WCP Wshop Ppt for MPC-Penang

The Ladders The Ladders toto

World Class World Class PerformancePerformance

Originally Developed by:Professor David Drennan,UKPromoted in Malaysia by:Ramli Abu Hassan – DPS.

WELCOME Everyone !

Day 1

Our Agenda:

Day 1

•What is World Class ?

•What are the World Class Companies in the 21st Century?

•What are the Malaysia Class CompaniesWorld Class

•About the 12 Ladders and their 5 Levels

Day 2

•Continue the 12 Ladders and their 5 Levels

•The World Class Scorecard-Where are YOU Now ?

•The Team Objectives Meeting (TOM) Approach towards World Class Performance.

•YOUR Action Plan towards World Class Performance

Background on this World Class Performance

subject introduction in Malaysia.

Seminar:6thDec,2005

W/Shop:7thDec,2005

Clients:

Women’s Institute of Management,Tahan Insurance,Advanced Micro Devices (AMD),MPC,MICCI,others..

Background of Diversified Promotion & Service Sdn.Bhd. or (DPS) in short.

Website://uk.groups.yahoo.com/group/dpsworldclass YouTube:www.youtube.com/pramleeelvis

Mission Statement:Unleashing the hidden

talents of human capital through the right learning

and best practices.

Trading Business

Sports Business

Training & Consultancy Business

Acknowledgements:

In preparation of this Training Materials,we have made references to many sources like books,magazines,websites,search engines,publications,research papers,videos,photographs and others.We wish to express our sincere appreciation and gratitude to all the above persons,organisations and all concerned or involved.

For enquiries or details,please contact Ramli Abu Hassan at email:[email protected] or [email protected].

Acknowledgements to ourQuality Gurus’:(Ramli’s Collectionsof Autographs.)

Philip B.Crosby

David Drennan

Masaaki Imai

Kaoru Ishikawa

•What is World Class ?

Definition:

“being able to compete with the best in the world at what you do.” (David Drennan – 1999)

Definition:World Class Quality

“standard of excellence,best of the best” (Malaysia Productivity Corporation -2001)

The Ladders to World Class Performance1 Aligning Management Objectives2 Customer Focus3 Organizing the Workplace4 Visible Measurement Systems5 Managing For Quality6 Eliminating Waste7 B. O. P.'s and Continuous Improvement8 Teamwork9 Staff Empowerment and

Involvement10 Rewards and Recognition11 Purposeful Communications12 Continuous Learning

Please identify your Focus Ladders as we move along in this class?

What is World Class ?Definition:“one of the best in the world” (Macmillan English Dictionary-2002)

Definition:“is a play on words suggesting both the need to meet the highest standards anywhere in order to compete and the growth of a social class defined by its ability to command resources and operate beyond borders and across wide territories.” (Rosabeth Moss Kanter-1995)

What are the World Class Companies in this 21st Century?

For our 2 day Workshop sessions,we refer examples to the following World Class Companies (selected only):Ranking shown from Fortune 2006 Global 500-The World’s Largest Corporations.

•Exxon Mobil (USA) No.1

•Motorola (USA) No.152

•Matsushita Electric Industrial Ltd (Japan) No.47

•INTEL (USA) No.144

•Microsoft (USA) No.140

•Walt Disney (USA) No.180

•British Aerospace Industries (UK)-reference

•IBM (USA) No.29

•Petronas (Malaysia) No.120

•Toyota Motor (Japan) No.8

•Ritz Carlton Hotels (USA)-reference

•Nordstrom (USA)-reference

•Quad Graphics (USA)-reference

What’s Good Being World Class?

YOU are now one of the best companies in the World.

Your Brand is known globally and respected. Others want to benchmark with Your

Performance. Customers know YOU and become more

loyal. Talented People want to work with YOU.

Street Smart,Book Smart,Business Leaders,Government Leaders,Management Gurus’-Who are the best to learn from ?

MOTOROLA –origin from USAWorld Class Performances:Ranked No.152 in the World.

•Six Sigma Quality–A term coined by Motorola to emphasise the continuous reduction of process variation.For a normal distribution,the probability that a value fall within +/- 6 sigma of the mean (u) is 99.99966%.If +/- 6 sigma falls inside the specification limits,then there are only 3.4 defects per million parts produced from the designated process.Six Sigma Quality is now widely adopted all over the World by many World Class Companies especially from General Electric (GE)

•Six Sigma Project –from 1982 to 1992 (almost 10 years to achieved targeted 6 Sigma Level).From “Quality that Stinks” to “Quality that is almost Zero Defect”

•Ranked No.152 in Fortune 2006 Global 500-The World’s Largest Corporation.

•Ranked No.2 in Category-Network,other Communications Equipment –Fortune 2006 Global 500-World’s Largest Corporations

•2005 Revenues=USD 36,843,000,000 (Ranked No.152 in the World)

•2005 Profits =USD4,578,000,000 (Ranked No.82 in the World)

•2005 Stock Holders’Equity=USD16,673,000,000 (Ranked No.152 in the World)

•2005 Employees=69,000 employees (Ranked No.216 in the World)

Hence the widely accepted definition of a six sigma process is one that produces 3.4 defective parts per million opportunities (DPMO).This is based on the fact that a process that is normally distributed will have 3.4 parts per million beyond a point that is 4.5 standard deviations above or below the mean (one-sided Capability Study).So the 3.4 DPMO of a "Six Sigma" process in fact corresponds to 4.5 sigmas, namely 6 sigmas minus the 1.5 sigma shift introduced to account for long-term variation. This is designed to prevent overestimation of real-life process capability.

Caution:Noted Quality expert Joseph Juran has criticized Six Sigma as "a basic version of quality improvement", stating that “ there is nothing new there."

Why 6 Sigma Quality is so Popular or a Fad? 6 sigma = Expected Yield (99.9997%)

6 sigma = Expected Defect (0.0003%)

ie. Almost 3 defects per million production qty.6 sigma =Almost ZERO DEFECT !

Why is it so important to Motorola and other Businesses?

If 0.5 % allowable defect rate,it will mean:

5 defects in 1000 production qty

50 defects in 10,000 production qty

500 defects in 100,000 production qty

5000 defects in 1,000,000 production qty

DEFECTS=DID NOT DO RIGHT FIRST TIME

DEFECTS=WASTES=MONEY=REDUCE PROFITS OR ADD MORE COSTS TO BZNS.

Benefits of the ZD Project in your Company / Organisation.

• Petronas –Origin from MalaysiaWorld Class Performances: Ranked No.120 in the World.

• Ranked No.120 in Fortune 2006 Global 500-The World’s Largest Corporations.

•Ranked No.20-under Category:Petroleum Refining in Fortune 2006 Global 500-The World’s Largest Corporations.

•2005 Revenues=USD44,280,000,000 (Ranked No.120 in the World)

•2005 Profits=USD11,565,000,000 (Ranked No.15 in the World)

•2005 Assets=USD73,103,600,000 (Ranked No.167 in the World)

•2005 Stock Holder’Equity=USD42,346,800,000 (Ranked No.43 in the World)


Petronas –Origin from MalaysiaWorld Class Performances:

Petronas –Origin from MalaysiaWorld Class Performances:

1.Petronas have contributed a lot to Malaysia’s Economy since 17th August,1974 (establishment)

2.Petronas have operations world wide-almost over 30 countries with a workforce of over 30,000 people

3.Petronas also contributed a lot through her CSR initiatives like education,sports,social events and environmental protection activities.

