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Putting an End to Organizational ADD:
      Creating Your 2013 Work Plan




               Webinar
            October 4, 2012
 Founder: Karen Martin & Associates, LLC (1993).
 Consultant / Coach: Lead Lean transformations &
develop people in office, service and knowledge
environments.
 Teacher: University of California, San Diego’s
Lean Enterprise program.
 Author:

                                                    Karen Martin,
                                                      Principal




                                                    www.ksmartin.com

  Just released!    2nd Edition
                   October 2012
The Problem
      1. Leaders are frustrated by the “little” measurable
         improvement they’ve seen.
      2. Improvement professionals are not held in as high
         regard as they need to be.
      3. Too much to do; too few resources; too little time.
      4. Juggling multiple balls:
              o         Is inefficient
              o         Produces lower quality
              o         Creates stress; saps morale
              o         Slows results
              o         Produces organizational chaos
      o         We honor the ability to juggle instead of reducing the
                need to juggle.
                                                                         3
© 2012 Karen Martin & Associates, LLC
We need toimprove
        how we improve.




                          4
Typical Organization

    Unstable
Foundation Leads
to Unpredictable
  Performance




    Lacking Proper
     Mindsets &
      Behaviors


© 2012 Karen Martin & Associates, LLC
                                                               5
The Outstanding Organization

 Predictable
Performance             Business Performance

                 Problem Solving




                                   Improvement
                                    Continuous




                                                 Resilience
   Core
Capabilities




   Solid                           CHOS
Foundation



                                                              6
Clarity

                               Engagement         Focus

                                        Discipline



© 2012 Karen Martin & Associates, LLC
Lack of Clarity
                  Lack of Focus
                       Lack of Discipline
                            Lack of Engagement

© 2012 Karen Martin & Associates, LLC            8
Booz & Company Findings
90%
                                     82%
80%
70%
                        64%
60%
          49%
50%
40%
30%
20%
10%
0%
       No written    Conflicting   Competing
        priorities    priorities    demands
                                               9
70%
Organization is attempting “more than”
 or “significantly more than” we can
         reasonable handle.*



           * Poll of 700+ Subscribers


                                         10
The Temptation…
                                        …Saying YES to
                                           everything


                                                         11
© 2012 Karen Martin & Associates, LLC
“The difference between successful people
and very successful people is that very
successful people

          say no
                to almost everything.”


                — Commonly attributed to Warren Buffett




                                                          12
A Key to 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

© 2012 Karen Martin & Associates, LLC                  13
To create new
ideas is a gift, but
to choose
wisely is a skill.
— Ryan Morgan




                       14
The Reality…
                                        …You CAN’T do it all
                                           – and do it well.


                                                               15
© 2012 Karen Martin & Associates, LLC
There is no such thing
  as multitasking.*


     * For cognitive tasks.

                              16
The Myth of Multi-tasking
       • It’s not possible to perform 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
                                                                        17
© 2012 Karen Martin & Associates, LLC
Not Convinced?
                                        Try this timed experiment.

                                           Focus reduces chaos.
             1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
    Round 1: Write F, 1, O, 2, C, 3, U, 4… etc. (alternating—switch-
    tasking—between letters and numbers)

     Round 2: Write the complete sentence, followed by numbers 1-17
     (focused on one task at a time.

     Common result: Round 2’s time is 1/3 to 1/2 of Round 1’s.
                                                                       18
© 2012 Karen Martin & Associates, LLC
What’s Your Improvement Plan?




                                19
You Need a Written Annual Improvement Plan:
                                        How to Get from Point A to Point B



                                               Problems     Opportunities




                             Current                                         Target
                            Condition                                       Condition
                             Point A                                         Point B



                                                    Environmental
                                                       Factors




                                                                                        20
© 2012 Karen Martin & Associates, LLC
Hoshin Kanri
                                        (Strategy Deployment)




© 2012 Karen Martin & Associates, LLC
Hoshin Kanri X-Matrix




                        22
“Hoshin-Lite” Annual Work Plan
      PRE - Gain clarity around overarching business needs.

