1. 1 The Jacksonville Lean Consortium Presents…

2. 2 Building a Dream Team Culture: “People Powered Lean” January 28, 2010

3. 3 Or People are Better Than Materials!

4. Who Before What 4

5. 5 “The most important process in your organization is the process that describes the relationship between the leader and their people. It is the only process that matters.” Mike Petters President, Northrop Grumman Newport News October 21, 2006

6. Right Up Front People are irrational, unpredictable, and incredibly talented..is that strange? YES> deal with it! Every person is extraordinary is some way It is the Leaders Job to know what their people want People and Lean: Stability First = Trust; then Continuous Improvement Long Term Thinking Required and steady pressure on a “Big Rock” carries the day. TMG has the same issues & challenges as our partners –Values Driven –Strategy Based –Focused on Winning 6

7. 7 People are not Rocket Science… they are harder! Joe Hogan, President GE Medical

8. 8 Core Beliefs Start with the end in mind! …Take a Systems Approach Be in the business of making hard things easy…not easy things hard. People are good and want to do the right thing It is the organizations responsibility to create an environment for its’ people to be successful…and our people’s vote counts more than ours. If you believe the workers can only be as good as their leader then you also believe leaders can only be as good as their leaders! Every organization has a limited bandwidth for change Culture vs. Change and Leading Change Requires Trust and Trust Requires Stability Business is a Team Sport Turf, Ego, and $$$ and the end of the day it is about…

9. 9 Army Basketball Team 1976-1977

10. 10 Business is a Team Sport Think Hard: Are we organized for success and doing the right things? –Right Plays –Right Rules –Right Positions Work Hard: Are we executing the plays? –Putting the right people with the right skills in the game to run the plays –Motivating them to produce and Win! Talk: Communicate –Everything is constantly changing –Providing Aggressive Leadership

11. 11 Dream Team Business Goals Create an atmosphere of ownership Increase profitability Create a condition that produces “First Time Quality” Continuously improve safety rates Improve customer satisfaction through increased responsiveness to critical customer concerns Continuously identify and eliminate waste

12. 12 Task Force 2-4 Cavalry Tactical Operations Center Team Feb 21, 1991 - Northern Saudi Arabia

13. 13 Workshop Learning Objectives “Take a Good Idea Home” Know the importance of Team Stability, Engagement and Trust Understand how to organize your Team for success. Understand that Recruiting, Trying Out, and Making the Team is a key value added activity. Investing in the Current Workforce Development Process to optimize headcount while increasing productivity and production capacity. Focus on Playing to Win by developing your most valuable assets.. 1st Line Leaders and their immediate Managers. Know the principles of how to build your Benchstrength to reduce long term risk. Keeping Score and building Teams that win over the long haul

14. Are you in the right Workshop? Exercise 14

15. Do you believe it is possible to have a Dream Team at work? 15

16. When was the last time you were on a Dream Team? How did you know? Exercise 16

17. Agenda January 28, 2010 7:00-8:00: Continental Breakfast 8:00-12:00: Building a Dream Team Culture 12:00-12:30: Lunch 12:30-2:00 Jacksonville Sheriffs Office Case Study 2:00-4:00Break Out Sessions and Workshops 4:00-4:30Wrap Up and Closing 17

18. 18 Take a Blue Slip Our Way to Communicate and Facilitate Our Journey!

19. 19 Take a Blue Slip What do you want to learn today?

20. 20 Today we will generate a lot more questions than answers… ….and that is OK PS: The answer is: “It Depends”

21. What is Corporate Culture? Culture: The predominating attitudes and behavior that characterize the functioning of a corporation. 1. Culture refers to an organization's values, beliefs, shared assumptions, and expected behaviors. 2.In general, it is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups. 3.Cultural statements become operationalized when executives articulate and publish the values of their firm which provide patterns for how employees should behave. 4. Firms with strong cultures achieve higher results because employees sustain focus both on what to do and how to do it... 5. Discouraging Culture: no shared values; lack of trust; blame culture; focus on problems, not opportunities; diversity is not celebrated; failures are not tolerated; people lose confidence in their leaders and systems... 21

22. 22 The Power of People: Increasing Team Engagement to Create a High Performance Culture Team Engagement Theory

23. What is Engagement? –The Theory How do you measure it? –Engagement Assessments How do you improve it? –Methods and Best Practices

24. 24 Team Engagement Theory Team = Leaders and the Led Organizing for Success by applying the principles of Team Sports

25. Vision and Mission Leadership without a Goal is irrelevant. Goals without a Plan encourage activity not productivity Plans align the team and assign responsibility, authority, and accountability from the Senior Executive to the lowest Team Mate. Alignment shows every team member what they need to do everyday for the team to Win. When every team mate is engaged to execute the plan then the Team Wins! 25

26. Engaged Leaders Reduce Uncertainty and Increase Situational Awareness 26

27. 27 Team Engagement Requires Trust Leaders will provide: –Clear direction –Appropriate Resources –Expert Advice –Feedback and Coaching –Growth Opportunities –Reward and Praise –Fair Treatment Led will: –Treat the company like their own –Hold each other accountable for doing the right thing –Give early warning of problems –Have the courage to ask questions

28. 28 “Trust” Exists in very personal, irrational, and operationally volatile terms between the Leader and the Led Trust is a function of Situational Awareness High Trust increases SPEED and decreases COST Low Trust decreases SPEED and increases COST

29. 29 Vertical Dyad Linkage Theory The Linkage Power Depends On… 1. Leaders Managing Personal Relationships –Vertical Dyad: Leader Led x number of direct reports –Employee performance, productivity, and engagement depend on their relationship with their IMMEDIATE Supervisor 2. Leader and Led continuously Creating Shared Mutually Supportive Goals –The Employee’s Goals and Needs –The Organization’s Goals and Needs as articulated by the Leader –Requires continuous Goal Alignment within Developmental Plans and continuous Feedback

30. 30 Organizational Goals –Cost –Schedule –Quality –Safety Individual Goals –Compensation –Opportunities –Responsibility –Work Environment –Recognition Communication Leader Awareness Goal Alignment Led Leader to Led Linkage Can only occur when there is a conversation between the Leader and the Led about the Led! Authentic Communication Tools Performance Agreements Career Maps Individual Development Plans Mentoring Leadership Though Engagement

31. 31 Take a Blue Slip When was the last time you had a Goal Alignment Session with your direct reports? When was the last time you had a Goal Alignment Session with your boss?

32. 32 It is All About the Relationship between the Leader/Leds and the Goal… Led(M) Leader Led(I)Led(O) GOAL

33. 33 Signs of Engaged (In-Group) Teammates High Trust Low Task Definition Needs High Relationship Needs Psychologically committed to the company Consistent levels of High Performance Innovative and a drive for efficiency Intentionally build supportive relationships Clear about role outcomes expected Passionate, high energy, and enthusiastic Never run out of things to do Loyal to workgroup and company Broaden what they do and build on it Positive constructive criticism

34. 34 Signs of Actively Disengaged (Out-Group) Teammates Low Trust High Task Definition Needs Low Relationship Needs Physically present but psychologically absent “What can I take” rather than “what can I give” Share unhappiness about work with peers “I’m OK but everyone else is not” Service prevention rather than service provision Not productive but always has excuses Inability to move from problem to solution Normal reaction starts with resistance Low commitment to company Might sabotage or manipulate solutions Isolation, low trust

35. 35 Signs of Dis-Engaged/Satisfied/Middle Group Teammates Meeting the Basics Confusion or inability to act with confidence Low risk response No real sense of achievement Making up their own game Not always committed Show negativity but not underground

36. 36 This is the behavior of what type Team Mate? 1.Engaged 2. Disengaged/Satisfied 3. Actively Disengaged

37. 37 Engagement Assessment Instrument 1.Who provides your daily work instructions? Name:________________ 2.Do you know what you are supposed to do everyday? 3.Do you have the materials, tools, and equipment you need to do your work correctly? 4.Do you have the skills to do your work correctly the first time? 5.Are you incentivized to do your work as quickly and efficiently as possible? 6.When was the last time you received feedback on your work? 7.Does your Leader care about you as a person? 8.Is there someone that helps you improve your performance? 9.Do you have the courage to ask questions and offer ideas on how your Team can get better? 10.Are you helping your Team Win? 11.Do your Teammates hold each other accountable for doing the right thing and doing our work correctly the first time? 12.Have you and your Leader discussed your progress and how you can better contribute to the Team? 13.Do you know what you need to do to get ahead in the company? 14.Is your Team Winning? 15.Trust: a.For Teammates: Do you trust your leader? b.For Leaders: Do you trust your team members? 16.If you were offered a promotion would you accept it? 17.Are you seeking a new job?

38. 38 Leader:____________________ TEAM ROSTER (Led) _______________ Actively Disengaged Disengaged Date:________________________ Engaged Team:________________ Step 1: Current Team Status?

39. 39 Developing an Engaged Team Strategy Increase the Engaged (In-Group) Decrease the Actively Disengaged (Out-Group) Facts: –Little movement from Out to In –More movement from In to Out due to Leaders breaking the Goal Alignment Contract/Agreement

40. 40 The Key to Success Disengaged/Middle Group 1.New Employees make a decision within first 48 - 72 hours from introduction to immediate supervisor. 2.Dis-Engaged Employees are those “…just putting in my time” but not actively doing harm. They may be Situationally Engaged. They can be influenced by Leaders and their Engaged Teammates. Strategy: Focus on the Disengaged/Middle Group to move them into the Engaged/In Group as quickly as possible. What is your plan to create Engaged teammates? One at a time!

41. 41 Engagement Improvement Tools 1.Change your Leadership techniques based upon Engagement Assessment results/insights 2.Better matching to job which leverage strengths vs. mechanical job assignment 3.Use your Engaged Teammates to recruit Disengaged Team Mates 4.Task Based Coaching 5.Provide Training 6.Focused Leadership under normal operational circumstances 7.Leverage internal Churn Opportunities 8.Take advantage to external Turnover 9.Focus on New Teammates to create Engaged Teammates Quickly 10.Improve Leader to Led matching; especially with New People 11.Allow subordinate Leader input/selection 12.Improve Team Stability 13.Train Teammates in key engagement skills 14.Personnel Actions as required 15.Change the Batting Order 16. Build a Better Plan

42. 42 Leader:____________________ TEAM ROSTER (Led) _______________ Actively Disengaged Disengaged Date:________________________ Engaged Team:________________ Step 2: Where do you want to be?

43. Individual Engagement Improvement Worksheet Name: _____________ Current Engagement Level: ___________ Goal Alignment Discussion(s) Date: ___________ Engagement Improvement Plan: a. b. c.

44. Engagement vs. Satisfaction Test Question 44

45. 45 2009 Industry Overview Engaged: 29% Not Engaged: 54% Actively Disengaged17%

46. 46 Opportunity for Improvement 25% of the working population are ignored by their supervisor –Actively Disengaged: 40% of them are in their workplace –58% are Not Engaged –2% are Engaged Source: Gallup

47. i4cp Engagement Data 29%: Leaders are acting to improve engagement 15% of employees believe their leader knows how to engage the workforce 24% of companies are training leaders to engage their workforce 47

48. 48 Getting Out of the Box… Big Picture Thinking!

49. 49 REQUIRED Level of Performance CURRENT Level of Performance Performance Gap Measures of Performance …It is All About Business Performance! Resources Required

50. 50 Business Improvement Hypothesis If we completely align our Lean Journey with our People SYSTEMs we will: –Improve Quality –Improve Production to Headcount Ratio thus Reducing Labor Cost per product –Reduce Defects through focused Continuous Improvement –Reduce Lead Time to Increase Market Share –Increase production capacity and… –Improve PROFIT margin …by optimizing the plant’s physical production capacity to our production process.

51. 51 The Lean House without Waste

52. 52 Business of People “Team Engagement” The Mission: Provide right Leaders with right People in the right numbers, in the right skills, at the right time, at the right cost to meet business needs. The Goal: An agile, competent Team capable of moving at the speed of business and improving “bottom line” performance.

53. 53 Dream Team Hypothesis If we align the organization and improve leader behaviors then we will increase team engagement and improve business performance. 53

54. 54 Organizing for Success Theory and Application

55. 55 Lean Goals Improve Quality Eliminate Waste Reduce Lead Time Reduce Total Costs Process Materials Cost (People) Equipment Through Near Real Time Visibility over :

56. 56 A SYSTEM to Align People to Process obtaining Employee Engagement Process Process Materials Materials Cost Cost Equipment Equipment People The Requirement

57. 57 Business Process Sales/Quoting Customer Orders Receiving Components Assembly Finished Goods Processing Sampling Scheduling Planning Staging Sequencing Purchasing Components Pulling Components Sterilizer Ship to Distributor/Customer

58. 58 Value Stream Map How do we create value?

59. 59 The SYSTEM that produces value is your… ORGANIZATIONAL SCHEME

60. 60 Value-Adding Activities ….transform materials and information into products the customer pays for Non-Value-Adding Activities ….consume resources, but don’t directly contribute to the product and/or the customer Non-Value-Adding but Required ….consume resources, but are required by government regulation or company policy

61. 61 Value Stream to Cell Map LipsAssemble/ Tack Lug and Beam Welder Weld 1*Weld 2*Weld 3 Production Cells Who is going to do it?

62. 62 Organizational Scheme Analysis

63. 63 Org Chart

64. 64 SS OM 1S MU NE GM OM SS 1S GT NE Organizational Scheme GM: General Manager OM: Operations Manager SS: Shift Supervisor 1S: 1 st Line Supervisor MU: Make Up Supervisor GT: Go To Employee E: Employee NE: New Employee Vertical Dyad Linkage EE

65. 65 Organizational Alignment We continue to be organized vertically in stovepipes yet we create value horizontally. - - Jim Womack Long Tail manufacturing requires greater agility yet we rarely change the way we operate to create the conditions for increased agility. We are running different plays but from the same formation creating waste everyday.

