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Transcript of 1 Implementing a Lean/Six Sigma Culture to Transform Your Organization … and Drive Sustainability...
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Implementing a Lean/Six Sigma CultureImplementing a Lean/Six Sigma Cultureto Transform Your Organization … to Transform Your Organization … and Drive Sustainabilityand Drive Sustainability
Wendy A. KoubaVice President, Operations Management
Bio Innovation Leader’s SummitLondonFebruary 23, 2010
04/18/23
Leading the Way to a Healthier World
Wyeth
$22 Billion; 145+ Countries Pharmaceuticals and Biopharmaceuticals Vaccines Consumer and Animal Health Nutritionals
50,000 employees Technical Operations & Product Supply (TO&PS)
More Than 4,800 SKUs 18,000 Employees 28 Plants / 13 Countries and Puerto Rico
48 Billion Doses in 2008…> 7 Doses for Every Human on Earth
~$6B revenue exposed due to upcoming patent expirations
Product approvals and contributions from new products delayed relative to expectations
Changing regulatory environment – stricter requirements for new drugs
Decreasing R&D productivity Significant generic penetration Large product litigations
December 2007: accelerated at-risk launchof generic
Our Story Begins in 2007
Challenges to product
exclusivity
Delayed new products
Changing industry
environment
TO&PS
Network optimization
– COEs and right-sizing
Organizational design
– Lean out above-site
– Standardize site structure
Operational Excellence
− Transform the way we work and whatwe deliver
− Create capabilities and culture thatensure sustainability and continuous improvement trajectory
− Reduce cost: 25% aspirational target
Corporate
Initiation of Project Impact
Company-wide initiative
All functions, divisions and geographies
Target: $~1.5 billionin 4 years
Our Response
While maintaining & improving quality, compliance and customer service
While maintaining & improving quality, compliance and customer service
6
Our Approach: Three Key Levers
“The way physical assets and
resources are configured and optimized to create value and minimize losses” “The way people think,
feel, and conduct themselves in the workplace, both
individually and collectively”
“The formal structures, processes, and
systems through which the operating system is managed to deliver the business objectives”
Engagement/Engagement/MindsetsMindsets
&&BehaviorsBehaviors
Management Management InfrastructureInfrastructure
OperatingOperatingSystemSystem
Aspire high; blend technical & organizational change;build capability and let your line leaders own and drive it
What Differentiated Our Approach?
Combines deep technical changes with cultural change How people think and act: key to sustainability
“Bias for action / tolerance for ambiguity” Led by local senior management engaging the people who do the work
They own it Learning drives continuous improvement
Requires personal transformation and objective review to revitalizethe organization
“Go and See” transforms our understanding of current state Requires major upgrade in capabilities
Makes the changes sustainable
Changes the “daily work” of the majority of the workforce
Process starts with a comprehensive site diagnostic…
WorkshopsAnalyses
Interviews
Quantitative Diagnosis Qualitative Diagnosis
Plant-wide survey
Review of total budget and headcount Cover most major workstreams Numerous analyses to support insights from
qualitative sources (OEE, NVA, etc)
Interviews with a representative sample of key stakeholders (management, exempt/ non-exempt employees, temps/contractors)
Focus groups, future state workshops, mirror workshops
Surveys
Diagnostics Cover Multiple Work Streams and Data Sources
PriorAnalyses
StructuredObservations
DataAnalysis
Workstream Analysis
Savings opportunity ranges from 15 - 40% per site
Implementation at a Site Includes Three Types of Initiatives
Examples
Mini-trans-formations
Changes the daily work, thinking and behavior of everyone in a focused area
Production line: simplify processes; eliminate NVA
QC lab: standard roles; leveled work; performance boards
Quick wins and “just do its” that don’t require changing mindsets and behaviors
Implementing custom lab reports
Removing NVA project approvals
Other site initiatives
Solve technical and organizational problems that affect the entire site
Change story engagement
Systems implementations
Cross-cutting initiatives
We Changed the Way We Think & Work
