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NameTitle

PhoneEmail

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Agenda

Who we are and what we do Origins of the NOW Management System Great economic shift and mass customization Management System components Client results and testimonials Employee engagement Summary Consultants John Bernard’s upcoming book

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Who We AreCreators of the

A Fully Integrated and Closed-Loop Framework to Drive the Proactive and Disciplined

Execution of Routine Work and Initiatives

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What We Do

Guide leadership teams through the customization and installation of

evolutionary management practices

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Origins of the NOW Management System

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Origins of the NOW Management System

John Bernard’s has consulted with diverse global industries Technology, service, distribution, utilities, banking, insurance,

manufacturing, health care, education and government

More than 100 clients Nike, Baxter Healthcare, Tektronix, PacifiCorp, Kaiser Permanente,

and Standard Insurance

John has guided leaders and has an impressive track record as an executive Founder/CEO of a start-up professional services firm Senior vice president of a multi-billion-dollar financial services

company with responsibilities for 1,000 employees

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Origins of the NOW Management System

Built from John Bernard’s 30-year quest to develop a management system that enables talented people to achieve spectacular results

John played a major role in driving Omark Industries (Fortune 1000) to become an early leader in the U.S. quality revolution

Lean, Six Sigma and process improvement emerged from these pioneering efforts

John then spent two years studying lean, Kaizen and Six Sigma in Japan

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Management Waste

Ironically, John Bernard discovered that “management” is the most critical process

Yet, management processes receive the least attention and, generally, are very undisciplined

Management is burdened by tremendous waste

So, John applied leading-edge models to the process of management by building the Mass Ingenuity Management System

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1. Unclear Direction

2. No Line-of-Sight

3. Unclear Accountability

4. Inconsistent Language

5. Poor Issue Transparency

6. Inappropriate Resources

7. Inadequate Tools/Skills

Deadly Sins of Management7

Management Waste

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Management System Gears

Eliminate Fear

Reduce Variation

Pursue

Constraints

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What the Great Economic Shift Means

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1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

MASS PRODUCTION“You can have your car any color you want as long as it’s black”

GREATRECESSION

MASS CUSTOMIZATION“Which of our 32 colors would

you like your car to be?”

INTERNET

Capitalize on the Great Economic Shift

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Shift to Mass Customization EconomyThe internet gave birth to the Mass

Customization era

Mass Customization is a fundamental shift in customer needs and expectations because we can now easily access the world’s marketplaces

Mass Customization means if we want to compete in the future we have to be nimble enough to customize

Mass Customization is a marketplace revolution that demands a corresponding management revolution

“This economic crisis doesn’t represent a cycle.

It represents a reset. It’s an emotional, raw social, economic reset. People who understand

that will prosper. Those who don’t

will be left behind.”

Jeffrey Immelt CEO, General Electric

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NOWTHENDRIVER

ORGANIZATION

DECISIONS

IMPROVEMENT

USE OF DATA

PROBLEM SOLVING

SPEED

Customer Need

Process Centric

Decentralized

Micro-Improvements

Everyone

Standardized, Fact Based

Fast

Managerial Hierarchy

Functional

Centralized

Big Ideas

Management

Ad Hoc, Intuitive

Slow

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NOW Management System is a Proven Game Changer

Management is the most critical process Yet, management receives the least attention and lacks discipline By applying leading-edge models to the process of management,

Mass Ingenuity provides a

Fully integrated and closed-loop framework to drive the proactive and disciplined

execution of routine work and initiatives NOW Management System creates a rapid and sustainable

transformation

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Gain a Competitive Advantage in this Revolution

We can no longer afford to manage the “Henry Ford mass production” way

We must implement game-changing management practices

Installing the NOW Management System is our #1 greatest opportunity to significantly improve Employee engagement

Customer experience

Profitable growth

Waste

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Client Results and Testimonials

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Expected Results

• Organizations move at the speed of need

• Fired-up and engaged employees

• Employees act in real time to leverage every opportunity and knock down every obstacle

• Fewer errors

• Decreased costs

• Thrilled and loyal customers

• Edged out competition

• Increased profitability

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Typical Client Results

3 6 9 12 15 18 24

30x

24x

18x

12x

6x

0x

Return on Investment

MONTHSWaste

10-15% Reduction

Employee Engagement

30% Improvement

Customer Experience

20-25% Improvement

Profitable Growth

25-30% Improvement

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Client Testimonials“By implementing the Mass Ingenuity management system we have achieved across-the-board results beyond anything we had imagined.” — CEO and Dental Director of Major Northwest Dental Association

