UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE… · 2015-09-10 · Lean means less of many things...
Transcript of UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE… · 2015-09-10 · Lean means less of many things...
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UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE Callie Woodward Driving change through continuous improvement
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We will explore… • How Continuous Improvement increases the focus on changes
that create value to the customer • Tim’s Journey • Addressing the cultural impact of Continuous Improvement • How OD and CI can be used in parallel to improve
organizational results • Meeting resistance head on: addressing management and
employee concerns.
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Topics
•Continuous Improvement 101 •Tim Hortons’ Continuous Improvement Journey
•Building a Continuous Improvement Culture
•A Continuous Improvement Strategy •How to build a Roadmap.
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CI 101
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Continuous Improvement (CI)
CI is the consistent evolution of the business driven by principles embedded in the organizational culture and delivered through a framework of integrated disciplines, e.g.: •Lean management •Six Sigma •Project management •Change management
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Continuous Improvement Thinking is about ... Always focusing on customer needs and value
Fostering continuous change and working with teams to come
up with solutions Sustaining improvements - tools, rules, and principles
Making process improvement a part of daily life - the
Plan-Do-Check-Act cycle
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Continuous Improvement is about people! • Engaging all minds • Developing people • Empowering people
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Critical Concepts of Lean
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What is ‘Lean’? • The ability to accomplish more with less and more…
• Lean means less of many things — less waste, shorter cycle times, fewer suppliers, less bureaucracy.
• But Lean also means more — more employee knowledge and empowerment, more organizational agility and capability, more productivity, more satisfied customers, and more long-term success.
“Lean has brought to everyone vastly improved products and services — and it’s brought them faster, cheaper, and more reliably.”
Lean for Dummies (Natalie Sayer, Bruce Williams, 2007)
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The pursuit of the perfect process
• You are in business to sell products and services to customers.
• It is the customer, and only customer, who establishes what is of value.
• You design processes that create value for your customer. • Waste can creep in to your process and diminish the process
of value creation.
A perfect process has no waste. Perfect processes maximize customer value.
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Process Flow
3 2 1
“Can Do Capacity”
Before: Well-intentioned Chaos
After: Orderly Sequenced Aligned Team Based
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A Continuous Improvement Organization is……Consistently
•Engaging and satisfying customer(s). •Focused and aligned to realize opportunities
•Proactively Innovative •Continuously identifying and realizing opportunities within the market place.
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Koffee Kaizen
• Please run Koffee Kaizen
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TIM’S JOURNEY
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Why CI at Tim Hortons?
• Lean launched in 2008 to: • Improve competitive advantage through continuous
improvement • Recognize a Lean cultural evolution could have
significant impact to the organization • Strong alignment between our values and key Lean
principles
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Tim’s Past: Where we came from… • Why embark on a CI Journey?
• Can not operate in the future as we have in the past • Managing our growth and scale • Utilizing resources better (time, treasury, & talent)
• What we set out to gain
• 30-50% improvement – capacity (do more with the same), quality (do it better), time (do it faster) and cost (do it cheaper)
• Employee engagement – ownership of problems and opportunities, increased job satisfaction and work-life balance
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Tim’s Roadmap
Tim Hortons' CI Maturity
2008 2011-2012
• Governance Structure
• CI priorities
2009
Time New CI practitioners Corporate CoE & Governance Legend: CI value stream and PM
• Value stream PowerChanges
• Governance Scorecard
• CI priorities
• Value stream PowerChanges
• Pilots
2010
• Strategy & VS Scorecards
• Ideation • Value stream
Training • E-learning • Apprentice
Program
• Standard Work • Co-location • More Pilots
• Strat-on-a-page
• Scorecards • Ideation • Continued
Training • CI Workshops
• 1st Level 3 Apprentice
• Operational projects
• Coaching
2013-2014 2017-2018 2015-2016
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• Delivers products to the end customer, with: • minimum waste • maximum quality • minimal cost
• Provides better customer value by responding more quickly, and predictably to customer needs
• Enables the organization to become more capable, efficient, and flexible
• Creates a process cycle that translates to superior financial performance
A Continuous Improvement environment …
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Flow first, the rest later!
