Mission Control Objectives - Lean Frontiers · – Business strategy and lean transformation are linked ... Tax, Support Leg al , T rea sure r) HR (re ... Defect F ree Customer Escapes:50%

1

Mission Control Objectives

To Support the Watlow teams (Value Streams & Functions) in achieving their strategic intent.

To provide clear strategic direction and alignment throughout WatlowTo provide clear strategic direction and alignment throughout Watlow

To assure the achievement of the company's long term strategy.

To support executive level governance and internal process controls.

To guide the on going application of the WatlowWay for strategic change

h e a t e r s | s e n s o r s | c o n t r o l l e r s

To guide the on‐going application of the Watlow Way for strategic change.

To disseminate related institutional learning throughout Watlow.

To take timely action to resolve systemic issues & problems that impede the company's teams.

Definitions• True North

St t D l t SD

P – People : Engaged, Enabled and Purposeful

Q – Quality: Defect Free

D – Delivery: On Demand

C – Cost: Waste Free

G – Growth: Best Value to the Customer

Strategy• Strategy Deployment – SD– Converting strategy to action and flowing it down

into the organization– Business strategy and lean transformation are linked

through STRATEGY DEPLOYMENT

• Box Score – Holistic Method of keeping score– PQDC (True North); Capacity; Financials

• Bowling Chart% of Time Spent

Executive

VSL

PTL

Floor

StrategyDeployment

Breakthrough (Kaizen)

DailyImprovementTrue North

StrategicChangeSD


Bowling Chart– Quick view of progress toward strategy deployment goals

• TPOC– Process used to manage our transformation and insure that we are executing our “transformation the right way”

• Recipe Card– Standardized work

2

Lean As A System


Mission Control Philosophy

ListeningPost

Plan Do Check Act

Enterprise Mission Control Visual Board

1 2 543

Enterprise Mission Control Visual Board

PLAN Section Philosophy:Defines a standard process for running regular review of Enterprise progressDrives effective alignment of focus (vital few) across the enterprise by clarifying Enterprise direction.Integrates action for Spaces,

DO Section Philosophy:Provides a convenient location to find and review current information and progress toward completion of any mission level project.Primary focus of the “DO” section is not to manage the project but to;

Check Key Points/Philosophy• Confirm adherence to True North and Enterprise strategy• Check True North metrics, sales, Operations and financial results Across LOB’s and Enterprise•Validate and confirm systemicand Enterprise level issueshindering LOB performance

ACT Key Points/Philosophy:Address systemic, big and external issuesAddress ENTERPRISE processes and policiesManage strategy and

t k


g p ,Lines of Business, and Functions in a consistent direction. Makes linkages visual.Provides an “At-a-Glance” picture of the Enterprise Strategic PlansEmbodies a PDCA cycle for breakthrough, kaizen & daily improvements

project but to;Communicate what we are learning that can benefit many across the enterprise.Highlight situations where support, resources are neededProvides a visual “At-a-Glance” picture of current status of the A3.

hindering LOB performance• Check Lean KPI’s – are wemeeting expectations

emergent work as new information becomes availableCapture and reflect ENTERPRISE learning’s

3

Listening Post

Internal IssuesFunnel Trends

External Issues Human Capital Issues

Market UpdatesLegal/Legislative Issues


Economic Trends

Competitive Updates

Market Updates

Customer Updates

Economic Trends

12/12 Rates-of-Change

40

60Sales

40

60IndexWatlow to Worldwide Semiconductor Shipments

0

20

0

20

h e a t e r s | s e n s o r s | c o n t r o l l e r s-40

-20

'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14-40

-20

Sales Index

Growth around 20% for the next couple of years.

4

Listening Post – Competitive Update Example


T ask Numb er Co mpl ete Date Owne r CE O (re prese nts the B OD) P res id en t GM & S p ace L ea ders De man d Creation

S ale sDem and Cre ation

Marke tin gDema nd Crea tio n

T ech no log yGlob al Op era tio ns

Con tro l le r

CFO (repre sen ts Fin anc e, COI , T ax , Leg al , T rea sure r)

HR (re pre sen ts HS &E) Qu al i ty & S C IT Con su ltan t Di recto r o f COI MARCOM Va lu e S tre am

Le ade rsBus in es s Un i t

Co ntro llers P rod uc t Ma nag ers S ta nda rdi zed W ork

1-1 E ls alaym eh E nte rprise P ortfol io As ses sme nt

Deve lo p En te rpris e S pa ce Mod el

1-2 P hi l l ip sE nterp rise S tra tegy

Refle ction a nd Refresh

S trate gy Depl oym ent X-Ma tri x - L ef t si de &

B reak th roug h Goal s. P P T St rateg y

El eme nts Su mmary S li de

1-3 E ls alaym ehEn terp ris e Bo xs co re

F ina ncials Reflec tio n an d Refresh

B oxs core; De vel op p ro ces s fo r

T rue North Dia lo gue

1-4 S . De slog eE n te rprise Bo xsc ore Tru e North Reflec tio n

a nd Re fre shB ox score

1-5 S . De slog eW atlow Wa y

Reflection and Refres h

Wa tl ow Way A 3 Inco rp orate W at lo w B usi ne ss Sy stem

1-6 S . De slog eE n te rprise W atch

Me trics Ev alua te a nd Refres h

S trate gy Depl oym ent X-Ma tri x

Aug us t 17 L aMa ntia E n te rprise S trateg y De vleop me nt Re view

De vel op p ro ces s fo r tas k

P hase 1 Freeze Point

In pu t: W atlo w Way , E n te rprise Bo x Sc ore , S p ace L ea rning , P o rtfo lio Ass ess men t

Loc k: Lev el 1 (5 ) y ea r s trate gie s; True North Metric s &

Targe ts; Ente rpris e Boxs core ;

(5) ye ar s trae gic s: UnLoc k:Dra ma tic new lea rnings or ev ents that ha s s igifica nt

impa ct to W atlow's EVA fore ca st

Out put: Left Side of X-Box ; Ente rprise Box s core ; Strategic Targets 5 ye ar goals; Mis sion A3; True North; Learnings (W ha t we lea rned? W hat do we need to lea rn?)

2-1 Las t W eek of Februa ry & August Phillips

Ente rprise VSA

V S A Rece ip e Ca rd Dev elo p Rece ip e Ca rd

fo r E VS A

2-2 (2 ) wee ks a fte r comple tion of EVSA Phillips A3 Completion

A3 Re cei pe Card . De fi ne Mi ss ion A3 (pe opl e, purpo se,

proc ess )

2-3 (1) week after A3 c ompletion Els alaym eh

Boxsc ore Financial Flow Down for LOB's

and Spa ces


2-4 (1) week after A3 c ompletion S. De sloge

Boxsc ore True North Flow Down for LOB's

and Spac esDe vel op p ro ces s fo r

tas k

Se pte mbe r 1 7 LaMa ntiaLev el 1 Strategy

Deploym ent, A3 's , Boxsc ore Flow Re view



Input: Strategy Re fre sh, Space Lea de rs: Approved Space Plan to W in; Ke y proces s nee ds .

