Jonathan WainbergVice President

GE Retail Finance

GE’s Tool Kit:

How to Foster Innovation and Operational

Improvement within a Retail Organization

Mike LaChapelleVice President

GE Commercial Finance

What is Access GE?

“The goal of our ACFC initiative is to bring the entire ‘GE toolkit’ to our Customers to help ensure their success..whatever GE capabilities are most important to them and will have the biggest impact on their bottom line.”

Jeffrey ImmeltChairman and CEO, GE

At the Customer, For the Customer (ACFC)

Our Toolkit

A set of game changing tools and process improvement methodologies proven successful within GE…and with customers

• Collaborative Problem Solving (Work-Out)• Change Management (CAP)• Acquisition Integration • Strategic Growth Workshop• GE Learning Center (Crotonville)

CFO DayAcquisition Integration RoundtableLeadership for Customers

• Team Development• Innovation Facilitation Tools• Strategic Planning Essentials

• Lean Overview / SimulationKaizen Events including 5SValue Stream MappingSMED / Quick Changeovers

• Six SigmaExecutive Overview / SimulationGreen Belt TrainingProject Coaching

• Process Mapping• Project Management Training

Access…GE’s Tools & Methodologies

Function / ProcessHR Performance ManagementIntegrity & DiversityFinance - Treasury & Hedging Sourcing & Outsourcing Call Center ManagementEnvironmental, Health, SafetyNew Product IntroductionGE Operating RhythmShipping & LogisticsSales Force EffectivenessIT & DigitizationShared Services – Payroll, T&LMarketing & Branding

Access…GE’s People & Experience

Access GE experts to leverage our industry breadth & functional knowledge

GE Core BusinessesInfrastructure – Aircraft, Rail, EnergyIndustrial – Appliances, LightingHealthcare NBC UniversalGE MoneyCommercial Finance*Operations in 100 countries

Staff Industry ExpertiseAerospace, Auto, Chemicals,Communications and Entertainment,Construction, Food/Beverage, Forest Products, Manufacturing, Healthcare, Media, Retail, Steel,Transportation

Emerging MarketsChinaIndiaEastern EuropeRussiaBrazil

GE InitiativesGrowth as a ProcessNet Promoter ScoreEcomaginationGlobalizationEnterprise Selling

Our Toolkit

GE Retail PartnersLuxury, Discounters, Apparel, Jewelry, Home Furnishings, Consumer Electronics, Auto/Tire, Sporting Goods, Health & Personal Care

Retail ACFC ExamplesCustomer Activity

Retail Drug Store Chain Increase Customer Traffic

Electronics Retailer Improve Order-to-Fulfillment Process

Sporting Goods Implement Warehouse Management System

Computer Retailer Project Management Training

Furniture Retailer Business Continuity Planning

Department Store Chain HR/Benefits Communication Process

Department Store Chain Internal Store Communications

Sporting Goods Selling Skills

Department Store Chain Increase Inventory Turns

Customer Department Store Chain

Customer Issues and Objectives• Redesign Store Communications to better serve Store Managers and Staff• Improve Timeliness and Accuracy of Communication• Reduce Repetition, Focus on Critical Items

ACFC Engagement• GE facilitated a 1 ½ day Work-Out on Store Communications

Customer Benefit • Streamlined process for Store Communications designed around needs of Store

Managers and Staff

"Work-Out was a great tool to produce meaningful solutions to a complex problem in a simple way. Really enjoyed the session. Exceeded expectations." -- Store Manager

"Great way to raise/hash through the issues/opportunities quickly. Guardrails help maintain structure to conversation" -- Store Operations Manager

"Lots of value taken from this. Looking forward to sharing this with my peers." -- Buyer

"Actionable, understandable, well thought out. Very good tool! Over exceeded my expectation" -- Brand Director

ACFC Snapshot: Improved Store Communications

Customer Electronics Retailer

Customer Issues and Objectives• Learn about GE’s Change Acceleration Process (CAP)• Apply CAP Tools to In-Store Services Reorganization/Rebranding Initiative• Ensure Associates’ Support for Initiative

ACFC Engagement• GE facilitated a 2 day CAP Session

Customer Benefit • Detailed Action Plan for Successful Launch of Rebranding Initiative

"Very valuable - learned a great deal that I will apply.“ – Director of Services, Retail

"Very well done....extremely professional and you did a very good job calibrating the pace and level of detail to the audience and situation.“ - Director of Business Transformation

"Greatly exceeded expectations. Facilitators had great insight into our goals and mission.“ – Director of Retail Transformation

ACFC Snapshot: Change Acceleration Process

Customer Specialty Retailer

Customer Issues and Objectives• Learn about GE Best Practices in Inventory Management• Develop Action Plan for Inventory Reduction• Develop Experience in Team Based Problem Solving

ACFC Engagement• GE facilitated a 2 day Work-OutTM on Inventory Management

Customer Benefit • Clear plan to tackle $40 million Inventory Reduction target

"Very well organized, presented very well. Thanks" - Senior Manager, Merchandise Planning and Allocation

"Insightfully facilitated, good real-world analogies, interesting info that was never boring, useful techniques. Glad to see we did this." - Senior VP Manufacturing & Quality Control

"Liked the structure, tools, and the ling to a real opportunity for my team and company" - VP Merchandise Planning and Allocation

"Process is excellent for producing workable objectives" - Executive Vice President/CIO

ACFC Snapshot: Inventory Management

Customer USA Drug

Customer Issues and Objectives• Improve Customer Service• Increase Customer Traffic

ACFC Engagement• GE facilitated and supported USA Drug through the development of a customer service

program that included additional training, sharing best practices, measurement systems, and reward and recognition programs

• The customer service program was rolled out in 18 stores for 14 months

Customer Benefit • Same store customer count up 3.4%• Prescription Sales Growth rate increased 1.6X

“We were very impressed with GE’s ACFC program. We expected our lenders to be focused on our performance, but GE went above & beyond. They actually helped us improve our operating performance. The initiative delivered a tremendous level of value and helped drive our business growth.”

