Post on 22-Jan-2017
General TVM Principles
THE INSTITUTE FOR QUALITY SERVICE
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HART CROWSER
GENERAL TVM PRINCIPLES
INTRODUCTION Senior Management team member
TRAINING EXPECTATIONS John Inman
EVENTS AND OPPORTUNITIES LEADING TO TRAINING
Vision and application of vision of Hart Crowser as an organization with a value based work
environment are inconsistent person to person, team to team, location to location.
Inconsistent focus of team members in Hart Crowser, person to person, team to team, location to
location.
Understanding of what value added service is differs from team member to team member as well
as differences in understanding what internal client service means to individual team members and
to Hart Crowser and its external clients.
Thoughts:
Provide Road-Map:
Interactive format (Non-Lecture):
Unconscious-competence to Conscious-competence:
Thoughts:
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OBJECTIVES
By end of session:
John Inman's Objectives -
1) Every team member will share a common vision of the Hart Crowser value added work culture.
2) We will have created a better understanding of each other and each other's commitment to
TVM at Hart Crowser.
3) We will all be committed to shared results of the TVM process.
4) We will share a common understanding of the TVM process and what is necessary of each of
us to ensure its success.
Group's Objectives -
1) A better understanding of Hart Crowser's definition of TVM and how to implement it in
projects, in all team member's daily jobs, and in the regions.
2) Knowledge of faster, better ways to do things; plus opportunity to contribute ideas.
3) External input to show me what I am doing right and what I am doing wrong.
4) Effective management.
5) Better communication skills.
6) How to constructively educate the technical staff about drafting issues which make/break
drafting budgets.
7) Be a better team player and understand the need for process vs. expediency.
8) How to address difficult/strained relations with internal clients.
9) For this workshop to improve my marketability - both external and internal.
10) To get excited about TVM and learn what its all about.
Thoughts:
General TVM Principles
THE INSTITUTE FOR QUALITY SERVICE
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THE GURUS OF QUALITY
An overview of Deming, Juran, Crosby, and Taguchi
Dr. W. Edwards Deming - Setting The Standard For over 40 years, Dr. W. Edwards Deming has set the pace for the world-wide pursuit of quality in
products and service. His international practice of quality consultation includes railways,
telecommunications companies, census methods, hospitals, legal firms, government agencies, research
organizations, and many and varied manufacturing and service-oriented organizations.
Deming initially gained widespread acceptance in the early 1950's, when he traveled to Japan in the
aftermath of World War II, and helped industry rebuild after a devastating war. Many credit much of
Japan's industrial turnaround and phenomenal success to the quality principles Deming brought to Japan.
Since that time, Deming's accomplishments have reached extraordinary proportions. He has received
numerous science, technology, and engineering awards and recognition, been awarded honorary doctorates
from many distinguished universities, authored several books and published 170 papers, is a Distinguished
Lecturer for several universities, and has received awards of national and international recognition.
Deming may be best known as the namesake for the Deming Prize, an award developed by Japanese
manufacturers in 1951, and now an internationally coveted quality award signifying commitment to and
accomplishment of excellence in all aspects of organizational performance. In 1987, the President of the
United States awarded Deming with the National Medal of Technology.
A statistician with a Ph.D. from Yale, Deming built on statistical theories of quality control to transform
business so that goods and services could be produced and delivered in a highly quality conscious, client-
oriented manner. He developed a 14 point philosophy of management responsibility and quality assurance,
asserting that quality should be built into the processes rather than a result of inspection, detection, and
correction.
Industries around the world are paying attention to the Deming philosophy. The pentagon has tried to use
his ideas. The new General Motors Co. Saturn plant has been built with elements of Deming's philosophy
as a management foundation. Not everyone accepts every aspect of “the Deming way,” but the basics are
attracting a wide following.
What are those basics? First and foremost, there is the commitment to quality. Other aspects of the
philosophy include the following:
· Constant commitment to improvement
· A focus on behavioral issues such as leadership through action
· Positive environment, reinforcement, and reward systems
· Concentration on error prevention rather that detection
· Total involvement at all levels of management, production, and service delivery
· An obsession with, and constant attention to client needs
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THE INSTITUTE FOR QUALITY SERVICE
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In meeting the needs of the client, Deming states, “Be obsessed with your clients' needs. And, the way that
works is the people who report to me are my internal clients. The people who report to them are their
internal clients. If something goes wrong, you don't attack the person, you attack the process, and if you
constantly attack the process, the people will help.”
By creating an environment where clients come first, internally and externally, Deming philosophy-centered
organizations discover how to maximize productivity, lead their industries in quality, make profits soar, and
have a happy, satisfied work-force all at the same time.
