UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE… · 2015-09-10 · Lean means less of many things...

UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE Callie Woodward Driving change through continuous improvement

We will explore… • How Continuous Improvement increases the focus on changes

that create value to the customer • Tim’s Journey • Addressing the cultural impact of Continuous Improvement • How OD and CI can be used in parallel to improve

organizational results • Meeting resistance head on: addressing management and

employee concerns.

Topics

•Continuous Improvement 101 •Tim Hortons’ Continuous Improvement Journey

•Building a Continuous Improvement Culture

•A Continuous Improvement Strategy •How to build a Roadmap.

CI 101

Continuous Improvement (CI)

CI is the consistent evolution of the business driven by principles embedded in the organizational culture and delivered through a framework of integrated disciplines, e.g.: •Lean management •Six Sigma •Project management •Change management

Continuous Improvement Thinking is about ... Always focusing on customer needs and value

Fostering continuous change and working with teams to come

up with solutions Sustaining improvements - tools, rules, and principles

Making process improvement a part of daily life - the

Plan-Do-Check-Act cycle

Continuous Improvement is about people! • Engaging all minds • Developing people • Empowering people

Critical Concepts of Lean

What is ‘Lean’? • The ability to accomplish more with less and more…

• Lean means less of many things — less waste, shorter cycle times, fewer suppliers, less bureaucracy.

• But Lean also means more — more employee knowledge and empowerment, more organizational agility and capability, more productivity, more satisfied customers, and more long-term success.

“Lean has brought to everyone vastly improved products and services — and it’s brought them faster, cheaper, and more reliably.”

Lean for Dummies (Natalie Sayer, Bruce Williams, 2007)

Presenter

Presentation Notes

rm success.

The pursuit of the perfect process

• You are in business to sell products and services to customers.

• It is the customer, and only customer, who establishes what is of value.

• You design processes that create value for your customer. • Waste can creep in to your process and diminish the process

of value creation.

A perfect process has no waste. Perfect processes maximize customer value.

Process Flow

3 2 1

“Can Do Capacity”

Before: Well-intentioned Chaos

After: Orderly Sequenced Aligned Team Based

A Continuous Improvement Organization is……Consistently

•Engaging and satisfying customer(s). •Focused and aligned to realize opportunities

•Proactively Innovative •Continuously identifying and realizing opportunities within the market place.

Koffee Kaizen

• Please run Koffee Kaizen

TIM’S JOURNEY

Why CI at Tim Hortons?

• Lean launched in 2008 to: • Improve competitive advantage through continuous

improvement • Recognize a Lean cultural evolution could have

significant impact to the organization • Strong alignment between our values and key Lean

principles

Tim’s Past: Where we came from… • Why embark on a CI Journey?

• Can not operate in the future as we have in the past • Managing our growth and scale • Utilizing resources better (time, treasury, & talent)

• What we set out to gain

• 30-50% improvement – capacity (do more with the same), quality (do it better), time (do it faster) and cost (do it cheaper)

• Employee engagement – ownership of problems and opportunities, increased job satisfaction and work-life balance

Tim’s Roadmap

Tim Hortons' CI Maturity

2008 2011-2012

• Governance Structure

• CI priorities

2009

Time New CI practitioners Corporate CoE & Governance Legend: CI value stream and PM

• Value stream PowerChanges

• Governance Scorecard

• CI priorities


• Pilots

2010

• Strategy & VS Scorecards

• Ideation • Value stream

Training • E-learning • Apprentice

Program

• Standard Work • Co-location • More Pilots

• Strat-on-a-page

• Scorecards • Ideation • Continued

Training • CI Workshops

• 1st Level 3 Apprentice

• Operational projects

• Coaching

2013-2014 2017-2018 2015-2016

• Delivers products to the end customer, with: • minimum waste • maximum quality • minimal cost

• Provides better customer value by responding more quickly, and predictably to customer needs

• Enables the organization to become more capable, efficient, and flexible

• Creates a process cycle that translates to superior financial performance

A Continuous Improvement environment …

Presenter

Presentation Notes

Lean is a continuous improvement methodology designed to constantly generate value for the customer. It’s a way to focus on continually providing a higher quality product or service that is less costly, and always available to meet customer demands. In a Lean environment, it is not about working harder… it is about establishing a system so work/information can flow through the process at the pace of customer demand … The speed and effort required of people decreases, as the speed at which work flows through the process increases

Flow first, the rest later!

• By focusing on immediate elimination of process bottlenecks and key areas of waste, improvements are realized sooner

• Further study, review, and enhancements can be applied after flow is implemented

Presenter

Presentation Notes

“Pull the string, and it will follow wherever you wish. Push it, and it will go nowhere at all.” Dwight D. Eisenhower Challenge: change our habits from pushing to pulling.

