10/24/2017

1

The Cascading Effects of Lean in Your Marketing

Explore

Do

Check

Act

Standard

Do

Check

Act

Plan

Do

Check

Act

Lean Thinking Practices

10/24/2017

2

Lean Thinking Practices

Explore

Do

Check

Act

Standard

Do

Check

Act

Plan

Do

Check

Act

Check

Act

Plan

Do

Lean Thinking Practices

Standard

Do

Check

Act

Explore

Do

Check

Act

Plan

Do

Check

Act

Plan

Do

Check

Act

CAP-Do

SDCA

Explore

Do

Check

Act

Standard

Do

Check

Act

Check

Act

Plan

Do

PDCA

EDCA

3 Ways of Looking at the Lean Cycles of CAP-Do – SDCA – PDCA - EDCA

1. As Tools

2. As Structure

3. As Patterns of Behavior

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3

Lean is Simple: Find a Problem, Solve a problem

Standard

Do

Check

Act

Explore

Do

Check

Act

Plan

Do

Check

Act

CAP-Do

SDCA Standard

Do

Check

Act

Check

Act

Plan

Do

PDCA

EDCA

Existing Company

• Capture what we are doing

• Create Standard Work

• Improve/regain a standard

• Try something new

Lean is Simple: Explore an Idea, Scale What Works

Standard

Do

Check

Act

Explore

Do

Check

Act

Plan

Do

Check

Act

CAP-Do

SDCA

Explore

Do

Check

Act

Check

Act

Plan

Do

PDCA

EDCA

Startups:

• Confirm our intentions

• Explore our ideas

• Test with Learning Launches

• Standardize what works

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Lean is Simple: Start with the Known

Standard

Do

Check

Act

Explore

Do

Check

Act

Plan

Do

Check

Act

CAP-Do

SDCA

Check

Act

Plan

Do

PDCA

EDCA

Marketing Experiments:

• Confirm our intentions

• Determine use of existing

• Test Learning Launches

• Explore new ideas

Funnel of Opportunity

Step 1:

Key Customers

Step 2:

Job Mapping

Step 3:

Force/Field Analysis

Step 4:

Our Promise

Step 5: Sales/Market

Activities

Step 6:

Branding

Step 7:

Resources Investments

Step 8:

Cluster

Step 9:

Co-Create Vision

Step 9:

Identify Adjacencies

Step 11:

Listening & Learning

Step 12:

Sustain & Grow

Core Value Steam

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Life Workflow

• Built first go-cart at the age of 5

• Joined 82nd Airborne which led to college as a welder and the

help of the GI bill.

• Starting as a welder, progressed to become the president of a 1.6 million dollar

construction equipment manufacturer. Left 6-years later when it was at 12 million

and paid out 6 to 7-figure profits on an annual basis.

• Started a manufacturing company with 2 file cabinets and created a 5 million

dollar company in 3-years.

• Home Décor brick and mortar store (wife was the talent).

• Sales and Marketing Freelancer using Lean Practices Who Are These Guys?

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Action Result

Elmo St. Lewis

John Wannamaker

Daniel Craig

Action Result

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VUCA • Volatility: The nature and dynamics of change, and the nature and speed of

change forces and change catalysts.

• Uncertainty: The lack of predictability, the prospects for surprise, and the sense

of awareness and understanding of issues and events.

• Complexity: The multiplex of forces, the confounding of issues, no cause-and-

effect chain and confusion that surrounds organization.

• Ambiguity: The haziness of reality, the potential for misreads, and the mixed

meanings of conditions; cause-and-effect confusion.

IF IT IS NOT DISTRIBUTED NOW, IT SOON WILL BE

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Complex

(unknowns unknowns)

Complicated

(knowns unknowns)

Chaotic

(unknowables)

Obvious

(knowns knowns)

Disorder

(unclear of any)

Cynefin Framework: Boone & Snowden

Complex

(EDCA)

Complicated

(PDCA)

Chaotic

(CAP-Do)

Obvious

(SDCA)

Disorder

(Culture/Vision)

