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1 Strategic Deployment: A Step- by- Step Process for Planning, Implementing and Managing Change l P.O. Box , Houston, Texas Phone:

2 Introduction Change. It's the hardest variable of the Corporate Equation to control and manage. No matter how perfect your Processes and Systems of Management are, you must be prepared to flex and adapt as business conditions evolve, as they always do - Organic Growth? Great!! But you must manage the changes or they will manage you. For a long time!! Merger/Acquisition? Fantastic!! But integration of cultures, priorities, processes and systems can be overwhelming. Leadership Change? Time to learn the new Leader s direction and determine how it will be inculcated into his part of the organization. Technical Innovation? Whether you are implementing a major IT change or new state- of- the- art Assets in your processes, every person touched must be prepared and aligned to the objectives of the new installation. Re- organization? They happen all too often. Ensuring that nothing falls between the cracks as pieces move around the chess board is the challenge of the day. Consolidation? It s part of the business cycle, and winning companies plan for this as much as they do for growth during good times. Knowing where to cut and where to stand firm to support your company s mission is paramount. Calamity!! Events of the recent past demonstrate that organizations must be prepared to adapt when events, natural and otherwise, outside your control force change, whether anyone likes it or not. OR, Are you just trying to improve your organization to keep up with the competition by applying proven techniques that are moving your industry forward? These, too, require careful planning and coordination of your entire organization. All of these events, and more, require companies like yours to tightly align their resources and to successfully deploy effective tactics. You know the importance of servicing your customers, but the most challenging part is doing that in parallel with developing and deploying a meaningful, robust strategy to take your business to the next level. Regardless of your challenges, an effective methodology for Deploying your Strategies throughout your organizaition is key to success. Too many organizations rely on Tribal Knowledge or pride themselves on Firefighting to muscle change in, often creating more issues for the organization than they are solving. Many good Leaders have fallen victim to taking the actions that appeared to be their first best solution from their point of view, only to learn, after much effort and expense, that their direction was in conflict with another element of

3 the organization. For this and many other reasons, utilizing an integrated process like Stategic Deployment is PARAMOUNT to reaping the full benefit from your efforts, regardless of the changes that you are facing. How does it work? Protean Performance Solutions provides exceptional expertise in our Solutions Specialists who work with your team to facilitate them through a logical, clear process to build and deploy key strategies. The process steps are simple, but the process to achieve them effectively and in a short amount of time is complex. Working with your team, our Specialists will guide you through the following critical steps: 1. Clearly defining and articulating Your Company s Stategic Intent 2. Developing or enhancing your Value Stream Map (VSM) to identify Barriers, Opportuntiies and Trouble Spots you wish to overcome or avoid 3. Aligning your Value Stream to your Company s Stategic Intent and Priorities, eliminating costly Waste as you go 4. Developing your fully Integrated Deployment Strategy 5. Developing support for your Deployment Plan 6. Determining benefits and developing a Business Case (Determine Value) 7. Presenting Results to Stakeholders for approval and implementation Below are short summaries of each of these critical steps, along with a few examples and displays to aid in the understanding of our process: 1. Defining Your Strategic Intent Who Are You and Who Do You Want To Be? In this important opening discussion, great care is given to ensuring that a clear definition is reached regarding the identity of the organization and what it stands for. This is critical in the Strategy Development stage later, in that the Strategic Intent of the overall organization should be the driving force in determining every project and action undertaken in achieving that intent. Clues are found in Mission/Vision/Value Statements, Mottos, on Websites, in Company literature, in Annual Reports, in Communications from the CEO or the Board, or they may actually be clearly articulated and posted on every wall on every site, whether read or not. Regardless, this must be established early on in order for the team to share a mutual Vision to work toward. 2. Value Stream Mapping Define Your Needs The first major exercise for your team will be the development of a Current State Value Stream Map. Many organizations have already undertaken this difficult work on their own, but we find it important to revisit it, or to introduce it, if the segment with which we are working has not