• DISNEY (Walt)–Origin from USAWorld Class Performances:Ranked No.180 in the World.

• No.180 –Fortune 2006 Global 500-The World’s Largest Corporations

•2005 Revenues=USD 31,944,000,000 (Ranked No.180 in the World)

•2005 Profits=USD 2,533,000,000 (Ranked No.168 in the World)

•2005 Assets=USD 53,158,000,000 (Ranked No.198 in the World)

•2005 Stock Holders’Equity=USD26,210,000,000 (Ranked No.97 in the World)


•Ranked No.2 under Category-Entertainment in the World

DISNEY (Walt)–Origin from USAWorld Class Performances:

Since its founding in 1923, The Walt Disney Company and it's affiliated

companies have remained faithful to their commitment to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. Today, Disney is

divided into four major business segments: Studio Entertainment , Parks and Resorts, Consumer Products, and Media Networks. Each segment consists of integrated, well-connected businesses that operate in concert to maximize exposure and growth worldwide.

Exxon Mobil–Origin from USAWorld Class Performances:Ranked No.1 in the World.

guiding principlesExxon Mobil Corporation is committed to being the

world's premier petroleum and petrochemical company. To that end, we must continuously achieve superior financial and

operating results while simultaneously adhering to high ethical standards.

The following principles guide our relationships with our shareholders, customers, employees, and communities:

We aspire to achieve our goals by flawlessly executing our business plans and by adhering to

these guiding principles and the foundation policies that follow.

Matsushita Electric Industrial Ltd.–Origin from JapanWorld Class Performances:Ranked No.47 in the World.

Video Presentations – All About World Class Companies (Their Culture ,Their Passion ,Their Values,Their Successes,Their People,Their Leadership,Their Best Practices, etc..)

Co:Proctor & Gamble

Co: Ritz Carlton

Co:SatyamGovt :US Army

Co:Scana

Co: Jet Blue

• What is Malaysia Class ?Definition:

“being able to compete with the best in Malaysia at what you do” (Ramli Abu Hassan -2008)

Definition:

““one of the best in Malaysia” (Ramli Abu Hassan-2008)

Malaysia Quality Class-The 7 Excellence Indicators by MPC. Leadership Planning Information HR Management Process Improvement Customer Relation and Management Business Performance

No. Malaysia Quality Class-Excellence Indicators by MPC

1.0 Leadership

1.1 Sr.Exec Leadership

1.2 Organisation Culture

1.3 Responsibility to Community and the Environment

2.0 Planning

2.1 Strategy Dev’mt and Deployment

3.0 Information

3.1 Mgmt of Information

3.2 Comparison and Benchmarking

4.0 HR Mgmt

4.1 Human

4.2 Employee Involvement and Commitment

4.3 Employee Education,Training and Dev’mt

4.4 Employee Health and Satisfaction

4.5 Employee Performance and Recoqnition

No. Malaysia Quality Class-Excellence Indicators by MPC

5.0 Process Improvement

5.1 Innovation Process

5.2 Process Mgmt and Improvement

5.3 Supplier and Partnering Processes

6.0 Customer Relation and Mgmt

6.1 Customer Requirement

6.2 Customer Relationship

6.3 Customer Satisfaction

7.0 Business Performance

7.1 Customer Results

7.2 Financial and Mkt Results

7.3 People Results

7.4 Operational Results

What are Malaysia Class Companies?

Based on Market Capitalisation: (to name a few,not in any particular order)

•Malayan Banking Berhad

•IOI Corporation Berhad

•Genting Berhad

•Telekom Malaysia Berhad

•Tenaga Nasional Berhad

•Sime Darby Berhad

•British American Tobacco (M) Berhad

•Public Bank Berhad

•MISC Berhad

•Petronas Gas Berhad

•PPB Group Berhad

•YTL Corporation Berhad

•Malaysia Airlines Berhad

•Bumiputra Commerce Holdings Berhad

•Kuala Lumpur Kepong Berhad

Public Bank Berhad

WORLD / ASIA / ASEAN / Malaysia Class Performances:

The Public Bank Way-Ramli’s analysis.

Focus on Customer Satisfaction Focus on Innovations-new banking

products eg.Islamic Banking,Unit Trusts,Overseas Operations

Focus on Prudent Financial Mgmt-Custodian of Public Funds

IOI Corporation Berhad

WORLD/ASIA/Malaysia Class Performances:

Corporate Milestones

YEAR MONTH MILESTONES

January IOI once again won the Asiamoneyâ€™s Best Managed Companies Award in Malaysia based on its sound management and good corporate vision.

April IOI Group received an award for being voted among the top 10 companies in the country under The Wall Street Journal Asia's (WSJA) annual survey of Asia's 200 most admired companies in 2006.

IOI Corporation has been named as one of the best companies in Malaysia, in terms of Corporate Governance in The Asset Magazine's annual Corporate Governance Ranking 2007.

June IOI won Finance Asiaâ€™s Best Managed Company Award 2007.

Datoâ€™ Yeo How received the Best CFO award. IOI also won 3rd place under the category of Best

Corporate Governance and was recognised for Most Committed to Consistent Good Dividends (9th place) and Best Investor Relations (8th place).

September IOI Corporation was the only Malaysian firm that made it to the Forbes Asia Fabulous 50 list.

2007

November Prime Minister Datoâ€™ Seri Abdullah Ahmad Badawi officiated the S.J.K. (C) Ladang Harcroft, Puchong which was financed by Tan Sri Datoâ€™ Lee Shin Cheng.

The IOI Way-Ramli’s analysis

Dynamic Leadership + Teamwork Diversified Businesses-

plantations,property developers,etc.. Enjoying the economic boom-high

prices for Palm Oil,now!

Malaysia Airlines,

World/ASIA/Malaysia Class Performances:

Malaysia Airlines, the national carrier of Malaysia, is recognised as one of Asia's largest, flying more than 48,000 passengers to some 100 destinations across 6 continents everyday. The airline holds a lengthy record of service and best practices excellence, having received more than 100 awards in the last 10 years including Best Cabin Staff Award successively from 2001 to 2007 (Skytrax) and Economy Class Onboard Service Excellence (Skytrax). It is also one of only 6 airlines worldwide to be accredited a 5-Star Airline by Skytrax, an accomplishment it has achieved for 3 consecutive years.

01

1b

End ‘05

Apr ‘06

Critical

Level

RM600m

Cash Crisis02

-1.3b

-1.7b

2005

(9months)

2006

Full Year

Profit Crisis

We will solve our own problem

(PM: “No bail out”)

2005: -RM1.3b loss

BTP 1 Target

2006: -RM 620m

2007: +RM 50m

2008: +RM 500m

COMMERCIAL

OPERATION

FINANCE

Flying to Win Customers

Financing and Aligning the Business on P&L

Unleashing Talents and Capabilities

Winning Coalitions

Mastering Operational Excellence

MISSION: To be a consistently profitable airline

STRATEGY:Business Transformation

PEOPLE

STAKEHOLDERS

Transforming the company “The MAS Way”VISION: To be the World’s Five Star Value Carrier

The MAS Way:Business Turnaround Plan

The MAS Way provides the framework for our Business Turnaround Plan:

1. Flying to win customers—we will reconfigure our network and our productportfolio to ensure that we have the tools and capabilities to be a top-tier

player in each of the markets we serve, or we will leave.

