Table of Contents

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

SECTION 2: EBE Application Requirements

Criteria Response Guidelines......................................................... 2.1
Application Process and Requirements .......................................... 2.4
Application Report Instructions....................................................... 2.5
Integrated Business and Plant Assessment Process (IAP) ............. 2.7
Plant and Function Certification Process and Requirements .......... 2.8

SECTION 3: Plant Application Criteria

Changes from the 2013/2014 Criteria ............................................. 3.1
Criteria for Performance Excellence – Item Listing ......................... 3.2
Organizational Profile......................................................................3.3
2016-2018 Criteria for Performance Excellence ............................. 3.6

SECTION 4: Support Materials

Prescribed EBS/EBE Measures ......................................................4.1
Eaton Excellence Indicators ............................................................4.4
Glossary of Key Terms....................................................................4.5
EBE Scoring System .....................................................................4.13
Item Format Guidelines .................................................................4.15
Evaluation Guidelines ...................................................................4.16
Steps Toward Mature Processes ..................................................4.18

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 Section 1 | What is the EBE Assessment?

What is the EBE Assessment?

The Eaton Business Excellence (EBE) assessment is the process by ● The EBE Application process is a more detailed process used
which Eaton Corporation evaluates how well the Eaton Business to assess Eaton Businesses and large, multi-site functional
System is being deployed at each of its businesses, plants, and organizations. The Application process requires preparation
functional organizations. and submission of a 50-page application document responsive
to the EBE Business Assessment Guidelines. This application
The EBE Assessment Criteria are based upon the Baldrige National
is thoroughly evaluated by a team of EBE Examiners prior to an
Quality Program’s Criteria for Performance Excellence. For 25
on-site visit. The purpose of an Application site visit is not to
years, Eaton Corporation has used the Baldrige Criteria as the
evaluate all of the applicant’s business processes which should
framework for internal assessments to stay abreast of ever-
be described in the application, but to clarify any omissions or
increasing competition and to improve performance. In today’s
weaknesses, and to verify the strengths identified from the
business environment, the Criteria help organizations respond to the
application. (See Section 2: Application Process and
rapid pace of innovation, to a focus on core competencies and to the
Requirements.)
challenges of outsourcing and supply chain management. The
Criteria are used to assess performance on a wide range of key EBE assessments are conducted using the appropriate version of
business indicators; customer product and service, financial, the EBE Criteria and all examiners are trained to participate in both
workforce, operational, and leadership. Use of the Criteria helps assessment processes.
align resources; improve communication, productivity and
effectiveness; and achieve strategic goals.
An EBE assessment represents an evaluation of an entire
organization, measuring business results as well as the
business processes that ultimately lead to those results
EBE assessments are conducted by a team of trained EBE
Examiners which is carefully constructed to balance functional,
market, business process and EBE experience to assure a fair and
comprehensive evaluation. Unlike a “Quality System Audit,” such as
that required for ISO-9000 registration, the EBE assessment is not
conducted against a checklist of right and wrong answers. The EBE
Examiners first identify the important internal and external factors
that influence how the organization operates and the key challenges
it faces. This information is obtained both verbally and in writing from
the assessed organization and its parents. The examiners then
evaluate the processes the organization uses to address key areas
of business performance and determine how effective and
appropriate these processes are in the context of the specific central
purpose and challenges of the organization. In this way, the EBE
Criteria can be used to assess Eaton’s plants, business units and
functions.
The EBE Assessment Criteria supplement the Baldrige Criteria by
inclusion of Eaton-specific processes tools and measures that are
required elements of the Eaton Business System. These Eaton
requirements are included in the Item descriptions in this Guideline
document.
Two different processes are used to conduct evaluations: 1) The
EBE Certification process and 2) The EBE Application Process.
● The EBE Certification process is the basic assessment that is
required by Eaton Senior Management of all new operational
facilities and specified Corporate functional organizations.
Assessed organizations prepare a five-page “Organizational
Profile” which the examiner team reads prior to a highly
structured three-day on-site evaluation of the organization. No
lengthy application document is required. This assessment
focuses on determining if effective and appropriate processes
are in place that address the basic purpose of the various Items
in the EBE Criteria. Eligible functional organizations must be
re-evaluated every two or three years depending upon the
performance achieved in previous assessments. (See Section
2: Certification Process and Requirements.)

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Section 1 | EBS – The Power of One Eaton

EBS – The Power of One Eaton

EBS Foundational Components
The Criteria are built upon the foundational components of EBS:
● Vision
● Mission
● Values
● Integrated Operating Company
● Goals
● Global Ethics and Compliance
● Eaton Policies
These foundational components, described below and in detail
in JOE, are embedded beliefs and behaviors found in Eaton. They
are the foundation for integrating key business requirements within a
results-oriented framework that creates a basis for action and
feedback.
To become an integrated operating company, Eaton is building
value in each of its individual businesses while leveraging the Vision
diversity and scale of the entire enterprise. The Eaton Business
System (EBS) is our framework for managing Eaton’s worldwide To be the most admired company in our markets. Vision is
operations as one integrated operating company in order to exceed measured by:
the rising performance expectations of all our stake-holders. By
● Customers say: “We want to do more business with Eaton.”
providing a common philosophy, set of values management tools
and measures, the EBS lays the foundation for achieving operational ● Shareholders say: “Eaton is one of my best investments.”
excellence. Together, its interrelated elements positively impact
Eaton’s results through improvements in the launching of new ● Employees say: “I am proud to be part of the Eaton team.”
products, working capital, cost savings and operating margins. The ● Suppliers say: “Eaton is one of my most valued customers.”
EBS focuses on improving results not procedures—by encouraging
business units and plants to use innovative approaches for meeting
requirements and achieving objectives. The most effective
Mission
approaches are evaluated and selected as transferable practices To be our customers’ best supplier, providing distinctive and highly
and redeployed throughout the company to harness the power of valued products, services and solutions.
one Eaton.
The Eaton Business System frees up our time by providing us with Values (including the Eaton Philosophy)
proven practices—thereby allowing us to focus upon becoming ● Customer Orientation: We make our customers the focus
world-class executors, and giving us time to focus upon growing our of everything we do.
businesses.
● People: We recognize our people as our most valued
The Eaton Business System is comprised of the following elements: resource.
● Foundation ● Trust: We have confidence in the reliability of others to do
● Planning the right thing.

● Growth ● Respect: We treat each other with respect and

consideration.
● Operational Excellence
● Dignity: We honor the pride and self-esteem of others.
● Functional Excellence
● Integrity: We are honest and ethical.
● Assessment
● Learning

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 Section 1 | EBS – The Power of One Eaton

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.

Integrated Operating Company

● Operates as a single enterprise
● Deploys an enterprise-wide business strategy for
competitive advantage
● Develops overall philosophy, principles and goals centrally
and tailors them for local needs to optimize the entire
enterprise
● Success is measured through the sum of the global returns
● Uses common systems and support processes

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

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Section 1 | Criteria Purpose and Framework

Criteria Purpose and Framework

Criteria Purposes Criteria for Performance Excellence
The Criteria are the basis for conducting organizational self- Framework
assessments, and for giving feedback to applicants. In addition, the
Criteria have three important roles in strengthening Eaton’s The requirements of the Criteria for Performance Excellence are
competitiveness by: embodied in seven Categories as follows:

● Helping improve organizational performance practices, 1 Leadership

capabilities, and results by the delivery of ever-improving 2 Strategic Planning
value to customers and stakeholders, contributing to
organizational sustainability 3 Customer and Market Focus

● 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

Criteria for Performance Excellence Framework: A Systems Perspective

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 Section 1 | Criteria Purpose and Framework

Figure 1.1 provides the framework connecting and integrating the

Categories. This framework has the following basic elements: Areas to Address
Items consist of one or more Areas to Address (Areas).
Organizational Profile Organizations should address their responses to the specific
requirements of these Areas.
Your Organizational Profile sets the context for the way your
organization operates. Your environment, key working relationships,
and strategic situation – including competitive environment, strategic
challenges and advantages, and performance improvement system
- serve as an overarching guide for your organizational performance
management system.

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).

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Section 1 | Key Characteristics of the Criteria

Key Characteristics of the Criteria

1. The Criteria focus on business results. Eaton Corporation has leveraged the adaptability of the Baldrige
Criteria to create the Eaton Business Excellence Assessment
The Criteria focus on the key areas of organizational performance
Guidelines. The EBE “Criteria” have been created by starting with
given below.
the Baldrige Criteria and specifying where prescriptive EBS
Organizational performance areas: components represent appropriate responses to the Criteria for
Eaton organizations. The Eaton Business System does not include a
(1) Product and service outcomes and customer-focused prescriptive process for all Areas to Address in the EBE Criteria.
outcomes This is recognition that every Eaton Business, Plant, and Function
(2) Market outcomes has a need for some tailored or unique processes to address the
specific requirements of its customers, products, services, and local
(3) Financial outcomes culture. The Eaton Business Excellence Assessment processes
(4) Workforce outcomes therefore serve to assess the effective deployment of the EBS, how
well local management teams address any needs truly unique to
(5) Process effectiveness outcomes, including key internal their organization, and how well all of these processes are integrated
operational performance results and aligned.

3. The Criteria support a systems perspective to

(6) Leadership outcomes and public responsibility results
The use of this composite of measures is intended to ensure that
strategies are balanced—that they do not inappropriately trade off
among important stakeholders, objectives, or short- and longer-term
goals.
2. The Criteria are non-prescriptive and
adaptable.
The Criteria are made up of results-oriented requirements. However,
the Criteria do not prescribe:
● How your organization should be structured; or
● That your organization should or should not have
departments for planning, ethics, quality or other functions;
● That different units in your organization should be
managed in the same way.
These factors differ among organizations, and they are likely to
change as needs and strategies evolve.
The Baldrige Criteria are non-prescriptive for the following reasons:
(1) The focus is on results, not on procedures, tools, or
organizational structure. Organizations are encouraged to
develop and demonstrate creative, adaptive, and flexible
approaches for meeting requirements. Non-prescriptive
requirements are intended to foster incremental and major
(“breakthrough”) improvements, as well as meaningful change
through innovation.
(2) The selection of tools, techniques, systems, and organizational
structure usually depends on factors such as business type and
size, organizational relationships, your organization’s stage of
development, and capabilities and responsibilities of your
workforce.
maintaining organization-wide goal alignment.
The systems perspective to goal alignment is embedded in the
integrated structure of the EBS Fundamental Components, the
Organizational Profile, the Criteria, the Evaluation Guidelines, and
the results-oriented, cause-effect linkages among the Criteria Items.
Alignment in the Criteria is built around connecting and reinforcing
measures derived from your organization’s processes and strategy.
These measures tie directly to customer value and to overall
performance. The use of measures thus channels different activities
in consistent directions with less need for detailed procedures,
centralized decision making, or overly complex process
management. Measures thereby serve both as a communications
tool and a basis for deploying consistent overall performance
requirements. Such alignment ensures consistency of purpose while
also supporting agility, innovation, and decentralized decision
making.
A systems perspective to goal alignment, particularly when strategy
and goals change over time, requires dynamic linkages among
Criteria Items. In the Criteria, action-oriented cycles of learning take
place via feedback between processes and results.
The learning cycles have four, clearly defined stages:
(1) Planning, including design of processes, selection of measures,
and deployment of requirements
(2) Executing plans
(3) Assessing progress and capturing new knowledge, including
seeking opportunities for innovation (learning)
(4) Revising plans based upon assessment findings, harmonizing
processes and work unit operations, and selection better
measures (integration)

(3) A focus on common requirements, rather than on common

procedures, fosters understanding, communication, sharing,
ALIGNMENT, and integration while supporting innovation and
diversity in approaches.

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 Section 1 | Key Characteristics of the Criteria

4. The Criteria support goal-based diagnosis.

The Criteria and the Evaluation Guidelines make up a two-part
diagnostic (assessment) system. The Criteria are a set of 18
performance-oriented requirements. The Evaluation Guidelines spell
out the assessment dimensions—Process and Results—and the key
factors used to assess each dimension. An assessment thus
provides a profile of strengths and opportunities for improvement
relative to the 18 performance-oriented requirements and relative to
process and performance maturing as determined by the Evaluation
Guidelines. In this way, assessment leads to actions that contribute
to performance improvement in all areas, as described above. This
diagnostic assessment is a useful management tool that goes
beyond most performance reviews and is applicable to a wide range
of strategies and management systems and types of organizations.

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Section 1 | Eaton Business Excellence Recognition

Eaton Business Excellence Recognition

Eaton Business Excellence Award Eaton Best New Unit
The Eaton Business Excellence Award is the most prestigious The purpose of this designation is to recognize those plants,
internal recognition an Eaton Business or large, multi-site functional functions or businesses that have completed their first EBE
organization can receive. Candidates for the EBE Award are Assessment, and have achieved exemplary performance. This is
selected from the Businesses and large functional organizations that indicative of strong efforts to implement components of EBS. This
submit 50-page EBE Applications during a calendar year and award also recognizes the fact that new entrants may not have
complete the assessment requirements of the EBE Application reached a level of maturity as compared with organizations with
Process. Eaton Plants and small Functions that are assessed by substantial EBE experience to achieve award level recognition.
way of the EBE Certification Process are not eligible to be Plants, functions or businesses that have joined Eaton via
considered for the EBE Award. acquisition or internal start-up, and have completed their first EBE
Assessment will be eligible for consideration for an award.
EBEA assessments of all types occur throughout the year. Award
Organizations that are created from internal reorganization but have
candidates are identified initially based upon the overall EBE
previously been assessed as part of another organization are not
maturity determined at the conclusion of their assessment.
eligible.
Generally, organizations that achieve overall EBE performance
equal to or greater than those achieved by the prior year’s EBE The Board of EBE Senor Examiners will make Eaton Best New Plant
Finalists will be considered candidates for the Award. recommendations to the SLC at the same time as the EBE Award
recommendations are forwarded.
The Award assessment process occurs from January through
November each year. Candidates assessed earlier in the year will
be subject to an assessment update in October. This will be
performed by the Senior Examiner that led the initial assessment
who will review an update to the complete set of Category Seven
“Business Results.” A summary of these updated findings, as well as
those from any assessments occurring during September and
October will be presented and discussed at a Senior Examiner
meeting in the fourth quarter. The Board of EBE Senior Examiners
will use this information to make its recommendations for EBE
Award recipients and Finalists. The Board of Senior Examiners’
recommendations will be presented to the Senior Leadership
Council (SLC). The SLC will determine EBE Award recipients and
Finalists and results will be announced following their decision.
Award Ceremonies – The Chief Executive Officer of Eaton
Corporation traditionally presents the Awards individually at special
ceremonies arranged by each winner. These ceremonies will take
place during January and February of the following year.