What did Deming teach the Japanese, which took them in one generation from a reputation of producing
shoddiness in mass quantities to the world leader in high tech and industrial quality? He taught them that
incorporating principles of quality puts an organization in a unique position of satisfying the demands of the
public, who will respond by demanding more product.
Deming's basic philosophy is that quality improves as variability decreases. To monitor variance, he
advocated a statistical method of quality control. That is, instead of inspecting products en masse for
defects after they have been produced, companies should strive for continuous improvement using statistical
methods and analysis to maintain quality.
Here's how it works. Analysts sample products during manufacturing to determine the product's deviation
from an accepted range. As the deviations are detected, the causes for the deviations are determined, and
systematically eliminated until the target is attained every time.
As Deming sees it, any deviation is the result of one of two kinds of variables - either a “special cause,”
stemming from fleeting random events, or a “common cause,” arising from faults in the system. Based on
his experience, special causes account for only 6% of all deviations, and 94% can be traced to common
causes. Deming's studies show that most companies spend too much time trying to determine the nature of
special cases rather than examining the system to discover the source of the common causes. Deming lays
the blame for these system-related problems directly on management - not the workers. Quite critical of
traditional American corporate management, he says the vast majority of problems are eliminated if
management takes responsibility for them and creates the right system for creating defect-free products.
Deming also advocates determining what the clients want before making a product, and taught the Japanese
how to conduct client surveys. John Langley, a professor of marketing and logistics at the University of
Tennessee, says, “A central theme (of Deming's work) is the focus on client satisfaction. He repeatedly
underscores the importance of determining who the clients are and what their needs are, then developing
strategies to meet those needs.”
THE OTHER QUALITY GURUS
Joseph Juran - Focus On The Basics Joseph Juran also traveled to Japan after World War II, and his ideas of implementing quality programs
were also warmly received by Japanese business. Like Deming, Juran strongly emphasizes the role of
management in the development of quality processes and systems.
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For Juran, quality means fitness to serve, and has two basic attributes - 1) quality consists of those product
or service features which meet clients' needs, and 2) quality means freedom from deficiencies. He says the
client needs and expectations should be translated into operational measurements, and incorporated into the
process of product manufacturing and service delivery. Quality, he says, should be ranked alongside
financial considerations as an equal business objective.
To effect the desired changes, according to Juran, corporate executives must stress three managerial
processes, known as the “Juran Trilogy.”
1. Planning - Identifying clients, and their needs.
2. Control - Evaluating performance, comparing to company goals, acting on the differences.
3. Improvement - Upper management making quality a cornerstone of its business plan.
Philip B. Crosby - Doing The Job Right Crosby may be the best known quality guru, possibly because the emphasis is less on statistical analysis,
and more on what many consider common sense principles. He is also recognized as more motivational and
inspirational than other quality advocates.
Crosby is well known for famous business maxims such as “Quality is free,” and “Do it right the first time.”
He says that quality is achieved when you don't have to keep doing things over in order to get it right. To
accomplish that directive, management first must set the requirements, then supply the wherewithal for
employees to meet them, and finally encourage and help employees in that pursuit.
He refutes the idea that quality costs more money. Establishing systems that create quality the first time,
and teaching employees to do things right the first time is a money saver - not a business expense, especially
in the long run. Crosby's performance standard is “zero defects,” meaning no variations from the
requirements. Teach the employees, and keep management from placing obstacles in their way. He calls
quality improvement a process, not a program, adding “A process is never finished and requires constant
attention.”
Genichi Taguchi - An Emphasis On Design Quickly gaining in prominence is the fourth guru of quality - Genichi Taguchi. A 1960 Deming Award
winner in Japan, Taguchi became a consultant who takes issue with the concept of “Zero defects.” “Quality
is a virtue of design. The robustness of products is more a function of good design than on-line control,
however stringent, of manufacturing processes,” says Taguchi.
Taguchi contends that rather than establishing acceptable deviations from target, companies should
concentrate on hitting the target every time. The more a company deviates from targets the greater is losses
will be. He quantified this loss with a formula known as the “Quality Loss Function,” which calculates the
production cost plus quality loss.
Management should choose the precision level for a product that minimizes the total cost. On target, the
production should continue without adjustment. Outside the limit, the process should be adjusted before
production continues, Taguchi advocates.
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DETECTION VS. PREVENTION
Organizations that are moving into the world class arena understand that to compete in a world economy,
they must produce high value low cost products and services for their clients. To do this it is critical to
move from a philosophy of Detection to one of Prevention which leads into continuous improvement.
DETECTION SYSTEM As shown in the model below, in the Detection system once the product or service is produced, it is then
inspected to determine whether or not to ship, scrap, or rework. This is the traditional manufacturing
method used by most firms in the United States. The major problem with the system is the extremely high
cost of the system. Scrap and rework can easily amount to 33% of the cost of the product. This is a very
expensive luxury we no longer can afford if we are to be competitive in a world marketplace.
