"The best way to predict your future is to create it! Abraham - PowerPoint PPT Presentation

 Lack of Long Term Aim and Purpose  Th e p ur p o se of p lanning i s t o cr e a te a p lanning mind- set mor e t han t o d e liv e r a p lan - Dwigh t D . Ei se nhow e r  Lack of System View  Failure to Plan  Rigid Adherence to Plan  Failure to See Changed Environment Page 31 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 D es crib es t h e d es ir e d fu t ur e  Cr e a tes p ur p o se and m e aning t o in sp ir e u s  Cr e a tes t h e con text for goal sett ing – t o di s ci p lin e u s  Tim e l ess, bu t r e gularl y r e vi e w e d – t o r e mind u s  Ada pt abl e t o t h e e nvironm e n t, yet con st an t  All st ak e hold e r s s hould see how i t se rv es t h e m  Th e vi s ion s for t h e com p an y, d ep ar t m e n ts, te am s, and individual s s hould align and m es h in t o on e  R e m e mb e r t h e Abraham Lincoln quo te:  “The best way to predict your future is to create it!” Page 32 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Of te n ba se d on S WOT or S OA R anal ys i s  b y In te rnal and E xte rnal r es ourc es  Ba s ic Q u est ion :  “In t h e n ext 10 -2 5 ye ar s wha t mu st w e accom p li s h?”  S MA R T Goal s  S im p l e – M e a s urabl e – A ccoun t abl e – R e ali st ic – T im e l y Page 33 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

R e duc e Clarify the fini s h lin e. Ov e r t im e % t o S al es from 10 % t o 8 % Start with a v e rb . b y D e c e mb e r 3 1, 2 008. Finish with a t im e con st rain t. Clarify wha t you Clarify the want to change. ba se lin e. Page 34 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Overview of an operating system e.g. Hoshin Kanri  Review of the Key Measures for the plant/department/area/company  Identification of Key Measurements for individual areas  Outline implementation plans Page 35 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Keep track of overall performance  Systemic, holistic approach  Facilitate Continuous Improvement  Collect data in a standard form that can be easily analyzed and reviewed  Use structured and disciplined Problem Solving and Decision Analysis approach  Verify effectiveness of activities  Integrates concepts of systems thinking with sales, engineering, shopfloor, shipping and leadership  And Supplier base too Page 36 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Division Goal 1.1 Regional Obj e c t iv e 1.1.1 Goal s 1.1.1 Corporate Obj e c t iv e 1.1. 2 Obj e c t iv e 1.1.1.1 Obj e c t iv e 1.1. 3 Goal 1.0 Obj e c t iv e 1.1.1. 2 Obj e c t iv e 1.1.1. 3 Obj e c t iv e 1.1 Goal 1. 2 Obj e c t iv e 1. 2 Branch Obj e c t iv e 1. 2 .1 Obj e c t iv e 1. 3 Obj e c t iv e 1. 2 . 2 Goal s 1.1.1.1 Obj e c t iv e 1. 2 . 3 Obj e c t iv e “X” Obj e c t iv e “X” Goal 1. 3 Obj e c t iv e “X” Obj e c t iv e 1. 3 .1 Obj e c t iv e 1. 3 . 2 Obj e c t iv e 1. 3 . 3 Page 37 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

• We must believe we have control, that our effort makes a difference • We must trust that we won ’ t be hurt for missing a goal • We must avoid perfectionism in our thinking. • Perfectionists set impossible goals because they “ cannot separate the significant few from the trivial many. ” Page 38 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Thr ee types:  Bu s in ess Fundam e n t al  e. g . r e v e nu e, gro ss margin , t urnov e r  Annual Obj e c t iv e – In p lac e for a s ingl e p lanning c y cl e  D e v e lo p m e n t Obj e c t iv e – To p u t a p roc ess or syste m in p lac e t ha t i s n e c ess ar y bu t no t a t ru e obj e c t iv e, s uch a s “clarif y mark et da t a” Page 39 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Spe cific cour se of ac t ion t ha t will l e ad t o t h e accom p li s hm e n t of a spe cific obj e c t iv e  S u pp or te d b y on e or mor e d et ail e d ac t ion p lan s  E sse n t ial e l e m e n ts:  Wh y  Wha t  Wh e n  Who Page 40 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Progr ess i s r ep or te d , h e l p i s off e r e d , chang es ar e mad e t o e n s ur e t h e original obj e c t iv es ar e achi e v e d and t o im p rov e p r e dic t abili ty  Par t of PDCA – “You g et wha t y ou ch e ck . ”  Ca s cad es u p; te am , func t ion , cor p ora t ion  Par t of p lanning cal e ndar – no s ur p ri ses Page 41 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