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Criteria Response Guidelines
The guidelines given in this section are offered to assist Criteria
users in responding most effectively to the requirements of the
18 Criteria Items. Writing an application for the EBE assessment
involves responding to these requirements in 50 or fewer pages.
The guidelines are presented in three parts:
(1) General Guidelines regarding the Criteria booklet, including how
the Items are formatted
(2) Guidelines for Responding to Process Items
(3) Guidelines for Responding to Results Items
General Guidelines
1. Read the entire Criteria booklet.
The main sections of the booklet provide a full orientation to the
Criteria, including how responses are to be evaluated for self-
assessment or by Application Examiners. You should become
thoroughly familiar with the following sections:
● Criteria for Performance Excellence (Section 3)
● EBE Scoring System (Section 4)
● Glossary of Key Terms (Section 4)
● Criteria Category and Item Descriptions (Section 4)
2. Review the Item format and understand how to respond
to the Item requirements.
The Item format (see Section 4: EBE Scoring System, Item
Format Guidelines, Figure 4.1) shows the different parts of
Items, the role of each part, and where each part is placed. It is
especially important to understand the multiple requirements
contained in the Areas to Address. The Item notes are an aid to
help you understand the Areas to Address. Each Item and Area
to Address is described in greater detail in Section 4: Criteria
Category and Item Descriptions.
Each Item is classified as either Process or Results, depending
on the type of information required. See Guidelines for
Responding to Process Items and Guidelines for Responding to
Results Items in this section for details.
Item requirements are presented in question format. Some of
the requirements in the Areas to Address include multiple
questions. Responses to an Item should contain responses that
address all questions; however, each question need not be
answered separately. Responses to multiple questions within a
single Area to Address may be grouped, as appropriate to your
organization. These multiple questions serve as a guide in
understanding the full meaning of the information being
requested.
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
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Section 2 | Criteria Response Guidelines
communicate your processes and results to those reviewing
your responses.
4. Start by preparing the Organizational Profile.
The Organizational Profile is the most appropriate starting point.
The Organizational Profile is intended to help everyone to
understand what is most relevant and important to your
organization's business and its central purpose. The questions to
address in responding to the Organizational Profile are described
in greater detail in Section 3: Organizational Profile.
Guidelines for Responding to Process Items
Although the Criteria focus on key performance results, these results
by themselves offer little diagnostic value. For example, if some
results are poor or are improving at rates slower than your
competitors’ or comparable organizations, it is important to
understand why this is so and what might be done to accelerate
improvement.
The purpose of Process Items is to permit diagnosis of your
organization's most important processes—the ones that contribute
most to organizational performance improvement and contribute to
key outcomes or performance results. Diagnosis and feedback
depend heavily on the content and completeness of your Item
responses. For this reason, it is important to respond to these Items
by providing your KEY process information. Guidelines for organizing
and reviewing such information follow.
1. Understand the meaning of "HOW."
Process Items include questions that begin with the word “HOW .”
Responses should outline your key process information that
addresses APPROACH, DEPLOYMENT, LEARNING, and
INTEGRATION (see Section 4: EBE Scoring System). Responses
lacking such information, or merely providing an example, are
referred to in the Evaluation guidelines as “ANECDOTAL
information.”
2. Understand the meaning of “what.”
Two types of questions in Process Items begin with the word
“what.” The first type of question requests basic information on
key processes and how they work. Although it is helpful to
include who performs the work, merely stating who does not
permit diagnosis or feedback. The second type of question
requests information on what your key findings, plans,
objectives, goals, or measures are. These latter questions set
the context for showing ALIGNMENT and INTEGRATION in your
performance management system. For example, when you
identify key strategic objectives, your ACTION PLANS, human
resource development plans, some of your performance
measures, and some results reported in Category 7 should be
expected to relate to the stated strategic objectives.
2.1
Section 2 | Criteria Response Guidelines
3. Write and review response(s) with the following
guidelines and comments in mind.
● Show that processes are systematic.
Systematic approaches are repeatable and use data and
information to improve learning. In other words, approaches
are systematic if they build in the opportunity for evaluation,
improvement, INNOVATION, and knowledge sharing, thereby
permitting a gain in maturity.
● Show DEPLOYMENT.
DEPLOYMENT information should summarize how your
approaches are deployed in different parts of your
organization. DEPLOYMENT can be shown compactly by
using tables.
● Show examples of LEARNING.
Processes should include evaluation and improvement
cycles, as well as the potential for breakthrough change.
Process improvements should be shared with other
appropriate units of the organization to enable
organizational learning.
● Show INTEGRATION.
INTEGRATION shows ALIGNMENT and harmonization among
processes, plans, measures, actions, and results that
generate organizational effectiveness and efficiencies.
● Show focus and consistency.
There are four important considerations regarding focus and
consistency: (1) the Organizational Profile should make clear
what is important to your organization; (2) the Strategic
Planning Category, including the strategic objectives and
ACTION PLANS, should highlight areas of greatest focus and
describe how DEPLOYMENT is accomplished; (3) descriptions of
organizational-level ANALYSIS and review (Items 4.1) should
show how your organization analyzes and reviews performance
information to set priorities; and (4) the Process Management
Category should highlight processes that are key to your overall
performance. Showing focus and consistency in the Process
Items and tracking corresponding measures in the Results
Items should improve organizational performance.
4. Cross-reference when appropriate.
As much as possible, each Item response should be self-
contained. However, responses to different Items might be
mutually reinforcing. It is then appropriate to refer to the other
responses rather than to repeat information. In such cases, key
process information should be given in the Item requesting this
information. For example, workforce development should be
described in detail in Item 5.1. Discussions about workforce
development elsewhere in your application would then reference
but not repeat details given in your Item 5.1 response.
5. Use a compact format.
Applicants should make the best use of the 50 application pages
permitted. Applicants are encouraged to use flowcharts, tables,
and "bullets” to present information concisely.
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6. Refer to the Scoring Guidelines.
Considerations in the evaluation of Process Item responses
include the Criteria Item requirements and the maturity of your
approaches, breadth of DEPLOYMENT, extent of learning, and
INTEGRATION with other elements of your performance
management system, as described in the Maturity Guidelines.
Therefore, you need to consider both the Criteria and the
Evaluation guidelines.
Guidelines for Responding to Results Items
The Criteria place a major emphasis on results. The following
information, guidelines, and example relate to effective and complete
reporting of results.
1. Focus on the most critical business results.
Results reported should cover the most important requirements
for your organization’s success, highlighted in your
Organizational Profile and in the Leadership, Strategic Planning,
Customer and Market Focus, Workforce Focus and Process
Management Categories.
2. Note the meaning of the four key requirements from the
Scoring Guidelines for effective reporting of results
data:
● Performance levels that are reported on a meaningful
measurement scale
● Trends to show directions of results and rates of change
● Comparisons to show how results compare with those of
other, appropriately selected organizations
● INTEGRATION to show that all important results are included
and segmented (e.g., by important customer, workforce,
process, and product line groups).
3. Include trend data covering actual periods for tracking
trends.
No minimum period of time is specified for trend data. However,
a minimum of three historical data points generally is needed to
ascertain a trend. Trends might span five years or more for
some results. Trends should represent historic and current
performance and not rely on projected (future) performance.
Time intervals between data points should be meaningful for the
specific measure(s) reported. For important results, new data
should be included even if trends and comparisons are not yet
well established.
4. Use a compact format – graphs and tables.
Many results can be reported compactly by using graphs and
tables. Graphs and tables should be labeled for easy
interpretation. Results over time or compared with others should
be "normalized” (i.e., presented in a way such as use of ratios
that takes into account various size factors). For example,
reporting safety trends in terms of lost work days per 100
employees would be more meaningful than total lost work days
if the number of employees has varied over the time period or if
you are comparing your results to organizations differing in size.
 Section 2 | Criteria Response Guidelines

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 –
on-time delivery.
● Results are presented for several years.
● An arrow indicates that an upward trend is good for this
measure.
● Appropriate comparisons are clearly shown.
● The organization shows, using a single graph, that its three
product lines are separately tracked for on-time delivery.
6. Refer to the Evaluation guidelines.
Considerations in the evaluation of Item responses include the
Criteria Item requirements and the significance of the results
trends, actual performance levels, relevant COMPARATIVE DATA,
ALIGNMENT with important elements of your performance
management system, and the strength of the improvement
process relative to the Evaluation guidelines. Therefore, you
need to consider both the Criteria and the Evaluation guidelines.

EXAMPLE

Figure 7.1-3: On-Time Delivery Performance

2015 “world-class
level from another
industry with
similar activity
100
Division A

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

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Section 2 | Application Process and Requirements

Application Process and Requirements

The EBE Application process is a detailed process used to assess drive scoring, and they will clarify processes, DEPLOYMENT
Eaton Businesses and large, multi-site functional organizations or results they don't adequately understand from the
against all elements of the EBE Criteria. Application. There may be some Application content that is
adequately descriptive and does not require on-site follow-
Process up. The examiner team will prepare a Stage 3 Scorebook at
the conclusion of the Site Visit. At the conclusion of the
The EBE Application process requires preparation and submission of EBE Application Site Visit, the applicant will receive a
a 50-page application report that describes how the requirements of maturity band, the assessment outcome and an informal
the EBE Criteria are addressed, provides examples of the processes presentation of key Strengths and Opportunities for
described and summarizes the business results that have been Improvement. Unlike the EBE Certification Site Visit, the
obtained. In the Application process, evaluation of this document is formal Feedback Report will not be delivered at the
the primary means examiners learn of the organization’s business as Application Site Visit.
opposed to the on-site interview method employed by the
Certification process. Application process applicants receive a site
Feedback Reports – Formal Feedback Reports will be delivered
visit from the same examiners that read and assess the Application
within four weeks of the conclusion of the Application Site Visit.
Report. Unlike Certification Site Visits, on Application site visits
examiners have already learned much about the assessed operation
from the Application. The purpose of the Application Site Visit is to
verify the information in the application, and to clarify any gaps. This
two-step assessment process allows for a more in-depth evaluation
of an applicant than the certification process. This provides the detail
necessary to accurately evaluate a large, multi-site and potentially
global organization that a three-day visit to a single site would not..

Application Program Processes and Time Frames

EBE Application – Applicants must prepare and submit 12 hard
copies of the Application Report to the EBE Program Office.
Applications must be received by the Program Office in Southfield,
Michigan, USA by the specified due date per communication from the
EBE Program Office. If the original Application presents RESULTS in
Category 7 in color, then all 12 copies of the Application sent to the
Program Office must also be in color.

Stage 1: Independent Review – The Application is reviewed

independently by members of the EBE Board of
Examiners.

Stage 2: Consensus Review – The Application Report is reviewed

jointly by a team of Examiners, led by a Senior Examiner at
an Application Consensus Event (ACE Week). The
Examiner team produces a Stage 2 Scorebook that
includes the Site Visit Issues (SVIs) to be investigated by
the team during a trip to the applicant's facility (and the
plants reporting to a business applicant). Applicants will
receive a list of SVIs no later than two weeks prior to the
scheduled site visit.

Stage 3: Site Visit Review – The team of examiners that performed

the Stage 2 Consensus Review conducts an on-site
verification and clarification of the Application Report. Site
visits consist primarily of a review of pertinent records and
data and interviews with managers and employees. The
applicant should use this list of SVIs received as a guide to
focus its effort to prepare for the EBE Application Site Visit.
Unlike a Site Visit associated with the EBE Certification
process, examiners on an Application Site Visit will not
necessarily ask questions about all the processes the
criteria specify. They will verify strong processes that will

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Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2015 Eaton Corporation. All Rights Reserved.
 Section 2 | Application Report Instructions

Application Report Instructions

I. Objective
The objective of the Application is to allow the applicant to provide
sufficient information to permit a rigorous evaluation by the Board of
Examiners. Information is required on the applicant's performance
management system and on the results of its processes. All
information provided is considered confidential.
II. Content Requirements
A. Application Report–All Applicants
An application report must contain the following in the order listed:
● Front cover
● Title page
● Organization chart(s)
● 2016-2018 Application Form (downloadable from the EBE
website) including site listing and descriptors
● Organizational Profile (five pages or less)
● Glossary of Terms and/or Acronym List
● Responses Addressing All Criteria Items (50 pages or
less)
● Back cover
III. Format Requirements
Application reports and any supplemental sections, must meet the
page limits, typing, and format requirements indicated below.
A. Page Limits and Exclusions
1. The Organizational Profile for the application report is limited to
the equivalent of five single-sided pages. If the Organizational
Profile exceeds the five-page limit, the excess pages will be
counted as part of the page count for the Responses
Addressing All Criteria Items.
2. In the application report, the Responses Addressing All Criteria
Items are limited to the equivalent of 50 single-sided pages,
which must include all pictures, graphs, figures, tables, and
appendices. The responses must contain the same Category
and Item numerical designations as the 2016-2018 Criteria.
Applicants should denote the Areas to Address with letters a, b,
c, and so forth, corresponding to each Area, such as 4.2a.
3. The covers, dividers, tab separators, Table of Contents,
Organization Chart(s), Eligibility Certification Form, Application
Form, and Glossary of Terms and/or Acronyms that contain
only the specified subject material will not be counted as part of
the page limit in the application report. However, if these pages
contain any additional material, such as text, quotations,
graphs, figures, data tables, or pictures, they will be considered
part of the 50 pages of the Responses Addressing All Criteria
Items. Each page will be counted as part of the total page count
for that portion of the Application Package.
4. If the Responses Addressing All Criteria Items exceed the
50-page limit, the applicant's Official Contact Point will be asked
to identify which pages will be removed.
B. Paper size: standard 8½ by 11 inches or A4
C. Typing
1. Font Size
● Proportional spacing font of point size 10 or larger
A typical document produced in Times Roman 10 point
font will satisfy this requirement.
2. Line Spacing: Equivalent of two points of lead between lines.
Note: One point of lead equals 1/ 72 , or 0.0138 inch.
3. Font Style: Any font style may be used that meets the font size
and line spacing requirements, but Helvetica and Times Roman
or equivalent styles are preferred.
4. Type used in picture captions, graphs, figures, data tables,
and appendices also must meet the requirements for font size
and line spacing. If the table or graph is reduced from its
original size for inclusion, applicants must use larger type sizes
in preparing the original so that the reduced material in the
application report meets the font size requirements.
5. Font style and/or size need not be uniform throughout the
application report so long as all styles and sizes meet the
requirements.
D. Format
1. The number of lines per page must not exceed 60, including the
page headings. A blank line separating paragraphs is counted
as a line.
2. Margins of at least ¾ inch on the side of the page that is bound
or fastened and at least ½ inch on the opposite side of the page
are preferred.
3. Pages set up in a two-column format are preferred. Pages may
be printed on both sides. (There is a total limit of the equivalent
of 50 single-sided pages for the application and five single-
sided pages for the Organizational Profile.)
4. Text pages should have portrait orientation. Graphs, figures,
and data tables may have either portrait or landscape
orientation.
E. Numbering
The pages of the Responses Addressing All Criteria Items must be
numbered consecutively from start to finish (e.g., 1, 2, 3, …, 50).
Blank pages should not be numbered. All figures should be
numbered in sequence within each Item and Category, such as
Figure OP-1 or Figure 2.1-1.

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Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2015 Eaton Corporation. All Rights Reserved.
Section 2 | Application Report Instructions

IV. Assembly Requirements

A. All components of the application report and supplemental
section(s) must be securely fastened to prevent separation
during handling. The use of clips or binders with easily opened
pressure-sensitive clips is discouraged.
B. The use of bulky binders or similar heavy covers is
discouraged.
C. Video and audio tapes or other information aids are not
acceptable and may not be included.

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

Also, please include a CD or flash drive that contains a copy of the

application and a separate copy of the Organizational Profile.

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Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2015 Eaton Corporation. All Rights Reserved.
 Section 2 | Integrated Business and Plant Assessment Process (IAP)

Integrated Business and Plant Assessment Process (IAP)

Eaton businesses are using the EBE Integrated Business and Plant In order to achieve EBE Demonstrating, an Eaton business must
Assessment Process (IAP). All businesses are required to be achieve an overall score of 451 points, and all of its plants must
assessed every three years via the IAP process. Businesses individually meet all of their requirements for certification in effect at
prepare 50-Page EBEA Application documents (see Application the time of their EBE Certification Site Visits.
Process and Requirements in this section), which are evaluated by a
team of EBE Examiners. Following this evaluation, the plants that
report to the business are subject to an EBE Certification Site Visit.
(Plant Assessment details are provided for informational purposes
on the pages that follow.) Following assessment of all a business’
plants, the team of examiners that evaluated the business’ EBE
application will conduct a site visit at the business’ headquarters
location. Results of the plant Certification Site Visits are provided to
this team that takes plant site visit outcomes into consideration when
completing their evaluation of the business as a whole entity.
(See Figure 2.1 below depicting IAP sequence.)

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

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Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2015 Eaton Corporation. All Rights Reserved.
Section 2 | Plant and Function Certification Process and Requirements
Plant and Function Certification Process and Requirements
The following Plant Assessment details are provided for informational
purposes.
Eligibility and Purpose
The Eaton Business Excellence Certification (EBEC) process
is designed to help new operating facilities and corporate functional
organizations implement the Eaton Business Excellence criteria and
drive continuous improvement. To obtain a demonstrating maturity
level, Eaton organizations must achieve a minimum overall score of
451 points with a score of no less than 40 percent in any of the seven
categories. Eaton new plants must also meet other EBS sub-
assessment requirements in place at the time of their assessments.
The EBEC process is a streamlined assessment that does not
require a lengthy Application Report. Examiners learn of an
organization's approaches addressing the EBE Criteria, the degree
of DEPLOYMENT of those approaches, and the business results that
have been achieved, through a structured process of on-site
interviews and review of pertinent records and data. The focus of the
EBEC assessment is on determining if an organization has the basic
business processes in place necessary to drive performance
improvements. By so doing, examiners evaluate how well an
organization has deployed the Eaton Business System.
Organizational Profile
The site being assessed will prepare an Organizational Profile. An
electronic version is due to the EBE Program Office no later than ten
business days prior to the first day of the site visit. It is to be a
maximum of five pages in length.
The Organizational Profile should be a snapshot of the organization,
the key influences on how it operates and the key challenges it faces.
The Organizational Profile gives the examiners an appropriate
perspective of what is important to the assessed organization. The
Organizational Profile is found in Section 3.
Use of the Organizational Profile will help the examiners become
familiar with the organization's terminology prior to arrival on-site and
to develop a holistic view of the organization so they can better
assess INTEGRATION and process linkages.
The same font requirements are in place for the application or
certification process
• Minimum font of 10 including the type included in in any figures
or tables
Evidence
The assessed site should be prepared to discuss process
implementation and deployment to the examiner team during the site
visit. Hard copies of charts illustrating the actual levels and trends of
Key Measures required by the EBE Criteria in Category 7 and
otherwise important to the site as summarized in the Organizational
Profile should be prepared in advance and presented to the
Examiner Team upon arrival on site.
The best verification of APPROACH and DEPLOYMENT is represented
by the working documentation and tools used to run the organization
on a daily basis. It should be readily accessible, clear, concise and
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self-explanatory. The EBE assessment is interested in how an
organization actually runs. It is not necessary to produce large
volumes of unique, hard copy documentation prior to the site visit
solely for the examiner team. If the examiners want to see something
specific they will ask for it.
The primary mechanism for examiners to learn of a site’s processes
is through interviews with managers and employees. Prepared
documentation is not a substitute for knowledgeable people being
available for examiner interviews. Examiners may wish to review
certain documentation but sites should be prepared to present
specific information to examiners upon request. Due to the
compressed time frame of the Certification Site Visit, organizations
being assessed should not assume examiners will find all salient
information in hard copy documentation. Key process and
DEPLOYMENT information must be discussed with examiners during
category interviews.
Category Champions
The organization should identify one “Champion” for each of
the categories one through six prior to the site visit. Category
Champions should be knowledgeable about the site's processes that
address the CENTRAL CONCEPT of the Items in their assigned
category as well as the extent of DEPLOYMENT of the processes.
Champions need to be prepared to discuss the information regarding
“their” category to the examiners during the site visit, including
Category Seven “results” items that are related to “their” category.
For example, Category Five Champion would present results for Item
7.4 “Workforce Focused Outcomes” because Category Five addresses
“Workforce Focus.” The organization’s point of contact and the
examiner team leader should discuss and agree upon the scheduling
of Category Seven Items prior to the site visit.
The Site Visit Team
There will generally be a team of seven examiners per site visit team
including one senior examiner. If an organization has less than 100
employees, a team of five experienced examiners can complete a
site visit and deliverables in the allotted time.
Individual examiners on the team will be responsible to address
specific Categories during the site visit. These “Category Leads”
correspond to the site's “Category Champions.” Each Category Lead
will also “back-up” the Lead for another Category. The Senior
Examiner will be responsible to lead the site visit and will not be
assigned responsibility to lead any one category.
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.
Specifically, Champion and Lead assignments need to be reviewed
to eliminate schedule conflicts during category interviews. The
assignment of results Items to Category Champions and Leads must
be agreed to in advance as well.
Examiner teams are carefully constructed taking a number of factors
into consideration:
1. Functional DIVERSITY among the team members
2. Avoiding “conflicts of interest” between examiners and the
assessed sites
 Section 2 | Plant and Function Certification Process and Requirements

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.

