Más contenido relacionado La actualidad más candente (20) Similar a How Organizational Chaos Destroys Improvement Initiatives & What to Do to Prevent It (20) How Organizational Chaos Destroys Improvement Initiatives & What to Do to Prevent It1. How Organizational Chaos Destroys
Improvement Initiatives &
What to Do About It
Karen Martin
SME CONNECT
September 12, 2012
3. Topics
• Why Lean, Six Sigma, and other improvement
efforts don’t deliver the results you want and
need.
• The four fundamental conditions for outstanding
performance—and how their opposing conditions
are preventing you from moving forward.
• How to instill CLARITY, FOCUS, DISCIPLINE, and
ENGAGEMENT into your organization’s DNA,
enabling success.
© Karen Martin & Associates, LLC
4. Success with Improvement
2001 – The Economist
70%
63%
60%
50%
40%
30%
20% 17% 20%
10%
0%
None Temporary Lasting
© Karen Martin & Associates, LLC 4
5. …A Decade Later
2010 – Accenture
80%
70% 69%
60% 58%
50%
40%
33%
30%
20%
10%
0%
“Mixed” to Minimal Needs re‐evaluation,
“disappointing” financial restart or complete
results impact makeover
© Karen Martin & Associates, LLC 5
6. To Err is Human
Institute of Medicine, 1999
Up to 98,000 deaths
annually due to
medical errors.
8th leading cause of
death in U.S.
© Karen Martin & Associates, LLC 6
8. To Err is Human
Institute of Medicine, 1999
98,000 lives lost
Improvement Goal:
Reduce by 50%
in 5 years.
8
10. Something Is Terribly Wrong…
33% hospitalized
180,000 Medicare
patients are harmed;
patients die annually
7% result in permanent
Progress has been from medical errors.
injury or death.
slow. Office of the Inspector
General Health Affairs
Journal of the American
Medical Association 2009 2010
2005 Annual death toll 2010 No significant change 2011
from medical in rate of
errors is closer to preventable errors.
200,000. New England Journal of
Dead by Mistake Medicine
Heart Newspapers
Special Report
10
© Karen Martin & Associates, LLC
12. We need to
improve
how we improve.
12
© Karen Martin & Associates, LLC
15. Mindsets &
Behaviors
that Reduce
Chaos
© Karen Martin & Associates, LLC
17. Clarity
Engagement Focus
Discipline
© Karen Martin & Associates, LLC
18. How Does Your Organization Rate?
1. Clarity – Truthful, accurate, timely, relevant,
unambiguous information.
2. Focus – Avoiding unnecessary distraction;
organizational consensus around priorities and
consistent follow‐through.
3. Discipline – One known way to do work,
manage & make decisions; processes that are
continuously measured and improved.
4. Engagement – Workforce is eager to come to
work each day and leave each day feeling
creatively, intellectually, and emotionally
fulfilled.
© Karen Martin & Associates, LLC
21. How Does Your Organization Rate?
1. Business Goals & Priorities – What are you striving for?
What’s important to accomplish THIS year?
2. Customers & Products – Who are your customers? What
value do you deliver to them (e.g. which problems of theirs
are you solving?)
3. Roles & Responsibilities – Who delivers value and
supports the deliver of value? Who do you go to for what?
Who needs to be involved in each decision?
4. Process performance – How does work get done? How
well are you performing? How should you be performing?
5. Problems – Do you avoid attempting to solve problems
until the problems and the root causes for them are clear?
6. Communication – Do you refer to forms, depts, projects,
products and processes by the same term? Do your
acronyms confuse or clarify?
© Karen Martin & Associates, LLC
24. Key Process Metrics: Quality
• %Complete and Accurate (%C&A)
– % of incoming work that’s “usable as is”; the downstream
customer can perform task without reworking (“CAC”):
• Correct information or material that was supplied
• Add information that should have been supplied
• Clarify information that should have or could have been clearer
– Determined by the person receiving the input; metric goes
on the output block.
– Measured by the immediate downstream customer and all
subsequent downstream customers
© 2012 Karen Martin & Associates, LLC 24
25. How clear is the information
needed to perform work?
Customer
Process Process Process Process
1 2 3 4
25
© Karen Martin & Associates, LLC
26. Measuring In‐Process Quality
Customer
%C&A = 50%
Step 1 Step 2 Step 3 Step 4
%C&A = %C&A = %C&A = %C&A =
75% 80% 99% 80%
%C&A is placed on the output step
Rolled %C&A = 24%
© Karen Martin & Associates, LLC 26
27. How are you performing?
Gray – Highest industry quality scores
Purple – Median industry quality scores
Blue – Our quality scores
27
28. “Going to the gemba
has been life changing
for me as a leader.”
