Adizes & Spiral Dynamics. “The value of an ‘Evolution vs a Revolution’ ”. The Integration Diagnosis.

Adizes & Spiral Dynamics.“The value of an ‘Evolution vs a Revolution’ ”.

The Integration Diagnosis.

First analysis. Integration process. January 2007

GST China

Old GST GST Saltillo, NVLF &

Headquarters

Cuinba – GST León

One Organization in different Lifecycles (Adizes)One organization in different v-Memes (Spiral Dynamics)

One same business logic? One same objective?

The integration contemplated the same path for all GST.

GST China

Old GST Headquarters

GST LeónGST Saltillo, NVLF.

One Organization in different Lifecycles (Adizes)One organization in different v-Memes (Spiral Dynamics)

One same business logic? One same objective?

Gst Inc

“The Company that I dream to work in”

1. Have you defined your personal vision?2. Are you really working in what your passion is?3. Which is the main reason to work for GST?4. Are you identified with the company?5. Do you fill integrated to the GST team?6. Does your personal objectives are aligned with those of GST?7. Do you think that in GST we live with the declared values?8. Do you know about the GST’s values?9. Do you think that we are working under the defined vision?9. What do you think is missing in the vision?10. Our meetings are constructive and productive?11. Do we respect the defined policies?12. What do you think about the GST’s mission?13. And 50 more questions….

All management positions answered all these questions, resulting in a focus plan.

Tools implemented.

“The Evolution of one single

logic and language”.

Tools implemented in the last 2 years.

• Business Process Followtrough (BPF).

• Balanced Score Card (one same metric)

MONTH Yr wk Fiscal wk Su M Tu W Th F Sa MONTH Yr wk Fiscal wk Su M Tu W Th F Sa

1 0 1 2 32 1 4 5 6 7 8 9 10 15 14 5 6 7 8 9 10 113 2 11 12 13 14 15 16 17 16 15 12 13 14 15 16 17 184 3 18 19 20 21 22 23 24 17 16 19 20 21 22 23 24 255 4 25 26 27 28 29 30 31 18 17 26 27 28 29 30 1 26 5 1 2 3 4 5 6 7 19 18 3 4 5 6 7 8 97 6 8 9 10 11 12 13 14 20 19 10 11 12 13 14 15 168 7 15 16 17 18 19 20 21 21 20 17 18 19 20 21 22 239 8 22 23 24 25 26 27 28 22 21 24 25 26 27 28 29 3010 9 1 2 3 4 5 6 7 23 22 31 1 2 3 4 5 611 10 8 9 10 11 12 13 14 24 23 7 8 9 10 11 12 1312 11 15 16 17 18 19 20 21 25 24 14 15 16 17 18 19 2013 12 22 23 24 25 26 27 28 26 25 21 22 23 24 25 26 2714 13 1 2 3 4 5 3 4 27 26 28 29 30 1 2 3 4

MONTH Yr wk Fiscal wk Su M Tu W Th F Sa MONTH Yr wk Fiscal wk Su M Tu W Th F Sa

28 27 5 6 7 8 9 10 11 41 40 4 5 6 7 8 9 1029 28 12 13 14 15 16 17 18 42 41 11 12 13 14 15 16 1730 29 19 20 21 22 23 24 25 43 42 18 19 20 21 22 23 2431 30 26 27 28 29 30 31 1 44 43 25 26 27 28 29 30 3132 31 2 3 4 5 6 7 8 45 44 1 2 3 4 5 6 733 32 9 10 11 12 13 14 15 46 45 8 9 10 11 12 13 1434 33 16 17 18 19 20 21 22 47 46 15 16 17 18 19 20 2135 34 23 24 25 26 27 28 29 48 47 22 23 24 25 26 27 2836 35 30 31 1 2 3 4 5 49 48 29 30 1 2 3 4 537 36 6 7 8 9 10 11 12 50 49 6 7 8 9 10 11 1238 37 13 14 15 16 17 18 19 51 50 13 14 15 16 17 18 1939 38 20 21 22 23 24 25 26 52 51 20 21 22 23 24 25 2640 39 27 28 29 30 1 2 3 53 52 27 28 29 30 31