Post Site Visit

The Site Visit If the organization has questions about the Feedback Report
In general, site visits will last three days. The first day will start with a following departure of the examiner team from the Site Visit they may
brief overview presentation by both the leader of the assessed site contact the Senior Examiner of the team for clarification of content. If
and the examiner team leader, followed by a tour. The purpose of the the assessed organization has questions regarding how to address
tour is simply to orient the examiners to the logistics of the facility. the Opportunities for Improvement identified in the Feedback Report,
The time allocated for the tour by the Senior Examiner must be those questions should be directed to trained EBEA Examiners from
strictly adhered to. The examiner team will meet amongst themselves within their parent business group.
(caucus) for thirty minutes or so following the tour, and again from If there are any questions concerning the Eaton Business Excellence
time to time throughout the site visit. After this caucus meeting, three Certification process, or the EBE Guidelines, they should be
Category Leads and their back ups will each meet for approximately addressed to the EBE Program Office at (440) 523-3751 (email
two hours with the corresponding Category Champions from the site EBEA-program-office@eaton.com).
and others the champion chooses to have present. During this two
hour time period, the participants will discuss the approaches used
which address the relevant Items in the criteria and any degree of
DEPLOYMENT of the APPROACH. Category Champions will refer the
examiners to any information sources available to verify processes
and their DEPLOYMENT. The examiners may review and assess any
materials made available at this time prior to moving on to the next
item or may choose to review the materials later. Time is of the
essence in this process and it is essential that the interview
concludes on schedule.
Category Interviews are intended to be run as question and answer
sessions led by the Category Lead examiner. Category Champions
from the organization may prepare and deliver brief presentations
summarizing the main approaches and degree of DEPLOYMENT
relevant to the Category, but any Category presentation should last
no more than ten minutes.
The team will break for lunch followed by another series of interviews
covering the other three “APPROACH and DEPLOYMENT” Categories of
the criteria. The team will conclude the day with a caucus reviewing
and sharing the findings of the day amongst themselves. In the
evening, the examiners working in pairs, will develop initial feedback
comments based upon the Category Interviews.
The following morning, interviews continue as needed. At the
conclusion of the formal interviews, the team will caucus again. Any
new issues to surface will be assigned to specific team members for
resolution. The team will then disperse and members will either
conduct “DEPLOYMENT checks” (interviews with random employees)
or will seek resolution of any remaining open questions. At the end of
the day, the team will caucus again, and continue the development of
feedback comments. During the evening of Day Two, the Category
Leads and Back-ups will jointly complete draft comments for the
categories they are responsible for.

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Section 2 | Plant and Function Certification Process and Requirements

Notes

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 Section 3 | Changes from the 2013/2014 Criteria

Changes from the 2013/2014 Criteria

The Criteria for PERFORMANCE EXCELLENCE have evolved
significantly over time to help organizations address a dynamic
environment, focus on strategy-driven PERFORMANCE, and most
recently consider the KEY decisions driving both short-term success
and long-term BUSINESS CONTINUITY. The Criteria have continually
progressed toward a comprehensive integrated systems perspective
of overall organizational PERFORMANCE management.

The most significant revisions to the 2013/2014 Criteria address an

increased focus on a Zero Incident Safety Culture.

The most significant changes in the Criteria booklet for 2016-2018

are summarized as follows:
● The Organizational Profile now specific references to internal
CUSTOMERS.

● Category 1, there is a focus on leaders’ personal actions to

create a work culture supportive of positive CUSTOMER
experiences, to act as role models to drive accountability for
ethics and compliance training and to drive a Zero Incident
Culture. Updates also include references to permits and
authorizations, as well as succession planning for SENIOR
LEADERS.

● Category 2, Strategic Planning, now includes the addressing of

organizational agility and operational flexibility; supply chain
advantages, challenges, and risks; the DEPLOYMENT of the Zero
Incident Culture ACTION PLANS, and the cascading of GOALS
through APEX.
● Category 3, CUSTOMER Focus, has an additional focus on the
retention of CUSTOMERS.
● Category 4, Measurement, , and Knowledge Management,
includes: the use of CUSTOMER and COMPARATIVE DATA for
decision making, the INCLUSION of market data, the addition of
OCA to organizational PERFORMANCE reviews, the concept of
DATA PROTECTION, Employee Resource Groups, and the
sharing of safety LEARNINGS from driving a Zero Incident
Culture.
● Category 5, WORKFORCE Focus, has been updated to include:
the removal of the HR Operating Review, the removal of the
evaluation of the LEARNING and development system, the
removal of benefits reference, the addition of WELLNESS, the
addition of the creation of a safety culture focusing on risk
rather than incidents, the INCLUSION of KEY engagement
concepts of a Zero Incident Safety Culture, and the addition of
compliance with legal responsibilities.
● Category 6, PROCESS Management, has minor rewording.
● Category 7, RESULTS, has been aligned with the changes in
Categories 1-6 to encourage the measurement of important and
appropriate RESULTS. References are now included to the
RESULTS of the Employee Survey that include WELLNESS and
reflect the INCLUSION dimension.

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Section 3 | Criteria for Performance Excellence – Item Listing

Criteria for Performance Excellence – Item Listing

P Preface: Organizational Profile
P.1 Organizational Description
P.2 Organizational Situation

2016-2018 Categories and Items Point Values

1 Leadership 120
1.1 Senior Leadership 70
1.2 Governance and Public Responsibility 50

2 Strategic Planning 85
2.1 Strategic Development 40
2.2 Strategic Deployment 45

3 Customer and Market Focus 85

3.1 Customer and Market Knowledge 40
3.2 Customer Engagement and Relationship Building 45

4 Measurement, Analysis and Knowledge Management 90

4.1 Measurement Analysis and Improvement of Organizational Performance 45
4.2 Management of Information, Knowledge and Information Technology 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

7 Business Results 450

7.1 Product and Service Outcomes and Customer-Focused Outcomes 60
7.2 Organizational Effectiveness Outcomes 60
7.3 Financial and Market Outcomes 150
7.4 Workforce Outcomes 60
7.5 Process Effectiveness Outcomes 60
7.6 Leadership Outcomes 60

TOTAL POINTS 1,000

Note: The Scoring System used with the Criteria Items in an EBE assessment can be found in Section 4: EBE Scoring System.

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Organizational Profile
Importance of Beginning with Your Organizational
Profile
Your Organizational Profile is critically important because:
● It is the most appropriate starting point for self-assessment
and writing an application;
● It helps you identify potential gaps in KEY information and
focus on KEY PERFORMANCE requirements and business
RESULTS;
● It is used by the examiners to understand your
organization and what you consider important; and
● It also may be used by itself for an initial self-assessment.
If you identify topics for which conflicting, little, or no
information is available, it is possible that your assessment
need go no further, and you can use these topics for action
planning.
P Preface: Organizational Profile
The Organizational Profile is a snapshot of your organization, the
KEY influences on HOW you operate, and the KEY challenges you
face.
P.1 Organizational Description: What are your KEY
organizational characteristics?
Describe your plant’s operating environment and your KEY
relationships with CUSTOMERS, suppliers, PARTNERS, and
STAKEHOLDERS.
Within your response, include answers to the following questions:
a. Organizational Environment
(1) CENTRAL PURPOSE What is your plant’s CENTRAL PURPOSE?
HOW does it complement and align with Eaton Corporation’s
overall strategy as a Diversified Power Management Company?
(2) CORE COMPETENCIES What are your organization’s CORE
COMPETENCIES and their relationship to your CENTRAL
PURPOSE?
(3) Main Product Offerings What are your plant’s main products,
services and targeted markets? What are the channels to
market for your products and/or services?
(4) WORKFORCE What are the KEY characteristics or attributes of
your WORKFORCE? What are your KEY WORKFORCE or employee
groups and SEGMENTS? What are the KEY characteristics and
Diversity elements of your WORKFORCE? Does your plant have
organized bargaining units? What is your plant’s use of contract
employees? What are your plant’s special health and safety
requirements? What employee skills or education requirements
are critical to achievement of your organization’s success?
(5) Assets What are your KEY technologies, equipment, and
facilities used to accomplish your CENTRAL PURPOSE?
(6) Regulatory Requirements What is the regulatory environment
under which your plant operates? What are the applicable
occupational health and safety regulations; certification or
Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2015 Eaton Corporation. All Rights Reserved.
Section 3 | Organizational Profile
licensing requirements; and environmental, financial and
product regulations?
(7) Location Variations What regional, national legal, regulatory
and cultural attributes exist within your plant that may vary from
other Eaton plants? What are the major impacts of this variation
on the way your plant operates? What are the ways this
variation impacts the characteristics listed in questions P.1.a1-
6?
b. Organizational Relationships
(1) Organizational Structure Describe your organizational
structure. What are the reporting relationships among SENIOR
LEADERS, and any PARENT, CHILD and/or sister organizations?
What support services are provided to you by other Eaton
organizations?
(2) CUSTOMERS and STAKEHOLDERS What are your KEY CUSTOMER
and STAKEHOLDER groups and market SEGMENTS, as
appropriate? What are their KEY requirements and expectations
for your products, CUSTOMER support services and operations?
What are the differences in these requirements and
expectations among CUSTOMER and STAKEHOLDER groups and
market SEGMENTS? What, if any, are the Growth Accounts
targeted by your organization? What is your plant’s revenue
target for each of these accounts, as appropriate?
(3) Suppliers and PARTNERS What are your KEY types of
suppliers and/or PARTNERS? What role do your KEY suppliers
and PARTNERS, your contractors, and other components of the
supply chain play in your organization to help produce and
deliver your products, services, and KEY PROCESSES? What
role, if any, do they play in your plant INNOVATION PROCESSES?
(4) Internal CUSTOMERS What products do you provide to other
Eaton organizations? Who are your KEY Eaton CUSTOMERS?
What are the KEY requirements and expectations for your Eaton
CUSTOMERS?
(5) Internal Suppliers What products are provided to you by other
Eaton organizations? Who are your KEY Eaton suppliers? What
are the KEY requirements and expectations for your Eaton
suppliers?
NOTES
P.1a2 CORE COMPETENCIES refers to your organization’s areas of
greatest expertise. Your organization’s CORE
COMPETENCIES are those strategically important
capabilities that are central to fulfilling your MISSION or
provide an advantage in your marketplace or service
environment. CORE COMPETENCIES frequently are
challenging for competitors or suppliers and PARTNERS to
imitate and provide a sustainable competitive advantage.
P.1a3 Channels to market might be direct, or through dealers,
distributors or channel PARTNERS.
P.1a3 Product offerings and products refer to the goods and
services that your organization offers in the marketplace.
P.1a4 WORKFORCE or employee groups and SEGMENTS (including
organized bargaining units) might be based on the type of
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Section 3 | Organizational Profile

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?

a. Competitive Environment NOTES

(1) Competitive Position What is your competitive position? What
P.2b2 Principal Factors might include differentiators such as price
is your relative size and growth in your industry or markets
leadership, design services, INNOVATION rate, geographic
served? What are the numbers and types of competitors for
proximity, accessibility, and warranty and product options.
your organization?
(2) Competitiveness Changes What are the principal factors that P.2b STRATEGIC CHALLENGES and ADVANTAGES might relate to
determine your success relative to your competitors? What are technology, products, your operations, your CUSTOMER
any KEY changes taking place that affect your competitive support, your industry, globalization, your VALUE chain, and
situation, including opportunities for INNOVATION, as people.
appropriate? P.2c PERFORMANCE improvement is an assessment dimension
(3) COMPARATIVE DATA What are your KEY available sources of used in the Scoring System to evaluate the maturity of
COMPARATIVE and competitive data from within your industry organizational APPROACHES and DEPLOYMENT (Section 4:
and other Eaton organizations? What are your KEY available EBE Scoring System). This question is intended to help set
sources of COMPARATIVE DATA from outside your industry? What an overall context for your APPROACH to PERFORMANCE
limitations, if any, are there in your ability to obtain these data? improvement. Overall APPROACHES to PROCESS
improvement might include use of ELSS, EQS, MESH,
b. Strategic Context OpA or employing other PROCESS improvement tools.
(1) STRATEGIC CHALLENGES and ADVANTAGES What are your KEY
business, operational, and human resource STRATEGIC
Page Limit
CHALLENGES and ADVANTAGES? What are your KEY STRATEGIC For EBE application and certification assessments, the
CHALLENGES and ADVANTAGES associated with organizational Organizational Profile is limited to five pages.
sustainability?

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.

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 Section 3 | Organizational Profile

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.

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

2016-2018 EBE Criteria for Performance Excellence

1 Leadership (120 pts.)
The Leadership Category examines HOW your organization’s SENIOR LEADERS’ personal actions guide and sustain your organization and
also about your organization’s GOVERNANCE system and HOW your organization fulfills its ethical, legal and societal responsibilities and
HOW it supports its KEY communities.

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.

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

A plant’s response should address the use of EBS PULL and

HOW the focus on stretch metrics and projects are set and
aligned with their PARENT organization, as appropriate.
A plant’s response should address the use of the OpA system
to set expectations and drive improvements.
A plant’s response should address HOW SENIOR LEADERS are
personally driving a Zero Incident Safety Culture.

NOTES
1.1a1 Organizational directions should set the context for
objectives and ACTION PLANS which are described in Items
2.1 and 2.2.

1.1b2 A focus on action (1.1b2) considers the objectives,

WORKFORCE, the KEY PROCESSES and the physical assets
of the plant. It includes ongoing improvements in
PRODUCTIVITY that may be achieved through eliminating
waste or reducing CYCLE TIME and it might use tools such
as ELSS and EQS. It also includes the actions to
accomplish the organization’s objectives (See 2.2a1).

1.1a4 BUSINESS CONTINUITY ensure that a plant is capable of

addressing current business needs and possesses the
agility and management to prepare successfully for its
future business and market environment. In this context,
the concept of INNOVATION includes both technological and
organizational INNOVATION to succeed in the future. It
ensures a safe and secure environment for the
WORKFORCE, the communities in which they operate and
other KEY STAKEHOLDERS.

1.1 Your organizational PERFORMANCE RESULTS should be

reported in Items 7.1-7.6.

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

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

responsibilities? (50 pts.)

plant ensures legal and ETHICAL BEHAVIOR, fulfills its public
responsibilities, and supports its KEY communities.
Within your response, include answers to the following questions: (2) ETHICAL BEHAVIOR HOW does your plant promote and
ensure ETHICAL BEHAVIOR in all your interactions? What are
a. Organizational GOVERNANCE your KEY PROCESSES and MEASURES or INDICATORS for
(1) GOVERNANCE System HOW does your plant review and enabling and monitoring ETHICAL BEHAVIOR throughout your
achieve the following KEY aspects of your GOVERNANCE organization, and in interactions with your WORKFORCE,
system: CUSTOMERS, PARTNERS, and other STAKEHOLDERS?

● 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.

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

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).

1.2a2 Leadership PERFORMANCE evaluation might be

supported by formal PERFORMANCE management
reviews, and formal or informal WORKFORCE and other
STAKEHOLDER feedback and surveys.

1.2c Areas of societal contributions and community support

appropriate might include your efforts to improve the
environment (e.g., collaboration to conserve the
environment or natural resources); strengthen local
community services, education, and health; and improve
the practices of trade, business, or professional
associations.

1.2 The health and safety of employees are not addressed

in Item 1.2; you should address these employee factors
in Item 5.2.

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

2 Organization Objective Planning (85 pts.)

The Organizational Objective Planning Category examines HOW your organization develops objectives and ACTION PLANS. Also
examined are HOW your chosen objectives and ACTION PLANS are deployed and changed if circumstances require, and HOW progress
is measured.

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

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

• 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.

2.1a4 Your plant’s STRATEGIC ADVANTAGES and CHALLENGES

(2.1a3) should address all factors that are KEY to your
plant’s future success, including the following, as
appropriate: your CUSTOMER and market requirements,
expectations, and opportunities; your opportunities for
INNOVATION and role model PERFORMANCE; your CORE
COMPETENCIES; your competitive environment and your
PERFORMANCE relative to competitors and comparable
organizations; your product life cycle; technological and
other KEY INNOVATIONS or changes that might affect your
products and services and HOW you operate, as well as the
rate of that INNOVATION; your WORKFORCE and other
resource needs; your ability to capitalize on DIVERSITY;
your opportunities to redirect resources to higher priority
products, services, or areas; financial, societal, ethical,
regulatory, technological, security, and other potential risks
and opportunities; your ability to prevent and respond to
emergencies; changes in the national or global economy;
PARTNER and supply chain requirements, strengths, and
weaknesses; changes in your PARENT organization; and
other factors unique to your plant.

