creating the improvement-minded organization
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Creating the Improvement-Minded Organization
K M iKaren Martin
American Society for QualityAmerican Society for QualityLean and Six Sigma Conference
Phoenix, AZ,February 28, 2012
“I arise in the morning torn between a desire toI arise in the morning torn between a desire to improve the world and a desire to enjoy the world. This makes it hard to plan the day.”p y
Elwyn Brooks White
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Success with Improvement
70%
2001 – The Economist
60%63%
40%
50%
20%
30%
17% 20%
10%
0%Temporary LastingNone
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…A Decade Later
2010 – Accenture80%
60%
70%
80%
58%69%
40%
50%
60% 58%
20%
30%
40%33%
0%
10%
20%
0%Minimal financial impact
Needs re‐evaluation, restart or complete
makeover
“Mixed” to “disappointing”
results 4
To Err is HumanInstitute of Medicine, 1999
Up to 98,000 deathsannually due tomedical errors.
8th leading cause of8th leading cause ofdeath in U.S.
5
6
To Err is HumanInstitute of Medicine, 1999
98,000 lives lost
I t G lImprovement Goal:Reduce by 50% yin 5 years.
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Not. Even. Close.
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Something Is Terribly Wrong…
180,000 Medicare patients die
33% hospitalized patients are harmed;
2010
Progress has been slow.
Journal of the American
patients die annually from
medical errors.Office of the
7% result in permanent injury or
death.Health Affairs2009 2010Medical Association Inspector General Health Affairs
2005 2010 2011Annual death toll from
medical errors is closer to
No significant change in rate of
preventable errorsis closer to
200,000.Dead by Mistake
Heart Newspapers
errors.New England Journal of
Medicine
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Special Report
What are we missing?
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We need to improvep
how we improve.p
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Mi d t & B h iMindsets & Behaviors
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Lack of ClarityLack of Focus
Lack of DisciplineLack of DisciplineLack of Engagement
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Lack of ClarityLack of Focus
Lack of DisciplineLack of DisciplineLack of Engagement
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What type of cathedral are we building?are we building?
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Who are your customers? What problem does your goodWhat problem does your good
or service solve?
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You must indoctrinateall new hires into vision, customers, and value—and
k b i f lspeak about it frequently.
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How does work get accomplished? And well how are we doing at it?And well how are we doing at it?
C stomerCustomer
Process Process Process Process1 2 3 4
LTPT
LTPT PT PT
LT LT
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TruthTruth
TruthTruthTruth
TruthTruth
TruthTruthTruth
Truth20
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“Going to the gemba has been life changing forlife changing for me as a leader.”
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Lack of ClarityLack of Focus
Lack of DisciplineLack of DisciplineLack of Engagement
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Distraction Kills
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Booz & Company Findings
80%
90%82%
60%
70% 64%
40%
50%49%
20%
30%
0%
10%
No written Conflicting Competing
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No writtenpriorities
Conflicting priorities
Competing demands
“The difference between successful people and very successful peopleand very successful people
is that very successful people
say nosay no to almost everything.”
— Commonly attributed to Warren Buffetty
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Apple’s Success
“…saying no to 1,000 things to make s re e don’t get on themake sure we don’t get on the wrong track or try to do too much We’re always thinkingmuch. We re always thinking about new markets we could enter, but it’s only by saying y y y gno that you can concentrate on the things that are really i t t ”important.”
— Steve Jobs
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The Reality…The Reality…
Y CAN’T d it ll…You CAN’T do it all –and do it welland do it well.
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To create new ideas is a gift, but to chooseto choose wisely is a skill.— Ryan Morgan
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What is Your Improvement Strategy?p gy
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Productivity (Pounds Produced / Hr Worked)
105 9108.0
115.0
PactivImplements
105.9
101.0
Strategy Deployment
90.693.0
95.294.0
84.886.387.0
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80.0FY '06 FY '07 FY '08 FY '09 FY '10 YTD '11
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Strategy Deployment Key Feature: Catchball
Executive Team
What?How?Who?When?
What?Senior Mgmt
How?Who?When?
Middle Mgmt
What?How?Who?When?
What?H ?
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FrontlinesHow?Who?When?
