Melanie Beaumont, Senior Advisor, Lean Advisors Inc, will be presenting at the International Performance Management Symposium on Thursday November 6, 2014 in Montreal, Canada.

Creating a culture for Lean Innovation – benchmarking and quantifying cultural change

A successful Lean Culture for Innovation requires developing a mutually accountable, interdependent, and collaborative work environment across functional and departmental boundaries. Much of this work focuses on eliminating wasteful ‘silo’ behaviours, conflicting priorities, and interdepartmental friction. It is necessary to properly benchmark the organization’s cultural current state and set measurable goals for where it should be. This is often problematic when dealing with individual and group behaviours which are frequently seen as ‘soft skills’ that can’t be adequately quantified for tracking and reporting to ensure success.

This session outlines useful tools and techniques for benchmarking the organization’s cultural current state as well as setting tangible goals and measuring progress towards creating an innovative environment for sustainable continuous improvement.

With a discussion-based, interactive approach, the speaker will also outline key steps to mistake-proof your progress including:

• Commonly made assumptions that can lead to poor quality measures
• Critical thinking necessary in properly using the ubiquitous ‘engagement score’ benchmarks
• Dealing with the complexities of measuring ‘intangibles’ without oversimplifying to a point of no return

Participants are encouraged to bring their questions and concerns about this challenging yet rewarding process.

About Melanie:                                                                                                             Melanie Beaumont is a consultant, trainer and management coach for leadership, change management and continuous improvement programs. She works at both the senior management and team level in public and private sector organizations. Previously she has been a successful executive in telecommunications and education.

 Melanie has developed and delivered numerous training and coaching programs including: ‘Leading Change Management’, ‘Coaching for Innovation’, ’Success Strategies for Continuous Improvement Leaders and Their Teams’, and ‘Building Sustainable Accountability’. She also teaches ‘Change Management’, ‘Problem Solving in Groups’, and ‘Conflict Resolution” at Mohawk College. She is a current guest speaker and conference co-chair for the Federated Press conferences on Lean Innovation in the Public Sector.

 Melanie’s client list covers Canada and USA and includes key government agencies, regional health care organizations plus manufacturers in the plastics, technology, food processing, and building materials fabrication sectors.

 A graduate of the University of Waterloo, Melanie has completed numerous post-degree studies including Leadership, Facilitation, Change Management, Conflict Resolution, and Behavioural Analysis Systems. She has a Lean Business Processes Certificate, University of Michigan.

Detailed program and speaker bios

CPA member registration

Non CPA member registration

Following are some typical questions we often receive about LEAN:

1. What is LEAN? LEAN is not a tool. LEAN is a unique way of thinking about how to assess and improve processes with a primary purpose of increasing value to clients.  When implemented properly, LEAN thinking will work for any process or organization that is looking to ‘do more with what they have’, in addition to adding value by improving quality, service and speed of delivery.
2. How is LEAN a solution? LEAN is an all-encompassing, strategic and tactical solution that engages staff to create an environment of client-focused energy to continuously provide value.  It breaks down the barriers between departments and develops a cohesive organization that moves in a common direction, constantly providing more value without increasing client costs.  LEAN enables public sector agencies to work more effectively and efficiently as a team by eliminating waste in their processes.
3. What impact will LEAN have if done properly? Numerous public sector organisations are using LEAN methods to dramatically improve the quality, service, and speed of their processes. The results have been impressive.

Here are some typical results that have been attained by various government groups:

• 25 – 100% increase in capacity without adding resources or working harder;
• 25 – 50% improvement in quality and customer satisfaction;
• 25 – 100% improvement in financial performance;
• Increased employee engagement and reduced firefighting and stress – staff are focused on devoting more time and resources to their core business and competencies.

The LEAN culture works to change the sorts of attitudes that create wasteful, ‘silo’ behaviours and interdepartmental friction. As a result, workloads become more balanced, fluctuations in pressures are reduced, and employees become more engaged as they participate in the improvements. Our government is continually being asked to do more with less.  Intersol combines its knowledge and expertise in Change Management with LEAN to provide a powerful solution to the challenge.

