© groundwork cheshire this project is supported by: resource – process - efficiency how to engage...

© Groundwork Cheshire

This project is Supported

by:

Resource – Process - Efficiency

How to engage & inspire the client

To be really effective and ultimately successful you need to be perceived by the client as having

• commitment,• knowledge, experience,• be able to communicate• be understood• have empathy• understand synergy• credibility• passion and exuding that passion - transfering the passion

in part or in whole to the audience, (the client(s), to inspire them into action.



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Process Efficiency

So how do you do this?

DEMONSTRATE AND SUPPORT THE POTENTIAL TO PROVIDE COST SAVINGS!!!!!!



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What needs to be improved

• Identifying what needs to be improved is always helpful ie some companies have the mission statement, some companies lead times ;some service levels.

• Companies tend to relate back to the financial plan with some non financial targets such as complaints, customer ppm, hours without a lost time accident etc.

• These targets are then communicated through to all and action the team through policy deployment. This allows activities to be tested on the question- does project X support any of the critical objectives?.



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Process Efficiency

Need to know what, where and how resources are used in the process and controls in place

– Do they have recognised Management procedures eg ISO– Is the process(es) a batch process or continuous or a

mixture– Do they recognize and apply best practice man machines

methods and materials?– Are there perceived bottlenecks, pinch points, rate

determining steps in the process

– Raw materials - records of amounts purchased/used, rejects &rework (plus analysis), complaints. Costs of major raw materials. QA records

– Energy & water- Bills, any monitoring and targeting, any analysis – major consumers of utilities

– Waste- how/where it arises - the amounts- is it avoidable and if unavoidable is it being managed?

– Transport- Systematic approach, logs of fuel use, training



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Process Efficiency

Input 100% Output 70%

Difference 30% HOW, WHY ,WHERE ,WHO,WHAT

Process(es)



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Where to start!

• “If you can’t measure it, you can’t

control it.

• If you can’t control it, you can’t improve

it.”



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Effective use of Short Interval Control (SIC) can be summarized in this way

• Processes are kept in control when - and only when - every member of the organisation accepts responsibility for identifying variances, then takes action to eliminate causes of problems.



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Some Basic and not so Basic Problem Solving Tools

• Brainstorming

• 5s – Sort-Set in order- Shine- Standardise- Sustain

• Histograms & Charts

• Process-Mapping

• Fishbone (Ishikawa) Diagrams

• Mapping – Visual - waste

• Causal-Loop Diagram

• Pareto Diagrams

• Attribute Charts

• Route Cause Analysis• Statistical Process Control – 6 sigma – Capability• SMED• Design of Experiments• Taguchi• Multi variable SPC

• Some tools are for driving improvements whilst the others are to stabilise the new state and managing abnormalities.



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The Power of “Why

The most powerful question a consultant can ask is:

WHY?

… ask enough times and you will uncover the root cause.



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Why Is The US Railroad Gauge 4’ 8.5”?

• Why? Because that's the way they built them in England.

• Why did the English build them like that? Because the first rail lines were built by the same people who built the pre-railroad tramways.

• Why did they use that gauge then? Because the people who built the tramways used the same jigs and tools that they used for building wagons, which used that wheel spacing.

• Why did the wagons have that particular odd wheel spacing? Well, if they tried to use any other spacing the wagon wheels would break on some of the old, long distance roads in England, because that's the spacing of the wheel ruts.

• So who built those old rutted roads? The first long distance roads in Europe (and England) were built by Imperial Rome for their legions - Roman war chariots first made the initial ruts, which everyone else had to match for fear of destroying their wagon wheels and wagons.

• Why were the chariots designed as they were? Imperial Roman war chariots were made just wide enough to accommodate the back ends of two war horses



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Why Is The US Railroad Gauge 4’ 8.5”?

Because that is the width of the backend of two horses!



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Definition: KPI

• A Key Performance Indicator (KPI) is a

metric which is used to measure the

performance of a critical or high

leverage activity or process



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Definition: KPI

KPI’s are like the dashboard of a car.

