Transformational Leadership Professor Debbie Nightingale November 13, 2002.
Value and Enterprise Stakeholders Prof. Deborah Nightingale September 16, 2002 1 - D. Nightingale -...
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Value and Enterprise Stakeholders Prof. Deborah Nightingale September 16, 2002 - D. Nightingale - © 2002 Massachusetts Institute of Technology
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Transcript of Value and Enterprise Stakeholders Prof. Deborah Nightingale September 16, 2002 1 - D. Nightingale -...
Value and EnterpriseStakeholders
Prof Deborah NightingaleSeptember 16 2002
1 - D Nightingale - copy 2002 Massachusetts Institute of Technology
2 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Learning Objectives
Value creation framework
Enterprise stakeholders
Stakeholder value metrics
3 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating Value
ldquoHow variousstakeholders findparticular worth utilitybenefit or reward inexchange for theirrespectivecontributions to theenterpriserdquo
Source Murman et al Lean Enterprise Value Palgrave 2002
ValueIdentification
ValueProposition
ValueDelivery
FindStakeholder
Value
Develop andAgree to the
Approach
Executeon the
Promise
Dynamicand
Iterative
4 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Identifying Value
Identify stakeholders
What part of the program or process adds valuefor each stakeholder
Determine each stakeholder value
What kinds of exchanges are required toprovide this value
Establish stakeholder expectations and contributions
Find stakeholder value
5 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating a Value Proposition
Align stakeholders around the program value stream
Structure the enterprise value streamEach stakeholder will contribute their efforts orresources to the value stream in those ways fromwhich they can derive value
Establish clear communication of balancedexpectations with all stakeholders
Develop and agree to the approach
6 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Deliver Value to All Stakeholders
Add value at each step along the value steamin accordance with the value proposition
Execute the value stream using lean principles
Gather information and data to continue toimprove enterprise processes
Execute on the promise
7 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Value Creation is Dynamic and Iterative
Real world is not static
Changes in stakeholder values
Changes in who are the stakeholders
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
2 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Learning Objectives
Value creation framework
Enterprise stakeholders
Stakeholder value metrics
3 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating Value
ldquoHow variousstakeholders findparticular worth utilitybenefit or reward inexchange for theirrespectivecontributions to theenterpriserdquo
Source Murman et al Lean Enterprise Value Palgrave 2002
ValueIdentification
ValueProposition
ValueDelivery
FindStakeholder
Value
Develop andAgree to the
Approach
Executeon the
Promise
Dynamicand
Iterative
4 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Identifying Value
Identify stakeholders
What part of the program or process adds valuefor each stakeholder
Determine each stakeholder value
What kinds of exchanges are required toprovide this value
Establish stakeholder expectations and contributions
Find stakeholder value
5 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating a Value Proposition
Align stakeholders around the program value stream
Structure the enterprise value streamEach stakeholder will contribute their efforts orresources to the value stream in those ways fromwhich they can derive value
Establish clear communication of balancedexpectations with all stakeholders
Develop and agree to the approach
6 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Deliver Value to All Stakeholders
Add value at each step along the value steamin accordance with the value proposition
Execute the value stream using lean principles
Gather information and data to continue toimprove enterprise processes
Execute on the promise
7 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Value Creation is Dynamic and Iterative
Real world is not static
Changes in stakeholder values
Changes in who are the stakeholders
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
3 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating Value
ldquoHow variousstakeholders findparticular worth utilitybenefit or reward inexchange for theirrespectivecontributions to theenterpriserdquo
Source Murman et al Lean Enterprise Value Palgrave 2002
ValueIdentification
ValueProposition
ValueDelivery
FindStakeholder
Value
Develop andAgree to the
Approach
Executeon the
Promise
Dynamicand
Iterative
4 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Identifying Value
Identify stakeholders
What part of the program or process adds valuefor each stakeholder
Determine each stakeholder value
What kinds of exchanges are required toprovide this value
Establish stakeholder expectations and contributions
Find stakeholder value
5 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating a Value Proposition
Align stakeholders around the program value stream
Structure the enterprise value streamEach stakeholder will contribute their efforts orresources to the value stream in those ways fromwhich they can derive value
Establish clear communication of balancedexpectations with all stakeholders
Develop and agree to the approach
6 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Deliver Value to All Stakeholders
Add value at each step along the value steamin accordance with the value proposition
Execute the value stream using lean principles
Gather information and data to continue toimprove enterprise processes
