baldrige performance excellence process overview - 2015 taproot® summit

© Copyright 2015, Great Systems, All Rights Reserved

Kevin McManus Chief Excellence Officer

Great Systems www.greatsystems.com

Strategies for Assessing Your Progress

Towards Performance Excellence

How Good are You?

Title Slide

Systems

Culture

Behaviors

BeliefsR


What is Process Excellence?

Minimal waste, consistent improvement, best in class at meeting or exceeding customer expectations

HOW do you know if you are making progress?

WHAT is process excellence?

HOW do you achieve it?

Define and build process excellence into EVERY employee’s daily job

1.  Sustained improvement over time (3-5 years)

2.  Sustained improvement in all areas of importance

3.  Nearing or at ‘best in class’ levels


Performance Excellence and TapRooT®

Effective Use of Audits (PCFs)

Daily Error & Defect Reduction

32 NI Best Practice Spectrums

REACTIVE

PROACTIVE

Investigation Process

RCA Process

CA Implementation Process

Process Excellence How do we find our causal factors?


Why Can’t We Go Faster?

We ask our people to drive faster, but we leave the restrictor plates on at the same time.

Faulty work systems are similar to restrictor plates on NASCAR vehicles

If we want to go faster (higher levels of performance), we have to take the plates off.


Three Key PE Restrictors

You can’t spend time on process improvement if you are spending time bringing new people up to speed

Little time exists for process improvement

Employee turnover rates are high

Span of control ratios are too large

Spans of control have gotten very out of control in many, if not most organizations

You can’t go to the bank and take out a ‘time loan’ and most people aren’t going to spend more time on the job


What’s Holding Us Back?

We don’t use our process improvement tools

We only engage a small percentage of our people

We have not learned from the past

We don’t see all work as a process

We can’t find time for improvement

% of Workforce Engaged

% o

f Pr

oces

ses

DM

AI’

d

High Performance Workplace

Traditional Workplace

Efficient Workplace

Engaged Workplace

LOW

HIGH

HIGH


Every process owner should be

responsible for tracking and trending

process performance and process waste

on a regular basis, and for using that

information to improve those processes.

The Key to Sustaining Process Excellence


Why Won’t They Change?

What is the fastest and easiest way to change

human behavior?

Change the system!


300

400

500

600

700

800

900

1,000

2012 2013 2014 2015 2016

The Key QuesZon! Is a high Baldrige score an indicator of performance

excellence?


Why I Believe in Baldrige

Results account for 45% of the total possible points

The stock performance of past NaZonal Baldrige Award recipients

The NaZonal Baldrige Performance Excellence Program pracZces what it preaches!

The criteria are based on 11 powerful core values

You determine what is important – measures, strategies, markets, and stakeholders

The beauty of the scoring guidelines


A PerspecZve Shib

With Baldrige, a 50% score is a sign of

success, not failure!


A Closer Look at Baldrige

Quality Award Process

Criteria Design Scoring Guidelines

Approach / Deployment

Results

11 Core Values

Point Mix %

7 Categories - 17 Items

What and How Questions

Key Factor-based

Does it exist?

Well deployed?

Improved?

Integrated?

Levels and Trends?

Integrated?

Comparisons?

Key areas?


Baldrige Core Values

Visionary leadership

Valuing employees and partners

Customer-driven excellence

Organizational and personal learning

Focus on the future

Agility

Managing for innovation

Focus on results and creating value

Management by fact

Social responsibility

Systems perspective

Source: 2015-‐2016 Baldrige Excellence Framework ”, NIST, 2015


Steps Toward Mature Processes


Five Key Concepts

Systems give you what they are designed to give you

Systems shape culture

All work is a process

People make the difference

All processes produce results


From ReacZve to ProacZve – Baldrige Style



2015-‐16 Baldrige Criteria Scoring

1 Leadership 2 Strategic Planning 3 Customer Focus 4 Measurement, Analysis, & Knowledge

Management 5 Workforce Focus 6 OperaZons Focus 7 Results

120 85 85 90 85 85 450



Twelve Basic Process Requirements

How do your senior leaders lead the organization?

How do you obtain information from your customers?

How do you govern your organization and fulfill your societal responsibilities?

How do you develop your strategy?

