Developing Leaders for Tomorrow Today

March 21-23, 2012 AME United States Military Academy West Point, NY 1 Agenda

Wednesday March 21, 2012

12:30 – 1:30 Introduction Ken McGuire What is Leadership- A working definition Some Expert ‘opinions’ Participant Introductions

1:30 – 3:00 Leader Powered Lean: Joe Barto Heartbeat Leadership: The Theory. Homework Assignment

3:00 – 3:15 Break and Move to Bus

3:15 – 6:00 Insiders’ Tour of West Point USMA

6:30 USMA Cadet Introduction Joe Barto Dinner with Cadets at West Point Officers Club 2 Agenda

Thursday, March 22, 2012

8:00 – 10:00 Leadership and Character Building at West Point, LTC Dave Jones The Army and Beyond: Leadership and Ethics at West Point and Afghanistan

10:00 – 10:15 Break

10:15 – 12:00 Leader Powered Lean: Organizational Scheme Joe Barto Heartbeat Leader Perfect Day “Team Performance Snapshot” Practical Exercise Homework Assignment Review

12:00 – 1:00 Lunch

3 Agenda

Thursday, March 22, 2012

1:00 – 3:00 Developing Mission Essential Tasks and Behaviors Joe Barto New Leader Training Program Design 1st Day and next 59 Days: Doing the Right Things Right Reaching High Performance: Coaching Putting it All Together: Leader Identification, Training, and Development System “Team Performance Snapshot” Analysis Workshop 3:00 – 3:15 Break

3:15 - 4:00 Facilitated “So What?” Application Ken McGuire-Joe Barto Connecting the Dots: Translating from West Point to Industry Leadership

4:00 – 5:00 “The Courage to Lead”” Joe Barto

4 6:30 PM Dinner at Thayer Hotel Agenda

Friday, March 23,2012

8:00 – 11:30 “Greatness is Possible but Rare” Steven J Spear

11:30 – 12:00 Wrap-up Ken McGuire

5 Ken McGuire Introduction

What is Leadership- A working definition Some Expert ‘opinions’ Participant Introductions

6 Leader Powered Lean “Heartbeat Leaders First”

Class #32

Joe Barto Founder and President TMG, Inc. March 21-22, 2012 AME United States Military Academy West Point, NY 7 Or People are Better Than Materials!

8 Many Tools were Utilized…

But something was missing…

9 Back to the Basics, What is Lean?

Elimination of Waste Respect for People

Inspirational Utilization of leadership, Lean tool kit in profound pursuit of cultural & perfection in organizational safety, quality, change delivery & required! cost!

10 How is Lean Typically Implemented?

• What is the % of effort associated with the Respect for People pillar at most companies?

• What is the % of effort associated with Lean tools at most companies?

11 How is Lean Typically Implemented?

Elimination of Waste

Respect for People Drive by Kaizens Layoffs Focus on Command & Control Shop Silos & Local Lack of Optimization Alignment Middle Mgmt. Struggling “Managing”

12 How Should Lean be Implemented?

Respect for People

Elimination of Waste

High Level VS No layoffs Mapping C-Level Support Meaningful Area Value Stream Narrow & Deep Org. Link all Kaizens Recognition, empowerment, Hoshin Kanri coaching, & training Inspirational Leadership

13 Big Picture Thinking

Value Stream

Business People Process Performance

Alignment

Performance Continuous Increased Team Engagement Improvement Improvement Increased Customer Team Engagement Lean Satisfaction Rapid Decrease Production Costs Just Do Imp Leaders Led Its Projects Increased First Pass Yield Events Increased Employee Skills Proficiency Decrease Cycle Times Increase Production Capacity Decreased Turnover Increase Revenue 14 Decrease Cost Increase Profit Heart & Soul Lean

5S5S

Charts Charts SlogansSlogans AndonAndon Value Stream Maps

Team Character: Involve people in continuous improvement to eliminate waste, organize in value streams, train, empower, and coach. Go to Gemba!

15 J. Liker, Presentation15 to MWCMC, April 2006 Leaders or Managers

Business People Process Performance

…are Led by Leaders …are Managed by Managers • Focus on People • Focus on Things • Doing the right things • Doing things right • Inspiring • Planning Lean • Influencing • Organizing • Motivating • Directing Leaders • Build • Controlling • Creating the rules • Following the rules

16 17 Workshop Objective

I am a Lean Leader

My Team Plays to Win!

18 Who Before What

“Lean is all about Changing Behaviors”

19 Right Up Front

• People are irrational, unpredictable, and incredibly talented..is that strange? YES> deal with it! • Every person is extraordinary is some way • It is the Leaders Job to know what their people want • No point solutions • Long Term Thinking Required and steady pressure on a “Big Rock” carries the day.

20 “The most important process in your organization is the process that describes the relationship between the leader and their people. It is the only process that matters.”

Mike Petters President Northrop Grumman Newport News October 21, 2006

21 Core Beliefs

• Start with the end in mind! …take a Systems Approach

• Be in the business of making hard things easy…not easy things hard.

• People are good and want to do the right thing (The experience we create for our new people is a statement of our culture.)

• It is the organization’s responsibility to create an environment for its people to be successful…and our people’s vote counts more than ours.

• If you believe the workers can only be as good as their leader then you also believe leaders can only be as good as their leaders!

• Every organization has an un-limited bandwidth for change

• Culture vs. Change and Leading : Lean gives us the tools to Lead People

• Change Requires Trust —Trust Requires Stability—Stability Provides the Foundation for Continuous Improvement– Continuous Improvement means we Win and Win BIG!

• Business is a Team Sport

• Turf, Ego, and $$$ and the end of the day it is about… 22 Lean Accounting By: Jerry Solomon

23 Army Team 1976-1977

Ready to Play – I/ME 24 25 Business is a Team Sport

• Think Hard: Are we organized for success and doing the right things? – Right Plays – Right Rules – Right Positions

• Work Hard: Are we executing the plays? – Putting the right people with the right skills in the game to run the plays – Motivating them to produce and Win!

• Talk: Communicate – Everything is constantly changing – Providing Aggressive Leadership 26 Sole Responsibility

10 2 22 12 35 45 42 24 50 40

27 Task Force 2-4 Cavalry Tactical Operations Center Team Feb 21, 1991 - Northern Saudi Arabia

Ethos (Credibility) -- Pathos (Passion) -- Logos (Logical) 28 Vision and Mission

• Leadership without a Goal is irrelevant. (Goals) • Goals without a Plan encourage activity not productivity. (Plans) • Plans align the team and assign responsibility and authority from the Senior Executive to the value creating Teammate. (Accountability) • Alignment shows every team member what they need to do everyday for the team to Win. (Alignment) • The Team Wins when every team mate is engaged to execute the plan. (Engagement)

Engaged Leadership Reduces Uncertainty, Increases Situational Awareness, and is constantly re- 29 defining Vision and Mission Dream Team Business Goals

• Create an atmosphere of ownership • Increase profitability • Create a condition that produces “First Time Quality” • Continuously improve safety rates • Improve customer satisfaction through increased responsiveness to critical customer concerns • Continuously identify and eliminate waste

30 Workshop Learning Objectives

• Know the importance of Team Stability, Engagement and Trust • Understand how to organize your Team for success. • Understand that Recruiting, Trying Out, and Making the Team is a key value added activity. • Investing in the Current Workforce Development Process to optimize headcount while increasing productivity and production capacity. • Focus on Playing to Win by developing your most valuable assets . . 1st Line Leaders and their immediate Managers. • Know the principles of how to build your Leader Benchstrength to reduce long term risk. • Keeping Score and building Teams that win to reach consistent near-perfect performance • Be a Lean Leader

31 Are you in the right Workshop?

32 Do you believe it is possible to have a Dream Team at work?

33 When was the last time you were on a Dream Team?

How did you know?

Blue Slip Introductions and Exercise

(Lean Six Sigma History) 34 Dream Teams “Teams that achieve outstanding results while members experience a profound shift in how they see the world.” • Leadership: A monomaniac on a mission • High Trust, High Accountability, Self-Disciplining • Correct functional, technical and team skills • Compelling purpose inspires and stretches members to make the Team the top priority • Shared ownership gives each member personal responsibility for Team success • Just enough structure to focus group energy on Winning • Full engagement shows in member energy and enthusiasm • Embracing differences pulls teams together • Unexpected learning accelerates the Team’s journey to consistent near perfect performance • Playing hard together strengthens relationship bonds • Use conflict for good • Team results usually far exceed individual expectations: They Win and Win BIG!

35 Take a Blue Slip

What do you want to learn today?

Voice of the Customer

36 Today we will generate a lot more questions than answers…

….and that is OK

37 AHA Moments: 1 Piece Flow

Blue Slips

38 The Power of People: Increasing Team Engagement to Create Consistent Near Perfect Performance

Team Engagement Theory

39 • What is Engagement? – The Theory • How do you measure it? – Engagement Assessments • How do you improve it? – Methods and Best Practices

40 Team = Leaders and the Led

3 Teams (at least)

41 Team Engagement Requires Trust • Leaders will provide: • Led will: – Clear direction – Treat the company – Appropriate like their own Resources – Hold each other – Expert Advice accountable for doing the right thing – Feedback and Coaching – Give early warning of – Growth Opportunities problems – Have the courage to – Reward and Praise ask questions – Fair Treatment 42 Culture of Trust

“Need to Know” or “Obligation to Share”

43 “Trust”

• Exists in very personal, irrational, and operationally volatile terms between the Leader and the Led

• Trust is a function of Situational Awareness and Instinct tempered by Facts

• High Trust increases SPEED and decreases COST

• Low Trust decreases SPEED and increases COST

44 Projected Earnings Per Share & Operating Income to Increased Engagement Projection In a 12-month study across 50 companies, companies with the highest percentage of engaged workers had a 19% increase in operating incomes and a 28% increase in earnings per share.

