HVN/Shingo Quick Assessment for Operational Excellence ORGANIZATIONAL TRANSFORMATION WITH PRINCIPLES, SYSTEMS, & TOOLS
The Shingo Prize for Operational Excellence Jon M. Huntsman School of Business
Utah State University
Logan, Utah USA
www.shingoprize.org Version 1.4/2011 June 2011
Copyright © 2011 The Shingo Prize for Operational Excellence. All rights reserved.
The content of this publication may not be reproduced, copied, edited or distributed without the express written permission of The Shingo Prize for Operational Excellence, administered by the Jon M. Huntsman School of Business at Utah State University.
Page | 3
Cultural Enabler Focus Systems | Questions OBJECTIVE
1 Managers and supervisors are seen as mentors & coaches
Leadership Training Leadership Std. Work Coaching
Who do you go to when you have a problem? How do your supervisors/managers help you solve problems? How accessible are your leaders to work on problems? Tell me about how you have solved a problem with your supervisor/manager? Do you see the same problems continue to reoccur in your area?
Enabling guided decision-making at the lowest level.
2 Employees are empowered and recognized for signaling problems or defects that occur in their area.
Visual Management Suggestions/Idea Award/Recognition
What do you do when you see a problem in your area? What support do you receive when you are fixing a problem? When do you work on fixing the problems? Have you ever been awarded for detecting key problems in your area?
Problems are owned and embraced by the workforce. Problems are seen as opportunities.
3 On-the-job coaching in lean practices is a daily part of the culture
OJT New Hire Orientation
What kind of ongoing training do you receive for your position regarding continuous improvement and problem solving? Tell me about the philosophy of continuous improvement when you were hired on, now after working here for some time how does that correlate with reality?
Coaching creates front line leadership and a culture of empowerment
4 Recognition system focuses on performance that encourages ideal behavior.
Award/Recognition Strategy Deployment
When was the last time you were recognized or awarded something? Who awarded that to you? What was it for? Can you show me your award? What would be a great award that would motivate you?
Recognition is frequent, timely and specific; awarded for achieving great performance with ideal behavior
5 Sense of trust among leaders, managers, and associates.
Leadership Training Communication/Sharing Coaching
What are some of the barriers that you have seen with communicating to leadership? Tell me about leadership’s involvement in teams in your area. How easy is it to communicate with your supervisor, manager, leaders? Describe the support you receive from you leaders? How open, transparent is the communication?
Eliminate a "we-they" culture
6
Managers and supervisors are seen on a regular basis in the work area engaging with the workforce to better understand their reality.
Go & See/ Gemba Leadership Std. Work Coaching
How often do you see managers and leaders in your area? Is it on a routine basis or more sporadic? What do they focus on? Do you feel they understand your day-to-day issues, concerns?
Promotes go and see mentality and engaged, coaching leadership team
7
Improvement ideas are processed quickly (within 2 weeks) with feedback to the originator regardless if the idea was implemented
Suggestion/Idea Communication Coaching
If you could change and improve ONE thing in your area that would make life easier, what would you change? Tell me about how you would make that change, what is the process? Have you ever suggested an improvement in your area? When was it, and tell me about what happened?
Ideas are valued at all levels with open & transparent communication to encourage and coach great improvement
Page | 4
Cultural Enabler Focus Observations(Behavior)
1 Managers and supervisors are seen as mentors & coaches
2 Employees are empowered and recognized for signaling problems or defects that occur in their area.
3 On-the-job coaching in lean practices is a daily part of the culture
4 Recognition system focuses on performance that encourages ideal behavior.
5 Sense of trust among leaders, managers, and associates.
6
Managers and supervisors are seen on a regular basis in the work area engaging with the workforce to better understand their reality.
7
Improvement ideas are processed quickly (within 2 weeks) with feedback to the originator regardless if the idea was implemented
Page | 5
Cultural Enabler Focus 0 OBJECTIVE
1 Managers and supervisors are seen as mentors & coaches
No e
vid
ence
Very little evidence that problems are made visible. Manager as
problem-solver.
Manager leading problem-solving, engaging front-line staff
Significant problem-solving at lowest level of organization.
Managers consistently acting as coach, asking Socratic questions.
Enabling guided decision-making at the lowest level.
2 Employees are empowered and recognized for signaling problems or defects that occur in their area.
No e
vid
ence
Few employees involved in signaling defects and problems,
no recognition
Some employees are empowered and some recognition, or only in
parts of the department
Significant # of problems and defects are identified and solved by employees, with visible and
meaningful recognition.
