Business Performance Integrity- Workshop 2 (Daily Management)
The Appleton Greene Corporate Training Program (CTP) for Business Performance Integrity is provided by Mr. Danielsen Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 12 months; Program orders subject to ongoing availability.
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Learning Provider Profile
Mr. Danielsen is an accomplished professional with 30+ years of experience in various industries, including five years in civil works and 25 years in management consultancies, both external and internal.
He holds an Executive MBA from the Technical University of Copenhagen (DTU) and a B.Sc. in Civil and Structural Engineering from the Engineering College of Copenhagen.
After ending his 5-y chapter as a corporate QEHS Director in a Danish highway and railway construction company, Mr. Danielsen engaged in delivering management consultancy services within EHS and Lean Enterprise across several industrial sectors for the following nine years.
He wanted to get closer to one company. He spent the next eight years as a business transformation leader in a Danish Danaher medical device company (Radiometer Medical) before moving to Amsterdam and joining the Philips’ Group Business Transformation organization, heading and deploying the Continuous Improvement and Performance Management practices globally.
Mr. Danielsen recently concluded his career within large corporations and started his freelance consultancy, LeanDK.
Mr. Danielsen has industry experience within the following sectors: Consulting Services, Medical Devices, Pharmaceuticals, Construction, Industrial Products, and Energy.
Although his focus locations are now the Scandinavian capitals and Amsterdam, Mr. Danielsen has delivered consultancy services in the US, Latin America, Japan, China, Singapore, Saudi Arabia, Finland, Sweden, Germany, Switzerland, Poland, and Latvia since 1999. He traveled throughout India, Indonesia, Thailand, and Africa in the eighties and nineties.
His achievements include facilitating/driving the Strategy Deployment process for eight years, which resulted in a yearly 50% reduction of the external quality footprint and significantly contributed to the company’s growth of 8% YoY—double the speed of the market (Radiometer Medical, part of Danaher).
Global top-down and bottom-up capability building within continuous improvement and performance management resulted in a significant step up in the predictability of short- and long-term outcomes. The company share price grew from EUR 21 to EU 51 during his 6-year tenure (Royal Philips).
The service skills of Mr. Danielsen lie mainly within Operational Excellence and Business Transformation, comprising capability building in strategy deployment, mission control (by daily management and problem-solving), and servant leadership.
To request further information about Mr. Danielsen through Appleton Greene, please Click Here.
MOST Analysis
Mission Statement
We all want to be on the winning team more often, but how do we know whether we are winning or losing at a given time? In the second part of the program, we will dive into the elements of a DM system and, based on the confirmed diagnosis, begin to build your DM setup. We will use a step process that covers several reflection questions like: What are you currently tracking, and can you tell if you are winning or losing? Does the data you are using drive timely course correction (actions, problem-solving, etc.)? What behaviors is your daily management process currently trying to drive? What processes are you controlling with your DM? Who are the customers of your DM process, and what are their needs? What else might you need to measure? What is your process for monitoring and communicating progress? Through this process, you will familiarize yourself with the components and interdependencies of the DM System you are part of. You will map your accountability structure and the KPI hierarchy you act within. You will understand the related vital processes and the relevant stakeholders, including internal and external customers, your DM team, and the colleagues in the (vertical) reporting line. We will explore different ways of doing DM for various purposes to understand your organization’s needs. Based on these insights, you will decide on concrete actions to refine and improve your DM. At the end of Module 2, you will be ready to make the planned changes in your DM processes and organization with your team and test them using a Plan-Do-Check-Act (PDCA) approach. With your new insights, you will be on an accelerated learning curve related to DM.
Objectives
01. What is DM: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Why DM: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. How DM: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. DM Metrics: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Board Basics: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Other Boards: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Stakeholder Mapping: departmental SWOT analysis; strategy research & development. 1 Month
08. Organizing DM: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Stage Setting: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. DM Meeting: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. DM Mindset: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
12. Your DM: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
Strategies
01. What is DM: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Why DM: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. How DM: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. DM Metrics: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Board Basics: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Other Boards: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Stakeholder Mapping: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Organizing DM: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Stage Setting: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. DM Meeting: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. DM Mindset: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
12. Your DM: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
Tasks
01. Create a task on your calendar, to be completed within the next month, to analyse What is DM.
02. Create a task on your calendar, to be completed within the next month, to analyse Why DM.
03. Create a task on your calendar, to be completed within the next month, to analyse How DM.
04. Create a task on your calendar, to be completed within the next month, to analyse DM Metrics.
05. Create a task on your calendar, to be completed within the next month, to analyze Board Basics.
06. Create a task on your calendar, to be completed within the next month, to analyse Other Boards.
07. Create a task on your calendar, to be completed within the next month, to analyse Stakeholder Mapping.
08. Create a task on your calendar, to be completed within the next month, to analyse Organizing DM.
09. Create a task on your calendar, to be completed within the next month, to analyze Stage Setting.
10. Create a task on your calendar, to be completed within the next month, to analyse DM Meeting.
11. Create a task on your calendar, to be completed within the next month, to analyse DM Mindset.
12. Create a task on your calendar, to be completed within the next month, to analyse Your DM.
Introduction
What is Daily Management?
Daily Management (DM) is a systematic approach that organizations use to ensure that they are consistently meeting their goals and objectives. It involves the regular monitoring and management of business activities and performance metrics to determine whether the organization is “winning” or “losing” at any given time. The purpose of DM is to create a structured and disciplined environment where performance can be continuously improved through timely interventions and corrections.
The concept of Daily Management has evolved significantly over time. Originally rooted in manufacturing practices such as Lean and Six Sigma, DM has been adapted to fit various industries, including healthcare, finance, and service sectors. These methodologies focus on reducing waste, improving efficiency, and enhancing quality, principles that are integral to DM.
Why is Daily Management Important?
Daily Management is crucial because it provides a clear and consistent method for tracking performance and identifying areas that need improvement. By regularly monitoring key performance indicators (KPIs) and other relevant metrics, organizations can ensure that they are on track to achieve their strategic goals. DM helps in fostering a culture of accountability and continuous improvement, as it involves every team member in the process of tracking performance and making necessary adjustments.
DM systems are designed to provide transparency in business operations. They help managers and team members understand the current state of performance, recognize trends, and identify potential issues before they become critical problems. This proactive approach enables timely problem-solving and course corrections, ensuring that the organization remains agile and responsive to changes in the business environment.
