Cultural & Strategic Alignment

Cultural & Strategic Alignment Steven Boyd Director of Continuous Improvement Tokheim Global Adam Buckley Leadership & Enterprise Excellence Coach Excellence Through Design 2

2017 Continuous Improvement Beyond the Factory Floor Steven BOYD Director Continuous Improvement

Leadership Culture Strategy Where is DMC compared to a SHINGO prize winner? Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Benchmark USS Feb 2016 Culture is DESIGNED the method of linking human expectations to business expectations (strategy tree), good method to get all staff to understand form this behavioral standards can be maintained. Learning cycle is now Value Driven this replaced goal driven the message is to focus on values this focus really personalizes the understanding and decision making process. Choices encourage a method of interactions that let the team make choices. Team choices are evaluated against values. Team Leader non value adding focus on developing people. (1 TL for every 5-10 ops) Every 2 Hour 5min Huddle good way to share / help each another. R&D Cell - now separated from customer order manufacturing no conflict test time reduced from 28 days to 1 day Eng feedback loop significantly improved. 7

Leadership Culture - Strategy Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Sum Of Our Choices = Result 8

Leadership Culture - Strategy Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 9

Leadership Culture - Strategy Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Next Steps Q2/Q3-2017 Evaluate current reality Define the GAP Create improvement Action Plan SHINGO Assessment tool will be used 10

DFS Example of DMC CI Strategy for 2016 1. Define current state and set. 2. For each DOVER CI Theme agree next step improvement actions. 3. Create project plan. 4. Deploy. 5. Check. 6. Act. 11

Align the Entire Organization to Win with Customers Deploy Customer Values to win More Business! The sum of our choices equals our results Stick with CI and Customers will Stick with You! Forever change to deliver values faster than competitors Everyone a Problem Solver! Measurable and actionable connections at every worksite 12

Continuous Improvement for Leadership Standard Work DMC Plan Work ON the Business not IN the Business July 17 Supervisor / Team Leader Aug 17 Report Site Wide Rating by individual Sep 17 Coach and mentor team Oct 17 Leadership Recognition Day June 17 Functional Leadership Team 13

CI Strategy how to work ON the business not in the Business Material Flow Save Space and Time, reduce Inventory resulting in more flow for less Cost. Product Flow Save Space and Time, reduce cycle time resulting in more flow for less Cost. Information Flow Support Functions Reduce steps and Time, reduce hand offs resulting in more flow for less Cost. Pull Systems Standard Work 5S Pull Systems Standard Work 5S Pull Systems Standard Work 5S Material Point of Use Evaluation Material Replenishment for Front Feed Lean Work Station Cell Design Paperless Processing Voice of Customer Visualized Returnable Packaging One Piece Flow Material Presented FIT for PICK KANBAN Plan for Every Part Vendor Managed Inventory Frequency Tables 1-31 Boards Mistake Proofing Value Stream Mapping Kaizens Visual Management Systems Right Data Right Place Right Time Transactional Process Waste Reduction High Frequency / Low Qty Material Replenishment Paperless Transactions SMED OEE TPM 14

Leadership Culture - Strategy Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Plant Wide 2015 Plant Wide 2016 Evolution 2017 15

Leadership Culture - Strategy Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Leadership Standard Work High Level of Emotional Intelligence Training to Leadership Team - started Dec 2015 Personal Strength Scope Team Strength Scope 4 steps to Praise Johari Window Myers-Briggs Type Indicator Organisational health Model Thomas-Kilmann Conflict Mode 1 to 1 contracting Lencioni s Five Dysfunctions of a Team Goose Analogy Behaviour Quadrants Speed Dating Process of Transition John Fisher,2013 16

SOLVE What is a Problem Plan Do Check Deployed & Visualised 5WHY & Ishikawa Act Problem Solving Template 64 Members 18+ Active A3 s DOVER A3 Training Visualised on Deployment Boards Finding it Difficult! 17