Data-driven decision making and acting on fact Improvements in OEE
Elimination of non-value added meetings
Increased capacity from significant reduction in changeover time
Dedicated production trains and rhythm wheels Tailored to velocity of product and value-streams
Lean Labs
Improvements in yield from technical changes Awareness of cost and implications of waste
“Hot-seat” swapping and shift huddles
Visual management through performance boards
“Get out and Gemba”
Building capability Forum and field
~ $250 M savings commitment against a stretch target of $150 M for 2009 budget
~1200+ headcount reduction in 2008
Additional headcount reductions in 2009
~60 site mini-T teams coached in early stages of the transformation
Frontline is engaged in change and new leaders have emerged from the floor
TO&PS has led the change for Wyeth and is now looked upon as a role model for implementing change
Significant Savings Already Achieved
Program has exceeded expectations
250
2009(Committed)
2010(Expected)
Cost Savings$ M
How? Management Infrastructure Facilitatesthe Results
Mindsetsand
Behaviors
Management Infrastructure
OperatingSystem
“ The formal structures, processes, and systems through which the operating system is managed to deliver the business objectives”
13
Position:
Overview:
Senior Leader (VP Ops, MD, QA Lead, Function Lead)
• Monitor and manage site performance • Build talent through developing team and individual team members• Drive continuous improvement by implementing lean systems and processes • Engage others across the network and industry• Enable staff at all levels to support the shop floor.
Key Performance Indicators:% Time:
• 20 %
• 40%
• 25 %
• 15%
Roles and Responsibilities:
• Monitor and manage performance:– Develop site strategy and influence OpU strategy– Establish key metrics/strategy for site that cascade from OpU leadership– Work with PPU Heads to cascade metrics and establish targets – Monitor performance against targets/challenge as necessary – Engage in performance dialogues to identify and resolve issues
• Build talent:– Manage development plans with clear action items for staff– Coach staff and provide performance feedback on a regular basis – Complete succession planning– Mentor staff across the organization
• Lead continuous improvement:– Identify and prioritize key initiatives for OpU and PPUs– Conduct and role model problem solving with staff at source – Foster continuous improvement mindset; actively look for ways to
implement lean production principles, remove barriers to change – Engage others across the organization (Eliminate barriers,drive
standardization and ensure collaborative environment for empowerment)• Other, routine, administrative activities:
– Communicate upwards
Position:
Overview:
Senior Leader (VP Ops, MD, QA Lead, Function Lead)
• Monitor and manage site performance • Build talent through developing team and individual team members• Drive continuous improvement by implementing lean systems and processes • Engage others across the network and industry• Enable staff at all levels to support the shop floor.
Key Performance Indicators:% Time:
• 20 %
• 40%
• 25 %
• 15%
Roles and Responsibilities:
• Monitor and manage performance:– Develop site strategy and influence OpU strategy– Establish key metrics/strategy for site that cascade from OpU leadership– Work with PPU Heads to cascade metrics and establish targets – Monitor performance against targets/challenge as necessary – Engage in performance dialogues to identify and resolve issues
• Build talent:– Manage development plans with clear action items for staff– Coach staff and provide performance feedback on a regular basis – Complete succession planning– Mentor staff across the organization
• Lead continuous improvement:– Identify and prioritize key initiatives for OpU and PPUs– Conduct and role model problem solving with staff at source – Foster continuous improvement mindset; actively look for ways to
implement lean production principles, remove barriers to change – Engage others across the organization (Eliminate barriers,drive
standardization and ensure collaborative environment for empowerment)• Other, routine, administrative activities:
– Communicate upwards
Re-thinking the Meaning of Management
Changing the fundamentals of every manager’s job…Changing the fundamentals of every manager’s job…
1414
Current State % Future State %
Lean Leadership:Requires a Radical Change in Focus
413
2657
Administrative Continuous Improvement
