Transcript 12 ABSOLUTES FOR SUCCESS IN ENTERPRISE

BLOW OUR BUREAUCRACY AND COSTS
Mo r e S imp l i c i t y - Le s s Bu r e a u c r a c y - C o s t S a v i n g s
Using
The Systems Thinking Approach®
Presented by
The Haines Centre for Strategic Management
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Your Key to
Successful
Strategic
Management
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A GLOBAL ALLIANCE OF
MASTER CONSULTANTS
AND TRAINERS
FOUNDED 1990—OFFICES IN OVER 20 COUNTRIES
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WORLD LEADER: THE CENTRE
“We Are The World Leader in Strategic Management
Powered by Systems Thinking”
Planning—People—Leadership—Change
To
Deliver Customer Value
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WHO IS STEVE HAINES?
STEVE HAINES

Founder & CEO:
Haines Centre for Strategic Management®
 Systems Thinking Press®
Founded in 1990—38 Offices—20 Countries
STEVE
is a:
 “CEO—Entrepreneur—Global Strategist”
and
 “A Facilitator—Systems Thinker—Prolific Author”
(of 14+ books)
 A graduate of the US NAVAL ACADEMY’s
Legendary Leadership Class of 1968
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WHO IS DIANE ELLER?
DIANE is
a French Canadian now established in North Carolina
She acts as:
Haines Centre Principal & Facilitator
Management System Strategist, and
Business Analyst (performed over 200 company appraisals
in the last 3 years)
She has 15+ years in Organizational Development, Leadership & Team
Development, both internal / external consultation
Her motto:
“helping management teams
achieve their goals!”
Diane Leads the Centre’s practice in North Carolina
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Third Facilitator
Optional
Depending upon size of group
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WORKSHOP ULTIMATE GOAL
On Day two after lunch, each of you individually will make a 5
minute presentation on how to save costs in our Organization.
 This workshop will provide you with many ideas on how to find this
cost savings
 The Haines Centre will also provide coaching and support for your
ideas and their impact throughout the two day workshop as you get
ready to present your cost savings
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OUR EXPECTATIONS
Per Person – Per Presentation: Commitment forms #1 and #2
1. Minimum Cost Savings = $2,500/year
2. Expected Cost Savings/year = $5,000/year
3. Outstanding Cost Savings/year = $10,000/year
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WORKSHOP PURPOSES
Purposes: Simplify and Eliminate Bureaucracy
 To assist an organization in creating much more “clarity and simplicity” in all
it’s operations
 To help an organization move from a top down, high control oriented style of
management, to a flatter organization with decisions pushed to the lowest level
 To improve productivity and empowerment with the same work force
 To involve multiple levels of the organization in an effort to immediately remove
bureaucracy, unnecessary work, policies, practices, reports, and approvals from
the organization
 To build in a mechanism to ensure that follow-up occurs and the momentum for
change and reduced bureaucracy is maintained
 To clarify and simplify your complex bureaucracy and improve cross functional
and horizontal coordination and collaboration
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LOGISTICS
GROUND RULES—CELL PHONES
BREAKS
REST ROOMS
RICHNESS—DIALOGUE/EXPERIENCES/CULTURE
FURTHER SUPPORT MATERIALS
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THINK
THINK
“Thought,” said IBM’s founder, Thomas J. Watson, Sr., “has been the father of every
advance since time began.”
The one-word slogan “THINK” has appeared in offices and plants throughout the
company since the early 1900s.
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RATE OF CHANGE IN THE WORLD
“If the rate of change on the outside
exceeds
the rate of change on the inside,
the end is near.”
—Jack Welch
Former Chairman and CEO
General Electric Corporation
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COMMON SENSE
“IF NOTHING ELSE WORKS, THIS MAY BE A PERFECT
OPPORTUNITY TO USE COMMON SENSE.”
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WHY THINKING MATTERS
The way you think creates the results you get.
The most powerful way
to
impact the quality of your results
Is
To improve the ways you think
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THINK—PLAN—ACT—RESULTS
How you think
Is how you plan
Is how you act
And that
Determines the results you get in work and life
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SPEAK FINANCE, NOT ENGLISH
The “Business Case” Imperative
or
“Speak Finance, Not English”
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TABLE OF CONTENTS