Execute on the promise
7 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Value Creation is Dynamic and Iterative
Real world is not static
Changes in stakeholder values
Changes in who are the stakeholders
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
4 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Identifying Value
Identify stakeholders
What part of the program or process adds valuefor each stakeholder
Determine each stakeholder value
What kinds of exchanges are required toprovide this value
Establish stakeholder expectations and contributions
Find stakeholder value
5 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating a Value Proposition
Align stakeholders around the program value stream
Structure the enterprise value streamEach stakeholder will contribute their efforts orresources to the value stream in those ways fromwhich they can derive value
Establish clear communication of balancedexpectations with all stakeholders
Develop and agree to the approach
6 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Deliver Value to All Stakeholders
Add value at each step along the value steamin accordance with the value proposition
Execute the value stream using lean principles
Gather information and data to continue toimprove enterprise processes
Execute on the promise
7 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Value Creation is Dynamic and Iterative
Real world is not static
Changes in stakeholder values
Changes in who are the stakeholders
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
5 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Creating a Value Proposition
Align stakeholders around the program value stream
Structure the enterprise value streamEach stakeholder will contribute their efforts orresources to the value stream in those ways fromwhich they can derive value
Establish clear communication of balancedexpectations with all stakeholders
Develop and agree to the approach
6 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Deliver Value to All Stakeholders
Add value at each step along the value steamin accordance with the value proposition
Execute the value stream using lean principles
Gather information and data to continue toimprove enterprise processes
Execute on the promise
7 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Value Creation is Dynamic and Iterative
Real world is not static
Changes in stakeholder values
Changes in who are the stakeholders
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
6 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Deliver Value to All Stakeholders
Add value at each step along the value steamin accordance with the value proposition
Execute the value stream using lean principles
Gather information and data to continue toimprove enterprise processes
Execute on the promise
7 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Value Creation is Dynamic and Iterative
Real world is not static
Changes in stakeholder values
Changes in who are the stakeholders
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
7 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Value Creation is Dynamic and Iterative
Real world is not static
Changes in stakeholder values
Changes in who are the stakeholders
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
8 - D Nightingale - copy 2002 Massachusetts Institute of Technology
A Value Creation Framework
Enterprises
Program
CorporateGovernment
NationalInternational
Value Phases
ValueIdentification
ValueProposition
ValueDelivery
Most lean principlesand practices havebeen focused here
Opportunities
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
9 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Enterprise Stakeholders
CustomersEnd Users
Shareholders
CorporateLeadership
Society Unions
Suppliers
Partners
Employees
Multi-Program
Enterprise
Business Unit
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
10 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer View
Value as we define it is delivered in a timely fashion evenin anticipation of our needs
Our satisfaction appears to be the focus of all oursupplierrsquos activities
We are invited to get involved early in the design process
Our supplier understands our need for low life-cycle costand superb quality
OUTCOMES More customers
Greater market share
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
11 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Workforce ViewI am proud to be an employee and feel my skills are valuedas a resource for the companyI enjoy coming to work everyday and understand how mywork adds value for customers
Continuous and cross-functional training helps empowerme to make decisions and create a leaner enterprise
I can get the necessary information for decision makingwhen I need it and how I need itI am rewarded both as an individual and as a team memberfor my contributions OUTCOMES
Better worker retention Fewer sickabsent days More innovation
1048766 Greater productivity
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
12 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Senior Leadership View
Balance needs of all stakeholders and encourage valuecreation throughout the enterprise
Create a shared vision of the enterprise with valuedefined for all stakeholders
Establish a process-based enterprise using integratedteams that are aligned with customer value streams
Strategic goals and enterprise metrics are created andunderstood by all levels of the organization
Organizational learning is encouraged and bestpracticelessons learned information disseminated
OUTCOMES Long-term corporate leadership Better executive compensation
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