Lean is Simple

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Standard Work

Continuous Improvement

Exploration,

Emergence

Reflective

Culture

Lean And Cynefin Framework

Obvious

Disorder

Chaotic

Complex

Complicated

SDCA

CAP-Do EDCA

PDCA

Vision

Vision Target

Condition Current

Condition Obstacles Challenge

1 2 3 4

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Current Condition

Vision Challenge

Target

Practice

SDCA

CAP-Do

EDCA

PDCA

Vision Target

Condition Current

Condition Obstacles Challenge

1 2 3 4 Events (Reactive)

Patterns (Adaptive)

Structure (Creative)

Mental Models (Reflective)

Vision (Generative)

Levels of Perspective From the work of Daniel Kim

Current Condition

Vision Challenge

Target

Practice

SDCA

CAP-Do

EDCA

PDCA

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Positive VUCA • Volatility yields to Vision

• Uncertainty to Understanding • Complexity to Clarity • Ambiguity to Agility

Lean is Simple

Events (Reactive)

Patterns (Adaptive)

Structure (Creative)

Mental Models (Reflective)

Vision (Generative) Current

Condition

Vision Challenge

Target

Practice

SDCA

CAP-Do

EDCA

PDCA

Success is not about what we

know; it is about how we learn

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Kaizen & Learning

Joint Improvement

Information Sharing

Compatible Capabilities

Control Systems

Interlocking Structures

Mutual Understanding

7 Step Hierarchy of Toyota Supplier Partnering 7 Step Hierarchy of Toyota Supplier Partnering

• Shared Lessons, PDCA, Cost Reduction Kaizen & Learning

• VA/VE, Supplier Develop, Study Groups Joint Improvement

• Data Collect, Common Language, Timely Communications Information Sharing

• Eng. Excellence, Operation. Excellence, Problem Solving Compatible Capabilities

• Measures, Feedback, Target Pricing, Cost Management Control Systems

• Alliance, Interdependence, Parallel Sourcing Interlocking Structures

• Trust, Respect, Mutual Prosperity, Genchi Genbutsu Mutual Understanding

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Mutual Understand

Interlock Structure

Control Systems

Compatible Capabilities

Info Sharing

Joint Improve

Kaizen & Learning

Current Condition

Target Condition Where would you be along path?

1 to 1 Integrated

Solo Selling

1 to Many Interdependent

Team Selling

Kaizen & Learning

Joint Improvement

Information Sharing

Compatible Capabilities

Control Systems

Interlocking Structures

Mutual Understanding

7 Step Hierarchy of

Toyota

Self-Actualization

Personal Esteem

Social Acceptance

Security

Physical Comfort

Salesperson/Acct. Manger oversees integrated actions

Salesperson coordinates direct relationships between Orgs

1 to many: Salesperson to Different Departments

1 to 1: Salesperson to Buyer

Integrated, Realization of fullest potential

Interdependent: Valued by both sides

Cooperative: Reduced risk, Forecasting

Basic: Operational, Efficient transactions

Desire of

Organizations Maslow Role/Responsibility of

Salesperson

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Kaizen & Learning

Joint Improvement

Information Sharing

Compatible Capabilities

Control Systems

Interlocking Structures

Mutual Understanding

Integrated

Solo Selling Interdependent

Team Selling

1 to Many

“We tend to over-estimate the impact of

technology in the short term and

underestimate in the long term.”

— Roy Amara, Institute for the Future

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Future Trends Timeline

2019: Eye-Controlled Technology

2026: Smart Clothing

2030: Carbon Breathing Batteries

2034: Cheap Solar Power

2037: 3D Printing in

Home

2040: Germ-Line Genetic Modification

2045: Commercial

Fusion Power

2049: Calcite Aerosol

Geoengineering

2055: Wavetop and Undersea

Cities

SOURCES: Proceedings of the National Academy of Sciences

Do: Co-evolving: embody the new in ecosystems that facilitate acting from the whole.

Check: Co-initiating: uncover common intent stop and listen to others

ACT: Co-sensing: observe and connect with people and places to sense the system from the whole

Plan: Co-creating: prototype the new in living examples to explore the future by doing

Learning by reflecting on the experiences of the past

Learning from the future as it emerges

Do Check

ACT Plan

HOW TO Reflect (CAP-Do)

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Do Check

ACT Plan

Do Check

ACT Plan

HOW TO Reflect (CAP-Do)

Do Check

ACT Plan

HOW TO Reflect (CAP-Do)

What resources will we need? People, Time, Money, Skill

• Find Owners • Keep Score • Prioritize

What key questions do we need to ask and answer?