EVE N T Thinking = Focus on Random, Disjointed Events, PATTE R N PATTE R N PATTE R N PATTE R N PATTE R N PATTE R N PATTE R N Thinking = View of repeating issues, patterns of events or problems PA R ALLEL Thinking = Review of systemic challenges as a team, thinking together in the same ways at the same time (Edward de Bono - Six Hats Thinking Hats)  -------------------------------- S Y S TEM -------------------------------  S Y S TEM S Thinking = Seeing the entire process (Value Stream) as a connected series of interactions and its impact across functional lines Page 42 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Financial and non-financial measures  These are also called LEADING and LAGGING indicators  LEADING = a predictive measure that causes, influences or supports other measures  LAGGING = historical. e.g., financial measures are after the fact of costs or revenues and historical in nature, what already happened.  Relate to the strategic measures of success  Communicate the strategy  Need feedback mechanism Page 43 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

GAIN APPLY START CONTINUE KNOWLEDGE KNOWLEDGE TRANSFORMATION PHASE There are a number of dependencies between the Phases and Tasks which are not depicted . Develop Read books, THEORY theories and START papers, see test them in videos, and + EXPERIENCE TASK organization other sources = KNOWLEDGE In not, then Do the Then, we can If theory and experience either theory results use knowledge match, then we have a or experience match to improve better theory, a f ter many misleads us. the our enterprise tests, we have knowledge theory? Com p ar e d t o t h e PD S A/PDCA C y cl e Page 44 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 W e PLA N wha t w e wan t t o accom p li s h ov e r a pe riod of t im e and wha t w e will do t o g et t h e r e.  W e DO s om et hing t ha t fur t h e r s t h e st ra te gi es and goal s d e v e lo pe d in our p lan . > Plan t h e > Ado pt t h e obj e c t iv e. Ac t ion Plan chang e. > A s k qu est ion s, mak e p r e dic t ion s > Ada pt t h e chang e R on Mo e n’ s ar t icl e wi t h > Plan wha t, wh e r e, > B e gin t h e n ext Cliff N orman on t h e wh e n and who t o c y cl e D e ming C y cl e ha s im p l e m e n t t h e c y cl e exp and e d our vi e w s of > Anal y z e t h e da t a > Carr y ou t t h e p lan . t h e PD S A l e arning and com p l ete l y. im p rov e m e n t c y cl e. > Docum e n t p robl e m s > Com p ar e da t a t o and un expe c te d p r e dic t ion s ob se rva t ion s Ch e ck or Do > S ummariz e > B e gin da t a St ud y l e arning anal ys i s W e C H ECK ( St ud y ) t h e r es ul ts of our ac t ion s t o mak e s ur e w e achi e v e wha t w e p lan . W e ACT b y d e v e lo p ing p roc e dur es t o e n s ur e our p lan s con t inu e t o b e s ucc ess ful and b y changing wha t i s n ee d e d t o achi e v e t h e ini t ial goal s. Page 45 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Engagement Alignm e n t (the Motivation & Commitment ( t h e Und e r st anding & of the Workforce) Plac e m e n t of t h e Workforc e ) R e la t ional Alignm e n t R e la t ional Engag e m e n t R e la t ional L e ad e r s hi p Eff e c t iv e n ess (P e r s onn e l-r e la te d Clari ty of Organiza t ional ag e n ts of R e la t ion s hi ps influ e nc e ) Func t ional Alignm e n t Func t ional Engag e m e n t Func t ional ( N on- pe r s onn e l- Eff e c t iv e n ess of Polici es, Clari ty of Obj e c t iv es and r e la te d ag e n ts of Proc esses, and Syste m s R esp on s ibili t i es influ e nc e ) Page 46 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Average organizations  29% fully engaged  19% disengaged  52% partially  Fully Engaged  85% plan to stay  Outperform “partially engaged” by 24%  Disengaged  Cost U.S. businesses $350 Billion A Year  Financial Data – Think Productivity & Profitability  O pe ra t ing Margin  +3 .74 % in high e m p lo yee e ngag e m e n t organiza t ion s  -2.01% in low employee engagement organizations  Net Profi t Margin  +2 .06 % in high e m p lo yee e ngag e m e n t organiza t ion s  -1.38% in low employee engagement organizations Page 47 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

