The Six Critical Questions for Driving Enterprise Alignment & Lean Culture

Six Critical Questions For Driving
Enterprise Alignment And Lean Culture
Presenter: Tracy O’Rourke

Todays Session
u 

What are the six critical questions?

u 

Why are the six critical questions
important?

u 

How will these questions help
organizations on the Lean Journey?

u 

What activities and tools help
organizations answer the six critical
questions?

Copyright 2013 Integris Performance Advisors

2

A Poll: The Lean Journey
u 

Not started on the Lean Journey yet or
less than a year?

u 

1-4 years?

u 

On the journey over 4 years?


3

“The work of government is noble. The people of government
are amazing. The systems of government are a mess.”
Ken Miller, author of “We Don’t Make Widgets”
4

Creating A False Start

An Approach That Is All Too Common

Train a bunch of “experts” –
Lean Leaders, Green Belts etc. –
so they can solve all your problems.


5

Simpliﬁed Shingo House

CUSTOMERFOCUSED
RESULTS

ENTERPRISE ALIGNMENT

The Four
Dimensions of
Lean Culture

CONTINUOUS IMPROVEMENT

CULTURAL ENABLERS


6

Every Dimension Connects Lean Principles



CULTURAL ENABLERS


Create Value for
the Customer

• 

CUSTOMERFOCUSED
RESULTS

• 

Consistency of
purpose

• 

Think
Systematically

• 
• 

Focus on Process
Assure Quality at
the Source

• 

Lead With Humility

• 

Respect Every
Individual
7

An Integrated Approach to Implementing Lean

CUSTOMERFOCUSED
RESULTS



CULTURAL ENABLERS


Each Dimension
Supports the
Others, and is Built
Upon the Others.
Real and Sustained
Lean Culture
Requires An
Integrated
Approach Across
All Four
Dimensions
8

Dimensions

Roadmap Example:

Timeline

9

This Session: Focusing on Enterprise Alignment

CUSTOMERFOCUSED RESULTS



CULTURAL ENABLERS

Having a Strategic
Management
System aligns the
entire organization.

10

Why is Enterprise Alignment Important?


11

Hoshin Kanri

What is it?
A Japanese term Hoshin "compass needle“ or

"direction". Kanri means "management" or "control"
Hoshin Kanri is two-fold:
1) A systematic planning methodology for deﬁning
long-range key entity objectives. These are
breakthrough objectives that typically extend two to
ﬁve years.
2) Managing the day-to-day work required to run the
business successfully.

12

Continuous Improvement Efforts

The training
ﬁrst approach,
can cause false
starts due to
lack of planning

• 
• 
• 
• 

Plan

• 
• 
• 
• 
• 

Develop Vision
Develop Mission Statement
Create Organizational Values
Establish Outcomes, Goals and
Initiatives
Select Measures
Develop Scorecards, Dashboards
Filter and Prioritize Opportunities
Train Lean Leaders
Select Processes

Do
Check
Act


13

Six Critical Questions

1
2
3

Who are we and where are we going as an
organization?
How do we measure performance against what’s
important?
How are we doing?

4

How do we decide where to focus our eﬀorts &
allocate resources?

5

What actions do we take to improve our ability to
achieve our desired outcomes?

6

How do we sustain improvements and ensure our
eﬀorts are making an impact?


14

Question 1:
Who are we and where are we going as an organization?

Vision, Mission, Values, and Outcomes, Goals Initiatives

15

True North
u 

A Vision: What the future will look like and what the
company will become
“What do you want to be when you grow up?”

u 

The Mission: a concise statement developed from
the customer's perspective that answers three
questions:

u 

What do we do?

u 

How do we do it?

u 

For whom do we do it?


16

Organizational Values: Southwest

We operate with a
Warrior Spirit,
a Servant’s Heart,
and a Fun-LUVing
Attitude.


17

Organizational Values: Toyota
Customer First: We forge partners with our
customers and strive to exceed their
expectations.
Global Perspective : Learning from the best in the
world, we aim to become the best in the world.
Encouraging Teamwork: We recognize the human
worth of each individual and collaborate to
achieve
Welcoming New Challenges: Unbound by
convention, we embrace the challenge of
creation.
Encouraging Professional Excellence: We develop
our strengths and think and act responsibly.

18

Toyota knows that the key to
successful Lean transformation
is culture…

…and culture cannot be copied.


19

Organizational Values Reﬂection

u 

Does your organization have values?


20


u 


u 

If so, do employees breathe the values?


21


u 


u 

If so, do employees breathe the values?

u 

Do leaders enforce the values?


22

Commit & Defend Organizational Values

“When I started my organization,
nobody told me that half of my energy
would be spent building it,
and the other half would be spent
protecting and defending it against all of
the things other people wanted it to be.”

-Excerpt from Boundaries for Leaders
By Dr. Henry Cloud

23

How Do We Achieve the Vision?


