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CHAPTER SEVENTEEN
LAND O’LAKES
Leadership Edge Case Study
This chapter outlines a leadership development approach that combines
team action learning with innovative strategic games to heighten
participant engagement and produce results.
Leadership Edge is a new, ongoing business-based leadership development experience at Land O’Lakes designed especially for high-potential employees at the director level. Leadership Edge, which begins with a robust, three-day learning program, provides these emerging leaders with increased knowledge of the company, customers, and markets; a kit of tools and techniques for developing and implementing strategy; an environment for companywide relationship building with peers and senior leaders; and the opportunity to engage in addressing real-world business challenges through action learning teams.

Setting the Stage for Leadership Edge

Land O’Lakes is a national farmer-owned food and agricultural cooperative with annual sales of nearly $9 billion. A Fortune 300 company, it does business in all fifty states and more than fifty countries. As a leading marketer of dairy-based consumer, food service, and food ingredient products across the United States, it serves international customers with a variety of food and animal feed ingredients and provides farmers and ranchers with an extensive line of agricultural supplies (feed, seed, and crop protection products) and services. Land O’Lakes also provides agricultural assistance and technical training in more than twenty-five developing nations.
Land O’Lakes’s vision is to be one of the best food and agricultural companies in the world. To help achieve this vision, CEO Chris Policinski has identified four strategic imperatives for the company and its employees:
• Best cost
• Best people
• Superior insight
• Superior portfolio
Policinski is transforming the Land O’Lakes business structure from its current holding company model, in which business units are more autonomous, to more of an operating company, in which the parent company plays a greater central role, particularly in relation to functions common across diverse business units, such as accounting, information systems, and human resources. Land O’Lakes’s modified operating company approach calls for business activities, particularly those that most directly touch the customer or affect the business unit’s bottom line, to remain directly under business unit direction and control. As Policinski has stated, “A significant focus in our journey toward more of an operating-company culture has been to bring increased standardization, collaboration, and discipline to all of our processes—including leadership development and succession planning.”
Together, the superior insight strategic imperative and move to an operating company culture provided the impetus, inspiration, and foundation for Leadership Edge and an opportunity to drive business change through leadership development.

Green Light for High-Level Development

With a CEO championing renewed focus on leadership development and strong support from the twelve-member senior strategy team that reports to the CEO, the human resource (HR) division moved forward to strengthen the development of higher-level leaders at Land O’Lakes, including officers and directors. Basic leadership training already was in place, but as HR evaluated its programs, it found that director-level development needed attention, especially for high-potential directors, defined as directors who have the desire and potential to be promoted at least two levels and could become officers of the company. These are the emerging leaders and an integral part of the company’s succession plan.
As a first step toward developing a program for these high-potential directors, HR examined the annual individual development plans of each of the 215 directors in the company to find what they needed to take them to that next level. Across the board, improved strategic thinking was the most striking need, and that finding would become the foundation for Leadership Edge. The stage now was set for developing the program itself.

Creating a Customized, Business-Focused Development Program

Human resources wanted a multidimensional approach to leadership development that would involve external thought leaders, top-level management, lots of dialogue, relationship building, collective learning, and an environment that encouraged thinking differently about Land O’Lakes and its businesses. The team also wanted to communicate to high-potential directors how valuable they are to the company and that Land O’Lakes is investing significantly in their future.

Leadership Edge Design Team

Human resources began working with the senior strategy team (SST) to identify broad themes for the program. The superior insight strategic imperative was a natural fit, given the company’s focus and the development needs of the possible participants. To help design the program, Land O’Lakes brought in MDA Leadership Consulting, a Minneapolis-based leadership development firm.
The SST was given the ultimate responsibility for selecting forty participants from a pool of directors initially identified by officers in each business unit. The company’s succession plan was a key factor in the process as SST members evaluated the depth of backup within Land O’Lakes.
To take the program from concept to completion, HR enlisted the SST to invite eight company officers at the vice president level or higher to form a steering committee and represent their businesses and functions. No SST members were part of the committee because they were the final arbiters of the committee’s recommendations. The steering committee met for only one hour every two weeks over the course of several months. Once a month, the steering committee provided a program update to the SST.