Introduction and Simplicity
I.
Self
II. Interpersonal Skills
III. Teams – Units- Departments
IV. Cross Functional Processes
V. Engagement and a Positive Work Environment
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WHAT DO I TOLORATE AT WORK?
1.
2.
3.
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SIMPLICITY
SIMPLICITY and COMPLEXITY
I wouldn’t give a fig for the simplicity this side of complexity
but
I’d give my life for the simplicity on the far side of complexity.
-Justice Oliver Wendell Holmes
SIMPLICITY and GENIUS
Any idiot can simplify by ignoring the complications,
but
it takes real genius to simplify by
including the complications.
-John E. Johnson, TEC Chair
(The Executive Committee)
This is what the Systems Thinking Approach® does…
It captures the complexity and clarifies it into simplicity!
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THREE MAGIC QUESTIONS
1. What is going well in the organization that should not be
changed?
2. What are the abrasive or problem areas that should be
examined?
3. If you could change the organization with a “stroke of the
pen,” What would you do?
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HOW TO REDUCE COSTS?
1.
Business Process Reengineering
11. Examine all overhead costs
2.
People Issues
12. Examine all administrative costs
3.
Eliminate “waste” of all types • all non-valueadded activities
13. Focus training dollars
4.
Examine layers of management/skills
5.
Materials and equipment costs
6.
Reduce usage – telephone, copier, etc.
16. Automation, robotics
7.
Productivity, efficiency
17. Deal with poor performers
8.
Benchmark – best practices vs. costs
18. Supplier costs
9.
QIDW/Continuous Improvement
(individual/teams)
19. Inventory
10. Cost saving ideas and solutions
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14. Response, Speed, KISS – Simplicity
15. Innovation, creativity
20. Investments
21. What else?
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OUR COMPLEX WORLD TODAY!
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COMPLEXITY – THE RUBIKS CUBE
"The Organization as a System"
How to Start Moving:
From:
Chaos & Complexity
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To:
Elegant Simplicity
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UNINTENDED CONSEQUENCES
“Understand the consequences
Not
Unintended consequences”
ARE THE UNINTENDED CONSEQUENCES
A
MALICIOUS INTENT—PROBABLY NOT?
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GET A HIGHER AND BROADER
PERSPECTIVE
Take a Helicopter View of Life!
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TEN WAYS TO CREATE NEW IDEAS
OR REDUCE BUREAUCRACY
In terms of your own job, answer these questions:
1. What made me mad today?
2. What took too long?
3. What was the cause of any complaints?
4. What was misunderstood?
5. What cost too much?
6. What was wanted?
7. What was too complicated?
8. What is just plain silly?
9. What job took too many people?
10. What job involved too many actions?
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SOME KEYS TO SIMPLICITY
1. Rule of three
2. 80/20 rule
3. The Systems Thinking Approach® (all four concepts)
4. KISS mindset
5. Single page documents
6. Simplicity rule
7. Speed
SIMPLICITY RULE
Let’s make a rule that we can’t use
anything I can’t explain in three minutes.
-P. Crosby
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SOME KEYS TO SIMPLICITY
8. Flexibility – Strategic Consistency and Operational Flexibility
SIMPLE, YET POWERFUL REWARDS
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1.
Celebrate the moment
2.
Recognize the effort
3.
Time with the boss
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BAD IDEAS –LOWER COSTS AND
INCREASE SIMPLICITY
A bad idea is something that unnecessarily complicates, demoralizes or
duplicates effort.
 Why was this program, policy, product, practice or idea initiated?
 Does this practice still create value?
 What would happen if we stopped doing this?
 What is the total cost of doing this?
 Is continuing to do this the best way we can use human and
organizational resources?
 Is the investment in this product, process, policy or idea worth the
return and is there a return?
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12 CORNERSTONE TOOLS
TO STREAMLINING
There are 12 cornerstones to streamlining,
and they are applied in the following order:
1.
Bureaucracy elimination.
2.
Duplication Elimination.
3.
Evaluating every activity
4.
Simplification
5.
Process cycle-time reduction
6.
Error Proofing
7.
Upgrading
8.
Simple language
9.
Standardization
10.
Supplier partnerships
11.
Big picture improvement
12.
Automation and/or mechanization
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YOU CAN IDENTIFY BUREAUCRACY
BY ASKING SUCH KEY QUESTIONS AS:

Are there unnecessary checks and balances?

Does the activity inspect or approve someone else’s work?

Does it require more than one signature?

Are multiple copies required?

Are copies stored for no apparent reason?

Are copies sent to people who do not need the information?

Are there people or agencies involved that impede the effectiveness and efficiency
of the process?

Is there unnecessary written correspondence?

Do existing organizational procedures regularly impede the efficient, effective, and
timely performance of duties?

Is someone approving something he or she has already approved? (For example,
approving capital equipment that was already approved during the budget cycle)
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LEVEL I:
Self
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ELEMENTS OF A MEANINGFUL JOB
EMPOWERMENT – ENRICHMENT – SELF-INITIATIVE
Instructions: Use this to analyze all jobs in the process being improved
Yes
No
Elements
_____
_____
1. Direct Feedback
_____
_____
2. Client Relationship
_____
_____
3. New Learning
_____
_____
4. Scheduling
_____
_____
5. Unique Expertise
_____
_____
6. Control Over Resources
_____
_____
7. Direct Communications Authority
_____
_____
8. Personal Accountability
“Every employee is a manager (of themselves).”
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WHERE ARE YOUR UNENRICHED
JOBS?
- David A. Whitsett
Instructions: Use this to analyze your job – does it include any of these clues to
your job being poorly designed?
Yes
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No
_____
Structural Elements
_____ 1.
Communication Units or Jobs (cross dept, unit, customer
communication)
_____
_____
2.
Checking Functions or Jobs (reviewers, inspectors)
_____
_____
3.
Trouble Shooting Jobs (expediters, coordinators)
_____
_____
4.
Super Guru’s (consultants, analysts)
_____
_____
5.
Job Title Elephantiasis (overspecialization, excessive titles)
_____
_____
6.
One-on-One Reporting Relationships (both jobs may suffer)
_____
_____
7.
Dual Reporting Relationship *clarity of the matrix elements is
crucial)
_____
_____
8.
Unclear Division of Responsibility (whose job was it? Lots of
meetings)
_____
_____
9. Overcomplicated Workflow is hard to explain, paper,
handled/approved by many)
_____
_____
10. Duplication of Functions (work done twice, departments
compete for work)
_____
_____
11. Labor Pools (programmers, accountants, word processors, etc.)
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CONTINUOUS IMPROVEMENT =
ELIMINATE WASTE
DEFINITIONS OF WASTE
Waste is anything other than the minimum amount of equipment, people,
materials, parts, space, overhead, and work time essential to add value to
our products/services. What does not add value is waste.
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1.
Processing/Procedures
2.
Overproduction
3.
Delays (Watch/Wait)
4.
Defects
5.
Motion
6.
Inventory
7.
Transportation
8.
Talent/Training/Planning
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TEN RULES FOR “JUST DO IT”(JDIT)
KAIZEN
1.
Discard conventional, fixed ideas about doing work
2.
Think of how to do it, rather than why it cannot be done
3.
Start by questioning current practices
4.
Begin to make improvements immediately, even if only 50% of them can be
completed
5.
Correct mistakes immediately
6.
Do not spend money on JDIT – Just Do It!
7.
Gain wisdom from facing hardship
8.
Ask “why” five times and seek root causes
9.
Seek the wisdom of ten, not the wisdom of one person
10. Remember that JDIT ideas are infinite
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WORKING LUNCH
Be Back at 12:45 PM
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POINTS TO REMEMBER
WHEN ANALYZING WORK

