Behavior-Based Performance Excellence

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Behavior-Based Performance ExcellenceFuller, Jones & Associates, Inc. “A Radically Simple Approach to Improving Performance”

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Leading Enterprises …Identify and Avoid Unnecessary Costs Maintain Superior Levels of Customer Satisfaction Optimize Organizational PerformanceWhat Are the Barriers to Achieving the Above?

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What Are The Barriers To Success?Business flows (inputs)Performance indicators (outputs)System BarriersPeople and processMaterialInformationQualityCostTimeWaste Focus of LeanVariability Focus of 6s Inflexibility Focus of Theory Of Constraints Waste = High Cost Variability = Low Customer Satisfaction Inflexibility = Sub-optimization

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The Manifestation of Barriers “The Iceberg Analogy”Cost Of Poor Quality “Above The Waterline” ~5% of Operating Expense* Examples: Scrap Rework Downtime WarrantyCost Of Poor Quality “Below The Waterline” ~35% of Operating Expense* Examples: Incorrect Billing Improper Tools Lack of Training Overtime Unclear Requirements Absenteeism / Tardiness Lack of Process Accidents Does Your Organization Understand the Hidden COST of Poor Quality?* Philip Crosby & Associates Estimate

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What Choices Existed Before BBPE?Many Choices To Traditional Approaches, All Essentially The Same

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Drawbacks to the Traditional ApproachesMany Of The Drawbacks To 6s, Lean, etc Are Attributable To The Overemphasis Given To Sophisticated, Rarely Used Tools.Why Can’t You… Leverage existing people/practices Have management lead and train their employees Deploy in all areas at once, with focus on key problems Use your existing infrastructure Reduce problem solving cycles Generate results beyond traditional expectations Transform management and staff behaviors

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Responding to Industry’s Needs The Evolution of Performance Excellence (PE)This Evolution From Contemporary Tools To Progressive Behavior Change Is Achieving Greater Results In Shorter Time In All Areas

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The BBPE methodology contains two key components: Process Management: Changes leadership and management practice behaviors Process Improvement: Changes problem solving behaviors What is Behavior-Based Performance Excellence?

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The Behavior-Based Performance Excellence ModelBehavior-Based Process Improvement Review Performance And Identify OpportunitiesIdentify Key Process Leverage PointsDocument and Benchmark Process, Metrics & ObjectivesProcess Management ActivitiesProcess Improvement Activities

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Combining Process Creation and Process ImprovementImprove Existing Process/ProductDesign/Develop New Process/ProductMore Improvement Needed?YesMonitorNoSelectSignificantly New Feature / ProcessYesNo

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Behavior-Based Process CreationTypically Requires Only Basic Tools Such As Run Charts, Pareto Charts, 5-Why Analysis, Basic Stat, Simple DOE, etc

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Behavior-Based Process ImprovementTypically Requires Only Basic Tools Such As Run Charts, Pareto Charts, 5-Why Analysis, Value Stream, Risk Analysis, etc

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BBPE Optimizes Cost, Time, Effectiveness and DevelopmentProblem Solving EffectivenessTraining CostHighLowLowHighCycle TimeLong (months)Short (weeks)PDCA 7-Step 8D TOC Traditional Black Belt Six Sigma TrainingBusiness Process ReengineeringTraditional Green Belt Six Sigma Training Behavior-Based Performance Excellence TrainingLeadership / Organizational DevelopmentLowHighTraditional Lean Manufacturing Training

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BBPE Is Highly Effective Works Across the Enterprise Employees, Managers, Leaders all follow the same methodology BBPE permanently changes behavior and the way staff do their jobs each day Eliminates process waste and reduces variability Solves problems for the “last” time Identifies and develops future leadersBBPE Is Based On An Integration Of Best Practices From Leading Process Excellence Methods

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BBPE Enables More Rapid Leadership and Organizational Development Open minded, willing and able to change Data driven, process oriented Customer focused Must be able to teach, then learn, then teach and be an effective coach Consistently models winning behaviors BBPE Supports Organizational Transformation and Leadership Development:Skills And Traits Of Successful Leaders Include:Facilitates top-down and bottom-up change across the organization Identifies and develops the next generation of leaders Compliments other leadership development programs Leaders serve as the problem solving experts capable of leading and training their own team Problem solving behaviors demonstrated as part of their normal work activity

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FJ&A Experience Deploying Performance ExcellenceMany leading Fortune 100 and 500 Companies including: Lexar Media Lockheed Martin Cisco Systems Seagate Technology Extreme Networks Solectron Corporation GMAC Mortgage SonyBMG, USA Ingram Micro Logistics Arvato Services, Inc. Lawrence Livermore Lab PeopleSoft Sony Pictures Intuit Cholestech SonyBMG, International High Tech, Software, Medical, Finance, Defense, Entertainment, Manufacturing

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BBPE Success Stories – Achieving Results in 6-8 Wks , by Regular Staff as Part of Their Normal Work Improved Customer Fulfillment to 99.7% from 89% Conventional Wisdom: Most orders arriving were incomplete FJ&A approach showed missing information not an issue; equipment and timeliness of information were the major obstacles Reduced Cycle Time Avg, Variability & WIP 50% Conventional Wisdom: Testing equipment was a bottleneck, needed to purchase more equipment and hire more people FJ&A approach showed test equipment idle ~50% of the time; upstream product grouping and synchronization were the primary issues Reduced Complaint Mean Time To Resolution (MTTR) by 50% Conventional Wisdom: People not working hard enough or competent FJ&A approach showed no clear operational definitions for prioritizing, navigating and escalating issues Business Goal Returns Rate of < 12% from 19% Conventional Wisdom: Industry is too unpredictable to manage shipments FJ&A approach showed initial shipment sell-off highly variable but initial ship eventually consumed, and reshipments recreated exposure and very predictable

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Thank You! FULLER, JONES & ASSOCIATES, INC. www.fullerjonesassociates.com 4000 Pimlico Drive, Suite 114 Pleasanton, CA 94588 Tel: 866-479-4979 Fax: 925-931-0136 Dr. Howard T. Fuller Andrew M. Jones, MBA hfuller@fullerjonesassociates.com ajones@fullerjonesassociates.com Direct: 925-413-2255 Direct: 925-922-1225

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BackgroundDr. Howard T. Fuller: Corporate VP of Quality & Reliability – SanDisk Corporate VP of Quality & Functional Excellence – Solectron Corporation Corporate Director of Design For Six Sigma – Seagate Technology Manager, Process Improvement – LifeScan, a Johnson & Johnson Co. Adjunct Professor at San Jose State University ISE Ph.D. in Quality Engineering, M.S. in Math/Statistics Published over 25 papers in leading journals Andrew M. Jones, MBA: Director, Process Excellence - Intuit Director, Performance Improvement Office – GMAC Mortgage Sr. Manager, Business Process Development Group - Cisco Consultant, Reengineering & Change Management Office – Sony Pictures Sr. Examiner, Baldrige National Quality Program Six Sigma Program Manager, Master Black Belt MBA, International Business

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Last Updated: 8th March 2018

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