Lock : (1 ) Ye ar Box sc ore , Ta rget (5)

y ea r Box sc ore Un-Loc k: Catc hba ll

Proc es s

Out put: 6-12 month Strategic A3's; Metrics ; Spa ce a nd LOB Boundries; Le arnings ; Com pleted Le vel 1 X-Box ; Complete d Ente rprise Box Score Flow-down: Fina nc ia l Vision & Minimums; True North

3-1 (3) wee ks after Se pte mbe r 1 7 Schloe mann Sp ace Pl ans (Pl an-

to _Win )

Deve lop catchb al l proc ess .

De vel op Res ource Li nka ge Map fo r

S pa ce, LOB , Reg ion

3-2 Phillips Stra tegic Ma rketing Pla n Refresh

3-3 (2) week s after Ta sk 3 -1 Schloe mann LO B P lan s (P roduc t Pl an- to-Win )

De vel op L OB Pl an Conten t (e.g. Mktg vs

LCM P lan v s Fo otprin t. Upd ate P ro duc t P la n

Co ntent (e.g. P rod uct , Tec hno lo gy and L CM

3-4 (1) week a fte r Tas k 3 -3 Merrym an Regiona l Pla ns Deve lop : DC P l an Fo rma t

3-5 (1) week a fte r Tas k 3 -4 Smith Func tional Pla n De vel op : F unc ti on al P lan F orma t

3-6 (1) week a fte r Tas k 3 -5 Els alaym eh Forec ast , F inancial, Capita l Roll-up

De vel op: Integra te Bo xsco re, Ca pita l &

V SM

3-7 (1) week before Nove mber 1 Phillips Collection of

Portfolio Conflic ts , Gaps or Jump Balls

Deve lop : P roce ss

3-8 Nove mber 1 LaMa ntia Dema nd Crea tion, LOB, & Spa ce Pla n Catch Ba ll

Eve nt


Input: Unre solv ed Portfolio J ump Ba lls , Product Plans, Lev el 2 Strategy Deployme nt X-M atrix , Portfolio Pla n, All Output Pla ns , Fina ncia l Roll-ups

Lock: Le ve l 2 SD & Exe cutiona l Pla ns UnLoc k: Catchball Proces s

Out put: Lev el II Box sc ore, Le vel II SD, Miss ion A3's, Re gional D.C. Pla ns, Resourc e Plan, Approve d Product Plan, Func tiona l Pla ns , Capita l Pla n,

Dec ember 17 Va lue Stre am Le ader Va lue Stre am Pla n Rev ie w


Loc k: Lev el 3 SD & Exec utional Plans

Un-Loc k: Ca tchball Proce ss

Out put: Le vel III Boxsc ore , Le ve l III SD, Miss ion A3's, Res ource Plan, Capita l Plan

Monthly Miss ion Control Chec k & Act Review

De ve lop, Deploy , De liv e r the

Strate gy

Completion Da te: Completion of

Cy cle; Boxs core at ev ery le ve l

SupportCore TeamCus to mers

Boundry Sta tem ent: Sy ste m of Proce s se s to de ve lop, de ploy, and de liv er the

stra tegy - s equence and tim ing.

Purpos e of Re vie w: Alignm ent and Link age to Strate gy , Ris k Ma na gem ent,

Le arnings , Ne ed to Le arn, Enter pris e Portfolio Impac t, Ca pac ity & Contstra ints Ma na gem ent, Re vie w is Form al, Go/No-

Go, Chec k lis t for nex t s tep nee ds

Purpose of Loc k & Un-Loc k: 'G o' and 'Loc k ' a re in ta nde m, 'Un-loc k' sta nds

alone a nd oc curs afte r 'Go & Lock .' Pr ov ide s gov e rna nce a nd direc tion.

Esta blishe s Comm itm ent. Addres s es dra ma tic new le arnings a nd new

e ve nts that impac t Wa tlow's EVA Fore c as t.

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● 2

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5 Q ua lity : De fec t Fr ee Cus tom e r Es ca pes : 5 0% Reduction in PPM

6 On De m and

7 Cos t: Was te Fre e Inv entor y: 25 % Re duc tion in Day s Of Supply

8 Pr oductivity : 1 2% Improve me nt in Sa les /FTE

○ 9 G row th: Bes t Value To The Custome r Rev enue: $3 47 Million

sR es erved. The S imp ler Bu sin ess S yste m ® 11. 0

Re dep loy F re ed U p R es ources t o Su ppo rt De lca re d Spa ce and T arget ed C ust ome rs

De fi ne , De pl oy and B asel in e th e W at lo w Org ani zat io n De velo pmen t Sy ste m

Le adtime s: 2 5% Reduction in OED

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Est ab li sh MDI (model ) S pac e & St rat egi c Val ue S trea ms T hat fl ow Cus to mer-t o-C ust ome r (produ ct & i nf ormat io n)

De vel op Pro of of Co ncep ts (P OC ) w hi ch al ig n to E nt erpr ise R oa dmap & B reakt hrou gh So lu ti on R even ue goa l

Gro w t o $500 M by ach iev ing #1 o r #2 l ead ershi p posi ti on i n ta rg et ed spa ces

$15 0M re venu e from new break th ro ugh so lut i ons

Cre ate c apac it y to grow b y u sin g Wat lo w Bu sin ess S yste m (W BS ) t o achi eve 1 2% annu al prod uct iv it y i mprove ment

Al l pe opl e achi eve d L evel 4 by bei ng eng age d in t hei r pe rsona l deve lo pment

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Improv ement I ni ti at i ves

5 year S t ra teg ic I ni t it at ive s

1- year B re akt hroug h

Ob jec ti ves

P rimary S econ dary

Me asures and t arget s

WHAT

How Far

How

How Much & When

Reg istered User:Subst it uted Semi Phr asing of ' what '

R egi stered U ser:Ad ded ' by 2 012'

Enterprise Mission Control PLAN1 PLAN Section Content a Standard Work Documents- Enterprise Strategy Vertical Value Stream- Enterprise Hoshin Flow Down Diagram- Watlow Business System visualb Strategy- True North future state & metrics- 2015 Future State- Watlow Overall Strategy- Future State Box Score

True North MetricsValue Stream Employee CapacityFinancial PerformanceProjects Capital SpendingIllustrates Census expectations

c Strategy Deployment- Hoshin Level 1 matrix- Hoshin Level 2 matrixes for Spaces, LOBs, and

Functional areas2 PLAN Section Activity- Conduct a high level overview of plan to

assure all participants are aligned.- Review any Enterprise Strategy vertical value

stream driven updates or freeze point

PLAN Section Philosophy:Defines a standard process for running regular review of Enterprise progressDrives effective alignment of focus (vital few) across the enterprise by


stream driven updates or freeze point changes

- Participants: Executive Team; Fiunctional Leaders, invited guests

- Objectives: alignment of organization to strategic intent

- Inputs: annual Strategy Deployment outputs; 5-year strategy direction; WBS

- Outputs: Respond to the following;What changes to our strategy occurred as a result from last month’s Mission Control Freeze/Unfreeze process?

