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Implementing a Lean/Six Sigma CultureImplementing a Lean/Six Sigma Cultureto Transform Your Organization … to Transform Your Organization … and Drive Sustainabilityand Drive Sustainability

Wendy A. KoubaVice President, Operations Management

Bio Innovation Leader’s SummitLondonFebruary 23, 2010

04/18/23

Leading the Way to a Healthier World

Wyeth

$22 Billion; 145+ Countries Pharmaceuticals and Biopharmaceuticals Vaccines Consumer and Animal Health Nutritionals

50,000 employees Technical Operations & Product Supply (TO&PS)

More Than 4,800 SKUs 18,000 Employees 28 Plants / 13 Countries and Puerto Rico

48 Billion Doses in 2008…> 7 Doses for Every Human on Earth

~$6B revenue exposed due to upcoming patent expirations

Product approvals and contributions from new products delayed relative to expectations

Changing regulatory environment – stricter requirements for new drugs

Decreasing R&D productivity Significant generic penetration Large product litigations

December 2007: accelerated at-risk launchof generic

Our Story Begins in 2007

Challenges to product

exclusivity

Delayed new products

Changing industry

environment

TO&PS

Network optimization

– COEs and right-sizing

Organizational design

– Lean out above-site

– Standardize site structure

Operational Excellence

− Transform the way we work and whatwe deliver

− Create capabilities and culture thatensure sustainability and continuous improvement trajectory

− Reduce cost: 25% aspirational target

Corporate

Initiation of Project Impact

Company-wide initiative

All functions, divisions and geographies

Target: $~1.5 billionin 4 years

Our Response

While maintaining & improving quality, compliance and customer service

While maintaining & improving quality, compliance and customer service

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Our Approach: Three Key Levers

“The way physical assets and

resources are configured and optimized to create value and minimize losses” “The way people think,

feel, and conduct themselves in the workplace, both

individually and collectively”

“The formal structures, processes, and

systems through which the operating system is managed to deliver the business objectives”

Engagement/Engagement/MindsetsMindsets

&&BehaviorsBehaviors

Management Management InfrastructureInfrastructure

OperatingOperatingSystemSystem

Aspire high; blend technical & organizational change;build capability and let your line leaders own and drive it

What Differentiated Our Approach?

Combines deep technical changes with cultural change How people think and act: key to sustainability

“Bias for action / tolerance for ambiguity” Led by local senior management engaging the people who do the work

They own it Learning drives continuous improvement

Requires personal transformation and objective review to revitalizethe organization

“Go and See” transforms our understanding of current state Requires major upgrade in capabilities

Makes the changes sustainable

Changes the “daily work” of the majority of the workforce

Process starts with a comprehensive site diagnostic…

WorkshopsAnalyses

Interviews

Quantitative Diagnosis Qualitative Diagnosis

Plant-wide survey

Review of total budget and headcount Cover most major workstreams Numerous analyses to support insights from

qualitative sources (OEE, NVA, etc)

Interviews with a representative sample of key stakeholders (management, exempt/ non-exempt employees, temps/contractors)

Focus groups, future state workshops, mirror workshops

Surveys

Diagnostics Cover Multiple Work Streams and Data Sources

PriorAnalyses

StructuredObservations

DataAnalysis

Workstream Analysis

Savings opportunity ranges from 15 - 40% per site

Implementation at a Site Includes Three Types of Initiatives

Examples

Mini-trans-formations

Changes the daily work, thinking and behavior of everyone in a focused area

Production line: simplify processes; eliminate NVA

QC lab: standard roles; leveled work; performance boards

Quick wins and “just do its” that don’t require changing mindsets and behaviors

Implementing custom lab reports

Removing NVA project approvals

Other site initiatives

Solve technical and organizational problems that affect the entire site

Change story engagement

Systems implementations

Cross-cutting initiatives

We Changed the Way We Think & Work

Data-driven decision making and acting on fact Improvements in OEE

Elimination of non-value added meetings

Increased capacity from significant reduction in changeover time

Dedicated production trains and rhythm wheels Tailored to velocity of product and value-streams