MONTH Yr wk Fiscal wk Su M Tu W Th F Sa MONTH Yr wk Fiscal wk Su M Tu W Th F Sa

Special events Daily operationMonthly closure. Review of the hide purchasing program & Operations &Planning Key measure meetingReview the results of the quarter Daily: Sales & Inventory report of last day.Monthly Mgrs POC (Participative Org Conduit) Expenses Budget control (Monday or Tuesday)Conference Management Financial Biz ReviewStrategy Operation for FY-09

THIRD FISCAL QUARTER FOURTH FISCAL QUARTER

Mar-09

Sep-09 Dic-09

Jul-09 Oct-09

Ago-09 Nov-09

May-09

Ene-09

Feb-09

Jun-09

Abr-09

FIRST FISCAL QUARTER SECOND FISCAL QUARTER

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• Intranet.

• Open communication. Summary week operation report to all levels of the company.

Tools implemented in the last 2 years.

• Planning sessions by quarter and one annual.

• Best practices from the industry. TPS implementation.

• Training, training, training, training….

Tools implemented from Adizes’s methodology .

1. PAEI

2. CAPI

3. PIPs & Patterns

4. Syndag

5. Lyfe Cycle

6. POC

PIPS

PATTERNS

SYNDAG

POCSYNEREQUIPOS

LIFE CYCLE

CAPI

PAEI

Tools implemented in the last 2 years.

• GST Way “in process”. • People activities.

1. Open House2. Day of the Family3. Christmas party4. Fireman training.5. HR Key Indicators.6. Best place to work.7. Safety conditions.8. 5S9. Football10. Baseball11. Etc.

e-POC

In:New projects.(description, capi, etc)Update of savingsChampionsOpen & close of projectsTarget datesScopeConsecutive number project

Save:PresentationsAudit commentsPOC comments and next date presentationAccumulated savings. ActualExecution

Advantages:One system.Everyone can work at the same time. No ExcelOne data base.Standardize process, rules & policies.Knowledge data base.

One data base for

CI Projectsin all GST

SCO CIP SALTILLO CIP

NVLF CIP LEON CIP

Reports: Tracking by project

Reports: Tracking by champion

Reports: Tracking by metrics

Reports: Tracking by savings

Reports: Tracking by kind of project

Etc...

CHINA CIP

e-POC

BU: GST MEXICO Location/Plant: Process: Process owner: Fiscal Year: 2009

Project number Project Status Target Date

Investment required usd (´000)

YTD Actual Cost (Last Fiscal Year '000)

Estimate annual cost savings usd ('000)

Metrics Unit Measure

Account # (Savings reflected)

Numbers in '000 Oct-08 Nov-08 Dic-08 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

Investment - 25 100 - - - - - - - - - - - - Investment -$ Forecast - - - 7 13 13 13 13 13 13 13 13 13 13 13 Forecast 149$ Actual - - - - - 20 - - - - - - - - - Actual 20$ Investment - - - - - - - - - - - - - - - Investment -$ Forecast - - - - 7 7 7 7 7 7 7 7 7 7 7 Forecast 73$ Actual - - - - - - - - - - - - - - - Actual -$ Investment Investment -$ Forecast Forecast -$ Actual Actual -$

Total USD: 133$ -$ 148$ Month Invest - 25 100 - - - - - - - - - - - - Total Investment -$

*All numbers in '000 Month Fcst - - - 7 20 20 20 20 20 20 20 20 20 20 20 Total Fcst 221$ Month Actual - - - - - 20 - - - - - - - - - Total Actual 20$

Project # Comments & Actions: (all behind's project require a comment) -91% % Actual / Fcst20$ Total net (In-Act)

LEON U-TEN & SOUTH PULL SYSTEM GAMALIEL RODRIGUEZ

Status

2009 Savings

GST AUTOLEATHER

LUTEN-00001

U-Ten T 1-Oct-09 $ 133 $ - $ 70 6601 - FACTORY SUPPL USD (USD)

LUTEN-00002

South Pull System. Active Inventory level reduction T 27-Feb-09 $ - $ - $ 79 6338 - SECURITY SVCS,

6659 - INTERPLANT FREIGHT

USD (USD)

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GST Analysis nowdays. (June-09)

Old GST HeadquartersGST China

GST LeónGST Saltillo,

NVLF.

80% of GST’s earnings are produced by GST Mexico, at the same lifecycle and same vMeme Headquarters still defining their essence. China still growing.

Old GST practices almost disappear. CEO has a company focused.