and why

10. Training them to understand the business of the business

11. Cost went down, morale when up, customer value increased, employees recommended the job to others

12. On the previous slides you saw the financial results – overwhelming! 4 Drum Beat Productions.com 972 462 0243

14. How to promote continuous learning at every level of the organization

15. How to fire up employees’ competitive juices

16. How to broaden the concept of leadership

17. How to delegate responsibility for the business

18. How to drive innovation and build value in the business

19. How to improve financial results for the company and themselves

20. People have applied the principles of TRANSPARENCY to an awesome array of businesses -- from oil companies to hair salons, from Internet start-ups to roller coaster manufacturers, from fast-food chains to law firms, landscapers, mining operations, even not-for-profit social service organizations. 5 Drum Beat Productions.com 972 462 0243

21. 1st Job Think back to your first job out of college. What kind of business were you in? Who were your customers? What did they want from you? What did a good job look like in your role? How do you know? Were you told? Have you figured it out in retrospect? 6 Drum Beat Productions.com 972 462 0243

22. Transparent What was shared with you about the business? How would now make that experience more rewarding for everyone: You the boss the owners the customers 7 Drum Beat Productions.com 972 462 0243

23. What is holding us back? Why is it that everyone has not adopted transparency? What are the fears? What happens if you don’t adopt? 8 Drum Beat Productions.com 972 462 0243

24. Change Change is driven by fear of loss! 9 Drum Beat Productions.com 972 462 0243

25. The Drum Beat of Cash The Drum Beat of ERM The Drum Beat of Customers for Life The Drum Beat of Servant Leadership The Drum Beat of Ethics Keynotes, Workshops, Simulations DrumBeatProductions.com 10 Drum Beat Productions.com 972 462 0243