Recorded webinar: http://bit.ly/M58raU Subscribe: http://www.ksmartin.com/subscribe To purchase the book: http://bit.ly/TOObk A fundamental lack of CLARITY is often at the root of inefficient processes, errors, poor decisions, and mistrust across the organization. Worse, it's one of the reasons why improvement approaches don't produce greater results and why organizational performance often lags behind desired targets. Gaining awareness about how often we create and tolerate ambiguity is the first step to making the necessary behavioral changes across organizations. In this webinar, you'll learn not only how to recognize this insidious problem, but also how to change your organization's course so that clear information that people can act upon and the unvarnished truth becomes the rule rather than the exception. Outstanding organizations operate this way. So can you.

1. The Outstanding Organization:
The Power of Clarity
Presenter: Karen Martin
March 22, 2012

2.  Founder of Karen Martin & Associates
(1993)
 Thought leader in applying Lean to
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
Karen Martin,
Principal

3. 2012 Webinars
Date Topic
March 22 The Outstanding Organization: The Power of Clarity
April 5 The Outstanding Organization: The Power of Focus
May 3 The Outstanding Organization: The Power of Discipline
May 17 The Outstanding Organization: The Power of Engagement
Release Date: July 8, 2012
(McGraw-Hill)
Available for Preorder:
www.bit.ly/km-too
3

4. Success with Improvement
2001 – The Economist
70%
63%
60%
50%
40%
30%
20% 17% 20%
10%
0%
None Temporary Lasting
4

5. …A Decade Later
2010 – Accenture
80%
70%
69%
60% 58%
50%
40%
33%
30%
20%
10%
0%
Needs re‐evaluation, Minimal “Mixed” to
restart or complete financial “disappointing”
makeover impact results
5

6. To Err is Human
Institute of Medicine, 1999
Up to 98,000 deaths
annually due to
medical errors.
8th leading cause of
death in U.S.
6

7. Southwest Airlines’ Boeing 737 has
137 passenger seats.
7

8. 8

9. To Err is Human
Institute of Medicine, 1999
98,000 lives lost
Improvement Goal:
Reduce by 50%
in 5 years.
9

10. Not. Even. Close.
10

11. Something Is Terribly Wrong…
33% hospitalized
180,000 Medicare
patients are harmed;
patients die
7% result in
Progress has annually from
permanent injury or
been slow. medical errors.
death.
Journal of the American Office of the
Health Affairs
Medical Association 2009 Inspector General 2010
2005 Annual death 2010 No significant 2011
toll from change in rate of
medical errors preventable
is closer to errors.
200,000. New England Journal of
Dead by Mistake Medicine
Hearst Newspapers
Special Report
11

12. What are we missing?
12

13. We need to
improve
how we improve.
13

14. Mindsets & Behaviors
14

15. Lack of Clarity
Lack of Focus
Lack of Discipline
Lack of Engagement
15

16. The Outstanding Organization
Business Results
Problem Solving
Improvement
Continuous
Resilience
Core
Capabilities
CHOS
April 5 May 3 May 17
16

17. Lack of Clarity
Lack of Focus
Lack of Discipline
Lack of Engagement
17

18. Truth
Truth
Truth
Truth
Truth
Truth
Truth
Truth
Truth 18

19. 19

20. Ambiguity Abounds…
• Organization purpose & vision
• Customers & products
• Business goals & priorities
• Policies & procedures
• Roles & responsibilities
• Process performance
• Problem solving & decision making
• Communication
20

21. Who are your customers?
What problem does your good
or service solve?
21

22. What value do these consumer goods
companies provide to their customers?
22

23. You must indoctrinate
all new hires into who the
organization’s customers
are and what they value.
23

24. What is Your Improvement Strategy?
24

25. 25

26. How does work get accomplished?
And well how are we doing at it?
Customer
Process Process Process Process
1 2 3 4
LT LT LT LT
PT PT PT PT
LT = Lead (Throughput) Time
PT = Process (Touch) Time 26

27. Key Lean Metrics: Quality
• %Complete and Accurate (%C&A)
– % time downstream customer can
perform task without having to “CAC” the
incoming work:
• Correct information or material that was
supplied
• Add information that should have been
supplied
• Clarify information that should or could have
been clear
27

28. Processes MUST be Clearly Documented
Current State Metrics-Based Process Map
PT Units Process Details Mapping Team
Seconds Hours Process Name Order Fulfillment Dianne O'Shea Ryan Austin
Minutes Days Specific Conditions Domestic orders through sales force Sean Michaels Mary Townsend
LT Units Occurrences per Year 37,500 Sam Parks
Seconds Hours Hours Worked per Day 8 Paul Dampier
Minutes Days Date Mapped 26-Nov-07 Michael Prichard
Step # ? 6 7 8 9
Function /
Department Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT
Customer
Notify customer
Fax PO to
Sales Rep Approve PO 15 240 100% 5 20 100% when they can 15 300 95%
Account Manager
expect delivery
Review and
Account Manager approve PO; send 5 240 100%
to Order Entry
Enter order into
Order Entry 10 240
SAP
Finance / Credit

29. Every key process…
2-5 Key Performance Indicators
Monitored Continually
29

30. Gaining Clarity via Visual Management
30

31. “Going to the
gemba has been
life changing for
me as a leader.”
31

32. What problem are you trying to solve?
32

33. 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
Do 7. Refine and finalize countermeasure(s).
Experiment
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. Assess results. 33

34. Learning How to Clarify: A3 Management
A3
Report
The vital role of
the coach/mentor
34

35. Progressive Learning
35

36. Gaining Clarity: Avoid “Fuzzy” Words
• Near / close / far • High / low
• Short / long • Significant
• A lot / a little • Fast / slow
• Many / few / much • Young / new / old
• Bad / good • Expensive / cheap
• Heavy / light • Long / short
• Seems • “I think…”
36

37. Release Date: July 8, 2012
(McGraw‐Hill)
Available for Preorder:
www.bit.ly/km‐too
37

38. 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
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