• Develop Review • Collect Data • Improve Plan

How will we know success and for whom? What are the new measures of success?

• Monitor Progress • Collective Action

What is our minimum trial? What will we learn?

• Customer Needs • Determine Drivers • Define Indicators

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Do Check

ACT Plan

HOW TO Reflect (CAP-Do)

P: Pause (Presencing)/Plan

• Are the stories clear, concise and relevant?

• Stories created in Check = Act (Divergent views are important)

• Isolate and group key assumptions

• Decide what to: Stop, Continue, Do Different, Start

Do Check

ACT Plan

HOW TO Reflect (CAP-Do)

D: Do (Enact our Decision)

• Stop what we don’t want to do

• Create Standard Work for what not to change (SDCA)

• Create Hypothesis for what to change (PDCA)

• Create Plan to start something new (EDCA)

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HOW TO Reflect (CAP-Do)

D: Do (Enact our Decision)

• Stop what we don’t want to do

• Create Standard Work for what not to change (SDCA)

• Create Hypothesis for what to change (PDCA)

• Create Plan to start something new (EDCA)

SDCA Decisions

EDCA Dilemmas

PDCA Problems

Complexity

Uncertainty

HOW TO Reflect (CAP-Do)

SDCA Decisions

EDCA Dilemmas

PDCA Problems

Complexity

Uncertainty

Integrated

Solo Selling

Interdependent

Team Selling

1 to Many

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HOW TO CREATE STANDARDS (SDCA)

Act Std.

Do Check

• Commitment – Level of commitment is expected from the individual

• Connection – A path for support through conversation is provided (Andon)

• Clarification – Minimum standard is explicit • Visualization – Line of Sight • No Budget = No Standard • No Documentation = No Standard • No Strategy

Act Explore

Do Check

HOW TO EXPLORE (EDCA)

• Creativity: Envision past ideas to structure, adapting to changes, learning new ideas

• Conviction: Deep sense of purpose with the ability to sustain interest and effort in a long-term goal

• Challenge: Offers unique perspectives from customer’s viewpoint based on their value and economic drivers

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Act Explore

Do Check

HOW TO EXPLORE (EDCA)

Evaluate Differently, Not Less: How well plan is executed not the outcome

• Sufficient time into planning and analyzing?

• Are experiments well constructed? Meet the notion of a minimum viable experiment.

• Are predictions getting better?

• Are the unknowns (dilemmas) well thought out?

• Are changes based on facts or opinions? Are we facing facts quickly and decisively?

The Importance of EDCA

Time

Revenue & Product

Innovate

Innovate Disruptive Innovation • Design Thinking • Blue Ocean

Incremental • Red Ocean

EDCA • What is your core value stream? • What is the job being done? • What is your promise? • How will you learn? • What will do differently?

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Act Plan

Do Check

HOW TO IMPROVE (PDCA)

• Concern: Locate the point of concern or cause through Who, What, Where, When

• Cause: Identify root cause verifying with data

• Countermeasure: · Develop countermeasures utilizing user stories and place on visual board, prioritize

Determine Sales/Marketing Current State Empower Customers, Engage Prospects, Explore New (work from right to left)

1. Define a value stream based on core product/service

and capabilities

2. Complete blue section for key accounts &

corresponding green for ourselves

3. Cluster key accounts with other similar customers

within value stream

4. Complete blue section for value stream &

corresponding green for ourselves

5. Reflect on the process (CAP-Do) and create standard

work (SDCA).

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Explore

(Pre-Purchase)

Engage (Purchase)

Empower (Post-

Purchase)

Future

Who your Customer wants

to become

Place/Platform (Environment)

Place/Platform (Environment)

Place/Platform (Environment)

Product/Service (use of Product)

Job we were hired to do

Job they wanted done

People (Users) People (RAPID) People

(Explorers)

Process (Interpret Value)

Process (How they Decide)

Process (How they become

aware)

Explore (Pre_Purchase)

Engage (Purchase)

Empower (Post_Purchase)

Future Customer

Who will we become

Marketing Process

(Extend/Empower)

Marketing Process

(Establish Value)

Marketing Process (Create

awareness)

Product/Service (What did we

Provide)

