Strategy Deployment: Accelerating Improvement Through Focus and Alignment

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Strategy Deployment: Accelerating Improvement Through

Focus and Alignment

January 26, 2012 (Webinar)

Your experience with

Strategy Deployment

2

Haven't heard of

Heard of, but don'tunderstand

Understand, but haven'tdeployed

Beginning to deploy

Seasoned

47%

16% 16%

16%

5%

© 2012 Karen Martin & Associates, LLC

Your Instructor

Early career as a scientist; migrated to quality &

operations design in the mid-80’s.

Launched Karen Martin & Associates in 1993.

Provide business performance improvement and

Lean transformation support in office, service &

knowledge work environments.

Co-author of The Kaizen Event Planner; co-

developer of Metrics-Based Process Mapping:

An Excel-Based Solution; author of forthcoming

The Outstanding Organization (McGraw-Hill,

May 2012).

Instructor in University of California, San Diego’s

Lean Enterprise program.

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3

Karen Martin, Principal

Karen Martin & Associates, LLC


Webinar Schedule

Content

11:00 am -12:00 pm PT

Q&A

12:00-12:30 pm PT

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The Problem

1. Leaders are frustrated by the “little” measurable improvement they’ve seen.

2. Improvement professionals are not held in as high regard as they need to be.

3. Too much to do; too few resources; too little time.

4. Juggling multiple balls is: o Is inefficient

o Produces lower quality

o Produces chaos

o Slows results

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To what degree are your organization's improvement priorities:

Always Frequently Sometimes Never

Well-defined? 11% 38% 46% 5%

Well-communicated? 9% 32% 53% 6%

Stable? (i.e., priorities only

change when absolutely

necessary)

7% 33% 47% 13%

Aligned across the organization?

(i.e., departments do not work at

cross-purposes)

7% 22% 59% 12%

Poll – 760 newsletter subscribers

Booz & Company study findings

• 49% - company has no clearly stated list of priorities • 64% - biggest frustration is having too many conflicting priorities • 82% - functional departments get competing demands from different business units

The Evidence

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The Myth of Multi-tasking

• Not possible to do two conscious activities at once.

• You are “switch-tasking.”

• David Meyer – University of Michigan – Engineers switched between projects 5-8 times per

day

– Each switch added 20 minutes of process time

– If switch only 5x per day (1.7 hrs), adds 1.7 hrs per day = 407 hours (10 weeks) of process time per engineer

– In company w/ 15 engineers = 3 FTEs worth of labor.

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8


The Role of Focus in Achievement

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“The difference between successful people

and very successful people is that very

successful people say ‘no’ to almost

everything.”

— Commonly attributed to Warren Buffett

Apple’s Success

10

“…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

Project Results Due to Focus

1. Sporting goods manufacturer 1. Pre-SD = 24 new product launches a year

2. Post-SD = 73 new product launches a year

3. No additional resources; higher quality

2. Rockwell Automation

0

5

10

15

20

25

Pre-Focus Post-Focus

ProjectsStarted

ProjectsCompleted

3

12 12

20

11

The Reality…

You CAN’T Do It All – and do it well.

12

Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires…

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• Clarity – about what really matters.

• Consensus – about what really matters.

• Courage – to actively choose to “not do” or “not do now.”

The Countermeasure: Strategy Deployment

Aka Hoshin kanri; policy deployment

Hoshin – Direction; compass; shining needle

Kanri – Management

Developed in the 50’s; core element of

TQM movement

Integral part of Lean

Establishes “true north”

Two key parts: Creating the plan itself &

and fanatic management to that plan.

Purpose: Organizational focus & alignment

Aligns everyone toward a few high impact

objectives while also keeping them accountable

for their commitments through visual

management and review.

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15

Supply Chain - 2007 FG Lbs Sold/Total Hours Worked

84.8

86.3

90.6

93.0

95.2

105.9

80.0

87.0

94.0

101.0

108.0

115.0

FY '06 FY '07 FY '08 FY '09 FY '10 YTD '11

Productivity (Pounds / Hr Worked)

Pactiv

Implements

Strategy

Deployment

ThedaCare Implements

Strategy Deployment

Recession deepens 2.5x more

Medicaid patients

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Strategy Deployment Requirements

1. Executive buy-in.

2. Clarity about market needs and current performance.

Strong “go and see” practices.

Clear key performance indicators.

3. Clear, relevant, and well-communicated annual business

goals.

4. Strong consensus-building skills.

5. Strong accountability culture (project and task ownership).

6. Deep experience with establishing and managing to

measurable objectives.

7. Strong commitment to and experience with PDSA (plan-do-

study-adjust)—aka PDCA (plan-do-check-act).

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Key Feature: Catchball

18

Exec

Team

Sr. Mgmt

Middle

Mgmt

Frontlines

What?

How?

Who?

When?

What?

How?

Who?

When?

What?

How?

Who?

When?

What?

How?

Who?

When?








goals.


5. Strong accountability culture (project and task

ownership).



