How Outstanding Is Your Organization?: An Assessment

How Outstanding is Your Organization?

WebinarSeptember 17, 2013

Welcome!

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Coach / Facilitator / Consultant / Trainer: Lead Lean transformations & develop people across all industries.

Teacher: University of California, San Diego

Author & Speaker:

Karen Martin, PresidentThe Karen Martin Group, Inc.

www.ksmartin.com

3

December 2013

2013 Shingo Prize winner!

© 2013 The Karen Martin Group, Inc. 4

Upcoming Webinars

• Value Stream Mapping: Visualizing Work Flow and Aligning People for Organizational Transformation– Tuesday, October 8, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/151856458

• Improvement Facilitation & Coaching: An Open Forum– Tuesday, October 29, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/999232762

• Plan‐Do‐Study‐Adjust– Tuesday, December 3, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/893454842

• Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results– Thursday, December 5, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/943880106

© 2013 The Karen Martin Group, Inc. 5

After the webinar…

• All recordings are available on:– www.vimeo.com/karenmartingroup– www.youtube.com/karenmartingroup– www.slideshare.net/karenmartingroup– www.ksmartin.com/webinars

• The materials are available on– www.slideshare.net/karenmartingroup

To Download the Organizational Self Assessment:

www.ksmartin.com/the‐outstanding‐organization

Click “Download a free organizational 

assessment”

© 2013 The Karen Martin Group, Inc. 7

www.bitly.com/TOObook

Winner 2013 Shingo Research Prize

© 2013 The Karen Martin Group, Inc.

Success with Improvement

0%

10%

20%

30%

40%

50%

60%

70%

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2001 – The Economist

Temporary LastingNone

17%

63%

20%

© 2013 The Karen Martin Group, Inc.

…A Decade Later

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2010 – Accenture

0%

10%

20%

30%

40%

50%

60%

70%

80%

Minimal financial impact

Needs re‐evaluation, restart or complete 

makeover

“Mixed” to “disappointing” 

results

33%

58%69%

© 2013 The Karen Martin Group, Inc.

Up to 98,000 deathsannually due tomedical errors.

Improvement goal:Reduce by 50% in 5 years

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To Err is HumanInstitute of Medicine, 1999

© 2013 The Karen Martin Group, Inc.

Something Is Terribly Wrong…

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2009

2005 2010

2010

2011

“Progress has been slow.”

Journal of the American Medical Association

“Annual death toll from medical 

errors is closer to 200,000.”

Dead by MistakeHeart Newspapers Special Report

“180,000 Medicare patients die annually from medical errors.”

Office of the Inspector General

“No significant change in rate of 

preventable errors.”New England Journal of 

Medicine

“33% hospitalized patients are harmed; 7% result in permanent 

injury or death.”Health Affairs

© 2013 The Karen Martin Group, Inc. 12

© 2013 The Karen Martin Group, Inc. 13

Cracks in the Foundation

© 2013 The Karen Martin Group, Inc. 1414

© 2013 The Karen Martin Group, Inc. 15

What are the Mindsets and Behaviors That Produce Excellence?

© 2013 The Karen Martin Group, Inc.

Requirements for Excellence in ANY Endeavor

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Ambiguity Abounds…

• Organization purpose & vision• Customers & products• Business goals & priorities• Policies & procedures• Roles & responsibilities• Process performance• Problem solving & decision making• Communication

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There is no such thing as multitasking.*

* For cognitive tasks.