Companies with the lowest employee engagement rates showed a 33% decline in operating incomes and an 11% decline in earnings per share.

45 Source: "The Global Workforce Study" by Towers Perrin, October 2007. Vertical Dyad Linkage Theory The Linkage Power Depends On…

1. Leaders Managing Personal Relationships – Vertical Dyad: Leader Led x number of direct reports – Employee performance, productivity, and engagement depend on their relationship with their IMMEDIATE Supervisor

2. Leader and Led continuously Creating Shared Mutually Supportive Goals – The Employee’s Goals and Needs – The Organization’s Goals and Needs as articulated by the Leader – Requires continuous Goal Alignment within Developmental Plans and continuous Feedback

46 Leader to Led Linkage

Authentic Communication Leader Led

Communication Goal Awareness Alignment

Organizational Goals Individual Goals – Cost – Compensation – Schedule – Opportunities – Responsibility – Quality – Work – Safety Environment – Recognition

Can only occur when there is a conversation between the Leader and the Led about the Led! 47 Engaged Teammates (and Leaders!)

Ind Goals Leader Team Ind GOAL Goals Ind Led(E) Led(D) Led(AD) Goals

Can you measure and improve Engagement?

48 Signs of Engaged Teammates Builders • High Trust • Low Task Definition Needs • High Relationship Needs • Psychologically committed to the company • Consistent levels of High Performance • Innovative and a drive for efficiency • Intentionally build supportive relationships • Clear about role outcomes expected • Passionate, high energy, and enthusiastic • Never run out of things to do • Loyal to workgroup and company • Broaden what they do and build on it • Positive constructive criticism

49 Signs of Actively Disengaged Teammates Cutters • Low Trust • High Task Definition Needs • Low Relationship Needs • Physically present but psychologically absent • “What can I take” rather than “what can I give” • Share unhappiness about work with peers • “I’m OK but everyone else is not” • Service prevention rather than service provision • Not productive but always has excuses • Inability to move from problem to solution • Normal reaction starts with resistance • Low commitment to company • Might sabotage or manipulate solutions • Isolation, low trust

50 Signs of Dis-Engaged/Satisfied Teammates Maintainers

• Meeting the Basics • Confusion or inability to act with confidence • Low risk response • No real sense of achievement • Making up their own game • Not always committed • Show negativity but not underground • Situationally Engaged

51 52 Step 1: Current Team Status? Team:______

Leader:______TEAM ROSTER Date:______

(Led) ______Actively Engaged ______Disengaged ______

Disengaged

53 Strategic Goal Engaged Team Create a system producing Engaged Leaders and Teammates focused on attaining consistent near perfect performance.

54 Developing an Engaged Team Strategy • Increase the Engaged • Decrease the Actively Disengaged Facts: – Little movement from Actively Disengaged to Engaged – More movement from Engaged to Actively Disengaged due to Leaders breaking the Goal Alignment Contract/Agreement

55 The Key to Success Disengaged/Middle Group

1. New Employees make a decision within first 48 - 72 hours from introduction to immediate supervisor. 2. Dis-Engaged Employees are those “…just putting in my time” but not actively doing harm. They may be Situationally Engaged. They can be influenced by Leaders and their Engaged Teammates.

Strategy: Focus on the Disengaged/Middle Group to move them into the Engaged/In Group as quickly as possible.

What is your plan to create Engaged teammates? One at a time!

56 Team:______Step 2: What is your plan to improve it?

Leader:______TEAM ROSTER Date:______(Led) ______Retain by Continuous ______Placed Outside of Team by Goal Alignment Leveraging Normal Churn ______Opportunities ______Actively Engaged ______Disengaged ______

Disengaged Move to Engaged Group by High Touch/High Contact/High Communication and Deliberate Matching 57 Engagement Improvement Tools

1. Change your Leadership techniques based upon Engagement Assessment results/insights 2. Better matching to job which leverage strengths vs. mechanical job assignment 3. Use your Engaged Teammates to recruit Disengaged Team Mates 4. Task Based Coaching 5. Provide Training 6. Focused Leadership under normal operational circumstances 7. Leverage internal Churn Opportunities 8. Take advantage to external Turnover 9. Focus on New Teammates to create Engaged Teammates Quickly 10. Improve Leader to Led matching; especially with New People 11. Allow subordinate Leader input/selection 12. Improve Team Stability 13. Train Teammates in key engagement skills 14. Personnel Actions as required 15. Change the Batting Order

16. Build a Better Plan 58 Engagement vs. Satisfaction Test Question

59 Industry Overview

• Engaged: 25% • Not Engaged: 59% • Actively Disengaged 16%

In 2009 the number of Actively Disengaged Workers has increased 21% over 2008.

60 Source: Talent Management September 2010/ CLO Magazine January 2011 & Gallup What the Workforce Think…

• 38% think their leaders have a sincere interest in their well being • 47% think their leaders are trustworthy • 42% think their leaders inspire and engage them • 53% question whether their leaders have time for the people aspects of • 61% question why their leaders do not deal with poor performers

61 Source: i4cp Hmmm…

• Engagement level of the top performers is declining 25% per year since 2008. • 60% intend to leave their jobs as the economy improves

62 Source: i4cp Opportunity for Improvement

• 25% of the working population are ignored by their supervisor

– Actively Disengaged: 40% of them are in their workplace – 58% are Not Engaged – 2% are Engaged

63 Source: Gallup i4cp Engagement Data

29%: Leaders are acting to improve engagement

15% of employees believe their leader knows how to engage the workforce

24% of companies are training leaders to engage their workforce

64 Source: i4cp So What: We MUST teach, coach, practice and measure the Leader’s sole responsibility for improving Team Engagement?

65 We Build Great People who do Extraordinary Things!

Marquip Ward United

66 Measuring Team Character Exercise

See Handout

67 Alignment:

1. Every teammate understands what we do and how we make . (Business 101) SD D A SA

2. We are an aligned, self-disciplining team from the Plant Management to the 1st Line Supervisors where we know our responsibilities and the responsibilities of our teammates. (Roles and Responsibilities)

SD D A SA

68 Leadership:

3. What percentage of your current leadership structure fall in the following categories (Current Leaders – Current Responsibility Performance Improvement)

High Performing (Consistent Best Leaders) ____%

Developmental (Moving in the Right Direction) ____%

Dysfunctional (Should not be in the position) ____%

4. . We have a solid “Bench” of future leaders who are ready to step into leadership positions with minimal preparation and low risk to business performance? (Future Leader Identification, Training, and Development System)

SD D A SA 69 Team Engagement:

5. The Engagement Distribution of our organization is: (Team Engagement Improvement System)

Engaged (Go To Teammates) ___%

Disengaged (Getting a paycheck) ___%

Actively Disengaged (Doing positive harm) ___%

70

Business Performance:

(Return on Investment: Process or People)

6. How good can you be? If you ran a perfect plant how much better could you be in terms of increased productivity and earnings?

____ %

71 Individual Engagement Assessment Exercise Handouts

72 West Point Tour

73 LTC Dave Jones

74 …It is All About Business Performance!

REQUIRED Level of Performance

Resources Leadership Required

Elimination of Waste Respect for People Measures of Performance of Performance Measures CURRENT Level of Performance

75 “The Business of People”

Mission: Provide “Heartbeat” Leaders the right process, with the right people in the right numbers, in the right skills, at the right time, at the right cost to meet customer demands.

Vision: An agile, competent, engaged, TEAM capable to move at the speed of business while continuously improving to attain consistent near perfect performance.

76 Dream Team Hypothesis

If we align the organization and improve leader behaviors then we will increase team engagement and improve business performance.

77 Organizing to Win!

Theory and Application

78 Lean Goals • Improve Quality (1st Pass Yield) • Reduce Lead Time to Increase Revenue through Customer Engagement • Reduce Total Costs • Eliminate Waste Through Near Real Time Situational

Awareness over: • Man • Method • Machine • Materials 79 Organizational Scheme

The Plays… Horizontally and Vertically

80 Org Chart

81 Organizational Scheme

GM

OM OM OM

GM: General Manager SS SS SS OM: Operations Manager SS: Shift Supervisor 1S 1S 1S 1S: 1st Line Supervisor MU: Make Up Supervisor GT MU GT GT: Go To Employee E: Employee E NE NE E NE: New Employee

82 Vertical Dyad Linkage Organizational Alignment

• We continue to be organized vertically in stovepipes yet we create value horizontally. - - Jim Womack • Long Tail manufacturing requires greater agility yet we rarely change the way we operate to create the conditions for increased agility. • We are running different plays but from the same formation creating waste everyday.

83 “My Leaders are working harder than ever but we don’t seem to be making much progress”

84 Insight

• I love my leader; I hate my company

• Why? – Because the company “forces” my leader to do bad things. – My leader cares about me but they are in a “no win” situation. – I would never want to be a leader in my company

85 Must Knows

• Which Leader is the “Heartbeat” of your business?

• Which Leader holds the “Heartbeat” Leader in the palm of their hands?

• Have you created an environment where they can Win?

