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1. Broader & specific action plan: Gain two times of employee productivity Perspective: PRAN-RFL Group

8. Employee productivity and employee mind:

13. Leadership role and employee productivity

24. Behavioral Science and employee productivity:

49. Experience curve and employee productivity:

50. Fig: An 85% Experiene curve Deflated direct cost per unit Accumulated volume of production (units) 30 40 50 60 70 80 90 100 110 120 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0

52. Fig: Annual percentage of cost reduction due to experience effects 30% 10% 5% 2% 17.6 6.8 3.5 1.4 60% 12.6 4.8 2.5 1.0 70% 8.1 3.0 1.6 0.6 80% 3.9 1.4 0.7 0.3 90% Annual Market-Growth Rate Experience curve slope

53. Conventional strategic implications of the experience curve: High Profitability Low Unit Cost High Accumulated Volume High Market Share

61. Cost dynamics and employee productivity

63. Action Program: Broad & Specific Milestones Statement of performance & goals Statement of Benefits Resources Requested Specific Action Programs (7-9 Months) Broad Action Program (1-5 yrs)

64. Specific Action Program: Gain market leadership: A=Absolute First Priority, B=Highly Desirable, C=Desirable Marketing Chief of Staff October 2011 Marketing staff and external consultants 2 persons 200000 C 4. Improve market intelligence through marketing research efforts Marketing Manager June 2011 Marketing Organization 14 persons 1200000 B 3. Promotion based on rebates Marketing Manager September 2011 Advertising Department 2 persons 500000 A 2. Advertising Dealer Coordinator December 2011 Dealer coordination Department 14 persons 400000 A 1. Dealer training Responsibilities Scheduled Competition Manpower Requirements $ Cost Priority* Program Description

65. Trade-off relations and employee productivity

69. Business environment and employee productivity

71. Action programs as per the changes of internal and external environment to eradicate the system losses of employee productivity.

80. Key Result Area & Performance Measurements: -All previous factors have short and long-term dimensions. Balance between short & long-rang goals -Surveys Public responsibility -Statistical indicators -Periodic employee surveys Employee attitudes -Development programs -Inventory of portable people -Effectiveness of program implementation Personnel Department -Competitive standing -R&D and innovation in Engineering, Manufacturing, and Marketing Product leadership Output (value added)/Input (Payroll+Depreciation) Productivity Market share Market position Residual Income Profitability Performance Measurement Area

82. Critical success factors: Job cost budget/actual Performance to budget on major jobs -Turnover, absenteeism, etc. -Informal feedback. Company morale Bid profit margin as ratio of profit on similar jobs in this product line Profit margin on jobs -Company’s year of experience with similar products. -New or old customer -Prior customer relationship Risk recognition in bids and contracts -Change in market share (each product) -Growth rates of company markets Market success -Orders/Bids ratio - Customer ‘perception’ interview review Technological reputation with customers Price/Earnings ratio Image in financial markets Prime measures Critical success factors

83. Fig: The Data Cube Division A Division A Division A Consolidated International Division D Division C Division B Division A Business variables Business units Competitors Customers Industries Past Time Future

85. Competitive profile and employee productivity:

86. Competitive profile: *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak * * * o * o* * o o * o* * o o o o* o Location and number of plants Sizes of plants Ages of plants Integration Human resources Logistics of management systems Quality Procurement Capacity utilization Unionization Manufacturing ++ + E - - - Factors Area

87. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Location & number of sales offices Location & number of warehouses Human resources Distribution system Market research Price competitiveness Breadth of product line Brand loyalty Sales for productivity Distribution & service productivity Business image Marketing ++ + E - - - Factors Area

88. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak R&D Facilities Human resources Development of new products R&D funding Patents R&D and Engineering ++ + E - - - Factors Area

89. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Location of corporate headquarters Management competence Planning & control systems Reward system Delegation of authority Fitness of organizational culture & values Corporate image Quality of corporate staff Capability of negotiating with the environment Financial strength Management ++ + E - - - Factors Area

90. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Market share Sales growth Return on investment Return on equity Asset turnover Financial results ++ + E - - - Factors Area

91. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Product mix Quality Price Image Product lines ++ + E - - - Factors Area

92. Competitive strength and employee productivity:

93. Competitive strength: √ √ OVERALL ASSESSMENTS √ √ √ √ √ √ √ √ √ √ √ √ Manufacturing Marketing R&D and Engineering Management Financial results Product lines High Medium Low High Medium Low Future Current Areas

94. Competitive leadership and employee productivity:

97. Motivation and Reward system in the strategic mode: Observed group performance Observed individual performance Period of observation Short term Long term Fig: Determinants of managerial compensation Stock Options Bonus Incentive Plan Salary Increase

106. Thanking with gratitude