2024 WPF Leadership Cohort Workbook PDF

2024 WPF Leadership Cohort Leading Self – Instilling Courage and Thought Leadership Leading the Organization – Bridging Talent to Objectives Session 2 November 19th-21st, 2024 Table of Contents Session 1 Reflection……………………………………………………..4 Inn...

2024 WPF Leadership Cohort Leading Self – Instilling Courage and Thought Leadership Leading the Organization – Bridging Talent to Objectives Session 2 November 19th-21st, 2024 Table of Contents Session 1 Reflection……………………………………………………..4 Innovation through AI …………………………………………………...6 Practical Financial Acumen – Introduction………………………..…18 Breakout: Understanding Revenue & Profitability……………….....26 Breakout: Managing Operating Expenses & Profitability………….31 Breakout: Achieving Net Profit & Business Impact………………...36 Breakout: Investment Decision & Analysis…………………………..39 Presenting with Purpose…………………………………………………45 LRP Deployment…………………………………………………………...52 Effective Management Systems…………………………………………59 Business Ownership………………………………………………………66 Applied Problem Solving…………………………………………………68 Final Reflection…………………………………………………………….86 2  HPO Culture | How did I infuse HPO elements with my team? Leadership Behavior Plan Update | How did my follow Let’s through affect my team’s success? Reflect Strengths Finder | How did I use my strengths to impact my team? 4  Align individual growth, team collaboration, and organizational strategy, creating a unified, high-performing environment that drives sustainable success. Leading Leading Leading the Others Self Organization Cultivating a Instilling Courage Bridging Talent to Culture for Success and Thought Objectives Leadership Setting expectations, Involves building Ensures team modeling resilience, continuous strengths are aligned accountability, and learning, and informed with strategic goals, fostering collaboration decision-making to creating a cohesive to enable high inspire others and approach that performance, driving drive innovation maximizes the the team’s productivity across the organization’s and alignment with organization. collective impact. the organization. 5 Innovation through AI: Intentional Development Unlocking new opportunities by enabling individuals and organizations to stay competitive and adapt in a rapidly evolving landscape. Reasons for Learning Focus  Enhanced Productivity: AI optimizes workflows by automating repetitive tasks, allowing leaders and teams to concentrate on strategic and creative efforts that add higher value to the organization.  Strategic Insights and Framing: AI facilitates deep insights into patterns and trends, allowing leaders to adapt quickly and make more information decisions that align closely with the company’s vision and goals.  Competitive Advantage: Embracing AI equips the organization to innovate continuously, maintain agility, and stay ahead in a rapidly evolving market, fostering a sustainable leadership edge. 6 What is Generative AI? Generative AI is a subset of machine learning that Leading Tools Available enables computers to create original content to: ChatGPT​ Increase productivity Drive efficiency Google​ Enhance decision making Foster innovation Microsoft Enrich collaboration Copilot​ Think of it as your own personal AI- HNI Helix​ assistant or an additional headcount on your team. 7 7  Comparing Generative AI Tools – Why Copilot? Extended capabilities coming soon! Microso ChatGP Google​ HNI ft T​ Helix​ Copilot​ Natural Language Understanding & Generation Confidentiality & Security Integration with Productivity Tools Multimodal Capabilities (Text, Image, Audio) Real-Time Information Access 8 8 Working with Gen AI Tools – 3 Steps 1 2 3 Enter Your Prompt​ Check Sources​ Continue the Enter your detailed prompt in ChatGPT uses pretrained data Conversation​​ the text box at the bottom. The to respond to queries. The data You can ask follow-up box expands as you go, so you available with the model is up questions as you would in a can write in sentences and to January 2022. You are conversation. You can refine paste in lots of content from a encouraged to verify with the answer too. ​ webpage, PDF, or document. ​ relevant sources about the For example, try “Write a model's response.​ shorter answer" or "Give me more detail."