Oct 2008 Presentation Connecting Culture To Quality Improvement

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Presentation to ASQ Section 1508 by Dr Wende Brown, Oct 2008

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Oct 2008 Presentation Connecting Culture To Quality Improvement

  1. 1. Connecting Your Culture to Quality Improvement Wende Huehn-Brown Ph.D. October 13, 2008 Prepared for: Overview Improvement Methodologies Culture Continuous Improvement Understand Leadership Roles Connect Learning Requirements Support Collaboration 1
  2. 2. BPM Institute Improvement Methodologies in Use (multiple responses allowed) Six Sigma 70% Balanced Scorecard Lean Enterprise 60% Total Quality Management Rummler-Brache 50% Process Reengineering PQMI 40% Activity Based Costing Value Chain Analysis 30% Theory of Constraints SCOR 20% TMF eTom VCOR 10% ISO 9000 0% Sarbanes-Oxley Percent Response CMMI Other Adapted from: BPM Strategies, BrainStorm Group, Inc (2006) Cross Industry Survey Research Focus Are lean enterprise and six sigma approaches applied to drive continuous improvement? Mixed Results Does your organization have a cultures that strives for continuous improvement? 2
  3. 3. Analysis of Results Population variance (F test) major issues: Leaders committing adequate resources and showing long-term commitment. Leaders committing adequate resources and improvements linking to strategic goals, objectives, and metrics. Linking improvements to strategic goals, objectives, and metrics and focusing these initiatives on the customer. Analysis of Results Population mean (t test) major issues: 22 sets of questions highlighted concerns on the mixed execution of key characteristics for continuous improvement. 11 of these issues related to supply chain management ! 3
  4. 4. Analysis - Suppliers participation issues with … Leaders supporting initiative with their behavior and decisions. Organizations committing adequate resources. Management showing long-term commitment. Linking improvements to strategic goals, objectives, and metrics. Continuous learning shared, encouraged & acted on at all levels. Organizations challenging, synthesizing & sharing results. Using cross-functional teams. Initiatives focusing on the customer. Benefits consistently realized that have a positive impact. Analysis of Results Population mean (t test) major issues: Initiative focusing on the customer with issues of: Continuous improvement practiced daily by everyone that is fast enough and broad enough. Employees involved and satisfied at all levels of the organization. 4
  5. 5. Analysis of Results Six critical relationships identified (correlation analysis): 1. Leadership supporting initiatives with their behavior and decisions and management showing long-term commitment. 2. Continuous learning is shared, encouraged and acted on at all levels and continuous improvement practiced daily by everyone yielding fast and broad enough changes. 3. Continuous learning is shared, encouraged and acted on at all levels and organizations challenging, synthesizing, and sharing results of projects. Analysis of Results Six critical relationships identified (continued): 4. Continuous improvement practiced daily by everyone yielding fast and broad enough changes and focusing on their customer. 5. Continuous improvement practiced daily by everyone yielding fast and broad enough changes and employees being involved and satisfied at all levels of the organization. 6. Organizations challenging, synthesizing, and sharing results of projects and focusing on their customer. 5
  6. 6. Questions … Are you surprised? Where do we go from here? How can we put continuous improvement back into our culture? Leadership Learning Collaboration Continuous Improvement Intended to focus on creating an ongoing improvement journey (long-term): Combat Complacency Discontinuous Flexibility Snail Pace Change and Innovation Strive for Excellence People & Process Knowledge & Skills Technology Across Supply Chain Systems Thinking Challenge Assumptions/Status Quo Culture in which Everyone is Involved “Way of Life” Evolving Mindset (not Tools) Sense of Urgency 6
  7. 7. Leadership Role in Improvement Directs and support initiatives by reinforcing approaches with own behavior and decisions Performance measurement systems and rewards Giving support (i.e. time, money, training, resources) Communications (i.e. newsletters, reports, information) Regular progress review meetings (i.e. week, month) Participation in actual events or projects Follow through on various needs to complete projects Encouragement (not blaming) and Ideas (not know it all) Attend training too (not exempt, but involved in learning) Respect for everyone and work to build trust Build consensus and connect decisions to achieving goals Others …. Leadership Role in Improvement Commit adequate resources to facilitate and support needs. Watch time constraints and balance output with improvement (often treated optional) Listen and help in overcoming roadblocks that are preventing progress (go to the source for the facts) Caution if fighting daily fires, may be too deep reacting to crises and not managing the system Balance continuous improvement with innovation Focus on priorities that improve customer value Build a stronger foundation (i.e. stabilize system) Understand trade-offs and interdependencies Others …. 7
  8. 8. Leadership Role in Improvement Commit to supporting approaches as a long-term journey. Avoid ‘flavor of the month’ mindsets Do not get complacent (you are never done) Do not judge results too prematurely Watch pace of improvement (do not be too slow in getting people involved) Keep communications ongoing Illustrate results and lessons learned Share vision and evolving environmental conditions Support experimentation Others …. Leadership Role in Improvement Changes and improvements pursued in approaches need to be linked directly to strategic goals, objectives, and metrics Choose metrics that drive the ‘right’ behavior Watch resistance to change metrics that are flawed Link metrics to rewards and incentives Build understanding on what the strategic goals and objectives are and why (‘big picture’) Connect opportunities for improvement to strategy Explain strategic needs and challenges openly Understand risks and alternatives Respond quickly to changing conditions Others …. 8