2.1a4 Your ability to execute the strategic plan should address

your ability to mobilize the necessary resources and
knowledge. It also should address your organizational
agility based on contingency plans or if circumstances
require a shift in plans and rapid execution of new or
changed plans.

2.1b3 Objectives that address KEY CHALLENGES and ADVANTAGES

might include rapid response, customization, WORKFORCE
CAPABILITY and CAPACITY, quality registration, and product
and service quality enhancements. Responses to Item 2.1
should focus on your specific CHALLENGES and
ADVANTAGES—those most important to your ongoing
success and to strengthening your organization’s overall
PERFORMANCE.

2.1 Item 2.1 addresses your overall plant planning, which

might include changes in services, products, and product
lines. However, the Item does not address product and
service; you should address these factors in Item 6.1, as
appropriate.

2.1 “Extended enterprise” involves your WORKFORCE, your KEY

suppliers and PARTNERS, your contractors, other Eaton
organizations, and other components of the supply chain
needed to produce and deliver your products and services.

2.1.a2 “CORE COMPETENCIES” refers to your organization’s areas

of greatest expertise. Your organization’s CORE
COMPETENCIES are those strategically important

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

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

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

● Item 7.6 for specific accomplishments relative to

your organizational strategy and ACTION PLANS.

2.2b MEASURES AND INDICATORS of projected PERFORMANCE

might include changes resulting from product moves;
new product introductions; new legislative mandates,
legal requirements, or industry standards; and significant
anticipated INNOVATIONS in products, services, and
technology.

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

3 CUSTOMER Focus (including internal CUSTOMERS as appropriate) (85 pts.)

The CUSTOMER and Market Focus Category asks HOW your organization listens to the VOICE OF CUSTOMERS, and uses this information to
improve and identify opportunities for INNOVATION. Also examined is HOW your organization determines requirements, needs,
expectations, and preferences of CUSTOMERS. If your organization provides products and services to other Eaton organizations as
presented in the Organization Profile P.1b2, then those internal CUSTOMER PROCESSES must be addressed.

3.1 CUSTOMER Knowledge: HOW do you obtain

and use CUSTOMER knowledge? (40 pts.) NOTES
Describe HOW your plant listens to your CUSTOMERS and HOW 3.1a2 The “VOICE OF THE CUSTOMER” is your PROCESS for
you obtain knowledge of their requirements, needs, capturing CUSTOMER-related information. VOICE OF THE
expectations, and preferences. Describe your plant’s CUSTOMER PROCESSES are intended to be proactive and
mechanisms to support CUSTOMERS, as appropriate. Describe continuously innovative to capture stated, unstated, and
HOW your PROCESSES differ for CUSTOMER SEGMENTS and anticipated CUSTOMER requirements, needs, and desires.
internal CUSTOMERS described in the Organizational Profile. The GOAL is to achieve CUSTOMER ENGAGEMENT. Listening
Within your response, include answers to the following to the VOICE OF THE CUSTOMER might include gathering and
questions: integrating various types of CUSTOMER data, such as
survey data, focus group findings, warranty data, and
a. CUSTOMER Listening Knowledge complaint data that affect CUSTOMERS’ purchasing and
ENGAGEMENT decisions.
Although the CUSTOMER and market knowledge PROCESSES are
frequently owned by the Business, the plants should describe 3.1a1 “Products” refers to the goods and services that you offer
HOW they obtain knowledge of important CUSTOMER in the marketplace. You should consider all the important
requirements (including internal CUSTOMERS) in order to meet characteristics of products and services and to their
those requirements and thereby ensure CUSTOMERS’ PERFORMANCE throughout their full sales cycle and the full
satisfaction. “consumption chain.” The focus should be on features that
(1) VOICE OF THE CUSTOMER HOW do you use the VOICE OF THE affect CUSTOMER preference and loyalty–for example,
CUSTOMER to determine KEY CUSTOMER (internal and external)
those features that differentiate your products and services
requirements, needs, and changing expectations (including from competing offerings or other organizations’ services.
product and service features and sourcing requirements) and Those features might include price, reliability, VALUE,
their relative importance to CUSTOMERS’ purchasing or delivery, timeliness, ease of use, requirements for
relationship decisions? HOW do you identify and anticipate HOW hazardous materials use and disposal, CUSTOMER or
these requirements and changing expectations will differ across technical support, and the sales relationship. KEY product
CUSTOMER, and CUSTOMER groups, and across the CUSTOMER
purchasing decisions might also take into account HOW
sales cycle? transactions occur and factors such as confidentiality and
security. Your RESULTS on PERFORMANCE relative to KEY
(2) Listening to Current CUSTOMERS HOW do you listen to product and service features and also those concerning
internal and external CUSTOMERS to obtain actionable feedback CUSTOMER perceptions and action should be reported in
on your products and your CUSTOMERS support? HOW do your Item 7.1.
listening methods vary for different CUSTOMERS, and CUSTOMER
groups,? HOW do your listening methods vary across the 3.1a1 CUSTOMER listening information could include marketing
CUSTOMER life cycle? HOW do you follow up with CUSTOMERS on and sales information, CUSTOMER ENGAGEMENT data,
the quality of products, CUSTOMER support, and transactions to win/loss ANALYSIS, and complaint data. “Actionable
receive prompt and actionable feedback? information” refers to specific aspects of your products and
CUSTOMER interactions that affect CUSTOMERS’ future
(3) Listening to Former and Potential CUSTOMERS HOW do you relationships with your organization.
listen to former CUSTOMERS, potential CUSTOMERS, and
CUSTOMERS of competitors to obtain actionable information and
to obtain feedback on your products, CUSTOMER support, and
transactions, as appropriate?
b. ANALYSIS and Use of CUSTOMER Data
(1) CUSTOMER DATA USE HOW do you use CUSTOMER and product
information to build a more CUSTOMER-focused improvement
culture and identify opportunities for INNOVATION?

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence
3.2 CUSTOMER ENGAGEMENT and Relationships
Building: HOW do you engage CUSTOMERS to
service their needs and build relationships?
(45 pts.)
Describe HOW your plant builds relationships to acquire, satisfy, and
retain CUSTOMERS. Describe HOW your plant builds a CUSTOMER
focused culture including internal CUSTOMERS. Describe also HOW
your plant acquires satisfaction and dissatisfaction information
including for internal CUSTOMERS.
Within your response, include answers to the following questions:
a. CUSTOMER Support and Relationship Building
Plants should describe HOW they contribute to business
relationships with CUSTOMERS.
(1) CUSTOMER Support HOW do you enable CUSTOMERS to seek
information and support? HOW do you enable them to conduct
business with you and give feedback on your products and
CUSTOMER support? What are your KEY means of CUSTOMER
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
deployed to all people and PROCESSES involved in CUSTOMER
support?
(2) Complaint Management HOW do you manage internal and
external CUSTOMER complaints? HOW does your complaint
management PROCESS ensure that complaints are resolved
effectively and promptly? HOW does your CUSTOMER complaint
management PROCESS enable you to recover your CUSTOMERS’
confidence, and enhance their satisfaction and ENGAGEMENT?
HOW does your complaint management system enable
aggregation and ANALYSIS of complaints for use in improvement
throughout your organization, as appropriate?
Plants should describe HOW they know of and contribute to
the resolution of CUSTOMER complaints. In addition, plants
should describe HOW their CUSTOMER complaint
management PROCESS, for both product and service
related issues, is in accordance with the EQS and
CUSTOMER specific requirements.
b. Building a CUSTOMER-Focused Culture
(1) CUSTOMER-Focused Culture HOW do you create an
organizational culture that ensures a consistently positive
CUSTOMER experience and contributes to CUSTOMER
ENGAGEMENT for internal and external CUSTOMERS?
(2) Relationship Building HOW do you build and manage
relationships with CUSTOMERS to:
• Meet their requirements and exceed their expectations in
each stage of the CUSTOMER sales cycle;
• Increase their ENGAGEMENT with you?
c. Determination of CUSTOMER Satisfaction and
ENGAGEMENT
Plants should describe HOW they obtain knowledge of CUSTOMER
(including internal CUSTOMERS) satisfaction, dissatisfaction and
ENGAGEMENT information and HOW that information is utilized for
improvement efforts. These descriptions should also address HOW
Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2015 Eaton Corporation. All Rights Reserved.
relevant and actionable information is conveyed to/and from the
PARENT.
(1) Satisfaction, Dissatisfaction and ENGAGEMENT HOW does
your organization determine CUSTOMER satisfaction,
dissatisfaction, and ENGAGEMENT for internal and external
CUSTOMERS? HOW do these determination methods differ
among CUSTOMER SEGMENTS and market SEGMENTS, as
appropriate? HOW do you ensure that your measurements
capture actionable information for use in exceeding your
CUSTOMERS’ expectations and securing your CUSTOMERS’
ENGAGEMENT for the long term?
(2) Satisfaction Relative to Competitors HOW do you obtain and
use information on your CUSTOMERS’ satisfaction,
dissatisfaction and ENGAGEMENT relative to their satisfaction
with your competitors? HOW do you obtain and use this
information relative to CUSTOMER satisfaction, dissatisfaction
and ENGAGEMENT LEVELS of CUSTOMERS of other organizations
providing similar products or services, or industry BENCHMARKS,
as appropriate?
NOTES
3.2 “CUSTOMER ENGAGEMENT” refers to your CUSTOMERS’
investment in your brand and product offerings.
Characteristics of ENGAGEMENT include CUSTOMER
retention and loyalty, CUSTOMERS’ willingness to actively
advocate for and recommend your brand and product.
3.2c Determining CUSTOMER satisfaction and dissatisfaction
might include use of any or all of the following: surveys,
formal and informal feedback, CUSTOMER account
histories, complaints, win/loss ANALYSIS, CUSTOMER
referral rates, and transaction completion rates.
Information might be gathered on the Web, through
personal contact or a third party, or by mail. Determining
CUSTOMER dissatisfaction should be seen as more than
reviewing low CUSTOMER satisfaction scores.
Dissatisfaction should be independently determined to
identify root causes of dissatisfaction and enable a
SYSTEMATIC remedy to avoid future dissatisfaction.
Plants are expected to incorporate the CRR PROCESS into
their CUSTOMER satisfaction determination PROCESS,
consistent with the PARENT Group’s APPROACH to the
DEPLOYMENT of the CRR.
3.2b2 The CUSTOMER sales cycle begins in the pre-sale period
and should include all stages of your involvement with the
CUSTOMER. This might include relationship building, the
active business relationship, and an exit strategy, as
appropriate.
3.2c2 Other organizations providing similar products or services
might include other organizations that are not competitors
but provide similar products and services in other
geographic areas or to different populations of people.
.
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4 Measurement, ANALYSIS, and Knowledge Management (90 pts.)

The Measurement, ANALYSIS, and Knowledge Management Category asks HOW your plant selects, gathers, analyzes, manages, and
improves its data, information, and KNOWLEDGE ASSETS and HOW it learns. The Category also examines HOW your organization
reviews and uses reviews to improve its PERFORMANCE.

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

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

other organizations providing similar products and services

and performing similar PROCESSES.

4.1b1 Plant PERFORMANCE reviews should include PERFORMANCE

measurement, PERFORMANCE MEASURES reported
throughout your Criteria Item responses, and
PERFORMANCE MEASURES reviewed by SENIOR LEADERS
(1.1b2) and they should be guided by the objectives and
ACTION PLANS described in Items 2.1 and 2.2. The reviews
also might include findings of internal or external
assessments.

4.1b ANALYSIS includes examining TRENDS; organizational,

industry, and technology projections; and comparisons,
cause-effect relationships, and correlations. ANALYSIS
should support your PERFORMANCE reviews, help
determine root causes, and help set priorities for resource
use. Accordingly, ANALYSIS draws upon all types of data:
CUSTOMER-related, financial, operational, and competitive.

4.1 The RESULTS of PERFORMANCE ANALYSIS and review

should contribute to your plant’s planning in Category 2.

4.1 Your organizational PERFORMANCE RESULTS should be

reported in Items 7.1-7.6.

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

4.2 Knowledge and Information: HOW do you

manage your organizational KNOWLEDGE ASSETS NOTES
and information? (45 pts.) 4.2a2 Data and information access might be via electronic and
Describe HOW your organization manages and grows its KNOWLEDGE other means.
ASSETS AND LEARNS. Describe HOW your organization ensures the
4.2 The term “KNOWLEDGE ASSETS” refers to the accumulated
quality and availability of needed data, information, software, and intellectual resources of your organization. It is the
hardware needed by your WORKFORCE, suppliers and PARTNERS, knowledge possessed by your organization and its
and CUSTOMERS. WORKFORCE in the form of information, ideas, LEARNING,
Within your response, include answers to the following questions: understanding, memory, insights, cognitive and technical
skills, and capabilities. Your WORKFORCE, software,
a. Organizational Knowledge patents, databases, documents, guides, policies and
(1) Knowledge Management HOW do you manage organizational procedures, and technical drawings are repositories of
knowledge to accomplish the following?* your organization’s KNOWLEDGE ASSETS. KNOWLEDGE
ASSETS are held not only by an organization but reside
● Collect and transfer of WORKFORCE knowledge within its CUSTOMERS, suppliers, and PARTNERS, as well.
● Transfer of relevant knowledge from and to CUSTOMERS, KNOWLEDGE ASSETS are the “know-how” that your
suppliers, and PARTNERS organization has available to use, to invest, and to grow.
● Share and implement best practices Building and managing its KNOWLEDGE ASSETS are KEY
components for your organization to create VALUE for your
Responses should address HOW Best Practices and STAKEHOLDERS and to help sustain a competitive
Transferable PROCESSES are identified, communicated and advantage.
deployed across the organization including use of
functional Eaton Resource Groups.
● Assemble and transfer relevant knowledge for use in your
INNOVATION PROCESS

(2) Organizational LEARNING HOW do you use your knowledge

and resources to embed LEARNING in the way your plant
operates?
b. Data and Information
(1) Data and Information Properties HOW do you manage your
plant data and information to ensure their accuracy, their
integrity and reliability, their timeliness, their security, their
confidentiality, and their protection?
(2) Organizational LEARNING HOW do you make needed data and
information available in a user-friendly format to your
WORKFORCE, suppliers, PARTNERS, and CUSTOMERS, as
appropriate?
(3) Hardware and Software Properties HOW do you ensure that
hardware and software are reliable, secure, and user friendly?
A component of data and information reliability may
include the Eaton Corporate Software Standards.
(4) Emergency Availability In the event of an emergency, HOW
do you ensure that hardware and software systems, and data
and information continue to effectively serve CUSTOMERS and
business needs?

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence
5 WORKFORCE Focus (85 pts.)
The W ORKFORCE Focus Category examiners your ability to assess WORKFORCE CAPABILITY and CAPACITY needs and to build a
WORKFORCE environment conducive to HIGH-PERFORMANCE. The Category also asks HOW your organization engages, manages, and
develops your WORKFORCE to utilize its full potential in ALIGNMENT with your organization’s CENTRAL PURPOSE, strategy, and ACTION
PLANS.
Plants should address the requirements of the HR Operating Review.
5.1 WORKFORCE ENGAGEMENT: HOW do you engage
your WORKFORCE to achieve organizational and
personal success? (45 pts.)
Describe HOW your organization engages, compensates, and
rewards your WORKFORCE to achieve HIGH-PERFORMANCE. Describe
HOW you assess WORKFORCE ENGAGEMENT and use the RESULTS to
achieve higher PERFORMANCE. Describe HOW members of your
WORKFORCE including leaders, are developed to achieve HIGH-
PERFORMANCE including HOW you engage them in improvement and
INNOVATION, and HOW you foster INCLUSION for all employees.
A plant’s response, in part, should describe HOW the Eaton VALUES,
(including the Eaton Philosophy), and Eaton’s Code of Ethics are
aligned with programs that address employee support and
satisfaction.
Within your response, include answers to the following questions:
a. WORKFORCE Enrichment
(1) Elements of ENGAGEMENT HOW do you determine the KEY
factors that affect WORKFORCE ENGAGEMENT? HOW do you
determine the KEY elements that affect WORKFORCE
satisfaction? HOW are these factors determined for diverse
WORKFORCE groups and SEGMENTS?
(2) Organizational Culture HOW do you foster an organizational
culture that is characterized by open communication, HIGH-
PERFORMANCE WORK and an engaged WORKFORCE to
accomplish the following:
• EFFECTIVE information flow and two-way communication
with supervisors and managers
• Individual GOAL setting; EMPOWERMENT, and initiative
(including ELSS)
• Employee input to decision making
HOW do you ensure your organizational culture benefits from
the diverse ideas, cultures, and thinking of your WORKFORCE?
HOW do you create a Zero Incident Safety Culture that focuses
on behaviors and risk rather than incidents?
(3) PERFORMANCE Management HOW does your WORKFORCE
PERFORMANCE management system achieve the following:
• Support HIGH-PERFORMANCE WORK and WORKFORCE
ENGAGEMENT
A plant’s response should include a description of HOW the
OpA PROCESS is used to focus and support HIGH-
PERFORMANCE WORK.
• Consider WORKFORCE compensation, reward, recognition,
and incentive practices
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• Achieve INNOVATION
• Reinforce a CUSTOMER and business focus and
achievement of your ACTION PLANS
A plant’s response, in part, should include a description of
HOW they use the APEX PROCESS to support HIGH-
PERFORMANCE WORK and employee motivation.
A plant’s response, in part, should include HOW they use E-
STAR to support employee motivation.
b. Assessment of WORKFORCE ENGAGEMENT
Plants should describe HOW they deploy the Eaton Employee
Survey and HOW survey information is then translated into
ACTION PLANS that address the unique characteristics of that
organization. Examples of ACTION PLANS resulting from recent
findings should be described.
(1) Assessment of ENGAGEMENT HOW do you assess
WORKFORCE ENGAGEMENT? What formal and informal
assessment methods and MEASURES do you use to determine
WORKFORCE ENGAGEMENT and WORKFORCE satisfaction? HOW
do these methods and MEASURES differ across WORKFORCE
groups and SEGMENTS? HOW do you use other INDICATORS,
such as WORKFORCE retention, absenteeism, grievances,
safety, and PRODUCTIVITY to assess and improve WORKFORCE
ENGAGEMENT? HOW do you create an INCLUSIVE environment
that engages all employees?
Plants should describe HOW they address the Employee
ENGAGEMENT findings and themes from the OpA assessment.
(2) Correlation with Business RESULTS HOW do you relate
assessment findings to KEY business RESULTS reported in
Category 7 to identify opportunities for improvement in both
WORKFORCE ENGAGEMENT and business RESULTS?
c. WORKFORCE and Leader Development
The plant’s WORKFORCE development and LEARNING system should
address the specific requirements for its operations as well as for
prescriptive EBS PROCESSES including OpA, EQS, MESH, and
ELSS.
(1) LEARNING and Development HOW does your LEARNING and
development system address the following factors for your
WORKFORCE and your leaders?
● Your CORE COMPETENCIES, STRATEGIC CHALLENGES, and
accomplishment of your ACTION PLANS, both short-term and
longer-term
● Organizational PERFORMANCE improvement and
INNOVATION
● Ethics and ethical business practices
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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

● Compliance with legal responsibilities

● CUSTOMER focus
● Transfer of knowledge from departing or retiring workers
● Their LEARNING and development needs, including those
that are self-identified and those identified by supervisors
and managers
● Reinforcement of new knowledge and skills on the job
● Create an INCLUSIVE environment
● EBS functional competencies
Plants should describe HOW they use New Employee
Orientation training.
(2) Career Progression HOW do you manage EFFECTIVE career
progression for your entire WORKFORCE? HOW do you
accomplish EFFECTIVE succession planning for management
and leadership positions?
Plants should address HOW they use APEX and
development GOALS to support career progression.