      1. List everything you could do (and that you are doing).
      2. Categorize into:
               –        Must-do, can’t fail
               –        Maybe
               –        Eliminate
               –        Delay (next fiscal year)
      3. Decide what you will do; gain consensus.
      4. Prioritize and create plan.

      POST - Manage plan via weekly updates (may be able to reduce
      to monthly reviews – but be careful!).

                                                                     23
© 2012 Karen Martin & Associates, LLC
PRE WORK
            Gain clarity (and consensus) around
                   annual business goals.




                                                   24
© 2012 Karen Martin & Associates, LLC
Label Four Flip Chart Pages & Hang on Wall
                                          Must do           Eliminate
1. List what you could do on
   3x6” post-its (active or
   planned initiatives,
   projects & improvement
   activities). Gain consensus.

2. Categorize them (place
   post-it on appropriate
   page. Gain consensus.
                                           Maybe             Delay

3. Decide what you will do.
   (Move “maybe’s” onto one
   of the other three pages.)
   Gain consensus.




© 2012 Karen Martin & Associates, LLC                                   25
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?
                                                                                             26
© 2012 Karen Martin & Associates, LLC
Must do   Eliminate

         Step 4
     Prioritize
    must-do’s;
    Create Plan

                                        Maybe      Delay




© 2012 Karen Martin & Associates, LLC
                                                              27
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



© 2012 Karen Martin & Associates, LLC
Downloadable Excel Prioritization Chart
                                                             The Outstanding Organization: Achieving Focus

Chart Title                Prioritization Chart                                To use this Template:
                                                                                1) Enter the title of the chart in Cell B2
Number of Items                    5                                            2) Enter the number of items (e.g. projects, improvement activities, etc.) in cell B4
                       4                                                        3) Enter the item name and ranking information into A8-D8 and so on.
                            Organizational                         Degree of
           Item Name           Benefit            Execution Ease   Urgency*
Item   1                          9                      1             1                                            Prioritization Chart
Item   2                          7                      3             2
                                                                                                   10
Item   3                          5                      5             3
Item   4                          3                      7             4                           9
Item   5                          1                      9             5                           8
                                                                                                   7




                                                                                  Execution Ease
                                                                                                   6
                                                                                                   5
                                                                                                   4
                                                                                                   3
                                                                                                   2
                                                                                                   1
                                                                                                   0
                                                                                                        0   1   2    3     4       5       6      7       8       9     10
                                                                                                                         Organizational Benefit


                                                                               * Degree of urgency is indicated by bubble size.




                                        www.ksmartin.com/the-outstanding-organization
                                       www.scribd.com/doc/101695938/Prioritization-Chart
Annual Work 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



© 2012 Karen Martin & Associates, LLC                                                                                                                                        31
Annual Improvement Plan
Tier 1 Priority:                                                 Executive Owner:                                          Date Created:

Tier 2 Priority:                                                 Tactical Owner:
Background/Scope:                                                                                                          Next Review:



Measurable Objective(s):
Core work team:                                                  Input/Review needed by:
Relationship to Annual Business Goal(s):                                                Timeline
                                                                                                                                       Status
                                                                             = Original Plan       X = Complete               %         (Red,
                                                                  Due                                                      Complete    Yellow,
                                                                                               2012
                                                                  Date                                                                 Green)
 #                         Action Item     Owner   Deliverable           Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

 1
 2
 3
 4
 5
 6
 7
 8
 9
10
11
12
13
14
15
16
17
18
19
20
                                                                                                                                                 32
Frequent Status
Meetings Assure
Ongoing Alignment &
Distraction Avoidance




                        33
POST: Plan Management

    • Weekly status meetings to start, then 2x a month,
      then monthly (required attendance).
    • Focus: how to turn yellow & red items into green.
    • Expectation: Full team helps remove obstacles
    • Tone: supportive but tough
    • Plan is adapted to changing conditions, but avoid
      Org-ADD (organizational attention deficit disorder)
      and falling prey to unnecessary distractions.