  9. 9. Learning Requirements in Improvement Continuous learning needs to be shared, encouraged, and acted on at all levels of the enterprise Embed in the way an enterprise operates (formally and informally) Watch inability to find the time or resources that effects committing to learning long-term Changes and improvements are limited and resisted when knowledge is not shared adequately Use variety of methods (i.e. self-study, on-the-job, educational degrees, event out-briefings & lessons learned, central database & Intranet website, suggestions, rewards & incentives, pre- project training, coaching & mentoring, open door policies, etc.) Providing corporate training support (i.e. master black belt) that travels across all multiple locations in the organization Others …. Learning Requirements in Improvement Continuous improvement is meant to be practiced by everyone throughout an organization. Stimulate broader ideas and faster changes over time People are anxious to improve, but often don’t have the knowledge needed which results in limited involvement or resistance to change Plan actions at all levels of the organization to build learning, responsibility, and collaboration Focus improvements on needs to be more competitive Use cross functional teams better on improvements Build trust and open work environment Nurture people to become part of the system Others …. 9
  10. 10. Learning Requirements in Improvement Organizations need to challenge, synthesizes, and shares results of improvement projects across the enterprise Keep communications ongoing (i.e. publishing, posting, explaining results to everyone, reinforce) Share projects across the organization (cross functional learning as well as other opportunities) Assign responsibility and accountability for projects Use metric scorecards in several places that are at a level where people understand how their behavior and decisions impact those results Watch thinking contradiction is lack of cooperation, drive more constructive feedback with alternatives Others …. Support Collaboration Use cross functional teams for improvement approaches Grow use not only internally, but extend across the enterprise into the supply chain Grow further expertise and use other experiences for broader ideas May be time consuming or more difficult, but vital for growing more competitive needs and abilities Learn other processes or systems to better understand interdependencies and complexities Make improvement needs more obvious and visual Others …. 10
  11. 11. Support Collaboration Suppliers participate in improvement initiatives Loosing out on potential opportunities when not linking suppliers to improvement initiatives Often seen in limited areas or issues Many organizations rely on suppliers for specialist needs Watch perception you need to “fix your own house” first when suppliers may help with these challenges Consider evolving trends: environment, markets, energy, technology, competitors, transportation, political, etc. Competition is between supply chains Focus on win-win initiatives Others …. Support Collaboration Improvement approaches should help to better focus on the customer. Need quality information on current & future expectations Must meet and exceed specific requirements May offer training and suggestions for mutual gains Should drive improvement projects and priorities Watch overreacting to isolated customer issues (can lead further system complexity and other issues) Earn customer quality awards/certifications for suppliers Get customers involved in improvement projects as it can lead to further opportunities Link metrics to customer expectations (use feeding metrics to leverage and push lower level performance) Do customer surveys prior new jobs or designs. Others …. 11
  12. 12. Support Collaboration Benefits need to be consistently realized from with the improvement approaches to show a positive impact on the enterprise Watch communicating results that are conclusive or persuasive (sends mixed message) Understand that poor economic conditions may not illustrate results affectively (i.e. macro measures may not illustrate impact of improvements) Balance qualitative/quantitative & short/long-term measures Many organizations struggle to design measures at the right level of the organization to support quick feedback Use metrics to help sustain the results and point to further improvement opportunities Develop a plan for organizing, controlling, and leading progressive benefits Others …. Support Collaboration Overall, employees at all levels of the enterprise need to be involved and satisfied with the improvement program Erratic efforts and results are driving frustrations Often employees have doubts and discomforts due to not experiencing leadership, learning, collaboration Watch employee perceptions as it directly affects their level of participation Focus on building a mindset for improvement “… culture is 10 to 20+ years old ...” “we've always done it that way … why change?” Build daily improvement as a habit practiced by all Align direction, thoughts, actions, and decisions Must have knowledge in order to see and act Others …. 12
  13. 13. Closing Recommendations Are your improvement approaches creating continuous improvement? Not just a buzz word for management’s initiatives But a structured operating environment or culture Must not forget the basic aspects of leadership, learning, and collaborating Weaknesses affecting competitive abilities and dissatisfaction in improvement methodologies Erratic deployment of continuous improvement affects overall results and needs to be better understood The operating environment is dynamic Can not be complacent nor operate in vacuum Support change and challenge status quo Questions ? Wende Huehn-Brown Phone: 727-341-3131 Email: huehnbrown.wende@spcollege.edu 13

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