OPERATION
Does itmeet
specifications
OUTPUTDeliver
product orservice
IF YES
INPUT TAKE SAMPLE
Re-examine
or re-sample
Does itmeet
specifications
SCRAP
REWORK
WILL IT BE
BOUGHT
OFF?NO NO
NO
YESYES
MAN
MACHINERY
MATERIALS
METHODS
ENVIRONMENT
DETECTION SYSTEM
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PREVENTION SYSTEM The Prevention System has some obvious advantages. First, it does a much better job of ensuring that the
client receives a product or service they desire. Second, the costs of producing bad products, inspecting for
defects, scrap and rework are reduced.
Probably the most important advantage of the Prevention System is that it moves an organization towards
continuous improvement. In the model below, Statistical Process Control is used to analyze the process
and make improvements so that the process can be continuously improved.
OPERATION
Deliverproduct or
serviceOUTPUT
INPUT
MAN
MACHINERY
MATERIALS
METHODS
ENVIRONMENT
PREVENTION SYSTEM
TAKE DATA AND
ANALYZE
AGAINST TARGET
TO MAKE
IMPROVEMENTS
TO THE PROCESS
REDUCE
VARIABILITY
SPC
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VALUE
Unfortunately, adding value is a very misunderstood concept. It is not adding cost to make a service or
product look better; it is the added value we personally bring into our relationships by adding integrity and a
true desire to serve. We add integrity by reducing the factors or behaviors that prevent us from hitting our
targets, or we add resources to help us hit our targets.
GROUP EXERCISE
As a group in a facilitated discussion, discuss value and what it means and how it relates to how we do
business at Hart Crowser.
OVERVIEW OF TVM
A CULTURE THAT RECOGNIZES QUALITY AS THE PRESENCE OF VALUE, RATHER THAN JUST THE
ABSENCE OF DEFECTS
A SYSTEM WHERE VALUE IS DEFINED BY THE FIRM'S USEFULNESS TO A CLIENT, NOT JUST TIME
EXPENDED
A SYSTEM WHERE VALUE IS MEASURED BY CLIENT SATISFACTION, CLIENT LOYALTY, REPEAT
BUSINESS, AND REFERRALS, WHICH MAINTAIN THE CORPORATION'S MARKET SHARE AND ENSURE
OUR FINANCIAL SUCCESS
A BELIEF THAT HART CROWSER'S SUCCESS IS BASED ON RECOGNIZING THAT CLIENTS INCLUDE BOTH
EXTERNAL CLIENTS AS WELL AS INTERNAL STAFF
A WORKING ENVIRONMENT WHERE ALL EMPLOYEES PROMOTE CONTINUOUS VALUE IMPROVEMENT
STAFF WHO TAKE PERSONAL RESPONSIBILITY FOR ADDING VALUE THROUGH THEIR ACTIONS
(BEHAVIOR) AT ALL TIMES
STAFF WHO PRO-ACTIVELY SEEK AND PROMOTE PROFESSIONAL GROWTH THROUGH TRAINING, SELF-
IMPROVEMENT, AND EXPANDING OPPORTUNITIES
GROUP EXERCISE
As a group, discuss TVM to insure there is a common understanding of what TVM is and how it is going to
work in Hart Crowser
Thoughts:
General TVM Principles
THE INSTITUTE FOR QUALITY SERVICE
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Value Target
-3 -2 -1 0 1 2 3
68.26%
95.44%
99.73%
Let's use the analogy of basketball. If the object of the game is to win, one of the targets would be to make
100% of the shots through the basket. All factors that prevent the ball from going into the basket would be
considered variation around the target. There are then actions that can be taken to reduce that variation
such as training, practice of basics, strategy, values, vision, mission, a clear game plan, all of which will
help us focus on making the basket. The better we are at reducing the factors that prevent us from making
the basket, variability, the better we will be at improving the percentage of baskets made which will help us
win. A target is not a goal. A target is a permanent target to shoot for. A goal is like the rings on the
target; it marks improvement towards the bull's eye.
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THE INSTITUTE FOR QUALITY SERVICE
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FILTER
THROUGH
VALUE
TARGETS
EVERYDAY
DECISIONS
IS DECISION
MOVING ME
CLOSER TO
TARGETS?
