Making the Business Visible Building Leadership Capacity Slide Intent Cover slide Making the Business Visible New Reality Leadership Copyright 2010-2018 New Reality Leadership, LLC October 2018

The Discipline of Execution Many leaders do not see the need to make business goals and data visible to employees. Our premise: The more visibility employees have to the business vision, goals and gaps, the more they will understand how close the gaps and maximize the business performance. View the video and write down what this business is doing to drive improvement. http://the4disciplinesofexecution.com/ Slide Intent Introduce a 4 Disciplines of Execution video. Key Messages There are several videos in this link. They change periodically. Pick an example that shows how the team made the business visible and measured lead and lag measures to improve the performance. The Opryland case works well. Ask them the note the improvement actions and the business impact. Chart a few responses and post on the wall for reference. Facilitation Notes Covey has full length videos you can purchase. These short segments show the key points of the approach.

Objectives Build employee engagement by helping them understand the concept of Making the Business Visible. Learn and apply a 4-step improvement process Identify Improvement Areas Determine Lead and Lag Measures Create a Visual Display Design and Conduct Review Meetings Assess your organization to identify improvement areas. Create an action plan to integrate the concept in your area. Slide Intent Present objectives. Key Messages Review Objectives. Facilitation Notes

Agenda 1. Illustration: Fast Food Restaurant Example of a Visual Display Building the Engagement and Value for Employees Electric Bill Exercise 4. Applying the Process A. Identify Improvement Area B. Determine Lead and Lag Measures C. Create a Visual Display D. Design and Conduct Review Meetings   5. Assessment 6. Summary and Application 7. Supplemental Materials: Lean Tools and Additional Reading Slide Intent Present the Agenda. Key Messages Share the agenda. Post this on the wall as well either by making a poster from this slide or making a chart to hang. Facilitation Notes By posting the agenda, you can refer to it as you work through the session. Participants like to know where they are in the overall session.

1. Illustration Fast Food Restaurant Individually, read the restaurant illustration in the workbook. Discuss the approach with a partner. How do you feel about the fast food example of making the business goals, metrics and data visible to all employees? b. Do you apply this approach in your business? c. Do you agree with this view that all employees should have a clear visibility into this type of data? Slide Intent Introduce restaurant case study. Key Messages Follow instructions on slide. Facilitation Notes

2. Example of a Visual Display Slide Intent Example of a visual display for restaurant. Key Messages Share example of a visual board. There are additional examples in the workbook. Add examples as desired. Facilitation Notes sds

Visual Board Examples Review the examples in the workbook. List several success factors for effective boards. Slide Intent Visual board examples. Key Messages Show examples on slide and in workbook. Ask group for a few success factors for visual boards. Simple Color Clear and understandable A few key lead and lag measures…not too much data Owned and updated by the area Facilitation Notes Substitute examples as desired. These pictures are standard pictures to provide ideas for boards.

The Heart of Driving Improvement Identify Improvement Areas Determine Lead and Lag Measures Create Visual Display Conduct Review Meetings A few focus areas Use both lead and lag measures Connected to improvement needs Owned by team A B D C Slide Intent Introduce module model. Key Messages This model highlights the four steps to making the business visible. Make a poster of this slide to reference in the session and in follow-up sessions. The module flow follows these four steps. Facilitation Notes Visible to all Simple Focused on current measures Daily or weekly Short with focused agenda Clear Vision and Goals with an Empowered Team

Electric Bill Example Read the electric bill example What is the suggested approach in this case of the home owner (Leader) Discuss your thoughts on this approach? Does your area apply this approach and is there an opportunity to improve the approach? Slide Intent Build value for the process using an electric bill. Key Messages This exercise and discussion highlights the two approaches leaders use to improve issues. Allow participants to individually read electric bill story. Ask participants for their views on the two approaches. Emphasize that our approach engages people to make improvements. Facilitation Notes

Starting the Process A. Identify Improvement Area Identify an improvement for your work area. Spend a few minutes as either a large group or in smaller groups to determine this focus area. List: Improvement Opportunity Current state Goal for improvement Timing to compete the improvement Use workbook Slide Intent Begin the four-step process. Key Messages The slides step the participants through the four steps and exercise. Use the workbook to capture ideas. Some portions use a flip chart. Follow slide and workbook for instructions. Facilitation Notes

Generate Ideas List improvement ideas. Use column 1 and brainstorm improvement ideas Think broadly and list ideas even if they seem impossible Slide Intent Generate ideas. Key Messages The goal in this step is to generate many possible solutions without judging ideas or screening them. In groups, ask them to generate ideas using the left column. Emphasize not to discuss or judge ideas in this step. Facilitation Notes

Sort Ideas Use Column 2 Determine which level of the organization can address the improvement idea and list those in column 2: Front line employees at the source of the work Mid-level leaders and technical employees Senior leaders Once sorted, pick a couple actions to use in the next steps. Slide Intent Sort ideas. Key Messages Different levels of the organization address issues based on complexity. Determine which level of the organization can address the improvement idea. Use column two to sort the ideas into the three levels. Ask for a few examples when they are finished. Facilitation Notes Involve the people at the source of an issue as much as possible.