Problems are owned and embraced by the workforce. Problems are seen as opportunities.
3 On-the-job coaching in lean practices is a daily part of the culture
No e
vid
ence
No evidence of coaching. Posters, etc. but manager continuing to solve issues
Coaching evident but inconsistent. Manager continues to solve most problems without
employee input
Coaching is consistent and evident throughout the
organization. Employees can site examples/ benefits
consistently.
Coaching creates front line leadership and a culture of empowerment
4 Recognition system focuses on performance that encourages ideal behavior.
No e
vid
ence
Ideal behavior, standard work, is found in spots but no recognition
Ideal Behavior evident and recognition is seen though inconsistent in content and
application.
Recognition is consistent, evident and visible to everyone.
Examples of ideal behavior recognized, accompanies
celebrations.
Recognition is frequent, timely and specific; awarded for achieving great performance with ideal behavior
5 Sense of trust among leaders, managers, and associates.
No e
vid
ence
Little evidence of issues being reported. Employees hiding
issues.
Employees reporting system issues but continue to hide
"mistakes"
Employees express ability to report issues with confidence in a
positive response consistently.
Eliminate a "we-they" culture
6
Managers and supervisors are seen on a regular basis in the work area engaging with the workforce to better understand their reality.
No e
vid
ence
Few occurrences of leadership at place of value add (gemba)
Pockets of consistent leadership engagement at gemba, but not
everywhere
Consistent and predictable leadership engagement at
gemba
Promotes go and see mentality and engaged, coaching leadership team
7
Improvement ideas are processed quickly (within 2 weeks) with feedback to the originator regardless if the idea was implemented
No e
vid
ence
Ideas are valued at all levels with open & transparent communication to encourage and coach great improvement
Page | 6
Cultural Enabler Focus Strengths | Opportunities (to move to the next level)
1 Managers and supervisors are seen as mentors & coaches
2 Employees are empowered and recognized for signaling problems or defects that occur in their area.
3 On-the-job coaching in lean practices is a daily part of the culture
4 Recognition system focuses on performance that encourages ideal behavior.
5 Sense of trust among leaders, managers, and associates.
6
Managers and supervisors are seen on a regular basis in the work area engaging with the workforce to better understand their reality.
7
Improvement ideas are processed quickly (within 2 weeks) with feedback to the originator regardless if the idea was implemented
Page | 7
Continuous Process Improvement Focus Systems | Questions OBJECTIVE
1 Immediate action is taken when the work area is ahead or behind schedule
Problem Solving Pull Leveling/Scheduling Visual Management
Describe how you schedule your work for the day? How do you know if you are on time, ahead or behind schedule?
What do you do when you’re ahead or behind? Can you show me what you do?
It is easy to see when an area is ahead or behind schedule
2 The flow of service or product is simple and direct, creating continuous flow
Cellular Design Visual Management Value Stream
How does product/material come in and out of your area and how do you know what to work on first? Can you show me what you do to know if your area is meeting the customer demand?
Waste is eliminated that causes bottlenecks, waiting, excessive transportation and movement of patient
3
The “Current State” and “Future State” are an ongoing continuous cycle – Actively pursued with a visual and detailed action plan and timeline
Value Stream Strategy Deployment Visual Management Coaching
Can you describe or show me what you area looked like a year ago? What has changed and what role did you play in those changes? How do you know what areas to focus on in your area to improve? How do other people know what you are working on? Are there timelines associated with this work? Have you ever revisited an improvement implementation to make it even better?
Improvement is truly continuous, not event driven. Areas are constantly moving toward an Ideal Future State
4 Standards (SWI), work-areas – are highly visual, simple and USED (routinely being updated as improvements are made)
Standard Work Visual Management Coaching Suggestion/Idea
How do you know you are doing your work correctly? How do you know when there is a problem or defect? When you make changes how are these documented? Can you show me your process for updating your work instructions?
All work is highly specified at to content, sequencing, timing, and outcome – in order to signal abnormal conditions immediately
5 There is a sense that ‘continuous improvement’ is just part of the job
Coaching Communication Problem Solving
How does your team communicate and share improvement ideas during the workday? How do your leaders support you in problem solving? Does continuous improvement or problem solving ever get in the way of your job?
Continuous improvement is owned by the entire organization.
