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Culture of Continuous Improvement - Full Presentation

How to create a culture of continuous improvement

John Gatehouse

on 1 August 2011

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Transcript of Culture of Continuous Improvement - Full Presentation

John Gatehouse Quality Innovation Productivity Prevention Why do we need
to improve? Staff
Technology We made a profit last year,
we must be doing well,
Why "rock the boat"? Rising Costs Shareholder Pressure Changing Client Needs PCT Mergers
Foundation Trusts
SHA Mergers
Split Books
Limited Companies
Social Enterprises
GP Consortia Changing
the culture Kotter's 8 Steps of Change Urgency Guiding Team Vision Comms & Buy In Enable Action Short Term Wins Don't Let Up Make It Stick Tools for improvement Lean Six Sigma The Four Boxes Define
Control Standardise Visual Alerts Improvement Problem Solving What is the problem?
Why is it a problem?
What are we trying to acheive?
Define the Scope How bad is the problem?
Who does it affect?
How many defects?
How does the existing process work? What are the possible causes?
Get to the root causes How can we solve the problem?
Which solution should we choose?
Pilot the solution Implement the solution
How can we check the solution is working?
Visual Alerts
Contingency Plans Questions? The Toyota Way Long Term Philosophy Right Process, Right Results Eliminate Waste Pull Systems Level Workloads Right First Time Standardise Visual Controls Use trusted, reliable tools Develop People Grow leaders to champion techniques Develop talent and teams to follow philosophy Respect the needs of customers and suppliers Cycle of Solving the Right Problem Go and see the problem Work together to solve the problem, then implement quickly Constantly reflect and improve Base decisions on a consistant philosophy 5 S's Sort: Sort out unneeded items
Straighten: Have a place for everything
Shine: Keep the area clean
Standardise: Create rules and standard operating procedures
Sustain: Maintain the system and continue to improve it 7 Wastes Overproduction

Waiting (time on hand)

Unnecessary transport or conveyance

Overprocessing or incorrect processing

Excess inventory


Defects 10 Management Principles Always keep the final target in mind.

Clearly assign tasks to yourself and others.

Think and speak on verified, proven information and data.

Take full advantage of the wisdom and experiences of others to send, gather or discuss information.

Share information with others in a timely fashion.

Always report, inform and consult in a timely manner.

Analyze and understand shortcomings in your capabilities in a measurable way.

Relentlessly strive to conduct kaizen activities.

Think "outside the box," or beyond common sense and standard rules.

Always be mindful of protecting your safety and health. “Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” -- Geert Hofstede Moving to a culture of continuous improvement Speak Easy Communication Group
Management Support Customer Service
Reinvented Process Working Groups
Client Working Groups
Supplier Working Groups Tools and training on
Visual Alerts
Problem Solving Four Boxes http://kotterinternational.com/KotterPrinciples/ChangeSteps.aspx STEP 1: Create a Sense of Urgency

Helping others see the need for change and the importance of acting immediately

Tactics that can make this happen include:

* Bringing the Outside In
* Behaving with Urgency Every Day
* Finding Opportunity in Crisis
* Dealing with NoNos STEP 2: Creating the Guiding Coalition

Putting together a group with enough power to lead the change.

In putting together a Guiding Coalition, the team as a whole should reflect:

* Position Power: Enough key players on board so that those left out cannot block progress.
* Expertise: All relevant points of view should be represented so that informed intelligent decisions can be made.
* Credibility: The group should be seen and respected by those in the firm so that the group’s pronouncements will be taken seriously by other employees.
* Leadership: The group should have enough proven leaders to be able to drive the change process. STEP 3: Developing a Change Vision

Clarify how the future will be different from the past

Thus, effective visions have six key characteristics, They are:

* Imaginable: They convey a clear picture of what the future will look like.
* Desirable: They appeal to the long-term interest of employees, customers, shareholders and others who have a stake in the enterprise.
* Feasible: They contain realistic and attainable goals.
* Focused: They are clear enough to provide guidance in decision making.
* Flexible: They allow individual initiative and alternative responses in light of changing conditions.
* Communicable: They are easy to communicate and can be explained quickly. STEP 4: Communicating the Vision for Buy-in

Ensuring that as many people as possible understand and accept the vision

In communicating the vision for the transformation, there are some things to keep in mind. The vision should be:

* Simple: No techno babble or jargon.
* Vivid: A verbal picture is worth a thousand words – use metaphor, analogy and example.
* Repeatable: Ideas should be able to spread by anyone to anyone.
* Invitational: Two-way communication is always more powerful than one-way communication. STEP 5: Empowering People and Removing Barriers

Remove as many barriers as possible and unleash people to do their best work.

Typically, empowering employees involves addressing four major obstacles: structures, skills, systems and supervisors STEP 6: Generating Short-term wins

Create some visible, unambiguous success as soon as possible.

The wins must also be clearly related to the change effort.
Such wins provide evidence that the sacrifices that people are making are paying off.

The wins also serve the practical purpose of helping to fine tune the vision and the strategies. The guiding coalition gets important information that allows them to course-correct. STEP 7: Don't Let Up!

Consolidating Gains and Producing More Change.

In a successful major change initiative, by stage 7 you will begin to see:

* More projects being added
* Additional people being brought in to help with the changes
* Senior leadership focused on giving clarity to an aligned vision and shared purpose
* Employees empowered at all levels to lead projects
* Reduced interdependencies between areas
* Constant effort to keep urgency high
* Consistent show of proof that the new way is working STEP 8: Make it Stick

Anchoring New Approaches in the Culture.

Some general rules about cultural change include:

* Cultural change comes last, not first
* You must be able to prove that the new way is superior to the old
* The success must be visible and well communicated
* You will lose some people in the process
* You must reinforce new norms and values with incentives and rewards – including promotions
* Reinforce the culture with every new employee Representing the challenge
in a workshop A simple dice exercise to get to how to overcome these pressures

The workshop leader states a vision. There are 6 die. The leader will take one and roll it. A member of the audience is invited up and their job is to turn all the other 5 die to match the first roll.
The leader rolls the dice and hides the results. After one second he states the challenge is over, did the person suceed?
As a group they should get to the fact that to do it all in the time required we need one person for each dice, and another person to check the first dice's result and communicate to the others, checking their progress.
The changing of the die represents the process improvements, matching the number represents meeting the customer needs. The time limit is shareholder pressure. From this we can perform some "What-if's" such as communicating the vision, and if the die represent our different teams, how can we handle improving sub-processes. The person shouting the number is the Guiding Team, everyone else needs to own the changes for their own process, if they try and change two die the time taken to get to the next die is representative of learning the process US Tools for improvement Why do we need
to improve? Changing
the culture
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