4 successfully built their own. The reasons to start here are manyfold. With the understanding of the Strategic Intent of the company freshly in mind, team members will be asked to: Capture the organization s Value Stream at the 50 thousand foot level. This is important in that most companies who have tried to self medicate with this tool have gotten stuck for days, if not weeks, trying to complete the VSM, only to fail to cash the check when they finish. Our process moves your team QUICKLY through this process and captures only the pertinant data needed for your Strategic Deployment Document Barriers, Opportunities, and Trouble Spots throughout your Value Stream that may impact your Strategic Deployment success Group trouble spots identified into Themes that can help summarize interventions required that may mitigate or eliminate groups of issues at a time Quantify the WASTE in your Value Stream using our proprietary methodology to clearly understand the cost of wastes such as the classic eight wastes of Lean, misalignment, missing support, and many other hidden wastes that likely will be an issue as you deploy if not corrected. Develop initial cut at required interventions to take the first steps toward developing the Stategic Deployment Plan. Below is a live example of a quickly crafted Value Stream Map such as will be created by your team. More formal versions can be crafted after your initial session, but speed and accomplishment are paramount at this early stage. After the VSM is complete, as a group we analyze the Barriers, Opportunities and Trouble Spots to determine the level of effort required to resolve them. Each is assessed as needing either:

5 A Program, or collection of Projects that will take a year or more to complete A Project that can be completed in typically 1 to 12 months A Kaizen Event, taking 2 to 5 days A JDI, (Just Do It) that can be corrected immediately This categorization is very important in determining where the item will fit in our Deployment Strategy, and how we will approach each. Below is a live example of the resulting Catagorization Matrix from a previous client: Programs Projects Kaizens Just- Do- It 1. Turnback Reduction 1. Streamline input to Maximo and educate customer to reduce variability in submission process 2. Increase effective utilization of resources. Skills Management. Enhance employee skill matrix 3. Variability in Demand (CoV) 4. Strengthen TPM on key assets 5. Resource capacity loading analysis 6. Measures (KPIs) 1. Customer education on Work ID 2. The design / solution process is ad hoc 3. Reactive prioritization 4. Early declaration to key process association 5. Customer driven changes resulting in redesign / scheduling 6. Standardizing Paint, tools, plans 7. Operator Maintenance Program (Improve it) 8. Greater Partnership with customer (PdM Program) 1. Validate WO completed successfully /accurately 2. Close WO. Keep the WO system clear & accurate 3. Align Your Value Stream to your Company s Strategic Intent and Priorities Now with a better understanding of your Company s overall Strategic Intent, as well as a comprehensive look at the issues to be overcome in your Value Stream, we turn our attention to developing your 3 to 5 year Strategies to move toward the overall Strategic Intent. With the Themes developed above in mind, your team will be tasked with articulating the strategies that you will employ over the long term to achieve the Company s mission. Typically, a long list is brainstormed, considering all the challenges identified in #2 above, and captured by a facilitator. Next, the team is coached through a Modified Affinity exercise that allows a forced ranking of the captured strategies using criteria agreed to by the team as being the most important variables and values of the Company. The Strategies are ranked based on score, and the most

6 important ones which focus on supporting the Company s Strategic Intent rise to the top. Below is a live example of the output of such an exercise: Rating of Importance to Hamilton Sundstrand Project Inputs This list now forms the starting point at the 6 O Clock position for what will become your Company s Integrated Strategic Deployment Matrix (ISDM). 4. Develop Your Fully Integrated Strategic Deployment Matrix (ISDM) Once you have your Strategies Captured, it s time to begin the hard work. On the longest day of the week, your team will build, step- by- step, the roadmap to your Strategic Deployment. One at a time, they will tackle each of the following: Fine Tune the Long Term Objectives (3-5 Years), developed in #3 above Develop Near Term Goals (Next 12 Months) Develop Short Term Actions Required to Accomplish Each of Your Goals Develop Metrics (KPIs) to Measure the Success of the Strategic Deployment Assure Effective Linkage Throughout Profitability Sustainability Safety Growth Customer Satisfaction Employee Satisfaction Total Drive pride of ownership and accountability of business performance to all levels of org Grow 5S and TPM leadership and process to improve reliability Institutionalize a formal internal communications methodology Improve and sustain application of ACE to be the benchmark of Gold sites Develop our employees cross functional capabilities and value to align with long term business objectives Become the employer of choice with national recognition Make QCPC part of our culture to improve flow and through put Achieve financial committments for period costs and capital expenditures Optimize IFM to best in class UTAS site Maximize the effectiveness of our CMMS Become the benchmark UTAS site for customer experience

7 The schematic for the development of your ISDM is portrayed below: The sequence of the activities are shown on the outside perimeter to help you understand the flow. The most important steps are the corners, where alignment all the way from Long Term Strategies through developing KPIs are linked. This ensures that the ISDM is truly integrated. Below is a live example of an ISDM from one of our clients. Please note that included in this example in the lower right is a listing of the owners of each of the KPIs used to track progress, and that in the upper right corner is a fully populated RACI (Resource, Accountable, Consult, Inform) Matrix, ensuring that all Actions and KPIs have a ownership and visibility in the organization. 1

