001 Strategy Deployment Playbook 2.0 09262012
001 Strategy Deployment Playbook 2.0 09262012
001 Strategy Deployment Playbook 2.0 09262012
Strategy Deployment
What We Will Cover
PENTAIR 2
PURPOSE, OBJECTIVES, SCOPE, CHALLENGES
PURPOSE AND BENEFITS LEARNING OBJECTIVES SCOPE CHALLENGES TO OVERCOME
• Learn the necessary • Explain the purpose Module Addresses: • Lack of Executive/President
tools and processes to and importance of • Review of the PIMS sponsorship/involvement in
drive breakthrough Strategy Deployment Continuous Strategy Deployment
objectives in alignment Improvement model development
with our broader • Describe Pentair’s
cascading process for • What are the Strategy • Cross-Functional
corporate goals
Strategy Deployment Deployment steps involvement in Strategy
• Increase consistency Deployment development
• Utilize X-Charts and • Overview of the tools
and rigor in the and templates used for • Desire to make everything a
application of the PIMS Bowling Charts / Plant breakthrough objective (vs.
Scorecards to manage Strategy Deployment
Strategy Deployment lower priority KPIs)
process Strategy Deployment
activities • Embedding Corp priorities
Out of Scope For Module: vs. GBU priorities
• Benefits: a sustainable
process and culture of • Understand linkage of • How to create a • Aligning measures cross-
continuous Strategy Deployment to Transformation Plan functionally & outside GBU
improvement that Transformation
• How to create A3’s • Cascading the plan
drives SQDCC gains year Planning
after year after year • Executing rhythm to touch
Bowling Charts / Scorecards
at regular frequency
Strategic
Objective is
Strategy
Deployment Achieved!
New Level of
KAIZEN
Performance
Improvement
Strategy
is Sustained!
Deployment
KAIZEN
New Level of
Performance Base
Strategy
Deployment Base
is Sustained!
KAIZEN
Base
Base Base
Year 0 Year 1 Year 2 Year 3 Year 4
Alignment
Del, Dean & Goal 63.6 67.1 83.6 66.9 67.0 85.2 68.9 69.2 86.1 70.1 65.3 77.0 0.0
Total Net Sales of
$870M
Regional 4.7% 831.0
Sales Actual 0.0
Non-North American Dean & Goal 3.2 3.2 4.0 3.0 3.0 3.7 3.5 3.5 4.3 3.3 3.3 4.2 0.0
Hoffman-branded Net Regional 20.0% 35.0
Sales $42.0M Sales Actual 0.0
Goal 0.3 0.3 0.4 0.4 0.4 0.5 0.7 0.7 0.9 0.8 0.8 1.0 0.0
New Product Sales Mark &
Sales
of $7.2M Steve
#DIV/0!
Actual 0.0
Goal 0.0
Total Global OEM
Sales of $XXX.X
Walter #DIV/0!
Actual 0.0
Branded Platform Goal 6.9 6.9 8.6 6.6 6.6 8.2 6.7 6.7 8.4 7.1 7.1 8.8 0.0
Sales "to" Emerging Regionals 16.0% 76.3
Markets of $88.5M Actual 0.0
Non-Material COGS
Goal 35.8% 34.8% 32.9% 35.0% 35.1% 33.5% 34.4% 33.8% 33.1% 35.1% 35.8% 34.8% YTD
Less than 34.4%
Nick 3.1% 35.5%
Actual YTD
Goal 2.2 2.2 2.8 0.9 0.9 1.1 -0.1 -0.1 -0.2 0.2 0.2 0.4 0.0
Total Sourcing
Cost
Savings of $10.4M
Joe -62.3% 27.6
Actual 0.0
Goal 2.6 2.6 2.8 2.6 2.6 2.8 2.6 2.5 2.8 2.6 2.6 2.8 0.0
G&A Spending of
$32.0M or less
John 0.3% 32.1
Actual 0.0
Goal 16.3% 16.8% 16.7% 17.2% 17.5% 17.8% 18.1% 18.4% 18.3% 18.6% 18.4% 18.2% Goal
Achieve After-tax
ROIC
ROIC of 18.2%
John 19.0% 15.3%
Actual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual
Goal 8.9 -0.1 3.3 8.5 8.0 0.5 13.4 6.0 2.1 12.4 15.5 11.4 0.0
Achieve $89.8M in
Free Cash
John -22.2% 115.4
Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cash
Goal 54.0 53.8 53.7 53.5 53.3 53.1 52.9 52.7 52.6 52.4 52.2 52.0 Goal
Quarterly DOH from
