Commit to Becoming an Outstanding Organization

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

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 4LT LT LT LT PT PT PT PTLT = Lead (Throughput) TimePT = 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 OShea 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 LTCustomer Notify customer Fax PO toSales Rep Approve PO 15 240 100% 5 20 100% when they can 15 300 95% Account Manager expect delivery Review andAccount Manager approve PO; send 5 240 100% to Order Entry Enter order intoOrder Entry 10 240 SAPFinance / 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.

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 3 321 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 pecd/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 pecd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howa rd Da na 1 3 3 329 20 by yea r‐end X X X X X X X X X X X X Howa rd Ma rk H 2 3 3 332 TBD X X X Howa rd Howa rd33 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 331 TBD X X X X X X Ji m Jos h 1 1 1 3 1 1 1 1 1 1 1 1 1 125 TBD Ji m Sha nnon 3 3 1 1 1 1 126 Sys tem 7.0s 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 out24 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 31 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 mplemented14 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 PlanPriority: 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 91011121314151617181920 22

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

Progressive Learning 27

The Role of the Improvement Coach 28

Engagement Drivers: The Three C’s The Outstanding Organization, pp. 155‐158 To vision, annual goals, immediate supervisor, peers, customers Connection Creativity ControlFull 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

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

“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: @karenmartinopexBlog & newsletter: www.ksmartin.com/subscribe Book info: www.ksmartin.com/TOO 43