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Case Study -- Specialty Food Company

Situation: A rapidly growing, $300M specialty food company was outgrowing its sourcing and quality control processes. Due to the increased number of suppliers and the proliferation of internal staff, product development lead times skyrocketed, and the process of qualifying a single ingredient had lengthened to 260 days. Intervention: We created a metrics-based process map for the entire qualification process, identifying bottlenecks, common sources of errors, missing triggers, and other issues that created delays and rework. We then created sub-teams to address the most critical factors. The teams developed countermeasures, gained consensus for the changes, and trained staff on the new procedures.

Resolution: Lead time for ingredient qualification was reduced by 50% -- from 260 to 130 days.

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Children’s Apparel Manufacturer

Situation: The CEO and executive team of a $75 million apparel company were struggling to bring focus to their strategic initiatives. They were fragmenting their energies among so many important—but competing—projects that they weren’t moving them forward as rapidly as they wanted. They needed a way to assess the relative value of each one so they could decide where to focus their resources. Intervention: We scored each initiative on four scales: strategic fit with the company; impact on the company’s growth for the 18 months; the difficulty of implementation; and its relative urgency. Each person on the executive team scored the projects individually, so that we could identify any significant misunderstandings (e.g., the CEO thought the new product development system would be difficult to implement, but the VP of operations considered it a relatively simple change). We then compared scores for each project and reconciled the differences.

Resolution: The executive team gained a clear picture of all the initiatives they were working on, and by focusing their energies on the projects that scored highest across all criteria, they ensured that they were investing in the right opportunities. Finally, restricting their efforts to a small list of projects freed up about 20% of the CEO’s time and enabled the company to bring several projects to completion within three months.

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Small, Rapidly Growing Non-Profit Organization

Situation: A NYC-based non-profit organization was growing rapidly—from 5 employees to 56 in less than one year. However, the extra staff didn’t alleviate the burden on the executive team, and in fact, decisions took longer than ever. Intervention: We realized that the new staff were unable to shoulder the operational and managerial load of daily work because there was a fundamental mismatch between their responsibility and their authority: although they were given responsibility for certain areas of operation, they didn’t have the power to make decisions. As a result, all decisions funneled up to the executive team, creating massive bottlenecks. We identified the common decisions that needed to be made in each role and defined financial parameters within which each person could make decisions without approval.

Resolution: The executive team was freed from weighing in on all decisions, staff morale increased significantly (according to internal surveys), and major initiatives in the following year were all launched on time.

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Case Study -- Biomedical Device Manufacturer

Situation: Senior members of the operations group at a major biomedical device manufacturer didn’t have time to focus on their critical work, largely because they were spending too much time in non-essential meetings.

Intervention: We conducted an “A3” analysis to fully grasp the current conditions, quantify the costs to the company, identify root causes, and develop countermeasures. The analysis revealed that they were spending approximately nine hours per person per week in meetings with no real purpose, and more damagingly, that meetings were set according to a schedule, rather than in response to real customer need. We set up a file on the shared server for information updates, initiated a system of ad hoc 1:1 meetings to address most issues, and reserved group meetings for more complex problems.

Resolution: Meeting commitments were reduced by one-third – 56.5 hours per month – and senior staff had additional time to drive projects to completion.

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Case Study -- Sporting Goods Manufacturer

Situation: The warranty department at a mid-sized sporting goods company was overwhelmed with product complaints. Sales had tripled over the previous four years, and the company instituted a 100% guarantee on all products, increasing the burden on the small warranty department. Turnaround time on consumer calls and emails averaged from 3-4 weeks. Consumers were frustrated, and the company was getting torched on Facebook, significantly affecting brand loyalty. Intervention: We drew a value stream map to clarify the situation and identify the root cause of the problem. In this case, the incomplete information that consumers were providing from the outset forced the warranty service reps into several rounds of email exchanges and phone calls in order to get the necessary information—essentially tripling their work. We redesigned the warranty pages of the web site and built forms that prompted consumers to provide the right information the first time. We also channeled international and military consumers into different buckets, so that they could be handled appropriately.

Resolution: Turnaround time for warranty issues was reduced from four weeks to 48 hours. (As a side project, we also reduced on-hand inventory by 80% by switching to a kanban system with frequent replenishments.)

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Case Study - How to Make an Office Lean

Classic Lean Techniques Worked Wonders at a New York City Government Office Originally published Wednesday, September 05, 2007, IndustryWeek

Over two months starting in March, the staff at a bureau within a large NYC municipal agency was taught how to apply lean manufacturing principles to their work. They did not make value stream maps, nor did my company try to change the system in which people worked. Rather, the focus was on improving the personal work habits of each person so that they could be as efficient as possible irrespective of the overall business process.