DFS CI Plant/Process Level Audit/Action Plan Detail 1. Each Plant/Process Leader Conducts initial audit (with CI Lead) and reports findings. 2. Create quarterly action plan. 3. Review progress Monthly 4. This CI Scorecard has been designed to work at all business levels, Plant, Direct & Indirect Function, Team. 18

DFS CI Recognition / Sharing / Benchmarking News Letter create a circumstance to encourage the practice of CI. Please encourage your team to get involved. 19

Workshop 23 rd Nov 2017 + 24 th Nov 2017 Aspiring to a Culture for Operational Excellence Achieve the SHINGO Standard 2019 Report Out by Steven BOYD Director Continuous Improvement

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 21

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Where we are High Level Plan Phase 1 Q1-Q2 2017 Benchmarking Q2 2017 Share our Vision Q3 2017 Shingo Assessment Q4 2017 Shingo Assessment Analysis Q4 2017 Create Road Map + Action Plan for 2018 Our Partner Feb 16 US Synthetic Jan 17 Off site visit to JLR May 17 Off site visit to Shingo Award Winner - Newsprinters Recap what we have learned Review Shingo Model & Strategy Tree Activity Select a System and evaluate Share our Vision One to One Sessions 3 Day Shingo Site Assessment Prepare Site Conduct Assessment Complete Report Out Share Report Out Site Wide Review Gap Analysis Major Findings Discuss the Findings Create High Level Road Map Keep the main thing the main thing - Select Key Action Zones Reflect / Discuss our Assessment Findings and first draft high level action plan Define owners Split into groups and create detailed action plan PDCA Visualize Improvement Plan In DMC Share improvement plan with all staff 22

Leadership Culture Strategy Target achieve the SHINGO Standard Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Where we are? 23

Behaviours to Systems 24

Leadership Culture Strategy Target achieve the SHINGO Standard Workshop Agenda Standard Work Planning / Scheduling Behaviours to Systems Leader Standard Work Problem Solving Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Cellular Design Idea Sharing Pull People Development Performance Management Value Stream Visual Management Suggestions / Ideas Communication / Sharing HSE Voice of Customer Suggestions for improvements sorted into systems Leadership Training Award & Recognition Coaching Strategy Deployment Go To Gemba 25

Leadership Culture Strategy Target achieve the SHINGO Standard Workshop Agenda Road Map Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement Major Improvement Actions Strategy Development System - Provide clarity to the organisation with respect to its long term aspirations and provide the why answer people are seeking through Vision and Strategy. Leader of A3 Ken Scobie. Strategy Deployment System - Introduce Strategy Deployment so each person in the organisation understands their role in achieving the strategic goals and so that processes can be aligned. Leader of A3 Ken Scobie. Performance Management System - Introduce formal performance management directly aligned to the strategic and operational objectives of the DMC based upon a coaching philosophy. Leader of A3 Karen Webster. People Development System - Develop an organisational skills and competency framework to make organisational development needs visible aligned to strategic and operational goals. Leader of A3 Karen Webster. Standard Work System - While stability is a necessary precondition for creating flow and improvement, standardisation builds control into the process itself. Standardisation is the supporting principle behind maintaining improvement, rather than springing back to preceding practices and results. Leader of A3 Ross Melville. 26

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 27

Strategy Definition Workshop 11 th 12 th 19 th Jan 2018 Aspiring to a Culture for Operational Excellence Achieve the SHINGO Standard 2019 Report Out by Steven BOYD Director Continuous Improvement

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 29

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 31

Control your own destiny or someone else will. Jack Welch CEO General Electric Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. Jack Welch CEO General Electric 32 EXCELLENCE THROUGH DESIGN

THE IMPORTANCE OF VISION & MISSION If an organisation cannot define it's "reason for existing (Mission) or "where it is going" (Vision), how can it align people, processes, products or services towards a successful future? 33 EXCELLENCE THROUGH DESIGN

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 34

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 35

THE MAIN THING IS TO KEEP THE MAIN THING THE MAIN THING. - STEPHEN COVEY VISION Our aspiration of what we want to achieve GOALS Quantitative Targets: Progress towards our vision STRATEGIC INITIATIVES What we will do to achieve the goals MEASURES Our ongoing measures of success Are we achieving our goals? 36 EXCELLENCE THROUGH DESIGN