COMMO N PU R PO S E Alignm e n t & Ada pt a t ion  The Lead Team will set initial focus for the efforts (Vision & Mission) most critical to success of the enterprise; common purpose, common principles, alignment of communication around the purpose and alignment of COMMO N P R I N CIPLE S understanding by the team. (Guiding Values)  They will also revisit the purpose, principles, Brand , Cul t ur e, P e rformanc e communications and understanding by feedback from the process coming back into the vision, mission, values and dialogue from the aligning conversations COMMU N ICATIO N and dialogue with stakeholder subteams. (Dialogue) Engag e m e n t R es ul ts - O pp or t uni t i es & I ss u es  By involving formal and informal leaders (early Proc esses - Produc ts - Se rvic es adopters and innovators) from each stakeholder group, the Lead Team will set up subteams to engage everyone in the organization it seeks to U N DE R S TA N DI N G change or involve in the transition and (Alignment) transformation. P e o p l e - Plan s - Ac t ion I te m s Join t Mark et ing Agr ee m e n ts Transition Management Teams will be set up O pe ra t ing Agr ee m e n ts to I nvolve Everyone In Gathering Feedback S ubcon t rac t ing Agr ee m e n ts And Getting That Feedback To The Lead Team. Page 48 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

PDCA Cycle Ac t: Plan : Take action on specific Select a measurable items that effect root goal by understanding causes. Standardize the the root causes countermeasures that through an experiment affect root causes and or tool, such as 8D, start the cycle again Fishbone, 5 Whys, etc. Ch e ck : Do : Monitor the results of the Implement and ensure specific countermeasures to data is tracking with address root causes and the chosen method validate your theory Page 49 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Cascading PDCA Cycle P lan Act Do Check P lan P lan Act Do Act Do Check Check P lan P lan P lan Act Do Act Do Act Do Check Check Check P lan P lan P lan P lan Act Do Act Do Act Do Act Do Check Check Check Check Page 50 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

A Circl e or C y cl e ? S A P D P S D A Unhinging t h e PD S A Steps This “wave” or “cycle” view of the applied scientific S method in PDCA-PDSA is a continuous adaptation to view the learning and improvement cycle. Repeating PDSA steps in a process of continuing to D learn and increase knowledge with every cycle is the way PDSA works. You may find other visual P methods work better for you and your system or organization ! Page 51 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Structured and consistent  Must have review sessions “set in stone”  These become the basis for continuous improvement AND  Prioritization of resources  Review of actions impacting key measures  Problem Solving  Decision Analysis  Lean Initiatives, etc.  Evaluate system effectiveness  Modify and close gaps. Page 52 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Commitment to both the direction and the implementation strategy  Increases interdepartmental cooperation  Draws upon & reinforces the PDCA cycle in a monthly [or appropriate] process review  Provides a common focus for the organization  Requires feedback and input from the organization  Through vertical and horizontal alignment  Standardized reporting mechanism and format Page 53 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Divi s ion/ R e gion From / To (Mon t h Y e ar) Own e r Da te ( t oda y ) Cor p ora te Mi ss ion St a te m e n t (Vi s ion and Valu e, ba se d on t h e curr e n t s i t ua t ion) Mi ss ion St a te m e n t Own e r Goal St a te m e n t K ey Obj e c t iv es t o m eet t h e Goal P e rformanc e m e a s ur es and d e liv e rabl es (Who Obj e c t iv es and wh e n [nam es and da tes] ) Page 54 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 T ies goals from each department to the strategic goals.  Communicates goals throughout the organization.  Provides the means to focus on corporate-wide, strategic goals  Aligns prioritization of resources in pursuit of goals  Provides employees with a standard method and standard tools by which they can measure their performance and adjust/adapt their behavior  Provides an audit trail for problem solving and decision-making.  Provides collaboration and team engagement.  Gives everyone a sense of ownership because they understand how they help achieve the strategy. Page 55 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Th e Fiv e Alignm e n ts ar e fundam e n t al t o H o s hin . Ac t Plan Organiza t ional Organiza t ional L e arning & L e arning & D e v e lo p m e n t D e v e lo p m e n t St ra te g y St ra te g y Proc ess Proc ess H orizon t al H orizon t al Do Ch e ck V e r t ical V e r t ical R epe a t ing t h e PDCA / PD S A c y cl e fu e l s t h e alignm e n t . Page 56 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Wha t i s t h e righ t job for y our Com p an y ? Cor p ora te st ra te g y i s t h e p a tte rn of d e ci s ion s in a com p an y t ha t d ete rmin es and r e v e al s i ts obj e c t iv es, p ur p o ses, or goal s, p roduc es t h e p rinci p al p olici es and p lan s for achi e ving t ho se goal s. I t d e fin es t h e rang e of bu s in ess t h e com p an y p ur s u es, t h e kind of e conomic and human organiza t ion i t i s or in te nd s t o b e and t h e na t ur e of t h e e conomic and non- e conomic con t ribu t ion i t in te nd s t o mak e t o i ts s har e hold e r s, cu st om e r s, e m p lo yees and communi t i es. Page 57 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Wha t func t ion s do w e n ee d and how do w e t alk t o e ach o t h e r? Organiza t ion s spe cializ e wi t h diff e r e n t func t ion s pe rforming diff e r e n t cri t ical t a s k s for t h e bu s in ess. T yp ical func t ion s includ e s al es, financ e, e ngin ee ring , manufac t uring , o pe ra t ion s, et c . A s organiza t ion s b e com e mor e spe cializ e d i t can b e difficul t t o communica te t o o t h e r “ s ilo s ” in t h e organiza t ion . O pe ra t ing a s “ s ilo s ” can b e t h e bigg est hindranc e t o grow t h! Page 58 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

