1. Business Performance Improvement & Continuous Improvement

2. Safety Moment

3. Company Seven power plants 825,000 customers 30,000 square mile distribution system 7 Wind Farms providing 800 MW of power

4. Continuous Improvement at OG&E Business Value Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards AND Transform Culture

5. OGE Culture

6. Our Culture Is Based on Common Values and Beliefs By creating member experiences that reinforce these beliefs, we can motivate actions that create the desired culture By creating member experiencesthat reinforce these beliefs,we can motivate actions that create the desired culture

7. Accountability Model

8. Continuous Improvement Training Awarenes s Local Team Green Belt Champion

9. Value Awareness Training the worth of a product or service, by a customer, based on its usefulness in satisfying a customer’s need

10. Waste Awareness Training any activity that adds costs or time but does not add value

11. TIMWOOD Awareness Training recognizing the seven (7) types of waste

12. Continuous Improvement at OG&E Business Value Known Solution Easy to Implement “Just Do It” Simple Opportunity AND Transform Culture Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards Three Opportunity Types

13. S pecific M easurable A ttainable R elevant T ime-bound What: What will the idea accomplish? Why: Benefits of accomplishing the idea. Who: Who is involved to execute the idea? Where: Should the idea be implemented? How much cost savings? How much time savings? Which type of waste will be removed? How will we know when it is successful? How can the idea be accomplished? How realistic is the idea and the constraints? How will it be controlled and sustained? When and how long? Does the idea support our strategic goals? Is this the right time? Is it applicable to our values and beliefs? How significant will the impact be to OG&E? Can it be done in 6 months? Can it be done in 3 months? Can it be done in 3 weeks? What can I do today? Improvement Ideas

14. Continuous Improvement Training Awarenes s Local Team Green Belt Champion

15. Local Team Manages Ideas EvaluatedInvestigatedImplementedMonitored Evaluated by Local CI Team, monthly meetings Member may be asked for more information Investigated by one member or a team Submitter will help with investigation Implementation and Sustainability Plans will be developed Approvals will be sought Implementation Plan will be followed Trial implementation may take place Sustainability Plan will be followed Benefits will be tracked Success will be celebrated The CI Team will be in communication with members throughout the process Members may be assigned to a Team to investigate and work on the idea

16. Continuous Improvement at OG&E Business Value Known Solution Easy to Implement “Just Do It” Simple Opportunity Some Analysis Needed Implemented Locally Team Approach Local Opportunity AND Transform Culture Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards Three Opportunity Types

17. Continuous Improvement Training Awarenes s Local Team Green Belt Champion

18. Journey to Green Belt Certification Intro to LSS (4 hours) Pre-Course Work (14 hours) LSS Green Belt (5 days) Project Execution (4-6 months) Project Presentation & Certification

19. Continuous Improvement at OG&E Business Value Known Solution Easy to Implement “Just Do It” Simple Opportunity Some Analysis Needed Implemented Locally Team Approach Local Opportunity Detailed Analysis Crosses Functional Areas Focused Team Effort Complex Opportunity AND Transform Culture Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards Three Opportunity Types

20. Continuous Improvement Training Awarenes s Local Team Green Belt Champion

21. Engage All Levels Deployment Champion (e.g. Director or Vice President) CI Champion (e.g. Manager) CI Champion Local CI Teams (members and supervisors)

22. Why CI? Why Now? CI has been around a long time at OG&E Some successes, some failures Ember has never died out History Environment is rapidly changing We need to be customer-centric Opportunities demand responsive culture Current Situation New leaders, new management approach Members want to be engaged Consistent approach, training, strategy Success Factors

23. Plan for 2016 Deploy our training program into additional areas of the company Recruit and train another 25 Green Belts Incorporate Champion training into training plan for new supervisors Optimize Work Processes will be a key competency in our Foundations of Leadership program Drive the use of Visibility boards and metrics Increase awareness through CI Day Out and other events

24. April 1 st Tour Distribution Control Center I O C Resource Coordination CI Deployment

25. April 1 st Tour - Logistics Lunch at Francis Tuttle Bus to OGE Facility Sign In Sheets

26. Questions?

27. Thank You and Be Safe