66. “My Leaders are working harder than ever but we don’t seem to be making much progress” 66

67. 67 Insight I love my leader; I hate my company Why? –Because the company “forces” my leader to do bad things. –My leader cares about me but they are in a “no win” situation. –I would never want to be a leader in my company

68. 68 Organizational Structure can “KILL” Leaders and their people because it forces failure no matter what anyone does! Joe Hogan President GE Medical

69. Must Knows Which Leader is the “Heartbeat” of your business everyday? Which Leader holds the “Heartbeat” Leader in the palm of their hands? Have you created an environment where they can Win? 69

70. 70 1.Know how the business makes money 2.Evaluate Responsibilities of each level 3.Look for Common Themes that flow from level to level 4.Look for Unique Responsibilities on each level 5. Identify how they interface with People, Data, and Equipment at each level 6. Define Planning Horizons at each level Developing Tasks Methodology

71. 71 Key Factors “Line of Sight”, Explicit, and Fixed harmonization of Accountability, Authority, and Responsibility ERP Impact Execution or Analysis ? Identification of Organizational “Tipping Points” Leader Churn

72. 72 Core Business Data Element Number of Products Invoiced Production Line Uptime

73. 73 Core Daily Business Activity Manufacturing Production Supervisors Operations and Daily Checks Scheduled Maintenance Unscheduled Maintenance Engineering and Maintenance Operators and Maintainers Chief Maintainers and Maintenance Foreman Production Line Uptime Foreman

74. 74 PM Upper Level Production Organizational Scheme PM: Plant Manager PRM: Production Manager QM: Quality Manager EM: Engineering Manager AM: Administration Manager PDM: Production Dept. Manager QMPRMEM PDM DepartmentProductionQualityEngineeringAdmin/WH # of Employees124103330 AM

75. 75 PRM PS PM QMEM PDM CM O Organizational Scheme - Production - PM: Plant Manager PRM: Production Manager QM: Quality Manager EM: Engineering Manager AM: Administration Manager PDM: Production Dept. Manager GPS: Gen. Production Supervisor PS: Production Supervisor MS: Maintenance Supervisor CM: Chief Maintainer M: Maintainer LO: Lead Operator O: Operator NO: New Operator O MM LONO GPS MS AM CM M Area of Interest

76. 76 1 st Line Leader Geometry CM: Chief Maintainer M: Maintainer LO: Lead Operator O: Operator NO: New Operator ENG: Engineering MAINT: Maintenance ENG MAINT PEOPLEPROCESS

77. 77 Key Job Activities and Accountability by Level Planning Horizon Scheduling/Overtime Approval Responsibilities Daily Focus (Execution or Planning) Communication Tools with Subordinates Communication Tools Laterally Communication Tools up the Chain Report Generation Responsibilities Level of involvement in Production Issues Continuous Improvement Responsibilities Ability to Discipline People Key Performance Metrics Solely Responsible for ____________

78. 78 Scope of Responsibilities Chief Maintainer Planning Horizon = 1 Day Focuses on today and working with People to maximize Machine Uptime Key Performance Metric: Quality Cans per Machine Spoilage Changeover Time Unscheduled Maintenance Repair Time Communicates verbally/non-verbally to Team Communicates verbally to Supervisors and Managers Inputs and monitors production data

79. 79 Scope of Responsibilities Supervisor Planning Horizon = 4-Day Work Week Focuses on Weekly Production Schedule Key Performance Metric: Quality Cans per Line Spoilage Safety Attendance/Scheduling Labor Costs Communicates Verbally to Chief Maintainers Communicates Verbally and via Data System to Managers Prepares Production Reports and Conducts Analysis

80. 80 Scope of Responsibilities Manager Planning Horizon = 6 Months Focuses on Monthly Production Schedule Key Performance Metric: Quality Cans per Line Spoilage Labor Planning Communicates electronically w/ Plant Manager Prepares Production Reports and Conducts Analysis with Recommendations Conflict Resolution Hourly Personnel Decisions Continuous Improvement

81. 81 Scope of Responsibilities Plant Manager Planning Horizon = 12 Months Focuses on Customer Satisfaction Key Performance Metric: Profit/Loss Customer Retention Communicates electronically and via reports with Ball Corporate Salaried Personnel Decisions Budget Preparation and Management

82. 82 Mission Essential Task List (METL) Matrix MISSION ESSENTIAL TASKSChiefCSGS/COSPRMPM MAINTAINS SITUATIONAL AWARENESS XXXXX COMMUNICATESXXXXX COMMITTED TO SUCCESSXXXXX LEADSXXXXX TECHNICAL COMPETENCEXX USES THE COMPUTERX MATCHES PEOPLE TO JOBSX DOES JOBS RIGHT THE FIRST TIME X SOLVES TODAYS PROBLEMSXX PLANSXX DEVELOPS SUBORDINATESXXX CONDUCTS ANALYSISX REMOVES BARRIERSXXX SYNCHRONIZES OPERATIONSXX BUILDS TEAMSX STRATEGIC PLANNING X 82

83. 83 THINK Strategically… Continuous Improvement “Changing the Conditions ” …ACT Tactically: “Day to Day” operations to meet business objectives 1.Cost 2.Schedule 3.Quality 4.Safety

84. 84 Leader Compression When more than one Leader level is working the same problem simultaneously. The Boss always Wins! The Subordinate Leader Loses… The Subordinates are confused We are killing alligators at a high rate of speed! But…Who is draining the swamp?

85. 85 Continuous Improvement Over Time Current State Future State Perfect State TIME Success = Product Produced within Cost, on Schedule, no Re-Work, Safely

86. 86 Leader Lanes Time Current State Future State Perfect State SUPMGR PM SUP

87. 87 Apollo 13 Houston… We Have a Problem! Example Practical Exercise

88. 88 Summary Start with the end in mind… Organization Charts show reporting relationships Organizational Scheme describe how you run your business and it changes by itself Is there Waste in your organizational scheme? Do your leaders know their lane and more importantly does everyone else? Are you Organized for Success? You MUST get this right!

89. 89 Break

90. 90 On Boarding Goals Jim Collins Right People On the Bus Wrong People Off the Bus Right People in the Right Seats (Matched with the Right Leaders)

91. 91 Are you forecasting your labor as you forecast your business? Production needs drive labor requirements… How far out are you looking? What skills will you require? Current or New? Lead Time from labor requirement to competency? Who is responsible for managing it? What models do you use? What options do you have?

92. 92 REQUIRED CURRENT Options: Re-allocate Current Employees Hire Experience Hire New People Work Overtime Hire Temporary Labor Outsource Increase Productivity Change the Process (Lean) Increase Capacity (Automate) Measures of Performance Labor Acquisition Options Best Recruiting Pipelines? Resources Required

93. Data Driven Labor Forecasting 93

94. Workforce Snapshot as of July 31, 2009 HELPER / IMPROVER JM 1 /2 (SF / W) JM 3 / 4 (SF / W) JM 5 (SF / W) TEMP (SF / W) LEADMAN (SF / W) FOREMAN (SF / W) ONBOARDING SINCE JAN 1 Incl Prod Lbr JAN 125 / 2117 / 1313 / 913 / 1336 / 2518 / 514 / 2HIRED TODAY29 / 1920 / 1213 / 912 / 1539 / 1418 / 513 / 235 + / -+4 / -2+3 / -10 / 0-1 / +2+3 / -110 / 0-1 / 0DEPART TOTAL 48322227532315 HI-PO 42 OPEN REQ 0 / 0 POOL JAN 1 1 / 23 / 1TODAY August 12, 200994 Total: 220 Leader to Led: 38/182 Foreman/Leadman/Worker/Temp: 15/23/129/53 NOTE: JAN 1 personnel numbers started 4/27/09

95. Major Job Titles by Population - Time in Position/Service – (Data Report Date: 6/25/2009) Job Title # in Position Average Years in Position Average Years of Service Maximum Years of Service Minimum Years of Service Maintainer6210.2214.2536.611.06 Operator376.727.7532.100.76 Material Handler209.7613.4036.583.40 Chief Maintainer (Includes Maintenance Chiefs) 199.8923.4036.719.11 Maintenance Mech.119.7212.1929.000.34 Electrical Tech.913.85 29.671.20 Supervisor (Prod)94.5724.3733.454.48 Manager813.6524.0435.8510.76 CPM / Chief CPM816.0822.1436.899.36 QA Chiefs / Insp.75.6916.3836.265.99 Warehouser420.0632.2836.7128.96 95 = Area of Concern = High Risk

96. Major Job Titles by Population - Aging by Job Title – (Data Report Date: 6/25/2009) Job Title # in Position Average Years of Age Maximum Years of Age Minimum Years of Age Maintainer6246.2162.3829.76 Operator3744.1661.1020.89 Material Handler2046.6060.4132.82 Chief Maintainer (Includes Maintenance Chiefs) 1950.0858.9230.78 Maintenance Mech.1145.2159.4827.04 Electrical Tech.944.8660.0127.60 Supervisor (Prod)951.0359.8837.90 Manager853.0260.4739.01 CPM / Chief CPM852.7562.7436.99 QA Chiefs / Insp.746.4961.7330.84 Warehouser455.2158.7951.94 96 = Area of Concern

97. 97 2009-2014 Production Aging 2009 - 2014 Manager Prod. Supervisor / Maint. Supervisor Chief Maintainer / Maintenance Chief MaintainerOperator Current Position Population 39186237 Retirements (28 Years Service, 60 Years Old) 225102 Promotions to Back Fill Positions 025 1332 Projected Personnel Actions (Transfer, Vol., Term. etc.) 15% / 5 yrs 01395 Expressed Interest in Advancement (Advancement Desire Survey) 28154026 Substitute Leader Pool for the Position (with Advancement Desire) NA1419NA Potential Hiring Requirement NA 539 # Vacating Current Position 05133239 Ratio of Near Term Potential Successors to Vacancies 8:214:519:13NA RISK: Potential for 105% turnover at the Operator position and over 50% at the Maintainer position.

98. 98 Near Term Headcount Risk/Opportunity Job Title 2009 Current Headcount Dec 2010 Expected Headcount (of Current Pop.) Promotion / Hiring Forecast Reduction via Attrition Opportunity Jan 2011 Potential Headcount Maintainer6251+11-260 Operator3732+5-433 Material Handler2019+1020 Chief Maintainer (Includes Maintenance Chiefs) 1916+3019 Maintenance Mech.11 00 Electrical Tech.98+18 Supervisor (Prod)98+109 Manager88008 CPM / Chief CPM85+3-35 QA Chiefs / Insp.76+16 Warehouser42+2-22 Totals194166+28-13181

99. 99 The On Boarding Program Recruiting Trying Out Making the Team Getting the Right People on the Bus…

100. On Boarding Hypothesis Belief: Engaged Employees are your Most Valuable Assets And Great Leaders create Engaged Employees Then A World Class On Boarding Program is mission critical to business performance Sustainable Growth Sustainable Growth Engaged Employees Engaged Employees Engaged Customers Engaged Customers The Right Fit The Right Fit Identify Individual Strengths Identify Individual Strengths Real Profit Increase Real Profit Increase Great Leaders Great Leaders Stock Increase Stock Increase On Boarding

101. Why is Talent Acquisition so Important? Products and marketing strategies are commodities with LIMITED/NO uniqueness People differentiate our business People are unique and want to Win! Our On Boarding System is a direct reflection of our Culture –Engaged People Compete –Human Machines Do Tasks as Assigned “A century ago, the most valuable U.S. corporation was U.S. Steel, whose primary assets were smokestack factories. Today’s most valuable corporation is Microsoft, whose most valuable assets go home every night. Companies that want those assets to return every morning must pay attention to the workplace.” From Fortune Magazine’s introduction to its 100 Best Companies To Work For

102. 102 Our People’s Vote Counts More… Create a system that enables both the company and the applicant to make a “Win-Win” commitment… –First day should be a “commitment” day; not a “let’s see how this goes day” It is Management’s responsibility to create an environment for our employees to be successful… –Not an environment that encourages them to fail

103. On Boarding Pitfalls Lack of a Lean System-wide approach to On Boarding/Teammate Acquisition Short Term Focus One size fit all program Insufficient Metrics and Accountability Lack of Operations Leader Buy-in and participation

104. New Hires Want... “Successful Companies Understand The Needs of Their People” To know what is expected of them from the start The materials, equipment, and skills to do their work right The opportunity to do what they do best everyday To receive recognition or praise To feel that people care about them as a person Encouragement to develop To feel they are part of the solution To understand and live the vision & mission To see and hear that others are engaged and focus on quality To feel they have a friend at work To be aligned with their leader To feel they can learn and grow

105. What is the Emotional Take Away from Your On Boarding Process “People don’t remember what you said or what you did, but they always remember what they felt.” Diana Oreck; Ritz-Carlton, VP Global Learning Critical Questions in Your Orientation and Onboarding Process 1.“What’s the emotional take-away here? What is the way we are doing this right now, and what emotions would a new employee take away from this experience?” 2.“Are these the emotions we want to leave them with?” If your answer is no, then ask “What emotions would we like them to experience?” and “How can we create an experience that would naturally elicit these?”

106. 106 Reality...Limited Leader Focus Current State On Boarding Process 1.Operations asks for a person 2.HR finds someone 3.HR brings them on the job 4.New person either sinks or swims As fast as HR is hiring...Ops is firing 90% of the Senior Managers reported their On Boarding Process was outdated and didn’t focus on Engaging the new hire 89% of new hires don’t have knowledge needed to “hit the ground running” 46% of newly-hired employees will fail within 18 months, while only 19% will achieve unequivocal success 100 “Fortune 1000” Companies Surveyed

107. Knowing Where You Are Core Metrics (Past & Present) –Attrition When does it occur Why is it occurring Who hired that individual Where is it occuring –Time to Competency Proficient in first job = to others –Headcount to Labor Hours Ratio –Cost of Hiring –Hiring Cycle Time –Any Production Metrics related to Attrition Data Capture Targets –Current State Map –Why do people stay –Why do people leave –Where do best come from –Prior job patterns –What are your differentiators –What does best New Teammates look like –Who Owns the Process 107

108. New Hire Retention Year# Hired# Retained as of December 31 % Retained 200456135963% 200549721543% 200627426194% 200756853093% 108

109. 109 Turnover Tracking

110. 110 Hiring Cost Calculation Averaged 35 Resumes per Hire in 06-07 (30 External, 5 Internal) Klein Test: $300/candidate (after successful interview) Drug Screen: $30/test Background Check: $25/check Online Job Postings: $295/hire Touch Time Hourly Rate Conversions: (Median Ranges for Pay Grade) HR AA: $20.77/hr. HR Manager or Inside Sales Team Leader: $31.15/hr. Hiring Manager: $40.85/hr. Manager: $60.53/hr. Director: $80.30/hr. Steps requiring 5 minutes or less of Touch Time are not included in the Cost to Hire calculation. This Cost to Hire calculation generates a very conservative figure, but offers a repeatable baseline for the ROI Analysis of Future State changes.

111. 111 College Transfers Adult Education Current Employees Community Colleges High SchoolsCommon Skills Training Tech Schools Orient, Screen & Identify Candidates Building Pipelines Business Metrics: - Decrease Cost of Hiring - Reduce Attrition (pre- and post- hiring) - Reduce Hiring Cycle Time - Improve New Hire Integration - Improve New Hire Job Performance - Decrease New Hire Time to Competency Military State Employment Offices Temp Agencies Other Companies Interview & Assess Skills Generate Labor Req’s Hiring Decision Increase CostDecrease Cost 1 st Job Skills Development

112. 112 Employee Acquisition Create a New Hire “Pull System” –When Production needs people they “create an order” –Production demand “cues” the Employee Acquisition SYSTEM. –Reduce cost of Hiring by utilizing Subject Matter Experts to recruit, identify, and evaluate the skills of applicants. –Optimize the use of Government Provided Employee Services to Outsource as much as possible. –Reduce hiring cycle time to improve responsiveness. –Reduce touch time to reduce cost.

