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SECTION 1: Introduction
What is the EBE Assessment?....................................................... 1.1
EBS – The Power of One Eaton ..................................................... 1.2
Criteria Purpose and Framework ................................................... 1.4
Key Characteristics of the Criteria ...................................................1.6
Eaton Business Excellence Recognition. ....................................... 1.8
Philosophy Policies
● Excellence: We strive to be the best. ● Ethics and Compliance
● Accountability: We keep our commitments. ● Workplace
● Health and Safety: We are committed to the wellbeing of ● Communications
all employees.
● Eaton Business System
● Inclusion: We value individual differences.
● Finance
● Communication: We communicate openly and honestly.
● Legal
● Compensation: We provide competitive pay and benefits.
For up-to-date information on EBS, please refer to the EBS
● Learning: We continuously learn, grow and change. website on JOE.
● Innovation: We value new ideas.
● Engagement: We are involved in our work and committed
to Eaton’s future.
● Environment and Communities: We strive to improve the
environment and our communities.
Code of Ethics
● Obeying the Law
● Integrity of Recording and Reporting our Financial Results
● Respecting Human Rights
● Delivering Quality
● Competing Ethically
● Respecting Diversity and Fair Employment Practices
● Avoiding Conflicts of Interest
● Protecting Our Assets
● Acting with Integrity
● Selling to Governments
● Political Contributions
● Environment, Health and Safety
● Facilitating communication and sharing of transferable 4 Measurement, Analysis, and Knowledge Management
practices information among Eaton organizations of all
5 Workforce Focus
types through the improvement of overall organizational
effectiveness and capabilities 6 Process Management
● Serving as a working tool for understanding and managing 7 Results
performance and for guiding organizational planning and
learning for both organizational and personal learning
Figure 1.1
Performance System
The performance system is composed of the six EBE Categories in
the center of the figure that define your processes and the results
you achieve.
Leadership (Category 1), Strategic Planning (Category 2), and
Customer and Market Focus (Category 3) represent the leadership
triad. These Categories are placed together to emphasize the
importance of a leadership focus on strategy and customers. Senior
leaders set your organizational direction and seek future
opportunities for your organization.
Workforce Focus (Category 5), Process Management (Category 6),
and Results (Category 7) represent the results triad. Your
organization’s workforce and key processes accomplish the work of
the organization that yields your business results.
All actions point toward Results—a composite of product and
service, customer and market, financial, and internal operational
performance results, including workforce, leadership, governance,
and public responsibility results.
The horizontal arrow in the center of the framework links the
leadership triad to the results triad, a linkage critical to organizational
success. Furthermore, the arrow indicates the central relationship
between Leadership (Category 1) and Business Results (Category
7). The two-headed arrows indicate the importance of feedback in
an effective performance management system.
System Foundation
Measurement, Analysis, and Knowledge Management (Category 4)
are critical to the effective management of your organization and to
a fact-based, knowledge-driven system for improving performance
and competitiveness. Measurement, analysis, and knowledge
management serve as a foundation for the performance
management system.
Criteria Structure
The seven Criteria Categories shown in the figure are subdivided
into Items and Areas to Address.
Items
There are 18 Items, each focusing on a major requirement. Item
titles and point values are given in Section 3: 2016-2018Criteria for
Performance Excellence. The Item format is shown in Figure 4.1
(Section 4: EBE Scoring System, Item Format Guidelines).
Each Item is classified as either Process or Results, depending 2. Understand the meaning of “what.”
on the type of information required. See Guidelines for Two types of questions in Process Items begin with the word
Responding to Process Items and Guidelines for Responding to “what.” The first type of question requests basic information on
Results Items in this section for details. key processes and how they work. Although it is helpful to
Item requirements are presented in question format. Some of include who performs the work, merely stating who does not
the requirements in the Areas to Address include multiple permit diagnosis or feedback. The second type of question
questions. Responses to an Item should contain responses that requests information on what your key findings, plans,
address all questions; however, each question need not be objectives, goals, or measures are. These latter questions set
answered separately. Responses to multiple questions within a the context for showing ALIGNMENT and INTEGRATION in your
single Area to Address may be grouped, as appropriate to your performance management system. For example, when you
organization. These multiple questions serve as a guide in identify key strategic objectives, your ACTION PLANS, human
understanding the full meaning of the information being resource development plans, some of your performance
requested. measures, and some results reported in Category 7 should be
expected to relate to the stated strategic objectives.
3. Understand the meaning of key terms.
Many of the terms used in the Criteria have meanings that
may differ somewhat from standard definitions or definitions
used in your organization. Terms printed in SMALL CAPS/SANS
SERIF can be found in the Glossary of Key Terms in Section 4.
Understanding these terms can help you accurately
3. Write and review response(s) with the following 6. Refer to the Scoring Guidelines.
guidelines and comments in mind. Considerations in the evaluation of Process Item responses
● Show that processes are systematic. include the Criteria Item requirements and the maturity of your
approaches, breadth of DEPLOYMENT, extent of learning, and
Systematic approaches are repeatable and use data and
INTEGRATION with other elements of your performance
information to improve learning. In other words, approaches
management system, as described in the Maturity Guidelines.
are systematic if they build in the opportunity for evaluation,
Therefore, you need to consider both the Criteria and the
improvement, INNOVATION, and knowledge sharing, thereby
Evaluation guidelines.
permitting a gain in maturity.
● Show DEPLOYMENT. Guidelines for Responding to Results Items
DEPLOYMENT information should summarize how your The Criteria place a major emphasis on results. The following
approaches are deployed in different parts of your information, guidelines, and example relate to effective and complete
organization. DEPLOYMENT can be shown compactly by reporting of results.
using tables.
1. Focus on the most critical business results.
● Show examples of LEARNING.
Results reported should cover the most important requirements
Processes should include evaluation and improvement for your organization’s success, highlighted in your
cycles, as well as the potential for breakthrough change. Organizational Profile and in the Leadership, Strategic Planning,
Process improvements should be shared with other Customer and Market Focus, Workforce Focus and Process
appropriate units of the organization to enable Management Categories.
organizational learning.
2. Note the meaning of the four key requirements from the
● Show INTEGRATION.
Scoring Guidelines for effective reporting of results
INTEGRATION shows ALIGNMENT and harmonization among data:
processes, plans, measures, actions, and results that ● Performance levels that are reported on a meaningful
generate organizational effectiveness and efficiencies. measurement scale
● Show focus and consistency. ● Trends to show directions of results and rates of change
There are four important considerations regarding focus and ● Comparisons to show how results compare with those of
consistency: (1) the Organizational Profile should make clear other, appropriately selected organizations
what is important to your organization; (2) the Strategic
Planning Category, including the strategic objectives and ● INTEGRATION to show that all important results are included
ACTION PLANS, should highlight areas of greatest focus and
and segmented (e.g., by important customer, workforce,
describe how DEPLOYMENT is accomplished; (3) descriptions of process, and product line groups).
organizational-level ANALYSIS and review (Items 4.1) should
3. Include trend data covering actual periods for tracking
show how your organization analyzes and reviews performance
trends.
information to set priorities; and (4) the Process Management
Category should highlight processes that are key to your overall No minimum period of time is specified for trend data. However,
performance. Showing focus and consistency in the Process a minimum of three historical data points generally is needed to
Items and tracking corresponding measures in the Results ascertain a trend. Trends might span five years or more for
Items should improve organizational performance. some results. Trends should represent historic and current
performance and not rely on projected (future) performance.
4. Cross-reference when appropriate. Time intervals between data points should be meaningful for the
specific measure(s) reported. For important results, new data
As much as possible, each Item response should be self-
should be included even if trends and comparisons are not yet
contained. However, responses to different Items might be
well established.
mutually reinforcing. It is then appropriate to refer to the other
responses rather than to repeat information. In such cases, key
4. Use a compact format – graphs and tables.
process information should be given in the Item requesting this
information. For example, workforce development should be Many results can be reported compactly by using graphs and
described in detail in Item 5.1. Discussions about workforce tables. Graphs and tables should be labeled for easy
development elsewhere in your application would then reference interpretation. Results over time or compared with others should
but not repeat details given in your Item 5.1 response. be "normalized” (i.e., presented in a way such as use of ratios
that takes into account various size factors). For example,
5. Use a compact format. reporting safety trends in terms of lost work days per 100
employees would be more meaningful than total lost work days
Applicants should make the best use of the 50 application pages
if the number of employees has varied over the time period or if
permitted. Applicants are encouraged to use flowcharts, tables,
you are comparing your results to organizations differing in size.
and "bullets” to present information concisely.
5. Incorporate results into the body of the text. To help interpret the Evaluation guidelines (see Section 4: EBE
Discussion of results and the results themselves should be close Scoring System, Scoring Guidelines), the following comments
together in an application. Trends that show a beneficial or on the graphed results would be appropriate:
adverse change should be explained. Use figure numbers that ● The current overall organizational performance level is
correspond to Items. For example, the third figure for Item 7.1 excellent. This conclusion is supported by the comparison
would be Figure 7.1-3. (See the example figure that follows.) with industry competitors and with a "world-class” level.
The graph shown below illustrates data an organization might ● The organization shows beneficial improvement trends
present as part of a response to Item 7.1, Product and Service sustained over time.
Outcomes and Customer Focused Results. In the
Organizational Profile, the organization has indicated on-time ● Division A is the current performance leader—showing
delivery as a key customer requirement. sustained HIGH-PERFORMANCE (on-time delivery) and a
slightly positive trend. Division B shows rapid improvement.
The graph illustrates a number of characteristics of clear and Its delivery schedule is near that of the best industry
effective results reporting. competitor but trails the "world-class” level.
● A figure number is provided for reference to the graph in ● Division C—identified in the application as a new product—
the text. is having early problems with on-time delivery. (The
● Both axes and units of measure are clearly labeled. organization should explain briefly these early problems.)
● Trend lines report data for a key customer requirement – 6. Refer to the Evaluation guidelines.
on-time delivery.
Considerations in the evaluation of Item responses include the
● Results are presented for several years. Criteria Item requirements and the significance of the results
trends, actual performance levels, relevant COMPARATIVE DATA,
● An arrow indicates that an upward trend is good for this
ALIGNMENT with important elements of your performance
measure.
management system, and the strength of the improvement
● Appropriate comparisons are clearly shown. process relative to the Evaluation guidelines. Therefore, you
need to consider both the Criteria and the Evaluation guidelines.
● The organization shows, using a single graph, that its three
product lines are separately tracked for on-time delivery.
EXAMPLE
95
Overall Company
On-Time Delivery (%)
90 Good
Best Competitor
85
2015
Industry
Division B Division C Average
80
75
70
2006 2007 2008 2009 2010
Year
V. Submittal Instructions
The complete Application Report must be received no later than the
specified due date.
Mark the package “Confidential” and send 12 copies of the complete
Application to:
Kelly Kinnard
Eaton Corporation
1000 Eaton Boulevard, 4S
Beachwood, OH 44122
(440) 523-3751
Figure 2.1
Consensus Report
Business ACE Week Business Site Visit Issues Examiner Team
Submits Evaluation Conducts Certified
Application Complete HQ Site Visit Y/N?
