The Outstanding Organization: The Power of Discipline

1. The Outstanding Organization: The Power of Discipline Presenter: Karen Martin Webinar May 3, 2012

2.  Founder, Karen Martin & Associates, LLC (1993)  Lead Lean transformations in the service sector and office areas within manufacturing  Teaches at University of California, San Diego’s Lean Enterprise program  Email: karen@ksmartin.com  Twitter: @karenmartinopex  Facebook: www.facebook.com/karenmartinassoc Karen Martin, Principal July 2012

3. We need to improve how we improve. 3

4. Mindsets & Behaviors 4

5. Lack of Clarity Lack of Focus Lack of Discipline Lack of Engagement 5

6. The Outstanding Organization Business Results Problem Solving Improvement Continuous Resilience Core Capabilities CHOS 6

8. Greatness results from disciplined people engaged in disciplined thinking that leads to disciplined action. — Jim Collins, Good to Great 8

9. Mastery Requires Deliberate Practice Rafael Nadal successfully returned the shot to Andy Roddick. 9

10. How much deliberate practice? 10,000 hours (10 Years) 10

11. Relevant Resources 1. K. Anders Ericsson et. al, “The Making of an Expert,” Harvard Business Review, July 2007. 2. Daniel Coyle, The Talent Code, Bantam Books, 2009. 3. Geoff Colvin, Talent is Overrated, Portfolio Press, 2008. 4. Charles Duhigg, The Power of Habit, Random House, 2012. 11

12. “Effectiveness is a habit.” — Peter Drucker 12

13. Practice vs. Performance Perform Train 99% 100% 90% 90% 80% 70% 60% Train 50% Perform 40% 30% Perform 20% 10% Train 1% 10% 0% Athletes Businesses Jim Loehr & Tony Schwartz, The Power of Full Engagement 13

14. Two Key Areas for Development • Problem-Solving – Mechanics – Coaching Expertise • Process Management – Process Owner – Key Performance Indicators – Continuous Improvement 14

15. Problem: A gap between where you are and where you need to be. Opportunity: A gap between where you are and where you’d like to be. 15

17. Clarifying the PDSA Cycle Phase Detailed Steps 1. Define and break down the problem. 2. Grasp the current condition. Develop Plan 3. Set a target condition. Hypothesis 4. Conduct root cause & gap analysis. 5. Identify potential countermeasures. 6. Develop & test countermeasure(s) Conduct Continuous Do 7. Refine and finalize countermeasure(s). Experiment Improvement 8. Implement countermeasure(s). Evaluate Study 9. Measure process performance. Results 10. Refine, standardize, & stabilize the process. Refine Adjust Standardize 11. Monitor process performance. Stabilize 12. Reflect & share learning. 17 © 2012 Karen Martin & Associates, LLC

19. Developing PDSA Capabilities • A3 Management • Kaizen Events • Daily Kaizen (Improvement & Coaching Kata) 19

20. The Role of the Improvement Coach 20

22. Remember This? How much deliberate practice? 10,000 hours (10 Years) 22

24. Improvement‐Oriented Socratic Questions • Clarification • Viewpoints & perspectives – What problem are you trying to solve? – What about the current condition is not – Why is that a problem? ideal? – What is this data telling you? – Which countermeasures have you rejected and why? • Simplification – Is there another way to look at these – How could you visually depict that data? results? – What’s the most relevant finding? • Implications & consequences – What specific conditions would be best for testing your hypothesis? – If you do that, what might happen? – If “that” happens, then what? • Rationale/evidence – What data supports that conclusion? • Procedure – How could you collect the data you need – What’s your next step? to prove or disprove your hypothesis? – How is the new way of operating being – What is the primary root cause for that documented? problem? – How do you plan on training the affected workers on this new process? – How will the process be monitored? – Where else can this learning be applied in the organization? 24 © 2012 Karen Martin & Associates, LLC

25. Process Design, Management and Improvement 25

26. Process Needs • Clearly documented (and CURRENT). – Input(s), task itself, output(s) – Sequencing, handoffs, performance expectations for each step (time & quality). – Standardized, error-proofed and waste-free. • 3-5 defined KPIs (key performance indicators). • Designated process owner. • Continuously improved. 26

27. The Next Frontier… The Middle Manager 27

28. We need to shift our focus from managing people to managing processes. 28

29. Release Date: July 8, 2012 (McGraw‐Hill) Available for Preorder: www.bit.ly/km‐too 29

30. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopex Monthly newsletter: www.ksmartin.com/subscribe Connect with us: 30

The Outstanding Organization: The Power of Discipline

The Outstanding Organization: The Power of Discipline

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The Outstanding Organization: The Power of Discipline