Much waste comes from working on the wrong things

The right things to work on are those that add value for the external
customer

Classify the work activities into value-added, necessary, unnecessary
(rework or other), and not working (authorized or not authorized)

Do a work sampling study to get a picture of what work is being done –
Study yourself first

Explain the reasons for the study carefully and share the results with the
people being studied. People will only cooperate if they perceive it to be in
their best interest

Focus on the process, not the people. Ninety percent of the waste comes
from the process

Make a Pareto chart of the types of activity. Mack more detailed Pareto
charts as necessary to find the waste

Question the need for, and value of, all the work
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LEVEL II:
Interpersonal
What will I do, myself, to save money in our
organization?
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20 QUESTIONS THAT
PROVOKE PRODUCTIVE IDEAS
1.
How can I be more efficient in my job?
2.
How can my department be more efficient?
3.
What would I do differently if I were president of this company?
4.
What can I personally do to reduce costs without affecting quality?
5.
What can the company do to reduce costs without affecting quality?
6.
What can I do to increase sales?
7.
What can our company do to increase sales?
8.
What is the one thing that I could do to improve my department?
9.
What changes could we implement to speed up production?
10. What can we do to improve communication in the company?
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20 QUESTIONS THAT
PROVOKE PRODUCTIVE IDEAS
11. How can we relieve stress at work?
12. What can we do to enhance our personal effectiveness?
13. What is the one thing that we do that isn’t necessary or effective?
14. What can we do to improve the safety of our surroundings?
15. What can I do or learn to meet the challenges that lie ahead?
16. What can we do to improve the efficiency of our suppliers?
17. What changes can I personally make to better service our customers?
18. What would I like to see done in other departments to help my
department run more efficiently?
19. What do I feel is needlessly complex and complicated here?
20. If I could change one thing about my job, what would it be?
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CREATIVITY & INNOVATION
SUPPORTING CREATIVITY and INNOVATION
(Best Practices Research Compilation)
TURN TO PAGE 31 IN YOUR WORKBOOK
Please answer each question on a 1-5 scale. Do you do these things?
1
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2
3
4
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BUILDING INTERPERSONAL
COMPETENCE
MANAGERS’ MORALE MISTAKES
In a personal survey, 150 executives from the nation’s 1,000 largest
companies identified the ways in which managers damage employees’
morale the most
Criticizing in front of others
38%
Being Dishonest
38%
Taking credit for others’ work
12%
Being inaccessible
6%
Showing Favoritism
4%
Don’t know
2%
Source: Accountemps
Positive vs. Negative Reinforcement
The national average of parent-to-child criticisms is 12 to 1 – that is, 12 criticisms to 1
compliment. Within the average secondary school classroom, the ratio of criticism to
compliments is 18 to 1 between teacher and student. And we wonder why our children
so often have low self-esteem?
- The Magic of Conflict
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BUILDING INTERPERSONAL
COMPETENCE
Positive vs. Negative Reinforcement
The national average of parent-to-child criticisms is 12 to 1 – that is,
12 criticisms to 1 compliment. Within the average secondary school
classroom, the ratio of criticism to compliments is 18 to 1 between
teacher and student. And we wonder why our children so often have
low self-esteem?
- The Magic of Conflict
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LADDER OF
COMMUNICATION EFFECTIVENESS
(REPITITION – REPITITON – REPITITION)
Communication Methods
Words =
7%
Tone =
38%
Body Language =
55%
Total =
100%
What you do speaks louder
than what you say!
We Remember Approximately:
10% of what we read
20% of what we hear
30% of what we see
50% of what we see and hear
70% of what we say and do
90% of what we explain as we do
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Repetition Increases Understanding
 1st time = 10% retention
 2nd time = 25% retention
 3rd time = 40-55% retention
 4th time = 75% retention
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QUESTIONS TO ASK ABOUT
EACH TASK OR ACTIVITY YOU DO
Instructions: Pick a task you do and ask yourself these questions about it
Task Name _____________________________________________________
