unleashing your greatest competitive advantage - DOCECITY.COM

---

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

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.

Topics • Continuous Improvement 101 • Tim Hortons’ Continuous

Improvement Journey • Building a Continuous Improvement Culture • A Continuous Improvement Strategy • How to build a Roadmap.

CI 101

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

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

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

Critical Concepts of Lean

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)

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.

Process Flow Before: Well-intentioned Chaos

“Can Do Capacity” After: Orderly Sequenced Aligned Team Based

1

2

3

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.

Koffee Kaizen

• Please run Koffee Kaizen

TIM’S JOURNEY

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

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

Tim’s Roadmap

Tim Hortons' CI Maturity • 1st Level 3 Apprentice

• Value stream PowerChanges • Governance Structure • CI priorities

2008 Legend:

• Value stream PowerChanges • Pilots • Governance Scorecard • CI priorities

2009

• Standard Work • Co-location • More Pilots

• Operational projects • Coaching

• Strategy & VS Scorecards • Ideation • Value stream Training • E-learning • Apprentice Program

• Strat-on-apage • Scorecards • Ideation • Continued Training • CI Workshops

2010

Corporate CoE & Governance

2011-2012 CI value stream and PM

2013-2014

2015-2016

2017-2018

New CI practitioners

Time

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

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

A “CI” CULTURE

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

Characteristics of a Lean enterprise Mass Production

Lean Enterprise

Primary Business

• Product-focused strategy • Focus on economies of scale

• Customer-focused strategy • Focus on shifting competitive advantage

Organizational Structures

• Hierarchies with functional lines • Encourages functional alignment • Inhibits information flow

• Flat, flexible structures • Encourages individual initiative and the flow of information

Operational Framework

• Following direction • Fear of problem identification

• Standard work • Focus on problem identification and experimentation

Rethinking hierarchy

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!

CI is a culture ‘evolution’ for Tim Hortons FROM….

…..TO Pride in the Company

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

Clear leadership and accountability

Bureaucracy and churn Norms and Values Rushing to execute and keep up

Efficient and fast coordination

Reacting to the market and competition Underlying Assumptions

.

Planning, prioritizing… to execute with agility Insight and foresight to win in the market

Our leadership behaviours

www.izzoconsulting.com

Tight-Loose Cultures Tight / Loose

Empowerment

Loose / Loose Low Clarity High Empowerment

High Clarity High Empowerment

Low Clarity Low Empowerment

High Clarity Low Empowerment

Loose / Tight

Tight / Tight Clarity

Source: Dr. John Izzo, The Izzo Group

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

A “CI” STRATEGY

Pain Points 1. 2. 3. 4. 5. 6.

Organization feeling hand-cuffed and clogged by decision making? Operates in silos and struggle to coordinate across? Stretched and frustrated by rushed initiatives? People practices fractioned? Everyone collaborating? Losing your competitive edge?

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

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

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

CI Model CI embedded in Strategy. (Top Down) CI is a key and very important part of my role within the organization.

CI is everywhere as the key management philosophy overall

Grass Roots (Bottom Up)

CI is Support Cavalry

Embedded Model. (Workgroups and Gemba )

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

CI Governance Executive Team Senior Leadership Team Continuous Improvement Team Project Teams

Strategy Sponsorship

Process Management Building Capability SI & CI Management

Execution Excellence

Building Capability Leadership Development (Tight/Loose) Project Management

Simulation Lean Fundamentals eLearning

Power Change (Kaizen)

Power Change (Kaizen)

Power Change (Kaizen)

Power Change (Kaizen)

Power Change (Kaizen)

Change Management

Strategy Deployment & Execution Continuous Improvement

Organizational Efficiency & Effectiveness

Process Efficiency & Effectiveness

Reporting

Strategic Project Management

KTLO Projects

Cascading Strategy Strategy

Process

Individual

Measuring Results exposes Opportunities O P P O R T U N I T I E S

Executive Strategy Scorecard Measure

Current

Development Plan

50%

New Product Launches

TBA

Same Store Sales

TBA

Perfect Order

TBA

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

QTD

QTD

YTD

Supply Chain

Deveopment YTD

Measure

Current

100%

Perfect Order

100%

# Deficiencies

TBA

Cost per Case

TBA

TBA

Time to resolve Deficiencies

TBA

Supplier Scores

TBA

TBA

ROI/ 1st years sales

TBA

Work Place Injuries

TBA

Measure

Current

50%

# Store Openings

TBA

Improvement

Improvement

QTD

YTD

Improvement

QTD

YTD

R E S U L T S

Risks in CI transformations Process Results

Belief that benefits are over Giving up early

Resistance Phase

Failure to develop depth

Initial Success

Accepting “good enough”

Potential burn-out

Failure to develop process

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.

