2013: Commit to Becoming an
Outstanding Organization Karen Martin Webinar January 22, 2013

 Founder: Karen Martin & Associates, LLC (1993).  Consultant / Coach: Lead Lean transformations & develop people in office, service and knowledge
environments.  Teacher: University of California, San Diego’s Lean Enterprise program.  Author: Karen Martin, Principal www.ksmartin.com

Make 2013 an OUTSTANDING year! Website: www.ksmartin.com Amazon: www.bitly.com/TOObook
Facebook: www.facebook/outstandingorg Help us spread the word! • Pin it • Buy it • Like it • Post it • Tweet it • Review it

Typical Organization Unstable Foundation Leads to Unpredictable Performance
Lacking Proper Mindsets & Behaviors © 2013 The Karen Martin Group, Inc. 4

© 2013 The Karen Martin Group, Inc.
5

6

The Outstanding Organization Predictable Performance
Business Performance Problem Solving Improvement Continuous Resilience Core Capabilities Solid CHOS Foundation © 2013 The Karen Martin Group, Inc. 7

Ambiguity Abounds… • Organization purpose
& vision • Customers & products • Business goals & priorities • Policies & procedures • Roles & responsibilities • Process performance • Problem solving & decision making • Communication 9

Who are your customers? What
problem does your good or service solve? What do they value? 10

Gaining Clarity via Visual Management
11

How does work get accomplished? And well how are we doing at it? Customer Process Process
Process Process 1 2 3 4 LT LT LT LT PT PT PT PT LT = Lead (Throughput) Time PT = Process (Touch) Time 12

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 clear 13

Processes MUST be Clearly Documented Current State Metrics-Based Process
Map PT Units Process Details Mapping Team Seconds Hours Process Name Order Fulfillment Dianne O'Shea Ryan Austin Minutes Days Specific Conditions Domestic orders through sales force Sean Michaels Mary Townsend LT Units Occurrences per Year 37,500 Sam Parks Seconds Hours Hours Worked per Day 8 Paul Dampier Minutes Days Date Mapped 26-Nov-07 Michael Prichard Step # ? 6 7 8 9 Function / Department Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT Customer Notify customer Fax PO to Sales Rep Approve PO 15 240 100% 5 20 100% when they can 15 300 95% Account Manager expect delivery Review and Account Manager approve PO; send 5 240 100% to Order Entry Enter order into Order Entry 10 240 SAP Finance / Credit

There is no such thing
as multitasking.*
* For cognitive tasks.
16

Not Convinced? Try this timed experiment. Focus reduces chaos. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Round 1:
Write F, 1, O, 2, C, 3, U, 4… etc. (alternating—switch‐ tasking—between letters and numbers) Round 2: Write the complete sentence, followed by numbers 1‐17 (focused on one task at a time. Common result: Round 2’s time is 1/3 to 1/2 of Round 1’s. 17 © 2013 The Karen Martin Group, Inc.

18
© 2013 The Karen Martin Group, Inc.

Obtain Consensus, Then Maintain Focus by Consistent Plan Management < Company Name > 2013 Priorities 1. Increase sales 5%.
2. Achieve 50% gross margin. Created: 01‐14‐13 Plan review dates: 2013 Goals & Objectives 3. Achieve 10% profit. 4. Improve morale (metric TBD). Revised: X = Planned ● = Actual Level of Effort/Involvement Required Tactical Priority Goal or Measurable Objective Exec Owner COM CDs / PD PD Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Owner IT Mktg Ops HR Bob Fin PE Pario BMD SWS Direct AMs Rec Mgmt 3,500 uni ts s ol d by 12/31/2013 through a l l cha nnel s 2 X X X X X X X X X X X X Bob Da na 2 3 3 3 2 3 3 1 1 3 3 1 3 (a pprox. $700K) Content removed for confidentiality 11 Devel op & del iver tra i ni ng to top 50 Dea l ers X X X X X X Bob Rex/Tim 3 3 3 21 Revis ed cours e ma teri a l s by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2 Educa tion: 1 s chool di s tri ct s pec'd/underperforming 5 X X X X X X X X X X X X Howa rd Mi cha el S 1 3 2 3 3 COM dis tri butor (25) by 12/31 va l ued a t mi n $35K ea ch 10 new dea lers on boa rd (net) ($500K per dea l er thi s 8 X X X X X X X X X X X X Howa rd Mi ke B 2 3 yea r) 5 new di s tri butors bri ngi ng $200K a nnua l rev (& 5 9 X X X X X X X X X X X X Howa rd Howa rd 1 1 1 2 3 termi na ted) 17 10 projects s pec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howa rd Da na 1 3 3 3 29 20 by yea r‐end X X X X X X X X X X X X Howa rd Ma rk H 2 3 3 3 32 TBD X X X Howa rd Howa rd 33 TBD X X X X X X X X X Howa rd Howa rd Useful reporti ng a nd metri cs a re es ta bl i shed a nd i n 10 X X Ji m Ra nda l l 3 1 1 1 1 1 1 pl a ce 30 TBD X X X X X Ji m Jos h 3 31 TBD X X X X X X Ji m Jos h 1 1 1 3 1 1 1 1 1 1 1 1 1 1 25 TBD Ji m Sha nnon 3 3 1 1 1 1 1 26 Sys tem 7.0's i n pl a ce X X X Ji m Ra nda l l 3 2 1 2 1 100% a ccura te pa yrol l ; 100% ma na gement s a ti sfa cti on 15 X X X Jos h Phyl l is 1 3 a t Apri l mgmt. meeting Internet ta s k l is t is si mpl i fi ed a nd strea ml i ned for 20 X X X X Mi cha el M Mi cha el M 2 3 2 3 PDs then pl a n is rol led out to PDs Des ign Ca l cul a tor i s upda ted success ful l y a nd rol l ed 22 X X X Nea l l Ma tt D 3 1 1 3 2 2 3 out 24 Competi tive Ana l ys i s compl ete a nd di stri buted for us e X X X Nea l l Da na 2 3 3 3 3 3 3 1 Des ign cha nged to s ol ve dela m i ss ue l ong‐term X X X X X Sus a n Da vi d R 3 2 3 30 pa rts s ourced in U.S.; compl eted pl a n for ma na gi ng 12 X X X X X X Susa n Sha nnon 3 3 2 2 Chi na ‐s ourced pa rts Wa rehous e l a id out; ka nba n revi s ed; Sys pro 13 X X X Susa n Sha nnon 3 i mplemented 14 La y out compl ete; equi pment i ns ta l led X X X Susa n Da vi d R 3 3 © 2013 The Karen Martin Group, Inc. 19