Recession deepens 2.5x more Medicaid patients
ThedaCareImplementsImplements Strategy
Deployment
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Annual Improvement Plan
1 Gain clarity around overarching business needs1. Gain clarity around overarching business needs.2. List everything you could do (and that you are doing).3 C t i i t3. Categorize into:
– “Must‐do, can’t fail”Maybe– Maybe
– Eliminate
4 Decide what you will do – prioritize “maybe’s”; gain4. Decide what you will do prioritize maybe s ; gain consensus.
5. Create plan.5. Create plan.6. Manage plan via weekly updates (may be able to
reduce to monthly reviews – but be careful!).y f )
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Annual Improvement PlanCompany ABCPriorities
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Integrate DHR Begin MS‐1Ops
MS‐2 Acct
CompleteBrad P
Complete New
Tactical Owner
Others
PrioritiesFY 2012 FY 2013Priority Exec
Owner
Travel Program Roll‐out
Begin Complete Scott R Fred S
Roll‐out Tablets to Installation
Begin & Complete
Brad P
Complete 360 Begin Complete Justin C Steve R
Lisa D, Marina,
Roll‐outBegin Complete Justin C Steve R
SM, Tech,Hal, Doug
Create Line‐item P.O.s
Begin Complete Lisa B Mark C
Refinance credit f i l it
Begin Scott Rfacility
g
Complete ADP Roll‐out
Begin Complete Gary O
Develop & Roll‐out Handheld 2 2
Begin MS‐1Clean Code
MS‐2Pilot
MS‐3Go live
Not complete Steve C TBD
Handheld 2.2 Clean Code Pilot Go l ive until 2013
Complete GPS Roll‐out
Begin Complete Steve C RDs Cons., HR, Fleet
Complete "River" (One Soft) R ll t
Begin Complete Lisa B
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Roll‐out
Develop Safety Program
Begin Complete Gary O
An Experiment
M l i k i i l iM u l t i t a s k i n g i s a l i e .
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
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Sporting Goods Manufacturer –Product Launches Per Year
70
8073
60
70No additional resources;
40
50;
higher quality products launched
20
30 24launched
0
10
Pre‐Focus Post‐Focus39
Rockwell Automation
2520
15
20 Projects Started
12 12
20
10
5
Projects
12 12
0
5 Completed3
0Pre‐Focus Post‐Focus
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Lack of ClarityLack of Focus
Lack of DisciplineLack of DisciplineLack of Engagement
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How much deliberate practice?
10 000 hours10,000 hours
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Form hypothesis
Conduct experiment
Standardize & stabilize
Measure
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Measure results
Relentless Reflection Leads to Outstanding PerformanceOutstanding Performance
Rafael Nadalsuccessfullysuccessfully returned this h dshot to Andy Roddick.
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Discipline
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Lack of ClarityLack of Focus
Lack of DisciplineLack of DisciplineLack of Engagement
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Energy Crisis: Widespread Disengagement
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“The corporate world is appalling badThe corporate world is appalling bad
at capitalizing on the strengths of
its people.”
— Marcus Buckingham
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Engagement: The Three C’s
Connection
ControlCreativity
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Problem solving i hi his a high.
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The Power of Re-engaging
“I went home yesterday and told my family that it was one of the best working days I have ever had I was able toof the best working days I have ever had. I was able to fully use my capabilities for three days to help in creating a very good output on an insane schedule… y g p
…More important than the work we accomplished was tti ll th l i th t d t h llgetting all the people in the room yesterday to challenge
the conventional wisdom and perceived walls regarding existing processes and standards THIS is the realexisting processes and standards. THIS is the real success!”
— Fred Valezano, P.E.Fred Valezano, P.E.
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Our role isn’t to “do.” Our role is to teachOur role is to teach.
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The Next Frontier…
54The Middle Manager
Business Results
Clarity Focus Discipline Engagement
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lKnowing is not enough; we must apply.Willing is not enough; we must do.g g ;
— Goethe
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The Outstanding Organization:The Outstanding Organization:Generate Business Results by Eliminating Chaos and
Build the Foundation for Everyday Excellence
Release Date: June 8, 2012 (McGraw‐Hill)
Preorder now: www.bit.ly/km‐too
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Thank you.
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For Further Questions
Karen Martin PrincipalKaren Martin, Principal7770 Regents Road #635
San Diego, CA 92122858.677.6799
ksm@ksmartin.comksm@ksmartin.comTwitter: @karenmartinopex
Monthly newsletter: www ksmartin com/subscribeMonthly newsletter: www.ksmartin.com/subscribe
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