Company Culture - PaperCut

I have posted many individual posts talking about culture, leadership and office politics.  Since I have been looking for the perfect role for me over the last three months, I came across an ad by PaperCut today.  Although I had encountered their software before, I had never actually investigated the company.  I urge you to have a good look around their web site.  Here's a link to their blogs...  www.papercut.com/blog/2013/05/

I love the way they run their office, a flat management structure, and anyone that knows me, the coffee part of course.  It shows that even in our sometimes "stuck up" world, you don't have to be dressed in $2,000.00 suits to achieve results, it's all about aligning goals and having a great team culture, where individuals are empowered to achieve, because that's why they were hired in the first place.

Now, I hope Chris and Matt don't read this post before meeting with me, as they may see it as brown-nosing, but then again, they may not.  In any case, I know if I do get  chance to meet them, I won't be wearing a suit.  I should probably ride my bike there and walk in with bike shorts (no, don't worry - I'll spare you that vision).

As I said, please have a look at their site, and as always, don't be scared to send me comments at roland@matador.net.au or through LinkedIn.

Their site:  www.papercut.com

The Most Successful Leaders Do 15 Things Automatically, Every Day

The following article from Forbes highlights many areas  I have previously discussed.  But does it really only relate to leaders?  At the end of the day we are all leaders in one way or another.  Every person can adopt these in their every day routine to make them a more efficient and better employee or even person.  Sometimes you cannot communicate expectations to others, but you should be clear in your mind what your goals are, and what you want to achieve.  

You don't have to challenge other people to think, but challenge yourself.  Look around you and learn from others.  See what works and what doesn't.  We don't always succeed, but was makes us stronger is when we fail.  We can see why and how, and work even harder to ensure success in the future.  Stay positive!  By doing so you will unlock infinite possibilities for yourself and put people around you at ease, to either help you, do business with you, or even admire you.

Try it, and let me know your thoughts.  The best way to contact me is through LinkedIn (link to your right).

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By Glenn Llopis | Forbes – Sun, Apr 14, 2013 4:52 PM EDT

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  The Most Successful Leaders Do 15 Things Automatically, Every Day

Leadership is learned behavior that becomes unconscious and automatic over time.  For example, leaders can make several important decisions about an issue in the time it takes others to understand the question.   Many people wonder how leaders know how to make the best decisions, often under immense pressure.  The process of making these decisions comes from an accumulation of experiences and encounters with a multitude of difference circumstances, personality types and unforeseen failures.   More so, the decision making process is an acute understanding of being familiar with the cause and effect of behavioral and circumstantial patterns;  knowing the intelligence and interconnection points of the variables involved in these patterns allows a leader to confidently make decisions and project the probability of their desired outcomes.   The most successful leaders are instinctual decision makers.  Having done it so many times throughout their careers, they become immune to the pressure associated with decision making and extremely intuitive about the process of making the most strategic and best decisions. This is why most senior executives will tell you they depend strongly upon their “gut-feel” when making difficult decisions at a moment’s notice.

Beyond decision making, successful leadership across all areas becomes learned and instinctual over a period of time. Successful leaders have learned the mastery of anticipating business patterns, finding opportunities in pressure situations, serving the people they lead and overcoming hardships.   No wonder the best CEOs are paid so much money.   In 2011, salaries for the 200 top-paid CEOs rose 5 percent to a median $14.5 million per year, according to a study by compensation-data company Equilar for The New York Times.

If you are looking to advance your career into a leadership capacity and / or already assume leadership responsibilities – here are 15 things you must do automatically, every day, to be a successful leader in the workplace:

1.  Make Others Feel Safe to Speak-Up

Many times leaders intimidate their colleagues with their title and power when they walk into a room.   Successful leaders deflect attention away from themselves and encourage others to voice their opinions.  They are experts at making others feel safe to speak-up and confidently share their perspectives and points of view.   They use their executive presence to create an approachable environment.

2.  Make Decisions

Successful leaders are expert decision makers.    They either facilitate the dialogue to empower their colleagues to reach a strategic conclusion or they do it themselves.  They focus on “making things happen” at all times – decision making activities that sustain progress.   Successful leaders have mastered the art of politicking and thus don’t waste their time on issues that disrupt momentum.  They know how to make 30 decisions in 30 minutes.

3.  Communicate Expectations

Successful leaders are great communicators, and this is especially true when it comes to “performance expectations.”   In doing so, they remind their colleagues of the organization’s core values and mission statement – ensuring that their vision is properly translated and actionable objectives are properly executed.

I had a boss that managed the team by reminding us of the expectations that she had of the group.   She made it easy for the team to stay focused and on track.  The protocol she implemented – by clearly communicating expectations – increased performance and helped to identify those on the team that could not keep up with the standards she expected from us.

4.  Challenge People to Think

The most successful leaders understand their colleagues’ mindsets, capabilities and areas for improvement.  They use this knowledge/insight to challenge their teams to think and stretch them to reach for more.   These types of leaders excel in keeping their people on their toes, never allowing them to get comfortable and enabling them with the tools to grow.

If you are not thinking, you’re not learning new things.  If you’re not learning, you’re not growing – and over time becoming irrelevant in your work.

5.  Be Accountable to Others

Successful leaders allow their colleagues to manage them.  This doesn’t mean they are allowing others to control them – but rather becoming accountable to assure they are being proactive to their colleagues needs.

