How Good Are You?: Strategies For Assessing Your Progress Towards Performance Excellence

Title Slide
How Good are You?
Strategies for Assessing Your Progress

Towards Performance Excellence
Kevin McManus
Chief Excellence Officer
Great Systems
www.greatsystems.com
Behaviors
Systems R Beliefs
Culture
© Copyright 2015, Great Systems, All Rights Reserved
What is Process Excellence?
WHAT is process excellence?

Minimal waste, consistent improvement, best in class at
meeting or exceeding customer expectations
HOW do you achieve it?

Define and build process excellence into EVERY
employee’s daily job
HOW do you know if you are making progress?
1.  Sustained improvement over time (3-5 years)

2.  Sustained improvement in all areas of importance
3.  Nearing or at ‘best in class’ levels

Performance Excellence and TapRooT®
Investigation Process
REACTIVE RCA Process
CA Implementation Process
Process
How do we find our causal factors?
Excellence
Effective Use of Audits (PCFs)
PROACTIVE Daily Error & Defect Reduction
32 NI Best Practice Spectrums

Why Can’t We Go Faster?
Faulty work systems are similar to restrictor

plates on NASCAR vehicles
We ask our people to drive faster, but we leave

the restrictor plates on at the same time.
If we want to go faster (higher levels of

performance), we have to take the plates off.

Three Key PE Restrictors
Employee turnover rates are high
You can’t spend time on process improvement if you

are spending time bringing new people up to speed
Span of control ratios are too large
Spans of control have gotten very out of

control in many, if not most organizations
Little time exists for process improvement
You can’t go to the bank and take out a ‘time loan’ and
most people aren’t going to spend more time on the job

What’s Holding Us Back?
We have not learned from the past
We don’t see all work as a process
HIGH
We don’t use our process
% of Processes DMAI’d
improvement tools
High
Efficient
Performance
Workplace
We only engage a small Workplace
percentage of our people
Traditional Engaged
We can’t find time for Workplace Workplace
improvement
LOW % of Workforce Engaged HIGH

The Key to Sustaining Process Excellence
Every process owner should be

responsible for tracking and trending
process performance and process waste
on a regular basis, and for using that
information to improve those processes.

Why Won’t They Change?
What is the fastest and

easiest way to change
human behavior?
Change the system!

The Key QuesZon!
Is a high Baldrige score an
indicator of performance
excellence?
1,000
900
800
700
600
500
400
300
2012 2013 2014 2015 2016

Why I Believe in Baldrige
Results account for 45% of the total possible points
The beauty of the scoring guidelines
You determine what is important – measures, strategies, markets,

and stakeholders
The criteria are based on 11 powerful core values
The NaZonal Baldrige Performance Excellence Program

pracZces what it preaches!
The stock performance of past NaZonal Baldrige Award

recipients
A PerspecZve Shib
With Baldrige, a 50%

score is a sign of
success, not failure!

A Closer Look at Baldrige
Quality Award Process
Criteria Design Scoring Guidelines
Point Mix %
Approach / Deployment
7 Categories - 17 Items
Does it exist? Improved?
11 Core Values Well deployed? Integrated?
Key Factor-based Results
Levels and Comparisons?

What and How Questions Trends?
Key areas?
Integrated?

Baldrige Core Values
Visionary leadership Managing for innovation
Customer-driven Management by fact

excellence
Organizational and Social responsibility
personal learning
Valuing employees and Focus on results and
partners creating value
Agility Systems perspective
Focus on the future
Source: 2015-‐2016
© CBopyright
aldrige E2xcellence
015, Great FSramework
ystems, All ”R, ights
NIST, 2015
Reserved
Steps Toward Mature Processes

Five Key Concepts
All work is a process
All processes produce results
Systems shape culture
Systems give you what they

are designed to give you
People make the difference

From ReacZve to
ProacZve – Baldrige Style
Source: 2015-‐2016
© CBopyright
aldrige E2xcellence
NIST, 2015
Reserved
2015-‐16 Baldrige Criteria Scoring
1 Leadership 120
2 Strategic Planning 85
3 Customer Focus 85
4 Measurement, Analysis, & Knowledge 90
Management
5 Workforce Focus 85
6 OperaZons Focus 85
7 Results 450
Source: 2015-‐2016
© CBopyright
aldrige E2xcellence
NIST, 2015
Reserved
Twelve Basic Process Requirements
How do your senior leaders lead

Leadership the organization?
How do you govern your organization and
fulfill your societal responsibilities?
How do you develop your strategy?

