Putting an End to Organizational
ADD: Creating Your 2013 Work Plan Webinar October 4, 2012

 Founder: Karen Martin &
Associates, LLC (1993).  Consultant / Coach: Lead Lean transformations & develop people in office, service and knowledge environments.  Teacher: University of California, San Diego’s Lean Enterprise program.  Author: Karen Martin, Principal www.ksmartin.com Just released! 2nd Edition October 2012

The Problem 1. Leaders are
frustrated by the “little” measurable improvement they’ve seen. 2. Improvement professionals are not held in as high regard as they need to be. 3. Too much to do; too few resources; too little time. 4. Juggling multiple balls: o Is inefficient o Produces lower quality o Creates stress; saps morale o Slows results o Produces organizational chaos o We honor the ability to juggle instead of reducing the need to juggle. 3 © 2012 Karen Martin & Associates, LLC

We need toimprove how we
improve. 4

Typical Organization Unstable Foundation Leads
to Unpredictable Performance Lacking Proper Mindsets & Behaviors © 2012 Karen Martin & Associates, LLC 5

The Outstanding Organization Predictable Performance
Business Performance Problem Solving Improvement Continuous Resilience Core Capabilities Solid CHOS Foundation 6

Clarity Engagement Focus Discipline ©
2012 Karen Martin & Associates, LLC

Lack of Clarity Lack of
Focus Lack of Discipline Lack of Engagement © 2012 Karen Martin & Associates, LLC 8

Booz & Company Findings 90%
82% 80% 70% 64% 60% 49% 50% 40% 30% 20% 10% 0% No written Conflicting Competing priorities priorities demands 9

70% Organization is attempting “more
than” or “significantly more than” we can reasonable handle.* * Poll of 700+ Subscribers 10

The Temptation… …Saying YES to
everything 11 © 2012 Karen Martin & Associates, LLC

“The difference between successful people
and very successful people is that very successful people say no to almost everything.” — Commonly attributed to Warren Buffett 12

A Key to Apple’s Success?
“…saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much. We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.” — Steve Jobs © 2012 Karen Martin & Associates, LLC 13

To create new ideas is
a gift, but to choose wisely is a skill. — Ryan Morgan 14

The Reality… …You CAN’T do
it all – and do it well. 15 © 2012 Karen Martin & Associates, LLC

There is no such thing
as multitasking.* * For cognitive tasks. 16

The Myth of Multi-tasking •
It’s not possible to perform two conscious activities at once. • You are “switch-tasking.” • David Meyer – University of Michigan – Engineers switched between projects 5-8 times per day – Each switch added 20 minutes of process time – If switch only 5x per day, adds 1.7 hrs per day or 407 hours (10 weeks) of process time per engineer – In company w/ 15 engineers = 3 FTEs* worth of labor. * FTE = Full Time Equivalent 17 © 2012 Karen Martin & Associates, LLC

Not Convinced? Try this timed
experiment. Focus reduces chaos. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Round 1: Write F, 1, O, 2, C, 3, U, 4… etc. (alternating—switch- tasking—between letters and numbers) Round 2: Write the complete sentence, followed by numbers 1-17 (focused on one task at a time. Common result: Round 2’s time is 1/3 to 1/2 of Round 1’s. 18 © 2012 Karen Martin & Associates, LLC

What’s Your Improvement Plan?
19

You Need a Written Annual
Improvement Plan: How to Get from Point A to Point B Problems Opportunities Current Target Condition Condition Point A Point B Environmental Factors 20 © 2012 Karen Martin & Associates, LLC

Hoshin Kanri (Strategy Deployment) ©
2012 Karen Martin & Associates, LLC

Hoshin Kanri X-Matrix
22

“Hoshin-Lite” Annual Work Plan PRE
- Gain clarity around overarching business needs. 1. List everything you could do (and that you are doing). 2. Categorize into: – Must-do, can’t fail – Maybe – Eliminate – Delay (next fiscal year) 3. Decide what you will do; gain consensus. 4. Prioritize and create plan. POST - Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!). 23 © 2012 Karen Martin & Associates, LLC