REEVALUATE
DECISION,
DECIDE TO GO
AHEAD OR NOT
NO
IMPLEMENT
DECISION
YES
DO NOT
IMPLEMENT
DECISION
NO
YES
OBSERVE
RESULTS AND
ADJUST
ACTIONS AS
NEEDED TO
DRIVE TO
TARGETS
Value Target Decision Making Process
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VALUE TARGETS
1) 100% Client Satisfaction
Where client satisfaction -- the most important value target -- is defined as adding client-
perceived value to all relationships inside and outside the organization by meeting or
exceeding client expectations in a cost-effective manner. Value can be added by:
probing to determine client needs and expectations regarding scope, schedule, and cost;
negotiating agreement among the available options; and then ensuring that all
commitments are met.
2) Reward the Pursuit of the Best Interests of Hart Crowser as a Whole
Where the best interests of Hart Crowser are embodied in the Unifying Principles,
strategic direction, business plan, and budget, and recognizing and rewarding those who
promote the interest in the organization as a whole, rather than serve the self interest of
individuals, groups, divisions, or regional offices.
3) Eliminate Waste and Rework by Doing the Job Right the First Time
Where all team members take the appropriate amount of time to do the job right and
accept personal responsibility, and continuously seek and promote opportunities, for
eliminating waste and rework through sufficient planning and personal endeavor.
4) Make Decisions at the Lowest Responsible Level
Where delegation to the lowest responsible and appropriate level empowers individuals
and facilitates teamwork, participation, and ownership of the decisions being make.
5) Optimize Return on Investment
Where optimization of return on investment balances Hart Crowser's risks and rewards.
GROUP EXERCISE
Break into groups. Each group pick a decision, large or small, that has been made or could be made, then
discuss how that decision might be made by screening it through the value targets. Each group will then
share the process and results with the group as a whole.
Thoughts:
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Process Improvement Exercise
Instructions:
Notes:
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Value Council
The first step in establishing consistency in applying value improvement principles, is the formation of a
Value Council. The Value Council is an appointed steering body that oversees the value improvement
process and makes sure that all value efforts are focused and aligned with the value targets. The
membership of the Value Council will rotate every 6 months or so. Broad representation from all ranks of
the organization is critical to ensure team cooperation and support. As decisions are implemented by the
committee, higher levels of value will be achieved, and the team will witness an increase in commitment to
each other and to the team as a unit. The Value Council reports to John Crowser and recommendations
made by the Value Improvement Teams through the Value Council will be made to John Crowser and the
senior management team. Recommendations will be implemented on approval of John Crowser and the
senior management team.
The present composition of the value council is:
_ Greg Both _ Arlene Brooks _ Denise Brown
_ Linda Dahlin _ Bill Downs _ Garry Horvitz
_ Allen Jones _ Ken Kaufmann _ Jim Rybock
_ One representative from each region
To keep the team effective, it is best to limit full time council members to 10 people. It is not necessary to
have all team members be devote full time to team efforts. In fact, some Value Council members can even
be clients or suppliers. The key is to steer the process in the right direction.
Value Council's Role
_ Establish strategies for continuing improvement
_ Guide special project selection
_ Provide resources to support value improvement efforts
_ Remove road-blocks to value improvement efforts
_ Communicate and market the results of the Value Improvement Process
To guide the committee's actions and decisions, the following are necessary to ensure effectiveness of the
committee:
_ Clear Mission
_ Clear Vision
_ Clear Values
_ Clear Value Targets
_ Clear Objectives
_ Create measurements to gage progress toward targets
_ Clear boundaries over which the committee cannot extend
Thoughts:
General TVM Principles
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VALUE ACTION TEAMS
A value action team is created to address a specific issue or problem. It has a clear mission and a clear
vision of its intended outcome. It is the responsibility of the team or Value Council to leader provide clear
parameters for the team to work within. An analogy for this might be a road-map to a destination. First, the
destination is specified. Then, costs, impassable roads, time limits and other factors that might limit or steer
the team are outlined. At this point, the value action team is given the responsibility and the authority to act
within the guidelines.
The team manager or Value Council should review and authorize whatever plans and/or solutions are
developed. An effective method is to provide the decision makers with a set of three alternatives, and a
recommended choice with a thorough explanation. Make sure that all questions, concerns, and options are
adequately explored. This makes it easier for a planned implementation to be justified.
A value action team can be formed at the direction of the department manager or Value Council, or it can
be the brain child of any member of the team. Any qualified team member can lead the value action team.
If a team is to be formed, it is critical to inform the department manager or Value Council of the intent to
form a team. Value action teams do take valuable resources, and it is critical to prioritize the mission of the
team relative to the other tasks at hand.
It is critical that we understand that in no way is the Value Council and Value Improvement Team to take
the place of decisions that can be effectively made and implemented at the lowest responsible level using
the Value Targets to screen the decisions through.
GROUP EXERCISE
As a group in a facilitated format, discuss the role of the value council, value improvement teams and your
role in Hart Crowsers value improvement process.
