!! Change !!

Face It, Embrace It, & Thrive

With permission and full credit to Mike Rother for Toyota Kata subject matter.

September 9th, 2014 Belfast

Thinking win-Win-WIN

Building the Culture for Sustainable CI

Change

• The Need to Embrace It

• What it takes to Do It

• Kata as a Means to Build a Culture

of Continuous Improvement

2

Lisa’s Story

• Daughter Lisa

• Physical Therapist –

specialty in Pediatrics

• Very highly skilled, 13 years experience

• Constantly pursued by head hunters

• Grand Rapids, MI – Very strong healthcare environment

• In the last 2 years – 3 jobs…

• WHY?

3

Post-war Boom ( 1950’s – 1980’s )

• Isolated markets

• Limited critical inputs

• Workers with narrow skills – replaceable

• Centralized Organization – Silos

• Periodic improvement from Engineering Dept

Magnitude of Change

Time

• Command and Control management

Today

• Global markets

• Multiple critical inputs

• Multi-skilled, highly trained workers – difficult to replace

• Matrix Organizations

• Episodic improvement from CI Group

• Command and Control management !!??

Change, you say??

What Sony Showed At Its 2008 Annual Shareholder Meeting recently updated to include more current details.

Back to Lisa… the Rest of the Story

• 2 earlier employers: well-established, smaller companies

• Budgets tighten at state / federal levels = less funding

• Profit margins shrinking

• Increased documentation requirements

• More work load for therapists and PT techs

• Added “take-home” work – unpaid

• Reduced benefits

• Lay-offs (aka, terminations )

• Declining morale

• Larger, dominant provider

– Hires Lisa to lead PT pediatrics home care services

– Absorbs the market share

7

Global Pressures to Change

8

Increasing & Unavoidable

• Government Policy Change

• Resource Depletion

• Global Warming

• Financial Crises

• Currency Wars

• Rising Costs

• Political Instability

• Eurozone Troubles

• Exchange rate volatility

• Intensifying Global Competition

Belfast

Exercise – Part A

9

•

– Blank piece of paper

Write your FULL NAME 3 times

• Full name: first, middle, and last names

– When done please show to your neighbor.

– Ready??? BEGIN.

Please raise your hand when done…

What it takes to Change.

We develop a

Fixed Mindset

based on well worn

neural pathways.

Much of what happens in organizations in the result of habits people have learned through practice, whether deliberately or by default.

Familiar habits, routines:

Driving your car

Riding a bicycle

Your native language

Typing, e-mail

Cell phone

Your patterns at work

THE WAY YOU MANAGE!

Apparent Certainty

Uncertainty

Mystery

Green Zone: Comfort

Familiarity Predictability

Ease Confidence

13

Green Zone – things are good.

Today & in the Future

• We are faced with increasing

“Yellow Zone” Challenges

PROBLEM IS…

Yellow Zone – things are different.

Apparent Certainty

Uncertainty

Mystery

Green Zone: Comfort

Familiarity Predictability

Ease Confidence

15

Yellow Zone: Stress Effort

Difficulty Unpredictability

Novelty Mistakes Learning

Innovation

Green Zone – things are good.

Now, minor Change.

16

• Sign your name using

your non-dominant hand.

Please raise your hand when done…

• Round 3

– Blank piece of paper and a pen

FULL NAME 3 times - first, middle, and last names

– When done please show your neighbor.

– Ready??? BEGIN.

Exercise

How did you feel using your non-dominant hand?

• Awkward

• Strange

• Difficult

• Uncomfortable WHY???

17

• You were outside your

comfort zone.

• You have a well-worn neural

pathway for writing with

your dominant hand.

– It has become automatic,

comfortable, familiar.

– Little / no mental energy

– Automatic / unconscious

18

Our Dilemma

Today

• We are being increasingly confronted

with the need to adapt and change…

at a personal level… at ALL Levels.

• But our brains physiologically want to remain

in old behavior patterns of the past. 19

Senior Leaders & Managers

Exec.

Masses:

Execute directions from

above.

Set Vision

Produce the Answers

Direct the Masses

Command & Control – Mgmt By Results

The accelerating rate of change is overwhelming our traditional MBR style of managing. 20

Time to update our Management System

Exec.

Senior Leaders & Managers

Provide Coaching

Set Vision

Masses:

Everyone provides

CREATIVE INPUT aligned with the

Vision.

21

Senior Leaders & Managers

Exec.

Masses:

Execute directions from

above.