                                                                34
© 2012 Karen Martin & Associates, LLC
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



                                                        35
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
                                                 36
Rockwell Automation

25
      20
20                            Projects
15                            Started
                  12 12
10                            Projects
 5                            Completed
           3
 0
     Pre-Focus   Post-Focus


                                          37
Avoiding the Shiny Ball Syndrome
                                 (Organizational ADD) Requires…

    • Clarity – about what really
      matters & organizational
      direction.
    • Consensus – about how best
      to get there.
    • Courage – to actively choose
      to “not do” or “not do now.”
    • Commitment – to stick with
      the plan.

                                                                   38
© 2012 Karen Martin & Associates, LLC
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




                                                 39

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Putting an End to "Organizational ADD"

  • 1. Putting an End to Organizational ADD: Creating Your 2013 Work Plan Webinar October 4, 2012
  • 2.  Founder: Karen Martin & Associates, LLC (1993).  Consultant / Coach: Lead Lean transformations & develop people in office, service and knowledge environments.  Teacher: University of California, San Diego’s Lean Enterprise program.  Author: Karen Martin, Principal www.ksmartin.com Just released! 2nd Edition October 2012
  • 3. The Problem 1. Leaders are frustrated by the “little” measurable improvement they’ve seen. 2. Improvement professionals are not held in as high regard as they need to be. 3. Too much to do; too few resources; too little time. 4. Juggling multiple balls: o Is inefficient o Produces lower quality o Creates stress; saps morale o Slows results o Produces organizational chaos o We honor the ability to juggle instead of reducing the need to juggle. 3 © 2012 Karen Martin & Associates, LLC
  • 4. We need toimprove how we improve. 4
  • 5. Typical Organization Unstable Foundation Leads to Unpredictable Performance Lacking Proper Mindsets & Behaviors © 2012 Karen Martin & Associates, LLC 5
  • 6. The Outstanding Organization Predictable Performance Business Performance Problem Solving Improvement Continuous Resilience Core Capabilities Solid CHOS Foundation 6
  • 7. Clarity Engagement Focus Discipline © 2012 Karen Martin & Associates, LLC
  • 8. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement © 2012 Karen Martin & Associates, LLC 8
  • 9. Booz & Company Findings 90% 82% 80% 70% 64% 60% 49% 50% 40% 30% 20% 10% 0% No written Conflicting Competing priorities priorities demands 9
  • 10. 70% Organization is attempting “more than” or “significantly more than” we can reasonable handle.* * Poll of 700+ Subscribers 10
  • 11. The Temptation… …Saying YES to everything 11 © 2012 Karen Martin & Associates, LLC
  • 12. “The difference between successful people and very successful people is that very successful people say no to almost everything.” — Commonly attributed to Warren Buffett 12
  • 13. A Key to 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 © 2012 Karen Martin & Associates, LLC 13
  • 14. To create new ideas is a gift, but to choose wisely is a skill. — Ryan Morgan 14
  • 15. The Reality… …You CAN’T do it all – and do it well. 15 © 2012 Karen Martin & Associates, LLC
  • 16. There is no such thing as multitasking.* * For cognitive tasks. 16
  • 17. The Myth of Multi-tasking • It’s not possible to perform 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 17 © 2012 Karen Martin & Associates, LLC
  • 18. Not Convinced? Try this timed experiment. Focus reduces chaos. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Round 1: Write F, 1, O, 2, C, 3, U, 4… etc. (alternating—switch- tasking—between letters and numbers) Round 2: Write the complete sentence, followed by numbers 1-17 (focused on one task at a time. Common result: Round 2’s time is 1/3 to 1/2 of Round 1’s. 18 © 2012 Karen Martin & Associates, LLC