Developing Program Objectives

One of the first assignments for the Leadership Edge team and steering committee was to develop objectives for this learning experience. From a company standpoint, the objectives were to:
• Promote better understanding of an operating company business model
• Provide leadership development tied to business needs and goals
• Provide information about our industries, customers, and markets
• Introduce common models, tools, and techniques to drive superior insight
• Attract and retain high-potential employees
The program’s objectives for the participants included:
• Enhanced strategic thinking skills and the opportunity to use them
• Improved understanding of the environment in which Land O’Lakes does business and of business units other than their own
• Introduction to and hands-on experience with common models, tools, and techniques for developing and executing strategy, including customer segmentation and competitive analysis
• Exposure to the SST and other selected officers through presentations, informal gatherings, and action learning teams
• Stronger and closer relationships with peers across the company
• Recognition of their contributions and value to the company
• Increased commitment to the company’s direction and their future with Land O’Lakes; and
• Having fun
To achieve these objectives, the Leadership Edge development team designed a multiyear experience with a number of activities and events, including assessment, a three-day event, and action learning teams (Figure 17.1). The experience began with a learning event held at a resort and conference center in northern Minnesota.

Shaping Business-Relevant Content

The cross-functional group of officers on the steering committee brought their perspectives to content development but with one universal goal: the content had to be relevant to Land O’Lakes. Rather than being a silent partner, the committee was integral in shaping the Leadership Edge experience. Not only did members suggest topics and speakers, they also challenged proposed design elements such as breakout sessions that would have divided the group into Dairy Foods and Ag Services segments. The committee vetoed those kinds of exercises because they did not support the operating company model.
The final topics for Leadership Edge coalesced around the building blocks of strategic thinking:
• Gathering information
• Formulating information into a strategy
• Competitive analysis and market segmentation
• Implementing the strategy
The agenda for the three-day event was built around these four topics (see Table 17.1).
The Leadership Edge development team drew on steering committee recommendations for presenters from within and outside Land O’Lakes. They wanted the information to be challenging academically and up to date so that participants would experience the type and level of information that more senior leaders in the company use when formulating strategies. For example, Land O’Lakes had commissioned a customer-segmentation study for its Ag Services businesses. The release of those results coincided with the Leadership Edge event, so participants had a preview of the findings. In addition, presenters were coached to break the information into digestible segments interspersed with exercises that allowed the participants to put a concept or theory to use or practice a related skill.
FIGURE 17.1 THE HIGH POTENTIAL LEADERSHIP DEVELOPMENT ACTION LEARNING PROCESS
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TABLE 17.1. LEADERSHIP EDGE AGENDA
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Exercises 1 and 2 focused on market entry and exit tactics. In exercise 1, across-business groups were asked to determine the best market entry tactics for specific products or services that Land O’Lakes might consider, such as biofuels and organic feed. In the next exercise, cross-business groups were asked to look at products and services in different businesses to identify their place in the product life cycle and determine appropriate exit tactics for them near the end of the life cycle. The third exercise addressed cross-business groups and developed a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for a specific Land O’Lakes business based on information provided by participants from that business unit plus additional information regarding key customers and competitors.

More Than One Way to Learn

Hands-on exercises were just one way to enhance the leadership development and learning experience of participants. Time was set aside each day for journaling about leadership—what participants were learning and their thoughts about their own career and life goals. The first evening, participants were invited to a “bonfire chat” with several SST members who shared their own leadership journeys, the most important lessons they learned in their careers, and one piece of advice for the participants about their own careers.
Presentations, exercises, journaling, and chats with senior executives all helped Leadership Edge meet key objectives. But it was the Land O’Lakes Amazing Race that was designed to build across-the-company relationships in ways that are not possible in a conference room or even sitting by a bonfire.