​ 9 9 Use Cases and Examples By Function Sales Service Finance HR Operations Marketing Next best Case and P-Card audit Employee Analyze quality Generate action for Sales account analysis productivity data trends marketing reps summarization automation Reduce Improve content (blogs, Decrease NLP to Identify Analyze budget employee network PRs, social) time to RFP replacement consolidation attrition utilization NLP price lists response parts opportunities Improve speed Analyze IoT and Run bid Analyze CX call Generative to identify data to reduce specification scenarios that recordings data analysis candidates downtime and tool balance win % and report generate Generate and with margin generation maintenance update website SOPs content (AO.com, HON.com, etc.) 10 Privileged & Confidential – © 2024, All Rights Reserved. Prompt Writing Tips and Guidelines Basic structure of writing a prompt. Fill in the blanks below - Act as a [______] Perform a [______] Show in [______] Marketer Sales Copy Table Risk Analyst Blog Post List Project Manager Video Script Summary Copywriter Product Description HTML Website Developer SEC Keywords Code Lawyer Risks and Mitigations Spreadsheet HR Specialist Ad Copy Image Finance Analyst Product Specialist Interview Questions Formula Project Template 11 11 Tip Sheet EXPLAIN LIKE I’M 5 ENHANCE PROBLEM SOLVING SKILLS Prompt: Prompt: Explain [TOPIC] to me as if I am a beginner. Act as an in thinking. Critical. Lateral. All types. Create a Use simple terms and break it down into steps if necessary. step-by-step system to solve the problem of [INSERT TOPIC AND CONTEXT]. Ask questions if you need clarity. USE THE 80/20 PRINCIPLE CREATE UNIQUE IDEAS Useful skill to have, even without ChatGPT. Prompt: Prompt: Act as several different roles. Provide different unique and innovative I want to learn about [TOPIC]. Act as someone relevant to the field of content ideas that are unconventional for [TOPIC]. The outcome of this that topic and give me the most important 20% of the information is that I [OUTCOME]. from that topic that will help me understand 80% of it. LEARN ANY NEW SKILL CONSULT WITH AN EXPERT Prompt: Prompt: I want to learn/get better at [TOPIC]. I am new to this and Act as a [INSERT PROFESSION / EXPERTISE ], I need a total beginner. Create a 30 day plan that will help me learn you to give me advice. [INSERT TASK]. Please make sure and improve on this skill. Please put it in a table format. your response is in depth with both pro's and con's. 12 12 Tip Sheet Simplify Complex Information Learn From Mistakes Memorize Key Information Prompt: Prompt: Prompt: "Break down the [topic] into smaller, "I made a mistake while practicing [skill]. "What are the most important facts, dates, easier-to-understand parts. Use analogies Can you explain what went wrong and or formulas related to [topic]? Help me and real-life examples to simplify the how I can avoid making the same mistake create a memorization technique to concept and make it more relatable." in the future?" remember them" Train It To Learn Your Writing Apply Your Knowledge Compare And Contrast Prompt: Prompt: Prompt: "Analyze the text below for style, voice, "Use your knowledge of [topic] to solve a "Compare and contrast [concept 1] and and tone. Create a prompt to write a new real-world problem. Explain your thought [concept 2] to better understand their paragraph in the same style, voice, and process and share your solution." similarities and differences. Use examples tone: [Insert your text]" to illustrate your points." Instructions and How-Tos Connect With Others Summarize Complex Texts Prompt: Prompt: Prompt: "Provide a concise step-by-step guide on "Connect me with a community of experts "I need to read a complicated article how to create Instructions and How-tos in [topic]. How can I join a forum, social related to [topic]. Can you help me about [topic], and also highlight the fastest media group or other online community to summarize the key points and takeaways approach?" share knowledge and learn from others?" from the text?" 13 13 HNI Member AI Policy Members may use Al tools, including publicly available generative tools to assist with basic written work product in which the Company has no expectation of exclusive use (for example, e-mails, letters, presentation text), and research of public information, as long as they adhere to these guidelines: Usage of HNI name*, brand names, HNI data, or personally identifiable information not allowed in publicly available tools. HNI data may only be utilized when using Helix. Member responsible for accuracy and integrity Intellectual property considerations must be understood All relevant policies, internal controls, and guidelines of HNI remain in effect and apply to the use of Al for these limited activities Use Case General Member (not on Copilot Paid License) Power User Member (on Copilot Paid License) NOTE: Prompts and responses are used by these public tools to improve the model Prompting with non-HNI or Pll Recommend using Helix or Copilot (logged in as HNI user — Recommend using Helix or Copilot data to generate text responses ensure "Protected" shield shows in upper right side of screen). (logged in as HNI user). Prompting with non-HNI or Pll Recommend using Copilot or Gemini. Recommend using Copilot or Gemini. data to generate text responses Prompting with HNI data or Pll Always use Helix or Copilot (logged in as HNI user — ensure Always use Helix or Copilot. Will "Protected" shield shows in upper right side of screen). evolve this rule as protection changes Prompting with HNI documents Not available Utilize Copilot or online