Out of the Present Crisis

Transcription

1 Out of the Present Crisis Rediscovering Improvement in the New Economy Terence T. Burton CRC Press Taylor & Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Croup, an informa business A PRODUCTIVITY PRESS BOOK

2 Preface '. xix Acknowledgments xxix About the Author xxxi Chapter 1 The Seeds of Continuous Improvement 1 Introduction 1 Continuous Improvement: A Brief History for the Uninitiated 2 My Early Lessons in Continuous Improvement 8 Grandpa Harrington's Farm 9 Off to the University 11 Benny, the Shop Steward 12 The Latest Wave of Improvement 15 Improvement Excellence : The New Model of Improvement 16 Reinventing Deming's Fourteen Points 17 Infrastructure: The Foundation of Continuous Improvement 18 Behavioral Alignment: The Bedrock beneath the Foundation 19 Summary Points 20 Bibliography 21 Chapter 2 Infrastructure Overview: Accelerating Continuous Improvement 23 Introduction 23 A Quick Lesson on the Basic Essentials 23 The Improvement Bathtub Curve 26 The Relationship between Diminishing Value and Waste 28 Payoffs through Layoffs Are Not Improvement 28 The Next Generation of Improvement 30 The Philosophy of Improvement Excellence 30 The Improvement Excellence Framework 32 DMAIC the Common Language of Improvement 33 Implementation Infrastructure 35 Building the Sustaining Improvement Infrastructure 36 Infrastructure Element: Strategic Leadership and Vision 37 Infrastructure Element: Deployment Planning 38 Infrastructure Element: Execution 39 Scalable Lean Six Sigma 41 Continuous Improvement: No Longer a Fad or Option 43 Bibliography 46 XIII

3 Chapter 3 Leadership: Building A High-Performance Culture 47 Introduction 47 Leadership Transformation in the New Economy 47 History Lesson: Is Leadership the Real Problem? 50 A Root Cause Analysis on Leadership 51 Breaking Out of the Leadership Quagmire 55 The Most Important Choice: Behavioral Alignment 56 Behavioral Alignment Begins in the Executive Suite 56 So, How Do We Align Organizational Behaviors? 58 Best Practice Leadership Behaviors 60 Vision 60 Knowledge 62 Passion, 62 Discipline 64 Conscience 65 Excellence Is a Journey 67 Begin the Journey Right 67 It Is Time to Go Downtown 69 Bibliography 69 Chapter 4 Setting a Renewed Course of Improvement 71 Introduction 71 The Philosophy of Improvement 71 Innovation Requires Enlightened Leadership 73 Maslow Upside Down 76 Business Diagnostic: The Fact-Based Foundation 77 Executive Education and Development 80 Improvement Strategy and Vision 82 The Formal Leadership Implementation Infrastructure 84 Policy Deployment: Prioritizing and Cascading Target Opportunities 86 Continuous Improvement Rediscovered and Under Way 87 Bibliography 89 Chapter 5 Deployment Planning for Rapid and Sustainable Results 91 Introduction 91 The Consequences of Poor Deployment Planning 91 Developing the Deployment Plan 95 How to Develop the Deployment Plan 97 The Macrocharter 98 Project Selection 98 Project/Resource Alignment 98

4 xv Team Assignment 98 Project Charter 99 Microcharters 99 More Than a Plan 100 Customized Education and Talent Development 101 How to Tailor Education to Business Improvement Requirements 103 Communication and Stakeholder Engagement 105 Developing an Effective Communications Strategy 105 Getting Off to an Unstoppable Start 107 Basic Change Management Essentials 107 The Power of Power Hits 109 Bibliography, 110 Chapter 6 Execution and Sustainability Ill Introduction Ill Thawing Out the Freeze Ill Launching with the Best in Mind 113 The Components of Talent Management 113 Leveraged Mentoring 115 Proven Continuous Improvement Expertise 117 Business Process Experience 117 Knowledge of Best Practices 118 Multi-Industry Executive Experience 118 Integration of Enabling Technology 121 DMAIC the Process of Continuous Improvement 123 The Continuous Process of Financial Validation 124 Accelerate Individual Project Paths 125 Integration of Improvement Methodologies 126 Appreciate the Simple Stuff: Checklists, Templates, Visuals, Flags, and Paeans 128 Complete the C in Control 129 Concurrent Continuous Improvement 131 Improving How We Improve 131 Translate the Systematic Process into Breakthrough Results 133 Bibliography 135 Chapter 7 Transforming Culture through Internalization 137 Introduction 137 The Cultural Checkup 138 The Broken Moral Compass 139 The Dynamics of Culture Change 141 Velocity of Improvement 143