Lean Labs

Improvements in yield from technical changes Awareness of cost and implications of waste

“Hot-seat” swapping and shift huddles

Visual management through performance boards

“Get out and Gemba”

Building capability Forum and field

~ $250 M savings commitment against a stretch target of $150 M for 2009 budget

~1200+ headcount reduction in 2008

Additional headcount reductions in 2009

~60 site mini-T teams coached in early stages of the transformation

Frontline is engaged in change and new leaders have emerged from the floor

TO&PS has led the change for Wyeth and is now looked upon as a role model for implementing change

Significant Savings Already Achieved

Program has exceeded expectations

250

2009(Committed)

2010(Expected)

Cost Savings$ M

How? Management Infrastructure Facilitatesthe Results

Mindsetsand

Behaviors

Management Infrastructure

OperatingSystem

“ The formal structures, processes, and systems through which the operating system is managed to deliver the business objectives”

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Position:

Overview:

Senior Leader (VP Ops, MD, QA Lead, Function Lead)

• Monitor and manage site performance • Build talent through developing team and individual team members• Drive continuous improvement by implementing lean systems and processes • Engage others across the network and industry• Enable staff at all levels to support the shop floor.

Key Performance Indicators:% Time:

• 20 %

• 40%

• 25 %

• 15%

Roles and Responsibilities:

• Monitor and manage performance:– Develop site strategy and influence OpU strategy– Establish key metrics/strategy for site that cascade from OpU leadership– Work with PPU Heads to cascade metrics and establish targets – Monitor performance against targets/challenge as necessary – Engage in performance dialogues to identify and resolve issues

• Build talent:– Manage development plans with clear action items for staff– Coach staff and provide performance feedback on a regular basis – Complete succession planning– Mentor staff across the organization

• Lead continuous improvement:– Identify and prioritize key initiatives for OpU and PPUs– Conduct and role model problem solving with staff at source – Foster continuous improvement mindset; actively look for ways to

implement lean production principles, remove barriers to change – Engage others across the organization (Eliminate barriers,drive

standardization and ensure collaborative environment for empowerment)• Other, routine, administrative activities:

– Communicate upwards

Position:

Overview:

Senior Leader (VP Ops, MD, QA Lead, Function Lead)

• Monitor and manage site performance • Build talent through developing team and individual team members• Drive continuous improvement by implementing lean systems and processes • Engage others across the network and industry• Enable staff at all levels to support the shop floor.

Key Performance Indicators:% Time:

• 20 %

• 40%

• 25 %

• 15%

Roles and Responsibilities:

• Monitor and manage performance:– Develop site strategy and influence OpU strategy– Establish key metrics/strategy for site that cascade from OpU leadership– Work with PPU Heads to cascade metrics and establish targets – Monitor performance against targets/challenge as necessary – Engage in performance dialogues to identify and resolve issues

• Build talent:– Manage development plans with clear action items for staff– Coach staff and provide performance feedback on a regular basis – Complete succession planning– Mentor staff across the organization

• Lead continuous improvement:– Identify and prioritize key initiatives for OpU and PPUs– Conduct and role model problem solving with staff at source – Foster continuous improvement mindset; actively look for ways to

implement lean production principles, remove barriers to change – Engage others across the organization (Eliminate barriers,drive

standardization and ensure collaborative environment for empowerment)• Other, routine, administrative activities:

– Communicate upwards

Re-thinking the Meaning of Management

Changing the fundamentals of every manager’s job…Changing the fundamentals of every manager’s job…

1414

Current State % Future State %

Lean Leadership:Requires a Radical Change in Focus

413

2657

Administrative Continuous Improvement

Develop TalentPerformance Management

20

10

35

35

Get out and Gemba

How? Mindsets & Behaviors Ensure Resultsare Sustainable

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Mindsets&

Behaviors

Management Infrastructure

OperatingSystem

“ The way people think, feel, and conduct themselves in the workplace, both

individually and collectively”

Mindset & Behavior Changes Evidentat All Levels

Coaches who support transformation led by the line leaders; focused on sustainability