Strategy
How do you implement your strategy?
How do you obtain information from your

Customers customers?
How do you engage customers by serving

their needs and building relationships?
Source: 2015-‐2016
© CBopyright
aldrige E2xcellence
NIST, 2015
Reserved
Twelve Basic Process Requirements (cont.)
Measurement, How do you measure, analyze, and

Analysis, and improve organizational performance?
Knowledge How do you manage your organizational knowledge
Management assets, information, information technology
infrastructure?
How do you engage your workforce to achieve

Workforce a high-performance work environment?
How do you build an effective and supportive
workforce environment?
How do you design, manage, and improve

Operations your key products and work processes?
How do you ensure effective management of
your operations?
Source: 2015-‐2016
© CBopyright
aldrige E2xcellence
NIST, 2015
Reserved
How Do Your Leaders Lead?
Our workforce knows our organizaZon’s mission SD D AD A SA

(what we are trying to accomplish)?
Our workforce knows our organizaZon’s vision

SD D AD A SA
(where it is trying to go in the future)?
Our leadership team uses our organizaZon’s SD D AD A SA

values to guide our organizaZon and employees.
Our leadership team creates a work environment SD D AD A SA
that helps our employees do their jobs.
Our leadership team shares informaZon about the

SD D AD A SA
organizaZon.
Our leadership team asks employees what they

SD D AD A SA
think.
Source: “Are
© W e Making
Copyright Progress
2015, Great a s Leaders?”,
Systems, NIST,
All Rights 2011
Reserved
How Do You Plan?
As our leadership team plans for the future, we SD D AD A SA
ask our employees for their ideas.
Our organizaZon encourages totally new ideas

SD D AD A SA
(innovaZon).
Our employees know the parts of our SD D AD A SA

organizaZon’s plans that will affect them and their
work.
Our employees know how to tell if they are

SD D AD A SA
making progress on their work group’s part
of the plan.
Our organizaZon is flexible and can make SD D AD A SA

changes quickly when needed.
Source: “Are
© W e Making
Copyright Progress
Systems, NIST,
All Rights 2011
Reserved
How Do You Engage?
Our employees know who their most important SD D AD A SA

customers are.
Our employees regularly ask their customers what SD D AD A SA
they need and want.
Our employees ask if their customers are SD D AD A SA

saZsfied or dissaZsfied with their work.
Our employees are allowed to make decisions SD D AD A SA

to solve problems for their customers.
Our employees also know who our SD D AD A SA

organizaZon’s most important customers are.
Source: “Are
© W e Making
Copyright Progress
Systems, NIST,
All Rights 2011
Reserved
How Do You Measure,
Analyze, and Share?
Our employees know how to measure the quality SD D AD A SA
of their work.
Our employees use this informaZon to make SD D AD A SA
changes that will improve their work.
Our employees know how the measures they use SD D AD A SA
in their work fit into our organizaZon’s overall
measures of improvement.
Our employees get all the informaZon they SD D AD A SA
need to do their work.
Our employees know how our organizaZon SD D AD A SA

as a whole is doing.
Source: “Are
© W e Making
Copyright Progress
Systems, NIST,
All Rights 2011
Reserved
How Do You Work and Grow?
Our employees cooperate and work as a team. SD D AD A SA
Our leadership team encourages and enables

