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The Blue Yarn

October 8, 2018 by Chris Scherer Leave a Comment

 


So, the blue yarn. What does it mean?

The best way to understand the blue yarn is to follow it. That’s exactly what Dr. Gary Kaplan did. In 1998, he was CEO of Virginia Mason Medical Center, which was losing money. As he searched for a better system to manage the hospital, he ‘wound up’ at a Toyota factory in Japan where he spoke to a sensei familiar with the Toyota Production System.

What he found was something very simple that, at the time, had been around for nearly 100 years. Sakichi Toyoda developed a self-correcting loom that could stop when thread was broken or defective. They ultimately automated the process and made it mistake-proof. This process is called Jidoka, or autonomation, and means automation with human intelligence.

Why Jidoka?

Jidoka is important because it stops a process immediately when a problem first occurs. Not only does it fix the condition, but it ultimately eliminates the root cause of the problem or defect. In an automated Jidoka process, equipment monitors its output (products) independently from operators, thereby enabling operators to operate multiple pieces of equipment and improve productivity.

Why the blue yarn?

Back to the hospital. The sensei used the blue yarn to map the path a patient would follow in a visit through cancer treatment. What they found was a mess. Cancer patients were already low on time and energy, but this ‘process’ had them winding all over the building in a seemingly needless pattern: a waste of time and energy.

When they ‘re-mapped’ the process, the savings from insurance expense alone were 37% and they were able to increase the number of patients without additional staff. Ultimately, they reduced patient receive treatment time by 50%. Dozens of hospitals have since adopted the Virginia Mason Production System. Based on a recent study of US hospitals, for two years Virginia Mason has placed in the top one percent in safety and efficiency.

Clearly, the flow of the process is one piece of the puzzle. Of equal importance is the decision to enable employees to: monitor a process, identify defects, stop the process, fix the problem, identify the root cause, and, ultimately, help eliminate the root cause of defects.

Imagine following a blue yarn through every step of one of your processes, including mistakes, corrections, delays, handoffs, miscommunications, etc. Recurring mistakes building on other recurring mistakes will create a big mess. Now imagine every person in that process having the ability to address those gaps and improve the process. Addressing the root cause will build a mistake-free and efficient process that is much cleaner and direct.

There is a method to achieve this. It starts with:

  • Clarity around your dream or whatever it is you want from your business (i.e., ultimate business outcome and whatever ‘freedom’ means to you)
  • Your mindset to achieve your dream
  • Your decision to use a methodology and management system to bring your dream to life.

 

Ready to achieve your dream?

  • Email me so that we can learn more about your business: chrisscherer@ceofocusmi.com
  • Join our Facebook group for key insights: https://www.facebook.com/groups/StressfulToSuccessful/

 

Listen to the original story

Here: 99% Invisible – The Blue Yarn

Filed Under: 0 Organizational Profile, 0.2 Organizational Situation, 0.2c Performance Improvement System, 3 Customers, 3.1 Voice of the Customer, 3.2 Customer Engagement, 3.2a Product Offerings and Customer Support, 3.2a.(1) Product Offerings, 3.2a.(2) Customer Support, 3.2b Customer Relationships, 3.2b.(1) Relationship Management, 3.2b.(2) Complaint Management, 4 Measurement, Analysis, and Knowledge Management, 4.1 Measurement, Analysis, and Improvement of Organizational Performance, 4.1a Performance Measurement, 4.1b Performance Analysis and Review, 4.1c Performance Improvement, 4.1c(1) Best Practices, 4.1c(3) Continuous Improvement and Innovation, 4.2 Knowledge Management, Information, and Information Technology, 4.2a Organizational Knowledge, 5 Workforce, 5.1 Workforce Environment, 5.2 Workforce Engagement, 6 Operations, 6.1 Work Processes, 6.1a Product and Process Design, 6.1b Process Management, 6.1c Innovation Management, 6.2 Operational Effectiveness, 7 Results, 7.1 Product and Process Results, 7.2 Customer-Focused Results, 7.2a Customer Satisfaction, A Core Values and Concepts, A.01 Systems Perspective, A.03 Customer-Focused Excellence, A.04 Valuing People, A.05 Organizational Learning and Agility, A.06 Focus on Success, A.07 Managing for Innovation, A.11 Delivering Value and Results, Uncategorized

Crisis Management & how to overcome it

May 3, 2018 by Uwe Wetzel Leave a Comment

Here is an interesting story I want to share. Back in my past as CEO of an injector manufacturing plant there was a phenomenon for several weeks. Every Friday at 3:00 pm we were in crisis mode. At that time, we were working seven days, three shifts and at 3:00 pm on Friday, the assembly manager indicated that we need to shut down the assembly line on the weekend due to inadequate parts supply. The logistics manager struggled to get the parts from the fabrication department or outside suppliers, which had to produce the parts by working overtime and expedited shipping cost.

