1 1 june 3, 2013 the sea roadmap process owner forum monday, june 3, 2013

11June 3, 2013

The SEA Roadmap

Process Owner ForumMonday, June 3, 2013

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The SEA Roadmapand

1.1.4 Continuous Improvement Management Process•How does your organization select improvement priorities and review progress on improvement initiatives? •How are process owners, master trainers, and strategic champions included in this process? •How are improvement projects and teams selected and given direction?•How is a standard problem-solving model deployed throughout the organization? •How are recognition and sharing of key learning accomplished? •How are process improvement ideas solicited, reviewed, approved, and implemented? •How is a high level of workforce participation ensured?•How are improvement suggestions recognized? •How are suggestions made visible in work areas?

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Today’s focus

June 3, 2013

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Fast, High Quality Decisions and Results

Presented by: George M. Pomonik

June 3, 2013Copyright © 2013 George M. Pomonik

Pomonik Consulting, Inc."Chaos Removal Services"sm

Pomonik Consulting, Inc. Telephone: 818-591-07004144 Meadow Lark Drive E-mail: [email protected], CA 91302-1845 Website: www.pomonik.com

June 3, 2013 Pomonik Consulting, Inc 4

Agenda1. Introduction• Why fast? Why high quality? Impact.

2. Overall, what are we trying to achieve?• Start with Vision and Goals—a beacon for tough decisions

3. Focusing on improvement• Finding the time to improve• "Quadrant II" in Stephen R. Covey's "The Time Management Matrix"• Get there with a Roadmap

4. The "Money Machine Model"• Balancing the needs of the stakeholders

5. The "Creative Threshold Model"• Does the person (or team) creating the results have sufficient immersion time to do the job quickly and correctly?• Are interruptions and multi-tasking causing serious delays in critical work?

6. Closure




Who is George Pomonik?

Pomonik Consulting, Inc.

"Chaos Removal Services"sm

www.pomonik.com

George M. Pomonik Overview

• Management consultant since 1983, helping large and small organizations improve:

- Teamwork & Communications

- Speed

- Quality

- Costs

- Customer satisfaction

• Prior responsibilities: executive, management, and engineering roles since 1961




INTRODUCTION Why fast? Organizations with urgent missions are working with stringent time constraints. The success or failure of a mission is strongly related to its timely completion. Note that “fast” does not consist of snap decisions and precipitous actions that have to be fixed repeatedly; it’s not fast if it has to be done over again.

Why high quality? Fast decisions are not enough. Decisions, at all levels of operation, also have to be sound. Weak strategic decisions will lead to lack of focus and reactive behavior. Poor tactical decisions and substandard execution will fail to achieve key objectives, and also waste time and money. Overall, unsuitable decisions and mediocre performance will lead to failure.

Note the emphasis on both speed AND high quality.



Cum

ulati

ve c

ash

flow

0

+

-

Time

If System is delayed going into service

If System has operating problems

As Planned

IMPACT OF DELAYS AND MISTAKESCash Flow (or “Benefits”) as a function of time

This is an example of how delays and poor quality can impact the return on investment for a product, process, or system.

Poor quality

Poor speed


Vision and Goals First

"Perfection of means and confusion of goals seem—in my opinion—to characterize our age." – Albert Einstein

"Obstacles are those frightful things you see when you take your eyes off your goal." – Henry Ford

The Vision Flow Down Model After we clarify our company's shared vision, core values, and goals, they serve as a beacon and guide for successful actions at all levels. These principles also act as neutral tiebreakers for thorny situations. See the next slide for an overview of the flow down of vision and goals to the tactical level.



VISION, OR MISSION STATEMENT, AND CORE VALUESVision: "...the precise statement/picture of where the company and its people are heading and why they should be proud of it." [Tom Peters, "A Passion for Excellence."]Core Values: "...the essential and enduring tenets of an organization. A small set of timeless guiding principles..." [James Collins and Jerry Porras, "Built to Last, Successful Habits of Visionary Companies."]

GOALSSpecific achievement targets consistent with the Vision and Core Values

KEY SUCCESS FACTORSThose factors and processes that are necessary in order to assure that the

Goals will be realized (also the "inverse" of key obstacles).

STRATEGIES - The SEA RoadmapRoutes to achieve Goals.

Originally, "...the art of setting up forces before the battle began."[Robert B. Miller, "Strategic Selling"]

TACTICS - The SEA RoadmapSpecific, measurable action steps.

