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Creating the Improvement-Minded Organization

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These are the slides from my keynote talk at the ASQ Lean and Six Sigma conference on February 28, 2012 in Phoenix.

Published in: Business, Technology

Creating the Improvement-Minded Organization

  1. Creating the Improvement- Minded Organization Karen M i K Martin American Society for Quality American Society for Quality Lean and Six Sigma Conference  Phoenix, AZ , February 28, 2012
  2. “I arise in the morning torn between a desire to I arise in the morning torn between a desire to improve the world and a desire to enjoy the world. This makes it hard to plan the day.” p yElwyn Brooks White  2
  3. Success with Improvement 2001 – The Economist70% 63%60%50%40%30%20% 17% 20%10%0% None Temporary Lasting 3
  4. …A Decade Later 2010 – Accenture80%70% 69%60% 58%50%40% 33%30%20%10%0% “Mixed” to  Minimal  Needs re‐evaluation,  “disappointing”  financial  restart or complete  results impact makeover 4
  5. To Err is HumanInstitute of Medicine, 1999Up to 98,000 deathsannually due tomedical errors.8th leading cause ofdeath in U.S. 5
  6. 6
  7. To Err is Human Institute of Medicine, 199998,000 lives lostImprovement Goal:I tG lReduce by 50% yin 5 years. 7
  8. Not. Even. Close. 8
  9. 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. errors 200,000. New England Journal of Dead by Mistake Medicine Heart Newspapers Special Report 9
  10. What are we missing? 10
  11. We need to improve p how we improve. p 11
  12. Mindsets & BehaviorsMi d t & B h i 12
  13. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 13
  14. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 14
  15. What type of cathedral are we building? 15
  16. Who are your customers?What problem does your good or service solve? 16
  17. You must indoctrinateall new hires into vision, customers, and value—and speak about it frequently.  k b i f l 17
  18. How does work get accomplished?  And well how are we doing at it? And well how are we doing at it? Customer C stomer Process Process Process Process 1 2 3 4LT LT LT LT PT PT PT PT 18
  19. 19
  20. Truth Truth Truth Truth Truth Truth Truth Truth Truth 20
  21. 21
  22. “Going to the gemba has been life changing for life changing forme as a leader.”  22
  23. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 23
  24. Distraction Kills 24
  25. Booz & Company Findings90% 82%80%70% 64%60% 49%50%40%30%20%10%0% No written No written Conflicting  Conflicting Competing  Competing priorities priorities demands 25
  26. “The difference between successful peopleand very successful people is that very successful people say no to almost everything.” — Commonly attributed to Warren Buffett y 26
  27. Apple’s Success“…saying no to 1,000 things tomake s re we don’t get on the sure ewrong track or try to do toomuch. We’remuch We re always thinkingabout new markets we couldenter, but it’s only by saying y y y gno that you can concentrateon the things that are reallyimportant.”i t t” — Steve Jobs 27
  28. The Reality…The Reality… …You CAN’T do it all – Y CAN’T d it ll and do it well. and do it well 28
  29. To create new ideas is a gift, but to choose to choosewisely is a skill.— Ryan Morgan 29
  30. 30
  31. What is Your Improvement Strategy? p gy 31
  32. Productivity (Pounds Produced / Hr Worked)115.0 Pactiv108.0 Implements Strategy 105.9 105 9 Deployment101.0 95.2 94.0 93.0 90.6 87.0 86.3 84.8 80.0 FY 06 FY 07 FY 08 FY 09 FY 10 YTD 11 32
  33. 33
  34. Strategy Deployment Key Feature:  CatchballWhat?How? Executive Who? TeamWhen? What? How? Senior  Who? Mgmt When? What? How? Middle  Who? Mgmt When? What? How? H ? Frontlines Who? When? 34
  35. Recession deepens 2.5x  more Medicaid patients ThedaCareImplements Implements Strategy Deployment 35