Beyond just mentoring and sponsoring selected employees, being accountable to others is a sign that your leader is focused more on your success than just their own.

6.  Lead by Example

Leading by example sounds easy, but few leaders are consistent with this one.   Successful leaders practice what they preach and are mindful of their actions. They know everyone is watching them and therefore are incredibly intuitive about detecting those who are observing their every move, waiting to detect a performance shortfall.

7.  Measure & Reward Performance

Great leaders always have a strong “pulse” on business performance and those people who are the performance champions. Not only do they review the numbers and measure performance ROI, they are active in acknowledging hard work and efforts (no matter the result).    Successful leaders never take consistent performers for granted and are mindful of rewarding them.  

8.  Provide Continuous Feedback

Employees want their leaders to know that they are paying attention to them and they appreciate any insights along the way.  Successful leaders always provide feedback and they welcome reciprocal feedback by creating trustworthy relationships with their colleagues..   They understand the power of perspective and have learned the importance of feedback early on in their career as it has served them to enable workplace advancement.

9.  Properly Allocate and Deploy Talent

Successful leaders know their talent pool and how to use it.  They are experts at activating the capabilities of their colleagues and knowing when to deploy their unique skill sets given the circumstances at hand. 

10.  Ask Questions, Seek Counsel

Successful leaders ask questions and seek counsel all the time.  From the outside, they appear to know-it-all – yet on the inside, they have a deep thirst for knowledge and constantly are on the look-out to learn new things because of their commitment to making themselves better through the wisdom of others.

11.  Problem Solve; Avoid Procrastination

Successful leaders tackle issues head-on and know how to discover the heart of the matter at hand.    They don’t procrastinate and thus become incredibly proficient at problem solving; they learn from and don’t avoid uncomfortable circumstances (they welcome them).

Getting ahead in life is about doing the things that most people don’t like doing.

12.  Positive Energy & Attitude

Successful leaders create a positive and inspiring workplace culture.  They know how to set the tone and bring an attitude that motivates their colleagues to take action.   As such, they are likeable, respected and strong willed.  They don’t allow failures to disrupt momentum.

13.  Be a Great Teacher

Many employees in the workplace will tell you that their leaders have stopped being teachers.   Successful leaders never stop teaching because they are so self-motivated to learn themselves.  They use teaching to keep their colleagues well-informed and knowledgeable through statistics, trends, and other newsworthy items.

Successful leaders take the time to mentor their colleagues and make the investment to sponsor those who have proven they are able and eager to advance.

14.  Invest in Relationships

Successful leaders don’t focus on protecting their domain – instead they expand it by investing in mutually beneficial relationships. Successful leaders associate themselves with “lifters and other leaders” – the types of people that can broaden their sphere of influence.  Not only for their own advancement, but that of others.

Leaders share the harvest of their success to help build momentum for those around them.

15.  Genuinely Enjoy Responsibilities

Successful leaders love being leaders – not for the sake of power but for the meaningful and purposeful impact they can create.   When you have reached a senior level of leadership – it’s about your ability to serve others and this can’t be accomplished unless you genuinely enjoy what you do.

In the end, successful leaders are able to sustain their success because these 15 things ultimately allow them to increase the value of their organization’s brand – while at the same time minimize the operating risk profile.   They serve as the enablers of talent, culture and results.

Lean in Education

To kick off 2013 I'd like to present some information I compiled last year in regards to lean in education.  People who know me understand that education and leadership are two key interest areas for me.  I hope you enjoy the information below, and as always I'm happy to discuss any of the items listed in more detail with you over a coffee.

Doing More with Less – Going Lean in Education



LEAN PROCESS IMPROVEMENT IS APPLICABLE TO EDUCATION

“Education” is the term used to collectively describe the SYSTEM OF PROCESSES involved in providing and supporting the development of knowledge, skill, and reasoning in a student or student community. In fact, every job in education from student through superintendent is defined by the processes of that individual’s responsibilities. Processes make up the education service.


EXAMPLES OF REPRESENTATIVE SCHOOL PROCESSES

Accounting/Business Management/Payroll
Budgeting
Certification
Communications
Community Education
Conferences
Custodial/Maintenance
Due Process
Emergency Procedures
Field Trips/Activities/Camps
Food Service
Fundraisers
Grade Level/Team/Classroom
Learning
Mentor
Negotiations
Office
Parent/Community Involvement
Personnel/Human Resources
Referrals/Child Study
Report Cards/Student Data Management
Reporting
Special Education
Student Registration
Teaching and Instruction
Technology
Testing
Transportation

Education is a system full of processes. That means that every school and school district abounds
with process improvement opportunities, opportunities not only to improve service and performance,
but to reduce the associated costs of waste. And, yes, waste is incredibly costly.

Process waste directly causes:

Inefficiency in education spending , diminished performance, process delays, number of meetings,
re-scheduled meetings , variation in the quality of the process outcome, increased costs, greater %
of budget needed just to maintain status quo, unnecessary consumption of resources,  communication
redundancies and inefficiencies

Process Improvement offers schools the opportunity to realise their full potential, to maximise
Education, service delivery and support.


Improve student achievement and without spending more money.  Successful educators in today’s world are those who meet its challenge.

