We've Had it All Wrong: Manage Processes, Not people

We’ve Had It All Wrong: Manage Processes, Not People

WebinarNovember 1, 2012

Founder: Karen Martin & Associates, LLC (1993).

Consultant / Coach: Lead Lean transformations in office, service and knowledge environments.

Teacher: University of California, San Diego’s Lean Enterprise program.

Author:Karen Martin, 

Principal

July 2012 Just released!

Last Webinar of 2012!Metrics-Based Process Mapping:

What, When & How

Thursday, November 2911:00 am – 12:15 pm Pacific Time

To register: www.ksmartin.com/webinars3

© 2012 Karen Martin & Associates, LLC

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We have THREE BIG

PROBLEMS.

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Problem

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Most businesses aren’t performing as well as

they could and need to.

Common Organizational Woes(cause and effect can be debated)

• Unclear vision; inability to focus• Slim margins• Unrealistic pricing• Unhappy customers• Flat or eroding market share• Slow innovation• Poor quality• Unfulfilled workforce

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Problem

2010 Accenture StudySuccess with Improvement Approaches

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%

9© 2012 Karen Martin & Associates, LLC

Up to 98,000 deathsannually due to medicalerrors.

Goal: Reduce by 50% in 5 years.

To Err is HumanInstitute of Medicine, 1999

10© 2012 Karen Martin & Associates, LLC

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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

© 2012 Karen Martin & Associates, LLC

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Problem

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Widespread Disengagement

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You had them at “You’re Hired.”

Workers have been robbed of…

• Trust• Respect• Knowledge, skills, aptitude, creativity, experience (KSACE)

• The ability to maintain healthy interpersonal relationships

The Result…• Whining• Finger‐pointing• Interpersonal tension• Inter‐divisional and/or inter‐departmental tension

• Turnover• Blatant infighting• Sabotage• Physical and mental illness• Social consequences

– physical, sexual, substance abuse; poor parenting; divorce

Poorly designed processes are typically behind interpersonal & interdepartmental

tension―not personalities.

Forming New Habits:

Organizational response to

problems moves from blaming people

to improving processes.

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You create (or fail to create) high-performing employees in

the way your organization operates and treats its people.

— The Outstanding Organization, p. 154

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The Countermeasure…

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Toyota’s Overarching Tenets

• Continuous Improvement.

• Respect for people.– Safety and quality of life.– Authorized to solve

problems.– Well-designed systems

and processes.

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How do we get the people to do the process the way it

should be done?

For example, how can you invoke what seems to be a simple process of labeling samples at the bedside?

Common Management Practices• Processes not standardized nor documented.• Processes not designed by the experts–the people doing the work.

• Processes not measured against operational targets.• Process workers don’t receive adequate training.• Reactive improvement and problem‐solving.• Blame – invoking the 5 Who’s instead of the 5 Why’s• Telling people what to do.• Silo’d behavior; lack of holistic thinking.• Misaligned incentives.• Poor problem solving capabilities.

– Process improvements don’t address the true root cause of the problem that drove the need for improvement.

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Process Owner ≈ Process Doctor

Process Owner

• Manager or below• Responsible for overall process performance

– Tracks performance against targets– Leads corrective action when negative trends

appear– Leads continuous improvement to progressively

raise the bar• Granted authority to cross org chart

“boundaries”– And widely recognized to possess this authority

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Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT

Approve PO 15 240 100% Fax PO to Account Manager 5 20 100%

Notify customer when they can expect delivery

15 300 95%

Review and approve PO; send

to Order Entry 5 240 100%

Enter order into SAP 10 240

Step # ? 986

Finance / Credit

Function / Department

LT UnitsHours Worked per Day

37,500Paul Dampier

Occurrences per Year

Current State Metrics-Based Process Map

26-Nov-078

Sam Parks

Date Mapped Michael Prichard

Order FulfillmentProcess NameSpecific Conditions Domestic orders through sales force

PT Units Process Details

Mary TownsendSean MichaelsRyan AustinDianne O'Shea

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Mapping Team

Order Entry

Account Manager

Sales Rep

Customer

Seconds

Minutes

Hours

Days

Seconds

Minutes

Hours

Days

Processes Owners Lead Improvement & Problem Solving ACROSS ALL FUNCTIONS

CEO

COO

VP

Dir Dir

Dir

VP

Dir Dir

CIO

VP VP

Dir

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Process Owners Have the Responsibility &  Authority to Lead Improvement Across 

Artificial Functional Boundaries

The Next Frontier…

30The Middle Manager

How to Turn the Tide1. Face the truth.

– Processes remain poorly managed.– People are being beaten up for no good reason.

2. Document ALL major processes.– Improve upfront if time allows

3. Define 3-5 key performance indicators for each.

4. Identify a process owner.5. Socialize the role and responsibilities of the

process owner.6. Begin managing the process.7. NEVER STOP.

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Keys to Outstanding Process Management

• Relevant key performance indicators• Metrics-based value stream and process-level

maps.• Cross-functional improvement.• Exceptional socialization (address WHY) and

training on improved process.• Continuous monitoring/measurement.• Continuous improvement.• NEVER STOP. Process don’t manage themselves.

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Watch as poor performers begin to soar and poor

performance turns exceptional.

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Karen Martin, Principal7770 Regents Road #635

San Diego, CA 92122858.677.6799

ksm@ksmartin.comTwitter: @karenmartinopex

For Further Questions

Monthly newsletter: www.ksmartin.com/subscribewww.ksmartin.com/the‐outstanding‐organization

www.ksmartin.com/files/webinarmaterials/11-01-2012_handout.pdf

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