7. Strong commitment to and experience with PDSA (plan-do-

study-adjust)—aka PDCA (plan-do-check-act). 19

= Original Plan x = Complete

Action Step/ Kaizen Events Owner Deliverable Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec

1 - Identify top 10 products to be mapped Jim Top 10 identif ied and communicated 01/31/06 X

2 - Assign leaders to each product to be mapped Jim Leaders aw are of their products 02/03/06

3 - Lean training to all VSM Leaders Frank Consultant delivers training 02/15/06

4a - VSM kaizen for product A Jill Mapped and on the w all 02/22/06

4b - Complete actions to achieve 30% reduction in overall leadtime Jill Validated results 04/02/06

5a - VSM kaizen for product B Cindy Mapped and on the w all 03/15/06

5b - Complete actions to achieve 10% reduction in overall leadtime Cindy Validated results 05/12/06

6a - VSM kaizent for product C Wendy Mapped and on the w all 06/02/06

6b - Complete actions toachieve 28% reduction in overall leadtime Wendy Validated results 10/14/06

7a - VSM kaizen for product D Bill Mapped and on the w all 07/14/06

7b - Complete actions to achieve 12% reduction in overall leadtime Bill Validated results 07/30/06

8a - VSM kaizen for product E Jim Mapped and on the w all 08/16/06

8b - Complete actions to achieve 8% reduction in overall leadtime Jim Validated results 12/12/06

Background: Being new to Value Stream Mapping, we expect there to be many new things learned as we map the processes and make the

improvements. We will utilize the experience of a Consultant during our first year of mapping our processes.

Relation to Annual Objective: By mapping the processes and taking action to

improve the processes, we will reduced the time it takes from reciept of order to the

delivery of product. This will in turn result in increased sales when the customers

become increasingly satisfied with our quick response times.

Timeline

Planned

Complete

Date

2011

Action Plan

Status Red, Yellow, Green

(Actual and Predicted)

Date Created:

Dec. 12, 2005

Next Review:

Feb. 13, 2006

Improvement Priority:

3 - Value Stream Map 10 Processes

Management Owner:

Bob the Boss

Team: Jim, Bill, Jill, Cindy, Wendy

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goals.


5. Strong accountability culture (project and task ownership).



7. Strong commitment to and experience with PDSA (plan-

do-study-adjust)—aka PDCA (plan-do-check-act).

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Common Components of the A3 Report

Theme: “What is our area of focus?” Owner: Person accountable for results.

Plan Do, Study, Adjust

Background

Current Condition

Countermeasures / Implementation Plan

Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?

• Where? (if relevant)

Target Condition / Measurable Objectives

• Diagram of desired state

• Measurable targets – how will we know that

the improvement has been successful?

• Diagram of current situation or process

• What about it is not ideal?

• Extent of the problem (metrics)

• Problem statement

• Context - why is this a problem?

Root Cause & Gap Analysis

• Graphical depiction of the most likely direct

(root) causes

• What measurable results did the solution

achieve (or will be measured to verify

effectiveness)?

• Who’s responsible for ongoing

measurement?

• Where else in the organization can this

solution be applied?

• How will the improved state be standardized

and communicated?



Organizational commitment to and display

of key excellence-producing behaviors:

Clarity

Focus

Discipline

Engagement

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What if you don’t have that?

Start wherever you are.

Develop an “annual improvement plan” for

your department, division, work team, etc.

Use the features of SD that enable success at

any level.

Clear goals.

Discipline to both “do” (say yes) and “stop doing”

(say no).

Consensus / alignment

Fanatic management to assure excellent

execution.

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Current Condition

Point A

Target Condition

Point B

Environmental Factors

Problems Opportunities

Annual Improvement Plan: How to Get from Point A to Point B

25

Annual Improvement Plan

1. Gain clarity 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”

5. Create plan.

6. Manage plan via weekly updates (may be able to

reduce to monthly reviews – but be careful!)

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PACE Prioritization Grid

High Low Anticipated Benefit

Ease o

f Im

ple

men

tati

on

Dif

fic

ult

E

as

y

20

7

5 13

4 23

1

22 8 9

2

10

16

11

6

12

14 19

15

17

3 21

18

Figure 3.1 - Prioritization Grid

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0 0.1 0.2 0.3 0.4 0.5 0.6

Ea

se

of

Imp

lem

en

tati

on

Potential Benefit

Evolving Prioritization Grid Third dimension: Urgency

Mathematical Formula

Highest

priority


1. Gain clarity around overarching business

needs.

2. List everything you could do.

3. Categorize into:


Maybe

Eliminate


5. Create plan.

6. Manage plan via weekly updates (may be able

to reduce to monthly reviews – but be careful!)

