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