The Amazing Race

Participants were carefully placed on teams to maximize networking opportunities and achieve a diverse mix of skills on each team. Each team chose a name and colors and then, sporting their colors, the teams were set loose to accomplish a schedule of activities from blindfolded putting to paddleboat races. Not all the activities were physical; some involved mental challenges like brainteasers and Sudoku.
Each race takes roughly three hours, followed by a final challenge. During the race, teams are expected to participate in a certain number of physical or outdoor activities and problem-solving activities. Following the race, teams make brief presentations, finally ending in an awards ceremony to recognize the victors.
Each activity was intentionally designed to highlight a particular aspect of leadership or team building. The teams most successful at these challenges were those that developed a strategy before jumping in to perform the task, consciously considered the skills of their team members, and exhibited a combination of steadfastness and flexibility in implementing their strategy.
CEO Policinski had this to say about the program:
 
It has been our experience that leadership development is most effective when you combine theory with practical application, when you take learning beyond the classroom and into the workplace. Leadership Edge takes that very straightforward, action-oriented approach to learning. The curriculum and the exercises are driven by real-time organizational goals, strategies, issues, and needs. Participants learn by applying key principles to genuine organizational issues. Ultimately, since the issues are real and the results are real, the learning experience becomes more real and more effective.

Making Learning Relevant

The first part of the program focused on these elements:
• Providing information and insights about the environment in which Land O’Lakes does business: trends, competitors, markets, and customers
• Introducing common models, tools, and techniques for analyzing a business and its competitive position
• Developing robust strategies based on that analysis
After each major project, cross-business groups discussed how the information or tools could be leveraged in specific businesses and across Land O’Lakes as a whole.
The last part of the program was devoted to tactics and tools for effectively implementing strategies. Participants were introduced to the alignment model (Figure 17.2), which brings the company’s mission, vision, values, customers, needs, strategies, and action plans into alignment and provides a system for identifying systems, structures, leadership, staff, and skills needed to achieve the business’s goals and then measure and evaluate progress and success. Participants then had the opportunity to pull together everything they learned in their action learning teams.
FIGURE 17.2 THE ALIGNMENT MODEL
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Action Learning Teams: Putting Strategic Thinking into Practice

Following many development programs, the reaction of participants is, “Well, that was interesting, but how am I going to put it to work?” The Leadership Edge development team found a unique answer to that question: action learning teams. Each team was given a strategic challenge related to Land O’Lakes business and three months to develop recommendations for meeting that challenge. Not only did the action learning team concept allow participants to practice their strategic-thinking skills, it also secured critical buy-in from the SST, whose members played key roles in mentoring and coaching the teams (Table 17.2).
To ensure that participants were learning and leveraging their new skills, each was required to create an individual development plan that applied to his or her action learning team project and corresponded with its goals.
 
 
The Strategic Challenges. The SST strategic challenges were presented to the action learning teams. With input from their officers, the SST members drew up an initial list of topics they knew needed more scrutiny and wanted to unleash some fresh, energetic talent against. All of the topics had an immediate application to Land O’Lakes business. Some were universal to all business units of the company, and others were more specific. In the end, the final list was a mix of both and included such challenges as sustainability, innovation, and diversity.
 
 
The Structure. The forty Leadership Edge participants were divided into action learning teams of six to seven members. Teams were organized to represent a cross-section of the company and a blend of skills, strengths, and weaknesses.
An SST member or officer was assigned to each team as a sponsor, coach, mentor, and resource. In addition, MDA Leadership provided external coaching to bring outside perspective to the process. The sponsors helped the teams frame their strategic challenge. For instance, the team assigned the topic of sustainability first had to determine what sustainability meant in terms of Land O’Lakes and then focus on a particular set of issues. The sponsors also served as sounding boards for the teams, helped keep them on track, pointed them in the direction of other resources such as people or experts they may not have been familiar with, provided perspective, and reacted to and challenged their findings. For example, a sponsor might ask the team about the ideas they discarded to further the participants’ understanding of the strategic thinking process.
TABLE 17.2. ACTION LEARNING TEAM CHARTER EXAMPLE
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But the sponsors did not do the work. As one SST sponsor said, “My team did all the heavy lifting. I was there as a resource for them.” The sponsors also scheduled regular and informal check-ins with the teams and individuals, increasing the participants’ exposure to and interaction with these seasoned leaders.
FIGURE 17.3. LAND O’ LAKES HIGH POTENTIAL LEADERSHIP
DEVELOPMENT ACTION LEARNING PROCESS
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The Action and Learning. The action learning teams were given three months to prepare their presentations. The time frame initially was considered too short by the Leadership Edge development team, but in the end, the participants preferred the compressed period. Figure 17.3 shows the entire time line from nomination of the team members to program completion and results presentation. The action learning teams were not allowed to hire consultants, but they could bring in experts from around the company and tap into information already being gathered for Land O’Lakes such as surveys and market research.
Each team’s first step was to develop a charter that defined the scope of its project, set out its mission and goals, outlined the team’s work process, and served as a work contract between the team and its sponsor (Table 17.2).
The teams had to live and breathe what they learned during the formal Leadership Edge event while they worked on these high-profile challenges with high business stakes. And they had to do this on top of their regular workload, an intentional decision by the Leadership Edge development team. The development team did not want participants to become focused solely on one project, which is unrealistic in the real world. While much of the work was done independently, team meetings were also set up. The action learning teams discovered that despite the challenges of remote team members, meetings were most effective when they were face to face and lasted longer than one hour.
 