Thoughts:
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THE INSTITUTE FOR QUALITY SERVICE
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VALUE
COUNCIL
SPECIAL
PROJECT
SELECTION
PROJECT
EVALUATION
IMPLEMENT
PROJECT
CONTINUOUS
IMPROVEMENT
STRATEGY
ASSIGNMENT TO
VALUE
IMPROVEMENT
TEAM
Special Project Value Improvement Process
Individuals
Suggest Projects
for Process
Improvement
Senior
Management
Team authorizes
project
SENIOR
MANAGEMENT TEAM
AUTHORIZES
IMPLEMENTATION
COMMUNICATE
PROGRESS TO
SENIOR
MANAGEMENT AND
TEAM MEMBERS
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The success of the adoption of value added principles in Hart Crowser depends on all of us working on the
same agenda. We must have shared vision, shared values, and a shared set of assumptions on which we
base our actions and decisions. The process we will continuously go through is based on an underlying set
of assumptions. These assumptions are necessary for the process to work!
GROUP EXERCISE
Break into teams of 5 or 6 and discuss the underlying assumptions listed below. Where is your comfort
level with the assumptions? Do you agree? Do you disagree? Can you accept the foundation for the value
added work environment?
UNDERLYING ASSUMPTIONS (Key assumptions on which value improvement process is based)
a) A logical argument can be developed for any conclusion. To change the conclusion, the
underlying assumptions change.
b) If we have a desired result, there are not only components necessary to get that result, (the
content) there is a process or road map (the context) in which those components must be executed to
get the desired result. (Chemistry)
For example: In chemistry, if you have a desired result, it is not enough to define the chemicals
(content). The order, amounts and the way those chemicals are combined as well as the environment
for reaction (context) are critical to define if you hope to create the desired result.
c) TVM, more than anything else, is about driving to target by using the value targets as criteria for
all decisions made in the organization and then working to continuously improve the process. We
will turn these actions (behaviors) into the clear vision of what Hart Crowser looks like if we execute
and implement the necessary road map effectively.
d) Everyone in this room is highly dedicated, highly intelligent and is committed to fulfill Hart
Crowser's mission.
e) Confrontation is healthy if based on:
Accepting someone's point of view does not mean you agree with them. It means you allow the
space for differences. People have different points of view because they base their opinions on
different sets of assumptions. A point of view is not good or bad, just different. Healthy
confrontation, therefore, states "I accept your point of view. I have a different point of view."
Arguments occur when I say you are wrong.
Thoughts:
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Underlying assumptions cont.
f) "If you always do what you have always done, you will always get what you always got." Larry
Wilson To expect a different result from the same behavior is a good definition of insanity.
g) I cannot change your beliefs or attitudes. I will not tell you that your beliefs will positively or
negatively affect the desired result you envision. What I will tell you is your expressed behaviors
have a profound affect on the desired result you envision.
h) You are totally responsible for the affects of your behaviors on those around you and totally
accountable to those around you for the affects of your behavior.
i) "What you are speaks so loudly I can't hear what you say." Emerson "You can't give away what
you don't own anymore than you can come from where you haven't been." Larry Wilson You must
model the behaviors discussed or the envisioned results "will not" materialize.
j) 90% of organizations that introduce a quality process fail in that introduction. They introduce
new processes, teams, education, and knowledge. They do not make the personal changes in
behavior necessary to model the work environment (results) they envision. They implement the new
process with the same style that they used in the past, i.e., same behaviors expecting new results
(insane).
k) If we model the behaviors (road map) defined in this process, we will build the self-esteem of our
team members. As self-esteem is re-enforced, personal, team and organizational productivity will
increase. The higher the individual self-esteem, the stronger the ego. The stronger the ego, the more
comfortable one is accepting opposing points of view. The more comfortable accepting opposing
points of view, the better the relationships and understanding. The better the relationships and
understanding, the better the organization is able to create the results envisioned.
l) The chain of events (the reaction) in this process does not happen in a vacuum, it is totally
dependent on the type of relationships we develop. You have the choice to either be a buffer to the
process or a catalyst.
m) In statistical process control we improve value by removing the variability in the process. We
define what we want (the value targets) then introduce a process to start eliminating those things
keeping us from hitting those targets (road blocks) or we introduce resources to help us hit the targets
(i.e., training, practice, etc.). We must provide consistency to improve value. If we define our
mission, values (unifying principles), vision and key management issues (value targets) and then
remove roadblocks and/or add results to help us bring our performance (behavior) in line with the
mission, values, vision, value targets, we build integrity into the organization. Integrity is defined
simply as walking your talk. People are attracted to people and organizations with high integrity.
n) Success is gauged by movement, not absolute shift in behavior.
