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Measures of Success: React Less, Lead Better, Improve More

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In this webinar, Mark Graban shares key insights from his new book that will help you be more effective with your Lean management system. He will share the practical methods and mindsets of “Process Behavior Charts” that apply at the boardroom strategy deployment level and for frontline unit huddle boards. Every metric shows variation over time, but if we react to every change in every metric, then nothing is a priority. This approach can help us waste less time, which means we can improve more effectively and sustainably.

In this webinar, participants will:

Know the three questions people should ask about their metrics and the system that leads to those results
Learn how to interpret their metrics with “Process Behavior Charts”
Determine when to react to a change in a metric, based on three simple rules for determining that we have found a “signal” in the noise
Understand how Process Behavior Charts are more effective than “Bowling Charts” or “red/green” analysis

Published in: Business
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Measures of Success: React Less, Lead Better, Improve More

  1. Measures of Success: React Less, Lead Better, Improve More Mark Graban, MSME, MBA Info: www.MeasuresOfSuccessBook.com/CHVN2018
  2. Lean Management System
  3. A Lean Management System Methods • Value Stream Mapping • Kaizen Boards • Daily Huddles • A3 Problem Solving • Strategy Deployment • Performance Measures Mindsets • Customer Focus • Respect for People • Create a system in which people can be successful • Engage everybody • Scientific, systematic problem solving and improvement
  4. A Lean Management System • One goal is reducing waste • This includes "management waste" • Wasted motion • Overprocessing
  5. What gets measured, gets managed.
  6. How do we manage?
  7. Three Key Questions 1. Are we achieving our target or goal? 2. Are we improving? 3. How do we improve?
  8. 1:15 PM
  9. "Bowling Chart"
  10. Three Key Questions 1. Are we achieving our target or goal? 2. Are we improving? 3. How do we improve?
  11. Additional Questions • Which of these numbers (if any) suggests that the system has changed significantly? • Which of these merit reaction, investigation, or explanation? • How do we prioritize?
  12. • The question is "how much is typical?" • My resting heart rate: There is Variation in Every Metric 69 70 71 72 73 74 75 76 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul10-Jul11-Jul12-Jul13-Jul14-Jul15-Jul16-Jul17-Jul18-Jul19-Jul20-Jul21-Jul22-Jul23-Jul24-Jul Run Chart (Mark's Resting Heart Rate)
  13. Signals vs. Noise "While every data set contains noise, some data sets may contain signals. Therefore, before you can detect a signal within any given data set, you must first filter out the noise." "Process Behavior Charts"
  14. "Process Behavior Chart" 64 66 68 70 72 74 76 78 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 14-Jul 15-Jul 16-Jul 17-Jul 18-Jul 19-Jul 20-Jul 21-Jul 22-Jul 23-Jul 24-Jul Run Chart (Mark's Resting Heart Rate)
  15. 64 66 68 70 72 74 76 78 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 14-Jul 15-Jul 16-Jul 17-Jul 18-Jul 19-Jul 20-Jul 21-Jul 22-Jul 23-Jul 24-Jul X Chart (Individuals Data) "Process Behavior Chart" AVERAGE X Chart (Mark's Resting Heart Rate)
  16. "Process Behavior Chart" 64 66 68 70 72 74 76 78 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 14-Jul 15-Jul 16-Jul 17-Jul 18-Jul 19-Jul 20-Jul 21-Jul 22-Jul 23-Jul 24-Jul X Chart (Individuals Data) AVERAGE UPPER NATURAL PROCESS LIMIT LOWER NATURAL PROCESS LIMIT NOISE PREDICTABLE METRIC X Chart (Mark's Resting Heart Rate)
  17. 3 Rules for Finding a Signal
  18. 60 62 64 66 68 70 72 74 76 78 80 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul10-Jul11-Jul12-Jul13-Jul14-Jul15-Jul16-Jul17-Jul18-Jul19-Jul20-Jul21-Jul22-Jul23-Jul24-Jul25-Jul26-Jul27-Jul28-Jul29-Jul30-Jul31-Jul1-A ug2-A ug3-A ug4-A ug5-A ug6-A ug7-A ug8-A ug9-A ug10-A ug11-A ug12-A ug13-A ug14-A ug15-A ug X Chart (Mark's Resting Heart Rate) Mark's Resting Heart Rate SIGNAL WHAT CHANGED?
  19. 60 62 64 66 68 70 72 74 76 78 80 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul10-Jul11-Jul12-Jul13-Jul14-Jul15-Jul16-Jul17-Jul18-Jul19-Jul20-Jul21-Jul22-Jul23-Jul24-Jul25-Jul26-Jul27-Jul28-Jul29-Jul30-Jul31-Jul1-A ug2-A ug3-A ug4-A ug5-A ug6-A ug7-A ug8-A ug9-A ug10-A ug11-A ug12-A ug13-A ug14-A ug15-A ug X Chart (Mark's Resting Heart Rate) Mark's Resting Heart Rate WHAT CHANGED? SIGNAL
  20. 60 62 64 66 68 70 72 74 76 78 80 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul10-Jul11-Jul12-Jul13-Jul14-Jul15-Jul16-Jul17-Jul18-Jul19-Jul20-Jul21-Jul22-Jul23-Jul24-Jul25-Jul26-Jul27-Jul28-Jul29-Jul30-Jul31-Jul1-A ug 2-A ug 3-A ug 4-A ug 5-A ug 6-A ug 7-A ug 8-A ug 9-A ug10-A ug11-A ug12-A ug13-A ug14-A ug15-A ug X Chart (Mark's Resting Heart Rate) Mark's Resting Heart Rate SHIFT