They provide the essential information

required to control the vehicle safely and

efficiently. They do not provide

information on all of the aspects of the

vehicle which could be measured



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Make sure you measure the right thing

• The FAA defines ‘on time departure’ as when the door shuts• …Not much fun if you’re a passenger delayed on the

runway for another hour



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Use both ‘Leading’ and ‘Lagging’ indicators

ExampleWhen losing weight, it is far more effective to count calories than to just focus on weight

Leading indicators measure activity (input) while the lagging indicators measure results (output)



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Map the KPI relationships using a tree

• KPI tree cascades each of the desired outcomes to the lowest level at which a KPI can be managed

$ / Unit Units

Cost $ Materials

Efficiency

Labor

Yield

Lagging Leading



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Example of a KPI tree

ThroughputVariable

CostFixedCost

Efficiency Availability Quality

ChangeoversProcess ControlGive-Away /Breakages

Org.EffectivenessEnergy

EfficiencyInfrastructure

LaborProductivity

MaterialsUsage

StoppagesOvertime /Contractors

Staffing /Shifts

Warehouse Inventory



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Set challenging goals

•Until Roger Bannister broke the four-minute mile, it was commonly believed that it could not be done

•After he broke the record, suddenly others began to be able to accomplish this as well

Why is that?



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Targets, budgets, plans, etc.

• *B.D.P. = Best Demonstrated Practice

KPI

B.D.P.*

Budget

Plan

Base

Actual

Target



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Define ‘SMART’ Targets

S Specific

M Measurable

A Achievable

R Realistic

T Time Related



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KPI guidelines

• Should be limited to manageable number (12-25)• Should be used in balanced combinations or as ratios• Should be measured against a base, plan and target• Should be capable of being influenced by the person

monitoring it• Should be used as a tool to improve performance

and not to punish poor performance• Should be easy to understand



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The D.A.D.A. Cycle

Analyse

Decision

Action Facts

Data



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Stages In The Process

• Identify problems

• Record them

• Classify or group them

• Agree ranking criteria

• Rank and prioritise problems



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Basic Problem Solving Tools

• Brainstorming

• Histograms & Charts

• Process-Mapping

• Fishbone (Ishikawa) Diagrams

• Mind-Mapping

• Causal-Loop Diagram

• Pareto Diagrams



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Example: Pareto (80/20 Rule)

25

12

75

3 2

46

46%

71%

83%90%

95% 98% 100%

0

5

10

15

20

25

30

35

40

45

50

1 2 3 4 5 6 7

Category

Fre

qu

en

cy

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cu

mm

ula

tiv

e %



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Example: Fishbone (Ishikawa) Diagram

Men

EFFECT

Machines

Methods

Materials

Cause Effect

4 P’sPoliciesPlant

PeopleProcedure

s



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Introduction of the root cause analysis (RCA)

• Definition

– Root Cause Analysis (RCA) is a formal approach to solving a given

problem

– The use of RCA provides a structured method for developing the root

cause and enables identification of the best recommended solutions to

the problem

• When is a RCA needed?

– Any time there is an incident, or when you have identified a repetitive

problem that needs to be solved

• Who can use the RCA method?

– Everyone



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Root cause analysis in 5 steps

Step n°1:

agreement and scope problem.

Elements/Tools

Problem Statements

Timelines

Boundaries

Improvement Targets

Step n°2:

Collect data to establish a hypothesis, idea or theory of what

happened once the problem is defined.

Elements/Tools

Data collection plan

Collecting Data

Ishikawa

Affinity diagram

Pareto Charts

Flowcharts/ Process Maps

Step n°3:

Prove the hypothesis by taking the large list of potential causes and

identifying the most likely root cause(s)

Elements/Tools

Eliminate and rank causes

Ishikawa Diagrams

Pareto Charts

Flowchart/ Process Maps

Risk Analysis FMEA

Step n°4:

Generate a list of improvements to

address root causes of the identified issues

Elements/Tools

Assign Actions

Team Authorization

Define responsible entity and timeline

Prioritize (risk rank) task

Submit to RCA Team

Step n°5:

Ensure recommendations areimplemented through

assigning responsibilities tostakeholders and following

up in RCA Meetings

Elements/Tools

Follow up

Resource Evaluation

Communicate Results

Define the problem

Define the problem

Determine data needsDetermine data needs

Analyse the problem

Analyse the problem

Correctives Actions

Correctives Actions

Implementsolutions

Implementsolutions



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Ishikawa example

Represented by the RIBS of the skeleton

Use the “4M’s” / “4P’s” or others to categorize the causes

Add the causes to the rib

Add further riblets to show relationships between causes

Effects

Causes

POOR GAS

MILEAGE

METHODS

MANPOWER

MACHINERY

MATERIALS

Use wrong gears

Poor hearing

Radio too loud

Can’t hear engine

Drivetoofast

Impatience

Alwayslate

Under-inflated tires

Poor design

Difficult air valvestems

Fuel mix toorich

Mech. doesn’thave specs

Carburetoradjustment

No recordtire pressure

Poormaintenance

No awareness

Poor training

“When in Rome”

Poor drivinghabits

Wrong gastype

No owner’smanual

Don’t knowrecommendedpetrol type

No oil change

Improper lubricationDon’t know right oil

Wrong oilNo owner’s manual

$

$

POOR GAS

MILEAGE

METHODS

MANPOWER

MACHINERY

MATERIALS

Use wrong gears

Poor hearing

Radio too loud

Can’t hear engine

Drivetoofast

Impatience

Alwayslate

Under-inflated tires

Poor design

Difficult air valvestems

Fuel mix toorich

Mech. doesn’thave specs

Carburetoradjustment

No recordtire pressure

Poormaintenance

No awareness

Poor training

“When in Rome”

Poor drivinghabits

Wrong gastype

No owner’smanual

Don’t knowrecommendedpetrol type

No oil change

Improper lubricationDon’t know right oil

Wrong oilNo owner’s manual

$

$

Causes Effects



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CAUSE & EFFECT DIAGRAM reminders

• “4 M’s” “4 P’s”• Manpower Personnel• Machinery Plant• Materials Policies• Methods Procedures



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Affinity diagram

Étape 1

Brainstormed Post-Its Define the categories

© Celerant Consulting AB Voyager Project Packaging Montreal 2004 13

Affinity diagram – étape 3

I nspectioncollage

I n feedcase

Bottle grid

I n feedbottleStartup

Divisionbottle

PM 5S

Conducteur / résultant 0/3

3/2

0/3

2/2

3/4

3/3

6/0

© Celerant Consulting AB Voyager Project Packaging Montreal 2004 12

Affinity diagram – étape 2

Inspection codage

In feed case Bottle gridIn feed bottles

Bottle division

PM/5S Startup

Case code faul t.

V ideo j et/ need counter

Case not in

posit ionBot tl e in head

Laner jam, down

bot tle in lanerB ott le counter M echanical jam

Synchro between bott le et cartons @

stop and start

Case out feed

block. Inspection

case

Case not i n good

posit ion or

miss ing

B ott le on the gri dDrop bott les at

t he laner ent ry

Liner pusher t o

highUpper head jam

E nd and start of

product ion

Drop bott les at

t he laner ent ryBot tl e count fault

Drop bott lesB ad t ransfer at

the bott le

di vis ion (24)

Desaj us té

(Tim ing)

Vitesses

inégales au laner

B arres de

poussée croches

Bot tl e count,

detim ing

Clutch faul t (bad

posit ion and bad

tim ing)

M issi ng bott le fault

Stick with the rule of 3 - 6 words per Post-It, with a verb.



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Root Cause Analysis Roadmap

ProcessInputs Outputs

Su

pp

liers

Cu

sto

mers

Action log

Corrective Action

2 4 8 6 10

G

1 3 5 7 9A

BC

D

FE

JIH

G

Implementation

Define Problem

Analyze Data

Problem Statement:Goal:Business Case:Scope:Targeted improvementTimeline::

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

0020 Arret Scie (DetectionGenoux)

0001 Bp Arret Urgence 4pc12-2 0099 Trappe A Faute 0009 Convoyeur DeCompression Pas Baissee

0004 Blocage Entrée Courroie

Total

Determine Data Needs



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Supported by coaching the people in using specific tools...

