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Have you taken
The Clarity Quiz?
www.clarityfirstquiz.com

3
Clarity:
What it is
Why you need it
How to get it
www.clarityfirstbook.com
https://www.amazon.com/Clarity-
First-Organizations-Outstanding-
Performance/dp/1259837351

Clarity First Summer Webinar Series
4
www.TKMG.com/webinars
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PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM
SOLVING
PURSING ORGANIZATIONAL CLARITY:
THE FIVE P’S
www.clarityfirstbook.com

6
PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM
SOLVING
THE FIVE P’S

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Work: Degrees of Granularity
Value Stream
Process Process Process
Step StepStep
Macro
Perspective
• Define strategic
direction
(“what”)
• Heavy leadership
involvement
• Value Stream
Mapping
Micro
Perspective
• Identify the
tactical “how”
• Heavy frontline
involvement
• Metrics-Based
Process
Mapping

Work: Degrees of Granularity
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Begin Discussions
with Prospective
Client
Negotiate &
Execute
Contract
Communicate
Plan Options &
Enrollment Process
Enroll
Employees
Service
the Contract
Value
Stream
Process
Negotiate
pricing
Approve
Negotiate
terms
Approve
Execute
Contract
CUSTOMER

99

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Improvement Roles
Who? Accountability Management Practice
Senior Leaders What • PDSA Problem Solving
• Hoshin Planning
(aka Strategy Deployment)
• Value Stream Management
Frontlines How • PDSA Problem Solving
• Daily management, kaizen
• Projects (kaikaku)
StrategicTactical
Middle
Management

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Function FunctionFunctionFunction
Core Value Stream
Support Value Stream
Silo-Centric vs. Value Stream Thinking
Value
stream
segment
Value
stream
segment

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Value Stream Families Share Common Process Steps
Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8
X X X X X
X X X X X
X X X X X X X X
X X X X X
X X X X X
X X X X X X X X
X X X X
X X X X X X X
X X X X X
Value
Stream
#1

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© 2015 The Karen Martin Group,
Inc.

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Value Stream Mapping Benefit:
Seeing the Whole
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Value Stream Mapping enables a
mapping team to get ABOVE the work

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Value Stream Thinking ≈ Systems Thinking
System Efficiency = Optimal Value Stream Performance
Departmental Efficiency ≠ System Optimization

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Understand Value Stream Performance

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Visualize the entire cycle of value delivery on a single sheet of paper
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© 2016 The Karen Martin Group,
Inc.

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Visualize Information Management Problems

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Sample Discoveries During Value Stream Analysis
• Current KPIs serve as perverse incentives driving the wrong
• Backlogs are far larger than assumed—and not going down.
• Quality is far lower than believed.
• Timestamps don’t reflect reality.
• Sales and operations work at cross-purposes.
• Significant and dangerous problems have been hidden.
• Customers aren’t nearly as happy as leaders believe.
• There’s far more expensive waste in the system than believed.
• Company isn’t collecting nearly as much revenue as it
could/should be.
• The data sucks!

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It’s not about the map.
It’s about the conversations,
insights, decisions, alignment,
and commitment to action
that mapping generates.

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CLEAR PROCESSES
 Documented
 Current
 Followed
 Consistently monitored
 Regularly improved

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Well-Defined Processes
 Safe
 Efficient and effective
 Easy to understand
 Easy to perform successfully
pp 111-114, Clarity First

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Value Stream Map ≠ Process Flow Chart

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Value Stream Map ≠ Swim Lane Process Map
Benefits
Administrator
Receive
negative
drug
screen
results
Complete
“New Hire
Approval”
form; send
to recruiter
Recruiter
Sign “New
Hire
Approval”
form
Recruiter
Sign “New
Hire
Approval”
form
Set up
employee
in SAP;
notify
hiring
manager
Hiring
Manager
Request
laptop on
“New Hire
Equip.
Request”
form
IT
Manager
Approve
“New Hire
Equip.
Request”

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0
1
0
15
6
-1
0
Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
1
Fax PO to Sales
Rep
0 0 45%
2
Review PO;
clarify with
customer as
needed
20 2 90%
Fax PO to
warehouse
10 4 90%
5
6
Check inventory
levels; notify
Sales Rep re:
status
5 4 95%
Fax PO to Sales
Rep
5 0.33 90%
0 20 10 5 5
0 2 4 4 0.33
45% 90% 90% 95% 90%
0 20 10 5 5
Rolled %C&A
Critical Path LT
Total PT
Critical Path PT
5431 2
Mary Townsend
Hours Worked per Day Sally Dampier
Occurrences per Year Sam Parks
Current State Metrics-Based Process Map
Dave Morgan25-Jun-08
8 Facilitator
Process Details
Michael Prichard
Order FulfillmentProcess Name
Specific Conditions Domestic orders through sales force
37,500
Date Mapped
Sean Michaels
Sales Rep
Ryan AustinDiane O'Shea
Mapping Team
LT Units
Function /
Department
PT Units
Step # ►
Customer
Finance
Warehouse /
Shipping
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Metrics-Based
Process Mapping
Key metrics:
• Lead time (LT)
• Process time (PT)
• Percent Complete & Accurate (%C&A)

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Standard Work for ALL Key Processes
Current best known
way to operate that
minimizes errors,
maximizes productivity,
and allows all workers
to be highly successful.

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Standard work and sustaining improvement
Standard work is the
wedge that keeps us
from back-sliding
Process
Process
Improvement
Universal law of Entropy
All systems need
continuous maintenance to
keep them operating at
their optimal levels

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Standard Work for Everything
Standard Work Best Practices
• Includes work standards
• Highlights new process components or
common areas where errors occur
• Link to job aids (checklists, cheat sheets, etc)
• Physical copies at the gemba
• Sole owner accountable for measurement &
management
• Supervisor accountable for checking
• Continuous improvement via daily
management vs. process audits

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TKMG’s Current Standard Work Template

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PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM
SOLVING
THE FIVE P’S

33

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So much data, so little information….
• Three types of data:
• Demand data
• Status data
• Outcomes data (Key Performance Indicators)

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Demand Data: Understanding the Current State

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10
15
20
25
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5:15
5:30
5:45
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6:15
6:30
6:45
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7:15
7:30
7:45
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8:15
8:30
8:45
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9:15
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10:15
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10:45
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11:15
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14:15
14:30
14:45
15:00
15:15
15:30
15:45
16:00
16:15
16:30
16:45
AverageStaffingLevel
AverageDailyVolume
Customer Arrival Times
Are you staffing to demand?

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Status Data
•Number of projects completed
•Percentage of business applications pending
•Number of engineering projects in queue
•Number of patients in the waiting room
•Number of calls holding
•Etc.

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KPI Boards: How are we doing?
Balanced
View
• Operational &
financial
• Critical to
customer &
critical to
business

43
Sample Daily Management Board Structure (Phase 1)
© 2017 The Karen Martin Group, Inc.
43
KPIsArea Readiness
Quick Hits
R/G Status Owner Action
Method
Equipment
Supplies
Staff
Information
Date Problem Owner Action Resolve by R/G
Other
OtherBig Problems
Date Problem Next Step Owner Resolve by Status R/G

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Sample Daily Management Board Structure (Phase 1)

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Daily Huddle - Surfacing Performance Gaps on a Daily Basis

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www.clarityfirstquiz.com

52
www.clarityfirstbook.com
What could you
accomplish with
greater clarity?