g ( ) p yclarifying Enterprise direction.Integrates action for Spaces, Lines of Business, and Functions in a consistent direction. Makes linkages visual.Provides an “At-a-Glance” picture of the Enterprise Strategic PlansEmbodies a PDCA cycle for breakthrough, kaizen & daily improvements

Process Owner: Director of Continuous Operational Improvement

Responsible for Execution: President

5

Level 1 SD

Level 2 SD


9

● 6 ● ● L2

● 5 ● ● ● A3

● 4 ● ● A3

● 3 ● ● A3

● 2 ● ● L2

● 1 ● ● ● ● ● L2

2011 Level 1 Hoshin Planning

Develop and Implement the Watlow Lean NPD System

Establish MDI (model) Space & Strategic Value Streams That flow Customer-to-Customer (product & information)

Develop Proof of Concepts (POC) which align to Enterprise Roadmap & Breakthrough Solution Revenue goal

Redeploy Freed Up Resources to Support Delcared Space and Targeted Customers

Define, Deploy and Baseline the Watlow Organization Development System

er

Position Spaces to double revenue by 2012

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Objectives

Primary Secondary

Measures and targets

How Far

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How Much & When


● 1 Establish Inspiring Vision Statement

● 2

● 3 People: Engaged, Enabled, Purposeful Survey: Increase in Survey Results

● 4 (% Improvement TBD)

5 Quality: Defect Free Customer Escapes: 50% Reduction in PPM

6 On DemandDelivery: Leadtimes: 25% Reduction in OED

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Grow to $500M by achieving #1 or #2 leadership position in targeted spaces

$150M revenue from new breakthrough solutions

Create capacity to grow by using Watlow Business System (WBS) to achieve 12% annual productivity improvement

All people achieved Level 4 by being engaged in their personal development

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6

Enterprise Mission Control DO1 DO Section Content a Mission A3s

- Project A3s deployed from Hoshin Level 1 Matrixb Other A3s

- Functional / Mission A3 deployed from Hoshin Level 2 Matrix

-

2 DO Section ActivityEnterprise TPOCC

1c1c2 DO Section Activity- Conduct a high level overview of plan to assure

all participants are aligned.

- Participants: Executive Team; Functional Leaders, invited guests

- Objectives: provide up-to-date information resource for mission & project A3s

- Inputs: annual Strategy Deployment outputs; 5-year strategy direction; WBS

- Outputs: Response to the following;What is the status of the A-3 (Red or green)?What has changed since last review? What has been learned?

DO Section Philosophy:Provides a convenient location to find and review current information and progress to ard completion of an mission le el project


What has been learned?Upon reflection, what have we learned or understood better from our review of this section?What changes need to be made to Strategy Deployment?

Should any SD Level 1’s be unfrozen?

and progress toward completion of any mission level project.Primary focus of the “DO” section is not to manage the project but to;

Communicate what we are learning that can benefit many across the enterprise.Highlight situations where support, resources are needed

Provides a visual “At-a-Glance” picture of current status of the A3.

Process Owner: Director of Continuous Operational Improvement

Responsible for Execution: President

Do

Level 1 A3


7

Level 1 SD A3 1: REASONS FOR ACTION 4: GAP ANALYSIS 7: COMPLETION PLAN

Description: Organization Development System

Sponsor: Peter Desloge

Site / Location:

Team Leader:

TeE

vent Date:

Value Stream ID:

Process Owner: Mike Goldman

Rev 8Revision:Steve Rhoads

7/18/2011C

urrent Date:

Enterprise

Sheryl Hicks Sensei:

Event Number:

• Hoshin Level 1 Strategic Initiative: All People Achieved Level 4 by Being Engaged in Their Personal Development by 2015

• Level 1 – 5 not well defined or understood• Lean cannot succeed without Leadership

This is a 12 month A3In Scope: Refining the Leadership Success Factors, How they

link to the Watlow Business System, How they would be used in the People Systems

Out of Scope: The infrastructure and detailed components of eachof the People systems (e.g. hiring and selection, performance management, succession planning, development, compensation, etc)

Look at Site TPOCS

2: INITIAL STATE 5: SOLUTION APPROACH 8: CONFIRMED STATE

*Steering Committee to meet the day after each session

am M

embers:

Competitive CollaborativeCriteria Focus is on self Focus is on others (systemic)

Frequency Rarely Sometimes Usually Mostly Consistently/Second NatureMotivation Extrinsic/Forced Accepting Believing Excited IntrinsicCapability Limited Aware Capable Improving ExcelsLevel 1 2 3 4 5

Coach, Teach, Mentor & Support

*Develops others when instructed to do so*Directs & assigns work*Command & control style*"Checks the box"*Limited understanding and command of tools and processes used for development

*Coaches for improvement*Understands the importance*Has rudiments of a development system

*Coaches for success*Actively develops others*Focus is on direct reports*Demonstrates an ability to ready others for additional responsibility

*Seeks out coaching moments*Enjoys the success of others*Proven ability to thoroughly develop people at multiple levels of the org

*Routinely coaches & teaches; formal and informal*Sees the development of others as indicative of personal success*Is sought out by others as a mentor

Go to Gemba to actively listen &

learn

*Goes to Gemba when told*Relies on reports (paper/computer)*Asks wrong questions (why is this red?)

*Knows where Gemba is (where value is created)*Understands the value of "go & see"*Recognizes the need to learn more*Focuses on KPI board

*Actively does work in Gemba*People in Gemba see value from his/her participation*Actively engages in problem- solving activities*Understands what questions not to ask

*Discipline & standard work established*Enjoys learning in Gemba*Understands "customer to customer" flow*Asks the right questions

*Constantly goes to where value is created*Driven to learn and improve daily*Captures and shares knowledge across the organization

Uses data to simplify/prioritize

to create & increase value

*Uses A3 tool when told to (rarely)*Relies on intuition*Uses data to justify position*Limited use of A3 thinking (PDCA)

*A3 tool used for obvious situations*Perceives A3 as a "tool"*Can fill out the boxes on an A3

*Regularly uses data to inform decisions*Uses PDCA thinking to add value*Able to assist others with the creation/refinement of an A3

*Engages teams with A3 thinking*Effectively translates data into value*Recognizes/uses the A3 to capture knowledge

*Consistently & effectively uses A3 thinking*Expects others to use PDCA to logically convert data to value*Uses and re-uses knowledge

Keeps/Meets Commitments

*Results are inconsistent and unsustainable; no plan*Meets commitments out of fear of consequences; urgency is situational*Delivers results without consideration of others

*Inconsistent results; has a plan but rationalizes missed commitments*Emphasizes control of information (need to know)*Unwilling to "pull the andon"

*Has a plan and works to meet it*Proactively informs others of variation to plan*Accepts responsibility*Executes plan without factoring in new information