Business Site
Plant EBE Visit Findings
Certification
Site Visit
Certified
Y/N?
Business Site
Plant EBS Visit Findings
Deployment
Check Visit
Business Site
Plant EBE
Visit Findings
Certification
Site Visit
≈
Certified
Y/N?
Wk 0 Wk 2 Wk 4 Wk 6 Wk 8 Wk 10 Wk 12
Evidence
The Senior Examiner will contact the designated point of contact at
the site prior to the site visit to review the agenda for the site visit.
The assessed site should be prepared to discuss process Specifically, Champion and Lead assignments need to be reviewed
implementation and deployment to the examiner team during the site to eliminate schedule conflicts during category interviews. The
visit. Hard copies of charts illustrating the actual levels and trends of assignment of results Items to Category Champions and Leads must
Key Measures required by the EBE Criteria in Category 7 and be agreed to in advance as well.
otherwise important to the site as summarized in the Organizational Examiner teams are carefully constructed taking a number of factors
Profile should be prepared in advance and presented to the into consideration:
Examiner Team upon arrival on site.
1. Functional DIVERSITY among the team members
The best verification of APPROACH and DEPLOYMENT is represented
by the working documentation and tools used to run the organization 2. Avoiding “conflicts of interest” between examiners and the
on a daily basis. It should be readily accessible, clear, concise and assessed sites
3. Blend of examiner representation across the business groups The bulk of Day Three will be spent completing comment
development, reviewing comments, scoring and preparing the
4. A balance of experienced and less-experienced examiners on
Feedback Report.
the team
5. Some relevant industry or process knowledge on the team Concluding the Site Visit
6. Availability of the examiners
Upon completion of the assessment, the examiner team will meet
7. Geographical proximity between the examiners and the site to with site management, deliver their maturity band and assessment
be assessed outcome, and present one hardcopy of the Feedback Report along
with Item bands. Each examiner will briefly identify one or two Key
No examiners will evaluate their own site, or a sister facility within
Strengths and one or two Key Opportunities for Improvement per
their own division but examiners may be assigned to teams
Criteria Category during this meeting.
assessing plants from within the same Sector.
Notes
2 Strategic Planning 85
2.1 Strategic Development 40
2.2 Strategic Deployment 45
5 Workforce Focus 85
5.1 Workforce Engagement 45
5.2 Workforce Environment 40
6 Process Management 85
6.1 Work Process Design 35
6.2 Work Process Management and Improvement 50
Note: The Scoring System used with the Criteria Items in an EBE assessment can be found in Section 4: EBE Scoring System.
Organizational Profile
Importance of Beginning with Your Organizational licensing requirements; and environmental, financial and
Profile product regulations?
(7) Location Variations What regional, national legal, regulatory
Your Organizational Profile is critically important because:
and cultural attributes exist within your plant that may vary from
● It is the most appropriate starting point for self-assessment other Eaton plants? What are the major impacts of this variation
and writing an application; on the way your plant operates? What are the ways this
variation impacts the characteristics listed in questions P.1.a1-
● It helps you identify potential gaps in KEY information and 6?
focus on KEY PERFORMANCE requirements and business
RESULTS; b. Organizational Relationships
● It is used by the examiners to understand your (1) Organizational Structure Describe your organizational
organization and what you consider important; and structure. What are the reporting relationships among SENIOR
LEADERS, and any PARENT, CHILD and/or sister organizations?
● It also may be used by itself for an initial self-assessment. What support services are provided to you by other Eaton
If you identify topics for which conflicting, little, or no organizations?
information is available, it is possible that your assessment
need go no further, and you can use these topics for action (2) CUSTOMERS and STAKEHOLDERS What are your KEY CUSTOMER
planning. and STAKEHOLDER groups and market SEGMENTS, as
appropriate? What are their KEY requirements and expectations
P Preface: Organizational Profile for your products, CUSTOMER support services and operations?
What are the differences in these requirements and
The Organizational Profile is a snapshot of your organization, the expectations among CUSTOMER and STAKEHOLDER groups and
KEY influences on HOW you operate, and the KEY challenges you market SEGMENTS? What, if any, are the Growth Accounts
face. targeted by your organization? What is your plant’s revenue
target for each of these accounts, as appropriate?
P.1 Organizational Description: What are your KEY
organizational characteristics?
(3) Suppliers and PARTNERS What are your KEY types of
suppliers and/or PARTNERS? What role do your KEY suppliers
Describe your plant’s operating environment and your KEY and PARTNERS, your contractors, and other components of the
relationships with CUSTOMERS, suppliers, PARTNERS, and supply chain play in your organization to help produce and
STAKEHOLDERS.
deliver your products, services, and KEY PROCESSES? What
role, if any, do they play in your plant INNOVATION PROCESSES?
Within your response, include answers to the following questions:
(4) Internal CUSTOMERS What products do you provide to other
a. Organizational Environment Eaton organizations? Who are your KEY Eaton CUSTOMERS?
What are the KEY requirements and expectations for your Eaton
(1) CENTRAL PURPOSE What is your plant’s CENTRAL PURPOSE?
CUSTOMERS?
HOW does it complement and align with Eaton Corporation’s
overall strategy as a Diversified Power Management Company? (5) Internal Suppliers What products are provided to you by other
Eaton organizations? Who are your KEY Eaton suppliers? What
(2) CORE COMPETENCIES What are your organization’s CORE
are the KEY requirements and expectations for your Eaton
COMPETENCIES and their relationship to your CENTRAL
suppliers?
PURPOSE?
(3) Main Product Offerings What are your plant’s main products, NOTES
services and targeted markets? What are the channels to
market for your products and/or services? P.1a2 CORE COMPETENCIES refers to your organization’s areas of
greatest expertise. Your organization’s CORE
(4) WORKFORCE What are the KEY characteristics or attributes of COMPETENCIES are those strategically important
your WORKFORCE? What are your KEY WORKFORCE or employee capabilities that are central to fulfilling your MISSION or
groups and SEGMENTS? What are the KEY characteristics and provide an advantage in your marketplace or service
Diversity elements of your WORKFORCE? Does your plant have environment. CORE COMPETENCIES frequently are
organized bargaining units? What is your plant’s use of contract challenging for competitors or suppliers and PARTNERS to
employees? What are your plant’s special health and safety imitate and provide a sustainable competitive advantage.
requirements? What employee skills or education requirements
are critical to achievement of your organization’s success? P.1a3 Channels to market might be direct, or through dealers,
distributors or channel PARTNERS.
(5) Assets What are your KEY technologies, equipment, and
facilities used to accomplish your CENTRAL PURPOSE? P.1a3 Product offerings and products refer to the goods and
services that your organization offers in the marketplace.
(6) Regulatory Requirements What is the regulatory environment
under which your plant operates? What are the applicable P.1a4 WORKFORCE or employee groups and SEGMENTS (including
occupational health and safety regulations; certification or organized bargaining units) might be based on the type of
employment or contract reporting relationship, location, (2) Eaton 2015 GOALS Eaton Corporation has established
tour of duty, work environment, family-friendly policies, or 2015 PERFORMANCE GOALS for each business Group.
other factors.
a. What is your plant’s planned contribution to your Group,
P.1b2 Market SEGMENTS might be based on product lines or Region or Sector’s achievement of its financial and
features, geography, distribution channels, business PERFORMANCE GOALS? What are your targets?
volume, or other factors that are important to your
b. Does your plant directly support your Group, Region or
organization to define related market characteristics.
Sector GOALS for Growth GOALS of 30% sales from
P.1b2 CUSTOMER group and STAKEHOLDER group and market emerging markets, 12-14% sales growth, and 20%
SEGMENT requirements might include on-time delivery, low earnings growth? If so, what are your targets?
defect LEVELS, safety, security, ongoing price reductions, c. What is your plant’s planned contribution to your Group,
electronic communication, rapid response, after-sales Region, or Sector’s achievement of its supply chain
service, and multilingual services. STAKEHOLDER group GOALS? What are your targets?
requirements might include socially responsible behavior
and community service. d. What are your KEY STRATEGIC ISSUES (KSIs) and KEY
STRATEGIC OBJECTIVES (KSOs) related to EBS PULL, as
P.2 Organizational Situation: What is your appropriate?
organization’s strategic situation? c. PERFORMANCE Improvement System
Describe your organization’s competitive environment, your KEY What are the KEY elements of your PERFORMANCE improvement
STRATEGIC CHALLENGES and ADVANTAGES, and your system for
system, including operating reviews and OpA assessments,
PERFORMANCE improvement. organizational PERFORMANCE evaluation and LEARNING
Within your response, include answers to the following questions: PROCESSES?
For definitions of KEY terms presented throughout the Criteria and Scoring Guidelines text in SMALL CAPS/SANS SERIF, see Section 4:
Glossary of KEY Terms.
Frequently, several questions are grouped under one number (e.g., P.1a3). These questions are related and do not require separate
responses. These multiple questions serve as a guide in understanding the full meaning of the information being requested.
Item notes serve three purposes: (1) to clarify terms or requirements presented in an Item, (2) to give instructions on responding to the
Item requirements, and (3) to indicate KEY linkages to other Items. In all cases, the intent is to help you respond to the Item
requirements.
Item responses are assessed by considering the Criteria Item requirements; your KEY business factors presented in your Organizational
Profile; and the maturity of your APPROACHES, breadth of DEPLOYMENT and strength of your improvement PROCESS and RESULTS relative
to the Scoring System. Refer to Section 4: EBE Scoring System.
1.1 Senior Leadership: HOW do your SENIOR (4) BUSINESS CONTINUITY HOW do SENIOR LEADERS create an
LEADERS lead? (70 pts.) environment for BUSINESS CONTINUITY? HOW do they:
Describe HOW SENIOR LEADERS’ personal actions guide and sustain • Create an environment for organizational PERFORMANCE
your plant. Describe HOW SENIOR LEADERS communicate with your improvement, the accomplishment of their CENTRAL
WORKFORCE and encourage HIGH-PERFORMANCE. PURPOSE and STRATEGIC OBJECTIVES, iNNOVATION,
PERFORMANCE leadership, and organizational agility?
Within your response, include answers to the following questions:
• Create an environment for organizational and WORKFORCE
a. VISION and VALUES LEARNING?
(1) VISION and VALUES HOW do SENIOR LEADERS deploy Eaton’s • Participate in organizational LEARNING, succession
VISION and VALUES through your LEADERSHIP SYSTEM, to the planning and the development of future organizational
WORKFORCE, and to KEY suppliers, PARTNERS, and to leaders?
CUSTOMERS AND OTHER STAKEHOLDERS, as appropriate? HOW
do SENIOR LEADERS’ personal actions reflect a commitment to A plant’s response, in part, should address HOW SENIOR
those VALUES? LEADERS use APEX to support accomplishment of
objectives.
VALUES include the Eaton VALUES (including the Eaton
Philosophy). HOW SENIOR LEADERS deploy and reinforce HOW does your plant planning consider risk reduction, risk
the Eaton Business System (EBS) should be addressed. management, continuity of operations and recovery?