6 Improvement activities are directly linked back to the organization’s strategic focus and primary objectives
Strategy Deployment Value Stream
How do you or your area select which problems to work on? How are these goals then communicated to you? How does your work impact these goals? Do you know the current status for of these goals? (Show me)
Improvement is not a shot-gun approach, rather specifically targeted in the strategic direction of the organization
7
Improvement ideas are routinely shared openly throughout the organization, across multiple value streams & departments
Idea Sharing (Yoketen) Communication Leadership Std. Work
Before your area improves or problem solves, is there a way to see if others in your organization have had the same issues? (Show me) How do you communicate information to your colleagues about improvement projects that have been implemented in your area? Has your team ever had the opportunity to take an improvement idea that started in another dept/service, and applied it to your own workgroup?
Avoid reinventing best practices
Page | 8
Continuous Process Improvement Focus Observations(Behavior)
1 Immediate action is taken when the work area is ahead or behind schedule
2 The flow of service or product is simple and direct, creating continuous flow
3
The “Current State” and “Future State” are an ongoing continuous cycle – Actively pursued with a visual and detailed action plan and timeline
4 Standards (SWI), work-areas – are highly visual, simple and USED (routinely being updated as improvements are made)
5 There is a sense that ‘continuous improvement’ is just part of the job
6 Improvement activities are directly linked back to the organization’s strategic focus and primary objectives
7
Improvement ideas are routinely shared openly throughout the organization, across multiple value streams & departments
Page | 9
Continuous Process Improvement Focus 0 OBJECTIVE
1 Immediate action is taken when the work area is ahead or behind schedule
No e
vid
ence
Associates can rarely detect when their area is ahead or behind schedule.
Associates can detect if they are ahead/behind but no actions are taken to respond.
Associates can predict throughout the day and immediate action is taken by the appropriate people to adjust, fix and improve the process.
It is easy to see when an area is ahead or behind schedule
2 The flow of service or product is simple and direct, creating continuous flow
No e
vid
ence Services or patients are batched
and process is complex and difficult to see. No visibility or communication between upstream and downstream processes.
The process flow is easy to see and but there’s only communication between connected processes. Waste and bottlenecks are looked at during events only
All processes are connected visually and easy to see and understand. Waste is immediate identified and addressed to adjust for continuous flow of service to the patient and families.
Waste is eliminated that causes bottlenecks, waiting, excessive transportation and movement of patient
3
The “Current State” and “Future State” are an ongoing continuous cycle – Actively pursued with a visual and detailed action plan and timeline
No e
vid
ence
Staff is unclear in describing the future state and how to get there.
Staff reference displays of improvement goals that related to future state. Staff recognizes the connection between current improvements and achieving future state. Mapping is seen as an event with limited follow-up.
Work and improvements are reviewed on a scheduled basis so immediate adjustments can be made when deviating from the future state. The future state is met within 6-12 months where a new future state is created.
Improvement is truly continuous, not event driven. Areas are constantly moving toward an Ideal Future State
4 Standards (SWI), work-areas – are highly visual, simple and USED (routinely being updated as improvements are made)
No e
vid
ence
Standard work is evident in the associate’s work process, but not always followed. Updating it is more of a hassle.
The associate’s standard work program is displayed so that it is easy to audit for compliance
Associates improve SWI plan, documenting the improvement and sharing with managers
All work is highly specified at to content, sequencing, timing, and outcome – in order to signal abnormal conditions immediately
5 There is a sense that ‘continuous improvement’ is just part of the job
No e
vid
ence Continuous improvement is a
burden and usually in the way of doing REAL work. Associates and managers are not able to describe improvement work/ projects in relation to their role.
Staff can describe some improvement projects they've participated in.
All Associates signal problems immediately and can speak to the response system. Staff integrates problem solving into daily activities and can speak to how they contribute to larger goals.
Continuous improvement is owned by the entire organization.
6 Improvement activities are directly linked back to the organization’s strategic focus and primary objectives
No e
vid
ence
Associates can show you where to find organizational goals, but can't describe how their work has impacted the goals.
Staff can articulate organizational goals and objectives and identify some examples of improvement projects in their area.
Staff integrates improvement into daily work and all can demonstrate how improvement work is linked back to strategic focus and primary objectives.
Improvement is not a shot-gun approach, rather specifically targeted in the strategic direction of the organization
7
Improvement ideas are routinely shared openly throughout the organization, across multiple value streams & departments
No e
vid
ence
People are unsure how to share improvement ideas and are too busy to see them as priorities.
There is limited communication and sharing between departments of improvements that are going on
Staff can tell you when and where regular forums occur to report out on improvement efforts. Leaders and managers share ideas and work to implement these within their area. Not happening consistently across the organization. People are expected to provide improvement ideas but are unclear about the process
Before any improvement is made the team systematically checks to see who if any has encountered the same problem, and use their countermeasure as a starting point to improve.