  36. Annual Improvement Plan1. Gain clarity around overarching business needs.1 Gain clarity around overarching business needs2. List everything you could do (and that you are doing).3. Categorize into:3 C t i i t – “Must‐do, can’t fail” – Maybe – Eliminate4. Decide what you will do  prioritize  maybe s ; gain 4 Decide what you will do – prioritize “maybe’s”; gain consensus.5. Create plan. Create plan.6. Manage plan via weekly updates (may be able to  reduce to monthly reviews – but be careful!). y f ) 36
  37. Annual Improvement Plan Company ABC Priorities FY 2012 FY 2013 Exec  Tactical  Priority Others Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Owner Owner MS‐2  MS‐1 Integrate DHR Begin Acct Brad P Ops Complete Complete New  Travel Program  Begin Complete Scott R Fred S Roll‐outRoll‐out Tablets to  Begin &  Brad P Installation Complete Lisa D,  Complete 360  Marina, Begin Complete Justin C Justin C Steve R Steve R Roll‐out SM, Tech, Hal, Doug Create Line‐item  Begin Complete Lisa B Mark C P.O.s Refinance credit  Begin g Scott R facility f ilit Complete ADP  Begin Complete Gary O Roll‐out Not Develop & Roll‐out  MS‐1 MS‐2 MS‐3 Begin complete  Steve C TBD Handheld 2.2 Handheld 2 2 Clean Code Clean Code Pilot Go live Go live until 2013 Complete GPS  RDs Cons.,  Begin Complete Steve C Roll‐out HR, FleetComplete "River"  (One Soft)  Begin Complete Lisa B Roll‐out R ll t Develop Safety  Begin Complete Gary O Program 37
  38. An Experiment M u l t i M l i t a s k i n g   i s   a   l i e . ki i li1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 38
  39. Sporting Goods Manufacturer – Product Launches Per Year80 737060 No additional  resources;  ;50 higher quality 40 products  launched30 242010 0 Pre‐Focus Post‐Focus 39
  40. Rockwell Automation25 2020 Projects 15 5 Started 12 1210 Projects 5 Completed 30 Pre‐Focus Post‐Focus 40
  41. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 41
  42. 42
  43. How muchdeliberate practice? 10,000 10 000 hours 43
  44. Form  hypothesisStandardize &  Conduct  stabilize experiment Measure  Measure results 44
  45. Relentless Reflection Leads to Outstanding PerformanceRafael Nadalsuccessfully successfullyreturned this shot to Andy  h dRoddick. 45
  46. Discipline 46
  47. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 47
  48. Energy Crisis: Widespread Disengagement 48
  49. “The corporate world is appalling bad The corporate world is appalling bad at capitalizing on the strengths of its people.” — Marcus Buckingham 49
  50. Engagement: The Three C’s Connection Creativity Control 50
  51. Problem solvingis hi hi a high. 51
  52. The Power of Re-engaging“I went home yesterday and told my family that it was one  of the best working days I have ever had. I was able to  of the best working days I have ever had I was able to fully use my capabilities for three days to help in creating  a very good output on an insane schedule…  yg p…More important than the work we accomplished was  getting all the people in the room yesterday to challenge  tti ll th l i th t d t h ll the conventional wisdom and perceived walls regarding  existing processes and standards. THIS is the real  existing processes and standards THIS is the real success!” — Fred Valezano, P.E. Fred Valezano, P.E. 52
  53. Our role isn’t to “do.”Our role is to teach teach. 53
  54. The Next Frontier…The Middle Manager 54
  55. Business ResultsClarity  Focus  Discipline  Engagement 55
  56. Knowing is not enough; we must apply. l Willing is not enough; we must do. g g ; — Goethe 56
  57. The Outstanding Organization:Generate Business Results by Eliminating Chaos and Build the Foundation for Everyday Excellence Release Date: June 8, 2012  (McGraw‐Hill) Preorder now:  www.bit.ly/km‐too 57
  58. Thank you. 58
  59. For Further Questions Karen Martin Principal Martin, 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopexMonthly newsletter: www.ksmartin.com/subscribeMonthly newsletter: www ksmartin com/subscribe 59

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