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Clarity First: Process & Performance
The document outlines methods for achieving organizational clarity through strategies involving purpose, priorities, process, performance, and problem solving, termed the five P's. It emphasizes the importance of value stream mapping to enhance understanding of workflows and identify inefficiencies, while promoting standard work practices for consistency and continuous improvement. Key metrics are discussed to gauge process efficacy and organizational effectiveness.
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Clarity First: Process & Performance
- 2. 2 Have you taken TheClarity Quiz? www.clarityfirstquiz.com
- 3. 3 Clarity: What it is Whyyou need it How to get it www.clarityfirstbook.com https://www.amazon.com/Clarity- First-Organizations-Outstanding- Performance/dp/1259837351
- 4. Clarity First SummerWebinar Series 4 www.TKMG.com/webinars 1 2 4 5
- 5. 5 PURPOSE PRIORITIES PROCESSPERFORMANCE PROBLEM SOLVING PURSING ORGANIZATIONAL CLARITY: THE FIVE P’S www.clarityfirstbook.com
- 6. 6 PURPOSE PRIORITIES PROCESSPERFORMANCE PROBLEM SOLVING THE FIVE P’S
- 7. 7 Work: Degrees ofGranularity Value Stream Process Process Process Step StepStep Macro Perspective • Define strategic direction (“what”) • Heavy leadership involvement • Value Stream Mapping Micro Perspective • Identify the tactical “how” • Heavy frontline involvement • Metrics-Based Process Mapping
- 8. Work: Degrees ofGranularity 8 Begin Discussions with Prospective Client Negotiate & Execute Contract Communicate Plan Options & Enrollment Process Enroll Employees Service the Contract Value Stream Process Negotiate pricing Approve Negotiate terms Approve Execute Contract CUSTOMER
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- 10. 10 Improvement Roles Who? AccountabilityManagement Practice Senior Leaders What • PDSA Problem Solving • Hoshin Planning (aka Strategy Deployment) • Value Stream Management Frontlines How • PDSA Problem Solving • Daily management, kaizen • Projects (kaikaku) StrategicTactical Middle Management
- 11. 11 Function FunctionFunctionFunction Core ValueStream Support Value Stream Silo-Centric vs. Value Stream Thinking Value stream segment Value stream segment
- 12. 12 Value Stream FamiliesShare Common Process Steps Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Value Stream #1
- 13. 1313 © 2015 TheKaren Martin Group, Inc.
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- 15. 15 Value Stream MappingBenefit: Seeing the Whole 15 Value Stream Mapping enables a mapping team to get ABOVE the work
- 16. 16 Value Stream Thinking≈ Systems Thinking System Efficiency = Optimal Value Stream Performance Departmental Efficiency ≠ System Optimization
- 17. 17 Understand Value StreamPerformance
- 18. 1818 Visualize the entirecycle of value delivery on a single sheet of paper 18
- 19. 1919 © 2016 TheKaren Martin Group, Inc.
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- 21. 21 Sample Discoveries DuringValue Stream Analysis • Current KPIs serve as perverse incentives driving the wrong • Backlogs are far larger than assumed—and not going down. • Quality is far lower than believed. • Timestamps don’t reflect reality. • Sales and operations work at cross-purposes. • Significant and dangerous problems have been hidden. • Customers aren’t nearly as happy as leaders believe. • There’s far more expensive waste in the system than believed. • Company isn’t collecting nearly as much revenue as it could/should be. • The data sucks!
- 22. 22 It’s not aboutthe map. It’s about the conversations, insights, decisions, alignment, and commitment to action that mapping generates.
- 23. 23 CLEAR PROCESSES Documented Current Followed Consistently monitored Regularly improved
- 24. 24 Well-Defined Processes Safe Efficient and effective Easy to understand Easy to perform successfully pp 111-114, Clarity First
- 25. 25 Value Stream Map≠ Process Flow Chart
- 26. 26 Value Stream Map≠ Swim Lane Process Map Benefits Administrator Receive negative drug screen results Complete “New Hire Approval” form; send to recruiter Recruiter Sign “New Hire Approval” form Recruiter Sign “New Hire Approval” form Set up employee in SAP; notify hiring manager Hiring Manager Request laptop on “New Hire Equip. Request” form IT Manager Approve “New Hire Equip. Request”
- 27. 27 0 1 0 15 6 -1 0 Activity PT LT%C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A 1 Fax PO to Sales Rep 0 0 45% 2 Review PO; clarify with customer as needed 20 2 90% Fax PO to warehouse 10 4 90% 5 6 Check inventory levels; notify Sales Rep re: status 5 4 95% Fax PO to Sales Rep 5 0.33 90% 0 20 10 5 5 0 2 4 4 0.33 45% 90% 90% 95% 90% 0 20 10 5 5 Rolled %C&A Critical Path LT Total PT Critical Path PT 5431 2 Mary Townsend Hours Worked per Day Sally Dampier Occurrences per Year Sam Parks Current State Metrics-Based Process Map Dave Morgan25-Jun-08 8 Facilitator Process Details Michael Prichard Order FulfillmentProcess Name Specific Conditions Domestic orders through sales force 37,500 Date Mapped Sean Michaels Sales Rep Ryan AustinDiane O'Shea Mapping Team LT Units Function / Department PT Units Step # ► Customer Finance Warehouse / Shipping Seconds Minutes Hours Days Seconds Minutes Hours Days Metrics-Based Process Mapping Key metrics: • Lead time (LT) • Process time (PT) • Percent Complete & Accurate (%C&A)
- 28. 28 Standard Work forALL Key Processes Current best known way to operate that minimizes errors, maximizes productivity, and allows all workers to be highly successful.
- 29. 29 Standard work andsustaining improvement Standard work is the wedge that keeps us from back-sliding Process Process Improvement Universal law of Entropy All systems need continuous maintenance to keep them operating at their optimal levels
- 30. 30 Standard Work forEverything Standard Work Best Practices • Includes work standards • Highlights new process components or common areas where errors occur • Link to job aids (checklists, cheat sheets, etc) • Physical copies at the gemba • Sole owner accountable for measurement & management • Supervisor accountable for checking • Continuous improvement via daily management vs. process audits
- 31. 31 TKMG’s Current StandardWork Template
- 32. 32 PURPOSE PRIORITIES PROCESSPERFORMANCE PROBLEM SOLVING THE FIVE P’S
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- 35. 35 So much data,so little information…. • Three types of data: • Demand data • Status data • Outcomes data (Key Performance Indicators)
- 36. 36 Demand Data: Understandingthe Current State
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- 41. 41 Status Data •Number ofprojects completed •Percentage of business applications pending •Number of engineering projects in queue •Number of patients in the waiting room •Number of calls holding •Etc.
- 42. 42 KPI Boards: Howare we doing? Balanced View • Operational & financial • Critical to customer & critical to business
- 43. 43 Sample Daily ManagementBoard Structure (Phase 1) © 2017 The Karen Martin Group, Inc. 43 KPIsArea Readiness Quick Hits R/G Status Owner Action Method Equipment Supplies Staff Information Date Problem Owner Action Resolve by R/G Other OtherBig Problems Date Problem Next Step Owner Resolve by Status R/G
- 44. 44 44 Sample Daily ManagementBoard Structure (Phase 1)
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- 49. 49 Daily Huddle -Surfacing Performance Gaps on a Daily Basis
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- 52. 52 www.clarityfirstbook.com What could you accomplishwith greater clarity?