113. 113 Forecast By Labor Category Minimum: ___ Maximum: ___ Generate Labor Req’s Key Questions: What is your Labor Forecast? vs. What is your capacity to on board new employees?

114. 114 Example Hiring Forecast and Schedule Month # Hires July: 10 August: 5 Sept: 0 Oct: 10 Nov: 5 Dec: 0 Total: 30

115. 115 Production Identifies Requirement HR Posts Requisition & Sends to OET HR Receives Applications HR Schedules Interviews Welding Test Hiring Decision Drug Screen and Physical Applicant Given Report Date HR Admin Inprocessing 8 Hours of Video OSHA Training OJT Training Current State Hiring Process Offer Sent Production Interviews Cycle Time: 10.3 Weeks Cost: $2,008 per new hire (Labor costs only)

116. 116 The On Boarding Process “Opportunity for Improvement”

117. 117 Production Identifies Requirement HR Posts Requisition & Sends to OET OET Screening HR Receives Applications HR Schedules Interviews Conducted; Welding Test Hiring Decision Drug Screen and Physical Applicant Given Report Date HR Admin Inprocessing Plant Manager Meeting Shift Supervisor OSHA Training Process/ Quality Training Modernized Hiring Process Offer; New Hire Packet Sent Cell Training Structured Orientation and Training Process Cycle Time: 5.8 Weeks - 43.7% reduction Cost: $1,420 per new hire (Labor costs only) – 29.3% reduction

118. 118 Pre-Qualifying Questions Are you t least 18 years old and eligible to work in the United States? Are you willing to work at a Flat Standard Starting Rate of $14/hr. or $11/hr for training pay? Are you willing to work 2 nd Shift only (no 1 st shift hires)? Do you have reliable transportation?

119. 119 High Performance Candidate Profiles Fluxcore Job Experience or Training with stable work history Weld Test Classification of FQ, Q or MQ to be considered. At least 18 years old and eligible to work in the United States Knowledge of Blueprints & Symbols Willing to Work Overtime 3 rd Shift Only (no 1 st –2 nd shift) Reliable Transportation Referral from a engaged employee or family member Apprentice school or technical college training

120. 120 Realistic Job Previews Link to full RJP

121. 121 Identify Recruiting Differentiators Working Condition –“My boss tells me what to do and then lets me do it.” Work Environment –Inside vs. Outside Pay and Benefits Workforce Stability Shift Schedule Free and convenient parking Overtime Opportunities

122. 122 Potential Pipelines Current Employees Adult Education Employment Agencies Military Community Colleges High School Graduates Technical School Graduates College Transfers College Graduates Other Companies State and Local Agencies

123. 123 REQUIRED CURRENT Sources: Current Employee Referrals (A): 29% Company Web Site (P): 22% Job Boards (P): 13% Recruiting Agencies (A): 11% Print Want Ads (P): 8% Rehires (A): 6% College Recruiting (A): 5% Career Fairs (A): 4% Walk Ins (P): 2% Measures of Performance Best Recruiting Tools Talent Acquisition Magazine 2006 (A): Active (P): Passive

124. 124 Orientation and Screening Conduct Initial Orientation by providing Realistic Job Preview to each interested person. Candidates passing minimal screening criteria are provided applications. Validates Pre-Requisite Experience as required and provides copy of skills assessment/test. Ensure application completion Classifies Recruit Provide Recruit with Hiring Process Information and Tracking Sheet Orient, Screen & Identify Candidates

125. 125 Interview or “Try Out” Goal: Create a situation where the employee and the company can determine if the new employee has the skills and attitudes to be successful. Features: 1.Plant Tour 2.Skills Assessment 3.Attitude Assessment 4.Hiring Decision 5.New Teammate Skills Development Plan

126. 126 Focus on the Applicant Interview and Test Schedule –Pre-schedule appointment times to reduce cycle time. –Understand you company’s interview and test capacity. –Must support the Applicants Schedule NOT just making things easy for the interviewers. –May require 2 nd Shift/Weekend availability for interviews and tests to support currently employed workers. –Applicant Leaves with Administrative In Processing Packet and an Assigned Leader who maintains contact.

127. 127 Example Candidate Classifications 1.Hire Now: Exceeds All Criteria 2.Hire: Meets All Criteria 3.Near Hire: Will meet All Criteria within 30 days with self-directed development 4.Far Hire: Will meet All Criteria within 120-180 days with self-directed development 5.No Hire: Will not meet minimum criteria for at least 6 months 6.Best Athlete 7.Has unique skills outside of current Job Search Requirements

128. 128 New Teammate Orientation Goal: Create a “world class” first day. –New Teammate Leaves after first day thinking: Wow! These guys really know what they are doing. I’ve talked to the Plant Manager and my Boss. I understand what we do here and how I fit in. I know the how to work safely. OSHA Training. (Plant Focused) I know what I need to do to be successful in this company. I have a hard hat and a locker with my name on it. I know I will get paid. I know what I need to do tomorrow. Let’s go to work!

129. 129 World Class 1 st Day Thursday’s 9:30 AM: Arrive at Plant Met by Production Manager Turn HR New Hire Packet to HR Rep Issued Locker with Name on it Issued Helmet with Name on it Digital Picture taken Issued Equipment Check Employee provided PPE 9:45 AM: Plant Tour and Safety Training with Production Manager OSHA Safety Training Checklist Completed and placed in Employee Training File 11:45 AM: Meet Plant Manager Lunch Introduction to company and general information about the corporation, history, products, markets, and facilities Expose the new employee to Culture, Values, what the company does, how the company makes money, and where the employee fits in the bigger picture

130. 130 World Class 1 st Day Thursday’s 1:00 PM: Quality Overview Plant Tour with Quality Manager General training on quality Individual expectations, metrics, quality control, quality process 2:00 PM: Process Overview Plant Tour with Continuous Improvement Manager; Walks the Value Stream; Sees the Big Picture Introduction to Lean Training. Continuous Improvement Responsibilities 4:00 PM: Administrative Questions and Answers Verification of In-processing with HR Manager

131. 131 Value Stream Map to Tasks to Cell Map LipsAssemble/ Tack Lug and Beam Welder Weld 1Weld 2Weld 3 Fit Materials Welding Quality Assurance Use a Ruler Read Blueprint Bevel Operate Brake Operate Saw Operate Glibert Operate Lathe Burn Table Operate T1 Operate T2 Tasks Cells Value Stream Map

132. 132 Example Common Skills Training Trainer implements the tailored Individual Development Plan developed at the Interview and Skills Assessment. Example Learner Based Training Lesson Outline: 1.Production Terms and Language 2.Use of Personal Protective Equipment (PPE) 3.Reading Measurements to the 1/16” Detail 4.Parts of a Weld and Weld Bead Placement 5.Weld Quality 6.Blueprints and Weld Symbols 7.Welding Equipment/Maintenance; Use of Cranes and Rigging 8.Quality Assurance NOTE: A Web Based Platform so that New Hires can review and pre-train prior to Welding Skills Interview or Training. Can also be used as a post hiring support tool.

133. 133 Example Cell Training 1 st Job Skills Development Goal: Seamlessly integrate new Hire into the production line and reduce “Time to Competency” Sequence List: 1.New Team Mate meets with 1 st Line Supervisors/Cell Trainers 2.1 st Line Supervisor uses Welder Skills Development Record to develop Cell Training Program 3.Supervisors use 30-60-90 day Feedback System to assess performance and update skills development record. 4.New Team Mate and 1 st Line Supervisor conduct a Goal Alignment session and agree on initial Career Path and Production Skills Training Plan.

134. 134 Management System Goal: Develop Data Driven Systems to Manage the Process Features: –Monthly Reports and Management Meetings –Specific Metrics Reported: Cycle Time (Responsiveness) Touch Time (Cost) In Process Flow Turnover Absenteeism –Measures Head Count to Production –Predictive Measures Focus

135. 135 # Interested 10497+7 # of Apps Received 8581+4 # of Screened Candidates Scheduled for Test/Interview 6559+6 # Tested & Interviewed 5853+5 Test Results Fully Qualified 77- Qualified (Less than 2 weeks) 17 - Minimally Qualified (2-4 weeks) 2622+4 Unqualified (More than 4 weeks) 87+1 Awaiting Weld Test Results (Bend) 00- Applicant Flow Applicant Flow: Page 1 of 2 Dec. 12 Nov. 7 Delta

136. 136 # Failed Interview 1312+1 # that Voluntarily Withdrew 99- # Awaiting Hiring Decision or Offer Pending 01 # of Active Applicants 56 # Offered and Accepted Employment 3431+3 # of Offers Declined or Rescinded 33- # Started 3230+2 # Terminated 75+2 Applicant Flow Applicant Flow: Page 2 of 2 Dec. 12 Nov. 7 Delta

137. 137 Hiring Cycle Times - All Cycle Times measured in Calendar Days - Cycle Time IntervalDays Application Date to Test/Interview Date 18.55 Test /Interview Date to Offer Date 5.05 Offer Date to Acceptance 2.64 Acceptance to Start Date 10.50 Total Application Date to Start Date 42.41 Changes since last Program Review -1.96

138. 138 Hiring Cycle Attrition Hiring Cycle Phase# Attrited Pre-Application 19 App Date to Weld Test 21 Weld Test to Interview 8 Post-Interview 15 Drug Test 0 Offer Declined 2 Post-Hire (In-Training) 7 Total Hiring Cycle Attrition: 72 of 104 Candidates

139. 139 Post-Hire Attrition Analysis Name Termination Date Termination ReasonDays on the Job 7/25/2005 Discharged from Welding Training. Poor work habits and slow progression given as primary reasons. 10 10/4/2005 Unable to complete the Welding School within 7 weeks. Work Ethic was great so we offered him positions in Assembly/Paint. He refused to work on 2 nd Shift and thus was dismissed. 44 8/26/2005 Discharged from Welding School. Dismissed for ‘cheating’ on his vertical Weld Test. Employee his test plate flat after receiving warning. 15 8/8/2005 Discharged from Welding School. Poor work habits and slow progression given as primary reasons. 11 10/10/2005 Unacceptable progress in Welding School and unwillingness to brake old habits. Needs more experience than our training can provide. 11 11/18/2005 Discharged for falsifying application with regards to educational background (HS Graduation). 31 12/2/2005 Discharged for falsifying application with regards to educational background (HS Graduation). 45

140. 140 Successful Program Results March 2006/July 2008 –Labor Requirement to 1 st Day (Lead Time): 10.3 weeks / 1 week –Cost per Hire: $2,008 / $500 –1 st Year Attrition Rate: 59% / 6 % Overall Attrition Rate reduced by 31% –Production Efficiency: Labor Hours/Bucket 29.42 / 23.98

141. 141 End State If you design and implement a good On Boarding Program you will put yourself out of the On Boarding business…for all the right reasons The best companies recruit continuously, rather than simply to fill openings Harvard Business School; “The War For Talent” 31% of top-quintile companies strongly agree that they are always looking for great talent and bring it in whenever they find it, compared to only 9% at mid quintile companies

142. 142 Production Skills Development “Building the Depth Chart” How to… Increase Productivity, Control Head Count, and Improve Capacity

143. 143 Or… If you have $1 dollar to spend… –Hire a new employee. –Invest in your current high potential employee.

144. 144 To answer this question… If after my first 10 weeks on the job; I am the best person you have ever hired tell me the story of the next 10 years of my life…

145. 145 Behaviors Transfer Subject Matter Experts Standardized Work Training Audience Training System Those Who Have the Information Those Who Need the Information

146. 146 Right Person/Right Job Move the Employee in the Right Direction High Quantity Low Quality Quantity of Work Quality of Work Low Quantity High Quality Low Quantity Low Quality High Quantity High Quality New Person Go To Person What is our plan to move our people along the correct developmental path?

147. 147 Impact of Tenure on Engagement Across 840,000 Employees TENURE % Responding Favorably To Being Engaged

148. The Employee Engagement Life Cycle 1. Overwhelmed Most employees start a new job frightened at having to learn not only the content of the job but also the corporate culture. 2. Happily challenged With in six months, the employee is still being challenged but enjoys the experience. 3. Smooth sailing After another six to twelve months, the employee is confident in his ability to handle the job. He still enjoys the work, but there is not as much challenge in it anymore, and he is not learning as much. 4. Bored It can take three to seven years before the employee reaches a point at which he can do the job in his sleep. Now the emp- loyee must actively begin looking to move to a new challenge. 5. Indifferent Left unchallenged, the employee becomes unhappy with himself and therefore unhap- py with the company at which he is employed. He won’t care enough about the work to do it well. But if the employee finds a new challenge, the cycle can begin again. Seven Years

149. 149 The Depth Chart Visual Employee Management Tool –Employee Name and Picture –Skills they have demonstrated –Cell they are assigned to and qualified to work in. –Cell they are cross-trained in (Self Motivated Training) –Backed up by Web-Based Tracking System

150. 150

151. Insert Ball Depth Chart 151

152. 152 People Focused Training 1.Every employee is on a Career Path 2.The Career Path is agreed to by the employee and the supervisor based upon needs of the company, the potential of the individual and the employee desires and aspirations 3.The Career Path drives skills required: a.To Meet required training, certifications, licensing for current job. b.To Improve Productivity on Current Job c.To Meet minimum competency level for Future Job d.To provide for Employee Driven Self-Development Training and Education 4.Training does not exist unless a Manager creates an “order” 5.The Manager then selects the most appropriate delivery method based upon their specific operational circumstance. 6.The Training is delivered via the most resource efficient and effective method. 7.The Training is evaluated and recorded 8.The Employee’s Skills Record and Career Path Map is updated.

