This document provides an overview of the A3 problem-solving methodology. It discusses the key components of an A3 report including the plan, current condition, target condition, root cause analysis, countermeasures/implementation plan, effect confirmation, and follow-up actions. It also covers how to use A3 reports to develop organizational capabilities through coaching, mentoring, and leadership development. Some common pitfalls and success factors for effective A3 problem-solving are also outlined.

1. A3 Management: From Structured
Problem-Solving to Workforce
Development
Part II of II
Company
LOGO
1

2. Your Instructor
 Early career as a scientist; migrated to
quality & operations design in the mid-80’s.
 Launched Karen Martin & Associates in
1993.
 Specialize in Lean transformations in nonmanufacturing environments.
 Co-author of The Kaizen Event Planner;
co-developer of Metrics-Based Process
Mapping: An Excel-Based Solution.
 Instructor in University of California, San
Diego’s Lean Enterprise program.
© 2011 Karen Martin & Associates
Karen Martin,
Principal
Karen Martin &
Associates
2

3. PDCA: Plan Stage
Primary
problem-solving
role:
Investigator
© 2011 Karen Martin & Associates
3

4. PDCA: Do-Check-Act Stages
Primary
problem-solving
role:
Director
© 2011 Karen Martin & Associates
4

5. Common Components of the A3 Report
Plan
Theme: ________________________________
Background
Do, Check, Act
Owner: ________________________________
Countermeasures / Implementation Plan
Current Condition
Effect Confirmation
Target Condition / Measurable Objectives
Follow-up Actions
Root Cause & Gap Analysis

6. Common Components of the A3 Report
Plan
Theme: “What is our area of focus?”
Background
Do, Check, Act
Owner: Person accountable for results.
Countermeasures / Implementation Plan
• Problem statement
• What?
• Context - why is this a problem?
• Who?
• When?
Current Condition
• Where? (if relevant)
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
Target Condition / Measurable Objectives
• Diagram of desired state
• Measurable targets – how will we know that
the improvement has been successful?
Effect Confirmation
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing
measurement?
Follow-up Actions
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct
(root) causes
• Where else in the organization can this
solution be applied?
• How will the improved state be standardized
and communicated?

7. Building a Lean Enterprise
Process
Stabilization
Tools

8. Building a Lean Enterprise
Flow-Enabling
Tools

9. Once you know the root cause,
brainstorm and prioritize solutions
1. List relevant countermeasures.
2. Eliminate those that aren’t possible.

Regulatory, budgetary, resource availability,
system capability, etc.
3. Combine those that are similar.
4. Number the countermeasures sequentially.
5. Place countermeasures accordingly on the
PACE Prioritization Grid.
© 2011 Karen Martin & Associates

10. PACE Prioritization Grid
Easy
5
4
13
23
8
22
17
3
10
21
1
16
15
20
19
14
6
7
11
2
18
12
Difficult
Ease of Implementation
9
High
Anticipated Benefit
Low

11. Implementation /
Countermeasures
 Consider all options

Be innovate – be willing to challenge your paradigms & help
others challenge theirs.
 Make sure the countermeasure is directly very
specifically to the root causes.
 Make it clear exactly what will be done – by whom, by
when, where, how, in what order, etc.
 Aim for full implementation by a certain date.
 The problem owner’s role shifts to advocate and project
manager.
 Cross-functional involvement & consensus is a key
success factor.
© 2011 Karen Martin & Associates
11

12. Sample Implementation Plan
Task
Type
Accountable
KE
Implementation Schedule (weeks)
2
3
4
5
6
7
8
9
10 11 12
100
25
75
50
100
25
75
50
100
25
75
50
100
25
75
50
100
25
75
50
100
25
75
JDI
50
100
Modify weekly report.
25
75
KE
50
100
Create standard template.
25
75
KE
50
100
Create self-quality checklist.
25
75
Proj
50
100
Clearn up data base.
25
75
Create visual board to track KPIs.
Date
Complete
Mary W.
1
Progress
50
George S.
Sally R.
Sally R.
Bruce M.
9/22/2010
Type: JDI = Just do it; KE = Kaizen Event; Proj = Project
12

13. Sample A3
Countermeasures / Implementation Plan

14. Common Components of the A3 Report
Plan
Do, Check, Act
Theme: “What is our area of focus?”
Background
Owner: Person accountable for results.
Countermeasures / Implementation Plan
• Problem statement
• What?
• Context - why is this a problem?
• Who?
• When?
Current Condition
• Where? (if relevant)
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
Target Condition / Measurable Objectives
• Diagram of desired state
• Measurable targets – how will we know that
the improvement has been successful?
Effect Confirmation
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing
measurement?
Follow-up Actions
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct
(root) causes
• Where else in the organization can this
solution be applied?
• How will the improved state be standardized
and communicated?