SD D AD A SA
our employees to develop their job skills so
they can advance in their careers.
Our employees are recognized for their work. SD D AD A SA
Our organizaZon has a safe workplace. SD D AD A SA
Our managers and our organizaZon care about SD D AD A SA

our workforce.
Our workforce is commiped to our SD D AD A SA

organizaZon’s success.
Source: “Are
© W e Making
Copyright Progress
Systems, NIST,
All Rights 2011
Reserved
How Do You Provide
Customer Value?
Our employees can get everything they need to SD D AD A SA
do their jobs.
Our organizaZon has good processes for
SD D AD A SA
doing its work.
Our employees have control over their SD D AD A SA

personal work processes.
Our organizaZon is prepared to handle

SD D AD A SA
an emergency.
Source: “Are
© W e Making
Copyright Progress
Systems, NIST,
All Rights 2011
Reserved
2015-‐16 Baldrige
Results Points
7.1 Product and Process Results 120
7.2 Customer Focused Results 80
7.3 Workforce Focused Results 80
7.4 Leadership and Governance Results 80
7.5 Financial and Market Results 90
Source: 2015-‐2016
© CBopyright
aldrige E2xcellence
NIST, 2015
Reserved
How Good are Your Results?
Do you know your key measures?
Do you have trend data for each of your key

measures?
Is there a consistent, posiZve trend over 3 to 5 years?
Is each area of importance measured?
Does your segmented data show consistent, posiZve trends?
Do you have‘best in class’ comparison measures?

How Good are These Results?
Survey Response: Our leaders consistently support the mission of the hospital
90%
Percent That Agree or Strongly Agree
89%
88%
87%
System
86%
Nursing
85% Physicians
Admin
84%
PG Avg.
83%
82%
81%
80%
2003 2004 2005 2006 2007

Key Work System Needed?
What are your
Improvement opAons?
YES YES
Have Use
Improve It
It? It?
NO NO
NO Is It YES
NO
Want Use and
EffecAve
It? Improve
?
YES
What are
your design
Design and
opAons? Use and Improve
Build
Example Work Systems
MUST Systems WANT Systems
Leadership Development Best PracZce Sharing

Strategic Planning Individual Development
Complaint ResoluZon RelaZonship Growth
Outcome Measurement In-‐Process Measurement
Leader CommunicaZon Technology UZlizaZon
Avenues Planning
Hiring process Supplier Management
Customer Listening Posts Community Support
Example Mature System
Mission, Vision, and Values
Increase / Decrease Belief and Behavior High Performance Job

Objectives Expectations Description
Leadership
Personal Development Plan
Curriculum Leadership
DEFINE
Communications Plan
Index
Process Leadership
Improvement Scorecards
Plans
IMPROVE Development
MEASURE and
Process Dashboards
Community
Involvement Annual Survey
Process
ANALYZE Results
Customer Annotated Survey Feedback

Listening Posts Trend Lines Meetings
Performance Review Process

Measuring Leader Behavior
My manager or supervisor …
1. Works with me to define the expectations of my job SA A AD D SD

2. Helps us find ways to do our jobs better SA A AD D SD
3. Is willing to spend time listening to my concerns SA A AD D SD
4. Lets me know when I have done a good job SA A AD D SD
5. Asks for my ideas about things affecting our work SA A AD D SD
6. Treats me with respect and dignity SA A AD D SD
7. Keeps me informed about things I need to know SA A AD D SD
8. Lets me do my job without interfering SA A AD D SD
9. Makes an effort to understand my point of view SA A AD D SD
10. Keeps favoritism from being a problem in our workgroup SA A AD D SD
11. Makes sure that continuous improvement is part of my daily job SA A AD D SD
LI = 45%
Which leaders should be measured with an index?

What minimum score should be considered acceptable?
How long should we tolerate ‘poor performance’?
Improving Your
Leadership System
Provide feedback at annual reviews

At Start
Meet regularly to review performance and plan
Formally define acceptable leadership practices

First Cycle
Use peer or 360 reviews as feedback tool
Begin using bottom-up leadership index process

Second Cycle
Link training events to leadership improvement
Create succession plan for all leadership levels

Third Cycle
Install mentor process for leadership cross training

Most Baldrige-‐based training has its roots in naZonal
Examiner training (applicaZon-‐based)
Most self assessments focus primarily on covering the criteria
Few self assessments properly consider the affect of the

scoring guidelines and key factors
Few self assessments help idenZfy key linkages and

integraZon between systems
Deployment and integraZon are difficult to assess without a
site visit