Develop TalentPerformance Management
20
10
35
35
Get out and Gemba
How? Mindsets & Behaviors Ensure Resultsare Sustainable
15
Mindsets&
Behaviors
Management Infrastructure
OperatingSystem
“ The way people think, feel, and conduct themselves in the workplace, both
individually and collectively”
Mindset & Behavior Changes Evidentat All Levels
Coaches who support transformation led by the line leaders; focused on sustainability
“Our future leaders will develop in these key roles” – HR Leader
Task-oriented, lack of ownership – finish work and go home Do not feel accountability, often lack clarity on expectations “Cannot change anything” mentality and fear of discussing
improvement
Directive, command and control approach
One-way communication
High engagement; two-way communications Gemba walks; hands-on problem-solving
“My personal behavior change? I now ask much more than I direct” – OpU Lead
OE / Change Leaders
Leadership Team - Corporate &
Site
Frontline Leadership
Frontline
Project approach, not focused on sustainability
Frustrated by not being able to influence changes
“Checker of work” Limited coaching; majority of time
spent in office
Proactive leader Most of time spent on the floor coaching
“We used to focus solely on not making mistakes; now we focus on where and how we can improve” -- Supervisor
Improvement focused Accountability and pride in exceeding goals Feel they can change “bad processes”
“Now I’m always looking for improvements everywhere; at home I’m even optimizing my kitchen.” – Technician
From To
Let’s Hear from the People Who are Shaping Our Future…
Identity, needs (met Identity, needs (met and unmet), and and unmet), and
fearsfears
Identity, needs (met Identity, needs (met and unmet), and and unmet), and
fearsfears
Thinking and Thinking and feelingfeeling
Thinking and Thinking and feelingfeeling
Values and Values and beliefsbeliefs
Values and Values and beliefsbeliefs
BehaviorsBehaviorsBehaviorsBehaviors
… and transforming our organization
18
Transitioning to Sustainability:
Time
Per
form
ance Transition
Step change via mini-Ts
Sustained gains via continuous improvement
5 Requirements Continuously assessing against:
Original and new challenges Desired future state
Aligned team of local leaders: Setting targets for continuous
improvement Staying highly visible Engaging line leaders
Incorporating targets into key systems:
Performance Succession Planning & budgeting
Strategically communicating achievements & instilling pride
Driving engagement & behavior change
19
Site Example: Progress & Challenges After Implementation
Gains To Date Focus Going Forward Site leadership alignment around
change story and transformation plan
Developing strategy tied to performance indicators
Cascading vision and KPIs to the front line
Allocating sufficient resources to support the transformation plan
Continual prioritization
Continue to apply lean principles Removal of excess capacity to keep
pressure on lean gains Timely completion of change controls
Early traction in mini-Ts to deliver significant change
Willingness to adopt lean practices in multiple areas
Improving target setting Solidifying the practice of routine
performance dialogues Identifying more change leaders
Early traction in line-side performance boards
Consistent SLT focus through routine meetings on progress
Demonstrated commitment from the SLT to being involved in the transformation efforts
Early traction in performance dialogues within mini-T areas
Increased presence of lean leaders (at all levels) in front line problem solving
Increased real time problem solving at the front line level
Operating System
Management Infrastructure
Engagement/Mindsets & Behaviors
Vision
20
Making Sustainability Happen: Key Questions to Ask
Plan for the future: Have we set the
next level of aspiration?
- Short-term?- Long-term?
Have we incorporated the lessons learned?
Have we established routine review cycles?
Are the right leaders in place?
Evaluate the present: Are we complete
with implementation?- Are tasks complete?- Have the objectives
been met?
Are things stable?- Is the performance
management process strong?
- Have we responded to feedback on the boards, KPIs, etc.?
What opportunities remain?
Have we builtcapabilities?
Look back: What have we
learned?- What did and didn’t
work- Why?
What should we do differently?
- How can future mini-Ts learn from this?
- What can we share across the network?
Have we communicated this success?
