WorkOut Clients Include Frito Lay Co Yellow Freight Acme Steel Dresser, Inc. Northeast Utilities NStar Utilities Metropolitan Life Wawa Food Markets Varco International Avery Dennison AES Corporation International Multifoods L.L. Bean General Electric Metavante World Kitchen PNC FDIC National Steel PG&E IBM Alstom Power
WorkOut Involves Everyone Top Down Leaders or managers identify a key business improvement goal, then challenge those closest to the work to recommend ways to reach the goal. Bottom Up Those closest to the work make specific recommendations to meet the goal, then implement the approved recommendations within 90 days.
WorkOut Creates Cultural Benefits
A ccountability for taking ownership of the work, making improvements to the work and implementing improvements quickly.
C ollaboration across functions and between levels.
T rust in yourself, your peers, your reports, your managers and leadership.
Nurtures and Reinforces A.C.T. Behaviors
WorkOut Delivers Results
Reduces operating costs
Speeds cycle times
Reduces bureaucracy and busy work
Obtains strategic business objectives
Gets existing business done quicker
Unblocks log jams
WorkOut is Scaleable WorkOut fits different levels of scope, time frame, and resources. Length of WorkOut session 1.5 days Length of WorkOut session 2 days Length of WorkOut session 2 to 3 days Length of WorkOut session 3 to 5 days # of WorkOut teams 1 # of WorkOut teams 1 or more # of WorkOut teams 2 or more # of WorkOut teams 3 or more Total planning time: 1 week Planning Team ½ Day Total planning time: 1 to 2 weeks Planning Team 1 Day Total planning time: 2 to 4 weeks Planning Team 1.5 Days Total planning time: 4 to 6 weeks Planning Team 2.5 Days Organic Streamline and Simplify Level C Local department improvement goal Level B Functional business unit goal Level A Strategic organization-wide goal
Process Overview, the 6 Steps 1) A Sponsor*: Selects a critical business challenge Selects a Champion to oversee a WorkOut 2.) A Champion*: Selects a Planning Team to guide the WorkOut Serves as lead of the Planning Team * Each step is guided by a WorkOut process manager. 1 of 4
3.) The Planning Team*: Refines the business challenge Defines measurable goals Identifies WorkOut team participants Compiles data and background information critical for the WorkOut team(s) * Each step is guided by a WorkOut process manager. 2 of 4 Process Overview, the 6 Steps
4.) WorkOut team(s) in the WorkOut Session*:
Systematically analyze the challenge
Generate recommendations to meet the goals
Define the cost and benefits of recommendations
Create action plans to be implemented within the next 90 days
Present recommendations to the Sponsor for immediate approval
* This step is guided by a WorkOut session facilitator.
Process Overview, the 6 Steps 3 of 4
5.) The Sponsor*: Makes “yes” or “no” decisions on each recommendation presented by the WorkOut team(s) on the spot 6.) WorkOut Team Leads*: Oversee the 90 day implementation of the approved recommendations, with the involvement and support of all of the team members * Each step is guided by a WorkOut process manager. Process Overview, the 6 Steps 4 of 4
WorkOut Key Elements
People closest to the work …
Know it best
Have significantly more to contribute to achieving business goals—and want to do so
Will respond favorably to a team challenge
WorkOut aims to …
Create the forum for dialogue and change
Eliminate bureaucracy and barriers
Cultivate grass root solutions
Actions begin immediately…
Leadership decides ‘live’ on the recommended solutions
Teams implement their solutions with updates to leadership at 30, 60 and 90 days
Recommendations must be completed in 90 days
People are most likely to feel the power of self-motivation when leaders create three conditions:
Leaders provide people with opportunities to choose their own course of action. WorkOut does this.
Leaders provide people with visible forums to make their choices public. WorkOut does this.
Leaders support people’s decisions and help them overcome organizational obstacles. WorkOut does this.
Leadership principles from “The Leadership Challenge”
by James Kouzes & Barry Posner
WorkOut Encourages Leaders to Empower Others
What Goals are Right for WorkOut?
Where many people agree there is room for improvement
Where many people have suggestions on how to make improvements
Where you can get - or where you need to get - results quickly
Where an issue touches people from several functional areas
Where multiple changes can be made to improve one issue
Where peoples’ experience and common sense can provide significant background information
Where buy-in and support from many people can accelerate change
What are the strategic business objectives you need to reach in the next six months?
Where do you need to get things done quicker, more cost effectively?
Where are the obstacles that block your success?
Where are those numbing recurring “learned to live with” problems?
Where is there a new initiative that needs to be implemented with maximum buy-in?
Where do we need to streamline, simplify and/or eliminate unnecessary work?
Where is bureaucracy undermining measurable business results and people’s enthusiasm, creativity and experience?