• By focusing on immediate elimination of process bottlenecks and key areas of waste, improvements are realized sooner
• Further study, review, and enhancements can be applied after flow is implemented
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A “CI” CULTURE
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A Continuous Improvement Organization Culture is…… • Guest, Owner, and Employee Focused • Solution Finding vs Problem Solving • Efficient, Effective, Innovative • Fast, Flexible, Agile • Exciting, dynamic and invigorating • Top Down Managed & Bottom-up Lead • Collaborates Horizontally • Strategic Alignment across the organization • Disciplined Planning, Prioritization & Decision Making • Always learning
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Mass Production Lean Enterprise
Primary Business
• Product-focused strategy • Focus on economies of
scale
• Customer-focused strategy • Focus on shifting
competitive advantage
Organizational Structures
• Hierarchies with functional lines
• Encourages functional alignment
• Inhibits information flow
• Flat, flexible structures • Encourages individual
initiative and the flow of information
Operational Framework
• Following direction • Fear of problem
identification
• Standard work • Focus on problem
identification and experimentation
Characteristics of a Lean enterprise
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Rethinking hierarchy
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PDCA
IImprovements in Process Outputs
Disciplined and consistent focus for sustaining
improvements
Repeating the PDCA cycle can bring us closer to the goal - usually a perfect process!
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CI is a culture ‘evolution’ for Tim Hortons
.
Underlying Assumptions
Norms and Values
Artifacts and Behaviours
FROM…. …..TO
Pride in the Company
Passion and belief in the Brand
Collegiality and Fun
Silos, turf battles, divided camps One team, one goal, one voice
Unclear roles and decision rights Clear leadership and accountability
Bureaucracy and churn Efficient and fast coordination
Rushing to execute and keep up Planning, prioritizing… to execute with agility
Reacting to the market and competition
Insight and foresight to win in the market
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Our leadership behaviours
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Tight-Loose Cultures
www.izzoconsulting.com
Low Clarity High Empowerment
High Clarity High Empowerment
Low Clarity Low Empowerment
High Clarity Low Empowerment
Loose / Loose Tight / Loose
Tight / Tight Loose / Tight
Clarity
Empo
wer
men
t
Source: Dr. John Izzo, The Izzo Group
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Tim Hortons Values
We … are ‘Can Do’ We … Seek Opportunities We … Achieve Excellence We … are Fair and Ethical We … are an Amazing Team
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A “CI” STRATEGY
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Pain Points 1. Organization feeling hand-cuffed and clogged by decision
making? 2. Operates in silos and struggle to coordinate across? 3. Stretched and frustrated by rushed initiatives? 4. People practices fractioned? 5. Everyone collaborating? 6. Losing your competitive edge?
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What a CI organization does • Excels at Root Cause Problem Solving & Seeking Opportunities
Towards Perfection. • Measures what Matters and reacts accordingly • Collaborates Cross-Functionally through Processes • Disciplined Planning & Decision Making • Focused & aligned on Strategy, Mission & Values • Flawless Execution • Designs Smart efficient and effective processes, products and
services. • Adheres to Standards and Standardized Procedures • Sees every error and mistake as an opportunity to learn and progress
– not to blame. • Embraces Change • Fosters Employee Empowerment & Development
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Employee Capabilities Required • Mindset:
• “I have the skills and I want to use them to THI’s benefits” • Prioritization of activities, not all firefighting, time for CI
• Skills & Competencies: • Problem Solving Root Cause Analysis • Value Stream Mapping and Standards Design • CI Project Management (DMAIC) • Change Management • Lean & Six Sigma Methods • Strategic Planning and Deployment (Hoshin & x-chart) • Analysis and Reporting (scorecards) • Facilitation • Coaching & Mentoring • Leadership • Collaboration • Communication
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Organizational Support Requirements • Accountability, Governance & Reporting Framework • Forums & Opportunities for Practice and Learning, and Deployment • Forum for Prioritization, Strategy Alignment & Cascade/Deployment. • Training & Development • Appropriate Templates, Tools & Technology • Lean & Six Sigma • Standard guidelines and procedures • Forum for idea & solution generation • Rewards and Recognition • Resource & Succession Plans • Data Integrity and Reporting capability • Central CI group as “Guardian of the Process”. • Senior Leadership
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CI Model
Grass Roots (Bottom Up)
CI embedded in Strategy.
