A3 Management (Part 2 of 2)

A3 Management: From Structured Problem-Solving to Workforce Development Part II of II Company LOGO 1

Your Instructor  Early career as a scientist; migrated to quality & operations design in the mid-80’s.  Launched Karen Martin & Associates in 1993.  Specialize in Lean transformations in nonmanufacturing environments.  Co-author of The Kaizen Event Planner; co-developer of Metrics-Based Process Mapping: An Excel-Based Solution.  Instructor in University of California, San Diego’s Lean Enterprise program. © 2011 Karen Martin & Associates Karen Martin, Principal Karen Martin & Associates 2

Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Check, Act Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis

Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?

Building a Lean Enterprise Process Stabilization Tools

Building a Lean Enterprise Flow-Enabling Tools

Once you know the root cause, brainstorm and prioritize solutions 1. List relevant countermeasures. 2. Eliminate those that aren’t possible.  Regulatory, budgetary, resource availability, system capability, etc. 3. Combine those that are similar. 4. Number the countermeasures sequentially. 5. Place countermeasures accordingly on the PACE Prioritization Grid. © 2011 Karen Martin & Associates

PACE Prioritization Grid Easy 5 4 13 23 8 22 17 3 10 21 1 16 15 20 19 14 6 7 11 2 18 12 Difficult Ease of Implementation 9 High Anticipated Benefit Low

Implementation / Countermeasures  Consider all options  Be innovate – be willing to challenge your paradigms & help others challenge theirs.  Make sure the countermeasure is directly very specifically to the root causes.  Make it clear exactly what will be done – by whom, by when, where, how, in what order, etc.  Aim for full implementation by a certain date.  The problem owner’s role shifts to advocate and project manager.  Cross-functional involvement & consensus is a key success factor. © 2011 Karen Martin & Associates 11

Sample Implementation Plan Task Type Accountable KE Implementation Schedule (weeks) 2 3 4 5 6 7 8 9 10 11 12 100 25 75 50 100 25 75 50 100 25 75 50 100 25 75 50 100 25 75 50 100 25 75 JDI 50 100 Modify weekly report. 25 75 KE 50 100 Create standard template. 25 75 KE 50 100 Create self-quality checklist. 25 75 Proj 50 100 Clearn up data base. 25 75 Create visual board to track KPIs. Date Complete Mary W. 1 Progress 50 George S. Sally R. Sally R. Bruce M. 9/22/2010 Type: JDI = Just do it; KE = Kaizen Event; Proj = Project 12

Sample A3 Countermeasures / Implementation Plan

Common Components of the A3 Report Plan Do, Check, Act Theme: “What is our area of focus?” Background Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?

The A3 Report: Effect Confirmation Tie confirmation directly to the target condition. Define 2-5 key performance indicators (KPIs). Determine ways to verify the effectiveness of the countermeasures, one by one if possible. Plan in advance for the data that will need to be collected. Identify who will help collect the data and how frequently. © 2011 Karen Martin & Associates

Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?

The A3 Report: Follow-up Actions How will you communicate the new process? Who will monitor the process? Which metrics will be used to measure ongoing performance? Look for similar processes within the department and across the organization that can benefit from these countermeasures Ensure ongoing improvement – who will do this? Share the wealth!  Communicate results across the organization and teach others to problem-solve via the A3 process © 2011 Karen Martin & Associates 17

Sample Effect Confirmation Option Metric Lead Time Rolled First Pass Yield Scrap Labor Effort Current State Projected Projected % Actual Future State Improvement Results * Actual % Improvement 36 Days 16 Days 56% 20 Days 44% 55% 75% 36% 80% 45% $1.2 M $0.5 M 58% TBD TBD 46% 3.8 FTEs 32% 5.6 FTEs 3.0 FTEs * Measured by Sally Turner on 8/20/2010; monthly measurement; improvement efforts continuing. © 2011 Karen Martin & Associates 18

Effect Confirmation & Follow-up 19

Sample A3 Effect Confirmation & Follow-up Actions Effect Confirmation Follow-up Actions

When Are You “Done”? 21

Coaching and Mentoring Coaching is working in partnership to facilitate learning, improve performance, and create desired results.   Primarily in service of the A3 owner’s development. To this end, what will be most supportive? Mentoring is the process for imparting subject matter expertise and wisdom to a less experienced person.   Primarily in service of achieving results. More of a one-way, training-driven relationship Begin with coaching; move into mentoring as needed. © 2011 Karen Martin & Associates 25

Coaching Relationship Mentoring Relationship Wisdom Wisdom ? ? ? ? ? ? Coach Coachee Focus: Asking questions Mentor Mentee Focus: Providing information

Problem-Solving Proficiency Needed Lean analytical, process design, and implementation tools Data analysis Visual display of data Project & time management Team building / people skills Change management skills / psychology © 2011 Karen Martin & Associates 27

