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The Outstanding Organization: The Power of Clarity

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Recorded webinar: http://bit.ly/M58raU

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A fundamental lack of CLARITY is often at the root of inefficient processes, errors, poor decisions, and mistrust across the organization. Worse, it's one of the reasons why improvement approaches don't produce greater results and why organizational performance often lags behind desired targets.

Gaining awareness about how often we create and tolerate ambiguity is the first step to making the
necessary behavioral changes across organizations.

In this webinar, you'll learn not only how to recognize this insidious problem, but also how to change your organization's course so that clear information that people can act upon and the unvarnished truth becomes the rule rather than the exception.

Outstanding organizations operate this way. So can you.

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The Outstanding Organization: The Power of Clarity

  1. The Outstanding Organization: The Power of Clarity Presenter: Karen Martin March 22, 2012
  2.  Founder of Karen Martin & Associates(1993) Thought leader in applying Lean tothe service sector and office areaswithin manufacturing Teaches at University of California,San Diego’s Lean Enterprise program Email: karen@ksmartin.com Twitter: @karenmartinopex Karen Martin, Principal
  3. 2012 Webinars Date TopicMarch 22 The Outstanding Organization: The Power of ClarityApril 5 The Outstanding Organization: The Power of FocusMay 3 The Outstanding Organization: The Power of DisciplineMay 17 The Outstanding Organization: The Power of Engagement Release Date: July 8, 2012 (McGraw-Hill) Available for Preorder: www.bit.ly/km-too 3
  4. Success with Improvement 2001 – The Economist70% 63%60%50%40%30%20% 17% 20%10%0% None Temporary Lasting 4
  5. …A Decade Later 2010 – Accenture80%70% 69%60% 58%50%40% 33%30%20%10%0% Needs re‐evaluation,  Minimal  “Mixed” to  restart or complete  financial  “disappointing”  makeover impact results 5
  6. To Err is HumanInstitute of Medicine, 1999Up to 98,000 deathsannually due tomedical errors.8th leading cause ofdeath in U.S. 6
  7. Southwest Airlines’ Boeing 737 has  137 passenger seats.  7
  8. 8
  9. To Err is Human Institute of Medicine, 199998,000 lives lostImprovement Goal:Reduce by 50%in 5 years. 9
  10. Not. Even. Close. 10
  11. Something Is Terribly Wrong… 33% hospitalized 180,000 Medicare patients are harmed; patients die 7% result in Progress has annually from permanent injury or been slow. medical errors. death.Journal of the American Office of the Health Affairs Medical Association 2009 Inspector General 2010 2005 Annual death 2010 No significant 2011 toll from change in rate of medical errors preventable is closer to errors. 200,000. New England Journal of Dead by Mistake Medicine Hearst Newspapers Special Report 11
  12. What are we missing? 12
  13. We need to improve how we improve. 13
  14. Mindsets & Behaviors 14
  15. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 15
  16. The Outstanding Organization Business Results Problem Solving Improvement Continuous  Resilience Core Capabilities CHOS April 5  May 3 May 17 16
  17. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 17
  18. Truth Truth Truth Truth Truth Truth Truth Truth Truth 18
  19. 19
  20. Ambiguity Abounds…• Organization purpose & vision• Customers & products• Business goals & priorities• Policies & procedures• Roles & responsibilities• Process performance• Problem solving & decision making• Communication 20
  21. Who are your customers?What problem does your good or service solve? 21
  22. What value do these consumer goodscompanies provide to their customers? 22
  23. You must indoctrinateall new hires into who the organization’s customers are and what they value. 23
  24. What is Your Improvement Strategy? 24
  25. 25
  26. 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 26
  27. 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 clear27
  28. 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
  29. Every key process… 2-5 Key Performance Indicators Monitored Continually 29
  30. Gaining Clarity via Visual Management 30
  31. “Going to the gemba has been life changing for me as a leader.”  31
  32. What problem are you trying to solve? 32
  33. 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  Do  7.  Refine and finalize countermeasure(s). Experiment  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.  Assess results. 33
  34. Learning How to Clarify: A3 Management A3  Report The vital role of  the coach/mentor 34
  35. Progressive Learning 35
  36. Gaining Clarity: Avoid “Fuzzy” Words• Near / close / far • High / low• Short / long • Significant• A lot / a little • Fast / slow• Many / few / much • Young / new / old • Bad / good  • Expensive / cheap• Heavy / light • Long / short• Seems • “I think…” 36
  37. Release Date: July 8, 2012  (McGraw‐Hill) Available for Preorder:  www.bit.ly/km‐too 37
  38. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopexMonthly newsletter: www.ksmartin.com/subscribe 38

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