13 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union ViewFeel like full strategic partners in the enterpriseUnderstand market forces can cause ldquotoughrdquo decisions butwant to be in on the decisions in shaping the future
Positive contributor to the enterprise by enabling work NOTby withholding laborFeel a sense of pride in the work they help do and theproducts they help provideWork for long-run success of the enterprise not simplyshort-term job quotas
OUTCOMES Better salaries for employees Long-term job stability Fewer union conflicts HR duties shared with union
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
14 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Stockholder ViewDelighted with increased profitability from enhancedoperating margins and salesUnderstand that the delivery of value to the customer isthe core business objectiveEnterprise integration enables globalization and marketgrowthFinancial community values the increased operatingefficiencies and the company shares these financial gainswith the other stakeholdersResources freed up in the lean transformation are taskedwith innovating and creating growth opportunities
OUTCOMES Higher ROI
1048766 Long term growth
15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
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15 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Partner ViewFully integrated in design development and productionof the productProductions schedules are aligned and open to all in thevalue chainSupplier is assisted by his customer to achieve Leanand is appraised of potential business opportunitiesDelivers products just in time to point of useOpenly share ideas on product and processimprovement that will benefit the entire enterpriseEquitable sharing of profits throughout the enterprise
OUTCOMES Greater sales Less overhead and stock Reduced demand amplification
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
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-
16 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal ViewPleased to have this organization in their community
The organization provides jobs and participates in theimprovement of the community
The environment is considered important to the organization
The local society is willing to provide infrastructure support tosustain the organizationPartnership between organization and society makes thecommunity a desirable place to live
Long term partnership Improves local economy Increased local societal well-being
OUTCOMES
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
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- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
17 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Lean Enterprise Value For All StakeholdersDelivers Results
LeanEnterprise
SatisfiedStakeholders
Strategicoutcomes
18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
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- Slide 35
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18 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS INTERESTS IN AN ENTERPRISESustainability ofthe EnterpriseShare Price inthe MarketSustainability of the EnterpriseResponsivenessto ConcernsSustainbility ofthe EnterpriseExpansion in Em-ployment Opport
Growth inMarket ShareGrowth inProfitsShare inProfitsQuality inProductsGrowth inMarket Share
Job Security
Growth inProfitsFinancialRatios
Job Security
Value inProducts
Fair Pricing
Tax Pay-ments
Expansion intoNew MarketsManagement ofCorporationQuality of WorkEnvironmentInnovation in ProductsOn-Time AcctsReceivable
Quality of WorkEnvironment
Innovation in ProductsInformation onCorporate Affairs
Information Sharing
Quality in OverallService SupportEarly DesignInvolvement
Externalities
Goodwill ofCorporationGoodManagementOn-TimeDeliveriesInformationSharing
CorporateCitizenship
Corporation
Shareholders
Employees
Customers
Suppliers
SocietyCommu-nityGovernment
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
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- Slide 7
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- Slide 9
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- Slide 27
- Slide 28
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- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
19 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ValuesContributions
STAKE HOLDERS CONTRIBUTIONS TO AN ENTERPRISE
Corporation
Shareholders
Employees
Customers
SocietyCommu-nityGovernment
Suppliers
Capital Facilities
Financial Fore-castingAnalysis
LabourServiceExpertise
Money
Products (PartsRaw Materials)
Manpower
Directionand Strategy
Capital
IdeasInnovations
Drive andCompetition
DesignInput
Quality ofLife
LegalEntity
Feedbackon Value
CorporateCulture
Feedback
IdeasInnovat
Services
ManagementExpertise
DesignSpecifications
Brand Recogni-tion
Policies
Inter-FunctionalIntergration
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
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- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
20 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Customer Value
Includes Acquisition Community End User and System Beneficiary
Function to Requirements
Reliability
Availability
Product Performance
Defects
Failure Rate MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
MaintenanceRepairOverhaul Time
On-Time Delivery
Just in Time Capability
Product ServiceQuality
Relationshipwith
Corporation
Cost ofOwnership
CycleTime
CUSTOMERSATISFACTION
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
21 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Shareholder ValueEarningsShare
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market ShareCompetitors
SubstitutesBranding
RampD Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
Return
Risk
MarketPosition
GrowthPotential
ExecutiveLeadership
