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

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?

8. Three Key Questions
1. Are we
achieving
our target or
goal?
2. Are we
improving?
3. How do we
improve?

10. 1:15 PM

11. "Bowling Chart"

12. Three Key Questions
1. Are we
achieving
our target or
goal?
2. Are we
improving?
3. How do we
improve?

13. 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?

14. • The question is "how much is typical?"
• My resting heart rate:
There is Variation in Every Metric
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Run Chart (Mark's Resting Heart Rate)

15. 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"

16. "Process Behavior Chart"
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Run Chart (Mark's Resting Heart Rate)

17. 64
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X Chart (Individuals Data)
"Process Behavior Chart"
AVERAGE
X Chart (Mark's Resting Heart Rate)

18. "Process Behavior Chart"
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X Chart (Individuals Data)
AVERAGE
UPPER NATURAL PROCESS LIMIT
LOWER NATURAL PROCESS LIMIT
NOISE
PREDICTABLE METRIC
X Chart (Mark's Resting Heart Rate)

19. 3 Rules for Finding a Signal

20. 60
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X Chart (Mark's Resting Heart Rate)
Mark's Resting Heart Rate
SIGNAL
WHAT
CHANGED?

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X Chart (Mark's Resting Heart Rate)
Mark's Resting Heart Rate
WHAT
CHANGED?
SIGNAL

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80
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X Chart (Mark's Resting Heart Rate)
Mark's Resting Heart Rate
SHIFT

23. 60
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80
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2-Jul
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X Chart (Mark's Resting Heart Rate)
Mark's Resting Heart Rate SIGNALS
GOT SICK
WHAT
CHANGED?

24. The Day I Got Sick

25. 60
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80
1-Jul
2-Jul
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X Chart (Mark's Resting Heart Rate)
Mark's Resting Heart Rate
SHIFTWHAT
CHANGED?

26. Three Key Questions
1. Are we
achieving
our target or
goal?
2. Are we
improving?
3. How do we
improve?

27. 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%
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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)

28. 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
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1.0
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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%
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90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Team Engagement)
0%
10%
20%
30%
40%
50%
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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

29. Three Key Questions
1. Are we
achieving
our target or
goal?
2. Are we
improving?
3. How do we
improve?

30. •"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

31. • "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

32. 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

33. Unpredictable & Not Meeting Target
(Driver)
STABILIZE THE SYSTEM!
ROOT CAUSE?
ROOT CAUSE?

34. Predictable & Not Meeting Target
(Driver)
IMPROVE THE SYSTEM!

35. Predictable and Always Meets Target
(Watch)
IMPROVE THE
SYSTEM?

36. 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%
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70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Team Engagement)
0%
10%
20%
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80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Recommend)
50%
55%
60%
65%
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75%
80%
85%
Jan Feb Mar Apr May Jun Jul Aug Sep
X Chart (Rating)
SIGNAL
SIGNAL
NOISE

37. • "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

38. Predictable and Sometimes Meets Target
(Driver)
IMPROVE THE SYSTEM!
DON'T OVERREACT!

39. Going From Driver to Watch

40. Signals in a Watch Metric
SIGNAL
WHAT
CHANGED?

41. 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?

42. React Less
Lead Better
Improve More

43. Measures of Success:
React Less, Lead Better, Improve More
Mark Graban, MSME, MBA
• www.MeasuresOfSuccessBook.com/CHVN2018
• www.MarkGraban.com
• Mark@MarkGraban.com