The workshop will begin with an introduction to Lean and the common elements of Lean transformation programs. This will include a frank and objective discussion/presentation on what to look for when trying to decide whether to adopt Lean or even consider getting that knowledge. Lean practitioners from Industry Canada’s Intellectual Property Office will then present and discuss their journey using Lean. They will demonstrate their successes and challenges of the past and the plans and roadmap ahead for the future.

Register HERE

Date:          April 16, 2014

Location: RCAF Officer’s Mess
158 Gloucester Avenue
Ottawa, ON

Time:       8:00am – 8:30am: Registration and Breakfast
8:30am – 10:30am: Presentation
10:30am – 11:00am: Knowledge Sharing

Price:      $100.00 + HST

Speakers: Jean-Rene Drapeau, Director, Business Improvement Services – Canadian Intellectual Property Office, Industry Canada (CIPO)

Bob Nolan, Manager, Lean Management Centre – Canadian Intellectual Property Office, Industry Canada

Larry Cote, President, Lean Advisors Inc.

By Larry Cote, President Lean Advisors Inc

In the past few years there have been rumblings from the North American manufacturing community about the desire to return some of their manufacturing to North America.

There have been many changes in the economics and the markets since the early 90s both here and in Asia (China specifically).  Some of those changes are that China’s economic environment has evolved and grown.  As it happens in every economy, growth and competition puts pressures on the cost of doing business, the infrastructure of transportation/logistics of shipping higher volumes and more products becomes stressed.

In the meantime while this evolution has been happening in China, North American productivity has improved, especially in the US through technology and advancements in process thinking.  All these factors (and many more) have caused CEOs of manufacturing companies to reassess the decisions that they made a decade or two ago to move production overseas.  They are realizing that it may be more profitable now to do some of their manufacturing here on this continent.

This opportunity should not be missed by Canada or the US.

Management teams must first recognize that they can be competitive in quality, cost and speed of supply.  Once this realization is made then they quickly must re-examine the importance of dramatically and quickly transforming their current methods and thinking – both culturally (value thinking) and processing.  We must not kid ourselves, this opportunity to take advantage of ‘repatriation’ or ‘re-shoring’ will not last long.   CEOs are constantly searching for the next place to invest, where they can drive profits and a better ROI.

The one solution that is being touted for attracting manufacturing back to North American soil is to adopt the latest technology as well as investing in innovation.  This is a simple solution that on the surface is an obvious statement to make.  The reality though, is that over the past decade, our margins have been squeezed so tight that survival has been the primary focus.  In this scenario, very little money can be freed up to buy new technology let alone spend time on research and innovation.  So, what do we do??

Our belief is that expensive technology should not be the first step in becoming attractive to foreign business.  Technology should be the second step in turning around your company.  “Leaning out” your existing processes is the first step and will give you the knowledge and understanding of what technology you really require and should invest in.

Initially, North American organizations should be focused on ensuring their current processes are ‘waste’ free.  Without this customer focus of ‘value’ as the major driver of the corporate strategy, we will miss the opportunity to attract the manufacturing industry we lost to foreign countries over the past few decades.  This “leaning out” will also give organizations the profits they need to move to the next phase, which is purchasing new technology.

I know this sounds like the same old preaching Lean has been teaching since the mid 90s, but ‘off-shoring’ of manufacturing began well before Lean could have an impact.  Now we’ve had the past 15 years to become experts – let’s call the last 15 years ‘practice time’ – and we are ready to actually demonstrate to the world that North America is the place to invest if you want the best quality, service and cost.

Manufacturing is the backbone of our economy.  Let’s not miss this small window of opportunity to bring back some of the manufacturing we lost and even to develop new opportunities for growth.  We have been given a second chance, let’s not miss out!!

