Enterprise Strategic Analysis for Transformation (ESAT)

LAI's Enterprise Strategic Analysis for Transformation (ESAT) methodology is an integrated, analytical framework for diagnosing and improving overall enterprise performance. ESAT methodology is designed to optimize the enterprise value stream as a critical element in formulating a strategic business plan and transforming to a lean enterprise.

 ESAT Overview
Available to the public.

 Enterprise Strategic Analysis and Transformation (ESAT) Facilitator Guide
Available to the public.

 Enterprise Strategic Analysis and Transformation (ESAT) Facilitator Guide
Available to the public.

ESAT methodology provides enterprise executives with a management tool that will help them:

• identify barriers to the creation and delivery of value to each stakeholder;
• specify a vision of the future lean enterprise;
• determine significant gaps between current and future states; and
• prioritize opportunities for eliminating waste and increasing value creation and delivery for the maximum benefit of the total enterprise.

The primary benefits and distinguishing features of ESAT methodology are that it:

• focuses, at the total enterprise level, on enterprise-wide processes rather than within individual functions, programs, or tasks;
• provides a cohesive enterprise diagnosis methodology that exposes sources of waste and identifies impediments and barriers to value delivery among functions and processes;
• considers the needs and values of all stakeholders;
• provides an analysis to connect stakeholder values, strategic objectives, enterprise processes, and metrics;
• identifies process interfaces, disconnects, and delays;
• provides a structure for creating a shared vision for the enterprise; and
• identifies improvement opportunities that will benefit the entire enterprise.

ESAT in Context

Organizations operate in competitive environments in which change is the only certainty. The turbulence created by mergers, acquisitions, and divestitures has created an organizational model of often impenetrable functional silos. The challenges of globalization, schedule compression, cost constraints, time-to-market pressures, capability differentials in the supplier base, growing shortages of human capital, and pressures from stockholders all require organizations to take a more holistic approach to transformation. LAI's ESAT methodology provides a means for a senior leadership team to understand their enterprise, create an actionable vision for the future, plan the transformation, and govern the execution.

ESAT Methodology

Enterprise Strategic Analysis and Transformation (ESAT) methodology, presented below in Figure 2, serves as an integrated, analytical framework for diagnosing and improving overall enterprise performance. ESAT emphasizes understanding enterprise value streams, the value flow between key stakeholders and the enterprise, and interaction both within and across the enterprise, which enables the identification of both enterprise wastes and opportunities for improvement. Using the quantitative and qualitative data gathered as part of executing the ESAT, an enterprise leadership team can create a future state vision, an actionable transformation plan, and a governance structure to support and drive enterprise transformation. During ESAT execution the senior leadership team also creates an all-important shared mental model that ensures sustained leadership buy-in for the long transformation journey ahead.

ESAT in Action

ESAT methodology is very situational-dependent and requires the use of an experienced ESAT coach and facilitators. An effective ESAT requires the engagement of the enterprise leadership team and the use of a certified and trained ESAT team. The ESAT team works with the organization's leadership team during a series of three workshop as depicted in Figure 3 below.

Every ESAT engagement is situational and unique but serves as a planning guideline for deploying the methodology as noted in Figure 4 below.

ESAT Event Fees

An ESAT event is organized and led by an ESAT Coach and at least two ESAT facilitators (three preferred). There are two ways an organization can request an ESAT event: (1) request support from the LAI team as a transformation event and (2) request support from a certified ESAT Coach. Pricing for each of these methods is dependent on the situation and the ESAT provider.

In general a LAI conducted ESAT will be organized by the LAI Transformation Director using a certified ESAT Coach and qualified ESAT facilitators. LAI will bill the organization or establish a contract order with a government organization for the ESAT event expenses.

If an organization wishes to work directly with a certified ESAT Coach, that organization will contract with that ESAT Coach separately. The ESAT Coach will be responsible for making all the arrangements, engaging qualified ESAT facilitators and supporting the ESAT engagement from the start of the methodology to its conclusion. LAI members have contributed payment to support the development of this product. The ESAT Coach will be obligated for reimbursing LAI on a per ESAT event fee basis designed to compensate the consortium for the development of the ESAT methodology. This ESAT event fee is established below.