8 5. Prepare to Launch!! Now that you have your Strategic Deployment Plan in hand, it s time to prepare the organization for the launch. Your team will produce each of the following with a Protean Professional guiding their work: High- level Milestone Plan Deployment Governance Plan Communications Plan Executive Steering Team Selection and Launch Plan Site Steering Team Selection and Launch Plan Any Required Tailored Deployment Planning And much more.. 6. Determine Your Projected Gained Value Is It All Worth It? A key part of any undertaking is determining whether or not the anticipated benefit is worth the investment in both time and energy. To get a clear picture, our Professionals guide your

9 team through the process of valuation, developing line of sight visibility to benefits to be had both directly and indirectly as a result of your Deployment. Below is a live example of Process Effectiveness improvement calculation from a recent client. Though not stated on the displays below, this work done during one of our workshops resulted in projected bottom line benefits of over $5 Million. 7. Execute!! Work Your Plan / Make it Happen!! With your Plan in hand, your Valuation complete and approved by Stakeholders, and enthusiasm born of engagement and ownership of the Strategic Deployment process, your team is ready to go forward and implement!! Our Professionals stand by to aid, assist, augment or stand in for any and all functions in the Deployment, but the decision to use outside help is always yours. We pride ourselves in our effectiveness and in the knowledge our experienced team brings to the Deployment, and we hope that you will take full advantage of that as you continue your Strategic Deployment journey.

10 In Review: The Protean Performance Solutions Strategic Deployment Workshop This workshop is conducted by Protean Experts who have vast experience in leading organizations like yours through the Strategic Deployment journey. Having this expertise guiding your team through the process ensures and greatly accelerates a well- defined path forward, By fully engaging your team in the process, they begin the path to being your internal Champions and internalizing this valuable skill set so that your organization retains and sustains all improvement resulting from the workshop. During the workshop, your team will participate in all aspects of Strategic Deployment Planning and will be the authors and presenters of the final products. They will: 1. Review Corporate Intent / Vision Define Who You Are and Who You Want to Be 2. Develop Your Value Stream Map Evaluate Current Processes Document Barriers, Opportunities, Issues Determine Themes Quantify Waste Develop Initial Cut and Categorize Required Interventions by Complexity 3. Develop Your Strategic Deployment Plan (ISDM) Link Your Overall Path Forward Develop Long Term Objectives (3-5 Years) Develop Near Term Goals (Next 12 Months) Develop Immediate Actions Required to Accomplish Goals Develop Metrics (KPIs) to Measure Success Assure Effective Linkage Throughout Determine Ownership for all Metrics Develop RACIs for All Actions and Metrics Consolidate Your Integrated Strategic Deployment Plan 4. Develop Your Deployment Support Plan Develop High Level Milestone Plans Charter Critical Actions Establish Deployment Governance Develop an Effective Communication Plan 5. Determine Benefits of Your Strategic Deployment and Develop Your Business Case (Determine Value) 6. Present Results to Stakeholders for Approval and Deployment Deliverables Expected outcomes from the Workshop include:

11 A clear, executable integrated pathway to the Goals you have set Quantitative prioritization of Objectives and Goals with a clear understanding of priorities and the reasoning behind them Clear linkage between Objectives, the efforts required to achieve them, and associated KPIs Clearly defined Accountabilities for execution and measurement of initiatives Organizational consensus on Must- Do/Can t Fail initiatives Vastly increased cultural understanding of strategic alignment A business case outlining the motivation for the effort to come Pride of ownership (ensuring quality and sustainability) Recommended Attendees Protean recommends between 5 and 10 participants per Workshop, representing as many of the key functional elements involved in your intended Strategic Deployment as possible. Specific Attendees will vary depending on the level of Deployment you are undertaking, and our Professionals can help you select the proper mix for success. In Conclusion Sample clients who have attended this workshop: Johnson Diversey American Air Filter Clarcor Air Filtration Hamilton Sundstrand BASF Our Clients say it best! This is the best workshop I ve ever been in, and I ve been in a lot! You guys have accomplished 3X what we typically get done. Thank you for your time and attention in reading this Service Offering brief. We hope it helps you better understand this powerful tool and answers most of your questions. However, should you desire additional discussion or have questions, please feel free to contact us at your convenience.

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