Coaching vs. Mentoring Coach Mentor Purpose Growth/development; helping people realize their potential, while also generating results Role Teacher/consultant; learning/thinking partner Relationship Built on respect and trust; supportive in nature Process Drawing out knowledge that resides within coachee Sharing knowledge that resides within mentor Questioning; coach engages Telling; Mentor shares in inquiry to guide the expertise, offering answers coachee and solutions Focus Primary: Developing strong problem-solvers Secondary: Assuring the problem is thoroughly dissected and solved Primary: Assuring the problem is thoroughly dissected and solved Secondary: Developing strong problem-solvers

The Wisdom Comes in Knowing When to Coach and When to Mentor

Types of Coaching Owner’s Problem-Solving Skill Level Focus During Session What to Ask / Do Problem-solving is spot on. Coaching Goal: “Thought partners” “How’s it going?” “What’s working well?” “What’s not?” “What have you learned?” “What’s been most surprising?” “What are you doing next?” “Do you need any help?” Problem-solving is off course and needs correction. Coaching & Mentoring Goal: Get person back on track Probe using Socratic questioning. Focus on one or two areas of the A3. Problem-solving is on track so far, but owner’s having difficulty taking next steps. Coaching & Mentoring Goal: Build confidence; remove obstacles; create an action plan Use Socratic questioning to help person realize his/her strengths & grow competencies; provide mentoring for knowledge transfer (e.g. specific tools).

Why should we avoid telling people what to do? It robs them of the opportunity to think through the problem themselves. It deprives them of ownership of the problem. You might be wrong. © 2011 Karen Martin & Associates 31

Socratic Questioning Named for Socrates Based on his belief that the most effective learning results from a disciplined practice of thoughtful questioning.  Way of assuring “rigorous thinking” Open-ended questions that cause the learner to think deeply. © 2011 Karen Martin & Associates 32

Questioning “Don’ts” Masked recommendations   “Leading the witness” Disguising your recommendation as a question (and thinking that counts as a question) “Run on” questions  Long questions that contain multiple questions “The inquisition” – asking question after question  Instead of pausing and allowing the person to answer Closed-ended questions  That can be answered with yes, no, or a word or two. © 2011 Karen Martin & Associates 33

Questioning “Don’ts” Harsh or judgmental tone Multi-tasking or half-listening instead of engaging the person in a focused dialogue If the problem owner asks, “What do you think?”, don’t take the bait! © 2011 Karen Martin & Associates 34

Building Organizational Capabilities – Model 1 – Leadership Development  Pre-select 4 problems related to annual business goals.  Break into 4 teams; team lead is the problem owner; others play dual role, focused primarily on building coaching skills.  1-day workshop – learn P stage of PDCA.  4-6 weeks to work on projects; heavy support throughout from seasoned coach/mentor (2nd coach).  1-day workshop – teams present progress; much discussion; learn DCA stage of PDCA.  4-6 weeks to work on projects; heavy support throughout from seasoned coach/mentor (2nd coach).  1-day workshop – teams present progress; focus on sustainability and spreading the learning across the organization. © 2011 Karen Martin & Associates 35

Building Organizational Capabilities – Model 2 – One-on-One Development Specific problem is selected. Identify problem owner and coach/mentor (typically the project owner’s direct supervisor). Seasoned coach/mentor serves as either:   “2nd coach” – coaches the coach (if coach is skilled in improvement tools) Primary coach to problem owner, with side-bar coaching discussions with coach. Support from seasoned coach is heaviest during the P stage of PDCA. © 2011 Karen Martin & Associates 36

How A3 Shifts Culture Cross-functional engagement Root cause analysis helps break the “band-aid syndrome” Learning together Alignment with organizational strategy Coaching role of leadership helps move them away from tactical involvement © 2011 Karen Martin & Associates 37

Common Problem-Solving Pitfalls Problem isn’t tied to key business goals. Problem owner isn’t proficient in analytical and improvement tools. Coach isn’t proficient in analytical and improvement tools. Consensus isn’t built throughout the process. A3 drags on forever. A3 used for everything. Comment on how A3s and VSMs relate to one another, and which one to turn to in the beginning. © 2011 Karen Martin & Associates 38

Key Success Factors  Engage all stakeholders from the beginning.  They must clearly understand why “this” is a problem.  Gain consensus every stage of PDCA.  Keep leadership from getting into tactics.  Their role is strategy and policy.  Test/experiment before rolling out an improvement.  Assign clear accountability for monitoring the improved state and continued improvement.  Avoid moving forward until true root cause is known.  Establish measurable targets.  Develop leaders into engaged and active coaches/mentors.  Share the process company-wide. © 2011 Karen Martin & Associates 39

In Summary The A3 process should become a standardized form of currency for problemsolving, dialogue, and decision-making in your organization – creating an organization of “scientists” who continually improve operations and achieve results through constant learning from the work at hand. © 2011 Karen Martin & Associates 40

Other A3 Applications and Common A3 Components Proposal         Theme Background Current Condition Analysis and Proposal Plan Details Unresolved Issues (if relevant) Implementation Schedule Total Effect © 2011 Karen Martin & Associates Status Report       Theme Background Current Condition Results Unresolved Issues / Follow-up Actions Total Effect During Kaizen Events

Professional Development A3 42

For Further Study

For Further Questions 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Free monthly newsletter: www.ksmartin.com/subscribe Learn / Connect : 44