Shutting down the assembly line would have had a dramatic impact on the supply to our customer as we were one of their just-in-time suppliers. We would have shut down their production line with a huge financial penalty. We were in crisis mode every Friday for a couple of months.

Finally, I called all managers involved in the supply and production process into a meeting to discuss the constant crisis mode on Fridays. After lengthy discussions and analyzing the root cause of the shortages, we agreed to meeting on Thursday mornings, everyone providing information about demand and supplies for the weekend production. We were now able to prioritize and adjust production where needed. Within two weeks there was no crisis meeting on Fridays any more. Problem solved. We were able to reliably provide the necessary quantity to the customer.

Conclusion: Unless you find the root cause of the problem using six sigma methodology and eliminate the issues in the process, you will not see improvements in your processes and production output.

Filed Under: 1 Leadership, 3 Customers, 4 Measurement, Analysis, and Knowledge Management, 4.1c(3) Continuous Improvement and Innovation, 6 Operations, 6.1b Process Management, 6.2 Operational Effectiveness, 7 Results, 7.1 Product and Process Results, 7.2 Customer-Focused Results, A Core Values and Concepts, A.01 Systems Perspective, A.03 Customer-Focused Excellence

Will Your Business Be Sold Or Will It Fold?

January 17, 2018 by Chris Scherer Leave a Comment

Did you know?

  • Approximately 50% of businesses fail within five years
  • Over 70% of businesses are owned by Baby Boomers who are nearing retirement and most will never find a buyer
  • Over 80% of these Baby Boomer Businesses are not “transaction ready”.
  • Only 4-5% of businesses listed are actually sold in any one quarter (BizBuySell.com).
  • Over 70% of businesses sold fail to meet the expectations of the buyer.

Filed Under: 2 Strategy, 3 Customers, 4.2b Data, Information, and Information Technology, 5 Workforce, 6 Operations, 7 Results, 7.5 Financial and Market Results, A.08 Managing by Fact

Dream of Selling

October 31, 2017 by Chris Scherer Leave a Comment

Every business owner thinks about exiting their business. Some hope to sell. Others may have plans for somebody to ‘take over’ (e.g., next generation; partner/co-owner; employees via employee stock ownership plans; etc.). Maybe the plan is to step away slowly and continue to take an income or profit. Regardless of the plan, the success of each is largely contingent upon the health of the business.

Any buyer will want some assurance of continuing revenue, as well as the ability to continue operations at a profit. The likelihood of recurring revenue lessens when the ‘Selling CEO’ exits and there is no team in place to drive sales. Let’s assume there is a sales and marketing team to drive revenue. Is there an operating system with the accountability in place to execute on delivering the products and services sold? Does the system measure the effectiveness of those responsible? Do you have trusted relationships with suppliers? How well documented are your systems and processes?

It might seem counterintuitive, but a good test of this happens with a passive CEO. What happens when you (the owner/CEO) take time off? Imagine taking a two-week vacation with no access to your phone or computer. Would the business thrive or would you come back to a firestorm? Take it a step further. Does your management team have a clear direction for the next 3-5 years? Are your vision, values, and goals clear? Would they share the same view of that long-term goal in your absence?

Based on our collective experience in leading Peer Advisory Boards (Mastermind Groups) and one-on-one executive coaching, if the answer is ‘no’, it’s unlikely the team will be able to provide strategic direction, much less daily tactical direction.

The following article shares similar guidance. Please tell us about your experience, as you dream about exit and begin to move closer to leaving your business.

Why Many Small Businesses Cannot Be Sold (NY TImes)

Filed Under: 0.1a Organizational Environment, 0.1a.(2) Mission, Vision, and Values, 0.1a.(3) Workforce Profile, 0.1b Organizational Relationships, 0.1b.(1) Organizational Structure, 0.1b.(2) Customers and Stakeholders, 0.1b.(3) Suppliers and Partners, 1 Leadership, 1.1 Senior Leadership, 2 Strategy, 4.2 Knowledge Management, Information, and Information Technology, 6 Operations, 6.1 Work Processes, 7 Results, 7.1 Product and Process Results, 7.2 Customer-Focused Results, 7.3 Workforce-Focused Results, 7.4 Leadership and Governance Results, 7.5 Financial and Market Results, A Core Values and Concepts, A.01 Systems Perspective, A.02 Visionary Leadership, A.03 Customer-Focused Excellence, A.05 Organizational Learning and Agility, A.06 Focus on Success, A.11 Delivering Value and Results

Are You Vulnerable

October 17, 2017 by Chris Scherer Leave a Comment

The primary goal of leadership is to have influence. Leaders should have the answers. They don’t need help. Right?

Wrong. Attaining leadership is more complicated than it might seem. How about leading through power and authority? Lead the way. This, too, has inherent limitations.