153. 153 Training Challenges No silver bullet…Big Problem with a lot of moving parts in a dynamic business environment Make Training decisions without real analysis to focus our efforts… “Good Idea of the Day” approach waste money and our time The Training Plan must make good business sense We must be realistic and “eat the elephant” one bite at a time. We must create a SYSTEM to: –Demonstrate to our Workforce we CARE about them! (Source: Engagement Assessment) –Better communicate with our primary clients: the Production Managers –Synchronize and integrate our Training Projects and Programs with the normal business operations. –Give the Craft Managers predictable yet responsive support We must NOT: –Train people who do not need the training –Break the Bank –Disconnect training from the day to day operations of the business and make it a science fair project production managers minimize

154. 154 Total Distribution by Job Title 38 Labor Categories

155. 155 Team Sport: Defining Positions Machine Customer Order and Materials Finished Products and Satisfied Client Sales Representative Material Handler Process Technician Machine Operator/ Packer Quality Control Mold Maker & Maintenance Press Maintenance Technician Mold Setter Assembly Operator Mold/Part Designer

156. 156 Soft Skills Development Employee Career Complex Tasks Life Cycle Skills Development Program Basic Skills Intermediate Skills Advanced Skills Initial Entry Skills Training I Mentor Skills V Competency Level Experienced Personnel Employment Skills Skills Evaluation Basic Training Practical Application/ Coaching Evaluation III II Intermediate Training Advanced Training IV Pre-Employment “A Guide”

157. 157 Aircraft Mechanic1367 A/C MECHANIC1367 Avionics/ Electronics441 AAE&I TECH192 AE&I MECH249 Sheet Metal114 A/C STRUC MECH114 Armament85 A/C ARMAMENT TECH85 Technical Inspection213 A/C TECHNICAL/ NDT INSPEC213 Test Pilot89 MAINT TEST PILOT89 Maintenance Support513 A/C COMPONENT PLATER1 A/C REFININSHING SPEC20 A/C SCHEDULER12 A/C WELDER5 AMSS ACFT ENG SHOP MECH25 AMSS ACFT HYD SHOP MECH10 AVIATION LIFE SUPPORT EQUIP TECH37 COMPONENT CLEANER8 ELECTRONIC INSTRUMENT TECH5 FABRIC AND UPHOLSTERY TECH1 MACHINIST13 MATERIAL CLERK34 MATERIAL INSPECTOR3 MATERIAL SPECIALIST166 P/C SPEC - ATTC2 P/C CLERK58 Other Support137 A/C MONITOR17 ACCOUNTING SPEC6 ADMIN SPEC21 COMPUTER OPERATOR3 F AND M SPECIALIST30 FLIGHT OPS SPEC8 JANITOR35 MESSENGER1 PERSONNEL SPEC8 PLANT AND FACILITIES MECH2 PROGRAMMER6 Maintenance Support (Cont.) PAINT, FABRIC & UPHOL MECH1 QDR TECH10 RECORDS SPEC47 SERVICE ATTENDANT33 TECH PUBS TECH14 TEST CELL TECH3 WEIGHT AND BALANCE TECH4 X RAY TECH1 Labor Categories

158. Career Map Planning J/M 3 Basic IMS Training Basic Manpower Basic Budget Skills Basic Scheduling Skills Basic Estimating First Line Leadership Training OSHA 30 Hour Basic Computer Skills – Admin Skills Manpower Budget Skills Scheduling Estimating Skills Contracts J/M 1 Purchasing People Skills Improver Helper Ship Superintendent F/M L/M Snapper J/M 3 J/M 4 J/M 5 J/M 2 IMS/IDR L/M J/M 5 Estimating Material E-mail Shop Fab Time Keeping IMS J/M 2 Developing Computer Skills Motivated Shows LeadershipSkills

159. 159 Skill Paths 1.Aircraft Mechanic 2.Avionics/Electronics 3.Sheet Metal 4.Armament Mechanic 5.Technical Inspection 6.Test Pilot 7.Maintenance Support a.AMSS (Hydraulics, Machinist, etc.) b.Specialized Mechanics c.Records Clerks/Production Control d.Supply and Logistics 8. Other Support a.Human Resources b.Information Technology c.Finance d.Administration e.Environment Health and Services f.Training g.Facility Support (Monitors, Service Attendants, Janitors) 42 Labor Categories 8 Skill Paths

160. 160 Training Program Overview Skill Paths 1. Mechanic 2. Assembly 3. Sheet Metal 4. Material Handler 5. Technical Inspection 6. Maintenance 7. Production Control Common Skills Training What every employee needs to know Cell Training Skills to do 1 st Job Intermediate Skills Training Skills to do second and third job Employee Skill Path Lead/Advanced Skills Training Skills to Teach Others the Job Master Mechanic Mentor Tech Specialist Hiring On Boarding Labor Requirement

161. Production Projected Hiring Forecast Independent Variables Assumes 800 person production workforce 161 2008201320182023 Core Start844 (2006) 535 (2008) 353 (2013) 233 (2018) (Core Attrition & +65) 30918212079 Core End535353233153 # Required800 New Hires Required NA447 (90)567(113)647 (130) (New Hire 1st Attrition %) 53% New Hires Forecast 403 (Actual) 684 (140)744 (149)980 (196) 50%

162. Risk Ratings TERM RANK% TERM RANK LEADER CURVE LDR % AGE OVERAL % AGE TOTAL SCORE Paint 552 2 114 Machinist 5222111 Rigging 5311110 Shipfitting/ Welding 5522114 Pipe 5311110 Electrical 5311110 Carpentry 222218 Crane 212217 Sheet Metal 5522114 162 1.Term Rank: 5 if >= 50+ Total Terminations since 2006; 4 if >= 40 Terminations; etc. 2.% Term: 5 if >= if Avg Termination is >= 50% of Dept Population; 4 if >= 40%; etc. 3.Ldrs Curve: 1=Good to 5=Ugly; Good opinion leader population shows both young leaders/ high experience 4.Ldr % Age: 5 if Leader 5-yr Retirement Risk % is >15% and 10-yr >40%; 4 if 5-yr>10% & 10-yr > 30% 5.Overall % Age: 5 if Overall 5-yr Retirement Risk % is >15% and 10-yr >40%; 4 if 5-yr>10% & 10-yr > 30%

163. Crafts Critical to Future & Labor Risk Assessment Craft Risk Rating Best At Now? Worst At Now? Critical to Future Priority Carp/Insul8X Crane9 Electric7X Machine4XXHigh Paint3 Pipe6XXHigh Riggers5 Sheetmetal1XXHighest Shipfitting/ Welding 2XXHighest 163

164. Training Program Policies 1.Leaders are responsible for the training of their subordinates. 2.Training programs must be based on the tempo of operations and the resources available to train. 3.The majority of the training must occur on the job in conjunction with production work. 4.Lengthy training events taking the employee away from the worksite cannot be considered. 5.Required Training must be done as efficiently as possible 6.Leverage Federal and State resources for maximum effect 7.The Training Support organization must provide our production leaders with workers who understand what we do, why we do it, how they fit, and with the common skills required to reduce their time to competency 8.Training Management is a complex management task which ties Training to the Business Needs 164 A good Training Program improves Team Stability: Stable Teams attain and maintain High Performance.

165. Training Program Components 165 AdministrationDeliveryContentTechnology Strategic Planning Registration Services Scheduling Finances/Billing Assessment/Testing Program Mgt Client Relationship Instruction Classroom Support Instructor Real Estate/Facilities Feedback Instructional Design Content Graphics Design Material Fulfillment Portfolio Content Refreshment LMS/LCMS Mgmt Delivery Platform Authoring Systems Computers Admin Technology Delivery Content

166. 166 Effort vs. Competency in Learning “I know” skill: –Exchange of Information (Electronic Performance Support Modules) “I can do” skill: –Scenario Based Performance Focused Facilitated Learning Events –Skills transfer from Master to Novice –Subject Matter Experts observe and validate competency (Coaching) “I can adopt and apply” skill: –The actual performance requirement –Linked to Skills Based Performance Assessments –Embedded in Leader to Led Daily Interactions (Teachable Moments)

167. 167 Summary 1.Training is NOT about INDIVIDUAL CHOICE. We Care! 2.Job Performance and Training are Seamless 3.Train on the Same Equipment, with the Same People, Under the Same Conditions, to the Same Standard on the Job Site 4.Reduce Time and Effort Between Subject Matter Experts and Users 5.Get the Most Value from Training/Education Dollars; Training Waste is Training People on a topic they do not need to know or already know. 6.People drive Skills Based Requirements NOT Subject Matter You can be perfectly trained and absolutely unproductive!

168. 168 The Leader Development Challenge “Playing to Win!”

169. 169 If People are Hard! Leaders are Harder!! Everyone is at a different place developmentally Everyone must take responsibility for their own Development; It is a High Performance Behavior The Trick is to make Leader’s better at what they are good at as opposed to making them something they are not. Leaders are Chess Pieces Not Checkers! Each one has different goals, different potential, move differently, and has unique talents. (Buckingham) Bell Curves are unacceptable

170. 170 Agenda Improving Current Leader Performance Building Future Leaders

171. 171 Leader Development Program Current State Leader Development conducted informally or not at all. Usually best operators promoted to Supervisors Experience gained over time Many training courses available but not mapped to critical tasks. Undocumented program that is dependent on individual Management implementation On the Job Training is ad hoc with few Training Materials available on the Job Site. Perfect State Systematic Approach to Leader Development Manager’s are Responsible as the Primary Trainers of their Supervisors Manager’s are responsible to tailor skill development to each individual supervisor and each operational area. Leader Development Programs mapped directly to Performance Review System

172. 172 Developmental Plans Everyone has them! Consider education, experience, training Aligns Team Mate potential with organizational needs Focused on the Mission Essential Tasks derived directly from the Value Stream Map Provides measurable outcomes to monitor individual progress. Are the “White Space” between Performance Reviews Drive Training and Development budgeting and resources requirements based upon People NOT Program Focus

173. 173 Organizational Goals –Cost –Schedule –Quality –Safety Individual Goals –Compensation –Opportunities –Responsibility –Work Environment –Recognition Communication Leader Led Awareness Goal Alignment Individual Development Plans Individual Development Plans Individual Development Plans Resources Required Performance Reviews Led Goal Alignment System

174. 174 Mission Essential Task List (METL) Matrix MISSION ESSENTIAL TASKSChiefCSGS/COSPRMPM MAINTAINS SITUATIONAL AWARENESS XXXXX COMMUNICATESXXXXX COMMITTED TO SUCCESSXXXXX LEADSXXXXX TECHNICAL COMPETENCEXX USES THE COMPUTERX MATCHES PEOPLE TO JOBSX DOES JOBS RIGHT THE FIRST TIME X SOLVES TODAYS PROBLEMSXX PLANSXX DEVELOPS SUBORDINATESXXX CONDUCTS ANALYSISX REMOVES BARRIERSXXX SYNCHRONIZES OPERATIONSXX BUILDS TEAMSX STRATEGIC PLANNING X 174

175. 175 Behavior Focus Skills and Attitudes are extremely difficult to describe, measure, or observe. Behaviors are observable actions that can be replicated. We KNOW how the Best Performers Behave! Behaviors change Leads Culture change!

176. 176 Defining METL Based Behaviors 1.Go find the High Performers 2.Find out what they do and don’t do everyday 3.Write it down 4.Agree on the Mission Essential Tasks and High Performance Behaviors 5.Ensure Alignment with Business Goals and Value Stream

177. 177 High Performing Leaders act like…

178. 178 Observable High Performance Behavior Example Develops Subordinates Recognizes Teachable moments: Constantly stopping and talking to subordinates with tips and best practices When asks who is responsible for the training of their people says “Me!” Realizes the “best training” occurs on the job when highly skilled people work with less skilled people: Matches novices with experts by design Uses normal work flow as training opportunities Has scheduled and record of formal counseling/feedback sessions with subordinates outside of normal job interface Knows the Leadership Pipeline - their replacement; future leaders

179. 179 Observable Behavior Example Technically Competent: –High: 9/10 times when asked a question gives the right answer immediately and work continues. –Developmental: 5/10 times gives the right answer and tells the person they will get back with them with the right answer causing waste. –Dysfunctional: Gives the person the wrong answer causing positive harm to the organization.

180. 180 Program Objective Move Employee to the Left Task Technical Competence When asked a question are able to give the correct answer 90% allowing work to continue When asked a question answer correctly 50% and will get the right answer to the person as soon as possible. Still causes work slow down Ignore, guess or give the wrong answer to get rid of the questioner. HIGH: All Leaders should be High Performing and displaying the behavior traits in this column. Developmental Plan to focus on sustaining performance DEVELOPMENTAL Leaders displaying the behavior traits in this column should be involved in a defined developmental plan. Focus on moving them to the left DYSFUNCTIONAL All Managers displaying the behavior traits in this column are creating harm in the organization. Behavior needs to be changed ASAP or the manager needs to leave.

181. 181 High Performer 1 st Line Supervisor Mission Essential Tasks 1.Demonstrates Leadership 2.Understands Manufacturing Process 3.Seeks Continuous Improvement 4.Plans Work 5.Communicates up the Chain 6.Communicates to Subordinates 7.Builds Teams 8.Technically Competent 9.Uses Technology 10.Develops Crew See Hand Out

182. 182 Initial Assessment Reassessment Send to Established Training Course Knows How to do the task – needs On the Job Help Does Not Know How to do the Task Knows the Job but has trouble “putting it all Together” Knows their area but needs Focused Leadership Task Coach – High Performing Supervisor/ Manager Task Coach – High Performing Support Staff Spend the Day with High Performing Supervisor at their Job Site Daily Reinforcement by Leader ID Support Shadowing Opportunity Leader Developmental Strategy Matrix Not Required

183. 183 What is the #1 Barrier to Productivity? 1.Inefficient planning of the work. 2.Organization Structure does not support work flow. 3.Poor leadership in demonstrating and leading change. Effect: 28.8% of Total Labor is Waste as a result of management or leader issues. Or 33.5 days per Full Time Equivalent HR Magazine September 2006

184. 184 Managers or First Line Supervisor Who is First? Get the Managers on the right page first, then have them develop the First Line Supervisors

185. 185 Opportunity for Improvement “8 for 8” How many productive hours are you getting from your production worker for every 8 hours paid?

186. High Performers have no idea how good they can be…and are personally dedicated to their personal journey. 186

187. 187 Bench Strength is Working the Blue Lines Operations Manager Current Shift Supervisor – Future Operations Manager Current Shift Supervisor – Current Job Current 1 st Line Supervisor – Future Shift Supervisor Current 1 st Line Supervisor – Current Job Current “Go To” Operator – Future 1 st Line Supervisor

188. Dept 205 Leader Benchstrength Forecast FMLM JM(SF) 3,4,5 JM(W) 3,4,5 2009 ACTUAL 15242622 2009 – 2013 DEPARTURES (age, 3 yr attrite avg, etc.) 61720 2013 REMAINDER 9762 2013 REQ 18242622 PROMOTION --412 NEW FORECAST 9132122 POOL (FORECAST X2) 18264244 CURRENT POOL 4319 (JM1/2) 12 (JM1/2) CANDIDATES FOR POOL CURRENTLY NOT AVAILABLE 1423 32 Source: August 2009 205 WFRA

189. 189 Building Future Leaders Developing Bench Strength

190. Goal: Leaders First Day is a Performance Day not a let’s see how it goes day 190

191. 191 Transition Acceleration Current JobFuture Job Time Quality Level of Effort Cost Current State: How long from assignment to competency?