 What is it worth to the customer?
 How does that compare to its costs?
 Is the purpose of the task still valid?
 What risks would eliminating it pose?
 Is it being done by the right person or department?
 Can you transfer it to someone outside the company?
 Can you consolidate it with some other job within the company?
 Can you lower the frequency of the service?
 Can you reduce the content of the service?
 Can you reduce the number of people or groups receiving the service?
 How can the work process be improved?
 Can you change the methods to make the job more efficient?
 Can you mechanize it or computerize it?
 How much time is spent waiting for work?
 Can you level the work load and/or vary the work force as needed?
 What can you do to understand the process better, eliminate causes of nonvalue-added work, and improve the quality, cost and effectiveness of Valueadded-work?
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WORKSHOP ULTIMATE GOAL
On Day two after lunch, each of you individually will make a 5
minute presentation on how to save costs
 This workshop will provide you with many ideas on how to find this
cost savings
 The Haines Centre will also provide coaching and support for your
ideas and their impact throughout the two day workshop as you get
ready to present your cost savings
52
© 2009 All Rights
EXPECTATIONS
Per Person – Per Presentation: Commitment forms #1 and #2
1. Minimum Cost Savings = $2,500/year
2. Expected Cost Savings/year = $5,000/year
3. Outstanding Cost Savings/year = $10,000/year
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WORKING LUNCH
Be Back at 4:30 PM
Go Back to Work and Look for
Ways to Save Money
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RECAP OF THE DAY
What has been helpful today?
1. Forms, handouts, exercises
2. Tips, concepts, advice
3. Techniques, methods
4. Coaching, partners
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DAY TWO
BLOW OUR BUREAUCRACY AND COSTS
Mo r e S imp l i c i t y - Le s s Bu r e a u c r a c y - C o s t S a v i n g s
Using
The Systems Thinking Approach®
Presented by
Stephen Haines
Diane Eller
Eric Denniston
Haines Centre for Strategic Management
© 2008
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LEVEL III:
Teams – Units - Departments
What am I going to do with 1 or 2 others to
save money at our organization?
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EMPOWERED EMPLOYEES
AND EMPOWERED WORK TEAMS
The concepts of empowerment advocates a culture in which employees accept
responsibility for decision making AND they also accept accountability for the
consequences of those decisions and the resulting outcomes
1
Goals
Effective Teams
Have Clear
2
Roles
and Agreed Upon
Goals – Roles –
Procedures -
3
Procedures
Relationships
4
Relationships
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TEAMS AS IMPLEMENTATION
VEHICLES
The Flow
1. Groups are not teams
2. Teams are structures
3. Structures influences behaviors
4. Are their behaviors team oriented? - or WIIFM goals?
5. Do your team-oriented members know how to run
projects and build teams?
Both?
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TEAMS AS IMPLEMENTATION
VEHICLES
The Question:
When and how does a
group become an effective team?
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LENGTH OF MEETINGS
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1.
Turn to Page 38 in your workbook.
2.
Think of a meeting you attended recently, and
3.
Put a check in the “yes” or “no” column
opposite each statement, based on your
observations about that particular meeting
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STANDARD MEETING AGENDA
Also see:
 Three stages of meetings
 Roles and responsibilities
 Potential purposes of meetings
I. Beginning
(Set the agenda – add
outcomes)
II. Middle
(Cover the agenda)
III. End
(Review meeting content)
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MEETINGS MANAGEMENT
Potential Ground Rules: Success of the meeting is each
person’s responsibility. Each person is responsible for
maintenance/”staying on track”
Closing A Meeting: 3 Questions
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1.
What should we continue
2.
What should we do more of
3.
What should we do less of
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LEVEL IV:
Cross-Functional Processes
What will I do with others outside my
department and the rest of the organization
money?
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INNOVATIVE PROJECT SKILLS
These Needed
Skills Include
Effective Teamwork
Innovation
Project Management
Systems Thinking
Clarity of Purposes
Simplicity of Execution
Rollercoaster of Change