Lean will teach kids self-discipline (5S), problem-solving, waste reduction and rules of leadership

A LEAN SCHOOL


Any system based on Lean is ultimately a creative operation. It is a system that creates value for
its customers, both internal and external, and for society as a whole.


A Lean school system respects, involves, and serves all of its people, its community, and the environment. A CORE TENET OF LEAN IS IMPROVING PEOPLE FIRST – it values growth and satisfaction.

Every person – not just students - learns and improves every day in an environment of trust and
stability, thus promoting high performance. A Lean School is a place that everyone wants to be
part of and support – students, staff, parents, and community members alike.

A Lean School System pursues a common vision and clear goals that everyone both owns and
understands. It anticipates, identifies and solves problems throughout the workplace. It
effectively and efficiently produces and delivers quality education goods and services to meet
customer demand.

 A Lean school system is stable yet flexible. It is responsive. If facilitates open and multidirectional communication. It engenders positive image, cooperation, teamwork, and success. A
Lean school demonstrates a CAN-DO attitude and a track record of improvement. It promotes
not only the use of best practices, but their discovery and development

Challenges:

Expand Services

Improve Student Performance

Meet Workplace Requirements

Streamline Processes

LEAN MANAGEMENT IN SCHOOLS

Lean Management is not a new concept, but it is new for the education industry. There is no question that differences exist between the products of a manufacturing assembly line and those of an education service. But a huge similarity exists in the delivery systems of these organisations, delivery systems made up of thousands of complex processes. As such, many 

aspects of Toyota’s process improvement methodologies and other Lean tools can and do apply to improving the processes of delivering education.

Forward thinking educators recognise both the application and the implications Lean has for improving their school operations and program outcomes. The consistency with which Lean has delivered such improvements in every industry that has applied them demonstrates the universality of its principles. Lean Process Improvement, even in its limited introduction within 

Education, has resulted in increased performance with cost savings. 

Lean school cultures promote a positive CAN-DO attitude, greater involvement and vested ownership in improving processes that support student learning. 

School leaders determined to meet today’s challenge of doing more with less should give Lean Process Improvement close consideration. It is an effective way for schools to develop and deliver world-class education 

with currently available funding.  

Lean experts can be found with impressive credentials and years of experience guiding process improvement efforts in manufacturing and service businesses. However, unlike products or services that are produced or delivered in assembly line fashion, students are not designed to be replicas of each other. Nor do they flow through a production or service line one at a time.  

Only experienced educators can fully comprehend the numerous variables that affect an individual student’s learning and how those variables affect the end product – an educated human being ready for work, higher education, and competition in a global economy.  

CASE STUDY 1

Facility: Small private school 

Project: Instructional time loss analysis and recovery plan development 

Project Summary:

This was a nine-month time-management improvement project to determine the current state and causes of instructional time invasion based on staff observations of annually diminishing ability to meet curriculum goals. The project included staff interviews and data collection to gather the required information, categorisation and prioritisation of the sources of interruption, and development of both a strategic plan and a tactical plan for managing future invasions of instructional time. 

Results: 

The project resulted in the recovery of an average of 120 hours of instructional time per teacher, higher levels of staff cooperation in planning and scheduling at both the team and school level, 

and more comprehensive exposure and learning at the student level.

CASE STUDY 2

Facility: Large inner city public school 

Project:

Determination of how to improve student academic achievement, specifically test scores on short-cycle diagnostic tests that enable staff to revise and improve teaching methods and better prepare students for state achievement tests 

Project Summary:

The project included the definition of the entire assessment process, cross functional focus team discussions and collaboration to understand and streamline the entire process, and empirical measurements of the student performance outcomes. 

Results: 

The project resulted in a common understanding of the limits of the re-mediation window, a reduction in the results turn-around time, and enabling of teachers to re-teach identified student 

areas of weakness. This culminated in the improvement of student performance on achievement tests.

Sources from which the above information was compiled:

http://www.leaneducation.com/

http://www.leaneducation.com/whitepaper-DoingMoreWithLess.pdf

http://www.sciencedaily.com/releases/2009/09/090928095337.htm

http://leanineducation.com/getting_here.asp

http://www.lean.org/fusetalk/forum/categories.cfm?catid=72

Culture, Productivity, Kaizen, Lean, Business Improvement

All the above are current buzz words, especially productivity.  No matter which of these areas we focus on, I think we would agree that leadership is of utmost importance.

When talking about the above we mention empowering individuals, and allowing for innovation from within.  But how can we achieve this without effective leadership, and a culture that thrives on the excitement of being involved in creating a better department, company or economy.

The Australian prime minister’s task force came up with a report on manufacturing entitled “Smarter Manufacturing for a Smarter Australia”. (http://www.innovation.gov.au/Industry/Manufacturing/Taskforce/Documents/SmarterManufacturing.pdf)

While looking at the challenges that face the manufacturing sector, the report also focuses on the opportunities that this creates.  It discusses the importance of manufacturing to Australia, the economy and most importantly our people, you, me and our children.

One comment in the report, also made directly to the Prime Minister, Ministers Combet and Shorten was: “We are particularly concerned that leadership and judgement is brought to bear on the ‘perceptions issue’ about Australian manufacturing.”

Again we are talking about leadership and judgement, but the report further outlines the importance of broad-based Australian economy, built on competitiveness, productivity and innovation.

