The Outstanding Organization: The Power of Clarity
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The Outstanding Organization: The Power of Clarity Presenter: Karen Martin March 22, 2012
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Transcript of The Outstanding Organization: The Power of Clarity
The Outstanding Organization:The Power of Clarity
Presenter: Karen Martin
March 22, 2012
Founder of Karen Martin & Associates (1993)
Thought leader in applying Lean to the service sector and office areas within manufacturing
Teaches at University of California, San Diego’s Lean Enterprise program
Email: [email protected]
Twitter: @karenmartinopex
Karen Martin, Principal
2012 WebinarsDate Topic
March 22 The Outstanding Organization: The Power of ClarityApril 5 The Outstanding Organization: The Power of FocusMay 3 The Outstanding Organization: The Power of DisciplineMay 17 The Outstanding Organization: The Power of Engagement
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Release Date: July 8, 2012 (McGraw-Hill)
Available for Preorder: www.bit.ly/km-too
Success with Improvement
0%
10%
20%
30%
40%
50%
60%
70%
2001 – The Economist
Temporary LastingNone
17%
63%
20%
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…A Decade Later
2010 – Accenture
0%
10%
20%
30%
40%
50%
60%
70%
80%
Minimal financial impact
Needs re‐evaluation, restart or complete
makeover
“Mixed” to “disappointing”
results
33%
58%69%
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Up to 98,000 deathsannually due tomedical errors.
8th leading cause ofdeath in U.S.
To Err is HumanInstitute of Medicine, 1999
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7
Southwest Airlines’ Boeing 737 has 137 passenger seats.
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98,000 lives lost
Improvement Goal:Reduce by 50% in 5 years.
To Err is HumanInstitute of Medicine, 1999
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Not. Even. Close.
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Something Is Terribly Wrong…
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2009
2005 2010
2010
2011
Progress has been slow.
Journal of the American Medical Association
Annual death toll from
medical errors is closer to
200,000.Dead by Mistake
Hearst Newspapers Special Report
180,000 Medicare patients die
annually from medical errors.
Office of the Inspector General
No significant change in rate of
preventable errors.
New England Journal of Medicine
33% hospitalized patients are harmed;
7% result in permanent injury or
death.Health Affairs
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What are we missing?
We need to improve
how we improve.
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Mindsets & Behaviors
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Lack of ClarityLack of Focus
Lack of DisciplineLack of Engagement
The Outstanding Organization
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Business Results
CHOS
Prob
lem Solving
Continuo
us
Improvem
ent
Resilience
Core Capabilities
April 5 May 3 May 17
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Lack of ClarityLack of Focus
Lack of DisciplineLack of Engagement
TruthTruth
TruthTruth
TruthTruth
TruthTruth
Truth18
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Ambiguity Abounds…
• Organization purpose & vision• Customers & products• Business goals & priorities• Policies & procedures• Roles & responsibilities• Process performance• Problem solving & decision making• Communication
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Who are your customers? What problem does your good
or service solve?
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What value do these consumer goods companies provide to their customers?
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You must indoctrinateall new hires into who the organization’s customers are and what they value.
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What is Your Improvement Strategy?
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How does work get accomplished? And well how are we doing at it?
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Customer
Process1
Process2
Process3
Process4
LTPT
LTPT PT PT
LT LT
LT = Lead (Throughput) TimePT = Process (Touch) Time
Key Lean Metrics: Quality
• %Complete and Accurate (%C&A)– % time downstream customer can
perform task without having to “CAC” the incoming work:• Correct information or material that was
supplied• Add information that should have been
supplied• Clarify information that should or could have
been clear27
Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT
Approve PO 15 240 100% Fax PO to Account Manager 5 20 100%
Notify customer when they can expect delivery
15 300 95%
Review and approve PO; send
to Order Entry 5 240 100%
Enter order into SAP 10 240
Step # ? 986
Finance / Credit
Function / Department
LT UnitsHours Worked per Day
37,500Paul Dampier
Occurrences per Year
Current State Metrics-Based Process Map
26-Nov-078
Sam Parks
Date Mapped Michael Prichard
Order FulfillmentProcess NameSpecific Conditions Domestic orders through sales force
PT Units Process Details
Mary TownsendSean MichaelsRyan AustinDianne O'Shea
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Mapping Team
Order Entry
Account Manager
Sales Rep
Customer
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Processes MUST be Clearly Documented
Every key process…
2-5 Key Performance Indicators
Monitored Continually
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Gaining Clarity via Visual Management
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“Going to the gemba has been life changing for me as a leader.”
What problem are you trying to solve?
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Detailed Steps
1. Define and break down the problem.
2. Grasp the current condition.
3. Set a target condition.
4. Conduct root cause & gap analysis.
5. Identify potential countermeasures.
6. Develop & test countermeasure(s)
7. Refine and finalize countermeasure(s).
8. Implement countermeasure(s).
StudyEvaluate Results
9. Measure process performance.
10. Refine, standardize, & stabilize the process.
11. Monitor process performance.
12. Assess results.
Adjust
Do
Clarifying the PDSA Cycle
PlanDevelop
Hypothesis
Conduct Experiment
Refine Standardize Stabilize
Phase
Learning How to Clarify: A3 Management
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A3 Report
The vital role of the coach/mentor
Progressive Learning
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Gaining Clarity: Avoid “Fuzzy” Words
• Near / close / far• Short / long• A lot / a little• Many / few / much• Bad / good • Heavy / light• Seems
• High / low• Significant• Fast / slow• Young / new / old • Expensive / cheap• Long / short• “I think…”
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Release Date: July 8, 2012 (McGraw‐Hill)
Available for Preorder: www.bit.ly/km‐too
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Karen Martin, Principal7770 Regents Road #635
San Diego, CA 92122858.677.6799
[email protected]: @karenmartinopex
For Further Questions
Monthly newsletter: www.ksmartin.com/subscribe