2. Mastering operational excellence—we will build a unique operating capability

unmatched by our peers. This capability will be reflected not only in improvedoperational reliability, but also in higher productivity and greater precision in

everything that we do.

3. Financing and aligning the business on P&L—we will relentlessly increase profits

with the support of a world-class Finance function that ensures true financialaccountability, transparency and performance orientation in our business.

The MAS Way:Business Turnaround Plan

The MAS Way provides the framework for our Business Turnaround Plan:

4. Unleashing talents and capabilities—we are committed to our people. Westrongly believe that the MAS employees and managers have both the passion

and talent to achieve whatever goals we set for ourselves. We will worktogether with our employees to ensure that they have a working environment

in which their talents can thrive.

5. Winning coalitions—we know that we cannot achieve our goals alone. MASneeds the resolute support of the Government, its employees, managers,

customers, suppliers, agents and investors. It is only with the support of thesestakeholders that MAS can have the mandate it needs to make the changes that

will ensure our long-term success.This Business Turnaround Plan has been carefully sequenced over the next 3 years to deliver cash, profitability and growth—in that order of intensity and focus. At the same time, we will continue to foster an environment that

allows the talents of our people to be unleashed and to flourish.

Record profits, record turnaround!Highest profits in 60-year history

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RM 320m RM 375m

RM 2.2b

RM851m2007 Profit

Profit is driven by operational improvements (not one-off gains)

2005 losses

One-off loss(E&M provision)

One-off gain(Sale of aircraft and

buildings)

Operational Improvement

Lower cost

Competitive fares

Get more customers, more revenue

Grow network, build capacity

Profitable Growth

5 Star

The Virtuous Cycle of Profitable Growth

We relentlessly reduce cost over the years

20062007

2008

-1200

-1000

-800

-600

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-200

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-RM665m-RM738m

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LANDING & HANDLINGLANDING & HANDLING

AGENTS COMMISSIONAGENTS COMMISSIONFUELFUEL MANPOWERMANPOWER MAINTENANCEMAINTENANCE

ADVERTISING& SPONSORSHIPADVERTISING& SPONSORSHIP

MEAL WASTAGEMEAL WASTAGE

CONTRACTS &PROCUREMENTCONTRACTS &PROCUREMENT

The 6 Principles Of Transformational Leadership1.The Game of The Impossible

2.P&L Anchorage

3.Discipline of Action

4.Situational Leadership

5.Winning Coalitions

6. Divine Intervention

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It’s tough but it’s worthwhile !

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Baseline NIAT:

RM700m to RM1bn

Maintain 5-Star Products & Services (MH Campaign, PSS)Maintain Highest Safety Standards

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Staircase to 2012 Base NIAT*: RM1.5bnOptimistic NIAT*: RM2-

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Genting Berhad:

WORLD /ASIA / Malaysia Class Performances

Feb 2008 International Gaming Awards 2008 Genting: Best Casino Operator in Asia International Gaming Awards

Jan 2008 South East Asia Deal Awards 2007 Genting International Plc (Rights Issue of S$2.2 billion): Best Secondary

Offering in South East Asia Alpha South East AsiaNov 2007 Hospitality Asia Platinum Awards 2007-2008

Genting Highlands Resort: Tourist Attraction of the Year (Genting Theme Park)

Genting Highlands Resort: Family Resort of The Year (Genting Hotel)Genting Highlands Resort: Specialty Restaurant of the Year (Ming Ren,

Highlands Hotel)Genting Highlands Resort: Chinese Cuisine Chef of the Year (Chef Chan Kong

Tung, Club Elite) World Publishing Asia Malaysia’s Most Valuable Brands 2007

Genting: Ranked No 4 Association of Accredited Advertising Agents Malaysia

World Travel Awards 2007Genting Highlands Resort: Asia’s Leading Casino Resort World Travel

Awards

Genting Berhad:

WORLD / ASIA / Malaysia Class Performances

Oct 2007 TTG Travel Awards 2007Genting Highlands Resort: Best Resort

Star Cruises: Best Cruise Operator TTG Asia MediaOct 2007 Winner of FIABCI Malaysia Property Award 2007

Genting Highlands Resort: Resort Development category International Real Estate Federation (FIABCI) Malaysia

June 2007 TravelWeekly (Asia) Industry Awards 2007Star Cruises: Best Cruise Operator TravelWeekly

April 2007 PRC Consumer’s Most Favourable Hong Kong Brands 2007

Star Cruises: Integrated Entertainment category China Enterprise Reputation and Credibility Association (Overseas) Limited

Jan 2007 The BrandLaureate Awards 2006-07Resorts World Bhd and Star Cruises: The Best Brands In Leisure And

Hospitality Asia Pacific Brands Foundations (APBF)

The Genting Way-Ramli’s analysis

Build a Global Brand successfully Round the clock activities at Resorts-

land and sea properties Good Management Team Leader possess Vision,Passion and

Action all the time. Building something before anyone had

visualized it !

Success Factors ++ are:(Ramli’s thoughts..) Leadership-J.Welch,K.Matsushita,HP Teh,.. People-Maybank,Genting,Toyota,JetBlue,. Culture-Disney,Panasonic,Microsoft,… Innovations-3M,Air Asia,Apple,… Global & Local Businesses-Exxon-

Mobil,Petronas,WalMart,… Tools & Techniques-Motorola(6 Sigma

Quality),Toyota(Lean Manufacturing-Visual Mgmt)Genting-RWB(Quality Round the Clock),Mamak Restaurants(fast,friendly,food choices)...

5 things Leaders’ Must Do: Help a group establish some sensible

direction.eg.Jack Welch@GE-Be No.1 or No.2 in the business,that’s it! Robert Kuok-Kerry Group

Great Leaders are all good at getting relevant partners aligned with,buying into and believing in. eg.Tony Fernandes@Air Asia in establishing LCCT-Sepang.Mokhtar Bukhairi-Al-Bukhairi Foundation.

The ability to create conditions that energize and inspire people.eg.Idris Jala@”MAS Way”BTP1&BTP2,Ananda Krishnan-Maxis etc.

A knack for allocating capital-eg.Francis Yeoh@YTL-REITs’,Properties,IPP,Azman Hashim-AM Bank.

Fall in love-passion,commitment, ferocity..eg.Nazir Razak@CIMB-Global Banker,Lim Kok Thay-Genting Berhad.

“Your Customers’ are more concerned of You fulfilling their requirements whenever they want it,to them that’s World Class !”

David Drennan.

Striving to Improve

Then

•tinny

•cheap

•unreliable

•imitation

Striving to Improve

Then Now

•tinny

•cheap

•unreliable

•imitation

•good quality

•value for money

•reliable

•innovative

$ Salesp. empl.

$ Profitp. empl.

Profit % on sales

Returnon assets

402,458646,228519,838

238,387440,013

169,405257,138303,366

373,040364,095

2,356,9291,063,864

88,423 143,298

22,529

18,17810,069

6,25110,33822,420

80,95092,269

159,500276,014

22.022.2

4.3

7.62.3

3.64.07.4

21.725.3

6.725.9

15.58.85.0

4.41.7

8.56.4

13.4

18.713.7

9.414.8

2004

• Intel• Microsoft• Motorola

• Disney• Sony

• Wal-Mart• Tesco• Marks & Spencer

• Glaxo Smith Kline• Merck

• Royal Dutch Shell• Petronas

$ Salesp. empl.

