When Is The Best Time To Implement Profit Sharing?

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Great article by CFO Orry Fiume who administered Wiremold’s plan for his entire tenure learning the following 10 elements of a successful profit-sharing plan.

He found that any plans violating these principles run the risk of them becoming entitlement programs at best, or at the worst, de-motivators that generate the opposite effects that they are designed for.

Read here: https://www.lean.org/LeanPost/Posting.cfm?LeanPostId=1165

Calgary zone covid19 cases

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Data based on Alberta daily reports containing Calgary new & total for that day. 

Where new is not reported, the previous days total is subtracted. 

Results averaged for Apr 15-17 due to fire.

Please send additional links to confirmed numbers for previous dates, particularly missing dates for new cases March 19, April 4 & 11 in comments or tweet @ryancartiers.

Learning fast in the crisis

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- Buying a company is never an easy step just 1 month ahead of a pandemic and lockdown. Results from a CEO spending time in the business instead of the office.
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to learn about problems, find and face.

Organizational changes can be tempting when a new owner steps in, but they seldom help.
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Lean thinking rather teaches us to focus on the flow of products and services to customers and observe what hinders the work of those operating along that flow.
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They managed to reduce the lead-time for stainless steel trolleys 66% from 6 weeks to 2 weeks.

With overall volume of sales decreasing, the lockdown seems to be the perfect opportunity to revamp the workshop and learn how to better organize it.

read full article:

https://planet-lean.com/lean-learning-covid19

What Zero Looks Like: Eliminating Hospital-Acquired Infections

What Zero Looks Like: Eliminating Hospital-Acquired Infections

IHI (Institute for Healthcare Improvement)

follow link to article below, some points from it:

  • 1.7 million hospital patients ― 4.5 of every 100 admissions ― become infected each year, causing or contributing to the deaths of nearly 100,000 people.

  • Beginning in 2005 with its initial 100,000 Lives Campaign and now 5 Million Lives Campaign, and with the help of several scientific partners, the Institute for Healthcare Improvement has targeted for prevention and reduction 3 HAIs:

    1) ventilator-associated pneumonia (VAP),

    2) central line-related bloodstream infection (CLRBI), and

    3) surgical site infection (SSI)

    ― which, according to the CDC, account for an estimated 50% of all HAI-related deaths.

  • Joe McCannon, manager of the 5 Million Lives Campaign, and an IHI vice president

  • Hospitals participating in the Campaign significantly reduced their monthly HAI rates, in some months all the way down to zero, and “a surprising number were getting down to zero and staying there.”

  • FOR CHANGE TO STICK, AN ORGANIZATION HAS TO REVAMP ITS CULTURE as well as its procedures.

  • not just zero infections but zero tolerance for non-compliance with proven prevention measures

  • When you’re talking about something that can cost people their lives and zero is possible, no other benchmark makes sense.

  • “We dug into the details and found that, officially, good processes were in place but they had broken down or, in some places, were being ignored.” Staff re-education and greater accountability were part of the remedy but the hospital also decided to post large charts in the corridor of the operating rooms, tracking monthly SSIs with big black dots. “That helped keep all staff and physicians aware of our need to improve,”

  • “We don’t blame anyone, we look for poorly designed processes and try to fix them”

  • After much work on “culture and transparency, we now have nurses admitting to short-cuts and violating policies ― and they tell us why.” 

  • the rate of deep chest surgical site infections following CABGs got down to zero and with some exceptions, has remained at zero for multiple months at a time ― the longest was a 15-month stretch

  • hospital has been able to reduce its rate of ventilator-associated pneumonia ― an infection that enters the body via a mechanical breathing tube ― to zero, sustaining that level for as long as two years.

  • overall infection rate was reduced from 3.6 cases per 1,000 patient days before the intervention to 0.85 cases

  •  it’s reasonable to expect that zero infections will become a widely-accepted goal for hospital performance.

  • "People want to do the right thing.

    http://www.ihi.org/resources/Pages/ImprovementStories/WhatZeroLooksLikeEliminatingHospitalAcquiredInfections.aspx

Acquiring sales you might otherwise miss - without reducing costs

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"And if we got production down to 8 weeks (from 12 weeks), what would happen?"
"We would control the market."