STAKEHOLDERS may also include PARENT, CHILD and other
b. Communication and Organizational PERFORMANCE
Eaton organizations. Plants should also describe HOW they
communicate VALUES, directions and expectations of their (1) Communication HOW do SENIOR LEADERS communicate with
PARENT AND/OR CHILD organizations. and engage the entire WORKFORCE? HOW do SENIOR LEADERS
achieve the following?
(2) Promoting Legal and ETHICAL BEHAVIOR HOW do SENIOR
LEADERS personally promote an environment that fosters, • Encourage frank, two-way communication throughout the
requires, and RESULTS in legal and ETHICAL BEHAVIOR? organization
Plants should describe HOW they deploy Eaton’s Code of • Communicate KEY decisions
Ethics and HOW SENIOR LEADERs role model and drive
• Take an active role in reward and recognition programs to
accountability for VALUES IN ACTION online ethics and
reinforce HIGH-PERFORMANCE and a CUSTOMER and
compliance training. Plants that have CUSTOMER
organization focus
relationships with government entities should describe the
steps they’ve taken to ensure employees understand and A plant’s response, in part, should describe HOW SENIOR
comply with regulations relating to government contracting. LEADERS use the E-STAR program to support recognition
Plants should describe HOW SENIOR LEADERS integrate and HIGH-PERFORMANCE.
ETHICAL BEHAVIOR into day-to-day decision making
PROCESSES and also HOW they establish the environment (2) Focus on Action HOW do SENIOR LEADERS create a focus on
for employees to raise concerns without fear of retaliation. action to accomplish the organization’s objectives, improve
PERFORMANCE, and attain Eaton’s VISION and 2015 GOALS and
(3) Creating a Diverse and INCLUSIVE Culture HOW do SENIOR their CENTRAL PURPOSE? What PERFORMANCE MEASURES do
LEADERS personally demonstrate their commitment to creating a SENIOR LEADERS regularly review to identify needed actions? In
culture of INCLUSION through effectively leveraging differences setting expectations for their plant’s PERFORMANCE, HOW do
among all employees to drive business PERFORMANCE by: SENIOR LEADERS include a focus on creating and balancing
VALUE for CUSTOMERS and other STAKEHOLDERS?
• Creating an INCLUSIVE WORKFORCE where all employees
are engaged and valued A plant’s response, in part, should include the use of the EQS
Management Review and Quality Functional Review Operating
• Communicating the importance of INCLUSION and
Process and HOW the expectations for Quality are set.
DIVERSITY and HOW valuing differences enhances business
RESULTS and employee engagement A plant’s response, in part, should address HOW leaders
incorporate PROLaunch into the management of projects,
An organization’s response might include HOW SENIOR
programs and portfolio’s toward the accomplishment of the
LEADERS support Inclusion Eaton Resource Groups as
organization’s objectives, as appropriate.
appropriate.
NOTES
1.1a1 Organizational directions should set the context for
objectives and ACTION PLANS which are described in Items
2.1 and 2.2.
1.2 GOVERNANCE and Public Responsibility: HOW Describe your organization’s APPROACH to responsible
do you govern and fulfill your social GOVERNANCE and leadership improvement. Describe HOW your
● Accountability for management’s actions Plants should describe HOW their LEADERSHIP SYSTEM
integrates the DEPLOYMENT of Eaton’s Code of Ethics
● Fiscal accountability and the Eaton VALUES (including the Eaton Philosophy).
Eaton organizations should describe HOW they Plants should also describe HOW financial audits and
emphasize DEPLOYMENT of Eaton’s Code of Ethics and Sarbanes-Oxley PROCESSES ensure ETHICAL BEHAVIOR.
Eaton VALUES (including the Eaton Philosophy), as well c. Support of KEY Communities
as HOW they support the regulatory environment driven
by the Sarbanes-Oxley bill. Plants should describe their (1) Public and Community Affairs HOW does your plant
mechanisms for addressing the findings of internal and consider public wellbeing and benefit as part of your
external audits by PARENT entities as appropriate. objectives and daily operations?
• Succession planning for SENIOR LEADERS (2) Community Support HOW does your plant actively support
and strengthen your KEY communities? What are your KEY
(2) PERFORMANCE Evaluation HOW do you evaluate the communities? HOW do you identify these communities and
PERFORMANCE of SENIOR LEADERS, including the highest- determine areas of emphasis for plant involvement and
ranking official? HOW do SENIOR LEADERS use these support, including areas related to your CORE COMPETENCIES
PERFORMANCE reviews to improve both their personal as appropriate? HOW do your SENIOR LEADERS, in concert
leadership effectiveness and that of your LEADERSHIP with your WORKFORCE, contribute to improving these
SYSTEM, as appropriate? communities? What are your KEY PROCESSES, MEASURES,
b. Legal and ETHICAL BEHAVIOR and GOALS for addressing public and environmental benefits
to your KEY communities?
(1) Legal and Regulatory Behavior HOW do you address any
adverse impacts of your products, services, and operations Plant responses, in part, should address the Eaton
on society? HOW do you anticipate public concerns with VALUES (including the Eaton Philosophy) as well as their
current and future products, services, and operations? HOW support of Corporate-wide community and
do you prepare for these impacts and concerns proactively, environmental support initiatives as appropriate. For
including resource-sustaining PROCESSES, as appropriate? example, in North America these community initiatives
What are your KEY compliance PROCESSES, MEASURES, and include support of the United Way.
GOALS for meeting and surpassing regulatory and legal d. Sustainability
requirements, as appropriate? What are your KEY
PROCESSES, MEASURES, and GOALS for addressing risks (1) Sustainable organization What are your KEY sustainability
associated with your products, services, and operations? PROCESSES? HOW does your organization address
sustainability in support of the following Eaton focus areas?
Plants should address HOW the Eaton VALUES (including
the Eaton Philosophy) guide their APPROACHES to social • Building a WORKFORCE through initiatives that make
responsibility. A component of legal and regulatory Eaton a place where people want to come and stay and
requirements may include HOW the organization are supported with a focus on WELLNESS
proactively addresses legal and other requirements
• Improving the natural environment by driving toward
through training on compliance topics such as anti-
zero footprint
corruption, giving and receiving gifts and entertainment,
and MESH requirements, as appropriate. When • Strengthening our communities through focused and
appropriate, PROLaunch should be addressed as it purposeful community involvement
relates to environmental impact of product and
• Increasing business and shareholder VALUE by
manufacturing PROCESS design and product production.
incorporating sustainability as a driver of growth
Plants should address HOW they ensure that operations
• Doing Business Right ethically and transparently
obtain and keep current on all necessary permits and
authorizations including environmental permits, building
permits, and fire or occupancy authorizations.
NOTES
1.2 Societal responsibilities in areas critical to your plant
also should be addressed in Objective Development
(Item 2.1) and in PROCESS Management (Category 6).
KEY RESULTS such as RESULTS of regulatory and legal
compliance or environmental improvements impacts
through use of “green” technology, resource-conserving
activities, or other means, or improvements in social
impacts, should be reported as Leadership Outcomes
(in Item 7.6).
2.1 Objective Development: HOW do you develop Plants should include a description of HOW they address
your objectives? (40 pts.) the risk assessment and self-assessment outcomes of the
MESH PROCESS as a part of the objective planning
Describe HOW your plant establishes its objectives to address its PROCESS. For example, plants should include a description
STRATEGIC CHALLENGES and leverage its STRATEGIC ADVANTAGES. of HOW they manage, assess, and prioritize plant-wide
Describe HOW your organization makes KEY PROCESS decisions. EHS Risks.
Summarize your plant’s KEY objectives and their related GOALS.
Plants should also include a description of HOW they use
Within your response, include answers to the following questions: the findings obtained during the MESH Assessment
PROCESS as an input to the objective Planning PROCESS.
a. Objective Development PROCESS
(1) Objective Planning PROCESS HOW does your plant develop Plants should indicate HOW they implement ACTION PLANS
objectives? What are the KEY PROCESS steps? Who are the KEY derived from previous EBE assessments in accordance
participants? HOW does your PROCESS identify potential blind with the EBE Feedback Remediation PROCESS, as
spots? What are your short- and longer-term planning time appropriate.
horizons? HOW are these time horizons set? HOW does your Plants should include a description of HOW they use the
plant objective planning PROCESS address the need for findings obtained during the EBS PULL PROCESS as an
organizational agility and operational flexibility? input into the objective planning PROCESS, as appropriate.
Generally, five year Strategic Plans and one year Profit Plants should include a description of HOW they use the
Plans are appropriate time horizons. Any additional or outcomes of the OpA assessments as an input into the
differing time horizons should be explained. Plants should objectives planning PROCESS.
also address their interface/ involvement with their PARENT
AND/OR CHILD strategic planning PROCESSES. Plants should include a description of HOW they use the
ACTION PLANS from the HR Operating Review as an input
(2) KEY PROCESSES and CORE COMPETENCIES HOW does your to the objectives planning PROCESS.
plant determine its CORE COMPETENCIES? What are your
organization’s CORE COMPETENCIES and HOW do they relate to b. Objectives
your CENTRAL PURPOSE, competitive environment, and ACTION (1) KEY Objectives What are your KEY objectives and your
PLANS? HOW do you decide which PROCESSES within your
timetable for accomplishing them? What are your most
extended enterprise will be internal to your plant (your KEY important GOALS for these objectives? What KEY changes, if
PROCESSES) and which will use external resources? HOW do
any, are planned in your products, CUSTOMER, PARTNERS, and
these decisions consider your core competencies? HOW do you your operations?
determine future plant core competencies?
Plants responses, in part, should address objectives,
(3) INNOVATION HOW do you create an environment that supports timetables and GOALS necessary to achieve
INNOVATION?
implementation of new or revised EBS PROCESSES. The
(4) Planning Considerations HOW do you ensure that planning plant should also address HOW objectives are aligned with
addresses the KEY elements listed below? HOW do you collect PARENT/CHILD objectives.
and analyze relevant data and information pertaining to these (2) Objective Considerations HOW do your OBJECTIVES achieve
factors as part of your planning PROCESS: the following?
● Your plant’s STRATEGIC ADVANTAGES and STRATEGIC • Address your STRATEGIC CHALLENGES and STRATEGIC
CHALLENGES
ADVANTAGES identified in response to P.2b in your
● Short-term organizational resilience to handle business Organizational Profile
interruptions, including needed CORE COMPETENCIES • Address your contribution to Eaton’s 2015 PERFORMANCE
● Risks long-term organizational BUSINESS CONTINUITY GOALS as presented in P.2b2
• Your compliance risks and compliance mitigation plans • Address your opportunities for INNOVATION in products,
services, operations, and the business model
● Your ability to execute the objective plan
• Capitalize on current and future CORE COMPETENCIES
• Functional strategic plans
• Balance short- and longer-term CHALLENGES and
• Your compliance risks and compliance mitigation plans opportunities
• Consider and balance the needs of all KEY STAKEHOLDERS? capabilities that provide an advantage in your marketplace
or service environment. CORE COMPETENCIES frequently
Plants should address HOW their objectives are in
are challenging for competitors or suppliers and PARTNERS
ALIGNMENT of STRATEGIC OBJECTIVES with their PARENT
to imitate and provide a sustainable competitive
organization.
advantage.
