Making It Stick: A Four-Step Process for Creating Sustainable Change

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Making It Stick: A Four-Step Process for Creating

Sustainable Change

ASQ Lean & Six Sigma Conference

March 1, 2011

© 2011 Karen Martin & Associates

You will learn…

Practical how-to’s for implementing the four essential

elements for creating lasting change.

The role key performance indicators play in keeping

the organization focused on results.

The characteristics, roles and responsibilities of effective

process owners.

How to help leadership understand that, to achieve an

adequate return on investment and create sustainable

change, improvement must follow a disciplined

process.

How your improvement process creates culture, not

the other way around.

2

Making ^ improvement is 80%

psychology and 20% tools.

3 80%

20%


Sustaining Improvement

Four Essential Elements

1. Strategy

2. People

3. Improvement Process

Design & Implementation

Post-Implementation

4

• Monitor process performance

• Conduct regular process audits

• Adjust process as needed

• Continuously improve

• Discover

• Design, test, implement

• Create sustainability plan

• Train staff

• Create charter

• Scope effort

• Form team

Plan Do

Check Act

5

Improvement via PDCA Cycle





• Discover



• Train staff

• Create charter

• Scope effort

• Form team

Plan Do

Check Act

6



“Plan”

Sustainability Checklist

□ The improvement area of focus is closely aligned with the

organization’s business goals.

□ A detailed charter has been developed, agreed to and widely

distributed (including clear drivers why the improvement is

needed, what the target state looks like, project scope, etc.)

□ The project manager and/or improvement facilitator are highly

skilled in improvement psychology, problem-solving and a

wide range of improvement tools.

□ An engaged executive sponsor is supporting the

improvement.

□ A highly cross-functional project team has been formed,

heavily weighted with the people who use the process.

7




1. Strategy

2. People



Post-Implementation

8

You need an

improvement

strategy that’s

aligned with

overarching

business goals

9


Risks If No Clear Improvement

Strategy Exists

You’ll spend limited resources (time, people,

money) on lower priority issues.

More difficult to establish a sense of urgency.

Sub-optimization.

Introducing more chaos into an already

chaotic system.

More difficult to measure success.

More difficult for improvement professionals

to prove their worth.

10

One Option - Hoshin Kanri X-Matrix

11


“Plan”






needed, what the target state looks like, project scope, etc.)





improvement.



12


Purpose of Improvement Charters

Plan

Communicate

Gain consensus and alignment

Create a sense of urgency

13

14

Improvement Charter Project or Event Scope Leadership Meeting Schedule

Value Stream Executive Sponsor Dates

Event Name

Specific Conditions Value Stream

Champion

Start & End

Times

Process Trigger Facilitator or Project

Manager Location

First Step Team Lead Interim Briefings

Last Step

Event Boundaries & Limitations Administrative

Support

Workforce

Training

Final Briefing

Improvement Drivers / Current State Issues Core Team Members

1 Function Name

2 1

3 2

4 3

5 4

Improvement Goals and Objectives 5

1 6

2 7

3 8

4 9

5 10

Planned Deliverables Additional Support / Subject Matter Experts

1 Function Name

2 1

3 2

4 3

5 4

Potential Obstacles Approvals

1 Executive Sponsor Value Stream Champion Facilitator / Project Manager

2

3 Signature: Signature: Signature:

4 Date: Date: Date:

© 2010, 2007 Karen Martin and Mike Osterling

Workforce

Training

1

2 1

3 2

4 3

5 4

5

1 6

2 7

3 8

4 9

5 10

1

2 1

3 2

4 3

5 4

1

2

3

4

Event Name

Specific Conditions Value Stream

Champion

Improvement Project CharterProject or Event Scope Leadership Meeting Schedule

Value StreamExecutive Sponsor Dates

First StepTeam Lead

Interim

BriefingsLast Step

Start & End

Times

Process TriggerFacilitator or

Project ManagerLocation

Improvement Drivers / Current State Issues Core Team Members

Function Name

Event Boundaries

& Limitations

Administrative

SupportFinal Briefing

Improvement Goals and Objectives

Planned Deliverables Additional Support / Subject Matter Experts

Function Name

Date: Date: Date:

© 2010, 2007 Karen Martin and Mike Osterling

Signature: Signature: Signature:

Potential Obstacles Approvals

Executive Sponsor Value Stream Champion Facilitator / Project Manager

License AgreementSpell-check Sheet

Use data to establish a

sense of urgency

15

Manager

Implementation

Complete

1 Involvement

2 1

3 2

4 3

5 4

5

1 6

2 7

3 8

4 9

5 10

1 Proj % Improve.

2 1

3 2

4 3

5 4

6 5

Team Lead Project Coach

Initials:

Date:

Initials:

Date:

Desired StateBaseline / Current State

Measurable Objectives

Results

Validated

Function / Role

Potential Barriers

to Success

Name

Team Meetings

Dates & Times

Cross-Functional Involvement

Process / Area

Specific Conditions

(includes/excludes)

Member

Team Lead

First Step

Project Team

Improvement Project CharterProject Definition Project Sponsor & Team Key Milestones / Due Dates

Improvement Goals

Improvement - Benefits to Customers / Company / Staff

Last Step

Project Drivers / Current State Issues

Value StreamCurrent State

Analysis

Demand / Volume

Trigger

Future State

DesignAdditional

Members

Executive Sponsor

Root Cause

Analysis

Test / Pilot

Complete

Initials:

Date:

Executive Sponsor

Approvals Results Validation - Planned Method & Accountability




1. Strategy

2. People



Post-Implementation

16


“Plan”






needed, what the target state looks like, project scope, etc.).





improvement.