Figure 1.1 below highlights the importance of policy in achieving the above objective through a strong direction created by a solid strategy.  The total report spans over 117 pages and contains detailed data on the manufacturing industry.  I would recommend that you have a good read of it, if you are interested in the future of our country.

Figure 1.1 SMARTER MANUFACTURING FOR A SMARTER AUSTRALIA – POLICY FRAMEWORK

The bottom line however is that while policies can be set, strategies discussed, and recommendations presented, it is up to the individual’s leading the businesses within the sector, as well as the ones supplying the sector, and finally the consumers to ensure the path is sustainable.  Associations and industry councils, advisory boards, the education sector and we as individuals also play an important part.  We all have a hand in shaping the future of this country, as insignificant as it may seem.

At the end of the day, it will be the voice of many that will create a better future.  I think none of us can be under the illusion that it will be easy.  We must accept that severe changes will be required about how and where we do business.  And the “pessimists” must stop the negativity and winching, and should focus on the opportunities that are presented to us.  The faster this happens, the sooner we will move on.

Change can be exciting, although scary at times, and it will mean entering a zone that we are not comfortable with.  But if we are big enough to accept that there are other options, and that we need to open our eyes, we will be able to see the light at the end of the tunnel.

There are many tools that will help us achieve better productivity, leaders, culture and so on.  Not all will work for everyone, but they will allow individuals at the front line to help pave our way to the future.  Together with the right leaders these individuals will create companies that are efficient and sustainable.  There are already many programs available to businesses that will support change financially.  These could be initiatives to support sustainable practices, reduce environmental impacts, or purely arm individuals with the skills required to affect the necessary changes within industry.

For more information on initiatives, leadership, or any other comments, please contact me at Chase Performance on 1300 880 338.  I am located in Melbourne, but regularly visit our offices in Adelaide, Perth, Brisbane and Sydney, and am always happy to have a chat and discuss any of the items above in person over an Espresso.

Best regards

Roland Weber

Lean Leadership

The following information is from a presentation out of the lean leadership series by Factory Strategies Group LLC. (2009).  I have previously discussed the differences between management and leadership, as well as traditional and modern variations.  The following further highlights the importance of leadership, and the direct distinction from management.  Changing from wearing one hat to the other, and combing both takes practice, but will allow for a better organisational culture and increased efficiencies.  Although the following doesn't discuss energising and motivating employees, it is an area that will stem from good leadership.

Leadership Influences Change

ENGAGEMENT

“People don’t resist change.  They resist being changed.” - Peter Senge

REALISM

“Culture does not change because we desire to change it.  Culture changes when the organisation is transformed; the culture reflects the realities of people working together every day.” - Frances Hesselbein

DETERMINATION

“Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everyone getsbusy on the proof.” - John Kenneth Galbraith

Leadership versus Management

Leadership is not management

3 Tenets of management

Planning and budgeting
Involves creating timetables to meet commitments and developing specific action steps.

Organising and staffing
Requires that managers put some structure to the plan which includes staffing requirements, communications and delegation of responsibility.

Controlling and problem-solving
Entails the monitoring of activities, spotting deviations from the plan and organising solutions.

These management processes create and maintain order and predictability within the organisation. - John P. Kotter

Lean Leadership Characteristics

A leader needs to be visible as a role model in order to demonstrate his/her breadth of knowledge and understanding of the business environment and the organisational challenges.

A leader should display an aptitude for logic and a desire to challenge the status quo or “alleged wisdom” in order to facilitate free flowing decision making.

A leader must posses the ability to be a linking agent (facilitator) with a wide array of knowledge and information coupled with an unquestionable trust, professionalism and an open invitation for dissent.

Traditional versus Lean



Lean Leadership:

Good leaders motivate people in a variety of ways, three of which are the basis to the “lean” approach.


1.  Leaders must define the organisation’s vision in a way
     that highlights the values of their group
2.  Leaders must support people’s efforts to achieve the
     shared vision through coaching, feedback, and role modelling
3.  A leader should recognise and reward success


There are five leadership moves, or actions, a leader can perform to provide leadership on the Lean journey.


1.  Leaders Must Be Teachers
2.  Build Tension, Not Stress
3.  Eliminate Fear and Comfort
4.  Lead Through Visible Participation, Not Proclamation
5.  Build Lean Into Personal Practice

Lean Thinking - City Of Melbourne

I came across this page from Melbourne's government web site:

http://www.melbourne.vic.gov.au/ABOUTCOUNCIL/PLANSANDPUBLICATIONS/ANNUALREPORT/2010/ABOUT/COMMLEAN/Pages/LeanThinking.aspx

While I believe it is good that the city has focused some efforts on lean thinking, government traditionally do not spent much time following through.  Even here you can see that the last post goes back two years.  Lean is a continuous improvement path and journey that will never end.

The other issue I see is that they very much focused on the Senior leadership and management, but without including everyone in the business and creating a Lean Culture, the project is doomed to fail.  Both Labour and Liberal governments, both local and federal, their leaders Tony Abbott and Julia Gillard should take some time to take a closer look at how lean can help the government, opposition and most of all Australia as a whole.

I would welcome the opportunity to spend some time with our political leaders to highlight how Lean has helped thousands of businesses in Australia.  Many of our clients in the manufacturing industry are successful and continue to grow throughout these tough times.  Lean principles apply to all industries, but we must create a lean culture where the applications can blossom.  If you would like to challenge these thoughts, please drop me a line at roland.weber@chaseperformance.com or call me on 1300 880 338.  I am always happy to consider other views as part of our continuous Lean and Learning/Improvement journey.

