Daily Management Systems
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These are the slides for the webinar held on August 22, 2017.
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Daily Management Systems
- 1. © 2015 The Karen Martin Group, Inc. 1
- 4. 4 Webinar Participants by Industry Accounting Advertising/Marketing/PR Aerospace & Defense Banking & Securities Call Center Outsourcing Consulting Education Energy, Chemical, Utilities Financial Services - Other Government - Federal Government - State & Local High Tech - Hardware High Tech - ISP High Tech - Other Hospital, Clinic, Doctor Office Hospitality, Travel, Tourism Insurance Manufacturing Medical, Pharma, Biotech Other Real Estate Retail Software - Finance Software - Healthcare Software - Other Telecommunications Transportation & Distribution Other Government – State & Local Healthcare Consulting Manufacturing Pharma & Biotech Energy, Chemical Financial Services Gov’t -Federal
- 5. © 2017 The Karen Martin Group, Inc. 5 Frequent Frontline Reactions to “Huddles”
- 6. STRATEGY & STRATEGY DEPLOYMENT Where do we want to play and how are we going to get there? Focus and leadership alignment is key; reduce task switching. PROCESS & WORK ENVIRONMENT DESIGN Strive for customer-defined value and waste elimination. Strong emphasis on standard work and visual management. DAILY MANAGEMENT Managing to standard work and work standards. Assure that every employee can be successful. PROBLEM SOLVING & CONTINUOUS IMPROVEMENT Disciplined approach that results in better and longer-lasting results. The people who do the work are the experts. LEAN MANAGEMENT SYSTEM OVERVIEW THINKING SYSTEM PROCESS & WORK ENVIRONMENT DESIGN STRATEGY & STRATEGY DEPLOYMENT PROBLEM SOLVING & CONTINUOUS IMPROVEMENT DAILY MANAGEMENT
- 7. © 2017 The Karen Martin Group, Inc. 7
- 8. 8 Management: Defined To control or adjust a process to a plan or expectation. To change the natural course of a process to achieve a desired outcome.
- 9. Purpose of Daily Management Systems (DMS) • Check regularly • Solve problems regularly • Support people in the process • Engage everyone in the process • Create a visual means to manage work (and the work environment) © 2017 The Karen Martin Group, Inc. 9
- 10. Manage processes, not people © 2016 The Karen Martin Group, Inc. 10
- 11. Achieving Consistent Performance: Standard Work 11 Standard work is the wedge that keeps us from back-sliding Improvement Universal Law of Entropy All systems need continuous maintenance to keep them operating at their optimal levels
- 12. Standard Work for Everything 12
- 13. Daily Management System (DMS) Components Area Readiness Performance to KPIs Problem Solving Quick Hits Bigger Problems Communication
- 14. Daily Management System (DMS) Components Area Readiness Performance to KPIs Problem Solving Quick Hits Bigger Problems Communication
- 15. Strategy Deployment (Hoshin Kanri) • Builds consensus around TRUE NORTH • Creates organization-wide focus on solving what matters most
- 16. 16 Sample Strategy Deployment Annual Plan 1 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Nurs Fac CEO Fin MDs WH Corp Proc Anc 1 Bob Dana 2 3 3 3 2 3 3 1 1 3 2 Bob Michael 1 3 1 1 3 3 1 1 1 3 Rose Tim 3 4 Rose Josh 2 3 3 2 5 Howard Michael 1 3 2 3 3 6 Howard Mike 2 2 3 7 Neall Joanne 3 1 1 2 3 3 8 Neall James 1 2 3 3 3 9 Jim Howard 2 2 10 Jim Mark 2 3 3 3 11 Susan Susan 3 1 3 3 2 12 Susan Deidre 3 2 2 2 X = Planned 2018 Strategy Deployment Priorities FY 2018 Goals 4 3 Created: Revised: Level of Effort/Involvement Required Problem to be Solved; Initiative/Priority Measurable Objectives Executive Owner Board review dates: Tactical Owner ● = Actual Logo
- 17. Corporate KPIs © 2017 The Karen Martin Group, Inc. 17 3
- 18. Achieving Organizational Alignment: KPIs are linked © 2017 The Karen Martin Group, Inc. 18 Division Division Division Organization Dept. Dept Dept Dept Dept DeptDept Dept
- 19. Active Problem Solving to Close KPI Gaps
- 20. Daily Management System (DMS) Components Area Readiness Performance to KPIs Problem Solving Quick Hits Bigger Problems Communication
- 21. © 2017 The Karen Martin Group, Inc. 21
- 22. Example DMS Board Structure: Phase 1 © 2017 The Karen Martin Group, Inc. 22 KPIsArea Readiness Quick Hits R/G Status Owner Action Method Equipment Supplies Staff Information Date Problem Owner Action Resolve by R/G Other OtherBigger Problems Date Problem Owner Resolve by Status R/G (KPI gap)
- 23. 23
- 24. 24 Standard work is the wedge that keeps us from back-sliding Improvement Universal Law of Entropy All systems need continuous maintenance to keep them operating at their optimal levels DMS Prevents Backsliding DMS is the set of practices that hold the standard in place
- 25. The DMS Mindset 25 From To • Vague goals • Reacting to chaos • Problems are hidden • Telling • Gut feel • Assuming the answers • Blaming people • Measurable objectives • Managing to standards • Problems are visible • Coaching • Fact-based • Humility and curiosity • Checking process
- 26. © 2017 The Karen Martin Group, Inc. 26
- 27. 27 From KPI-Based to Information Center: Level 2 Boards Celebrations & Announcements Ideas In queue Doing Done Production Targets Time Goal Actual R/G Action Project Tracking Project Name 1 2 3 4 R/G Action
- 28. DMS “Rules” & Recommendations: Huddle Management • DAILY (except for very unusual circumstances) • 10-15 mins max; start & end on time • No problem solving in huddle • Rotate facilitation • Rotate attendance for areas that must have coverage (and follow-up with those who didn’t attend; pics help!) • Senior leaders should attend regularly • Invite other departments to attend © 2017 The Karen Martin Group, Inc. 28
- 29. DMS “Rules” & Recommendations: Rolling Out • Must have huddle standard work (with standard agenda) • Boards should be somewhat standardized but allow for some flexibility • Boards must be visible (don’t hide them!) • Create pull, not push; cannot be a leadership mandate • Slow and steady: Roll out 1-2 areas at first; then 2-3 at a time • Create three levels of boards: 1 (work area/dept); 2 (division/biz unit); 3 “corporate” • Works far better with strategy deployment in place © 2017 The Karen Martin Group, Inc. 29
- 30. Tricky Situations © 2017 The Karen Martin Group, Inc. 30 DMS Obstacles Countermeasures The “morning slam” • Two gatherings • Area readiness in morning; rest of huddle in afternoon • Huddle midday; area readiness in afternoon for following day Shift work MUST huddle every shift! Virtual teams iPad camera work; sending pics in advance; cardboard cutouts! Other? Other?
- 31. Questions or comments? 31 This image cannot currently be displayed.
- 32. info@ksmartin.com 32 www.ksmartin.com/subscribe This image cannot currently be displayed. This image cannot currently be displayed. This image cannot currently be displayed. This image cannot currently be displayed.This image cannot currently be displayed. This image cannot currently be displayed.This image cannot currently be displayed. This image cannot currently be displayed. This image cannot currently be displayed. This image cannot currently be displayed. This image cannot currently be displayed. January 2018!