“Our future leaders will develop in these key roles” – HR Leader

Task-oriented, lack of ownership – finish work and go home Do not feel accountability, often lack clarity on expectations “Cannot change anything” mentality and fear of discussing

improvement

Directive, command and control approach

One-way communication

High engagement; two-way communications Gemba walks; hands-on problem-solving

“My personal behavior change? I now ask much more than I direct” – OpU Lead

OE / Change Leaders

Leadership Team - Corporate &

Site

Frontline Leadership

Frontline

Project approach, not focused on sustainability

Frustrated by not being able to influence changes

“Checker of work” Limited coaching; majority of time

spent in office

Proactive leader Most of time spent on the floor coaching

“We used to focus solely on not making mistakes; now we focus on where and how we can improve” -- Supervisor

Improvement focused Accountability and pride in exceeding goals Feel they can change “bad processes”

“Now I’m always looking for improvements everywhere; at home I’m even optimizing my kitchen.” – Technician

From To

Let’s Hear from the People Who are Shaping Our Future…

Identity, needs (met Identity, needs (met and unmet), and and unmet), and

fearsfears

Identity, needs (met Identity, needs (met and unmet), and and unmet), and

fearsfears

Thinking and Thinking and feelingfeeling

Thinking and Thinking and feelingfeeling

Values and Values and beliefsbeliefs

Values and Values and beliefsbeliefs

BehaviorsBehaviorsBehaviorsBehaviors

… and transforming our organization

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Transitioning to Sustainability:

Time

Per

form

ance Transition

Step change via mini-Ts

Sustained gains via continuous improvement

5 Requirements Continuously assessing against:

Original and new challenges Desired future state

Aligned team of local leaders: Setting targets for continuous

improvement Staying highly visible Engaging line leaders

Incorporating targets into key systems:

Performance Succession Planning & budgeting

Strategically communicating achievements & instilling pride

Driving engagement & behavior change

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Site Example: Progress & Challenges After Implementation

Gains To Date Focus Going Forward Site leadership alignment around

change story and transformation plan

Developing strategy tied to performance indicators

Cascading vision and KPIs to the front line

Allocating sufficient resources to support the transformation plan

Continual prioritization

Continue to apply lean principles Removal of excess capacity to keep

pressure on lean gains Timely completion of change controls

Early traction in mini-Ts to deliver significant change

Willingness to adopt lean practices in multiple areas

Improving target setting Solidifying the practice of routine

performance dialogues Identifying more change leaders

Early traction in line-side performance boards

Consistent SLT focus through routine meetings on progress

Demonstrated commitment from the SLT to being involved in the transformation efforts

Early traction in performance dialogues within mini-T areas

Increased presence of lean leaders (at all levels) in front line problem solving

Increased real time problem solving at the front line level

Operating System

Management Infrastructure

Engagement/Mindsets & Behaviors

Vision

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Making Sustainability Happen: Key Questions to Ask

Plan for the future: Have we set the

next level of aspiration?

- Short-term?- Long-term?

Have we incorporated the lessons learned?

Have we established routine review cycles?

Are the right leaders in place?

Evaluate the present: Are we complete

with implementation?- Are tasks complete?- Have the objectives

been met?

Are things stable?- Is the performance

management process strong?

- Have we responded to feedback on the boards, KPIs, etc.?

What opportunities remain?

Have we builtcapabilities?

Look back: What have we

learned?- What did and didn’t

work- Why?

What should we do differently?

- How can future mini-Ts learn from this?

- What can we share across the network?

Have we communicated this success?