Office application files 14 14 Moving AI into Action 1 2 3 What actions will you What actions will you What is one specific task or take as a leader to take to encourage process within your team where you could use AI to implement the use of your team to use AI? save time or improve AI? outcomes? Resources: [email protected] 15 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 16 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 17 Practical Financial Acumen: Intentional Development We all have the opportunity to impact business performance. Reasons for Learning Focus  Informed Decision Making: Enables leaders to make strategic choices that align with the organization’s financial goals, ensuring resources are allocated effectively for maximum impact.  Increased Accountability: Helps leaders take ownership of their decisions and outcomes, fostering a culture of responsibility and transparency that supports organizational success.  Strategic Alignment: Ensures leaders can connect their roles and team contributions to achieve long range organizational strategy, facilitating better alignment and collaboration. Finance Passport Revenue & Operating Expenses & Profitability Profitability Net Profit & Investment Decision Business Impact & Analysis 19 What is a P&L Statement? What is a P&L Statement? Profit and Loss statement, also known as the income statement P&L Calculation Revenue – Expenses = Profit/(Loss) Why is the P&L Important? Performance Measurement: It helps assess how well the company is doing financially. Decision-Making: Investors and managers use it to make informed decisions about the business. Trend Analysis: It allows for the comparison of financial performance over different periods. 20 Revenue Metrics at HNI Sales is the total income generated from sales of goods or services List Sales It is often referred to as the “top line” of a business, indicating how much money is coming in Sales is recognized when earned – Discounts (point of sale of goods or when service is performed), not when cash is received = Invoice Sales Factors impacting Sales: Market (brand perception, market trend, competition, seasonality) – Programs Economic conditions (inflation, – Other Revenue and Early government funding, customer Pay spending power) Pricing strategy (pricing, promotions, discount) = Net Sales Manufacturing capacity/capabilities 21 Expense Overview Cost Cost Units Units Variable Fixed vs Expense Expense (i.e., Discount, Material, (i.e., Showrooms, Management, Manufacturing Labor, Freight) Sales, HR, Marketing, Finance) 22 DCM Overview Sales – Variable Cost DCM = (Direct Contribution Margin) – Fixed Cost = Profit/(Loss) 23 HNI P&L Statement – 5 Line P&L $ Millions WPF Net Sales $1,500 Gross Profit $600 % of Net Sales 40.0% F&D $165 % of Net Sales 11.0% SG&A $250 % of Net Sales 16.7% EBIT $185 % of Net Sales 12.3% Note: The numbers shown here are for illustrative purposes only and are not based on real data. 24 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 25 Breakout: Understanding Revenue & Profitability 26 Revenue Metrics at HNI List Sales – Discounts = Invoice Sales – Programs – Other Revenue and Early Pay = Net Sales 27  Seating Corporation Scenario 000s Current 000s New 000s NewPrice Units 1,200 Units Units Sales $6,600 Sales Sales Sales/unit $5.50 Sales/unit $5.50 Sales/unit $4.00 VariableCost $3,000 VariableCost VariableCost Variable cost/unit $2.50 Variable cost/unit $2.50 Variable cost/unit $2.50 DCM $3,600 DCM DCM DCM/unit $3.00 DCM/unit $3.00 DCM/unit $1.50 % of Net Sale 54.5% % of Net Sale % of Net Sale FixedCost $2,500 Competition FixedCost $2,500 Price Drop FixedCost $2,500 % of Net Sale 37.9% % of Net Sale 75.8% % of Net Sale 52.1% Profit/(Loss) $1,100 Profit/(Loss) Profit/(Loss) % of Net Sale 16.7% % of Net Sale % of Net Sale 28  As the owner of Seating Corp, what would you consider doing next? Active Perspective HNI | 29 29 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 30 Breakout: Managing Operating Expenses & Profitability 31 Cost of Goods Sold (COGS) Primary COGS Labor + Overhead + Materials + Freight & Distribution Secondary COGS 32 Warranty Inventory  Manufacturing Forecasting Process Disruptors NEW SALES DEMAND LABOR & WAREHOUSE SUPPLY CHAIN PRODUCT Ideal Flow & INVENTORY SCHEDULING & SHIPPING INVESTMENT -Materials -Sales team input -Supplier Capacity -Right Skills on Hand -Storage Capacity Considerations -Labor -Market Data -Lead Times -Managing overtime -Inventory Turnover -Equipment -Trends -Raw Material -Temp Staff Needs -Shipping Schedules -Marketing Initiatives -Historical Sales Availability -Seasonality Critical foundation Balance between Maintain flexibility if Strategic partnerships enabling procurement, Baseline for acquiring materials demand surges or to ensure efficient production planning, establishing operations and minimizing labor availability logistics coordination. 