UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE. Callie Woodward Driving change through continuous improvement

Transcription

1 UNLEASHING YOUR GREATEST COMPETITIVE ADVANTAGE Callie Woodward Driving change through continuous improvement

2 We will explore How Continuous Improvement increases the focus on changes that create value to the customer Tim s Journey Addressing the cultural impact of Continuous Improvement How OD and CI can be used in parallel to improve organizational results Meeting resistance head on: addressing management and employee concerns.

3 Topics Continuous Improvement 101 Tim Hortons Continuous Improvement Journey Building a Continuous Improvement Culture A Continuous Improvement Strategy How to build a Roadmap.

4 CI 101

5 Continuous Improvement (CI) CI is the consistent evolution of the business driven by principles embedded in the organizational culture and delivered through a framework of integrated disciplines, e.g.: Lean management Six Sigma Project management Change management

6 Continuous Improvement Thinking is about... Always focusing on customer needs and value Fostering continuous change and working with teams to come up with solutions Sustaining improvements - tools, rules, and principles Making process improvement a part of daily life - the Plan-Do-Check-Act cycle

7 Continuous Improvement is about people! Engaging all minds Developing people Empowering people

8 Critical Concepts of Lean

9 What is Lean? The ability to accomplish more with less and more Lean means less of many things less waste, shorter cycle times, fewer suppliers, less bureaucracy. But Lean also means more more employee knowledge and empowerment, more organizational agility and capability, more productivity, more satisfied customers, and more longterm success. Lean has brought to everyone vastly improved products and services and it s brought them faster, cheaper, and more reliably. Lean for Dummies (Natalie Sayer, Bruce Williams, 2007)

10 The pursuit of the perfect process You are in business to sell products and services to customers. It is the customer, and only customer, who establishes what is of value. You design processes that create value for your customer. Waste can creep in to your process and diminish the process of value creation. A perfect process has no waste. Perfect processes maximize customer value.

11 Process Flow Before: Well-intentioned Chaos Can Do Capacity After: Orderly Sequenced Aligned Team Based 1 2 3

12 A Continuous Improvement Organization is Consistently Engaging and satisfying customer(s). Focused and aligned to realize opportunities Proactively Innovative Continuously identifying and realizing opportunities within the market place.

13 Koffee Kaizen Please run Koffee Kaizen

14 TIM S JOURNEY

15 Why CI at Tim Hortons? Lean launched in 2008 to: Improve competitive advantage through continuous improvement Recognize a Lean cultural evolution could have significant impact to the organization Strong alignment between our values and key Lean principles

16 Tim s Past: Where we came from Why embark on a CI Journey? Can not operate in the future as we have in the past Managing our growth and scale Utilizing resources better (time, treasury, & talent) What we set out to gain 30-50% improvement capacity (do more with the same), quality (do it better), time (do it faster) and cost (do it cheaper) Employee engagement ownership of problems and opportunities, increased job satisfaction and work-life balance

17 Tim s Roadmap Tim Hortons' CI Maturity Standard Work Co-location More Pilots 1 st Level 3 Apprentice Operational projects Coaching Value stream PowerChanges Governance Structure CI priorities Value stream PowerChanges Pilots Governance Scorecard CI priorities Strategy & VS Scorecards Ideation Value stream Training E-learning Apprentice Program Strat-on-apage Scorecards Ideation Continued Training CI Workshops Legend: Corporate CoE & Governance CI value stream and PM New CI practitioners Time

18 A Continuous Improvement environment Delivers products to the end customer, with: minimum waste maximum quality minimal cost Provides better customer value by responding more quickly, and predictably to customer needs Enables the organization to become more capable, efficient, and flexible Creates a process cycle that translates to superior financial performance

19 Flow first, the rest later! By focusing on immediate elimination of process bottlenecks and key areas of waste, improvements are realized sooner Further study, review, and enhancements can be applied after flow is implemented

20 A CI CULTURE

21 A Continuous Improvement Organization Culture is Guest, Owner, and Employee Focused Solution Finding vs Problem Solving Efficient, Effective, Innovative Fast, Flexible, Agile Exciting, dynamic and invigorating Top Down Managed & Bottom-up Lead Collaborates Horizontally Strategic Alignment across the organization Disciplined Planning, Prioritization & Decision Making Always learning

22 Characteristics of a Lean enterprise Primary Business Organizational Structures Operational Framework Mass Production Product-focused strategy Focus on economies of scale Hierarchies with functional lines Encourages functional alignment Inhibits information flow Following direction Fear of problem identification Lean Enterprise Customer-focused strategy Focus on shifting competitive advantage Flat, flexible structures Encourages individual initiative and the flow of information Standard work Focus on problem identification and experimentation

23 Rethinking hierarchy

24 PDCA IImprovements in Process Outputs Disciplined and consistent focus for sustaining improvements Repeating the PDCA cycle can bring us closer to the goal - usually a perfect process!

