P L N 07 B O1 D Moore Organizational Performance Improvement

Naval Aviation Enterprise Continuous Improvement ExcellenceContinuous Improvement Excellence

Dale L. MooreNAVAIR AIRSpeed

Deputy Corporate Deployment Champion17-19 April, 2007

“We cannot solve our current problems with the same f i i ”level of thinking that created them”

Albert EinsteinAlbert Einstein

Business Models Are Critical to Enterprise PerformanceEnterprise Performance

• Are we thinking at the 50 ft 500 ft 50 000 ft or 500 000 ftAre we thinking at the 50 ft, 500 ft, 50,000 ft, or 500,000 ft view?

• Who are our Customers? Suppliers?• What do Customers want? What do Suppliers need?• How can we architect for system-level performance?• What are the critical elements to Organizational Excellence?• How do we synergize the critical links to organizational &

enterprise-level excellence?enterprise level excellence?• What does Organizational Excellence “Nirvana” Look Like?

Value-Add Cycle of Continuous Improvement

INNOVATION & CREATIVITY

1. DATA

INNOVATION & CREATIVITY

2. INFORMATION7. METRICS

PRODUCTIVITY

3. EXPERIENCE6. TECHNOLOGY

4. KNOWLEDGE5. PROCESSES

LEADERSHIP STRATEGY

LEARNING & COLLABORATIVE PROBLEM SOLVING

METHODOLOGIES & TOOLS

Innovation & Creativity: Connect the Dots, Relate & Re-Apply

Value-Add Cycle of Continuous ImprovementInnovation & Creativity: Connect the Dots, Relate & Re Apply

Innovation is critical to everything: 1 how we collect data and what data we collect1. how we collect data and what data we collect, 2. how we analyze and integrate data and information, 3. how we gain critical experience, 4. how we expand our knowledge, 5. how we create and institutionalize our future state

processes,processes, 6. how we apply and leverage breakthrough technologies, 7. how we replicate and maximize returns on our results, 8. how we collect and analyze our metrics, and9. how we continuously assess metrics to improve the

relevance and impact of the data we collect, and therelevance and impact of the data we collect, and the quality and returns of the Value-Add Cycle of Continuous Improvement.

Value-Add Cycle of Continuous Improvement• Data: Without high quality data systems, our ability to properly focus

and apply continuous improvement is severely limited.

• Information: Our ability to generate, filter and leverage the right information is an essential component for effective continuous improvement.

• Experience: Complex decisions, plans and strategies often rely on a foundation of experience from multiple experts in their fields, providing key inputs which can then be synthesized into optimum, integrated solutions with all aspects and risks fully considered –integrated solutions with all aspects and risks fully considered –leading to dramatic reductions in waste and costly rework.

• Processes: The application of process improvement, standardization and re-use enables extraordinary systemic improvements in efficiency and effectiveness to occur in a methodical, well-disciplined and synergistic manner.

• Technologies: Broad awareness and understanding of available technologies, their benefits, readiness/risks, costs and applicability to the Navy environment is a catalyst for success.

Value-Add Cycle of Continuous Improvement• Metrics: Provide the critical insight to effectively manage, plan

and continuously improve the Sea Enterprise

• Leadership/Strategies: Leaders must excel in developing strategies to achieve excellence in productivity, quality and effectiveness - continuously improving and seeking operational perfection and organizational optimizationperfection and organizational optimization.

• Methodologies & Tools Proactive identification and alleviation of system level constraints to– Proactive identification and alleviation of system-level constraints to enable the system’s performance to meet customer requirements.

– Mental models enable complexity to be simplified so that p y pimprovements can be identified and more effectively instituted.

• Learning: Application of knowledge and expertise through robust knowledge networks and knowledge communities to create new knowledge and apply that knowledge to maximum effect – an effects-based approach.