The Presentations. Each action learning team presented its findings to the entire senior strategy team. This gave the groups practice conveying results to these high-level executives—something that is not typical for employees at the director level. SST members asked questions and took the teams’ recommendations under consideration. The SST has implemented at least one recommendation from each action learning team and all of the recommendations from several teams. Although their work was officially concluded with the presentations, some ALT members were asked to work on the projects through implementation.

Measuring the Program’s Success

At the end of the Leadership Edge program, participants completed an evaluation that asked them to rate the various aspects of the program and provide comments and suggestions. On a scale of 1 to 4, with 4 meaning “excellent,” the program overall scored 3.92. No segment rated less than 3.31. Not surprising, the Amazing Race scored 3.79 and received rave reviews as a networking and team-building exercise that was fun. One participant recommended that a rematch be scheduled in six months to bring the Leadership Edge participants together again. The segment on executing strategy also scored high, 3.69, which pleased the development team since this was the crux of the program (Table 17.3).
The official survey was one way of rating the program’s value, effectiveness, and success. The group also conducted informal interviews to determine how the experience measured up to the objectives. Here is a sampling of what a cross-section of respondents said:
 
Objective: Promote Better Understanding of an Operating Company Business Model
 
“The concept of an operating company became more than words. We were putting it into practice and living Chris’s [Chris Policinski, CEO] vision for the company. You could feel the cultural shift as we better understood our roles as members of an operating company.”
TABLE 17.3. LEADERSHIP EDGE EVALUATION RESULTS
(NUMBER OF RESPONSES)
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“In an operating company, there’s more emphasis on strategically moving talent around. I’ve been fairly siloed within my division, but now I’ve been exposed to the potential in other groups. If I had the opportunity to move, I would know so much more about the company than I did before.”
 
 
Objective: Provide Leadership Development Tied to Business Needs and Goals
 
“What we learned feels sustainable because, through the action learning teams, we were able to create a strong deliverable related to a real strategic challenge for the company.”
Objective: Encourage Collaboration Across the Company
 
“I don’t have a lot of touch points with Dairy Foods, but I learned that we face many of the same issues; just the business units are different. My ability to collaborate across the organization was greatly enhanced by the program. I have new resources as I go through the decision-making process and can seek opinions beyond those I’m familiar with.”
“There’s amazing talent in the company, and now these people are resources that I can turn to.”
“Not only is there a whole new group of people to reach out to when I’m working on a problem, but I can coach others to reach out to some resources they probably didn’t know about before.”
 
 
Objective: Enhanced Strategic Thinking Skills and the Opportunity to Use Them
 
“I believe I’m thinking more strategically now. Our group has been very tactical, but I think my perspective is broader and that I’m more aware of anticipating changes in the business and thinking about how to manage through them.”
“It reinforced the decision-making process for me and let me apply what we were learning to something that’s really happening, something that really matters to the company, not just made-up scenarios or exercises.”
“This was real-world information. We learned about the segmentation model, and right after the program, I was able to use it two or three times.”
 