MISSION
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Hart Crowser is dedicated to providing responsive, technically innovative yet practical and cost effective
solutions to complex problems within the applied earth and environmental sciences. We are committed to
mutual respect and the pursuit of value -- the fulfillment of needs and expectations -- in every encounter
with our external and internal clients.
As a comparison, the Mission of this training follows so that we have a clear purpose for this process.
PURPOSE OF TRAINING PROCESS
To create a work environment where all team members share a common vision of Hart Crowser, base their
actions on the same unifying principles (values), and base their decisions on the same criteria, the value
targets of Hart Crowser.
UNIFYING PRINCIPLES
We are committed to a responsive, quality product for all clients, both external and internal
We will provide a safe and enjoyable work environment of mutual respect
We will encourage open and honest communications including recognition of successes and
productive criticism of failures
We will encourage a realistic and progressive approach to our projects in a team environment
We will maintain a highly qualified and motivated staff while providing all staff members to the
greatest extent possible with the opportunities for professional growth
We will encourage all staff to develop a balance between their professional and personal lives
We will continuously and objectively evaluate performance data, with the goal of increasing the
value of our services
We will transfer ownership in the firm to its staff and are committed to maximizing the financial
value of Hart Crowser stock
We are committed to controlled growth and a reasonable profit
We are committed to maintaining, restoring, and enhancing the quality of both the natural
environment and the communities in which we work and live
INTERNAL CLIENT RELATIONS
Thoughts:
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The best way to define your client, whether that client is inside or outside the organization, is to define the
people or groups to whom you supply a product or service. Once you have defined to whom you are
supplying products or services, you have defined your clients. It is important to note that a person or group
may be at the same time a client and a supplier to you.
As we explore providing high levels of client service, we are adding value to all of our relationships. This
does not mean adding costs, extras, or efforts. The common perception of adding value is doing just that.
The only way we can insure high levels of client satisfaction is by showing that we truly care about our
client and treat him or her with courtesy and respect.
Questioning
People trust you and order from you ( buy your ideas, services, information or products, follow and support
you) when they feel you understand them: you can understand them by asking questions.
The bottom line in communications is to understand and reach agreements. Regardless of the service or
product you are trying to create, your performance will be impaired if you can not gain the full cooperation
of those who can be a benefit to you. You can gain the full cooperation of those who can be a benefit to
you by showing that you care by asking questions.
There are two basic types of questions. Open ended and closed They are used for different reasons.
Closed Questions
A closed question is generally used to gain information of a specific kind. What is your budget? When do
you need this? When are you going to get this done? How long are you going to take? Are you going to
make your budget?
Open Ended Questions
Open ended questions are used to encourage conversation and build rapport. How would you improve this
process? What can I do to support you? What are some of the challenges you face? An alternative form of
an open ended question can be in the form of a softened demand. Tell me how you would improve this
process.
GROUP EXERCISE
Communication exercise:
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Managing Expectations
Each time you have contact with a supplier or client, there is a set of expectations that must be fulfilled to
insure a high degree of client satisfaction. Being able to manage those expectations is the most critical
competency necessary to work effectively in a value added work culture.
To manage expectations, every individual in the organization must ask effective questions and be provided
the space to ask effective questions. This ability is critical for both the supplier of the product or service
and the client receiving the product or service.
GROUP EXERCISE
Break into groups of 5 to 6 and discuss the communications involved in managing expectations as
represented in the flow chart on the next page. How would you use effective questioning and listening skills
to improve your ability to manage expectations? How will managing expectations help move TVM into
the organization as a whole? How will managing expectations help build a cost effective, profitable long
term force in the marketplace?
Thoughts:
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Managing Expectations
Customer requests a
product or service
Supplier receives
request for the
product or service
Request
Supplier questions
customer to insure
understanding of
request
Customer clarifies
request for product
or service
Understanding
Supplier uses
knowledge and
experience to
strategically look at
the request
Supplier
recommends a
strategic solution
that customer had
not recognized
Supplier agrees that
the request is in the
best long term
interest of the
customer
Customer and
supplier agree on
course of action
Supplier analyzes
whether or not there
is capacity to supply
the expectation
There is not a
capacity to supply
the expectation as
agreed
No
There is capacity to
supply and meet or
exceed the
customer's
expectations
Yes
An agreement is
reached and supplier
proceeds to supply
the product or
service
The capacity to
supply is adjusted or
the expectation is
renegotiated
Supplier and
customer agree not
to come to
agreement and
supply is canceled
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TEAM MEMBER COMPETENCIES
There are six core competencies necessary to effectively integrate all of the necessary pieces to work
together to build a value added work environment.