54.2 to 52
Nick 4.2% 54.2
Actual 0.0 0.0 Actual
Quality: Reduce Goal 4,679 4,608 4,538 4,467 4,396 4,325 4,254 4,183 4,113 4,042 3,971 3,900 Goal
External PPM's to Nick 18% 4,750
3,900 Actual - - Actual
Customer First
Improve Non- Goal Goal
81.8% 82.7% 83.5% 84.3% 85.2% 86.0% 86.8% 87.7% 88.5% 89.3% 90.2% 91.0%
Standard DRA to Nick 12.3% 81.0%
91% Actual 0% 0% Actual
Strategy Deployment
• Bridges Strategic Planning and Transformation Planning
• Creates alignment & accountability through all levels of the organization
• Is the process that turns strategy into action
2013 2013
Lamps - Engineering
Brazil > 30% Growth
Fowler - Operations
Humbert - Finance
Ruzynski - Supply
Inventory <$80M
3 Year GBU
create their X-charts, and the
Stirpe - EMEA
Breakthrough
Objectives
impact”. X
X X
4. Acquisitions of $600MM completed by end of 2015
5. 50% of Revenue outside of NA by 2015
P Primary
Responsibility
S Secondary
Responsibility
Improve
Project Excelerate Launched
$200M in acquisition closure
Lamps - Engineering
Brazil > 30% Growth
Fowler - Operations
Humbert - Finance
Ruzynski - Supply
Inventory <$80M
3 Year GBU
process effectiveness
Stirpe - EMEA
Breakthrough
Objectives
• If performance is not
progressing as planned, identify
Root Causes and Counter
Measures using 8 Step RCCM A3
template. Manage monthly.
By selecting these
processes, we’re defining
how the GBU’s
breakthrough objectives
will be achieved for that
year.
Assign Resources
The Marketing L2 –
1. Processes #1 and #2 are
rotated to the 9:00
position
2. The annual breakthrough
objectives are rotated to
the 6:00 position.
3. 3-5 year Objectives noted
below the matrix.
Creating L2’s
Creating an L2
Marketing.
The bowling chart contains the Bowling Chart – GBU XXX – Marketing
targets defined in the right
quadrant of the x-chart.
X-Charts Updated
L2 L2
Region or Category Operations
L3
For example, Operations may be Plant
assigned by the L1 responsibility for 2010 Top Level
2010 Breakthrough
2009
Del, Dean & Goal 63.6 67.1 83.6 66.9 67.0 85.2 68.9 69.2 86.1 70.1 65.3 77.0 0.0
Total Net Sales of
$870M
Regional 4.7% 831.0
Sales Actual 0.0
Non-North American Dean & Goal 3.2 3.2 4.0 3.0 3.0 3.7 3.5 3.5 4.3 3.3 3.3 4.2 0.0
Hoffman-branded Net Regional 20.0% 35.0
Sales $42.0M Sales Actual 0.0
Goal 0.0
Total Global OEM
Sales of $XXX.X
Walter #DIV/0!
Actual 0.0
Branded Platform Goal 6.9 6.9 8.6 6.6 6.6 8.2 6.7 6.7 8.4 7.1 7.1 8.8 0.0
Sales "to" Emerging Regionals 16.0% 76.3
Non-Material COGS
Goal 35.8% 34.8% 32.9% 35.0% 35.1% 33.5% 34.4% 33.8% 33.1% 35.1% 35.8% 34.8% YTD
Less than 34.4%
Nick 3.1% 35.5%
Actual YTD
Goal 2.2 2.2 2.8 0.9 0.9 1.1 -0.1 -0.1 -0.2 0.2 0.2 0.4 0.0
Total Sourcing
Cost
Savings of $10.4M
Joe -62.3% 27.6
Actual 0.0
Goal 16.3% 16.8% 16.7% 17.2% 17.5% 17.8% 18.1% 18.4% 18.3% 18.6% 18.4% 18.2% Goal
Achieve After-tax
ROIC
ROIC of 18.2%
John 19.0% 15.3%
Actual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual
Goal 8.9 -0.1 3.3 8.5 8.0 0.5 13.4 6.0 2.1 12.4 15.5 11.4 0.0
Achieve $89.8M in
Free Cash
John -22.2% 115.4
Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Quality: Reduce Goal 4,679 4,608 4,538 4,467 4,396 4,325 4,254 4,183 4,113 4,042 3,971 3,900 Goal
External PPM's to Nick 18% 4,750
3,900 Actual - - Actual
Customer First
Improve Non- Goal Goal
81.8% 82.7% 83.5% 84.3% 85.2% 86.0% 86.8% 87.7% 88.5% 89.3% 90.2% 91.0%
plant in Europe.