86 It’s the Lines

Heartbeat Leader

Holds the Heartbeat Leader

87 The SYSTEM that produces value horizontally is your…

ORGANIZATIONAL SCHEME

88 How We Spend Our Time

Value-Adding Activities ….transform materials and information into products the customer pays for

Non-Value-Adding Activities ….consume resources, but don’t directly contribute to the product and/or the customer

Non-Value-Adding but Required ….consume resources, but are required by government regulation or company policy

89 Value Stream Map

Engineering Preparatio Marketin / Planning/ Fabrication/ Paint/ Assembly/ n/ g/Sales Supply Machining Blast Testing Shipping Chain

90 Core Business Data Element

Completed Trucks Shipped On Time

Truck Schedule to Target Labor Hours

Core Daily Business Activity 91 Core Daily Business Activity

Truck Schedule to Target Labor Hours

Supervisors Holds the Heartbeat

Fabrication Paint Assembly Leads Leads Leads Heartbeat

Engineering Fabrication Paint Assembly Shipping & Planning & Machining & Blast & Testing & Site Assembly

Fitter/Welders, Mech./Elec. Assemblers, Painters, Machine Operators, Prod. Inventory Coordinators92 QA Inspectors QA Inspectors QA Inspectors Organizational Scheme

Production Line Uptime

NM NM NO O MH M M M M DWHR PSG CM(FE) PSG CM(BE) PSG LP WHR

PM: Plant Manager CS PRM: Production Manager QM: Quality Manager EM: Engineering Manager AM: Administration Manager PDM: Production Dept. Manager HRM: Human Resources Mgr MS CHS GPS PCM: Production Control Mgr PTM: Production Training Manager GPS: Gen. Production Supervisor CHS: Changeover Supervisor CS: Production ‘Crew’ Supervisor MS: Maintenance Supervisor EM QM PRM CM(FE): Chief Maintainer Front End CM(BE): Chief Maintainer Back End PSG: Production Support Group LP: Lead Palletizer M: Maintainer PM NM: New Maintainer PTM HRM AM LO: Lead Operator O: Operator NO: New Operator WHR: Warehouser (DWHR = Day Warehouser) PCM MH: Material Handler 93 93 Servant Leadership Toyota Style

Suppliers ------Team Members ------Customers

Team Leaders

Group Leaders

Asst Manager and Manager

Asst & General Manager

Toyota Vice President Leader to Led Ratio 1:5 President

94 Leader Lanes

Current Future Perfect State SUP MGR State MGR PM State PM “Today” “Tomorrow” “Perfection”

Time

SUP

Problems

95 Summary • Start with the end in mind… • Organization Charts show reporting relationships • Organizational Scheme describe how you run your business and it changes by itself • Is there Waste in your organizational scheme? • Do your leaders know their lane and more importantly does everyone else? • Are you Organized to Win? • You MUST get this right!

96 Respect for People Processes

• Organizational Scheme Alignment • On Boarding: Creating Engaged Teammates from First Contact • Teammate Skills Development • Current Leader – Current Job Performance Improvement System • Future Leader Identification, Selection, and Training System • Executive Leadership & Strategic Planning

97 Talent Acquisition and Retention System

Beliefs: Engaged Employees are our Most Valuable Assets

Great Leadership creates Engaged Employees

A World Class Talent Acquisition and Retention System is mission critical to business performance

Sustainable Real Profit Stock Growth Increase Increase

Engaged Engaged Customers Employees On Boarding Identify The Great Individual Right Fit Leaders Strengths

On Boarding Talent Acquisition and Retention

Adult Building Pipelines Education Business Metrics: Temp - Decrease Cost of Hiring Agencies - Reduce Attrition (pre- and post- hiring) - Reduce Hiring Cycle Time Community - Improve New Hire Integration Colleges - Improve New Hire Job Performance - Decrease New Hire Time to Competency College Generate Transfers Labor Orient, High Schools Screen Interview Common 1st Job Req’s Tech Schools & & Skills Skills Identify Assess Training Development Other Candidates Skills Companies Current Employees

State Employment Increase Cost Hiring Decrease Cost Offices Decision Military

99 Right Person/Right Job Move the Employee in the Right Direction

Go To Person

High Quantity High Quantity Low Quality High Quality Quantity of Work Work of Quantity Low Quantity Low Quantity Low Quality High Quality

New Person

Quality of Work 100 What is our plan to move our people along the correct developmental path? Life Cycle Skills Development Program “A Guide” Complex Tasks Pre-Employment V

Employment Basic Intermediate Advanced Mentor Skills Skills Skills Skills Skills Soft Skills Initial IV Development Entry Basic Intermediate Advanced Skills Training Training Training Training Practical Practical III Practical Application/ Application/ Application/ Skills Coaching Coaching Coaching Evaluation II Evaluation Evaluation Evaluation

Experienced Personnel I

101 Competency Level Employee Career Leader Development System

Current State Perfect State

• Leader Development conducted • Systematic Approach to Leader informally or not at all. Development • Usually best operators promoted • Manager’s are Responsible as the to Supervisors Primary Trainers of their • Experience gained over time Supervisors • Many training courses available • Manager’s are responsible to tailor but not mapped to critical tasks. skill development to each • Undocumented program that is individual supervisor and each dependent on individual operational area. Management implementation • Leader Development Systems • On the Job Training is ad hoc with mapped directly to Performance few Training Materials available Review System on the Job Site.

102 Future Leader (Benchstrength) Identification, Training, and Development System

Step Step Step Step Step Step Step Step Step Step 1 2 3 4 5 6 7 8 9 10

Leader Decision Candidate Candidate Structured Leader High New Role as Assessment Transition to to Transition Qualification Qualification Performance Development Basic Training Basic Training Self-Screening StructuredSelf- Leader Potential LeaderPotential Promotion/ Hiring Hiring Promotion/ Substitute Leader Substitute Performer High in Leadperson / Sup. Sup. / Leadperson Requirement to fill fill Requirement to Coaching Program Coaching Leadership Position Position Leadership ImprovementSystem (Mission Essential Task Based) EssentialTask (Mission

Identification Training Decision + 90 Days Development

Start with the end in mind.

103103 Executive Leadership

Value Stream

Business People Process Performance

Alignment

Performance Continuous Increased Team Engagement Improvement Improvement Increased Customer Team Engagement Lean Satisfaction Rapid Decrease Production Costs Just Do Imp Leaders Led Its Projects Increased First Pass Yield Events Increased Employee Skills Proficiency Decrease Cycle Times Increase Production Capacity Decreased Turnover Increase Revenue 104 Decrease Cost Increase Profit Executive Business: The Resourced Plan Creating the Conditions for Success

Define

Measure

Analyze

Improve

Control

105 Synchronizing People to Process Jul 2007 - Jul 2008

106 106 Synchronizing People to Process Aug 2008 - Aug 2009

107 107 What group represents the biggest risk for the future of your business? (Rank Order with 1 the Highest Priority)

__ Acquiring New Talent __ Hourly Workforce __ 1st Line Supervisors __ Middle Management __ Non-Production Leaders & Staff __ Plant Managers __ Executive Staff

108 Which part of the People Life Cycle requires the most urgent attention? (Rank Order with 1 the Highest Priority)

__ Organizational Scheme __ New Talent Acquisition and Retention __ Incumbent Workforce Development __ Heartbeat Leaders Performance Improvement __ Building Future Leader Benchstrength __ Executive Leader Development

109 Homework Assigment

110 Expectations

• What do you expect from your team?

• What do you expect from your Leader?

• What can they expect from you?

111 See Hand Out Lunch

113 If Quality and Safety are King Schedule is GOD

1st Pass Yield Doing it Right the First Time Don’t start until 4Ms are straight

114 I don’t want people to come to work (Knowers) I want them to come to think (Learners)

115 “The more you do in Lean the further you get away from Perfection”

Jerry Solomon

116 “Carry your wounded. Shoot the Stragglers”

117 Do what you say you will do when you say you will do it

118 It is easier to ACT your way to a new way of thinking than think your way to a new way of behaving.

If you don’t live your beliefs you will soon believe how you live. Father Lafratta

119 AHA Moments: 1 Piece Flow

Blue Slips

120 Homework Assigment

121 Expectations

• What do you expect from your team?

• What do you expect from your Leader?

• What can they expect from you?

122 The Leader Development Challenge

Heat Beat Leaders

“Playing to Win!”

123 If People are Hard… Leaders are Harder!! • Every Leader is at a different place developmentally

• Every Leader must take responsibility for their own Development; It is a High Performance Behavior

• The trick is to make Leader’s better at what they are good at as opposed to making them something they are not.

• Leaders are Chess Pieces Not Checkers! Each one has different goals, different potential, move differently, and has unique talents. (Buckingham)

• Bell Curves are unacceptable

124 High Performing Leaders have no idea how good they can be…

and they are personally dedicated to their personal journey to consistent near-perfect performance.

125 58% of Leaders have never received any training • What they wish they had gotten: – Handling Employee Conflict – Motivating Teams – Providing Feedback – Finding Resources – Creating Career Paths for HIPOs

June 2011 T&D Magazine 126 Agenda • Improving Current Leader Performance • Building Future Leaders

127 Leader Development System

Current State Perfect State

• Leader Development conducted • Systematic Approach to Leader informally or not at all. Development • Usually best operators promoted • Manager’s are Responsible as the to Supervisors Primary Trainers of their • Experience gained over time Supervisors • Many training courses available • Manager’s are responsible to tailor but not mapped to critical tasks. skill development to each • Undocumented program that is individual supervisor and each dependent on individual operational area. Management implementation • Leader Development Programs • On the Job Training is ad hoc with mapped directly to Performance few Training Materials available Review System on the Job Site.

128 One Bite at A Time

Identify Select Train Prepare Support Perform Coach

60 days 7 days 1st 7 days 60 days Day

129 Goal Alignment System

Leader LedLed LedLed Goal Communication Awareness Alignment Performance Reviews Organizational Goals Individual Goals Individual – Compensation – Cost Individual DevelopmentIndividual – Opportunities – Schedule Development DevelopmentPlans – Responsibility – Quality Plans – Safety Plans – Work Environment – Recognition

Resources 130 Required Behavior Focus

• Skills and Attitudes are extremely difficult to describe, measure, or observe.

• Behaviors are observable actions that can be replicated.

• We KNOW how the Best Performers Behave!

• Behaviors change Leads Culture change! 131 5 Points of Learning Need

1. Learning for the first time 2. The need to know more 3. When applying and trying to remember 4. To assist problem solving/issue resolution 5. Things Change (Lean)

132 What is the #1 Barrier to Productivity?

1. Inefficient planning of the work. 2. Organization Structure does not support work flow. 3. Poor leadership in demonstrating and leading change.

