West Impl 1© The Delos Partnership 2005 Integrated Enterprise Leadership Implementation

West Impl 2© The Delos Partnership 2005 Westinghouse Issues Multiple projects touching on the issue [load management, supplier development, component management, performance measurement] Lack of data accuracy, hence lack of faith in systems Unwillingness to tackle monumental change Functional/regional organisation not wanting to take a global view Lack of leadership towards implementing a global class organisation Lack of appetite to bring about change when abou to be sold

West Impl 3© The Delos Partnership 2005 Westinghouse Opportunities People want to change Need to create a global organisation integrated across a number of sites. Desire to implement right tools and techniques, processes and culture Need to bring about monumental change through using measures to change behaviour

West Impl 4© The Delos Partnership 2005 Integrated Enterprise Leadership Implementation AUDITAUDIT Workshop for key people Organise and create Teams Understand And prepare Workshop(s) For Team(s) Develop and Extend Pilot and run 7 Stage process Extend to whole business and refine Implement Month 1Month 2Month 3

West Impl 5© The Delos Partnership 2005 The Mechanics 1.Assessment of current practice 2.Educate the management team 3.Organise and assign resources 4.Workshop(s) for Project Team and Task Teams –Define: Families - process vs. product Volume and unit of measure Planning horizon Performance measurement and accountabilities –Define process steps - monthly timetable, review groups, agenda 5.Pilot one family or one business then rapidly add the rest 6.Evolve the process

West Impl 6© The Delos Partnership 2005 Stage One - Awareness AUDITAUDIT Workshop For Key people Organise and Create Teams Understand And prepare Workshop(s) For Team(s) Develop and Extend Pilot and Run 7 stage process Extend to whole Business and Refine Implement Month 1Month 2Month 3 Awareness

West Impl 7© The Delos Partnership 2005 Initial Education Principles of Integrated Enterprise Leadership –One set of numbers –Teamwork –Common sense –It’s a formal process not a meeting –Strategic not operational Build the understanding of a broad group of the impact on the business –Reorganise some existing processes –Improving and formalising communication –Longer term view, and not fire-fighting –Integration of all business processes

West Impl 8© The Delos Partnership 2005 Stage Two- Organisation AUDITAUDIT Workshop For Key people Organise and Create Teams Understand And prepare Workshop(s) For Team(s) Develop and Extend Pilot and Run 7 stage process Extend to whole Business and Refine Implement Month 1Month 2Month 3 Organisation

West Impl 9© The Delos Partnership 2005 Implementation Resources  Executive Sponsor  Project Leader –Responsible for implementation –Full-time –Continuing role  Process Step owners –Responsible for process development –Continuing role  Integration Team – cross process  Process ‘Design Teams’ with cross functional membership

West Impl 10© The Delos Partnership 2005 Role of Process Owners Ensure full development of the process Chair the process meetings Develop process in line with workshops –Inputs/outputs –Performance measures –Team members Keep to the plan Long term process development Provide enthusiasm and knowledge for ideas

West Impl 11© The Delos Partnership 2005 Process Step Owners SENIOR TEAM REVIEW PRIORITY PROCESS INNOVATIONINNOVATION CUSTOMERSCUSTOMERS SUPPLIERSSUPPLIERS SUPPORT ACTIVITIES

West Impl 12© The Delos Partnership 2005 Roles of Process Teams Review current processes Review software and data aspects –Develop families –Develop rationale for horizon –Develop links to MPS, financials, etc. Develop data Develop roles and responsibilities Document procedures Review linkages to other steps and existing business meetings Identify and define Key Performance Indicators Review behavioural requirements –Honesty, trust –Real team work

West Impl 13© The Delos Partnership 2005 Stage Three - Knowledge AUDITAUDIT Workshop For Key people Organise and Create Teams Understand And prepare Workshop(s) For Team(s) Develop and Extend Pilot and Run 7 stage process Extend to whole Business and Refine Implement Month 1Month 2Month 3 Knowledge

West Impl 14© The Delos Partnership 2005 Cascade education Process Owners INNOVATIONINNOVATION CUSTOMERSCUSTOMERS PRIORITyPRIORITy Process Users SENIOR TEAM EXTERNAL EXPERTISE SUPPORTSUPPORT SUPPLIERSSUPPLIERS

West Impl 15© The Delos Partnership 2005 Internal Education and Workshop(s) Objectives –Get everyone to the same level of understanding It is a process not a meeting It is strategic not short term firefighting It needs honesty, trust etc. –Design the process steps Innovation Review Demand Review Supply Review Support Review and Priority Review Senior Management Review –Review links to existing activities –Review culture issues and measures

West Impl 16© The Delos Partnership 2005 Framework for Process Review Process Inputs Outputs People Behaviours/Culture Measures/Performance Indicators

West Impl 17© The Delos Partnership 2005 Framework for Process Review Link to other Processes Measures Desired Culture People OutputsPurposeInputs Process

West Impl 18© The Delos Partnership 2005 Internal Education and Training Objectives –Everyone understands the new process –Clarify process and culture changes –Training in use of systems –Understanding of Performance Measures –Clarify links between functions and process steps Outcome –Understanding of all aspects of Integrated Enterprise Leadership –Readiness for new ways of working

West Impl 19© The Delos Partnership 2005 Internal Education Carried out by Process Owner Supported by expert as necessary Explain to everybody why Engage in new ways of working –Formality –Agendas –Agreed timetable Reinforce culture Explain Performance Measures

West Impl 20© The Delos Partnership 2005 Stage Four - Practice AUDITAUDIT Workshop For Key people Organise and Create Teams Understand And prepare Workshop(s) For Team(s) Develop and Extend Pilot and Run 7 stage process Extend to whole Business and Refine Implement Month 1Month 2Month 3 Practice

West Impl 21© The Delos Partnership 2005 Pilot the process Choose one product family or business area Run through the full seven step process for one or two months Review success of each step and refine/improve Review impact on rollout Finalise software and data requirements Build enthusiasm for the ideas –Rolling business plan –Long term view not fire fighting –Improved communication –Fewer ad hoc meetings

West Impl 22© The Delos Partnership 2005 Extend the process to the whole business Make Integrated Enterprise Leadership the business process Move to new process as soon as possible –For all product families –For all business units –For all functions/processes Avoid the permanent project syndrome

West Impl 23© The Delos Partnership 2005 Step Five - Competency AUDITAUDIT Workshop For Key people Organise and Create Teams Understand And prepare Workshop(s) For Team(s) Develop and Extend Pilot and Run 7 stage process Extend to whole Business and Refine Implement Month 1Month 2Month 3 Prepare Budget from IEL Process Competency

West Impl 24© The Delos Partnership 2005 Critical Success Factors Leadership from the top Simplicity of approach Education led by example Early Pilot and rapid roll out –Delay is the enemy of success Enthusiasm, dedication and knowledge of the Executive Sponsor and Project Leader Avoiding initiatives

West Impl 25© The Delos Partnership 2005 Senior Management’s role Show real enthusiasm Lead the knowledge transfer process Insist on everyone's participation Make sure clear decisions are made and immediately communicated Ensure that all the right participants attend Persevere with desire for integration Be a participant, not a spectator

West Impl 26© The Delos Partnership 2005 Integrated Enterprise Leadership Success depends on: 1.Commitment from the Top Team 2.Everyone’s understanding It is organised common sense It is a process not a meeting 3. Preparation of the process through workshops 4. Desire to make it work