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We’ve Had It All Wrong: 
Manage Processes, Not People
Webinar
November 1, 2012
 Founder: Karen Martin & Associates, LLC (1993).
 Consultant / Coach: Lead Lean transformations in 
office, service and ...
Last Webinar of 2012!
Metrics-Based Process Mapping:
What, When & How
Thursday, November 29
11:00 am – 12:15 pm Pacific Ti...
4
We have THREE
BIG
PROBLEMS.
5
Problem
6
Most businesses aren’t
performing as well as
they could and need to.
Common Organizational Woes
(cause and effect can be debated)
• Unclear vision; inability to focus
• Slim margins
• Unreali...
8
Problem
2010 Accenture Study
Success with Improvement Approaches
0%
10%
20%
30%
40%
50%
60%
70%
80%
Minimal 
financial 
impact
Nee...
Up to 98,000 deaths
annually due to medical
errors.
Goal: Reduce by 50% 
in 5 years.
To Err is Human
Institute of Medicine...
11
Something Is Terribly Wrong…
12
2009
2005 2010
2010
2011
Progress has been 
slow.
Journal of the American 
Medical Associa...
13
14
Problem
15
Widespread Disengagement
16
You had them at
“You’re Hired.”
Workers have been robbed of…
• Trust
• Respect
• Knowledge, skills, aptitude, creativity, 
experience (KSACE)
• The abilit...
The Result…
• Whining
• Finger‐pointing
• Interpersonal tension
• Inter‐divisional and/or inter‐departmental 
tension
• Tu...
Poorly designed processes are typically
behind interpersonal & interdepartmental
tension―not personalities.
Forming New
Habits:
Organizational
response to
problems moves
from blaming people
to improving
processes.
20
21
You create (or fail to create)
high-performing employees in
the way your organization
operates and treats its people.
—...
22
The
Countermeasure…
23
Toyota’s Overarching Tenets
• Continuous Improvement.
• Respect for people.
– Safety and quality of life.
– Authorized ...
24
How do we get the people to
do the process the way it
should be done?
For example, how can you
invoke what seems to be ...
Common Management Practices
• Processes not standardized nor documented.
• Processes not designed by the experts–the peopl...
26
Process Owner ≈ Process Doctor
Process Owner
• Manager or below
• Responsible for overall process performance
– Tracks performance against targets
– Lead...
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 Manage...
CEO
COO
VP
Dir Dir
Dir
VP
Dir Dir
CIO
VP VP
Dir
29
Process Owners Have the Responsibility &  
Authority to Lead Improvemen...
The Next Frontier…
30The Middle Manager
How to Turn the Tide
1. Face the truth.
– Processes remain poorly managed.
– People are being beaten up for no good reason...
Keys to Outstanding
Process Management
• Relevant key performance indicators
• Metrics-based value stream and process-leve...
33
Watch as poor performers
begin to soar and poor
performance turns exceptional.
34
Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Twitter: @karenmartino...
www.ksmartin.com/files/webinarmaterials/11
-01-2012_handout.pdf
_slides.pdf
35
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We've Had it All Wrong: Manage Processes, Not people

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Recorded webinar: http://slidesha.re/1iuvE3F

Subscribe: http://www.ksmartin.com/subscribe

Karen’s Books: http://ksmartin.com/books

For decades now, "management" has been synonymous with managing people. Meanwhile, processes, the lifeblood of an organization, remain largely unmanaged. In this webinar, Karen shares her views on why we need to change our thinking and her practical how-to's for making this vital pivot.

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Transcript of "We've Had it All Wrong: Manage Processes, Not people"