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The transformation offers the opportunity to significantly upgrade leadership capacity

Mini-transformations develop leadership down to the front line

Real change leaders

Focus on performance

A learning organization

and CI culture

Sensing and adapting for

the future

Benefits of TransformationMechanisms for

Sustaining & Improving

Reinforces performance management processes

Helps create a focus on the few things that matter through a clear vision of the organizational and operational end states

Operating system and management infrastructure changes create a new reality in core systems/processes

Mindsets and behavior shifts signal that change is becoming the norm

Creates energy to generate new improvement ideas by engaging the organization

Builds renewal capabilities to adapt more quickly to future needs/ opportunities

Be even more aggressive in placing top performers in pivotal jobs throughout the organization

Explicitly develop functional excellence and leadership capabilities

Ensure a regular and rich process to Take stock of progress against

transformation goals Assess new requirements, potential

and change capacity

Institutionalize common CI processes and language (e.g. idea generation, problem solving, knowledge/best practice sharing)

Explicitly cultivate a CI culture to capture the hearts and minds of all employees

Deliberately develop senior management capabilities to capture, channel and specify new opportunities

Actively capture and share learnings about managing transformations so that the capability becomes embedded

Sustainability: Key Success Factors

1111

2222

3333

4444

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Our Sustainability Plan:Simple and Straightforward

Continue to execute balanced approach Network-wide

On-going mini-diagnostics & mini-transformations

Fully integrate with performance/reward systems; succession

Decrease operating costs year over year

Instill healthy competition Sibling rivalry vs. burning platform

Strengthen OE team Central: leadership, trust, partnership and

advocacy

Global network: sites and regions

The place for high-potentials

- Coveted skills

Influential and persuasive

Business leaders vs. “techies”

Short-term Complete & execute “Wyeth Way of Working”

Strategic framing and vision Fully integrated and highly visible Active support/commitment from senior leaders Accountability: what gets measured gets done Above-site; “If you build it…” Enterprise-wide implementation

Drive it bottom-up & top-down AlliedSignal Wyeth

Enhance critical partnerships Strategic communicators HR and Learning experts R&D and Commercial

Become an active learning organization Learning valued; required at all levels “Go and see” DuPont, Toyota, others Bring the outside in

Long-term

22Transitioning to higher impact, sustainability and CI

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Key Tools and Processes

Diagnostic methodology Capability deployment

SLT, FLS and Mini-T

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Building Capabilities At All Levels

Site Leadership Team Site Leadership Team (SLT) Training(SLT) Training

Frontline Supervisor Frontline Supervisor (FLS) Training(FLS) Training

Mini-TransformationMini-Transformation OE TrainingOE Training

Power of Engagement Power of Stories Lean Leadership Performance Management

FLS Implementation Guide Mini-T mirror workshop Roles, responsibilities and

time prioritization Communicating and

engaging employees through change

Managing transition and change

Building individual and group trust

Accountability and empowerment

Coaching and feedback Delegation Flexible leadership Conflict resolution and

difficult conversations Basic lean awareness Visual management and

performance Root cause problem

solving

OE Training Implementation Guideline

Transformation Process tools for the mini-T coaches

Implementation Guide Current state MIFA Future state MIFA Quick changeover Just in Time overview Takt time 5S Man-machine separation 8 wastes Manpower scheduling Level scheduling

Standard work Line stop and call Mistake proofing Pull system Visual management OEE Airplane Game Variability game Level scheduling game SMED game T-shirt game Standard operations card

game

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Key Tools and Processes

Diagnostic methodology Capability deployment

SLT, FLS and Mini-T

Roadmaps Transformation and Future State

Site needs analysis and self-assessment Consulting tools

Waste walks, FL meetings, Performance Boards, 5 Whys?, and more

Structured knowledge management Communities of Practice Strategic communications

Global Recognition Site Best Practices Network Excellence Award

Replication Process

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Keys to Our Success

Set stretch aspirations In context with future state

Get the right leaders in place Aligned and energized Site and above-site

Engage all employees Beyond front line

Develop compelling change story Integrated with strategic communications

Make the change personal Significant emotional events Modify mindsets and behaviors

Drive focus and pace Get it 80% right & recalibrate accordingly

Invest heavily in capability building Address both “performance” and

“health” Foster data-driven decision making

“Act on fact”

Focus on three types of losses Waste, variability and inflexibility

Carefully scope Mini-T’s Narrow but deep Achieve ingrained and sustainable

change Resource for success

Sites and central Drive early visible change

Celebrate wins & recognize success Build confidence & have fun

Leadership, Learning and ListeningLeadership, Learning and Listening

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Transformations Fail When These Practices Aren’t Followed… How does your organization rate?

