A webinar presented by Mark Graban, hosted by KaiNexus. In this webinar, you will learn: - The real meaning of "the carrot and the stick - The difference between motivating people and not demotivating them - The role of "recognition and rewards" in continuous improvement - The leadership behaviors that drive participation and alignment related to improvement

1. The Power of Alignment and
Intrinsic Motivation in
Continuous Improvement
Host: Clint Corley
Clint.Corley@KaiNexus.com
Presenter: Mark Graban
Mark@KaiNexus.com

2. Webinar Logistics
• Presentation (45 minutes)
• Q&A (10 minutes)
– Use the GoToWebinar
Meeting Panel to
submit a question at
any time
• Recording link & slides will be sent via email
– Also – see the “Handouts” feature and Chat box

3. Our Presenter: Mark Graban
• Senior Advisor, KaiNexus
• President, Constancy, Inc.
• Author of:
– Lean Hospitals
– Healthcare Kaizen
– Practicing Lean (editor)
– Measures of Success

4. A Very
Common
Question

5. “Should we give
incentives or rewards
for participation in
Kaizen?”

6. Rewards &
Recognition

9. https://www.leanblog.org/2014/11/our-toyota-tour-guides-kaizen/

12. “Kaizen is
voluntary.”

13. What’s their
motivation?

14. • “the reason or reasons one has for acting or
behaving in a particular way”
• “the general desire or willingness of someone
to do something”

15. • “provide (someone) with a motive
for doing something”
• “stimulate (someone's) interest in or
enthusiasm for doing something”

20. What problem are we trying to solve?

21. Not enough
improvement

22. Why?

23. • People aren't speaking up?
• People aren't improving?
• People aren’t documenting?

24. Blame

25. Why?

26. •Lack of participation?
•Lack of motivation?
•Lack of confidence?

27. “Most companies have
it all wrong.
They don’t have to
motivate their
employees.
They have to stop
demotivating them.”

29. “One is born with
intrinsic motivation,
self-esteem, dignity,
cooperation, curiosity,
joy in learning.
These attributes are high at
the beginning of life, but are
gradually crushed by the forces of destruction.”

31. “These forces… crush out joy in learning,
joy on the job, innovation.
Extrinsic motivation gradually replaces
intrinsic motivation, self-esteem, dignity.”

33. “In 85% of companies, employees' morale
sharply declines after their first six months
— and continues to deteriorate for years
afterward.”
– Based on surveys of about 1.2 million employees at 52 primarily Fortune 1000 companies
from 2001 through 2004, conducted by Sirota Survey Intelligence

35. It's the behaviors,
stupid!
Rewards and Recognition

36. “Substitute
Leadership.”

37. Leader Behaviors for
Strategy Deployment
• Define purpose clearly
• Identify the biggest obstacles
• Create an atmosphere conducive
to initiative and creativity
• Reduce hassle

38. Rewards and Recognition
(A countermeasure to what problem?)

39. Rewards and Recognition
• Incentives
• Bonuses
• Raises
• Targets
• Quotas

40. Rewards Sound Great But…

41. Paying for Ideas?
Advantages
• Seems motivating
• Gets attention and
participation from some
• Seems fair to share savings
Disadvantages
• Can discourage teamwork
• Seems unfair if value of idea
isn’t agreed on
• Takes focus off improvement
• Requires a bureaucracy
to manage
• Harms creativity

42. Recognition and Rewards
• Thanks
• Smiles
• Handshakes
• Public recognition
• Sharing improvements
• Annual awards
• Points
• Cash payments
• Time off
• Shared savings
• Drawings for prizes
• Performance appraisals

44. Paying for Ideas? What Works
• Small payments
• Based on implementation
• Includes all who participated

45. Setting Goals? What Works
• A goal, not a quota, not a limit
• Express belief in people
• If not hitting goals, ask "why?”
– Or “How might we?”
• Focus on the process, not just numbers

46. “Substitute
Leadership.”

47. The right behaviors lead to
employee participation…

48. "Clients, on average, implement
more than 80 percent of ideas
submitted via KaiNexus…"

49. If you don't get participation,
there's no hope for
alignment

50. If you get participation,
you can then aim for
some alignment

51. Alignment’s
too heavy
Participation’s
too light

52. AlignmentParticipation

53. Alignment in…
Measures Activities

54. Six
Sigma
Projects
Large
Kaizen
Medium
Kaizen
Small
Kaizen
Lean
Events
Circle size is meant to roughly represent relative size of effort; Blue = tracked top initiatives ("Baby A3s")
Complexity
Daily Kaizen
Women
& Children’s
3P
Electronic
Medical
Record
Implementation
New
Bed Tower
3 Types of Kaizen

55. Safety Quality Cost Morale

56. Safety
Inpatient
Labor &
Delivery
Med/Surg
Outpatient
Clinics
Clinic A
Physician A Physician B
Clinic B
Surgery
Emergency
Dept
Sprains &
Strains
Patient Falls
Patient Falls
X

57. Must Prioritize the Large Things
What are the
“must do, can’t fail”
initiatives for
our organization?
John Toussaint, MD

58. A Lack of Focus & Alignment
Photo: John Toussaint, M.D.

59. “Deselecting”
Source: ThedaCare

61. “Should we give
incentives or rewards
for participation in
Kaizen?”

62. “DO WE HAVE TO
give incentives or
rewards for
participation in Kaizen?”

63. “Moderation
in all things.”
#KaiNexusUC16
Ralph Waldo Emerson

64. #KaiNexusUC16
“In all things
balance is
better.”
Homer’s The Odyssey

65. Announcements
(Then Q&A)

66. Future Webinars
• Training Team Office Hours
– December 19 from 1:00 - 1:30 ET
• Ask Us Anything! #26
– January 17 from 1:00 - 1:30 ET
• Check out the on-demand
webinar library

67. Blog.KaiNexus.com

68. Podcasts
• www.KaiNexus.com/podcasts
• Subscribe via:
– Apple Podcasts
– Google Play
– Stitcher
– Spotify

69. Q&A
• Web:
– www.kainexus.com
– blog.kainexus.com
• Webinars on Demand:
– www.kainexus.com/webinars
• Social Media:
– www.twitter.com/kainexus
– www.linkedin.com/company/kainexus
– www.facebook.com/kainexus
Presenter: Mark Graban
Mark@KaiNexus.com
Host: Clint Corley
Clint.Corley@KaiNexus.com