At the time of our continuous improvement efforts, the staff at the bureau was struggling. Mayor Bloomberg and his no-nonsense Commissioner had raised expectations for responsiveness. At the same time, unwieldy bureaucratic processes and systems slowed people down. Chronic interruptions undermined people's ability to focus on their work. And no one had an effective approach to managing the increasing burden of email. As a result, work piled up and deadlines slipped. People were overwhelmed and felt as though they had no control over their jobs.

The Discipline Of 5S

We began with rigorous application of 5S principles to each person's workspace. Just like manufacturing workers, knowledge workers need to keep their workspaces clean and organized in order to perform efficiently. This means more than just cramming papers in a filing cabinet and shoving the stapler (along with along with broken pencils, dry highlighters, disposable chopsticks and soy sauce packets) in the top drawer. They had been doing that already, and found that they were buried in an avalanche of low-value or zero-value detritus.

Instead we segregated their information into three categories -- working, reference and archive -- and culled the obsolete garbage. This structure enabled them to reduce the time wasted in looking for their work and gave them more time to actually produce value. More importantly, the staff's rigorous assessment of the information they managed enabled them to identify the activities that were just waste.

The result? A 36% reduction in time spent looking for information, and a 95% reduction in the number of emails rotting in inboxes.

Why was the trimming of the email inboxes important? When inboxes are gorged with junk like Las Vegas-era Elvis, the terrible "signal to noise" ratio makes it difficult to identify and respond to what's truly important. Moreover, each email contains information and ideas that are part of the value streams that flow through the staff. When that information gets stuck in someone's inbox -- when the value stream stops flowing -- you're looking at nothing more than another form of excess inventory.

Keeping The Value Stream Flowing

In a manufacturing environment, the assembly line keeps the work-in-process moving at a pre-determined pace. People must handle the work as it comes to them, or the line stops. But the office environment is different. There's no visible production line, and that fosters sloppy work habits.

At this bureau, receiving, processing, storing, distributing, and tracking the information that comprise each person's job is a formidable challenge. (It is the government, after all. Even under Michael Bloomberg.) Unfortunately, most knowledge workers are undisciplined in executing these tasks. They feebly push papers from one side of the desk to the other. They shuffle piles. They read emails, mark them as unread, and take no action. They start working on one thing, lose focus, and move onto something else, resulting in piles of half-completed tasks. The value stream stops flowing. As a result, deadlines slipped and coworkers waited idly for information. Muda flooded the system.

So we refocused people's efforts on keeping the value stream moving. Staff learned to deal with the work that entered their systems -- an email, a phone call, a memo, a project, -- by taking one of four courses of action: doing it, delegating it, designating time to address it, or dumping it. These are the "4Ds." When workers rigorously applied the 4Ds, nothing returned to the inbox; value always moved forward.

The staff's new work habits led to a 40% reduction in the amount of time spent working on backlog (which is a form of excess inventory in a lean system), and a 25% reduction in time spent processing emails.

Smoothing The Flow

As in any modern organization, no one at this bureau works independently. Meetings abound, multi-tasking is rampant, and frequent interruptions make it difficult for anyone to focus on their high value activities. As a result of these interruptions, value didn't flow smoothly: people forgot critical tasks and commitments, and generally felt overwhelmed and out of control. Imagine a worker on an assembly line being pulled away from his station every 11 minutes to join a meeting or answer a question: workers would feel stressed, the line would grind to a halt, and the defect rate would skyrocket.

We countered these problems by implementing individual work habits that smoothed the flow of the value stream. Staff cut down needless interruptions (i.e., interruptions about non-urgent issues) with "meeting corridors" -- times that each employee was available for meetings or conversation. They scheduled and blocked out their own value work so that they could focus on those tasks. They established sustainable "service level agreements" for email responses, rather than supporting the expectation of instant response. And they cut down on the amount of multi-tasking in favor of "single tasking," creating the understanding that doing one task at a time is actually a faster and more efficient way of doing one's job.

These changes resulted in a 35% reduction of time lost to interruptions, and a 35% decrease in overtime -- indicating that people were getting more done in less time.

It's Not Just About The Handoffs

Most lean office initiatives are concerned exclusively with making value stream maps and creating a more efficient business process. But that's only part of the solution to reducing muda. No matter how lean the system, if the people who work within it are inefficient, you'll still have waste. It's like a relay race: you can make the baton handoffs clean, fast, and efficient, but if the runners are slow, they're going to lose.