What is our chain of command and how do we communicate up and down the organization? O rganizations provide control and accountability by assigning authority to different positions in the organization. Titles like CE O and President describe higher level jobs. Titles like Vice President, Dean or Chief of Surgery describe positions at a different level. A clear chain of command helps everyone understand who is responsible for making various decisions and what resources the organization has entrusted to that position. Page 59 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

H ow do w e mak e s ur e our p lan s ar e on t rack? Planning (and l e arning) r e li es on t h e D e ming Plan , Do , Ch e ck , Ac t C y cl e (PDCA) t o s olv e p robl e m s t ha t occur and t o mak e s ur e t ha t p lan s ar e on t rack . Goal s ar e t rack e d (a t l e a st mon t hl y ) and ongoing ac t ion p lan s ar e d e v e lo pe d t o mak e s ur e t ha t r es ourc es ar e alloca te d in t h e b est wa y t o achi e v e t h e goal . Page 60 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

How do we develop all the people on the team and help them learn how to make good decisions? L earning provides opportunities to develop the team ’ s ability to make decisions and solve problems. Managers and subordinates function as coaches by asking questions and by providing continuous feedback, conducting regular (at least monthly) reviews where progress toward personal goals is discussed. Page 61 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 A p ar t ici p a t iv e a pp roach t o d e ci s ion making .  U se d in H o s hin t o communica te acro ss manag e m e n t l e v e l s and func t ion s wh e n sett ing bu s in ess obj e c t iv es.  Th e m et a p hor u ses a ball t o sse d back and for t h t o e m p ha s iz e t h e in te rac t iv e na t ur e of p olic y d ep lo y m e n t.  B e ing pe rmi tte d t o spe ak wi t hou t in te rru pt ion – b e ing h e ard  Ev e r y on e i s h e ard in ca t chball Page 62 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