Choose a Few Ideas Select a few ideas to start Consider a few items for each organizational level but don’t force ideas for each level if not needed. Slide Intent Select ideas. Key Messages Ask each group to pick a few ideas for each level. Not all improvement ideas need support from all three levels. Don’t force solutions. Prioritize solutions based on people and time availability. Facilitation Notes

B. Determine Lag and Lead Measures Write down an example of a Lag and Lead Measure Lag: Soccer Score Lead: number of shots on goal Lag: 300 units produced in a day Lead: Equipment calibrations completed daily Slide Intent Step B: Determine Lead and Lag Measures Key Messages Show slide to introduce Lead and Lag measures. Slide is animated. Ask them to write down an example of each measure. Ask for a few examples. They may not have the right view yet. Listen to the ideas and then move to the examples. Facilitation Notes As a facilitator, read the workbook to understand this concept. If this approach is new, it takes time to be comfortable using and explaining it.

Examples of Lead Measures Restaurant Amount of people calling out each month or the overtime required due to poor scheduling Following the equipment calibration frequency. Verify equipment calibrations Number of customer complaints per week or month Electric Bill The number of nights no extra household lights were found Number of weekly meetings held in month Slide Intent Examples of Lead Measures. Key Messages Show examples and ask for any comments. Facilitation Notes

Create your Lag and Lead Measures Using your focus area, identify the Lag and Lead measure (s). Use the workbook for ideas and to list the ideas in the worksheet. Slide Intent Exercise to identify lag and lead measures. Key Messages Ask participants to pick one improvement area. Have them identify the Lag measure and one or several possible lead measures. Ask for a few examples. Facilitation Notes

C. Create a Visual Display Characteristics of Visual Boards Visible to all employees Easy to understand Shows lead and lag measures Shows progress and accomplishments Updated regularly Used for daily or weekly review meetings Slide Intent Share Step C: Visual Display Key Messages This slide highlights a few characteristics of visual boards. Share slide and ask for additions. If you have specific guidelines already, edit slide to include. Facilitation Notes

C. Create a Visual Display Using your Lag and Lead Measure, determine how you will measure and display each. Determine what to measure How will you measure? Determine a metric (what is acceptable and not acceptable) Pick a pictorial approach such as graph, chart, color indication Use a chart pad for your work 10-15 minutes Slide Intent Visual display exercise instructions. Key Messages Share slide instructions. Show next slide for a full example before they begin their work. Provide a chart for each team. Exercise may take 10-15 minutes. Ask each team to share their work. Facilitation Notes

Visual Display: Example Slide Intent Visual display example. Key Messages Share example. It is also in their books. Add other examples if applicable. Facilitation Notes

D. Design and Conduct Review Discussions Guidelines Conduct daily or at most weekly. 10 -15 minutes. Conduct near the work using visual display. Highlight improvements and opportunities. Everyone participates. Rotate meeting leader. Discuss the metrics associated with the lead and lag measures. Solve simple problems at the display when possible using structured tools such as 5WHY, Fishbone, or Brainstorming. Determine what support is needed or what problems are too complicated for the group to address and need to be escalated. Slide Intent Step D: Design and Conduct Review Discussions. Key Messages Share guidelines with group. Add other guidelines if needed. Optional Exercise: Have participants design a meeting agenda and determine a meeting location and frequency. Facilitation Notes

Exercise Debrief and Integration Think about the process How do you feel about this approach? What are the potential benefits of using this approach in your area? What questions do you have? Slide Intent Exercise debrief. Key Messages After completing full exercise, review the process by asking the questions on slide. Determine if you need to provide additional explanation. It may take several practice sessions to effectively apply this approach. Facilitation Notes

Toyota’s Approach Out of the Box Thinking Consider the difference between many American companies and strong Japanese companies. To understand the power of a continuous improvement culture, we look to Toyota. Toyota employees generate more than one million process improvement ideas annually. The astounding number is that 90 percent of those ideas are implemented. There is no secret to why this occurs. Toyota executives have created a culture that encourages and rewards this behavior. The Toyota culture of continuous improvement David McBride  Many companies do not think about enrolling employees to be part of problem identification or helping to solve problems. The premise of New Reality and many lean organizations is that employees must be engaged in making their part of the business as effective as possible. Slide Intent Share Toyota approach Key Messages Read quote. The goal is to create a continuous improvement culture. Toyota used many tools but they first engaged and empowered employees to improve the business. The four step approach is minimally effective without the employee involvement and ownership. Facilitation Notes