Standard DRA to Nick 12.3% 81.0%
91% Actual 0% 0% Actual
Del, Dean & Goal 63.6 67.1 83.6 66.9 67.0 85.2 68.9 69.2 86.1 70.1 65.3 77.0 0.0
Total Net Sales of
$870M
Regional 4.7% 831.0
Sales Actual 0.0
Non-North American Dean & Goal 3.2 3.2 4.0 3.0 3.0 3.7 3.5 3.5 4.3 3.3 3.3 4.2 0.0
Hoffman-branded Net Regional 20.0% 35.0
Sales $42.0M Sales Actual 0.0
Goal 0.3 0.3 0.4 0.4 0.4 0.5 0.7 0.7 0.9 0.8 0.8 1.0 0.0
New Product Sales Mark &
Sales
of $7.2M Steve
#DIV/0!
Actual 0.0
Goal 0.0
Total Global OEM
Sales of $XXX.X
Walter #DIV/0!
Actual 0.0
Branded Platform Goal 6.9 6.9 8.6 6.6 6.6 8.2 6.7 6.7 8.4 7.1 7.1 8.8 0.0
Sales "to" Emerging Regionals 16.0% 76.3
Markets of $88.5M Actual 0.0
Non-Material COGS
Goal 35.8% 34.8% 32.9% 35.0% 35.1% 33.5% 34.4% 33.8% 33.1% 35.1% 35.8% 34.8% YTD
Less than 34.4%
Nick 3.1% 35.5%
Actual YTD
Goal 2.2 2.2 2.8 0.9 0.9 1.1 -0.1 -0.1 -0.2 0.2 0.2 0.4 0.0
Total Sourcing
Cost
Savings of $10.4M
Joe -62.3% 27.6
Actual 0.0
Goal 2.6 2.6 2.8 2.6 2.6 2.8 2.6 2.5 2.8 2.6 2.6 2.8 0.0
G&A Spending of
$32.0M or less
John 0.3% 32.1
Actual 0.0
Goal 16.3% 16.8% 16.7% 17.2% 17.5% 17.8% 18.1% 18.4% 18.3% 18.6% 18.4% 18.2% Goal
Achieve After-tax
ROIC
ROIC of 18.2%
John 19.0% 15.3%
Actual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual
Goal 8.9 -0.1 3.3 8.5 8.0 0.5 13.4 6.0 2.1 12.4 15.5 11.4 0.0
Achieve $89.8M in
Free Cash
John -22.2% 115.4
Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cash
Goal 54.0 53.8 53.7 53.5 53.3 53.1 52.9 52.7 52.6 52.4 52.2 52.0 Goal
Quarterly DOH from
54.2 to 52
Nick 4.2% 54.2
Actual 0.0 0.0 Actual
Quality: Reduce Goal 4,679 4,608 4,538 4,467 4,396 4,325 4,254 4,183 4,113 4,042 3,971 3,900 Goal
External PPM's to Nick 18% 4,750
3,900 Actual - - Actual
Customer First
Improve Non- Goal Goal
81.8% 82.7% 83.5% 84.3% 85.2% 86.0% 86.8% 87.7% 88.5% 89.3% 90.2% 91.0%
Standard DRA to Nick 12.3% 81.0%
91% Actual 0% 0% Actual
Plant
Opportunities
Transformation Plan
Funnel
Filling Kaizens
Del, Dean & Goal 63.6 67.1 83.6 66.9 67.0 85.2 68.9 69.2 86.1 70.1 65.3 77.0 0.0
Total Net Sales of
$870M
Regional 4.7% 831.0
Sales Actual 0.0
Non-North American Dean & Goal 3.2 3.2 4.0 3.0 3.0 3.7 3.5 3.5 4.3 3.3 3.3 4.2 0.0
Hoffman-branded Net Regional 20.0% 35.0
Sales $42.0M Sales Actual 0.0
Goal 0.3 0.3 0.4 0.4 0.4 0.5 0.7 0.7 0.9 0.8 0.8 1.0 0.0
New Product Sales Mark &
Sales
of $7.2M Steve
#DIV/0!