192. 192 Leader Lead Time Example Goal: Ensure Leaders come to competency with 4 weeks of 1 st Day on the Job. Factors: –Hiring Cycle Time: Job Requisition to 1 st Day –Skills Requirements –Minimum Training Requirement –Coach/Mentor Availability –Hourly Labor Hiring –Job Flow/Production Schedule –Team Dynamics

193. 193 Leadership Pipelines 1.Former Leaders 2.Transfers with Area Experience 3.Transfers without Area Experience 4.Pre-identified Emerging Potential Leaders (Succession Plan) 5.High Performing Mechanics/Employees 6.Product of the Hiring Process (Announcing Position, etc.) Each Pipeline has a different mean Lead Time

194. 194 Developmental Phases 1.Do the right things 2.Do the right things right 3.Do the right things better, faster and more effectively 4.Are we doing the right things? Re-defining the right things 5.Prepare for next career path position It is our Choice on when to place the New Leaders 1 st Work Day… } Prior to 1 st Day on Job

195. 195 “Bull Pen”“Warm Up”“Throwing Ks” “I Know” “I Can Do” “I Can Apply” Competency Check START: Individual Development Plan Required Common Training Courses Designated Training Courses depending on assignment Orientation to AOR Work with High Performer NOT in assigned area Assigned to Manager Coach performs 1 st Skill Assessment Orientation to Work Flow in 1 st 30 days Orientation to Job Site and Support Activities (PC, Planning, etc.) Rehearses 1 st Day and Chalk Talks 1 st Week with Manager and Coach KEY EVENT: Leader First Day with Crew in Charge! 90 Day Coaching Event 30-60-90 Day Skills Assessment (Coach, Self, Manager) Integrated with Performance Review Process Normal Developmental Process Competency Check New Leader On Boarding Program OVERVIEW Gaining Manager Involvement

196. 196 1 st Day Preparation “Warm Up” 1.Task: Plan Work – Conduct an analysis of the current jobs; current “checkbook” and schedule status; and who is working the jobs; –Warm Up Event: Works with Coach to “catch the bubble”, develops Work Plan, develop “Hot Jobs” List –Supporting Tasks: Understand Work Packages, Network with Key Players, Technically Competent –1 st Day Event: Issue Job Assignment for each mechanic at Start Up. 2. Task: Lead by Example – Conduct 1 st Day Start up Briefing with Crew; communicate personal style, establish ground rules, and goals. –Warm Up Event: Prepares first day speech and rehearses it with the Coach. –Supporting Tasks: Live the Values of the Company; Demonstrate Ownership of Work (Quality), Understand Union Contract, Gives Clear Direction to Subordinates. –1 st Day Event: Give 10 minute Start Up Briefing to entire crew. 3.Task: Job Assignment (Match Jobs to People) – Conduct 1 on 1 assignment sessions with every mechanic on crew –Warm Up Event: Coach creates “role playing scenario” with own crew and rehearses/observes 1 on 1 session and provides feedback. –Supporting Tasks: Crew Development and Performance and Set Expectations and Provide Feedback (Pulls available personnel data and personal background information on entire crew prior to first day.) –1 st Day Event: Interact 1 on 1 with every mechanic on crew during first day to Assign Jobs, Set Expectations and Provide Feedback.

197. 197 1 st Day Preparation “Warm Up” 4.Task: Network with Key Players – Interface with Planning and PC –Warm Up Event: Coordinates/pre-briefs 1 st Week Work Plan with Planning and PC under the direction of the Coach. –Supporting Tasks: Innovate, Understand Work Packages, Communicate Laterally, Network with Key Players, Technically Competent, Understand the Manufacturing Process –1 st Day Event: Before end of 1 st Day update Key Players on “Hot Jobs” List 5.Task: Communicate Up the Chain – Pre-Brief Supervisor prior to 1 st Day and Out-Brief at end of day. –Warm Up Event: Meet with Supervisor to receive Supervisor guidance and direction with Coach. Conduct and analysis and back-brief Supervisor on 1 st Day Plan. –Supporting Tasks: None –1 st Day Event: At end of first day report progress to Supervisor. 6.Task: Administer Time and Accounting System – Pay crew –Warm Up Event: Pay Coaches Crew –Supporting Tasks: Use the Computer –1 st Day Event: Successfully Pay Crew 7.Task: Job Assignment and Give Clear Directions to Subordinates, Setting Expectations –Warm Up Event: Complete focused Training and practice preparing Job Assignment Sheets –Supporting Tasks: Give Clear Directions to Subordinates –1 st Day Event: Issue Job Assignments and have a face-to-face conversation at the job about setting goals and stretch goals.

198. 198 1 st Day Preparation “Warm Up” 8.Task: Understands How to Train –Warm Up Event: Work with expert Coach on how to identifying teachable moments within the crew and understanding how to coach his/her crew to improve individual and crew performance –Supporting Tasks: Crew Development and Performance –1 st Day Event: Within 1 st week conduct a goal alignment session with each hourly and then prepare an individual training plan. 9. Task: Crew Development and Performance – Preview/Prepare Hourly Annual Performance Feedback Form –Warm Up Event: MPL/Foreman will go over the Hourly Performance Feedback Form –Supporting Tasks: Lead By Example, Network With Key Players, MOS Feedback –Prior to first day Foreman will contact SER and review employees attendance record –1 st Day Event: Within 1 st Week go over the Hourly Performance Feedback form individually with each employee and discuss expectations

199. Do you Trust Your Leaders? 199

200. Have you empowered them with the biggest decision you will ever make about them... Who they work for and Who works for them? 200

201. 201 “Whew”

202. 202 What group represents the biggest risk for the future of your business? (Rank Order with 1 the Highest Priority) __ Hourly Workforce __ 1st Line Supervisors __ Plant Middle Management __ Plant Managers __ Executive Staff __ Administrative Support staff __ Temporary Workforce

203. 203 Which part of the People Life Cycle requires the most urgent attention? (Rank Order with 1 the Highest Priority) __ Organizational Scheme __ On Boarding (e.g. Acquiring New Employees) __ Incumbent Production Workforce __ Line Supervisors Performance Improvement __ Building Future Leader Benchstrength __ Executive Leader Development

204. Workshops On Boarding New Teammates 1 st Line Leader METL to Behaviors 204

205. 205 Lunch and Networking

206. Jacksonville Sheriffs Office Best Practice Presentation 206

207. 207 Break

208. Workshops On Boarding New Teammates Heartbeat Leaders METL to Behaviors 208

209. 209 On Boarding Practical Exercise Tell me about the best person you have hired this year… & Where did you find them or how did they find you? Take a Blue Slip

210. 210 On Boarding Practical Exercise What does every new Teammate need to know about your Team to be a High Performer Take a Blue Slip

211. 211 Heartbeat Leaders METL to Behaviors Practical Exercise Tell me about the best 1 st Line Leader you know… What do they do everyday that makes them so good at their job? Take a Blue Slip

212. 212 Practical Exercise What do your 1 st Line Supervisors need to know how to do to be successful on their 1 st Day… Walk through a normal day and what do you see? Take a Blue Slip

213. 213 Heartbeat Leaders METL to Behaviors Practical Exercise Best Day Description Must Do Task Behaviors Development Take a Blue Slip

214. Working Group Report Outs 214

215. 215 Hypothesis If we transform our current Leaders into Lean Leaders with new responsibilities and behaviors; we will eliminate waste and improve business performance measured in “line of sight” savings. Outcome Metric: WASTE Identification and Elimination Process Metric: Improving Leader Behaviors

216. 216 1 st Line Supervisors “We have Leaders who are busier than ever but don’t seem to be making any progress.” Expected Outcomes: Increase our leader's ability to solve more day-to-day problems correctly the first time. Increasing our capacity to identify and eliminate Day-to- Day Waste. Increasing our capability to identify and eliminate Systemic Waste to reduce the number of day-to-day problems.

217. 217 Common Current State Issues Operational Responsibilities have exploded yet no clear articulation of those roles and responsibilities Leader’s can’t see the process through the data haze Lots of stick if you mess up the data; very little carrot to be out in the patch Cultural bias for solving today’s problems right now – not necessarily in priority order based upon biggest bang. “5 Year Old Soccer” Crisis Management Culture creating waste in the Leadership Bandwidth

218. 218 Lean Leader Mission Essential Tasks 1.Knows their Process 2.Knows their Customers and Suppliers (SIPOC) 3.Identifies Day to Day and Systemic Waste 4.Prioritization 5.Eliminates Waste & Improves Business Performance 6.Engages Team Mates

219. 219 Performance Excellence System Strategic Objectives 1.Lower our costs and improve efficiency 2.Create a cultural shift resulting in an aligned and engaged team focused on providing value to our customer 3.Improve Customer Satisfaction 4.Gain the Senior Executive’s confidence in our system of calculating savings a.How much did we save? b.How do we know? c.Where did the savings go? (Your pocket or mine?) 5.Use the good news and cost savings in proposals, support business development, and validate the Performance Excellence Program investment.

220. 220 Define Measure Analyze Improve Control We are using the Navy System!

221. PE Program Management Process & Training Strategy (Start One per Quarter) ID Opportunity for Waste Elimination ID Champion & Process Owner ID Target Availability Send Champion, Process Owner & Supt. To Champions Training Draft Project Charter with Team Greenbelts Team Greenbelts Develop Plan of Action and Milestones (POA&M) Send Team Co- Leads to Greenbelt Training Executive Review Board Approves Charter & POA&M Greenbelts with Team Execute POA&M Facilitate Sub- Projects; Events & Just-Do-Its Greenbelts Give Weekly Updates and Take Fives to Workforce (Creating Whitebelts) Implement Action Plan(s) for Improvement Initiatives {Monthly PRs} Brief Results and Return on Investment (ROI) Analysis Effective Participants Certified as Yellowbelts Certify Greenbelts 221

222. 222 Performance Excellence System Organization Training Who gets trained, when, to what standard, by whom, with what resources Resources: Trainers and Curriculum Projects What projects should we do, how many at a time, scope, and implementation plan complexity. Resources: Facilitators Analysis and Metrics “Dollarizing” results, Six Sigma Analysis, Proposal and Award Fee Board Support. Resources: Data and Cost Analysis PE Office PM Develops Strategy & Annual POA&M Synchronized with Annual Business Plan Development

223. Provide data and voice of customer inputs to VSA,RIE and Projects. Apply concepts to their own jobs and work areas.  Owns vision, direction, integration, business results  Leads change  Project owner  Implements solutions  Owns financial results  Part time as part of job  Develops Project Charter  Participate on Black Belt teams and/or lead projects  Part time on projects  Provide project-specific support  Can be Yellow or Green Belt and  includes Financial Representation  Part time on projects  Lead organizational performance improvement  Prioritize projects  Full time assignment Deployment DeploymentChampions Project Sponsors / Value Stream Champions Project Team Members Executive ExecutiveLeadership Green Belts  Train Black Belts/Green Belts  Coach Black Belts/Green Belts  Lead Complex/Large projects  Full-time position Master Black Belts  Execute CPI projects  Train and coach Project Teams  Full-time assignment Black Belts  Enables successful deployment / execution  Develops and reports metrics  Coordinates training  Leads change management and internal /  external cross-communication All Employees CPI CPI Core Team CPI Deployment Roles

224. 224 Let’s Wrap It Up

225. 2002 Excellence in Practice Citation - Workplace Learning and Development Category Partner: Northrop Grumman Newport News Shipyard (Newport News, Virginia) Practice: Modernized Welding School 2003 Excellence in Practice Citation - Electronic Learning Technologies Category Partner: Northrop Grumman Newport News Shipyard (Newport News, Virginia) Practice: Production Trades Training Program 2004 Excellence in Practice Citation - Workplace Learning and Development Partner: Northrop Grumman Newport News Shipyard (Newport News, Virginia) Practice: Win! Win! Big Win! Building Pipelines from the Community to the Workforce 2006 Excellence in Practice AWARD - Performance Improvement Category Partner: ESCO Engineered Products (Covington, Kentucky) Practice: People Powered Lean 2008 Excellence in Practice Citation – Performance Improvement Category Partner: Ball Metal (Williamsburg, VA) Practice: Leading to Win! 2009 Excellence in Practice AWARD – Performance Improvement Category Partner: Ball Metal (Williamsburg, VA) Practice: Leading to Win! 225

226. First Things First Team Stability Trust Continuous Improvement Increasing Business Performance 226 Business Operations will always induce variability: - Customer Demands, Suppliers, or Shareholders

227. 227 The Bottom Line… To Win and Win Big is the Business of People. You must play the game. To play you must know the rules. Understanding and applying ROI Evaluation Analysis is a core skill to play the game. Skills, Knowledge, and a detailed Plan = Courage to ACT Turf, Ego, and Money and at the end of the day…

228. 228 Golden Rule of Leadership Treat your subordinates how you would like to be treated. …1 at a time! they

229. 229 The Organization Takes on the Personality of it’s Leaders! Culture

230. 230 Closing “I can’t control what they do on the field but I can control who does it…” Joe Gibbs, Washington Redskins “…And never give that away” Joe Barto

231. 231 Let’s Talk…

232. 232 Review “What you wanted to Learn” Blue Slips

233. Who Before What 233

234. In Appreciation of the Brave Men and Women Who Serve Our Nation

235. 235 Thanks… and Good Luck!

