!! Change !!

Face It, Embrace It, & Thrive

Thinking win-Win-WIN

Building the Culture for Sustainable CI

September 9th, 2014 Belfast
With permission and full credit to Mike Rother for Toyota Kata subject matter.
 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
• Command and Control management

Time

Magnitude of Change
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
• Government Policy Change
• Resource Depletion
• Global Warming
• Financial Crises
Belfast
• Currency Wars
• Rising Costs
• Political Instability
• Eurozone Troubles
• Exchange rate volatility
• Intensifying Global Competition

Increasing & Unavoidable

8
 What it takes
to Change.
• Exercise – Part A

– 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…

9
Much of what happens in organizations in the result of habits people
have learned through practice, whether deliberately or by default.

We develop a
Fixed Mindset
based on well worn
neural pathways.
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!
 Green Zone –
things are good.

Green Zone:
Comfort
Familiarity Mystery
Predictability
Ease
Confidence Uncertainty

Apparent
Certainty

13
PROBLEM IS…
Today & in the Future
• We are faced with increasing
“Yellow Zone” Challenges
 Green Zone – Yellow Zone –
things are good. things are different.
Yellow Zone:
Green Zone:
Stress
Comfort
Effort
Familiarity Mystery
Difficulty
Predictability
Unpredictability
Ease
Uncertainty Novelty
Confidence
Mistakes
Learning
Apparent Innovation
Certainty

15
Now, minor Change.
• Sign your name using
your non-dominant hand.

Exercise
• 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.

Please raise your hand when done…

16
 How did you feel using your
non-dominant hand?

• Awkward • You were outside your

• Strange comfort zone.
• Difficult • You have a well-worn neural
• Uncomfortable pathway for writing with
your dominant hand.
– It has become automatic,
WHY??? comfortable, familiar.
– Little / no mental energy
– Automatic / unconscious

17
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
 Command & Control – Mgmt By Results

Set Vision
Exec.
Produce the
Senior Answers
Leaders &
Managers
Direct the
Masses

Masses:
Execute
directions from
above.

The accelerating rate of change is overwhelming our

traditional MBR style of managing. 20
 Time to update our
Management System
Set Vision
Exec.
Produce the
Senior Answers Masses:
Leaders & Everyone
Managers
Direct the provides
Masses CREATIVE INPUT
aligned with the
Vision.
Masses:
Execute
directions from Senior
above. Provide Leaders &
Coaching Managers

Exec.
Set Vision

21
Improvement Kata
is an ideal
methodology to
support a culture
of full engagement
& Continuous
Improvement
22
© Mike Rother 23
 Core of Kata = Routines

• Compact
• Simple
• To Learn
• To Teach
• Consistent
• Easy
• To Understand
• To Practice
• Time Efficient
© Mike Rother

24
 The Pattern of the Improvement Kata

© Mike Rother 25
 The Pattern of the Improvement Kata

A Task for MANAGERS: A Task for LEADERS:

Day-to-day coaching of the Establish the
Improvement Kata in their organization’s long term
area of responsibility strategy and direction

1 week –
1-3 years Distant
3 months

Often Vague
Concrete “Principles”
Successive T/Cs Hard Metrics
to achieve the
Challenge
© Mike Rother
CHALLENGE
How is Improvement Kata Different?

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
28
 1. Target Condition

Target
Condition
Striving
Toward a new higher
level of performance

Current
Condition
Return to Problem
our Current
Condition Solving

Problem

29
© Mike Rother
 Next

4 Categories Next
of Information
Next
Often, these are
decided from the
“Bottom Up” First

© Mike Rother 31
© Mike Rother 32
 2. Rapid PDCA Cycles
( Plan – Do – Check – Act )

Green Zone:
Comfortable
Familiar Mystery Threshold of
Predictable Knowledge
Easy
Confidence Uncertainty

Apparent
Certainty
Next Target
Condition
Learning Zone:
Uncertainty
Trial & Error
Discovery
Learning
Innovation
33
 Rapid PDCA toward T/C

The path will be unclear.

? Obstacles ?
? ?
? ?
?
Current ? ? ? Target
Condition ? ? Condition
? ?
?
? ?
? Unclear territory ?
?
?

Small, rapid experiments advance our knowledge

quickly
34
What it Actually
Common Looks
Idea of PDCALike!

© Mike Rother
3. Structured Dialog

Focused on Facts & Data

36
 Reflect on the Last Step Taken
Because you don’t actually know
what the result of a step will be!

1) What was your Last Step?

2) What did you Expect?
3) What Actually Happened?
4) What did you Learn?

Return --------->

© Mike Rother
 4. Coach-Learner Relationship

Manager Supervisor

Manager Advises Supervisor Owns the

and Supports Target Condition.
© Mike Rother 39
© Mike Rother 40
 • To Happen
A • To Learn
B
C

Each Row = One Experiment = One / Day

© Mike Rother 41
 5. Simple, Powerful Tools
ASK THE 5 CK QUESTIONS AT EACH STEP

© Mike Rother 42
 Storyboard is communication hub

Coach
Learner
2nd Coach
(not always
present)
 5Q Coaching Dialog

Learner
Coach

2nd
Coach
44
 2nd Coach Feedback

Coach
Learner
2nd Coach
(not always
present)

45
Illustration of 5Q Coaching Dialog

3 Coaching Cycles
– 15 minutes

1 Coaching Cycle
– 5 minutes

46
 Kata promotes a Culture of
Full Engagement toward CI
• 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 47
 Our Great Untapped
Resources

• Greatest population Masses:

Masses:
Everyone
Everyone
• Working directly on the provides
provides
CREATIVE INPUT
aligned withINPUT
CREATIVE the
value-adding processes aligned with
Vision. the
Vision.

• Practical Subject Matter Experts

Senior
Provide Leaders &
Coaching Managers

Exec.
Set Vision

48
 Q&A
More Info…
 For more information…
2 minutes 4 minutes

IK / VK Overview Merck – Benefits of Kata

• Beth Coaching IK: • Kata at Merck Elkton:

https://www.w3groupllc. https://www.w3groupll
com/presentations/impro c.com/presentations/m
vement-kata/ erck-elkton/
 For more information…
5 minutes

Jeff Liker – Kata Deployment

• Liker video;
https://www.youtube.co
m/watch?v=6nG0emZY
468
https://www.w3groupllc.com/wp-
content/uploads/2014/08/3-Day-
promo-piece-.pdf