Self Assessment OpZons
Pick a scoring band and jusZfy why you did not

go higher
Use the “Are We Making Progress as

Leaders?” assessment to do a gap analysis
IdenZfy key approaches for each of the 12 process Items, along
with deployment, refinement, and integraZon examples
Define your key metrics and complete 5 results scoring

matrices
Have a 50 page applicaZon assessed by a team of
Examiners

High Performance Building Codes
Leadership behavior should be measured

A plan exists for using new technologies
Trend lines are maintained for all key measures
All employees benefit from some form of profit sharing
Each key process has its own balanced scorecard / KPIs

Safety, quality, cost, and people ‘gauges’ should be on all scorecards
All process owners capture key process counts, raZos, and errors daily
Key errors, problems, and defects are captured daily and crunched weekly
Cross-‐funcZonal project teams are consistently used to drive step change
All work teams are engaged in daily process review, analysis, and improvement

Top 10 Places to Start
Define your leadership team

Complete the five secZons of the OrganizaZonal profile
Diagram your strategic planning process
Setup a spreadsheet for trending your key measures
Define 3-‐5 year trends and comparisons for each measure
IdenZfy stakeholders and their requirements
IdenZfy customer segments and their requirements
Diagram your key work processes / systems – value stream map
Define your customer / stakeholder listening posts
Define your process for measuring saZsfacZon and
dissaZsfacZon of customers, stakeholders, and associates

Contact InformaZon
E-mail: Kevin@greatsystems.com
Cell: 206.226.8913
Land: 503.556.0204
Skype: capkaizen
Website: www.greatsystems.com
Root Cause Analysis: www.taproot.com
If you would like more information, please send me an e-mail

with a request specifying your needs.

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Title Slide

How Good are You?

Strategies for Assessing Your Progress

WHAT is process excellence?

HOW do you achieve it?

HOW do you know if you are making progress?

1. Sustained improvement over time (3-5 years)

© Copyright 2015, Great Systems, All Rights Reserved

REACTIVE RCA Process

Effective Use of Audits (PCFs)

PROACTIVE Daily Error & Defect Reduction

32 NI Best Practice Spectrums

© Copyright 2015, Great Systems, All Rights Reserved

Faulty work systems are similar to restrictor

We ask our people to drive faster, but we leave

If we want to go faster (higher levels of

© Copyright 2015, Great Systems, All Rights Reserved

Employee turnover rates are high

You can’t spend time on process improvement if you

Span of control ratios are too large

Spans of control have gotten very out of

Little time exists for process improvement

© Copyright 2015, Great Systems, All Rights Reserved

We have not learned from the past

We don’t see all work as a process

LOW % of Workforce Engaged HIGH

© Copyright 2015, Great Systems, All Rights Reserved

Every process owner should be

© Copyright 2015, Great Systems, All Rights Reserved

What is the fastest and

Change the system!

© Copyright 2015, Great Systems, All Rights Reserved

© Copyright 2015, Great Systems, All Rights Reserved

Results account for 45% of the total possible points

The beauty of the scoring guidelines

You determine what is important – measures, strategies, markets,

The NaZonal Baldrige Performance Excellence Program

The stock performance of past NaZonal Baldrige Award

With Baldrige, a 50%

© Copyright 2015, Great Systems, All Rights Reserved

Quality Award Process

Criteria Design Scoring Guidelines

11 Core Values Well deployed? Integrated?

Key Factor-based Results

Levels and Comparisons?

© Copyright 2015, Great Systems, All Rights Reserved

Visionary leadership Managing for innovation

Customer-driven Management by fact

© Copyright 2015, Great Systems, All Rights Reserved

All work is a process

All processes produce results

Systems shape culture

Systems give you what they

People make the difference

© Copyright 2015, Great Systems, All Rights Reserved

How do your senior leaders lead

How do you develop your strategy?

How do you obtain information from your

How do you engage customers by serving

Measurement, How do you measure, analyze, and

How do you engage your workforce to achieve

How do you design, manage, and improve

Our workforce knows our organizaZon’s mission SD D AD A SA

1.  Sustained improvement over time (3-5 years)