To subscribe: http://www.ksmartin.com/subscribe To learn about Karen's books and products, please visit: http://www.ksmartin.com/books-products/. These are the slides from my keynote talk at the ASQ Lean and Six Sigma conference on February 28, 2012 in Phoenix.

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 y
Elwyn Brooks White
2

3. Success with Improvement
2001 – The Economist
70%
63%
60%
50%
40%
30%
20% 17% 20%
10%
0%
None Temporary Lasting
3

4. …A Decade Later
2010 – Accenture
80%
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 Human
Institute of Medicine, 1999
Up to 98,000 deaths
annually due to
medical errors.
8th leading cause of
death in U.S.
5

6. 6

7. To Err is Human
Institute of Medicine, 1999
98,000 lives lost
Improvement Goal:
I tG l
Reduce by 50%
y
in 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 & Behaviors
Mi 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 indoctrinate
all 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 4
LT 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 for
me 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 Findings
90%
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 people
and 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 to
make s re we don’t get on the
sure e
wrong track or try to do too
much. We’re
much We re always thinking
about new markets we could
enter, but it’s only by saying
y y y g
no that you can concentrate
on the things that are really
important.”
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 choose
wisely 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
Pactiv
108.0
Implements
Strategy 105.9
105 9
Deployment
101.0
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:
Catchball
What?
How? Executive
Who? Team
When?
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
ThedaCare
Implements
Implements
Strategy
Deployment
35

36. Annual Improvement Plan
1. Gain clarity around overarching business needs.
1 Gain clarity around overarching business needs
2. 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
– Eliminate
4. 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‐out
Roll‐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, Fleet
Complete "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 li
1 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 Year
80
73
70
60 No additional
resources;
;
50 higher quality
40 products
launched
30
24
20
10
0
Pre‐Focus Post‐Focus
39

40. Rockwell Automation
25
20
20 Projects
15
5 Started
12 12
10 Projects
5 Completed
3
0
Pre‐Focus Post‐Focus
40

41. Lack of Clarity
Lack of Focus
Lack of Discipline
Lack of Engagement
41

42. 42

43. How much
deliberate practice?
10,000
10 000 hours
43

44. Form
hypothesis
Standardize & Conduct
stabilize experiment
Measure
Measure
results
44

45. Relentless Reflection Leads to
Outstanding Performance
Rafael Nadal
successfully
successfully
returned this
shot to Andy
h d
Roddick.
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 solving
is hi h
i 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 Results
Clarity 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: @karenmartinopex
Monthly newsletter: www.ksmartin.com/subscribe
Monthly newsletter: www ksmartin com/subscribe
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