$ Profitp. empl.

Profit % on sales

Returnon assets

418,646628,965255,628

195,016316,566

146,323225,002253,196

222,190525,104

1,097,562803,440

104,188 247,961

6,752

10,8335,768

4,7168,0687,993

47,39494,550

89,416

167,043

24.939.4

2.6

5.51.8

3.23.63.2

21.318.0

8.120.7

16.720.9

2.2

3.01.6

7.66.93.7

17.416.5

7.59.7

1999

• Intel• Microsoft• Motorola

• Disney• Sony

• Wal-Mart• Tesco• Marks & Spencer

• Glaxo Smith Kline• Merck

• Royal Dutch Shell• Petronas

• Product quality

• Value for money

• Reliability

• Good service

• Innovation

What Customers Value

Market Performance• Market share• Product innovation• Sales growth

Customers• Order to delivery time / waiting time• Right first time : service and product• On time in full (O.T.I.F.)• Customer complaints• Speed of problem resolution• Phone response time• Letter response time• Customer survey scores

Financial Performance• Return on capital / assets• Profit percentage on sales• Investor Returns• Share price• Unit costs

Performance Measures

Employees• Sales per employee• Profit per employee• Standard hours vs. attended hours• Absence• Staff turnover• Employee survey scores

Internal Efficiency• Sales per square foot• Profit per square foot• Added value time vs. process cycle time• Standard hours vs. attended hours• Stock turns• Overall machine efficiency• Costs of quality

inspection costs and delays; rework;scrap; customer returns; warranty

costs penalty costs; recalls• Time to market

Performance Measures

The Ladders to World Class Performance1 Aligning Management Objectives2 Customer Focus3 Organizing the Workplace4 Visible Measurement Systems5 Managing For Quality6 Eliminating Waste7 B. O. P.'s and Continuous Improvement8 Teamwork9 Staff Empowerment and

Involvement10 Rewards and Recognition11 Purposeful Communications12 Continuous Learning

Most Admired Companies’Award(other attributes also apply)

1 Innovativeness2 Quality of Management3 Employee Talent4 Quality of Products / Services5 Long Term Investment Value6 Financial Soundness7 Social Responsibility8 Use of Corporate Assets

There is one very important aspect to our direct-selling model of doing business. The structural advantages of what we created have been so incredible, they masked almost any mistake we could make. And we could make a lot of them.

Michael Dell

Have YOU selected your Ladders?

Managers give orders, workers just do what they have to.Some people don’t know who their boss is.Objectives are not written; the goalposts seem to keep

moving.Managers say: We don't need objectives, we know what to

do.

Each person’s responsibilities are clearly defined. There is a well-defined organisation chart. Top management have defined their goals but junior

management are not sure what they can do about them.Objectives are written, but not well followed up.

Top management decide on their annual objectives as a team.

These are turned into more specific team objectives at each lower

level of management. Regular follow-up reviews measure progress to date.At least 80% of objectives are achieved by year end.

The company’s goals are clear and actionable by everyone.Employees all understand exactly how they can contribute.Management co-ordinate their efforts across departments.At least 90% of objectives have been achieved by year end.

Measurable objectives are agreed annually in every dept.Teamwork and co-operation is expected at every level.People work to achieve the goals even under changing

conditions. 80% of goals are achieved by mid-term, 100% by year end.

Level 1

Level 2

Level 3

Level 4

Level 5

Aligning Management Objectives

Metropolitan Police Statement of Common Purpose

• to uphold the law firmly and fairly

• to maintain public peace

• to act with honesty and integrity

• to adopt the highest standards

• to be compassionate and courteous to others

• to uphold individual rights

• to behave in a manner which is neither sexist or

racist

• to serve the public

• to be a cost-effective service

• to co-operate with and consult the community

and

other agencies in pursuing police purposes

Metropolitan Police Simple, Actionable Goals

• to reduce crime

• to make it safe for anyone to walk anywhere anytime in the UK

• to treat everyone fairly

Characteristics of Good Goals

1 Simple, easy to understand without further explanation

2 Actionable every day by everyone in the business




3 Something all management by their daily actions will be able to show their genuine commitment to





4 Will stay constant (for at least three years)






5 Will be supported by regular feedback information on performance at all levels







6 Will give opportunities for recognition and celebration of success

Rubbermaid Goals

• Sales growth of 15% per annum

• Earnings growth of 15% per annum

• 33% of sales from products introduced in the previous five years

• Enter a new product category every 18 months

Microsoft’s

Mission:“At Microsoft,our mission and values are to help people and businesses throughout the world realize their full potential.”

Slogan: “ Your Potential,Our Passion.”

Goals: Do YOU know ?

Petroliam Nasional Berhad (Petronas)

Vision: To become a “Leading Oil and Gas Multinational of Choice.”

Corporate Philosophy: To advance humanity through business by returning the value we create to our stakeholders.To contribute towards the well-being of the people and the nation.

Slogan: “Strategic Partner for Growth.”

Goals: Do YOU know?

Discussion Point

1 What are your company’s current top three goals or priorities?

2 To what extent do they meet the goals tests shown earlier?

3 What changes would you make, if any?







6 Will give opportunities for recognition and celebration of success

Employees think sales and marketing look after customers.Managers believe they are ‘professionals’ and already know

what customers want.Many managers and staff don’t think they have customers.

Everyone realises that the paying customer is the most important person in the business.

In-company, people know their customer is the next process.Customer complaints dealt with, but still seen as a nuisance.At least 80% of orders delivered to customers on time.

The company uses real survey data to measure performance.

Internal customers make contracts across departments.Written service standards established in every department.Complaints seen as opportunity to create improvements.At least 90% of orders delivered in full and on time.

Customer data discussed regularly at Board Meetings.Service standards met and exceeded across the company.Cycle time, order to delivery, reduced by 50%.At least 95% of orders delivered in full and on time.

Regular surveys and focus groups keep company ‘in touch’.Visible service improvements made year on year.Cycle time, order to delivery, reduced by 80%.Complaints under 0.5% and at an all-time low.100% of orders delivered in full and on time.

Level 1

Level 2

Level 3

Level 4

Level 5

Customer Focus

What Is A Customer (L L Bean)

• A Customer is the most important person in this office . . . whether in person, by mail or telephone

• A Customer is not dependent on us . . . we aredependent on him.

• A Customer is not an interruption to our work . . .

he is the purpose of it. We are not doing a favour by

serving him . . . he is doing us a favour by giving us the opportunity to do so.

• A Customer is not someone to argue or match wits

with. Nobody ever won an argument with a Customer.

• A Customer is a person who brings us his wants. It

is our job to handle them profitably for him and for ourselves.

The Customer Chain

Supp.Cust. Added Value

Supp.

The Customer Chain




ExternalCustomer

Supp.

The Customer Chain




ExternalCustomer

Internal Customers

Supp.

The Customer Chain




ExternalCustomer

Internal Customers

Costs

Supp.

The Customer Chain




ExternalCustomer

Internal Customers

Costs-Price

Profit

Supp.

The Customer Chain

The Key Lessons

1 You can be a customer and a supplier at the same time.Ensure your supplier gives you what you need to do a

good job.