Why? What if he doesn’t know the way? What if this (whatever-it-is) has never been done? Power and authority only get you so far. They have a limited sphere of influence. They can maintain the status quo and strengthen boundaries. They might even extend borders, build strong walls, control or mitigate bad outcomes, contain and constrain you-name-it. A leader who wields power and authority to get stuff done inherently imposes his ‘way’, which is, by definition, limited.

On the other hand, the leader who has the courage to be vulnerable immediately creates opportunity for all possibilities. She opens the door to the unknown. She invites change, collaboration, discovery, evolution, growth, innovation, invention, questioning, transformation, and transparency.

The leader’s job is to enable this environment and provide a framework within which her team can influence reaching whatever goal lies ahead.

Are you courageous enough to be vulnerable?

Courtesy: Glenn Lopis at Entrepreneur

Filed Under: 0.1a Organizational Environment, 1 Leadership, 1.1 Senior Leadership, 2 Strategy, 4.1c Performance Improvement, 4.1c(1) Best Practices, 4.1c(2) Future Performance, 4.1c(3) Continuous Improvement and Innovation, 4.2 Knowledge Management, Information, and Information Technology, 4.2a Organizational Knowledge, 5 Workforce, 5.1 Workforce Environment, 5.2 Workforce Engagement, 6.1c Innovation Management, 7.4 Leadership and Governance Results, A Core Values and Concepts, A.01 Systems Perspective, A.02 Visionary Leadership, A.04 Valuing People, A.05 Organizational Learning and Agility, A.06 Focus on Success, A.07 Managing for Innovation, A.10 Ethics and Transparency, A.11 Delivering Value and Results

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Categories

  • 0 Organizational Profile
  • 0.1 Organizational Description
  • 0.1a Organizational Environment
  • 0.1a.(2) Mission, Vision, and Values
  • 0.1a.(3) Workforce Profile
  • 0.1b Organizational Relationships
  • 0.1b.(1) Organizational Structure
  • 0.1b.(2) Customers and Stakeholders
  • 0.1b.(3) Suppliers and Partners
  • 0.2 Organizational Situation
  • 0.2a Competitive Environment
  • 0.2c Performance Improvement System
  • 1 Leadership
  • 1.1 Senior Leadership
  • 1.2 Governance and Societal Responsibilities
  • 2 Strategy
  • 2.2 Strategy Implementation
  • 3 Customers
  • 3.1 Voice of the Customer
  • 3.2 Customer Engagement
  • 3.2a Product Offerings and Customer Support
  • 3.2a.(1) Product Offerings
  • 3.2a.(2) Customer Support
  • 3.2a.(3) Customer Segmentation
  • 3.2b Customer Relationships
  • 3.2b.(1) Relationship Management
  • 3.2b.(2) Complaint Management
  • 4 Measurement, Analysis, and Knowledge Management
  • 4.1 Measurement, Analysis, and Improvement of Organizational Performance
  • 4.1a Performance Measurement
  • 4.1b Performance Analysis and Review
  • 4.1c Performance Improvement
  • 4.1c(1) Best Practices
  • 4.1c(2) Future Performance
  • 4.1c(3) Continuous Improvement and Innovation
  • 4.2 Knowledge Management, Information, and Information Technology
  • 4.2a Organizational Knowledge
  • 4.2b Data, Information, and Information Technology
  • 5 Workforce
  • 5.1 Workforce Environment
  • 5.2 Workforce Engagement
  • 6 Operations
  • 6.1 Work Processes
  • 6.1a Product and Process Design
  • 6.1b Process Management
  • 6.1c Innovation Management
  • 6.2 Operational Effectiveness
  • 7 Results
  • 7.1 Product and Process Results
  • 7.2 Customer-Focused Results
  • 7.2a Customer Satisfaction
  • 7.3 Workforce-Focused Results
  • 7.4 Leadership and Governance Results
  • 7.5 Financial and Market Results
  • 7.5a Financial Performance
  • 7.5b Marketplace Performance
  • A Core Values and Concepts
  • A.01 Systems Perspective
  • A.02 Visionary Leadership
  • A.03 Customer-Focused Excellence
  • A.04 Valuing People
  • A.05 Organizational Learning and Agility
  • A.06 Focus on Success
  • A.07 Managing for Innovation
  • A.08 Managing by Fact
  • A.10 Ethics and Transparency
  • A.11 Delivering Value and Results
  • Baldrige
  • FAQs – Frequently Asked Questions
  • Uncategorized

Recent Posts

  • The Blue Yarn
  • Crisis Management & how to overcome it
  • Creating a Learning Organization
  • Four Barriers to Business Transformation
  • CEO Habits to Develop in 2018
  • Will Your Business Be Sold Or Will It Fold?
  • Measure Your KPI’s
  • Avoiding Blind Spots
  • Who’s In Charge
  • Dream of Selling

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