NOTES
2.1 “Objective development” refers to your plants APPROACH
(formal or informal) to preparing for the future. Objective
might involve KEY suppliers, distributors, PARTNERS, and
CUSTOMERS.
2.2 DEPLOYMENT of Objectives: HOW do you (5) ACTION PLAN Modification HOW do you establish and
deploy your objectives? (45 pts.) implement modified ACTION PLANS if circumstances require a
shift in plans and rapid execution of new plans?
Describe HOW your plant converts its objectives into ACTION
PLANS. Summarize your plant ACTION PLANS, HOW they are b. Measuring Accomplishment of Plans
deployed, and KEY ACTION PLAN PERFORMANCE MEASURES or What are your KEY PERFORMANCE MEASURES or Indicators for
INDICATORS. Project your plant’s future PERFORMANCE relative to
tracking the achievement and effectiveness of your ACTION
KEY comparisons on these KEY PERFORMANCE MEASURES or
PLANS? HOW do you ensure that your overall ACTION PLAN
INDICATORS.
measurement system reinforces organizational ALIGNMENT?
ACTION PLANS should address the implementation and KEY PERFORMANCE MEASURES should include the EPM
DEPLOYMENT of EBS PROCESSES that apply to the organization. Prescribed MEASURES.
Plants should describe HOW their ACTION PLANS align with the OpA continuous improvement MEASURES related to identified
STRATEGIC OBJECTIVES of their PARENT organizations including the ACTION PLANS should be described.
support of Eaton Corporation GOALS.
c. PERFORMANCE PROJECTION
Plants deploying EBS PULL should describe HOW their ACTION
PLANS and prioritized projects align with the STRATEGIC For the KEY PERFORMANCE MEASURES or INDICATORS (identified in
OBJECTIVES of their PARENT organizations. 2.2b), what are your PERFORMANCE PROJECTIONS for both your
short- and longer-term planning time horizons? What are your
A plant’s response should include a description of HOW EBS PULL stretch metrics for each KEY project and their linkage
PROLaunch is deployed in regards to ACTION PLANS, as to KSIs/KSOs, as appropriate? HOW does your projected
appropriate. Examples might include PROCESS development and PERFORMANCE compare with KEY BENCHMARKS, GOALS, and past
product transitions. PERFORMANCE, as appropriate?
A plant’s response, in part, should describe HOW GOALS are OpA future state projections should be described, as appropriate.
cascaded, aligned to STRATEGIC OBJECTIVES and tailored to be
specific for the employee’s contribution as part of the APEX HOW does your projected PERFORMANCE compare with the
PROCESS. projected PERFORMANCE of your competitors or comparable
organizations and with KEY BENCHMARKS if appropriate? If there
A plant’s response, in part, should describe the APPROACH used to are current or projected gaps in PERFORMANCE against your
drive improvement in the Zero Incident Safety Culture and competitors or comparable organizations, HOW will you address
associated supporting ACTION PLANS. them?
Within your response, include answers to the following questions:
NOTES
a. ACTION PLAN Development and DEPLOYMENT 2.2 Objective and ACTION PLAN development and
DEPLOYMENT are closely linked to other Items in the
(1) ACTION PLAN Development What are your KEY short- and Criteria. The following are examples of KEY linkages:
longer-term ACTION PLANS? What are the KEY planned
changes, if any, in your products and services, your ● Item 1.1 for HOW your SENIOR LEADERS deploy and
CUSTOMERS and markets, and HOW you will operate? What communicate organizational directions;
are your EBS PULL ACTION PLANS and prioritized projects ● Category 3 for gathering CUSTOMER knowledge as
and ALIGNMENT with STRATEGIC OBJECTIVES, as appropriate? input to your objective and ACTION PLANS and for
Plants should describe the OpA ACTION PLANS resulting from deploying ACTION PLANS;
assessments and OpA Leadership reviews.
● Category 4 HOW you measure and analyze data
(2) ACTION PLAN DEPLOYMENT HOW do you deploy ACTION and manage knowledge to support your KEY
PLANS throughout the plant, to your WORKFORCE and to KEY information needs, to support your development of
suppliers and PARTNERS, as appropriate, to achieve your KEY objectives, to provide an EFFECTIVE basis for your
objectives? HOW do you ensure that the KEY outcomes of PERFORMANCE measurements, and to track
your ACTION PLANS can be sustained? progress relative to your OBJECTIVES and ACTION
PLANS;
(3) Resource Allocation HOW do you allocate resources to
support the accomplishment of the plans? ● Category 5 for meeting your WORKFORCE
CAPABILITY and CAPACITY needs; for WORKFORCE
(4) WORKFORCE Plans What are your KEY WORKFORCE plans to
development and LEARNING system design and
support your short- and longer-term objectives and ACTION
needs, and for implementing WORKFORCE related
PLANS? HOW do the plans address potential impacts to your
changes resulting from ACTION PLANS;
WORKFORCE and any potential changes to WORKFORCE
CAPABILITY and CAPACITY needs? ● Category 6 for addressing changes to WORK
PROCESS requirements resulting from your ACTION
PLANS; and
3.2 CUSTOMER ENGAGEMENT and Relationships relevant and actionable information is conveyed to/and from the
Building: HOW do you engage CUSTOMERS to PARENT.
service their needs and build relationships? (1) Satisfaction, Dissatisfaction and ENGAGEMENT HOW does
(45 pts.) your organization determine CUSTOMER satisfaction,
dissatisfaction, and ENGAGEMENT for internal and external
Describe HOW your plant builds relationships to acquire, satisfy, and CUSTOMERS? HOW do these determination methods differ
retain CUSTOMERS. Describe HOW your plant builds a CUSTOMER among CUSTOMER SEGMENTS and market SEGMENTS, as
focused culture including internal CUSTOMERS. Describe also HOW appropriate? HOW do you ensure that your measurements
your plant acquires satisfaction and dissatisfaction information capture actionable information for use in exceeding your
including for internal CUSTOMERS. CUSTOMERS’ expectations and securing your CUSTOMERS’
ENGAGEMENT for the long term?
Within your response, include answers to the following questions:
(2) Satisfaction Relative to Competitors HOW do you obtain and
a. CUSTOMER Support and Relationship Building
use information on your CUSTOMERS’ satisfaction,
Plants should describe HOW they contribute to business dissatisfaction and ENGAGEMENT relative to their satisfaction
relationships with CUSTOMERS. with your competitors? HOW do you obtain and use this
information relative to CUSTOMER satisfaction, dissatisfaction
(1) CUSTOMER Support HOW do you enable CUSTOMERS to seek and ENGAGEMENT LEVELS of CUSTOMERS of other organizations
information and support? HOW do you enable them to conduct providing similar products or services, or industry BENCHMARKS,
business with you and give feedback on your products and as appropriate?
CUSTOMER support? What are your KEY means of CUSTOMER
NOTES
support including your KEY communication mechanisms? HOW
do they vary for different CUSTOMERS and CUSTOMER groups?
HOW do you ensure that CUSTOMER support requirements are 3.2 “CUSTOMER ENGAGEMENT” refers to your CUSTOMERS’
deployed to all people and PROCESSES involved in CUSTOMER investment in your brand and product offerings.
support? Characteristics of ENGAGEMENT include CUSTOMER
(2) Complaint Management HOW do you manage internal and retention and loyalty, CUSTOMERS’ willingness to actively
external CUSTOMER complaints? HOW does your complaint advocate for and recommend your brand and product.
management PROCESS ensure that complaints are resolved 3.2c Determining CUSTOMER satisfaction and dissatisfaction
effectively and promptly? HOW does your CUSTOMER complaint might include use of any or all of the following: surveys,
management PROCESS enable you to recover your CUSTOMERS’ formal and informal feedback, CUSTOMER account
confidence, and enhance their satisfaction and ENGAGEMENT? histories, complaints, win/loss ANALYSIS, CUSTOMER
HOW does your complaint management system enable referral rates, and transaction completion rates.
aggregation and ANALYSIS of complaints for use in improvement Information might be gathered on the Web, through
throughout your organization, as appropriate? personal contact or a third party, or by mail. Determining
Plants should describe HOW they know of and contribute to CUSTOMER dissatisfaction should be seen as more than
the resolution of CUSTOMER complaints. In addition, plants reviewing low CUSTOMER satisfaction scores.
should describe HOW their CUSTOMER complaint Dissatisfaction should be independently determined to
management PROCESS, for both product and service identify root causes of dissatisfaction and enable a
related issues, is in accordance with the EQS and SYSTEMATIC remedy to avoid future dissatisfaction.
CUSTOMER specific requirements. Plants are expected to incorporate the CRR PROCESS into
their CUSTOMER satisfaction determination PROCESS,
b. Building a CUSTOMER-Focused Culture
consistent with the PARENT Group’s APPROACH to the
(1) CUSTOMER-Focused Culture HOW do you create an DEPLOYMENT of the CRR.
organizational culture that ensures a consistently positive
CUSTOMER experience and contributes to CUSTOMER 3.2b2 The CUSTOMER sales cycle begins in the pre-sale period
ENGAGEMENT for internal and external CUSTOMERS? and should include all stages of your involvement with the
CUSTOMER. This might include relationship building, the
(2) Relationship Building HOW do you build and manage active business relationship, and an exit strategy, as
relationships with CUSTOMERS to: appropriate.
• Meet their requirements and exceed their expectations in
3.2c2 Other organizations providing similar products or services
each stage of the CUSTOMER sales cycle;
might include other organizations that are not competitors
• Increase their ENGAGEMENT with you? but provide similar products and services in other
geographic areas or to different populations of people.
c. Determination of CUSTOMER Satisfaction and
ENGAGEMENT .
4.1 Measurement, ANALYSIS, and Improvement of to rapidly respond to changing organizational needs and challenges
Organizational PERFORMANCE: HOW do you in your operating environment?
measure, analyze, and then improve Organizations should describe HOW they address the
organizational PERFORMANCE? (45 pts.) requirements of the EQS Management Review and the Quality
Function Report Operating Process.
Describe HOW your plant MEASURES, analyzes, aligns, reviews, and
improves its PERFORMANCE through the use of data and information Plants deploying EBS PULL should discuss the review of the
in all parts of your plant. Describe HOW you translate the RESULTS of critical prioritized projects and associated stretch metrics, as
PERFORMANCE reviews into priorities, opportunities for improvement
appropriate.
and INNOVATION. Describe HOW your organization uses comparative c. PERFORMANCE Improvement
and CUSTOMER data to support decision making.
(1) Sharing Organizational LEARNING HOW do you use
Plants should describe HOW they address the requirements of the PERFORMANCE review findings to share lessons learned and
EQS PERFORMANCE ANALYSIS and Improvement PROCESS Policy. best practices across your plant and to your PARENT
KEY PERFORMANCE MEASURES may vary from daily to annual in
organization?
frequency and should address the measurement, ANALYSIS and (2) Future PERFORMANCE HOW do use PERFORMANCE review
improvement of all KEY PERFORMANCE MEASURES that apply to the findings and KEY COMPARATIVE and competitive data to project
plant including the EPM Prescribed EBS MEASURES at a minimum. future PERFORMANCE?