25 CI is a culture evolution for Tim Hortons FROM. Passion and belief in the Brand Artifacts Collegiality and and Fun Behaviours Silos, turf battles, divided camps One team, one goal, one voice Unclear roles and decision rights Bureaucracy and churn Rushing to execute Norms and and keep Values up Pride in the Company Reacting to the market and competition Underlying Assumptions..TO Clear leadership and accountability Efficient and fast coordination. Planning, prioritizing to execute with agility Insight and foresight to win in the market

26 Our leadership behaviours

27 Tight-Loose Cultures Empowerment Loose / Loose Low Clarity High Empowerment Low Clarity Low Empowerment Loose / Tight Tight / Loose High Clarity High Empowerment High Clarity Low Empowerment Tight / Tight Clarity Source: Dr. John Izzo, The Izzo Group

28 Tim Hortons Values We are Can Do We Seek Opportunities We Achieve Excellence We are Fair and Ethical We are an Amazing Team

29 A CI STRATEGY

30 Pain Points 1. Organization feeling hand-cuffed and clogged by decision making? 2. Operates in silos and struggle to coordinate across? 3. Stretched and frustrated by rushed initiatives? 4. People practices fractioned? 5. Everyone collaborating? 6. Losing your competitive edge?

31 What a CI organization does Excels at Root Cause Problem Solving & Seeking Opportunities Towards Perfection. Measures what Matters and reacts accordingly Collaborates Cross-Functionally through Processes Disciplined Planning & Decision Making Focused & aligned on Strategy, Mission & Values Flawless Execution Designs Smart efficient and effective processes, products and services. Adheres to Standards and Standardized Procedures Sees every error and mistake as an opportunity to learn and progress not to blame. Embraces Change Fosters Employee Empowerment & Development

32 Employee Capabilities Required Mindset: I have the skills and I want to use them to THI s benefits Prioritization of activities, not all firefighting, time for CI Skills & Competencies: Problem Solving Root Cause Analysis Value Stream Mapping and Standards Design CI Project Management (DMAIC) Change Management Lean & Six Sigma Methods Strategic Planning and Deployment (Hoshin & x-chart) Analysis and Reporting (scorecards) Facilitation Coaching & Mentoring Leadership Collaboration Communication

33 Organizational Support Requirements Accountability, Governance & Reporting Framework Forums & Opportunities for Practice and Learning, and Deployment Forum for Prioritization, Strategy Alignment & Cascade/Deployment. Training & Development Appropriate Templates, Tools & Technology Lean & Six Sigma Standard guidelines and procedures Forum for idea & solution generation Rewards and Recognition Resource & Succession Plans Data Integrity and Reporting capability Central CI group as Guardian of the Process. Senior Leadership

34 CI Model CI is a key and very important part of my role within the organization. CI embedded in Strategy. (Top Down) Grass Roots (Bottom Up) CI is everywhere as the key management philosophy overall CI is Support Cavalry Embedded Model. (Workgroups and Gemba )

35 Managing the transformational change Generating awareness through education and communication Building skills through formal training and action learning Evolving leadership behaviours Addressing organizational structure implications Ensuring effective governance

36 CI Governance Executive Team Senior Leadership Team Continuous Improvement Team Strategy Sponsorship Process Management Building Capability SI & CI Management Project Teams Execution Excellence

37 Building Capability Leadership Development (Tight/Loose) Project Management Change Management Power Change (Kaizen) Power Change (Kaizen) Power Change (Kaizen) Power Change (Kaizen) Power Change (Kaizen) Simulation Lean Fundamentals elearning

38 Strategy Deployment & Execution Continuous Improvement Organizational Efficiency & Effectiveness Reporting Strategic Project Management Process Efficiency & Effectiveness KTLO Projects

39 Cascading Strategy Strategy Process Individual

40 Measuring Results exposes Opportunities O P P O R T U N I T I E S New Product Introduction Measure % Fill Rate- Right Idea Warehouse % Fill Rate Ready To Go Supermarket % Gate Passage Violation on First Iteration % Process on Takt Time to PPP Current 50% TBA TBA TBA QTD YTD Improvement Executive Strategy Scorecard Measure Measure Deveopment Current # Store Openings 100% # Deficiencies TBA Time to resolve Deficiencies ROI/ 1st years sales Current Development Plan 50% New Product Launches Same Store Sales Perfect Order TBA TBA TBA TBA TBA Improvement QTD QTD YTD YTD Measure Current Perfect Order 100% Cost per Case Supplier Scores Work Place Injuries Improvement Supply Chain TBA TBA TBA QTD YTD R E S U L T S