5 XVI Contents Magnitude of Improvement 143 Sustainability and Adaptability of Improvement Process 143 Critical Mass Acceptance 144 What Is Internalization? 144 Projection 145 Introjection 146 Identification 146 Incorporation 147 Socialization: The Operating System of Internalization 147 Measuring the Success of Continuous Improvement 148 Strategic Leadership and Vision Metrics 149 Deployment Planning Metrics 149 Execution Metrics 151 Great Cultures Attract Success 153 Bibliography 154 Chapter 8 The Role of Technology in Strategic Improvement 155 Introduction 155 The Changing Role of CIOs 155 The Emergence of Transactional Enterprises 156 Technology Is Not Stopping for Complacency 158 Avoiding Technology Entrapment 160 Technology Enables Rapid Deployment, Rapid Results 163 Scrubbing and Removing the Black-and-White Spaces 164 The Fusion of Technology and Improvement 166 Technology: The Superaccelerator to Cloud Improvement 168 Bibliography 170 Chapter 9 The Multimillion-Dollar List of Improvement Opportunities in Manufacturing, Distribution, and Service Corporations 171 Introduction 171 Strategic Management 172 Strategic Planning Process 172 Acquisition and Integration 172 Global Outsourcing Strategy 173 New Product Development 174 Concept Development 174 New Product and Services Development Process 175 Software Development Process 176 Global Commercialization 177 Global Supply Chain Management 177 Sales and Operations Planning (Single-Plan Concept Sales, Operations, Finance) 177

6 xvii " Global Planning, Logistics, and Control 179 Supplier Development and Management 180 Quality, Compliance, and Regulatory Management 180 Quality Management Systems 180 Warranty and Returns 181 Sales and Marketing 182 Innovation and Market Research 182 Request for Quotations 183 Product Management and Rationalization 184 The Selling Process 185 Advertising and Promotion Effectiveness 186 Customer Service 187 Financial Management 188 Financial Close Process 188 Excess and Obsolete Inventory 189 Invoicing and Collections 189 Real Estate and Facilities Management 190 Global Space Management 190 Strategic Utilities, Reclamation, and Waste Management 190 Human Resource Management 191 Talent Acquisition and Management Process 191 Benefits Package Value Analysis 192 Information Technology 192 Enterprise Architecture Process Improvement 192 IT Value Analysis 193 Balanced Performance Management Systems 193 Summary 196 Bibliography 196 Chapter 10 Strategic Improvement in Hospitals 197 Introduction 197 The Starving Beast 197 Postponing the Obvious 199 Reinventing Hospitals with Lean Six Sigma 199 Enlightening Hospital Leadership 201 Reckoning Improves the Journey 203 Thinking Process, Not Silos 205 The Value Proposition of Lean Six Sigma 208 Defining and Quantifying the Entitled Benefits 209 Is a 10X, 50X, or 100X Annualized ROI Compelling Enough? 210 A Lean Six Sigma Implementation Plan for Hospitals 212 Improvement Is Preventive Medicine, Not Life Support 215 Bibliography 216

7 xviii Contents Chapter 11 Strategic Improvement in Government 219 Introduction 219 Waste Is Everywhere and Growing Exponentially 220 The Entrenched Roots of Inefficiency 226 The Obsolete Government Model 226 Lawyer-Up Leadership 228 Talent Neutralization 229 The Economic Meltdown: A Root Cause Analysis 230 Background 230 Analyzing Root Causes of Failure 233 Would Improvement Have Saved the Day? 236 Lessons Learned 237 Urgent Need: The Industrialization of Government 238 The Most Important Action: Voting Out Waste 240 A Complete Leadership Overhaul 240 The Government Turnaround Plan 242 Stage 1: Basic Leadership Containment and Controls 243 Stage 2: Immediate Analysis and Corrective Actions 245 Stage 3: Formal Improvement (Lean Six Sigma, Outsourcing, Enabling Technology, etc.) 246 Stage 4: Keeping Government Healthy and Trustworthy The Call to Action 249 Bibliography 250 Chapter 12 Epilogue 251 Index 257