Value PropositionAchieving NAE Entitlement:

Minimizing Costs and Maximizing Value Added through the Methodical Application of enabling Knowledge,through the Methodical Application of enabling Knowledge,

Productivity Tools & Technology Application

Maximize Value-AddedCapabilities & Capacities

Productivity = CVA Output = f(KnowledgeM, ProcessesP TechnologyN,)

Capabilities & Capacities

y p ( g gy )Total Costs f(# of WYs, Rates, Inventory)

Minimize Non Value-Added & Value Added CostsValue-Added Costs

Where: M = Sum of Intellectual Capital Value Added Enhancements (ex. # trained X courses)N = Sum of Technology Value Added Transitions/Replications (ex. Projects X Pgms)P = Sum of Completed AIRSpeed Projects/Replications Value Added WY Capacities

Replication/Leverage Multipliers: Total Workforce (NAVAIR = 37,000)Total A/C (~4000, Total T/M/S)Internal/External Science and Technology Investment (MAJOR $)

Dependencies

Depends OnDepends OnKnowledge Training

OJTRecruitingNetworksCollaborationCollaborationExperienceExposure

“K l d i h i b li f“Knowledge is the experience, concepts, beliefs, or information that is communicated and shared”

- Verna Allee

“The only thing that gives an organization a competitive d th l thi th t i t i bl i h t itedge – the only thing that is sustainable – is what it

knows, how it uses what it knows, and how fast it can know something new!g

- Laurence Prusak

Renewing knowledge is the key to competitive advantageVerna Allee

The Knowledge Continuum

WISDOM Increasing Organizational

UNDERSTANDING

Increasing OrganizationalPerspective,Knowledge,

Comprehension, and Mastery

KNOWLEDGE

Mastery

DATA

INFORMATION

The question becomes: How do we maximize organizational “wisdom” across the continuum of the leadership, management, and technical operations?

“Knowledge networks are now so critical for the success gof the enterprise that we are beginning to rethink the basic concept of the value chain in business. We are evolving to

value networks of tightly interdependent exchanges of goods and services, knowledge and exchanges

of intangible value and benefits”

“The key elements of a knowledge culture are a climate of trust and openness in an environment where constant

l i d i t ti hi hl l dlearning and experimentation are highly valued, appreciated and supported”

“Trust in relationships determines the bandwidth of knowledge exchange and the extent of value creation potential”g

Strategic Organizational NetworksAgile/Flexible Organization

Typical Organization

Closed Network

• Low Performance

Entrepreneurial/Open Network

• High Performance

Local Reach Local and Non-Local Reach

• Low Performance

• Few independent sources of info

•“Effective size” is smaller

• High Performance

• Many independent sources of info

• Increased opportunities

• Little Diversity (more homogeneous)

• Dense Internal Flows

•“Effective size” is greater

• Greater Diversity

• External plus Internal Flows

Krebs, Knetmap.com

Knowledge Flow Assessmentvia

Social Network Analysis

Knowledge Social Capital

KnowledgeFlow

Knowledge Clumps

Social NetworkAnalysis

Knowledge“Flow”

Intellectual

Flow Measurement

Knowledge Creation via Exchange & Combination

OrganizationalLearning

Capital

Social Network AnalysisyThe “As-Is” Current State

Diagnosing the Flow of Critical KnowledgeGroup Leader

The “To-Be” Future StateImproving the Flow of Critical Knowledge

Group Leader

Team LeaderTeam Leader

Team LeaderTeam Leader

Organization B

Organization A

Team Leader

Organization B

Organization A

Team Leader

Organization C Organization C

Existing One-Way Knowledge FlowExisting Two-Way “Weak” Knowledge FlowExisting Two-Way “Strong” Knowledge Flow

LEGEND

Existing Two Way Strong Knowledge FlowNew Two-Way “Weak” Knowledge FlowNew Two-Way “Strong” Knowledge Flow

Dependencies

Depends OnProcesses # of Projects

$/P j t R li ti$/Project RealizationCultural TransformationInstitutionalizationReplicationInformation MgmtResourcesResourcesMethodologies/ToolsProject Mgmt/ExecutionE tEngagementAlignmentControls