1. MANAGING EXPECTATIONS
Asking questions, listening
Negotiation
Making agreements
Keeping commitments
There must be a work environment that encourages and rewards team members for asking effective
questions. This is the foundation of managing expectations.
2. LEADS BY EXAMPLE
Lives values, both personal and organizational, good role model.
Adds value to all relationships
Proactive and adaptable
Self motivated
Invests in others
Integrity is living personal and organizational values and vision. If there is low integrity, the behaviors
needed to model a value added life-style and organizational style will not be present.
3. FORMS COALITIONS AND STRONG WORKING RELATIONSHIPS
Builds cooperation, partnerships, and win-win agreements
Accepts delegation effectively
Adapts as organizational structure changes to meet new challenges
To work together in a team, first we must be able to accept differences. Acceptance of "what is", is
necessary before we can move ahead and create change of what we do not like.
4. ENERGIZES THE ORGANIZATION
Improves the system as a whole
Utilizes facts and analysis to guide decisions
Each team member must be able to look at the organization as a whole rather than concentrate only on
individual wants. Use of good problem solving and decision making tools is critical to insuring an effective
process.
5. FOCUSES ON THE ORGANIZATION
Strives to improve customer satisfaction
Strives to increase profitability
Team members must act in the best interest of the organization. If a team member does not feel that he or
she can do so, that individual has an obligation to attempt a change in the direction of the organization or
choose not to participate in the activity.
6. PROFESSIONAL CURIOSITY
Seeks opportunities to learn about Hart Crowser
Seeks opportunities to expand technical excellence
Seeks opportunities to learn about clients and markets that Hart Crowser Serves
Seeks opportunities to improve personally
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LEADERSHIP COMPETENCIES
There are five core leadership competencies necessary to effectively integrate all of the necessary pieces to
build a value added work environment.
1. INSPIRES THROUGH EXAMPLE
Reflects, takes action and adapts
Models leadership values and qualities
Invests in others, acts as a mentor
Shows patience, sense of humor, trust and mutual respect
Modeling the values and behaviors is the only way this process will work. If the leadership team does not
model the value added work environment, it will never happen.
2. CREATES OPPORTUNITIES TO LEARN AND IMPROVE
Connects team members to the results of their work
Commits to and creates continuous improvement
Managing expectations helps connect team members to the results of their work. Management must have
full understanding of reducing the variability around the value targets and screen all decisions through the
targets.
3. BUILDS TEAMWORK
Delegates effectively
Cultivates team capabilities
Coaches and actively builds trust
Effective delegation can not exist without effectively managing expectations. As team members understand
that leadership removes roadblocks and adds resources to help them better perform their jobs, they excel in
capabilities.
4. ENERGIZES THE ORGANIZATION
Improves the system as a whole
Utilizes facts and analysis to guide decisions
Leadership must look at the good of the whole rather than sub-optimize an individual project, department or
region. Use of good problem solving and decision making tools is critical to insure an effective process.
5. GUIDES WITH VISION
Communicates and clarifies company goals
Focuses on satisfying clients
Ensures team member satisfaction
Increases profitability
Management must share a common vision and be able to paint a picture of the Hart Crowser envisioned.
The is the act of facilitation. Facilitator is the role of the manager in Hart Crowser.
GROUP EXERCISE
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Break into groups of 5 to 6 and discuss how the team member competencies and the leadership
competencies differ what personal changes in behavior are necessary to model the leadership competencies
necessary to sustain and build a value added work environment.
Thoughts:
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DEVIATION ANALYSIS AND DECISION MAKING
Not only do we need to relate effectively at all levels of the organization, we must talk the same language
when defining deviations and making decisions. As we build integrity into Hart Crowser, we begin to
eliminate the road-blocks to adding value or we add resources to add value. There is a process to go
through to make sure we stay on target, i.e., we are basing our decisions and the priority of those decisions
on the key management issues for Hart Crowser, the value targets.
DEVIATION ANALYSIS
A deviation is the visible effect of a cause that resides
somewhere in the past.
A deviation represents a deviation between expected
and actual performance that is of an unknown cause.
Deviation Analysis is a systematic deviation-solving process.
A deviation always requires an answer to the question -- Why?
REWARDS
People enjoy both the rewards of success
and the process that leads to success.
People seek deviation-solving opportunities as long as four conditions exist:
1. They possess skills needed to solve deviations on the job.
2. They experience success in using those skills.
3. They are rewarded for successfully resolving deviations.
4. They must not fear failure.
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STRUCTURE OF A DEVIATION
PAST PRESENT
SHOULDSHOULD
performance performance
CHANGE
DE
VIA
TIO
N
STRUCTURE OF A DAY ONE DEVIATION
performance
SHOULD
performance
ACTUAL
PAST PRESENTDAY ONE
DE
VIA
TIO
N
SHOULD NEVER HAVE
EXISTED or NEVER HAS
FUNCTIONED
CORRECTLY
performance
ACTUAL
CHANGE
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CAUSE AND EFFECT
The cause and effect diagram is an excellent tool to determine what the causes of a deviation are. It is very
helpful in defining where to gather data and what kind of data to gather, as well as being one of the best
deviation solving tools available.