21
The transformation offers the opportunity to significantly upgrade leadership capacity
Mini-transformations develop leadership down to the front line
Real change leaders
Focus on performance
A learning organization
and CI culture
Sensing and adapting for
the future
Benefits of TransformationMechanisms for
Sustaining & Improving
Reinforces performance management processes
Helps create a focus on the few things that matter through a clear vision of the organizational and operational end states
Operating system and management infrastructure changes create a new reality in core systems/processes
Mindsets and behavior shifts signal that change is becoming the norm
Creates energy to generate new improvement ideas by engaging the organization
Builds renewal capabilities to adapt more quickly to future needs/ opportunities
Be even more aggressive in placing top performers in pivotal jobs throughout the organization
Explicitly develop functional excellence and leadership capabilities
Ensure a regular and rich process to Take stock of progress against
transformation goals Assess new requirements, potential
and change capacity
Institutionalize common CI processes and language (e.g. idea generation, problem solving, knowledge/best practice sharing)
Explicitly cultivate a CI culture to capture the hearts and minds of all employees
Deliberately develop senior management capabilities to capture, channel and specify new opportunities
Actively capture and share learnings about managing transformations so that the capability becomes embedded
Sustainability: Key Success Factors
1111
2222
3333
4444
22
Our Sustainability Plan:Simple and Straightforward
Continue to execute balanced approach Network-wide
On-going mini-diagnostics & mini-transformations
Fully integrate with performance/reward systems; succession
Decrease operating costs year over year
Instill healthy competition Sibling rivalry vs. burning platform
Strengthen OE team Central: leadership, trust, partnership and
advocacy
Global network: sites and regions
The place for high-potentials
- Coveted skills
Influential and persuasive
Business leaders vs. “techies”
Short-term Complete & execute “Wyeth Way of Working”
Strategic framing and vision Fully integrated and highly visible Active support/commitment from senior leaders Accountability: what gets measured gets done Above-site; “If you build it…” Enterprise-wide implementation
Drive it bottom-up & top-down AlliedSignal Wyeth
Enhance critical partnerships Strategic communicators HR and Learning experts R&D and Commercial
Become an active learning organization Learning valued; required at all levels “Go and see” DuPont, Toyota, others Bring the outside in
Long-term
22Transitioning to higher impact, sustainability and CI
23
Key Tools and Processes
Diagnostic methodology Capability deployment
SLT, FLS and Mini-T
24
Building Capabilities At All Levels
Site Leadership Team Site Leadership Team (SLT) Training(SLT) Training
Frontline Supervisor Frontline Supervisor (FLS) Training(FLS) Training
Mini-TransformationMini-Transformation OE TrainingOE Training
Power of Engagement Power of Stories Lean Leadership Performance Management
FLS Implementation Guide Mini-T mirror workshop Roles, responsibilities and
time prioritization Communicating and
engaging employees through change
Managing transition and change
Building individual and group trust
Accountability and empowerment
Coaching and feedback Delegation Flexible leadership Conflict resolution and
difficult conversations Basic lean awareness Visual management and
performance Root cause problem
solving
OE Training Implementation Guideline
Transformation Process tools for the mini-T coaches
Implementation Guide Current state MIFA Future state MIFA Quick changeover Just in Time overview Takt time 5S Man-machine separation 8 wastes Manpower scheduling Level scheduling
Standard work Line stop and call Mistake proofing Pull system Visual management OEE Airplane Game Variability game Level scheduling game SMED game T-shirt game Standard operations card
game
25
Key Tools and Processes
Diagnostic methodology Capability deployment
SLT, FLS and Mini-T
Roadmaps Transformation and Future State
Site needs analysis and self-assessment Consulting tools
Waste walks, FL meetings, Performance Boards, 5 Whys?, and more
Structured knowledge management Communities of Practice Strategic communications
Global Recognition Site Best Practices Network Excellence Award
Replication Process
26
Keys to Our Success
Set stretch aspirations In context with future state
Get the right leaders in place Aligned and energized Site and above-site
Engage all employees Beyond front line
Develop compelling change story Integrated with strategic communications
Make the change personal Significant emotional events Modify mindsets and behaviors
Drive focus and pace Get it 80% right & recalibrate accordingly
Invest heavily in capability building Address both “performance” and
“health” Foster data-driven decision making
“Act on fact”
Focus on three types of losses Waste, variability and inflexibility
Carefully scope Mini-T’s Narrow but deep Achieve ingrained and sustainable
change Resource for success
Sites and central Drive early visible change
Celebrate wins & recognize success Build confidence & have fun
Leadership, Learning and ListeningLeadership, Learning and Listening
27
Transformations Fail When These Practices Aren’t Followed… How does your organization rate?