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.

5.1b “W ORKFORCE ENGAGEMENT” refers to the extent of

WORKFORCE commitment, both emotional and intellectual,
to accomplishing the work, and CENTRAL PURPOSE of the
organization.

5.1a2/a3 The characteristics of “HIGH-PERFORMANCE WORK” in which

people are motivated to do their utmost for the benefit of
their CUSTOMERS and for the success of the organization
are KEY to understanding and building an engaged
WORKFORCE. These characteristics are described in detail
in the definition of “HIGH-PERFORMANCE WORK” (see “HIGH-
PERFORMANCE WORK” in Section 4: Glossary of KEY
Terms).

5.1a3 Compensation and recognition, and related reward and

incentive practices include promotions and bonuses that
might be based upon PERFORMANCE, skills acquired, and
other factors. Recognition can include monetary and
nonmonetary, formal and informal and individual and group
mechanisms.

5.1b Your plant may have unique considerations relative to

WORKFORCE development, LEARNING, and career
progression. If this is the case, your response should
include HOW you address these considerations.

5.1c2 Identifying improvement opportunities) might draw on your

WORKFORCE-focused RESULTS presented in Item 7.4 and
might involve addressing WORKFORCE-related problems
based on their impact on your business RESULTS reported
in response to other Category 7 Items.

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

5.2 WORKFORCE Environment: HOW do you build NOTES

an EFFECTIVE and supportive WORKFORCE
environment? (40 pts.) 5.2a “W ORKFORCE CAPABILITY” refers to your plant’s ability to
accomplish its WORK PROCESSES through the knowledge,
Describe HOW your plant manages WORKFORCE CAPABILITY and skills, abilities, and competencies of its people. Capability
CAPACITY to accomplish the work of the organization. Describe HOW may include the ability to build and sustain relationships
your plant maintains a safe, secure, and supportive work climate. with your CUSTOMERS; to innovate and transition to new
technologies; to develop new products, services, and
Within your response, include answers to the following questions:
WORK PROCESSES; and to meet changing business,
a. WORKFORCE CAPABILITY and CAPACITY market, and regulatory demands.
(1) CAPABILITY and CAPACITY HOW do you assess your “W ORKFORCE CAPACITY” refers to your plant’s ability to
WORKFORCE CAPABILITY and CAPACITY needs, including skills, ensure sufficient staffing LEVELS to accomplish its WORK
competencies, and staffing LEVELS? PROCESSES and successfully deliver your products and
services to your CUSTOMERS, including the ability to meet
(2) New Workforce Members HOW do you recruit, hire, place,
seasonal or varying demand LEVELS.
and retain new WORKFORCE members? HOW do you ensure that
your WORKFORCE represents the diverse ideas, cultures, and 5.2a WORKFORCE CAPABILITY and CAPACITY should consider not
thinking of your hiring community? only current needs but also future requirements (such as
Plant responses, in part, should describe HOW they the OpA future state) based on your STRATEGIC
OBJECTIVES and ACTION PLANS reported in Category 2.
address Eaton’s Code of Ethics Diversity requirement that
the hiring PROCESS and career progression decisions
advance equal employment for qualified individuals.
(3) WORKFORCE Accomplishment HOW do you manage and
organize your WORKFORCE to achieve the following?
• Accomplish the work of your plant
• Capitalize on the plant’s CORE COMPETENCIES
• Reinforce a CUSTOMER and business focus
• Exceed PERFORMANCE expectations
• Address your STRATEGIC CHALLENGES and ACTION PLANS
• Ensure compliance with regulatory and legal requirements
(4) WORKFORCE Change Management HOW do you prepare your
WORKFORCE for the potential impacts of changes to
WORKFORCE CAPABILITY and CAPACITY needs?

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?

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

6 PROCESS Management (85 pts.)

The PROCESS Management Category examines HOW your organization designs, manages, and improves its KEY PROCESSES to
deliver CUSTOMER VALUE and achieve organizational success. Plants should describe the KEY PROCESSES that they execute and that
are KEY to the successful achievement of their CENTRAL PURPOSE.

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?

(2) KEY Requirements HOW do you determine KEY PROCESS

requirements, incorporating input from CUSTOMERS, suppliers,
PARTNERS and other Eaton STAKEHOLDERS, as appropriate?
What are the KEY requirements for these PROCESSES? What are
the KEY PERFORMANCE MEASURES AND INDICATORS of
accomplishment?
(3) Design Concepts HOW do you design and innovate your KEY
PROCESSES to meet all the KEY requirements? HOW do you
incorporate new technology, organizational knowledge, and the
potential need for agility into the design of these PROCESSES?
HOW do you incorporate appropriate tools and concepts of
ELSS into the design of your KEY PROCESSES? HOW do you
incorporate CYCLE TIME, PRODUCTIVITY, cost control, and other
efficiency and effectiveness factors into the design of these
PROCESSES?

Components EBS such as OpA, Quality, EHS, ELSS, and

PROLaunch including BPS (Business PROCESSES and
Services) may be an appropriate APPROACH to the design
of KEY PROCESSES.

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.

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

6.2 Key PROCESS Management and Improvement: NOTES

HOW do you manage and improve your plant’s
KEY PROCESSES? ( 50 pts.) 6.2a1 Your KEY PROCESSES are your most important internal
VALUE CREATION PROCESSES and might include product
Describe HOW your plant deploys, manages, and improves its KEY design and delivery, CUSTOMER support, supply chain
PROCESSES to deliver CUSTOMER VALUE, and fulfill its CENTRAL management, business and support PROCESSES. Your KEY
PURPOSE? PROCESSES are the PROCESSES that involve the majority of
your organization’s WORKFORCE and produce CUSTOMER,
Within your response, include answers to the following questions:
STAKEHOLDER, and stockholder VALUE. Your KEY
a. WORK PROCESS Management PROCESSES are your KEY VALUE CREATION and KEY
SUPPORT PROCESSES.
(1) KEY PROCESS DEPLOYMENT HOW do you implement and
manage your KEY PROCESSES to ensure that they meet design Components of EBS may be treated as KEY PROCESSES
requirements? HOW does your day-to-day operation of these depending on the responsibilities of the plant.
PROCESSES ensure that they meet KEY PROCESS requirements?
HOW is WORKFORCE, CUSTOMERS, suppliers, PARTNERS and 6.2b Your response to KEY PROCESS improvement should
other Eaton STAKEHOLDERS INPUT, used in managing these include a description of your use of prescribed EBS tools
PROCESSES, as appropriate? What are your KEY PERFORMANCE such as ELSS and EQS. Other PROCESS improvement
MEASURES or INDICATORS and in-PROCESS MEASURES used for tools may also be included.
the control and improvement of your KEY PROCESSES?
6.2a The RESULTS of improvements in product and service
HOW do you utilize ELSS to help your plant achieve its KEY PERFORMANCE should be reported in Item 7.1. All other
objectives? WORK PROCESS PERFORMANCE RESULTS should be
reported Item in 7.5.
(2) Cost Control HOW do you control the overall costs of your KEY
PROCESSES? HOW do you prevent defects, service errors, and
rework and minimize warranty costs or CUSTOMER
PRODUCTIVITY losses, as appropriate? HOW do you minimize
the costs of inspections, tests, and PROCESS or PERFORMANCE
audits, as appropriate?
Plants should describe HOW they use EBS PROCESSES and
tools to reduce variability and drive PERFORMANCE
improvement.
b. WORK PROCESS Improvement
(1) PROCESS Improvement HOW do you improve your KEY
PROCESSES to achieve better PERFORMANCE, to reduce
variability, to improve products and services, and to keep the
PROCESSES current with business needs and directions?

(2) Improvement Priorities HOW does your plant use the OpA
PROCESS to drive improvement and set priorities in your KEY
PROCESSES?

Plants should conduct regular ELSS tool based self-

assessments to drive WORK PROCESS improvement.
(3) MEASURES AND INDICATORS HOW are your KEY PERFORMANCE
MEASURES AND INDICATORS used for the improvement of your
KEY PROCESSES and HOW do you incorporate the RESULTS of
the organizational PERFORMANCE reviews discussed in
response to Item 4.1 into the SYSTEMATIC evaluation and
improvement of your KEY PROCESSES?
(4) Lessons Learned HOW are improvements and lessons
learned shared with other organizational units and among KEY
PROCESSES to drive organizational LEARNING and INNOVATION?

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

7 Business RESULTS (450 pts.)

The Business RESULTS Category examines your plant’s PERFORMANCE and improvement in KEY areas—product and service
OUTCOMES, CUSTOMER-focused outcomes, organizational effectiveness outcomes, financial and market outcomes, WORKFORCE-
focused outcomes, PROCESS effectiveness outcomes, and leadership outcomes. PERFORMANCE LEVELS are examined relative to those
of competitors and other organizations providing similar products and services and using similar PROCESSES. Some individual
MEASURES may be INDICATORS of multiple PERFORMANCE RESULTS and might be reported in more than one Business RESULTS Item as
appropriate.

7.1 Product and Service and CUSTOMER-Focused

Outcomes: What are your product, service NOTES
and CUSTOMER-focused PERFORMANCE RESULTS 7.1a Product and service RESULTS reported in this Item should
INCLUDING INTERNAL CUSTOMERS AS WELL AS relate to the KEY product and service features identified as
EXTERNAL CUSTOMERS? (60 pts.) CUSTOMER requirements or expectations in P.1b2 based
on information gathered in Items 3.1 and 3.2. The
Summarize your plant’s KEY CUSTOMER-focused RESULTS, for MEASURES or INDICATORS should address factors that affect
CUSTOMER satisfaction and dissatisfaction, ENGAGEMENT, product CUSTOMER preference, such as those included in P.1b2
and service PERFORMANCE. SEGMENT your RESULTS by product and Item 3.1a1.
offerings, CUSTOMER groups, and market SEGMENTS as appropriate.
Include appropriate COMPARATIVE DATA. 7.1b1/b2 CUSTOMER satisfaction, dissatisfaction, relationship
building, and ENGAGEMENT RESULTS reported in this Item
Provide data and information to answer the following questions: should relate to the CUSTOMER groups and market
a. Product and Service RESULTS SEGMENTS discussed in P.1b2 and Item 3.1 and to the
determination methods and data described in Item 3.1.
What are your current LEVELS and TRENDS in KEY MEASURES or
INDICATORS of product and service PERFORMANCE that are important 7.1b MEASURES AND INDICATORS of CUSTOMERS’ satisfaction
to your internal and external CUSTOMERS? HOW do these RESULTS with your products and services relative to CUSTOMERS’
compare with the CUSTOMER satisfaction PERFORMANCE of your satisfaction with competitors and comparable
competitors’ and other organizations providing similar products and organizations might include information and data from your
services? CUSTOMERS and from independent organizations.

The Balanced Scorecard Measures of Warranty ppm and On-

Time Delivery should be reported.
b. CUSTOMER-Focused RESULTS
(1) CUSTOMER Satisfaction What are your current LEVELS and
TRENDS in KEY MEASURES or INDICATORS of CUSTOMER
satisfaction and dissatisfaction for both internal and external
CUSTOMERS, as appropriate? HOW do these RESULTS compare
with the CUSTOMER satisfaction LEVELS of your competitors and
other organizations providing similar products, services, and
PROCESSES?

CRR RESULTS should be reported for any strategic

CUSTOMERS served by the plant and targeted by the
PARENT Group for the CRR.

The EPM Prescribed measure of CUSTOMER External

DPPM should be reported.
(2) CUSTOMER ENGAGEMENT What are your current LEVELS and
TRENDS in KEY MEASURES or INDICATORS of CUSTOMER
relationship building and ENGAGEMENT for internal and external
CUSTOMERS? HOW do these RESULTS compare over the course
of your CUSTOMER life cycle, as appropriate?

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

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?

The EBS Prescribed Measure of Market share/

outgrowth and comparison to profit plan should be
reported if appropriate to the plant. If the plant has a
planned contribution to the PARENT GOALS for growth,
appropriate RESULTS and comparisons to profit plan
should be reported.
In addition, MEASURES such as new markets entered,
new products introduced and growth might relate to
marketplace PERFORMANCE.

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.

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

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.

7.4a1 Identified in response to 5.1a2, 5.1c1 and 5.2b1. For

example, number of safety concern reports, coaching or
positive reinforcement for safe behaviors.

7.4a4 Responses to 7.4a4 might include RESULTS of the Eaton

Employee Survey regarding WELLNESS and RESULTS
from the site WELLNESS questionnaire.

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 Section 3 | 2016-2018 EBE Criteria for Performance Excellence

7.6 Leadership Outcomes: What are your NOTES

leadership RESULTS? (60 pts.)
7.6a1 Measures or INDICATORS of accomplishment of plant
Summarize your plant’s KEY GOVERNANCE and senior leadership objectives and ACTION PLANS (7.6a1) should address your
RESULTS, including evidence of accomplishment of plant objectives,
OBJECTIVES and GOALS identified in 2.1b1, your Profit Plan,
ETHICAL BEHAVIOR, fiscal accountability, legal compliance, social
and your ACTION PLAN PERFORMANCE MEASURES. RESULTS
responsibility, support of KEY communities. SEGMENT your RESULTS for these MEASURES or INDICATORS may also be reported in
by organizational units, as appropriate. Include appropriate Items 7.1-7.5, but they should be clearly identified as such
COMPARATIVE DATA.
in your response to Item 7.6a1.
Provide data and information to answer the following questions:
7.6a1 Responses might include important internal and external
a. Objective Plan Accomplishments auditor recommendations, and management’s response to
these matters.
(1) Objective Implementation What are your RESULTS for KEY
MEASURES or INDICATORS of accomplishment of plant objectives 7.6c1 Regulatory and legal compliance RESULTS should address
and ACTION PLANS, INCLUDING BUILDING AND STRENGTHENING requirements described in 1.2b. WORKFORCE-related
CORE COMPETENCIES? occupational health and safety RESULTS (e.g., Eaton
defined reportable incidents—should be reported in 7.4.a4)
RESULTS should include accomplishment of objectives and
and EHS legal compliance should be reported in 7.4c1).
profit plan GOALS. In addition, RESULTS should include
accomplishment of EBS PULL prioritized projects and 7.6c2 Responses should address societal responsibilities
associated stretch MEASURES, as appropriate. discussed in 1.2b1 and 1.2c1, as well as support of the
KEY communities discussed in 1.2c. MEASURES of
b. GOVERNANCE RESULTS
contributions to societal wellbeing might include reduced
(1) Ethics What are your RESULTS for KEY MEASURES or energy consumption; the use of renewable energy
INDICATORS of ETHICAL BEHAVIOR and of STAKEHOLDER trust in resources, recovered water, and alternative APPROACHES
the SENIOR LEADERS and in the GOVERNANCE of your plant? to conserve resources (e.g., increased audio and video
conferencing).
RESULTS of Eaton’s Employee Survey that address
business ethics should be reported. Percentage of 7.6c1 Responses might include employee training on Eaton
employees receiving annual ethics training and percentage policies and legal compliance topics, as appropriate.
of new employees receiving ethical training within 90 days
(as required by New Employee Orientation) should also be
reported.
(2) Fiscal What are your KEY current findings and TRENDS in KEY
MEASURES or INDICATORS of fiscal accountability, both internal
and external, as appropriate?
c. Organizational Citizenship RESULTS
(1) Law and Regulation What are your RESULTS for KEY
MEASURES or INDICATORS of reducing adverse impacts,
achieving and surpassing regulatory and legal compliance, and
addressing risks associated with products, services and
operations?
MESH PERFORMANCE MEASURES relative to regulatory
compliance should be reported, as appropriate.
MESH PERFORMANCE MEASURES and targets for hazardous and
non-hazardous waste creation, water consumption, and energy
consumption should be reported, as appropriate.
(2) Public and Community What are your RESULTS for KEY
MEASURES or INDICATORS of your organization’s fulfillment of its
public responsibilities and your organization’s support of its KEY
communities?