33 and initial forecasting. business plan. excess inventory. changes. Operations Productivity Impact to WF Financials How do I, a non-operations member, impact operations productivity? 34 34 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 35 Breakout: Achieving Net Profit & Business Impact 36 Group Activity In 2023 Ergo Design Company sold 8,000 Workstations and 12,000 Task Chairs. Furnitropolis factory incurred $25M of expense producing the workstations and Ergoville factory incurred $10M producing Task Chairs. The average selling price of a Workstation is $4,000 and the average selling price of a Task Chair is $1,000. Ergo Design Company spent $2M in marketing expenses and $3M in other SG&A expense to run the company. Ergo Design Company also spent $5M on Freight and Warehouse in 2023. Workstations Task Chairs Total $ %of NetSales $ %of NetSales $ %of NetSales Unit x Price/Unit =NetSales - COGS =GrossProfit F&D N/A N/A N/A N/A Marketing N/A N/A N/A N/A +Other SG&A N/A N/A N/A N/A =Total SG&A N/A N/A N/A N/A EBIT N/A N/A N/A N/A 37 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 38 Breakout: Investment Decision & Analysis 39 Investment Analysis Process Business Case Contributors BUDGET AUDIENCE JUSTIFICATION INVESTMENT RETURN ALTERNATIVES RISKS 40 Investment Analysis Process Business Case Contributors Why do you want to invest in this project? Purpose What is the justification to choose How much will this cost? this project vs. another? Is it capital spend or expense? Are there costs to consider outside Cost of dollars? What impact could estimated variables have on the project? Risk What is the risk if we don’t proceed What is the financial benefit to the with the project? organization by making this investment? Return Are there benefits to consider outside of dollars? Leaders will evaluate your business Decision case and provide feedback on Projects are regularly reviewed to proceeding with the project. assess organizational impact of the project as well as lessons learned. Evaluation This may result in a scope change throughout the project. 41 Closing P&L Impact of Investments Revenue Cost SG&A EBIT The best business case is what helps use make the best business decision. 42 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 43 Finance Definitions Profit & Loss Statement (P&L): A summary of revenues and expense Direct Contribution Margin (DCM): Primary measure for HNI to over a period of time, typically a month, quarter, or year. Also known as understand how profitable each unit of product is once direct costs are Income Statement. accounted for. This aids in pricing and profitability analysis. Revenue – Expenses = Profit/(Loss) Sales – Variable Cost = DCM Revenue: Total amount of money generated from selling good or Earnings Before Interest & Taxes (EBIT): Profit the company makes services before any costs or expenses are deducted. from regular business operations after deducting operating expenses # of Unit Sold x Price Per Unit = Total Revenue from gross profit. Often used to measure an estimate of cash flow. Gross Profit – Operating Expenses = EBIT Cost of Goods Sold (COGS): Direct costs attributable to the production of goods sold. This includes materials, labor, and manufacturing Freight & Distribution (F&D): Costs we incur to store and transport our overhead. product. List Sales: Total sales amount based on the listed price of goods, before Sales, General & Admin (SG&A): Covers non-manufacturing costs any discounts, allowances, or adjustments. “Full price” such as: marketing, merchandising, sales efforts, and general management. Invoice Sales: Total sales amount as listed on the invoice sent to Gross Profit: Difference between revenue and COGS. It shows the customers, reflects any agreed-upon discounts, promotional pricing, or profit a company makes after deducting the costs of producing the goods other negotiated terms. or services sold. Revenue – COGS = Gross Profit Net Sales: Actual revenue earned from sales after subtracting any discounts and allowances. 44 Presenting with Purpose: Intentional Development Impactful presentations are created by selecting accurate, relevant content that enhances credibility, engagement, and clarity. Reasons for Learning Focus  Enhanced Credibility: Correct and relevant content builds trust, allowing the presenter to create a compelling, complete case that demonstrates expertise, answers audience questions, and strengthens persuasiveness.  Increased Understanding: Visualizing and providing concise yet complete information helps the targeted audience quickly grasp complex concepts, making it easier to interpret trends and insights, leading to more informed and effective decision-making.  Clear Communication: Tailoring presentations while staying consistent and on-brand helps convey accurate information succinctly and avoids misinterpretation, allowing for clearer, more impactful communication that supports strategic goals. 