High High aspirations aspirations grounded in grounded in contextcontext
Have aspirations been set, and communicated to the organization? How were the aspirations for transformation developed? Are the goals optimized between business requirements, overall market potential and existing capabilities? Are the aspirations clear? Do these create energy on the front line? Are the cost savings goals incorporated into local budgets? Is local leadership held accountable for targets? What in the company’s past will enable or hinder this? Thinking about the objectives, what are short term versus long term and how would you prioritize? How are people adhering to these goals and objectives?
How personally are you and the senior team excited? How aligned are the senior leaders? How important is the transformation to the senior team (e.g., career defining)? Does the senior team have any zealots who are willing to lead the transformation? How have past operations improvements been led?? How successful were these and what were the lessons learned?
High High performing performing senior teamsenior team
How holistic have your performance improvement initiatives been? What role have other functions (e.g., HR) played in transformation? Have the technical systems translated into daily, standard operations? How integrated are the technical changes into people processes? Does the culture embrace changes? Are mindsets ready for large scale, continuous improvement? Have any pivotal roles needed to lead the change been identified? How important is the transformation to this group?
Balanced Balanced and complete and complete approach approach
How ready are your line leaders (VP to front line supervisor) to drive change? Are line leaders capable of driving change across all dimensions? How are line leaders skill sets developed? Is there a system in place to support line leaders to initiate and lead change?
Driven by the Driven by the “line” leaders“line” leaders
How are you making change scalable? Has the need for change been established? Has it been defined so that change can be replicated within local contexts? What are the cross-cutting initiatives that create a foundation for change? Are you leveraging a common approach and toolset? What existing initiatives could be harnessed? Is there enough capacity in the organization to drive initiatives? Is there an existing continuous improvement organization? Is it capable of enabling the transformation?
Designed Designed for scalability for scalability from the from the beginningbeginning
“The culture of a company is thebehavior of its leaders.
Leaders get the behavior they exhibit and tolerate.
You change the culture of a company by changing the behavior of its leaders.”
-- Larry Bossidy & Ram Charan
Execution: The Discipline of Getting Things Done
Back up starts here….
30
Having the right people in pivotal jobs based on clear criteria
Managers seek the input of specialists for difficult problems/opportunities
People regularly engage in skill-building, most frequently on-the-job
Permanent tasks embedded in the line
People occasionally do other jobs across the same business process
Use of multiple methods (workshops, individual coaching, action learning)
Teams with clear roles Strong functional support CI steering group and
infrastructure Performance management with
target/path setting, visual tools, and an ongoing performance cycle
Talent management system with pivotal jobs assessment, talent management reviews, performance assessments
Formalized planning processes Standardized problem solving approach Knowledge building/sharing tools and processes
Training to open management’s eyes Regular, direct communication from senior management Front line teams hold short problem-solving sessions at the end
of every shift Individual front line staff suggest
specific ideas for improvement Front line staff participate in target
setting Front line teams use visible
indicators to track performance Clear road maps
Senior managers are personally and visibly involved at all levels of or the organization
Managers spend time working on front line teams Middle management provides daily role modeling on the
shop floor High-performing managers take on
roles that exceed their current competence
Specific Behaviors Drive Continuous Improvement
ContinuousContinuousImprovementImprovement
ChangeChangeLeadership andLeadership andRole ModelingRole Modeling
DevelopingDevelopingTalentTalentand Skillsand Skills