Identify Your WorkOut Opportunities
How do we improve the budget and financial reporting process to insure we are capitalizing as many costs as possible?
How do we improve the new store opening process to eliminate critical issues and reduce other start-up issues to ensure seamless transitions from Store Development to Store Operations?
How do we consistently and efficiently mange a major event that results in increased customer satisfaction and perception of the company?
How do we optimize business practices to achieve our 2008 variable profit of 25M?
How do we increase our merchandising resets to 4 per year, while meeting base requirements, increasing customer and associate satisfaction, and meet the company's safety standards?
How do we optimize our reporting process though actively managing data flow between Corporate and Field?
How do we sell more to and through each part of the organization?
How do we reduce the cost of re-work and build ownership within the design groups?
How do we change our information methods to better serve our customers?
How can the company reduce its employee turnover levels that are currently costing the company in excess of __mm per year?
How should web-based technologies and capabilities be utilized to grow our business, maintain long-term customer relationships and foster customer loyalty?
Examples of Actual WorkOut Goals 1 of 3
How can we implement comprehensive financial planning product(s) by second quarter that provides sustainable competitive advantage and works within our line-of-business structure?
How can we more effectively and efficiently prepare for and present the FTS solution to customers/prospects to realize a 20% improvement in “making the cut”?
How can we improve the current structure for employee evaluation, growth and development that incorporates accountability and fairness throughout the company?
How do we standardize and simplify cost allocation to build a more workable, manageable, flexible and understandable cost of service model?
How can we create and implement an integrated process for long range planning to ensure it is inclusive and maximizes the value of the company?
How can we create and implement a simplified decision process that drives daily operational & investment actions?
How do we construct our capital projects in the most effective and efficient manner while adhering to the project plan?
Examples of Actual WorkOut Goals 2 of 3
What inefficient activities need to be removed at store level so that the company can slow the growth of labor hours and expenses to allow for reinvestment in store level compensation?
How can we bring discipline and rigor to our program planning process to most efficiently deploy limited resources?
How do we promote a culture of health and make it easy for employees to make healthy choices, while keeping the growth trend of medical insurance expenses below market trend?
What governance process is needed at Corporate to support Area Managers to properly plan, organize and resource future needs?
How can we solicit total team cooperation to achieve above standard expectations in store conditions while continuing to build sales?
How do we ensure entire and on-time collection as a part of doing business every day?
How do we optimize reporting processes through actively managing data flow to meet the needs of Corporate while reducing the burden on the businesses?
What do we need to do to improve coordination between departments at Corporate?
Examples of Actual WorkOut Goals 3 of 3
Your Entry Points to the WorkOut Process:
Complete roll-out and delivery using our consultants.
Internal Capacity Building for organizations that want us to train their internal resources to conduct WorkOuts.
WorkOut In a Box for organizations that have significant experience facilitating improvement initiatives and are looking for our initial guidance and our detailed materials.
Examples of WorkOut Outcomes
GE Superabrasives, looking for productivity gains in their manufacturing process, pulled the engineering and manufacturing functions together in a WorkOut to reduce cycle time on one manufacturing process by 34% in 90 days.
L.L.Bean employed WorkOut to increase efficiencies in their warehouse operations. The result was a 20% reduction in damaged goods, the implementation of a new warehouse transition system installed without customer service interruptions, and an increase in accuracy of warehouse picking of .25% during peak season.
An international consumer goods company increased sales by $500,000 annually during its first WorkOut session by figuring out how to sell to and through their own businesses.
“ The Workout team submitted seven recommendations that will make us much more efficient and effective. The best part is that the issues addressed will not only save us time, but will also save the General Managers time.
The time saved by making the changes in our work will ultimately save approximately 19,000 labor hours over the course of the year.”
– Manager of Internal Audit,
Multi State Retailer
A steel company used WorkOut to reduce errors in order shipments by 15% and significantly increase response time to customer complaints. A nation-wide bank used WorkOut to integrate two disparate compensation systems into one during a merger process.
A financial business’s WorkOut team recommended they send auto leasing customers only summary reports of monthly usage. When all the savings from this one WorkOut recommendation were totaled: paper, postage, computer time, labor, customer service time, it amounted to over $100,000 in annual savings.
“ When we need to cut cycle time, we go to the people who manage the process and those around them. We don’t tell them how to do it. We give them a STRETCH goal then we say: Do a WorkOut, and come up with an answer.” – GE Manager
WorkOut creates the spirit of the start-up firm. Different levels and functions work together. Issues are debated in the spirit of what will be best for the overall organization. Decisions are made quickly, in an interactive forum where everyone can participate and have a voice. And people are empowered to implement solutions quickly. “ GE Work-Out” McGraw-Hill 2002