1. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Steering Committee Procedures And Best Practices

2. Pg 1 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Steering Committee Structure Lean Six Sigma Steering Committee Lean Six Sigma Steering Committee: Who…Client Sr. Leaders, HR and Fin. Champions, Transformation Team Leadership, Six Sigma Academy Senior Leaders Why… −Communications −Goal Setting and Strategic Alignment −Organizational/Personnel Issues −Project review, approval, monitoring and sign-off −High Level Program Review (progress) −Policies (R&R, rules of engagement, etc.) −Reward and Recognition −Major project reviews (>$3M) When…Bi-weekly (Special sessions as required) Steering Committee ensures alignment, drives results. Finance ChampionHR Champion Transformation Team Executive Champion Six Sigma Academy (initially)

3. Steering Committee Procedures And Best Practices Pg 2 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Steering Committee Meeting – Agenda Items Agenda (content and emphasis adjusts to meet current deployment needs): Projects: -Project Pipeline review Needs (appetite) Project treasury (in progress, approved, etc.) -Active project review Projects behind schedule Large projects Amendments -Proposed Projects For upcoming training or to replace completed projects Review/vote - Approved, Approved Conditionally, Hold, Cancel, EODB -Other needs People performance -DEARS scores (training) -Black Belt ratings Upcoming needs (future waves/projects) -Projects -People (including repatriation) Financial Review Executive Champion leads meeting, communicates results. Emphases/content will change at different stages of deployment.

4. Steering Committee Procedures And Best Practices Pg 3 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Lean Six Sigma Steering Committee Lean Six Sigma Steering Committee Nominations Certifications R&R Placement Issues Communications Nominations Certifications R&R Placement Issues Communications Human Resource Executive Champ & Transformation Team Program to date summary Current Month performance YTD & FY Forecast Pipeline review Highlight Projects Program Performance Finance Champion TT/PO/BB/MBB Project Reviews (Proposed & Tollgate) TT/PO/BB/MBB Amendment Request Report to Sr. Mgt. Performance Projects HR Generally meets monthly, after books closed Steering Committee Overview Executive Champ.

5. Steering Committee Procedures And Best Practices Pg 4 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Reviews Prior to meeting: -Transformation Team (Prod Squad) and LSS Deployment Manager manage pipeline of project ideas/charters, identify, define, prioritize and draft project charters to present to SC -Client and Six Sigma Academy Finance validate proposed project financials -Charters submitted (e-Mail or database) to Executive Champion (or designee – often an assistant) -Executive Champion or designee accumulates and summarizes projects for SC review, distributes report 3 days prior to meeting so SC members can pre-read Steering Committee representative (usually Executive Champion or Transformation Team) presents and discusses project from their area with Steering Committee Steering Committee votes on proposed projects (including amendments) -Input form all -Client and Six Sigma Academy have final votes -Requires both, Client and Six Sigma Academy approval to proceed -Project status (result of vote) recorded in project database Comments/notes/votes and actions should be recorded and distributed as part of meeting minutes -Need a designated note taker at meeting Effective project reviews requires structure, organization, preparation.

6. Steering Committee Procedures And Best Practices Pg 5 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Steering Committee Voting Process Financially Validated Charters Collected, Summarized, e-Mailed to Steering Committee Members Steering Committee Members Pre-Read Project Charters, Note Questions Steering Committee Meeting Approve Project As-Is (Approved) OK to proceed as is Approve Project With Clarification (Approved) OK to proceed, requires clarification, re- wording, often scope-related. Transformation Team or designee to follow-up and insure changes are made. Does not need to come back to SC before giving to BB. EODB agreement? Hold Project for re-work, re-submission (Not Approved) Project requires re-work before it can be approved. Not clear, not strategically aligned, does not have acceptable financial benefits Cancel Project (Not Approved) Does not make sense to proceed with this project. Redundant with another initiative, change in business condition reduces value of project. Define phase requires “sanity check” to invest Black Belt’s time. Steering Committee Administrator Before Steering Committee Meeting Structured Review Communicate Outcome To Transformation Team and Area Managers

7. Steering Committee Procedures And Best Practices Pg 6 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Steering Committee Review – Documents Project Charter Summary Individual Project Charters The Project Charter Summary document is an Excel file containing key data elements from individual Project Charters. The Summary document is designed specifically for use in Steering Committee meetings. At Citizens Bank we will use the LSS Project Status Excel report for this purpose. Key data elements contained in the Summary document include: Problem Statement, Project Objective, Project Champion name Black Belt Name, Etc. Each project is represented as a single line in the Summary document. Individual Project Charters (Excel files) are also available in a Zip file for Steering Committee use as more detail is required. Administrator prepares and distributes meeting documents.

8. Steering Committee Procedures And Best Practices Pg 7 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Charter Pre-read Process 1.Problem Statement – Describes the business problem, identifies performance “gap”, aligned with business objectives, linked to Voice Of the Customer (VOC) 2.Project Objective – Defines scope and timing, specific, measurable, contains information about project timing, does not include solution to problem 3.Project Benefit - Briefly Describes the expected project benefits. Includes relevant calculations and explanations. At least $250K in OI improvement. 4.Project Metric – Indicates the primary metric(s) used to characterize project success, should be easily measured. 5.Defect Definition – Should describe the condition of the process output that is unsatisfactory. Should be specific to the problem described in the Problem Statement. Project Charter Summary Individual Project Charters Read and check each project for reasonableness as follows: Examples of review items to address in Steering Committee meeting.

9. Steering Committee Procedures And Best Practices Pg 8 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Steering Committee Meetings – Prework Update Project Pipeline (as needed) Black Belts update project status Transformation Team, Six Sigma Academy Master Black Belt, CB Deployment Manager ensure updates are complete and review to present at Steering Committee meeting Finance Champion prepare and review Financial report(s) HR Champion and Executive Champion or designee prepare personnel material (recommended belt candidates, performance reports, etc.) Deployment Manager prepares project status report-out (or use project tracking database if appropriate) Transformation Team chartered and reviewed proposed projects with approval from Area Managers. Finance Champion and Six Sigma Academy Finance sign-off. Roles and/or processes may vary for deployment – Need to customize.

10. Steering Committee Procedures And Best Practices Pg 9 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Trademarks And Service Marks Trademarks of Six Sigma Academy: Breakthrough Change Strategy SM Breakthrough Design SM Breakthrough Software Design SM Breakthrough Diagnosis SM Breakthrough Execution SM Breakthrough Lean ® Breakthrough Sigma Lean SM Breakthrough Six Sigma SM Breakthrough Strategy ® Breakthrough Value Services ® FASTART SM SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIME SM Six Sigma is a federally registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc. VarTran is a federally registered trademark of Taylor Enterprises

11. Steering Committee Procedures And Best Practices Pg 10 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Six Sigma Academy www.6-sigma.com US Tel: (480) 515-9501 US Fax: (480) 515-9507 International Tel: +44-1403-783456 International Fax: +44-1403-218788 8876 E. Pinnacle Peak Road, Suite 100 Scottsdale, AZ 85255