Lean Thinking

Lean Thinking is an improvement system which focuses on improving the quality, timeliness and cost of services we deliver from the perspective of the customer. The system provides a structure, techniques and tools for carrying out improvements. Its ultimate goal is to deliver increased satisfaction for our customers and staff.  The City of Melbourne has been a pioneer in local government in Australia, fully embracing Lean Thinking as the continuous improvement model.

Lean Thinking within the City of Melbourne began in 2009, focussing on 10 organisational processes, incorporating many areas of the business including parking meters, child care, council reports and the recruitment process. One example of these improvements was the processing of construction zone permit applications. Prior to the application of Lean Thinking principles, the City of Melbourne took months to go through all the processes necessary to issue these permits. After applying Lean Thinking, the time has been reduced to around a fortnight. This is not only a major improvement for customers applying for permits, but also for drivers needing parking spaces, as the spaces are reinstated much earlier.  In our childcare centres, the Lean Thinking project identified 60 per cent of payments were overdue at any one time.  A more customer friendly online process has increased timely payments and freed staff from administration work to focus on more time on the children.

In 2009–10, the City of Melbourne Lean Thinking program has been coordinated by a dedicated team who provide guidance and support to managers. Our aim is to increase customer and staff satisfaction with improved services and processes, increase first time quality and timeliness, reduce costs and reduce the environmental impact. All process improvements must be measured against these outcomes.

In 2010–11, the City of Melbourne will continue to apply Lean Thinking across the organisation.  Our aim is to transform our organisational culture such that Lean Thinking is the way things are done every day.  Lean Thinking will be prevalent across the organisation, evidenced by supportive leaders who work with their teams to solve problems through the application of lean techniques. Because Lean Thinking focuses on processes from beginning to end we are also working with our external partners to ensure seamless service delivery for the benefit of our customers.

Chase Performance - Lean Six Sigma - New Web Site

Chase Performance is pleased to announce it's new web site with many lean six sigma case studies and more...  http://www.chaseperformance.com

7 ways lean healthcare management reduces cost

July 24, 2012 | Steff Deschenes, New Media Producer

Article by: Steff Deschenes

New Media Producer for Healthcare Finance News

Follow Steff on Twitter@Steff_HFN

With the financial pressures that healthcare organizations are facing, many hospitals are using traditional cost cutting methods to save money by looking at layoffs and staff reductions. Many more hospitals, however, are finding ways to reduce costs through lean management methods that don't require layoffs and can improve quality for patients.

"Lean is actually the best alternative to layoffs. It's all about encouraging everyone to participate in process improvement, as well as finding creative and interesting ways to save money for a healthcare organization to avoid those unwanted traditional cost slashing endeavors like layoffs," explains Mark Graban, a lean expert and author of the book Hospital Kaizen. "Layoffs don't lead to long-term cost reduction. And if you lay off people and don't fix any processes, you're risking patient safety and quality. As a result, more and more healthcare providers are looking at lean to break that cycle."

[See also: Reducing cost through clinical redesign]

Graban has outlined seven different ways that lean management can help reduce system cost.

1. Reduce "never events." A "never event" includes falls, infections, erroneous amputations and other small-to-large-scale disasters. Reducing these events is, of course, best for patients, but there's also financial pressure to reduce never events. In 2009, Medicare stopped paying for care from events they consider preventable, and now private insurers are following suit. Pressure ulcers and bedsores, for example, are viewed as preventable. They shouldn't happen if a good process is followed – like patients being repositioned. Improving quality in general saves hospitals more than layoffs since "never events" occur when an understaffed hospital can't be attentive enough to a patient needs.

2. Supply chain improvements. It's important to consider looking at a more effective material restocking process. For example, more frequent smaller batch deliveries or rotating supplies more quickly reduces  both the amount of space used in internal warehouse and cash tied-up in inventory.

[See also: Cost structure for hospital tracking systems must be 'no-brainer']

3. Delay or cancel construction and expansion. A trend in the last few years has shown that hospitals use lean to increase capacity by using current equipment and available space. Lean makes better use of existing resources as an alternative to increasing capital spending. "I worked with one hospital that through process improvement to patient flow – preventing delays from registration through to discharge – they increased the utilization rates of their MRI machines from 40 percent to 60 percent. And they didn't need buy more equipment," said Graban.

4.  Reduce overtime. Reducing overtime is a great opportunity to help make improvements with lean that doesn't alienate people the way layoffs do. Essentially, people want to get home to have dinner with their families in a predictable/consistent way. If you can improve charting during the process, for example, instead of having nurses do it after, you can improve staff satisfaction while trimming down overtime, which results in both morale and cost savings. It's a win-win opportunity.

5. Reduce length of stay. This certainly isn't about pushing patients home before they're ready, Graban notes. Reducing length of stay is done through preventing errors that would extend a stay or delay a discharge when patients are medically ready to go home. Because of miscommunication, poor planning, or when families or nursing homes aren't yet ready to take on the person being discharged, a four-day stay can suddenly turn into a five- or six-day stay. These process related things aren't medical issues, but they often extend length of stay which can cost millions.