24

City of SeaTac Clarity Map
Key Measures
•  Resident satisfaction
•  Progress on City
Council goals
•  Community
engagement
•  Employee alignment
•  Employee capability
•  Employee engagement
•  Long term ﬁnancial
stability
•  External ﬁnancial
validation
•  Lifecycle cost of assets
•  Economic development
index
•  Compliance index


26

Clarity Map

Document Identifier

2727

“The essence of strategy is
choosing what not to do. ”

- Michael E. Porter
28

Organizational Reﬂection
Based on the organization’s mission, vision, values, goals and initiatives

Stop
What should the
leadership team
& organization
STOP doing?

Start

Continue

What should the
leadership team
& organization
START doing?

What should the
leadership team
& organization
CONTINUE
doing?


29

Question 2:
How do we measure performance against what is important?

Scorecards, Dashboards and Daily Management Boards

30

Enterprise Alignment Implementation
Organization
Strategic Success
√ Outcome Measures
Day to Day Success
√ Output Measures
√ Process Measures

Department
Strategic Success
Day to Day Success
√ Output Measures

Team
Strategic Success
Day to Day Success
√ Output Measures

Individual
Strategic Success
Day to Day Success
√ Output Measures

Measurement at the strategic level…
fuels measurement at the tactical level


31

Enterprise Alignment Implementation
Organization
Strategic Success
Day to Day Success
√ Output Measures

Department
Strategic Success
Day to Day Success
√ Output Measures

Team
Strategic Success
Day to Day Success
√ Output Measures

Individual
Strategic Success
Day to Day Success
√ Output Measures

Catchball helps engage
employees and open
communication lines

32

Top Line Scorecard Sample


33

Organizational Value Streams
Ensuring
Lead
Managing Compliance Manage Employees
Change
Technology

Manage
Finances

Develop Products and Services
Sell Products and Services
Enroll Clients
Adjudicate Claims
Manage Relationships
Support Customers
INTERNAL CUSTOMERS

Manage
Vendors

E
X
T
E
R
N
A
L
C
U
S
T
O
M
E
R

Map core processes, identify customers and key measures

34

What Are Customers And Stakeholders?
Deﬁnitions:
u Customers:
— User: Individuals or organizations who use or receive
products, services from your process. Customers can be
internal or external to the organization
— Payer: Individuals or organizations who pay for your
products and services (usually external customers)
u Stakeholders:
— Any person or organization that has a stake or interest in
the outcomes of a product or service, but is not recipient
of these products and services, ie. policy interest

In many areas of government,
processes are designed for stakeholders

35

Core Process: Open Parks

Output
•  Ready to Use
•  Clean & Safe
•  Special Requests
completed

Customer/ Stakeholder
Customers:
•  Park Patrons
•  Sports Field Users

Stakeholders:
•  Maintenance (if safety)
•  Supervisor
•  Director

Requirements
•  Feel safe
•  Clean environment
•  Correct setup
•  Prepped field
•  Visually appealing
•  Park use #’s
•  Revenue
•  Reputation
•  City Comparable

Customer and Stakeholder Requirements
Copyright 2013 Integris Performancenot always the same!
are Advisors

36

What is a Dashboard?
Dashboard – A visual scorecard with primary measures
to be monitored on an ongoing basis

Create dashboards by
process not by Department/
Function

37

Daily Visual Management Boards
The goals of Daily Management Boards is to connect
people to the processes they perform, communicate
successes and issues in the work area and show goals
versus actual performances.


38

Tiered Metrics Connect the Organization
Organization
Strategic Success
Day to Day Success
√ Output Measures

Department
Strategic Success
Day to Day Success
√ Output Measures

Team
Strategic Success
Day to Day Success
√ Output Measures

Individual
Strategic Success
Day to Day Success
√ Output Measures

Balanced Scorecard
Process Dashboards

Daily Visual Management Boards
39

Question 3:
How are we doing?

Tiered Metrics Review

40

Process and Metrics Review
u 

Create a sustainable review process

u 

Calendar and Implement the process

u 

Quarterly Review: Balanced Scorecards

u 

Monthly and/or Weekly Review: Process Dashboards

u 

Daily Review: Daily Visual Management Boards

These elements should be items included in the
18 month Roadmap.

41

Question 4:
How Do We Decide Where to Focus Our Efforts and Allocate
Resources?
Project Types, Prioritization Tools

42

Organize to Mobilize
u  Prioritize
u  Filtering
u  Project

Opportunities

Tools

Prioritization

u  Allocate

Proper Resources

u  Portfolio

Management


43

What issues and opportunities
align with strategic intent?