Consider the example of Toyota, which pioneered the use of DM through its Toyota Production System (TPS). This approach allowed Toyota to identify inefficiencies and implement corrective actions quickly, leading to significant improvements in productivity and quality. Similar success stories can be found in companies like General Electric, which used Six Sigma to enhance their DM processes, resulting in substantial cost savings and performance improvements.
The Objective of Daily Management
The primary objective of Daily Management is to enable organizations to deliver more often on their promises. This means consistently meeting or exceeding performance expectations and closing any performance gaps in a timely manner. By focusing on daily activities and performance, organizations can ensure that they are continuously moving towards their strategic goals and delivering value to their stakeholders.
Components of an Effective Daily Management System
A robust Daily Management system comprises several key elements that work together to ensure effective performance tracking and management. These elements include:
Performance Metrics and KPIs: Identifying and tracking the right performance metrics is crucial. These metrics should be aligned with the organization’s strategic goals and should provide a clear indication of whether the organization is winning or losing.
Daily Performance Reviews: Regular performance reviews are essential for maintaining focus and ensuring that any deviations from expected performance are quickly identified and addressed. These reviews typically involve assessing current performance against established benchmarks and discussing any necessary corrective actions.
Problem-Solving Mechanisms: A strong DM system includes effective problem-solving mechanisms that enable teams to quickly identify the root causes of performance issues and implement appropriate solutions. Techniques such as Root Cause Analysis (RCA) and Plan-Do-Check-Act (PDCA) cycles are commonly used.
Accountability Structures: Clear accountability structures ensure that everyone knows their roles and responsibilities within the DM system. This includes defining who is responsible for tracking specific metrics, who needs to take action when performance issues arise, and how progress is communicated within the organization.
Communication Processes: Effective communication processes are vital for ensuring that performance information is accurately and efficiently shared across the organization. This includes regular meetings, reporting systems, and other communication tools that support transparency and collaboration.
Modern DM systems often leverage advanced tools and technologies to enhance performance tracking and management. These can include visual management boards, digital dashboards, and specialized software applications that provide real-time data and analytics. These tools help streamline the DM process and make it easier to identify and address performance issues promptly.
Common Challenges and Solutions
Implementing a DM system can come with challenges, such as resistance to change, data accuracy issues, and maintaining employee engagement. To overcome these obstacles, it’s important to:
• Engage stakeholders early and communicate the benefits of DM.
• Ensure data accuracy by using reliable data sources and validation processes.
• Foster a culture of continuous improvement and celebrate small wins to maintain motivation.
Building Your DM Setup
When building a DM setup, it is important to start with a thorough diagnosis of the current state of your organization’s performance management practices. This involves asking several reflection questions to understand what is currently being tracked, how data is being used to drive actions, and what behaviors and processes are being influenced by the existing DM system.
Key reflection questions include:
• What are you currently tracking, and can you tell if you are winning or losing?
• Does the data you are using drive timely course correction (actions, problem-solving, etc.)?
• What behaviors is your daily management process currently trying to drive?
• What processes are you controlling with your DM?
• Who are the customers of your DM process, and what are their needs?
• What else might you need to measure?
• What is your process for monitoring and communicating progress?
Mapping Your Accountability Structure and KPI Hierarchy
Accountability Structures
An effective DM system requires clear accountability structures that outline who is responsible for tracking and managing specific performance metrics. This ensures that everyone understands their roles and responsibilities and knows how their actions contribute to the overall performance of the organization.
Mapping your accountability structure involves identifying the key stakeholders in your DM system, including internal and external customers, DM team members, and colleagues in the vertical reporting line. It is important to define clear lines of accountability and ensure that everyone understands their specific roles in the performance management process.
KPI Hierarchy
The KPI hierarchy is a critical component of the DM system, as it defines the key performance indicators that will be tracked at different levels of the organization. These KPIs should be aligned with the organization’s strategic goals and should provide a clear indication of performance at various levels.
When mapping your KPI hierarchy, it is important to consider the interdependencies between different KPIs and how they contribute to overall performance. This involves identifying the key metrics that need to be tracked at different levels of the organization and ensuring that they are aligned with the organization’s strategic objectives.
Customization and Adaptation
Every organization is unique, and it’s important to customize the DM system to fit the specific needs of your organization. This means adapting the system to accommodate different industries, company sizes, and organizational cultures. By tailoring the DM system, you can ensure it is relevant and effective for your specific context.
Integration with Other Management Systems
Daily Management does not operate in isolation. It is important to integrate DM with other management systems and frameworks, such as strategic planning, project management, and quality management systems. This integration ensures that DM is aligned with the overall strategic direction of the organization and supports broader business objectives.
Understanding Vital Processes and Relevant Stakeholders
In addition to mapping the accountability structure and KPI hierarchy, it is important to understand the vital processes and relevant stakeholders that are involved in the DM system. This includes identifying the key processes that need to be managed and controlled, as well as understanding the needs and expectations of the stakeholders who are involved in these processes.
By understanding the interdependencies between different processes and stakeholders, organizations can ensure that their DM system is comprehensive and effective. This involves regularly reviewing and updating the DM system to ensure that it remains aligned with the organization’s strategic goals and objectives.
Implementing and Improving Your Daily Management System
Once you have mapped your accountability structure and KPI hierarchy, and understood the vital processes and relevant stakeholders, the next step is to implement your DM system. This involves putting in place the necessary processes, tools, and mechanisms to ensure that performance is consistently tracked and managed.
The implementation process should be based on a Plan-Do-Check-Act (PDCA) approach, which involves planning the necessary actions, implementing them, checking the results, and making any necessary adjustments. This iterative approach ensures that the DM system is continuously improved and refined over time.
Successful implementation of a DM system requires effective change management strategies. This includes engaging stakeholders, developing clear communication plans, and providing training to ensure everyone understands the new processes and their roles within them. Managing change effectively helps to minimize resistance and ensures a smoother transition.
To measure the success of your DM implementation, it’s important to establish specific metrics. These might include process efficiency, employee engagement, financial performance, and customer satisfaction. By tracking these metrics, you can assess the impact of your DM system and identify areas for further improvement.
Continuous improvement is a key principle of effective Daily Management. This involves regularly reviewing and updating the DM system to ensure that it remains aligned with the organization’s strategic goals and objectives. By continuously monitoring performance and making timely course corrections, organizations can ensure that they are consistently moving towards their goals and delivering value to their stakeholders.
Improvement and refinement of the DM system should be based on the insights gained from regular performance reviews and problem-solving activities. This involves identifying areas for improvement, implementing appropriate actions, and monitoring the results to ensure that the desired outcomes are achieved.