ESAT Event Fee (paid by ESAT Coach to LAI)

If you are interested in conducting an ESAT Event as an LAI Transformation Event, you should contact the LAI Transformation Director or the LAI Program Manager as listed below:

ESAT Certification

The Enterprise Strategic Analysis for Transformation (ESAT) methodology was developed to apply practical experience after ten years of studying enterprise level transformation efforts and conducting enterprise level transformation efforts. The ESAT methodology is an integrated, analytical framework for diagnosing and improving overall enterprise performance. The benefits of following the ESAT methodology is that it:

• focuses on enterprise-wide processes
• provides a cohesive method for diagnosing an enterprise to expose sources of waste and barriers to value delivery
• gives consideration to the needs and values of all enterprise stakeholders
• identifies process interfaces, disconnects and delays
• establishes an enterprise vision for the future, and
• identifies improvement opportunities that will lead the enterprise to its future vision

The methodology is relatively straight-forward and well documented; however, it requires great facilitation skill, enterprise level knowledge, and executive presence to successfully accomplish. This certification process ensures that the ESAT methodology is deployed effectively for best value to users. It has been learned that many people can follow the ESAT steps but only properly trained and experienced ESAT Coaches can lead an enterprise leadership team successfully through the entire process to net the beneficial outcomes for the enterprise. Similarly, a robust methodology requires ESAT Master Coaches to foster development, ensure methodology refinement and study ESAT results.

Certification Privileges

The privileges of the certification are:

• Permission to use the copyrighted materials (ESAT Guide, ESAT Facilitator Guide, Enterprise Transition to Lean Roadmap, ESAT Knowledge Exchange Event materials for training, etc.)
• Listed on the LAI web site and other media as certified ESAT Coaches to conduct MIT and LAI approved Enterprise Transformation using the ESAT methodology
• Be able to market to others that an MIT certified provider has the most effective method and up-to-date knowledge on the best practices on assisting with this valuable enterprise transformation methodology
• Ability to run ESAT events at ESAT Coaches own organization without incurring transformation event costs from LAI at MIT
• Ability to run ESAT events at other organizations with a per event reimbursement fee payable to LAI at MIT.

Certification Eligibility

The concepts and knowledge that created this ESAT methodology derived from over ten years of research conducted by the Lean Advancement Initiative (LAI). LAI has led the world in its study and exploration of enterprise level transformation and enterprise architecting concepts. Members of LAI benefit from this enterprise level perspective and are in the best position to take these concepts to other organizations. Accordingly, ESAT certification eligibility can be afforded to any individual that is from:

• a member of the Lean Advancement Initiative (LAI)
• an organizational affiliate with LAI
• a consulting affiliate with LAI

Certification Prerequisite

LAI periodically conducts an Enterprise Strategic Analysis for Transformation Knowledge Exchange Event as the means to convey both knowledge of the ESAT methodology and the rationale for each of the methodology steps. Only applicants that have attended this knowledge exchange event will be considered for certification.

Certification Process

The process to obtain certification as an ESAT Coach is a multiple step process that involves participation, mentoring and demonstrated practical application of the ESAT methodology. There are three levels of ESAT certification:

• Level I - Able to perform the mechanics of the ESAT methodology
• Level II - Able to facilitate an ESAT event
• Level III - Able to lead an ESAT event as the ESAT Coach

Step 1
Apply to be a candidate for certification by submitting the attached form to LAI. The application will be reviewed and once accepted the applicant will proceed to the next step.

Step 2
Be a member of an ESAT facilitation team to observe/assist with an ESAT from ESAT step 0 to 8 to thoroughly understand the mechanics of setting up and running an ESAT event. During this step the applicant would not facilitate in any manner but observe and be a helper for other facilitators and ESAT Coaches. At the conclusion of this experience the applicant will obtain a Level I ESAT certification that qualifies the applicant to proceed to the next step.

Step 3
Co-facilitate an ESAT from ESAT step 0 to 8 as an active part of the facilitator team working with an ESAT coach. With the successful completion of this step and the recommendation of the ESAT Coach the applicant will be certified at Level II ESAT certification. At this point the applicant is prepared to run their own ESAT engagement under the mentorship of an ESAT Master Coach. This can be accomplished by coordinating with LAI to schedule an ESAT event in which an ESAT Master Coach can participate.

Step 4
Conduct an ESAT as a coach under the mentorship of an ESAT Master Coach. The person would be responsible for the entire event and would be evaluated by an ESAT Master Coach. At the end of a successful ESAT event, the individual may be certified to ESAT Level III by the ESAT Master Coach. Certification is good for three years from the point of certification.

ESAT Coaches Workshop

Periodic workshops approximately once every two years will be scheduled to foster ESAT Coach feedback and methodology refinement. These events are important community feedback and knowledge sharing opportunities.