Facilitating Conflict
What Actions
Are Needed?
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Low
1
High
2
3
4
5
Comments
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To Do List
By Whom
By When
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QUESTIONS TO ASK
ABOUT PROCESSES
Which Process?_______________________________________
 Eliminate
 Change
 Rearrange
 Combine
 Simplify
 Imagine
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LEVEL V:
Engagement and a
Positive Work Environment
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74% OF EMPLOYEES NOT
ENGAGED: GALLUP POLL
According to Gallup, there are 12 dimensions of a great workplace.
___ 1. I know what is expected of me at work
___ 2. I have the materials and equipment I need to do my work right
___ 3. At work, I have the opportunity to do what I do best every day
___ 4. In the last seven days, I have received recognition or praise for doing good work
___ 5. My supervisor, or someone at work, seems to care about me as a person
___ 6. There is someone at work who encourages my development
___ 7. At work, my opinion counts
___ 8. The mission or purpose of my company makes me feel my job is important
___ 9. My fellow employees are committed to doing quality work
___ 10. I have a best friend at work
___ 11. In the last six months, someone at work has talked to me about my progress
___ 12. This last year, I have had opportunities at work to learn and grow
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58% OF CUSTOMERS NOT
ENGAGED
1. Overall, how satisfied are you with (brand)?
2. How likely are you to continue to choose/repurchase (brand)?
3. How likely are you to recommend (brand) to a friend or associate?
4. (Brand) is a name that I can always trust
5. (Brand) always delivers on what they promise
6. (Brand) always treats me fairly
7. If a problem arises, I can always count on (brand) to reach a fair and
satisfactory resolution
8. I feel proud to be a (brand) customer
9. (Brand) always treats me with respect
10. (Brand) is the perfect (company/product) for people like me
11. I can’t imagine a world without (brand)
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WORKSHOP ULTIMATE GOAL
On Day two after lunch, each of you individually will make a 3-5
minute presentation on how to save costs
 This workshop is providing you with many ideas on how to find this
cost savings
 The Haines Centre and KFI Support Staff are also providing coaching
and support for your ideas and their impact throughout the two day
workshop as you get ready to present your cost savings
70
© 2009 All Rights
EXPECTATIONS
Per Person – Per Presentation: Commitment forms #1 and #2
1. Minimum Cost Savings = $2,500/year
2. Expected Cost Savings/year = $5,000/year
3. Outstanding Cost Savings/year = $10,000/year
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INSTRUCTIONS FOR REST OF THE
MORNING
We will take a break until 12:00
 The facilitators will be here during the working lunch at
12:00 should you have questions or need help
 You have until 12:45 to prepare your presentations
 Flipcharts will be available here, should you need them
 You may use the overhead projector to practice your
presentation, if you have prepared a PowerPoint
presentation
 The first presenter should be set up and ready to go at
12:45
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BREAK
Be Back At 12:00 Sharp
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Working Lunch
Welcome Back
 You have until 12:45 to
prepare your presentations
 Flipcharts are available,
should you need them
 You may use the overhead
projector to practice your
presentation, if you have
prepared a PowerPoint
presentation
 The first presenter should be
set up and ready to go at
12:45
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PRESENTATIONS
It’s time for the Presentations
 You each have 3-5 minutes to:
 Present your idea(s)
 Tell us how much you will save
 Show us how you will measure and track the savings
 After each presentation you will be given one of 3 options:
 Do it!
 No, and here’s the reason why
 We need further information
o Here’s what we need – To Do List (by when and by whom
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THE BOTTOM LINE
What we think,
or what we know,
or what we believe
is,
in the end,
of little consequence.
The only consequence ...
is…
what we do!
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THE SESSION’S TWO-DAY
FEEDBACK AND EVALUATION
HOW DID THE SESSIONS GO??
1. CONTINUE?
2. MORE OF?
3. LESS OF?
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THANK YOU
FOR YOUR PARTICIPATION
The Haines Centre for Strategic Management
Steve Haines
Diane Eller