Join Butch Peterman, CEO at Abrasive Technology, and his colleague Tanya Patrella as they describe their 20-year journey to a Process-Centered Organization. They'll take us back to 1995, when they first met Michael Hammer and adopted his ideas about business process design. Abrasive Technology is a midwestern success story, a U.S.-based global manufacturer of super-abrasive grinding wheels and tools that has continued to thrive while others lost ground to offshore competitors. Peterman and Patrella attribute the company's sucess to process management along with heart culture, a business philosophy that brings together the interests of associates, suppliers, customers, and community.

1. The
Story
of
a
Process
Centered
Organiza6on
Webinar
Roundtable
Discussion:
July
22,
2015
With
Butch
Peterman
and
Tanya
Patrella
Manufacturing
with
Heart

2. CBN CLEARANCE CONTROL
• HISTORY, MARKETS, FACILITY, FUTURE
• Rolls-Royce
• October 22, 2012
The Story of a
Process-Centered
Organization
Manufacturing with Heart, Inc. Copyright 2015

3. Gallop Reports
100 million people hate their jobs
Formula for Holistic Transformation
• Core Belief – People can be trusted
• Culture - Leadership & Everyone Development
• - Align Actions & Policies to Core Beliefs
• Organization - Process-Centered Organization (PCO)
• Technology - One, open, shared database
Manufacturing with Heart, Inc. Copyright 2015

4. Background
1971 to 1992
Abrasive Technology – the 1st 20 years
1992 Consciously Creating an Environment of Trust
1993 Move to the Work
Bi-Annual, Company-Wide Update Meetings
Lunches with President (small groups)
1994 Incentive Compensation Program
Associate Concept
1995 $2k Capital Funds per Department
Associate Involvement, Teams & Links
Manufacturing with Heart, Inc. Copyright 2015

5. Background
TEAM
INDIVIDUAL
LINKS
ORDER SHIP
Manufacturing with Heart, Inc. Copyright 2015

6. Background
1996 Leadership Development for Management Group
(Center for Creative Leadership)
Reengineering Seminar (Michael Hammer)
1997 Personal Development – All Associates
(MBTI, SBI, FiroB, Communications-101)
Visual Manufacturing System
(One, open, shared database)
Manufacturing with Heart, Inc. Copyright 2015

7. Background
1998 Customerize With PRIDE
(Personal Responsibility In Daily Efforts)
2001 Order Fulfillment Associates have a Task Priority Report
for daily work schedules
Focus on the use of Language
Manufacturing with Heart, Inc. Copyright 2015

8. Trust in People
Organizational Structure was Limiting
Manufacturing with Heart, Inc. Copyright 2015

9. Tipping Point
November 14, 2001
Changed from hierarchy to
process-centered organization
Manufacturing with Heart, Inc. Copyright 2015

10. Classic Corporate Structure
Vice President
CEO
Manufacturing with Heart, Inc. Copyright 2015

11. Classic Corporate Structure
Vice President
CEO
Manufacturing with Heart, Inc. Copyright 2015

12. BUSINESS PROCESS ORGANIZATIONAL CHART
COACH CENTER
OF
EXCELLENCE PROCESS PROCESS
ENGINEER
ASSOCIATE
DEVELOPMENT
AND
RESOURCES
COMPLIANCE
FINANCE
INFORMATION
TECHNOLOGY
MRP
QUALITY
ASSURANCE
MACHINING
ASSEMBLY
FINISHING
MARKETING
SALES
CUSTOMER
SERVICE
RESEARCH,
DEVELOPMENT
&
ENGINEERING
PRODUCT
ENGINEERING
BUSINESS
STRATEGY
BUSINESS
LEADERSHIP
ADMINISTRATION
PRODUCTION
CUSTOMER
COMMUNICATION
ENGINEERING
Manufacturing with Heart, Inc. Copyright 2015

13. Process Engineers
+
Coaches
Dual Servant Leadership
Model
Manufacturing with Heart, Inc. Copyright 2015

14. PROCESS
is where you do your tasks
Each Process has a
PROCESS ENGINEER
Manufacturing with Heart, Inc. Copyright 2015

15. Process Engineer Tasks
• Define & monitor process metrics for throughput, productivity,
cost and quality that balance the needs of Associates, Company
and Customers.
• Teach and coach team members on the process
• Assess, monitor and evaluate performance on process tasks
along with the coach according to the IADP Process
• Continue to analyze and communicate the current and future
needs of the process
• Work with other process engineers and teams to align processes,
resources and capital with the goals of Business Strategy
• Understand the PCO and be able to facilitate learning of the
cultural system to all associates
• Develop actions to meet annual Business Roadmap and goals
Manufacturing with Heart, Inc. Copyright 2015

16. CENTER OF EXCELLENCE
is your skill base
where you find support for:
- individual development
- best practices, and
- training for similar skills
Each COE has a COACH
Manufacturing with Heart, Inc. Copyright 2015