Re-certification Process

Since the ESAT Methodology inherently has a large potential for additional learning, it is important for an ESAT Coach to stay current with latest ESAT developments and facilitation guidelines. An applicant that wishes to be re-certified may make application to LAI. Considerations by the ESAT Certification Board will be number of events that an applicant has conducted, ESAT customer feedback of the coach, and peer review by other ESAT coaches and master coaches. If certification has expired, the person automatically reverts to a Level II ESAT certification. To regain Level III certification an individual must re-certify as an ESAT Coach by again going through Step 4 noted above.

Fees

LAI incurs costs to support a certification program. These fees reimburse the LAI Program for its expenses.

Certification Fees

* Waived for LAI Members (does not include LAI Organizational or Consulting Affiliates)

ESAT Ownership and Terms of Use

ESAT is the property of the Massachusetts Institute of Technology (MIT) by copyright, distributed through MIT to the Lean Aerospace Initiative member organizations. With a current consortium agreement between MIT and any LAI member, permission to use, reproduce, prepare derivative works and distribute within the member organization for non-commercial purposes has already been granted. Currently, ESAT is distributed only to LAI members.

LAI’s objective is the broad dissemination and use of material from the ESAT tool within member organizations. These guidelines are intended as an aid, not a restriction, to this dissemination and use. This dissemination and use should: 1) acknowledge the Lean Advancement Initiative (LAI) at the Massachusetts Institute of Technology (MIT) as the originator of the material; 2) include any MIT copyrights or other original credits and/or restrictions on all copies made; 3) include a means for derivative work and associated materials to be shared with the product developers at MIT; and 4) be part of a process that assures quality and prevents LAI material from being used inappropriately.

All ESAT materials are copyrighted by MIT. With a current consortium agreement between MIT and any LAI member, permission to use, reproduce, prepare derivative works and distribute within the member organization for non-commercial purposes has already been granted. Below is the applicable language from the consortium agreement and government contract:

• MIT grants LAI Members an irrevocable, royalty-free, non-transferable, non-exclusive right and license to use, reproduce, prepare derivative works, display, distribute and perform all such copyrightable materials published or otherwise delivered to the Member by MIT, for the Member’s internal, non-commercial use, solely within the Member’s own organization and not for the purpose of deriving any commercial benefit therefrom. Further, the Member agrees that it shall not permit non-employee consultants, independent contractors or other individuals who are not employees of the Member to access Lean Advancement Initiative copyrightable works or Member derivatives thereof, unless such individuals have first signed a nondisclosure agreement and unless such individuals have also signed an agreement that any derivative of such works that such individuals may develop or create, shall be assigned to and become the property of the Member. (From the LAI consortium agreement Article 9).
• MIT grants the U.S. Government a royalty-free, world-wide, non-exclusive, irrevocable license to use, modify, reproduce, release, perform, display or disclose any data for Government purposes.
• All others are prohibited from using this material for any purpose unless explicit license is otherwise granted.

When LAI material makes up a substantial fraction of the material in a workshop or other event, LAI should be credited in the event description. Under most circumstances, use of ESAT methodology constitutes a “substantial fraction” and requires such credit.[1] The methodology should be referred to as the LAI Enterprise Strategic Analysis for Tranformation (ESAT). Some mention of the origins of the methodology and its relation to the LAI Transition-To-Lean (TTL) Roadmap also would be appropriate. Care should be taken, however, to not identify an entire seminar or learning event with only partial LAI content as an LAI product. In particular, use of the LAI or MIT brand in advertising or publicity is inappropriate.[2]

As a learning community, LAI values the sharing of material to LAI at MIT and within LAI member companies. LAI at MIT encourages the sharing of derivative materials, facilitation methods and other content developed for new settings/uses at least with the LAI at MIT and possibly to other LAI member companies. The learning community value of LAI is maximized when the greater LAI consortium, including sponsors and member companies, are made aware of the success of this dissemination. To this end, it is desired that the LAI consortium be kept informed as to the nature, extent, and success of disseminated materials. It is desired that this reporting include participation in LAI workshops, plenary conferences, etc.

[1] Any derivative or new works created by the Member that contain, in whole or in part, material copyrighted by MIT. shall give full attribution to MIT for the MIT copyrighted material. The attribution shall be affixed to all copies or portions thereof in such manner and location as to give reasonable notice of MIT's claim of copyright and shall be in the following format: "Copyright xxxx-xxxx [INSERT YEARS] Massachusetts Institute of Technology. All rights reserved." or "© xxxx-xxxx [INSERT YEARS] M.I.T. All Rights Reserved."

[2] http://web.mit.edu/policies/12.3.html