45  HNI Presentation Considerations Refine Your Plan Your Design with Master Your Story Flow Intention Message Accuracy of Order of Content Adherence to Prepare in Information Templates Advance Focus of Material Clear Objective of Use of Provide Resources the Presentation Visuals/Graphics as Needed Agenda for Audience Speak to the Lens Use of Space and Reflect After of the Receiver Color All steps of the framework should be taken through the lens of the receiver.  Component Questions to Consider  Has data been double counted? Accuracy of Information  Has any data been omitted without clarification?  Does your summary of data capture the accurate and complete story of the data? Refine Your Story  What do you want the audience to walk away Clear Objective of the with? Presentation  What is relevant to your audience? Current Ability Level  What is the audience’s background and style Poor ---------------------Good----------------------Excellent Speak to the Lens of the preference? Receiver  What is the audience’s knowledge level on thus specific topic? Component Questions to Consider  What is the best flow to tell your story through Order of Content the lens of the receiver?  What progression logically tells the story? Plan Your Flow Focus of Material  Is your message concise?  Which aspects should be emphasized for high impact? Current Ability Level  What topics will be covered? Agenda for Audience  What is the timing for each section? Poor ---------------------Good----------------------Excellent 47  Component Questions to Consider Adherence to Brand  Is the appropriate template being used? Templates  Am I following it? Design with Intention  Is the data portrayed accurately and clearly? Use of Visuals/Graphics  Have I used Smart Art to portray content? Current Ability Level  Are words and visuals balanced? Poor ---------------------Good----------------------Excellent Use of Space and Color  How can white space and color be leveraged to focus the audience? Component Questions to Consider  What will be the talk track to stay focused and emphasize key pieces? Prepare in Advance  Do you need to dry run your plan with a peer/leader? Master Your Message Provide Resources as  Should you provide a pre-read? Needed  Do you need handouts? Current Ability Level  Who could provide feedforward post Reflect After presentation? Poor ---------------------Good----------------------Excellent  What areas could be improved upon next time? 48  Limit Text: Aim for no more than 6-7 lines of text per slide, with around 6-8 words per line. Ensure there are no “hanger” words. Use Bullet Points: Present information in bullet points rather than full paragraphs to enhance clarity and make key points stand out. Sub- bullets should directly relate to headers they are under. PowerPoint Prioritize White Space: Ensure there is ample white space around text and images. This helps prevent clutter and makes the slide more visually Best Practices appealing, aiding comprehension. Keep Font Size Legible and Consistent: Use template fonts and ensure they are the same in size across slides. Focus on One Main Idea: Limit each slide to one core idea to maintain audience focus and prevent information overload. Use Visuals with Consistent Alignment: Incorporate images, charts, or icons to convey information where possible, reducing the need for extensive text. Ensure they are aligned appropriately. 49 Accuracy of Information Tools MECE Hierarchy of a Summary Summary Mutually Exclusive – Data or arguments do not “overlap” or Statement are not “double – Collectively counted” exhaustive summary of dataset Primary Collectively Exhaustive – Data or arguments are inclusive of Bullets – Mutually the full data set exclusive from one another and tied to summary statement Sub-bullets – Subsets of data or a “click deeper” of the primary bullet and mutually exclusive to that primary bullet Example Inaccurate data leads to the risk of audience confusion, overlooking critical information, flawed decision50 making, and loss of stakeholder trust. Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ LRP Deployment Agenda 8AM: WPF Long Range Plan (LRP) Deployment 2024 Results 2024 Hoshin Wins Market Dynamics 2025-2027 LRP 2025 Hoshin Breakouts 12PM: Lunch + Activity 1PM: Effective Management Systems Workshop Cascading the balanced scorecard Developing a functional scorecard Developing tiered mgmt. (or other) for a function 3:30PM: Business Ownership Guidebook Activity 52 | HNI Workplace Furnishings Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 53 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_________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 58 Management Systems: Intentional Development Create a culture of accountability, alignment, and agile decision-making while empowering members. Reasons for Learning Focus  Consistency and Alignment: Provides a structured approach to ensure that team activities and objectives are consistently aligned with organizational goals. This alignment makes it easier for leaders to guide their teams in ways that directly support the company’s broader strategic vision.  