Daily Management provides a structured and disciplined approach to tracking and managing performance. By implementing an effective DM system, organizations can ensure that they are consistently meeting their goals and objectives, delivering value to their stakeholders, and closing performance gaps in a timely manner.
Through this course, you will gain a comprehensive understanding of the components and interdependencies of the DM system, map your accountability structure and KPI hierarchy, and understand the vital processes and relevant stakeholders involved. You will also learn how to implement and continuously improve your DM system, ensuring you are always on the path to success.
By the end of this course, you will be ready to make the planned changes in your DM processes and organization with your team and test them using a PDCA approach. With your new insights, you will be on an accelerated learning curve related to Daily Management, enabling you to deliver more often on your promises and achieve excellence in Business Performance Integrity.
Case Study: Toyota’s Daily Management System
Toyota Motor Corporation, a leading automotive manufacturer, is renowned for its efficiency and high-quality production processes. One of the key factors behind Toyota’s success is its robust Daily Management (DM) system, which is an integral part of the Toyota Production System (TPS). The DM system at Toyota focuses on continuous improvement, waste reduction, and high levels of transparency and accountability.
Toyota’s DM system involves several key practices and tools that help maintain high standards of performance and quality. These include:
1. Visual Management Boards: Toyota uses visual management boards extensively on the factory floor. These boards display real-time data on production targets, actual performance, and any deviations from the plan. This transparency helps teams quickly identify and address issues.
2. Daily Performance Reviews: Every day, Toyota holds short, focused meetings at the start of each shift. During these meetings, team members review the previous day’s performance, discuss any problems encountered, and plan for the day ahead. This ensures that everyone is aware of the current state of production and any necessary corrective actions.
3. Root Cause Analysis (RCA): When performance issues arise, Toyota employs Root Cause Analysis to identify the underlying causes. This systematic approach ensures that problems are addressed at their source, preventing recurrence and fostering continuous improvement.
4. Standardized Work Procedures: Standardized work is a core component of Toyota’s DM system. By having clear, standardized procedures, Toyota ensures consistency and quality in its production processes. These procedures are regularly reviewed and updated based on feedback and performance data.
5. Plan-Do-Check-Act (PDCA) Cycles: Toyota’s DM system is built around the PDCA cycle. This iterative approach allows teams to plan improvements, implement them, check the results, and make necessary adjustments. This cycle of continuous improvement is deeply ingrained in Toyota’s culture.
The implementation of a robust DM system has yielded significant benefits for Toyota:
• Increased Efficiency: By continuously monitoring and managing performance, Toyota has been able to identify and eliminate waste, leading to higher efficiency and productivity.
• Improved Quality: The focus on standardized work and root cause analysis has helped Toyota maintain high quality standards, reducing defects and enhancing customer satisfaction.
• Enhanced Transparency: The use of visual management and daily performance reviews has fostered a culture of transparency and accountability. Everyone in the organization is aware of their role in achieving the company’s goals.
• Faster Problem-Solving: The systematic approach to problem-solving ensures that issues are quickly identified and addressed, minimizing disruptions and maintaining smooth operations.
Toyota’s success with Daily Management provides several valuable lessons for other organizations:
1. Embrace Transparency: Transparent communication and real-time data sharing are crucial for effective DM. Visual management tools can help make performance data accessible to everyone.
2. Focus on Continuous Improvement: DM should be seen as an ongoing process of improvement. The PDCA cycle is a powerful tool for driving continuous enhancements.
3. Standardize Processes: Clear, standardized procedures ensure consistency and quality. Regularly review and update these procedures based on performance data and feedback.
4. Engage Everyone: Daily Management should involve all team members. Regular performance reviews and a culture of accountability ensure that everyone is aligned with the organization’s goals.
Toyota’s Daily Management system is a prime example of how effective DM practices can lead to significant improvements in performance and quality. By adopting similar practices, other organizations can enhance their own DM systems, ensuring they consistently meet their goals and deliver value to their stakeholders. This case study highlights the practical application of DM principles and underscores the importance of transparency, continuous improvement, and standardized processes in achieving Business Performance Integrity.
Case Study: General Electric’s (GE) Implementation of Daily Management
General Electric (GE), a global conglomerate, has operations in various sectors, including aviation, healthcare, power, and renewable energy. In the early 2000s, GE embarked on a journey to enhance its operational efficiency and quality through the implementation of Lean and Six Sigma methodologies, which included a strong focus on Daily Management (DM).
GE’s approach to Daily Management involved several key components:
1. Performance Dashboards: GE implemented digital performance dashboards across its operations. These dashboards provided real-time visibility into key performance metrics such as production rates, quality levels, and equipment efficiency. The dashboards were accessible to all team members, promoting transparency and accountability.
2. Daily Huddles: GE introduced daily huddles, brief meetings held at the start of each shift. During these huddles, teams reviewed the previous day’s performance, identified any issues, and discussed action plans for the day. These meetings were crucial for aligning team members and ensuring everyone was focused on the same goals.
3. Root Cause Analysis (RCA): Whenever performance issues or deviations from the plan were identified, GE utilized Root Cause Analysis to understand the underlying causes. By addressing the root causes, GE was able to implement long-term solutions rather than temporary fixes.
4. Kaizen Events: GE incorporated Kaizen events, which are focused, short-term projects aimed at improving specific processes. These events were part of the broader DM system and involved cross-functional teams working together to identify inefficiencies and implement improvements.
5. Standard Work: Standard work procedures were developed and documented for critical processes. These procedures ensured consistency and quality across operations. GE regularly reviewed and updated these standards based on performance data and feedback from employees.
6. Plan-Do-Check-Act (PDCA) Cycles: The PDCA cycle was integral to GE’s DM approach. This iterative process allowed teams to plan changes, implement them, check the results, and make necessary adjustments. This continuous improvement cycle helped GE maintain high performance levels and adapt to changing conditions.
The implementation of Daily Management at GE led to significant improvements across the organization:
• Enhanced Operational Efficiency: By continuously monitoring performance and addressing issues promptly, GE improved its operational efficiency, reducing cycle times and increasing productivity.
• Improved Quality: The focus on standardized work and root cause analysis helped GE enhance the quality of its products and services, reducing defects and rework.
• Increased Transparency: Performance dashboards and daily huddles promoted transparency, ensuring that all team members were aware of current performance levels and any issues that needed attention.
• Faster Problem-Solving: The systematic approach to problem-solving enabled GE to quickly identify and address issues, minimizing downtime and disruptions.
