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Clarity First: Process & Performance
2
Have you taken
The Clarity Quiz?
www.clarityfirstquiz.com
3
Clarity:
What it is
Why you need it
How to get it
www.clarityfirstbook.com
https://www.amazon.com/Clarity-
First-Organizations-Outstanding-
Performance/dp/1259837351
Clarity First Summer Webinar Series
4
www.TKMG.com/webinars
1 2
4 5
5
PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM
SOLVING
PURSING ORGANIZATIONAL CLARITY:
THE FIVE P’S
www.clarityfirstbook.com
6
PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM
SOLVING
THE FIVE P’S
7
Work: Degrees of Granularity
Value Stream
Process Process Process
Step StepStep
Macro
Perspective
• Define strategic
direction
(“what”)
• Heavy leadership
involvement
• Value Stream
Mapping
Micro
Perspective
• Identify the
tactical “how”
• Heavy frontline
involvement
• Metrics-Based
Process
Mapping
Work: Degrees of Granularity
8
Begin Discussions
with Prospective
Client
Negotiate &
Execute
Contract
Communicate
Plan Options &
Enrollment Process
Enroll
Employees
Service
the Contract
Value
Stream
Process
Negotiate
pricing
Approve
Negotiate
terms
Approve
Execute
Contract
CUSTOMER
99
10
Improvement Roles
Who? Accountability Management Practice
Senior Leaders What • PDSA Problem Solving
• Hoshin Planning
(aka Strategy Deployment)
• Value Stream Management
Frontlines How • PDSA Problem Solving
• Daily management, kaizen
• Projects (kaikaku)
StrategicTactical
Middle
Management
11
Function FunctionFunctionFunction
Core Value Stream
Support Value Stream
Silo-Centric vs. Value Stream Thinking
Value
stream
segment
Value
stream
segment
12
Value Stream Families Share Common Process Steps
Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8
X X X X X
X X X X X
X X X X X X X X
X X X X X
X X X X X
X X X X X X X X
X X X X
X X X X X X X
X X X X X
Value
Stream
#1
1313
© 2015 The Karen Martin Group,
Inc.
1414
15
Value Stream Mapping Benefit:
Seeing the Whole
15
Value Stream Mapping enables a
mapping team to get ABOVE the work
16
Value Stream Thinking ≈ Systems Thinking
System Efficiency = Optimal Value Stream Performance
Departmental Efficiency ≠ System Optimization
17
Understand Value Stream Performance
1818
Visualize the entire cycle of value delivery on a single sheet of paper
18
1919
© 2016 The Karen Martin Group,
Inc.
20
Visualize Information Management Problems
21
Sample Discoveries During Value Stream Analysis
• Current KPIs serve as perverse incentives driving the wrong
• Backlogs are far larger than assumed—and not going down.
• Quality is far lower than believed.
• Timestamps don’t reflect reality.
• Sales and operations work at cross-purposes.
• Significant and dangerous problems have been hidden.
• Customers aren’t nearly as happy as leaders believe.
• There’s far more expensive waste in the system than believed.
• Company isn’t collecting nearly as much revenue as it
could/should be.
• The data sucks!
22
It’s not about the map.
It’s about the conversations,
insights, decisions, alignment,
and commitment to action
that mapping generates.
23
CLEAR PROCESSES
 Documented
 Current
 Followed
 Consistently monitored
 Regularly improved
24
Well-Defined Processes
 Safe
 Efficient and effective
 Easy to understand
 Easy to perform successfully
pp 111-114, Clarity First
25
Value Stream Map ≠ Process Flow Chart
26
Value Stream Map ≠ Swim Lane Process Map
Benefits
Administrator
Receive
negative
drug
screen
results
Complete
“New Hire
Approval”
form; send
to recruiter
Recruiter
Sign “New
Hire
Approval”
form
Recruiter
Sign “New
Hire
Approval”
form
Set up
employee
in SAP;
notify
hiring
manager
Hiring
Manager
Request
laptop on
“New Hire
Equip.
Request”
form
IT
Manager
Approve
“New Hire
Equip.
Request”
27
0
1
0
15
6
-1
0
Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
1
Fax PO to Sales
Rep
0 0 45%
2
Review PO;
clarify with
customer as
needed
20 2 90%
Fax PO to
warehouse
10 4 90%
5
6
Check inventory
levels; notify
Sales Rep re:
status
5 4 95%
Fax PO to Sales
Rep
5 0.33 90%
0 20 10 5 5
0 2 4 4 0.33
45% 90% 90% 95% 90%
0 20 10 5 5
Rolled %C&A
Critical Path LT
Total PT
Critical Path PT
5431 2
Mary Townsend
Hours Worked per Day Sally Dampier
Occurrences per Year Sam Parks
Current State Metrics-Based Process Map
Dave Morgan25-Jun-08
8 Facilitator
Process Details
Michael Prichard
Order FulfillmentProcess Name
Specific Conditions Domestic orders through sales force
37,500
Date Mapped
Sean Michaels
Sales Rep
Ryan AustinDiane O'Shea
Mapping Team
LT Units
Function /
Department
PT Units
Step # ►
Customer
Finance
Warehouse /
Shipping
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Metrics-Based
Process Mapping
Key metrics:
• Lead time (LT)
• Process time (PT)
• Percent Complete & Accurate (%C&A)
28
Standard Work for ALL Key Processes
Current best known
way to operate that
minimizes errors,
maximizes productivity,
and allows all workers
to be highly successful.
