the outstanding organization: the power of focus
TRANSCRIPT
The Outstanding Organization:The Power of Focus
Presenter: Karen Martin
WebinarApril 5, 2012
Visit http://vimeo.com/39887415 to listen to the recorded webinar for this material.
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: [email protected]
Twitter: @karenmartinopex
Facebook: www.facebook.com/karenmartinassoc
Karen Martin, Principal
July 2012
4
We need to improve
how we improve.
5
Business Results
Mindsets & Behaviors
6
Lack of Clarity
Lack of Focus
Lack of Discipline
Lack of Engagement
The Outstanding Organization
7
Business Results
CHOS
Prob
lem
Sol
ving
Conti
nuou
s Im
prov
emen
t
Resi
lienc
e
Core Capabilities
April 5 May 3 May 17
8
Lack of Clarity
Lack of Focus
Lack of Discipline
Lack of Engagement
Distraction Kills
9
Booz & Company Findings
10
No writtenpriorities
Conflicting priorities
Competing demands
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% 82%
64%
49%
11
“The difference between successful people and very successful people is that very successful people
say no to almost everything.”
— Commonly attributed to Warren Buffett
By Instilling Greater Focus, ThedaCare
Doubled its operating margins without layoffs during a period where 74%of hospitals reported reduced margins
12
ThedaCare reduces
initiatives from 31 to 4
Poll of 700+ Subscribers
70%Organization is attempting “more than”
or “significantly more than” we can reasonable handle.
13
Apple’s Success
14
“…saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much. We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.”
— Steve Jobs
15
FY '06 FY '07 FY '08 FY '09 FY '10 YTD '1180.0
87.0
94.0
101.0
108.0
115.0
84.886.3
90.693.0
95.2
105.9
Productivity (Pounds Produced / Hr Worked)
PactivImplementsStrategy De-
ployment
The Reality…
…You CAN’T do it all – and do it well.
16
17
The Myth of Multi-tasking
• Not possible to do two conscious activities at once.
• You are “switch-tasking.”• David Meyer – University of Michigan
– Engineers switched between projects 5-8 times per day
– Each switch added 20 minutes of process time– If switch only 5x per day, adds 1.7 hrs per day or 407
hours (10 weeks) of process time per engineer– In company w/ 15 engineers = 3 FTEs* worth of labor.
18
* FTE = Full Time Equivalent
Not Convinced? Try this timed experiment.
M 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
Round 1: Write M, 1, U, 2, L, 3, etc. Round 2: Write complete sentence, followed by numbers 1-18. Round 2’s time will be approximate half of Round 1’s.
19
FTU = Full Time Equivalent
Sporting Goods Manufacturer – Product Launches Per Year
Pre-Focus Post-Focus0
10
20
30
40
50
60
70
80 73
24
20
No additional resources; higher quality products launched
Rockwell Automation
Pre-Focus Post-Focus0
5
10
15
20
25
Projects Started
Projects Completed
3
12 12
20
21
Where We Need To Instill Greater FocusOrganization
Division/Business Unit
Department
Individual
Individual
Department
Individual
Individual
Division/Business Unit
Department
Individual
Individual
Department
Individual
Individual
Division/Business Unit
Department
Individual
Individual
Department
Individual
Individual
23
What is Your Improvement Strategy?
Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires…
24
• Clarity – about what really matters.
• Consensus – about what really matters.
• Courage – to actively choose to “not do” or “not do now.”
25
Improvement aligned with overarching business goals
Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires…
26
• Clarity – about what really matters.
• Consensus – about what really matters.
• Courage – to actively choose to “not do” or “not do now.”
Strategy Deployment Key Feature: Catchball
27
Executive Team
Senior Mgmt
Middle Mgmt
Frontlines
What?How?Who?
When?
What?How?Who?
When?
What?How?Who?
When?
What?How?Who?
When?
Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires…
28
• Clarity – about what really matters.
• Consensus – about what really matters.
• Courage – to actively choose to “not do” or “not do now.”
Annual Improvement Plan
1. Gain clarity around overarching business needs.2. List everything you could do (and that you are doing).3. Categorize into:
– “Must-do, can’t fail”– Maybe– Eliminate
4. Decide what you will do – prioritize “maybe’s”; gain consensus.
5. Create plan.6. Manage plan via weekly updates (may be able to
reduce to monthly reviews – but be careful!).
29
PACE Improvement Prioritization Grid
High LowAnticipated Benefit
Ease o
f Im
ple
men
tati
on
Diffi
cult
Easy
20
7
513
4 23
1
2289
2
10
16
11
6
12
1419
15
173
21
18
Figure 3.1 - Prioritization Grid
0.2 0.25 0.3 0.35 0.4 0.45 0.50
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Potential Benefit
Ease
of I
mpl
emen
tatio
n
Evolving Prioritization GridThird dimension: Urgency
Mathematical FormulaHighest priority
Annual Improvement Plan
32
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Integrate DHR BeginMS-1Ops
MS-2 Acct
CompleteBrad P
Complete New Travel Program
Roll-outBegin Complete Scott R Fred S
Roll-out Tablets to Installation
Begin & Complete
Brad P
Complete 360 Roll-out
Begin Complete Justin C Steve R
Lisa D, Marina,SM, Tech,Hal, Doug
Create Line-item P.O.s
Begin Complete Lisa B Mark C
Refinance credit facil ity
Begin Scott R
Complete ADP Roll-out
Begin Complete Gary O
Develop & Roll-out Handheld 2.2
BeginMS-1
Clean CodeMS-2Pilot
MS-3Go live
Not complete until 2013
Steve C TBD
Complete GPS Roll-out
Begin Complete Steve CRDs Cons., HR, Fleet
Complete "River" (One Soft) Roll-out
Begin Complete Lisa B
Develop Safety Program
Begin Complete Gary O
Tactical Owner
Others
Company ABCPriorities
FY 2012 FY 2013Priority
Exec Owner
33
To create new ideas is a gift, but to choose wisely is a skill.— Ryan Morgan
34
Release Date: July 8, 2012 (McGraw-Hill)
Available for Preorder: www.bit.ly/km-too
35
Karen Martin, Principal7770 Regents Road #635
San Diego, CA 92122858.677.6799
[email protected]: @karenmartinopex
For Further Questions
Monthly newsletter: www.ksmartin.com/subscribe