“Wow, what a positive change Mass Ingenuity made in our company! It catapulted us into the future with innovative thinking and great results. The Management System visually proved to our prospects and customers that we were the right supplier for them. The results were priceless! ” — Co-founder and CEO of Electronics Company

“The System of Management delivered as promised on increasing employee accountability. Our business is all about deep customer relationships so this benefit is fueling our growth.” — Founder and CEO, Professional Services Firm

"In the first three months we have knocked down the silos, began to think like an enterprise, and see future opportunity to become a true outcomes-based agency.”— State Government Director

"If I had to do it all over again, I would have implemented a management system framework before I invested in lean throughout the organization.”— State Government Deputy Director

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Employee Engagement

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NOW Management System Drives Employee Engagement

Prioritize and drive the execution of all work by connecting every employee to the key goals and ensuring they have the

maximum authority to act on

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29%

40%

31%ACTIVELY ENGAGED

DISENGAGED

ACTIVELY DISENGAGED

Data Courtesy of The Gallup Organization

Failing miserably

Employee Engagement Data

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General Motors

300

250

200

150

100

50

0

7

302

1983

7

302

Ideas Implemented Per Employee Per Year

ToyotaMotor

Company

June 1, 2009

Filed Chapter 11

BANKRUPT

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An idea that saves:

In a process done each day:

By others who do the same work:

Who work each year:

$2.00

10 times

12 colleagues

260 days

$62,400 savings

Micro-Ingenuity and Micro Economics

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Why Employee Engagement Matters

Research show that high engagement companies realized these ‐results when compared to low-engagement companies 19% increase in operating income

13% increase in net income

27% increase in earnings per shareSource: Towers Perrin and Peter Crush, “Employee Engagement ROI: Rules of Engagement”

Six months after implementing their Management System, one client increased employee engagement 16.67% Despite having a company-wide wage freeze for the prior 9 months

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Management System Components

A Fully Integrated and Closed-Loop Framework to Drive the Proactive and Disciplined

Execution of Routine Work and Initiatives

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Improve Customer

Experience

Reduce Costs

Accelerate Growth

FUNDAMENTALSRoutine Work

7-Step Problem Solving

BREAKTHROUGHSStrategic Initiatives

Quarterly Target Reviews

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Routine Work

Deliver the routine work with the fewest possible resources

Connect every employee with clear accountability

Transfer skills and authority to act to those who do the work

Create complete transparency about performance

NOW Fundamentals MAP℠

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Initiatives

NOW Breakthroughs MAP℠ Create and execute plans

proficiently

Communicate rationale, dependencies and risks

Set realistic expectations in line with available resources

Create complete transparency about initiative performance

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Discipline, accountability; need for action reinforced

Facts are out in the open to deal with reality

Constraints to goals are clear

People prepared and motivated to take effective action

Complete visibility of the organization’s performance

Accomplishments recognized

Opportunity to learn the business and expected behaviors

Target Reviews

Measuring Progress

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Typical Project TimelineAlignment with CEO

FUNDAMENTALS

BREAKTHROUGHS

TARGET REVIEWS

Leadership Team Input

Decision to Launch

Launch 3 6 9 12 15 18

Months**Project timeline can be compressed and is dependent upon leadership team availability

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Summary

Significantly alter the performance trajectory of your business

Make a move early in the recovery to gain market share in an expanding market

Tap into the talent of your people in ways you

have always dreamed of Prosper in the biggest shift in a century

Note: Discuss with Vince last

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Leadership Team

John BernardFounder, Chairman and Author

Aaron HowardPresident and CEO

Ed IsraelVice President of SalesKelly Ferguson

Vice President of Professional Services

Note: Vince’s suggestion is to delete this slide and replace with

next one on “Consultants.” I

don’t agree.

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Mass Ingenuity Consultants

All project leads are seasoned consultantsSpanning all industries and sectorsCompetencies include

Business acumen Executive and management experience Facilitating diverse teams and cultures Trusted advisors

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JOHN BERNARDAuthor, Executive, Entrepreneur,

Keynote Speaker & Consultant

Due Fall 2011