• Employee Engagement: The involvement of employees in daily huddles, Kaizen events, and continuous improvement activities increased their engagement and ownership of the processes.
GE’s experience with Daily Management provides several key insights for other organizations:
1. Leverage Technology: Performance dashboards and other digital tools can enhance transparency and provide real-time insights into performance metrics.
2. Conduct Regular Reviews: Daily huddles and performance reviews are essential for maintaining focus and ensuring that any issues are quickly identified and addressed.
3. Address Root Causes: Effective problem-solving requires a focus on root causes. Techniques like Root Cause Analysis can help identify and eliminate the underlying issues.
4. Promote Continuous Improvement: The PDCA cycle and Kaizen events are powerful tools for driving continuous improvement. Encourage teams to regularly seek out and implement process improvements.
5. Standardize Processes: Standard work procedures ensure consistency and quality. Regularly review and update these standards based on performance data and feedback.
General Electric’s implementation of Daily Management showcases the transformative impact of effective DM practices. By adopting these practices, organizations can enhance their operational efficiency, improve quality, and foster a culture of continuous improvement. This case study underscores the importance of leveraging technology, conducting regular performance reviews, addressing root causes, promoting continuous improvement, and standardizing processes in achieving Business Performance Integrity.
Executive Summary
Chapter 1: What is DM?
Daily Management (DM) is a systematic approach designed to ensure that business processes run smoothly and meet customer demands consistently. This chapter provides an overview of DM, drawing on the analogy of a bustling European train station to illustrate the concept. The aim is to clarify how DM helps organizations maintain process discipline, drive continuous improvements, and balance operational performance with strategic transformation efforts.
The Train Station Analogy
In the “Running the Business (Perform)” space, DM can be likened to the operations of a large European train station. Here, a central dashboard displays the status of trains, showing whether they are on time or delayed. This information is crucial for passengers, station staff, management, and train operators. Similarly, in a business context, DM ensures that processes run smoothly and meet customer demands, with real-time status updates and timely interventions to address any issues.
In the “Change the Business (Transform)” space, DM supports the development of next-generation processes and capabilities, akin to developing high-speed rail systems. Strategy Deployment, a core component of DM, is crucial for driving these transformations and ensuring they stay on track.
The 3-Tool System
DM is underpinned by a 3-tool system introduced in WDP1:
1. Performance Tracking: Monitoring key performance indicators (KPIs) to ensure they meet established standards.
2. Problem-Solving: Applying fit-for-purpose problem-solving techniques when KPIs fall behind.
3. Continuous Improvement: Driving incremental process improvements to raise standards continuously.
This system helps maintain a robust process foundation, enabling organizations to deliver on their promises and stay competitive. Over time, mature processes migrate into the DM framework, reinforcing the foundation and enhancing performance reliability.
Roles and Responsibilities in DM
The involvement in DM varies across organizational levels, with a visual representation showing the aspirational time allocation for mature performance management cultures:
• Frontline Associates: Primarily engaged in DM and continuous improvement (Kaizen), occasionally involved in breakthroughs if their processes are targeted for transformation.
• Mid-Level Management: Balances DM with a growing focus on strategic initiatives and breakthrough projects.
• Top Management: Aspires to spend up to 70% of their time driving the strategic (Transform) agenda, having built a strong DM capability throughout the organization.
Definition and Characteristics of DM
Daily Management (DM) can be defined as a “team-based, visual process held with regular cadence to ensure process discipline and drive improvements around the most critical metrics. When off track, the team applies problem-solving and takes purposeful action with urgency.”
Key characteristics of DM include:
• Team-Based: Involves collaborative efforts across different levels of the organization.
• Visual: Utilizes visual tools and dashboards to track performance.
• Regular Cadence: Conducted at consistent intervals to maintain discipline.
• Process-Oriented: Focuses on managing and improving business processes.
• Metric-Driven: Centers on critical performance metrics to gauge success.
• Action-Oriented: Promotes timely interventions and problem-solving to address performance gaps.
Daily Management is a vital capability for organizations aiming to balance operational excellence with strategic growth. By ensuring process discipline, fostering continuous improvement, and supporting strategic transformations, DM helps organizations deliver on their promises more consistently and build a competitive advantage. Through a structured and visual approach, DM enables timely interventions, driving both short-term performance and long-term success.
Chapter 2: Why DM?
Daily Management (DM) is integral to maintaining high performance and achieving organizational goals. It ensures transparency, accountability, and timely intervention, aligning the entire team towards continuous improvement and strategic success.
The Sports Huddle Analogy
In sports, teams huddle to strategize, assess their current strategy’s effectiveness, and make necessary adjustments to win the game. They do not discuss the score; it is readily visible on large displays around the stadium. Similarly, in DM meetings, the primary focus is not on reporting the KPI status (“the news”) but on defining actions to improve performance and “make the news.”
In a corporate context, the DM board acts as the scoreboard, displaying key performance indicators (KPIs) clearly and visually. If a metric is off track (red), the goal of DM meetings is to develop actions to return it to an acceptable level (green). This process ensures that the team remains focused on continuous improvement and strategic adjustments.
The Car Dashboard Analogy
Driving a car requires monitoring critical metrics on the dashboard, such as speed and fuel levels. The most important metrics are prominently displayed for quick and easy access, allowing the driver to react promptly to any issues. Similarly, in DM, the team should regularly evaluate if they are monitoring the right critical metrics and adjust them as necessary to respond to a dynamic and changing environment.
Customization of the dashboard, as seen in newer cars, mirrors how DM should evolve. Teams must adapt their performance metrics to ensure they drive the desired course corrections. Regular reviews ensure the focus remains on the most impactful metrics.
Regular Cadence and Short Interval Control
A crucial aspect of DM is its “regular cadence,” meaning that the team decides the frequency of DM meetings based on the need for course corrections and data availability. This could be hourly, daily, weekly, or monthly. As the DM system matures, meetings are often held more frequently to enable earlier interventions and improve performance.
“Short interval control” becomes more feasible with the availability of real-time data. This concept allows teams to make timely decisions and adjustments, ensuring they stay ahead of issues and maintain a winning trajectory. Leaders must decide on the review frequency based on the criticality of maintaining performance, analogous to how a CEO would determine how long to drive with her eyes closed on a winding road.
Focus, Alignment, and Cross-Functional Teams
Effective DM fosters “focus and alignment,” ensuring that teams remain customer-focused and committed to winning. Visual DM tools quickly highlight areas not meeting expectations, allowing teams to concentrate their efforts on necessary improvements. Given that many processes are cross-functional, the most effective DM teams are also cross-functional, ensuring comprehensive oversight and accountability.