A “CI” CULTURE

Presenter

Presentation Notes

This is where the real OD work is needed…. Levels of culture Our values PDCA (and potential conflict) Change Management Generating awareness: Education and communication Building skills: Training Evolving leadership behaviours Organizational structure implications Cross-functional moves “Co-location” project Governance

A Continuous Improvement Organization Culture is…… • Guest, Owner, and Employee Focused • Solution Finding vs Problem Solving • Efficient, Effective, Innovative • Fast, Flexible, Agile • Exciting, dynamic and invigorating • Top Down Managed & Bottom-up Lead • Collaborates Horizontally • Strategic Alignment across the organization • Disciplined Planning, Prioritization & Decision Making • Always learning

Mass Production Lean Enterprise

Primary Business

• Product-focused strategy • Focus on economies of

scale

• Customer-focused strategy • Focus on shifting

competitive advantage

Organizational Structures

• Hierarchies with functional lines

• Encourages functional alignment

• Inhibits information flow

• Flat, flexible structures • Encourages individual

initiative and the flow of information

Operational Framework

• Following direction • Fear of problem

identification

• Standard work • Focus on problem

identification and experimentation

Characteristics of a Lean enterprise

Rethinking hierarchy

PDCA

IImprovements in Process Outputs

Disciplined and consistent focus for sustaining

improvements

Repeating the PDCA cycle can bring us closer to the goal - usually a perfect process!

CI is a culture ‘evolution’ for Tim Hortons

.

Underlying Assumptions

Norms and Values

Artifacts and Behaviours

FROM…. …..TO

Pride in the Company

Passion and belief in the Brand

Collegiality and Fun

Silos, turf battles, divided camps One team, one goal, one voice

Unclear roles and decision rights Clear leadership and accountability

Bureaucracy and churn Efficient and fast coordination

Rushing to execute and keep up Planning, prioritizing… to execute with agility

Reacting to the market and competition

Insight and foresight to win in the market

Our leadership behaviours

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Presentation Notes

Should support Lean leadership

Tight-Loose Cultures

www.izzoconsulting.com

Low Clarity High Empowerment

High Clarity High Empowerment

Low Clarity Low Empowerment

High Clarity Low Empowerment

Loose / Loose Tight / Loose

Tight / Tight Loose / Tight

Clarity

Empo

wer

men

t

Source: Dr. John Izzo, The Izzo Group

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We are aligned toward the achievement of clear strategies and goals. We embrace flexibility and creativity and are empowered to deliver results. We are accountable.

Tim Hortons Values

We … are ‘Can Do’ We … Seek Opportunities We … Achieve Excellence We … are Fair and Ethical We … are an Amazing Team

Presenter

Presentation Notes

We … are ‘Can Do’ Our success comes from making our Store Owners’ businesses grow and completely satisfying our customers. To do this, WE act as partners in the business; being responsive, hands on, and paying attention to detail. We … Seek Opportunities Our entrepreneurial spirit drives us to find new opportunities. It is this determination and passion that gives us both the power to succeed and enables us to learn from the experience. We … Achieve Excellence We believe in excellence in everything we do. We constantly strive to be the best, proudly facing changes and challenges head on. � We … are Fair and Ethical We deal with our co-workers, Store Owners, Customers and Suppliers honestly. We treat them with the utmost respect, fairness, compassion and loyalty. We … are an Amazing Team We are a strong team, relying on support and open communication from each other. We are humble, hardworking, friendly, caring and passionate about our business.

A “CI” STRATEGY

Pain Points 1. Organization feeling hand-cuffed and clogged by decision

making? 2. Operates in silos and struggle to coordinate across? 3. Stretched and frustrated by rushed initiatives? 4. People practices fractioned? 5. Everyone collaborating? 6. Losing your competitive edge?

What a CI organization does • Excels at Root Cause Problem Solving & Seeking Opportunities

Towards Perfection. • Measures what Matters and reacts accordingly • Collaborates Cross-Functionally through Processes • Disciplined Planning & Decision Making • Focused & aligned on Strategy, Mission & Values • Flawless Execution • Designs Smart efficient and effective processes, products and

services. • Adheres to Standards and Standardized Procedures • Sees every error and mistake as an opportunity to learn and progress

– not to blame. • Embraces Change • Fosters Employee Empowerment & Development

Employee Capabilities Required • Mindset:

• “I have the skills and I want to use them to THI’s benefits” • Prioritization of activities, not all firefighting, time for CI

