Slide 1

Operational Excellence at Edward Jones

Deploying Operational Excellence Through Organized Movement

Mark Waight Director Operational Excellence

Slide 2

Detection and control of quality problems

Carried out at various stages in the production process

Statistical Quality Control was the tool of choice

Quality as Prevention

The Evolution of Quality Management

Quality as Inspection

The solve was for reduction of things gone wrong

Focus was on output of products

Re-performance was the tool of choice

Prior to 1940's 1940's – 1970's 1980's – 2000's

Quality as Design

Integration of quality throughout the organization

Focus was on meeting customer expectations

Lean and Six Sigma were the tools of choice

Today

Quality as a Movement

The solve for ideal experience of key stakeholders

Focus is on creating synchronized movement

Systems Thinking is the tool of choice

Slide 3

About Edward Jones

3

• Headquartered in Saint Louis Missouri • Other Support services in Tempe,

Arizona and Mississauga, Canada

• Financial Advising Brokerage Firm with over 38,000 employees

• Branch offices throughout the United States and Canada (14000 and growing)

Fortune Magazine: "100 Best Companies to Work For"For the 15th year, now ranked No. 4 overall and No. 2 in the large-company category.

Slide 4

Why Systems Thinking?

"The ability to learn faster than our competitors may be our only sustainable competitive advantage."

Peter Senge – MIT Professor and Author of The Fifth Discipline

Slide 5

What is our obstacle?

"People are experience-rich and theory-poor. People who are busy doing things don’t have opportunities to collect and organize their experiences and make sense of them."

Malcolm Gladwell Author of Outliers, Blink, Tipping Point, etc.

Slide 6

Current

Why are people experienced rich and theory poor?

JAN-2006

SEM-000

P P P+ =People Process Performanc

e

5 5 10

4 8

3 3 6

2 2 5

1 1 2

PerfectionWorld Class Service

Effort Maturity Results

Below

Needs Improv

e

Meets

Exceeds

Outstand

Ad-hoc

Repeatable

Standardized

Predictable

Optimized

4

Slide 7

What would the journey look like?

To insert science into the art of process management in order to achieve systems thinking across the firm.Vision

Strategy Build a network of change agents

Leverage the community to

tackle "big solves"

First… Then…

Slide 8

Organized Movement

What would we need for the journey?

Execution

Adoption & Integration

Knowledge Build

Knowledge Build: Classroom Technical Training Coaching & Mentoring Best Practice Sharing

Adoption & Integration: Engagement Progression Active Advocacy & Sustainability Systems Thinking

Execution: Strategic Alignment Agility Increased ROI

Our OE Pillars

Slide 9

Four Levels of OE Deployment Maturity

Proof of Concept

Level One

Awareness Capacity Build

Program Management

Full Deployment

Optimization

Level Two

Level Three

Level Four

More than just Process Improvement

More Capacity Build

Organized Movement

Systems Thinking

Building the Network is at the Divisional Level

OE

OEDiv

OE Div

Div

2-3 Months 3-6 Months 12-15 Months 3-5 Years

Slide 10

Strategic, Planning & Analysis System

Change Implementation

System

Talent Management

System

Core Operating System

Performance Measurement &

Management System

C l i e n t a n d

F i n a n c i a lG o a l s

Intake Prioritization Planning Execution Transition

Recruit Develop Perform Reward

Need Assess Resolve Log

Create Deploy Review

Set Goals Monitor Results Improve

Key Integrated System Framework

So what does Systems Thinking look like?

Slide 11

Systems Thinking is the Key to…

Reactive

Predictive

Fulfillment

Value Creation

Paradigm Shift

Responsive-Based

Solutions-Based

Organized Movement

Slide 12

Best Practices

1. Movement is always at the heart of the solve2. Cultural Alignment is Critical to OE Adoption3. Inserting the Discipline into the DNA of the Organization4. Developing A Network of Organic Change Agents 5. Learning Communities, Create Learning Cultures6. Each Solve Must Reconcile to Stakeholder Critical Needs 7. Not Vertical Thinking vs Horizontal Thinking, but both8. Right Questions vs Right Answers9. Knowing the Paradigm Shifts needed10.Systems Thinking is our desired mode of thought