Effect: 28.8% of Total Labor is Waste as a result of management or leader issues.

Or 33.5 days per Full Time Equivalent

HR Magazine September 2006 133 Opportunity for Improvement

• “8 for 8”

• How many productive hours are you getting from your production worker for every 8 hours paid?

134 Heartbeat Leader

Perfect Day

Exercise

135 Defining METL Based Behaviors

1. Go find the High Performers 2. Find out what they do and don’t do everyday 3. Write it down 4. Agree on the Mission Essential Tasks and High Performance Behaviors 5. Ensure Alignment with Business Goals and Value Stream

136 High Performing Leaders act like…

Do you and your leaders know what RIGHT and WRONG look like?

137 Observable Behavior Example

Technically Competent: – High: 9/10 times when asked a question gives the right answer immediately and work continues. – Developmental: 5/10 times gives the right answer and tells the person they will get back with them with the right answer causing waste. – Dysfunctional: Gives the person the wrong answer causing positive harm to the organization.

138 Process Objective Move Leader to the Left

HIGH: DEVELOPMENTAL DYSFUNCTIONAL All Leaders should be Leaders displaying the All Leaders displaying High Performing and behavior traits in this the behavior traits in this displaying the behavior column should be column are creating traits in this column. involved in a defined harm in the organization. Developmental Plan to developmental plan. Behavior needs to be focus on sustaining Focus on moving them changed ASAP or the performance to the left Leader needs to leave.

Task

Builds a. Knows current Team a. Knows current Team a. Does not know Team Engaged distribution by name and has a distribution by name but does distribution. Teams deliberate plan to ensure all not have a plan to improve it. b. Leader is disengaged teammates are engaged. Works around it. c. Too busy to talk to his people b. Continuously maintaining the b. Knows it is important and is Engagement Levels working to improve engagement 139 Heartbeat Leaders METL to Behaviors Practical Exercise

Best Day Description Must Do Tasks Behaviors Development

140 Foreperson METL

1. Leads 2. Communicates 3. Manages the Work 4. Encourages Waste Elimination 5. Knows the Score 6. Plans 7. Allocates Resources

141 Supervisor METL

1. Identifies and Removes Barriers 2. Communicates 3. Maintains Situational Awareness 4. Negotiates 5. Technical Competence 6. Client Management 7. Committed to Success

142 Leader Mission Essential Task List (METL)

Lead / Senior Program Craft Director Lead Superintendent Craft Manager Foreperson Leadperson Managers Supervisor Superintendent

Identifies and Leads Leads Removes Leads Leads Leads Leads the Work Barriers

Proactive Communicates Communicates Communicates Communicates Communicates Communicates Communicates Communication

Maintains Maintains Synchronization Synchronization Synchronization Removes Manages the Situational Situational Situational of Current Ops of Current Ops of Current Ops Barriers Work Awareness Awareness Awareness

Develops Creates Encourages Continuous Continuous Waste Resolves Conflict Negotiates Waste Improvement Improvement Elimination Elimination Culture Leaders

Manages Cost Technical Develops Craft Knows the Knows the Knows the Craft and Schedule Competence Leaders Score Trade

Knows Develop Leader Client Client Develops Future Develops Matches Job to Customers and Planning Pipeline Management Management Workforce Subordinates People Suppliers

Stewardship of Stewardship of Committed to Committed to Stewardship of Prioritizes Allocates the Program the Program Success Success the Program Resources Resources

143 ASSESSMENT EXAMPLE

144 METL Observations

• Leading and Communicating are universal tasks. • What tasks are not Mission Essential? – Fewer is better • What is Mission Essential and not included? – Must get the right tasks even if it is not currently demonstrated • Is the Current State the way you intended to run your business? – Any surprises or Hmmmms • Given the Current State are there Opportunities for Improvement? (Developing a Future State) – How would you change the Organizational Scheme?

145 Heartbeat Leader & Heartbeat Leader Holder

METL and Behaviors

Exercise

146 Break

147 Heartbeat Leader

What do they need to know on their 1st Day on the Job?

Exercise

148 Developmental Phases

1. Do the right things st 2. Do the right things right } Prior to 1 Day on Job

3. Do the right things better, faster and more effectively 4. Are we doing the right things? Re-defining the right things 5. Prepare for next career path position

It is our Choice on when to place the New Leaders 1st Work Day…

149 Example New Leader Basic Training Tasks

1. Introduction 2. Business 101 3. Plant Safety for Leaders 4. Establishing Trust from Day One 5. Using the Computer (ERP, SharePoint, etc.) 6. Daily Operations and Requirements 7. Policies and HR Rules 8. Leader Support Network Roles and Responsibilities

150 Building Future Leaders

Developing Bench Strength

151 3 Criteria for Future Leader Identification • Opportunity • Desire • Potential

Leader is a ½ a Word… Leadership is situational 152 Leader Pre-Requisites

• Like People • Written Communications • Oral Communications • Business Scorekeeping • Ability to gather, analyze, and resolve issues based upon reliable information

153 Lean Leader 1st Day Requirements

1. Knows their Process 2. Improves Team Engagement 3. Knows their Customers and Suppliers (SIPOC) 4. Knows their Business and can interpret data to make better decisions 5. Identifies and Eliminates Day to Day Waste 6. Identifies and Communicates Systemic Waste 7. Prioritizes and Controls Tempo 8. Eliminates Waste & Improves Business Performance 9. Is Engaged… Leaders never get a day off!

154 Signs of Engaged Leaders Builders • High Trust • Low Task Definition Needs • High Relationship Needs • Psychologically committed to the company • Consistent levels of High Performance • Innovative and a drive for efficiency • Intentionally build supportive relationships • Clear about role outcomes expected • Passionate, high energy, and enthusiastic • Never run out of things to do • Loyal to workgroup and company • Broaden what they do and build on it • Positive constructive criticism

155 Signs of Actively Disengaged Leaders Cutters • Low Trust • High Task Definition Needs • Low Relationship Needs • Physically present but psychologically absent • “What can I take” rather than “what can I give” • Share unhappiness about work with peers • “I’m OK but everyone else is not” • Service prevention rather than service provision • Not productive but always has excuses • Inability to move from problem to solution • Normal reaction starts with resistance • Low commitment to company • Might sabotage or manipulate solutions • Isolation, low trust

156 Signs of Dis-Engaged/Satisfied Leaders Maintainers

• Meeting the Basics • Confusion or inability to act with confidence • Low risk response • No real sense of achievement • Making up their own game • Not always committed • Show negativity but not underground • Situationally Engaged

157 Team:______

Leader:______Leader ROSTER Date:______

(Led) ______Actively Engaged ______Disengaged ______

Disengaged

158 1st Day and the next 59 Days:

Doing the Right Things Right

159 Goal: Leaders First Day is a Performance Day not a let’s see how it goes day

160 Heartbeat Leader

What is the Experience we want the New Heartbeat Leader to have?

Exercise

161 Reaching and Maintaining High Performance

162 Developmental Phases

1. Do the right things st 2. Do the right things right } Prior to 1 Day on Job

3. Do the right things better, faster and more effectively 4. Are we doing the right things? Re-defining the right things 5. Prepare for next career path position

163 Does Not Send to Know How to Established Training Course do the Task Leader Task Coach – Developmental Knows How High Performing Supervisor/ Strategy Matrix to do the task Manager – needs On the Job Help Task Coach – Initial Assessment High Performing Support Staff Reassessment Knows the Job but has Spend the Day trouble with High “putting it all Performing Supervisor at Together” their Job Site

Not Knows their Daily area but Reinforcement by Required Leader needs Focused Leadership ID Support Shadowing Opportunity 164 Coaching Overview

Coaching requires a series of scheduled planning sessions, briefings and reporting & intake sessions.

Advantages of Coaching

• Matches the experience of a high performing leader in a particular attribute with another leader needing focused help • Performance Driven • Potentially Linked to the Performance Agreement • Focused on just one assessment attribute identified for improvement • Short term engagement (usually 6 – 8 weeks) • Goal is immediate behavioral change and improved performance • Occurs on the job with minimal interference with routine operations

165 Steps in the Coaching Process 1. Preparation for Goal Alignment Session 2. Goal Alignment Session 3. Coaching Matching/Line-Up and Resource Session 4. Line-Up and Resource Review Approval 5. Coaching Group Kick Off Meeting 6. Individual Coaching Event Focus Sessions 7. Attribute Focused Coaching 8. Senior Leader Gemba/Walkabout 9. Individual Post Coaching Sessions 10. Leaders Coaching Results Presentation to Senior Leader 11. Leaders (2 levels up) out brief with Coached Leader (Development Session) 12. Coaching Process Continuous Improvement Discussions

166 Coaching Process Timeline

1. Facilitate Goal Alignment Sessions - Administer ‘The Coaching Process’ Course to all Coaching Program Participants. - Confirm the Coach/Coachee Population with Leaders. 2. Coaching Match Up & Resource Session. - Coaching Facilitator: Coach: TBD Leader and Coachee: GM, Ops Mgr, Ops Support Mgr, CI Mgr - Confirm the Coach/Coachee Population with Leaders. 3. Coaching Line Up and Resource Approval. Senior Leader

4. Coaching Group Kickoff Meeting. (Participants: All Coaches, Direct Supervisors of those being Coached, Management Team) * Individuals being Coached do not attend this meeting.* 5. Individual Coaching Event Kickoff Sessions. (Participants: Coach, Coachee, Direct Supervisor. 15-20 min. each)

6. Execute Task/Behavior Focused Coaching. As required

7. Senior Leader Walkabouts.

8. Individual Post Coaching Sessions. (Participants: Coach, Coachee, Direct Supervisor. 15-20 min. each) 9. Leaders Coaching Results Presentation to Senior Leader.