Helping the people utilise the new measurements properly

Frequency histogram

Pareto histogram Decision scripts

Source fishbone

Root-cause fishbone

3

“these tools can eventually be automated to help people think and make decisions faster”



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Short Interval Control (SIC) Prevents Large Problems from Surprising the Organization

Frequent measurement prevents small problems from becoming big ones.



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What is a Short Interval Control (SIC)?

• SIC is part of a suite of tools to improve the efficiency of production focusing on a part of a process that is critical to the overall optimisation of the process

• A tool tracking a variable at the optimum interval. This variable will be whatever is most meaningful in optimising output and the reporting will be based on a variance against a standard.

• Typically developed and used by the people at the ‘front line’ of the process and recorded by hand. High performance results are achieved where the operator has the desire & passion to achieve the best results and quickest resolution of issues – thus behaviours are very important.

• Provides a good base for communication tool between operators on shift change



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Designing the Short Interval Control (SIC) –What are the principles?

• Find or develop experts who know about process control charts.

• ‘Get them to do it!’ - Coach the operators through drawing up the control chart, identifying the appropriate interval for measuring the variable, and establishing the desired parameters for operation (across shifts!).

• Don’t design the ‘perfect’ control chart - go with one that does the job; upgrade at a later date

• Make a commitment to reviewing the performance regularly and consistently



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Coaching the Installation of a SIC

Working with Operators, define key variables to monitor

Coach operators in designing SIC

Get operators to agree on targets / parameters; communicate

across shifts

Set aside several hours each day to sit with operators to install SIC

Question operating norms, changes to rates, challenge non-

compliance, reward good operation, use problem-solving

tools to help remedy poor operation - LISTEN

Agree performance

standard

Agree performance

standard

Listen / Follow up

Listen / Follow upChallengeChallenge

Support / TrustSupport / Trust



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Short Interval Control Tool

• Short Interval Control (SIC) mechanism is a simple tool

• Helps staying on track towards goal• SIC is utilizing the decision loop so frequently that

any deviation from progress towards goal is corrected early enough

DECISION (Plan)

ACTION (Do)

DATA (Check

)

ANALYSIS (Act)



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Description of Short Interval Control

• If the indicator is in the red zone, the process is out of control. Take corrective action. Call the supervisor.

• If the indicator is in the yellow zone, take preventive measures to avoid the process going out of control.

• Check the adjustments or call the supervisor, electrician, mechanic.

• If the indicator is in the green zone, the process is under control Congratulations!

6 AM 7AM 8AM 9AM 10AM 11AM 12AM 1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PM 9PM 10PM 11PM 12PM 1AM 2AM 3AM 4AM 5AM

25 min

20 min

5 min

0

10 min

15 min

Short interval control (SIC)

Follow: Follows the number of stops in minutes on the palletiser after accumulation or bad pallets (Follow every hour)

PalletiserPlace:Line: 3 - 4 - 5

Time

Number of the pallatiser

What is SIC?SIC is used to measure short-term changes in the process.It serves as a tool for communicating process-performance during team changes.It is a tool that ensures corrective actions are taken before the process goes out of control.



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Example of Graphical SIC

6 AM 7AM 8AM 9AM 10AM 11AM 12AM 1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PM 9PM 10PM 11PM 12PM 1AM 2AM 3AM 4AM 5AM

Operator Initials

Time

10 min

8 min

2 min

0

4 min

6 min

Short Interval Control (Example)

Line:Area:

Follow:

5

Shift Shift Shift

Corrective Action

Corrective Action - tendency increasing

Preventive Action

Preventive Action

Corrective Action



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What’s SMED?