FosteringFosteringUnderstandingUnderstandingand Convictionand Conviction
Formal CIFormal CIMechanismsMechanisms
31
2222 Performance Management System:Focus On What Matters
Cascade key drivers of value down to the front line…
Continuously track performance against action plans…
Set overall top-down targets Identify the few key drivers of value & mobilize
Track & adapt
CEO and top team set aspirations and aggressive targets…
…which then cascade down to the individual business groups and units through an iterative process
…set razor sharp front-line goals vs. technical limits…
…and engage in rigorous perfor-mance dialogue process at all levels
CEOCEO
SVPSVP
GroupGroup
Plant/Plant/unitunit
Identify Identify counter-counter-measuresmeasures
Identify Identify counter-counter-measuresmeasures
Update Update plansplans
Update Update plansplans
Monitor Monitor performance performance
Monitor Monitor performance performance
Review Review performanceperformance
Review Review performanceperformance
Coach Coach and and
rewardreward
Coach Coach and and
rewardreward
Daily/weekly/monthly
…provide production tools…
Frontline problem solving – “Minds of the many”
Expert problem solving – “Minds of the few”
…and mobilize
TargetTech.Limit
Value 1% Improvement
80 95 $3 million75 98 $1 million
– – –– – –– – –– – –
Mine Mine EPEP
ThroughThrough
Tons/hourTons/hour
AvailabilityAvailability
Perf.Today
9080
––––
revenuerevenue
Processing Processing
revenuerevenue
WetmillWetmill /AC /AC
contributioncontribution
WetmillWetmill /AC /AC
contributioncontribution
Processing Processing
contributioncontribution
Processing Processing
contributioncontribution
ThroughThrough --
putput
ThroughThrough --
putput
PricePricePricePrice
Roaster Roaster
contributioncontribution
Roaster Roaster
contributioncontribution
Variable Variable
costs ($/t)costs ($/t)Variable Variable costs ($/t)costs ($/t)
Fixed Fixed
costscosts
Fixed Fixed costscosts
Cash costCash costCash costCash cost
Tons per Tons per
hourhourTons/hourTons/hour
AvailabilityAvailabilityAvailabilityAvailability
RecoveryRecoveryRecoveryRecovery
GradeGradeGradeGrade ElectricityElectricityElectricityElectricity
ConsumConsum --
ablesablesConsumablesConsumables
Gas Gas
handlinghandling
Gas Gas
handlinghandling
OtherOtherOtherOther
LabourLabourLaborLabor
Mtce Mtce partspartsMtce Mtce partsparts
OtherOther
Open pit Open pit
costscosts
Open pit Open pit
costscosts
U/G costsU/G costsU/G costsU/G costs
Other costsOther costsOtherOthercostscosts
Capital Capital
chargecharge
Capital Capital
chargecharge
Mine EPMine EPMine EPMine EP
XX
++
XX
++
++
––
++ --
Waste walks
Shift huddles
Site needs assessments
Performance boards
“
31
32
Understand who your best people are
Put the right people in the right numbers in the right jobs
…and visibly reward strong performance and systematically deal with under-performers
…support people, both formally and informally…
Po
ten
tia
l
Performance
B
A
A+
C
B
A
C-
C
B
Training Coaching
Develop , incent and reward people
Identify pivotal jobs…
…assess the critical gaps…
…and put the right people in the right jobs
Assess individuals in the organization…
…and rank them on their performance and potential
Create individual development plans…
Individual development plan
Train on EngagementAssign to retention project Rotate in 6 months
BRating
Really executes Rigorously plans and executes
Stays focused on what counts
Provides solutions, not excuses
Makes tough decisions
Relishes change Drives change
Thinks outside the box
_______ good ideas
Rallies the troops Inspires others
Earns trust
Develops leaders
Communicates effectively
Represents the best of Barrick
Recognizes excellence
Acts with integrity
Promotes safety, protects environment
Contributes to community
Focuses on shareholder value
4 – Towering strength, role model to others
3 – Solid, usually demonstrates
Name:
Completed by:
A. Personal Information
Date:
Current Position: Supervisor:
Experience at Barrick
B. Historical Background
Dates Site Position
Work experience in other companies
Dates Company Position
EducationDates Institution Degree/Diploma
Results against KPIs and other goals
C. Results
KPI or goal Target Result Comments
1.
2.
3.
4.
5.Other contributions during the course of this year
D. Leadership attributes – Barrick’s 5R’s
Rating 1-4
Stretch
Shine
Succeed
Search
E. Individual career aspirations
Are there any changes in responsibility or development opportunities you would like in the next year or two?