2 Every person's task is to add value. Adding value means changing the material or

information you work with in a way which is useful to the customer.

3 The customer is the next person in the process.That is, the person who gets the result of your work.

4 Quality means fulfilling the customer’s requirements. That means giving the customer what they want, when

they want it, how they want it. Quality, therefore, is not

what we say it is, it is what the customer says it is.

5 No commercial company can stay in business unless the

customer pays you a price greater than your costs.

It is the job of every person therefore to deliver a value greater

than their costs.

Questions to Internal Customers

1 What do we do well now which you appreciate and want us to continue?

2 What could we do which would improve our service to you?

3 If we were to concentrate on just two of these items, which would be most important to you?

TARP Findings

• 96% of irritated customers do not bother to complain

• If you handle the complaint well : 95 % of little

complainers come back, 82% of large ones

• If you handle the complaint at all : 70% of the little

complainers come back, 54% of the large

• If you fail to deal with the complaint satisfactorily :

46% of the small complainers return, 19%of the large

• Of those who were irritated but did not complain, 37%

of the small complainers return, 9% of the large

• Unhappy customers tell three times as many people

about their experiences as do happy customers

• 1 customer is lost for every 50 who hear negative

word-of-mouth advertising

Scrap items, litter and tools are left scattered around.Walls, windows, floors and machines are dirty.The yard, car park and outside areas are untidy.Employees are sloppily dressed, desks and workstations are

untidy.

The floors and windows are clean. Un-needed items are disposed of. Needed items are easy to find and easy to put back.Desks are tidy: you can find whatever you want in ten

seconds.

Equipment is cleaned up - it looks like new.Pathways are clear and without obstruction. The workplace is bright (painted). Tools and materials in well marked, easily accessible places.

Daily operator inspections keep equipment clean and maintained in

good condition.Storage areas and materials so clearly labelled even new

employees can find them. Employees can retrieve what they need within three

seconds.Any filed item can be retrieved in one minute.

The workplace is habitually clean and well organised.The flow of operations is easy to see now. Storage sites and quantities are clearly marked. Staff know automatically when to re-order. Teams earn top scores even during surprise inspections.

Level 1

Level 2

Level 3

Level 4

Level 5

Organising The Workplace

Guiding Concept

• Easier

• Better

• Cheaper

• Faster

• Safer

The Organising Sequence

• Red Tagging


• Red Tagging

Discard Store Sell


• Red Tagging

• Cleaning and

Organising

The Value of Cleaning and

Organising• No work process is improved by working dirty or untidily.

• A neat and clean office or factory will tend to have higher productivity.

• A neat and clean office or factory will tend to produce fewer defects.

• A neat and clean office or factory will tend to meet deadlines better.

• A neat and clean office or factory impresses visitors.

• Working clean makes it a more pleasant place for people to work in.

• Working clean removes the risk of contamination of the product.

• Working clean is safer.

• Working clean and tidy is easier.

Making It Easier and Better

1 Eliminate wasting time searching for things.



2 Make things easy to find and to use.




3 Make things easy to put back.

Making Things Easy to Find and Put Back





4 Make materials and parts easy to pick up.

Improving Parts Pickup






5 Keep the most used items closest to the work.

Effective Working Area






5 Keep the most used items closest to the work.

6 Create a home for everything and put

everything in its home.


• Red Tagging

• Cleaning and

Organising

• Labelling


• Red Tagging

• Cleaning and

Organising

• Labelling

• Painting

Why Measurement?

• Measurement deals in facts, not hearsay

Why Measurement?


• Measurement creates importance

Why Measurement?



• Measurement urges correction and

improvement

Why Measurement?




improvement

• Measurement makes you think

Why Measurement?




improvement


• Measurement is the acid test of your

management

Why Measurement?




improvement


• Measurement is the acid test of your

management

• Measurement can take you to the moon

Why Visible?

• Visibility provides a daily reminder

• Public display has a motivational

effect

• Visibility provides a history of

progress

• Display provides a centre of attention

Only general company-wide measures used.Key measures not decided upon for each department.Measures may be known to supervisors, but not displayed.Some departments think their work is not measurable.

Company measures performance by fact and not opinion.Key performance targets decided on in every department.Measures show performance meeting the standards set.Budgets agreed by department and regular data fed back.Data available, but generally in different forms and places.

Performance measures publicly displayed in every dept., and simple enough to be understandable to all.

Data shows performance continuously improving.Standards clear for every job-holder and every process.Each manager agrees own budget and gets regular

feedback.

Team members themselves produce the agreed performance charts and graphs and update the displayed data.

Visible management systems instantly show up deviations from normal performance in all process areas.

One-page management in operation i.e. performance on key measures fed back to each manager on one page.

Company knows measurement is a necessity to keep improving.

Senior management or visitors are able to tell from displayed data how any department is performing at any time.

Level 1

Level 2

Level 3

Level 4

Level 5

Visible Measurement Systems

Die Change Time

30

27

24

21

18

15

12

9

6

3

0

April May June July Aug Sept Oct Nov Dec Jan Feb March

Mins.

Target

Operationstandardised

N.M.U.KSkill Monitoring System

StandardOperatio

n

Specification

Quality

Speed

Can do withreference to standard

operation sheet

Can build OKspecification

with referenceto spec. data

Understandsthe qualitystandard required

Can completestandard op.

in 3 x standardtime or quicker

Can do withoutreference to standard

operation sheet

Can build OKspec. with occasional reference

to spec. data

Can achievethe qualitystandard required

Can completestandard op.

in 1.3 x standardtime or quicker

Completesstandard op. in

controlled manner to therequired safety

level

Can build OKspecification

without reference

to spec. data

Can achievequality standard and understands

acceptabledeviations

Can completestandard op.in standard

time

Can trainothers in the

standardoperation

Can trainothers in thespecification

Can trainothers in the

qualitystandard

Can trainothers in

standard timeachievement

Can improvethe standard

operation

Can identifyrelated

specificationerrors

Can takecorrective

quality actions

Can completeoperation in

0.9 x standardtime or quicker

Skills Matrix

Fork

lift

Cra

neRep

air

2700

Man

2700

Aut

o27

Pan

elPa

nel I

nsp.

Die

cha

nge

Tand

em

load

SA O

pera

teD

A O

pera

tePr

eloa

d PC

DF O

pera

teTa

ndem

sett

ing

Die

ch

ange

D

A Die

cha

nge

SA

Tand

emin

spec

tion

John Herdman

Steve Barnes

Peter Laidler

Steve Jennings

Steve Banks

Ray Johnson

David Craig

Dave Rollin

John Henderson

Dave Raine

Brandon Bowman

Lance Moon

John Houghton

Steve Raine

Keith Mc Manus

Steve Charlton

John Howell

Richard O’Connor

Shaun Robson

NAMEJOB

Implementation Recommendations

1 The information must be visible and readable from a distance



2 It should be easily understood by employees and visitors without explanation




3 It must be placed prominently at the place of work





4 Each chart should show target parameters, or target lines of improvement over time






5 The data should be marked up by team members







6 It should be constantly referred to by team leader and team members







6 It should be constantly referred to by team leader and team members

7 It should foster teamwork and the goal of constant improvement




WELCOME Everyone !

Day 2

People think that production is everything. They think it is the operator’s job to do and someone else’s job

(the inspector's) to catch mistakes.

