RTE “Roadmap To Excellence” Making Progress Towards Excellence:

Donald W Hoffert Introduction to RTE

dhoffert@RoadmapToExcellence.comwww.RoadmapToExcellence.com

612-298-7858

Organization

Operating

Excellence

Business

12/15/20092

Sr LeadersGovern/Soc Res

Strategy Development

Strategy Deployment

CustomerVoice

Customer Engagement

Measurement of Org performance

Management of Info- ITWorkforce Enviroment

Workforce Engagement

Work Systems

Work Processes

Product/Process Results

Customer Results

Workforce Results

Leadership/Finance/ Market Results

World Class 2006 actual 2005 actual

What does Organizational Excellence Look like?

World Class Org Levels

Award Winners have 40-50% higher profit and growth rates than average S&P 500 companies

World Class PerformersRTE LLC

Selected Clients

3

Strategic Alignment

Build Capability to

Deliver

Assess Current vs.

Best Practices

ROI based Roadmap for

Change

Roadmap to Excellence" A 4 step accelerated approach: Align your team, Assess current vs. best practices, establish an ROI basedRoadmap and build Capability to deliver results.  

External Environmen

t

Internal Environmen

t

Do the right

Stuff- 1st

Internal Learning Culture-External targeted assist

Good to Great  bestselling author Jim Collins on "Why Some Companies Make the Leap and Others Don’t" ...“I see the Organizational Excellence process as a powerful set of mechanisms for disciplined people engaged in disciplined thought and taking disciplined action to create great organizations that produce exceptional results.”

Drivers

Vision-Mission- Values

Customer-Markets

Focus

Strategy

Measures-Targets

Engine

Core Work Processes-Technology Engaged Employees

Organizational Alignment = Results

12/15/2009RTE LLC 5

8

Strategy planning & deployment processes utilize linkages between KPIs, Metrics, TTIs (targets to improve)

Functional Metrics

Product Mgmt

Creative Design

Sourcing

Operations

Client Service

HR

Corporate KPIs

Revenue

Operating Income

Cash Cycle

Perfect Order

Employee Satisfaction

1. Which KPI(s) need improvement?

TTIs

Process Improvement

Projects

2. Which key processes need improvement to impact KPI?

Strategy Planning & Deployment

Employee Performance

3. What projects & TTIs will deliver needed process improvement?

8

Strategic Alignment

Build Capability to

Deliver

Assess Current vs.

Best Practices

ROI based Roadmap for

Change

Roadmap to Excellence" A 4 step accelerated approach: Align your team, Assess current vs. best practices, establish an ROI basedRoadmap and build Capability to deliver results.  

External Environmen

t

Internal Environmen

t

Do the right

Stuff- 1st

Internal Learning Culture-External targeted assist

Good to Great  bestselling author Jim Collins on "Why Some Companies Make the Leap and Others Don’t" ...“I see the Organizational Excellence process as a powerful set of mechanisms for disciplined people engaged in disciplined thought and taking disciplined action to create great organizations that produce exceptional results.”

The Assessment is Based on “Validated” Framework For Excellence

Drivers

Customer &Market Focus

Customer &Market Focus

StrategicPlanning

StrategicPlanning

LeadershipLeadershipOperations

Focus

OperationsFocus

Workforce Focus

Workforce Focus

Core Work Results

ResultsResults

Measurement, Analysis, and Knowledge ManagementMeasurement, Analysis, and Knowledge Management

12/15/200911

Sr LeadersGovern/Soc Res

Strategy Development

Strategy Deployment

CustomerVoice

Customer Engagement

Measurement of Org performance

Management of Info- ITWorkforce Enviroment

Workforce Engagement

Work Systems

Work Processes

Product/Process Results

Customer Results

Workforce Results

Leadership/Finance/ Market Results

World Class 2006 actual 2005 actual

Assessment is an “online tool” to highlight key focus areas to drive toward best practices.

World Class Org Levels

Award Winners have 40-50% higher profit and growth rates than average S&P 500 companies

World Class PerformersRTE LLC

Strategic Alignment

Build Capability to

Deliver

Assess Current vs.

Best Practices

ROI based Roadmap for

Change

Roadmap to Excellence" A 4 step accelerated approach: Align your team, Assess current vs. best practices, establish an ROI basedRoadmap and build Capability to deliver results.  

External Environmen

t

Internal Environmen

t

Do the right

Stuff- 1st

Internal Learning Culture-External targeted assist

Good to Great  bestselling author Jim Collins on "Why Some Companies Make the Leap and Others Don’t" ...“I see the Organizational Excellence process as a powerful set of mechanisms for disciplined people engaged in disciplined thought and taking disciplined action to create great organizations that produce exceptional results.”