“Decision-making and transparency at the point-of-impact” are essential for effective DM. This means empowering teams at the operational level to make decisions and have the visibility to understand their performance. When the DM foundation is strong, with processes running smoothly, organizations can focus their strategic efforts on breakthrough initiatives.
DM lies in creating a transparent process that provides visibility into performance and accountability for timely corrective actions. DM ensures that teams are aligned, focused, and continuously improving, driving both operational excellence and strategic success. By integrating regular performance reviews, real-time data, and cross-functional collaboration, DM helps organizations maintain high standards and achieve their goals more consistently.
Chapter 3: How DM
Vital Elements of DM
The core components of DM include Leadership, Objectives and Metrics, Tiered Accountability and Meeting Cadence, and Visual Management (DM Boards). These elements create a cohesive system that supports performance tracking, problem-solving, and continuous improvement.
The Three-Step DM Improvement Process
DM operates on a continuous improvement cycle, which can be broken down into three steps: Prepare, Install, and Sustain and Improve. This process aligns with the Plan-Do-Check-Act (PDCA) cycle, ensuring that DM systems are always evolving and improving.
Prepare:
• Leadership Commitment: Gain commitment from leadership and upper-tier support to develop or enhance the DM process.
• Business Needs Assessment: Determine what is critical for upper management and identify the needs of internal and external customers. Map current processes, identify stakeholders, and evaluate existing metrics.
• Desired Behaviors: Define the behaviors that indicate a good performance day for the team. This includes conducting a ‘DM Stakeholder Analysis’ to ensure all relevant factors are considered.
Install:
• Metric Selection: From the initial catalog of potential metrics, narrow down to 4-6 critical metrics for the DM board.
• Visual Management Strategy: Design the DM boards based on team and stakeholder needs. Decide whether additional boards (e.g., resource or process flow boards) are necessary.
• DM Process Development: Establish the frequency of DM meetings, participant roles, metric updating responsibilities, and meeting execution guidelines. These ‘rules of engagement’ are consolidated in a ‘Terms of Reference’ document.
Sustain and Improve:
• Activate Regular Cadence: Implement the DM process with a focus on consistency and regular review.
• Leadership Principles: Apply DM leadership principles to maintain a winning team environment and ensure continuous improvement.
• Continuous Improvement: Agree on the number of meetings to exercise the new process before evaluating and applying problem-solving techniques using the PDCA cycle.
DM Leadership Characteristics
Effective DM requires strong leadership to create a supportive and productive team environment. Key characteristics of DM leadership include:
• Creating a Winning Team Environment: Leaders must foster a safe and collaborative atmosphere where employees feel comfortable discussing problems.
• Active Involvement: Leaders need to be present and engaged in the DM process, contributing and providing support to the team.
• Sense of Urgency: Leaders should instill a sense of urgency in addressing and solving problems.
• Teaching and Coaching: Leaders should use DM meetings as opportunities to teach and coach, providing feedback and encouraging a learning environment.
• Delegating Ownership: Empowering team members by delegating metric ownership promotes accountability and ensures follow-up actions are taken.
• Effective Meeting Management: Leaders should know when to take discussions offline to keep meetings focused and efficient.
Daily Management is an essential process for ensuring transparency, accountability, and continuous improvement in organizational performance. By following the three-step DM improvement process and embodying effective leadership characteristics, organizations can maintain a high-performance culture, drive strategic initiatives, and achieve their goals consistently. The integration of DM into daily operations ensures that teams are always aligned, focused, and equipped to meet challenges head-on, ultimately contributing to the organization’s long-term success.
Chapter 4: DM Metrics
Metrics are the backbone of any Daily Management (DM) system, providing the essential data needed to monitor performance, drive improvements, and ensure alignment with organizational goals. This part of the course explores the characteristics of good DM metrics, the importance of SMART goals, and the distinction between leading and lagging indicators. Understanding these concepts is crucial for creating an effective DM process that empowers teams to take actionable steps toward success.
Characteristics of Good DM Metrics
Good DM metrics are critical for an effective performance management system. They should be:
• Customer-Focused: Metrics should reflect the needs and expectations of both internal and external customers, ensuring that processes are aligned with delivering value.
• Purposeful and Scoped: Metrics should be aligned with the specific purposes and scopes of the processes within the team’s control.
• Simple and Repeatable: Metrics should be easy to understand and measure, enabling the team to track progress and visualize historical trends.
• Actionable: Metrics should lead to clear, actionable steps that the team can take if performance deviates from the target. This means they should be within the team’s sphere of control.
• Accepted by the Team: Metrics should be seen as fair and helpful by the team, fostering buy-in and accountability.
• Focused on Countermeasures: Only measure what can be effectively countered with specific actions.
SMART Goals in DM Metrics
The SMART criteria (Specific, Measurable, Achievable, Relevant, and Time-bound) provide a framework for defining effective metrics. In the context of DM:
• Specific: Metrics should clearly define what is being measured.
• Measurable: Metrics must be quantifiable to track progress.
• Achievable: Metrics should be realistic and attainable, avoiding overly ambitious targets that demotivate the team.
• Relevant: Metrics should align with the team’s goals and broader organizational objectives.
• Time-bound: Metrics should have a defined timeframe for achievement.
Additionally, the concept of ‘Actionable’ is particularly relevant in DM. If the team cannot envision specific actions to take when a metric is off target, it may not be a useful metric.
Leading vs. Lagging Indicators
Understanding the difference between leading and lagging indicators is crucial for effective DM:
• Lagging Indicators: These measure past performance and outcomes, such as monthly sales figures or annual revenue. While important for assessing success and identifying trends, they do not provide opportunities for immediate course correction.
• Leading Indicators: These are predictive metrics that forecast future performance, such as the number of sales calls made or customer inquiries. Leading indicators allow teams to be proactive and make adjustments before issues impact overall performance.
Effective DM metrics are essential for continuous improvement and achieving organizational goals. By focusing on customer needs, ensuring metrics are actionable, and understanding the interplay between leading and lagging indicators, teams can create a robust DM process that supports proactive management and sustained performance. Adhering to the principles of SMART goals and engaging in regular review and refinement of metrics will ensure that the DM system remains dynamic and effective.