17


The Role of Executive Sponsors

If it’s not important to leadership, why should

frontlines care?

You may have to teach / coach your leaders re:

their role in the improvement process.

They need to be present for kick-offs and briefings.

Ask the right questions to assure the improvement’s

“on track.”

Don’t wait for the exec sponsor to ask for an

update.

Schedule briefings in advance.

18


“Plan”






needed, what the target state looks like, project scope, etc.).





improvement.



19


Common Team Weaknesses

Teams thrown together without enough strategic

thought.

Teams too large – 10 max; 12 on rare occasions

Too many supervisory staff; not enough frontline

representation.

The improvement must be designed, tested and implemented

jointly by the people who actually work the process!

Missing internal customers and suppliers.

The “users” must have a very strong voice.

Missing functions.

Team is “advisory” rather than actively engaged in

making the improvement.

Facilitator’s role isn’t to “do” – it’s to LEAD, teach, manage.

20

It’s uplifting to

kaizen.

21

It’s traumatizing

to be kaizen’d.

Improvement sustainability is highly dependent on the

levels of engagement of those most affected by the change.




1. Strategy

2. People



Post-Implementation

22





• Discover



• Train staff

• Create charter

• Scope effort

• Form team

Plan Do

Check Act

23



“Do”


□ The current state is deeply understood, including root causes.

□ Input and consensus has been obtained from the larger user

group throughout the improvement process.

□ The countermeasures have been tested thoroughly.

□ The countermeasures are “user friendly.”

□ 2-5 relevant key performance indicators are used to

consistently monitor process performance.

□ The new process has been documented.

□ Process suppliers, “do-ers” and customers have been

properly trained.

□ A process owner has been designated.

24


Key Performance Indicator Categories

Quality

Cost

Delivery Safety

Morale

25


Establishing Key Performance Indicators

What problem(s) are we trying to prevent from

recurring?

What’s the best measure of success?

How frequently should the process be measured?

Who will analyze the data?

Aim for as many “leading indicators” (vs. lagging)

as possible.

Heavily operational in nature, but can also include

financial, customer-focused, and staff-focused

measures.

Post & discuss the results! 26

Process Management & Improvement

KPI Target

Result

Actual

Result

Root

Cause

Corrective

Action

Taken

New

Result

KPI-1

KPI-2

KPI-3

KPI-4

KPI-5

27

KPI Target

Result

Actual

Result

Root

Cause

Corrective

Action

Taken

New

Result

Turnaround 4.0 hrs 6.2 hrs

Errors on

incoming

orders

Modified

order form to

reduce errors

3.8 hrs

Output errors 2% 1% N/A N/A N/A

Sample Visual KPI – Quality Scores

28

3.3 3.3

3.7 3.8

3.9 4.0

2.7

3.7 3.6 3.6

1

2

3

4

5

FY10 Q3A3 began

FY10-Q4 FY11-Q1 FY11-Q2 FY11-Q3 FY11-Q4

TA

NQ

R R

ati

ng

s

FT Quarters

TA NQR - KPIs

NQR Target

TA Actual

NQR Benchmark

KPIs - Visual Display

29

KPIs – Visual Display (close-up)

30

Flat screens used to display

relevant KPIs

31


“Do”


□ The current state is deeply understood, including root causes.

□ Input and consensus has been obtained from the larger user

group throughout the improvement process.

□ The solutions have been tested thoroughly.

□ The solutions are “user friendly.”

□ 2-5 relevant key performance indicators are used to

consistently monitor process performance; they are posted.

□ The new process has been documented.

□ Process suppliers, “do-ers” and customers have been

properly trained.

□ A process owner has been designated.

32


Process Ownership

Why?

Processes do not typically “self-manage.”

Focus and discipline are needed.

When everyone’s responsible, no one’s responsible.

What?

Responsible for process performance at a tactical level.

Oversees measurement, reporting & continuous

improvement.

Has authority for process monitoring and improvement

across all functional areas.

Obligated to include all appropriate parties in ongoing problem-

solving and continuous improvement.

33


Process Ownership (continued)

Who?

A sole person (with designated back-up for

vacation coverage, etc.) at a manager level or

below.

Typically resides in the functional area with the greatest

“skin in the game” across the process.

Should NOT be a dedicated improvement professional.

Director or above assures process owner is

managing process appropriately, provides support

(mentoring and resources), and aids in removing

obstacles to success.

