Daily Management Systems

© 2015 The Karen Martin Group, Inc. 1

2

www.ksmartin.com

3

www.ksmartin.com/books

January 2018!

4

Webinar Participants by IndustryAccountingAdvertising/Marketing/PRAerospace & DefenseBanking & SecuritiesCall Center OutsourcingConsultingEducationEnergy, Chemical, UtilitiesFinancial Services - OtherGovernment - FederalGovernment - State & LocalHigh Tech - HardwareHigh Tech - ISPHigh Tech - OtherHospital, Clinic, Doctor OfficeHospitality, Travel, TourismInsuranceManufacturingMedical, Pharma, BiotechOtherReal EstateRetailSoftware - FinanceSoftware - HealthcareSoftware - OtherTelecommunicationsTransportation & Distribution

Other

Government –State & Local

Healthcare

Consulting

Manufacturing

Pharma & Biotech Energy,

Chemical

Financial Services

Gov’t -Federal


Frequent Frontline Reactions to “Huddles”

STRATEGY & STRATEGY DEPLOYMENTWhere do we want to play and how are we going to get there?Focus and leadership alignment is key; reduce task switching.

PROCESS & WORK ENVIRONMENT DESIGNStrive for customer-defined value and waste elimination. Strong emphasis on standard work and visual management.

DAILY MANAGEMENTManaging to standard work and work standards.Assure that every employee can be successful.

PROBLEM SOLVING & CONTINUOUS IMPROVEMENTDisciplined approach that results in better and longer-lasting results.The people who do the work are the experts.

LEAN MANAGEMENT SYSTEMOVERVIEW

THINKING SYSTEM PROCESS & WORK

ENVIRONMENT DESIGN

STRATEGY & STRATEGY

DEPLOYMENT

PROBLEM SOLVING & CONTINUOUS IMPROVEMENT

DAILY MANAGEMENT


8

Management: Defined

To control or adjust a process to a plan or expectation.

To change the naturalcourse of a process to achieve a desired outcome.

Purpose of Daily Management Systems (DMS)

• Check regularly• Solve problems regularly• Support people in the process• Engage everyone in the process• Create a visual means to manage work

(and the work environment)


Manage processes, not people


Achieving Consistent Performance: Standard Work

11

Standard work is the wedge that keeps us

from back-sliding

Improvement

Universal Law of Entropy

All systems need continuous maintenance to keep them operating at their optimal levels

Standard Work for Everything

12

Daily Management System (DMS) Components

Area Readiness

Performance to KPIs

Problem SolvingQuick Hits

Bigger Problems

Communication


Area Readiness

Performance to KPIs


Bigger Problems

Communication

Strategy Deployment (Hoshin Kanri)

• Builds consensus around TRUE NORTH

• Creates organization-wide focus on solving what matters most

16

Sample Strategy Deployment Annual Plan

12

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Nurs Fac CEO Fin MDs WH Corp Proc Anc

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

2 Bob Michael 1 3 1 1 3 3 1 1 1

3 Rose Tim 3

4 Rose Josh 2 3 3 2

5 Howard Michael 1 3 2 3 3

6 Howard Mike 2 2 3

7 Neal l Joanne 3 1 1 2 3 3

8 Neal l James 1 2 3 3 3

9 Jim Howard 2 2

10 Jim Mark 2 3 3 3

11 Susan Susan 3 1 3 3 2

12 Susan Deidre 3 2 2 2

X = Planned

2018 Strategy Deployment Priorities

FY 2018 Goals43 Created:

Revised: Level of Effort/Involvement RequiredProblem to be Solved;

Initiative/PriorityMeasurable Objectives Executive

Owner

Board review dates:

Tactical Owner

● = Actual

Logo

Corporate KPIs


3

Achieving Organizational Alignment: KPIs are linked


Division Division Division

Organization

Dept. Dept Dept Dept Dept DeptDept Dept

Active Problem Solving to Close KPI Gaps


Area Readiness

Performance to KPIs


Bigger Problems

Communication


Example DMS Board Structure: Phase 1


KPIsArea Readiness

Quick Hits

R/G Status Owner Action

Method

Equipment

Supplies

Staff

Information

Date Problem Owner Action Resolve by R/G

Other

OtherBigger ProblemsDate Problem Owner Resolve by Status R/G

(KPI gap)

23

24

Standard work is the wedge that keeps us

from back-sliding

Improvement

Universal Law of Entropy

All systems need continuous maintenance to keep them operating at their optimal levels

DMS Prevents Backsliding

DMS is the set of practices that hold the standard in place

The DMS Mindset

25

From To• Vague goals• Reacting to chaos• Problems are hidden• Telling• Gut feel• Assuming the answers• Blaming people

• Measurable objectives• Managing to standards• Problems are visible• Coaching• Fact-based• Humility and curiosity• Checking process


27

From KPI-Based to Information Center: Level 2 Boards

Celebrations & Announcements

IdeasIn queue Doing Done

Production TargetsTime Goal Actual R/G Action

Project TrackingProject Name 1 2 3 4 R/G Action

DMS “Rules” & Recommendations: Huddle Management

• DAILY (except for very unusual circumstances)• 10-15 mins max; start & end on time• No problem solving in huddle• Rotate facilitation• Rotate attendance for areas that must have coverage

(and follow-up with those who didn’t attend; pics help!)

• Senior leaders should attend regularly• Invite other departments to attend


DMS “Rules” & Recommendations: Rolling Out

• Must have huddle standard work (with standard agenda)• Boards should be somewhat standardized but allow for some

flexibility• Boards must be visible (don’t hide them!)• Create pull, not push; cannot be a leadership mandate• Slow and steady: Roll out 1-2 areas at first; then 2-3 at a time• Create three levels of boards: 1 (work area/dept); 2

(division/biz unit); 3 “corporate”• Works far better with strategy deployment in place


Tricky Situations


DMS Obstacles Countermeasures

The “morning slam” • Two gatherings• Area readiness in morning; rest of huddle in

afternoon• Huddle midday; area readiness in afternoon

for following day

Shift work MUST huddle every shift!

Virtual teams iPad camera work; sending pics in advance; cardboard cutouts!

Other?

Other?

Questions or comments?

31

This image cannot currently be displayed.

[email protected]

32

www.ksmartin.com/subscribeThis image cannot currently be displayed. This image cannot currently be displayed.

This image cannot currently be displayed. This image cannot currently be displayed.This image cannot currently be displayed. This image cannot currently be displayed.This image cannot currently be displayed.

This image cannot currently be displayed.This image cannot currently be displayed.This image cannot currently be displayed.

This image cannot currently be displayed.

January 2018!

http://www.bitly.com/TKEPbk

http://www.bitly.com/TKEPbk

http://www.bitly.com/MBPMbk

http://www.bitly.com/MBPMbk

http://www.bitly.com/TOObk

http://www.bitly.com/TOObk

Business

Daily Management Systems