44

Several Types of Organizational Efforts
u  Revolutionary:

year eﬀort

u  Evolutionary:

eﬀorts

Large breakthrough multi-

Mid-size cross-functional

u  Incremental:

Smaller day-to-day, quick hits
and departmental improvements


45

Impact Effort Matrix
u 

Filter based on two factors
— 
— 

u 

How much eﬀort is needed?
What is the impact?

Low

Useful in screening and
narrowing possibilities

Effort

High
Low


Impact

High

46

Impact Effort Matrix
Plot each option on scales for Impact and Eﬀort
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Impact
10.0
SAM Cleanup
6.3
Pole numbering
6.3
9.0
HATS too slow
4.8
8.0
Service order cycle Time
7.4
Eliminate wait time/long lines at service centers
6.9
7.0
Invalid usage (unbilled)
5.4
6.0
Clean up existing Service Orders
5.4
Erros in HATS on Service Orders/MP Orders
4.6
5.0
Multiple Systems
4.6
4.0
WSAs BTC + External Customers
5.4
Directory Updates
3.4
3.0
Disputes Clean up
5.3
2.0
Out of service customer cleanup
5.2
DSL disconnection
6.9
1.0
Vibe disconnection
6.3
Ease

Project Name

0.0


6

Ease & Impact Matrix

6

4

3.4

6.9
6.3
7.4

7

6

5

5.3
5.2
6.3
4.8
5.4

5

4

6.36.9

4

4.6 5.4
4.6

5

3

5

5

6
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Impact
6

47

Criteria Matrix

This matrix works well if project selection is
dependent on multiple criteria

48

Question 5:
What Actions Do We Take to Improve Our Ability to Achieve
Our Desired Outcomes?
Project Approaches, Project Implementation and Tracking

49

What is Process Improvement?

Time spent working
ON
the process
versus working
IN
the process
A Few Guidelines:
•  Focus on the process, not the people
•  Involve the people that work in the process
•  As a leader, don’t solve the problems for your people,
instead, help them grow a problem-solving muscle

50

Execute Process Improvement Efforts

Determine the approach:
u  Just

Do It

u  Gemba

Walks

u  Kaizen

Events

u  DMAIC

Projects


51

Question 6:
How Do We Sustain Improvements and Insure Our Efforts Are
Making an Impact?
Process Performance, Process Adherence, Leadership
Behaviors and Leader Standard Work

53

The Three Legged Stool of Sustainability

Process Performance

Lean Culture
Sustainability


54

Process Performance

Use Scorecards,
Dashboards and Daily
Visual Management
Boards to track
performance.

55

Process Adherence

Questions:
u 

Does the process exist?

u 

Are employees adhering to the process?

u 

Is the process suﬃcient in meeting customer needs?

How?
u 

Managing at a glance – Visual Management

u 

Make problems visible – Expose process abnormalities

u 

Conduct Gemba Walks – Observe and ask

u 

Look for non-standard work, labor, inventory, and output


56

Leadership Behaviors
u 

Commit and Defend Organizational Values
— 

u 

What you create and what you tolerate is the culture

Integrate the ﬁve practices of exemplary leadership
— 

Evidence backed correlation to employee engagement


57

Leadership
u 

Integrate Lean Leader Tools/Leader Standard Work
— 
— 
— 
— 

Scorecard & Dashboard Reviews
Gemba Process Walks
Reﬂection Meetings
Daily Management Boards

Primary Leader Role:
Build the problem-solving muscle of your people

58

Ownership For Sustainability

Who owns the
three-legged
stool of
sustainability?


59

Driving Enterprise Alignment

CUSTOMERFOCUSED RESULTS



Aligns goals and
measures throughout
the organization

CULTURAL ENABLERS

60


61

Six Critical Questions

1

Who are we and where are we going as an organization?

2

How do we measure performance against what’s important?

3

How are we doing?

4

How do we decide where to focus our efforts & allocate
resources?

5

What actions do we take to improve our ability to achieve our
desired outcomes?

6

How do we sustain improvements and ensure our efforts are
making an impact?


62

1

Who are we and
where are we going
as an organization?

2

How do we measure
performance against
what’s important?

3

How are we doing?

4

How do we decide where
to focus our efforts &
allocate resources?

5

What actions do we take
to improve our ability to
achieve our desired
outcomes?

6

How do we sustain
improvements and
ensure our efforts
are making an impact?

Balanced Scorecard
Customer, Financial Stewardship,
Process & Employee Outcomes

Process Dashboard
Lead & Lag Measures

63

Dimensions

Enterprise Alignment Actions on the Roadmap

Timeline

64

Shingo House of Operational Excellence

CUSTOMERFOCUSED
RESULTS



Each
Dimension
Supports the
Others, and is
Built Upon the
Others.

CULTURAL ENABLERS


65

Don’t say “ I can’t because…”
Say, “I could if…”
-Amy Besel
Department of Social and Health Services

66

IntegrisPA.com

Tracy O’Rourke
tracy.orourke@integrispa.com
67

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