The Outstanding Organization: The Power
of Focus Presenter: Karen Martin Webinar April 5, 2012

Visit http://vimeo.com/39887415 to listento the
recorded webinar for this material.

 Founder, Karen Martin &
Associates, LLC(1993) Lead Lean transformations in the servicesector and office areas within manufacturing Teaches at University of California, SanDiego’s Lean Enterprise program Email: karen@ksmartin.com Twitter: @karenmartinopex Facebook:www.facebook.com/karenmartinassoc Karen Martin, Principal July 2012

We need to improve how
we improve. 4

Mindsets & Behaviors 5

Lack of Clarity Lack of
Focus Lack of Discipline Lack of Engagement 6

The Outstanding Organization Business Results
Problem Solving Improvement Continuous Resilience CoreCapabilities CHOS April 5 May 3 May 17 7

Lack of Clarity Lack of
Focus Lack of Discipline Lack of Engagement 8

Distraction Kills 9

Booz & Company Findings90% 82%80%70%
64%60% 49%50%40%30%20%10%0% No written… Conflicting… Competing demands 10

“The difference between successful peopleand
very successful people is that verysuccessful people say no to almost everything.” — Commonly attributed to Warren Buffett 11

By Instilling Greater Focus, ThedaCare
Doubled its operating margins without layoffs during a period where 74%of hospitals reported reduced margins ThedaCare reduces initiativesfrom 31 to 4 12

70%Organization is attempting ―more than‖
or ―significantly more than‖ we can reasonable handle. Poll of 700+ Subscribers 13

Apple’s Success―…saying no to 1,000
things tomake sure we don’t get on thewrong track or try to do toomuch. We’re always thinkingabout new markets we couldenter, but it’s only by sayingno that you can concentrateon the things that are reallyimportant.‖ — Steve Jobs 14

Productivity (Pounds Produced / Hr
Worked)115.0 Pactiv108.0 Implements Strategy 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 15

The Reality… …You CAN’T do
it all – and do it well. 16

17

The Myth of Multi-tasking• Not
possible to do 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 18

Not Convinced? Try this timed
experiment. Multitasking is a lie.1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Round 1: Write M, 1, U, 2, L, 3, etc.Round 2: Write complete sentence, followed by numbers 1-18.Round 2’s time will be approximate half of Round 1’s.FTU = Full Time Equivalent 19

Sporting Goods Manufacturer – Product
Launches Per Year80 737060 No additional resources;50 higher quality40 products launched30 2420100 Pre-Focus Post-Focus 20

Rockwell Automation2520 20 Projects15 Started
12 1210 Projects 5 Completed 3 0 Pre-Focus Post-Focus 21

Where We Need To Instill
Greater Focus Organization Division/Business Division/Business Division/Business Unit Unit UnitDepartment Department Department Department Department Department Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual

What is Your Improvement Strategy?
23

Avoiding the Shiny Ball Syndrome
(Organizational ADD) Requires…• Clarity – about what really matters.• Consensus – about what really matters.• Courage – to actively choose to “not do” or “not do now.” 24

Improvementaligned withoverarchingbusiness goals 25

Avoiding the Shiny Ball Syndrome
(Organizational ADD) Requires…• Clarity – about what really matters.• Consensus – about what really matters.• Courage – to actively choose to “not do” or “not do now.” 26

Strategy Deployment Key Feature: CatchballWhat?How?
ExecutiveWho? TeamWhen? What? How? Senior Who? Mgmt When? What? How? Middle Who? Mgmt When? What? How? Frontlines Who? When? 27

Avoiding the Shiny Ball Syndrome
(Organizational ADD) Requires…• Clarity – about what really matters.• Consensus – about what really matters.• Courage – to actively choose to “not do” or “not do now.” 28

Annual Improvement Plan1. Gain clarity
around overarching business needs.2. List everything you could do (and that you are doing).3. Categorize into: – “Must-do, can’t fail” – Maybe – Eliminate4. Decide what you will do – prioritize “maybe’s”; gain consensus.5. Create plan.6. Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!). 29

PACE Improvement Prioritization Grid 9
22 17 4 23 8 21 10 3 Easy 13 5 1 16 15Ease 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 0.5Ease 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 Figure 3.1 - Prioritization Grid

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 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 NotDevelop & 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, FleetComplete "River" (One Soft) Begin Complete Lisa B Roll-out Develop Safety Begin Complete Gary O Program 32

To create newideas is a
gift, butto choosewisely is a skill.— Ryan Morgan 33

Release Date: July 8, 2012
(McGraw-Hill) Available for Preorder: www.bit.ly/km-too 34

For Further Questions Karen Martin,
Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopexMonthly newsletter: www.ksmartin.com/subscribe 35