Once the current situation and target situation are clearly defined, the team members identify the possible
causes. Brainstorming is used to generate possible solutions.
EFFECTENVIRONMENT
MATERIALS MACHINES
WORKFORCEMETHOD
CAUSE AND EFFECT DIAGRAM
Thoughts:
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DESCRIPTION OF THE DEVIATION
Deviation Statement: Specifying Questions Performance Deviation Closest Logical Comparison IDENTITY What is......? Is.....? Could be but is not.....? What is.....? Is......? Could be but is not.....? LOCATION Where is.....? Is observed.......? Could be but is not observed......? Where on.....? Is observed.......? Could be but is not observed......? TIMING When was......? Is first observed......? Could be but is not observed......? When has.......? Is observed continually.......? Could be but is not observed......? When in the operating cycle..? Is first observed as soon as......? Could be but isn't first observed...? MAGNITUDE What is the extent.....? Is.....? Could be but is not......? How many....? Is.....? Could be but is not......?
How much.....? Is.....? Could be but is not......?
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DESCRIPTION OF THE DEVIATION
Deviation Statement:
Specifying
Questions
Performance
Deviation
Closest Logical
Comparison
What is Distinctive
About
Does the Distinction
Suggest a Change?
IDENTITY
LOCATION
TIMING
MAGNITUDE
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PARETO ANALYSIS
CLIENT COMPLAINTS FREQUENCY CUMULATIVE PERCENT
Confusing billing statement 27 27 64
Calls not returned on time 6 33 78
Price too high 3 36 85
Needs not met 2 38 90
Service not delivered as promised 2 40 95
Unfriendly reception on phone 1 41 97
Did not understand proposal 1 42 100
Pareto Chart
Frequency
0
5
10
15
20
25
30
Billing
Calls
Price
Needs
Promised
Unfriendly
Understanding
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THE ELEMENTS OF GOOD CHOICE
The quality of our definition of specific factors that must be satisfied.
The quality of our evaluation of the available alternatives.
The quality of our understanding of what those alternatives can
produce.
THE DECISION STATEMENT
A decision statement always indicates some kind of action
and its intended result. For example: Select a new Director of Quality Control.
In Decision Analysis, resolution will consist of an answer to the
questions:
To what purpose?
Which?
How?
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ALTERNATIVES EVALUATED AGAINST MUST OBJECTIVES
Must Objectives Alternative 1 Go/No Go Alternative 2 Go/No Go Alternative 3 Go/No Go Alternative 4 Go/No Go
ALTERNATIVES EVALUATED AGAINST WANT OBJECTIVES
Want Objectives Weight Alternative 1 Score Alternative 2 Score Alternative 3 Score
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DECISION ANALYSIS TO DETERMINE
IF PROPOSED ALTERNATIVES ARE GOOD ENOUGH
Objectives & Characteristics
of an Ideal Outcome
Model
Alternative 1
Alternative 2
Must
Go/No Go Go/No Go Go/No Go
#1
#2
#3
#4
Want Weight
Score
Weighted
Score
Score
Weighted
Score
Score
Weighted
Score
TOTALS
PERCENTAGES
%
%
%
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ACTION STEPS
1) Screen all decisions through the value targets!
TVM Decision Pad
Decision Statement:
100% Client Satisfaction
Reward the Pursuit of the BestInterests of Hart Crowser as a Whole
Eliminate Waste and Rework by Doing the Job Right the First Time
Make Decisions at the LowestResponsible Level
Optimize Return on Investment
Value Targets considered
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Action steps cont.
2) Manage all expectations by:
a. Actively listening
b. Use open ended questions and closed questions to understand and build
rapport
c. Use your knowledge and experience to offer strategic solutions to clients
d. Fully analyze your capacity to supply before entering an agreement
e. Clarify agreement to make sure both parties fully understand the agreement
f. Deliver the product, information or service as agreed
g. Set up check points so that client can be sure the product, knowledge or
service is on target and is what is agreed upon
3) Make and execute decisions that are within your sphere of influence using the value
targets
4) Submit all ideas for improvement that are greater than your sphere of influence or
the sphere of influence of your group, division or region to the value council for review
5) Participate in improvement projects and support others who are actively exploring
different ways of doing things
6) Create measurements so that progress can be recognized
7) Challenge all assumptions
8) Challenge all sacred cows