‐ Ginny Cattaneo, Sr. VP, Franklin
Templeton Investor Services
© Karen Martin & Associates, LLC 28
29. Truth
Truth
Truth
Truth
Truth
Truth
Truth
Truth
© Karen Martin & Associates, LLC
Truth 29
31. Booz & Company Findings
90%
82%
80%
70%
64%
60%
49%
50%
40%
30%
20%
10%
0%
No written Conflicting Competing
priorities priorities demands
© Karen Martin & Associates, LLC 31
32. “The difference between successful people
and very successful people
is that very successful people
say no
to almost everything.”
— Commonly attributed to Warren Buffett
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© Karen Martin & Associates, LLC
34. The Master of Focus
“…saying no to 1,000 things to
make sure we don’t get on the
wrong track or try to do too
much. We’re always thinking
about new markets we could
enter, but it’s only by saying no
that you can concentrate on
the things that are really
important.”
— Steve Jobs
© Karen Martin & Associates, LLC 34
35. To create new
ideas is a gift, but
to choose
wisely is a skill.
‐ Ryan Morgan
© Karen Martin & Associates, LLC 35
37. Timed Activity
Focus reduces chaos.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Round 1 – Letter, number, letter, number: F, 1, O, 2, C, 3, etc.
Round 2 – full sentence, followed by numbers 1‐17
© Karen Martin & Associates, LLC 37
38. Improve Productivity through Greater Focus
Productivity (Pounds Produced / Hr Worked)
115.0
Pactiv
108.0
Implements
Strategy 105.9
Deployment
101.0
95.2
94.0 93.0
90.6
87.0 86.3
84.8
80.0
FY '06 FY '07 FY '08 FY '09 FY '10 YTD '11
© Karen Martin & Associates, LLC 38
39. Company ABC
Product Launches Per Year
80
73
70
60 No additional
resources;
50 higher quality
40 products
launched
30
24
20
10
0
Pre‐Focus Post‐Focus
© Karen Martin & Associates, LLC 39
40. Rockwell Automation
25
20
20 Projects
15 Started
12 12
10 Projects
5 Completed
3
0
Pre‐Focus Post‐Focus
40
© Karen Martin & Associates, LLC
42. Create an Annual Work Plan
1. Gain clarity and consensus around overarching
business needs.
2. List everything you could do (and that you are doing).
3. Categorize into:
– “Must‐do, can’t fail”
– Maybe
– Eliminate
4. Decide what you will do – prioritize “maybe’s”; gain
consensus.
5. Create plan.
6. Manage plan via weekly updates (may be able to
reduce to monthly reviews – but be careful!).
42
© Karen Martin & Associates, LLC
44. Prioritization Grid
1
2
3
Easy
Ease of Implementation
4
5
6
7
8
9
10
Difficult
11
12
13
14
15
Low High
© Karen Martin & Associates, LLC Anticipated Benefit
45. Downloadable Excel Prioritization Chart
The Outstanding Organization: Achieving Focus
Chart Title Prioritization Chart To use this Template:
1) Enter the title of the chart in Cell B2
Number of Items 5 2) Enter the number of items (e.g. projects, improvement activities, etc.) in cell B4
4 3) Enter the item name and ranking information into A8-D8 and so on.
Organizational Degree of
Item Name Benefit Execution Ease Urgency*
Item 1 9 1 1 Prioritization Chart
Item 2 7 3 2
10
Item 3 5 5 3
Item 4 3 7 4 9
Item 5 1 9 5
8
7
Execution Ease
6
5
4
3
2
1
0
0 1 2 3 4 5 6 7 8 9 10
Organizational Benefit
* Degree of urgency is indicated by bubble size.
www.ksmartin.com/the‐outstanding‐organization
www.scribd.com/doc/101695938/Prioritization‐Chart
© Karen Martin & Associates, LLC
46. Annual Improvement Plan
Company ABC
Priorities
FY 2012 FY 2013 Exec Tactical
Priority Others
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Owner Owner
MS‐2
MS‐1
Integrate DHR Begin Acct Brad P
Ops
Complete
Complete New
Travel Program Begin Complete Scott R Fred S
Roll‐out
Roll‐out Tablets to Begin &
Brad P
Installation Complete
Lisa D,
Complete 360 Marina,
Begin Complete Justin C Steve R
Roll‐out SM, Tech,
Hal, Doug
Create Line‐item
Begin Complete Lisa B Mark C
P.O.s
Refinance credit
Begin Scott R
facility
Complete ADP
Begin Complete Gary O
Roll‐out
Not
Develop & Roll‐out MS‐1 MS‐2 MS‐3
Begin complete Steve C TBD
Handheld 2.2 Clean Code Pilot Go live
until 2013
Complete GPS RDs Cons.,
Begin Complete Steve C
Roll‐out HR, Fleet
Complete "River"
(One Soft) Begin Complete Lisa B
Roll‐out
Develop Safety
Begin Complete Gary O
Program
© Karen Martin & Associates, LLC 46
47. Strategy Deployment Key Feature:
Catchball
What?
How? Executive
Who? Team
When?
What?
How? Senior
Who? Mgmt
When?
What?
How? Middle
Who? Mgmt
When?