*Adapts plan as new knowledge is availableWilling to pull andon as required; seeks input of others to problem-solve*Develops solid counter-measures

*Consistently meets commitments with sustainable results*Wants to be known as dependable and reliableEffectively executes plan; has proactive contingency actions*Holds self accountable to support the commitments of others

Actively uses the Watlow Business System (WBS) and the Watlow

Way

*Unfamiliar with the processes and flow of the WBS; relies on conventional planning tools*Standard work is implemented as a compliance effort*Uses WBS processes when convenient

*Utilizes some WBS tools/ processes to plan/execute work*Sees the flow and interconnections between WBS componentsCan utilize many WBS tools with assistance or facilitation

*Uses WBS tools/ processes to plan/execute work*Sees the the linkage between the WBS and sustainable results*Expects the use of WBS by team members but utilization is inconsistent; ability to coach others on utilization is limited

*Personal standard work is driven by the WBS*Sees the WBS as the only way to learn and improve self and others*Team members understand and use the WBS but are not able to coach others in its use

*The WBS is used as the way to plan and execute all work*All team members understand the WBS and seek out opportunities to mentor others in its use*The leader is able to improve and mature the WBS as required to meet customer expectations

Watlow Leadership Maturity Model• Leadership Model Framework developed but not encompassing and not tested

• Seven Success Factors and Levels of Maturity Defined

• Need “learn by doing” tests to see if it works

• Included in Level 1 SD– Semicon SD2, LOB Level 2s– Columbia Leadership

seeking to roll it into TPOC• Some starting to integrate into

Personal Dev A3’s• Direct linkage to Watlow Way but

lacks clarity• Not currently linked to the

People Systems

We have spent some time scoping the work required for the Leadership Success Factors and have decided we can accomplish the work in two meetings instead of four as we had originally planned. We may have to add a third meeting but it would not be until late 2011/early 2012 after we have input from the rapid experiments.

The dates we will be meeting are as follows:Tuesday April 5th and Wednesday April 6th from 8-5 in St. Louis• The focus will be on gathering core team input into the Success Factors. This

meeting will also include a review of Watlow’s 5-year strategy, as we will ask for the core team’s input into the best ways to link leadership development activities with specific company strategic challenges. Following this meeting, the core team’s input will be fed back to the steering committee and a final set of success factors will be locked down.

Wednesday, June 1st and Thursday, June 2nd 8-5 in St. Louis• The second core team meeting will focus on how we should communicate the final

set of success factors to the company as a whole and input on how we can align the factors with discrete HR procedures, such as performance appraisals.

Core team members role will be to provide voice of the internal customers and serve as change agents when the success factors are communicated and deployed within the company.


3: TARGET STATE: 6: RAPID EXPERIMENTS 9: INSIGHTS

2011 & 2012 Target State:

What went well? Engaging a cross functional/cross location team in the development of what good leadership looks like at Watlow

What helped? Utlizing a similar approach to that taken in the development of the Watlow Way

What didn't go well? Planning for four meetings and only needing two. Having to unfreeze the level 1 Strategy Deployment.

What hindered?

RECOMMENDATIONS FOR THOSE WHO FOLLOW!!o System o

1

2

3

4

5

6

7

8

9

p

Success Factor`Coach, Teach, Mentor & Support

Develops, supports and works through teams

Go to Gemba to actively listen & learn

Uses data to simplify/prioritize to create & increase value

Actively uses the Watlow Business System (WBS) and the Watlow Way


Creates a compelling case for the future state

Success Factor`Coach, Teach, Mentor & Support

Develops, supports and works through teams

Go to Gemba to actively listen & learn

Uses data to simplify/prioritize to create & increase value

Actively uses the Watlow Business System (WBS) and the Watlow Way


Creates a compelling case for the future state

Maturity/Development

CONTENT

NEEDS TO BE

CALIBRATED

AND TESTED

SUC

CES

S FA

CTO

RS

“Leadership Success Factors” vs Leadership Maturity Model 1. Resonates with leaders – what I need to do to succeed!2. Focus on the “factors” not on the “level X” label3. Supportive of…not redundant with Watlow Way Behaviors

We reviewed the implementation time line proposed by HR. The time line reflected the HR group’s evaluation of its capacity to assess and develop formal leaders under the project A3 in 2011 and 2012. The time line was approved and HR and CMA will coordinate the selection of assessment instruments and development activities for the ET pilot in 2011 and Phase 2 in 2012.

The type of leadership and culture that enables us to achieve our $500M goal by 2015 and beyond, Product Leadership and Number 1 or 2 in the declared market spaces (breakthrough objectives)Leadership Success Factors linked to People, Purpose, Process in support of Watlow Business SystemPeople Systems integrated to the Watlow Business System Model is vivid, part of the culture and sustainable and value added to employees. (need to address this longer term)

Business Goals, Tactics, & Metrics

Organization Structure

RecruitRetain

Select

CompetencyModel

Develop/Promote

Talent Review & Succession Planning

Talent Management

Manage Performance

LEADERSHIP SUCCESS FACTORS


The Linkage

How we work

together?

People + Purpose + Process

How we get there?

What we need to get

there?

The Watlow Journey

Where is our destination?

= Performance


People

TBD

Mission Control - Check

•Weekly CheckM thl Ch k•Monthly Check


8

Check – Weekly ReviewWeekly Performance Review

Agenda

Wednesday

7:15 AM CST – 8:30AM CST Every Week

Training Room A

• Financial Roll Up Corporate Controller 7:15 – 7:30

• LOB/Region Weekly Performance Review (SQDC & Financials) o Asian Delivery Ops Director – Asia

China 7:30 – 7:36 Singapore 7:36 – 7:42

o Europe Delivery Ops Director – Europe Kronau 7:42 - 7:48 UK 7:48 – 7:54

o Fixed Form GM STL Ops Director - ST 7:54 – 8:00 Hannibal Ops Director – Han 8:00 – 8:06


o Sensors, Richmond GM 8:06 – 8:12o Controls GM 8:12 – 8:18 o Flexible General Manager 8:18 – 8:24 o Mexico Rodriquez 8:24 – 8:30

Staff Meeting 8:45– 10:00am (may end earlier depending on the need) Safety Update 8:45 am Dryden Calendar 8:55 am LaMantia Info Sharing 9:15 am All (by LOB) Topic (if needed) 9:30am All PAC (if needed) 9:45 am LaMantia

Objective • “Check Weekly SQDC and Financial Performance• Insure that Countermeasures are in place when required• Share learnings

Weekly Mission Control


9

Weekly Mission Control (Cont) S t. L o ui s I n d ica to rs X X M o n th :

P e r fo rm a n c e M e a s u re P r io r M o W k 1 W k 2 W k 3 W k 4 W k 5 Q t r (F c s t) Y r (F c s t) Y r (A O P )