10. Leaders (2 Levels Up) out brief with Coached Leader. (Development Session)

11. Coaching Report Out 12. Coaching Process Continuous Improvement Discussions (Coachees and Senior Leader) 167 Coaching Exercise

Roles and Responsibilites

168 Future Leader (Benchstrength) Identification, Training, and Development System

Step Step Step Step Step Step Step Step Step Step 1 2 3 4 5 6 7 8 9 10

Leader Decision Candidate Candidate Structured Leader High New Role as Assessment Transition to to Transition Qualification Qualification Performance Development Basic Training Basic Training Self-Screening StructuredSelf- Leader Potential LeaderPotential Promotion/ Hiring Hiring Promotion/ Substitute Leader Substitute Performer High in Leadperson / Sup. Sup. / Leadperson Requirement to fill fill Requirement to Coaching Program Coaching Leadership Position Position Leadership ImprovementSystem (Mission Essential Task Based) EssentialTask (Mission

Identification Training Decision + 90 Days Development

Start with the end in mind.

169169 Step 1: Requirement to Fill Leadership Position

Who: Vice President of Manufacturing What: Utilize input Process Area Managers and plant expansion plans to determine need in terms of quantity and time to competency. Can we do the work with the Current Leads? If Yes: Stop If No: How many per shift and per process area? When do we need them to reach initial competency? Reasons to generate a requirement: Increase in Plant Capacity to a 2-3 Line Plant - Attrition (actual or anticipated) - Increase Bench Strength - Best Athlete Available Time: As required Output: Leader Requirement and a Projected ‘Need Date’.

170170 Step 2: Candidate Self-Screening

Who: Prospective Candidate for Leadperson position What: • Candidates are offered the Liebherr Leadership Advancement Self- Screening tool to learn about the requirements and expectations, make an ‘initial interest’ decision • Features: Job Requirements – Mission Essential Task Descriptions - Good and Bad of the Job - Career Paths – Expected Compensation and Benefits – Clear Steps in the Promotion Process Time: As Required = No more than 20 minutes of seat time Output: • Candidate Self Selects Out of Process • Candidate answers the Job Posting after a more informed judgment of actual job requirements.

171171 Step 3: Leader Potential Assessment

Who: Prospective Candidate, HR or Department Manager Input From: Current Lead/Supervisor, Process Area Manager, HR What: • Meets Candidate and to explain the purpose and process of conducting a Leader Potential Assessment • Verify the Prospective Candidate meets all prerequisites • Review ‘Next Level Up’ METL Assessment and Job Description • Current Lead/Supervisor conducts the Assessment on their Prospective Candidate • Prospective Candidate conducts a Self-Assessment • Prospective Candidate reconvenes with Current Lead/Supervisor, Manager and HR representative for Assessment Comparison and Goal Alignment Session to chart path forward. Time: 2-3 hours in total Output: Proceed: All prerequisites are met and a common understanding of the Mission Essential Tasks and Job Expectations is achieved. Move forward to Self-Enrollment Training Opportunities and Substitute Leader Qualification. Wait / Do Not Proceed: Prerequisites unmet or candidate self-selects out. Chart a path to eligibility and communicate.

172 172 Step 4: Structured Self Development (METL-Based)

Who: Prospective Candidate, LME Training Program Manager, SMEs What: Prospective Candidate self-enrolls in METL-Based Training Modules before becoming eligible for Substitute Leader Qualification and Churn Opportunities.

Time: Depends on number of METL Modules developed. Recommend Instructor Led Training delivery of Web-Based CBT Module. Output: Yes: Prospective Candidate acquires the critical knowledge needed to be successful at the next level and becomes eligible for Substitute Leader Qualification and OTJ Churn Opportunities. No: Prospective Candidate self-selects out or does not complete the training for any reason. Returns to current job w/o issue.

173173 Step 4: Structured Self-Development (METL)

Mission Essential Task (‘METL-Based’) Training Modules LEADPERSON

1. Introduction to Roles and Responsibilities 2. Leading to Win/Creating Engaged Teams 3. Communicates 4. Maintains Situational Awareness 5. Technical Competence 6. Matches Jobs to People 7. Does Jobs Right the First Time 8. Develops Subordinates 9. Seeks Continuous Improvement 10. Leads and Putting It All Together

174174 Step 4: Structured Self-Development (METL) Mission Essential Task (‘METL-Based’) Training Modules SUPERVISOR

1. Introduction to Roles and Responsibilities 2. Leading to Win/Creating Engaged Teams 3. Communicates 4. Maintains Situational Awareness 5. Technical Competence 6. Uses the Computer 7. Synchronizes Operations 8. Removes Barriers 9. Develops Subordinates 10. Seeks Continuous Improvement 11. Leads & Putting It All Together 175175 Step 5: Substitute Leader Qualification

Who: Prospective Candidate, Leads/Supervisors (as Churn Events occur), Process Area Manager What: Upon completion of the METL-Based Modules; the Prospective Candidate becomes eligible to serve as a Substitute Leadperson or Substitute Supervisor (1 Level Up) during a planned, structured Leader Churn Event. All Churn Events include: • Advanced notice to the current and substitute leader. • A ‘Line Walk’ and ‘ Personnel Discussion’ with the substitute and current leader prior to the event. • A ‘Perfect First Day’ list for the Substitute Leader. • A dedicated Coach for the Substitute Leader during the Churn Event and clear communication to the workforce about the sub. • A structured After Action Review with the substitute leader, direct supervisor and the coach. Time: Depends on the duration of the individual Leader Churn Events. Potentially 1 day up to several weeks. Output: After Action Review discussion and documentation.

176176 Step 6: Promotion/Hiring Decision

Who: Prospective Candidate, Hiring Supervisor, Hiring Process Area Manager, VP of Manufacturing, Human Resources What: After sequential completion of Steps 1-5, the Prospective Candidate will go through the LME Promotion Process, with inputs from Leader Churn After Action Reviews, Training/Personnel Records, Current Lead/Supervisor, Hiring Supervisor/Manager, Human Resources. Time: Depends on promotion process cycle time and posting requirements. Output: Yes: Candidate is promoted into the full-time leadership position and enters into a formal Coaching Program. Tracking of individual development is transitioned to Halogen System for Individual Development Planning, annual Leader Performance Appraisals, etc.

177177 Step 7: Leader Basic Training

Who: New Leader(s), Subject Matter Experts/Instructors, LME Training Program Manager What: After being selected to become a new Leader via the LME Promotion Process, individuals will enter the Liebherr Leader Basic Training Program prior to beginning in the new role. The Program will include the following detailed modules: 1. Introduction 2. Liebherr Mining Equipment – Business 101 3. Plant Safety for Leaders 4. Establishing Trust from Day One 5. Using the Computer (BaaN, ERP, SharePoint, etc.) 6. Daily Operations and Requirements 7. Liebherr Policies and HR Rules 8. Liebherr Leader Support Network 9. Leveraging the Halogen Performance Management System Time: 1 Week (Prior to officially beginning their new Leadership role) Output: A new Leader possessing the critical basic training and base knowledge required to be successful from Day 1 in the new role.

178178 Step 8: Structured Coaching Program

Who: New Leader, Direct Supervisor/Manager, Coach What: Under the direction of the assigned Supervisor or Manager, an On Boarding Coach is provided to the new leader to provide weekly coaching on the skills and high performing behaviors required of a new Lead or Supervisor. A broader coaching program can include more emerging leaders at different stages of development. Time: 10-12 Weeks Output: • A dedicated coach to help each new leaders navigate the first 3 months in the new leadership position. • A lasting informal coaching relationship that tends to live on beyond the structured initial engagement and offers a consistent high performing role model in the first critical months of a new role in the organization. • A Coaching Results Presentation to the Management Team to report on coaching outcomes, lessons learned, and path forward developmental recommendations.

179179 Step 9: Transition Leader to Performance Improvement System

Who: New Lead or Supervisor, Process Area Manager, Human Resources What: At the conclusion of the structured New Leader On Boarding System and 10-12 week Coaching Event, the individual will be transitioned to the Halogen PMS for an Individual Development Plan (updated every 6 months under the current framework). Time: Lifecycle. Minimum 6 month frequency. Output: • A documented Individual Development Plan for the new leader to be managed by their direct Supervisor or Process Area Manager. • A discrete list of Developmental Tasks on a detailed timeline with appropriate resources required. All available developmental tools can be brought to bear to affect positive behavioral changes and skill acquisition in the new leader. (i.e. formal training, coaching, seminars, etc.)

180180 Step 10: Achieving High Performance

Who: and New Supervisors What: The new leader can perform duties at a similar level of proficiency and supervision as others in the position. An Individual Development Plan is being executed and focuses on reaching High Performance in all Mission Essential Tasks needed to succeed in the role. Periodic refresher training and coaching as needed.

Time: Always Output: High Performing Leads and Supervisors - Totally engaged and committed to Liebherr Mining Equipment with recognized high performance in all job duties and mission essential tasks.