That's where lean work habits come into play. These habits ensure that people are running fast - that when they're reconciling the budget, or planning a conference or creating a marketing plan for a new product, they're working as efficiently as possible.

Journalist Charles Fishman points out that a typical Toyota assembly line in the United States makes thousands of operational changes in the course of a single year. He comments, "that number is not just large, it's arresting, it's mind-boggling. How much have you changed your work routine in the past decade?"

Remember, lean is not just about the system. It's about the people. And isn't it time that you addressed how they -- and you -- work?

Case Study - Making Time For Business

Originally published in California Lawyer Magazine

Here's How to Find Time for Business Development You're a partner at a large firm. You do excellent work and are in demand, but you aren't building your book of business as quickly as you'd like. Even though bringing in new clients is crucial to your future success, you haven't been able to find time to focus on business development. Your daily schedule is endlessly clogged with time-sensitive client demands, partner requirements, and committee meetings. Cramming in "biz dev" seems impossible, even though it should be a high priority. Of course, when there's too much work to fit into the day, no amount of "time management" will help--no magic can turn five minutes into six. But using a system to organize your work and manage your commitments can ensure that you won't lose sight of what's really important to your career--and it can enable you to dramatically increase the time you devote to developing new business.

If You Don't See It, It's Not Important Attorneys agree that business development is vital. Yet at their offices their biz dev files are invisible, completely buried beneath piles of client matter. New prospects lie dormant among existing client demands. Even when lawyers try to begin biz dev they lose focus, as the relevant information molders beneath mounds of other documents. The solution? Create a filing architecture that separates "working" client and business development files from lower value, reference material. Note the 80/20 rule: Eighty percent of the work is done with 20 percent of the paper. Keep the important 20 percent--the working files--close at hand. Move the rest to a file cabinet or a drawer farther away. Clearing away junk and lower-value documents makes working biz dev files more visible, improves your ability to focus on that activity, and eliminates time lost searching for needed information. (As a bonus, the discipline of personal organization will help you delegate work to others.)

Put Away the Firefighter's Helmet Too many attorneys begin the day reading through their email in-box. No doubt, reputations depend on near-instantaneous client service. But that level of service comes at a cost: Attorneys become reactive rather than proactive. No matter how quickly they respond, they are always fighting fires, always behind the curve. You can focus instead on "living in the calendar." Rather than vainly hoping for a free afternoon for business development, carve out time for it. Structure your schedule each day so you stay on top of ongoing commitments while still allocating appropriate time to forging relationships with prospective clients. Additionally, set Outlook or Lotus Notes to open in the Calendar, rather than the Inbox. This one adjustment will keep you focused on daily and weekly plans. The first thing you'll see each morning is your schedule, not the avalanche of emails that poured in overnight. Of course, you still must respond to those messages, but at least now you'll be more cognizant of your daily priorities. Living in your calendar also helps you delegate work more effectively. As you become better at tracking client commitments, you can hand off work to associates with clear check-in dates and deadlines--and that means more time for business development.

Taking Action The final step is creating a clearly defined plan of action. When it comes to biz dev, most lawyers don't know precisely what they'll do or when they'll do it. That's because "business development" is a squishy concept comprising many different activities. It's hard to make progress when you don't have specific tasks to complete. You can get around this problem by explicitly defining biz dev's core actions--internal networking, external networking, activities that raise your visibility--and then putting them on the calendar. Make lists of prospective clients and create recurring calendar appointments to stay in touch. Schedule time to write and edit articles for journals. Identify conferences to speak at, set specific times to contact the organizers with proposals, and connect with your associates to develop the presentations. The steady accretion of these activities will result in more biz dev activity--and it will result in winning new clients.

Achieving Measurable Results After just a few months of structured activity, you will begin to see results. I have personally seen junior partners increase their average promotional time by almost 25 percent. Although there are no guarantees, creating clarity in your workspace--both physically and mentally--will make you more effective at developing business.

Dan Markovitz is president of TimeBack Management, a consulting firm that helps lawyers make more time for business development.

Case Study - Florida Community Health System

Situation: Nurse supervisors at a six-facility community hospital in Florida were heavily involved in Lean initiatives in clinical areas of the hospital. They had made great strides in reducing clinical waste through the application of 5S principles. However, these efforts stopped at their office doors, and significant inefficiencies crept into their administrative work. These inefficiencies prevented them from spending as much time as they wanted delivering patient care. Intervention: We showed them how to apply lean principles – particularly 5S – to the information they managed. This allowed them to spot problems in existing administrative processes, and helped them to understand that 5S is a way of thinking, not just a way of organizing the supply closet. The program also helped identify opportunities for eliminating other administrative waste.