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Section 3 | 2016-2018 EBE Criteria for Performance Excellence

Notes

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 Section 4 | Prescribed EBS/EBE Measures

Prescribed EBS/EBE Measures

Plant Plant Eaton
Criteria
EBS/EBE Measures Business (Profit (Cost Function Operating
Category
Center) Center) Reviews
Capital Expenditures 7.3 7.3 7.3 7.3 2 e,f,g
CFROGC 7.3 7.2,7.3 1,2 e,g
CONC % 7.5 7.2 7.2 1,5,6 e,g
Cost Out $ 7.5 7.2 7.2 7.5 6 e,g
Customer OTD % 7.1,7.2 7.1,7.2 7.1 1,3 e,g
Customer Survey 7.1 7.1 7.1 7.1 1,3 e,g
DACR Days Away Case Rate MESH 7.4,7.5 7.2,7.4 7.2,7.4 7.4 1,5 e,g
DOH 7.5 7.2,7.5 7.2,7.5 1,6 e,g
DPO 7.3,7.5 7.2,7.3 7.2,7.3 2 e,g
DSO 7.3,7.5 7.2,7.3 7.2,7.3 2 e,g
Employee Engagement Index (4 item) 7.4 7.4 7.4 7.4 1,5 e,g
External Customer DPPM 7.1 7.1 1,3 e,g
Manufacturing Profit % Sales 7.3 7.3 7.3 2,3,6 e,g
Market Outgrowth Percentage 7.2 1,2,3 a,b,e,g
Performance to Budget $ 7.3 7.3 1,2 e,g
Productivity (PBA) 7.5 7.2 7.2 6 d,e,g
ROS % 7.3 7.3 1,2 e,g
Supplier Quality - External (DPPM) 7.5 7.2 7.2 6 e,g
Support Expense % of Sales 7.3 7.3 7.3 2,6 e,g
Employee Turnover 7.4 7.4 7.4 7.4 1,5 e,g
TRCR Total Recordable Case Rate MESH 7.4,7.5 7.2,7.4 7.2,7.4 7.4 1,5 e,g
Supplier Growth * Sector Only *

Eaton "Operating Reviews" - Key Topics Eaton 2015 Goals

a) End Market Outlook Growth
b) Growth - Market Outgrowth 1. Annual Compound Sales Growth of 12-14%
c) Reduction in Suppliers (not required) 2. Sales from Emerging Markets to reach 30% by 2015
d) Pricing - Price Achievement 3. 20% Compound Earnings Growth
e) Performance against Profit Plan Performance
f) Capital Spending 4. 17% Segment Operating Margin
g) Performance against Prior Year 5. 9% Free Cash Flow to Sales
Returns
6. 15% Return on Invested Capital

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Section 4 | Prescribed EBS/EBE Measures

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.

CUSTOMER EXTERNAL DPPM (#) SUPPORT EXPENSE %

Calculated as 1,000,000* (External customer zero mile defects or
hour defects + external customer field defects) ÷ units shipped
(external).
MARKET OUTGROWTH %
This measure takes the difference between the actual market
outgrowth versus the original profit plan expectations. This also
includes key trends and indications of turning points. Some key
questions include; how are you doing versus the market outgrowth
goal of 50%; how are you doing against your new product launch
goals, how are you doing in terms of business with our newly
designated growth accounts; how are you doing in growing your
Service/Aftermarket business; how are you doing in growing your
Asia Pacific revenues, how are you doing in growing your Emerging
economy revenues.
CAPITAL EXPENDITURES TO YTD ($)
Capital Expenditures YTD to Profit Plan represents the comparison
between the dollar amounts actually spent on capital items to the
dollar amounts in the Profit Plan. Tracking this measure allows
Eaton to monitor the flow of spending throughout the year.
CFROGC (%)
Cash Flow Return on Gross Capital is the cash generated from
operations as a % of the dollars invested in the operation. It is a
measure of how efficiently a business unit utilizes and generates
cash. This metric evaluates the amount of profit a business unit
generates (Gross Operating Cash Flow) in relation to the amount of
cash invested in the business in the form of working capital,
property, plant and equipment (Gross Operating Capital). The
calculation is In Gross Operating Cash Flow ($) / $ Average Gross
Operating Capital ($) × 100.
An expense ratio metric that expresses total support expense (total
Distribution, Administrative, Selling, and R&D expenses) as a % of
total sales. Used to measure and hold expense levels in line with
sales levels This calculation takes support expense ($) ÷ net sales
($) x 100.
DAYS AWAY CASE RATE (#)
This is the number of cases that involve days away from work, or
days of restricted work activity or job transfer, or both, per 100 full-
time workers and calculated as: (N/EH) × 200,000 where: N =
number of injuries and/or illnesses, EH = total hours worked by all
employees during the calendar year, 200,000 = base for 100 full-
time equivalent workers (working 40 hours per week, 50 weeks per
year).
a. Cases involving days away from work are cases requiring at
least one day away from work with or without days of job
transfer or restriction.
b. Job transfer or restriction cases occur when, as a result of a work-
related injury or illness, an employer or health care professional
keeps, or recommends keeping an employee from doing the routine
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
illness occurred.

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

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 Section 4 | Prescribed EBS/EBE Measures

EMPLOYEE ENGAGEMENT (%) PRODUCTIVITY % (PBA)

The Employee Engagement Index is a combination of the following Under review and further information will be provided by January 1,
four annual employee survey items designed to measure the overall 2016.
level of employee engagement at Eaton.
SUPPLIER QUALITY–EXTERNAL DPPM (#)
● Overall, I am extremely satisfied with Eaton as a place to work.
This external DPPM calculation represents External Suppliers
● I would gladly refer a good friend or family member to Eaton for shipping to Eaton locations. Defects Parts Per Million, is the total
employment. number of defects received divided by the total number of units
● I rarely think about looking for a new job with another company. received multiplied by one million. The rejection quantity within a
● I am proud to work for Eaton. DMR must be captured accurately to reflect the number of defective
units known, whether it is based on a percentage of defects from a
The Employee Engagement Index is a measurement of the
statistical sample or determined through a 100% sort by Eaton or
percentage of employees who respond favorably to the questions
preferably by the supplier. If you have any questions, please review
(includes Strongly Agree and Agree responses).
the Supplier Excellence Manual, Supplier Performance Procedure or
EMPLOYEE TURNOVER (%) contact your appropriate SQA Council member.
The total number of Eaton employees who left in a measurement
period. This includes all terminated employees with a classification
of voluntary (resigned) and involuntary (released) status in Oracle
HRMS. EPM will then use the same calculation methodology to
calculate total turnover.

TOTAL RECORDABLE CASE RATE (TRCR) (#)

This is the number of work-related injuries and/or illnesses per
100 full-time workers and calculated as: (N/EH) × 200,000 where:
N = number of injuries and/or illnesses, EH = total hours worked by
all employees during the calendar year, 200,000 = base for 100 full-
time equivalent workers (working 40 hours per week, 50 weeks per
year). Only work-related injuries or illnesses that result in death, loss
of consciousness, days away from work, restricted work activity or
job transfer, medical treatment (beyond first aid), or other significant
work-related illness or injury diagnosed by a medical professional
are considered.

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 ($).

COST OUT ($)

Specific actions that provide cost savings benefits of materials,
services and labor that directly impact the current Profit and Loss
statement. Cost benefits will be measured on a project basis.

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.

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Section 4 | Eaton Excellence Indicators

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.

There are 11 Eaton Excellence Indicator Enablers:

• Focus on EHS and Sustainability

• Planning

• Talent Management

• Use of Comparative Data and Information

• Growth

• New Product Development

• Forecasting

• Manufacturing Excellence

• Supply Chain Optimization

• Organizational Performance Reviews

• Promoting a Learning Culture

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Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2012 Eaton Corporation. All Rights Reserved.

Glossary of Key Terms
This Glossary of Key Terms defines and briefly describes terms
used throughout the Criteria booklet that are important to
performance management. As you may have noted, key terms are
presented in SMALL CAPS/SANS SERIF every time they appear in the
Categories and Scoring Guidelines sections of this Criteria booklet.
The general format in presenting glossary definitions is as follows:
The first sentence contains a concise definition of the term.
Subsequent sentences in the first paragraph elaborate on and
further delineate the term. Any subsequent paragraphs provide
examples, descriptive information, or key linkages to other Criteria
information
ACTION PLANS
The term “action plans” refers to specific actions that respond to
short- and longer-term strategic objectives. Action plans include
details of resource commitments and time horizons for
accomplishment. Action plan development represents the critical
stage in planning when strategic objectives and goals are made
specific, so that effective, organization-wide understanding and
deployment are possible. In the Criteria, deployment of action plans
includes creating aligned measures for all departments and work
units. Deployment might also require specialized training for some
employees or recruitment of personnel.
An example of a strategic objective for an organization in a highly
competitive industry might be to develop and maintain a price
leadership position. Action plans could entail designing efficient
processes and creating an accounting system that tracks activity-
level costs, aligned for the organization as a whole. Deployment
requirements might include work unit and/or team training in setting
priorities based upon costs and benefits. Organizational-level
ANALYSIS and review likely would emphasize productivity growth,
cost control, and quality.
See also the definition of “STRATEGIC OBJECTIVES.”
ALIGNMENT
The term “alignment” refers to consistency of plans, processes,
information, resource decisions, actions, results, and ANALYSIS to
support key organization-wide goals. Effective alignment requires a
common understanding of purposes and goals. It also requires the
use of complementary measures and information for planning,
tracking, ANALYSIS, and improvement at three levels: the
organizational level, the key process level, and the work unit level.
See also the definition of “INTEGRATION.”
ANALYSIS
The term “analysis” refers to an examination of facts and data to
provide a basis for effective decisions. Analysis often involves the
determination of cause-effect relationships. Overall organizational
analysis guides the management of work systems and work
processes toward achieving key business results and toward
attaining strategic objectives.
Despite their importance, individual facts and data do not usually
provide an effective basis for actions or setting priorities. Effective
actions depend on an understanding of relationships, derived from
analysis of facts and data.
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Section 4 | Glossary of Key Terms
ANECDOTAL
The term “anecdotal” refers to process information that lacks specific
methods, measures, deployment mechanisms, and evaluation,
improvement, and learning factors. Anecdotal information frequently
uses examples and describes individual activities rather than
systematic processes.
An anecdotal response to how senior leaders deploy performance
expectations might describe a specific occasion when a senior
leader visited all the organization’s facilities. On the other hand, a
systematic process might describe the communication methods
used by all senior leaders to deliver performance expectations on a
regular basis to all organizational locations and workforce members,
the measures used to assess effectiveness of the methods, and the
tools and techniques used to evaluate and improve the
communication methods.
See also the definition of “SYSTEMATIC.”
APPROACH
The term “approach” refers to the methods (processes) used by an
organization to address the EBE Criteria Item requirements.
Approach includes the appropriateness of the methods to the Item
requirements and to the organization’s operating environment, as
well as how effectively the methods are used.
Approach is one of the dimensions considered in evaluating Process
Items. For further description, see EBE Scoring System in this
section.
BASIC REQUIREMENTS
The term “basic requirements” refers to the topic Criteria users need
to address when responding to the most central concept of an Item.
Basic requirements are the fundamental theme of that Item (e.g.,
your approach for strategy development for Item 2.1). In the Criteria,
the basic requirements of each Item are presented as the Item title
question. This presentation is illustrated in the Item format shown in
this section: Item Format Guidelines, Figure 4.1.
BENCHMARKS AND COMPARATIVE DATA
The term “benchmarks” refers to processes and results that
represent best practices and performance for similar activities, inside
or outside an organization’s industry. Organizations engage in
benchmarking to understand the current dimensions of world-class
performance and to achieve discontinuous (non-incremental) or
breakthrough improvement.
Benchmarks are one form of comparative data. Other comparative
data organizations might use include industry data collected by a
third party (frequently industry averages), data on competitors’
performance, and comparisons with similar organizations in the
same geographic area or that provide similar products and services
in other geographic areas.
BUSINESS CONTINUITY
The term “business continuity” refers to your organization’s ability to
address current business needs and to have the agility and strategic
management to prepare successfully for your future business,
market, and operating environment. Both external and internal
factors need to be considered. The specific combination of factors
might include industry-wide and organization-specific components.
4.5
Section 4 | Glossary of Key Terms
Business continuity considerations might include workforce
capability and capacity, resource availability, technology, knowledge,
core competencies, work systems, facilities, and equipment.
Business continuity might be affected by changes in the marketplace
and customer preferences, changes in the financial markets, and
changes in the legal and regulatory environment. In addition,
sustainability has a component related to preparedness for real-time
or short-term emergencies.
CENTRAL PURPOSE
The concept of “Central Purpose” has been introduced to the criteria
in as a way to more specifically identify the critical things an
organization should be focused on to help accomplish its mission.
Eaton’s “mission” is often a broader, higher-level concept that
addresses what an organization is attempting to accomplish. Central
purpose refers to the fundamental reason that an organization exists
and identifies what the local organization must do to support the
mission of the parent organization. Two organizations in different
businesses could have similar purposes, and two organizations in
the same business could have different purposes.
CORE COMPETENCIES
The term “core competencies” refers to your organization’s areas of
greatest expertise. Your organization’s core competencies are those
strategically important capabilities that provide an advantage in your
marketplace or service environment. Core competencies frequently
are challenging for competitors or suppliers and partners to imitate,
and they provide a sustainable competitive advantage.
Core competencies may involve technology expertise, unique
service offerings, a marketplace niche, or a particular business
acumen (e.g., business acquisitions).
CUSTOMER
The term “customer” refers to actual and potential users of your
organization’s products, programs, or services. Customers include
the end users of your products, programs, or services, as well as
others who might be the immediate purchasers or users. This might
include distributors, agents, or organizations that further process
your product as a component of their product. Customers may also
be internal. The Criteria address customers broadly, referencing
current customers and future customers, as well as customers of
your competitors.
Customer-driven excellence is an Eaton core value embedded in the
beliefs and behaviors of high-performance organizations. Customer
focus impacts and should integrate an organization’s strategic
directions, its work systems and work processes, and its business
results.
See the definition of “STAKEHOLDERS” for the relationship between
customers and others who might be affected by your products,
programs, or services.
CUSTOMER ENGAGEMENT
The term “customer engagement” refers to your customers’
investment in or commitment to your brand and product offerings.
It is based on your ongoing ability to serve their needs and build
relationships so they will continue using your products.
Characteristics of customer engagement include customer retention
and loyalty, customers’ willingness to make an effort to do business
with your organization, and customers’ willingness to actively
advocate for and recommend your brand and product offerings.
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CYCLE TIME
The term “cycle time” refers to the time required to fulfill
commitments or to complete tasks. Time measurements play a
major role in the Criteria because of the great importance of time
performance to improving competitiveness and overall performance.
“Cycle time” refers to all aspects of time performance. Cycle time
improvement might include time to market, order fulfillment time,
delivery time, changeover time, customer response time, and other
key measures of time.
DATA PROTECTION
The term “Data Protection” refers to the protection of personal data
relating to an employee, applicant, customer, supplier or other party
as required by applicable law and/or Eaton policy. “Personal data” is
defined broadly and can include any information that can be used to
identify an individual, such as an E-number, salary, salary band,
performance rating, age, gender, shirt size, address, work email
address, work phone number, private phone number, etc. Data
Protection laws and Eaton’s policies, including our Employee Data
Protection Policy, place restrictions on the collection, storage, use,
processing, publication or transmission of personal data.
DEPLOYMENT
The term “deployment” refers to the extent to which an approach is
applied in addressing the requirements of an EBE Criteria Item.
Deployment is evaluated on the basis of the breadth and depth of
application of the approach to relevant work units throughout the
organization.
Deployment is one of the dimensions considered in evaluating
Process Items. For further description, see EBE Scoring System in
this section.
DIVERSITY
The term “diversity” refers to the rich range of differences that make
each individual unique. These differences address many variables,
including race, religion, color, gender, national origin, disability,
sexual orientation, age, and generational preferences, education,
geographic origin, and skill characteristics, as well as differences in
ideas, thinking, academic disciplines, and perspectives.
The Criteria refer to the diversity of your workforce, workplace and
communities. Workforce is the diversity of employees, workplace is
the environment in which employees work. Communities are your
suppliers, customers and the communities in which you do business.
Capitalizing on diversity provides enhanced opportunities for high
performance and innovation; customer, workforce, and community
satisfaction; and employee engagement.
EFFECTIVE
The term “effective” refers to how well a process or a measure
addresses its intended purpose. Determining effectiveness requires
(1) the evaluation of how well the approach is aligned with the
organization’s needs and how well the approach is deployed or
(2) the evaluation of an outcome of the measure used.
EMPOWERMENT
The term “empowerment” refers to giving people the authority and
responsibility to make decisions and take actions. Empowerment
results in decisions being made closest to the “front line,” where
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

