IABC PPR Inaugural Conference

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Winning Workplace

• The Story of Our Success

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What is Rolls-Royce Engine Services-Oakland?

• Repair and overhaul facility for aircraft engines
• FAA Repair Station, ISO 90012000, 14001, AS9110
  certified
• 2 shifts450 non-union employees
• Complete in house remanufacturing and on-site
  testing
• US Navy, US Army, USMC, US Air Force and civil
  and defense aircraft for more than 25 countries

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Who is Rolls-Royce Engine Services-Oakland?
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• Diverse community 49 minority, 20 female
• Long tenure
• Very skeptical
• Lots of initiatives that have fizzled out
• Silos and top-down management structure
• Small HR department focused on benefits and
  policy communications
• No communications department

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Reshaping Our Culture
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• 2004 Global survey results showed less than world
  class scores in several areas
• Communication
• Trust in leadership
• Quality
• Change had to occur at the core level to have
  sustainable impact
• Front-line employees needed to be given
  ownership of the companys future
• Imperative to increase business knowledge and
  trust throughout all levels and areas of the
  company
• Drive business results through engaged and
  informed employees

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Focusing Leadership on Change
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• Senior Leadership doesnt have all the answers
• We need to enlist our front-line employees like
  never before
• Change must happen no more denial
• Our success is integral to our company business
  plan
• Chose core team (4) to ensure a constant, visible
  face of Senior Leadership associated with the
  program
• Not just the Project Champions responsibility

This wont feel comfortable, but we are going to
do it!
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Convincing Front-Line Employees
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• Mobilize and be visible Insist leadership walks
  the talk
• Communicate the plan to everyone Consistent
  messaging from the beginning
• Enlist outside help L.M. Dulye Co.
• Link to the customer Tie the message of
  business success and customer satisfaction with
  the need for change
• Involve everyone Change from top down
  directives to integrated team approach
• To communicate business realities, solve business
  problems

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Dedicating Resources
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• Assess and dedicate budget to support program
• Time - 26 employees x 10 hours/week of project
  time
• Program Management Keep work flow moving while
  team members are away from job
• Financial commitments also included reallocated
  facilities, training, increased overtime and
  diversions
• Teams selected through voluntary process to
  mirror department structure and plant diversity
• Nominations reviewed and discussed by Senior
  Leadership Team
• Create a face-to-face working partnership with
  Senior Leadership

Dedicating resources demonstrates to employees
that leadership is committed to the program.
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Rely on Facts, Not Assumptions
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• Root cause analysis of survey and focus group
  data Identified cultural, system, organizational,
  and other factors driving mistrust and
  communication breakdowns
• Factors included
• Lack of Accountability
• Micro-Management
• Resistant to Change/Fear of Thinking Outside the
  Box
• Top-Down Management  
• Information not shared/Lack of Big Picture
  Awareness
• Ineffective Policies, Procedures Systems
• Inconsistent management use of information
  systems

Root cause factors had direct adverse effects on
the bottom line.
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Team Recommendations

• Create a regularly scheduled, leadership
  Walk-Around process for all senior and middle
  managers
• Elevate Winning Workplace weekly huddles to
  departmental-level business huddles
• Establish an Employee Communications Team
• Establish a Voice of the Customer process to
  include six - eight customer events per year
• Develop a meeting effectiveness program for all
  department and company meetings
• Create and implement a continuous Leadership
  Learning and Development Program

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Downward Becomes 2-way Communication
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• Front-line employees have an active and involved
  role in the communication process
• They have the same responsibility in leading
  communication as Senior Leadership
• They are highly influential with peers
• They reinforce key messages and provide direct,
  unfiltered feedback
• Communication partnerships are created enabling
  people to speak and be heard
• Open dialogues
• Real conversations
• Feedback in all directions

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New, Improved Avenues for Two-Way Communication
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Town Halls
Info Center
Team Huddles
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New, Improved Avenues for Two-Way Communication
Weekly Newsletter
VIP Visits
Customer Visits
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Accountability through Metrics
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Quarterly All-Employee Progress Measurement
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Accountability through Tracking and Reporting
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Weekly Leader Walk-Around Report
Winning Workplace goals tied to Senior
Leaderships personal annual goals.
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3 Rs Success Factors
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• React and address issues of accountability
• Review opportunities for improvement
• Reward employees with ownership
• 42 Employees have participated in action teams, 8
  of these have been promoted or had their jobs
  expanded
• 3 Have presented the Winning Workplace process to
  the CEO and President of RRNA and his first line
• 6 Have presented this story at conferences and
  forums
• 11 Employees have served on the Communications
  Team
• 4 Employees volunteer on the Voice of the
  Customer Team

Rs
The Front-Line Can and Will Deliver!
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Seeing Results 2006 Global Survey
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• 77 of hourly employees feel work is accomplished
  as a team, up from 62
• 70 of all non-management employees feel they
  communicate well with their leader, up from 54
• 10 improvement across the board in all responses
  related to quality

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Seeing Results Internal Operations

• Productivity
• Better understanding of how their job fits into
  the overall process, employees no longer work in
  a bubble
• Everyone is given the big picture
• Quality
• Quality escapes and audit results are explained
  in detail and published for all employees
• Operational Savings
• Employee Suggestion Program 40 suggestions /
  Over 1.5M in estimated savings
• Engine Production Cells 23 reduction in labor
  hours / 33 in turn time

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Sustaining the Process

• Consistent measuring, tracking, and reporting
• Front-line employees own the measurement process
• Report successes and failures
• Run it like a program, not an event
• This is a sustainable culture change

Make it part of your companys DNA.
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Thank You
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