Originally, "...the art of moving forces in battle."[Robert B. Miller, "Strategic Selling"]

Overall, what are we trying to achieve?Start with Vision and Goals—a beacon for tough decisions

The Vision Flow Down Model




Goals, a roadmap, and discipline leads to time in Covey's "Quadrant II"

Quadrant IImportant, Urgent

Activities: Crises Pressing problems Deadline driven

projects

Quadrant IIImportant, Not Urgent

Activities: Prevention “Production capacity”

activities Relationship building Recognizing new

opportunities Planning

Quadrant IIINot Important, Urgent

Activities: Interruptions, some calls Some mail, some reports Some meetings Proximate, pressing

matters Popular activities

Quadrant IVNot Important, Not

Urgent

Activities: Trivia, busy work Some mail Some phone calls Time wasters Pleasant activities

The Time Management Matrix

From “The 7 Habits of Highly Effective People,”

by Stephen R. Covey

Results: Vision, perspective Balance Discipline Control Few crises

Quadrant II Activities: “Our effectivity takes quantum leaps when we do them” - Covey

We gain significant benefits from "Quadrant II" time



The SEA Roadmap



Create fast, high quality decisions and resultsBalance the needs of the Stakeholders

The “Money Machine Model”

The “Money Machine Model” is a way of looking at the overall process of an enterprise, and how it succeeds by balancing the needs of customers, owners, and producers, within its specific environment.

Decision makers, as well as process improvement teams, have found this model to be beneficial because it helps:

• Prioritize improvement ideas and decisions on the basis of their overall impact

• Provide a meaningful context for lower-level process improvements and decisions

• Avoid local optimization at the expense of the overall system• Illustrate everyone’s critical role in the overall success of the

company

Copyright © George M. Pomonik, 1999



Satisfied Producers

Results

Owners’ Money

Satisfied Owners

Company’s Money

Company Leaders (Money

Distribution)

Company’s Vision

Policies Strategies Plans Priorities Processes Influences Decisions

Owners’ Profits

“Production”

Mgmt. & integration Marketing & sales R&D & innovation Creation of the

deliverable product Delivery/distribution Customer support Finance & admin. Information systems Internal support Expenses/overhead

Satisfied

Customers

Revenue Sources

Customers’ Money

Revenues

Overview of a “Money Machine Model”

Products & Services

Rewards (salaries, benefits, bonuses) and Recognition

The External Environment (Competition, Economics, Technology, Society, Government)

Allied Suppliers

Requirements and funding

Products and services





Example of a “Money Machine Model” The previous slide shows an example of a “Money Machine Model” for a commercial company. The machine “runs” with high effectivity when all the stakeholders perceive that their needs are being satisfied. However, the machine can sputter or stop if any of the following occur:

• Insufficient money flows in from customers. This is the only source of “fresh” money

• The owners decide to restrict or stop the flow• The internal distribution of funds is wasteful, or doesn’t cover

critical needs• The producers can’t or won’t fulfill their roles effectively• The external environment changes and negatively affects the

system• The balance or speed of flow to critical components is insufficient

Create fast, high quality decisions and resultsBalance the needs of the Stakeholders



We think we have:

Output 2, something newInput 1 “Desk”

We often actually have:

Output 2Input 1 “Desk”

3 6

45

7

89

10

“Assess the Desk”

Does the creative person (or team) have sufficient immersion time to do the job quickly and correctly?




“Assess the Desk” The Creative Threshold Model

Does the creative person (or team) have sufficient immersion time to do the job quickly and correctly?

Time

Lev

el o

f Im

mer

sio

n

Creative Threshold

Creative work needed to get the job done

correctly

Start Stop Hours?

With a continuous block of immersion time:

Time

Lev

el o

f Im

mer

sio

n

Creative Threshold

Weeks? Or never?

Without a continuous block (interruptions, insufficient information, etc.):




Recap1. IntroductionWhy fast? Why high quality

2. Overall, what are we trying to achieve?• Start with Vision and Goals—a beacon for tough decisions

3. Focusing on improvement• Finding the time to improve• "Quadrant II" in Stephen R. Covey's "The Time Management Matrix"• Get there with a Roadmap

4. The "Money Machine Model"• Balancing the needs of the stakeholders

5. The "Creative Threshold Model"• Is there sufficient immersion time to do the job quickly and correctly?• Are interruptions and multi-tasking causing serious delays in critical work?


Secret Weapons of Effective Communicators

Session closureSome feedback—Benefits and Concerns

First, please comment on some Benefits—"what I like about …"

• This forum• Today's material• Other people's ideas and comments, etc.

Then comment on some Concerns, as Opportunities for Improvement


Secret Weapons of Effective Communicators

Thank you!

If you have any additional questions or comments, feel free to contact me.

George M. PomonikPomonik Consulting, Inc."Chaos Removal Services"sm

4144 Meadow Lark DriveCalabasas, CA 91302Phone: 818-591-0700Cellular: 818-590-4558E-mail: [email protected]: www.pomonik.comBlog: www.pomonik.com/pom_wp_blog

1 1 june 3, 2013 the sea roadmap process owner forum monday, june 3, 2013

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