Mike Boucher, VP of Client Services,  discussed the benefits of the management capacity program and how to free up management time by understanding executive priorities, analyzing management activities, and creating Standard Leadership Roles.

We hope you enjoy our recorded webinar and have the opportunity to benefit from the valuable content that was shared.

Click Here to View Recorded Webinar

To learn more about our management capacity program click here.

If you would like to be notified of future webinars, please join our E Newsletter: Talking Lean.

Lean is a journey of continuous improvement and throughout their journey, Lean Advisors has introduced Lean thinking and applications at the day to day operational level through Enterprise Value Stream Mapping as well as at the strategic, business planning level through Hoshin Planning. That enterprise level of commitment is delivering results in terms of improved efficiency, productivity, staff engagement and most importantly with increased client satisfaction.

Here is their story:

In 2008, The Saskatchewan Assessment Management Agency (SAMA) adopted the Lean business process improvement strategy.  SAMA is responsible for the governance of the overall assessment system in Saskatchewan, and the provision of assessment services to our 756 client municipalities.  The Agency provides a financial foundation for municipalities and the education sector that they can use to establish and sustain local programs and services.

Lean is aimed at engaging the talents of the Agency’s people to eliminate waste, and create value for our customers.  With an ever-increasing workload and limited resources, Lean helps to ensure that SAMA’s clients’ and stakeholders’ needs are successfully met.

Thanks to the commitment of staff and Senior Management, SAMA is involving people throughout the Agency to tackle some of the challenges affecting the property assessment system in Saskatchewan.

“One of Lean’s strengths is its focus: the people most familiar with the actual work determine the necessary process improvements and plan the necessary changes,” said SAMA CEO Irwin Blank.  “The Agency has achieved significant progress to date, and Lean process improvement initiatives will continue to be a focus for SAMA in 2013 and beyond.”

Because the Agency looks for input from staff and management in all eight of our regional offices across the province, as well as our central office in Regina, the Agency has opted to train all staff and managers in Lean processes.  Staff all receive Introduction to Lean training, and many staff have received further training in Lean processes and change management.  The Agency currently has 14 certified Green Belts, and 5 certified Black Belts.  There are an additional four certified Green Belts who are currently Black Belt candidates, as well as another 14 Green Belt candidates.  Six of SAMA’s Executives have also completed Green Belt training.

To help guide and steer the Agency’s Lean journey, SAMA uses value stream mapping to improve the Lean process.  One of these improvements was to develop a Lean Manual.  The manual outlines details on creating and managing value streams, organizing and executing Rapid Improvement Events and the roles and responsibilities of staff, value stream leaders, facilitators and others.  All staff can access the manual on SAMA’s intranet system.

SAMA currently has several value stream maps in progress representing the different areas of focus within the Agency. For the operations area (Assessment Services) SAMA has value streams for Data Verification, Revaluation, Support of Value and Industrial Assessments.  For the Agency’s support divisions SAMA has value streams for Revaluation Governance, Finance, Quality Assurance, Human Resources and Agency Planning.

SAMA’s original Lean goals were:

• A 25% increase in efficiency and productivity between 2009 and 2013;

• Highly engaged staff, that take ownership of the business processes; and

• An Agency in a much better position to meet the increasing demands from clients.

Under the Lean initiative the Agency has:

• Advanced the Agency’s annual property maintenance program by 3-4 months and in 2012 completed the work for 62% of our client municipalities by December 31^st.  In comparison, only 14% of client municipalities received their annual property maintenance by December 31^st in 2009.  Property maintenance occurs when municipalities request SAMA to do on-site inspections of specific individual properties, usually where significant developments or changes have been made that have altered the physical data on  a property.

• Increased property reinspection productivity 57% over four years from 761 properties per appraiser Full Time Equivalent (FTE) in 2008 to 1,198 properties per appraiser FTE in 2012.  Periodically, municipalities must have all their properties reinspected on-site to verify that physical data and valuations are accurate.