Resolution: Participants reported that the training:

  • “Provided a clearer understanding of 5S, flow & purpose”
  • “Provided the initial steps to an organized standardized process”
  • “Helped me understand the concept of visual management”
  • “Presented tools to work more efficiently and effectively”

Case Study - SF Area Law Firm

Situation: Four junior partners at a large San Francisco-area law firm did excellent work and were in high demand, but weren’t building their books of business as quickly as they wanted. Each one knew that bringing in new clients was crucial to their future success at the firm, yet none of them had been able to find the time in their days to actually focus on business development. Their daily schedules were sclerotic with non-negotiable client demands, partner requirements, and committee meetings. Cramming in business development activities seemed impossible, even though that work was arguably their highest priority. Intervention: We identified three areas in which a small change would yield large results. First, we created a filing architecture that separated the essential business development files from lower value, reference materials. Making the business development files more visible improved the partners’ ability to focus on their goals (bringing in new clients) and eliminated the time lost in searching for the information they needed. Second, we moved their daily activity focus from their email inboxes to their electronic calendars by actually scheduling their critical tasks. This shift made them more proactive rather than reactive, and ensured that they had time each week for business development. Third, they explicitly defined the core actions that comprise “business development”: internal networking, external networking, and activities to raise their visibility – and then put those on the calendar.

Resolution: After two months of training, the results were in: the four partners increased their average promotional time by 24%, from 25 hours to 31 hours per month.

Case Study - Non-Profit Organization

Situation: A NYC-based non-profit organization was growing rapidly—from 5 employees to 56 in less than one year. However, the extra staff didn’t alleviate the burden on the executive team, and in fact, decisions took longer than ever. Intervention: We realized that the new staff were unable to shoulder the operational and managerial load of daily work because there was a fundamental mismatch between their responsibility and their authority: although they were given responsibility for certain areas of operation, they didn’t have the power to make decisions. As a result, all decisions funneled up to the executive team, creating massive bottlenecks. We identified the common decisions that needed to be made in each role and defined financial parameters within which each person could make decisions without approval.

Resolution: The executive team was freed from weighing in on all decisions, staff morale increased significantly (according to internal surveys), and major initiatives in the following year were all launched on time.

Case Study - Medical Device Manufacturer

Situation: Senior members of the operations group at a major biomedical device manufacturer didn’t have time to focus on their critical work, largely because they were spending too much time in non-essential meetings. Intervention: We conducted an “A3” analysis to fully grasp the current conditions, quantify the costs to the company, identify root causes, and develop countermeasures. The analysis revealed that they were spending approximately nine hours per person per week in meetings with no real purpose, and more damagingly, that meetings were set according to a schedule, rather than in response to real customer demand. We set up a file on the shared server for information updates, initiated a system of ad hoc 1:1 meetings to address most issues, and reserved group meetings for more complex problems.

Resolution: Meeting commitments were reduced by one-third – 56.5 hours per month – and senior staff had additional time to drive projects to completion.

Case Study - NYC Municipal Agency

Situation: The staff at a bureau within a large NYC municipal agency was struggling. Mayor Bloomberg and his no-nonsense Commissioner had raised expectations for responsiveness. But people had difficulty in finding information they needed, chronic interruptions undermined people’s ability to focus on their work, no one had an effective approach to managing the increasing burden of email, and most importantly, people lacked a process for consistently and systematically dealing with incoming work. As a result, work piled up and deadlines slipped. People were overwhelmed and felt as though they had no control over their jobs.  

Intervention: We introduced a comprehensive organizational system for both paper and electronic files that reduced the time wasted in looking for information. This enabled staff to spend more time creating value. We also introduced a simple system for dealing with the daily inflow of work, especially email. We taught fundamental work habits that created uninterrupted “space” for people to focus and concentrate on their critical tasks. Finally, we gave the staff a simple planning tool that helped them track their projects and ensure that they were moving forward.

 

Resolution: Post-training surveys revealed dramatic improvements: a 36% reduction in time spent looking for information, a 25% reduction in time spent processing emails, a 35% reduction of time lost to interruptions, and a 40% reduction in the amount of time spent working on backlog. The vast majority of participants (91%) reported at least a 10% increase in productivity. One participant said, “I am now able to manage discrete pieces [of work] better, see progress, and not feel overwhelmed. Moreover, I am able to spot possible barriers to forward motion better.”