Actual 0.0
Goal 0.0
Total Global OEM
Sales of $XXX.X
Walter #DIV/0!
Actual 0.0
Branded Platform Goal 6.9 6.9 8.6 6.6 6.6 8.2 6.7 6.7 8.4 7.1 7.1 8.8 0.0
Sales "to" Emerging Regionals 16.0% 76.3
Markets of $88.5M Actual 0.0
Non-Material COGS
Goal 35.8% 34.8% 32.9% 35.0% 35.1% 33.5% 34.4% 33.8% 33.1% 35.1% 35.8% 34.8% YTD
Less than 34.4%
Nick 3.1% 35.5%
Actual YTD
Goal 2.2 2.2 2.8 0.9 0.9 1.1 -0.1 -0.1 -0.2 0.2 0.2 0.4 0.0
Total Sourcing
Cost
Savings of $10.4M
Joe -62.3% 27.6
Actual 0.0
Goal 2.6 2.6 2.8 2.6 2.6 2.8 2.6 2.5 2.8 2.6 2.6 2.8 0.0
G&A Spending of
$32.0M or less
John 0.3% 32.1
Actual 0.0
Goal 16.3% 16.8% 16.7% 17.2% 17.5% 17.8% 18.1% 18.4% 18.3% 18.6% 18.4% 18.2% Goal
Achieve After-tax
ROIC
ROIC of 18.2%
John 19.0% 15.3%
Actual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual
Goal 8.9 -0.1 3.3 8.5 8.0 0.5 13.4 6.0 2.1 12.4 15.5 11.4 0.0
Achieve $89.8M in
Free Cash
John -22.2% 115.4
Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cash
Goal 54.0 53.8 53.7 53.5 53.3 53.1 52.9 52.7 52.6 52.4 52.2 52.0 Goal
Quarterly DOH from
54.2 to 52
Nick 4.2% 54.2
Actual 0.0 0.0 Actual
Quality: Reduce Goal 4,679 4,608 4,538 4,467 4,396 4,325 4,254 4,183 4,113 4,042 3,971 3,900 Goal
External PPM's to Nick 18% 4,750
3,900 Actual - - Actual
Customer First
Improve Non- Goal Goal
81.8% 82.7% 83.5% 84.3% 85.2% 86.0% 86.8% 87.7% 88.5% 89.3% 90.2% 91.0%
Standard DRA to Nick 12.3% 81.0%
91% Actual 0% 0% Actual
L2 L2
Region or Category Operations
Bowling Chart
2010 Top Level 2009
2010 Breakthrough
Breakthrough Resource % to Improve Launch 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Actual
Targets
Processes Point
Del, Dean & Goal 63.6 67.1 83.6 66.9 67.0 85.2 68.9 69.2 86.1 70.1 65.3 77.0 0.0
Total Net Sales of
$870M
Regional 4.7% 831.0
Sales Actual 0.0
Non-North American Dean & Goal 3.2 3.2 4.0 3.0 3.0 3.7 3.5 3.5 4.3 3.3 3.3 4.2 0.0
Hoffman-branded Net Regional 20.0% 35.0
Sales $42.0M Sales Actual 0.0
Goal 0.3 0.3 0.4 0.4 0.4 0.5 0.7 0.7 0.9 0.8 0.8 1.0 0.0
New Product Sales Mark &
Sales
of $7.2M Steve
#DIV/0!
Actual 0.0
Goal 0.0
Total Global OEM
Sales of $XXX.X
Walter #DIV/0!