236. Back Up 236

237. 237 Production Schedule Assigning Work to Crew in Discrete Increments and Measuring Goal Accomplishment Leader Assigning Jobs & Approving Time Core Daily Business Activity Construction & Repair

238. 238 Building Pre-fab material GFM Modify specification templates to match the work Identify what is internal and what is outsourced 60/40 In house specification review QA specification review Specification review with govt 50%, 80%, 100% lock Submit pricing to Gov't at 80%, 100% Schedule AIT, MAR MC work Negotiate with government Definitize price and publish internal budget Manpower projections Adjust subcontractor /outsourcing Write purchase orders for subcontractors Bring on Hourly subcontractors Specifications and budget printed and distributed Dollar is set Receipt of funds Navy Prioritizes work list. Material control orders some material Purchase Materials On site maintenance team provides advanced info. Ship check Ship Check Develop scope of work and specifications from AWR Receive description of work (AWR) Pre-fab material available Raw material available GFM Available Plan Execution Material is orderedConex boxes filled with all the material for job spotted Craft Supervisor assigns work to Leads Leads assign work to crews Begin work on items per plan STOP Material and equipment Removal Repair in shop Repairs on ship, Reinstalls on ships, and installs on ship Checkpoints Process Control Item close outs Testing Cost Monitoring Final Close Outs Ship leaves yard Condition Reports Open and inspect reports Planning and scheduling emerging work Monitor the schedule during execution Progress Work Weekly progress report with Navy Weekend work schedule meeting Man according to budget Meeting with ships force on plan of the day Shipforce, AITs, MAR MC, does repairs Arrival conference Test and Inspection Plan Development Adjust manpower projections weekly WPER /WPET Downriver temp systems, materials put on ship WAF Scheduling/ Coordination Ship Arrival Support Services Ready Owner: Contracts Support: None Owner: Planning Support: Trades Owner: Planning Support: Trades Owner: Programs Support: Planning, Trades Owner: Planning Support: Programs, Trades Owner: Contracts Support: None Owner: Contracts Support: None Owner: Planning Support: Trades, Programs, Contracts Owner: Trades Support: Programs, Planning Owner: Planning Support: Programs Owner: Planning Support: Programs, Trades Owner: Planning Support: Programs, Trades, Contracts Owner: QA Support: Planning Owner: Contracts Support: Planning, Programs Owner: Planning Support: Contracts Owner: Planning Support: Contracts, Program, Trades Owner: Contracts Support: Programs Owner: Planning Support: Programs, Trades Owner: Programs Support: Contracts, Planning Owner: Programs Owner: Trades Support: Programs Owner: Planning Support: Trades, Programs Owner: Planning Support: Trades, Programs Owner: Planning Support: Trades, Programs Owner: Planning Support: Trades, Programs Owner: Trades Support: Planning All Hands Owner: Trades Support: Programs Owner: Planning Support: Trades Owner: Trades Support: Programs Owner: Trades Support: Planning, Programs Owner: Trades Support: Planning Owner: Trades Support: Planning Owner: Trades Support: Programs Owner: Trades Support: Programs Owner: Trades Support: Programs Owner: Programs Support: Trades Owner: Trades Support: Programs Owner: Programs Support: Trades Owner: Programs Support: Trades Owner: Programs Support: Trades Owner: Programs Support: Trades Owner: Trades, Programs Owner: Trades Support: Programs Owner: Trades, Programs Support: Planning Owner: Trades, Programs Support: Planning Owner: Trades, Programs Owner: Programs Support: Planning, Trades Owner: Programs Support: Planning, Trades All Hands Owner: Planning Support: Programs Owner: Planning Support: Programs, Trades Owner: Planning Support: Contracts All Hands Owner: Trades Support: Planning, Programs Owner: Planning Support: Contracts, Program, Trades Owner: Trades Support: Planning, Programs Owner: Trades Support: Programs Responsibility ContractsPlanningProgramsTrades Material Control Internal planning meeting Complete Planning Complete the schedule

239. Aligning the Organization to the Value Stream 239 Fabrication Programs Director of Fabrication Craft Manager Craft Supervisor Craft Foreperson Craft Leadperson Journeyman Improver Production Laborer CS CM FP IP PL DF CM CS FP JMSNP Help LP Help HS HelperHourly Sub Snapper Director Cost Business I Program Manager Superintendent Lead/Senior Lead Superintendent PM S DCB PM SS Sub LS SLS Subcontractor/ Teaming Partner

240. Breaking It Down 240 Fabrication Programs Director of Fabrication Craft Manager Craft Supervisor Craft Foreperson Craft Leadperson Journeyman Improver Production Laborer CS CM FP IP PL DF CM CS FP JMSNP Help LP Help HS HelperHourly Sub Snapper Director Cost Business I Program Manager Superintendent Lead/Senior Lead Superintendent PM S DCB PM SS Sub LS SLS Subcontractor/ Teaming Partner PROGRAM HULL ITEMS ITEM Craft Item Piece HOURS

241. When Changes Occur… 241 Fabrication Programs Director of Fabrication Craft Manager Craft Supervisor Craft Foreperson Craft Leadperson Journeyman Improver Production Laborer CS CM FP IP PL DF CM CS FP JMSNP Help LP Help HS HelperHourly Sub Snapper Director Cost Business I Program Manager Lead/Senior Lead Superintendent PM S DCB PM SS Sub LS SLS Subcontractor/ Teaming Partner A Culture of Heroic Efforts!!! A Culture of Heroic Efforts!!! ITEM HOURS Craft Item Piece HULL ITEMS PROGRAM Unscheduled/ Unplanned Events

242. Training Plan and Budget Examples/Format Purpose or Link to Problem, Goal, or Issue Training Audience Proposed Course Delivery Method Course Length Exists, Develops Internally, or Buy Budget Owner Aluminum Weld Re- Work 35 QA Inspectors Navy, SubK, BAE SR 5XXX Inspection Standards WBT3 hoursDevelop$45K Training Dept Aluminum Weld Re- Work 30 Welders Refresher Training ILT 1on18 hoursExists$15KDept 205 Required by BAE to Reduce Corporate Business Risk 500 New Employees 1,000 Annual Refreshers Corp Directed Ethics Training ILT for New Employees 1 st Time WBT for Annual Refresher ILT: 1 hr WBT:.5 hrs Exists New hire: $6K Refresher: $3K New hire: HR Refresher: Leaders 1/12/2010 “BUSINESS SENSITIVE” 242

243. How do you know? Good or Bad Culture 243

244. Culture Indicators Engagement Levels High Performer Attrition Transparency Participating or Competing The Way People Interact… what happened or what do we do now? Winning or Losing Heroic Efforts or Quite Confidence 244

245. So what… Can you control Culture? 245

246. First Things First Team Stability Trust Continuous Improvement Increasing Business Performance 246 Business Operations will always induce variability: - Customer Demands, Suppliers, or Shareholders

247. 247

248. Leader Behaviors

249. 12 249 Calculating “Leader Bench Strength” -Used in Crew Comparison Analysis- Tallied the Tasks in which the individual was rated “High Performing” in their Q2 2009 leader assessments (Crew Supervisors, Chief Maintainers, Lead Palletizers, Substitutes) Assigned score according to the following scale: 4=7or8; 3=5or6; 2=3or4; 1=0to2 Calculated a separate average for the Crew Supervisor, the Chief Maintainers/Lead Palletizers, and the Substitute Leaders from each crew to get a combined Leader Bench Score for each Crew. Example: CS = 4.00, CM/LP Avg. = 3.40, Subs Avg.= 3.00, Leader Bench Strength Score = 3.47 3 4 1 2 3 4

250. Employee Engagement 2009 Analysis and Annual Comparison

251. 251 Crew Engagement by Question QUESTION CODEA CrewB CrewC CrewD Crew Q1 - EXPECTATIONS3.603.803.603.50 Q2 – MATERIALS & EQUIPMENT3.333.40 3.12 Q3 – DO WHAT I DO BEST3.403.203.123.33 Q4 – RECOGNITION AND PRAISE2.903.002.902.40 Q5 – SOMEONE CARES ABOUT ME3.20 3.332.90 Q6 – ENCOURAGES DEVELOPMENT3.003.333.122.90 Q7 – OPINIONS COUNT3.00 2.902.60 Q8 – COMPANY MISSION OR PURPOSE3.123.40 3.20 Q9 – COMMITTED TO QUALITY WORK3.123.333.003.20 Q10 – BEST FRIEND AT WORK2.602.502.402.50 Q11 – TALKED ABOUT MY PROGRESS3.123.203.333.00 Q12 – OPPORTUNITYTO LEARN / GROW3.203.33 2.90 Q13 – I TRUST MY LEADER3.203.123.402.80 2009 ENGAGEMENT AVERAGE 3.123.203.122.90 2008 ENGAGEMENT AVERAGE 2.803.103.202.70 DAILY CAN PRODUCTION AVERAGE 4.230M4.000M4.071M4.108M = Best Score by Question = Improvement Opportunity= Requires Attention

252. 252 2009 Ball Production Goal Tracking Data through August 16, 2009 JanFebMarAprMayJunJulAugSepOctNovDec 2009 Cumulative 8.24%16.04%24.02%33.85%41.96%51.87%61.78%69.71%79.63%87.55%95.49%100% 62.66% Target – 100% or 2.9 Billion Cans Current: 62.66% of Goal (1,817.4M) Goal: 63.31% of Goal (1,835.1M) 61.91% of the Calendar Year August 2009 August Notes: As of Aug 16 the plant is 17.7M cans behind pace to reach annual goal or 0.65% short. The plant needs to exceed goal by approximately 931,000 cans/week over the next 19 weeks to get back on pace for 2.9 Billion Cans in 2009. A Crew remains ahead of their can production goals so far this year.

253. Ball Metal Williamsburg Scoreboard Difference from Weekly Production Goal January 2008 – June 2009 2008 Band of Excellence: 27 of the 52 weeks YTD (51.9%) Standard Goal 56 Mil/Week Standard Goal 57.5 Mil/Week 2008 Band of Excellence: 16 of the 21 weeks YTD (76.2%)

254. 254 Crew Comparison Insights: A Crew (1 st ) remains the top performing overall Crew with #1 Rankings in Manning, Leader Bench Strength, Daily and 4-Day Can Production, 12 oz. Spoilage and 16 oz. Spoilage. (Best Overall Can Prod. Total) Exceeding Goal. C Crew hung on to 2 nd place overall with second place rankings in Engagement, Leader Churn, and 12 oz. Spoilage. D Crew remains in 3rd place overall, yet ranks 2 nd overall in Manning, Leader Churn, Average Can Production per Rotation and reclaimed 2 nd in Daily Can Production Average w/o Maint. Days. Strong August so far. B Crew is improving their spoilage and production numbers, drawing closer to 3 rd. Calculation Note: Week 1 Data was parsed from the data set in order to normalize the numbers following the transformer fire. Otherwise, all numbers are unadjusted. Updated Crew Comparison Analysis January 9 – August 16, 2009

255. Production Line Uptime Equivalence A CrewB CrewC CrewD Crew 2009 ENGAGEMENT AVERAGE 3.123.203.122.90 2008 ENGAGEMENT AVERAGE 2.803.103.202.70 DAILY CAN PRODUCTION AVERAGE (Maintenance Days Excluded) 4.230M4.000M4.071M4.108M ALL LINES - UPTIME EQUIVALENCE +5 min.-36 min.-23 min.-16 min. “A” Crew gains a 30,000 can/shift advantage over the 4.2 million goal by running all their lines the equivalent of five extra minutes per shift. They achieve this advantage by taking less time for label changes, equipment downtime and running less spoilage To achieve the 4.2 M can/shift goal, “B” Crew would have to find an additional 36 minutes of uptime per line; “C” Crew would have to find an additional 23 minutes of uptime per line; “D” Crew would have to find an additional 16 minutes of uptime per line

256. Return on Investment Total Actual Can Production (June 07 – May 08): Total Actual Can Production (June 08 – May 09): Can Production Gains (Unadjusted): Production Delta over Previous 12 Months (%): Total Dollarized Gains @ $0.05/can: Gains Attributed to Leader PI Initiative(50%): Total Invested (June 07 – June 09): Return on Investment: 2,662,149,118 2,746,714,577 +84,565,459 +%3.18 $4,228,272.95 $2,113,136.38 $1,134,000.00 $980,136.48

257. 2008 ASTD Excellence in Practice Citation Winners - Accepted June 2, 2009 - Washington DC -

258. 258 “Putting it all Together” Strategic Planning

259. Vision and Mission Leadership without a Goal is Irrelevant Goals without a Plan encourage activity not productivity Plans connect the entire Team to the Goals Connected Teams are Aligned and Engaged Aligned and Engaged Teams WIN!!!! Winning Teams: –Consistent Near Perfect Performance! 259

260. 260 Is your business in Crisis?

261. 261 Strategy Development “A Systems Engineering Approach” What is the current process and cost? (Current State Map) What does the perfect system look like? (Perfect State Map) How do we get from here to there? Plan of Action and Milestones with Resources Required and Return on Investment Prediction What does the future system(s) look like and how will we measure progress? Future State Map(s)

262. 262 Human Capital Management Program Components 1.On Boarding 2.Current Workforce 3.Leader Development 4.Building Benchstrength 5.Executive Development Where do we start?

263. 263 Start where you get the biggest bang for the buck! CFO Speak: Return on Investment

264. Team Stability Snapshot Data Driven Diagnosis 264

265. Team Stability Snapshot answers… Is the Team positioned to meet future business needs? (1 year, 5 years, 10 Years) Where is the Team Risk? –Organizational Scheme –On Boarding (e.g. Acquiring New Employees) –Incumbent Workforce Development –Line Supervisors Performance Improvement –Building Future Leaders –Performance Improvement Strategic Plan What is the Risk? How do we mitigate the Risk? 265

266. The Process 1.Scoping the Problem :“Patient Intake” 2.Passive Data Capture: “Running Lab Tests” 3.Active Data Capture: “Treadmill, Observation” 4.Risk Definition: “Defining the Current State” 5.Risk Prioritization: “Patient Commitment” 6.Risk Mitigation Strategy: “Defining the Perfect State” 7.Team Stability Plan of Action with Milestones and Resources Required: “Where do we start?” 266

267. Passive Data Capture Capturing as much available data as possible from various sources including but not limited to: Income Statements (Business Performance) Human Resources Payroll Training Safety Operational Leaders NOTE: Passive data capture is meant to be as transparent as possible to current operations. Any interaction with team will be limited and on a not-to-interfere basis. 267

268. Data Request From HR/Payroll Database: Last name Employee Number Job Description Grade/Pay Rate Start Date Leave Date Date they were promote/hired to current Grade Years in Current Grade Service Date (date hired) Years of Service Organizational Unit Assignment (location, job) Years in current Assignment Supervisors – Leader-to-Led Relationships Last appraisal W2s Issued to Average Monthly Headcount 268

269. Data Request Goal: 3 years of Past Data Turnover Rate (by job category, reason, and years of service Business Measures Labor Forecasting Methods Current Hiring Process Current Orientation Program Current Initial Training Program Current Leader Training Program Hiring Forecast by Labor Category Current Developmental Programs/Training Expenditures o By Job Description o By Location Training Management/Tracking Data Absenteeism Rate Copies of job descriptions (use these to get an idea of the skills required for each position) Succession Planning/Career Path information Any available Business Metrics Org Charts Pay scale for each grade for analysis purposes 269

270. Passive Data Analysis Results By Group (Leaders and Skilled) –Attrition (When and Why) –Length of Service (Retirement) –Aging (Sweet Spot) –Headcount Variance over Time and Business Cycle –New Hire High Performer Profile –New Hire Time to Competency –Define Core Team –“Perfect” Headcount, Roles, and Leaders Projection for 1, 5, & 10 years to determine risk by group. (New Hires, Incumbent Workforce, Leaders) Team Stability Data System Performance & Tracking NOTE: Adjust Active Data Capture Plan as required. 270