(Top Down) CI is Support Cavalry
Embedded Model.
(Workgroups and Gemba )
CI is everywhere as the key
management philosophy
overall
CI is a key and very important part of my role within the organization.
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Managing the transformational change
• Generating awareness through education and communication • Building skills through formal training and action learning • Evolving leadership behaviours • Addressing organizational structure implications • Ensuring effective governance
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CI Governance
Strategy Sponsorship
Process Management
Building Capability SI & CI Management
Continuous
Improvement Team
Senior Leadership
Team
Executive Team
Project Teams Execution Excellence
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Building Capability
Lean Fundamentals eLearning
Simulation
Pow
er C
hang
e (K
aize
n)
Leadership
Development (Tight/Loose)
Pow
er C
hang
e (K
aize
n)
Pow
er C
hang
e (K
aize
n)
Pow
er C
hang
e (K
aize
n)
Pow
er C
hang
e (K
aize
n)
Change Management
Project Management
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Strategy Deployment & Execution Continuous Improvement
Reporting Organizational Efficiency &
Effectiveness
Process Efficiency &
Effectiveness KTLO Projects
Strategic Project Management
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Cascading Strategy
Strategy
Process
Individual
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Measuring Results exposes Opportunities
Current YTD
New Product Introduction
Measure QTD% Fill Rate- Right Idea
Warehouse50%
% Fill Rate Ready To Go Supermarket
TBA
% Gate Passage Violation on First Iteration
TBA
% Process on Takt Time to PPP
TBA
Current YTD
Deveopment
Measure QTD
# Store Openings 100%
# Deficiencies TBA
Time to resolve Deficiencies TBA
ROI/ 1st years sales TBA
Current YTD
Work Place Injuries TBA
Supplier Scores TBA
Cost per Case TBA
Perfect Order 100%
Supply Chain
Measure QTD
Current YTD
Perfect Order TBA
Same Store Sales TBA
New Product Launches TBA
Development Plan 50%
Executive Strategy Scorecard
Measure QTD
Improvement Improvement Improvement
O P P O R T U N I T I E S
R E S U L T S
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Risks in CI transformations
Source: David Meier, Lean Associates, Inc.
Potential burn-out
Giving up early Failure to
develop depth
Failure to develop process
Belief that benefits are
over
Accepting “good
enough”
CI is not just the implementation of a set of tools. It is a commitment to the set of tenets and behaviours that creates a CI organization and keeps it there.
time Resistance Phase
Initial Success
Big Success
Slowing Down
Plateau Continuous Improvement
Proc
ess R
esul
ts
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Opportunities 1. Organization feeling hand-
cuffed and clogged by decision making?
2. Operates in silos and struggle to coordinate across?
3. Stretched and frustrated by rushed initiatives?
4. People practices fractioned? 5. Everyone collaborating? 6. Losing your competitive
edge?
1. Disciplined Planning & Decision Making
2. Collaborates Cross-Functionally through Processes
3. Flawless Execution 4. Fosters Employee
Empowerment & Development 5. Focused & aligned on Strategy,
Mission & Values 6. Designs Smart efficient and
effective processes, products and services.
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WHAT’S NEXT?