Actual 0.0
Branded Platform Goal 6.9 6.9 8.6 6.6 6.6 8.2 6.7 6.7 8.4 7.1 7.1 8.8 0.0
Sales "to" Emerging Regionals 16.0% 76.3
Markets of $88.5M Actual 0.0
Non-Material COGS
Goal 35.8% 34.8% 32.9% 35.0% 35.1% 33.5% 34.4% 33.8% 33.1% 35.1% 35.8% 34.8% YTD
Less than 34.4%
Nick 3.1% 35.5%
Actual YTD
Goal 2.2 2.2 2.8 0.9 0.9 1.1 -0.1 -0.1 -0.2 0.2 0.2 0.4 0.0
Total Sourcing
Cost
Savings of $10.4M
Joe -62.3% 27.6
Actual 0.0
Goal 2.6 2.6 2.8 2.6 2.6 2.8 2.6 2.5 2.8 2.6 2.6 2.8 0.0
G&A Spending of
$32.0M or less
John 0.3% 32.1
Actual 0.0
Goal 16.3% 16.8% 16.7% 17.2% 17.5% 17.8% 18.1% 18.4% 18.3% 18.6% 18.4% 18.2% Goal
Achieve After-tax
ROIC
ROIC of 18.2%
John 19.0% 15.3%
Actual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual
Goal 8.9 -0.1 3.3 8.5 8.0 0.5 13.4 6.0 2.1 12.4 15.5 11.4 0.0
Achieve $89.8M in
Free Cash
John -22.2% 115.4
Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cash
Goal 54.0 53.8 53.7 53.5 53.3 53.1 52.9 52.7 52.6 52.4 52.2 52.0 Goal
Quarterly DOH from
54.2 to 52
Nick 4.2% 54.2
Actual 0.0 0.0 Actual
Quality: Reduce Goal 4,679 4,608 4,538 4,467 4,396 4,325 4,254 4,183 4,113 4,042 3,971 3,900 Goal
External PPM's to Nick 18% 4,750
L3
3,900 Actual - - Actual
Customer First
Improve Non- Goal Goal
81.8% 82.7% 83.5% 84.3% 85.2% 86.0% 86.8% 87.7% 88.5% 89.3% 90.2% 91.0%
Standard DRA to Nick 12.3% 81.0%
91% Actual 0% 0% Actual
Bowling Chart
2010 Top Level
Breakthrough
Processes
2010 Breakthrough
Targets
Goal
Jan
63.6
Feb
67.1
Mar
83.6
Apr
66.9
May
67.0
Jun
85.2
Jul
68.9
Aug
69.2
Sep
86.1
Oct
70.1
Nov
65.3
Dec
77.0
YTD Actual
0.0
Plant Plant Scorecard
$870M
Regional 4.7% 831.0
Sales Actual 0.0
Non-North American Dean & Goal 3.2 3.2 4.0 3.0 3.0 3.7 3.5 3.5 4.3 3.3 3.3 4.2 0.0
2010 Top Level 2009
Hoffman-branded Net Regional 20.0% 35.0 Breakthrough
2010 Breakthrough
Resource % to Improve Launch 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Actual
Sales $42.0M Sales Actual 0.0 Targets
Processes Point
Goal 0.3 0.3 0.4 0.4 0.4 0.5 0.7 0.7 0.9 0.8 0.8 1.0 0.0
New Product Sales Mark & Del, Dean & Goal 63.6 67.1 83.6 66.9 67.0 85.2 68.9 69.2 86.1 70.1 65.3 77.0 0.0
Sales #DIV/0! Total Net Sales of
of $7.2M Steve
$870M
Regional 4.7% 831.0
Actual 0.0
Sales Actual 0.0
Goal 0.0
Total Global OEM Non-North American Dean & Goal 3.2 3.2 4.0 3.0 3.0 3.7 3.5 3.5 4.3 3.3 3.3 4.2 0.0
Walter #DIV/0!
Sales of $XXX.X Hoffman-branded Net Regional 20.0% 35.0
Actual 0.0
Sales $42.0M Sales Actual 0.0
Branded Platform Goal 6.9 6.9 8.6 6.6 6.6 8.2 6.7 6.7 8.4 7.1 7.1 8.8 0.0
Goal 0.3 0.3 0.4 0.4 0.4 0.5 0.7 0.7 0.9 0.8 0.8 1.0 0.0
Sales "to" Emerging Regionals 16.0% 76.3 New Product Sales Mark &
Sales
of $7.2M Steve
#DIV/0!
Markets of $88.5M Actual 0.0
Actual 0.0
Non-Material COGS
Goal 35.8% 34.8% 32.9% 35.0% 35.1% 33.5% 34.4% 33.8% 33.1% 35.1% 35.8% 34.8% YTD Goal 0.0
Nick 3.1% 35.5% Total Global OEM
Less than 34.4%
Sales of $XXX.X
Walter #DIV/0!