This is how lean is a competitive advantage driving sales growth.

“Lean is about being able to do things that our competitors can’t do. It’s about creating capabilities within our own company that our competitors can’t easily copy. ”

Emphasis on: companies apply lean with the wrong vision.

Too often, lean is seen as “cutting away” rather than “creating".

It’s misinterpreted as a cost-reduction tactic rather than a market building strategy.

Article link to: Is Agility More Important than Lean?

With the right vision, the two go hand-in-hand.

https://www.industryweek.com/operations/continuous-improvement/article/21127480/is-agility-more-important-than-lean

by Rick Bohan

What to expect as a Lean Manager? depends on the CEO's commitment

What to expect as a Lean Manager?
- depends on the CEO's commitment

Operational Excellence: the CEO has delegated to one of their executives a program to generate savings or improvements.

Lean transformation: the CEO is working with a coach to spend more time where the revenue generating business is done and change how they are running the company.

 

understand which problem we’re trying to solve:

  • a program of productivity improvement workshops to deliver savings,

  • or a program of gemba walks to deliver ideas and voluntary engagement in trying new ways of satisfying customers.

 

Great article by Michael Balle here: https://www.lean.org/balle/DisplayObject.cfm?o=5173

Recognizing the Old (and Totally Outdated) Philosophy of Leadership

The Modern Leader Creates the Conditions for a Problem Solving Culture

highlights from Jim Luckman’s article, link below

“Start by considering whether or not you are operating within an outdated model of leadership”

“you are likely operating inside the old paradigm, typical of most companies, that imposes blanket solutions on performance problems without first understanding your organization’s real, most urgent business problems.”

Recognizing the Old (and Totally Outdated) Philosophy of Leadership

“common leadership practices that consistently create poor outcomes.”

“Another outdated idea? Most leaders today still believe that maximizing profits is the purpose of the organization.”

“It addresses the focus on customers vs. profits.”

“What percentage of your daily activity is tied to maximizing profit (sales growth and cost savings) vs. improving value delivery to your customers?”

Read it here: https://www.linkedin.com/pulse/modern-leader-creates-conditions-problem-solving-culture-jim-luckman/?trackingId=iIryYOaHQdaFu93C9vgZ4Q%3D%3D

Don’t Blame “Just in Time” for Your Risky Supply Chain Strategy

The problems are driven by a lowest-piece-price strategy that leads to LONG distances. *That's not JIT.

Excellent business write up for senior management coherency regarding the supply chain they have set up by Mark Graban here:

https://www.leanblog.org/2020/03/covid-19-dont-blame-toyota-or-just-in-time-for-your-risky-supply-chain-strategy

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The impact of lean on the financial performance of an SME

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“typically 3 years after the beginning of the transformation businesses will have the opportunity to dramatically outperform their non-lean industry peers.

 

management should learn to see the methodology as a #Strategy rather than a set of tools, and framing the transformation as the development of a system for continuous improvement and learning rather than the simple improvement of processes.”

link to article here:

https://planet-lean.com/financial-performance-sme-research

The Lean Trilogy - Mark Deluzio - Danaher

“they already have the person in place that should lead the transformation, the CEO.”

 

“The CEO must not only verbalize his commitment to the Lean Transformation, he must show it in his actions."

 

“If the CEO delegates away his responsibilities to a staff position within the company, the Lean transformation will stall and eventually fail. The CEO must be as committed to the process of the transformation as he is to the results.”

 

“a Lean transformation is all about people.”

 

“one must think about Lean as a growth strategy.”

 

“You may need to decide NOT to do business with a group of customers if employee and/or shareholder requirements are not met.”

https://markdeluzio.com/lean-trilogy

Don’t Demonize Employees Who Raise Problems

They hired her to make the firm better, but the firm’s leadership wanted to believe they were already great.

Some management demonize people, accusing them of being the problem instead of solving the problem that is being raised.

It’s not comfortable to see your shortcomings; this discomfort causes leaders to deflect and defend, and when leaders do this, they limit whether their organization advances.

 article here: https://hbr.org/2020/01/dont-demonize-employees-who-raise-problems

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