271. Active Data Capture One-on-one observations/interactions with all leaders and employees on the job site to complete the following: –Engagement Intake with supplemental questions –Leader-to-Led Snapshot –Critical Skills Definition (Current and Future) Determine crew composition –Who works for whom? Develop a Depth Chart by Sub Organization & Skills Set to define Risk Areas. 271

272. Active Data Capture Organizational scheme –Determine what the actual organization looks like. –Understand how requirements are decomposed to daily tasks assigned to individuals and then re-composed to cost, quality, schedule, and safety metrics. 272 CS CM FP IP PL DF CM CS FP JMSNP Help LP Help HS

273. Leader Assessment Based upon Organizational Scheme Analysis develop a Mission Essential Task List by Leader Level along with High Performing, Developmental, and Dysfunctional Behaviors Assess entire population: –Leaders Leader –Leader Self Assessment –Key Internal Clients Identify Strengths and Weaknesses by Task Identify High Performers, High Potential, Developing, and Dysfunctional Leaders Conduct Risk Assessment by Task, by Leader, by sub- organization 273

274. Engagement Assessment Touches “face-to-face” everyone to ensure high reliability of data. Aids in defining a current state picture of the Engagement Level of the department Supplemental questions will focus on areas such as: –Career Path –Tools –Supervisor history? –And other focused questions from Passive Data analysis and senior executive input. 274

275. Deliverables 1.Data Driven Team Stability Snapshot 2.Risk Areas Defined (High, Medium, Low) 3.Risk Categorized (Short or Long Term) 4.Recommended Perfect State 5.Risk Mitigation Opportunities categorized and ranked by Resources Required, Complexity, and Time to Impact for Client Input 6.Long Range Team Stability Roadmap (Strategy) 7.Detailed Risk Mitigation Plan of Action and Milestones with Resources Required addressing Highest Risk Areas 275

276. Program Organization “Who first then What” Executive Review Board –Senior Executives –Facilitator/Quality Assurance: TMG Partner: –Champion: –Process Owner: –Program Manager: –Subject Matter Experts: TMG –Program Manager: –Subject Matter Experts/Data Miners: BUSINESS SENSITIVE276

277. 277 Strategy Must Do’s Choose early programs wisely. Early failure hurts credibility and damages morale. Choose a Program core to the business to gain and maintain senior leader focus. Define metrics to measure progress and sign up for goal accomplishment. Develop detailed Plans of Action and Milestones. COMMUNICATE the PLAN! Execute, execute, execute…

278. 278 Strategy Must Not Do’s Try to make us a training company Break the bank Make unrealistic promises Have a negative impact on production

279. 279 Human Capital Challenges No silver bullet…Big Problem with a lot of moving parts in a dynamic business environment The commitment is to provide some real analysis to focus our efforts…not a “Good Idea of the Day” approach The recommendations must make good business sense We must be realistic and “eat the elephant” one bite at a time. We must create a SYSTEM to: –Better communicate with our primary clients: the Production Managers –Synchronize and integrate our Projects and Programs with the normal business operations. –Give the Managers predictable yet responsive support

280. 280 How do you choose Leaders? First Line Supervisors Supervisors Managers

281. 281 Optimizing Team Capacity What are you best at? (Strengths Assessment) What were you doing the last time you were “in the zone”? When was the last time you said to yourself…now that was some good work! When I call you what is the thing you hope I am going to ask you to do? When I call you what is the thing you hope I am NOT going to ask you to do? What do you hate doing? How much of your time to do spend on both? Why? (HMMMM!)

282. 282 Key to playing to Strengths Select the right leaders Optimize their potential by placing them in the right jobs Make sure that the Organizational Scheme supports the leader in their job Create opportunities to get better at what they do best

283. 283 Coaching Program Overview Coaching is just one of many tools available to supervisor’s in the tool kit as a means of changing behaviors to improve performance. Coaching requires a series of scheduled planning sessions, briefings and reporting & intake sessions. Advantages of Coaching Matches the experience of a high performer in a particular task with another leader needing focused help Performance Driven Linked to the Individual Development Plan Focused on just one assessment task identified for improvement Short term engagement (3-4 months) Goal is immediate behavioral change and improved performance Occurs on the job with minimal interference to routine operations 283

284. 284 Coaches Mission: Help you achieve consistent near perfect performance. –Realistic Performance Agreements Including: –Performance Goal –Professional Development Goal –Health and Fitness Goal –Behavior Goal (TMG METL) –Opportunities to work on the right Projects –Meet with Coachee at least monthly for face-to-face discussions. –Coaches/Coachees report out at each monthly Learning and Development meeting 284

285. 285 Coaching Timeline 1.Goal Alignment Sessions to determine Developmental Needs. - Administer ‘The Coaching Process’ Course to all Coaching Program Participants. - Confirm the Coach/Coachee Population with Leaders. 2.Coaching Match Up & Resource Session. 3.Coaching Line Up and Resource Approval. 4.Coaching Group Kickoff Meeting. (Participants: All Coaches, Direct Supervisors of those being Coached, Management Team) * Individuals being Coached do not attend this meeting.* 5.Individual Coaching Event Kickoff Sessions. ( Participants: Coach, Coachee, Direct Supervisor. 15-20 min. each) 6.Execute Task/Behavior Focused Coaching. 7.Plant Manager Walkabouts. 8.Individual Post Coaching Sessions. (Participants: Coach, Coachee, Direct Supervisor. 15-20 min. each) 9.Leaders Coaching Results Presentation to Senior Leader. 10.Leaders (2 Levels Up) out brief with Coached Leader. 11.Coaching Report Out 12.Coaching Process Continuous Improvement Discussions. 285

286. 286 Building Lean Leaders

287. 287 Hypothesis If we transform our current Leaders into Lean Leaders with new responsibilities and behaviors; we will eliminate waste and improve business performance measured in “line of sight” savings. Outcome Metric: WASTE Identification and Elimination Process Metric: Improving Leader Behaviors

288. 288 1 st Line Supervisors “We have Leaders who are busier than ever but don’t seem to be making any progress.” Expected Outcomes: Increase our leader's ability to solve more day-to-day problems correctly the first time. Increasing our capacity to identify and eliminate Day-to- Day Waste. Increasing our capability to identify and eliminate Systemic Waste to reduce the number of day-to-day problems. Aligning our command, control, and communications structure from General Manager to 1 st Line Supervisor to clearly define "line of sight" accountability, responsibility, and authority.

289. 289 Common Current State Issues Operational Responsibilities have exploded yet no clear articulation of those roles and responsibilities Leader’s can’t see the process through the data haze Lots of stick if you mess up the data; very little carrot to be out in the patch Cultural bias for solving today’s problems right now – not necessarily in priority order based upon biggest bang. “5 Year Old Soccer” Crisis Management Culture creating waste in the Leadership Bandwidth

290. 290 What Triggers Cultural Change? …changed Behaviors! Target Leader Training: –Stop Doing a bunch of things not adding value –Start doing new things to add value Senior Leader Training: –Setting the conditions for Target Leaders to succeed –Not forcing non-value added behaviors Behavior Based On the Job Coaching to attain high performance

291. 291 1 st Line Supervisor Commitment “Win-Win” Terms If the Senior Leaders support the changes to become Lean Leaders then… –I will change my behavior to reflect the Lean Leader Behaviors taught to me in the Training Program –I will identify and eliminate waste in my area of responsibility –I will improve my business performance

292. 292 Senior Leader Commitment “Win-Win” Terms If the 1 st Line Supervisors change their behaviors to become Lean Leaders then… –The Senior’s will create a better condition for the 1 st Line Supervisor by also identifying and eliminating waste from their position in the organization. –The Senior’s will present their proposal for the 1 st Line Supervisors for their approval. –Once approved the Senior’s will report out to the 1 st Line Supervisors on the same program management.

293. 293 Lean Leader Mission Essential Tasks 1.Knows their Process 2.Knows their Customers and Suppliers (SIPOC) 3.Identifies Day to Day and Systemic Waste 4.Prioritization 5.Eliminates Waste & Improves Business Performance 6.Engages Team Mates

294. 294 Change: It is harder to get the Old Idea Out… than a New Idea In. To do something new you have to stop doing something old! To stop doing something requires Trust to fight the I’m doing something WRONG instinct…

295. Employee Engagement Assessment Totals Engagement Surveys Conducted:185 Total Engagement Average: 2.91 36.76% = Engaged (68 Employees) 58.92% = Satisfied (109 Employees) 4.32% = Actively Disengaged (8 Employees)

296. Engagement Assessment Results 1.I know what is expected of me at work: 2.I have the materials and equipment that I need to do my work right: 3.At work, I have the opportunity to do what I do best everyday: 4.In the last seven days, I have received recognition or praise for good work: 5.My Supervisor, or someone at work, seems to care about me as a person: 6.There is someone at work that encourages my development: 7.At work, my opinions seem to count: 8.The mission or purpose of my company makes me feel that my job is important: 9.My associates or fellow employees are committed to doing quality work: 10.I have a best friend at work: 11.In the last six months, someone at work has talked to me about my progress: 12.This last year, I had opportunities at work to learn and grow: 13.I trust my leader: Strength Opportunity to Improve

297. 75.7% - Had an idea but often did not want to share it with Management 24.3% - Did not have an idea What idea(s) have you had to improve an area of the plant? Do you feel that favoritism plays a role in your ability to advance or receive promotions? 65.9% - YES 34.1% - NO

298. If you were king/queen for a day, what is the one thing that you would change? How? POSITIVE/CONSTRUCTIVE Improve Communications - Better PA System - Standardize Sign Language - Provide Communications Training Lengthen or change the work cycle and consider stopping the shift rotations for the hourly workforce. Open a training department for basic Mechanical Skills to develop subordinates. Formalize Leader Development Training. Provide vacuums for shop floor housekeeping efforts. Improve ventilation of the shop floor and devise temperature control methods. Modernize manufacturing equipment and palletizing machinery. Increase manpower in the warehouse and on some parts of the production lines. NEGATIVE/DESTRUCTIVE Fire Management/Supervisors and start with clean slate to restore trust: - Across the Board - Some by Name Break up the ‘Good Ol’ Boy Network’ and eliminate Favoritism to restore teamwork. Reevaluate or change the process for promotions to eliminate the vote/survey. Improve morale by empowering employees instead of breaking them down. “The negativity is as bad as it’s ever been.” Provide anger management training & soft skill training to reduce employee abuse. Management styles range from micro- management to indifference. Employees are no longer empowered to make decisions. Fear and focus on production numbers prevent root cause solutions.

299. 299 Marcus Buckingham Leaders as Chess Pieces NOT Checkers –Each Piece has different strengths and moves differently –Key is optimize the strengths –Goal is to turn Pawns into Queens –Each Piece has unique potential– some pawns will never be Queens and that is OK. –Goal is to make Leaders Great at their Strengths and not force them to be OK at their Weaknesses.

300. 300 Business Performance is a Function of Team Engagement Team Engagement is a function of 1 st Line Supervisors ability to build and sustain Trust: –Leading Business Performance Indicators –Responsible for producing “Customer Value” –Are held accountable for production requirements –They are responsible for getting “8 for 8” from the hourly workforce –Usually in their first leadership position –Work all shifts –Blending of technical and people skills is required –Performance is directly related to their Manager’s ability to lead them.

301. 301 Employee Engagement & Trust Show me the $$$$$ It is NOT what they say but what they DO! Measures: –less process waste –decreased turnover –decreased safety incidents –decreased maintenance expense –fewer grievances –decreased absenteeism –reduced error rates, etc

302. 302 Why a Promise? To ensure everyone knows their responsibilities To ensure everyone on the team knows the responsibilities of everyone else on the team. Allows the Team to discipline itself The Promise allows for: –Alignment to focus everyone on the Goal –Fixes Responsibility –Clearly States Accountability –Keeps Leaders & the Led in their Lanes. 302

303. 303 As a Team Mate I Promise: To do my part to make 4.1 Millions Quality Cans per shift! If the line is down find out why To come to work everyday ready to work hard; If I CAN NOT come to work I will notify my leadership To know the Score To maintain housekeeping standards at all times To be a Good Team Mate by communicating and listening To be Safe 303

304. 304 As an Operator I Promise: To tell somebody fast if I see something wrong that affects quality or production To inform my Chief so they can make adjustments to my team if I have to leave work 304

305. 305 As a Maintainer I Promise: To come to work with the right tools, of the right quality, to be able to do my job everyday If I do not have the right tools then I will communicate this to my Chief. To maintain the equipment I am assigned to company standards and ensure quality product-- if I can not I will communicate this to my Chief To inform my Chief so they can make adjustments to my team if I have to leave work 305

306. 306 As a Chief I Promise: To arrive 15 minutes (5:45) before shift change and receive the work plan from Crew Supervisor To adjust my daily work plan and assign tasks to Maintainers based upon guidance received at Shift Change To stay on the floor to finish the shift strong and turn their areas over in better housekeeping standard then when they came on. To execute, monitor, and report the shift work plan to the best of my ability. To be on the line ‘Leading by Example’. To ensure each Team Mate knows exactly what they need to do everyday for the team to Win. To take care of my people by listening to them and helping them contribute the team goal. To ensure my team knows how to do their work. To talk face to face with each of my teammates everyday at least at start up on what they need to do and shift change on how they did. To enforce the standards. 306

307. 307 As a Crew Supervisor I Promise: To meet with the GS prior to Shift to finalize the work plan. Arrive 30 minutes (5:30) before shift change. To communicate, monitor, and report work plan execution– with a progress report near the end of the shift or not later than 5:00. To resolve conflict between the Chief and team mates who are not doing their part for the team to win. To understand the Chief’s performance barriers and remove them To ensure my crew has the right tools, parts, and materials to do their work To ensure my crews have the right people scheduled to perform the work. To anticipate problems and help the Chiefs in crisis situations To do what I say I will do To have trust and confidence in my Chiefs to do their Job To give honest feedback so we can get better To address any Operator or Maintainer, and Chief schedule changes (vacations, PCHs, and schedule changes) 307

308. 308 As the General Supervisor/ Changeover Supervisor I Promise: 1.To create and implement a 30 – 60 day Production Plan that addresses Man, Machine, Material and Method. 2.To ensure the Supervisors have sufficient leaders and people to produce 4.1 Million cans per shift. 3.To ensure the shift changeover meetings are well planned and seamless. 4.To provide the Crew Supervisor with the shift work plan. 5.To communicate potential barriers to the Production Manager for resolution and report impact 6.To inform the Production Manager of support requirements. 308

309. 309 As the Plant Manager: I Promise My Plant to: 1. Prioritize and focus our people and resources where they have the most positive business impact for the short and long term. 2.Create a culture of relentless attention to detail from me to the Operators which will grow a great, safe, and profitable business. 3.Develop the future leadership of our Plant I Promise Our Corporate Parent to: 1.Meet or exceed our annual EBIT Goals. 2.Operate a Safe Plant 3.Build Strong Customer Relationships 4.Be a steward in the Community

310. 310 Horizontal Labor Planning Considerations Job Complexity Production Tempo Level of Manual Labor Level of Intellectual Labor Quality Standards Availability and Skill Set of Labor Pool Availability of Leaders (Leader to Led Ratio)

311. 311 Vertical Labor Planning Production Workforce Senior Management 1 st Line Supervisors P & L Responsible Leaders Machine 1Machine 2Machine 3Machine 4Machine 5 SalesEngineering IT/HR/ Accounting

312. 312 Vertical Labor Planning Considerations Span of Control (Leader to Led Ratio) Physical Environment Tempo Hourly or Salaried Complexity Same Labor Categories or Mixed IT/ERP System Granularity Support Staff Availability (Production Control, Planning, Quality Control, Engineering, Training, HR, etc.)