 
Objective: Enhanced Relationships with Peers Throughout the Company
 
“As a director, I have sixty reports but kind of work in a bubble. Whatever my thoughts are, that’s the good idea—no one challenges me, even though I encourage them to. So it was a good experience being exposed to such a talented group of peers who had no problem challenging me! I was a little intimidated, but that’s a good thing. We challenged each other, and that made us go back and think things through again. It was the best leadership experience of my career.”
“We were learning to work together on the go, to collaborate with others and reach a goal. It really opened up the world of cross-collaboration for me.”
Objective: Feeling Valued by the Company and Increased Commitment to the Company’s Direction and Their Future with Land O’Lakes
 
“I was impressed that the company took the time and energy and made the financial investment in us. I feel that Land O’Lakes cares about our futures and that we’re part of the company. It makes me feel more loyal, more committed to the company.”
“I feel more positive about the company, and from a business standpoint, I’m more informed and more optimistic about where Land O’Lakes is going.”

Leadership Edge Impact, Next Steps, and Lessons Learned

Five months after the Leadership Edge learning event, the final action learning team presentations had been made to the SST, and the Leadership Edge development team began to see the impact of the program on the company:
• The action learning teams stretched the participants and provided fresh, insightful recommendations for strategic business challenges. As one SST member said, “We learned a great deal more about the subject and can now make better-informed recommendations and decisions.”
• The action learning teams exposed SST members to the talents of individuals at the director level, providing them insights into this group of emerging leaders.
• Leadership Edge and the action learning teams accelerated the process of cross-pollination of ideas and cross-collaboration on strategic issues around the company.
• Through a common experience, a common learning environment, and a common language and tools, this group of high-potential directors is now more aligned with the company’s journey toward becoming an operating company and with Land O’Lakes strategic business direction.
The development team is aware that challenges exist for “keeping the pilot light on” for this group of Leadership Edge leaders. Participants have said, “Don’t forget us; keep us in the loop. We want to keep getting opportunities like this.”
Leadership Edge has become a key element of Land O’Lakes’s leadership development and will alternate with an officers’ conference so that each year, high-potential employees will have access to unique, customized development opportunities. The company also is exploring other avenues for bringing more people into this development experience to broaden the group, which will cascade learnings through the company.

Lessons Learned

Leadership Edge provided a learning experience for Land O’Lakes high-potential, director-level employees and the team that developed it. Key among the lessons learned were these:
The model needs to be sustainable. Leadership Edge is unique, and it was designed to be sustainable and provide an ongoing learning experience and jumping-off point for further leadership development.
Buy-in by senior executives is critical. The CEO and his twelve-member senior strategy team were instrumental in making the program a success. Not only did they help select the participants; they also weighed in on the program’s design and content, participated in the event itself, selected the topics for the action learning teams, and served as sponsors and coaches for the teams.
Exposure to senior executives is a learning opportunity. Three of the twelve senior strategy team members (including the CEO) participated in the entire three-day event, while the others were in and out for various portions of the program. The participants had the opportunity to learn from them, and the executives also became better acquainted with these emerging leaders.
Multiple design perspectives build a stronger experience. Land O’Lakes drew on its internal resources—human resources staff, the SST, the steering committee—as well as an external consultant, MDA Leadership Consulting, to develop Leadership Edge. During the process, all brought their own perspectives to the design and challenged each other as well.
Focus on the elements that meet the most needs. Winnowing topics to a select few was a challenge. The Leadership Edge development team used the program’s objectives as guidelines for shaping content.
“Talking heads” alone don’t cut it. With high-potential participants, the learning has to be high level as well. The Leadership Edge developers strove to balance academic learning and internal and external presenters with other techniques, including leaders teaching leaders, dialogues, journaling, hands-on exercises, and activities to create an experience that was varied, challenging, engaging, and fun despite the intense environment and long days.
Networking does not happen spontaneously. Networking was a formal component of Leadership Edge to meet the program’s objective of building relationships and collaboration across the company. The development team carefully chose groups, teams, and seating arrangements to maximize networking opportunities.
Not everyone can participate. The Leadership Edge experience was developed for just 40 high-potential directors out of a pool of 215. The development team provided supervisors with detailed scripts for those who were invited and those who were not, but learned they often were not used. Going forward, the team realized it will need to manage this aspect of the experience better by encouraging supervisors to use this opportunity to coach directors about their development and their aspirations within the company—and then follow up to ensure these conversations take place.

