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Clarity First: Process & Performance

TKMG, Inc.
TKMG, Inc.
TKMG, Inc.President, The Karen Martin Group, Inc. at TKMG, Inc.

These are the slides that accompany the webinar found at: https://vimeo.com/280459431 Operating with clear processes makes or breaks organizational performance and it's an aspect of operations that is often fairly weak. Measuring organizational performance—whether overall performance or the performance of a small work team—is another area that we find often organizations struggling with. In this webinar—the 3rd of 5 webinars based on content from my latest book, Clarity First—you'll learn the five criteria for robust process management and best practices for measuring and managing performance at any level in the organization. Additional topics will include creating and using standard work, how to properly roll out process changes, and avoiding measurement that drives the wrong behaviors.

Clarity First: Process & Performance

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Download to read offline
Clarity First: Process & Performance
2
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
1 2
4 5
5
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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Pan Dhoni - Modernizing Data And Analytics using AI.pdf
 

Clarity First: Process & Performance

  • 2. 2 Have you taken The Clarity Quiz? www.clarityfirstquiz.com
  • 3. 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
  • 4. Clarity First Summer Webinar Series 4 www.TKMG.com/webinars 1 2 4 5
  • 5. 5 PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM SOLVING PURSING ORGANIZATIONAL CLARITY: THE FIVE P’S www.clarityfirstbook.com
  • 6. 6 PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM SOLVING THE FIVE P’S
  • 7. 7 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
  • 8. Work: Degrees of Granularity 8 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
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  • 10. 10 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
  • 11. 11 Function FunctionFunctionFunction Core Value Stream Support Value Stream Silo-Centric vs. Value Stream Thinking Value stream segment Value stream segment
  • 12. 12 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
  • 13. 1313 © 2015 The Karen Martin Group, Inc.
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  • 15. 15 Value Stream Mapping Benefit: Seeing the Whole 15 Value Stream Mapping enables a mapping team to get ABOVE the work
  • 16. 16 Value Stream Thinking ≈ Systems Thinking System Efficiency = Optimal Value Stream Performance Departmental Efficiency ≠ System Optimization
  • 18. 1818 Visualize the entire cycle of value delivery on a single sheet of paper 18
  • 19. 1919 © 2016 The Karen Martin Group, Inc.
  • 21. 21 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!
  • 22. 22 It’s not about the map. It’s about the conversations, insights, decisions, alignment, and commitment to action that mapping generates.
  • 23. 23 CLEAR PROCESSES  Documented  Current  Followed  Consistently monitored  Regularly improved
  • 24. 24 Well-Defined Processes  Safe  Efficient and effective  Easy to understand  Easy to perform successfully pp 111-114, Clarity First
  • 25. 25 Value Stream Map ≠ Process Flow Chart
  • 26. 26 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”
  • 27. 27 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)
  • 28. 28 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.
  • 29. 29 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
  • 30. 30 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
  • 32. 32 PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM SOLVING THE FIVE P’S
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  • 35. 35 So much data, so little information…. • Three types of data: • Demand data • Status data • Outcomes data (Key Performance Indicators)
  • 36. 36 Demand Data: Understanding the Current State
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  • 41. 41 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.
  • 42. 42 KPI Boards: How are we doing? Balanced View • Operational & financial • Critical to customer & critical to business
  • 43. 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
  • 44. 44 44 Sample Daily Management Board Structure (Phase 1)
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  • 49. 49 Daily Huddle - Surfacing Performance Gaps on a Daily Basis
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