What?
How? Frontlines
Who?
When?
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© Karen Martin & Associates, LLC
49. Avoiding the “Shiny Ball Syndrome”
Requires the 3 C’s:
• Clarity – about what really
matters.
• Consensus – about what
really matters.
• Courage – to actively
choose to “not do” or “not
do now.”
© Karen Martin & Associates, LLC 49
53. Discipline:
A deliberate practice
repeatedly performed.
Discipline = Consistency
© Karen Martin & Associates, LLC
54. Practice vs. Performance
Perform
Train 99%
100% 90%
90%
80%
70%
60% Train
50% Perform
40%
30% Perform
20% 10% Train
1%
10%
0%
Athletes Businesses
Jim Loehr & Tony Schwartz,
The Power of Full Engagement
© Karen Martin & Associates, LLC 54
56. Areas in Business & Government
That Benefit from a Disciplined Approach
• Planning
• Decision making
• Executing
• Problem Solving & Improving
• Managing processes
© Karen Martin & Associates, LLC
60. Clarifying the PDSA Cycle
Phase Detailed Steps
New
1. Define and break down the problem.
Problem
50‐80% 2. Grasp the current condition.
of the Develop
Plan 3. Set a target condition.
total Hypothesis
4. Conduct root cause & gap analysis.
time
Continuous
5. Identify potential countermeasures. Improvement
6. Develop & test countermeasure(s)
Conduct
Do 7. Refine and finalize countermeasure(s).
Experiment
8. Implement countermeasure(s).
Evaluate
Study 9. Measure process performance.
Results
10. Refine, standardize, & stabilize the process.
Refine
Adjust Standardize 11. Monitor process performance.
Stabilize
12. Reflect & share learning.
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61. Developing PDSA Capabilities
Complex • A3 Management
• Kaizen Events
• Daily Kaizen (Improvement &
Simple
Coaching Kata)
© Karen Martin & Associates, LLC 61
62. Areas in Business & Government
That Benefit from a Disciplined Approach
• Planning
• Decision making
• Executing
• Problem Solving & Improving
• Managing Processes
© Karen Martin & Associates, LLC
63. Standard Work Practices (Discipline) Produce
Consistent Results
R1
Inconsistent
People or Approaches R2
Inconsistent
Equipment R3 Results
R4
Standardized Work
People or Consistent
Equipment Results
© Karen Martin & Associates, LLC
64. Every key process…
2‐5 Key Performance Indicators
Monitored Continually
© Karen Martin & Associates, LLC 64
65. Processes MUST be Clearly Documented,
Monitored & Improved
Current State Metrics-Based Process Map
PT Units Process Details Mapping Team
Seconds Hours Process Name Order Fulfillment Dianne O'Shea Ryan Austin
Minutes Days Specific Conditions Domestic orders through sales force Sean Michaels Mary Townsend
LT Units Occurrences per Year 37,500 Sam Parks
Seconds Hours Hours Worked per Day 8 Paul Dampier
Minutes Days Date Mapped 26-Nov-07 Michael Prichard
Step # ? 6 7 8 9
Function /
Department Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT
Customer
Notify customer
Fax PO to
Sales Rep Approve PO 15 240 100% 5 20 100% when they can 15 300 95%
Account Manager
expect delivery
Review and
Account Manager approve PO; send 5 240 100%
to Order Entry
Enter order into
Order Entry 10 240
SAP
Finance / Credit
66. We need to shift our focus from
managing people
to managing processes.
66
© Karen Martin & Associates,
LLC
67. Criteria for “Minding the Store”
• All processes MUST have a process owner.
– Closer than farther from the work.
– Recognized as having the authority to lead
improvement.
• 2‐5 KPIs for every major process.
• Frequent measurement.
• Visual display of the results.
• Relentless pursuit of problems and/or “raising
the bar” (continuous improvement).
© Karen Martin & Associates, LLC 67
73. Signs that You’re Disrespecting the Workforce
1. Employees aren’t actively engaged in determining how
work is done, making improvement and planning for the
future.
2. If someone makes a mistake, you blame the person
versus your systems and processes.
3. Employees lack the skills to feel confident and display
competence and you haven’t provided ample training
and development.
4. You don’t provide ongoing, effective coaching.
5. Your processes don’t allow employees to be successful.
6. Employees aren’t clear about organizational goals and
priorities.
7. You’re not honest and/or omit important information.
© Karen Martin & Associates, LLC
75. Places to Start…
1. Develop an intolerance for ambiguity.
2. Prioritize your work; reduce the number of
active projects at once.
3. Ban electronic devices from meetings.
4. Adopt a problem‐solving methodology and
deploy it broadly; get a coach!
5. Document, standardize and improve all major
processes with significant involvement of the
workers themselves.
6. Identify process owners and KPIs for each.
© Karen Martin & Associates, LLC 75
78. Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Twitter: @karenmartinopex
Subscribe: www.ksmartin.com/subscribe
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