Within your response, include answers to the following questions: (3) Continuous Improvement and INNOVATION HOW do you use
PERFORMANCE review findings to develop priorities for
a. PERFORMANCE Measurement
continuous and breakthrough improvement and into
(1) PERFORMANCE MEASURES HOW do you select, collect, align, opportunities for INNOVATION? HOW are these priorities and
and integrate data and information to use in tracking daily opportunities deployed to work group and functional-level
operations and for overall plant PERFORMANCE, including operations throughout your plant? When appropriate, HOW are
progress relative to objectives, ACTION PLANS, AND OPA ACTION the priorities and opportunities deployed to your suppliers and
ITEMS? What are your KEY organizational PERFORMANCE PARTNERS to ensure organizational ALIGNMENT?
MEASURES, including KEY short-term and longer-term financial
MEASURES? HOW frequently do you track these MEASURES?
Plants should address the involvement of and the
HOW do you use these data and information to support communication of ANALYSIS RESULTS to and from PARENT and
CHILD organizations; including the use of EQS Management
organizational decision making and INNOVATION?
Review and Quality Functional Report Operating Process.
Plant responses, in part, should address HOW they utilize
the reporting elements of PROLaunch to track progress A plant’s response, in part, should describe HOW APEX is used
relative to objectives and ACTION PLANS, as appropriate. to deploy PERFORMANCE requirements and priorities.
(2) COMPARATIVE DATA HOW do you select and ensure the Plants should describe HOW the OpA Process is used to
EFFECTIVE use of KEY COMPARATIVE DATA and information to
develop priorities for plant improvements.
support decision making and INNOVATION? A plant’s response should describe HOW they use safety
LEARNINGS to drive a Zero Incident Safety Culture.
(3) CUSTOMER Data HOW do you select and ensure the EFFECTIVE
us of VOICE OF THE CUSTOMER data and information (including
complaints) to support operational and objective decision NOTES
making and INNOVATIONS?
4.1a Data and information from PERFORMANCE measurement
(4) Measurement Agility HOW do you ensure that your should be used to support fact-based decision making for
PERFORMANCE measurement system is able to respond to rapid setting and aligning organizational directions and resource
or unexpected organizational or external changes? use at the work unit, KEY PROCESS, departmental, and
whole organization LEVELS.
b. PERFORMANCE ANALYSIS and Review
4.1a2 COMPARATIVE DATA and information are obtained by
HOW do you review plant PERFORMANCE and capabilities? HOW do
BENCHMARKING and by seeking competitive comparisons.
you use your KEY organizational PERFORMANCE MEASURES in these
“BENCHMARKING” refers to identifying PROCESSES and
reviews? What ANALYSES do you perform to support these reviews
RESULTS that represent best practices and PERFORMANCE
and to ensure that conclusions are valid? HOW do you use these
for similar activities, inside or outside your organization’s
reviews to assess organizational success, competitive
industry. Competitive comparisons relate your
PERFORMANCE, and progress relative to objectives and ACTION
organization’s PERFORMANCE to that of competitors and
PLANS? HOW do you use these reviews to assess your plant’s ability
NOTES
5.1 “W ORKFORCE” refers to the people actively involved in
accomplishing the work of your plant. It includes your
plant’s permanent, temporary, and part-time personnel, as
well as any contract employees supervised by your
organization. It includes team leaders, supervisors, and
managers at all LEVELS. People supervised by a contractor
should be addressed in Category 6.
b. WORKFORCE Climate
(1) WORKPLACE ENVIRONMENT HOW do you address workplace
environmental elements , including accessibility, to ensure and
improve workplace health, safety, and security? What are your
PERFORMANCE MEASURES and improvement GOALS for each of
these workplace elements ? What are any significant
differences in these factors and PERFORMANCE MEASURES or
targets for different workplace environments? HOW do you
ensure workplace preparedness for disasters or emergencies?
A plant’s response should address, in part, the
implementation of the MESH requirements as appropriate
and KEY engagement concepts of a Zero Incident Safety
Culture.
A plant’s response should include a description of HOW it
APPROACHES Eaton’s WELLNESS requirements, including
the Pillars of WELLNESS.
(2) WORKFORCE Policies and Services HOW do you support your
WORKFORCE via policies and services? HOW are these tailored
to the needs of a diverse WORKFORCE and different WORKFORCE
groups and SEGMENTS?
6.1 KEY PROCESSES Design: HOW do you design Components of EBS may be treated as KEY PROCESSES
your KEY PROCESSES? (35 pts.) depending on the responsibilities of the plant.
Describe HOW your organization designs its KEY PROCESSES to Since EBS PROCESSES are standardized across the
deliver CUSTOMER VALUE, fulfill its CENTRAL PURPOSE and to achieve corporation, answers to 6.1a3 should focus on the plant’s
organizational success and BUSINESS CONTINUITY. INNOVATION and adaptation of these PROCESSES rather than
their design.
Within your response, include answers to the following questions:
a. KEY PROCESSES
Plants should include a description of the degree of DEPLOYMENT
and effectiveness of use of the prescriptive EBS PROCESSES that
apply to their plant. KEY PROCESSES are not limited to EBS
PROCESSES.
(1) KEY PROCESSES What are your plant’s KEY PROCESSES for
execution of your CENTRAL PURPOSE? HOW do these
PROCESSES contribute to organizational success?
NOTES
6.1a1 Your KEY PROCESSES (6.1a1) are your most important
internal VALUE CREATION PROCESSES and might include
product design and delivery, CUSTOMER support, supply
chain management, business and support PROCESSES.
Your KEY PROCESSES are the PROCESSES that involve the
majority of your organization’s WORKFORCE and produce
CUSTOMER, STAKEHOLDER, and stockholder VALUE. Your
KEY PROCESSES are your KEY VALUE CREATION and KEY
SUPPORT PROCESSES.
(2) Improvement Priorities HOW does your plant use the OpA
PROCESS to drive improvement and set priorities in your KEY
PROCESSES?
7.2 Organizational Effectiveness Outcomes: 7.3 Financial and Market Outcomes: What
What are your organizational effectiveness are your financial and market RESULTS?
RESULTS? (60 pts.) (150 pts.)
Summarize your organization’s KEY PERFORMANCE RESULTS that Summarize your plant’s KEY financial and marketplace
contribute to the improvement of organizational effectiveness. PERFORMANCE RESULTS segmented as appropriate. Include
SEGMENT your RESULTS by product groups and service offerings, appropriate COMPARATIVE DATA.
by CUSTOMER groups and market SEGMENTS, and by PROCESSES
Provide data and information to answer the following questions:
and location, as appropriate. Include appropriate COMPARATIVE
DATA. a. Financial and Market RESULTS
Provide data and information to answer the following questions: (1) Financial PERFORMANCE What are your current LEVELS and
TRENDS in KEY MEASURES or INDICATORS of financial
a. Organizational Effectiveness RESULTS
PERFORMANCE?
(1) PROCESS Effectiveness What are your current LEVELS and
Eaton profit center plants must report standard EPM
TRENDS in MEASURES or INDICATORS of organizational
Prescribed Measures of financial PERFORMANCE
PROCESS effectiveness?
including Return on Sales (ROS) and Cash Flow Return
The EPM MEASURES of CONC, On-time delivery, on Gross capital (CFROGC), Manufacturing Profit % of
CFROGC, TRCR and DACR, PRODUCTIVITY, DSO, Sales, DSO, DPO, Capital Expenditures to Profit Plan
DPO, and DOH should be reported. and Support Expense % of Sales. Other financial
MEASURES may be reported as appropriate.
RESULTS from the DEPLOYMENT of prescribed EBS
PROCESSES such as OpA, MESH and the EQS should Eaton cost center plants should report standard EPM
be reported. Prescribed MEASURES of financial PERFORMANCE
listed above that apply to their site. In addition,
PROLaunch RESULTS of overall program/project success
PERFORMANCE to Budget should also be reported.
should be reported as appropriate.
For financial MEASURES which appear in the profit plan, a
Eaton EPM Prescribed MEASURES RESULTS of Cost Out,
minimum of three years’ (if available) RESULTS and profit
and Supplier DPPM (including internal suppliers) should
plan targets should be reported. Profit Plan targets
be reported, as appropriate.
represent appropriate comparisons for these MEASURES.
Other financial MEASURES such as they relate to
PROLaunch may be reported, as appropriate.
(2) Marketplace PERFORMANCE What are your current LEVELS
and TRENDS in KEY MEASURES or INDICATORS of marketplace
PERFORMANCE, as appropriate?
NOTES
7.3a1 Responses might include aggregate MEASURES such as
return on investment, asset utilization, operating
margins, profitability, or profitability by market or
CUSTOMER SEGMENT. Responses also might include
MEASURES such as day cash on hand and cash flow.
Measures should relate to the financial MEASURES
reported in 4.1a1 and the financial management
APPROACHES described in Item 2.2.
7.4 WORKFORCE-Focused Outcomes: What are 7.5 PROCESS Effectiveness Outcomes: What are
your WORKFORCE-focused PERFORMANCE your PROCESS effectiveness RESULTS?
RESULTS (60 pts.) (60 pts.)
Summarize your plant’s KEY WORKFORCE-focused RESULTS for Summarize your plant’s KEY WORK PROCESS PERFORMANCE.
WORKFORCE ENGAGEMENT and for your WORKFORCE SEGMENT your RESULTS by product and service offerings, by
ENVIRONMENT. SEGMENT your RESULTS to address the DIVERSITY CUSTOMER groups and market SEGMENTS, by in-PROCESS and
of your WORKFORCE and to address your WORKFORCE groups and end-of-PROCESS and by PROCESSES and location, as appropriate.
SEGMENTS as appropriate. Include appropriate COMPARATIVE Include appropriate COMPARATIVE DATA.
DATA.
Provide data and information to answer the following questions:
Provide data and information to answer the following questions:
a. KEY PROCESS RESULTS
a. WORKFORCE RESULTS
(1) Operational Effectiveness What are your current LEVELS
(1) WORKFORCE ENGAGEMENT What are your current LEVELS and TRENDS in KEY MEASURES or INDICATORS of the
and TRENDS in KEY MEASURES or INDICATORS of WORKFORCE PERFORMANCE of your KEY PROCESSES PRESENTED in Items
ENGAGEMENT and WORKFORCE satisfaction? 6.1 and 6.2?
of the Eaton Employee Survey that reflect
NOTES
RESULTS
employee satisfaction and the Employee ENGAGEMENT
% should be reported. 7.5 RESULTS reported should address your KEY operational
(2) WORKFORCE Development What are your current LEVELS requirements as presented in the Organizational Profile
and TRENDS in KEY MEASURES or INDICATORS of WORKFORCE and in Items 6.1 and 6.2.
LEARNING and leader development?
