Más contenido relacionado La actualidad más candente (20) Similar a Lean and the Corporate Agenda with Guest Jacob Stoller (20) Lean and the Corporate Agenda with Guest Jacob Stoller2. Consultant: We help organizations in all
industries deploy Lean & build outstanding
organizations.
Author & Speaker:
Karen Martin, President
The Karen Martin Group Inc.
@karenmartinopex
2
www.ksmartin.com/subscribe
4. Welcome to the
land of corporate
agendas, where
things aren’t
always as we’d
like them to be!
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© 2015 Jacob Stoller
5. Today we will explore…
• The basic language of corporate agendas
• Six schools of corporate thinking that stifle lean
• Examples of how lean leaders changed the
game
• How you can join the conversation about the
needs of your leaders and your business
© 2015 Jacob Stoller
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6. © 2015 Jacob Stoller
• Define expectations.
• Determine
compensation.
Corporate agendas matter because they…
And they must change for lean to
go enterprise wide.
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7. © 2015 Jacob Stoller
Much of the agenda is about trying to control
how outsiders will judge the organization.
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8. © 2015 Jacob Stoller
Money will
always be an
underlying
issue in every
corporate
agenda.
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9. © 2015 Jacob Stoller
A few words about not-for-profits…
Yes, this means you!
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10. Proper Financial Priorities
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1. Grow Margins
(Profit)
2. Grow Top Line
(Gross Sales)
0
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4
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2011 2012 2013 2014
Gross Sales
Expenses
Profit
From The Karen Martin Group,
Lean And Your Top & Bottom Lines
11. © 2015 Jacob Stoller
Improving the financial picture
Revenue
Future
Costs
Variable
Costs
Fixed Costs
$ $ $$
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12. © 2015 Jacob Stoller
It’s not just money –
balanced scorecard approach
Vision &
Strategy
Financial
Internal
Business
Processes
Learning &
Growth
Customer
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13. © 2015 Jacob Stoller
Executive measurement tools
Objectives Where are we going?
Key Performance Indicators
(KPIs)
How do we measure
success?
Targets How much is enough?
Initiatives How do we get there?
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14. © 2015 Jacob Stoller
Financial
Objective: Reduce operating expenses
KPI: Material costs
Target: Reduce by 6%
Initiative: Get volume discounts
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15. © 2015 Jacob Stoller
Internal Business Processes
Objective: Streamline accounting department
KPI: Days to close at month end
Target: Reduce from 12 to 10
Initiative: New accounting software
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16. © 2015 Jacob Stoller
Learning & Growth
Objective: Improve morale
KPI: Employee satisfaction percentage
Target: Increase from 80% to 85%
Initiative: Employee newsletter, special events
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17. © 2015 Jacob Stoller
Customer
Objective: Increase market share
KPI: Net promoter score
Target: Increase by 5 points
Initiative: Customer service training
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20. © 2015 Jacob Stoller
The challenge is that a
lot of non-lean thinking
gets embedded in these
measurements.
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21. Non-Lean thinking
1. Short-term focus
2. Either/or thinking
3. Disrespect for gemba & people who work there
4. Segmentation of purpose
5. Blind faith in automation & technology
6. Using GAAP accounting to run the business
© 2015 Jacob Stoller
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22. 1. Short-term focus
• Obsession with annual,
quarterly, monthly results.
• Shareholder value is the law.
• More emphasis on deal
making.
© 2015 Jacob Stoller
Lean is a long-term strategy.
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23. © 2015 Jacob Stoller
2. Either / or thinking
Cost
Profitability
Quality
Market Share
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24. © 2015 Jacob Stoller
Roots of either / or thinking
Michael Porter’s competitive strategy matrix
Nature of Competitive Advantage
Broad
Scope
Narrow
Scope
DifferentiationLow Cost
Focused
Low Cost
Focused
Differentiation
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25. Lean says…
© 2015 Jacob Stoller
We can improve these
things simultaneously
through continuous
improvement.
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26. 3. Disrespect for gemba and people
who work there
© 2015 Jacob Stoller
Innovate Produce Sell
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27. Lean says…
© 2015 Jacob Stoller
Production creates the
value that people pay us
for.
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28. 4. Segmentation of purpose
© 2015 Jacob Stoller
R & D Production Customer
Service
Sales
KPIs
≠ KPIs ≠ KPIs
≠ KPIs
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30. 5. Blind faith in automation
and technology
• Paving cow
paths
• Locking in
waste
© 2015 Jacob Stoller
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32. 6. Using GAAP accounting
to run the business
© 2015 Jacob Stoller
Shame and blame
Hold
managers
accountable
for variances
Compare
projected
against actual
Manage to
targets
Forecast and
Set Targets
January February March April?
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35. Art Byrne’s 10-Year Transformation
at Wiremold
© 2015 Jacob Stoller
Up 14
Times
Operating
Income
Gross
Profit
$30M
to
$770M
38%
to
53%
Valuation
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36. Art’s Value Stream Metrics
Metric (KPI) Calculation
Customer Service Percentage % of orders delivered on time
Productivity Sales / worker hours
Quality Reduction in defects over previous year
Inventory turns Cost of sales / average value of inventory
Visual control Measured by quality team
© 2015 Jacob Stoller
There’s no room for
segmentation of purpose or either / or.
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37. Art vs. short term thinking
• “From 3 to 20?”
• The big leap of faith
© 2015 Jacob Stoller
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38. Art vs. GAAP Accounting
© 2015 Jacob Stoller
Real numbers,
simple format
(Orry Fiume)
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39. Art didn’t manage the gemba,
he managed in the gemba.
• Respect
• Empowerment
• Trust
© 2015 Jacob Stoller
“Your people are your only asset that appreciates.”
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40. Thedacare – Dr. John Toussaint
Architect of a new management system for healthcare
© 2015 Jacob Stoller
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42. In healthcare, either / or spells disaster.
© 2015 Jacob Stoller
Defects cost lives…
So do delays.
Together they account
for 30% - 40% of total
healthcare spend.
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43. To solve healthcare’s thousands
of problems, we need thousands
of problem solvers.
© 2015 Jacob Stoller
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44. Segmentation of purpose is a show stopper,
calling for a re-think of physician autonomy.
• Safety over authority
• Work standards apply
to everybody
© 2015 Jacob Stoller
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45. Northwest Center – Tom Everill
© 2015 Jacob Stoller
Adding social purpose to the
corporate agenda
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“What I noticed in the corporate
world is that nothing is impossible.”
46. The initial assumption
© 2015 Jacob Stoller
“Companies can either make profit
or employ people with disabilities.”
?Profit Social Purpose
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49. Results…
• All divisions profitable.
• Revenues up 500% in 3 years.
• Tom hopes other employers
will “get it” and put him out
of business.
© 2015 Jacob Stoller
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50. Looking ahead…
• Lots of lean activity
since 2008.
• Lean slowly gaining
ground in business
schools.
• Better dialogue
between lean and
non-lean worlds.
© 2015 Jacob Stoller
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51. The tide may be turning on…
• Shareholder value
• Accounting practices
• Tolerance of waste
• Hierarchical management
© 2015 Jacob Stoller
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52. • Study lean as a management system.
• Learn about business issues in your sector.
• Join the broader conversation.
© 2015 Jacob Stoller
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53. At the end of the day….
© 2015 Jacob Stoller
Lean has
better answers!
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