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Simple Project Plan

Task Type Accountable Implementation Schedule (weeks)

Progress Date

Complete 1 2 3 4 5 6 7 8 9 10 11 12

Create visual board to track KPIs. KE Mary W. 100 25

75 50

Clearn up data base. Proj George S. 100 25

75 50

Create self-quality checklist. KE Sally R. 100 25

75 50

Create standard template. KE Sally R. 100 25

75 50

Modify weekly report. JDI Bruce M. 100 25

9/22/2011 75 50

100 25

75 50

100 25

75 50

100 25

75 50

100 25

75 50

100 25

75 50

Type: JDI = Just do it; KE = Kaizen Event; Proj = Project

30

31

X

# Action Item Owner Deliverable Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Status

(Red,

Yellow,

Green)

Core work team: Input/Review needed by:


TimelineRelationship to Annual Business Goal(s):

Due

Date2012

= Original Plan = Complete

Tier 1 Priority:

Tier 2 Priority:

Measurable Objective(s):

%

Complete

Date Created:

Next Review:

Executive Owner:

Tactical Owner:

Background/Scope:

Annual Improvement Plan Timeline

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Integrate DHR BeginMS-1

Ops

MS-2

Acct

Complete

Brad P

Complete New

Travel Program

Roll-out

Begin Complete Scott R Fred S

Roll-out Tablets to

Installation

Begin &

CompleteBrad P

Complete 360

Roll-outBegin Complete Justin C Steve R

Lisa D,

Marina,

SM, Tech,

Hal, Doug

Create Line-item

P.O.sBegin Complete Lisa B Mark C

Refinance credit

facil ityBegin Scott R

Complete ADP

Roll-outBegin Complete Gary O

Develop & Roll-out

Handheld 2.2Begin

MS-1

Clean Code

MS-2

Pilot

MS-3

Go live

Not

complete

until 2013

Steve C TBD

Complete GPS

Roll-outBegin Complete Steve C

RDs Cons.,

HR, Fleet

Complete "River"

(One Soft)

Roll-out

Begin Complete Lisa B

Develop Safety

ProgramBegin Complete Gary O

Tactical

OwnerOthers

Company ABC

Priorities

FY 2012 FY 2013Priority

Exec

Owner


1. Gain clarity around overarching business needs.

2. List everything you could do.

3. Categorize into:


Maybe

Eliminate


5. Create plan.

6. Manage plan via weekly updates (may be able

to reduce to monthly reviews – but be

careful!)

33


Weekly Updates: Purpose

Check progress.

Challenge thinking.

Remove obstacles to success.

Consider new and truly urgent needs.

Maintain alignment / consensus.

Demonstrate disciplined focus.

Success with new behaviors/habits embeds those new

behaviors/habits.

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Caution

Be sure you prioritize problems versus “solutions.”

Understand that consensus doesn’t mean 100%

agreement, but it does mean that 100% of the

people had an opportunity to provide input and

were heard.

Be sure you use the PDSA (PDCA) scientific

method for solving problems and capturing

opportunities.

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Phase Detailed Steps

1. Define the problem or opportunity.

2. Set a target condition.

3. Grasp the current condition.

4. Conduct root cause analysis.

5. Identify potential countermeasure(s).

6. Develop & test countermeasure(s).

7. Refine and finalize

countermeasure(s).

8. Implement countermeasure(s).

Study 9. Measure; evaluate results.

10. Refine and standardize.

11. Monitor performance.

12. Set a new target condition.

Adjust

Do

Clarifying the PDSA Cycle

Plan

To achieve focused improvement, you need…

• Resignation – Acceptance re: how much is humanly possible.

• Courage

– To seek the truth about current performance

– To make tough choices • Select only “must-do, can’t fail” initiatives

• Must choose to “not do”

• Convert from what you could do to what you will do

• Emphasis on needs versus wants

• Discipline – to stick with a plan.

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For Further Study

http://www.amazon.com/gp/product/156327311X/ref=as_li_ss_tl?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=156327311X

http://www.amazon.com/gp/product/0976315262/ref=as_li_ss_tl?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=0976315262

http://www.amazon.com/gp/product/156327342X/ref=as_li_ss_tl?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=156327342X

2012 Webinars

Month Topic

February A Factory of One – Dan Markovitz

March The Outstanding Organization: Achieving Clarity

April The Outstanding Organization: Achieving Focus

May The Outstanding Organization: Achieving Discipline

June The Outstanding Organization: Achieving Engagement

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The Outstanding

Organization by Karen Martin

Book launch – May 18, 2012

Available for preorder on

www.Amazon.com

http://www.bitly.com/km-too

http://www.amazon.com/gp/product/1439859930/ref=as_li_ss_tl?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1439859930

Your Questions

1. How do you use SD to keep participants focused on achieving their goals in a Kaizen Event?

2. How to hold managers accountable for goals & keeping them from getting side tracked on side jobs that arise.

3. How I can assist my org with SD from a non-supervisory position? (How on earth can I accomplish this???)

4. How it can be implemented in a hospital environment.

5. How strategy & actions are linked and deployed in bigger organizations.

6. How to engage management and gain total commitment to Lean.

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Karen Martin, Principal

7770 Regents Road #635

San Diego, CA 92122

858.677.6799

[email protected]

For Further Questions

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