improve the organization’s performance results. An empowered
workforce requires information to make appropriate decisions; thus,
an organizational requirement is to provide that information in a
timely and useful way.
ETHICAL BEHAVIOR
The term “ethical behavior” refers to how an organization ensures
that all its decisions, actions, and stakeholder interactions conform
to the organization’s moral and professional principles. These
principles should support all applicable laws and regulations and are
the foundation for the organization’s culture and values. They
distinguish “right” from “wrong.”
Senior leaders should act as role models for these principles of
behavior. The principles apply to all people involved in the
organization, from temporary employees to members of the board of
directors, and need to be communicated and reinforced on a regular
basis. Although there is no universal model for ethical behavior,
senior leaders should ensure that the organization’s mission and
vision are aligned with its ethical principles. Ethical behavior should
be practiced with all stakeholders, including the workforce,
shareholders, customers, partners, suppliers, and the organization’s
local community.
While some organizations may view their ethical principles as
boundary conditions restricting behavior, well-designed and clearly
articulated ethical principles should empower people to make
effective decisions with great confidence.
GOALS
The term “goals” refers to a future condition or performance level
that one intends to attain. Goals can be both short-term and longer-
term. Goals are ends that guide actions. Quantitative goals,
frequently referred to as “targets”, include a numerical point or
range. Targets might be projections based on comparative data
and/or competitive data. The term “stretch goals” refers to desired
major, discontinuous (non-incremental) or breakthrough
improvements, usually in areas most critical to your organization’s
future success.
Goals can serve many purposes, including:
● Clarifying strategic objectives and ACTION PLANS to indicate how
success will be measured
● Fostering teamwork by focusing on a common end
● Encouraging “out-of-the-box” thinking to achieve a stretch goal
● Providing a basis for measuring and accelerating progress
GOVERNANCE
The term “governance” refers to the system of management and
controls exercised in the stewardship of your organization. It
includes the responsibilities of your organization’s senior leaders.
Corporate charters, by-laws, and policies document the rights
and responsibilities of each of the parties and describe how
your organization will be directed and controlled to ensure
(1) accountability to owners/shareholders and other stakeholders,
(2) transparency of operations, and (3) fair treatment of all
stakeholders. Governance processes may include approving
strategic direction, monitoring and evaluating senior leaders’
performance, establishing executive compensation and benefits,
succession planning, financial auditing, risk management,
disclosure, and shareholder reporting. Ensuring effective
governance is important to stakeholders’ and the larger society’s
trust and to organizational effectiveness.
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Section 4 | Glossary of Key Terms
HIGH-PERFORMANCE WORK
The term “high-performance work” refers to work processes used to
systematically pursue ever-higher levels of overall organizational
and individual performance, including quality, productivity, innovation
rate, and cycle time performance. High-performance work results in
improved service for customers and other stakeholders.
Approaches to high-performance work vary in form, function, and
incentive systems. High-performance work focuses on workforce
engagement. It frequently includes cooperation between
management and the workforce, which may involve workforce
bargaining units; cooperation among work units, often involving
teams; the empowerment of your people including self-directed
responsibility and input to planning. It also may include individual
and organizational skill building and learning; learning from other
organizations; flexibility in job design and work assignments; a
flattened organizational structure, where decision making is
decentralized and decisions are made closest to the “front line"; and
effective use of performance measures, including comparisons.
Many high-performance organizations use monetary and
nonmonetary incentives based upon factors such as organizational
performance, team and individual contributions, and skill building.
Also, high-performance work usually seeks to align the
organization’s structure, core competencies, work, jobs, workforce
development, and incentives.
HOW
The term “how” refers to the systems and processes that an
organization uses to accomplish its central purpose requirements. In
responding to “how” questions in the Process Item requirements,
process descriptions should include information such as approach
(methods and measures), deployment, learning, and integration
factors.
INCLUSION
The term “inclusion” refers to the behavior of recognizing, valuing
and fully leveraging different perspectives and backgrounds to
achieve business goals. Inclusion relates to the ability to fully
appreciate and engage the diverse perspectives in the workforce
and tap into the unique qualities of each member for creating
innovative ideas, solutions, and products that exceed customers’
expectations, elevate the potential of individuals and the company
and provide a competitive advantage.
INNOVATION
The term “innovation” refers to making meaningful change
to improve products, programs, services, processes, or
organizational effectiveness, and to create new value for
stakeholders. Innovation involves the adoption of an idea, process,
technology, product, or business model that is either new or new to
its proposed application. The outcome of innovation is a
discontinuous or breakthrough change in results, products or
processes.
Successful organizational innovation is a multi-step process that
involves development and knowledge sharing, a decision to
implement, implementation, evaluation, and learning. Although
innovation is often associated with technological innovation, it is
applicable to all key organizational processes that would benefit
from change, whether through breakthrough improvement or change
in approach or outputs. It could include fundamental changes in
organizational structure or the business model to more effectively
accomplish the organization’s work.
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Section 4 | Glossary of Key Terms
INTEGRATION
The term “integration” refers to the harmonization of plans,
processes, information, resource decisions, actions, results,
and analysis to support key organization-wide goals. Effective
integration goes beyond alignment and is achieved when the
individual components of a performance management system
operate as a fully interconnected unit.
See also the definition of “ALIGNMENT.”
Integration is one of the dimensions considered in evaluation
Process Items. For further description, see EBS Scoring System in
this section.
KEY
The term “key” refers to the major or most important elements or
factors, those that are critical to achieving your intended outcome.
The EBE Criteria, for example, refer to key challenges, key plans,
key processes, and key measures—those that are most important to
the organization’s success. They are the essential elements for
pursuing or monitoring a desired outcome.
KEY STRATEGIC ISSUES (KSIS)
The term “key strategic issues” within EBS PULL refers to Eaton’s
annual strategic planning process beginning with defining KSIs for
each segment and region. These are the issues most critical to the
ongoing success and/or improvement of our business. KSIs can
come from the business teams, sector leadership, or corporate
leadership. As teams work through the strategic planning process,
they focus on the most critical KSIs to balance the demands of
strategic planning with resources. KSIs are used within the EBS
PULL process to ensure alignment with their parent organization
KEY STRATEGIC OBJECTIVES (KSOS)
The term “key strategic objectives” within EBS PULL are derived
from KSIs and used to focus stretch metrics and project
identification. KSOs assist teams in identifying stretch metrics and
tangible “needle mover” projects. In addition, KSOs are a key step in
developing linkage to the next level in the organization (next level
could be a division, plant, or function.)
KNOWLEDGE ASSETS
The term “knowledge assets” refers to the accumulated intellectual
resources of your organization. It is the knowledge possessed by
your organization and its workforce in the form of information, ideas,
learning, understanding, memory, insights, cognitive and technical
skills, and capabilities. Your workforce, software, patents,
databases, documents, guides, policies and procedures, and
technical drawings are repositories of an organization’s knowledge
assets. Knowledge assets are held not only by an organization but
reside within its customers, suppliers, and partners as well.
Knowledge assets are the “know how” that your organization has
available to use, to invest, and to grow. Building and managing its
knowledge assets are key components for your organization to
create value for your stakeholders and to help sustain a competitive
advantage.
LEADERSHIP SYSTEM
The term “leadership system” refers to how leadership is exercised,
formally and informally, throughout the organization. It is the basis
for and the way key decisions are made, communicated, and carried
out. It includes structures and mechanisms for decision making; two-
way communication; selection and development of leaders and
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managers; and reinforcement of values, ethical behavior, directions,
and performance expectations.
An effective leadership system respects the capabilities and
requirements of workforce members and other stakeholders, and
it sets high expectations for performance and performance
improvement. It builds loyalties and teamwork based on the
organization’s vision and values and the pursuit of shared goals. It
encourages and supports initiative and appropriate risk taking, aligns
organizational structure with purpose and function, and avoids
chains of command that require long decision paths. An effective
leadership system includes mechanisms for the leaders to conduct
self-examination, receive feedback, and improve.
LEARNING
The term “learning” refers to new knowledge or skills acquired
through evaluation, study, experience, and innovation. The EBE
Criteria include two distinct kinds of learning: organizational and
personal. Organizational learning is achieved through research and
development, evaluation and improvement cycles, workforce and
stakeholder ideas and input, best practice sharing, and
benchmarking. Personal learning is achieved through education,
training, and developmental opportunities that further individual
growth.
To be effective, learning should be embedded in the way an
organization operates. Learning contributes to a competitive
advantage and continuity for the organization and its workforce. For
further description of organizational and personal learning, see the
related Eaton Philosophy statement, “We accept the challenge of
life-long learning,” in Section 1: EBS – The Power of One Eaton.
Learning is one of the dimensions considered in evaluating Process
Items. For further description, see EBS Scoring System in this
section.
LEVELS
The term “levels” refers to numerical information that places or
positions an organization’s results and performance on a meaningful
measurement scale. Performance levels permit evaluation relative to
past performance, projections, goals, and appropriate comparisons.
MEASURES AND INDICATORS
The term “measures and indicators” refers to numerical information
that quantifies input, output, and performance dimensions of
processes, products, programs, projects, services, and the overall
organization (outcomes). Measures and indicators might be simple
(derived from one measurement) or composite.
The Criteria do not make a distinction between measures and
indicators. However, some users of these terms prefer the term
indicator (1) when the measurement relates to performance but is
not a direct measure of such performance (e.g., the number of
complaints is an indicator of dissatisfaction but not a direct measure
of it) and (2) when the measurement is a predictor (“leading
indicator”) of some more significant performance (e.g., increased
customer satisfaction might be a leading indicator of market share
gain).
MISSION
The term “mission” refers to the overall function of an organization.
The mission answers the question, “What is this organization
attempting to accomplish?” The mission might define customers or
markets served, distinctive or core competencies, or technologies
used.

MULTIPLE REQUIREMENTS
The term “multiple requirements” refers to the individual questions
Criteria users need to answer within each Area to Address. These
questions constitute the details of an Item’s requirements. They are
presented in black text under each Item’s Area(s) to Address. This
presentation is illustrated in the Item format shown in this section:
Item Format Guidelines, Figure 4.1.
OPA SYSTEM
The term “OpA system” refers to the elements of the OpA
Deployment model, including CI goal setting, self-assessments, OpA
Leadership Reviews, Validated OpAs and closing the loop with
revision of CI goals for the next planning period.
Additional related terms include “OpA Group” which is a set of plants
reviewed by one OpA Leadership Team. The Group Leadership
Team Review (GLR) or OpA Leadership Team (OpA-LR) includes a
balanced team made up of Functional SMEs and operational leaders
responsible for overseeing OpA deployment, conducting leadership
reviews and validated OpAs of plants within the appropriate
organization. OpA self-assessments (OpA-SA) are conducted by the
plants. Key Operating Factors (KOFs) are the “vital few”
short/medium term objectives or statements of fact, which influence
the important decisions and focus the entire organization.
OVERALL REQUIREMENTS
The term “overall requirements” refers to the topics Criteria users
need to address when responding to the central theme of an Item.
Overall requirements address the most significant features of the
Item requirements. In the Criteria, the overall requirements of each
Item are presented in one or more introductory sentences printed in
bold. This presentation is illustrated in the Item format shown in this
section: Item Format Guidelines, Figure 4.1.
PARENT
The term “parent” refers to organizational reporting relationship.
Examples include a business or divisional relationship to a plant, a
Group relationship to a business or division, the corporation’s
relationship to a Group, or the Group or corporation’s relationship
with a functional organization.
PARENT AND/OR CHILD
The term “parent and/or child” refers to organizational reporting
relationship. These relationships can flow upwards as a child or
downwards with the responsibility as the parent. An example may
be a business with child responsibility to the group and parent
responsibility for a plant.
PARTNERS
The term “partners” refers to those key organizations or individuals
who are working together with your organization to achieve a
common goal or to improve performance. Typically partnerships are
formal
or informal arrangements for a specific aim or purpose such as to
achieve a strategic objective or to deliver a specific product or
service.
Formal partnerships are usually for an extended period of time and
involve a clear understanding of the individual and mutual roles and
benefits for the partners.
PERFORMANCE
The term “performance” refers to output and outcomes obtained
from processes, products, services and customers that permit
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Section 4 | Glossary of Key Terms
evaluation and comparison relative to goals, standards, past results,
and other organizations. Performance can be expressed in
nonfinancial and financial terms.
The EBE Criteria address four types of performance: (1) customer-
focused, (2) product and service, (3) financial and marketplace, and
(4) operational.
“Customer-focused performance” refers to performance relative to
measures and indicators of customers’ (both internal and external)
perceptions, reactions, and behaviors. Examples include customer
retention, complaints, and customer survey results.
“Product and service performance” refers to performance relative to
measures and indicators of product and service characteristics
important to customers. Examples include product reliability, on-time
delivery, customer-experienced defect levels, and service response
time.
“Financial and marketplace performance” refers to performance
relative to measures of cost, revenue, and market position, including
asset utilization, asset growth, and market share. Examples include
returns on investments, value added per employee, debt to equity
ratio, returns on assets, operating margins, performance to budget,
cash-to-cash cycle time, other profitability and liquidity measures,
and market gains.
“Operational performance” refers to workforce, leadership,
organizational, and ethical performance relative to effectiveness,
efficiency, and accountability measures and indicators. Examples
include cycle time, productivity, waste reduction, workforce turnover,
workforce cross-training rates, regulatory compliance, fiscal
accountability, and community involvement. Operational
performance might be measured at the work unit level, key process
level, and organizational level.
PERFORMANCE EXCELLENCE
The term “performance excellence” refers to an integrated approach
to organizational performance management that results in
(1) delivery of ever-improving value to customers and stakeholders,
contributing to organizational continuity; (2) improvement of overall
organizational effectiveness and capabilities; and
(3) organizational and personal learning. The EBE Criteria for
Performance Excellence provide a framework and an assessment
tool for understanding organizational strengths and opportunities for
improvement and thus for guiding planning efforts.
PERFORMANCE PROJECTIONS
The term “performance projections” refers to estimates of future
performance. Projections may be inferred from past performance,
may be based on competitors’ or similar organizations’ performance
that must be met or exceeded, may be predicted based on changes
in a dynamic environment, or may be goals for future performance.
Projections integrate estimates of your organization’s rate of
improvement and change, and they may be used to indicate where
breakthrough improvement or innovation is needed. While
performance projections may be set to attain a goal, they also may
be predicted levels of future performance that indicate the
challenges your organization faces in achieving a goal. Thus,
performance projections serve as a key management-planning tool.
PROCESS
The term “process” refers to linked activities with the purpose of
producing a product or service for a customer (user) within or
outside the organization. Generally, processes involve combinations
of people, machines, tools, techniques, materials, and improvements
4.9
Section 4 | Glossary of Key Terms
in a defined series of steps or actions. Processes rarely operate in
isolation and must be considered in relation to other processes that
impact them. In some situations, processes might require adherence
to a specific sequence of steps, with documentation (sometimes
formal) of procedures and requirements, including well-defined
measurement and control steps.
In many service situations, particularly when customers are directly
involved in the service, process is used in a more general way, (i.e.,
to spell out what must be done, possibly including a preferred or
expected sequence). If a sequence is critical, the service needs to
include information to help customers understand and follow the
sequence. Such service processes also require guidance to the
providers of those services on handling contingencies related to the
possible actions or behaviors of those served.
In knowledge work such as strategic planning, research,
development, and analysis, process does not necessarily imply
formal sequences of steps. Rather, process implies general
understandings regarding competent performance, such as timing,
options to be included, evaluation, and reporting. Sequences might
arise as part of these understandings.
In the EBE Scoring System, your process achievement level is
assessed. This achievement level is based on four factors that can
be evaluated for each of an organization’s key processes: Approach,
Deployment, Learning, and Integration. For further description, see
EBE Scoring System in this section.
PRODUCTIVITY
The term “productivity” refers to measures of the efficiency of
resource use.
Although the term often is applied to single factors such as the
workforce (labor productivity), machines, materials, energy, and
capital, the productivity concept applies as well to the total resources
used in producing outputs. The use of an aggregate measure of
overall productivity allows a determination of whether the net effect
of overall changes in a process—usually involving resource
tradeoffs—is beneficial.
RESULTS
The term “results” refers to outputs and outcomes achieved
by an organization in addressing the requirements of an EBE
Criteria Item. Results are evaluated on the basis of current
performance; performance relative to appropriate comparisons; the
rate, breadth, and importance of performance improvements; and
the relationship of results measures to key organizational
performance requirements. For further description, see EBE Scoring
System in this section.
SEGMENT
The term “segment” refers to a part of an organization’s overall
customer, market, product or service line or workforce base.
Segments typically have common characteristics that can be
logically grouped. In Results Items, the term refers to disaggregating
results data in a way that allows for meaningful analysis of an
organization’s performance. It is up to each organization to
determine the specific factors that it uses to segment its customers,
markets, products, services, and workforce.
Understanding segments is critical to identifying the distinct needs
and expectations of different customer, market, and workforce
groups and to tailoring products, services, and programs to meet
their needs and expectations. As an example, market segmentation
might be based on geography, distribution channels, business
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volume, or technologies employed. Workforce segmentation might
be based on geography, skills, needs, work assignments, or job
classification.
SENIOR LEADERS
The term “senior leaders” refers to an organization’s senior
management group or team. In many organizations, this consists of
the head of the organization and his or her direct reports.
STAKEHOLDERS
The term “stakeholders” refers to all groups that are or might be
affected by an organization’s actions and success. Examples of key
stakeholders include customers, workforce, partners, governing
boards, stockholders, suppliers, regulatory bodies, policy makers,
and local/professional communities.
See also the definition of “CUSTOMER.”
STRATEGIC ADVANTAGES
The term “strategic advantages” refers to those marketplace benefits
that exert a decisive influence on an organization’s likelihood of
future success. These advantages frequently are sources of an
organization’s current and future competitive success relative to
other providers of similar products and services. Strategic
advantages generally arise from either or both of two sources:
(1) core competencies, through building and expanding on an
organization’s internal capabilities, and (2) strategically important
external resources, which are shaped and leveraged through key
external relationships and partnerships.
When an organization realizes both sources of strategic advantage,
it can amplify its unique internal capabilities by capitalizing on
complementary capabilities in other organizations.
See the definition of “STRATEGIC CHALLENGES” and “STRATEGIC
OBJECTIVES” for the relationship among strategic advantages,
strategic challenges and the strategic objectives an organization
articulates to address its challenges and advantages.
STRATEGIC CHALLENGES
The term “strategic challenges” refers to those pressures that exert a
decisive influence on an organization’s likelihood of future success.
These challenges frequently are driven by an organization’s future
competitive position relative to other providers of similar products or
services. While not exclusively so, strategic challenges generally are
externally driven. However, in responding to externally driven
strategic challenges, an organization may face internal strategic
challenges.
External strategic challenges may relate to customer or market
needs or expectations; product, service, or technological changes;
or financial, public and other risks or needs. Internal strategic
challenges may relate to an organization’s capabilities or its human
and other resources.
See the definition of “STRATEGIC ADVANTAGES” and “STRATEGIC
OBJECTIVES” for the relationship between strategic challenges,
strategic advantages and the strategic objectives an organization
articulates to address key challenges.
STRATEGIC OBJECTIVES
The term “strategic objectives” refers to an organization’s articulated
aims or responses to address major change or improvement,
competitiveness or public issues, and business advantages.
Strategic objectives generally are focused both externally and
internally and relate to significant customer, market, product,