Pay systems emphasise quantity rather than quality.The primary push is to “get stuff out of the door”.

The company has made the key mind-shift from quality defect detection to active prevention.

Staff are fully responsible for the quality of their own work, and knowexactly the standards they have to meet.

They treat the next person in the process as their customer.

Corrective action taken immediately on discovered defects. Operators use the ‘5 Why’s’ technique to solve problems.The defect rate has been reduced by at least half.Staff know ‘quality’ is not what they say it is, it is what the

customer says it is.

Mistake-proofing devices are being implemented Two-point inspection is installed.The defect rate is less than 0.5%. Customer service at an all-time high. Complaints low.

The abnormality rate is tracked i.e. deviations from normal rather than the defect rate.

The entire company has installed mistake-proofing devices. The abnormality rate is down to 0.1%. Customer complaints are down to zero.

Level 1

Level 2

Level 3

Level 4

Level 5

Managing For Quality

Survey of 100 Chief Executives

Their view of “quality” :

•Better than the competition 39%

•Giving value for money 30%

•Providing reliability 29%

•Being efficient 28%

•Meeting the needs of the customer 26%

•Exceeding the expectations of the customer 20%

The Many Facets of Quality

•Meets customer’s view of what quality is•Product / service meets its promises•Price versus value•Delivery timescale and reliability•As good as or better than the competition•Reliability of product in use•After-sales service



•Keeps things simple for the customer•Keeps things simple for the staff




•Design capable of reproduction•Design capable of cost-effective reproduction•Equipment capable of reproduction•People capable of promised delivery•Every person responsible for their own quality•Right first time policy, attitudes and procedures




•Design capable of reproduction•Design capable of cost-effective reproduction•Equipment capable of reproduction•People capable of promised delivery•Every person responsible for their own quality•Right first time policy, attitudes and procedures

•Expensive•Exclusivity

Workshop on Managing for Quality

Question:Explain your company’s management for Juran’s Cost of Poor Quality (COPQ) or Crosby’s Price of Nonconformance (PONC)?What are your status in terms of Failure Costs (Internal and External),Appraisal Costs and Prevention Costs.How do you plan to Control and Improve your COPQ / PONC?

Managers think that frantic activity equals productivity. Month-end rushes are common, people seem hugely busy,

they turn up late at meetings, etc.When you talk to them about making improvements they say

“We’re all too busy working!”

People know the value of doing things ‘right first time’.They understand that all activities that do not add value for

the customer are waste.Teams use process improvement charts to identify waste.Managers realise that machine monitoring (i.e. watching

machines working) is waste, and seek to eliminate it.

Process waste reduced by at least 20% e.g. scrap, rework, order cycletime, process steps, transport, etc.

Staff work faithfully to written Best Operating Practices.Employees handle two or more jobs or machines.Study groups meet to discuss how to reduce waste.

Process waste reduced by at least 50%.The overall actual work ratio has reached 75% or higher.Managers plan what specific value they will add every day.Equipment breakdowns are virtually eliminated.

The actual work ratio is at least 85%. New processes designed to squeeze waste out of the system. People see working without waste motion is actually easier.Even new employees can follow procedures easily.

Level 1

Level 2

Level 3

Level 4

Level 5

Eliminating Waste

Waste (MUDA)- The Seven Sins

1 Making mistakes e.g. rework and scrap

2 Duplication e.g. checking, double handling

3 Waiting, delay

4 Excessive transport or motion

5 Over-production

6 Over-stocking

7 Run-outsJapanese Kaizen teachings:Eliminate 3 MU

MURI-strain ; MURA-irregularity ; MUDA-waste

Process Mapping

Operation

Transport

Delay(unscheduled)

Inspection

Storage(scheduled)

Rework

Any value-adding step which moves the process forward

Any step that moves objects,information or people

Any unplanned delay to material, information or authorizing decisions

Includes inspections, checks or signatures

Planned delay to materials or products

Any unnecessary or repeated operational stepR

Operation

Transport

Delay(unscheduled)

Inspection

Storage(scheduled)

Rework R

AddedValue Waste

Process Mapping

No. Process StepProcess Symbol

R

Requisition form completed 10

Form put in post to boss 720

Form sits in in-basket 75

Form reviewed, then signed 12

Form sits in out-basket 90

Form put back in post to originator 720


Form put in post to Purchasing 720


Purchasing order items requested 18

1

2

3

4

5

6

7

8

9

10

Totals


R

Requisition form complete 10



Form reviewed, then signed 12







1

2

3

4

5

6

7

8

9

10

Totals


R

Requisition form completed 10



Form reviewed, then sign 12







1

2

3

4

5

6

7

8

9

10

Totals 2485 28 2160 285 12

Workshop on Eliminating Wastes

Using the Cause & Effect Diagram,show all your possible causes for errors(wastes) committed in your company ?

Can you identify the root causes of these errors?

What are the possible solutions to eliminate all these errors?

Staff don’t want to get involved in improvement activities.They say things like : “Why should we?”, “What’s in it for us?”,

or “That’s management’s job”.

Any suggestion boxes are little used or ignored.

Company realises there is a ‘best practitioner’ for any job, and that theymust capture this and make it standard practice.

Company starts writing Best Operating Practices (BOP’s).Employees contribute at least 6 improvement ideas a year.At least 50% of the ideas submitted are implemented.Teams are trained in improvement techniques.

BOP’s written and used for all routine jobs.Employees contribute at least 1 improvement idea a month.Two-thirds or more of employee ideas implemented.Team problem-solving sessions take place regularly, and

teams tackle at least two major projects a year.

BOP’s now written for all jobs, and by job-holders.Employees contribute at least 2 improvement ideas a month.More than 75% of employee ideas are implemented.Teams tackle three major projects a year.Benchmarking visits used to seek out and use best practice.

Employees average more than 4 improvement ideas a month.More than 85% of employee ideas are implemented.Teams tackle more than four major projects a year.Benchmarking visitors show company among ‘best in class’.

Level 1

Level 2

Level 3

Level 4

Level 5

Best Operating Practices & Continuous Improvement

B.O.P. Content

1 Description of the job to be done

2 Materials and equipment needed

3 Method to be used, including key points to be watched

4 Description of what a good job looks like - illustrated

5 Measurement methods to be used

6 Most common faults - and how to correct them

7 Name of B.O.P. author, and date last updated

Innovation

Operations

Masaaki Imai

Pattern of Western Management

TopManageme

nt

Middle Manageme

nt

Supervision

Employees

Innovation

Kaizen

Operations

Masaaki Imai

Pattern of Japanese Management

TopManageme

nt

Middle Manageme

nt

Supervision

Employees

Ref:Good to Great

By Jim Collins

Workshop on BOP and CI

In your company,do you have more Quality Control(Standardization) or Quality Improvement(Breakthrough)

projects done by your project teams like QCC@ICC,QIT,MQT etc..?

Provide some examples of both QC and QI projects.

People think of themselves as just doing a job, not in a team.Co-operation between work-groups is patchy; there is rivalry

and points-scoring between teams.Workers don’t act as a team with management - it’s difficult

to make changes without suspicion or opposition.

Staff co-operate with changes the company wants to make.Work-groups have specific measurable team objectives.Individuals and team leaders all have clear roles.Staff know who their customers are, external and internal.They look like a team, help each other to get the job done.