Avoid reinventing best practices
Page | 10
Continuous Process Improvement Focus Strengths | Opportunities (to move to the next level)
1 Immediate action is taken when the work area is ahead or behind schedule
2 The flow of service or product is simple and direct, creating continuous flow
3
The “Current State” and “Future State” are an ongoing continuous cycle – Actively pursued with a visual and detailed action plan and timeline
4 Standards (SWI), work-areas – are highly visual, simple and USED (routinely being updated as improvements are made)
5 There is a sense that ‘continuous improvement’ is just part of the job
6 Improvement activities are directly linked back to the organization’s strategic focus and primary objectives
7
Improvement ideas are routinely shared openly throughout the organization, across multiple value streams & departments
Page | 11
Enterprise Alignment Focus Systems | Questions OBJECTIVE
1 Employees can describe what the mission and vision of the organization is and how they personally impact it
Communication Coaching Strategy Deployment
What do the mission and values of the organization mean to you? What’s the relationship between your work and the organization’s mission and
values? Show me an example of that. How do leaders communicate what is important to your organization?
A well communicated vision that creates a senses of urgency, unity, and loyalty
2 There is a structured process for aligning goals and strategic priorities that is simple and visible at all levels of the organization
Strategy Deployment Visual Management Communication
What is one way your work contributes to the goals of the organization this year? How are strategic priorities established in your area? Who was involved in setting the goal? Did you have any input? Are you meeting your goals, where would I see that, Show me.
Each person in the organization understands their role in supporting and achieving the strategic goals
3 The voice of the customer directs focus of continuous improvement and future development of the organization
VOC Value Stream Strategy Deployment
Who are your customers? How do you know what your customers value? How to you systematically listen to your customers needs? What do you do with that information?
Understand what is valued by the customer and focus development on creating value for the customer
4 Open communication across value streams, support and administrative departments.
Communication People Development Idea Sharing (Yoketen)
How do the other departments impact your work? How do you communicate and understand the impact other departments have? How do you work together to solve problems? (Share or show an example)
The organization functions as a team, working together not against each other to create value for the customer…not waste
5 Leaders and managers follow standard work and are routinely seen out of the offices and in the work areas.
Go & See/ Gemba Leadership Std. Work Coaching
How often do you talk with your manager about key issues in your work area? When leaders/managers visit your area what do they typically talk about? Tell me about the involvement that leaders have in your area? Tell me about the involvement that managers have in your area?
Leaders systematically monitor and maintain organizational alignment
6 Tracking boards are used daily for open discussion and feedback so that adjustments can be made quickly
Visual Management Strategy Deployment Problem Solving
How is the work and status of the work kept visible to the team? How often do you meet in front of these boards? Where on the boards do you spend 80% of your energy? How do the boards help you? Can you affect or impact all the measures on your board? How do these measures help you improve?
Quick adjustments can be made on a daily basis to re-align focus to strategic direction of the organization
7 Metrics and goals are simple and clearly aligned, driving the right behavior to achieve the organizations vision.
Strategy Deployment Visual Management Coaching
What are your work unit’s goals? How are they measured? How are your goals tied to the organization’s vision? How can you tell if your work is contributing to the success of the organization? Can you show me how you track this in your work unit?
Eliminate short-term focus that gets immediate results but damages the Long-term focus on the vision.
Page | 12
Enterprise Alignment Focus Observations(Behavior)
1 Employees can describe what the mission and vision of the organization is and how they personally impact it
2 There is a structured process for aligning goals and strategic priorities that is simple and visible at all levels of the organization
3 The voice of the customer directs focus of continuous improvement and future development of the organization
4 Open communication across value streams, support and administrative departments.
5 Leaders and managers follow standard work and are routinely seen out of the offices and in the work areas.
6 Tracking boards are used daily for open discussion and feedback so that adjustments can be made quickly
7 Metrics and goals are simple and clearly aligned, driving the right behavior to achieve the organizations vision.
Page | 13
Enterprise Alignment Focus 0 OBJECTIVE
1 Employees can describe what the mission and vision of the organization is and how they personally impact it
No e
vid
ence
Associates can communicate where to locate written definition of vision and mission
Associates are able to define several elements of the mission and vision, and provide examples of projects in their workgroup to support the mission and vision
Associates identify specific examples of how they impact the mission and vision. Management is coaching problem solving that is centered on achieving the vision.