Single Minute Exchange of Dies

CYCLE TIME COMPRESSION AND

IMPROVEMENT IN QUALITY



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PIT CREW

• Tyres ready, tools in place, fast-flow fuel tank is full

• Co-ordinated crew activity - four new tyres - fill fuel tank - wipe windshield - water for driver

• Car out of pit - get ready for next pit stop



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IMPROVEMENTS IN PIT STOP TIMES

0

50

100

150

200

250

TIM

E I

N S

EC

ON

DS

1950 1960 1970 1980 1990

YEAR



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Definition of changeover time

The time, the last good product was produced on the old set-

up, to the time, the first acceptable product is made on the

new set-up (after adjustments).”



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CAUTION - What is the changeover time?

• to externalchangeov

er

internalactivity first pass

yieldrework

last good piece of old

productchangeover

start of first goodpiece of new product

re set-upduring

processof part



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Parallel OperationsParallel Operations



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How can adjustment time be eliminated?

RunInternalsExternals

RunInternalsExternals



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Smooth & Simplify

• Eliminate adjustments - standardize location points, settings of adjustment, utilize visible centerlines and numerical scales

• Use functional clamps and one-turn, one-motion, interlocking methods

• Determine the best way to organize, maintain, and store tools and materials.

• Determine the right amount of tools and materials.

– And...



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Smooth & Simplify

• “Slick” loading and unloading of dies and fixtures• Determine and record key dimensions• Utilize a least common multiple system• De-skill most steps• Utilization of appropriate technology - standard

base plates, chamfered pins, t bolts, v fixtures, limit switches to set heights and lengths, upgraded clamping methods

• Mechanize - utilize forklifts, overhead cranes, bolsters, remote control tightening devices, electric drives



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BENEFITS of SMED

• Quicker set-ups - reduced downtime• Increased uptime - increased production and throughput• Higher equipment availability• Improved competitiveness - job security• Improved safety - reduced risk of injury & physical strain• Improved customer service and delivery• Reduced costs and improved quality• Reduced lot sizes• Reduced scrap and repair• Reduced work in process inventory

(WIP)• Reduced finished goods inventory /

need for storage space• Reduced obsolescence• Improved housekeeping• Simplified production scheduling• Increased manufacturing flexibility



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SMED do’s and don’ts

DO• Start on bottlenecks• Reduce batch sizes in line with set-up reductions• Organize the workplace• Make checklists• Focus on internal set-ups first• Eliminate / reduce adjustments• Develop one-touch clamping• Utilize fool-proofing• Standardize methods



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SMED do’s and don’ts

DON’T• Tackle all machines / products at once• Underestimate time required• Expect instant results



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What is a One Point Lesson?

• It is a short Standard Operating Procedure (SOP) with visual elements written in one page

• It is a tool to communicate knowledge and skill about the equipment amongst members of the team.

• A tool to raise the knowledge and skills of the team in a very short period of time.

• If you find a better way of doing something you can ensure that everyone knows about it by using a One Point Lesson (OPL).

• If you have found a way of solving a problem and want to ensure that next time the problem is encountered everyone knows, then tell the team using an OPL (but also update the correlated SOP



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What is a One Point Lesson?

• A One Point Lesson is one of the easiest and cheapest methods of reducing and avoiding downtime.

• It is a complement for the SOP in order to facilitate the communication and the training.

• One Point Lesson NEVER REPLACE THE SOP



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How is a One Point Lesson generated?

• One member of the team prepares a sheet, which describes the problem and solution in simple language. Illustrate it with pictures if possible.

• The team discusses the OPL, formally or informally, and incorporate any ideas.

• The OPL is approved by line management to ensure it is appropriate and safe.

• The OPL is published and read by all members of all shift teams. Individuals sign to acknowledge that they have read the OPL.



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The One Point Lesson Form (Example



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How to achieve Behavioral Ownership

• Create a sense of urgency so that people start telling each other, “Let’s go, we need to change things!”

• Pull together a guiding team powerful enough to guide a big change

• Create clear, simple, uplifting visions and sets of strategies

• Communicate the vision through simple, heart felt messages sent through multiple channels so that people begin to buy into the change

• Empower the people by removing obstacles to the vision• Create short-term wins that provide momentum• Maintain momentum so that wave after wave of change is

possible• Make change stick by nurturing a new culture

© groundwork cheshire this project is supported by: resource – process - efficiency how to engage...

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