34

Process Owner ≈ Process Doctor

35

• Monitor condition

• Modify treatment as needed

• Consider treatment options

• Provide treatment

• Diagnose condition

Plan Do

Check Act




1. Strategy

2. People



Post-Implementation

36





• Discover



• Train staff

• Create charter

• Scope effort

• Form team

Plan Do

Check Act

37



“Check”


The process owner:

□ Reviews, communicates, and posts the KPIs as scheduled.

□ Leads work group “status” meetings (brief!) where the KPIs are

posted to discuss trends, create strategies for responding to

changing conditions, brainstorm solutions to new problems, etc.

□ Schedules and leads root cause analysis activities immediately

when the KPIs are not met.

□ Leads or arranges for the process to be audited at regularly

scheduled periods (annually, at a minimum) to test for “robustness”

and identify opportunities for further improvement.

□ Talks with process workers to assess the need for additional

training, revised standard work, etc.

□ Assures the process is being followed and, if not, determines why.

38





• Discover



• Train staff

• Create charter

• Scope effort

• Form team

Plan Do

Check Act

39



“Act”


□ The process owner organizes and/or leads continuous

improvement activities via engaging all relevant parties

(from simple process “tweaks” to significant overhauls).

40

And the PDCA cycle begins again…


So how do you get improvement

to “stick”?

Create a clear improvement strategy that

creates alignment between improvement

effort and the organization’s business goals.

Involve the right people.

Use a robust process to create the

improvement.

Use a robust process to sustain the

improvement.

It takes consistent and focused attention or it

won’t happen. 41


What Doesn’t Typically Sustain?

When the process is merely “changed”

(process tampering) vs. truly improved.

When the new process makes the work

more difficult.

…after excellent training and adequate time

for learning curves.

When the workforce isn’t fully engaged in

the process.

When the process isn’t monitored

consistently and continuously improved.

42


In Conclusion

The process you use to make

improvement will shift culture faster than

any amount of workforce training,

leadership hype, or facilitator development

you can possibly engage in.

43

Who identifies relevant documentation? Who updates it? By when?

Who communicates? How? To whom? Where posted?

Who communicates? Via what medium?

How is process performance going to be communicated to workers? Are

additional visuals needed? Who owns this activity?

Which value stream map(s) need to updated, who will do it and when?

Who maintains training records?

Who communicates? How? To whom?

Who is accountable? Where posted?Post the Event Report, 30-Day List, Sustainability Plan.

Update SOPs and other ISO or regulatory documents

impacted by changes.

Communicate and post 30-day and 60-day audit

results.

Communicate audit results to stakeholders and

leadership team.

Communication / Training

Requirement

Communicate to affected parties who were not advised

during event.

Provide training for those who missed initial training.

Integrate new process into ongoing department training.

Update Value Stream Map.

Update training records to reflect who has been trained.

Plan

Who will deliver it and when?

Who leads identification of training that need to be updated (ongoing and for

new employees), when will training be in place?

Event Dates

"Go Live" Date

Team Lead

30-Day Audit Date

"Go Live" Location

60-Day Audit Date

Sustainability PlanExecutive Sponsor

Value Stream Champion

Facilitator

Event Name

Communicate process performance measurement

plan.

Sample

Sustainability

Plan

The Kaizen Event Planner,

Martin & Osterling

Name Name

Signature Signature

Date Date

Will there be rewards / recognition for sustaining improvements? What will

corrective actions be if workers are not following new process? Who will

enforce these rewards/consequences?

Who monitors process performance on an ongoing basis? Who

communicates the results? When, to whom, in what format?

Who will lead audit & when? How will results be communicated? To whom?

How will the process be adjusted, if needed? What's the plan for continuous

improvement?

Who will lead audit & when? How will results be communicated? To whom?

How will the process be adjusted, if needed? What's the plan for continuous

improvement?

Who has ultimate responsibility for how process is performing?

Which Kaizen team member(s) will observe the process? How will they

communicate results? Who is responsible for adjusting the process, if

needed?

Who is responsible for finalizing process performance metrics and by when?

Which team member(s) will observe the process? When? How will they

communicate results? Who is responsible for adjusting the process, if

needed?

Process Owner

Monitoring / Measurement

Requirement

Put in place key metrics to measure process

performance; post performance.

Plan

Value Stream Champion

Define corrective actions required if new process not

being followed (rewards and consequences).

Monitor process performance frequently; post results

put continuous improvement plans in place.

Identify process owner.

Observe process one day after event is over. Talk with

workers, assure they understand how process should

be performed; see if there are problems.

Observe process one week after event is over. Talk

with workers, assure they understand how process

should be performed; see if there are problems.

Conduct 30-day audit.

Conduct 60-day audit.

Sample

Sustainability

Plan (p. 2)

The Kaizen Event Planner,

Martin & Osterling


You will learn…

Practical how-to’s for implementing the four essential

elements for creating lasting change.

The role key performance indicators play in keeping the

organization focused on results.

The characteristics, roles and responsibilities of effective

process owners.

How to help leadership understand that, to achieve an

adequate return on investment and create sustainable

change, improvement must follow a disciplined process.

How your improvement process creates culture, not the

other way around.

46

47

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San Diego, CA 92122

858.677.6799

[email protected]

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Making It Stick: A Four-Step Process for Creating Sustainable Change