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Focus Law #1:STOP DOING

Focus Law #2:DO FEWER THINGS 

AT ONCE

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1. Increase sales 5%.3. Achieve 10% profit.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario COM Direct 

CDs / AMs

PD Rec

PD Mgmt

BMD SWS

23,500 units  sold by 12/31/2013 through al l  channels  (approx. $700K)

X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3

11 Develop & del iver tra ining to top 50 Dealers X X X X X X Bob Rex/Tim  3 3 3

21 Revised course  materia ls  by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2

5Education: 1 school  dis trict spec'd/underperforming COM dis tributor (25) by 12/31 valued at min $35K each

X X X X X X X X X X X X Howard Michael   S 1 3 2 3 3

810 new dea lers  on board (net) ($500K per dealer this  year)

X X X X X X X X X X X X Howard Mike  B 2 3

95 new dis tributors  bringing $200K annual  rev (& 5 terminated)

X X X X X X X X X X X X Howard Howard 1 1 1 2 3

17 10 projects  spec'd  by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3

29 20 by year‐end X X X X X X X X X X X X Howard Mark H 2 3 3 3

32 TBD X X X Howard Howard

33 TBD X X X X X X X X X Howard Howard

10Useful  reporting and metrics  are  establ i shed and in place  

X X Jim Randal l 3 1 1 1 1 1 1

30 TBD X X X X X Jim Josh 3

31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1

25 TBD Jim  Shannon  3 3 1 1 1 1 1

26 System 7.0's  in place X X X Jim  Randal l 3 2 1 2 1

15100% accurate  payrol l ; 100% management sati s faction at Apri l  mgmt. meeting

X X X Josh Phyl l is 1 3

20Internet task l i s t i s  s impl i fied and streaml ined for PDs  then plan i s  rol led out to PDs  

X X X X Michael  M Michael  M 2 3 2 3

22Des ign Calculator i s  updated success ful ly and rol led out

X X X Neal l Matt D 3 1 1 3 2 2 3

24 Competi tive  Analys is  complete  and distributed for use X X X Neal l Dana 2 3 3 3 3 3 3

1 Des ign changed to solve  delam i ssue   long‐term X X X X X Susan David R 3 2 3

1230 parts  sourced in U.S.; completed plan for managing China ‐sourced parts

X X X X X X Susan Shannon 3 3 2 2

13Warehouse  la id out; kanban revised; Syspro implemented

X X X Susan Shannon 3

14 Lay out complete; equipment ins ta l led X X X Susan David  R 3 3

X = Planned

2013 Priorities

2013 Goals & Objectives4. Improve morale (metric TBD).2. Achieve 50% gross margin. Created: 01‐14‐13

Revised: Level of Effort/Involvement Required

Priority Goal or Measurable Objective Exec Owner

Plan review dates:

Tactical Owner

● =  Actual

< Company Name >Co

nten

trem

oved

 for con

fiden

tiality 

© 2013 The Karen Martin Group, Inc.

Obtain Consensus, Then Maintain Focus by Consistent Plan Management

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• Clarity – about what really matters.

• Consensus – about what really matters.

• Courage – to actively choose to “not do” or “not do now.”

• Commitment – to follow through on the plan.

© 2013 The Karen Martin  Group, Inc.

Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires…

© 2013 The Karen Martin Group, Inc.

© 2013 The Karen Martin Group, Inc.

Train/Practice vs. Performance

0%

10%

20%

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50%

60%

70%

80%

90%

100%

Athletes Businesses

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Train90%

Train1%

Perform 99%

Perform 10%

Jim Loehr & Tony Schwartz,  The Power of Full Engagement

© 2013 The Karen Martin Group, Inc.

Building mastery takes 10,000 hours of deliberate practice

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From The Outstanding Organization, p. 115

© 2013 The Karen Martin Group, Inc.

True Continuous Improvement

© 2013 The Karen Martin Group, Inc. 28

“Going to the gemba has been life changing for me as a leader.”

‐ Ginny Cattaneo, Sr. VP, FranklinTempleton Investor Services 

Lean (Done Right) Fuels EngagementEngagement Accelerates Transformation

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LeanPractices 

Employee Engagement

© 2013 The Karen Martin Group, Inc.

To Download the Organizational Self Assessment:

www.ksmartin.com/the‐outstanding‐organization

Click “Download a free organizational 

assessment”

Self‐AssessmentSheet 1:  Overview & Process

© 2013 The Karen Martin Group, Inc.