7.5 RESULTS reported should provide KEY information for
(3) WORKFORCE CAPABILITY and CAPACITY What are your ANALYSIS and review of your organizational
current LEVELS and TRENDS in KEY MEASURES of WORKFORCE PERFORMANCE (Item 4.1); demonstrate use of
CAPABILITY and CAPACITY, including staffing LEVELS, retention, organizational knowledge (Item 4.2); and provide the
and appropriate skills? operational basis for CUSTOMER-focused and service
RESULTS (Item 7.1), market (Item 7.2) and financial
The EBS Prescribed MEASURE of Employee Turnover RESULTS (Item 7.3).
should be reported.
(4) WORKFORCE Climate What are your current LEVELS and
TRENDS in KEY MEASURES or INDICATORS of your WORKFORCE
climate, including workplace health, safety, WELLNESS and
security and WORKFORCE services, as appropriate?
The EBS Prescribed MEASURES of Total Recordable
Case Rate (TRCR) and Days Away Case Rate (DACR)
should be reported as appropriate. In addition, the
number of injuries that meet the Eaton definition of
severe should be reported.
(5) WORKFORCE INCLUSION RESULTS of the Eaton Employee
Survey that reflect the Eaton Philosophy Inclusion dimension.
NOTES
7.4 RESULTS reported in this Item should relate to activities
described in Category 5. Your RESULTS should be
responsive to KEY WORK PROCESS needs described in
Category 6 and to your organization’s ACTION PLANS and
human resource or WORKFORCE plans described in Item
2.2.
Notes
CUSTOMER SURVEY (#) speaking, an Eaton location may compare this metric to their credit
Customer Relationship Review (CRR) is the face-to-face process of terms to determine effectiveness in collecting balances due.
interviewing strategic customers to capture voice of the customer to MANUFACTURING PROFIT % SALES
drive internal actions for improvement. The discussions are
conducted by Eaton personnel. The Customer Loyalty Coefficient Sales Manufacturing profit (sales less cost of sales and
(CLC) is the numeric output of the process. The CLC score can be manufacturing variances) expressed as a % of sales. A measure of
used to benchmark Eaton performance with our customers within a profitability of the manufacturing operations.
group or across groups to identify improvement opportunities. It is PERFORMANCE TO BUDGET ($)
required for Aerospace, Vehicle, Hydraulics, Filtration, Golf Grip, and
Electrical to report a single CLC score globally. The range is 8 to Comparison of actual expense amounts (net expense) to pre-
100 with good scoring at a 70 to 80 and a score below 50 requires determined budget amounts (profit plan). Used to manage and hold
further investigation. Additional information can be found on JOE in actual expense levels as reported in RADAR and ENCORE.
the Sales & Marketing Functional Channel. ROS (%)
ON-TIME DELIVERY (%) Return on Sales Operating profit expressed as a % of sales. A
The measurement of actual product delivery lines shipped to the measure of profitability from continuing operations taking operating
date promised the customer ÷ total shipments due. profit ($) ÷ by net sales ($) x 100.
Calculated as 1,000,000* (External customer zero mile defects or An expense ratio metric that expresses total support expense (total
hour defects + external customer field defects) ÷ units shipped Distribution, Administrative, Selling, and R&D expenses) as a % of
(external). total sales. Used to measure and hold expense levels in line with
sales levels This calculation takes support expense ($) ÷ net sales
MARKET OUTGROWTH % ($) x 100.
This measure takes the difference between the actual market DAYS AWAY CASE RATE (#)
outgrowth versus the original profit plan expectations. This also
includes key trends and indications of turning points. Some key This is the number of cases that involve days away from work, or
questions include; how are you doing versus the market outgrowth days of restricted work activity or job transfer, or both, per 100 full-
goal of 50%; how are you doing against your new product launch time workers and calculated as: (N/EH) × 200,000 where: N =
goals, how are you doing in terms of business with our newly number of injuries and/or illnesses, EH = total hours worked by all
designated growth accounts; how are you doing in growing your employees during the calendar year, 200,000 = base for 100 full-
Service/Aftermarket business; how are you doing in growing your time equivalent workers (working 40 hours per week, 50 weeks per
Asia Pacific revenues, how are you doing in growing your Emerging year).
economy revenues. a. Cases involving days away from work are cases requiring at
least one day away from work with or without days of job
CAPITAL EXPENDITURES TO YTD ($) transfer or restriction.
Capital Expenditures YTD to Profit Plan represents the comparison b. Job transfer or restriction cases occur when, as a result of a work-
between the dollar amounts actually spent on capital items to the related injury or illness, an employer or health care professional
dollar amounts in the Profit Plan. Tracking this measure allows keeps, or recommends keeping an employee from doing the routine
Eaton to monitor the flow of spending throughout the year. functions of his or her job or from working the full workday that the
employee would have been scheduled to work before the injury or
CFROGC (%)
illness occurred.
Cash Flow Return on Gross Capital is the cash generated from
operations as a % of the dollars invested in the operation. It is a
measure of how efficiently a business unit utilizes and generates
cash. This metric evaluates the amount of profit a business unit
generates (Gross Operating Cash Flow) in relation to the amount of
cash invested in the business in the form of working capital,
property, plant and equipment (Gross Operating Capital). The
calculation is In Gross Operating Cash Flow ($) / $ Average Gross
Operating Capital ($) × 100.
DPO (#)
Days Payable Outstanding is average number of days needed for
any location to pay creditors. Additional information can be found in
SCM Policy 36: Standard Payment Terms on JOE in the Supply
Chain Channel.
DSO (#)
Days Sales Outstanding is the average number of days Eaton
customers are taking to pay their invoices. It is a measurement of
many days (time) it takes to convert sales dollars to cash. Generally
CONC
The elements of CONC (Cost of Non Conformance) are as follows.
● Product Warranty
● Rework
● Scrap
● Excess and Obsolete Inventory
● Maintenance
● Premium Inbound and Outbound Freight
For additional information on the definitions and appropriate
accounts for each element, please see the CONC policy on the
Quality website within JOE>Cost Out ($).
DOH
Days on Hand, the average number of days that inventory is held
before it is consumed or sold. The amount of time that is required to
convert inventory into sales. Generally speaking the lower the better,
unless the ability to fill customer orders drops to an unacceptable
level. Refer to EPM under the details tab or the EPM section of EBS
Navigator for further information in regards to this metric.
At the Worldwide Leadership Conference in 2011, the multi-year repositioning of the Eaton Business System was unveiled, which included a
customization of EBE Business Level Assessments based on organizational maturity. This was to be designed to ensure that we continue to
provide the businesses with relevant feedback to allow a continuation of their respective journeys. This customization evolved into a set of
Eaton Excellence Indicators, which can be thought of as enablers that help drive an organization towards excellence.
Development of the Eaton Excellence Indicators included multiple inputs from multiple stakeholders, including a review of EBEA Feedback
Reports for our highest performing businesses to identify common processes that contributed to excellent performance, multiple teams of
experienced EBE examiners and business leaders adding their own experiences and defining the performance expected at “Performing” and
“Excelling” levels, and multiple reviews with Eaton leaders at all levels of the organization. A final edit was done to provide consistency of
style, level of detail, and to minimize overlap from one enabler to another.
EBE examiners on an assessment will conduct EBE assessments as always, relying on the “Criteria” and evaluation factors (i.e.., Approach,
Deployment, Learning, Integration, Level, Trend, and Comparison) but with the additional filter of how Eaton defines Performing and Excelling.
Eaton Excellence Indicators may be incorporated into strengths and/or opportunities for improvements. The extent of their usage will depend
on the maturity of the organization being assessed, and the examiner team’s understanding of the most relevant and high-valued feedback for
the organization. There is no change in scoring as a result of the introduction of the Eaton Excellence Indicators. Scoring will continue to be
based on a holistic evaluation of the organization based on what is important to them (Key Business Factors), the criteria and the evaluation
factors.
Eaton businesses can use the Eaton Excellence Indicators as a resource in self-assessing where they stand on their journey to Excellence.
• Planning
• Talent Management
• Growth
• Forecasting
• Manufacturing Excellence
The concept of “Central Purpose” has been introduced to the criteria DATA PROTECTION
in as a way to more specifically identify the critical things an
organization should be focused on to help accomplish its mission. The term “Data Protection” refers to the protection of personal data
Eaton’s “mission” is often a broader, higher-level concept that relating to an employee, applicant, customer, supplier or other party
addresses what an organization is attempting to accomplish. Central as required by applicable law and/or Eaton policy. “Personal data” is
purpose refers to the fundamental reason that an organization exists defined broadly and can include any information that can be used to
and identifies what the local organization must do to support the identify an individual, such as an E-number, salary, salary band,
mission of the parent organization. Two organizations in different performance rating, age, gender, shirt size, address, work email
businesses could have similar purposes, and two organizations in address, work phone number, private phone number, etc. Data
the same business could have different purposes. Protection laws and Eaton’s policies, including our Employee Data
Protection Policy, place restrictions on the collection, storage, use,
CORE COMPETENCIES processing, publication or transmission of personal data.
The term “core competencies” refers to your organization’s areas of
greatest expertise. Your organization’s core competencies are those DEPLOYMENT
strategically important capabilities that provide an advantage in your The term “deployment” refers to the extent to which an approach is
marketplace or service environment. Core competencies frequently applied in addressing the requirements of an EBE Criteria Item.
are challenging for competitors or suppliers and partners to imitate, Deployment is evaluated on the basis of the breadth and depth of
and they provide a sustainable competitive advantage. application of the approach to relevant work units throughout the
Core competencies may involve technology expertise, unique organization.
service offerings, a marketplace niche, or a particular business Deployment is one of the dimensions considered in evaluating
acumen (e.g., business acquisitions). Process Items. For further description, see EBE Scoring System in
CUSTOMER this section.
The term “customer” refers to actual and potential users of your DIVERSITY
organization’s products, programs, or services. Customers include
The term “diversity” refers to the rich range of differences that make
the end users of your products, programs, or services, as well as
each individual unique. These differences address many variables,
others who might be the immediate purchasers or users. This might
including race, religion, color, gender, national origin, disability,
include distributors, agents, or organizations that further process
sexual orientation, age, and generational preferences, education,
your product as a component of their product. Customers may also
geographic origin, and skill characteristics, as well as differences in
be internal. The Criteria address customers broadly, referencing
ideas, thinking, academic disciplines, and perspectives.
current customers and future customers, as well as customers of
your competitors. The Criteria refer to the diversity of your workforce, workplace and
communities. Workforce is the diversity of employees, workplace is
Customer-driven excellence is an Eaton core value embedded in the
the environment in which employees work. Communities are your
beliefs and behaviors of high-performance organizations. Customer
suppliers, customers and the communities in which you do business.
focus impacts and should integrate an organization’s strategic
Capitalizing on diversity provides enhanced opportunities for high
directions, its work systems and work processes, and its business
performance and innovation; customer, workforce, and community
results.
satisfaction; and employee engagement.