  • 20. You Need a Written Annual Improvement Plan: How to Get from Point A to Point B Problems Opportunities Current Target Condition Condition Point A Point B Environmental Factors 20 © 2012 Karen Martin & Associates, LLC
  • 21. Hoshin Kanri (Strategy Deployment) © 2012 Karen Martin & Associates, LLC
  • 23. “Hoshin-Lite” Annual Work Plan PRE - Gain clarity around overarching business needs. 1. List everything you could do (and that you are doing). 2. Categorize into: – Must-do, can’t fail – Maybe – Eliminate – Delay (next fiscal year) 3. Decide what you will do; gain consensus. 4. Prioritize and create plan. POST - Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!). 23 © 2012 Karen Martin & Associates, LLC
  • 24. PRE WORK Gain clarity (and consensus) around annual business goals. 24 © 2012 Karen Martin & Associates, LLC
  • 25. Label Four Flip Chart Pages & Hang on Wall Must do Eliminate 1. List what you could do on 3x6” post-its (active or planned initiatives, projects & improvement activities). Gain consensus. 2. Categorize them (place post-it on appropriate page. Gain consensus. Maybe Delay 3. Decide what you will do. (Move “maybe’s” onto one of the other three pages.) Gain consensus. © 2012 Karen Martin & Associates, LLC 25
  • 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? 26 © 2012 Karen Martin & Associates, LLC
  • 27. Must do Eliminate Step 4 Prioritize must-do’s; Create Plan Maybe Delay © 2012 Karen Martin & Associates, LLC 27
  • 28. 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
  • 29. 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 © 2012 Karen Martin & Associates, LLC
  • 30. Downloadable Excel Prioritization Chart The Outstanding Organization: Achieving Focus Chart Title Prioritization Chart To use this Template: 1) Enter the title of the chart in Cell B2 Number of Items 5 2) Enter the number of items (e.g. projects, improvement activities, etc.) in cell B4 4 3) Enter the item name and ranking information into A8-D8 and so on. Organizational Degree of Item Name Benefit Execution Ease Urgency* Item 1 9 1 1 Prioritization Chart Item 2 7 3 2 10 Item 3 5 5 3 Item 4 3 7 4 9 Item 5 1 9 5 8 7 Execution Ease 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 Organizational Benefit * Degree of urgency is indicated by bubble size. www.ksmartin.com/the-outstanding-organization www.scribd.com/doc/101695938/Prioritization-Chart
  • 31. Annual Work 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 © 2012 Karen Martin & Associates, LLC 31
  • 32. Annual Improvement Plan Tier 1 Priority: Executive Owner: Date Created: Tier 2 Priority: Tactical Owner: Background/Scope: Next Review: Measurable Objective(s): Core work team: Input/Review needed by: Relationship to Annual Business Goal(s): Timeline Status = Original Plan X = Complete % (Red, Due Complete Yellow, 2012 Date Green) # Action Item Owner Deliverable Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 32
  • 33. Frequent Status Meetings Assure Ongoing Alignment & Distraction Avoidance 33
  • 34. POST: Plan Management • Weekly status meetings to start, then 2x a month, then monthly (required attendance). • Focus: how to turn yellow & red items into green. • Expectation: Full team helps remove obstacles • Tone: supportive but tough • Plan is adapted to changing conditions, but avoid Org-ADD (organizational attention deficit disorder) and falling prey to unnecessary distractions. 34 © 2012 Karen Martin & Associates, LLC
  • 35. 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 35
  • 36. 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 36
  • 37. Rockwell Automation 25 20 20 Projects 15 Started 12 12 10 Projects 5 Completed 3 0 Pre-Focus Post-Focus 37
  • 38. Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires… • Clarity – about what really matters & organizational direction. • Consensus – about how best to get there. • Courage – to actively choose to “not do” or “not do now.” • Commitment – to stick with the plan. 38 © 2012 Karen Martin & Associates, LLC
  • 39. 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 39