"All the improvement work we do is trying to change the behaviors of the people in the plant."

1. What Is A Performance Culture™?

2.  Strategic Asset Management Inc. (SAMI), founded in 1996, has
spent many years researching the Performance Culture
 The Performance Culture model has since proven to have a
remarkable capacity to:
 Identify obstructive issues
 Implement sustainable improvements, and
 Provide significant financial returns for those companies that utilize it
 This presentation describes why the Performance Culture may
be the answer to your organizations issues
Creating the Performance Culture

3. The
Performance Culture
 A proprietary series of models, tools and
methodologies launched in 2012 that provides a
unique approach to organizational improvement
 The specific path to Performance Culture varies
for each company but typically includes:
 Organizational alignment initiatives
 Personnel development
 Efficiency enhancements
 Optimized cost structures
 Increased production volumes
 Benefits of a Performance Culture include:
 Enhanced productivity
 A motivated workforce
 Higher employee satisfaction
 Improved asset reliability
 Reduced waste
 Increased efficiencies
 A safer work environment
…and an excellent Financial Return

4. The Performance
Culture Rationale
You must first understand the
drivers of your Company’s
performance…
Performance Causes
Performance ResultsBEHAVIORS
• Leadership
• Training & Development
• Communication
• Performance Management
PRACTICES
• Business Processes
• Work Management
Processes
• Production Processes
• Work Methods
EQUIPMENT
AVAILABILITY
• Preventive and Predictive
Maintenance
• Tools (RCM, RCA,
Statistical Analysis)
• Equipment Condition
• Focused Reliability
Improvement
PRODUCTION
RELIABILITY
• Process Control
• Loss Mapping
• Predictable Supply
Chain
“Fixing your Performance Causes (Behaviors & Practices) is
the ONLY way to sustainably improve your Performance
Results (Equipment Availably & Production Reliability)!”

5. Performance Culture Domains
 Purpose, People , Predictability ,
Performance
 Enabling domains (Purpose and People)
focus on leadership and organizational
development
 Benefit domains (Predictability and
Performance) focus on elements which
drive the financial results of the enterprise
Performance Culture Model
The 4 Domains:
Performance, People
Predictability, Purpose

6. Developing
Ownership
Performance Culture
Plan
IMPLEMENTATION
Continuous Improvement
Loop
SAMI’s Performance Culture
Process Develops Ownership
and Advocacy
Performance Culture Planning identifies path to
Success

7. Keys activities to
creating a Performance
Culture
1. Baseline Evaluation
2. Design and Definition
3. Behavioral Coaching
4. Information Management

8. Baseline Evaluation
 Purpose - to understand the magnitude
of the financial opportunity and the
specific gaps
 Approach - data-driven evaluation
performed to focus on the current
execution of business processes,
supporting behaviors, and overall
performance
 Outcomes - definition of the stable
cultural state and resulting levels of
performance

9. The Performance
Culture Model
*Baseline example is from actual client data measured
2014
Performance Culture Baseline*
Performance Culture Model

10. Design & Definition
 Purpose - design detailed business
processes and define the supporting
behaviors required to sustain a new level
of performance
 Approach – engage the organization to
develop ownership of the changes
 Outcomes
 enhanced business processes
 recognition of functional
interdependencies
 defined measurement and reporting
 understanding of new behaviors, and
 recognition that new performance levels
are achievable

11. Improving One
Step at a Time
Key Building Blocks of
Change

12. Behavioral Coaching
 The journey to sustainable behavioral
change is a function of time, discipline
and leadership
 Purpose – embed the new processes and
behaviors
 Approach - coaching begins with
specific and detailed training on the new
behaviors and the respective business
processes
 Outcomes – new levels of sustainable
performance

13. ABILITYTOCHANGE
TIME
UNDERSTANDING
AWARENESS
BUY IN
COMMITMENT
ADVOCACY
The progression of Change
Cultural Change – is a
Progression of Behavioral
Changes
Culture Determines your Results!
Your behaviors and practices determine your uptime,
and overall production reliability…the holy grail of
manufacturing.
The Progression
of Behavioral
Changes

14. Information Management
 Organizations need comprehensive
information management systems to
understand performance variations
 Purpose – install adequate information
management systems
 Approach – define processes and
behaviors and configure supporting IM
accordingly
 Outcomes – timely information available
to manage continuous improvement
 Critical aspect of implementation -
measurement of behaviors and
sustainability gaps

15. APEX™ Performance Tracker
PERFORMANCE
CULTURE
0 6
6
0
X=PERFORMANCE METRICS
Y=BEHAVIORS
HIGH
PERFORMANCE
LOW
PERFORMANCE
UNSUSTAINABLE
SUSTAINABLE
ASSET 1
ASSET 2
Quarter 1
Quarter 2
Quarter 3
Quarter 4
 A SAMI Proprietary Tool Tracks Behaviors and Key
Performance Indicators
 Focuses on Desired Behaviors
 Measures Functional Behaviors
 Measures Key Performance Indicators
 Trends Performance Levels Over Time
 Measures Sustainability of Culture Change
APEX™ Tracks
Behaviors &
KPIs

16. Benefits of the
Performance
Culture
Benefits of the Performance
Culture
 Systemically Improved Production and Loss
Reduction
 High Equipment Availability
 Reduced Waste and Expense
 High Product Quality
 Predictable Production Levels
 Intimate Knowledge of Process and
Equipment Condition
 High Levels of Ownership, Accountability and
Cooperation
 Minimized Conflicts Among Competing
Interests
 Safe, Satisfying and Productive Work
Environment

17. Sequence of Performance Culture Creation
Process
Conduct PC
Evaluation
Score PC
Evaluation
Determine
Gaps
Develop Gap
Closure Plans
Execute Gap
Closure Plans Coach
Performance
Improvements
Re-Evaluate

18. Why Does This Approach Work?
 Fully aligned executive and operating leadership
 Operating leadership designs and owns the plan—
SAMI facilitates development and execution
 Business case is so strong, this becomes number
one initiative for many engagements
 Other pre-existing initiatives often get combined
into project
 SAP WMS
 Integrated Planning
 Behavior-Based Safety
 Contractor Management
 Maintenance Work Management
 System reliability engineering
 Engages everyone from Top Management to the
Shop Floor
An Approach
that Really does
Work

19.  Your only path to sustainable
performance improvement is by
focusing on your behaviors and
processes, which are the causes
that drive performance!
 The challenges of implementing
the Performance Culture are
many and difficult, but the
benefits are well worth the effort
Conclusion

20. Before you go…