S a f e ty 2 .5 1 .8 1 . 8

Q u a l i ty (P P M ) 2 , 6 3 4 3 ,4 4 4 5 ,4 6 1 1 ,3 9 8 3 ,7 3 7 2 ,5 0 0 3 ,0 0 0 2 ,1 8 2D e l ive r y :

O T R - K e y & A d vo ca t e (% ) 7 8 .9 % 7 5 .7 % 7 7 .5 % 7 9 .0 % 7 6 . 4 % 8 5 . 0 % 9 2 . 0 % 9 2 .0 %

O T P - C o re & G e n e r a l (% ) 9 0 .1 % 8 7 .2 % 8 9 .5 % 9 0 .3 % 8 0 . 3 % 9 4 . 0 % 9 5 . 0 % 9 5 .0 %

O T R M o d if ie d S td Q u o te s (% ) 9 7 .0 % 1 0 0 .0 % 1 0 0 .0 % 1 0 0 .0 % 1 0 0 .0 % 9 5 . 0 % 9 5 . 0 % 9 5 .0 %

O T R C u st o m Q u o t e s (% ) 1 0 0 .0 % N /A N / A N /A 1 0 0 .0 % 9 5 . 0 % 9 5 . 0 % 9 5 .0 %

N D i G l ( % ) 1 1 6 % 0 0 % 0 0 % 1 7 % 1 5 %

Ope

ratio

ns

sch e e r i:R M A 38 51 7G ood ri ch / C A T43 P ie c esU n it s N ot B a ke d O ut

Site

SQDC

N e w D e s ig n s G e n e ra l ( % ) 1 1 .6 % 0 .0 % 0 . 0 % 1 7 % 1 5 %

P ro d u c tiv i t y ( $ ) $ 1 0 8 $ 1 2 3 $ 9 4 $ 1 0 8 $ 1 0 6 1 0 4 1 0 7 1 0 9

P a st D u e ($ ) $ 5 4 4 $ 2 8 9 $ 2 4 3 $ 2 8 3 $ 2 5 1 < $ 1 5 0 K $ 1 0 0 K $ 1 0 0 K

I n ve n t o ry D a ys o f S u p p ly 6 8 .0 6 4 .5 6 6 .4 6 5 .6 6 6 .9 6 6 .1 6 1 .5 6 7 . 8

L T T re n d

P e r fo rm a n c e M e a s u re Y T D W k 1 W k 2 W k 3 W k 4 W k 5 Q t r (F c s t) Y r (F c s t) Y r (A O P )

S a le s $ 2 3 ,5 6 7 $ 3 ,0 6 6 $ 3 , 0 6 6 $ 3 ,0 6 6 $ 3 , 0 4 8 $ 9 ,3 1 5 $ 3 8 , 3 1 6 $ 3 3 ,5 2 6

L e a n O P $ $ 4 , 8 2 7 $ 5 3 0 $ 5 3 0 $ 5 3 0 $ 5 3 0 $ 1 ,4 3 5 $ 6 , 9 9 8 $ 5 , 7 0 5

L e a n O P % 2 0 .5 % 1 7 .3 % 1 7 .3 % 1 7 .3 % 1 7 . 4 % 1 5 . 4 % 1 8 . 3 % 1 7 .0 %

P e r fo rm a n c e M e a s u re P rio r M o W k 1 W k 2 W k 3 W k 4 W k 5 Q t r (F c s t) Y r (F c s t) Y r (A O P )

C o n ce p t $ 8 ,5 4 0 $ 8 ,5 4 0 $ 8 ,5 4 0 $ 8 , 5 9 6 $ 8 ,6 1 6

Q u o t e $ 7 ,3 9 0 $ 7 ,3 9 0 $ 5 ,0 5 0 $ 4 , 9 9 1 $ 4 ,9 9 1

Q u o t e E va lu a t io n $ 7 ,3 9 0 $ 7 ,4 0 0 $ 7 ,3 8 0 $ 7 , 5 8 3 $ 7 ,5 9 6

P ro to typ e $ 1 1 , 7 2 0 $ 1 1 ,7 3 0 $ 1 1 , 7 3 0 $ 1 1 ,7 0 2 $ 1 1 ,7 0 2

P ro to typ e E va lu a t io n $ 2 ,5 4 0 $ 2 ,5 6 0 $ 2 ,0 5 0 $ 2 , 0 5 2 $ 2 ,0 5 2

Fina

ncia

lat

ion

Weekly Financial Forecast

Sales Funnel


P re -P ro d u c tio n $ 5 ,0 9 0 $ 5 ,0 4 0 $ 5 ,6 6 0 $ 5 , 3 9 3 $ 5 ,3 6 3

P ro d u c tio n $ 2 4 0 $ 2 3 9 $ 2 3 9 $ 2 4 0 $ 2 3 9

R a n k in g A ve ra g e 3 . 3 3 .3 3 . 3 3 .3 3 . 3

To ta l $ 4 8 ,8 1 6 $ 4 8 ,7 9 3

C u s to m e r P ha s e T e rrR a n k

P lR a nk

1 2 m t h R e v e nu e C lo s e D a te

A M A T (D is c & C onc e pt ) $ 4 0 0 K

A u t om a t ed P ac k ag ing S ys (P re -prod ) 4 3 $ 5 0 4 K O c t-1 0

Ip ec o (P ro to E v a l ) 5 4 $ 3 5 2 k Ja n - 1 1

R o o t C a u s e O w ne r S ta r t E nd J D I / E ve n t / P ro je c t

Q u a lity E . S c h el le n be rg Ju n -1 0 S e p -2 0 P r oje ct

D el ive r y M . Du ke Ju l- 1 0 S e p -1 0 P r oje ctD el ive r y M . D u ke Ju l- 1 0 J u l- 10 J D I S a fe ty S . M cK e n zie Ju l- 1 0 J u l- 10 J D I

A l ig n go a l w ith fo cu s ( de e m p h a size n o n -s tra te g ic p ro d u cts )D e s ig n in g n e w to o lin g fo r fe e d a t c u t-o f f sa w

unte

rmea

sure

s

C ou n te rm e a s ureE s t. C o u n ter m e a su re s f or De s ig n (m a rk in g ), a n d "m i sse d o p e ra t io n " d r ive r s .E x e cu te d i ve stm e n t p la n b y e n d o f 3 Q .

Dem

and

Cre

a

C u sto m e r v i s it o n 9 /13 (S e lvy /S ch lo e m a n n )

G ro w th A c tiv it y T hi s W e e k

U ltr a m ic te a m is r e f in in g p ote n t ia l s ol u ti o n fo r a va cu u m ch u ck fo r wa fe r a n n e a lin g a pp l ica tio n fo r p r es e nta t io n to A M ATA s cu sto m e r c on t in u e s to e va lu a te p r o totyp e s, te a m is e va lu a tin g p r a ct ica l so lu tio n fo r r ou n d in g th e e d g e s o f th e U ltr a m ic h e a ter

Weekly Growth Activity

Counter Measures

Enterprise Mission Control Check1 2 31 32 1 True North

- Participants include ET, GMs, VS and Functional leaders

- Objective is to CHECK progress to plan

- Inputs = True North Metrics, selected LAMPs, current and 5-

CHECKAre we meeting expectations?