6. Reduce unnecessary testing and diagnostics. A number of hospitals are trying to be responsible stewards of healthcare dollars by reducing inappropriate usage of lab testing and diagnostic imaging. For example, through medical evidence it's been shown that when a patient comes in with back pain more often than not what they need is physical therapy – not a fast pass to a CT scan, says Graban. ACOs help organizations benefit from their own cost reduction efforts and will do so in a way that doesn't shortchange what the patient needs.

7. Reduce delays and errors in billing. There are a tremendous amount of delays in billing, including too many people involved during different parts of the process. If there's a better flow, if people are handing off the work to the next person in the chain immediately, bills go out in a couple of days instead of a couple weeks. It's also incredibly important to make sure billing is being done properly. If mistakes are made and proper preauthorizations aren't followed, but procedures are done anyway, hospitals might be voluntarily giving away revenue.

This article was originally published on: http://www.isixsigma.com/share.php?site=http%3A%2F%2Fwww.healthcarefinancenews.com%2Fnews%2F7-ways-lean-healthcare-management-reduces-cost

To discuss how we can assist you with lean and six sigma in Australia, please contact Chase Performance on 1300 880 338 or visit our web site: www.chaseperformance.com

Losing our Marbles

This is the introduction to a book which a colleague of mine bought last week, going into detail on the often misunderstood, misinterpreted and/or misapplied field of lean six sigma.  I'm sure many of you can relate to this...

In the beginning there was the plan
And then came the assumptions
And the assumptions were without form
And the plan was completely without substance
And darkness was upon the faces of the workers
And they spake unto their marketing managers, saying "it is a pot of manure, and it stinketh"
And the marketing managers went unto the strategists and saith,
"It is a pile of dung, and none may abide the odor thereof"
And the strategists went unto the business managers and saith,
"It is a container of excrement, and it is very strong and such that none may abide by it"
And the business managers went unto the director and saith,
"It is a vessel of fertilizer, and none may abide by its strength"
And the director went unto the vice president and saith,
"It contains that which aids plant growth and it is very strong"
And the vice president went unto the senior vice president and saith,
"It promoteth growth, and it is powerful"
And the senior vice president went unto the president and saith,
"This powerful new plan will actively promote growth and efficiency of the company and the business in general"
And the president looked upon the plan and saw that it was good
And the plan became policy.

"The plan" - (David H. H. Diamond)
from the book "The Heretic's Guide To Best Practice" - The Reality Of Managing Complex Problems In Organisations

by Paul Culmsee & Kailash Awati

Although I haven't read the book yet myself, I will endeavour to do so soon.  It is meant to be some light reading with a good sense of humour as I understand.  Chase Performance understand the difference between words and action, and the results and outcomes from our programs with our clients speak for themselves.  For more information on lean six sigma programs for your whole organisation please visit our web site: www.chaseperformance.com or contact us on 1300 880 338.  With locations in Melbourne, Adelaide, Perth, Brisbane & Sydney, we are a truly national provider that can support your business and help you implement systems and processes by giving you access to our specialists and resources.

5 Ways Process Is Killing Your Productivity

Yes, Process Improvement is what we promote, but within reason and the guidelines of a lean business.  Below is an article that shows how taking things out of context or trying to put your own spin on it, can actually be detrimental to a business.  We specialise in lean six sigma, and compare your business to world's best practice.  Based on the audit results, we tailor our programs to best suit your business, as there is no one glove fits all solution.  Take the first step to improving your business, it doesn't cost you anything, but the outcomes will be substantial in process improvement, culture, staff retention and your bottom line! Visit us at www.chaseperformance.com or call us on 1300 880 338.  You can email me direct at roland.weber@chaseperformance.com for more information.

Best regards and enjoy the re-produced article below

Roland Weber

Expert Perspective

5 Ways Process Is Killing Your Productivity

BY LISA BODELL | 05-15-2012 | 10:40 AM

This article is written by a member of our expert contributor community.

If your team spends its days asking for permission before executing, taking an hour to complete expense reports or time sheets, attending redundant meetings, or answering irrelevant emails, you’ve got a problem.

Processes are supposed to help organizations scale up, improve efficiency for new hires and existing employees, and so on--but they can quickly get out of control.

In a study of U.S. and European companies, The Boston Consulting Group found that “over the past fifteen years, the amount of procedures, vertical layers, interface structures, coordination bodies, and decision approvals needed...has increased by anywhere from 50 percent to 350 percent.” What’s more, in the most complicated organizations, “managers spend 40 percent of their time writing reports and 30 percent to 60 percent of it in coordination meetings.” No wonder people feel like they can never get any real work done.

Why do we love process so much? It offers a way to measure progress and productivity, which makes people feel more efficient and accountable. When used correctly, processes should standardize and simplify the necessary tasks that keep business running smoothly. They should enable organizations to undertake complex work, particularly as an organization grows. Expense reporting, for example, should have a process that every single employee follows every single time--that’s just common sense. Smart processes encapsulate bundles of organizational knowledge. And that’s a good thing.

But it’s not a good thing when there are so many processes in place that they restrain the people they’re supposed to help. If your team spends its days asking for permission before executing, taking an hour to complete expense reports or time sheets, attending redundant meetings, or answering irrelevant emails, you’ve got a problem. Exactly when are employees supposed to find the time to innovate when every task or topic is labeled “urgent” and every deadline is ASAP? Something will eventually give, and that something is going to be the part of the job they can keep pushing off until later.