• Skills & Competencies: • Problem Solving Root Cause Analysis • Value Stream Mapping and Standards Design • CI Project Management (DMAIC) • Change Management • Lean & Six Sigma Methods • Strategic Planning and Deployment (Hoshin & x-chart) • Analysis and Reporting (scorecards) • Facilitation • Coaching & Mentoring • Leadership • Collaboration • Communication

Organizational Support Requirements • Accountability, Governance & Reporting Framework • Forums & Opportunities for Practice and Learning, and Deployment • Forum for Prioritization, Strategy Alignment & Cascade/Deployment. • Training & Development • Appropriate Templates, Tools & Technology • Lean & Six Sigma • Standard guidelines and procedures • Forum for idea & solution generation • Rewards and Recognition • Resource & Succession Plans • Data Integrity and Reporting capability • Central CI group as “Guardian of the Process”. • Senior Leadership

CI Model

Grass Roots (Bottom Up)

CI embedded in Strategy.

(Top Down) CI is Support Cavalry

Embedded Model.

(Workgroups and Gemba )

CI is everywhere as the key

management philosophy

overall

CI is a key and very important part of my role within the organization.

Managing the transformational change

• Generating awareness through education and communication • Building skills through formal training and action learning • Evolving leadership behaviours • Addressing organizational structure implications • Ensuring effective governance

CI Governance

Strategy Sponsorship

Process Management

Building Capability SI & CI Management

Continuous

Improvement Team

Senior Leadership

Team

Executive Team

Project Teams Execution Excellence

Building Capability

Lean Fundamentals eLearning

Simulation

Pow

er C

hang

e (K

aize

n)

Leadership

Development (Tight/Loose)

Pow

er C

hang

e (K

aize

n)

Pow

er C

hang

e (K

aize

n)

Pow

er C

hang

e (K

aize

n)

Pow

er C

hang

e (K

aize

n)

Change Management

Project Management

Presenter

Presentation Notes

Lean learning for all employees Focus on “Lean Leadership” development from middle managers up Focus on management competency development in support of the lean journey (managing for daily improvement: coaching, goal setting/cascading, etc) Focus on strategy deployment practices with senior leaders Leverage eLearning where possible to optimize delivery and minimize cost Adopt a hands-on approach to roll-out and implementation: deliver training through PowerChange (action-learning-based improvement events) Development of Apprentice Program to “seed” lean experts throughout the business. Best in Class CI Organizational Stats 100% level 1 capability (White belt) 40-50% level 2 capability (Yellow belt) 10% level 3 capability (Green belt)* 1-5% level 4 capability (Black belt)** *5-7% of population deployed Part-Time (10-15% capacity) spent on Green belt work. **1% of population deployed Full-Time on Black belt work. Typically, each Level 4 has responsibility for coaching five Level 3s.

Strategy Deployment & Execution Continuous Improvement

Reporting Organizational Efficiency &

Effectiveness

Process Efficiency &

Effectiveness KTLO Projects

Strategic Project Management

Cascading Strategy

Strategy

Process

Individual

Presenter

Presentation Notes

Direct link between individual and Strategy Know strategy requirements Drive accountability for results Know needs for improvements 1. Focus started with NPI and NSC; (a) Hoshin planning – started with NPI and NSC related to the organizational strategy for growth. (b) Cascading strategy – assign process ownership and accountability. Understand the Process, Improve the Process. © Scorecarding and metrics – Measure effectiveness and efficiency. “Process Health” 2. “other” improvements included: (a) Roll-up. How to make the contest more efficient and effective, ensuring guest satisfaction and thus, customer loyalty. (30% increase in efficiency). (b) Employee On-boarding. © Customer Support (Call Centre). Reduced the Que to “0”.

Measuring Results exposes Opportunities

Current YTD

New Product Introduction

Measure QTD% Fill Rate- Right Idea

Warehouse50%

% Fill Rate Ready To Go Supermarket

TBA

% Gate Passage Violation on First Iteration

TBA

% Process on Takt Time to PPP

TBA

Current YTD

Deveopment

Measure QTD

# Store Openings 100%

# Deficiencies TBA

Time to resolve Deficiencies TBA

ROI/ 1st years sales TBA

Current YTD

Work Place Injuries TBA

Supplier Scores TBA

Cost per Case TBA

Perfect Order 100%

Supply Chain

Measure QTD

Current YTD

Perfect Order TBA

Same Store Sales TBA

New Product Launches TBA

Development Plan 50%

Executive Strategy Scorecard

Measure QTD

Improvement Improvement Improvement

O P P O R T U N I T I E S

R E S U L T S

Risks in CI transformations

Source: David Meier, Lean Associates, Inc.