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0
1
2
3
4
5
Accountability to Lead Lean
Willing
Able
Standard Work & Reliable Methods
Idea Generation
Scorecards
Cascading Strategy
Integrated Value Stream Management
THI Lean Journey
THI Present: Where we are now…
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THI Future: Where we are going…
0
1
2
3
4
5 Accountability to Lead Lean
Willing
Able
Standard Work and Reliable Methods
Idea Generation
Scorecards
Cascading Strategy
Integrated Value Stream Management
THI CI Future Targets for 2018
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Tim’s Roadmap
Tim Hortons' CI Maturity
2008 2011-2012
• Governance Structure
• CI priorities
2009
Time
• Operational projects 20%
• CI projects 80%
• Coaching • Sustain PMO • Track
embedment
• Level 1 or 2 (100%)
• Level 3 (8%) • Level 4 (0.5%)
New CI practitioners Corporate CoE & Governance Legend: CI value stream and PM
• Sustain EPMO • Maintain
inventory of potential, CI initiatives
• Sustain toolkits
• Facilitate CI education
• Value stream PowerChanges
• Governance Scorecard
• CI priorities
• Value stream PowerChanges
• Pilots
2010
• Strategy & VS Scorecards
• Ideation • Value stream
Training • E-learning • Apprentice
Program
• Standard Work • Co-location • More Pilots
• Strat-on-a-page
• Scorecards • Ideation • Continued
Training • CI Workshops
• 1st Level 3 Apprentice
• Operational projects
• Coaching
• CI & PM framework
• Toolkits • Launch EPMO • Integrated
Scorecards • Learning
Strategy
• Operational projects (80%)
• CI projects (20%)
• Coaching • Standard Work
• Level 3 (1%) • Level 1 (50%)
• Sustain EPMO • Maintain
inventory of potential, CI initiatives
• Sustain toolkits • Facilitate CI
education
2013-2014 2017-2018 2015-2016
• Level 1 or 2 (100%)
• Level 3 (5%)
• Operational projects (50%)
• CI projects (50%)
• Coaching • Launch PMO
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Tim’s Roadmap
Tim Hortons' CI Maturity
2008 2011-2012
• Governance Structure
• CI priorities
2009
Time
• Project execution 20-40%
• CI leadership 60-80% ((Coaching, facilitation, standard work, sustain PMO, track embedment)
• Level 1 or 2 (100%)
• Level 3 (8%) • Level 4 (0.5%)
New CI practitioners Corporate CoE & Governance Legend: CI value stream and PM
• Ensure strategy alignment & integration
• Sustain EPMO • Maintain inventory of
potential, CI initiatives
• Sustain toolkits • Sustain CI capability • Drive adherence to
CI frameworks & standards
2013-2014
• Value stream PowerChanges
• Governance Scorecard
• CI priorities
• Value stream PowerChanges
• Pilots
2010
• Strategy & VS Scorecards
• Ideation • Value stream
Training • E-learning • Apprentice
Program
• Standard Work • Co-location • More Pilots
• Strat-on-a-page
• Scorecards • Ideation • Continued
training • CI workshops • Build roadmap
• 1st Level 3 Apprentice
• Project execution • CI leadership
(Coaching,, facilitation)
2017-2018
• Ensure strategy alignment & integration
• CI & PM framework
• Toolkits • Launch EPMO • Integrated
Scorecards • Facilitate CI
capability building
• Project execution (80%)
• CI leadership (20%) (Coaching, facilitation, standard work)
• Level 3 (1%) • Level 1 (50%)
• Ensure strategy alignment & integration
• Sustain EPMO • Maintain inventory
of potential, CI initiatives
• Sustain toolkits • Facilitate & review
CI capability
2015-2016
• Level 1 or 2 (100%)
• Level 3 (5%)
• Project execution (40-60%)
• CI leadership(40-60%) (Coaching, facilitation, standard work, Launch PMO)
![Page 48: UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE… · 2015-09-10 · Lean means less of many things — less waste, shorter cycle times, fewer suppliers, less bureaucracy. • But](https://reader033.fdocuments.net/reader033/viewer/2022053012/5f0f97947e708231d444ed3e/html5/thumbnails/48.jpg)
THI’s Lean Future: 2013-2014 • Building Capability & Seeding CI
• Communication of Continuous Improvement
opportunities and results.
• Strategy Cascade & Execution Support
• Accountability to Lead Lean
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Tim Q
Please run TimQ/ countdown