• Made changes to sales verification, market analysis and support of value processes and reduced total appraiser time to complete the 2009-2012 revaluation cycle by 28.1 FTEs or 22% – an average of 7.0 FTEs for each year of the program.  Sales verification and market analysis are two key components of the Agency’s revaluation work that happens on a four year cycle. SAMA is also required to participate in property appeals and provide full disclosure of how property values are determined. This responsibility for openness and full disclosure is part of what SAMA calls “support of value.”

SAMA’s 2014 to 2017 Lean goals are:

• Increase the number of properties that an appraiser can review by 80% from 1,029 to 1,850 properties annually using Lean business process and technology improvements.
• Double the number of properties that an appraiser can reinspect from 1,050 to 2,100 properties annually using Lean business process and technology improvements.
• Utilize Lean value-stream mapping events and other tools to increase the efficiency and effectiveness of work processes.
• Improve the efficiency and productivity of annual maintenance processes resulting in the reallocation of 14 FTEs to the property reinspection program by 2018.
• Based on continued significant growth expected in Saskatchewan’s energy and minerals sectors, the agency will progressively double the capacity of our industrial program by 2017.  Lean process improvements, software upgrades, cost model simplification and remote data collection tablets will improve the efficiency of the industrial property assessment program by 25%.

• Efficiencies will be attained in delivery of the revaluation and annual maintenance programs that will allow the reassignment of critical appraiser resources to the reinspection program – increasing the agency’s average capacity for reinspections from 8 FTEs in 2013 to 27 FTEs annually by 2018.

The agency will continue to build on the Lean improvements attained over the past five years. The plan takes a long term and careful approach to innovative new business processes, and it invests in technology to ensure the sustainability of the property assessment base and municipal and education property tax revenues.

The focus for 2014-17 will be on sustaining current levels of service for our governance responsibilities, continuing to improve the delivery of assessment valuation services to our clients, and building the capacity to enable the Agency to reinspect all properties at least once every 12 years.

SAMA’s Lean journey has been one of trial and error and learning from our missteps.  The Agency’s Lean transformation has required this learning process, which will ultimately help us move towards becoming a truly Lean organization. With a strong commitment and growing knowledge of Lean, SAMA is constantly looking for ways that Lean can influence and improve our everyday business, and in turn, help us provide our customers with the best service possible.

A very commonly-implemented intervention when attempting to “mistake-proof” a process involving humans is the double-check.

Double-checks are, by their nature, waste.  Often, double-checks are put in place as temporary stop-gap measures while more effective, value-adding countermeasures are devised and implemented.  While a perfectly-implemented double-check does indeed improve error rate, it does not come close to serving as effectively as a prevention-based mistake proof device (poka yoke) and should therefore be considered a weak intervention.

The prevailing theory behind a double-check is that, while a person will occasionally err when undertaking a task, with probability A, the process will be made more robust by inserting a double-check of the work of the original person.  The presumption is that the person doing the double-check will also occasionally err, with probability B, but that the combined probability of error emanating from the double-checked task will be geometrically lower (improved).  For example if the error rates of the original person performing the task is 10% (A=0.10) and the error rate of the double-checker is 15% (B = 0.15), the combined error rate of the double-checked process is now (0.10)(0.15)=0.015, nearly an order of magnitude improvement.

Actual results of such interventions in practice rarely match the theoretical improvement.  By understanding the factors leading to gaps in performance of double-checks, we can set out to implement double-checks in such a manner that efficacy is enhanced.

Factors leading to sub-optimal performance of a double-check

Often, a double-check step is inserted into a process “on the fly” without thoughtful planning to eliminate possible failure modes of the check itself.  Following are some common situations to avoid when considering a double-check for your process.