Opportunities 1.

2.

3. 4. 5. 6.

Organization feeling handcuffed and clogged by decision making? Operates in silos and struggle to coordinate across? Stretched and frustrated by rushed initiatives? People practices fractioned? Everyone collaborating? Losing your competitive edge?

1. 2. 3. 4. 5. 6.

Disciplined Planning & Decision Making Collaborates Cross-Functionally through Processes Flawless Execution Fosters Employee Empowerment & Development Focused & aligned on Strategy, Mission & Values Designs Smart efficient and effective processes, products and services.

WHAT’S NEXT?

THI Present: Where we are now… THI Lean Journey

Accountability to Lead Lean

5 Integrated Value Stream Management

4

Willing

3 2 1 Cascading Strategy

0

Able

Standard Work & Reliable Methods

Scorecards

Idea Generation

THI Future: Where we are going… THI CI Future Targets for 2018

Accountability to Lead Lean

5 Integrated Value Stream Management

4

Willing

3 2 1 Cascading Strategy

0

Able

Standard Work and Reliable Methods

Scorecards

Idea Generation

Tim’s Roadmap • Level 1 or 2 (100%) • Level 3 (8%) • Level 4 (0.5%)

Tim Hortons' CI Maturity

• Level 3 (1%) • Level 1 (50%)

• Value stream PowerChanges • Governance Structure • CI priorities

2008 Legend:

• Governance Scorecard • CI priorities

2009

• Standard Work • Co-location • More Pilots

• Operational projects • Coaching

• Strategy & VS Scorecards • Ideation • Value stream Training • E-learning • Apprentice Program

• Strat-on-apage • Scorecards • Ideation • Continued Training • CI Workshops

• CI & PM framework • Toolkits • Launch EPMO • Integrated Scorecards • Learning Strategy

• Sustain EPMO • Maintain inventory of potential, CI initiatives • Sustain toolkits • Facilitate CI education

• Sustain EPMO • Maintain inventory of potential, CI initiatives • Sustain toolkits • Facilitate CI education

2013-2014

2015-2016

2017-2018

2010

Corporate CoE & Governance

2011-2012 CI value stream and PM

• Operational projects (50%) • CI projects (50%) • Coaching • Launch PMO

• Operational projects 20% • CI projects 80% • Coaching • Sustain PMO • Track embedment

• Operational projects (80%) • CI projects (20%) • Coaching • Standard Work

• 1st Level 3 Apprentice

• Value stream PowerChanges • Pilots

• Level 1 or 2 (100%) • Level 3 (5%)

New CI practitioners

Time

Tim’s Roadmap

Tim Hortons' CI Maturity

• Level 1 or 2 (100%) • Level 3 (5%)

• Level 1 or 2 (100%) • Level 3 (8%) • Level 4 (0.5%)

• Project execution (40-60%) • CI leadership(4060%) (Coaching, facilitation, standard work, Launch PMO)

• Project execution 20-40% • CI leadership 6080% ((Coaching, facilitation, standard work, sustain PMO, track embedment)

• Ensure strategy alignment & integration • CI & PM framework • Toolkits • Launch EPMO • Integrated Scorecards • Facilitate CI capability building

• Ensure strategy alignment & integration • Sustain EPMO • Maintain inventory of potential, CI initiatives • Sustain toolkits • Facilitate & review CI capability

• Ensure strategy alignment & integration • Sustain EPMO • Maintain inventory of potential, CI initiatives • Sustain toolkits • Sustain CI capability • Drive adherence to CI frameworks & standards

2013-2014

2015-2016

2017-2018

• Level 3 (1%) • Level 1 (50%)

•

• Value stream PowerChanges • Governance Structure • CI priorities

2008 Legend:

• Value stream PowerChanges • Pilots • Governance Scorecard • CI priorities

2009

1st

Level 3 Apprentice

• Standard Work • Co-location • More Pilots

• Project execution • CI leadership (Coaching,, facilitation)

• Strategy & VS Scorecards • Ideation • Value stream Training • E-learning • Apprentice Program

• Strat-on-apage • Scorecards • Ideation • Continued training • CI workshops • Build roadmap

2010

Corporate CoE & Governance

2011-2012 CI value stream and PM

• Project execution (80%) • CI leadership (20%) (Coaching, facilitation, standard work)

New CI practitioners

Time

THI’s Lean Future: 2013-2014 • Building Capability & Seeding CI • Communication of Continuous Improvement

opportunities and results.

• Strategy Cascade & Execution Support • Accountability to Lead Lean

Tim Q

Please run TimQ/ countdown