Common Process Design IssuesUnclear/Undefined

Poorly Documented/ Defined Procedures

Lack of Performance Measures/Tollgates

Unclear/UndefinedResponsibilities &

“Checklist” ExpectationsPoor Understanding of Customer

RQMTS

METRICS

Emphasis onCorrection vice

Prevention

Feedback Loop

TASK

METRICS

DECISIONPOINTS

REVIEW/APPROVAL

POINTSINPUTS OUTPUTS

TASKScope is not clearly defined/

bounded

Inadequate Focus on critical objectives

External Dependencies/Undefined Linkages

DuplicatedActivities

Excess Complexity:Lack of Standardization

& Reuse

Nonvalue Added activities vice

CVA& euse CVA

Charles Cobb; Enterprise Process mapping

Current State Value-Stream MapVisualizing Product, Process, Information, & Financial FlowsVisualizing Product, Process, Information, & Financial Flows

ControlPoint

CustomerSupplier

ProcessStep 1

ProcessStep 2

ProcessStep 3

ProcessStep 4Step 1 Step 2 Step 3 Step 4

Resources 5 3 2 1Total Lead Time 3 days 5 days 7 days 2 daysy y y yValue Add Time 3 hours 7 hours 4 hours 1.5 hoursWork in Process 20 18 14 7Quality 90% 80% 50% 75%

Critical Acquisition Knowledge-based Flows & Nodes

OPNAV ASNPOLICY

RQMTS, FUNDS, STRATEGY ALIGNMENT

SYS RQMTS

PEOSYSRQMTS

BUDGETING/FUNDS

POLICY

MSFLEETTECH

RQMTS MS DECISIONS

TECHLIMITED

SYS RQMTS

SYSTEMSRQMTS

S&T

PMA RQMTS

FUNDS

LIMITEDCONNECTIVITY/

INTEREST

FUNDS/BUDGETING/

S&TINFRASTRUCTURE Competencies

TECHNICAL SOLUTIONSLOOP

S& Q STECHNICAL RQMTS

FUNDS

NEW & INNOVATIVEPRODUCTS

IndustryS&T RQMTSFLOWDOWN

& EXECUTION MGMT

The “HICVS” View Acquisition High Impact Core Value Stream

OPERATIONS &SUPPORT

PRODUCTION &DEPLOYMENT

SYSTEM DEVELOPMENT& DEMONSTRATION

CONCEPT &TECHNOLOGY

Acquisition High Impact Core Value Stream

INPUTS• RQMTS• BUDGET

OUTPUT METRICS:• PRODUCT(s) • COST• CYCLE TIMESUPPORTDEPLOYMENT& DEMONSTRATIONDEVELOPMENTBUDGET

• APCYCLE TIME

• QUALITY• SAFETY

Roadmap

S&T Innovation

StrategicData Analysis FC CFT Pilots &

Thrust AreasEVM, HICVS,S&T, SCM, T&E BOD

StrategicThrusts

EVMS&T T&E BOD

HICVS

SCMEVM PR 09/IWP

PR-09/IWPERPABC

EVM

S&THICVS

SCM

EVM

EVMHICVS

S&T PR-09/IWP

ERPABC

Identified Processes to “Improve,” “Replicate” and “Control”

Analysis Revealed 4 Key Focus Areas

Continuous Organizational ImprovementThe Consequences of:

Little’s Law*, Organizational Complexity & Non Value-Added Time Constraints vs. the Power of Early Planning, Architecture and Socialization

Checkpoint/

Ineffective “Premature” Launchw/o Adequate Planning, Architecture

& Socialization

“As-Is” Original ECD vs. Actual Completion

The Typical

Checkpoint/Review/Test

Scenario A

& Socialization

NVAyp“As-Is” Major Rework Loop

Effective “Mature”Launch w/Planning,

Develop TollgateChecklist

NVACosts

The “To-Be”Scenario B

Planning/Coordination/Design Cycle

g,Architecture &

Socialization in place

Time/Effort0

Incremental Improvement Loop SavingsInsert Tollgate

w/Checklist

(Labor Hour and/or Cycle Time)*Too Much Work In Progress Driving: Premature Launch, Cycle Time & NVA Costs