Actual YTD
Actual 0.0
Goal 2.2 2.2 2.8 0.9 0.9 1.1 -0.1 -0.1 -0.2 0.2 0.2 0.4 0.0
Total Sourcing Branded Platform Goal 6.9 6.9 8.6 6.6 6.6 8.2 6.7 6.7 8.4 7.1 7.1 8.8 0.0
Cost Joe -62.3% 27.6
Savings of $10.4M Sales "to" Emerging Regionals 16.0% 76.3
Actual 0.0
Markets of $88.5M Actual 0.0
Goal 2.6 2.6 2.8 2.6 2.6 2.8 2.6 2.5 2.8 2.6 2.6 2.8 0.0
G&A Spending of Goal 35.8% 34.8% 32.9% 35.0% 35.1% 33.5% 34.4% 33.8% 33.1% 35.1% 35.8% 34.8% YTD
John 0.3% 32.1 Non-Material COGS
$32.0M or less
Less than 34.4%
Nick 3.1% 35.5%
Actual 0.0
Actual YTD
Goal 16.3% 16.8% 16.7% 17.2% 17.5% 17.8% 18.1% 18.4% 18.3% 18.6% 18.4% 18.2% Goal
Achieve After-tax Goal 2.2 2.2 2.8 0.9 0.9 1.1 -0.1 -0.1 -0.2 0.2 0.2 0.4 0.0
ROIC John 19.0% 15.3% Total Sourcing
ROIC of 18.2% Cost
Savings of $10.4M
Joe -62.3% 27.6
Actual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual
Actual 0.0
Goal 8.9 -0.1 3.3 8.5 8.0 0.5 13.4 6.0 2.1 12.4 15.5 11.4 0.0
Achieve $89.8M in Goal 2.6 2.6 2.8 2.6 2.6 2.8 2.6 2.5 2.8 2.6 2.6 2.8 0.0
John -22.2% 115.4 G&A Spending of
Free Cash
$32.0M or less
John 0.3% 32.1
Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Actual 0.0
Cash
Goal 54.0 53.8 53.7 53.5 53.3 53.1 52.9 52.7 52.6 52.4 52.2 52.0 Goal
Quarterly DOH from Goal 16.3% 16.8% 16.7% 17.2% 17.5% 17.8% 18.1% 18.4% 18.3% 18.6% 18.4% 18.2% Goal
Nick 4.2% 54.2 Achieve After-tax
54.2 to 52 ROIC
ROIC of 18.2%
John 19.0% 15.3%
Actual 0.0 0.0 Actual
Actual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual
Quality: Reduce Goal 4,679 4,608 4,538 4,467 4,396 4,325 4,254 4,183 4,113 4,042 3,971 3,900 Goal
Goal 8.9 -0.1 3.3 8.5 8.0 0.5 13.4 6.0 2.1 12.4 15.5 11.4 0.0
External PPM's to Nick 18% 4,750 Achieve $89.8M in
Free Cash
John -22.2% 115.4
3,900 Actual - - Actual
Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Customer First
Cash
Improve Non- Goal Goal
81.8% 82.7% 83.5% 84.3% 85.2% 86.0% 86.8% 87.7% 88.5% 89.3% 90.2% 91.0% Goal 54.0 53.8 53.7 53.5 53.3 53.1 52.9 52.7 52.6 52.4 52.2 52.0 Goal
Standard DRA to Nick 12.3% 81.0% Quarterly DOH from
54.2 to 52
Nick 4.2% 54.2
91% Actual 0% 0% Actual
Actual 0.0 0.0 Actual
Quality: Reduce Goal 4,679 4,608 4,538 4,467 4,396 4,325 4,254 4,183 4,113 4,042 3,971 3,900 Goal
External PPM's to Nick 18% 4,750
3,900 Actual - - Actual
Customer First
Improve Non- Goal Goal
81.8% 82.7% 83.5% 84.3% 85.2% 86.0% 86.8% 87.7% 88.5% 89.3% 90.2% 91.0%
Standard DRA to Nick 12.3% 81.0%
91% Actual 0% 0% Actual
Thank You!
PENTAIR
STRATEGY DEPLOYMENT TOOL – BOWLING CHART
• If performance is not
progressing as planned Root
Cause must be understood and
Counter Measures developed.
Manage monthly.
Improve
– New Capabilitites
Project Excelerate Launched
$200M in acquisition closure
Lamps - Engineering
Brazil > 30% Growth
Fowler - Operations
Humbert - Finance
Ruzynski - Supply
Inventory <$80M
3 Year GBU
4. Measurement of the
Stirpe - EMEA
Breakthrough
Objectives
process effectiveness
X 1. $1.4B in 2014 (Top Line Organic Sales)
Resources to Deploy
X 2. ROS of 21.2% in 2015 5. Accountability
X
X
X 1.
3. Achieve After-Tax ROIC of 30.0% or higher by 2015
4. Acquisitions of $600MM completed by end of 2015 P Primary S Secondary
X X 5. 50% of Revenue outside of NA by 2015 Responsibility Responsibility