St ra te gic Planning Pha se i s Blu e Tac t ical R e vi e w and Alignm e n t i s Gr ee n F ee dback Loo p & A 1 Se qu e nc e R e d 7 & G AIM & Communica te Ada pt a t ion from T e am , VI S IO N Aim & Vi s ion St ak e hold e r s and R es ul ts F 6 LEA R N I N G & DEVELOPME N T B 2 R e vi e w R es ul ts, Progr ess Communica te E PDCA MI SS IO N, & D e v e lo p m e n ts Wi t h Mi ss ion , St ra te gi es S T R ATEGIE S PD S A S ho p Floor VE R TICAL & Long T e rm , OBJECTIVE OBJECTIVE S 5 Obj e c t iv es S D H O R IZO N TAL Ada pt S hor t T e rm OBJECTIVE S C Obj e c t iv es t o Proc ess Targ et Ac t ion s Ada pt St ra te gi es & 4 S hor t T e rm 3 Obj e c t iv es t o Divi s ion s A t e ach st ag e of cor p ora te, func t ional , divi s ional , te am or individual r e vi e w in “ca t chball” , t h e r e i s t wo wa y f ee dback t o e ngag e and e n s ur e und e r st anding t h e aim , vi s ion , valu es, mi ss ion , st ra te gi es, obj e c t iv es and ac t ion p lan s, a s w e ll a s r es ul ts and ga ps. Thi s f ee dback m e chani s m i s cri t ical t o ada pt ing t h e cor p ora te valu es and aim a s n ee d e d t o k eep organiza t ional and individual alignm e n t. Page 63 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Stage or Phase “0” Innovations feed the Process at Design & redesign  Stage 0 Generates Ideas D es ign and Con s um e r r e d es ign R ese arch A B Di st ribu t ion R e c e i pt and test of informa t ion & CU S TOME R S S u pp li e r s of ma te rial s Produc t ion , a sse mbl y, in spe c t ion , conformanc e Con s um e r s of informa t ion , ma te rial , p roduc ts & e qui p m e n t se rvic es C T est of p roc ess, machin es, m et hod s, co sts, D u se r acc ept anc e Deming’s use of this chart in Japan demonstrated the process as a system, starting in the 1950’s Page 64 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Deming described this as a result of quality in a system C osts C osts Make better Make better decrease decrease quality, quality, because of because of P rovide P rovide lower price, lower price, less rework, less rework, Stay in Stay in P roductivity P roductivity more jobs more jobs I mprove I mprove more profit, more profit, less waste, less waste, operation operation I mproves I mproves and more and more Quality Quality more more fewer fewer jobs jobs benefit, benefit, mistakes, mistakes, more value more value fewer delays, fewer delays, fewer snags fewer snags  Focus on improving the quality first, the productivity will follow, then jobs  Focusing on jobs or productivity first will be downstream in the system And have less impact than going upstream to start with quality in processes, products &  services, people and technologies  Chain reaction below relates to non-profit and government economics Decrease Decrease Make a Make a Provide more Provide more Do more Do more required required greater greater effective jobs, effective jobs, P roductivity P roductivity I mprove I mprove important important inputs, cycle inputs, cycle benefit, for benefit, for organizations organizations I mproves I mproves Quality Quality work work time, funds time, funds less inputs less inputs and security and security and labor. and labor. and budget and budget Page 65 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

• Who i s down st r e am from y ou? Cu st om e r SALES • Th ey ar e y our cu st om e r! S u pp li e r • I N FO R MATIO N Cu st om e r • N EED S PRODUCTION • MATE R IAL S u pp li e r • P R ODUCT S, S E R VICE • I N FO R MATIO N • N EED S Cu st om e r • O R DE R S SHIPPING • MO N EY S u pp li e r  Who i s y our S u pp li e r? Cu st om e r EXTE R N AL  Th ey ar e u pst r e am from y ou! CU S TOME R S u pp li e r  I t all d epe nd s on wh e r e y ou ar e in y our syste m . Page 66 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Business Fundamentals (Is Now) O N GOI N G (Dail y )  Documents the present daily work of the business, and mission STRATEGIC STRATEGIC  Long Range Strategic Plan (Should Be) PE R IODIC (3- 5 Y e ar s )  Documents the future operations in 3-5-10-20-30 years increments  Annual Plan A NN UAL ( 1 Y e ar)  Documents key actions and KSI objectives to be met this year  Progress to reach long term vision and strategic plans  Review Tables O N GOI N G (Mon t hl y )  Documents actual KSI results to expected plans TACTICAL TACTICAL ( Q uar te rl y )  Adapting changes to the plans  Abnormal Conditions Tables A S N EEDED (Mon t hl y )  Documents “out of limits, out of ordinary” occurrences ( Q uar te rl y )  Changes to system to eliminate root causes of problems Page 67 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Welcome And Introductions  MLC Overview  Red Bead  Gemba walks  Gemba walk at Subway  Long term Lean planning and Hoshin  Leaders Standard Work  Culture change and employee engagement systems  Wrap Up

St andard Work Definition: The current best documented method to safely and effectively organize work elements in a repeatable sequence as part of a process or system that adds value.