181181 Production Depth Chart

Production Leadership Realignment

Crew A Crew B Crew C Crew D

Production Manager Steve Chando

General Supervisor OH Farinholt Don Perkins

Changeover Supervisor Billy Layton James Randall

Production/Crew Tim Matthews Jack Polson Alton Cagle Sonny Stapleton Supervisor

Chief Maintainer - FE Will Simpson Fred Jessen Donald Moore Nat James

Chief Maintainer - FE Cliff Hundley Jimmy Richeson - DEV Ray Edwards Curtis Edmunds

Chief Maintainer - BE Chris Obie Doug Winn James Bradsher Bill Kelley

Chief Maintainer - BE Kevin Tomes OPEN Danny Macklin Jerry Snead

Lead Palletizer Lannie Greene JL Jones Jesse Vaughn Doug St. John

182 = New to Position (<1 Year) Calculating “Leader Bench Strength” -Used in Crew Comparison Analysis- 4 1 2 3

1 • Tallied the Tasks in which the individual was rated “High Performing” in their Q2 2009 leader assessments 2 (Crew Supervisors, Chief Maintainers, Lead Palletizers, Substitutes) • Assigned score according to the following scale: 4=7or8; 3=5or6; 2=3or4; 1=0to2 3 • Calculated a separate average for the Crew Supervisor, the Chief Maintainers/Lead Palletizers, and the Substitute Leaders from each crew to get a combined Leader Bench Score for each Crew. 183183 4 • Example: CS = 4.00, CM/LP Avg. = 3.40, Subs Avg.= 3.00, Leader Bench Strength Score = 3.47 The true leading indicator of your business performance is Leader engagement and performance!

The 5th Why…

184 Break

185 Measuring Team Performance

What does Right Look Like?

Dream Teams

What does Wrong Look Like?

_____ Teams 186 1. Alignment: (SIPOC Alignment System) – Organizational Scheme: Heartbeat Focus – Business 101 – Roles and Responsibilities: Leader Lane Transparency – Conflict Resolution – Operating Focus – Overtime Management ($$, FTE, Headcount, Names)

187 2. Leader Behaviors: – Current Leaders – Current Responsibilities (Leader Performance Improvement System) • High Performing: • Developmental: • Dysfunctional: – Benchstrength (Leader Identification, Selection, Training, and Competency System) • Openings vs. Applications – Leader Churn • Internal Churn • External Attrition 188 3. Team Engagement: (Engagement Improvement System) • Engaged: • Disengaged: • Actively Disengaged: – Leader to Led Goal Alignment – Workforce Churn • Internal Churn • External Attrition • Absenteeism

189 4. Business Performance: – Team knows the Score and how to move the needle – Near Perfect Situational Awareness and focused problem solving – Lean is how we meet our business goals

190 Team Performance Assessment

• Competing/Engaged: Playing to Win! – We Own the Business: Ownership – Maniacal Customer Focus – How good can we be?

• Participating/Disengaged: Playing – You Own the Business – Boss Focus; Customer Irrelevant – We are doing fine, “Why Change?”

• Blaming/Actively Disengaged: Watching others Play – I am Entitled to my pay check – Boss and Customer are the Enemy – You OWE me 191 Dream Team Character… • Opportunity: How good can we be • Personal Accountability: I own the challenge • Validation: My leader values me • Inclusion: I don’t hate changing– I hate being changed • Community: We win and lose together

We are running our business vs. the business is running us! 192 Measuring Team Character Exercise

See Handout

193 Alignment:

1. Every teammate understands what we do and how we make money. (Business 101) SD D A SA

2. We are an aligned, self-disciplining team from the Plant Management to the 1st Line Supervisors where we know our responsibilities and the responsibilities of our teammates. (Roles and Responsibilities)

SD D A SA

194 Leadership:

3. What percentage of your current leadership structure fall in the following categories (Current Leaders – Current Responsibility Performance Improvement)

High Performing (Consistent Best Leaders) ____%

Developmental (Moving in the Right Direction) ____%

Dysfunctional (Should not be in the position) ____%

4. . We have a solid “Bench” of future leaders who are ready to step into leadership positions with minimal preparation and low risk to business performance? (Future Leader Identification, Training, and Development System)

SD D A SA 195 Team Engagement:

5. The Engagement Distribution of our organization is: (Team Engagement Improvement System)

Engaged (Go To Teammates) ___%

Disengaged (Getting a paycheck) ___%

Actively Disengaged (Doing positive harm) ___%

196

Business Performance:

(Return on Investment: Process or People)

6. How good can you be? If you ran a perfect plant how much better could you be in terms of increased productivity and earnings?

____ %

197 Team Performance Assessment

1. I know what to do at work everyday. (3.34) 2. I have the materials, tools, and equipment I need to do my work correctly. (2.97) 3. I have the skills to do my work correctly the first time. (3.10) 4. I understand what we do and how we make money (3.49) 5. I am incentivized to do my work as quickly and efficiently as possible. (2.75) 6. My leader cares about me as a person. (3.34) 7. There is someone at work who helps me improve my performance. (3.08) 8. My leader encourages me to offer ideas on how my team can get better. (3.23) 9. I know how I contribute to the success of our team. (3.43) 10. I know how my teammates contribute to the success of our team. (3.28) 11. My teammates hold each other accountable for accomplishing their responsibilities. (2.62) 12. My teammates do work correctly the first time. (2.95) 13. My leader and I have discussed my progress and how I can better contribute to the team. (2.90) 14. I know what I need to do to get ahead in the company. (2.85) 15. My team is winning. (2.70) 16. Trust (I trust my leader/ I trust my team). (3.03) 17. I would like my best friend, son, or daughter to join the ______team. (2.74) 18. Our company has a solid “bench” (group) of leaders who are ready to step up with minimal preparation. (2.13) 19. I have received feedback from my leader within the last…between 6 months Team Engagement Assessment Totals

Engagement Surveys Conducted: 185 Total

Engagement Average: 2.91 • 36.76% = Engaged (68 Employees) • 58.92% = Satisfied (109 Employees) • 4.32% = Actively Disengaged (8 Employees)

199 Employee Engagement - By Department -

= Improvement Opportunity = Requires Immediate Attention 200 Data Captured July 2010 Employee Engagement - By Title -

201 = Improvement Opportunity = Requires Immediate Attention Data Captured July 2010 Employee Engagement - By Shift -

= Improvement Opportunity = Requires Immediate Attention 202 Data Captured July 2010 Employee Engagement - 1st Shift Only -

= Improvement Opportunity = Requires Immediate Attention 203 Liebherr Team Engagement Survey - Question 1 -

Employees that identified the same individual as their leader and the person that provides him/her with daily work instructions: 97.4% Employees that correctly stated their positions: 100%

How many supervisors have you had in the last year? 1: 86.8% 2: 11.3% 3: 1.9% 204

Data Captured July 2010 Team Engagement Assessment Analysis

2. I know what to do at work every day: (3.57) 3. I have the materials, tools, and equipment I need to do my work correctly: (2.58) 4. I have the skills to do my work correctly the first time: (3.63) 5. I am incentivized to do my work as quickly and efficiently as possible: (3.34) 6. My leader cares about me as a person: (3.15) 7. There is someone at work who helps me improve my performance: (3.07) 8. My leaders encourage me to offer ideas on how my Team can get better: (2.90) 9. I know how I contribute to the success of my team: (3.41) 10. My Teammates hold each other accountable for doing the right thing: (2.88) 11. My teammates do work correctly the first time: (2.75) 12. My leader and I have discussed my progress and how I can better contribute to the Team: (2.95) 13. I know what I need to do to get ahead in the company (2.86) 14. My Team is winning: (2.90) 15a. I trust my leader: (2.96) 15b. I trust my team: (3.08) 16. If I was offered a promotion I would accept it (3.25) 17. I would like my best friend, son, or daughter to join the Liebherr team: (3.19) 18. I have received feedback from my direct supervisor within the last: 7 days: 36.2% Month: 21.5% 6 Months: 20.8% Over 6 Months: 21.5% 205 Strongly Disagree = 1; Disagree = 2; Agree = 3; Strongly Agree = 4 Department Engagement by Question

text= Best Score by Question = Improvement Opportunity = Requires Attention206 Data Captured July 2010 Engagement Analysis by Leader

By Leader – By Question SENSITIVE INFORMATION

207 Results by Lead Names of Leaders

208

Data Captured July 2010 Team Engagement Over Time 2007 to 2010

209

209 What group represents the biggest risk for the future of your business? (Rank Order with 1 the Highest Priority)

__ Acquiring New Talent __ Hourly Workforce __ 1st Line Supervisors __ Middle Management __ Non-Production Leaders & Staff __ Plant Managers __ Executive Staff

210 Which part of the People Life Cycle requires the most urgent attention? (Rank Order with 1 the Highest Priority)

__ Organizational Scheme __ New Talent Acquisition and Retention __ Incumbent Workforce Development __ Heartbeat Leaders Performance Improvement __ Building Future Leader Benchstrength __ Executive Leader Development

211 Homework

1st Day Speech “Your Team needs to know about you and how you count.”

212 Homework

1. Your background 2. Your “rules” 3. What you expect from them 4. What they can expect from you

213 What I’m Like

. I value your service. . I want to know who you are. Expect that I’ll want to learn something about you before we get down to business. . I always want to know up front what you expect of me in . . I read the read-aheads. . Honorifics matter to me. If you want to call yourselves by What I’m Like (cont)

. I respect everyone’s opinion. Never denigrate anyone else’s view in my presence. . I want to hear from the person with the knowledge I need regardless of rank. . I always want to understand problems before being asked to solve them. . I expect alternatives not ultimatums. . I really enjoy serving in our Army. There’s no reason we can’t celebrate our profession while solving difficult problems along the way. Stated another way, I have no tolerance for What I’m Like (cont)

. Every morning on the way to work, I walk past the pictures of all the former Chiefs, and then I drive past row after row of the headstones in Arlington National Cemetery. If you find me eager to get things done, that’s why. Break

217 Facilitated Discussion

Manufacturing and West Point

218 The Courage to Lead a Lean Journey

219 Common Current State Barriers

• Operational Responsibilities have exploded, yet no clear articulation of those roles and responsibilities

• Leaders can’t see the process through the data haze

• Cultural bias for solving today’s problems right now – not necessarily in priority order based upon biggest bang.

• “5 Year Old Soccer” Crisis Management Culture creating waste in the Leadership Bandwidth

• Leaders don’t know what right or wrong looks like

• A lack of clear roles and responsibilities creates a culture of blame vs. ownership. (Heat on you is off me!)