15. The A3 Report:
Effect Confirmation
Tie confirmation directly to the target condition.
Define 2-5 key performance indicators (KPIs).
Determine ways to verify the effectiveness of the
countermeasures, one by one if possible.
Plan in advance for the data that will need to be
collected.
Identify who will help collect the data and how
frequently.
© 2011 Karen Martin & Associates

16. Common Components of the A3 Report
Plan
Theme: “What is our area of focus?”
Background
Do, Check, Act
Owner: Person accountable for results.
Countermeasures / Implementation Plan
• Problem statement
• What?
• Context - why is this a problem?
• Who?
• When?
Current Condition
• Where? (if relevant)
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
Target Condition / Measurable Objectives
• Diagram of desired state
• Measurable targets – how will we know that
the improvement has been successful?
Effect Confirmation
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing
measurement?
Follow-up Actions
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct
(root) causes
• Where else in the organization can this
solution be applied?
• How will the improved state be standardized
and communicated?

17. The A3 Report:
Follow-up Actions
How will you communicate the new process?
Who will monitor the process?
Which metrics will be used to measure ongoing
performance?
Look for similar processes within the department
and across the organization that can benefit from
these countermeasures
Ensure ongoing improvement – who will do this?
Share the wealth!

Communicate results across the organization and teach
others to problem-solve via the A3 process
© 2011 Karen Martin & Associates
17

18. Sample Effect Confirmation Option
Metric
Lead Time
Rolled First Pass Yield
Scrap
Labor Effort
Current
State
Projected Projected %
Actual
Future State Improvement Results *
Actual %
Improvement
36 Days
16 Days
56%
20 Days
44%
55%
75%
36%
80%
45%
$1.2 M
$0.5 M
58%
TBD
TBD
46%
3.8 FTEs
32%
5.6 FTEs 3.0 FTEs
* Measured by Sally Turner on 8/20/2010; monthly measurement;
improvement efforts continuing.
© 2011 Karen Martin & Associates
18

19. Effect Confirmation & Follow-up
19

20. Sample A3
Effect Confirmation & Follow-up Actions
Effect Confirmation
Follow-up Actions

21. When Are You “Done”?
21

22. Deming’s PDCA Cycle
Plan
Analyze
results &
take
appropriate
action
Develop
hypothesis
& design
experiment
Act
Do
Check
© 2011 Karen Martin & Associates
Measure
results
Conduct
experiment

23. Using A3 to develop
organizational
capabilities
© 2011 Karen Martin & Associates
23

24. The Role of the A3 Coach
© 2011 Karen Martin & Associates
24

25. Coaching and Mentoring
Coaching is working in partnership to facilitate
learning, improve performance, and create
desired results.


Primarily in service of the A3 owner’s development.
To this end, what will be most supportive?
Mentoring is the process for imparting subject
matter expertise and wisdom to a less
experienced person.


Primarily in service of achieving results.
More of a one-way, training-driven relationship
Begin with coaching; move into mentoring as
needed.
© 2011 Karen Martin & Associates
25

26. Coaching Relationship
Mentoring Relationship
Wisdom
Wisdom
? ? ?
?
?
?
Coach
Coachee
Focus: Asking questions
Mentor
Mentee
Focus: Providing information

27. Problem-Solving Proficiency
Needed
Lean analytical, process design, and
implementation tools
Data analysis
Visual display of data
Project & time management
Team building / people skills
Change management skills / psychology
© 2011 Karen Martin & Associates
27

28. Coaching vs. Mentoring
Coach
Mentor
Purpose
Growth/development; helping people realize their potential,
while also generating results
Role
Teacher/consultant; learning/thinking partner
Relationship Built on respect and trust; supportive in nature
Process
Drawing out knowledge that
resides within coachee
Sharing knowledge that
resides within mentor
Questioning; coach engages Telling; Mentor shares
in inquiry to guide the
expertise, offering answers
coachee
and solutions
Focus
Primary: Developing strong
problem-solvers
Secondary: Assuring the
problem is thoroughly
dissected and solved
Primary: Assuring the
problem is thoroughly
dissected and solved
Secondary: Developing
strong problem-solvers

29. The Wisdom Comes in Knowing When
to Coach and When to Mentor

30. Types of Coaching
Owner’s Problem-Solving
Skill Level
Focus During Session
What to Ask / Do
Problem-solving is spot on.
Coaching
Goal: “Thought
partners”
“How’s it going?”
“What’s working well?”
“What’s not?”
“What have you learned?”
“What’s been most
surprising?”
“What are you doing next?”
“Do you need any help?”
Problem-solving is off course
and needs correction.
Coaching & Mentoring
Goal: Get person back
on track
Probe using Socratic
questioning. Focus on one
or two areas of the A3.
Problem-solving is on track
so far, but owner’s having
difficulty taking next steps.
Coaching & Mentoring
Goal: Build confidence;
remove obstacles;
create an action plan
Use Socratic questioning to
help person realize his/her
strengths & grow
competencies; provide
mentoring for knowledge
transfer (e.g. specific tools).