Potential burn-out

Giving up early Failure to

develop depth

Failure to develop process

Belief that benefits are

over

Accepting “good

enough”

CI is not just the implementation of a set of tools. It is a commitment to the set of tenets and behaviours that creates a CI organization and keeps it there.

time Resistance Phase

Initial Success

Big Success

Slowing Down

Plateau Continuous Improvement

Proc

ess R

esul

ts

Opportunities 1. Organization feeling hand-

cuffed and clogged by decision making?

2. Operates in silos and struggle to coordinate across?

3. Stretched and frustrated by rushed initiatives?

4. People practices fractioned? 5. Everyone collaborating? 6. Losing your competitive

edge?

1. Disciplined Planning & Decision Making

2. Collaborates Cross-Functionally through Processes

3. Flawless Execution 4. Fosters Employee

Empowerment & Development 5. Focused & aligned on Strategy,

Mission & Values 6. Designs Smart efficient and

effective processes, products and services.

WHAT’S NEXT?

0

1

2

3

4

5

Accountability to Lead Lean

Willing

Able

Standard Work & Reliable Methods

Idea Generation

Scorecards

Cascading Strategy

Integrated Value Stream Management

THI Lean Journey

THI Present: Where we are now…

THI Future: Where we are going…

0

1

2

3

4

5 Accountability to Lead Lean

Willing

Able

Standard Work and Reliable Methods

Idea Generation

Scorecards

Cascading Strategy

Integrated Value Stream Management

THI CI Future Targets for 2018

Tim’s Roadmap


2008 2011-2012


• CI priorities

2009

Time

• Operational projects 20%

• CI projects 80%

• Coaching • Sustain PMO • Track

embedment

• Level 1 or 2 (100%)

• Level 3 (8%) • Level 4 (0.5%)

New CI practitioners Corporate CoE & Governance Legend: CI value stream and PM

• Sustain EPMO • Maintain

inventory of potential, CI initiatives

• Sustain toolkits

• Facilitate CI education



• CI priorities


• Pilots

2010




Program


• Strat-on-a-page


Training • CI Workshops


• Operational projects

• Coaching

• CI & PM framework

• Toolkits • Launch EPMO • Integrated

Scorecards • Learning

Strategy

• Operational projects (80%)

• CI projects (20%)

• Coaching • Standard Work

• Level 3 (1%) • Level 1 (50%)

• Sustain EPMO • Maintain

inventory of potential, CI initiatives

• Sustain toolkits • Facilitate CI

education

2013-2014 2017-2018 2015-2016

• Level 1 or 2 (100%)

• Level 3 (5%)

• Operational projects (50%)

• CI projects (50%)

• Coaching • Launch PMO

Tim’s Roadmap


2008 2011-2012


• CI priorities

2009

Time

• Project execution 20-40%

• CI leadership 60-80% ((Coaching, facilitation, standard work, sustain PMO, track embedment)

• Level 1 or 2 (100%)

• Level 3 (8%) • Level 4 (0.5%)

New CI practitioners Corporate CoE & Governance Legend: CI value stream and PM

• Ensure strategy alignment & integration

• Sustain EPMO • Maintain inventory of

potential, CI initiatives

• Sustain toolkits • Sustain CI capability • Drive adherence to

CI frameworks & standards

2013-2014



• CI priorities


• Pilots

2010




Program


• Strat-on-a-page


training • CI workshops • Build roadmap


• Project execution • CI leadership

(Coaching,, facilitation)

2017-2018


• CI & PM framework

• Toolkits • Launch EPMO • Integrated

Scorecards • Facilitate CI

capability building

• Project execution (80%)

• CI leadership (20%) (Coaching, facilitation, standard work)

• Level 3 (1%) • Level 1 (50%)


• Sustain EPMO • Maintain inventory

of potential, CI initiatives

• Sustain toolkits • Facilitate & review

CI capability

2015-2016

• Level 1 or 2 (100%)

• Level 3 (5%)

• Project execution (40-60%)

• CI leadership(40-60%) (Coaching, facilitation, standard work, Launch PMO)

Presenter

Presentation Notes

Value stream CI resources execute projects as PM 20% of time Value stream CI resources spend 80% of time leading CI practice for value stream Continue coaching role PMO Begin to track embedment vs. benchmark targets 1% of workforce L4 black belts 10% of workforce L3 green belts

THI’s Lean Future: 2013-2014 • Building Capability & Seeding CI

• Communication of Continuous Improvement

opportunities and results.

• Strategy Cascade & Execution Support

• Accountability to Lead Lean

Tim Q

Please run TimQ/ countdown

UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE… · 2015-09-10 · Lean means less of many things...

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Transcript of UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE… · 2015-09-10 · Lean means less of many things...