313. 313 Creating the Conditions for Success Owner: Creating the Business Model (Profit and Loss) General Manager/Front Office: Runs the Business Head Coach: Decide the Game Plan (Players and the Plays) Coordinators: Call the Plays Coaches: Ensures the Players know how to run the Plays Leaders: Read the current situation and execute the Plays Players: Execute the Plays

314. 314 Alignment Core Business Event = Quality Cans Produced per Order Cans Produced per Order EngineeringQualitySalesProduction Responsibility + Authority = Accountability

315. 315 Putting It All Together When the CEO/CFO say… “OK… we see all the pieces, we understand the problem, we know this critical to our business…” “How much money do you need and when do you need it, and how will we know it made our business better?”

316. 316 People Focused Systems Design Challenges 1.No silver bullet…Big Problem with a lot of moving parts in a dynamic business environment 2.Focused effort based upon real analysis…not a “Good Idea of the Day” approach. 3.Recommendations must make good business sense 4.Design Executable Programs and be good Program Managers (Cost, Schedule, Quality) 5.Be realistic in execution and “eat the elephant” one bite at a time. 6.Focus on PEOPLE first; then FTE. 7.Requires long range thinking… People are multi-year projects-- if fact Life Long Projects 8.Do not be a part of the Profit and Loss problem!

317. 317 Attracting and Retaining High Performers America is producing the least productive 22 year olds and the World’s Best 30 year olds.

318. 318 Insights Traits: –Instantaneous Gratification –High Expectations –High Comfort Level with Risk Most engaging job factors: –My Opinion Counts –I can make a difference Recruiting and Retention Objective: –Engage them from first contact. –Challenge Them from Day 1 –Watch Out!!!

319. 319 Churn Sucking Cost Invisibly!

320. 320 Churn Definition: Percentage of Workforce scheduled to work that day are present to perform the work in the assigned areas. Scheduled: The reaction time to prepare on “On Boarding” Plan to accelerate the transition time to competency of new teammate. Usually caused by external churn factors; Promotion, Transfer, Expansion, or Downsizing Initiatives Unscheduled: The Leaders confidence level that the teammates they planned to work that day actually showed up to work. Usually caused by internal churn factors; sickness, vacation, and absenteeism. Unmanaged Churn Reduces Trust!

321. 321 Causes Individual Induced: –Sick –Appointment –Work Schedule –Lifestyle –Apathy –Vacation –Don’t Like My Boss –Looking for New Job –Family Crisis Organization Induced: –Promoted –Re-assigned –Training –Personnel Policies –Required Meetings –Additional Duties –Business Travel –Process Changes –Transferred

322. 322 Churn Good News - Bad News Bad News: –Reactively; Taken Individually or “One at a Time” –Crisis of the Day approach –Just get through… –“Do No Harm” is measure of success Good News: –Proactively; Taken Systematically –Opportunity to Change Culture –Increases Informal Communication Networks –Builds Trust –Every “Churn” is a Developmental Opportunity –Lean Training Opportunity: Understanding the Value Stream both Horizontally and Vertically.

323. 323 Foreman Scheduled Churn Overview Sep 2003: 69 Foreman Aug 2004: 61 Foreman –8 Foreman rated in 2003 but not in 2004 (Transferred, Promoted, Demoted, Retired) –8 Foremen rated in 2004 but not in 2003 (New) –16/61 = 26% Churn Rate Jun 2005: 45 Foreman –15 Foremen rated in 2004 but not in 2005 (Transferred, Promoted, Demoted, Retired) –1 Foremen rated in 2005 but not in 2004 (New) –16/45 = 35% Leader Churn Rate Jan 2006: 33 Foreman –14 Foremen rated in 2005 but not in 2006 (Transferred, Promoted, Demoted, Retired) –4 Foremen rated in Jan 2006 but not in 2005 (New or returned from on loan) –18/33 = 54% Leader Churn Rate

324. 324 Foreman Internal Churn Data (Unscheduled) Total Foreman = 33 # of General Foreman Changes= 19 (58%) # of Area Changes= 9 (27%) Both General Foreman & Area = 7 (21%)

325. Workforce Forecast PERIOD 2006 – 2008 2009 – 2013 2014 – 2018 2019 – 2023 DATA CORE START 111975724 CORE ATTRITE (6.25% per yr) 1427145 CORE +65 (over period) (2)131929 CORE END (over period) 975724-0- AVG WORKFORCE Requirement 159 12/20/08 *133133 NEW HIRE ATTRITE (49%) 8673105127 NEW HIRE RETENTION 76109133 NEW HIRE FORECAST 169 ACTUAL 149214260 325 50% New hires exceed core group that has been with company for 5+ years *173 as of 5/20/09

326. Leader Forecast PERIOD 2006 – 2008 2009 – 2013 2014 – 2018 2019 – 2023 DATA CORE START 302070 CORE ATTRITE (11% per yr) 10960 CORE +65 (over period) 04812 CORE END (over period) 20700 AVG LEADER Requirement 40 12/29/08 *3232 NEW HIRE/PROMO RETENTION 29 ACTUAL 2532 NEW HIRE/PROMO ATTRITE (42%) 111823 NEW HIRE/PROMO FORECAST 4355 326 50% *40 as of 5/20/09 New hires/promotions exceed core group that has been with company for 5+ years

327. Workforce Snapshot as of July 31, 2009 HELPER / IMPROVER JM 1 /2 (SF / W) JM 3 / 4 (SF / W) JM 5 (SF / W) TEMP (SF / W) LEADMAN (SF / W) FOREMAN (SF / W) ONBOARDING SINCE JAN 1 Incl Prod Lbr JAN 125 / 2117 / 1313 / 913 / 1336 / 2518 / 514 / 2HIRED TODAY29 / 1920 / 1213 / 912 / 1539 / 1418 / 513 / 235 + / -+4 / -2+3 / -10 / 0-1 / +2+3 / -110 / 0-1 / 0DEPART TOTAL 48322227532315 HI-PO 42 OPEN REQ 0 / 0 POOL JAN 1 1 / 23 / 1TODAY August 12, 2009 BUSINESS SENSITIVE 327 Total: 220 Leader to Led: 38/182 Foreman/Leadman/Worker/Temp: 15/23/129/53 NOTE: JAN 1 personnel numbers started 4/27/09

328. 328 Who gets to Play? Matching Leaders to People to Jobs Considerations 1.Past Performance 2.Technical Experience 3.Strengths and Weaknesses 4.Work Area Complexity 5.Leader-to-Led Ratio 6.Lead Times 7.Crew Make-Up 8.Shifts PLANNING M1S M PCSS 1S GTM M OM NE

329. 329 Key Factors Do you have the expertise and bandwidth to develop new leaders? What are the high performance behaviors required for success? –Skills “Sees” the Value Stream Identify and eliminate waste Use the computer to analyze data –Attitudes Like People Good Judgement Character

330. 330 Great Combat Commanders Intuitive sense of the battlefield…situational awareness Think in Time and Space…and knows the critical path by instinct Sense events they can not see Orchestrates apparently disparate actions into an exquisite harmony

331. 331 Microsoft Leader Competencies Capacity to see systems, patterns, and connections beyond the obvious contained in the data. Ability to think and execute with a Systematic Organizational View over time.

332. 332 Leadership Traits CLO Magazine Think critically Analyze complex data Synthesize divergent evidence into a coherent plan of action, Define a mission and vision for their team Negotiate and resolve conflict Successfully communicate all this up and down in their organization

333. 333 Executive Leaders… See systems, patterns, and connections beyond the obvious contained in the data. Think and Execute in a Systematic Organizational View simultaneously (e.g. 2008, 2010, and 2025) Synthesize divergent evidence into a coherent plan of action Continuously define a mission and vision for their team Sense events they can not see Negotiate and resolve conflict …and Communicate all this both up and down in their organizations.

334. 334 C-Level Insights High Performance requires Trust. Everyone can get better: It is a High Performance Behavior Leadership without a Goal is Irrelevant Goals without a Plan means activity replaces productivity You have got to have systems in place to “kill alligators” and “drain the swamp” at the same time. He who learns fastest Wins! Long Tail and Customer Pull Learning/Training is NOT an HR Function… It is an Operations function Learning System requires Investment. –Convert Quality and Continuous Improvement groups to Observer Controllers to facilitate the Learning. –Learning is about getting the information from those who have it to those who need it ahead of the production bow wave.

335. 335 Challenging Questions Where is your challenge? –New Leaders –Current Leaders What is your new leaders time to competency? Is that acceptable?

336. So you think you are too busy to fully implement to the Lean Journey? 336

337. U.S. Army “The Busiest Organization in the World” 337

338. Beyond the Horizons 2008 Pacific Angel 2008 338 Strategic Environment: 1989-2009 Sharp Guard 1993-96 Deny Flight 1993-95 Provide Hope 1992-94 Hurricane Andrew 1992 Saudi Arabia Desert Shield 1990-91 Croatia Provide Promise 1992 Western U.S. Fires 1994 Midwest Floods 1993 Rwanda Support Hope 1994 Bangladesh Sea Angel May 1991 Somalia Restore Hope 1992-94 Cuba Migrant Operations 1994 Macedonia 1993-99 Provide Comfort 1991-96 Strong Support 1998-1999 LA Riots 1992 Hurricanes OP New Horizons 1999 Provide Refuge 1999 Noble Eagle 2001-? Tsunami Aid 2005 Haiti Uphold Democracy 1994-2000 Dakota Floods 1997 Hurricanes 2004 Domestic Support/ Disaster Relief Humanitarian Ops Peace Enforcement Major Theater War General War Nuclear War Strike/Raid Peacekeeping JTF Liberia 1992 46 Deployments in 20 years… More missions … fewer Soldiers Cold War End (1989): 28 Divisions (18 AC;10 ARNG) Today (2009): 18 Divisions (10 AC; 8 ARNG) Bosnia1995-? Kuwait Desert Storm 1991 Kuwait Vigilant Warrior 1994-2003 Sinai MFO 1982-? Taiwan Maneuver 1996 Desert Fox 1998 Desert Thunder I and II 1998 Kuwait Vigilant Sentinel 1995 IraqiFreedom2003-? HOA2002-? Enduring Freedom 2001-? Kuwait Southern Watch 1991-2003 Panama Just Cause 1989-90 Allied Force 1999 East Timor 1999-2002 Assured Response 1996 Wild Fires 2007 Hurricane Iniki 1992

339. 255,000 SOLDIERS DEPLOYED/“FORWARD STATIONED” IN NEARLY 80 COUNTRIES OVERSEAS *INCLUDES AC STATIONED OVERSEAS OTHER OPERATIONS & EXERCISES 2,230 SOLDIERS HONDURAS JTF-BRAVO 450 SOLDIERS JTF-GTMO 650 SOLDIERS KFOR 1,500 SOLDIERS M M Army Global Commitments OIF - IRAQ 100,600 SOLDIERS OEF- PHILIPPINES 250 SOLDIERS SOUTH KOREA 16,600 SOLDIERS (Part of AC Station Overseas) HOMELAND SECURITY 6,000 SOLDIERS (RC Mobilized Stateside) MFO 700 SOLDIERS OEF- AFGHANISTAN 30,200 SOLDIERS OIF - KUWAIT 14,100 SOLDIERS BOSNIA 20 SOLDIERS ALASKA 13,000 SOLDIERS USAREUR 45,500 SOLDIERS JTF- HOA 900 SOLDIERS QATAR 1,250 SOLDIERS As of 05 May 09

340. On Average, Soldier… RANK: AGE: TIME IN SERVICE: BASE PAY: EDUCATION: MARITAL STATUS: RACE: GENDER: AVERAGE WORK DAY: E-4 (Corporal / Specialist) 22 4 Years $2,127.60/Month High School Graduate Married with 2 Children 63% Caucasian / 37% Minority 86% Male / 14% Female When the mission is complete

341. 341 Your US Army…...Moves more than 700,000 personnel in and out of theater yearly, the equivalent of all Washington, DC residents …Purchases enough fuel daily to provide fuel for every car in Washington, DC twice per day....Resets 14,000 vehicles a year. That’s enough to fix almost all of the student body’s cars (assuming they all have one) at Georgetown University.... Ships over 10,300 Mine Resistant Ambush Protected (MRAP) vehicles to theater in a year or enough to cover 31 football fields. … Resets 96,000 small arms or enough to overhaul the weapon of every sworn law enforcement agent in Washington DC almost seven times/year.

342. 342 Things That Make You Go Hmmm… Every year 170,000 men & women join the US Army Only 3 of 10 males 17-25 years of age is qualified to join the US Army We have been fighting this conflict longer that any war except the American Revolution In the American Revolution (1775-1781) your Army won 3 battles (Trenton – Saratoga – Yorktown) 90% of all wounded in this fight survive (70% in Vietnam) Reenlistment rates are the highest in our deployed units!!!!!

343. The Math Total Force: 535,000 Annual Turnover: 170,000 Deployed: 255,000 Sustainment Base: 110,000 343

344. Culture We will never put a soldier in harm’s way unless we have done everything possible to ensure their success. –Current and Relevant Doctrine & Procedures (Process) –Organization designed to Win! –Mission Focused Individual and Collective Training –Competent Leadership at EVERY level –Right and Best Equipment Available –Stable relationships between Soldiers and Leaders in a Culture of Trust 344

345. All of that and still they have attained… Consistent Near Perfect Performance! How… 345

346. Team Stability… The Brigade Combat Team …where the Heartbeat of the business is accomplished everyday! 346

347. 347 Buy or Build Leaders Hire or Develop

348. 348 If you had $10,000 to invest what % would you spend on… 1. Development –Developing your current Leaders/Employees into future Leaders– Building Leaders Benchstrength 2. Selection –Selecting Leaders from the Pool of Internal and External Candidates (Interview Process)