41 Risks in CI transformations Belief that benefits are over Accepting good enough Potential burn-out Process Results Giving up early Failure to develop depth Failure to develop process Resistance Phase Initial Success Big Success time Slowing Down Plateau Continuous Improvement CI is not just the implementation of a set of tools. It is a commitment to the set of tenets and behaviours that creates a CI organization and keeps it there. Source: David Meier, Lean Associates, Inc.

42 Opportunities 1. Organization feeling handcuffed and clogged by decision making? 2. Operates in silos and struggle to coordinate across? 3. Stretched and frustrated by rushed initiatives? 4. People practices fractioned? 5. Everyone collaborating? 6. Losing your competitive edge? 1. Disciplined Planning & Decision Making 2. Collaborates Cross-Functionally through Processes 3. Flawless Execution 4. Fosters Employee Empowerment & Development 5. Focused & aligned on Strategy, Mission & Values 6. Designs Smart efficient and effective processes, products and services.

43 WHAT S NEXT?

44 THI Present: Where we are now THI Lean Journey Accountability to Lead Lean 5 Integrated Value Stream Management Willing Cascading Strategy 0 Able Scorecards Standard Work & Reliable Methods Idea Generation

45 THI Future: Where we are going THI CI Future Targets for 2018 Integrated Value Stream Management Cascading Strategy Accountability to Lead Lean Willing Able Scorecards Standard Work and Reliable Methods Idea Generation

46 Tim s Roadmap Tim Hortons' CI Maturity Value stream PowerChanges Governance Structure CI priorities Value stream PowerChanges Pilots Governance Scorecard CI priorities Standard Work Co-location More Pilots Strategy & VS Scorecards Ideation Value stream Training E-learning Apprentice Program 1 st Level 3 Apprentice Operational projects Coaching Strat-on-apage Scorecards Ideation Continued Training CI Workshops Level 3 (1%) Level 1 (50%) Operational projects (80%) CI projects (20%) Coaching Standard Work CI & PM framework Toolkits Launch EPMO Integrated Scorecards Learning Strategy Level 1 or 2 (100%) Level 3 (5%) Operational projects (50%) CI projects (50%) Coaching Launch PMO Sustain EPMO Maintain inventory of potential, CI initiatives Sustain toolkits Facilitate CI education Level 1 or 2 (100%) Level 3 (8%) Level 4 (0.5%) Operational projects 20% CI projects 80% Coaching Sustain PMO Track embedment Sustain EPMO Maintain inventory of potential, CI initiatives Sustain toolkits Facilitate CI education Legend: Corporate CoE & Governance CI value stream and PM New CI practitioners Time

47 Tim s Roadmap Tim Hortons' CI Maturity Value stream PowerChanges Governance Structure CI priorities Value stream PowerChanges Pilots Governance Scorecard CI priorities Standard Work Co-location More Pilots Strategy & VS Scorecards Ideation Value stream Training E-learning Apprentice Program 1 st Level 3 Apprentice Project execution CI leadership (Coaching,, facilitation) Strat-on-apage Scorecards Ideation Continued training CI workshops Build roadmap Level 3 (1%) Level 1 (50%) Project execution (80%) CI leadership (20%) (Coaching, facilitation, standard work) Ensure strategy alignment & integration CI & PM framework Toolkits Launch EPMO Integrated Scorecards Facilitate CI capability building Level 1 or 2 (100%) Level 3 (5%) Project execution (40-60%) CI leadership(40-60%) (Coaching, facilitation, standard work, Launch PMO) Ensure strategy alignment & integration Sustain EPMO Maintain inventory of potential, CI initiatives Sustain toolkits Facilitate & review CI capability Level 1 or 2 (100%) Level 3 (8%) Level 4 (0.5%) Project execution 20-40% CI leadership 60-80% ((Coaching, facilitation, standard work, sustain PMO, track embedment) Ensure strategy alignment & integration Sustain EPMO Maintain inventory of potential, CI initiatives Sustain toolkits Sustain CI capability Drive adherence to CI frameworks & standards Legend: Corporate CoE & Governance CI value stream and PM New CI practitioners Time

48 THI s Lean Future: Building Capability & Seeding CI Communication of Continuous Improvement opportunities and results. Strategy Cascade & Execution Support Accountability to Lead Lean

49 Tim Q Please run TimQ/ countdown