A well communicated vision that creates a senses of urgency, unity, and loyalty
2 There is a structured process for aligning goals and strategic priorities that is simple and visible at all levels of the organization
No e
vid
ence
Associates can communicate where to locate organizational goals and goals for their work group.
Associates can identify their goals for their workgroup and can articulate the strategic nature of those goals.
The workforce can quickly identify their goals and where they are in achieving them (visually). The goals are simple and directly related to their work area, but also tied directly to the strategic objectives of the organization.
Each person in the organization understands their role in supporting and achieving the strategic goals
3 The voice of the customer directs focus of continuous improvement and future development of the organization
No e
vid
ence
The workforce understands that the patient is the customer, but their processes don’t demonstrate this understanding
Surveys are conducted to get feedback from the patient, but based on a push system. Seldom is feedback used to improve key systems in the area. Key issues repeatedly surface in the survey.
Patients, families, and the community are actively and systematically listened to and involved in key improvement areas.
Understand what is valued by the customer and focus development on creating value for the customer
4 Open communication across value streams, support and administrative departments.
No e
vid
ence
We talk about the impact of improvements in our work area, but seldom about the impact we have in other departments.
We ask and communicate about the impact of our work with other departments, but improvements are still made with local efforts.
We coordinate our work across departments daily and collaborate to continuously create value for the customer. Cross functional teams are used routinely.
The organization functions as a team, working together not against each other to create value for the customer…not waste
5 Leaders and managers follow standard work and are routinely seen out of the offices and in the work areas.
No e
vid
ence
Leader standard work is documented. Leaders and managers rarely are in the work area.
Leader standard work is documented and posted. Managers are frequently in the work areas. Managers ask questions predominately about day-to-day operations and offer solutions. Dept objectives and metrics are posted by not tied to organizational goals.
Managers are in workplace daily. While there, managers coach by asking question and aid in eliminating barriers to help areas achieve strategic objectives.
Leaders systematically monitor and maintain organizational alignment
6 Tracking boards are used daily for open discussion and feedback so that adjustments can be made quickly
No e
vid
ence
Tracking boards are up. Managers listen to reports by team leads & workers daily. Managers solve problems after the huddle.
Tracking boards are up. Managers facilitate discussion of daily work at huddle at the board. Manager’s questions commonly result in problem solving by the team.
Managers consistently ask questions in order to identify problems and barriers. The team is highly engaged in the huddles and discuss ideas for solving problems on a daily basis. Actions are specifically assigned and followed up daily to meet strategic objectives.
Quick adjustments can be made on a daily basis to re-align focus to strategic direction of the organization
7 Metrics and goals are simple and clearly aligned, driving the right behavior to achieve the organizations vision.
No e
vid
ence
Multiple metrics are tracked by managers and rarely shared with work unit.
Metrics and goals are posted in work areas. Managers frequently refer to them while in the work unit.
Specific key metrics are visually tracked in the work unit. Associates consistently discuss how the metrics show the work unit progress toward organizational goals.
Eliminate short-term focus that gets immediate results but damages the Long-term focus on the vision.
Page | 14
Enterprise Alignment Focus Strengths | Opportunities (to move to the next level)
1 Employees can describe what the mission and vision of the organization is and how they personally impact it
2 There is a structured process for aligning goals and strategic priorities that is simple and visible at all levels of the organization
3 The voice of the customer directs focus of continuous improvement and future development of the organization
4 Open communication across value streams, support and administrative departments.
5 Leaders and managers follow standard work and are routinely seen out of the offices and in the work areas.
6 Tracking boards are used daily for open discussion and feedback so that adjustments can be made quickly
7 Metrics and goals are simple and clearly aligned, driving the right behavior to achieve the organizations vision.
Assessment Areas
Senio
r Leaders
hip
Patie
nt E
xperie
nce
Com
munity R
ela
tio
ns
Qualit
y C
are
Develo
pm
ent
Care
Path
s
Me
d./S
urg
ical &
P
harm
acy S
upply
Adm
inis
trative &
Clin
ical S
upport
BUSINESS PROCESSES
Cultural Enablers
People Development: Education Training & Coaching, Empowerment & Involvement
Continuous
Improvement
Continuous Improvement
Weight
6% 13% 6% 43% 13% 19%
Enterprise Alignment
Enterprise Alignment
Weight
60% 8% 8% 8% 8% 8%
Results
Quality
Measures (50 pts.)
Cost/Productivity
Measures (50 pts.)
Delivery
Measures (50 pts.)
Customer Satisfaction
Measures (50 pts.)
Morale
Measures (50 pts.)