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 37

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 38

Leadership Culture Strategy Target achieve the SHINGO Standard 2019 Aligning to a Vision Leading Change in Your Organization Pacing Continuous Improvement 39

OWN THE GAP 40 EXCELLENCE THROUGH DESIGN

Traditional Leadership Mind-set We will not reach the change we seek, one leader at a time NEW Collective Leadership Mind-set Leadership can be explored as a social process - something that happens between people. As such it does not depend on one person, but on how people act together to make sense of the situations that face them. 42 EXCELLENCE THROUGH DESIGN

As individuals there is NO compromise As a collective leadership team there will ALWAYS be compromise (SYNERGY: The whole is always greater than the sum of its parts) 43 EXCELLENCE THROUGH DESIGN

44 EXCELLENCE THROUGH DESIGN

MISSION WHO WE ARE VISION FOCUS GOALS People are at the heart of everything we do NURTURE, FUN, INTEGRITY, RESPECT, SIMPLICITY, TENACITY By 2020, we aim to drastically reduce CO2 emissions by 25% and create intelligent, connected vehicles that adapt, assist and enhance the driving experience. SAFETY QUALITY COST DELIVERY What specific targets should be delivered? Financial and Operational Performance targets and goals Phasing over the period e.g 2018, 2019, 2020 OUR INTENT What will be done? What are we trying to achieve? PROJECTS How do we close the gap? Sequential versus parallel e.g. interdependencies Vision Critical Projects MEASURES 46 EXCELLENCE THROUGH DESIGN 2018 What is our current position? Leading & lagging indicators!

Setting the right metrics drive the right behaviour 47

Leading versus Lagging Measures LEADING Can be measured without an incident, accident Are useful in being able to predict or prevent future events. Most often linked to processes Are related to behaviours Ability to move the dial LAGGING Are indicators that show the number and or severity of events which have occurred. Most often define the goal. Are the consequence Safety/health meetings Employee training No of audits/inspections No of hazards removed Risk assessments PPE compliance Near-miss incidents? Lost time accidents Total lost work days Restricted work days Injuries/Illness rate Setting the right metrics drive the right behaviour Leading metrics enable employees to uncover problems earlier 48

MISSION WHO WE ARE VISION FOCUS GOALS People are at the heart of everything we do NURTURE, FUN, INTEGRITY, RESPECT, SIMPLICITY, TENACITY By 2020, we aim to drastically reduce CO2 emissions by 25% and create intelligent, connected vehicles that adapt, assist and enhance the driving experience. SAFETY QUALITY COST DELIVERY What specific targets should be delivered? Financial and Operational Performance targets and goals Phasing over the period e.g 2018, 2019, 2020 OUR INTENT What will be done? What are we trying to achieve? PROJECTS How do we close the gap? Sequential versus parallel e.g. interdependencies Vision Critical Projects MEASURES 49 EXCELLENCE THROUGH DESIGN 2018 What is our current position? Leading & lagging indicators! What progress are we making? Are we closing the gap?

ALIGNMENT LEADERSHIP SYSTEMS POLICIES/RULES STRUCTURE TEAMS INDIVIDUALS ROLE MODELS LEAD THE WAY DESIGN/REDESIGN ENABLERS VALUE FOCUS EFFECTIVE DESIGN CAPABILITY GAP CLOSURE STRATEGIC PROJECTS DAILY PERFORMANCE MANAGEMENT SYSTEM CONTINUOUS IMPROVEMENT PERFORMANCE MANAGEMENT SYSTEM 50 EXCELLENCE THROUGH DESIGN

BELIEFS AND SYSTEMS DRIVE BEHAVIOUR STRUCTURE SYSTEMS POLICIES THE SYSTEMS AND STRUCTURES WE WORK WITHIN.. DRIVE OUR BEHAVIOURS 52