Th e Manag e m e n t Syste m – Your Infra st ruc t ur e  The normal tasks required to sustain the system through a management system  Tasks typically include audits, meetings (daily responsibility) and continuous improvement projects  Your value stream focuses on the shop floor process  Directs the leader to check on the visual controls  Expected to be continually improved  Each task should be tracked for volumes, frequency, delay and duration

Cl e arl y Docum e n ts t h e Manag e m e n t Syste m  Documents the current state of the value stream in lean management  A baseline for further system improvement  Defines expected behavior for leaders (what they should do)

Cl e arl y Docum e n ts Your Manag e m e n t Syste m  Always Manage Your Time, and Your Calendar  Live by the clock, your schedule, your calendar and your plan  Focus on Your Managerial Priorities  Spend your time on the important tasks first  Manage the balance of important vs. urgent  Demand vs. programmable  Identify the Right Things to Do  Then Do Them  Defines expected behavior of you as a leader (what you should do)

Four El e m e n ts Paradigm s 1 . L e ad e r st andard work • Go and see • St andard s e nabl e im p rov e m e n t • Mak e p robl e m s vi s ibl e 2. Vi s ual con t rol s • Go see t h e G e mba 3. Dail y r esp on s ibili ty • St o p and fi x • Ev e r y bod y s olv es p robl e m s p roc ess • L e ad e r s ar e te ach e r s 4. L e ad e r s hi p di s ci p lin e • A s k t h e 5 Wh ys

% of Work ( t im e ) t ha t s hould b e ROLE St andard Executives 10 - 15 % Value Stream Manager 2 5 % Support Department Managers 50 % Supervisors – Group Leaders 50 % Team Leaders 80 % Operators (Associates, members) 95 +% EVE R YO N E!

St andard Work Con te n t Vari es b y Po s i t ion E xe cu t iv e St andard work i s LE SS st ruc t ur e d • % of time standard • Specific sequence Valu e St r e am Manag e r • Specific time of day • More time for discretionary tasks S u pe rvi s or and S u pp or t ing R ol es (Engineering, Maintenance, Sales, Finance, Continuous Improvement, St andard work i s MO R E st ruc t ur e d Purchasing) • % of time standard T e am L e ad e r • Specific sequence • Specific time of day O pe ra t or • Less time for discretionary Production Process

T e am M e mb e r s L e ad e r s St andard Create value by standard work in production process and Work s hould continuous improvements b e inform e d b y t h e T e am L e ad e r s L e ad e r s S ho p floor h e l p and Maintain production and ensure standard work is followed G e mba coach t h e and improved by coaching Team Members te am wi t h M e mb e r s aim , S u pe rvi s or s & Grou p L e ad e r s h e l p p ur p o se, Monitor, support and coach Team Leaders in their l e ad e r s dir e c t ion , ability to carry out their standard work und e r st and clari ty t h e ob st acl es Valu e St r e am Manag e r s and Monitor, support and coach Supervisors & Group Leaders in con st rain ts L e ad e r s their ability to carry out their standard work in t h e St andard syste m Work s hould E xe cu t iv es b e la ye r e d Spend time on the floor to verify the system and process (d e v e lo pe d) chain of standard work is upheld and the production process from t h e is stable and improving bo tt om u p

Three Tiers 1. Tier 1: Team Start Up Meeting  Team leader meets briefly with team members 2. Tier 2: Supervisor Meeting  Supervisor meets with team leaders and dedicated support group representatives 3. Tier 3: Value Stream  Value Stream Manager with supervisors and support department personnel

Ch e ck b e cau se You Car e for & R espe c t P e o p l e  Each level of LSW has some overlap and redundancy to provide linkage – make sure they are logical and meaningful to you and your team L e arn b y Doing  Excellence is more about what you do than about what you know – and learning comes from action – follow the LSW process Im p rov e t h e St andard  As the processes change and as people learn, Leader Standard Work needs to change with it

Take 5 minutes: List the KPI’s / Goals / Objectives that are critical to the success of your company List the KPI’s / Goals / Objectives that are critical to the success of your division/department

Take 5 minutes individually and list the daily/weekly/monthly tasks you perform or complete on a regular basis. These items are things that others rely on you to complete for information, priority, performance feedback, communication, etc. This includes meetings, conference calls, training, etc. List everything you do. Use your outlook calendar as a guide if you brought it. Are there inputs you need to go and get? List those. Note whether they are value-added (VA, customer is willing to pay for them), non-value-added (NVA, customer is not willing to pay for them), or business value-added (BVA, non-value-added but necessary). Now, incorporate standard work activities into the metrics that you outlined before How do goals cascade down through the organization and tie into YOUR standard work? How can you take goals down to a level that can be seen and used at the floor (the floor may be in the front office) Discuss results/observations/reactions in your group for 15 minutes.