John TrainorUSA Drug, SVP Finance

ACFC Snapshot: Increased Customer Traffic

Company Highlights• Tourneau is the world’s leading retailer of luxury watches

• We operate:– 34 stores in 13 states– Watchgear: 8 stores in 4 states– Outlets: 3 in 3 states– 6 stores in the Caribbean and China

• Each Senior management member has at least 20 years retail experience with an average of 8 years with the Company

Tourneau Projects with GE

GE Tools i.e.

• Lean - White Plains Backroom Project

• Innovation Workshop – Summer 2007

GE Tool: Lean

Lean- White Plains Backroom Project

Objective: Streamline Back Office Processes and Organize Record Keeping in Tourneau’s White Plains Store

Tourneau “Lean” 5S Event: Store Back Office

What is 5S?

1. Sort – Eliminate unneeded items2. Simplify – A place for everything3. Shine or Sweep – Keep the workplace

clean4. Standardize – Identify work standards5. Sustain or Self Discipline – Keep it going!

Before

During

After

Details

• Unnecessary Paperwork and Promotional Items Eliminated

• Space Freed Up • Retained Items Labeled for Easy Retrieval

and Timely Disposal• Paperwork Handling Processes Improved

Tourneau “Lean” 5S Event: Store Back Office

Results

GE Tools: Innovation Workshop June 2007

Held at GE Global Training Center in Crotonville, NY

• Interacted with other GE Retail Customers

• Shared insights from different business models

(Grocery, Sporting Goods, Furniture)

• During break out session, utilized Customer

Journey Mapping tool

• Generated new initiative creating unique Top

Customer Reward program utilizing Vendor

Incentives

GE Innovation Tools & Exercises• INNOVATION ASSUMPTIONS

Discuss the common assumptions about innovation to start a dialogue.

• DEFINING AND CLASSIFYING INNOVATION Explore various types of innovations to clarify your own innovation goals.

• INNOVATION FRAMEWORK Discover the mindset and behaviors essential to effective innovation.

• ADOPTING A CURIOUS MINDSET Ask the simple questions that challenge our most basic assumptions about the world around us.

• RINGSIDE Look at how major trends are affecting our business and providing new opportunities.

• HYPOTHESIS MAPPING Sharpen your hypothesis and determine the factors that will lead to success.

• UNLOCKING INNOVATION POTENTIAL (THE RIPPLE EFFECT) Trace the potential impact of an idea to get ahead of the changes it spawns.

• WHAT BOX ARE YOU IN? Re-define your context to find new customers and markets.

• CUSTOMER ECOSYSTEMS Map the system of players in the industry to innovate more holistically.

• CUSTOMER PROFILING Explore customers’ lives and motivations to uncover unmet needs.

• MAPPING CUSTOMER JOURNEYS Look at the customers’ entire experiences to find ways to create value at every touchpoint.

• PROTOTYPING YOUR IDEAS Unstick your thinking and get clearer about how to test and evaluate your idea.

• DEVELOPING INNOVATION TRAITS Diagnose your strengths and weaknesses on innovation traits.

• INNOVATION ENVIRONMENTS Explore the types of environments that will best reinforce your innovation goals.

• INNOVATION ARCHETYPES Learn the nine essential roles in innovation, and who in your organization can play each role.

MAPPING CUSTOMER JOURNEYS

LOOK AT THE THREE BASIC JOURNEY STAGES TO IDENTIFY OPPORTUNITIES TO

CHANGE THE STATUS QUO AND ENHANCE THE CUSTOMER EXPERIENCE.

Exploring the customer’s journey to identify innovation opportunities.

• While no two experiences are the same, there are three basic stages to every journey. Each provides an opportunity to change the status quo and tap into customers’ unmet needs.

We become aware and we learn about a product, service, or brand.

AWARENESS

We choose and we buy specific goods, knowledge, or services.

COMMITMENT

We use, enjoy, re-purchase, and share our experiences with others.

USAGE

Examples of customer journey

By focusing on universities, Dell became widely used and known by students who spread word about the brand to their friends and family.

AWARENESSDell wanted to offer customers cheap, customizable PC s, so they reinvented how consumers select and purchase by selling directly through an online portal.

COMMITMENTDell backs up their purchases with 24 hour online and phone support, and onsite visits for the problems they can’t solve over the phone.

USAGE

CUSTOMER JOURNEY MAPPING

– Identify the customer (business customer or end consumer segment).

– Describe the customer’s current experience and its anomalies or points of frustration.

– Brainstorm what customers desire, what is possible, and what role your company can play.

– Identify which ideas could benefit both types of customers.

At the Customer, For the Customer

Growing with Our Retail Partners