How Organizational Chaos Destroys Improvement Initiatives & What to Do to Prevent It

How Organizational Chaos Destroys
Improvement Initiatives &
What to Do About It
Karen Martin

SME CONNECT
September 12, 2012

 Founder: Karen Martin & Associates, LLC (1993).
 Consultant / Coach: Lead Lean transformations &
develop people in office, service and knowledge
environments.
 Teacher: University of California, San Diego’s
Lean Enterprise program.
 Author:

Karen Martin,
Principal

www.ksmartin.com

Just released 2nd Edition
October 2012

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

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

…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

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.


To Err is Human
Institute of Medicine, 1999

98,000 lives lost

Improvement Goal:
Reduce by 50%
in 5 years.

8

Not. Even. Close.


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

We need to
improve
how we improve.

12

Self‐inflicted


A Chaos‐Cracked Foundation
Can’t Support Excellence


Mindsets &
Behaviors
that Reduce
Chaos


“Effectiveness is a
habit.”
— Peter Drucker

16

Clarity

Engagement Focus

Discipline


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.

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?


Gaining Clarity: How Work Gets Done
Value Stream Maps


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

How clear is the information
needed to perform work?

Customer

Process Process Process Process
1 2 3 4

25

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%

How are you performing?

Gray – Highest industry quality scores
Purple – Median industry quality scores
Blue – Our quality scores

27

“Going to the gemba
has been life changing
for me as a leader.”
‐ Ginny Cattaneo, Sr. VP, Franklin
Templeton Investor Services


Truth
Truth
Truth
Truth
Truth
Truth
Truth
Truth
Truth 29

Booz & Company Findings
90%
82%
80%
70%
64%
60%
49%
50%
40%
30%
20%
10%
0%
No written Conflicting Competing
priorities priorities demands


“The difference between successful people
and very successful people
is that very successful people

say no
to almost everything.”

— Commonly attributed to Warren Buffett

32

Distraction Kills


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


To create new
ideas is a gift, but
to choose
wisely is a skill.
‐ Ryan Morgan


There is no such thing
as multitasking.*

* For cognitive tasks.


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


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


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

Rockwell Automation

25
20
20 Projects
15 Started
12 12
10 Projects
5 Completed
3
0
Pre‐Focus Post‐Focus

40

Recession deepens 2.5x
more Medicaid patients

ThedaCare
Implements
Strategy
Deployment

41

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

PACE Improvement Prioritization Grid ‐ Example
9 22 17
23
8 3 21
Easy
10 4
13
5
15
Ease of Implementation

20 14
19 1
16

7 6

2 11 18

12
Difficult

Low High
Anticipated Benefit

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

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

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


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?
47

Frequent Status
Meetings Assure
Ongoing Alignment &
Distraction Avoidance

48

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.”


Greatness results from
Disciplined people engaged in disciplined
thinking that leads to disciplined
action.
— Jim Collins, Good to Great

51

Discipline:
A deliberate practice
repeatedly performed.

Discipline = Consistency


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

Building mastery takes 10,000 hours
of deliberate practice


Areas in Business & Government
That Benefit from a Disciplined Approach

• Planning
• Decision making
• Executing
• Problem Solving & Improving
• Managing processes


“It takes a different kind of thinking to
solve a problem than the kind of thinking
that produced the problem.”
— Albert Einstein

57

“Most people spend more time and
energy going around problems

than in trying to solve them. ”
— Henry Ford

58

The Scientific Method for Problem Solving
and Improving


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.

60

Developing PDSA Capabilities

Complex • A3 Management

• Kaizen Events

• Daily Kaizen (Improvement &
Simple
Coaching Kata)


Areas in Business & Government
That Benefit from a Disciplined Approach

• Planning
• Decision making
• Executing
• Problem Solving & Improving
• Managing Processes


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


Every key process…
2‐5 Key Performance Indicators

Monitored Continually


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

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).


Don’t Look Away. Ever.


Energy Crisis: Widespread Disengagement

70

Engagement Drivers: The Three C’s

Connection

Control Creativity


Establishing the conditions for full engagement:
The workforce designs how work should be done.

72

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.

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.


As Outstanding as They Come…

Discipline

76

Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799

ksm@ksmartin.com
Twitter: @karenmartinopex
Subscribe: www.ksmartin.com/subscribe

78

How Organizational Chaos Destroys Improvement Initiatives & What to Do to Prevent It

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (20)

Semelhante a How Organizational Chaos Destroys Improvement Initiatives & What to Do to Prevent It

Semelhante a How Organizational Chaos Destroys Improvement Initiatives & What to Do to Prevent It (20)

Mais de TKMG, Inc.

Mais de TKMG, Inc. (20)

Último

Último (20)

How Organizational Chaos Destroys Improvement Initiatives & What to Do to Prevent It