• Lack of clear definition (standard work) of how the double-check is to be performed
• Ineffective training of staff who are to perform the double-check
• Failure to design an independent double-check; one that only involves the person originating the work has a high likelihood of error due to confirmation bias, which can blind the person performing a check on his/her own work .
• When a second person is assigned to perform the double-check, confirmation bias can blind this person.  This can be caused by specific information being passed from the first to the second person prior to validation, the second person subconsciously deferring to the authority of the first person, or simply trusting that the first person could not have erred.  Any of this leads to the second person missing errors.
• Creeping complacency, due to a person knowing that someone else is in place to catch any mistakes he or she will make
• Interruptions during the double-check
• Rushing the double-check

Related, and equally common, is the issue of nobody being tasked with examining errors caught during the double-check and using that insight to drive focused root cause analysis and interventions upstream to eliminate as many of these failure modes as possible.

What can you do?

1. Assess and analyze any double-checks you already have in place.  Look for evidence of any of the above issues.  Ask to see the data showing what errors are being found.  Investigate what actions have been initiated as a result.
2. Before assuming that a double-check is the strongest mistake-proof device (poka yoke) that can be designed and implemented for a particular task within a given value stream, challenge yourself and your team to seek out stronger interventions.  Estimate the relative strength between multiple intervention ideas.
3. Where a double-check is the only course of action, either for the short term or for a longer time period, infuse these design principles:

• independence of the check, separated by time and space if possible to mitigate risk of “contaminating” the checker with information about the person originating the work, inputs, outputs, calculations, and judgement applied
• to simplify and make visual the double-check, create a checklist showing the specific steps to be undertaken
• create a physical environment for the double-check that will be free from distraction and which will make the task simplest
• carefully document the standard work, train those involved, and assess skill/capability of those who will be performing the check
• avoid having the same two people serving as checkee-checker on a sustained basis
• periodically assess efficacy of the check, in a blinded fashion and provide feedback
• instrument your check and specify roles to include those who will prepare, analyze, and act upon the errors caught by the check

4.   Seek to continually improve, through successive cycles of mistake proofing, until you can evolve beyond the use of double-checking

Principles and Techniques for Sustained Improvement

Thursday June 13th at 1PM Eastern.

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Mistake-Proofing (or Poka Yoke) prevents mistakes from being made or makes the mistake obvious at a glance, so that corrective action can be taken before a patient is harmed. It’s a common sense approach tocreate low-cost, effective design changes that reduce errors.

Brian Nass has worked in quality and continuous improvement for over 20 years.  He held several leadership positions at Mayo Clinic in Rochester including Executive Director of Continuous Improvement and COO of Lab Services. Most recently as VP, Performance Improvement at Mission Health System in North Carolina.

Learn techniques for eliminating defects, improving quality and streamlining work.

Brian will discuss mistake-proofing within the specific context of healthcare; however, this webinar is not specific to only the healthcare industry. Many examples and references will come from healthcare, however this webinar will benefit managers from all industries who want to better understand the widespread application of mistake-proofing. Join Us!

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Mobilizing Our Ingenuity Through Good Management.

In this video, Mike Rother shares valuable insights into the importance of ‘structured’ change methodology, called Kata.

At Lean Advisors, we believe Kata is the next major critical concept organizations need to grasp in order to create a sustainable transformation. Mike has uncovered, through his research with U of Michigan another important piece of the puzzle necessary for success and taking your team to the next level of competitiveness

Message from Larry Cote, President, Lean Advisors Inc.

I recently came across this video of Mike Rother who spoke at the Lean Summit in 2012. I had the privilege to work with Mike back when Lean was just gaining interest in the mid 90s.

At that time, much of Mike’s research and efforts were focused on Toyota and the primary transformational tool known as Value Stream Mapping (VSM).

We wanted to share this with our online community.

Lean Summit 2012 – Mike Rother – Toyota Kata

In this webinar, Larry Cote, President, Lean Advisors Inc. shares an objective assessment of Lean 15 years after the concept was coined ‘Lean”.  He highlights his own experiences as well as examines and identifies how different organizations from all industries have succeeded with Lean implementations.

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