High High aspirations aspirations grounded in grounded in contextcontext

Have aspirations been set, and communicated to the organization? How were the aspirations for transformation developed? Are the goals optimized between business requirements, overall market potential and existing capabilities? Are the aspirations clear? Do these create energy on the front line? Are the cost savings goals incorporated into local budgets? Is local leadership held accountable for targets? What in the company’s past will enable or hinder this? Thinking about the objectives, what are short term versus long term and how would you prioritize? How are people adhering to these goals and objectives?

How personally are you and the senior team excited? How aligned are the senior leaders? How important is the transformation to the senior team (e.g., career defining)? Does the senior team have any zealots who are willing to lead the transformation? How have past operations improvements been led?? How successful were these and what were the lessons learned?

High High performing performing senior teamsenior team

How holistic have your performance improvement initiatives been? What role have other functions (e.g., HR) played in transformation? Have the technical systems translated into daily, standard operations? How integrated are the technical changes into people processes? Does the culture embrace changes? Are mindsets ready for large scale, continuous improvement? Have any pivotal roles needed to lead the change been identified? How important is the transformation to this group?

Balanced Balanced and complete and complete approach approach

How ready are your line leaders (VP to front line supervisor) to drive change? Are line leaders capable of driving change across all dimensions? How are line leaders skill sets developed? Is there a system in place to support line leaders to initiate and lead change?

Driven by the Driven by the “line” leaders“line” leaders

How are you making change scalable? Has the need for change been established? Has it been defined so that change can be replicated within local contexts? What are the cross-cutting initiatives that create a foundation for change? Are you leveraging a common approach and toolset? What existing initiatives could be harnessed? Is there enough capacity in the organization to drive initiatives? Is there an existing continuous improvement organization? Is it capable of enabling the transformation?

Designed Designed for scalability for scalability from the from the beginningbeginning

“The culture of a company is thebehavior of its leaders.

Leaders get the behavior they exhibit and tolerate.

You change the culture of a company by changing the behavior of its leaders.”

-- Larry Bossidy & Ram Charan

Execution: The Discipline of Getting Things Done

Back up starts here….

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Having the right people in pivotal jobs based on clear criteria

Managers seek the input of specialists for difficult problems/opportunities

People regularly engage in skill-building, most frequently on-the-job

Permanent tasks embedded in the line

People occasionally do other jobs across the same business process

Use of multiple methods (workshops, individual coaching, action learning)

Teams with clear roles Strong functional support CI steering group and

infrastructure Performance management with

target/path setting, visual tools, and an ongoing performance cycle

Talent management system with pivotal jobs assessment, talent management reviews, performance assessments

Formalized planning processes Standardized problem solving approach Knowledge building/sharing tools and processes

Training to open management’s eyes Regular, direct communication from senior management Front line teams hold short problem-solving sessions at the end

of every shift Individual front line staff suggest

specific ideas for improvement Front line staff participate in target

setting Front line teams use visible

indicators to track performance Clear road maps

Senior managers are personally and visibly involved at all levels of or the organization

Managers spend time working on front line teams Middle management provides daily role modeling on the

shop floor High-performing managers take on

roles that exceed their current competence

Specific Behaviors Drive Continuous Improvement

ContinuousContinuousImprovementImprovement

ChangeChangeLeadership andLeadership andRole ModelingRole Modeling

DevelopingDevelopingTalentTalentand Skillsand Skills

FosteringFosteringUnderstandingUnderstandingand Convictionand Conviction

Formal CIFormal CIMechanismsMechanisms

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2222 Performance Management System:Focus On What Matters

Cascade key drivers of value down to the front line…

Continuously track performance against action plans…

Set overall top-down targets Identify the few key drivers of value & mobilize

Track & adapt

CEO and top team set aspirations and aggressive targets…

…which then cascade down to the individual business groups and units through an iterative process

