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Copyright © 2009 Process Management International Ltd. All rights reserved. The statements made herein do not constitute an offer and are expressed in good faith. Leading enduring performance by using Natural Systems Principles, World Quality Day Sellafield November 2009 Jane Seddon, ChairmanJan Gillett, Deputy Chairman 1
Copyright © 2009 Process Management International Ltd Purpose of our presentation To share with you our perspective on the perennial questions; How do we create enduring value to our enterprise? How do we maintain momentum for our business improvement efforts? 2
Copyright © 2009 Process Management International Ltd Improvement Practitioners can be reassured. Some things can be relied on! Quality tools......a pedigree extending to Shewhart in 1929, Ishikawa from the 1950s Systematic methodologies and structures....examples range from the Japanese QC story in the 1960s to DMAIC etc Full time teams on difficult problems.....As initially proposed by Juran in the 1960s 3
Copyright © 2009 Process Management International Ltd These ingredients can be relied on to work, But our experience shows them to be insufficient in themselves for long term enduring success. What is needed is transformation 4
Copyright © 2009 Process Management International Ltd 5 Transformation is not just a new word for change It works on a deep level of peoples beliefs, philosophy, principles and aspirations about what is possible. Therefore… transformation is personal as well as organisational. The outcome of transformation is an effective, evolving and enduring organisation; creating prosperity for the long term as well as the results for today. Transformation. Whats in a name?
Copyright © 2009 Process Management International Ltd 6 Transformation is not a project; it has continual learning as its life blood
Copyright © 2009 Process Management International Ltd Basic elements in anything we try to do, including transformation 7
Copyright © 2009 Process Management International Ltd Some of our clients Since 1984, Hundreds of companies, Thousands of people In every continent Commercial, government, not for profit Every sector; Service, Manufacturing, Transport Our approach is based upon Dr Demings System of Profound Knowledge, especially on Plan Do Study Act 8
Copyright © 2009 Process Management International Ltd A new and unique perspective on the challenge Natural Systems Principles A systemic leadership approach for sustainable improvement 9
Copyright © 2009 Process Management International Ltd 10 Some natural systems
Copyright © 2009 Process Management International Ltd Natural system principles 1.Interdependence: Everything in nature is connected to everything else. 2.Self Organisation: Natural entities have simple rules for development inherent inside themselves 3.Differentiation: Nature renews itself without losing its core identity and still generates variety. 11
Copyright © 2009 Process Management International Ltd 12 Some man-made systems
Copyright © 2009 Process Management International Ltd Effective organisations show natural system characteristics; 1.Interdependence Clear purpose and process for the long-term Conscious of their wider system 2.Self-organisation Predictable product and service Listen to employees Generate improvements from within 3.Differentiation Address variation systematically Respect diversity Variety and flexibility to suit the customer 13
Copyright © 2009 Process Management International Ltd Natural Systems; a new insight We use these principles to understand the grain of the organisation, and then help clients to lead its transformation. Our book, Working with the Grain explores these and other themes Available through and at Amazon 14
Copyright © 2009 Process Management International Ltd Working with the Natural System Principles; 1. Interdependencies Create consciousness of the whole system by: Helping clients understand their wider system including suppliers, and customers Clarifying and communicating the purpose of the organisation and of the change programme Learning to approach all work in terms of process. 15 Aerospace supply chain: The customer and supplier agreed they were in the same system, even though separated by the Atlantic The objective was to create a stable operation to the benefit of both We started by witnessing the actual work, including packaging and logistics
Copyright © 2009 Process Management International Ltd Working with the Natural System Principles; 2. Self organisation 16 Build increased energy and competence: Learning how to make step change improvements in the flow of products and services Uncovering and enabling the natural desire for all employees to help improve the work Developing understanding of how to monitor and improve everyday work Service centre in Manila Global improvement projects, integrating with visual displays for local supervisors The people in the process wanted to improve it – just needed the method
Copyright © 2009 Process Management International Ltd Working with the Natural System Principles; 3. Differentiation Manage continual change, differentiation and variety, Appreciating, respecting and capitalising on the diversity of people, the environment, everything! Recognising and addressing undesirable variation in a systematic way Learning to economically create deliberate variety and flexibility in the service of the customer. 17 Service centre in Mumbai Self evident need to get alongside whoever one is working with Getting processes on target with minimum variation Actively generating variety is a major necessary challenge in a mindset of standardisation
Copyright © 2009 Process Management International Ltd Typical combinations of tangible and intangible benefits we have seen Client A, Global post merger simplification $1.3 Billion in savings estimated, 4,500 staff positions saved in 2008 this approach plays to peoples intrinsic motivation to improve their business Improved cross function and cross border collaboration and cooperation Client B, Global supply chain, Improving schedule adherence from 28% to over 95%, reducing lead time and simplifying packaging and handling your approach enabled trust, transparency and problem solving …. We have a desire to work together with you, more than anyone else The intangible benefits for our clients persist long after the numbers have faded.
Copyright © 2009 Process Management International Ltd 19 Ambitions go far beyond project-based improvement into strategic, whole system and everyday operations. It is founded on learning by testingthrough PDSA. The approach encompasses everyones thinking, behaviour, culture and values Its attention to context, enables the organisation to remain of enduring value to the wider system and society Success requires a different orientation of leadership
Copyright © 2009 Process Management International Ltd 20 Transformation is not a project; continual learning is its life blood
Copyright © 2009 Process Management International Ltd 21 Works with the Natural Systems Principles; Has a vision for transformation not just improvement Optimises the whole system to provide value for its customers, stakeholders and the wider environment; Appreciates that people and their intrinsic motivation are key to success; Sponsors and models strategic step change and improvement; Is a good project sponsor and also...ensures that everyday processes work effectively and efficiently. A Systemic Leader
Copyright © 2009 Process Management International Ltd Using PDSA to learn about the organisation 22 Launching the journey Understand learning and benefits 6. Lead an enduring transformation Develop leadership principles 3. Understand the current situation 2. Settle on initial priorities 1. Understand why we need to do something 4. Build an improvement system 5. Deliver improvements Address problem(s) Study Do Act Plan and study? Study Act
Copyright © 2009 Process Management International Ltd 23 Using the principles of Natural Systems increases the chance of success in a Systemic improvement (transformation) efforts These principles encompass systemic leadership Continual application of PDSA is the practical vehicle for making enduring progress Summary
Copyright © 2009 Process Management International Ltd 24 This presentation has been designed and developed by Process Management International Ltd. The statements made herein do not constitute an offer and are expressed in good faith. Copyright © 2009 Process Management International Ltd. All rights reserved. No part of this presentation may be copied or reproduced in any form or by any means without written permission from: Process Management International Ltd Villiers Court Meriden Business Park Birmingham Road Meriden CV5 9RN United Kingdom Web site:
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