Product/Service (What did we

Propose)

Product/Service (What did we

Promise)

People (Supporters)

People (Salespeople)

People (Marketers)

Place/Platform (Environment)

Place/Platform (Environment)

Place/Platform (Environment)

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Determine Sales/Marketing Current State Empower Customers, Engage Prospects, Explore New (work from right to left)

1. Define a value stream based on core product/service

and capabilities

2. Complete blue section for key accounts &

corresponding green for ourselves

3. Cluster key accounts with other similar customers

within value stream

4. Complete blue section for value stream &

corresponding green for ourselves

5. Reflect on the process (CAP-Do) and create standard

work (SDCA).

CA

P-D

o

SDCA

People SDCA

Process SDCA–PDCA-EDCA

Product/Service SDCA

Place (Markets/Platforms)

SDCA-PDCA-EDCA

1.Challenge 2. Current Condition

3. Target 4. Path

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Existing Customers with New Needs

New Customers with New Needs

Existing Customers with Existing Needs

New Customers with Existing Needs

Clusters

Existing Customers with New Needs (PDCA)

New Customers with New Needs (EDCA)

Existing Customers with Existing Needs (SDCA)

New Customers with Existing Needs (PDCA)

Clusters

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PDCA: Existing Customers with New

Needs

EDCA: New Customers with New

Needs

SDCA: Existing Customers with Existing Needs

PDCA: New Customers with Existing Needs

Lean

Re-Sell Re-Gain Retain Renew Refer

PDCA: Existing Customers with New

Needs

EDCA: New Customers with New Needs

SDCA: Existing Customers with Existing Needs

PDCA: New Customers with Existing Needs

Lean

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Funnel of Opportunity

Step 1:

Key Customers

Step 2:

Job Mapping

Step 3:

Force/Field Analysis

Step 4:

Our Promise

Step 5: Sales/Market

Activities

Step 6:

Branding

Step 7:

Resources Investments

Step 8:

Cluster

Step 9:

Co-Create Vision

Step 10:

Identify Adjacencies

Step 11:

Listening & Learning

Step 12:

Sustain & Grow

Applying Kata (Deliberate Practice) to the Cycles of Lean

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Job Instruction

Job Methods

Job Relations

Level of Knowledge

Level of Skill

Training Within

Industry 5 Needs of a Supervisor

Eric Ries from his book, The Startup Way (Published by Crown Publishing, 2017)

“Tomoyama-san said something I will never forget: “This is the missing half of the

Toyota Production System. We have a system that is outstanding at producing

what we specify, with high quality, but we don’t have a corresponding system for

discovering what to produce in the first place.” He explained that Toyota had

become so advanced in its ability to efficiently produce existing products that it

had lost something of its early innovative spirit.”

- Shigeki Tomoyama (who at the time was the chief officer of the IT and ITS groups at Toyota)

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Standard

Do

Check

Act

Explore

Do

Check

Act

Plan

Do

Check

Act

PDCA = Knowledge Creation

• Knowledge is limited at beginning

• Key information not known

• Learn by experimentation

• Feedback to justify hypotheses

• Each cycle closer to the goal

Are You Hiring Learners?

Explanation

Interpretation

Perspective

Self-Knowledge

Empathy

Application

Six Facets of Learning derived from Understanding by Design by McTighe & Wiggins

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Customer Satisfaction

Just in Time Jidoka

Employee Satisfaction Basic Stability

How do you increase customer satisfaction to build brand loyalty?

How do you improve

collaboration with customers to boost joint

productivity?

How do you develop

individual/orgs know how to

increase customer productivity?

How do you encourage problem solving to better engage customers &

grow human capital?

How do you build LEARNING environments conducive to mutual trust

and develop great teams to nurture social capital?

5 Questions for

Sales & Marketing

SDCA

PDCA

EDCA

CAP-Do

Create a Learning Organization

Reflection

Lean Thinking Practices

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30

The Cascading Effects of Lean in Your Marketing

We are CONNECTING!

When you join the Lean Marketing Lab, you will receive the Marketing with Lean book series

Orientation

Engagement

New Functionality

Different Data Sets

Old Functionality

Advocacy - Growers

Normalized Data

Job Instruction

Job Method

Job Relations

6s Your Documents

Chem/Growers/Packers