…set razor sharp front-line goals vs. technical limits…

…and engage in rigorous perfor-mance dialogue process at all levels

CEOCEO

SVPSVP

GroupGroup

Plant/Plant/unitunit

Identify Identify counter-counter-measuresmeasures

Identify Identify counter-counter-measuresmeasures

Update Update plansplans

Update Update plansplans

Monitor Monitor performance performance

Monitor Monitor performance performance

Review Review performanceperformance

Review Review performanceperformance

Coach Coach and and

rewardreward

Coach Coach and and

rewardreward

Daily/weekly/monthly

…provide production tools…

Frontline problem solving – “Minds of the many”

Expert problem solving – “Minds of the few”

…and mobilize

TargetTech.Limit

Value 1% Improvement

80 95 $3 million75 98 $1 million

– – –– – –– – –– – –

Mine Mine EPEP

ThroughThrough

Tons/hourTons/hour

AvailabilityAvailability

Perf.Today

9080

––––

revenuerevenue

Processing Processing

revenuerevenue

WetmillWetmill /AC /AC

contributioncontribution

WetmillWetmill /AC /AC

contributioncontribution

Processing Processing

contributioncontribution

Processing Processing

contributioncontribution

ThroughThrough --

putput

ThroughThrough --

putput

PricePricePricePrice

Roaster Roaster

contributioncontribution

Roaster Roaster

contributioncontribution

Variable Variable

costs ($/t)costs ($/t)Variable Variable costs ($/t)costs ($/t)

Fixed Fixed

costscosts

Fixed Fixed costscosts

Cash costCash costCash costCash cost

Tons per Tons per

hourhourTons/hourTons/hour

AvailabilityAvailabilityAvailabilityAvailability

RecoveryRecoveryRecoveryRecovery

GradeGradeGradeGrade ElectricityElectricityElectricityElectricity

ConsumConsum --

ablesablesConsumablesConsumables

Gas Gas

handlinghandling

Gas Gas

handlinghandling

OtherOtherOtherOther

LabourLabourLaborLabor

Mtce Mtce partspartsMtce Mtce partsparts

OtherOther

Open pit Open pit

costscosts

Open pit Open pit

costscosts

U/G costsU/G costsU/G costsU/G costs

Other costsOther costsOtherOthercostscosts

Capital Capital

chargecharge

Capital Capital

chargecharge

Mine EPMine EPMine EPMine EP

XX

++

XX

++

++

––

++ --

Waste walks

Shift huddles

Site needs assessments

Performance boards

“

31

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Understand who your best people are

Put the right people in the right numbers in the right jobs

…and visibly reward strong performance and systematically deal with under-performers

…support people, both formally and informally…

Po

ten

tia

l

Performance

B

A

A+

C

B

A

C-

C

B

Training Coaching

Develop , incent and reward people

Identify pivotal jobs…

…assess the critical gaps…

…and put the right people in the right jobs

Assess individuals in the organization…

…and rank them on their performance and potential

Create individual development plans…

Individual development plan

Train on EngagementAssign to retention project Rotate in 6 months

BRating

Really executes Rigorously plans and executes

Stays focused on what counts

Provides solutions, not excuses

Makes tough decisions

Relishes change Drives change

Thinks outside the box

_______ good ideas

Rallies the troops Inspires others

Earns trust

Develops leaders

Communicates effectively

Represents the best of Barrick

Recognizes excellence

Acts with integrity

Promotes safety, protects environment

Contributes to community

Focuses on shareholder value

4 – Towering strength, role model to others

3 – Solid, usually demonstrates

Name:

Completed by:

A. Personal Information

Date:

Current Position: Supervisor:

Experience at Barrick

B. Historical Background

Dates Site Position

Work experience in other companies

Dates Company Position

EducationDates Institution Degree/Diploma

Results against KPIs and other goals

C. Results

KPI or goal Target Result Comments

1.

2.

3.

4.

5.Other contributions during the course of this year

D. Leadership attributes – Barrick’s 5R’s

Rating 1-4

Stretch

Shine

Succeed

Search

E. Individual career aspirations

Are there any changes in responsibility or development opportunities you would like in the next year or two?