The Outstanding OrganizationSelf‐Assessment Sample Questions

Key Behavior Assessment Questions

Clarity C‐1: What % of the workforce can describe your organization’s purpose and the value you provide to your external customers?C‐6: What % of work areas have visual management in place?

Focus F‐2: What % of the workforce say that priorities are stable and don’t shift unnecessarily?F‐6: What % of meetings have stated goals and written agenda that are communicated in advance?

Discipline F‐3: What % of processes have 2‐5 Key Performance indicatorsthat are consistently used to measure success and drive improvement?F‐5: What % of processes have a clearly identified process owner who’s accountable for performance?

Engagement E‐4: What % of the workforce feel they have a degree of control over their work processes and environment?E‐5: What % of new hires receive all of the information, equipment and supplies they need to be successful beginning on day one?

© 2013 The Karen Martin Group, Inc.

Data Collection Recommendations

• Read each question carefully to know who the target audience is (e.g. supervisors, front lines, senior leaders, etc.)

• Define your sample size (keep it manageable, but the larger the better – aim for at least 10%)

• Have a conversation. This is NOT a tool designed for electronic communication.

• Consider collecting data by department, level of employee, geographic region, shift, contractors vs. employees, etc.

• Consider including external customers or suppliers in your analysis.

Self‐AssessmentSheet 2:  Assessment

© 2013 The Karen Martin Group, Inc.

Embedded Comments Provide Clarification

© 2013 The Karen Martin Group, Inc.

Self‐AssessmentSheet 3:  Scorecard

© 2013 The Karen Martin Group, Inc.

© 2013 The Karen Martin Group, Inc.

TOO Assessment:Baseline Measurements

0%

10%

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40%

50%

60%

70%

80%

90%

A B C D E F G H

ClarityFocusDisciplineEngagement

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© 2013 The Karen Martin Group, Inc.

Baseline MeasurementsBy Employee Type

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1st shift 2nd shift 3rd shift Management

ClarityFocusDisciplineEngagement

© The Karen Martin Group, Inc. 39

© 2013 The Karen Martin Group, Inc.© The Karen Martin Group, Inc. 40

How Do You Rate? (1 = strongest; 4  = weakest)

Clarity Focus Discipline Engagement

Dept A 1 2 4 3Dept B  1 3 4 2Dept C 1 2 3 4Dept D 4 1 2 3Dept E 1 3 4 2Dept F 1 2 3 4Dept G 2 3 4 1Dept H 2 4 3 1Dept I 1 2 3 4

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What’s Your Improvement Plan?

© 2013 The Karen Martin Group, Inc. 42

X

 #Target 

Condition(s)*Action Owner Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

1

2

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2013 2014Date

Complete

= Begin

Instilling New Organizational Behaviors: Action Plan

*Target Condition(s): Clari ty, Focus , Discipl ine, Engagement or a  combination thereof

Date created: Version:Plan review dates:

Timeline

Due Date

Plan owner:  Support team:  

% Complet

e

Status(Red, Yellow, Green)

= Timeline = Complete

© 2013 The Karen Martin Group, Inc.

Strive for Clarity About:

1. Organization purpose  ____ ____2. Customers & products ____ ____3. Business goals & priorities ____ ____4. Roles & responsibilities ____ ____5. Process & process performance ____ ____6. Problem solving & decision making ____ ____7. Information ____ ____

1 = Very poor10 = Outstanding

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Aug2013

Aug2014

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“You can make a difference no matter where you sit in the organization.

But only if you start.”

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© 2013 The Karen Martin Group, Inc.

Lean Practices Build CFDE; CFDE is Required for Successful Lean Deployment

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© 2013 The Karen Martin Group, Inc. 47

Karen Martin, President7770 Regents Road #635San Diego, CA 92122

858.677.6799

ksm@ksmartin.com

For Further Questions

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