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The Outstanding Organization:
      The Power of Focus

       Presenter: Karen Martin


             Webinar
            April 5, 2012
Visit http://vimeo.com/39887415 to listen
to the recorded webinar for this material.
 Founder, Karen Martin & Associates, LLC
(1993)
 Lead Lean transformations in the service
sector and office areas within manufacturing
 Teaches at University of California, San
Diego’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
   Core
Capabilities


                                       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 Findings
90%
                                       82%
80%
70%
                        64%
60%
         49%
50%
40%
30%
20%
10%
0%
       No written…   Conflicting… Competing demands

                                                      10
“The difference between successful people
and very successful people is that very
successful 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
  initiatives
from 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 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

                                 14
Productivity (Pounds Produced / Hr Worked)
115.0


                        Pactiv
108.0                Implements
                       Strategy                                   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

                                                                            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 18

Round 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 Year
80
                    73
70
60                            No additional
                              resources;
50                            higher quality
40                            products
                              launched
30
        24
20
10
0
     Pre-Focus   Post-Focus                    20
Rockwell Automation

25
20    20
                              Projects
15                            Started
                  12 12
10
                              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                                    Unit




Department          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
Improvement
aligned with
overarching
business 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:
              Catchball
What?
How?    Executive
Who?      Team
When?


               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 Plan
1. 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
   – Eliminate
4. 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
                                                                         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
 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-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


                                                                                                                                                                             32
To create new
ideas is a gift, but
to choose
wisely 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: @karenmartinopex

Monthly newsletter: www.ksmartin.com/subscribe




                                                 35

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The Outstanding Organization: The Power of Focus

  • 1. The Outstanding Organization: The Power of Focus Presenter: Karen Martin Webinar April 5, 2012
  • 2. Visit http://vimeo.com/39887415 to listen to the recorded webinar for this material.
  • 3.  Founder, Karen Martin & Associates, LLC (1993)  Lead Lean transformations in the service sector and office areas within manufacturing  Teaches at University of California, San Diego’s Lean Enterprise program  Email: karen@ksmartin.com  Twitter: @karenmartinopex  Facebook: www.facebook.com/karenmartinassoc Karen Martin, Principal July 2012
  • 4. We need to improve how we improve. 4
  • 6. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 6
  • 7. The Outstanding Organization Business Results Problem Solving Improvement Continuous Resilience Core Capabilities CHOS April 5 May 3 May 17 7
  • 8. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 8
  • 10. Booz & Company Findings 90% 82% 80% 70% 64% 60% 49% 50% 40% 30% 20% 10% 0% No written… Conflicting… Competing demands 10
  • 11. “The difference between successful people and very successful people is that very successful people say no to almost everything.” — Commonly attributed to Warren Buffett 11
  • 12. 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 12
  • 13. 70% Organization is attempting ―more than‖ or ―significantly more than‖ we can reasonable handle. Poll of 700+ Subscribers 13
  • 14. 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 14
  • 15. Productivity (Pounds Produced / Hr Worked) 115.0 Pactiv 108.0 Implements Strategy 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 15
  • 16. The Reality… …You CAN’T do it all – and do it well. 16
  • 17. 17
  • 18. 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
  • 19. 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 18 Round 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
  • 20. 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 20
  • 21. Rockwell Automation 25 20 20 Projects 15 Started 12 12 10 Projects 5 Completed 3 0 Pre-Focus Post-Focus 21
  • 22. Where We Need To Instill Greater Focus Organization Division/Business Division/Business Division/Business Unit Unit Unit Department Department Department Department Department Department Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual
  • 23. What is Your Improvement Strategy? 23
  • 24. 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
  • 26. 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
  • 27. 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? 27
  • 28. 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
  • 29. Annual Improvement Plan 1. 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 – Eliminate 4. 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
  • 30. 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
  • 31. 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 Figure 3.1 - Prioritization Grid
  • 32. 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 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 32
  • 33. To create new ideas is a gift, but to choose wisely is a skill. — Ryan Morgan 33
  • 34. Release Date: July 8, 2012 (McGraw-Hill) Available for Preorder: www.bit.ly/km-too 34
  • 35. For Further Questions 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 35

Editor's Notes

  1. Jim Collins – Stop doing list.Matt May – The Laws of Subtraction“Not Do” List.
  2. So Ari has his 12 natural laws of business – I have four. Instead we often find ourselves trying to maneuver within rather chaotic environments. We need to pay more attention to the fundamentals.There are four behavioral patterns that are required for excellence in any endeavor but are missing in many organizations. (click…)(I almost numbered these 1, 1, 1, and 1)Define each term - MG
  3. I have noticed an alarming amount of ambiguity from big picture issues to the micro details of how an organization operations. At a macro level.. (next slide)
  4. Distraction kills on the road and it kills in business as well.
  5. Ongoing studyAri mentioned the Alice in Wonderland quote, which is in my next book – it doesn’t matter which path you take if you have no idea where you’re going.
  6. Jim Collins – Stop doing list.Matt May – The Laws of Subtraction“Not Do” List.
  7. This takes courage.
  8. Notice these steep productivity gains achieving during a significant recession.
  9. Now imagine how this plays out across an entire organization.Not keynotey - MG
  10. So let’s say you don’t have immediate leverage over your exec team. While you’re influencing them, you can produce more local results by implementing these mindsets and behaviors at a more local level – say a single business unit, functional area, or work team.
  11. Multi-tasking is a lie. David Meyer – studied engineers – switched tasks 5-8 times per day and took add’l 20 mins each time they did it. In a company with 15 engineers, that’s 3 FTEs of wasted labor.20-40% more projects completed by focusing on fewer at any given time.If you want to prove this to people – Have them write Multitasking is a lie and numbers 1-18. Dave Crenshaw The Myth of Multitasking.
  12. So here is what our new organization will look like at the leadership level.My span of control remains the same, still with 7 direct reports.However, as I mentioned earlier, part of my objective is to create better, tighter and stronger alignment across the organization.This means that:All Service functions will organize under one leader.All Sales functions will organize under one leader.We’ll be adding dedicated focus to relationship management so we have a primary go-to person.We’re putting all administrative support functions together into one group.And we’ll be adding resources dedicated to Op Ex.Supply Chain and Strategy/Analysis are essentially unchanged.This is just a high level view, and I’m going to spend more detail on the areas with the most change. But before we look at individual boxes of responsibility, I’d like to share the overall design for how we’ll be approaching and organizing Sales and Service.This is a new model for how we’ll focus on and organize around the customer.
  13. Consensus – disagree but commit.