True NorthSurvey(S. Wall)

TRUE NORTH

Countermeasures

CustomerEscapes Countermeasures

Days of InventoryCountermeasures

True NorthRevenue

(C. Merryman)Countermeasures

LAMP (A3s)

HPS MANITOWOC

TK CAT

5 Year Financial Projection

(Enterprise)Countermeasures

Financial Plan(Next 12 Months)

Capital Spending(Plant Status)

FINANCIALSSTRATEGYDEPLOYMENT

SD Level 1Bowler

Participation

LEANKPI

Countermeasures

Countermeasures

/ SD/Lean KPI11 2 3

CHECK Key Points/Philosophy:Confirm adherence to True North and ENTERPRISE strategy.Check True North metrics, sales, operations and financial

lt LOB’ d ENTERPRISE

year financials, - Outputs = countermeasures and

actions2 LAMP (A3s)- Participants are Demand

Creation- Objective is to CHECK progress

to plan- Inputs = LAMP strategy plans- Outputs = actions to support

LAMP strategy

True NorthLead-times(S. Rhodes)

Countermeasures

Productivity CountermeasuresLean NPD

Portfolio View(Enterprise)

AMAT LAMWatch MetricsBoxscore

EnterpriseBox Score

(Current State)Countermeasures

Pace

Dedicated Resources

Countermeasures

Countermeasures


results across LOB’s and ENTERPRISE.Validate and confirm systemic and ENTERPRISE level issues hindering LOB performance.Check Lean KPI’s – are we meeting expectations?

3 Financials- Participants include finance

team- Objective is to consolidate

ENTERPRISE financials- Inputs = COGNOS and SOFP

working spreadsheets- Outputs = countermeasures in

response to identified gapsOWNER: PresidentUSERS: Mission Control Participants

10

Monthly Check Board Layout

STRATEGYDEPLOYMENT

SD Level 1B l

CountermeasuresBowler

Participation

LEANKPI

Countermeasures


Pace

Dedicated Resources

Countermeasures

Countermeasures

Monthly Check – SD;True North, Lean KPI

SD BowlerCheck Questions

Lean KPI

True North

h e a t e r s | s e n s o r s | c o n t r o l l e r sEnterprise Product Development Portfolio

11

Monthly Mission Control Check QuestionsBowler Review:Are the SD Level 1 A‐3’s and Level 2’s progressing effectively?Are the Countermeasures appropriate?

TPOC:Are the TPOC activities progressing effectively?Are the Countermeasures appropriate?Are the Countermeasures appropriate?

True North:Is True North being achieved?Are the current countermeasures appropriateAre new countermeasures required ? (See Issues Grid)Are there trends in the Watch metrics and Lean metrics that we need to address?Are new Countermeasures needed?

LAMP


(every month, go through 2 of these ‐ 15 minutes each)What has changed in our strategy or business environment that will impact large customers?For each customer, what should we change in our approach or relationship?

Lean NPD Portfolio ViewAre the lean NPD projects in the Lean NPD Portfolio view converging appropriately? If not, why not?What are countermeasures?

Monthly Check – SD Bowler2011 Strategic DeploymentName: Enterprise Bowler Level 1 1. Strategic Initiative Measure 2011 Goal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName of Initiative $ Goal $92M $92 $92 $92 $92 $92 $92 $92Rob Gilmore Actual $96 $96 $81 $81 $82 $82 $82Commissioned projects & base business at: Semi $40M to $92M Monthly Delta vs Goal $4 $4 -$11 -$11 -$10 -$10 -$10(Note this is for 2012? Revenue) YTD Goal $92 $92 $92 $92 $92 $92 $92 $92 $92 $92 $92 $92

YTD Actual $96 $96 $81 $81 $82 $82 $82YTD Delta vs Goal $4 $4 -$11 -$11 -$10 -$10 -$10

2. Strategic Initiative Measure 2011 Goal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName of Initiative $ Goal $19 $19 $21 $23 $23 $25 $26 $27 $31 $34 $34 $34Greg Wagner Actual $19 $22 $24 $28 $28 $28 $28Commissioned projects & base business at:Commissioned projects & base business at: Diesel $17M to $34M Monthly Delta vs Goal $0 $3 $3 $5 $5 $3 $2

YTD Goal $19 $19 $21 $23 $23 $25 $26 $27 $31 $34 $34 $34YTD Actual $19 $22 $24 $28 $28 $56 $84

YTD Delta vs Goal $0 $3 $3 $5 $5 $31 $583. Strategic Initiative Measure 2011 Goal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName of Initiative $ Goal $22 $22 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40Process Leader Actual $30 $30 $32 $32Commissioned projects & base business at: Process $22M o $40M Monthly Delta vs Goal $6 $4 $4 $2

YTD Goal $22 $22 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40YTD Actual $24 $26 $28 $30 $32 $34 $36 $38 $40

YTD Delta vs Goal $6 $4 $4 $24. Strategic Initiative Measure 2011 Goal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName of Initiative $ GoalFood Leader Actual Commissioned projects & base business at: Food $ 30M Monthly Delta vs Goal

YTD Goal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0YTD Actual

YTD Delta vs Goal5 St t i I iti ti M 2011 G l J F b M A M J J l A S O t N D

Exceeding 2011 plan in Hannibal but not working as a space

Sales + Forecast


5. Strategic Initiative Measure 2011 Goal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName of Initiative $ Goal $74,000.0 $75,233 $76,487 $77,762 $79,058 $80,376 $81,715 $83,077 $84,462 $85,870 $87,301 $88,756VP of Marketing Actual $0 $0 $0 $13,400.0 $14,178.0 $27,673 $27,673$108M of PoC annual potential revenue for 2013 Monthly Delta vs Goal -$74,000 -$75,233 -$76,487 -$64,362.0 -$64,880 -$52,703 -$54,042

YTD Goal $74,000 $75,233 $76,487 $77,762 $79,058 $80,376 $81,715 $83,077 $84,462 $85,870 $87,301 $88,756YTD Actual $0 $0 $0 $13,400 $14,178 $27,673 $55,346

YTD Delta vs Goal -$74,000 -$75,233 -$76,487 -$64,362 -$64,880 -$52,703 -$26,3706. Strategic Initiative Measure 2011 Goal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName of Initiative $(000)/Team Member Goal $155 $139.4 $140.8 $142.2 $143.6 $145.0 $146.4 $147.8 $149.2 $150.6 $152.0 $153.4 $155Steve Rhoads Actual $138.9 $140.3 $150.1 $147.6 $147.8 $140.7 $137.2Productivity increase to $155K/Team Member Monthly Delta vs Goal -$0.5 -$0.5 $7.9 $4.0 $2.8 -$5.7 -$10.6