ExternalRelations
SHAREHOLDERSATISFACTION
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
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- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
22 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Supplier Value
Early Involvement (design development production)
ProductProcess Improvement
Market Information
Demand Information
Design Information
Production Information
TrainingAssistance with Process Improvement
Supplier Certification
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporations Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
Relationshipwith
Corporation
Financial
SUPPLIERSATISFACTION
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
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- Slide 25
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- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
23 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Employee Value
Company ReputationPersonal Pride
Employee Empowerment
Individual
Team
Lost Time Incident Rate
Salary
Benefits
Bonus
Skills are valued
Safety
EnvironmentOSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Cool place to work
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Quality of Life
Compensation
WorkEnvironment
Career
ExternalFactors
EMPLOYEESATISFACTION
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
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- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
24 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Societal Value
Corporate Tax on Profits
Environmentally Friendly Practices
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Quality of Work Environment
Adherence to Regulations
Universities
Professional Societies
Industry Associations
Financial
EconomicAttractiveness
of Industry
CorporateCitizenship
AffiliatedOrganization
SOCIETALSATISFACTION
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
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- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
25 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Union Value
Contribution to Long-term Corporate Success
Headcount Protection
Position ProtectionJob Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Union Teaming with Corporate Leadership
Employment
Influence
PoliticalAction
Committees
UNIONSATISFACTION
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
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- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
26 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Corporate Value
New Product DevelopmentNew Market Development
RevenueExpenses
Stock ratingBond rating
Market ShareBarriers to Entry
CompetitionSubstitutes
Branding
Contribution to Innovation
Productivity
TurnoverCost (Salaries amp Benefits)
Safety
SickAbsent daysLoyalty
Customer satisfactionLoyalty
SalesTimely Accounts Receivable
High Quality
Low Cost
Timely Delivery
Fewer Conflicts
Infrastructure Support
Long Term Partnership
ProfitsGrowth in profits
Other financial ratiosCash flowAbility to raise capital
Market Position
Growth Potential
Continuous Improvement
Knowledge Management
Employees
Customers
Suppliers
Unions
Society
Financia
Sustainability
Stakeholder
PoliticalPublic
CORPORATESATISFACTION
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
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- Slide 25
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- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
27 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder ____________
High
CurrentPerformance
Low
Low High
Relative Importance
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
-
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
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28 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Customer
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Customer Value
bullProductService Quality
bullRelationship with Corporation
bullCost of Ownership
bullCycle Time
Cost OfOwnership
ProductServiceQuality
Relationshipwith Corp
CycleTime
30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
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30 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder ValuebullReturnbullRiskbullMarket Position
bullGrowth PotentialbullExecutive LeadershipbullExternal Relations
31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
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31 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Shareholder
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Shareholder Value
bullMarket PositionbullExecutive Leadership
bullReturnbullRisk
bullGrowth Potential
bullExternal Relations
ExternalRelations
Risk
Return
ExecutiveLeadership
MarketPosition
GrowthPotential
32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
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32 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
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33 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Supplier
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Supplier ValuebullRelationship with CorporationbullFinancial
Relationshipwith Corp
Financial
34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
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34 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
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-
35 - D Nightingale - copy 2002 Massachusetts Institute of Technology
Stakeholder Union
High
CurrentPerformance
Low
Low HighRelative Importance
Major Factors Contributing to Union Value
bullEmployment
bullPower
Employment
Power
- Slide 1
- Slide 2
- Slide 3
- Slide 4
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