CREATING VALUE: Group Work Concept

1. CREATING VALUE:Group Work Concept Chou-Hong Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA 99258, USA chen@gonzaga.edu Source: Creating Value, Center for Leadership & Learning, Boeing Corp.

2. Learning the Business Running the Business Sharing the Results Creating Value

3. Total Customer Satisfaction Quality Cost Delivery Safety Morale From Customer Satisfaction to Fundamental Goal Increasing Shareholder Value Over the Long Term (ShareValue Trust Appreciation) Fundamental Goal Sound Business Decisions

4. FUNDAMENTAL GOAL MEASUREMENTS QUALITY, COST,DELIVERY, SAFETY, MORALE Customers Customer Satisfaction Each Of us Provides Value For: Employee Satisfaction Employees Community Satisfaction Community Increased Shareholder Value over the Long Term Shareholders

5. People working together as one company for utility leadership

6. Two Major Elements determines Organization’s Success • Core Competency • A Value-added Business Model • Value, value, value… N

7. Core Competencies Detailed Customer Knowledge and Focus We will seek to understand, anticipate, and be responsive to our customer’s needs. Large-Scale System Integration We will continuously develop, advance and protect the technical excellence that allows us to integrate effectively the systems we design and produce. Learn, Efficient Design and Production Systems Our design and production systems will be among the best in the world, characterized by efficient use of assets, short time-to-market, short flow times, short cycle times, high quality and high inventory turns.

8. ValuesIn all our relationships we will demonstrate our steadfast commitment to: Leadership We will be a world (first)-class leader in every aspect of our business-in developing our team leadership skills at every level; in our management performance; in the way we design, build and support our products; and in our financial results. Integrity We will always take the high road by practicing the highest ethical standards, and by honoring our commitments. We will take personal responsibility for our actions, and treat everyone fairly and with trust and respect.

9. 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, so that we will rank among the world’s (or first) premier industrial firms in customer, employee and community satisfaction. Customer Satisfaction Satisfied customers are essential to our success. We will achieve tital customer satisfaction by understanding what the customer wants and delivering in flawlessly

10. Values (cont.)In all our relationships we will demonstrate our steadfast commitment to: People Working Together We recognize our strength and our competitive advantage is – and always will be – people. We will continually learn, and share ideas and knowledge. We will encourage cooperative efforts at every level and across all activities in our company. A Diverse and Involved Team We value the skills, strengths, and perspectives of our diverse team. We will foster a participatory workplace that enables people to get involved in making decisions about their work that advance our common business objectives.

11. Values (cont.)In all our relationships we will demonstrate our steadfast commitment to: Good Corporate Citizenship We 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 Value Our business must produce a profit , and we must generate superior returns on the assets entrusted to us by our shareholders. We will ensure our success by satisfying our customers and increasing shareholder value.