service, or technological opportunities and challenges (strategic
challenges). Broadly stated, they are what an organization must
achieve to remain or become competitive and ensure long-term
continuity. Strategic objectives set an organization’s longer-term
directions and guide resource allocations and redistributions.
See the definition of “ACTION PLANS” for the relationship between
strategic objectives and action plans and for an example of each.
SYSTEMATIC
The term “systematic” refers to approaches that are well-ordered,
are repeatable and use data and information so learning is possible.
In other words, approaches are systematic if they build in the
opportunity for evaluation, improvement, and sharing, thereby
permitting a gain in maturity. For use of the term, see EBE Scoring
System in this section.
TRENDS
The term “trends” refers to numerical information that shows the
direction and rate of change for an organization’s results. Trends
provide a time sequence of organizational performance.
A minimum of three historical (not projected) data points generally is
needed to begin to ascertain a trend. More data points are needed
to define a statistically valid trend. The time period for a trend is
determined by the cycle time of the process being measured.
Shorter cycle times demand more frequent measurement, while
longer cycle times might require longer time periods before
meaningful trends can be determined.
Examples of trends called for by the Criteria include data related to
product and service performance, customer and workforce
satisfaction and dissatisfaction results, financial performance,
marketplace performance, and operational performance, such as
cycle time and productivity.
VALUE
The term “value” refers to the perceived worth of a product, service,
process, asset, or function relative to cost and to possible
alternatives.
Organizations frequently use value considerations to determine the
benefits of various options relative to their costs, such as the value
of various product and service combinations to customers (both
internal and external). Organizations need to understand what
different stakeholder groups value and then deliver value to each
group. This frequently requires balancing value for customers and
other stakeholders, such as your workforce and the community.
VALUE CREATION
The term “value creation” refers to work processes that produce
benefit for your customers and for your business. They are the work
processes most important to “running your business"—those that
involve the majority of your workforce and generate your products,
your services, and positive business results for your stockholders
and other key stakeholders.
VALUES
The term “values” refers to the guiding principles and behaviors that
embody how your organization and its people are expected to
operate. Values reflect and reinforce the desired culture of the
organization. Values support and guide the decision making of every
workforce member, helping the organization to accomplish its
mission and attain its vision in an appropriate manner. Examples of
values might include demonstrating integrity and fairness in all
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Section 4 | Glossary of Key Terms
interactions, exceeding customer expectations, valuing individuals
and diversity, protecting the environment, and striving for
performance excellence every day.
VALUES IN ACTION
The term “Values in Action” refers to the series of compliance
training classes offered by Eaton under the title “values in Action”
whether online through Eaton University, via web or teleconference,
or through in-person sessions. The Values in Action series is
designed to deliver required training on specific ethics and
compliance issues to targeted individuals. Training requirements
vary by function and region and are based on purposeful criteria.
Active participation in this training series is a key part of our
commitment to doing business right.
VISION
The term “vision” refers to the desired future state of your
organization. The vision describes where the organization is headed,
what it intends to be, or how it wishes to be perceived in the future.
VOICE OF THE CUSTOMER
The term “voice of the customer” refers to your process for capturing
customer-related information. Voice-of-the-customer processes are
intended to be proactive and continuously innovative to capture
stated, unstated, and anticipated customer requirements,
expectations, and desires. The goal is to achieve customer
engagement. Listening to the voice of the customer might include
gathering and integrating various types of customer data, such as
survey data, focus group findings, warranty data, and complaint data
that affect customers’ purchasing and engagement decisions.
WELLNESS
The term “wellness” refers to sites complying with the requirements
of the five pillars of Wellness: Know Your Numbers, Get Fit, Eat
Healthy, Manage Stress and Be Tobacco Free. In our effort to help
improve the lives and health of Eaton employees and their families,
Eaton is transforming to a culture of wellness. Taking action in these
areas could help prevent, and even reverse chronic illnesses.
WORK PROCESSES
The term “work processes” refers to your most important internal
value creation processes. They might include product design and
delivery, customer support, supply chain management, business,
and support processes. They are the processes that involve the
majority of your organization’s workforce and produce customer,
stakeholder, and stockholder value.
Your key processes frequently relate to your core competencies, to
the factors that determine your success relative to competitors, and
to the factors considered important for business growth by your
senior leaders.
WORK SYSTEMS
The term “work systems” refers to how the work of your organization
is accomplished. Work systems involve your workforce, your key
suppliers and partners, your contractors, and other components of
the supply chain needed to produce and deliver your products,
services, and business and support processes. Your work systems
coordinate the internal work processes and the external resources
necessary for you to develop, produce, and deliver your products
and services to your customer and to succeed in your marketplace.
Decisions about work systems are strategic. These decisions involve
protecting and capitalizing on core competencies and deciding what
4.11
Section 4 | Glossary of Key Terms
should be procured or produced outside your organization in order to
be efficient and sustainable in your marketplace.
WORKFORCE
The term “workforce” refers to all people actively involved in
accomplishing the work of your organization (e.g., permanent, part-
time, temporary, and telecommuting employees, as well as contract
employees supervised by the organization). The workforce includes
team leaders, supervisors, and managers at all levels.
WORKFORCE CAPABILITY
The term “workforce capability” refers to your organization’s ability to
accomplish its work processes through the knowledge, skills,
abilities, and competencies of its people.
Capability may include the ability to build and sustain relationships
with your customers; to innovate and transition to new technologies;
to develop new products, services, and work processes; and to meet
changing business, market, and regulatory demands.
WORKFORCE CAPACITY
The term “workforce capacity” refers to your organization’s ability to
ensure sufficient staffing levels to accomplish its work processes
and successfully deliver your products and services to your
areas, as appropriate. Results also should include indicators of
support for key communities and other public purposes.
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customers, including the ability to meet seasonal or varying demand
levels.
WORKFORCE ENGAGEMENT
The term “workforce engagement” refers to the extent of workforce
commitment, both emotional and intellectual, to accomplishing the
work, central purpose, and vision of the organization. Organizations
with high levels of workforce engagement are often characterized by
high-performing work environments in which people are motivated to
do their utmost for the benefit of their customers and for the success
of the organization.
In general, members of the workforce feel engaged when they find
personal meaning and motivation in their work and when they
receive positive interpersonal and workplace support. An engaged
workforce benefits from trusting relationships, a safe and
cooperative environment, good communication and information flow,
empowerment, and performance accountability. Key elements
contributing to engagement include training and career
development, effective recognition and reward systems, equal
opportunity and fair treatment, effective communication, and a
performance management system.

EBE Scoring System
The scoring of responses to Criteria Items (Items) and applicant
feedback are based on two evaluation dimensions: (1) PROCESS and
(2) RESULTS. Criteria users need to furnish information relating to
these dimensions. Specific factors for these dimensions are
described below. Evaluation Guidelines can be found in this section.
“PROCESS” refers to the methods your organization uses and
improves to address the Item requirements in Categories 1-6. The
four factors used to evaluate process are APPROACH, DEPLOYMENT,
LEARNING, and INTEGRATION (A-D-L-I).
“APPROACH” (A) refers to:
● The methods used to accomplish the PROCESS
● The appropriateness of the methods to the Item requirements
● The effectiveness of your use of the methods
● The degree to which the APPROACH is repeatable and based on
reliable data and information (i.e., SYSTEMATIC)
“DEPLOYMENT” (D) refers to the extent to which:
● Your APPROACH is applied in addressing Item requirements
relevant and important to your organization
● Your APPROACH is applied consistently
● Your APPROACH is used by all appropriate work units
“LEARNING” (L) refers to:
● Refining your APPROACH through cycles of evaluation and
improvement
● Encouraging breakthrough change to your APPROACH through
INNOVATION
● Sharing of refinements and INNOVATIONS with other relevant
work units and PROCESSES in your organization
“INTEGRATION” (I) refers to the extent to which:
● Your APPROACH is ALIGNED with your organizational needs
identified in the Organizational Profile and other PROCESS Items
● Your MEASURES, information, and improvement systems are
complementary across PROCESSES and work units
● Your plans, PROCESSES, RESULTS, ANALYSIS, LEARNING, and
actions are harmonized across PROCESSES and work units to
support organization-wide GOALS
“RESULTS” refers to your organization’s outputs and outcomes in
achieving the requirements in Items 7.1-7.6. The four factors used to
evaluate results are PERFORMANCE LEVELS, TRENDS, Comparisons,
and INTEGRATION.
“PERFORMANCE LEVELS” (Le) refers to:
● Your current level of performance
“TRENDS” (T) refers to:
● The rate of your PERFORMANCe improvements or the
sustainability of good PERFORMANCE (i.e., slope of TREND data)
● The breadth (i.e., the extent of DEPLOYMENT) of your
PERFORMANCE RESULTS
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Section 4 | EBE Scoring System
“Comparisons” (C) refers to:
● Your PERFORMANCE relative to appropriate comparisons such
as competitors or organizations similar to yours
● Your PERFORMANCE relative to BENCHMARKS or industry leaders
“INTEGRATION (Importance)” (I) refers to the extent to which:
● Your RESULTS MEASURES (often through SEGMENTATION)
addresses important CUSTOMER, product and service, market,
PROCESS, and ACTION PLAN PERFORMANCE requirements
Identified in your Organizational Profile and in PROCESS items
● Your RESULTS include valid INDICATORS of future PERFORMANCE
● Your RESULTS are harmonized across PROCESSES and work
units to support organization-wide GOALS
Item Classification and Scoring Dimensions
Items are classified according to the kinds of information and/or data
you are expected to furnish relative to the two evaluation dimensions
given above.
The two types of Items are designated as:
1. PROCESS
2. RESULTS
In PROCESS Items, APPROACH, DEPLOYMENT, LEARNING,
INTEGRATION are linked to emphasize that descriptions of APPROACH
should always indicate the DEPLOYMENT—consistent with the
specific requirements of the Item. As PROCESSES mature, their
description also should indicate HOW cycles of learning (including
INNOVATION), as well as INTEGRATION with other PROCESSES and
work units, occur. Although the A-D-L-I factors are linked, feedback
to applicants reflects strengths and/or opportunities for improvement
in any or all of these factors.
RESULTS Items call for data showing PERFORMANCE LEVELS,
TRENDS, and relevant comparisons for KEY MEASURES AND
INDICATORS of organizational PERFORMANCE, and INTEGRATION with
KEY organizational requirements reported. RESULTS Items also call
for data on breadth of the PERFORMANCE RESULTS reported. This is
directly related to DEPLOYMENT and organizational LEARNING; if
improvement PROCESSES are widely shared and deployed, there
should be corresponding RESULTS. A score for a RESULTS Item is
thus a composite based upon overall PERFORMANCE, taking into
account the four RESULTS factors (Le-T-C-I).
“Importance” as a Scoring Consideration
The two evaluation dimensions described previously are critical to
evaluation and feedback. A critical consideration in evaluation and
feedback is the importance of your reported PROCESS and RESULTS
to your specific organizational conditions and requirements. The
areas of greatest importance should be identified in your
Organizational Profile and in Items such as 2.1, 2.2, 3.1, 5.1, 5.2,
and 6.1. Your KEY CUSTOMER (internal and external) requirements,
competitive environment, WORKFORCE needs, KEY STRATEGIC
OBJECTIVES, and ACTION PLANS are particularly important.
4.13
Section 4 | EBE Scoring System

● A PROCESS Item score of 50 percent represents an APPROACH

that meets the OVERALL REQUIREMENTS of the Item, that is
deployed consistently and to most work units, that has been
through some cycles of improvement and LEARNING, and that
addresses the KEY organizational needs. Higher scores reflect
greater achievement, demonstrated by broader DEPLOYMENT,
significant organizational LEARNING, and increased
INTEGRATION.
● A RESULTS Item score of 50 percent represents a clear
indication of good LEVELS of PERFORMANCE, beneficial TRENDS,
and appropriate COMPARATIVE DATA for the RESULTS areas
covered in the Item and important to the organization’s
business or MISSION. Higher scores reflect better improvement
TRENDS and LEVELS of PERFORMANCE, stronger comparative
PERFORMANCE, and broader coverage and INTEGRATION with
the requirements of the business or MISSION.

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 Section 4 | EBE Scoring System

Item Format Guidelines

The Item format (Figure 4.1 below) shows the different parts of
Items, the role of each part, and where each part is placed. It is
especially important to understand the MULTIPLE REQUIREMENTS
contained in the Areas to Address. The Item notes are an aid to help
you understand the Areas to Address. Each Item and Area to
Address is described in greater detail in the Category and Item
Descriptions section. Each Item is classified as either PROCESS or
RESULTS, depending on the type of information required.
Item requirements are presented in question format. Some of the
requirements in the Areas to Address include multiple questions.
Responses to an Item should contain responses that address all
questions; however, each question need not be answered
separately. Responses to multiple questions within a single Area to
Address may be grouped, as appropriate, to your organization.
These multiple questions serve as a guide in understanding the full
meaning of the information being requested.

Figure 4.1

Item Number Item Title Item Point Value

Basic Item
requirements
expressed in
Item Title

Overall Item EBS requirement

requirements stated below
expressed as Criteria question
specific topics applies only to
users need that question
to address

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

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Section 4 | EBE Scoring System

Evaluation Guidelines
For Use With Categories 1-6

Score Process

● No systematic approach to Item requirements is evident; information is ANECDOTAL. (A)

0%
● Little or no DEPLOYMENT of any SYSTEMATIC APPROACH is evident. (D)
or
● An improvement orientation is not evident; improvement is achieved through reacting to problems. (L)
5%
● No organizational ALIGNMENT is evident; individual areas or work units operate independently. (I)

● 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)

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 Section 4 | EBE Scoring System

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)

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Section 4 | EBE Scoring System

Steps Toward Mature PROCESSES

An Aid for Scoring PROCESS Items

(1) Reacting to Problems (0-25%) (2) Early SYSTEMATIC APPROACHES (30-45%)

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.

(3) ALIGNED APPROACHES (50-65%) (4) INTEGRATED APPROACHES (70-100%)

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.

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 Section 4 | EBE Scoring System

An Analogy for LEARNING: From Fighting

Fires to INNOVATION
LEARNING is an essential attribute of HIGH-PERFORMING organizations
and, therefore, a critical concept in PERFORMANCE excellence. It is a
KEY term used throughout the Criteria booklet and is one of the four
scoring factors used to assess the maturity of an organization’s
PROCESSES.
EFFECTIVE, well deployed organizational LEARNING can help an
organization improve from the early stages of reacting to problems
(0-5% in the Evaluation Guidelines) to the highest levels of
organization-wide improvement, refinement, and INNOVATION (70-
100%). The firefighting analogy illustrated here depicts a
progression through the LEVELS of maturity for this scoring
dimension. Reacting to the problem
Run with the hose and put out the fire. (0-5%)

General improvement orientation SYSTEMATIC evaluation and improvement

Install more fire hoses to get to the fires quickly Evaluate which locations are most susceptible to
and reduce their impact. (10-25%) fire. Install heat sensors and sprinklers in those
locations. (30-45%)

LEARNING and strategic improvement Organizational ANALYSIS and INNOVATION

Install system wide heat sensors and a sprinkler Use fireproof and fire-retardant materials. Replace
system that is activated by the heat preceding combustible liquids with water-based liquids.
fires. (50-65%) Sensors and sprinklers become the secondary line
of protection, with prevention the primary
APPROACH for protection. (70-100%)

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Section 4 | EBE Scoring System

Notes

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Confidential and proprietary information for internal use only; not to be disclosed outside Eaton. © 2015 Eaton Corporation. All Rights Reserved.