Road Map – ROI based Project Selection Matrix

0 1 2 3 4 5 60.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0CONTRACT/LT

PORT POS

PHYS NETWK

SIOP

LEAN-SIGMA

PRICING

MFG FULFILL

VMI DATA GOV

INV VELOCITY

PLM

OPS LT

PERFECT ORDERWECC

DFM

CTP

EDIPDQ

EFFORT

BEN

EFIT

High

Medium

Lower

Quick HitNote: Bubble diameters reflect relative sizes of Benefit-to-Effort Ratios

The Change Journey

Every Journey Starts With A Destination

…and a starting point

Guides Know Where You’re

Headed……and help you

get there

Each Traveler May Use A Different

Mode……but always has an

itinerary

Key is Knowing Where You’re

At……and when to

correct the course

The Compelling

Case For Change

OCM Leadership

Training

Localized Plans &

Communication

Metrics & Measures

TOOLS & TACTICS

14

14

Strategic Alignment

Build Capability to

Deliver

Assess Current vs.

Best Practices

ROI based Roadmap for

Change

Roadmap to Excellence" A 4 step accelerated approach: Align your team, Assess current vs. best practices, establish an ROI basedRoadmap and build Capability to deliver results.  

External Environmen

t

Internal Environmen

t

Do the right

Stuff- 1st

Internal Learning Culture-External targeted assist

Good to Great  bestselling author Jim Collins on "Why Some Companies Make the Leap and Others Don’t" ...“I see the Organizational Excellence process as a powerful set of mechanisms for disciplined people engaged in disciplined thought and taking disciplined action to create great organizations that produce exceptional results.”

17

ManagementCommittee

Project Cycle Gate Overview

One page slide overview

Final Priority

Analyze ImproveMeasure ControlProject

Definition

Establish Priority

ProjectLaunch

Validate Close

Gate

Gate

Gate

Gate

Gate

Gate

Gate

Division Champion & Sponsor

Master Blackbelt & BlackbeltTeam Members

Executive Kickoff:• Final project screen and prioritization based on predetermined criteria• Identify Champion• Identify Black Belts to lead projects• Re-prioritize periodically and gate Black Belt project starts

Division Project ID & Launch:• Determine business opportunities• Identify potential projects from strategy, financial, customer and process levers• Initial screen based on predetermined criteria• Enter project definition into eTrackerTM

• Prioritize divisional projects • Champion: identifies Team Members, supports issue resolution when necessary and attends Team Launch & Gate review meetings

Team Launch / Active Project Lead:• Lead Team & Project management• Enter project Management information into eTrackerTM

• Lead Team Launch & Gate review meetings• Train team members on Six Sigma methodology• Issue resolution• Celebrate quick-hit wins• Track project results• Report results• Master Black Belt mentors Blackbelt through project

Active Project:• Team Members attend project launch, team meetings, & gate review meetings• Build Six Sigma process knowledge• Responsible for task completions

Project Closeout:• Management Committee, Champion, Sponsor, and Blackbelt review project results• Champion & Blackbelt update eTracker•Monitor project results• Celebrate wins / Share lessons learned• Report results / Control for long term

SteeringCommittee

18

… Project-stage gate mgmt and right tools at the right time…Lean tools in bold ….

An integrated Lean - Six Sigma training course for Black Belts typically covers all the tools listed here (Lean tools in bold). A $250-$500,000 project completion demonstrates learning.

Define Measure Analyze Improve Control

• Project Selection Tools• PIP Management

Process• Value Stream Map• Financial Analysis• Project Charter• Multi-Generational Plan• Stakeholder Analysis• Communication Plan• SIPOC Map• High-Level Process

Map• Non-Value-Added

Analysis• VOC and Kano Analysis• QFD• RACI an d Quad Charts

• Operational Definitions• Data Collection Plan• Pareto Chart• Histogram• Box Plot• Statistical Sampling• Measurement System

Analysis• Control Charts• Process Cycle

Efficiency• Process Sizing• Process Capability C&C

• Pareto Charts• C&E Matrix• Fishbone Diagrams• Brainstorming• Detailed “As-Is” Process

Maps• Basic Statistical Tools• Constraint

Identification• Time Trap Analysis• Non-Value-Added

Analysis• Hypothesis Testing• Confidence Intervals• FMEA• Simple & Multiple

Regression• ANOVA• Queuing Theory• Analytical Batch

Sizing

• Brainstorming• Benchmarking• TPM• 5S• Line Balancing• Process Flow

Improvement• Replenishment Pull• Sales & Operations

Planning• Setup Reduction• Generic Pull• Kaizen• Poka-Yoke• FMEA• Hypothesis Testing• Solution Selection

Matrix• “To-Be” Process Maps• Piloting and Simulation

• Control Charts• Standard Operating

Procedures (SOPs)• Training Plan• Communication Plan• Implementation Plan• Visual Process Control• Mistake-Proofing• Process Control Plans• Project Commissioning• Project Replication• Plan-Do-Check-Act

Cycle

Donald W Hoffert President, Roadmap To Excellence

Certified Business Excellence Examiner Certified Project Management Professional Certified Supply Chain Lean Sigma Black Belt Certified Leadership Coach

11170 Meg Grace Lane

Suite 201

Eden Prairie , Mn 55344

Cell 612-298-7858

dhoffert@RoadmapToExcellence.com

www.RoadmapToExcellence.com

For more info….