How do you engage customers by serving their needs and building relationships?

How do you implement your strategy?

Customers

Strategy

Leadership



Twelve Basic Process Requirements (cont.)

How do you measure, analyze, and improve organizational performance?

How do you manage your organizational knowledge assets, information, information technology infrastructure?

How do you design, manage, and improve your key products and work processes?

How do you engage your workforce to achieve a high-performance work environment?

How do you build an effective and supportive workforce environment?

How do you ensure effective management of your operations?

Operations

Workforce

Measurement, Analysis, and Knowledge

Management



How Do Your Leaders Lead?

Our workforce knows our organizaZon’s mission (what we are trying to accomplish)?

SD D AD A SA

Our leadership team creates a work environment that helps our employees do their jobs.

Our workforce knows our organizaZon’s vision (where it is trying to go in the future)?

Our leadership team uses our organizaZon’s values to guide our organizaZon and employees.

Our leadership team shares informaZon about the organizaZon.

SD D AD A SA

SD D AD A SA

SD D AD A SA

SD D AD A SA

Our leadership team asks employees what they think. SD D AD A SA

Source: “Are We Making Progress as Leaders?”, NIST, 2011


How Do You Plan?

As our leadership team plans for the future, we ask our employees for their ideas.

SD D AD A SA

Our organizaZon encourages totally new ideas (innovaZon).

Our employees know the parts of our organizaZon’s plans that will affect them and their work.

Our employees know how to tell if they are making progress on their work group’s part of the plan.

SD D AD A SA

SD D AD A SA

SD D AD A SA

Our organizaZon is flexible and can make changes quickly when needed.

SD D AD A SA



How Do You Engage?

Our employees know who their most important customers are.

SD D AD A SA

Our employees regularly ask their customers what they need and want.

Our employees ask if their customers are saZsfied or dissaZsfied with their work.

Our employees are allowed to make decisions to solve problems for their customers.

SD D AD A SA

SD D AD A SA

SD D AD A SA

Our employees also know who our organizaZon’s most important customers are.

SD D AD A SA



How Do You Measure, Analyze, and Share?

Our employees know how to measure the quality of their work.

SD D AD A SA

Our employees use this informaZon to make changes that will improve their work.

Our employees know how the measures they use in their work fit into our organizaZon’s overall measures of improvement.

Our employees get all the informaZon they need to do their work.

SD D AD A SA

SD D AD A SA

SD D AD A SA

Our employees know how our organizaZon as a whole is doing.

SD D AD A SA



How Do You Work and Grow?

Our employees cooperate and work as a team. SD D AD A SA

Our leadership team encourages and enables our employees to develop their job skills so they can advance in their careers.

Our employees are recognized for their work.

Our managers and our organizaZon care about our workforce.

SD D AD A SA

SD D AD A SA

SD D AD A SA

Our workforce is commiped to our organizaZon’s success.

SD D AD A SA

Our organizaZon has a safe workplace. SD D AD A SA



How Do You Provide Customer Value?

Our employees can get everything they need to do their jobs.

SD D AD A SA

Our organizaZon has good processes for doing its work.

Our employees have control over their personal work processes.

Our organizaZon is prepared to handle an emergency.

SD D AD A SA

SD D AD A SA

SD D AD A SA



2015-‐16 Baldrige Results Points

7.2 Customer Focused Results

120

7.5 Financial and Market Results

7.4 Leadership and Governance Results

7.3 Workforce Focused Results

7.1 Product and Process Results

80

80

80

90



How Good are Your Results?

Is each area of importance measured?

Do you have trend data for each of your key measures?

Do you have‘best in class’ comparison measures?

Does your segmented data show consistent, posiZve trends?

Is there a consistent, posiZve trend over 3 to 5 years?

Do you know your key measures?


How Good are These Results?

Survey Response: Our leaders consistently support the mission of the hospital

80%

81%

82%

83%

84%

85%

86%

87%

88%

89%

90%

2003 2004 2005 2006 2007

SystemNursingPhysiciansAdminPG Avg.

Perc

ent

That

Agr

ee o

r St

rong

ly A

gree


Key Work System Needed?

Have It?

Use It? Improve It

Design and Build

YES

NO

YES

NO

Use and Improve

Is It EffecAve

?