29
Standard work and sustaining improvement
Standard work is the
wedge that keeps us
from back-sliding
Process
Process
Improvement
Universal law of Entropy
All systems need
continuous maintenance to
keep them operating at
their optimal levels
30
Standard Work for Everything
Standard Work Best Practices
• Includes work standards
• Highlights new process components or
common areas where errors occur
• Link to job aids (checklists, cheat sheets, etc)
• Physical copies at the gemba
• Sole owner accountable for measurement &
management
• Supervisor accountable for checking
• Continuous improvement via daily
management vs. process audits
31
TKMG’s Current Standard Work Template
32
PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM
SOLVING
THE FIVE P’S
33
34
35
So much data, so little information….
• Three types of data:
• Demand data
• Status data
• Outcomes data (Key Performance Indicators)
36
Demand Data: Understanding the Current State
37
0
2
4
6
8
10
12
14
16
18
20
0
5
10
15
20
25
5:00
5:15
5:30
5:45
6:00
6:15
6:30
6:45
7:00
7:15
7:30
7:45
8:00
8:15
8:30
8:45
9:00
9:15
9:30
9:45
10:00
10:15
10:30
10:45
11:00
11:15
11:30
11:45
12:00
12:15
12:30
12:45
13:00
13:15
13:30
13:45
14:00
14:15
14:30
14:45
15:00
15:15
15:30
15:45
16:00
16:15
16:30
16:45
AverageStaffingLevel
AverageDailyVolume
Customer Arrival Times
Are you staffing to demand?
38
39
40
41
Status Data
•Number of projects completed
•Percentage of business applications pending
•Number of engineering projects in queue
•Number of patients in the waiting room
•Number of calls holding
•Etc.
42
KPI Boards: How are we doing?
Balanced
View
• Operational &
financial
• Critical to
customer &
critical to
business
43
Sample Daily Management Board Structure (Phase 1)
© 2017 The Karen Martin Group, Inc.
43
KPIsArea Readiness
Quick Hits
R/G Status Owner Action
Method
Equipment
Supplies
Staff
Information
Date Problem Owner Action Resolve by R/G
Other
OtherBig Problems
Date Problem Next Step Owner Resolve by Status R/G
44
44
Sample Daily Management Board Structure (Phase 1)
45
46
47
48
48
49
Daily Huddle - Surfacing Performance Gaps on a Daily Basis
50
50
51
www.clarityfirstquiz.com
52
www.clarityfirstbook.com
What could you
accomplish with
greater clarity?

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Clarity First: Process & Performance

  • 2. 2 Have you taken The Clarity Quiz? www.clarityfirstquiz.com
  • 3. 3 Clarity: What it is Why you need it How to get it www.clarityfirstbook.com https://www.amazon.com/Clarity- First-Organizations-Outstanding- Performance/dp/1259837351
  • 4. Clarity First Summer Webinar Series 4 www.TKMG.com/webinars 1 2 4 5
  • 5. 5 PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM SOLVING PURSING ORGANIZATIONAL CLARITY: THE FIVE P’S www.clarityfirstbook.com
  • 6. 6 PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM SOLVING THE FIVE P’S
  • 7. 7 Work: Degrees of Granularity Value Stream Process Process Process Step StepStep Macro Perspective • Define strategic direction (“what”) • Heavy leadership involvement • Value Stream Mapping Micro Perspective • Identify the tactical “how” • Heavy frontline involvement • Metrics-Based Process Mapping
  • 8. Work: Degrees of Granularity 8 Begin Discussions with Prospective Client Negotiate & Execute Contract Communicate Plan Options & Enrollment Process Enroll Employees Service the Contract Value Stream Process Negotiate pricing Approve Negotiate terms Approve Execute Contract CUSTOMER
  • 9. 99
  • 10. 10 Improvement Roles Who? Accountability Management Practice Senior Leaders What • PDSA Problem Solving • Hoshin Planning (aka Strategy Deployment) • Value Stream Management Frontlines How • PDSA Problem Solving • Daily management, kaizen • Projects (kaikaku) StrategicTactical Middle Management
  • 11. 11 Function FunctionFunctionFunction Core Value Stream Support Value Stream Silo-Centric vs. Value Stream Thinking Value stream segment Value stream segment
  • 12. 12 Value Stream Families Share Common Process Steps Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Value Stream #1
  • 13. 1313 © 2015 The Karen Martin Group, Inc.