Frequent Status
Meetings Assure
Ongoing Alignment &
Distraction Avoidance
20

Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires… • Clarity – about what really
matters & organizational direction. • Consensus – about how best to get there. • Courage – to actively choose to “not do” or “not do now.” • Commitment – to stick with the plan. © 2013 The Karen Martin Group, Inc. 21

< Company Name> Priority #X Execution Plan Priority: Executive Owner: Background/Scope: Next Review:
Measurable Objective(s): Core work team: Input/Review needed by: Relationship to Annual Business Goal(s): Timeline Status Planned Timeline X Complete (Actual) % (Red, Due Complete Yellow, 2013 Date Green) # 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 22

© 2013 The Karen Martin Group, Inc.

Develop hypothesis Refine Conduct Standardize
experiment Stabilize Measure results © 2013 The Karen Martin Group, Inc. 24

Clarifying the PDSA Cycle Phase Detailed Steps 1. Define and break down the problem.
2. Grasp the current condition. Develop Plan 3. Set a target condition. Hypothesis 4. Conduct root cause & gap analysis. 5. Identify potential countermeasures. 6. Develop & test countermeasure(s) Conduct Continuous Do 7. Refine and finalize countermeasure(s). Experiment Improvement 8. Implement countermeasure(s). Evaluate Study 9. Measure process performance. Results 10. Refine, standardize, & stabilize the process. Refine Adjust Standardize 11. Monitor process performance. Stabilize 12. Reflect & share learning. 25 © 2012 Karen Martin & Associates, LLC

True Continuous Improvement
© 2013 The Karen Martin Group, Inc. 26

Progressive Learning
27

The Role of the Improvement
Coach 28

Lean (Done Right) Fuels Engagement;
Engagement Accelerates Transformation Lean Employee Practices Engagement © 2012 Karen Martin & Associates, LLC 30

Engagement Drivers: The Three C’s
The Outstanding Organization, pp. 155‐158 To vision, annual goals, immediate supervisor, peers, customers Connection Creativity Control Full use of talents, capacities, Heavy involvement in potentialities, decisions that influence & skills their work life. © 2012 Karen Martin & Associates, LLC 31

Cross‐Functional Problem Solving:
Connecting, Using Creativity, Gaining Control
32

—The Outstanding Organization, p. 153
33
© 2013 The Karen Martin Group, Inc.

Self‐Assessment
Sheet 1: Overview & Process
© 2013 The Karen Martin Group, Inc.

Self‐Assessment
Sheet 2: Assessment
© 2013 The Karen Martin Group, Inc.

Embedded Comments Provide Clarification
© 2013 The Karen Martin Group, Inc.

Self‐Assessment
Sheet 3: Scorecard
© 2013 The Karen Martin Group, Inc.

To Download the
Organizational Self Assessment:
www.scribd.com/doc/121657016/The‐
Outstanding‐Organization‐Organizational‐
Self‐Assessment

The Outstanding Organization Self‐Assessment Sample Questions Key Behavior Assessment Questions Clarity
C‐1: What % of the workforce can describe your organization’s purpose and the value you provide to your external customers? C‐6: What % of work areas have visual management in place? Focus F‐2: What % of the workforce say that priorities are stable and don’t shift unnecessarily? F‐6: What % of meetings have stated goals and written agenda that are communicated in advance? Discipline F‐3: What % of processes have 2‐5 Key Performance indicators that are consistently used to measure success and drive improvement? F‐5: What % of processes have a clearly identified process owner who’s accountable for performance? Engagement E‐4: What % of the workforce feel they have a degree of control over their work processes and environment? E‐5: What % of new hires receive all of the information, equipment and supplies they need to be successful beginning on day one? © 2013 The Karen Martin Group, Inc.

What’s Your Improvement Plan?
40

41

“You can make a difference
no matter where you sit in the organization. But only if you start.” 42

For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799
ksm@ksmartin.com Twitter: @karenmartinopex Blog & newsletter: www.ksmartin.com/subscribe Book info: www.ksmartin.com/TOO 43