Accountability and Performance Tracking: Enables leaders to set clear expectations, monitor progress, and measure performance effectively. This accountability structure ensures that team members understand their roles in achieving both functional and organizational outcomes, fostering responsibility and continuous improvement.  Empowered and Efficient Decision-Making: Access to real-time data and insights allows for streamlined processes, improved communication, and quicker adjustments, empowering teams to remain agile and responsive to changing organizational needs. 59  Management System - Defined A structured framework to coordinate, control, and improve activities, processes, and performance to generate outcomes. Forecast Plan Execute Evaluate Improve the work the work the work the work the work Demand Set goals Perform Measure against KPIs Implement corrective Resource requirements Breakdown tasks to Monitor day-to-day Gather feedback from actions to address Challenges smallest possible Collaborate stakeholders gaps Risks increments Adjust Measure variances Train and develop Establish timelines Address bottlenecks Assess efficiency and Use continuous Allocate resources Ensure adherence to effectiveness improvement or Develop project / standards innovation tools operational plan Prioritize tasks Communicate roles & responsibilities HNI | 60 Functional Priorities Examples 1. Functional Priorities 2. Function Level Metrics Which 3 KPIs from the Balanced Scorecard does your function What metric(s) can you track monthly in your functional team most directly deliver results to? that lead to the organization’s FY Target? KPI: Metric: FY Target: FY Target: KPI: Metric: FY Target: FY Target: KPI: Metric: FY Target: FY Target: 61 Scorecard Template 62 Tiered Management in Practice - Framework 63 Tiered Management – Draft your own! 64 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 65 Business Ownership: Intentional Development Foster efficient collaboration, informed decision-making, and quicker problem-solving across the organization. Reasons for Learning Focus  Streamlined Collaboration: Understanding which functions own specific responsibilities helps members connect with the right people quickly, enabling smoother, more efficient collaboration on projects and initiatives.  Informed Decision-Making: Clarity with each function’s role provides a clearer picture of the organization’s workflow, helping members make better-informed decisions that consider cross- functional impacts.  Enhanced Problem Solving: Awareness of ownership allows members to resolve issues faster and creatively leverage expertise from and within different functions, leading to more effective and innovative solutions 66 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 67 Problem Solving: Intentional Development Problem solving requires critical thinking skills to analyze information, identify needs, and develop root cause solutions. Reasons for Learning Focus  Drives Optimal Business Outcomes: Utilizing data is critical for prioritization and focus of continuous improvement. When leaders have a clear understanding of opportunities that require solutioning and prioritize them in a way that promotes efficiency, the team and overall organization thrives  Improves Decision Making: Leaders who can analyze information, evaluate options and identify the best path forward to deliver effective decision  Increases Collaboration: Working together as a group is a critical part of problem-solving  Encourages Creativity: Creativity allows people to approach problems from new angles which give the organization an edge 68  Todd Murphy Vice President Business Process Improvement (BPI) Business Process Improvement The Business Process Improvement (BPI) team plays a pivotal role in fostering a culture of continuous improvement throughout the organization. We are dedicated to training and educating members on lean principles, supporting the identification of opportunities, driving problem-solving efforts, and applying lean methodologies to implement effective improvements. Paul Engstrand Alex Jumbo Ken LaVerdi Martin Moreno Joe Rutz Lean Development Manager Lean Development Manager Lean Development Manager Lean Development Manager Director, Lean Horizons Lean Management Training/Data Leadership Tiered Hoshin Support Systems Analytics Development Management Leadership Operations Data Science Problem Solving Member Development Assessments Lean Coaching Training and Engagement Lean Training and Process Facilitation Problem Solving Transformation Development Improvement Program Servant Process Problem Solving Problem Solving Implementation Leadership Improvement 69 Framework of Problem Solving Define the Understand Define Define Root Eliminate Implement Problem Current Detailed Cause Root Cause Standard State Problem Work and Statement Verify Elimination of Problem 70 Prioritize Current State: Pareto Bar graph arranged with the longest bars on the left and shortest to the right. It visually depicts which situations are more significant. 