• Lean is about the tools, number of events, or the number trained 220 220 Big Picture Thinking

Value Stream

Business People Process Performance

Alignment

Performance Continuous Increased Team Engagement Improvement Improvement Increased Customer Team Engagement Lean Satisfaction Rapid Decrease Production Costs Just Do Imp Leaders Led Its Projects Increased First Pass Yield Events Increased Employee Skills Proficiency Decrease Cycle Times Increase Production Capacity Decreased Turnover Increase Revenue 221 Decrease Cost Increase Profit 2008 vs. 2010 Crew Comparison Analysis

222 222 The Boys of Fall

223 Army Basketball Team 1975-1976

224 FEAR Task Force 2-4 Cavalry Tactical Operations Center Team Feb 21, 1991 - Northern Saudi Arabia

225 FEAR 1st Armored Division: MG Mark Hertling 2008 - Northern Iraq

FEAR 226 Duke Medical Center Team Barto: Rich Scherr and Kitty Lockner August 2010

227 FEAR FEAR

228 Lean Leaders Barriers

• Lack of communications outside of event team • Lack of Integration across the Value Stream • Lack of will to accept risk: we may fail • Lack of a sense of urgency • Lack of understanding the business environment (the Voice of the Customer) • Lack of funding strategies • Lack of trust • Lack of courage to discipline the team for failing to implement.

229 COL Peter Newell; Director Rapid Equipping Force 2011 COURAGE TO LEAD!

• Your people need to know you and understand your personal commitment to get better and you need to see it in their eyes.

• If you don’t put your best people to execute your lean program you do not care about it.

• Teach every person on the Team: – How we make money: Business 101 – The Team Playbook (Who does What to Who) to build team work and encourage discipline – Lean 101 to create a common language

• The result of every Lean Event is a Practice/TRAINING requirement to create new behaviors and eliminate the old behavior.

• All Leaders are Teachers ensuring change is fully implemented– full deployment is when “we can’t remember how we used to do it” 230 Lean Leadership

• The Leader’s Job: To get Results! (To Win!) • First focus is Team Engagement, managed with the same level of rigor as cost, schedule, quality, and safety • “Seeing” Normal and Abnormal in the Gemba • Leaders are working the Red (Abnormal “Hot Spots”) – Heartbeat Leader and Team are working the Green (Normal). • Leader Standard Work (Daily Rhythm) disciplines the Team horizontally and vertically. • Great Lean Leaders DO NOT create Great Followers- they create New Great Lean Leaders.

231 Lean Leader Courage

• I have near perfect situational awareness • I know what the plan and goal is and how to measure progress • I know where the risk is and I will lead from that spot • I know what I am doing and how to do it • I trust my leadership has a plan and knows what they are doing • I trust my team to do what I tell them to do • I know the difference between risk and gamble (worst/best vs. acceptable/unacceptable • I know who will help me when I can’t solve the problem myself • My Leader is doing everything they can to help me Win!

232 “We are too busy doing our real work to do Lean”

Killing Alligators or Draining the Swamp

If you like…

233 The Bottom Line…

Turf, Ego, and Money and at the end of the day…

234 Golden Rule of Leadership

they Treat your subordinates how you would like to be treated. …1 at a time!

235 “I can’t control what they do on the field but I can control who does it…”

Joe Gibbs, Washington Redskins

“…And never give that away”

Joe Barto

236 The Organization Takes on the Personality of it’s Leaders!

Character

237 Who is the Heartbeat of your Business?

Have we created an environment where they can Win? 238 What do we do everyday to help them Win?

Competing or Participating 239 I will always place the mission first I will never accept defeat I will never quit I will never leave a fallen comrade 240 Not Today

NOT TODAY!! 241 WHO before WHAT

October 1975 November 2011 Let’s Wrap It Up

243 “AHA Moments”

244 Review “What you wanted to Learn” Blue Slips

245 My Name is Barto

I am a Lean Leader

My Team Plays to Win!

Ceremony 246 Thanks… and Play Like a Champion!

247 248 249 250 5 Levels of Lean Leaders

251 Level 1 – Lean Survival – Self

• You do Lean because you are told to • You do not require your team to do lean • You do not believe lean is the “way to go” in running the organization

252 Level 2 – Lean Survival – Work

• You see lean as a box of nice tools • You only require your team to do lean when you are confident of the benefit • You do not believe lean is the “way to go” in running the organization

253 Level 3 – Lean Belonging

• You do lean because everyone else is doing it • You selectively ask your team to do lean (e.g. Let’s do a Value Stream Analysis) • You do not believe lean is the “way to go” in running the organization

254 Level 4 – Lean Recognition

• You do lean to excel; you teach others to do lean to excel • You ask your team to do lean • Your situational belief is that can be the “way to go” in running the organization

255 Level 5 – Lean “Walk the Talk”

• You practice lean as a way of life • You teach lean to others • Lean is non-negotiable– it is who you are and how you do what you do • You believe lean is the “way to go” in running the organization • You contribute to the evolution of the team. 256 Team Engagement Measures and Metrics

257 Total Distribution by Job Title

38 Labor Categories

258 Workforce Snapshot as of July 31, 2009 Total: 220 Leader to Led: 38/182 Foreman/Leadman/Worker/Temp: 15/23/129/53

Lbr Prod Prod Incl SINCEJAN 1 ONBOARDING HELPER / HELPER/ IMPROVER JM1/2 W) / (SF 4 JM3/ W) / (SF JM5 W) / (SF TEMP W) / (SF LEADMAN W) / (SF FOREMAN W) / (SF JAN 1 25 / 21 17 / 13 13 / 9 13 / 13 36 / 25 18 / 5 14 / 2 HIRED

TODAY 29 / 19 20 / 12 13 / 9 12 / 15 39 / 14 18 / 5 13 / 2 35

+ / - +4 / -2 +3 / -1 0 / 0 -1 / +2 +3 / -11 0 / 0 -1 / 0 DEPART TOTAL 48 32 22 27 53 23 15 HI-PO 42 OPEN REQ 0 / 0 0 / 0 0 / 0 0 / 0 0 / 0 0 / 0 0 / 0 POOL JAN 1 NOTE: JAN 1 personnel numbers started 4/27/09 1 / 2 3 / 1 TODAY

259 Major Job Titles by Population - Time in Position/Service – (Data Report Date: 6/25/2009) = Area of Concern = High Risk

Average Average Maximum Minimum # in Job Title Years in Years of Years of Years of Position Position Service Service Service

Maintainer 62 10.22 14.25 36.61 1.06 Operator 37 6.72 7.75 32.10 0.76 Material Handler 20 9.76 13.40 36.58 3.40

Chief Maintainer 19 9.89 23.40 36.71 9.11 (Includes Maintenance Chiefs)

Maintenance Mech. 11 9.72 12.19 29.00 0.34 Electrical Tech. 9 13.85 13.85 29.67 1.20 Supervisor (Prod) 9 4.57 24.37 33.45 4.48 Manager 8 13.65 24.04 35.85 10.76 CPM / Chief CPM 8 16.08 22.14 36.89 9.36 QA Chiefs / Insp. 7 5.69 16.38 36.26 5.99 260 Warehouser 4 20.06 32.28 36.71 28.96260 Major Job Titles by Population - Aging by Job Title – = Area of Concern (Data Report Date: 6/25/2009)

# in Average Years Maximum Minimum Job Title Position of Age Years of Age Years of Age

Maintainer 62 46.21 62.38 29.76

Operator 37 44.16 61.10 20.89

Material Handler 20 46.60 60.41 32.82

Chief Maintainer 19 50.08 58.92 30.78 (Includes Maintenance Chiefs)

Maintenance Mech. 11 45.21 59.48 27.04

Electrical Tech. 9 44.86 60.01 27.60

Supervisor (Prod) 9 51.03 59.88 37.90

Manager 8 53.02 60.47 39.01

CPM / Chief CPM 8 52.75 62.74 36.99

QA Chiefs / Insp. 7 46.49 61.73 30.84 261 Warehouser 4 55.21 58.79 51.94

261 2009-2014 Production Aging

RISK: Potential for 105% turnover at the Operator position and over 50% at the Maintainer position.

Prod. Supervisor / Chief Maintainer / Manager Maintainer Operator 2009 - 2014 Maint. Supervisor Maintenance Chief

Current Position Population 3 9 18 62 37

Retirements (28 Years Service, 60 Years Old) 2 2 5 10 2

Promotions to Back Fill Positions 0 2 5 13 32

Projected Personnel Actions 0 1 3 9 5 (Transfer, Vol., Term. etc.) 15% / 5 yrs

Expressed Interest in Advancement 2 8 15 40 26 (Advancement Desire Survey)

Substitute Leader Pool for the NA 14 19 NA NA Position (with Advancement Desire)

Potential Hiring Requirement NA NA NA 5 39

# Vacating Current Position 0 5 13 32 39

Ratio of Near Term Potential 8:2 14:5 19:13 NA NA Successors to Vacancies 262 Quality of Hire

263 Quality of Attrition

While attrition was higher in 2010 than the targets set by the leadership team, in the business essential roles the firm retained its key talent. 475 employees left the firm (15.4%) ♣Critical roles account for 21% of the workforce but only 11% of the attrition was from critical roles ♣High performers account for 36% of the workforce and a respectable 31% of the attrition were high performers ♣"Valued employees" account for 68% of the workforce but only 52% of the attrition was valued employees

Observations ♣A significant percent of employees in critical roles departed in April after bonuses were paid ♣The highest percentage of high performers/valued employees left the organization in 264 Attrition Rates by Category