Conclusion

Leadership Edge, a leadership development experience for forty high-potential, director-level employees of Land O’Lakes was designed to provide a business-based learning opportunity for these emerging leaders that combined insights plus application plus action to equal success:
• Content was relevant, real-world, and integrally tied to Land O’Lakes businesses and the environment in which they operate.
• Action learning teams provided participants with the opportunity to put their newly learned strategic thinking skills to immediate work as they spent three months preparing recommendations for addressing a strategic challenge that the company faced.
• Participants formed a better understanding of Land O’Lakes’s movement toward an operating company model and became acquainted with resources and peers across the company, which is key to the success of an operating company.
• Both participants and senior executives learned from their experience together.
• The groundwork has been laid for the continuation of Leadership Edge, as well as additional high-level leadership development for groups such as the senior strategy team and company officers.
In the end, Leadership Edge met all its objectives and was deemed by all measures a resounding success by the CEO, SST, the development team, and the participants themselves. As the CEO has stated: “We have found that we can generate increased energy and passion for leadership by bringing high-potential employees together to develop leadership skills and capabilities. There seems to be a compelling drive among participants to not only meet their personal expectations, but also those of their high-potential peers. In essence, working together, Leadership Edge participants raise the bar when it comes to the definition of exceptional leadership.”

About the Contributors

Karen Grabow is vice president of human resources for Land O’Lakes. She has been with Land O’Lakes since 2001 and has experience in corporate human resources and consulting, with major emphasis on strategic human resource leadership and organizational effectiveness. Prior to Land O’Lakes, she worked at Target Stores for seventeen years where she also was vice president of human resources. Grabow has a B.A. from the University of Illinois, Champaign, and a Ph.D. in industrial/organizational and counseling psychology from the University of Minnesota.
Grabow is a licensed psychologist in the State of Minnesota. She has been a lecturer at the University of Minnesota, University of St. Thomas, Macalester College, the Society of Industrial/Organizational Psychology Annual Conference, and the American Psychological Association conferences.
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Deb Suhadolnik is director of organizational and leadership development for Land O’Lakes. In this role, she is responsible for corporate training and development, online learning, and critical companywide processes, including leadership development, performance management, and succession planning. Suhadolnik joined Land O’Lakes in 2002 after many years as a human resource consultant specializing in organizational effectiveness and leadership development. Her clients included 3M, Cargill, Prudential Insurance, DTE Energy, Xerox, the Coca-Cola Company, AT&T, British Air, and Target.
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Scott E. Nelson is a partner and vice president of leadership development for MDA Leadership Consulting, a Minneapolis-based firm specializing in selection assessment, succession planning, executive coaching, leadership development programs, team development, and change management consulting. Nelson has more than twenty years’ experience building talent management and leadership consulting programs for the City of Tulsa, Personnel Decisions, Hay Management Consultants, and Linkage Inc. In 2005, Nelson began at MDA as vice president of leadership development and in 2007 became one of the owners. He has worked with a wide range of companies to develop selection systems, competency models, and succession systems, but his real passion is in building leadership capacity through large-scale, customized development programs and executive coaching.
Nelson holds a B.A. in psychology from Luther College and an M.A. in industrial/organizational psychology from the University of Tulsa.
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Susan Zemke is a senior consultant and executive coach with MDA Leadership Consulting. Her work in developing strong, engaging leaders has benefited clients in a broad range of industries, from health care to quick-service restaurants, to automobile manufacturers. Clients have included Resurrection Health Care, Allergan, Fairview Health Services, Land O’Lakes, Payless ShoeSource, McDonalds, Federated Department Stores, Sallie Mae, and DaimlerChrysler. Prior to joining MDA, she worked as a senior consultant for Linkage Inc., organization effectiveness manager at the St. Paul Companies, and vice president of training at First Bank System.
Zemke earned her B.A. in history and secondary education from Trinity College, Vermont, and her M.S. in reading and reading administration from the University of Bridgeport, Connecticut.
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