  21. 60 62 64 66 68 70 72 74 76 78 80 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul10-Jul11-Jul12-Jul13-Jul14-Jul15-Jul16-Jul17-Jul18-Jul19-Jul20-Jul21-Jul22-Jul23-Jul24-Jul25-Jul26-Jul27-Jul28-Jul29-Jul30-Jul31-Jul1-A ug 2-A ug 3-A ug 4-A ug 5-A ug 6-A ug 7-A ug 8-A ug 9-A ug10-A ug11-A ug12-A ug13-A ug14-A ug15-A ug X Chart (Mark's Resting Heart Rate) Mark's Resting Heart Rate SIGNALS GOT SICK WHAT CHANGED?
  22. The Day I Got Sick
  23. 60 62 64 66 68 70 72 74 76 78 80 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul10-Jul11-Jul12-Jul13-Jul14-Jul15-Jul16-Jul17-Jul18-Jul19-Jul20-Jul21-Jul22-Jul23-Jul24-Jul25-Jul26-Jul27-Jul28-Jul29-Jul30-Jul31-Jul1-A ug 2-A ug 3-A ug 4-A ug 5-A ug 6-A ug 7-A ug 8-A ug 9-A ug10-A ug11-A ug12-A ug13-A ug14-A ug15-A ug X Chart (Mark's Resting Heart Rate) Mark's Resting Heart Rate SHIFTWHAT CHANGED?
  24. Three Key Questions 1. Are we achieving our target or goal? 2. Are we improving? 3. How do we improve?
  25. Bowling Chart as Run Charts 0% 10% 20% 30% 40% 50% 60% 70% 80% Jan Feb Mar Apr May Jun Jul Aug Sep Run Chart (Team Engagement) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Jan Feb Mar Apr May Jun Jul Aug Sep Run Chart (Recommend) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Jan Feb Mar Apr May Jun Jul Aug Sep Rating 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Jan Feb Mar Apr May Jun Jul Aug Sep Run Chart (Falls w/ Sev Injury) 0.0 0.5 1.0 1.5 2.0 2.5 Jan Feb Mar Apr May Jun Jul Aug Sep Run Chart (CLABSI) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Jan Feb Mar Apr May Jun Jul Aug Sep Run Chart (CAUTI)
  26. Bowling Chart as PBCs 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Falls w/ Sev Injury) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (CLABSI) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (CAUTI) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Team Engagement) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Recommend) 50% 55% 60% 65% 70% 75% 80% 85% Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Rating) SIGNAL SIGNALS NOISE
  27. Three Key Questions 1. Are we achieving our target or goal? 2. Are we improving? 3. How do we improve?
  28. •"These [11 watch indicators] are reported and discussed weekly, and, if an indicator falls outside of the expected limits, the senior team begins an A3 to analyze and correct the problem." • What are “the expected limits?” • A Process Behavior Chart tells you the limits of what's expected or predicted From Beyond Heroes
  29. • "Explain every point worse than average" • "Investigate every point that's in the red" • "If a watch metric is red two months in a row, it becomes a driver" Be Careful With Common Rules of Thumb
  30. My Suggested Definitions & Approach Driver Metrics • Metrics that are not consistently meeting the target (GAPS) • Therefore, prioritize improvement work here • When to be reactive? When to be systematic? • Don't overreact to noise • Look for shifts in the metric Watch Metrics • Metrics that are predictably meeting the target • Keep tracking the metric • React and investigate when we see a signal • This doesn't mean "red" • Don't overreact to noise
  31. Unpredictable & Not Meeting Target (Driver) STABILIZE THE SYSTEM! ROOT CAUSE? ROOT CAUSE?
  32. Predictable & Not Meeting Target (Driver) IMPROVE THE SYSTEM!
  33. Predictable and Always Meets Target (Watch) IMPROVE THE SYSTEM?
  34. Bowling Chart as PBCs with Red/Green 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Falls w/ Sev Injury) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (CLABSI) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (CAUTI) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Team Engagement) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Recommend) 50% 55% 60% 65% 70% 75% 80% 85% Jan Feb Mar Apr May Jun Jul Aug Sep X Chart (Rating) SIGNAL SIGNAL NOISE
  35. • "Once the target on a driver has been achieved and the improved process appears stable, the team can move the project from the 'drivers' to a 'watch' list." •What is stable?" •A Process Behavior Chart tells you • What is "predictable?" From Beyond Heroes
  36. Predictable and Sometimes Meets Target (Driver) IMPROVE THE SYSTEM! DON'T OVERREACT!
  37. Going From Driver to Watch
  38. Signals in a Watch Metric SIGNAL WHAT CHANGED?
  39. Three Key Questions Question 1: Are we achieving our target or goal? a. Are we doing so occasionally? b. Are we doing so consistently? Question 2: Are we improving? a. Can we predict future performance? Question 3: How do we improve? a. When do we react? b. When do we step back and improve the system? c. How will know if we’ve improved?
  40. React Less Lead Better Improve More
  41. Measures of Success: React Less, Lead Better, Improve More Mark Graban, MSME, MBA • www.MeasuresOfSuccessBook.com/CHVN2018 • www.MarkGraban.com • Mark@MarkGraban.com

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