Set Vision

Produce the Answers

Direct the Masses

22

Improvement Kata

is an ideal

methodology to

support a culture

of full engagement

& Continuous

Improvement

23 © Mike Rother

Core of Kata = Routines

• Compact

• Simple

• To Learn

• To Teach

• Consistent

• Easy

• To Understand

• To Practice

• Time Efficient

24

© Mike Rother

The Pattern of the Improvement Kata

25 © Mike Rother

Distant 1-3 years 1 week – 3 months

Often Vague “Principles” Concrete

Hard Metrics Successive T/Cs to achieve the

Challenge © Mike Rother

A Task for LEADERS: Establish the

organization’s long term strategy and direction

A Task for MANAGERS: Day-to-day coaching of the Improvement Kata in their

area of responsibility

The Pattern of the Improvement Kata

CHALLENGE

How is Improvement Kata Different?

28

1. Target Conditions

2. Daily PDCA cycles

3. Structured Dialog

4. Coach-Learner Relationship

5. Simple, powerful tools

Provides a simple, effective model for Full Engagement

& Cont Improvement

1. Target Condition

29

Current Condition

Problem Solving

Problem

Striving

Target Condition

Toward a new higher level of performance

Return to our Current Condition

© Mike Rother

4 Categories of Information

31 © Mike Rother

Often, these are decided from the

“Bottom Up”

Often, these are decided from the

“Bottom Up” First

Next

Next

Next

32 © Mike Rother

Apparent Certainty

Uncertainty

Mystery

33

Green Zone: Comfortable

Familiar Predictable

Easy Confidence

Next Target Condition

Learning Zone: Uncertainty Trial & Error

Discovery Learning

Innovation

Threshold of Knowledge

2. Rapid PDCA Cycles ( Plan – Do – Check – Act )

34

Rapid PDCA toward T/C

Current Condition

Target Condition

Small, rapid experiments advance our knowledge quickly

The path will be unclear.

Obstacles

Unclear territory

?

? ?

? ?

?

?

?

?

? ?

? ?

? ?

?

?

?

?

?

?

What it Actually Looks Like! Common Idea of PDCA

© Mike Rother

3. Structured Dialog

36

Focused on Facts & Data

© Mike Rother

Reflect on the Last Step Taken

1) What was your Last Step?

2) What did you Expect?

3) What Actually Happened?

4) What did you Learn?

Return --------->

Because you don’t actually know what the result of a step will be!

4. Coach-Learner Relationship

Manager Supervisor

Supervisor Owns the Target Condition.

Manager Advises and Supports

39 © Mike Rother

40 © Mike Rother

41 © Mike Rother

• To Happen • To Learn A B

C

Each Row = One Experiment = One / Day

42

ASK THE 5 CK QUESTIONS AT EACH STEP

© Mike Rother

5. Simple, Powerful Tools

Learner 2nd Coach (not always

present)

Coach

Storyboard is communication hub

44

5Q Coaching Dialog

Learner

2nd Coach

Coach

45

2nd Coach Feedback

Learner 2nd Coach (not always

present)

Coach

Illustration of 5Q Coaching Dialog

46

3 Coaching Cycles – 15 minutes

1 Coaching Cycle – 5 minutes

Kata promotes a Culture of Full Engagement toward CI

47

• Structured Routines

• Compact

• Simple to Learn

• Simple to Teach

• Time Efficient

• Applicable everywhere:

• Operations

• Service & Support

• Administrative

• Aligned to the Vision

• Becomes part of line mgmt. daily work

• Everyone can practice

Our Great Untapped Resources

48

• Greatest population

• Working directly on the

value-adding processes

• Practical Subject Matter Experts

Masses:

Everyone provides

CREATIVE INPUT aligned with the

Vision.

Exec.

Senior Leaders & Managers

Provide Coaching

Set Vision

Masses:

Everyone provides

CREATIVE INPUT aligned with the

Vision.

Q & A More Info…

For more information…

2 minutes 4 minutes

IK / VK Overview Merck – Benefits of Kata

• Beth Coaching IK: https://www.w3groupllc.com/presentations/improvement-kata/

• Kata at Merck Elkton: https://www.w3groupllc.com/presentations/merck-elkton/

For more information…

5 minutes

Jeff Liker – Kata Deployment

• Liker video; https://www.youtube.com/watch?v=6nG0emZY468

https://www.w3groupllc.com/wp-content/uploads/2014/08/3-Day-promo-piece-.pdf