Are you willing to relocate to another site? Yes No Maybe
Performance Summary
Branch 52 31 4Pivotal job
Assistant Manager
Admin Assistant
Financial advisor #1
Customer Service Manager
CSR #1
Branch Manager
Wealth Management Manager
Customer Service Leader
Potential opportunity ($000)
V
V
CSR #2
CSR #3
Financial advisor #2
$950 $780 $600 $450 $670
V
Branch 52 31 4Pivotal job
Assistant Manager
Admin Assistant
Financial advisor #1
Customer Service Manager
CSR #1
Branch Manager
Wealth Management Manager
Customer Service Leader
Potential opportunity ($000)
V
V
CSR #2
CSR #3
Financial advisor #2
$950 $780 $600 $450 $670
V
Bonus
$
Performance
“C” Player
“A” Player“B” Player
VacantV
C
A
Change Leadership: Right People in Right Place Driving Change
Skills Grid
Category Poor GoodVery Good
Problemsolving
Leadership
Communication
Execution
X
X
X
X
Hiring profileRole:
Skills:
1111
32
33
3333
Use technical experts when needed
Deploy a robust, “best of breeds” toolkit relevant to basic materials industries
Apply a rigorous, structured problem-solving approach
Standardize Standardize and controland control
Define Define problem and problem and set goalsset goals
Analyze Analyze current current situationsituation
Generate Generate potential potential solutionssolutionsSelect and Select and
plan plan solutionsolution
Implement Implement solutionsolution
Evaluate Evaluate solutionsolution
DC
A
1
2
3
4
5
6
7
P
Distinctive, general problem-solving approach (e.g., McKinsey’s 7-step problem solving, Lean, orSix Sigma – DMAIC) systematically used to:
Fix problems
Proactively drive continuous improvement
“Academy” training center providingin-house training on best approach
Analytical tools selected based on their relevance and adapted to the specific manufacturing process
Selection, development and deployment of pivotal processes necessary to deliver value
Capability maps are useful for broad systematic improvement in all areas, not just those targeted for improvement
Mile wide vs. mile deep impact
Develops a common languageacross network
Unique expertise to solve highly technical problems
Highly skilled trades people and engineers who provide subject matter expertise and can be leveraged for general problem-solving acumen and change leadership know-how
Similar approach to address functional performance issues
Learning Organizations:Enhanced By Problem-solving, Tools & Expertise
33
34
Codification of successful operational frameworks and problem-solving approaches
Networks of people within and external to the line to support best practice sharing
Knowledge management and systems to capture and share learnings
High-potential, specially trained problem-solving leaders/ coaches outside the line
Lives longer than the program implementation; becomes the catalyst for change within the organization over time
Clearly defined facilitation/ coaching roles vs. line management
Create a dedicated center of excellence to coach line
operations
Define training approaches to up-skill and ensure continuous learning
Company-led programs to train leading practitioners within the organization, adopting a mix of techniques including
Learn by doing
Shadowing/coaching
Developmental assignments
Selective technical and analytical classroom sessions
Deploy knowledge management processes/
systems
Change Change coachcoach
Site Site Mgr 1Mgr 1
Area 1Area 1 Area 2Area 2
Site Site Mgr 2Mgr 2
Area 1Area 1
Change Change coachcoach
Area 2Area 2
Change Change leaderleader
Capability-Building System:Provides Coaching & Supporting Infrastructure
3333
34
35
4444
SensingA blend of organizational structures, processes and capabilities to identify and interpret internal and external opportunities
AdaptingIntervening decisively to change the organization so that it can move in new directions while preserving existing and letting go of old ones
Modify
The ability to act on new opportunities while preserving and enhancing existing activities and building competitive advantage
Capitalize
The ability to extract increasing value over time by complementing expansion/growth with operational improvements
Capture
Ability to capture important information, ideas, perspectives, and opportunities from a variety of internal and external sources
Channel
Ability to ensure that the captured opportunities are fully developed and then tested/evaluated against formal criteria
Specify
Ability to assess, prioritize and select available opportunities for value creation
Let go
The ability to stop old activities/ behaviors/ mindsets while having the appropriate systems/ processes to protect people and reduce fear
Systematically Re-assess Status:Draw Implications by Sensing & Adapting