How Outstanding is Your
Organization?
Webinar
September 17, 2013

Welcome!
• Argentina
• Australia
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• Great Britain (UK)
• Hong Kong
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• Italy
• Netherlands
• New Zealand
• Philippines
• Spain
• United States
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 Coach / Facilitator / Consultant / Trainer:
Lead Lean transformations & develop people
across all industries.
 Teacher: University of California, San Diego
 Author & Speaker:
Karen Martin, President
The Karen Martin Group, Inc.
www.ksmartin.com
3
December
2013
2013 Shingo
Prize winner!

© 2013 The Karen Martin Group, Inc. 4
Upcoming Webinars
• Value Stream Mapping: Visualizing Work Flow and Aligning People for
Organizational Transformation
– Tuesday, October 8, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/151856458
• Improvement Facilitation & Coaching: An Open Forum
– Tuesday, October 29, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/999232762
• Plan‐Do‐Study‐Adjust
– Tuesday, December 3, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/893454842
• Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results
– Thursday, December 5, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/943880106

© 2013 The Karen Martin Group, Inc. 5
After the webinar…
• All recordings are available on:
– www.vimeo.com/karenmartingroup
– www.youtube.com/karenmartingroup
– www.slideshare.net/karenmartingroup
– www.ksmartin.com/webinars
• The materials are available on
– www.slideshare.net/karenmartingroup

To Download the
Organizational Self Assessment:
www.ksmartin.com/
the‐outstanding‐
organization
Click “Download a
free organizational
assessment”

© 2013 The Karen Martin Group, Inc. 7
www.bitly.com/TOObook
Winner
2013 Shingo
Research Prize

© 2013 The Karen Martin Group, Inc.
Success with Improvement
0%
10%
20%
30%
40%
50%
60%
70%
8
2001 – The Economist
Temporary LastingNone
17%
63%
20%

© 2013 The Karen Martin Group, Inc.
…A Decade Later
9
2010 – Accenture
0%
10%
20%
30%
40%
50%
60%
70%
80%
Minimal
financial
impact
Needs re‐evaluation,
restart or complete
makeover
“Mixed” to
“disappointing”
results
33%
58%
69%

© 2013 The Karen Martin Group, Inc.
Up to 98,000 deaths
annually due to
medical errors.
Improvement goal:
Reduce by 50% in 5 years
10
To Err is Human
Institute of Medicine, 1999

© 2013 The Karen Martin Group, Inc.
Something Is Terribly Wrong…
11
2009
2005 2010
2010
2011
“Progress has
been slow.”
Journal of the American
Medical Association
“Annual death toll
from medical
errors is closer to
200,000.”
Dead by Mistake
Heart Newspapers
Special Report
“180,000 Medicare
patients die annually
from medical errors.”
Office of the Inspector
General
“No significant
change in rate of
preventable errors.”
New England Journal of
Medicine
“33% hospitalized
patients are harmed;
7% result in permanent
injury or death.”
Health Affairs

© 2013 The Karen Martin Group, Inc. 12

© 2013 The Karen Martin Group, Inc. 13
Cracks in the Foundation

© 2013 The Karen Martin Group, Inc. 1414

© 2013 The Karen Martin Group, Inc. 15
What are the Mindsets and Behaviors
That Produce Excellence?

© 2013 The Karen Martin Group, Inc.
Requirements for Excellence
in ANY Endeavor
16

Ambiguity Abounds…
• Organization purpose & vision
• Customers & products
• Business goals & priorities
• Policies & procedures
• Roles & responsibilities
• Process performance
• Problem solving & decision making
• Communication
18