71 Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 72 Understand Current State: Why? Informed Decision Making: Align team on common understanding of reality Attention to Detail: Thorough investigation to avoid missing pertinent details Utilization of Resources: Focuses resources to the true problem vs the perceived problem Joe Information-gathering Technique (5W2H) Problem: What is the problem that needs to be solved? Why is it a problem? (highlight the pain) Where is the problem observed? (location, products) Information-gathering Technique (5W2H) Who is impacted? Who is not impacted? (customers, businesses, departments) When was the problem first observed? How is the problem observed? (symptoms) How often is the problem observed? (error, rate, magnitude, trend) Detailed Problem Statement – Why? Defining a detailed problem statement is essential in problem-solving because it focuses the team on the specific issue that needs to be addressed, setting boundaries for the root cause analysis. Detailed Problem Statement – Why? Defining a detailed problem statement is essential in problem-solving because it focuses the team on the specific issue that needs to be addressed, setting boundaries for the root cause analysis. Detailed Problem Statement Criteria Clarity Time-Bound Quantifiable Assumptions Clearly and concisely describe the Give context problem and to the Include data its effects Do NOT problem by to help include any setting describe the assumed parameters scope and root causes on the time impact of Focused on or solutions it has been the problem one observed problem, not many Alex Problem Statement Examples: Activity: Circle the parts of this statement that do not meet the detailed problem statement criteria. INEFFECTIVE PROBLEM STATEMENT Recently, our network has been experiencing intermittent speeds likely due to outdated servers, which is causing delays. We need to migrate all of our databases to the cloud in order to solve these performance issues. Problem Statement Common Pitfalls Vagueness: Generalized statements that fail to include critical details about the problem Lacks Data/Evidence: Statements that do not include objective, quantifiable evidence to support the original claim Solutions-Oriented: Statements that include a call-to-action to alleviate the symptoms of the problem being described Root Cause Presumption: Statements that bypass root- cause analysis and claim the source of the problem is already identified Multiple Problems: Statements that contain more than a single primary issue, related or unrelated Active Perspective: The Problem Statement Problem Statement Pitfall "In Q2, our overall customer satisfaction score decreased by 20%. We believe the drop in score is due to customer support team's inability to handle product returns efficiently" "Lately, customers have been complaining more about warranty claims, and it's causing a lot of issues" "Since the end of Q1, our customer response times have seen a 14% increase. We need to implement a new ticketing system to streamline our customers queries and reduce response times." Detailed Problem Statement Define Root Cause – Why? Defining the root cause allows the team to focus on solutioning the problem vs the symptom which prevents recurrence in the future. Define Root Cause – 5-Why Activity Detailed Problem Statement Why is that? … and Why is that? … and Why is that? … and Why is that? … and Why is that? Root Cause to Eliminate Corrective Action Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 85  Leadership Cohort Reflection Practical LRP and Effective Applied Innovation Presenting HPO Financial Business Management Problem- Through AI with Purpose Acumen Ownership Systems Solving What challenges have you faced in What have you discovered about In what ways can you leverage building a high-performing culture, and your own strengths and areas for the unique strengths of your how can you overcome them using growth in leading yourself? How team to contribute to broader insights from this session? will you leverage these insights? organizational goals?  Leadership Cohort Action Practical LRP and Effective Applied Innovation Presenting HPO Financial Business Management Problem- Through AI with Purpose Acumen Ownership Systems Solving What are three actions you will take as a leader with others, self, and the organization? Action 1 – Leading Others Action 2 – Leading Self Action 3 – Leading the Organization Notes____________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _______________________ _________________________________________________________________ _________________________________________________________________ ______________________________________ 88