265 266 Quality of Movement Scorecard

267 Organizational Scheme - Production: Fabrication -

VPM: VP of Manufacturing PNTM: Paint Manager FABM: Fabrication Manager VPM ASSM: Assembly Manager MEM: Mftg / Engineering Manager MNTM: Maintenance Manager PCM: Production Control Manager PCM FABM ASSM PNTM MNTM MEM FS1: Fabrication Supervisor 1st FS3: Fabrication Supervisor 3rd FS3 FS1 ECRs LEAD: Lead Person WELD: Welder / Fitter MOP: Machine Operator LEAD MOP LEAD APP: Apprentice

WELD WELD APP

POSITION DENSITY 1st Shift 2nd Shift 3rd Shift Fabrication Supervisor 2 0 1 Lead 2 0 2 Welder / Fitter 35 0 28 Machine Operator 4 1 2 Apprentice 2 0 0 268 As of August 2010 Organizational Scheme - Production: Assembly - VPM: VP of Manufacturing PNTM: Paint Manager FABM: Fabrication Manager VPM ASSM: Assembly Manager MEM: Mftg / Engineering Manager MNTM: Maintenance Manager PCM: Production Control Manager PCM FABM ASSM PNTM MNTM MEM AS1: Assembly Supervisor 1st ASE1: Assembly Supervisor Electrical 1st nd AS2: Assembly Supervisor 2 AS1 ASE1 AS2 LEAD: Lead Person ELEAD: Electrical Lead Person LEAD LEAD PIC: Prod. Inventory Coordinator ELEAD PIC MA: Mechanical Assembler EA: Electrical Assembler EA EA MA MA

POSITION DENSITY 1st Shift 2nd Shift 3rd Shift Assembly Supervisor 1 1 0 Assembly Supervisor - Electrical 1 0 0 Lead 2 2 0 Production Inventory Coordinator 3 1 0 Mechanical Assembler 12 9 0 Electrical Assembler 10 7 0 269 As of August 2010 Back Up

270 Issue Resolution/Escalation Process

Start: Abnormal Event Occurs + 15 minutes: Abnormal Event Defined by Crew Supervisor + 30 minutes: Crew Supervisor elevates to General Supervisor +60 minutes: General Supervisor elevates to Production Supervisor + 120 minutes: Plant Manager notified by Production Supervisor

271 After Action Review Process

• What was the plan? • What actually happened? Ground Truth • Why was there a difference? • What can we do next time to ensure the plan and reality are the same?

272 Autoliv Best Practice

• Mission: To exist continuously so we can always contribute to our shareholders, customers, employees, and community • How? By consistently making a profit • How do we make a profit? By reducing costs below price by identifying and eliminating waste. • How do we identify and eliminate waste: Engaged People

273 Autoliv Plant Business What do we do?

1. Identify and eliminate Waste 2. Improve Worksite Management through near perfect situational awareness 3. Raise the skills and abilities of all the Team members to do 1 and 2.

274 Mission First – People Always

• Do you know what to do? • Do you have the tools, equipment, and materials to do it? • Do you know how to do it? • Do you want to do it?

275 Courage = Everyone Playing their Position

. Enables successful deployment / execution . Owns vision, direction, . Develops and reports metrics integration, business results . Coordinates training . Leads change by ensuring CI . Leads change management and internal / Execution (PM Drumbeat) external cross-communication

1st Line Leaders . Provides Senior Executive Support to PM Team . Implements solutions . Owns outcome for ERB . Owns financial results • Just Do Its (Identify and Eliminate Process Waste) . Part time as part of job • Increase Team Engagement . Develops Project Charter • Provide data and voice of customer inputs to VSA,RIE and Projects. • Apply concepts to their own teams and work areas.

. Train Black Belts/Green Belts . Coach Black Belts/Green Belts . Provide project-specific support . Lead Complex/Large projects . Part time on projects . Full-time position

. Participate on Black Belt . Execute CPI projects teams and/or lead projects . Train and coach Project Teams . Part time on projects . Full-time assignment

276 Event Continuous Improvement Program Management Process & Training Strategy

Team Greenbelts ID Opportunity ID Target Forcing Draft Project Develop Plan of for Waste ID Champion Function/Burning Charter with Team Action and Elimination from & Process Owner Platform Greenbelts Milestones VSA/RIP (POA&M)

Champions Training Send Team Co- for Champion, Leads to Greenbelt Process Owner & Training Scorekeepers

Implement Action Executive Review Brief Results and Greenbelts with Facilitate Projects; Plan(s) for Board Approves Return on Team Events & Just-Do- Improvement Charter & Investment (ROI) Execute POA&M Its Initiatives POA&M Analysis {Monthly PRs}

Greenbelts Give Effective Weekly Updates and Participants Certify Greenbelts Take Fives to Certified as Workforce (Creating Yellowbelts Whitebelts) Senior Leader Checkpoint 277 Event Charter

Charter Summary For: Title

Improvement Opportunity / Problem Statement: Dates: • Sets direction for the team Champion: • One or two sentences that describe the team’s task Process Owner:

Objectives: Scorekeeper: • Major goals of event • Expected benefits Black Belt: • What the sponsor(s) want to see Team Leader/Green Belt:

Team Members: Scope Information: • Name, home department • Baseline metrics • 4-12 active participants • Process begin & end • Customer voice • Dates to complete tasks • Outside eyes willing to ask “Why?” • Members with support knowledge, skills

Governing Documents & Constraints: • Governing procedures, regulations, current SOPs

278 HR Change Drivers • Law • Requirement to do more with less people • Decrease Brain Drain • Increased Workload • Recruiting Pressure • HR Transactional Demands • Employee Technology Use

279 Courage: “Trust”

• Exists in very personal, irrational, and operationally volatile terms between the Leader and the Led

• Trust is a function of Situational Awareness

• High Trust increases SPEED and decreases COST

• Low Trust decreases SPEED and increases COST

280 Courage: Engaged Teammates (and Leaders!)

Ind Goals Leader Team Ind GOAL Goals Ind Led(E) Led(D) Led(AD) Goals

Can you measure and improve Engagement?

281 Courage: Team Stability First Things First

Increasing Business Performance

Team Continuous Trust Stability Improvement

Customer Demands, Suppliers, or Shareholders will always induce variability and UNCERTAINTY!!! 282 Courage = Situational Awareness

Near Perfect Situational Awareness = Near Perfect Decision Making

“Where am I?” “Where is My Enemy?” Victory!!! “Where is My Team?”

Are we Winning or Losing?

283 Courage = Access to Lean Deployment Support

Program Manager Develops Strategy & Annual POA&M Synchronized with Annual Business Plan

Events Training Analysis and Metrics What projects should Who gets trained, “Dollarizing” results, we do, how many when, to what Six Sigma Analysis, at a time, scope, and standard, by whom, Return on Investment implementation plan with what resources Model Development complexity. Resources: Trainers Resources: Data Resources: Facilitators and Curriculum and Cost Analysts (Black, Green Belts)

284 Are you forecasting your labor as you forecast your production? Production needs drive labor requirements…

• How far out are you looking? • What skills will you require? Current or New? • Lead Time from labor requirement to competency? • Who is responsible for managing it? • What models do you use? • What options do you have?

285 Future State Map with Metrics

Activate Forecast number of candidates that will be generated from each pipeline. Pipeline

Generate Number of leads generated from each pipeline. Measure against number of candidates needed. Prospects

Qualify Leads Number of leads generated in each classification pool. Measure against number needed.

Assess Percentage of candidates that meet needs specified by Operations. Feedback Loop Loop Feedback Close Percentage of candidates that meet fit or skill needs and are given an offer of employment.

1st Day Percentage of candidates offered positions that start work.

90 Day Probation Percentage of candidates that continue employment through 90 day probation period. Performance Feedback after Orientation and 90 day cycle.

1 Yr Probation First Year Attrition of engaged employees/Attrition Pareto by Reason

286 Courage: Vision and Mission • Leadership without a Goal is irrelevant. (Goals) • Goals without a Plan encourage activity not productivity. (Plans) • Plans align the team and assign responsibility and authority from the Senior Executive to the value creating Teammate. (Accountability) • Alignment shows every team member what they need to do everyday for the team to Win. (Alignment) • The Team Wins when every team mate is engaged to execute the plan. (Engagement)

Engaged Leadership Reduces Uncertainty and Increases Situational Awareness 287 Courage = A Systematic Process

Define

Measure

Analyze

Improve

Control

288 Talent Pipeline

Toyota: 5 of 100 applicants meet minimum pre-requisites 289 Quality and Safety are King Schedule is GOD

1st Pass Yield Doing it Right the First Time Don’t start until 4Ms are straight

290 I don’t want people to come to work (Knowers) I want them to come to think (Learners)

291 “The more you do in Lean the further you get away from Perfection”

Jerry Solomon

292 “Carry your wounded. Shoot the Stragglers”

293 Do what you say you will do when you say you will do it

294 It is easier to ACT your way to a new way of thinking than think your way to a new way of behaving.

If you don’t live your beliefs you will soon believe how you live. Father Lafratta

295 Coaching Overview

Coaching requires a series of scheduled planning sessions, briefings and reporting & intake sessions.

Advantages of Coaching

• Matches the experience of a high performing leader in a particular attribute with another leader needing focused help • Performance Driven • Potentially Linked to the Performance Agreement • Focused on just one assessment attribute identified for improvement • Short term engagement (usually 6 – 8 weeks) • Goal is immediate behavioral change and improved performance • Occurs on the job with minimal interference with routine operations

296 Steps in the Coaching Process 1. Preparation for Goal Alignment Session 2. Goal Alignment Session 3. Coaching Matching/Line-Up and Resource Session 4. Line-Up and Resource Review Approval 5. Coaching Group Kick Off Meeting 6. Individual Coaching Event Focus Sessions 7. METL Task Focused Coaching 8. Senior Leader Gemba/Walkabout 9. Individual Post Coaching Sessions 10. Leaders Coaching Results Presentation to VPO 11. Leaders (2 levels up) out brief with Coached Leader 12. Coaching Process Continuous Improvement Discussions

297