YTD Goal $139.4 $140.8 $142.2 $143.6 $145.0 $146.4 $147.8 $149.2 $150.6 $152.0 $153.4 $155Info Source: Cognos YTD Actual $138.9 $140.3 $150.1 $147.6 $147.8 $140.7 $137.2

YTD Delta vs Goal -$0.5 -$0.5 $7.9 $4.0 $2.8 -$5.7 -$10.67. Strategic Initiative Measure 2011 Goal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName of Initiative # of Opportunities

compared to Actual Goal 13 13 13Lou Steinhauser Actual 13 13 13100% of New Products using the Lean NPD Workbook Monthly Delta vs Goal 0 0 0

12

Monthly Lean KPI – Dedicated ResourcesCOI Dedicated Resources

2.0%

2.5%

3.0%

3.5%

ousa

nds

0.0%

0.5%

1.0%

1.5%

Tho

History 1.41% 1.72% 2.28% 2.74% 2.92% 2.43%

Target 3.00% 3.00% 3.00% 3.00%

Actual 2.62% 2.33% 2.63% 2.65%

Jan Feb Mar Apr M

2005 2006 2007 2008 2009 2010

Dedicated COI Resource Shortage (to 3%)

0 1

0.0 100%


-3.485

-1.42-1.185

-1.02 -0.93-0.67 -0.58 -0.53

-0.17

-4.0

-2.0

Ent

erpr

ise

St.

Louis

Eur

o DC

Winon

a

HQ

Eur

o DVS

Mex

ico

China

Asia

DC

# Pe

ople

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

COI People Short % of Total

Monthly True North - Quality

8,000

10,000

12,000

PM)

0

2,000

4,000

6,000

Cus

tom

er E

scap

es (P

P

h e a t e r s | s e n s o r s | c o n t r o l l e r s 24

Takeaway Summary

-2,000

0

History 7,000 5,282 4,499 5,850 2,958

Target 3-Mo Avg 2,835 2,712 2,588 2,465 2,342 2,219

Actual 3-Mo Avg 3,877 5,762 4,669 4,993 3,485 3,254

Month PPM 2,759 10,447 2,503 4,223 4,027 1,765

UCL 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 59

LCL -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82

2006 2007 2008 2009 2010 Jan Feb Mar Apr May Jun

13

Monthly Check Continued

Large Account Management


Monthly Check Continued

1 year Actual and Forecast


5 year Model

14

5 Year ModelPrint: Ledger Size

Updated on: 02/02/11

2010 Actual 2011 Fcst 2011 Target 2012 Proj 2013 Proj 2014 Proj 2015 Proj 2016 Proj 2016 Target

Survey (Composite Score) N/A

Customer Escapes (50% reduction in PPM) 2,958 1,479 1,479 740 370 185 92 46 46

Leadtime (25% reduction in OED days) TBD

Inventory (25% reduction in DOS) 57.4 43.1 43.1 32.3 24.2 18.2 13.6 10.2 10.2

Productivity (≥ 12%/yr Sales/Team Member) 139 400$ 153 300$ 155 000$ 174 863$ 195 847$ 219 349$ 245 670$ 275 151$ 275 151$

True

North

5 Year Strategic Box Score (RED Fill when Frcst or Projection < Target)

Productivity (≥ 12%/yr. Sales/Team Member) 139,400$ 153,300$ 155,000$ 174,863$ 195,847$ 219,349$ 245,670$ 275,151$ 275,151$

Revenue ($500M in 2016) 301,036$ 358,123$ 346,330$ 431,095$ 485,590$ 539,813$ 599,695$ 671,132$ 553,000$

Value‐added TBD

Non‐value added TBD

Kaizen/Strategy Deployment TBD

Available Capacity TBD

Sales 301,036$ 358,123$ 346,330$ 431,095$ 485,590$ 539,813$ 599,695$ 671,132$ 553,300$

OP $$ 36,900$ 46,663 45,544$ 65,441$ 83,676$ 107,707$ 130,676$ 158,324$ 94,083$

OP % Sales 12.3% 13.0% 13.2% 15.2% 17.2% 20.0% 21.8% 23.6% 17.0%

EVA $$ 15,782$ 21,442$ 21,028$ 29,073$ 40,983$ 57,677$ 73,065$ 91,505$ 39,294$

Capa

city

Fina

ncial

h e a t e r s | s e n s o r s | c o n t r o l l e r s 27

EVA % Sales 5.2% 6.0% 6.1% 6.7% 8.4% 10.7% 12.2% 13.6% 7.1%

Minimum OP %: 8.0% 12.0% 12.0% N/A N/A N/A N/A N/A 17.0%

Financial Vision OP %: 11.0% 13.0% 13.0% 15.0% 17.0% 17.0% 17.0% 17.0% 17.0%

Financial Vision EVA %: 5.7% 5.7% 5.7% 5.9% 7.1% 7.1% 7.1% 7.1% 7.1%

Capital Spending 6,000$ -$ -$ -$ -$ -$ -$ -$ -$

Total Team Member Census (3 mo avg Equivalents) 2,299 15,185 2,197 2,162 2,124 2,083 2,047 2,011

F

Freeze / Unfreeze(“Unfreeze” A3 Required)

A3 #1

A3 #2

RAIL(Manage Emergent Work)

ActAre we improving the process?

Is the visual management achieving the desired result / purpose?

LOB True North Systemic or Big Issues

External Watlow Issues Outside LOB Control

Enterprise Process or Policy Issues

ET Actions Requiring Direction or Creating Issues

Summary Action Items Countermeasures @ True North

IMPACT

LOE

Action Item Responsible PersonHow

A3 / Event / JDI) Completion Date Status

Network sign-off card - new grad leadership Ray 2/15

Ongoing closed-loop forecast updates Chad 2/16

Enterprise SOFP Rihbe 1/19

Contracts - how to handle customer directed suppliers Chad / Dave M 2/16

Functional excellence vs. location TPOCs Tom / Steve R

Enterprise Mission Control Act

1 32

1 ACT- Participants include ET, GMs, VS and Functional - Objective is to ACT on items critical to ENTERPRISE

sustainability and annual commitments- Inputs = LOB True North issues, enterprise processes

and policies (WBS), external issues beyond LOB control and ET actions

- Outputs = authorization to investigate a cause that would warrant a change in strategy and/or impact

ReflectionsMission Control Improvements

What went well? What hindered?

What worked? What didn’t work?

What actionsresult?