PRE WORK Gain clarity (and
consensus) around annual business goals. 24 © 2012 Karen Martin & Associates, LLC

Label Four Flip Chart Pages
& Hang on Wall Must do Eliminate 1. List what you could do on 3x6” post-its (active or planned initiatives, projects & improvement activities). Gain consensus. 2. Categorize them (place post-it on appropriate page. Gain consensus. Maybe Delay 3. Decide what you will do. (Move “maybe’s” onto one of the other three pages.) Gain consensus. © 2012 Karen Martin & Associates, LLC 25

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? Frontlines Who? When? 26 © 2012 Karen Martin & Associates, LLC

Must do Eliminate Step 4
Prioritize must-do’s; Create Plan Maybe Delay © 2012 Karen Martin & Associates, LLC 27

PACE Improvement Prioritization Grid 9
22 17 4 23 8 21 10 3 Easy 13 5 1 16 15 Ease of Implementation 20 14 19 6 7 11 2 18 12 Difficult High Low Anticipated Benefit

Evolving Prioritization Grid Third dimension:
Urgency Highest priority Mathematical Formula 0.7 0.6 0.5 Ease of Implementation 0.4 0.3 0.2 0.1 0 0 0.1 0.2 0.3 0.4 0.5 0.6 Potential Benefit © 2012 Karen Martin & Associates, LLC

Downloadable Excel Prioritization Chart The
Outstanding Organization: Achieving Focus Chart Title Prioritization Chart To use this Template: 1) Enter the title of the chart in Cell B2 Number of Items 5 2) Enter the number of items (e.g. projects, improvement activities, etc.) in cell B4 4 3) Enter the item name and ranking information into A8-D8 and so on. Organizational Degree of Item Name Benefit Execution Ease Urgency* Item 1 9 1 1 Prioritization Chart Item 2 7 3 2 10 Item 3 5 5 3 Item 4 3 7 4 9 Item 5 1 9 5 8 7 Execution Ease 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 Organizational Benefit * Degree of urgency is indicated by bubble size. www.ksmartin.com/the-outstanding-organization www.scribd.com/doc/101695938/Prioritization-Chart

Annual Work 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 Steve R Roll-out SM, Tech, Hal, Doug Create Line-item Begin Complete Lisa B Mark C P.O.s Refinance credit Begin Scott R facility 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 Clean Code Pilot 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 Develop Safety Begin Complete Gary O Program © 2012 Karen Martin & Associates, LLC 31

Annual Improvement Plan Tier 1
Priority: Executive Owner: Date Created: Tier 2 Priority: Tactical Owner: Background/Scope: Next Review: Measurable Objective(s): Core work team: Input/Review needed by: Relationship to Annual Business Goal(s): Timeline Status = Original Plan X = Complete % (Red, Due Complete Yellow, 2012 Date Green) # Action Item Owner Deliverable Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 32

Frequent Status Meetings Assure Ongoing
Alignment & Distraction Avoidance 33

POST: Plan Management • Weekly
status meetings to start, then 2x a month, then monthly (required attendance). • Focus: how to turn yellow & red items into green. • Expectation: Full team helps remove obstacles • Tone: supportive but tough • Plan is adapted to changing conditions, but avoid Org-ADD (organizational attention deficit disorder) and falling prey to unnecessary distractions. 34 © 2012 Karen Martin & Associates, LLC

By Instilling Greater Focus, ThedaCare
Doubled its operating margins without layoffs during a period where 74%of hospitals reported reduced margins ThedaCare reduces initiatives from 31 to 4 35

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 36

Rockwell Automation 25 20 20
Projects 15 Started 12 12 10 Projects 5 Completed 3 0 Pre-Focus Post-Focus 37

Avoiding the Shiny Ball Syndrome
(Organizational ADD) Requires… • Clarity – about what really matters & organizational direction. • Consensus – about how best to get there. • Courage – to actively choose to “not do” or “not do now.” • Commitment – to stick with the plan. 38 © 2012 Karen Martin & Associates, LLC

Karen Martin, Principal 7770 Regents
Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopex Monthly newsletter: www.ksmartin.com/subscribe 39