There is no such thing
as multitasking.*
* For cognitive tasks.
20

Focus Law #1:
STOP DOING
Focus Law #2:
DO FEWER THINGS
AT ONCE

22
1. Increase sales 5%.
3. Achieve 10% profit.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario
COM
Direct
CDs /
AMs
PD
Rec
PD
Mgmt
BMD SWS
2
3,500 units sold by 12/31/2013 through all channels
(approx. $700K)
X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3
11 Develop & deliver training to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3
21 Revised course materials by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2
5
Education: 1 school district spec'd/underperforming
COM distributor (25) by 12/31 valued at min $35K each
X X X X X X X X X X X X Howard Michael S 1 3 2 3 3
8
10 new dealers on board (net) ($500K per dealer this
year)
X X X X X X X X X X X X Howard Mike B 2 3
9
5 new distributors bringing $200K annual rev (& 5
terminated)
X X X X X X X X X X X X Howard Howard 1 1 1 2 3
17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3
29 20 by year‐end X X X X X X X X X X X X Howard Mark H 2 3 3 3
32 TBD X X X Howard Howard
33 TBD X X X X X X X X X Howard Howard
10
Useful reporting and metrics are established and in
place
X X Jim Randall 3 1 1 1 1 1 1
30 TBD X X X X X Jim Josh 3
31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1
25 TBD Jim Shannon 3 3 1 1 1 1 1
26 System 7.0's in place X X X Jim Randall 3 2 1 2 1
15
100% accurate payroll; 100% management satisfaction
at April mgmt. meeting
X X X Josh Phyllis 1 3
20
Internet task list is simplified and streamlined for
PDs then plan is rolled out to PDs
X X X X Michael M Michael M 2 3 2 3
22
Design Calculator is updated successfully and rolled
out
X X X Neall Matt D 3 1 1 3 2 2 3
24 Competitive Analysis complete and distributed for use X X X Neall Dana 2 3 3 3 3 3 3
1 Design changed to solve delam issue long‐term X X X X X Susan David R 3 2 3
12
30 parts sourced in U.S.; completed plan for managing
China‐sourced parts
X X X X X X Susan Shannon 3 3 2 2
13
Warehouse laid out; kanban revised; Syspro
implemented
X X X Susan Shannon 3
14 Lay out complete; equipment installed X X X Susan David R 3 3
X = Planned
2013 Priorities
2013 Goals & Objectives
4. Improve morale (metric TBD).
2. Achieve 50% gross margin. Created: 01‐14‐13
Revised:
Level of Effort/Involvement Required
Priority Goal or Measurable Objective Exec Owner
Plan review dates:
Tactical
Owner
● = Actual
< Company Name >
Contentremoved for confidentiality
© 2013 The Karen Martin Group, Inc.
Obtain Consensus, Then Maintain Focus by Consistent Plan Management

23
• Clarity – about what really
matters.
• Consensus – about what really
matters.
• Courage – to actively choose to
“not do” or “not do now.”
• Commitment – to follow
through on the plan.
© 2013 The Karen Martin Group, Inc.
Avoiding the Shiny Ball Syndrome
(Organizational ADD) Requires…

© 2013 The Karen Martin Group, Inc.

© 2013 The Karen Martin Group, Inc.
Train/Practice vs. Performance
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Athletes Businesses
25
Train
90%
Train
1%
Perform
99%
Perform
10%
Jim Loehr & Tony Schwartz, The Power of Full Engagement

© 2013 The Karen Martin Group, Inc.
Building mastery takes 10,000 hours
of deliberate practice
26
From The Outstanding Organization, p. 115

© 2013 The Karen Martin Group, Inc.
True Continuous Improvement

© 2013 The Karen Martin Group, Inc. 28
“Going to the gemba
has been life changing
for me as a leader.”
‐ Ginny Cattaneo, Sr. VP, Franklin
Templeton Investor Services

Lean (Done Right) Fuels Engagement
Engagement Accelerates Transformation
30
Lean
Practices
Employee
Engagement
© 2013 The Karen Martin Group, Inc.

To Download the
Organizational Self Assessment:
www.ksmartin.com/
the‐outstanding‐
organization
Click “Download a
free organizational
assessment”

Self‐Assessment
Sheet 1: Overview & Process
© 2013 The Karen Martin Group, Inc.

