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Copyright © 2009 Process Management International Ltd. All rights reserved.
The statements made herein do not constitute an offer and are expressed in good faith.
Leading enduring performance by using Natural Systems Principles,
World Quality DaySellafieldNovember 2009
Jane Seddon, Chairman Jan Gillett, Deputy Chairman
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Copyright © 2009 Process Management International Ltd
Purpose of our presentation
To share with you our perspective on the perennial questions;● How do we create enduring value to our
enterprise?● How do we maintain momentum for our
business improvement efforts?
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Copyright © 2009 Process Management International Ltd
Improvement Practitioners can be reassured. Some things can be relied on!
‘Quality tools’ ● ......a pedigree extending to Shewhart in 1929,
Ishikawa from the 1950s
Systematic methodologies and structures● ....examples range from the Japanese QC story
in the 1960s to DMAIC etc
Full time teams on difficult problems● .....As initially proposed by Juran in the 1960s
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Copyright © 2009 Process Management International Ltd
These ingredients can be relied on to work,
But our experience shows them to be insufficient in themselves for long term enduring success.
What is needed is transformation
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Transformation is not just a new word for ‘change’ ● It works on a deep level of people’s beliefs, philosophy,
principles and aspirations about what is possible.● Therefore… transformation is personal as well as
organisational.
The outcome of transformation is an effective, evolving and enduring organisation; creating prosperity for the long term as well as the results for today.
‘Transformation.’ What’s in a name?
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Transformation is not a ‘project’; it has continual learning as its life blood
Copyright © 2009 Process Management International Ltd
Basic elements in anything we try to do, including transformation
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Copyright © 2009 Process Management International Ltd
Some of our clients
Since 1984, Hundreds of companies, Thousands of people In every continent Commercial, government, not for profit Every sector; Service, Manufacturing, Transport
Our approach is based upon Dr Deming’s System of Profound Knowledge, especially on Plan Do Study Act
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Copyright © 2009 Process Management International Ltd
A new and unique perspective on the challenge
Natural Systems Principles A systemic leadership approach for
sustainable improvement
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Some natural systems
Copyright © 2009 Process Management International Ltd
Natural system principles
1. Interdependence: ● Everything in nature is connected to
everything else.
2. Self Organisation: ● Natural entities have simple rules for
development inherent inside themselves
3. Differentiation: ● Nature renews itself without losing its
core identity and still generates variety.
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Some man-made systems
Copyright © 2009 Process Management International Ltd
Effective organisations show natural system characteristics;
1. Interdependence● Clear purpose and process for the long-term● Conscious of their wider system
2. Self-organisation● Predictable product and service● Listen to employees● Generate improvements from within
3. Differentiation● Address variation systematically● Respect diversity● Variety and flexibility to suit the customer
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Copyright © 2009 Process Management International Ltd
Natural Systems; a new insight
We use these principles to understand the “grain” of the organisation, and then help clients to lead its transformation.
Our book, “Working with the Grain” explores these and other themes
Available through www.pmi.co.uk
and at Amazon
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Copyright © 2009 Process Management International Ltd
Working with the Natural System Principles;
1. Interdependencies Create consciousness of
the whole system by: ● Helping clients
understand their wider system including suppliers, and customers
● Clarifying and communicating the purpose of the organisation and of the change programme
● Learning to approach all work in terms of process.
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Aerospace supply chain: ● The customer and
supplier agreed they were in the same system, even though separated by the Atlantic
● The objective was to create a stable operation to the benefit of both
● We started by witnessing the actual work, including packaging and logistics
Copyright © 2009 Process Management International Ltd
Working with the Natural System Principles;
2. Self organisation
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Build increased energy and competence:● Learning how to make
step change improvements in the flow of products and services
● Uncovering and enabling the natural desire for all employees to help improve the work
● Developing understanding of how to monitor and improve everyday work
Service centre in Manila● Global improvement projects,
integrating with visual displays for local supervisors—
● The people in the process wanted to improve it – just needed the method
Copyright © 2009 Process Management International Ltd
Working with the Natural System Principles;
3. Differentiation Manage continual
change, differentiation and variety, ● Appreciating,
respecting and capitalising on the diversity of people, the environment, everything!
● Recognising and addressing undesirable variation in a systematic way
● Learning to economically create deliberate variety and flexibility in the service of the customer.
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Service centre in Mumbai● Self evident need to get
alongside whoever one is working with
● Getting processes “on target with minimum variation”
● Actively generating variety is a major necessary challenge in a mindset of standardisation
Copyright © 2009 Process Management International Ltd
Typical combinations of tangible and intangible benefits we have seen
Client A, Global post merger simplification● $1.3 Billion in savings estimated, 4,500 staff positions saved in
2008● “this approach plays to peoples’ intrinsic motivation to improve
their business”● “Improved cross function and cross border collaboration and
cooperation” Client B, Global supply chain,
● Improving schedule adherence from 28% to over 95%, reducing lead time and simplifying packaging and handling
● “your approach enabled trust, transparency and problem solving …. We have a desire to work together with you, more than anyone else”
The intangible benefits for our clients persist long after the numbers have faded.
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Ambitions go far beyond project-based improvement into strategic, whole system and everyday operations.
It is founded on learning by testing—through PDSA.
The approach encompasses everyone’s thinking, behaviour, culture and values
Its attention to context, enables the organisation to remain of enduring value to the wider system and society
Success requires a different orientation of leadership
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Transformation is not a ‘project’; continual learning is its life blood
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Works with the Natural Systems Principles; Has a vision for transformation not just improvement Optimises the whole system to provide value for its
customers, stakeholders and the wider environment; Appreciates that people and their intrinsic motivation are
key to success; Sponsors and models strategic step change and
improvement; Is a good ‘project’ sponsor and also...ensures that
everyday processes work effectively and efficiently.
A Systemic Leader
Copyright © 2009 Process Management International Ltd
Using PDSA to learn about the organisation
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Launching the journey
Understand learning and
benefits 6. Lead an enduring
transformation
Develop leadership principles
3. Understand the current situation
2. Settle on initial
priorities
1. Understand why we need to do something
4. Build an improvement
system
5. Deliver improvementsAddress
problem(s)
Study
Do
Act
Plan and study?
Study
Act
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Using the principles of Natural Systems increases the chance of success in a Systemic improvement (transformation) efforts
These principles encompass systemic leadership
Continual application of PDSA is the practical vehicle for making enduring progress
Summary
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This presentation has been designed and developed by Process Management International Ltd. The statements made herein do not constitute an offer and are expressed in good faith.
Copyright © 2009 Process Management International Ltd. All rights reserved. No part of this presentation may be copied or reproduced in any form or by any means without written permission from:
Process Management International Ltd ● Villiers Court ● Meriden Business Park ● Birmingham Road ● Meriden CV5 9RN United KingdomWeb site: www.pmi.co.uk