Here are five ways process can kill production: 

1. Empowering with permission--but without action:It’s not empowering when people are given more responsibility, yet must still obtain an unreasonable number of approvals and sign-offs to get anything done. This signals a lack of trust.
2. Leaders focused on process instead of people: In an effort to standardize and sanitize everything we do, nothing at work is personal anymore. Leaders look to processes, not people, to solve problems--and it doesn’t work. Where’s the inspiration, the vision? This signals a lack of humanity.
3. Overdependence on meetings: “Collaborative” and “inclusive” are corporate buzzwords, but productive teamwork does not require meetings for every single action or decision. People become overwhelmed and ineffective when they are always stuck in meetings. This signals that politics have taken precedence over productivity.
4. Lack of (clear) vision: Great companies need a grand vision and important goals. Too often, companies have vision or mission statements laden with jargon but devoid of meaning. This signals a lack of purpose.
5. Management acts as judge, not jury: If the purpose of a meeting is to think, create, or build, management has to stop tearing people down when they propose new ideas or question the status quo. This signals a lack of perspective and openness.

Again, it comes down to priority. When we shift such a huge amount of an organization’s focus onto standardizing everything, other areas inevitably suffer. According to aBusinessWeek article called “Six Sigma: So Yesterday?,” the program ultimately did more harm than good when it was implemented at Home Depot: “Profitability soared, but worker morale dropped, and so did consumer sentiment. Home Depot fell from first to last among major retailers on the American Customer Satisfaction Index in 2005.”Over the years I’ve encountered organizations, large and small, that have essentially allowed process to becometheir culture. I’ve also seen businesses suffer when they assumed that if a process worked well for one division, it would work well for the company overall. Good processes can turn especially dangerous when they creep from manufacturing lines and finance departments into brainstorms and research labs. Some of the worst offenders have been companies that implemented overarching processes like Six Sigma, a rigidly data-driven quality-management program originally designed to tackle manufacturing problems. Fifty-three percent of the Fortune 500 have deployed it and of the Fortune 100, 82 percent have used it. Despite its manufacturing origins, Six Sigma has been used across many industries and sectors, and proponents claim it saved Fortune 500 corporations nearly a half-trillion dollars since its inception. If so many successful organizations are using it and saving money, what’s the problem, right?

Another oft-cited example of Six Sigma’s negative effects occurred at 3M. When former GE executive James McNerney took the helm in 2001, he instituted a rigorous Six Sigma program, which meant slashing costs, training thousands of employees to become program experts, and requiring extensive reporting on new products in the R&D pipeline. In the short term, especially in the eyes of investors, it seemed to work. Costs were brought under control, production speed increased, and operating margins rose from 17 percent to 23 percent by 2005. But researchers in the labs were stifled by the demands of the new metrics. 3M had a century-long history of innovation, but now R&D had been cut and inventors weren’t given adequate time to tinker with products before having to demonstrate successful commercialization. “We were letting, I think, the process get in the way of doing the actual invention," said Dr. Larry Wendling, staff vice president at 3M's Corporate Research Laboratory. 

After McNerney’s departure for Boeing in 2005--just four years after joining the company--3M began to reevaluate Six Sigma. In addition to the friction it caused among staff, its long-term growth potential appeared compromised and there were concerns that 3M had become “a less creative company...a vitally important issue for a company whose very identity is built on innovation.”

In recent years, 3M has significantly changed the way it uses Six Sigma. The company acknowledges that the program adds value in its factories, so it’s still utilized in manufacturing operations. Researchers working in the labs, however, are no longer beholden to the metrics and rubrics of Six Sigma. The shift has been successful--and there are metrics to prove it. One of the best measures of innovation efforts is the percentage of revenue that a company derives from products introduced in the last five years. At 3M, this number had traditionally hovered around 30 percent, but had dropped to 21 percent after Six Sigma’s introduction. In 2010, the number was back up to 30 percent and may soon surpass 35 percent.

I don’t mean to vilify Six Sigma unfairly. It’s just one example in a long list of top-down processes that people mistake as a silver bullet to improve their entire business. TQM, Lean Six Sigma, ISO, etc.--they all entrench organizations in policies and procedures, minimizing the organization’s innovation potential.

Today, managers are especially in a bind. They’re expected to efficiently produce outstanding short-term results, but the innovation they’re supposed to pursue could very likely hurt their careers. A 2011 PricewaterhouseCoopers survey summarizes the quandary:

“Those in middle management... found innovation disruptive to their day-to-day activities and felt it got in the way of running an efficient operation--which is what they were paid to do.”

When people’s jobs depend on meeting metrics and maintaining the status quo, can you fault them for their reluctance to expend any energy toward creation and invention?

Reprinted by permission of Bilbiomotion. Excerpted from Kill the Company: End the Status Quo, Start an Innovation Revolution, copyright 2012 Lisa Bodell. All rights reserved.

[Image: Flickr user Deja Photo]

Making it Lean - Don’t Underestimate Lawyers’ Resistance to Change

Seyfarth Shaw has learned a lot about lawyers and their resistance to change as the firm embraced Lean Six Sigma, a management approach emphasizing process improvement and efficiency in legal work.