See the definition of “STAKEHOLDERS” for the relationship between
customers and others who might be affected by your products, EFFECTIVE
programs, or services. The term “effective” refers to how well a process or a measure
addresses its intended purpose. Determining effectiveness requires
CUSTOMER ENGAGEMENT
(1) the evaluation of how well the approach is aligned with the
The term “customer engagement” refers to your customers’ organization’s needs and how well the approach is deployed or
investment in or commitment to your brand and product offerings. (2) the evaluation of an outcome of the measure used.
It is based on your ongoing ability to serve their needs and build
relationships so they will continue using your products. EMPOWERMENT
Characteristics of customer engagement include customer retention The term “empowerment” refers to giving people the authority and
and loyalty, customers’ willingness to make an effort to do business responsibility to make decisions and take actions. Empowerment
with your organization, and customers’ willingness to actively results in decisions being made closest to the “front line,” where
advocate for and recommend your brand and product offerings. work-related knowledge and understanding reside.
Empowerment is aimed at enabling people to satisfy customers on
first contact, to improve processes and increase productivity, and to
MULTIPLE REQUIREMENTS evaluation and comparison relative to goals, standards, past results,
The term “multiple requirements” refers to the individual questions and other organizations. Performance can be expressed in
Criteria users need to answer within each Area to Address. These nonfinancial and financial terms.
questions constitute the details of an Item’s requirements. They are The EBE Criteria address four types of performance: (1) customer-
presented in black text under each Item’s Area(s) to Address. This focused, (2) product and service, (3) financial and marketplace, and
presentation is illustrated in the Item format shown in this section: (4) operational.
Item Format Guidelines, Figure 4.1. “Customer-focused performance” refers to performance relative to
OPA SYSTEM measures and indicators of customers’ (both internal and external)
perceptions, reactions, and behaviors. Examples include customer
The term “OpA system” refers to the elements of the OpA retention, complaints, and customer survey results.
Deployment model, including CI goal setting, self-assessments, OpA
Leadership Reviews, Validated OpAs and closing the loop with “Product and service performance” refers to performance relative to
revision of CI goals for the next planning period. measures and indicators of product and service characteristics
important to customers. Examples include product reliability, on-time
Additional related terms include “OpA Group” which is a set of plants delivery, customer-experienced defect levels, and service response
reviewed by one OpA Leadership Team. The Group Leadership time.
Team Review (GLR) or OpA Leadership Team (OpA-LR) includes a
balanced team made up of Functional SMEs and operational leaders “Financial and marketplace performance” refers to performance
responsible for overseeing OpA deployment, conducting leadership relative to measures of cost, revenue, and market position, including
reviews and validated OpAs of plants within the appropriate asset utilization, asset growth, and market share. Examples include
organization. OpA self-assessments (OpA-SA) are conducted by the returns on investments, value added per employee, debt to equity
plants. Key Operating Factors (KOFs) are the “vital few” ratio, returns on assets, operating margins, performance to budget,
short/medium term objectives or statements of fact, which influence cash-to-cash cycle time, other profitability and liquidity measures,
the important decisions and focus the entire organization. and market gains.
“Operational performance” refers to workforce, leadership,
OVERALL REQUIREMENTS organizational, and ethical performance relative to effectiveness,
The term “overall requirements” refers to the topics Criteria users efficiency, and accountability measures and indicators. Examples
need to address when responding to the central theme of an Item. include cycle time, productivity, waste reduction, workforce turnover,
Overall requirements address the most significant features of the workforce cross-training rates, regulatory compliance, fiscal
Item requirements. In the Criteria, the overall requirements of each accountability, and community involvement. Operational
Item are presented in one or more introductory sentences printed in performance might be measured at the work unit level, key process
bold. This presentation is illustrated in the Item format shown in this level, and organizational level.
section: Item Format Guidelines, Figure 4.1.
PERFORMANCE EXCELLENCE
PARENT The term “performance excellence” refers to an integrated approach
The term “parent” refers to organizational reporting relationship. to organizational performance management that results in
Examples include a business or divisional relationship to a plant, a (1) delivery of ever-improving value to customers and stakeholders,
Group relationship to a business or division, the corporation’s contributing to organizational continuity; (2) improvement of overall
relationship to a Group, or the Group or corporation’s relationship organizational effectiveness and capabilities; and
with a functional organization. (3) organizational and personal learning. The EBE Criteria for
Performance Excellence provide a framework and an assessment
PARENT AND/OR CHILD tool for understanding organizational strengths and opportunities for
The term “parent and/or child” refers to organizational reporting improvement and thus for guiding planning efforts.
relationship. These relationships can flow upwards as a child or
downwards with the responsibility as the parent. An example may PERFORMANCE PROJECTIONS
be a business with child responsibility to the group and parent The term “performance projections” refers to estimates of future
responsibility for a plant. performance. Projections may be inferred from past performance,
may be based on competitors’ or similar organizations’ performance
PARTNERS that must be met or exceeded, may be predicted based on changes
The term “partners” refers to those key organizations or individuals in a dynamic environment, or may be goals for future performance.
who are working together with your organization to achieve a Projections integrate estimates of your organization’s rate of
common goal or to improve performance. Typically partnerships are improvement and change, and they may be used to indicate where
formal breakthrough improvement or innovation is needed. While
or informal arrangements for a specific aim or purpose such as to performance projections may be set to attain a goal, they also may
achieve a strategic objective or to deliver a specific product or be predicted levels of future performance that indicate the
service. challenges your organization faces in achieving a goal. Thus,
Formal partnerships are usually for an extended period of time and performance projections serve as a key management-planning tool.
involve a clear understanding of the individual and mutual roles and PROCESS
benefits for the partners.
The term “process” refers to linked activities with the purpose of
PERFORMANCE producing a product or service for a customer (user) within or
The term “performance” refers to output and outcomes obtained outside the organization. Generally, processes involve combinations
from processes, products, services and customers that permit of people, machines, tools, techniques, materials, and improvements
in a defined series of steps or actions. Processes rarely operate in volume, or technologies employed. Workforce segmentation might
isolation and must be considered in relation to other processes that be based on geography, skills, needs, work assignments, or job
impact them. In some situations, processes might require adherence classification.
to a specific sequence of steps, with documentation (sometimes
formal) of procedures and requirements, including well-defined SENIOR LEADERS
measurement and control steps. The term “senior leaders” refers to an organization’s senior
In many service situations, particularly when customers are directly management group or team. In many organizations, this consists of
involved in the service, process is used in a more general way, (i.e., the head of the organization and his or her direct reports.
to spell out what must be done, possibly including a preferred or STAKEHOLDERS
expected sequence). If a sequence is critical, the service needs to
include information to help customers understand and follow the The term “stakeholders” refers to all groups that are or might be
sequence. Such service processes also require guidance to the affected by an organization’s actions and success. Examples of key
providers of those services on handling contingencies related to the stakeholders include customers, workforce, partners, governing
possible actions or behaviors of those served. boards, stockholders, suppliers, regulatory bodies, policy makers,
and local/professional communities.
In knowledge work such as strategic planning, research,
development, and analysis, process does not necessarily imply See also the definition of “CUSTOMER.”
formal sequences of steps. Rather, process implies general STRATEGIC ADVANTAGES
understandings regarding competent performance, such as timing,
The term “strategic advantages” refers to those marketplace benefits
options to be included, evaluation, and reporting. Sequences might
that exert a decisive influence on an organization’s likelihood of
arise as part of these understandings.
future success. These advantages frequently are sources of an
In the EBE Scoring System, your process achievement level is organization’s current and future competitive success relative to
assessed. This achievement level is based on four factors that can other providers of similar products and services. Strategic
be evaluated for each of an organization’s key processes: Approach, advantages generally arise from either or both of two sources:
Deployment, Learning, and Integration. For further description, see (1) core competencies, through building and expanding on an
EBE Scoring System in this section. organization’s internal capabilities, and (2) strategically important
PRODUCTIVITY external resources, which are shaped and leveraged through key
external relationships and partnerships.
The term “productivity” refers to measures of the efficiency of
resource use. When an organization realizes both sources of strategic advantage,
it can amplify its unique internal capabilities by capitalizing on
Although the term often is applied to single factors such as the complementary capabilities in other organizations.
workforce (labor productivity), machines, materials, energy, and
capital, the productivity concept applies as well to the total resources See the definition of “STRATEGIC CHALLENGES” and “STRATEGIC
OBJECTIVES” for the relationship among strategic advantages,
used in producing outputs. The use of an aggregate measure of
overall productivity allows a determination of whether the net effect strategic challenges and the strategic objectives an organization
of overall changes in a process—usually involving resource articulates to address its challenges and advantages.
tradeoffs—is beneficial. STRATEGIC CHALLENGES
RESULTS The term “strategic challenges” refers to those pressures that exert a
The term “results” refers to outputs and outcomes achieved decisive influence on an organization’s likelihood of future success.
by an organization in addressing the requirements of an EBE These challenges frequently are driven by an organization’s future
Criteria Item. Results are evaluated on the basis of current competitive position relative to other providers of similar products or
performance; performance relative to appropriate comparisons; the services. While not exclusively so, strategic challenges generally are
rate, breadth, and importance of performance improvements; and externally driven. However, in responding to externally driven
the relationship of results measures to key organizational strategic challenges, an organization may face internal strategic
performance requirements. For further description, see EBE Scoring challenges.
System in this section. External strategic challenges may relate to customer or market
needs or expectations; product, service, or technological changes;
SEGMENT or financial, public and other risks or needs. Internal strategic
The term “segment” refers to a part of an organization’s overall challenges may relate to an organization’s capabilities or its human
customer, market, product or service line or workforce base. and other resources.
Segments typically have common characteristics that can be See the definition of “STRATEGIC ADVANTAGES” and “STRATEGIC
logically grouped. In Results Items, the term refers to disaggregating OBJECTIVES” for the relationship between strategic challenges,
results data in a way that allows for meaningful analysis of an strategic advantages and the strategic objectives an organization
organization’s performance. It is up to each organization to articulates to address key challenges.
determine the specific factors that it uses to segment its customers,
markets, products, services, and workforce. STRATEGIC OBJECTIVES
Understanding segments is critical to identifying the distinct needs The term “strategic objectives” refers to an organization’s articulated
and expectations of different customer, market, and workforce aims or responses to address major change or improvement,
groups and to tailoring products, services, and programs to meet competitiveness or public issues, and business advantages.
their needs and expectations. As an example, market segmentation Strategic objectives generally are focused both externally and
might be based on geography, distribution channels, business internally and relate to significant customer, market, product,
service, or technological opportunities and challenges (strategic interactions, exceeding customer expectations, valuing individuals
challenges). Broadly stated, they are what an organization must and diversity, protecting the environment, and striving for
achieve to remain or become competitive and ensure long-term performance excellence every day.
continuity. Strategic objectives set an organization’s longer-term
directions and guide resource allocations and redistributions. VALUES IN ACTION
See the definition of “ACTION PLANS” for the relationship between The term “Values in Action” refers to the series of compliance
strategic objectives and action plans and for an example of each. training classes offered by Eaton under the title “values in Action”
whether online through Eaton University, via web or teleconference,
SYSTEMATIC or through in-person sessions. The Values in Action series is
The term “systematic” refers to approaches that are well-ordered, designed to deliver required training on specific ethics and
are repeatable and use data and information so learning is possible. compliance issues to targeted individuals. Training requirements
In other words, approaches are systematic if they build in the vary by function and region and are based on purposeful criteria.
opportunity for evaluation, improvement, and sharing, thereby Active participation in this training series is a key part of our
permitting a gain in maturity. For use of the term, see EBE Scoring commitment to doing business right.