Work-groups meet as a team daily, or at least monthly.They make specific improvement contracts with customers.They display performance data publicly in their team area. Staff are multi-skilled and can cover a variety of jobs.

Teams are organised around processes or products.Teams set their own objectives, manage their own

budgets,resolve problems and make innovations.Cross-disciplined project teams are used to tackle big issues.

Teams exist everywhere, and have become a way of life.Self-directed teams set up and working effectively.The versatility in teams means they cope with change well.Teams celebrate achievements and expect success.

Level 1

Level 2

Level 3

Level 4

Level 5

Teamwork

Front-Line Teams

1 Skills within team to do complete job

2 Deal with complete product, process or service

3 Visual unbroken contact between team members

4 Work area clean and visually well organised

5 Visible measurement systems in every area

6 Multi-skills, flexibility and job rotation

7 Best Operating Practices captured and used

8 Team members “muck in” to help each other

9 They know who their customers are

10 Daily communications process

11 Continuous improvement and continuous learning part of everyone's job

12 Treated like mature adults, act like mature adults

Workshop on Teamwork

What do you think is the Top 5 attributes of Effective and Efficient (E&E)Teamwork in your company?

Please explain them and provide examples of their impact to E&E Teamwork.

Employees don’t want any responsibility; they want managers to be responsible for everything.

Managers want employees just to do as they’re told.Few, if any, team involvement meetings are held.

Employees are treated like adults, and expected to behave like adults i.e. to work effectively without supervision.

Employees are given full responsibility for their own work.Teams are given all the information they need to do the job.Team meeting sessions are held at least monthly.

Every team understands its own Unique Contributions.Individuals know the boundaries of their authority, and take

initiatives to do it right for the customer at the time.Teams collect data on performance, and use this with their

manager to make continuous improvements.

Every job-holder knows his/her own Unique Contributions.Staff handle the whole job themselves, so managers can

concentrate on improving the current systems.

They meet their customers’ requirements even in difficult circumstances.

Individuals agree self-set objectives and do self-appraisal.Teams set and meet their own improvement objectives.They both meet and beat their customers’ expectations.Teams involved in recruitment, equipment purchase, area

layout, producing their own budgets, etc.

Level 1

Level 2

Level 3

Level 4

Level 5

Staff Empowerment and Involvement

Standard Responsibilities

Manager

Output / productivity

Quality

Costs

Admin. / records

Good housekeeping

Scrap / rework

Safety

Employee relations

Training

Operator

Attendance

Good timekeeping

Meeting

performance targets

Flexibility

Unique Contributions

Manager

Productivity

Systems improvement

Costs

Admin. / records

Safe working arrangements

Team development

Housekeeping standards

Work scheduling

Operator

Output

Quality

Scrap / rework

Data collection

Safe working habits

Skills

Good housekeeping

Empowerment

Giving employees the responsibility

to do it right for their customer at the time

Nordstrom Policy Manual

Welcome to Nordstrom. We’re glad to have you with our company.

Our number one goal is to provide outstanding customer service.

Set both your personal and professional goals high. We have confidence in your ability to achieve them.

Nordstrom Rules :Rule No. 1 : Use your good judgment in all situations.There will be no additional rules.

Please feel free to ask your department manager, store manager or divisional manager any question at any time.

Workshop on Staff Empowerment and Involvement

Do YOU have any empowerment given to your staff?

If Yes,describe some of them and what are the results?

The company pays only as much as it has to to get staff.Pay systems are complicated and unpublished.Overtime is frequent, often to cover ad hoc problems.Anomalies exist and complaints frequently arise.

Pay systems have been simplified, are understandable and published.

Employees are paid about the average for the work they do.Regular hours cover the normal work. Overtime is minimal.Additional skills acquired lead to additional pay.

Employees are paid above the average for above average performance.

Appraisal system rewards motivated performance.Different sickness benefit and pension schemes still applied.Recognition system in place and working.

Surveys conducted to ensure pay remains above average.Appraisal systems apply throughout the company.Sickness benefit and pensions schemes the same for all.Profit-sharing means staff are keen to see company profitable.

Staff have a ‘no redundancy’ undertaking.Above average pay attracts and retains the best staff.Appraisals encourage continuous improvement and continuous

learning.Recognition system regularly encourages the behaviours the

company wants to see.

Level 1

Level 2

Level 3

Level 4

Level 5

Rewards and Recognition

Premier Pay and Reward System

Skill

levelachieved

1 2 3 4 5

Years in the job

1 Productivity meets standards

2 Zero defect quality level

3 Positive response to short-term problems

4 Willingness to undertake any job for which he/she is competent

5 Helpfulness towards colleagues (‘mucking in’)

6 Makes suggestions / takes initiatives to make improvements in the company

7 Positive attitude to the company

8 No absence / timekeeping problems

9 Excellent housekeeping standards

10 Personal learning objective achieved from previous appraisal

Personal Performance AppraisalBonus Criteria

Yes No

Average over Non profit- Profit- % 8 years sharing sharing Difference

companies companies

Profit-sharing CompaniesPerformance Data

Return on sales (%) 5.6 8.4 50.0

Return on capital (%) 15.5 20.6 32.9

Earnings per share (p) 12.8 16.3 27.3

Annual sales growth (%) 13.7 15.5 13.1

Annual profit growth (%) 9.7 13.6 40.2

Annual investor returns (%)18.0 24.8 37.8

Share of Prosperity Bonus

187.5

178.6

170.1

162.0

154.3

146.9

139.9

133.3

126.9

120.9

MAT Sales

£m

ROTA

Period

6 7 8 9

10 11 12 13

1 2 3 4 5

OKSub

Sub-sub

This yearLast year

Days’ pay earned to date 6

• Greeting• Eye contact• Pat on the back• Use their names• Take an interest• Ask about their family• Ask them questions• Take their advice!• Attention of any kind

• Give them information• Delegation (trust)• Stand-in for boss• Chosen as visitors' escort

• Thank You card or note• Cream buns, cakes• Celebration parties

• Badges / Lapel pins• Special clothing e.g. tee

shirts, baseball hats, etc.

• Signed certificates• Letter from the big boss• Presentation before colleagues• Photo in ‘Wall of Fame’ • Write-up in magazine

• Presenting improvement ideadirectly to board

• Presenting to outside conference

• Choose people to visit customers• Bench-marking visit to

companies abroad• Have company car for week

The Many Forms of Recognition

Workshop on Rewards and Recoqnition.

Name some of your company’s Rewards and Recoqnition projects/programs?

What are their impact to your company’s overall business results including staff morale,productivity and quality work.

Work-team meetings are patchy or non-existent.The grapevine is strong, notice boards poorly cared for. There are constant complaints about poor communications.People say : ‘Nobody tells us anything’.

Communications process from top management to front-line staff well set up.

Staff have all the information they need to do a good job.Managers are trained in, and hold, regular team meetings.Notice boards are well-sited, well-presented and maintained.Meeting rooms are available with good visual aids.

Top management meet with all staff at least once a year.Managers know their messages, and live them by example.Meetings are purposeful, and follow published guidelines.House journal is lively, interesting, and widely read.

Information cascades from top mgt. meetings to front-line staff within 48 hrs.

Front-line teams hold start-of-day meetings, and have communication boards in their sections.

Strong upward channel means front-line points are heard by senior mgt.

Matrix calendar of communications shows all communication channels, and who does what, when.