Chapter 5: Board Basics
DM boards have their roots in manufacturing, where visual standards like the +QDIP format were developed. This format includes key performance domains:
• S or +: Safety (or People)
• Q: Quality
• D: Delivery
• I: Inventory
• P: Productivity
The order of these letters reflects their importance, with safety and people at the top, followed by quality, delivery, inventory, and productivity. This hierarchy underscores the cause-and-effect relationships between these metrics—ensuring human resources are fit for the task leads to good quality, which in turn supports timely delivery, cost control, and productivity.
When adapting DM boards for office environments, the +QDIP format often shifts to PQDC (People, Quality, Delivery, and Cost), reflecting the different focus areas in office settings. Teams can customize their KPIs and create unique acronyms to suit their specific needs, encouraging ownership and identity within the office environment.
Critical Visual Elements of DM Boards
Effective DM boards incorporate several critical visual elements designed to facilitate understanding and action:
End-to-End Problem-Solving Vertical:
• Metric Status Indicator: At the top of the board, large letters indicate whether each metric is in green (on target) or red (off target) for a given day or week.
• Trend Chart: Below the metric status, a trend chart displays performance over time, comparing actual performance against the planned target. This helps visualize trends and predict future performance.
• Metric Definition and Ownership: Including definitions and ownership details ensures clarity about what each metric represents and who is responsible for it.
• Pareto Chart: This chart breaks down the gap between current and target performance, highlighting the most significant issues that need addressing. The Pareto principle (80/20 rule) is often applied here, focusing on the 20% of issues causing 80% of the problems.
• Action Log: At the bottom, an action log tracks the specific actions needed to address issues, who is responsible, and deadlines for completion.
Frequency and Visibility:
• Meeting Cadence: Fields representing workdays in a month or weeks in a quarter/half year are color-coded (green or red) before each meeting, providing a quick visual overview of performance trends.
• Real-Time Updates: Regularly updating the board ensures everyone is aware of the current status and can focus on areas needing attention.
Implementing Effective DM Boards
To create effective DM boards, teams should follow these steps:
1. Select Key Metrics: Start by identifying the most critical metrics for your process. Challenge the team to narrow down to 4-6 metrics that are essential for tracking performance and driving improvement.
2. Design the Board: Based on the chosen metrics, design a visual management strategy. Decide on the scope and layout of the board, ensuring it meets the needs of the team and stakeholders.
3. Establish Processes: Develop a DM process that includes the frequency of updates, meeting participants, and roles. Document these ‘rules of engagement’ in a ‘Terms of Reference’ document to ensure consistency and clarity.
4. Activate and Sustain: Implement the board and activate regular cadence meetings. Continually apply DM leadership principles to maintain engagement and drive continuous improvement.
DM Leadership Characteristics
Effective DM leadership is crucial for sustaining and improving the DM process. Leaders should:
• Create a Collaborative Environment: Foster a safe and supportive atmosphere where team members feel comfortable discussing problems and suggesting solutions.
• Be Actively Involved: Engage in the DM process by attending meetings, providing feedback, and supporting the team.
• Instill a Sense of Urgency: Encourage prompt action to address issues and maintain performance.
• Empower the Team: Delegate ownership of metrics to team members, promoting accountability and engagement.
• Maintain Focus: Ensure meetings are efficient by taking detailed discussions offline when necessary.
DM boards are powerful tools for visualizing performance, facilitating problem-solving, and driving continuous improvement. By understanding their historical context, incorporating critical visual elements, and following best practices for implementation, organizations can enhance their DM processes. Effective leadership further ensures that DM boards contribute to sustained performance and organizational success.
Chapter 6: Other Boards
The fundamental board, discussed in the previous workbook, is commonly known as a Performance Board. This board is crucial for timely course correction, as it displays key metrics indicating whether “your trains are running on time.” The board features both target and actual metrics, highlighting any gaps that need addressing. Designed with an “end-to-end problem-solving vertical” for each metric, Performance Boards facilitate problem-solving and action planning.
Workflow Boards
To ensure the smooth operation of processes between Daily Management meetings, a Workflow Board can be highly effective. This board visually tracks the progress of items moving through a process, whether it’s a quote, order, product, complaint, project, service order, or problem. Workflow Boards typically display items moving from left to right along a timeline (weeks or months) or through the main steps of a process. These items are often represented by Post-It notes or pre-designed cards with standardized fields. A simple example is a Kanban Board from agile software development, while a more detailed example might track a quotation process in a sales organization, moving from “Request for Quotation” to “Quotation Sent to Customer.” Workflow Boards can either complement Performance Boards or stand alone with their own DM process.
Resource Planning Boards
Resource Planning Boards are another type introduced in this workbook. These boards vary in form but all aim to ensure that processes are adequately resourced for success. This can involve tracking the availability and skill levels of staff, the maintenance schedule of machinery, or the readiness of other essential resources. By effectively planning resources, these boards support the overall objective of keeping “trains running on time.”
Virtual Boards
While physical boards offer the best conditions for DM meetings due to their accessibility and the tangible “power of the pen,” virtual boards have become essential, especially for teams that work remotely. Virtual boards provide flexibility, allowing team members to access and update information from any location. They became particularly important during the COVID-19 pandemic, which necessitated social distancing and remote work.
The principles for constructing virtual boards are similar to those for physical boards, although the format poses challenges. For example, displaying the entire “end-to-end problem-solving vertical” or a comprehensive sales funnel on a screen can be difficult. Despite these challenges, virtual boards offer significant advantages, such as real-time data access and the ability to delve deeper into KPI breakdowns during DM calls. Large organizations can integrate connected data systems with virtual boards to enhance data accessibility and decision-making.
While the physical presence around a board fosters team cohesion and accountability, the flexibility and accessibility of virtual boards cannot be overlooked. Teams may find a hybrid approach—using both physical and virtual boards—most effective, combining the tangible benefits of physical boards with the technological advantages of virtual boards. This balanced approach ensures that teams can maintain high performance and integrity, regardless of their working environment.
Chapter 7: Stakeholder Mapping
Stakeholder mapping in Daily Management (DM) is a crucial exercise, particularly when establishing a DM board for the first time or whenever significant changes occur in the DM board process environment. It is essential to revisit stakeholder mapping regularly to ensure the relevance and effectiveness of the DM process. The activity typically begins with a brainstorming session to identify as many potential stakeholder Key Performance Indicators (KPIs) as possible. This is followed by a rational process to narrow down this extensive KPI catalog to a critical few that the team agrees to display on the board.