HICVS Observations

• Some Variation of Top Level HICVS (Limited Sample)• Variation below Top Level Processes Potentially High

(PMAs/IPTs)(PMAs/IPTs)• Greater Need for Standardization & Sharing of Best Practices• Lack of Awareness re. ACQ Best Practice

Documentation/TemplatesDocumentation/Templates• Need for improved HICVS Process Integration, Metrics &

Coordination N d f d fi d HICVS V l St M & RACI• Need for defined HICVS Value Stream Mgrs & RACI

• Need for Single Process Owners & Common Process Taxonomy

• Need Improved Agility to Adapt to Externally-induced Variation

• Need for Enterprise-level Process Map & Documentation Repository

• Need for Industry-focused HICVS Involvement

HICVS Productivity Improvement ProcessApprovedExecutionRoadmaps

PrioritizedThrust

Project Portfolios

(BB/GB/Kaizen)

Benefit/Effort

AssessmentHICVS/

AIRS d

ProjectExecution

IntegratedStrategicThrust

DEC

Project

Project

P j t

RoadmapsAreas (BB/GB/Kaizen) Assessment

B

AIRSpeed

IntegratedAnalysis

Thrust Area 1

StrategicTh

COMP

Project

Project

Project

RES

Project

B

E

HICVS SCM Thrust Area 2 O

SIT Project

Project

Project

Project

SULTB

E

HICVS

EVMT&E BOD

S&T

SCMERP ABC

PR09IWP

PEO/PMAGet-Well

Pilots

TION

Project

Project

Project

S

E

T&E BOD

Input Data

C dif C t l & T i

E

HICVSConfiguration

Control

Replicate Successes

Codify, Control & Train Process Updates

Control

NAE HICVS MULTI-GENERATIONAL PLAN (DRAFT MGPP)

Baseline HICVS MapVOS, VOC, VOB, VOPSME K l d

INPUTS PROCESS OUTPUTSACQ CPI Foundation

Specific HICVS Maps

HICVS Complexity VSM

SME KnowledgeCost of NAE

EVMIWP

ERP ABC

Initial Strategic Focus Areas (Y’s)& X-PEO/Competency Collaboration

PEO/PMA/IPT Variation AnalysisHICVS Complexity VSM

ID HICVS Mgrs*

y& Priority Opportunity Identification

HICVS RACILSS DMS HICVS Alignment

iGrafx Process Models/Simulation Devmt

ID Process Taxonomy

ID HICVS Metrics & Goals HICVS Mgmt Alignment

Updated ABC TaxonomyN-ERPABC Taxonomy

NAE BOD

ID Process Owners

ID Process Metrics & Goals

Process Owner RACI

Process Mgmt & Alignment

ACQ I t P i it F ADMS for S&T Projects Prototype

IWPTPTK

HICVS CVSM + ONR/OPNAV/ASN

HICVS CVSM + FRC

ACQ Input Priority Focus Areas

NAE-wide Fleet Support Focus Areas

DMS for Acquisition Prototype

DMS for Acquisition/S&T Programs Replication

iGrafx Simulation Recommendations

HICVS CVSM + Industry** NAE Extended Enterprise CPI Framework*Est. Council of Value Stream Mgrs for CPI** Est. Industry-wide CPI Forum

DMS for Acquisition/S&T Programs Replication

Importance of Multi-Strata Continuous Process ImprovementStrategic Enterprise Value Chain: Enterprise-level Opportunities Impact Levers

erin

g

$100 M $100 M

$100 M

• Linkage to customers (feedback loops)

• Strategic, policy, mission, organizational and process alignment and clarity

C lt h / t

Tact

ical

Clu

ste $100 M • Culture change / momentum

• Requirements definition

Operational High Impact Core Value Streams: Cultural Transformation,Standardization & Replication

Impact LeversStep change improvement in

ompo

sitio

n &

T

$10M $10M

Standardization & Replication • Step change improvement in business performance

• Reduce complexity, variation and increase efficiency

• Organizational alignment (Value chain stakeholders)

$10M

Stra

tegi

c D

eco ( )

$10M $10M $10M

Tactical Project ID & Selection: Project-level Benefits Impact Levers

S • Multiple tactical projects

• Quality

• Speed

• Cost

D t t d ti it

$250K

$250K

$250K $250K $250K

$250K

$250K$250K

$250K $250K

$250K $250K$250K $250K

j

• Department productivity

• Interdepartmental communication

$250K $250K$250K $250K

Dependencies

Depends OnDepends OnTechnology S&T Access

S&T ReadinessS&T ApplicabilityS&T Resources/CostsTransition ResourcesTransition ResourcesPMA/Fleet InterestReplicabilityR O IR.O.ICapability AlignmentNAE Value-Added

Dependencies

Depends OnDepends OnWorkyears Demand

Process Cycle Times# of Processes# of Platforms# of Major Events# of Major Events# & Extent of RequirementsAdministration/MgmtVariation Rework & QualityVariation, Rework & Quality

Dependencies

Depends OnDepends OnRates # of Direct Workyears

# of Indirect WorkyearsEOB NCWF DEPOTEOB, NCWF, DEPOTG&AProduction OH

Dependencies

Depends OnInventory Readiness

Inventory Control/PlanningBudgets/ResourcesAsset UtilizationAsset UtilizationDemandEquipment FacilitiesFacilitiesAircraftWeaponsSystems (ALRE)MaterielWorkforceWo o ceAgility/Flexibility

Strategy/Leadership

1 The 500 000+ ft View1. The 500,000+ ft View2. Systems-of-Systems Enterprise Architecting3. Understanding the Environment & Opportunitiesg pp4. Envisioning the Future5. Developing Plans and Strategies6. Building Alignment & Support – Change Leadership7. Deploying Strategies & Implementing Plans8 T ki P & D l i F db k L8. Tracking Progress & Developing Feedback Loops9. Rewarding Success

STRATEGIC MANAGEMENT SYSTEM - Phase 1AIRSpeed Case Example at Bottom

Strategic System Inputs Value-Added Analysis Output

Data Gathering

World Class Benchmarking

StrategicAssessment

Gap Analysis

Set Strategy

Voice of Customer

Voice of Strategy

Compare/Contrast

Voice of Employees

Voice of Business

ID Key Areas,Organizations,

Standards,Assessments etc

CreateDesired To-BeF t St t

Strengths

Weaknesses

OpportunitiesBusiness

YVoice of Process

EnvironmentalScan

• Trend Analysis

Assessments etc.

&

BenchmarkBest-of-the-Best

Future StateVision

Opportunities

Threats

Ys

MajorNorth Stars

&Trend Analysis•Value Stream Maps

• Innovations•Future Scenarios

• Models/SimulationsP li R i

• What should the future look like?• How would we be different?• What is Entitlement?

Maximize Strengths to Opportunities

Minimize Weaknesses

& Areas of Strategic

Emphasis

•Policy Review To Threats

Need Productivity LSS is Best Practice AIRSpeed Process Waste LSS/TOCfor Recapitalization (TWI, GE, R6S, ASQ…) & Variation Reduction

NAVAIR STRATEGIC MANAGEMENT SYSTEM - Phase 2Our Fleet-Driven Metric: Aircraft Ready for Tasking at Reduced Cost

- To Ensure Proper Strategic “Balance,” Map Business Ys to Balanced Scorecard

FinancialFinancialY3Y4

BusinessYs =

LSS/TOC

CustomerY1Y2

Internal ProcessesAIRSpeed

Y6VISION

LSS/TOC

MajorNorth Stars

&

Learning & GrowthLSS GB/BB/MBB

& Areas of Strategic

EmphasisNLDP

NAVAIR STRATEGIC MANAGEMENT SYSTEM - Phase 3Decompose Ys

to XsCreate Objectives & ID

InitiativesID Metrics to Measure Set & Allocate

Goals/TargetsDetermine Roles/Responsibilities

Benefit

Y1X1Y2X1Y3X3

Y2X2Y2X3

Effort

Y1X2Y2X3

Y1X3

Prioritize the Xs supporting the key Business Ys

Track Metrics to Allocated TargetsSupporting Business Y

Stated Objectives

When Target is Achieved,Business Y is Addressed

& SMS Process Starts Over

Benchmarks for Entitlement-Level Organizational Characteristics• Alignment to Fleet-Driven Metric(s)

E t i id O i t ti• Enterprise-wide Orientation• Metrics Driven Decision Making • Process Standardization & Re-Use• Process-Driven Continuous Improvement – our “DNA”• Six Sigma Quality• Customer Relationship & Satisfaction Focused • Robust Learning Organization & Knowledge Creators• Continuous Professional Growth & DevelopmentContinuous Professional Growth & Development• Innovative• Cost Wise • Strategic Leadership – Balanced Short, Medium, Long Term Emphasis

C lt f Ch L d• Culture of Change Leaders• Employee Empowerment• Technical Excellence• Ethical & Legally Acceptable Behaviors• Diversity Promoters• People-oriented• Value Creators, Waste Eliminators• Environmental Safety Health• Environmental, Safety, Health• Risk Sensitive• Motivated & Aligned Workforce

Goals Flow-down & Metrics Roll-upCommand LevelRoll-Up of Roll Up ofCommand-Level

Business Y Driven Metrics

pMetrics

Roll-Up ofMetrics

Flow-down Flow-down

Command Initiative #1 Metrics



Allocations Allocations

Lvl 1 Metrics Lvl 1 Metrics Lvl 1 Metrics Lvl 1 Metrics


Interpreted Interpreted Interpreted


InterpretedInterpreted Interpreted

Workforce Business “Y” Metric - NSPS Performance Measurement Alignment

Continuous Improvement for Enterprise Excellence

• Develop Strategic Plan: Goals, Objective & Metrics; Decomposed, Allocated, Tracked

• Base on Internal/External Scan, Benchmarking, S.W.O.T, Balanced Scorecard

• Reinforce AIRSpeed Commitment: Tools Methodologies & Strategies• Reinforce AIRSpeed Commitment: Tools, Methodologies & Strategies

• Apply HICVS End-to-End across NAE inc. linkage to DoN and Industry (87%)

• Converge, Align and Optimize Productivity Improvement Efforts – Integrated Roadmap

• Drive Variation Reduction & Concept of Std: Control & Improve Workflow Mgmt

• Comprehensive “Excellence” Training: Technical, Business, Leadership

D l K l d M t C ll b ti C difi ti & R t i ti f E ti• Deploy Knowledge Mgmt: Collaboration, Codification & Repatriation of Expertise

• Drive S&T/Innovation: Capabilities/Opportunities PEOs-driven w/Replication

• Industry win-win contractual incentive clauses for improvements (87%)dust y co t actua ce t e c auses o p o e e ts (8 %)

• Clean-up & Inter-connect Critical Data Sources: Business Intelligence (PR-09, ERP….)

• Deploy Strategically Aligned Performance Measures & Incentives at All Levels

• Support NAE-related external work business development: Rates, Knowledge, Capital

Back-UpBack-Up

Metrics

Metrics are data or relationships of data that are:1. tracked to monitor continuous “health” - foundational2. used to control variation within process spec limits3. developed to track progress toward goals – gap closure4 used to drive behavior – cultural change4. used to drive behavior cultural change

Alternative View #1

How much do we know about what we need to

know?

How many know what needs to be known to remove constraints &

Uncontrolled & High Variation with clear NVA

Workflow is managed,

controlled & organized

VOC: Customer Demand-pull & Feedback Loops

System Innovation Impact & Leverage

( 4000 a/c)

Knowledge (capabilities & capacities) X Processes (manual & IT-enabled) + Technology = VALUE-ADDED

know? remove constraints & operational risks?

with clear NVA organized

(COST OF TRAINING & KNOWLEDGE MGMT) (COST OF CONDUCTING/IMPROVING) TOTAL COSTSCOSTS

(~4000 a/c)

Metric: Value-Added Return on Investment (VAROI)

Alternate View #2

Strategic Operations Business OperationsHPO Operations• Environmental Scan• Strategic Intelligence• SWOT Analysis• Strategic Initiatives• Strategic Integration &

• Business Development• Business Capabilities SWOT• Business Capabilities Development• CSA/CRADA/Licenses• PartnershipsStrategic Integration &

PlanningPartnerships

• “Venture” Investments• A-11 Budget Interface• Business & Capabilities

Devmt StrategyOrganizational Wisdom

Technology Operations• Technology/Capabilities SWOTKnowledge & Integration

Operational Proficiency

• Technology & CapabilitiesDevelopment

• “Seed” Investments• Customer Development• Tech Push/Rqmts Pull

g g• Knowledge Management• Knowledge SWOT• IMD Interface• NMCI/ERP• Knowledge Integration & • Tech Push/Rqmts Pull

• Facilitate S&T Transition• Technology/Capabilities Strategy

• Knowledge Integration &Competence Development

• Knowledge Strategy

TechnicalProficiency

Goals of Knowledge Capital Initiatives

• Agility• Collaboration• Quality and Speed of Decision Making• Accelerated Learning and Capability Building• Organizational Coherence and Focus• Innovation

Saint-Onge/Wallace

Criteria for Best Practices in Knowledge

• Knowledge is Strategically Valued• Knowledge Strategy is Future Oriented• Knowledge Building & Sharing includes Customers & Suppliersg g g pp• Measurements are innovative re. Knowledge-value added• Knowledge Strategies are more human centered than technology• Knowledge is supported with flexible elements and technologies• Knowledge is supported with flexible elements and technologies• Culture supports: Knowledge Creation, Sharing, and Learning• Ready Access to Knowledge

E i d k l d i• Encouragement to organize around knowledge competencies• Supported efforts to acquire and apply knowledge

Communities of Practice Life Cycley

Level of EnergyAnd Visibility

Stewardship

Coalescing

Potential Maturing Transformation

Time

Developmental Discover/ Deliver Focus/ Ownership/Openness Time toTensions Imagine Immediate

ValueExpand/Creativity/Innovation

Ownership/OpennessExchange & Combinationof Knowledge/Expertise

Time to Move On

Wenger et al, 2002

Potential Command-Level Metrics (ex.)Initiatives - Detailed Business Y Metric Tracking (X8 – X12) as they Evolve• Continuous Process Improvement (AIRSpeed LSS Diagnostic Tool)

Environmental Scan Metric Tracking for SMS Input/Business Y Development• A/C Readiness per T/M/S (ID Readiness Degrader Leaders)A/C Readiness per T/M/S (ID Readiness Degrader Leaders)• A/C Operating Costs per T/M/S (ID Cost Drivers)• Total Funds Received (Decomposed by Source, Lifecycle Placement)• Total Cost vs. Product/Service Output Ratios

Total Contractor Costs per Product T/M/S Produced– Total Contractor Costs per Product T/M/S Produced– Total In-House Costs charged to NAE ($) by BLI, and decomposed into:

• Total WYs charged to NAE (exc. external customers)• Average rates charged to NAE

– Direct & OH for S&T, Acquisition, In-Service (for Portfolio Analysis), q , ( y )• Total Workforce #s & Demographics• Investment in Training ($/Employee Ratios, Hrs/Employee Budget Allocation)• Return-On-Invested-Capital = Value Added Products/Total Cost Ratios• Cost/Schedule/Performance EVM for Acq Programs (in house & Ktr)• Cost/Schedule/Performance EVM for Acq Programs (in-house & Ktr)• Customer/Employee Satisfaction Rating ( 1 Poor – 5 Outstanding)• Organizational Maturity (Sea Enterprise Assessment Tool)• Alignment (Command Alignment Tool)• Innovation (# of SBIR Technology Transitions & Replications, # of Fleet Experiments, Total

# of Program Technology Transitions, Technology Investment $/Critical NCDP Technologies Identified)

SMS Entitlements, Dependencies, & S.W.O.T. Gaps to Business Ys

