daily management systems
TRANSCRIPT
4
Webinar Participants by IndustryAccountingAdvertising/Marketing/PRAerospace & DefenseBanking & SecuritiesCall Center OutsourcingConsultingEducationEnergy, Chemical, UtilitiesFinancial Services - OtherGovernment - FederalGovernment - State & LocalHigh Tech - HardwareHigh Tech - ISPHigh Tech - OtherHospital, Clinic, Doctor OfficeHospitality, Travel, TourismInsuranceManufacturingMedical, Pharma, BiotechOtherReal EstateRetailSoftware - FinanceSoftware - HealthcareSoftware - OtherTelecommunicationsTransportation & Distribution
Other
Government –State & Local
Healthcare
Consulting
Manufacturing
Pharma & Biotech Energy,
Chemical
Financial Services
Gov’t -Federal
STRATEGY & STRATEGY DEPLOYMENTWhere do we want to play and how are we going to get there?Focus and leadership alignment is key; reduce task switching.
PROCESS & WORK ENVIRONMENT DESIGNStrive for customer-defined value and waste elimination. Strong emphasis on standard work and visual management.
DAILY MANAGEMENTManaging to standard work and work standards.Assure that every employee can be successful.
PROBLEM SOLVING & CONTINUOUS IMPROVEMENTDisciplined approach that results in better and longer-lasting results.The people who do the work are the experts.
LEAN MANAGEMENT SYSTEMOVERVIEW
THINKING SYSTEM PROCESS & WORK
ENVIRONMENT DESIGN
STRATEGY & STRATEGY
DEPLOYMENT
PROBLEM SOLVING & CONTINUOUS IMPROVEMENT
DAILY MANAGEMENT
8
Management: Defined
To control or adjust a process to a plan or expectation.
To change the naturalcourse of a process to achieve a desired outcome.
Purpose of Daily Management Systems (DMS)
• Check regularly• Solve problems regularly• Support people in the process• Engage everyone in the process• Create a visual means to manage work
(and the work environment)
© 2017 The Karen Martin Group, Inc. 9
Achieving Consistent Performance: Standard Work
11
Standard work is the wedge that keeps us
from back-sliding
Improvement
Universal Law of Entropy
All systems need continuous maintenance to keep them operating at their optimal levels
Daily Management System (DMS) Components
Area Readiness
Performance to KPIs
Problem SolvingQuick Hits
Bigger Problems
Communication
Daily Management System (DMS) Components
Area Readiness
Performance to KPIs
Problem SolvingQuick Hits
Bigger Problems
Communication
Strategy Deployment (Hoshin Kanri)
• Builds consensus around TRUE NORTH
• Creates organization-wide focus on solving what matters most
16
Sample Strategy Deployment Annual Plan
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Nurs Fac CEO Fin MDs WH Corp Proc Anc
1 Bob Dana 2 3 3 3 2 3 3 1 1 3
2 Bob Michael 1 3 1 1 3 3 1 1 1
3 Rose Tim 3
4 Rose Josh 2 3 3 2
5 Howard Michael 1 3 2 3 3
6 Howard Mike 2 2 3
7 Neal l Joanne 3 1 1 2 3 3
8 Neal l James 1 2 3 3 3
9 Jim Howard 2 2
10 Jim Mark 2 3 3 3
11 Susan Susan 3 1 3 3 2
12 Susan Deidre 3 2 2 2
X = Planned
2018 Strategy Deployment Priorities
FY 2018 Goals43 Created:
Revised: Level of Effort/Involvement RequiredProblem to be Solved;
Initiative/PriorityMeasurable Objectives Executive
Owner
Board review dates:
Tactical Owner
● = Actual
Logo
Achieving Organizational Alignment: KPIs are linked
© 2017 The Karen Martin Group, Inc. 18
Division Division Division
Organization
Dept. Dept Dept Dept Dept DeptDept Dept
Daily Management System (DMS) Components
Area Readiness
Performance to KPIs
Problem SolvingQuick Hits
Bigger Problems
Communication
Example DMS Board Structure: Phase 1
© 2017 The Karen Martin Group, Inc. 22
KPIsArea Readiness
Quick Hits
R/G Status Owner Action
Method
Equipment
Supplies
Staff
Information
Date Problem Owner Action Resolve by R/G
Other
OtherBigger ProblemsDate Problem Owner Resolve by Status R/G
(KPI gap)
24
Standard work is the wedge that keeps us
from back-sliding
Improvement
Universal Law of Entropy
All systems need continuous maintenance to keep them operating at their optimal levels
DMS Prevents Backsliding
DMS is the set of practices that hold the standard in place
The DMS Mindset
25
From To• Vague goals• Reacting to chaos• Problems are hidden• Telling• Gut feel• Assuming the answers• Blaming people
• Measurable objectives• Managing to standards• Problems are visible• Coaching• Fact-based• Humility and curiosity• Checking process
27
From KPI-Based to Information Center: Level 2 Boards
Celebrations & Announcements
IdeasIn queue Doing Done
Production TargetsTime Goal Actual R/G Action
Project TrackingProject Name 1 2 3 4 R/G Action
DMS “Rules” & Recommendations: Huddle Management
• DAILY (except for very unusual circumstances)• 10-15 mins max; start & end on time• No problem solving in huddle• Rotate facilitation• Rotate attendance for areas that must have coverage
(and follow-up with those who didn’t attend; pics help!)
• Senior leaders should attend regularly• Invite other departments to attend
© 2017 The Karen Martin Group, Inc. 28
DMS “Rules” & Recommendations: Rolling Out
• Must have huddle standard work (with standard agenda)• Boards should be somewhat standardized but allow for some
flexibility• Boards must be visible (don’t hide them!)• Create pull, not push; cannot be a leadership mandate• Slow and steady: Roll out 1-2 areas at first; then 2-3 at a time• Create three levels of boards: 1 (work area/dept); 2
(division/biz unit); 3 “corporate”• Works far better with strategy deployment in place
© 2017 The Karen Martin Group, Inc. 29
Tricky Situations
© 2017 The Karen Martin Group, Inc. 30
DMS Obstacles Countermeasures
The “morning slam” • Two gatherings• Area readiness in morning; rest of huddle in
afternoon• Huddle midday; area readiness in afternoon
for following day
Shift work MUST huddle every shift!
Virtual teams iPad camera work; sending pics in advance; cardboard cutouts!
Other?
Other?
32
www.ksmartin.com/subscribeThis image cannot currently be displayed. This image cannot currently be displayed.
This image cannot currently be displayed. This image cannot currently be displayed.This image cannot currently be displayed. This image cannot currently be displayed.This image cannot currently be displayed.
This image cannot currently be displayed.This image cannot currently be displayed.This image cannot currently be displayed.
This image cannot currently be displayed.
January 2018!