Seyfarth Shaw chairman J. Stephen Poor outlines the lessons learned in an article for the New York Times DealBook blog. “Never underestimate the resistance to change from lawyers,” he writes. “Even more likely, never underestimate the ability of lawyers to describe virtual status quo efforts as revolutionary change. Working through a change management process intended to deal with that push-back has been a core element of our challenge for years.”

Resistance came not just from lawyers in his firm, Poor says. Most of the firm’s clients are also lawyers, and they also showed reluctance. The firm has learned that it had to build a business case for change, working in collaboration with clients.

Two other lessons learned:

• Law firms do need to change how they manage their businesses, with a focus on client demands for better value. Except for a handful of law firms, “the status quo will not drive long-term success,” he asserts.

• Don’t settle for half steps. "Marketing efforts are lovely; certainly, we all do marketing," he says. “But if one is to truly evolve a business model, the only way to avoid having it become simply a marketing effort is to recognize that it must drive through all parts of the organization."

Re-Engineering the Business of Law

BY J. STEPHEN POOR

J. Stephen Poor is chairman of the international law firm Seyfarth Shaw.

True long-term success requires businesses to improve continually and reimagine how they operate in the face of changing competition and market forces. Yet this innovative urge, which drives so much of the rest of the American economy, is largely absent from large law firms.

Instead, the measures become balancing rate growth versus discounted fees, lawyer productivity measured in tenths of hours, recruiting the partner with a book of business from one firm to another and similar yardsticks.

These address the traditional measures of law firm profitability. The need of the purchasers of legal services — at least from large law firms — continues to change, however. The pressure on in-house counsel to deliver better services using fewer resources has never been more intense. In order to meet business demands, corporate counsel are increasingly looking for firms that deliver greater value. Looking out on a landscape that includes a wider variety of choices than ever before – regional firms, national firms, global firms, virtual firms, legal outsourcing providers and contract firms, among others — their purchasing decisions continue to evolve.

If the recent recession teaches anything for the legal industry, it is this: The changing demands of our clients require the legal services profession to find different paths to deliver value to those who buy our services. Lawyers today should be asking themselves nontraditional questions: how to apply resources more effectively, to shorten cycle time and lower the cost of their work product and other deliverables, while raising the level of service. In the end, your client will reward you by giving you more work across more areas, and your relationship will deepen.

The ground on which we walk has been altered. Traditionally, large law firms fit into largely homogenous business models. Whether we recognize it or not, that has changed and will continue to shift. As we navigate a different world, our experience presents three core lessons:

Be Prepared to Examine and Reimagine the Business Model.

Our firm has been on its own, unique path for years. Over the past seven years, we’ve used a version of Lean Six Sigma borrowed from the manufacturing sector to redesign core elements of how legal work process is measured and deployed. This has resulted in a variety of tools, analyses and process improvement techniques intended to drive efficiency into the delivery of legal services – at all levels of the practice. More important, it aligns a way of thinking with the needs and requirements of corporate purchasers of legal services.

What works for us, however, may not work for every firm. Culture, current firm composition and many other factors should drive the way any firm responds to the market. The point, however, is that — other than for a handful of firms — the status quo will not drive long-term success. Change, particularly one involving lawyers, is a painful, prolonged process. Nevertheless, change, driven from innovation and a consistent focus on client needs, must drive how we look at and manage our businesses. Learning from our colleagues in the industry is important, but adapting that learning and innovating in the delivery of our services is critical.

Don’t Settle for Half-Steps.

Too often, I see firms start down a path only to stop at partial implementation or inconsistent philosophies. At Seyfarth, we realized that trying to drive different behaviors would require us to restructure things like associate evaluation (which we did by putting our compensation and advancement structures into a pure competency model) and re-examine our staffing models (for example, we eliminated a traditional summer program and replaced it with an education-based fellowship program). The global reach of our clients and their need for integrated, efficient service delivery across multiple countries, led us to create the largest multijurisdictional international employment practice, among others.

The point is not that our path is for everyone. The point is that the willingness to change and adapt business models must anticipate and address the variables that drive organizational success.

Marketing efforts are lovely; certainly, we all do marketing. But if one is to truly evolve a business model, the only way to avoid having it become simply a marketing effort is to recognize that it must drive through all parts of the organization. This will result in changes and modifications that were not anticipated but which make sense and should be adopted in order to have the overall change work properly.

Never Underestimate Resistance to Change.

Never underestimate the resistance to change from lawyers. Even more likely, never underestimate the ability of lawyers to describe virtual status quo efforts as revolutionary change. Working through a change management process intended to deal with that push-back has been a core element of our challenge for years. We consciously developed methodologies that linked to the history and culture of our firm or used client voices to support and build the business case for change. As we were able to demonstrate success on smaller scales, we were able to build agents for change that effectively permeated the firm.

What we did not anticipate was the resistance from other crucial stakeholders – especially clients. Much of what we’ve done is most effective when deployed in a collaborative change process with clients. What we overlooked at the outset is that, by and large, our clients are lawyers, too, and many of them are the products of the culture of their own business. Understanding the various viewpoints and building the business case to involve this crucial constituency was something we learned along the way. The nature of the process requires a continuous, but slow march toward improvement and adaptation. Some things we tried worked and some did not. Nevertheless, the continuous move forward takes persistence and, perhaps, a bit of stubbornness.