Company uses well a variety of communications channels - meetings, notice boards, paper, computer, and video.

Surveys show steadily improving communications scores.

Level 1

Level 2

Level 3

Level 4

Level 5

Purposeful Communication

Objections to Formal Communications

• We all communicate with each other already

• I can see why they need Team Briefing in the factory but not in the offices. We all know what we need to know already

• We tried team briefing before and it didn't work.Our foremen couldn't brief.

• The Union won't let us. They want to talk to their members.

• It's too formal for our informal management style.

• People will just use the meetings to complain and moan.

• After the first few briefs we'll run out of information.

• Employees don't want to hear all that stuff - they think it's boring.

Sources From Which Employees Prefer to Receive Information ( Top Three Choices Combined)

My immediate manager 85%

Team meetings 59%

Notice boards 35%

Printed material sent to me 29%

My manager's manager 29%

Direct from senior management 15%

From Personnel 15%

Trade Union representative 7%

Audio-visual presentations 6%

House magazine 5%

The ‘grapevine’ 4%

I understand the goals the company 50 50 25 44 29 53 86wants me to achieve

There is a commitment to good quality 42 50 50 56 43 13 71throughout the company

The company is committed to good 53 50 50 56 57 73 100customer service

I think things are improving in the 16 25 100 33 14 53 100company

How satisfied are you with the 12 0 25 22 14 7 57information you receive about the co?

My manager sees contributing ideas 36 100 75 78 29 33 86as important

My manager encourages us to co- 42 75 75 78 14 53 71operate with other departments

I have all the materials and equipment 33 25 25 33 14 20 71I need to do a good job

Production Administ. Info.Systems Managem. Marketing Cust. Servs. Quality

Department Comparisons

Workshop on Purposeful Communication.

What are the new modes of communication nowadays in your company and how effective are they?Please explain with examples.

Employees not enthusiastic about learning new skills.Minimal induction training, little off-the-job training.Experts generally opposed to sharing their skills with others, feeling

their jobs would thereby be threatened.

Minimum of one day’s training for everyone every year.Staff trained to handle multi-tasks in operations and office.Tradespeople trained and operate across skill boundaries.Skill and training records maintained for every person.All inductees get initial training and are linked to a mentor.

Learning objectives built into all appraisals every year.Complete cross-skilling operated within work groups.Using a points-based system, the average worker has doubled their

skill points. Job rotation is happening in every area of the company.

Minimum of three days’ training for everyone every year.Training facilities have become ‘state-of-the-art’.Managers and Directors have become trained trainers.Whole workforce becomes more skilled/valuable every year.

Company realises that continuous skills training turns their people into a competitive (and only) appreciating asset.

Minimum of five days’ training for everyone every year.Larger companies operate an in-house University.Continuous learning has become a way of life.

Level 1

Level 2

Level 3

Level 4

Level 5

Continuous Learning

Education at Quad Graphics

“Each employee makes a commitment to accept our values

and become a student / teacher. Our first task is to learn

our jobs. Our second task is to know our jobs. Our third

task is to improve our jobs - since only those doing a

given job can determine how to do it better. And our

fourth job is to teach our jobs to each other.

Education nurtures people. It accelerates change. It is how we find the next leading edge of

technology. We create the technology to do our work at

unrivalled levels of quality and un-heard of speeds. Education is a way of life at Quad Graphics.”

Workshop on Continuous Learning

Do YOU have a Corporate University(CU)-(in house university/academy/centre of excellence)in your company?If YES,please describe your CU roles and responsibilities?

How effective are they in helping your company achieve their business results.

Discussion Point

1 Which Ladders do you think it would be good for your company to focus on?

2 What are likely to be the biggest obstacles to your success?

3 How could you minimise or eliminate these?

Video Presentations – All About World Class Companies (Their Culture ,Their Passion ,Their Values,Their Successes,Their People,Their Leadership,Their Best Practices, etc..)

Co:Proctor & Gamble

Co: Ritz Carlton

Co:SatyamGovt :US Army

Co:Scana

Co: Jet Blue

The Cascading TOM ProcessThe start-point is the Strategy TOM held with the top management team, in which the longer-term goals and critical scorecard measures are agreed upon for the whole business.

With that foundation, TOMs are then conducted with every work-team in the organisation until every Division, every department, has committed itself to performance measures which not only support the overall

goals of the business, but reach down to affect the behaviour of the front-line staff who daily either make the company's products or serve the company's customers.

Preparation PhaseThe consultant first spends an hour and a half or so in individual

discussions with each of the team members. Where appropriate, it is also useful

to conduct the consultant on a short tour of the operation to see just what goes on, and to understand better the nature of the work

and the business.

A few days later, a one-day Seminar is held with the team together, during which we describe the concepts behind company-wide measurement systems, and explain some of the techniques and strategies used by other companies which have helped take them to world-

class levels of performance.

Towards the end of the seminar we issue everyone with a previously agreed Pre-Think Document. This lays out the agenda items for the Team Objectives

Meeting, and asks each team member to write down their personal views and ideas on each of the subjects covered, so that they have some considered ideas to contribute when they

come to the TOM itself.

Strategic Team Objectives MeetingA week or so later the Team Objectives Meeting is held undisturbed over

two or three days in a suitable off-site location. This can be during normal workdays or a mixture

of weekday and weekend days, as the company decides. The Pre-Think Document items then become the agenda for the meeting. Two key rules

apply at the TOM :

Nothing is agreed as a decision unless it has the 100% agreement of the team. That way, no-one gets railroaded into something they don't think will work, or they

don't agree with.

However, those actions which are agreed become commitments i.e. the team agrees to do whatever it takes to see them achieved.

Now,YOU must take action on your FOCUS Ladder/s to achieve World Class Performance (Level 5)?

World Class Audit-How to DO!

Step One –Please Rate your current performance of the 12 Ladders.Level 1 for Ordinary Perfomance and Level 5 for World Class Performance.(where we are now!)

Step Two-Allocate the Ladders to one of the three categories (importance)

Step Three-Take Action!You now know your priorities,so take action to move to the Next Level of Performance!

What are your results ? Revolusi Aksi @ Action Revolution !

Category 1 =Must Do,requires urgent attention in the short to medium term.

Category 2 =Should Do,requires attention in the medium to long term.

Category 3 =Can Wait,requires attention once we have dealt with Category 1 and Category 2 Ladders.

Implementation PhaseThe accumulated flipcharts from the TOM are compiled into an Action

Document, detailing the goals the team have agreed upon as a company for the next three years or so, the key measures they have decided are crucial to the business's success, and laying out how

they intend to cascade the process down through the company.

Review dates are put in place, so the team can examine

actual achievements versus plan on a regular basis, and take appropriate action to stay on track with their original commitments.

The Cascading TOM’s Process

1 Preparation Phase• Individual discussions• Seminar• Pre-Think Document

2 Team Objectives Meeting• Focussing on customers• Turning co. goals into

objectives• Deciding on key measures• Visit by Super-boss

3 Implementation Phase• Action Document• Follow-up Reviews

TOM Cascade

Team A

Team B

TOM Cascade

Team A

Team B

Team C

TOM Cascade

Team A

Team B

Team C

Team D



Thank You For Your Participation.

For further enquiries,please contact:

Ramli Abu Hassan-Managing Director of DPS

HP:019-2537165

E-mail:[email protected]

End of Day 2 of 2

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