ACT Key Points/Philosophy:Address systemic, big and external issuesAddress ENTERPRISE processes and policiesManage strategy and emergent work as new information

would warrant a change in strategy and/or impact True North

2 RAIL- Participants include ET, GMs, VS and Functional - Objective is to capture salent items- Inputs =action items and relavent owners- Outputs = solution approach and completion status3 FREEZE / UNFREEZE- Participants include ET, GMs, VS and Functional - Objective is to validate new information's impact on

ENTERPRISE strategy- Inputs = strategy deployment, market forces and

macroeconomic influencesO t t d i i t "h ld" i ti di ti " lt "

4


Manage strategy and emergent work as new information becomes availableCapture and reflect ENTERPRISE learning’s

- Outputs = decision to "hold" existing direction or "alter" the course

4 REFLECTION / MISSION CONTROL IMPROVEMENTS- Participants include ET, GMs, VS, Functional leaders

and all ENTERPRISE members- Objective is to disperse learnings and continually

improve- Inputs = things to reflect on and items to improve

upon- Outputs = ENTERPRISE learnings and MC improvementsOWNER: President

USERS: Mission Control Participants

15

Act – Managing Emerging Work

Action Item Responsible PersonHow

A3 / Event / JDI) Completion Date Status

Network sign-off card - new grad leadership Ray 2/15

Ongoing closed-loop forecast updates Chad 2/16


Enterprise SOFP Rihbe 1/19

Contracts - how to handle customer directed suppliers Chad / Dave M 2/16

Functional excellence vs. location TPOCs Tom / Steve R

Act Continued


16

Act Continued - RAIL


Mission Control Reflections and Unfreeze Box


17

Act Continued – MC Reflections & Improvement


Enterprise Mission Control Agenda• Monthly Topic – ITR 8:00 – 10:30 Tom F• Break 10:30 – 10:45 All• Listening Post 10:45 – 11:30 Rich

– What does the Listening Post tell us?– Are there any of these that we need to post in one of the PDCA sections or on the Issues Grid today?– Is there anything that would lead us to believe that our strategy should be revisited?– Upon reflection, what have we learned or understood better from our review of the Listening Post

• Plan 11:30 – 1:30 Rich– Space Updates

Day 1

– Space Updates• What changes to our strategy occurred as a result from last month’s Mission Control Freeze/Unfreeze process?*********(15 min for each Space per month, w/ 1 deep dive/mo)

– Diesel (20 minutes) 11:30 – 11:50 Greg/Jeff– Energy Process (20 minutes) 11:50 – 12:10 Kevin/Dennis

• Lunch 12:10 – 12:45– Semi 12:45 – 1:30 Rob/Ray

– Space Deep Dive (1 per quarter)

– LAMP 1:30 – 2:00 Acct Mgr(every month, go through 2 of these - 15 minutes each – Chad to select)

• What has changed in our strategy or business environment that will impact large customers?• For each customer, what should we change in our approach or relationship?


• Do 2:00 – 3:15– What is the status of the Level 1 A-3 (Red or green)?

• What has changed since last review?• What has been learned?

– General “Do” Section Questions:• Should any SD Level 1’s be unfrozen?• What changes need to be made to Strategy Deployment?• Upon reflection, what have we learned or understood better from our review of this section?

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Mission Control• Check 3:30 – 5:15

– Bowler Review:• Are the SD Level 1 A-3’s and Level 2’s progressing effectively? 3:30 – 4:15 Bowler Owners• Are the Countermeasures appropriate?

– TPOC: 4:15 – 4:30 Rhoades• Are the TPOC activities progressing effectively?• Are the Countermeasures appropriate?

– True North: 4:30 – 5:1 Function

Day 1 continued

• Is True North being achieved?• Are the current countermeasures appropriate• Are new countermeasures required ? (See Issues Grid)• Are there trends in the Watch metrics and Lean metrics that we need to address?• Are new Countermeasures needed?

– 12 month Box Score: 5:15 – 5:30 Box Score Owner• Does the box score show that our strategy is being fulfilled? Any surprises?• Are there appropriate countermeasures?• Is the capital plan on track? Are there any surprises?• Does the ET need to convene on any capital decisions?

– 5 year strategic box score Box Score Owner• 10 Minutes for review by line item owners on a monthly basis• 10 Minutes for review of major changes on the 5 Year Box Score from the previsous month by the responsible GM• 10 Minutes for Gaps and Counter Measures on a monthly basis by the responsible GM.


p y y p– Does the 5 year strategic box score projection match strategic goals?– Are the true north measures and capacity usage on track with the financial projections?

– 5 year strategic financial projection• Is the 5 year financial projection trending toward strategic goals?• Do the 5 year P&L/EVA charts show any trends that need to be addressed?• Are there any other countermeasures required to close gaps within the current strategy?• Should we unfreeze the strategy based on the 5 year current projections?• What countermeasures should be initiated to change strategy to meet 5 year goals?

Mission Control (Continued)– Lean NPD Portfolio View 7:30 – 8:30 Lou

• Are the lean NPD projects in the Lean NPD Portfolio view converging appropriately? If not, why not?• What are countermeasures?

• Act 8:30 - 10:00 Tom– Issues and RAIL

• Space/LOB/function countermeasures need ET action?• Which issues should we add to the systemic issues board?

Day 2

• Which quadrant of the pick chart should each action be placed in?• Discuss pick chart actions & determine which ones to address• Create and prioritize RAIL items• Are all RAIL items clear?• Are RAIL items being completed in a timely fashion?• Do we have realistic capacity and capability to complete the RAIL in the targeted timeframe? What are we not

going to do?– Freeze/Unfreeze

• Which strategy deployments have we unfrozen?• What changes should be made to the unfrozen SD?• For those SD that we are unfreezing, is there an A3?• Is the scope and target of the unfrozen A3 clear?


Is the scope and target of the unfrozen A3 clear?– Confirmed State

• Did we allow adequate time for dialogue & agenda items? Did we stay at the right level?• Was emergent work contained?• Did we gain deeper understanding of external environment?• Do we have high confidence that we will hit 1 year & 5 year targets for SD, True North, Financials, & TPOC?• Are countermeasures adequate & realistic?• Do we have clarity and alignment around strategic direction?• Is knowledge captured, documented, & available for reuse?• Did we adhere to Watlow Way and Watlow Business System

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Mission Control (Continued)

• Break 10:00 – 10:15 All• Lean Transformation Reflections 10:15 – 11:15 Tom• Corrective Action Board 11:15 – 12:15 Paul• Lunch 12:15 – 12:45• Weekly Financials and Potential 12:45 – 1:30 Ribhe

Day 2

Countermeasures (including capital)• Succession Planning 1:30 – 2:30 Mike• Topic -Business Model Discussion (Core) 2:30 – 4:00 Chad

(Including 15 minute Break)• Mission Control Reflections 4:00 – 4:30 Steve R

– What went well?– What hindered?– What worked?– What didn’t work?

h i l ?


– What actions result?

ReflectionsPros• It is very challenging to stay on the same page with a dispersed

organization. Mission Control helps us with this in a very special way• Allows us to be “strategic” in our thoughts • MC forces us to talk to each other and debate current topics that areMC forces us to talk to each other and debate current topics that are

either helping us or hindering us – shared learnings• We are able to get a quick view of the entire business is a very short

period of time – take countermeasures if appropriate• We now have a method to manage emergent work.

• Must force ourselves to stop something if we start something new• Great immersion for newer employees


Cons• Easy to move to pure tactical discussion• Takes the executive team out of the business for 2 days per month• Difficult to involve Europe and Asia