The Outstanding Organization
Self‐Assessment Sample Questions
Key Behavior Assessment Questions
Clarity C‐1: What % of the workforce can describe your organization’s
purpose and the value you provide to your external customers?
C‐6: What % of work areas have visual management in place?
Focus F‐2: What % of the workforce say that priorities are stable and
don’t shift unnecessarily?
F‐6: What % of meetings have stated goals and written agenda
that are communicated in advance?
Discipline F‐3: What % of processes have 2‐5 Key Performance indicators
that are consistently used to measure success and drive
improvement?
F‐5: What % of processes have a clearly identified process owner
who’s accountable for performance?
Engagement E‐4: What % of the workforce feel they have a degree of control
over their work processes and environment?
E‐5: What % of new hires receive all of the information,
equipment and supplies they need to be successful beginning on
day one?
© 2013 The Karen Martin Group, Inc.

Data Collection Recommendations
• Read each question carefully to know who the
target audience is (e.g. supervisors, front lines,
senior leaders, etc.)
• Define your sample size (keep it manageable, but
the larger the better – aim for at least 10%)
• Have a conversation. This is NOT a tool designed
for electronic communication.
• Consider collecting data by department, level of
employee, geographic region, shift, contractors vs.
employees, etc.
• Consider including external customers or suppliers
in your analysis.

Self‐Assessment
Sheet 2: Assessment
© 2013 The Karen Martin Group, Inc.

Embedded Comments Provide Clarification
© 2013 The Karen Martin Group, Inc.

Self‐Assessment
Sheet 3: Scorecard
© 2013 The Karen Martin Group, Inc.

© 2013 The Karen Martin Group, Inc.
TOO Assessment:
Baseline Measurements
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
A B C D E F G H
Clarity
Focus
Discipline
Engagement
38

© 2013 The Karen Martin Group, Inc.
Baseline Measurements
By Employee Type
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1st shift 2nd shift 3rd shift Management
Clarity
Focus
Discipline
Engagement
© The Karen Martin Group, Inc. 39

© 2013 The Karen Martin Group, Inc.© The Karen Martin Group, Inc. 40
How Do You Rate?
(1 = strongest; 4 = weakest)
Clarity Focus Discipline Engagement
Dept A 1 2 4 3
Dept B 1 3 4 2
Dept C 1 2 3 4
Dept D 4 1 2 3
Dept E 1 3 4 2
Dept F 1 2 3 4
Dept G 2 3 4 1
Dept H 2 4 3 1
Dept I 1 2 3 4

41
What’s Your Improvement Plan?

© 2013 The Karen Martin Group, Inc. 42
 X
#
Target
Condition(s)*
Action Owner Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
2013 2014
Date
Complet
e
= Begin
Instilling New Organizational Behaviors: Action Plan
*Target Condition(s): Clarity, Focus, Discipline, Engagement or a combination thereof
Date created: Version:
Plan review dates:
Timeline
Due
Date
Plan owner:
Support team:
%
Complet
e
Status
(Red,
Yellow,
Green)
= Timeline = Complete

© 2013 The Karen Martin Group, Inc.
Strive for Clarity About:
1. Organization purpose ____ ____
2. Customers & products ____ ____
3. Business goals & priorities ____ ____
4. Roles & responsibilities ____ ____
5. Process & process performance ____ ____
6. Problem solving & decision making ____ ____
7. Information ____ ____
1 = Very poor
10 = Outstanding
43
Aug
2013
Aug
2014

44

“You can make a difference no matter
where you sit in the organization.
But only if you start.”
45

© 2013 The Karen Martin Group, Inc.
Lean Practices Build CFDE;
CFDE is Required for Successful Lean Deployment
46

© 2013 The Karen Martin Group, Inc. 47
Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
For Further Questions
Blog & newsletter: www.ksmartin.com/subscribe