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The	
  Story	
  of	
  a	
  Process	
  Centered	
  Organiza6on	
  
Webinar	
  Roundtable	
  Discussion:	
  	
  July	
  22,	
  2015	
  
With	
  Butch	
  Peterman	
  and	
  
Tanya	
  Patrella	
  	
  
Manufacturing	
  with	
  Heart	
  
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
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
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
Background
TEAM
INDIVIDUAL
LINKS
ORDER SHIP
Manufacturing with Heart, Inc. Copyright 2015
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
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
Trust in People
Organizational Structure was Limiting
Manufacturing with Heart, Inc. Copyright 2015
Tipping Point
November 14, 2001
Changed from hierarchy to
process-centered organization
Manufacturing with Heart, Inc. Copyright 2015
Classic Corporate Structure
Vice President
CEO
Manufacturing with Heart, Inc. Copyright 2015
Classic Corporate Structure
Vice President
CEO
Manufacturing with Heart, Inc. Copyright 2015
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
Process Engineers
+
Coaches
Dual Servant Leadership
Model
Manufacturing with Heart, Inc. Copyright 2015
PROCESS
is where you do your tasks
Each Process has a
PROCESS ENGINEER
Manufacturing with Heart, Inc. Copyright 2015
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
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
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
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
Individual Associate Development Plan (IADP)
Company & Process
--Tasks, Expectations & Behaviors
Associate Responsibilities
Manufacturing with Heart, Inc. Copyright 2015
Business Process & Communications Flow
SUPPORT
PRODUCTIONMARKETING PRODUCT
ENGINEERING
Manufacturing with Heart, Inc. Copyright 2015
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
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
Problems along the way…
Some couldn’t make the transition
Titles & Authority
Process Owner
Task Expert
Manufacturing with Heart, Inc. Copyright 2015
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
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
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
Questions?
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	
  
Con8nue	
  the	
  Discussion	
  Online	
  
LinkedIn Discussion Groups
1.  Process:	
  	
  Business	
  Process	
  Roundtable	
  
2.  Enterprise:	
  	
  ConInuous	
  InnovaIon	
  
3.  Individuals:	
  	
  Change	
  Agents	
  in	
  AcIon	
  
For	
  More	
  InformaIon	
  
FCB	
  Partners	
  
	
  
Lindsay	
  Field,	
  Program	
  Director	
  
617	
  245	
  0265	
  
lfield@fcbpartners.com	
  

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FCB Partners Webinar: The Story of a Process Centered Organization

  • 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
  • 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
  • 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