Take 5 minutes: Lay out a blank sheet of paper with all those wonderful notes you just made! Use the following slides as reference…

Standard weekly or specific-today tasks Notes, Everyday tasks working diary Emergent items 82 Page 82 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

• What Leader Standard Work have you seen work, or not work!

 Welcome And Introductions  MLC Overview  Red Bead  Gemba walks  Gemba walk at Subway  Long term Lean planning and Hoshin  Leaders Standard Work  Culture change and employee engagement systems  Wrap Up Page 88 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

O pe ra t ing d e fini t ion of Cul t ur e: A blend of the values, beliefs, taboos, symbols, rituals and myths that all organizations develop over time  Whether written, spoken or merely understood, culture describes and governs the ways members of organizations think, feel and act  Cultures may be based on beliefs spelled out in vision & mission statements, objectives, goals, policies, processes and practices  It consists in part of symbols, like the workplace, tools, uniforms or other artifacts  Whatever shape it takes, organizational culture plays a big role in determining how well the team performs  Closely related to performance AND brand  A highly complex system in most organizations  It impacts and is impacted by many subsystems  It impacts and is impacted by the containing systems Page 89 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Chall e ng es & O pp or t uni t i es  Cul t ur e of te n g ets t h e blam e for pe rformanc e i ss u es  I t i s typ icall y blam e d af te r i t wa s no t con s id e r e d  I t i s no t t h e diff e r e nc es in cul t ur e  I t i s t h e s imilari ty in organiza t ional d e f e n ses and t hinking t ra ps  Cul t ur e includ es pe r s onal , p rof ess ional & organiza t ional d e f e n ses  Th e esp ou se d t h e or y i s N OT t h e p robl e m  Th e t h e or y -in-u se i s t h e p robl e m  Ignoranc e  G e n e raliza t ion s  Bia ses  Fundam e n t al A tt ribu t ion Error s Page 90 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 Y ES!  B ut it will be hard work  It must have awareness  It must have learning  It must have not merely change, or transition  Cu lt u res can trans f orm with:  Knowledge and Learning (Double - Loop Learning)  Acknowledgement of C ommon Issues in the system  And at Least One Transformational Leader  Followed B y Many Others Page 91 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

 B e n e fi ts  Communica t ion s n et work s allow u s t o work from an y wh e r e, an yt im e  T e am s can b e ba se d on com pete nci es, no t availabl e r es ourc es  Abl e t o bl e nd in te rnal expe r t i se and ou ts ourc e s om e expe r t i se a s n ee d e d  Ph ys ical boundari es and handica ps ar e l ess im p or t an t  E xpe n ses can b e r e duc e d or e limina te d  2 4 H our Workforc e in 2 4 t im e zon es  H ow Th ey G et Cr e a te d  L e ad e r s hi p s hif ts from managing ac t ivi t i es t o h e l p ing pe o p l e s ucc ee d  Allianc es and r e la t ion s hi ps d e fin e t h e te am , no t organiza t ion s and job d es cri pt ion s  T e am s n ee d expe r t i se A N D collabora t ion , s har e d s ucc ess  E xpe r t i se i s di st ribu te d acro ss g e ogra p h y  G e ogra p hi es mak e fac e t o fac e m eet ing s im p o ss ibl e or co st l y Page 92 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

• Historically, we used to view Team Members as “Arms and Legs” • We didn’t always use their “brain power” • We TOLD them what to do, and did not A S K them • What could they do • Can w e hon est l y t ru st work e r s t o mak e d e ci s ion s abou t t h e ir job s t ha t migh t e ff e c t t h e com p an y ? • Of cour se w e can! • They have a stake, just like their leaders do • They work in the process on the shop floor and understand it better than Leaders do Page 93 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

