GE WORK-OUT

How to implement GE’s revolutionary method for attacking organizational

problems!!!!!Arnab Dasgupta(107)

Jai Dembani(108)Ankit Dhadda(109)

Isha Aditi Dhar(110)Duvvuri Ravishankar(111)

Deon Fernandes(112)

Narsee Monjee Institute of Management Studies

MBA, 2007-09

What is work-out??

The GE WorkOut process is a time tested method used to:

• Streamline & simplify existing processes • Eliminate non-value added work • Quickly identify, prioritize & meet new

business initiatives • Speed up decision making & implementation • Build an empowered, "ownership" workforce

G.E. WorkOut, developed at GE in the late 1980's, is being used with dramatic results at hundreds of organizations world wide.

The focus is on fast implementation of measurable improvements with clear lines of accountability - obtained with speed, simplicity, and self confidence. Used repeatedly, GE Work Out can help your organization become more lean, efficient, and responsive to changing market conditions

The Key Elements of WorkOut

People closest to the work…– Know it best– Have significantly more to

contribute to achieving business goals—and want to do so

– Will respond favorably to a team challenge

WorkOut aims to …– Create the forum for

dialogue and change– Eliminate bureaucracy

and barriers– Cultivate grass root

solutions

Actions begin immediately because…- Leadership decides ‘live’ on the recommended

solutions- Teams empowered to implement their

solutions with updates to leadership - Recommendations must be completed in 90

days

How does it help?• Infuses entrepreneurial spirit-greater speed,

flexibility, communication• Provides a focus on stretch• Develops systems’ thinking• Encourages lateral thinking-RAMMPP Matrix• Quick and critical analysis of ideas- Pay-off

matrix• Creating ownership• Injects rapid cycle change and fast decision

making

"Coming together is a beginning, keeping together is a process, working together is success." - Henry Ford

Creativity

Enthusiasm

Experience

WorkOut Involves Everyone

Top DownLeaders or managers identify a key business improvement goal, then challenge those closest to the work to recommend ways to reach the goal.

Bottom UpThose closest to the work make specific recommendations to meet the goal, then implement the approved recommendations within 90 days.

Pay-off matrix for a critical idea analysis

Overcoming resistance

• Create synergy among existing alternatives

• Nobody is perfect• Cost-effectiveness• Preach, profess ,

propagate- "Wasteful Work Practices"

Stages Planning Conducting Implementing

Time (days) 30 1-3 90

Participants Sponsor, Lead Facilitator, Champion, invited members

Sponsor, Champion, lead facilitator, team leader, team member, team facilitator, resource people, administrator, panelist

Recommendation Owners, other recruited members

Goal And Functions

i. Select theme, date, design session

ii. choose team leaders, team members, team facilitators, town meeting panelists, administrator, resource people

Analyze situation, give recommendation, approve action plans, give go ahead signal

Carry out action plan

Stages Of A Work-Out

Objective : What is the objective of this Work-Out in bottom-line business terms?

Improvement in actual performance, not in an area

Work-Out goal expression in a SMART goal statement : Stretch goal, Measurable, Achievable, Realistic, Time-related

Planning :

1. Identifying the problem2. Upper level organizational support3. Organizing a plan design team4. Recruiting a cross-functional team

Planning A Work-Out

Roles

Role Responsibilities Importance

Facilitation roles

Sponsor (A Sr.Manager)

Responsible for all the parts of the organization involved in the Work-Out

Mandatory

Champion Represents the sponsor at sessions and organizes review sessions. Responsible for detailed preparation & follow up.

Mandatory

Work-Out Consultant

Helps the sponsor make initial decisions about objectives and then works with the sponsor and champion to design the session and organize logistics

Mandatory

Analyst compile and prepare the data given to team members Optional

Facilitator Facilitators help the consultant prepare and run sessions, attend preliminary briefing sessions with the lead facilitator, and meet with team leaders to plan the team Sessions

Mandatory

Exp resource Specialists who are available during sessions Optional

Administrator organizes the logistics of the event Optional

Participatory Roles

Team leaders responsible for preparing their team for sessions Mandatory

Team Member Gather data, do some preliminary thinking, and are part of the team that solves the business Problem

Mandatory

• Introduction

• Brainstorming within small teams

• Presenting the ideas

• Developing the top 4 best ideas

• Decision making by the key Business Manager

Conducting a work out

Implementing Work -Outs

• Ensuring Accountability

• Work planning

• Providing management oversight and support

Stages Planning Conducting Implementing

Time(days) 30 1-3 90

Participants Sponsor, Lead Facilitator, Champion, invited members

Sponsor, Champion, lead facilitator, team leader, team member, team facilitator, resource people, administrator, panelist

Recommendation Owners, other recruitedmembers

Goal And Functions

i. Select theme, date, design session

ii. choose team leaders, team members, team facilitators, townmeeting panelists, administrator, resource people

Analyze situation, give recommendation, approveaction plans, give go ahead signal

Carry out action plan

Stages Of A Work-Out

Implementing Work -Outs

• Selecting the Implementation team :– In touch with the front line– Challenge traditional practices – Participate actively without

dominating– Strong orientation towards action

and results

Customizing Work-Out

• Time: A complex problem needs an “ Extended” Work-Out

• Distance: Organizations scattered geographically use Virtual Work-Out

• FLEX THE FOCUS

Bureaucracy – Busting

Process Improvement

Strengthening the Value Chain

Leadership Challenge

• Define, Clarify and communicate the Leadership Brand to everyone

• Assess Managers against Leadership Brand

• Invest in Managers Development enabling them to live with brand

• Reinforce the Leadership Brand

Embedding the Work-Out Process in Organization Culture

• Work-Out is an adjective• Stack the deck for success• Use Facilitators to show the

way• Build a support system• Enable managers to get

ready to deploy Work-Out• Set Specific Delivery Goals

Embedding the Work-Out Process in Organization Culture

• Publicize the success• Align your actions with your commitment• Reach the tipping point• Resource your Work-Out• Share the knowledge you gain• Apply Work-Out to other Programs

FINAL THOUGHTS