31. Why should we avoid telling
people what to do?
It robs them of the opportunity to think
through the problem themselves.
It deprives them of ownership of the
problem.
You might be wrong.
© 2011 Karen Martin & Associates
31

32. Socratic Questioning
Named for Socrates
Based on his belief that the
most effective learning results
from a disciplined practice of
thoughtful questioning.

Way of assuring “rigorous
thinking”
Open-ended questions that
cause the learner to think
deeply.
© 2011 Karen Martin & Associates
32

33. Questioning “Don’ts”
Masked recommendations


“Leading the witness”
Disguising your recommendation as a question (and
thinking that counts as a question)
“Run on” questions

Long questions that contain multiple questions
“The inquisition” – asking question after question

Instead of pausing and allowing the person to answer
Closed-ended questions

That can be answered with yes, no, or a word or two.
© 2011 Karen Martin & Associates
33

34. Questioning “Don’ts”
Harsh or judgmental tone
Multi-tasking or half-listening instead of
engaging the person in a focused dialogue
If the problem owner asks, “What do you
think?”, don’t take the bait!
© 2011 Karen Martin & Associates
34

35. Building Organizational Capabilities –
Model 1 – Leadership Development
 Pre-select 4 problems related to annual business goals.
 Break into 4 teams; team lead is the problem owner; others
play dual role, focused primarily on building coaching skills.
 1-day workshop – learn P stage of PDCA.
 4-6 weeks to work on projects; heavy support throughout
from seasoned coach/mentor (2nd coach).
 1-day workshop – teams present progress; much discussion;
learn DCA stage of PDCA.
 4-6 weeks to work on projects; heavy support throughout
from seasoned coach/mentor (2nd coach).
 1-day workshop – teams present progress; focus on
sustainability and spreading the learning across the
organization.
© 2011 Karen Martin & Associates
35

36. Building Organizational Capabilities –
Model 2 – One-on-One Development
Specific problem is selected.
Identify problem owner and coach/mentor (typically
the project owner’s direct supervisor).
Seasoned coach/mentor serves as either:


“2nd coach” – coaches the coach (if coach is skilled in
improvement tools)
Primary coach to problem owner, with side-bar coaching
discussions with coach.
Support from seasoned coach is heaviest during the
P stage of PDCA.
© 2011 Karen Martin & Associates
36

37. How A3 Shifts Culture
Cross-functional engagement
Root cause analysis helps break the
“band-aid syndrome”
Learning together
Alignment with organizational strategy
Coaching role of leadership helps move
them away from tactical involvement
© 2011 Karen Martin & Associates
37

38. Common Problem-Solving Pitfalls
Problem isn’t tied to key business goals.
Problem owner isn’t proficient in analytical and
improvement tools.
Coach isn’t proficient in analytical and
improvement tools.
Consensus isn’t built throughout the process.
A3 drags on forever.
A3 used for everything.
Comment on how A3s and VSMs relate to one another, and which
one to turn to in the beginning.
© 2011 Karen Martin & Associates
38

39. Key Success Factors
 Engage all stakeholders from the beginning.

They must clearly understand why “this” is a problem.
 Gain consensus every stage of PDCA.
 Keep leadership from getting into tactics.

Their role is strategy and policy.
 Test/experiment before rolling out an improvement.
 Assign clear accountability for monitoring the improved
state and continued improvement.
 Avoid moving forward until true root cause is known.
 Establish measurable targets.
 Develop leaders into engaged and active coaches/mentors.
 Share the process company-wide.
© 2011 Karen Martin & Associates
39

40. In Summary
The A3 process should become a
standardized form of currency for problemsolving, dialogue, and decision-making in
your organization – creating an organization
of “scientists” who continually improve
operations and achieve results through
constant learning from the work at hand.
© 2011 Karen Martin & Associates
40

41. Other A3 Applications and
Common A3 Components
Proposal








Theme
Background
Current Condition
Analysis and Proposal
Plan Details
Unresolved Issues (if
relevant)
Implementation
Schedule
Total Effect
© 2011 Karen Martin & Associates
Status Report






Theme
Background
Current Condition
Results
Unresolved Issues /
Follow-up Actions
Total Effect
During Kaizen Events

42. Professional Development A3
42

43. For Further Study

44. For Further Questions
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858.677.6799
ksm@ksmartin.com
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