E ight S tage Process o f C reating M ajor C hange 1. Establish A Sense of Urgency (IN CR EASE U R GEN CY ) 2. C reate The Guiding C oalition ( B UILD THE GUIDING TEAM) 3. Develop a Vision and Strategy (GET THE VISION R IGHT) 4. C ommunicate The C hange Vision ( C OMMUNI C ATE FO R B U Y -IN) 5. Empower B road B ased Action (EMPOWE R A C TION) 6. Generate Short Term Wins ( CR EATE SHO R T TE R M WINS) 7. C onsolidate Gains & Produce More C hange (DON ’ T LET UP) 8. A nchor N ew A pproaches I n T he Cu lt u re (MAKE C HANGES STI C K) Page 94 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

1. Communica te Th e Aim & Proc ess A doption Rate & Motivation Expectations from the executive team to the front line  Accountability for implementation and tracking  Motivated by evidence based decision making and learning Innova t or s & Earl y Ado pte r s  Acknowledge who is losing what Earl y Majori ty & La te Majori ty  2 . Inv est R es ourc es R es i st or s People & Time  Process & Structure  Budget  3 . Educa te & L e arn Theory & Evidence  Policy, Protocol, Practice  What, Why, When, Who, How  4. Look For Evid e nc e & Prom pts Visual Clues & Alerts  Documentation & Pathways Tim e  Manual or Automatic  5. Coach or Forc e Func t ion 2 - 10 % 50 % 2 - 10 % Champion or Gatekeeper (Coaches, Chairs, Teams)  Announc e R e gula te R e cogniz e E st abli s h R ul es Manual or Automatic  • I am on board • One on one feedback • Track Performance • Early Adopters 6. Moni t or P e rformanc e & Di s cov e r Valu e • Resources • Show consequences • I will comply over time • Educate Me Timely Feedback and Recognition • I will come along • I will start  Balance of Rewards / Consequences  Benefits and Business Case (ROI or Value) R e f e r e nc es & Man y Thank s  Performance Analysis Review - Opportunities for Improvement • Jud y Avi e, R N MEd - for sharing this tool  Barrier removal through continuous performance improvement • Everett Rogers - 1995 (Adopters Rate / Motivation graph)  • William Bridges - 1991 7. R e vi e w Aim , Targ ets, Goal s, Balanc e d S cor e card , P e rformanc e • James Prochask - 1995 System, Site, Team, Individual Dashboards  • John Kotter - 1996 Action Item List - Red Jeopardy Reports • Malcolm Gladwell - 2000  Page 95 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Focus on long-term, sustainable changes (as opposed to short-term  gains) by making s mall , incr e m e n t al chang es con t inuou s l y A way of life, never ending journey toward world-class status  “No-blame” environment; a fear-free environment!  A never-give-up attitude  True teamwork  Action oriented  Change oriented  Reflection time (hansei)  Becoming “fit” or “athletic” or “strong” or “agile” in terms of business and  operational performance Being individually accountable at all levels  Management existing to support the workforce (i.e., servant-leader  mentality) Systematically, and continuously, taking out waste or “muda” of every  aspect of a company’s operation (across the value chain) Challenging the tradition and status quo  Page 96 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Bring out the best in all people and allow teams to develop ideas  and implement changes Ask questions instead of telling people what to do  Help and not criticize  Problems are good; solve them to improve  Aim for perfection, and accept excellence  It is important is to learn from mistakes  Find the problem, not the blame  Discover what happened, why it happened  Then prevent recurrence  Improve the system to prevent recurrence  Do not blame each other  Page 97 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Psychology helps understand people and the interactions between them  Every person is different than every other person  People are born with a natural inclination to learn  People learn in different ways and at different speeds  People are born with a need to be in relationships with others, need respect and esteem by others  All people are motivated to a different degree by extrinsic and intrinsic factors  Intrinsic and extrinsic sources motivate in much different ways  Total submission to extrinsic motivation  Leads to destruction of the individual  Which leads to destruction of the systems they belong to Page 98 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Focusing C omponents of Quality Q u ality  Q u ality Defined by the C ustomer  Obsessed with delighting them  Shared and developed by every employee   S cienti f ic A pproach Managing the organization as a system  Leadership Developing process thinking  B asing Decisions on Data  Understanding Variation   A ll O ne T eam S cienti f ic A ll O ne Trust as a foundation  A pproach T eam B elieving in People  Treating everyone with dignity  Win-Win-Win for C ustomers, Employees,  Suppliers, Shareowners Page 99 Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -