CREATING VALUE:Group Work

ConceptJason C.H. Chen, Ph.D.

Professor of MISSchool of Business Administration

Gonzaga UniversitySpokane, WA 99258, USA

chen@jepson.gonzaga.edu

Source: Creating Value, Center for Leadership & Learning, Boeing Corp.

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Runnin

g th

e B

usin

ess

Sharing the Results

Lear

ning th

e Busi

ness

Creating Value

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IncreasingShareholder

ValueOver the Long Term(ShareValue Trust

Appreciation)

Total Customer Satisfaction

QualityCostDeliverySafetyMorale Sound

BusinessDecisions

Fundamental Goal

From Customer Satisfaction to Fundamental Goal

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Each Of us

ProvidesValue

For:

Customers

Employees

Community

Shareholders QU

ALIT

Y, C

OS

T,D

ELIV

ER

Y,

SA

FETY,

MO

RA

LE

Increased ShareholderValue over the Long Term

Customer Satisfaction

Community Satisfaction

FUNDAMENTAL GOALMEASUREMENTS

Employee Satisfaction

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People working together as one company for utility leadership

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Three Major Elements determine Organization’s Success

Core Competency A Value-added

Business Model Value, value,

value… Execution

N

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Core CompetenciesDetailed Customer Knowledge and FocusWe will seek to understand, anticipate, and be responsive to ourcustomer’s needs.

Large-Scale System IntegrationWe will continuously develop, advance and protect the technical

excellencethat allows us to integrate effectively the systems we design and

produce.

Learn, Efficient Design and Production SystemsOur design and production systems will be among the best in the

world,characterized by efficient use of assets, short time-to-market,

short flowtimes, short cycle times, high quality and high inventory turns.

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ValuesIn all our relationships we will demonstrate our steadfast commitment to:

LeadershipWe will be a world (first)-class leader in every aspect of our

business-indeveloping our team leadership skills at every level; in our

managementperformance; in the way we design, build and support our

products; andin our financial results.

IntegrityWe will always take the high road by practicing the highest

ethicalstandards, and by honoring our commitments. We will take

personalresponsibility for our actions, and treat everyone fairly and with

trust andrespect.

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Values (cont.)In all our relationships we will demonstrate our steadfast commitment to:

Quality We will strive for continuously quality improvement in all that we

do, sothat we will rank among the world’s (or first) premier industrial

firms incustomer, employee and community satisfaction.

Customer SatisfactionSatisfied customers are essential to our success. We will achieve

titalcustomer satisfaction by understanding what the customer wants

anddelivering in flawlessly

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Values (cont.)In all our relationships we will demonstrate our steadfast commitment to:

People Working TogetherWe recognize our strength and our competitive advantage is –

and alwayswill be – people. We will continually learn, and share ideas and

knowledge.We will encourage cooperative efforts at every level and across

allactivities in our company.

A Diverse and Involved TeamWe value the skills, strengths, and perspectives of our diverse

team. Wewill foster a participatory workplace that enables people to get

involved inmaking decisions about their work that advance our common

businessobjectives.

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Values (cont.) In all our relationships we will demonstrate our steadfast commitment to:

Good Corporate CitizenshipWe will provide a safe workplace and protect the environment. We will promote the health and well-being of [your company]

people and their families. We will work with our communities by volunteering and

financially supporting education and other worthy causes.

Enhancing Shareholder ValueOur business must produce a profit , and we must generate

superiorreturns on the assets entrusted to us by our shareholders. We will

ensureour success by satisfying our customers and increasing

shareholder value.