The boss’s perspective involves understanding the vertical KPI cascade from upper management. This perspective focuses on identifying the metrics that upper tiers are measuring and how the efforts of your team contribute to keeping these upper-level (often lagging) KPIs in the green. Recognizing these connections can help the team identify crucial leading indicators at their level. For example, if upper management is focused on overall customer satisfaction scores, your team might track response times to customer inquiries as a leading indicator. By aligning team activities with upper management’s KPIs, you ensure that your team’s efforts are directly contributing to the broader organizational goals.
The customer perspective asks who the customers of your team’s deliverables are and through which processes they interact. Understanding what your customer teams are measuring on their DM boards and how your team’s activities contribute to their success is vital. This perspective helps identify leading indicators that ensure your team’s activities keep the customer teams satisfied. For instance, if your customer team values timely delivery, your team might measure on-time shipment rates as a leading indicator. By focusing on what matters most to your customers, you enhance the value your team provides, fostering stronger relationships and better performance outcomes.
Often overlooked, the team perspective is essential for creating ownership and engagement in the DM process. It involves asking team members what specific recurrent successes or failures make their day positive or negative. Conducting a brainstorming session to understand what makes the team feel they are winning daily or weekly can yield unique insights into leading indicators. These insights might connect to the boss’s or customer’s perspectives, but they can also highlight important behavioral aspects that might not surface otherwise. For example, if team members feel accomplished when they hit specific productivity targets, these can become key indicators to track. This approach not only improves team morale but also ensures that the DM process is aligned with what motivates and drives the team.
The final step in stakeholder mapping is identifying the key processes where your team plays a vital role. This involves a simple mapping exercise to inspire more leading process indicators for the KPI catalog. A SIPOC (Suppliers, Inputs, Process, Outputs, Customers) analysis can be particularly useful here. By mapping out the critical processes, you can identify which areas require close monitoring and what indicators can help in tracking and improving these processes. This step ensures that all vital aspects of the team’s operations are considered, leading to a more comprehensive and effective DM board.
Stakeholder mapping is an ongoing, dynamic process that is integral to establishing and maintaining an effective DM board. By considering the perspectives of the boss, customers, and the team, and by mapping key processes, teams can identify the most critical KPIs to track. This ensures that the DM board reflects the priorities of all stakeholders, aligns with organizational goals, and drives continuous improvement. Regularly revisiting and updating the stakeholder mapping process helps keep the DM process relevant and effective, ensuring sustained success and performance integrity.
Chapter 8: Organizing DM
Whether you are building your DM system from scratch or looking to improve an existing process, the methodology remains consistent. Start with stakeholder mapping, identify the critical few (4-6) KPIs, and decide on the types of boards you need. Consider if a performance board will suffice, or if additional boards, such as workflow or resource planning boards, are necessary to meet the needs of your stakeholders (boss, customer, team).
Once you have identified the necessary boards, the next step is designing them according to the guidelines outlined in previous workbooks. For physical boards, large whiteboards on wheels are ideal as they allow for flexibility and additional ad hoc use on the reverse side. The design of your DM boards should adhere to three essential criteria:
The Three-Second Rule: From a distance, and within a few seconds, it should be clear if the team is winning (green) or not (red) on the 4-6 displayed metrics. This visibility allows anyone, whether a team member or not, to identify issues quickly and offer assistance.
Trend Visibility: The board should display the trend of each metric, including the planned number/goal, actual performance, and any gaps. This helps understand the urgency and rationale behind any required actions when a metric is in red.
Action Documentation: The board must clearly show what actions are coming out of the meetings. This ensures accountability and helps track progress on resolving any issues.
Starting from the top of the end-to-end problem-solving vertical, the design should include:
• KPI Definition and Ownership: Clearly define each KPI and state the team owner (and substitute) responsible for it. The person updating the numbers before the meeting might be different from the KPI owner.
• Trend Chart: This chart should show the status and trend of the metric, with a title and explanatory legend to ensure clarity.
• Pareto Charts: These charts, located below the trend chart, should break down any gaps identified. Supplement Pareto charts with other evidence of ongoing problem-solving activities.
• Action Tracker: Concluding the vertical for every metric, the action tracker should include the Date of Identification, Issue Description, Action(s), Person Responsible, Due Date, and Status. Utilizing the entire board for maximum readability is crucial as illegible information hinders contribution.
The same principles apply to workflow planning boards and resource planning boards. These boards must clearly indicate when the team is not meeting targets. For workflow boards, this means visualizing the flow of items from left to right at the correct speed according to plan. For resource planning boards, it means highlighting when resource levels fall below critical thresholds. Maintaining an action tracker is equally important for these boards to ensure that timely interventions are made and tracked effectively.
While physical boards are preferred due to their accessibility and the tangible “power of the pen,” virtual boards are essential for remote teams. Virtual boards gained prominence during the COVID-19 pandemic, making it possible for teams to collaborate and manage performance remotely. The principles for building virtual boards are similar to physical ones, but there are challenges such as screen size limitations. However, virtual boards offer significant advantages, including real-time data access and the ability to deep dive into KPI details during DM calls. Teams should consider a hybrid approach, utilizing both physical and virtual boards to leverage the benefits of both formats.
Organizing DM involves a structured approach to designing and maintaining effective boards that meet the needs of all stakeholders. By adhering to design principles that ensure clarity, visibility, and accountability, teams can enhance their DM process, driving continuous improvement and achieving strategic objectives. Regular reviews and updates to the DM process and boards ensure they remain relevant and effective in managing performance and fostering a culture of excellence.
Chapter 9: Stage Setting
Having a well-structured DM board is essential for running effective Daily Management (DM) meetings. However, it is equally important to ensure team alignment on roles, responsibilities, and the rules of engagement for the DM process. This alignment can be formalized in a standard work document or contract known as the DM ‘Terms of Reference’ (TOR). The TOR outlines crucial aspects of the DM process, ensuring clarity and consistency in meetings.
Defining Terms of Reference (TOR)
A TOR document typically includes several key components:
Timing and Logistics: Specifies when the meetings will be held, their frequency, duration, and location. This ensures that all participants are aware of the schedule and can plan accordingly.
Names of Participants: Lists the names of regular participants as well as ad hoc participants who may join as needed. This helps in managing attendance and ensuring that the right people are present for each discussion.
Meeting Objectives: Clearly states the objectives of the DM meetings, ensuring that all participants understand the purpose and goals of each session.
Inputs and Outputs: Defines the inputs required for the meeting, such as updated metrics and reports, and the expected outputs, such as action plans and decisions made.
Agenda: Outlines the agenda for the meetings, providing a structured flow for discussions and ensuring that all critical topics are covered.