  1. 1. We’ve Had It All Wrong:  Manage Processes, Not People Webinar November 1, 2012
  2. 2.  Founder: Karen Martin & Associates, LLC (1993).  Consultant / Coach: Lead Lean transformations in  office, service and knowledge environments.  Teacher: University of California, San Diego’s  Lean Enterprise program.  Author: Karen Martin,  Principal July 2012 Just released!
  3. 3. Last Webinar of 2012! Metrics-Based Process Mapping: What, When & How Thursday, November 29 11:00 am – 12:15 pm Pacific Time To register: www.ksmartin.com/webinars 3 © 2012 Karen Martin & Associates, LLC
  4. 4. 4 We have THREE BIG PROBLEMS.
  5. 5. 5 Problem
  6. 6. 6 Most businesses aren’t performing as well as they could and need to.
  7. 7. Common Organizational Woes (cause and effect can be debated) • Unclear vision; inability to focus • Slim margins • Unrealistic pricing • Unhappy customers • Flat or eroding market share • Slow innovation • Poor quality • Unfulfilled workforce 7
  8. 8. 8 Problem
  9. 9. 2010 Accenture Study Success with Improvement Approaches 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% 9© 2012 Karen Martin & Associates, LLC
  10. 10. Up to 98,000 deaths annually due to medical errors. Goal: Reduce by 50%  in 5 years. To Err is Human Institute of Medicine, 1999 10© 2012 Karen Martin & Associates, LLC
  11. 11. 11
  12. 12. Something Is Terribly Wrong… 12 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 Heart 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 © 2012 Karen Martin & Associates, LLC
  13. 13. 13
  14. 14. 14 Problem
  15. 15. 15 Widespread Disengagement
  16. 16. 16 You had them at “You’re Hired.”
  17. 17. Workers have been robbed of… • Trust • Respect • Knowledge, skills, aptitude, creativity,  experience (KSACE) • The ability to maintain healthy interpersonal  relationships
  18. 18. The Result… • Whining • Finger‐pointing • Interpersonal tension • Inter‐divisional and/or inter‐departmental  tension • Turnover • Blatant infighting • Sabotage • Physical and mental illness • Social consequences – physical, sexual, substance abuse; poor parenting;  divorce
  19. 19. Poorly designed processes are typically behind interpersonal & interdepartmental tension―not personalities.
  20. 20. Forming New Habits: Organizational response to problems moves from blaming people to improving processes. 20
  21. 21. 21 You create (or fail to create) high-performing employees in the way your organization operates and treats its people. — The Outstanding Organization, p. 154
  22. 22. 22 The Countermeasure…
  23. 23. 23 Toyota’s Overarching Tenets • Continuous Improvement. • Respect for people. – Safety and quality of life. – Authorized to solve problems. – Well-designed systems and processes.
  24. 24. 24 How do we get the people to do the process the way it should be done? For example, how can you invoke what seems to be a simple process of labeling samples at the bedside?
  25. 25. Common Management Practices • Processes not standardized nor documented. • Processes not designed by the experts–the people doing  the work. • Processes not measured against operational targets. • Process workers don’t receive adequate training. • Reactive improvement and problem‐solving. • Blame – invoking the 5 Who’s instead of the 5 Why’s • Telling people what to do. • Silo’d behavior; lack of holistic thinking. • Misaligned incentives. • Poor problem solving capabilities. – Process improvements don’t address the true root cause of the  problem that drove the need for improvement.
  26. 26. 26 Process Owner ≈ Process Doctor
  27. 27. Process Owner • Manager or below • Responsible for overall process performance – Tracks performance against targets – Leads corrective action when negative trends appear – Leads continuous improvement to progressively raise the bar • Granted authority to cross org chart “boundaries” – And widely recognized to possess this authority 27
  28. 28. 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 Units Hours Worked per Day 37,500 Paul Dampier Occurrences per Year Current State Metrics-Based Process Map 26-Nov-07 8 Sam Parks Date Mapped Michael Prichard Order FulfillmentProcess Name Specific Conditions Domestic orders through sales force PT Units Process Details Mary TownsendSean Michaels Ryan AustinDianne O'Shea 7 Mapping Team Order Entry Account Manager Sales Rep Customer Seconds Minutes Hours Days Seconds Minutes Hours Days Processes Owners Lead Improvement & Problem Solving  ACROSS ALL FUNCTIONS
  29. 29. CEO COO VP Dir Dir Dir VP Dir Dir CIO VP VP Dir 29 Process Owners Have the Responsibility &   Authority to Lead Improvement Across  Artificial Functional Boundaries
  30. 30. The Next Frontier… 30The Middle Manager
  31. 31. How to Turn the Tide 1. Face the truth. – Processes remain poorly managed. – People are being beaten up for no good reason. 2. Document ALL major processes. – Improve upfront if time allows 3. Define 3-5 key performance indicators for each. 4. Identify a process owner. 5. Socialize the role and responsibilities of the process owner. 6. Begin managing the process. 7. NEVER STOP. 31
  32. 32. Keys to Outstanding Process Management • Relevant key performance indicators • Metrics-based value stream and process-level maps. • Cross-functional improvement. • Exceptional socialization (address WHY) and training on improved process. • Continuous monitoring/measurement. • Continuous improvement. • NEVER STOP. Process don’t manage themselves. 32
  33. 33. 33 Watch as poor performers begin to soar and poor performance turns exceptional.
  34. 34. 34 Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopex For Further Questions Monthly newsletter: www.ksmartin.com/subscribe www.ksmartin.com/the‐outstanding‐organization
  35. 35. www.ksmartin.com/files/webinarmaterials/11 -01-2012_handout.pdf _slides.pdf 35
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