Are you willing to relocate to another site? Yes No Maybe

Performance Summary

Branch 52 31 4Pivotal job

Assistant Manager

Admin Assistant

Financial advisor #1

Customer Service Manager

CSR #1

Branch Manager

Wealth Management Manager

Customer Service Leader

Potential opportunity ($000)

V

V

CSR #2

CSR #3

Financial advisor #2

$950 $780 $600 $450 $670

V

Branch 52 31 4Pivotal job

Assistant Manager

Admin Assistant

Financial advisor #1

Customer Service Manager

CSR #1

Branch Manager

Wealth Management Manager

Customer Service Leader

Potential opportunity ($000)

V

V

CSR #2

CSR #3

Financial advisor #2

$950 $780 $600 $450 $670

V

Bonus

$

Performance

“C” Player

“A” Player“B” Player

VacantV

C

A

Change Leadership: Right People in Right Place Driving Change

Skills Grid

Category Poor GoodVery Good

Problemsolving

Leadership

Communication

Execution

X

X

X

X

Hiring profileRole:

Skills:

1111

32

33

3333

Use technical experts when needed

Deploy a robust, “best of breeds” toolkit relevant to basic materials industries

Apply a rigorous, structured problem-solving approach

Standardize Standardize and controland control

Define Define problem and problem and set goalsset goals

Analyze Analyze current current situationsituation

Generate Generate potential potential solutionssolutionsSelect and Select and

plan plan solutionsolution

Implement Implement solutionsolution

Evaluate Evaluate solutionsolution

DC

A

1

2

3

4

5

6

7

P

Distinctive, general problem-solving approach (e.g., McKinsey’s 7-step problem solving, Lean, orSix Sigma – DMAIC) systematically used to:

Fix problems

Proactively drive continuous improvement

“Academy” training center providingin-house training on best approach

Analytical tools selected based on their relevance and adapted to the specific manufacturing process

Selection, development and deployment of pivotal processes necessary to deliver value

Capability maps are useful for broad systematic improvement in all areas, not just those targeted for improvement

Mile wide vs. mile deep impact

Develops a common languageacross network

Unique expertise to solve highly technical problems

Highly skilled trades people and engineers who provide subject matter expertise and can be leveraged for general problem-solving acumen and change leadership know-how

Similar approach to address functional performance issues

Learning Organizations:Enhanced By Problem-solving, Tools & Expertise

33

34

Codification of successful operational frameworks and problem-solving approaches

Networks of people within and external to the line to support best practice sharing

Knowledge management and systems to capture and share learnings

High-potential, specially trained problem-solving leaders/ coaches outside the line

Lives longer than the program implementation; becomes the catalyst for change within the organization over time

Clearly defined facilitation/ coaching roles vs. line management

Create a dedicated center of excellence to coach line

operations

Define training approaches to up-skill and ensure continuous learning

Company-led programs to train leading practitioners within the organization, adopting a mix of techniques including

Learn by doing

Shadowing/coaching

Developmental assignments

Selective technical and analytical classroom sessions

Deploy knowledge management processes/

systems

Change Change coachcoach

Site Site Mgr 1Mgr 1

Area 1Area 1 Area 2Area 2

Site Site Mgr 2Mgr 2

Area 1Area 1

Change Change coachcoach

Area 2Area 2

Change Change leaderleader

Capability-Building System:Provides Coaching & Supporting Infrastructure

3333

34

35

4444

SensingA blend of organizational structures, processes and capabilities to identify and interpret internal and external opportunities

AdaptingIntervening decisively to change the organization so that it can move in new directions while preserving existing and letting go of old ones

Modify

The ability to act on new opportunities while preserving and enhancing existing activities and building competitive advantage

Capitalize

The ability to extract increasing value over time by complementing expansion/growth with operational improvements

Capture

Ability to capture important information, ideas, perspectives, and opportunities from a variety of internal and external sources

Channel

Ability to ensure that the captured opportunities are fully developed and then tested/evaluated against formal criteria

Specify

Ability to assess, prioritize and select available opportunities for value creation

Let go

The ability to stop old activities/ behaviors/ mindsets while having the appropriate systems/ processes to protect people and reduce fear

Systematically Re-assess Status:Draw Implications by Sensing & Adapting