System in this section. VISION
TRENDS The term “vision” refers to the desired future state of your
The term “trends” refers to numerical information that shows the organization. The vision describes where the organization is headed,
direction and rate of change for an organization’s results. Trends what it intends to be, or how it wishes to be perceived in the future.
provide a time sequence of organizational performance. VOICE OF THE CUSTOMER
A minimum of three historical (not projected) data points generally is The term “voice of the customer” refers to your process for capturing
needed to begin to ascertain a trend. More data points are needed customer-related information. Voice-of-the-customer processes are
to define a statistically valid trend. The time period for a trend is intended to be proactive and continuously innovative to capture
determined by the cycle time of the process being measured. stated, unstated, and anticipated customer requirements,
Shorter cycle times demand more frequent measurement, while expectations, and desires. The goal is to achieve customer
longer cycle times might require longer time periods before engagement. Listening to the voice of the customer might include
meaningful trends can be determined. gathering and integrating various types of customer data, such as
Examples of trends called for by the Criteria include data related to survey data, focus group findings, warranty data, and complaint data
product and service performance, customer and workforce that affect customers’ purchasing and engagement decisions.
satisfaction and dissatisfaction results, financial performance,
marketplace performance, and operational performance, such as WELLNESS
cycle time and productivity.
The term “wellness” refers to sites complying with the requirements
VALUE of the five pillars of Wellness: Know Your Numbers, Get Fit, Eat
Healthy, Manage Stress and Be Tobacco Free. In our effort to help
The term “value” refers to the perceived worth of a product, service,
improve the lives and health of Eaton employees and their families,
process, asset, or function relative to cost and to possible
Eaton is transforming to a culture of wellness. Taking action in these
alternatives.
areas could help prevent, and even reverse chronic illnesses.
Organizations frequently use value considerations to determine the
benefits of various options relative to their costs, such as the value WORK PROCESSES
of various product and service combinations to customers (both The term “work processes” refers to your most important internal
internal and external). Organizations need to understand what value creation processes. They might include product design and
different stakeholder groups value and then deliver value to each delivery, customer support, supply chain management, business,
group. This frequently requires balancing value for customers and and support processes. They are the processes that involve the
other stakeholders, such as your workforce and the community. majority of your organization’s workforce and produce customer,
stakeholder, and stockholder value.
VALUE CREATION
Your key processes frequently relate to your core competencies, to
The term “value creation” refers to work processes that produce
the factors that determine your success relative to competitors, and
benefit for your customers and for your business. They are the work
to the factors considered important for business growth by your
processes most important to “running your business"—those that
senior leaders.
involve the majority of your workforce and generate your products,
your services, and positive business results for your stockholders WORK SYSTEMS
and other key stakeholders.
The term “work systems” refers to how the work of your organization
VALUES is accomplished. Work systems involve your workforce, your key
suppliers and partners, your contractors, and other components of
The term “values” refers to the guiding principles and behaviors that
the supply chain needed to produce and deliver your products,
embody how your organization and its people are expected to
services, and business and support processes. Your work systems
operate. Values reflect and reinforce the desired culture of the
coordinate the internal work processes and the external resources
organization. Values support and guide the decision making of every
necessary for you to develop, produce, and deliver your products
workforce member, helping the organization to accomplish its
and services to your customer and to succeed in your marketplace.
mission and attain its vision in an appropriate manner. Examples of
values might include demonstrating integrity and fairness in all Decisions about work systems are strategic. These decisions involve
protecting and capitalizing on core competencies and deciding what
should be procured or produced outside your organization in order to customers, including the ability to meet seasonal or varying demand
be efficient and sustainable in your marketplace. levels.
Figure 4.1
Basic Item
requirements
expressed in
Item Title
EBS requirement
stated above
multiple
Notes have the
requirements
following purpose:
applies to all
• clarify key terms
and requirements
Areas to Address • give instructions
• indicate/clarify
important
linkages
Multiple
requirements
expressed
as individual
Criteria questions
Location of Item
Description
Evaluation Guidelines
For Use With Categories 1-6
Score Process
● The beginning of a SYSTEMATIC APPROACH to the BASIC REQUIREMENTS of the Item is evident. (A)
10%,
● The APPROACH is in the early stages of DEPLOYMENT in most areas or work units, inhibiting progress in achieving the BASIC
15%,
REQUIREMENTS of the Item. (D)
20%, or
● Early stages of a transition from reacting to problems to a general improvement orientation are evident. (L)
25%
● The APPROACH is ALIGNED with other areas or work units largely through joint problem solving. (I)
● An EFFECTIVE, SYSTEMATIC APPROACH, responsive to the BASIC REQUIREMENTS of the Item is evident. (A)
30%,
● The APPROACH is DEPLOYED, although some areas or work units are in early stages of DEPLOYMENT. (D)
35%,
● The beginning of a SYSTEMATIC APPROACH to evaluation and improvement of KEY PROCESSES is evident. (L)
40%, or
45% ● The APPROACH is in early stages of ALIGNMENT with your basic organizational needs identified in response to the
Organizational Profile and other PROCESS Items. (I)
● An EFFECTIVE, SYSTEMATIC APPROACH, responsive to the OVERALL REQUIREMENTS of the Item is evident. (A)
50%, ● The APPROACH is well DEPLOYED, although DEPLOYMENT may vary in some areas or work units. (D)
55%, ● A fact-based, SYSTEMATIC evaluation and improvement PROCESS and some organizational LEARNING, including INNOVATION,
60%, or are in place for improving the efficiency and effectiveness of KEY PROCESSES. (L)
65% ● The APPROACH is ALIGNED with your organizational needs identified in response to the Organizational Profile and other
PROCESS Items. (I)
● An EFFECTIVE, SYSTEMATIC APPROACH, responsive to the MULTIPLE REQUIREMENTS of the Item, is evident. (A)
70%, ● The APPROACH is well DEPLOYED, with no significant gaps. (D)
75%, ● Fact-based, SYSTEMATIC evaluation and improvement and organizational LEARNING, including INNOVATION, are KEY
80%, or management tools; there is clear evidence of refinement as a result of organizational-level ANALYSIS and sharing. (L)
85% ● The APPROACH is INTEGRATED with your current and future organizational needs identified in response to the other
Organizational Profile and other PROCESS Items. (I)
● An EFFECTIVE, SYSTEMATIC APPROACH, fully responsive to the MULTIPLE REQUIREMENTS of the Item is evident. (A)
● The APPROACH is fully DEPLOYED without significant weaknesses or gaps in any areas or work units. (D)
90%, ● Fact-based, SYSTEMATIC evaluation and improvement and organizational LEARNING through INNOVATION, are KEY
95% organization-wide tools; refinement and INNOVATION, backed by ANALYSIS and sharing, are evident throughout the
or 100% organization. (L)
● The APPROACH is well INTEGRATED with your current and future organizational needs identified in response to the
Organizational Profile and other PROCESS Items. (I)
Evaluation Guidelines
For Use With Category 7
Score Process
● There are no organizational PERFORMANCE RESULTS and/or poor RESULTS in areas reported. (Le)
0%
● TREND data are either not reported or show mainly adverse TRENDS. (T)
or
● Comparative information is not reported. (C)
5%
● RESULTS are not reported for any areas of importance to the accomplishment of your organization’s MISSION. (I)
● A few organizational PERFORMANCE RESULTS are reported responsive to the BASIC REQUIREMENTS of the Item, and early good
10%, PERFORMANCE LEVELS are evident in a few areas. (Le)
15%,
● Some TREND data are reported, with some adverse TRENDS evident. (T)
20%, or
● Little or no comparative information is reported. (C)
25%
● RESULTS are reported for a few areas of importance to the accomplishment of your organization’s MISSION.(I)
30%, ● Good organizational PERFORMANCE LEVELS are reported responsive to the BASIC REQUIREMENTS of the Item. (Le)
35%, ● Some TREND DATA are reported and a majority of the TRENDS presented are beneficial. (T)
40%, or ● Early stages of obtaining comparative information are evident. (C)
45% ● RESULTS are reported for many areas of importance to the accomplishment of your organization’s MISSION. (I)
● Good organizational PERFORMANCE LEVELS are reported responsive to the OVERALL REQUIREMENTS for the Item. (Le)
50%,
● Beneficial TRENDS are evident in areas of importance to the accomplishment of your organization’s MISSION. (T)
55%,
● Some current PERFORMANCE LEVELS have been evaluated against relevant comparisons and/or BENCHMARKS and show areas
60%, or
of good relative PERFORMANCE. (C)
65%
● Organizational PERFORMANCE RESULTS are reported for most KEY CUSTOMER, market, and PROCESS requirements. (I)
● Good to excellent organizational PERFORMANCE LEVELS are reported responsive to the MULTIPLE REQUIREMENTS of the
Item. (Le)
70%, ● Beneficial TRENDS have been sustained over time in most areas of importance to the accomplishment of your organization’s
75%, MISSION. (T)
80%, or ● Many to most TRENDS and current PERFORMANCE LEVELS have been evaluated against relevant comparisons and/or
85% BENCHMARKS and show areas of leadership and very good relative PERFORMANCE. (C)
● Organizational PERFORMANCE RESULTS are reported for most KEY CUSTOMER, market, PROCESS, and ACTION PLAN
requirements. (I)
● Excellent organizational PERFORMANCE LEVELS are reported that are fully responsive to the MULTIPLE REQUIREMENTS for the
Item. (Le)
90%,
● Beneficial TRENDS have been sustained over time in all areas of importance to the accomplishment of your organization’s
95%
MISSION. (T)
or 100%
● Evidence of industry and BENCHMARK leadership is demonstrated in many areas. (C)
● Organizational PERFORMANCE RESULTS fully address KEY CUSTOMER, market, PROCESS, and ACTION PLAN requirements. (I)
Operations are characterized by activities rather The organization is at the beginning stages of
than by PROCESSES, and they are largely conducting operations by PROCESSES with
responsive to immediate needs or problems. repeatability, evaluation and improvement, and
GOALS are poorly defined. some early coordination among organizational
units. Strategy and quantitative GOALS are being
defined.
Operations are characterized by PROCESSES that Operations are characterized by PROCESSES that
are repeatable and regularly evaluated for are repeatable and regularly evaluated for change
improvement, with LEARNINGS shared and with and improvement in collaboration with other
coordination among organizational units. affected units. Efficiencies cross units are sought
PROCESSES address KEY strategies and GOALS of and achieved, through ANALYSIS, INNOVATION, and
the organization. sharing. PROCESSES and MEASURES track progress
on KEY strategic and operational GOALS.
Notes