17. Coach Tasks
• Know, Understand, Support & Assist the implementation of short-
term & long-term business strategies for Associates
• Document problems and support resolutions of conflicts
• Hire, Assign & Separate Associates as Process Teams require
• Coach, Counsel, Support, Build Relationships, Inspire, Educate,
Provide Training, Mentor and Discipline with input from Process
Engineer
• Work with PE's and Associates to develop & monitor Individual
Associate Development Plans (IADP) in line with Business
Strategy & Process Goals as defined by the IADP Process
• Continually work to support and improve understanding of Human
Resources guidelines and compliance
• Understand the PCO and be able to facilitate learning of the
cultural system to all associates
• Develop actions to meet annual Business Roadmap and goals
Manufacturing with Heart, Inc. Copyright 2015

18. Business Strategy Process
Determine strategies for changing global conditions
affecting the Company
Sustain:
Core values, vision, mission and objectives
Sound business strategies
Viable Leadership, Organizational Structure and Culture
Strong core capabilities
Direction, alignment, and commitment across the
company
Move the organization toward interdependency
Manufacturing with Heart, Inc. Copyright 2015

19. Individual Associate Development Plan (IADP)
Company & Process
--Tasks, Expectations & Behaviors
Associate Responsibilities
Manufacturing with Heart, Inc. Copyright 2015

20. Business Process & Communications Flow
SUPPORT
PRODUCTIONMARKETING PRODUCT
ENGINEERING
Manufacturing with Heart, Inc. Copyright 2015

21. Business Process & Communications Flow
AD&R
Machining>Assembly>FinishingMarketing, Sales &
Customer Service
Product
Engineering
BUSINESS STRATEGY
QUALITY ASSURANCE
COMPLIANCE
IT MRP
FINANCE
RD&E
Manufacturing with Heart, Inc. Copyright 2015

22. Collaborating for the Future
Today is the beginning of a never-ending journey
Everything is not “ready” on purpose
YOU can help define the future of the organization
YOU can be a part of the change process
Manufacturing with Heart, Inc. Copyright 2015

23. Problems along the way…
Some couldn’t make the transition
Titles & Authority
Process Owner
Task Expert
Manufacturing with Heart, Inc. Copyright 2015

24. Results from PCO Implementation and
Culture Development
Key Business Metrics Improve
Annual Productivity up 5% to 10%
Annual Incentive Compensation Bonuses up to 20%
Annual Customer Complaints down 5%-10%
Voluntary Turnover down 75%
Cultural Improvements
Associates more involved in daily decision-making
Greater engagement, collaboration and accountability
More flexible, agile and innovative environment
More smiles & a strong sense of community
Cultivated a positive and productive workplace
Manufacturing with Heart, Inc. Copyright 2015

25. Evolution Continues
Meeting the Needs of the Diverse Workforce
Shaping the World Around You
AT University
Social Media / Videos
- External: Telling the story (products/applications/use)
- Internal: Intranet / Training
Learning Center
Sustainability Process
Work-Life Balance Process
https://www.youtube.com/watch?v=eHehZOJ54vM

26. Core Belief - People can be trusted
Culture - Leadership & Everyone Development
- Align Actions & Policies to Core Beliefs
Organization - Process-Centered Organization (PCO)
Technology - One, open, shared database
Manufacturing with Heart, Inc. Copyright 2015
Formula for Holistic Transformation

27. Questions?

28. Upcoming
FCB
Courses
and
Events
Event Description
Process
Redesign
A
comprehensive,
four-­‐day
Hammer
Cer;fica;on
class
on
business
process
redesign
Boston,
September
15-­‐18
Reengineering
Innova8on
A
three-­‐day,
advanced
course
on
building
the
key
processes
that
can
deliver
a
steady
stream
of
breakthroughs
Boston,
September
16-­‐18
Process
Owners
in
Ac8on
A
three-­‐day
Advanced
Cer;fica;on
class
on
business
process
management
for
process
owners
and
those
in
similar
roles
Boston,
September
16-­‐18
Power
of
Process
A
two-­‐day
Hammer
Cer;fica;on
class
on
process
frameworks
and
methods
Boston,
November
16-­‐17
Leading
Transforma8on
A
three-­‐day
Hammer
Cer;fica;on
class
on
process
governance
and
based
on
the
PEMM™
process
maturity
model
Boston,
November
18-­‐20
Master
Class:
Measurement
A
one-­‐day
advanced
Master
Class
(sea;ng
is
limited)
Boston,
November
18
Adop8on
of
Fast-­‐Cycle
SoFware
Processes
A
two-­‐day,
best-­‐prac;ce
sharing
event,
hosted
by
Na;onwide
at
their
Columbus,
OH
Headquarters
September
9-­‐11

29. Con8nue
the
Discussion
Online
LinkedIn Discussion Groups
1. Process:
Business
Process
Roundtable
2. Enterprise:
ConInuous
InnovaIon
3. Individuals:
Change
Agents
in
AcIon

30. For
More
InformaIon
FCB
Partners
Lindsay
Field,
Program
Director
617
245
0265
lfield@fcbpartners.com