Autoliv Corporation Autoliv is an automotive safety company. The Utah site won the Shingo Prize for quality. Watch the video and list the Autoliv improvement approaches and business impact. Autoliv Company Slide Intent Optional video from the Autoliv company. Key Messages This is a great, short video showing how Autoliv engaged employees, identified thousands of improvement ideas, and became a world class supplier of airbags. They engaged employees, built a continuous improvement culture, and made the business visible. Facilitation Notes

5. The Assessment As a leadership team, review the assessment and discuss your individual answers. Discuss and reconcile differences. Discuss any questions or approaches suggested in this assessment that do not make sense or that you may not agree. If there are concepts you are not sure of or just do not agree on, discuss for clarification. Some of these ideas are not common thought processes for many companies. From the assessment and discussions so far, determine actions you would like to take as a group, organization, or company. . Slide Intent Complete the assessment. Key Messages For this module, the assessment is at the end. Fill in during workshop or ask participants to fill in on their own and discuss in a subsequent session. Facilitation Notes

6. Summary and Application Review Related Competencies Review Objectives and Learnings Determine Next Steps Slide Intent Summary slide showing the three review activities. Key Messages Show slide quickly to highlight the three activities. Adjust the close per your style and participant needs. Facilitation Notes

Building Leadership Competency Applying the concepts in this module help you build a number of competencies. We listed several here. Communicates effectively Manages Performance Empowers workforce Engages employees for their knowledge Fosters creativity and innovation Executes goals Builds solid teams Develops strong customer focus Slide Intent Connecting this skill to leadership competencies Key Messages In our initial modules, we discussed a number of competencies or mindsets of successful leaders. Among a longer list, the listed competencies are strengthened as leaders follow the guidelines in this module Have an open discussion by asking the question on the slide to the participants. This discussion will help them connect the need to apply this skill well if they want to accomplish the above shifts in the organization. You can do this as an open group or assign small groups one or several competencies to discuss. Ask them to explain how the principles of Making the Business Visible help them improve their assigned competency. Facilitation Notes Communicates effectively – Making data visible to employees is a great form of communication. It is not common for most businesses to share deeper knowledge with employees Empowers workforce – Giving employees data, training them, and then allowing them to make decisions based on that information are the keys to building an empowered workforce. Engages employees for their knowledge – Employees must see what is going on in the business and with customers before they can provide ideas and suggestions. If they see the landscape, they will have much stronger ideas on how to improve the business. Fosters creativity and innovation - Employees have more probability to bring creative ideas to the team if they see where the business is going and the current score. Executes goals – Goals will be accomplished faster and better if everyone sees the direction and key needs. Builds solid teams – Teams who see the goals and are able to work together to meet the goals typically work much better together than employees who work in isolation from each other and the overall goals. Develops strong customer focus – Many employees do not see how their work impacts the customer. It is important to understand the customer view and how each employee’s work contributes to customer satisfaction. How do you feel making the business visible to all employees helps you as a leader grow in these competencies?

Building Leadership Competency Mid Level Competencies There are several more strategic competencies listed in the Competency Model. Three that relate to this module are: Builds a collaborative workplace Builds an interdependent workforce Translates strategy to all employees How do you feel Making the Business Visible to employees helps leaders impact these competencies? Slide Intent Connecting this skill to middle leadership competencies. Key Messages The NRL competency guide lists competencies for senior leaders. These three are most related to this module. Help participants see the connection to these especially if you have more strategic leaders in the session Facilitation Notes As time permits and if there are strategic leaders involved, discuss these competency connections. (Some of these concepts are discussed throughout the materials called Leadership Moments) Builds a collaborative workplace – Collaboration involves having everyone working together as a team vs. being in a hierarchical setting. Builds an interdependent workforce – Interdependent teams can act with minimal guidance from leaders on a daily basis. Employees who see the goals and current state, gaps and have the empowerment to act will help the business run methodically with minimal leader guidance. Translates strategy to all employees – This module is a key to translating strategy. Leaders must want to translate it. Making the business data visible is the way to achieve this competency.

Objectives and Learnings Share one of your learnings. Which objective connects to this learning. Build Employee Engagement by helping them understand the concept of Making the Business Visible. Learn and apply a 4-Step Improvement Process Identify Improvement Areas Determine Lead and Lag Measures Create a Visual Display Design and Conduct Review Meetings Assess your organization to identify improvement areas. Create an action plan to integrate the concept in your area. Slide Intent Review objectives. Key Messages Review objectives to highlight the module emphasis. Ask for a key learning from the session. Facilitation Notes

Determine Next Steps Create an action plan that includes: How you will apply this approach to your area What are the immediate next steps Who is responsible for each action Slide Intent Determine next steps and create an action plan. Key Messages Determine how to continue this process. The participants only have the basics after this session. Practice and apply the approach to integrate it as part of your culture. Create an action plan for next steps. If you are breaking the full module into smaller segments, determine a date for the next segment. Facilitation Notes