YES NO

Use and Improve

WantIt?

NO

YES What are your design opAons?

What are your Improvement opAons?


Example Work Systems

Leadership Development

Outcome Measurement

Complaint ResoluZon

Strategic Planning

MUST Systems

Leader CommunicaZon Avenues

Customer Listening Posts

Best PracZce Sharing

In-‐Process Measurement

RelaZonship Growth

Individual Development

WANT Systems

Community Support

Technology UZlizaZon Planning

Hiring process Supplier Management


Example Mature System

DEFINE

ANALYZE

MEASURE IMPROVE Leadership

Development Process

Mission, Vision, and Values

High Performance Job Description

Leadership Index

Leadership Curriculum

Scorecards and

Dashboards

Per

sona

l Dev

elop

men

t Pla

n

Belief and Behavior Expectations

Customer Listening Posts

Annotated Trend Lines

Survey Feedback Meetings

Community Involvement

Process Annual Survey

Results

Com

mun

icat

ions

Pla

n

Increase / Decrease Objectives

Process Improvement

Plans

Performance Review Process


Measuring Leader Behavior

Which leaders should be measured with an index?

How long should we tolerate ‘poor performance’?

What minimum score should be considered acceptable?

1. Works with me to define the expectations of my job

2. Helps us find ways to do our jobs better

3. Is willing to spend time listening to my concerns

4. Lets me know when I have done a good job

5. Asks for my ideas about things affecting our work

6. Treats me with respect and dignity

7. Keeps me informed about things I need to know

8. Lets me do my job without interfering

9. Makes an effort to understand my point of view

10. Keeps favoritism from being a problem in our workgroup

11. Makes sure that continuous improvement is part of my daily job

My manager or supervisor …

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

LI = 45%


Improving Your Leadership System

At Start

Formally define acceptable leadership practices

Second Cycle

First Cycle

Third Cycle

Use peer or 360 reviews as feedback tool

Create succession plan for all leadership levels

Install mentor process for leadership cross training

Provide feedback at annual reviews

Meet regularly to review performance and plan

Begin using bottom-up leadership index process

Link training events to leadership improvement


Most Baldrige-‐based training has its roots in naZonal Examiner training (applicaZon-‐based)

Few self assessments help idenZfy key linkages and integraZon between systems

Few self assessments properly consider the affect of the scoring guidelines and key factors

Most self assessments focus primarily on covering the criteria

Deployment and integraZon are difficult to assess without a site visit


Self Assessment OpZons

IdenZfy key approaches for each of the 12 process Items, along with deployment, refinement, and integraZon examples

Use the “Are We Making Progress as Leaders?” assessment to do a gap analysis

Have a 50 page applicaZon assessed by a team of Examiners

Define your key metrics and complete 5 results scoring matrices

Pick a scoring band and jusZfy why you did not go higher


High Performance Building Codes

Each key process has its own balanced scorecard / KPIs

A plan exists for using new technologies

Trend lines are maintained for all key measures

All process owners capture key process counts, raZos, and errors daily

Safety, quality, cost, and people ‘gauges’ should be on all scorecards

All work teams are engaged in daily process review, analysis, and improvement

Key errors, problems, and defects are captured daily and crunched weekly

Cross-‐funcZonal project teams are consistently used to drive step change

Leadership behavior should be measured

All employees benefit from some form of profit sharing


Top 10 Places to Start

Define your leadership team Complete the five secZons of the OrganizaZonal profile

Setup a spreadsheet for trending your key measures Define 3-‐5 year trends and comparisons for each measure IdenZfy stakeholders and their requirements IdenZfy customer segments and their requirements

Diagram your strategic planning process

Diagram your key work processes / systems – value stream map

Define your customer / stakeholder listening posts Define your process for measuring saZsfacZon and dissaZsfacZon of customers, stakeholders, and associates


Contact InformaZon

E-mail: [email protected]

Cell: 206.226.8913

Website: www.greatsystems.com

If you would like more information, please send me an e-mail with a request specifying your needs.

Root Cause Analysis: www.taproot.com

Land: 503.556.0204

Skype: capkaizen

baldrige performance excellence process overview - 2015 taproot® summit

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