  • 14. 1414
  • 15. 15 Value Stream Mapping Benefit: Seeing the Whole 15 Value Stream Mapping enables a mapping team to get ABOVE the work
  • 16. 16 Value Stream Thinking ≈ Systems Thinking System Efficiency = Optimal Value Stream Performance Departmental Efficiency ≠ System Optimization
  • 18. 1818 Visualize the entire cycle of value delivery on a single sheet of paper 18
  • 19. 1919 © 2016 The Karen Martin Group, Inc.
  • 21. 21 Sample Discoveries During Value Stream Analysis • Current KPIs serve as perverse incentives driving the wrong • Backlogs are far larger than assumed—and not going down. • Quality is far lower than believed. • Timestamps don’t reflect reality. • Sales and operations work at cross-purposes. • Significant and dangerous problems have been hidden. • Customers aren’t nearly as happy as leaders believe. • There’s far more expensive waste in the system than believed. • Company isn’t collecting nearly as much revenue as it could/should be. • The data sucks!
  • 22. 22 It’s not about the map. It’s about the conversations, insights, decisions, alignment, and commitment to action that mapping generates.
  • 23. 23 CLEAR PROCESSES  Documented  Current  Followed  Consistently monitored  Regularly improved
  • 24. 24 Well-Defined Processes  Safe  Efficient and effective  Easy to understand  Easy to perform successfully pp 111-114, Clarity First
  • 25. 25 Value Stream Map ≠ Process Flow Chart
  • 26. 26 Value Stream Map ≠ Swim Lane Process Map Benefits Administrator Receive negative drug screen results Complete “New Hire Approval” form; send to recruiter Recruiter Sign “New Hire Approval” form Recruiter Sign “New Hire Approval” form Set up employee in SAP; notify hiring manager Hiring Manager Request laptop on “New Hire Equip. Request” form IT Manager Approve “New Hire Equip. Request”
  • 27. 27 0 1 0 15 6 -1 0 Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A 1 Fax PO to Sales Rep 0 0 45% 2 Review PO; clarify with customer as needed 20 2 90% Fax PO to warehouse 10 4 90% 5 6 Check inventory levels; notify Sales Rep re: status 5 4 95% Fax PO to Sales Rep 5 0.33 90% 0 20 10 5 5 0 2 4 4 0.33 45% 90% 90% 95% 90% 0 20 10 5 5 Rolled %C&A Critical Path LT Total PT Critical Path PT 5431 2 Mary Townsend Hours Worked per Day Sally Dampier Occurrences per Year Sam Parks Current State Metrics-Based Process Map Dave Morgan25-Jun-08 8 Facilitator Process Details Michael Prichard Order FulfillmentProcess Name Specific Conditions Domestic orders through sales force 37,500 Date Mapped Sean Michaels Sales Rep Ryan AustinDiane O'Shea Mapping Team LT Units Function / Department PT Units Step # ► Customer Finance Warehouse / Shipping Seconds Minutes Hours Days Seconds Minutes Hours Days Metrics-Based Process Mapping Key metrics: • Lead time (LT) • Process time (PT) • Percent Complete & Accurate (%C&A)
  • 28. 28 Standard Work for ALL Key Processes Current best known way to operate that minimizes errors, maximizes productivity, and allows all workers to be highly successful.
  • 29. 29 Standard work and sustaining improvement Standard work is the wedge that keeps us from back-sliding Process Process Improvement Universal law of Entropy All systems need continuous maintenance to keep them operating at their optimal levels
  • 30. 30 Standard Work for Everything Standard Work Best Practices • Includes work standards • Highlights new process components or common areas where errors occur • Link to job aids (checklists, cheat sheets, etc) • Physical copies at the gemba • Sole owner accountable for measurement & management • Supervisor accountable for checking • Continuous improvement via daily management vs. process audits
  • 32. 32 PURPOSE PRIORITIES PROCESS PERFORMANCE PROBLEM SOLVING THE FIVE P’S
  • 33. 33
  • 34. 34
  • 35. 35 So much data, so little information…. • Three types of data: • Demand data • Status data • Outcomes data (Key Performance Indicators)
  • 36. 36 Demand Data: Understanding the Current State
  • 38. 38
  • 39. 39
  • 40. 40
  • 41. 41 Status Data •Number of projects completed •Percentage of business applications pending •Number of engineering projects in queue •Number of patients in the waiting room •Number of calls holding •Etc.
  • 42. 42 KPI Boards: How are we doing? Balanced View • Operational & financial • Critical to customer & critical to business
  • 43. 43 Sample Daily Management Board Structure (Phase 1) © 2017 The Karen Martin Group, Inc. 43 KPIsArea Readiness Quick Hits R/G Status Owner Action Method Equipment Supplies Staff Information Date Problem Owner Action Resolve by R/G Other OtherBig Problems Date Problem Next Step Owner Resolve by Status R/G
  • 44. 44 44 Sample Daily Management Board Structure (Phase 1)
  • 45. 45
  • 46. 46
  • 47. 47
  • 48. 48 48
  • 49. 49 Daily Huddle - Surfacing Performance Gaps on a Daily Basis
  • 50. 50 50