Board KPIs and Other Metrics: Lists the key performance indicators and other metrics that will be reviewed during the meetings. This ensures that the focus remains on the most important measures of performance.
Rules of Engagement: Sets the behavioral expectations and guidelines for the meetings. This can include norms around punctuality, participation, and communication.
The specific topics and content of a TOR can vary depending on factors such as the domain, tier level, and whether the focus is on ‘Perform’ or ‘Transform’ activities. Additionally, different work cultures may require tailored behavioral guidelines to address unique challenges.
To maximize the efficiency of DM meetings, it is crucial to update the board before the meeting begins. This practice keeps the meetings concise and ensures that participants can immediately focus on the key issues. Team members are also encouraged to arrive on time and review the updates and challenges before the meeting starts. This preparation allows them to engage fully from the first moment of the meeting.
Defining team roles in the meeting and ownership of metrics is essential for accountability and clarity. While these roles can be fixed, some organizations find it beneficial to rotate roles and KPI ownership among team members. This rotation helps all team members understand the various processes in scope and contributes to creating a flexible and robust DM process. By experiencing different roles, team members develop a deeper understanding of the overall system and can step into various responsibilities as needed, enhancing team resilience.
Stage setting through a well-defined TOR is a foundational step in organizing effective DM meetings. By clearly outlining the timing, logistics, objectives, inputs, outputs, agenda, metrics, and rules of engagement, the TOR ensures that all participants are aligned and prepared. This alignment fosters efficient and productive meetings, enabling the team to focus on continuous improvement and achieving strategic goals. Regularly reviewing and updating the TOR ensures that the DM process remains relevant and effective, adapting to any changes in the work environment or team dynamics.
Chapter 10: DM Meeting
The duration of a Daily Management meeting can vary significantly based on its frequency and the scope of topics to cover. These meetings can range from a quick 10-minute daily standup in a manufacturing unit to an extensive 4-hour monthly operations review in a large organization. The key to keeping any DM meeting short and effective lies in thorough preparation. Tasks that can be completed beforehand should be handled prior to the meeting, ensuring that all necessary documents, dashboards, and data are readily accessible. During the meeting, it is crucial to stick to the agenda and minimize time spent on green metrics, focusing instead on addressing red metrics to steer the team towards success.
The DM meeting typically starts with the team lead setting the stage. The lead checks in with the participants, asking if anyone has any reason they cannot be fully present. This step ensures that all team members are engaged and ready to contribute. The lead then briefly acknowledges any immediate issues before summarizing the key topics of the meeting, highlighting both successes and challenges.
Metric owners, especially those responsible for red metrics, guide the team through their respective end-to-end verticals. They report on the actions taken, the status of ongoing problem-solving efforts, and invite input from the team. This collaborative approach ensures that all perspectives are considered, and solutions are comprehensive. Once all KPIs have been discussed, the team lead summarizes the key actions and facilitates a brief evaluation of the meeting. This process is similar for workflow and resource planning boards, focusing on identifying issues and defining actions to get back on track.
Characteristics of a Good DM Meeting
Several key characteristics define a successful DM meeting:
• Preparation: Participants come prepared with the necessary information and updates.
• Role Adherence: Team members stick to their designated roles, ensuring that the meeting runs smoothly.
• Full Participation: All participants are fully engaged, contributing their insights and collaborating with others.
• Open-Mindedness and Adaptability: Team members keep an open mind and are willing to embrace change and new ideas.
• Empathy and Understanding: The team leader strives to understand the emotional states of team members, acting empathetically to create a supportive environment.
• Accountability and Fact-Based Dialogue: Ensuring accountability related to KPI ownership and maintaining a fact-based dialogue around reasons for red metrics.
• Effective Time Management: Leaders avoid getting stuck in prolonged discussions, recognizing when to take issues offline to keep the meeting focused and efficient.
A good team leader balances empathy and accountability, creating a fail-safe environment where team members can learn and grow while ensuring that course correction actions are effectively implemented.
Avoiding Common Pitfalls
One of the most common pitfalls in DM meetings is getting bogged down in extended discussions, particularly when questions cannot be quickly answered with facts. This issue often arises from a lack of preparation or clarity in roles. To avoid this, leaders should ensure that all participants come prepared and that any discussions requiring detailed analysis are taken offline and addressed separately.
Effective DM meetings are a cornerstone of successful Daily Management. By focusing on preparation, role adherence, and efficient time management, teams can ensure that their meetings are productive and aligned with organizational goals. Leaders play a crucial role in fostering an environment of accountability, collaboration, and continuous improvement. Regularly reviewing and refining the DM meeting process helps maintain its effectiveness, driving the team towards sustained success and performance integrity.
Chapter 11: DM mindset
Whether you are a low-tier team lead or a top-tier functional leader, Daily Management (DM) meetings offer invaluable opportunities to exercise and continuously improve your leadership skills. These meetings are a dedicated time to engage with your team in front of the most critical indicators of your process’s success. Effective DM meetings ensure that you and your team can deliver agreed products of agreed quality on time to customers, signifying that the trains are running on time. When this happens, you have not only succeeded as a team but also demonstrated effective leadership.
The DM meeting provides an ideal setting to practice servant leadership. As a leader, your role is to build a winning team by creating a fail-safe learning environment. This involves being a teacher and coach, delegating ownership and accountability within the team. The DM meeting allows you to focus on key indicators that are transparently delegated within the team, facilitating straightforward follow-up processes and collaborative problem-solving efforts. This structured environment promotes teamwork and accountability, giving you a unique opportunity to lead by example and support your team’s development.
A second crucial aspect of the DM mindset is its connection to corporate culture. Most organizations define their desired culture through statements around mission, objectives, values, and behaviors. Common themes include customer focus, quality, integrity, ownership, and continuous improvement. DM meetings provide a practical setting for these high-level ideals to manifest in daily corporate behaviors. Ownership of critical metrics and related problem-solving is delegated to the lowest level possible, where employees directly engage with processes. This decentralization fosters a culture of accountability and continuous improvement, with DM meetings serving as a platform for leaders to coach their teams in problem-solving.
Having the right DM mindset is paramount when discussing Business Performance Integrity (BPI). Delivering on promises related to the company’s Annual Operating Plan (AOP) involves cascading top-level corporate KPIs down to lower-level DM board KPIs. The DM visual process ensures transparency and provides an opportunity for timely reactions and course corrections. This alignment between DM practices and corporate goals fosters a culture of continuous improvement and accountability, integral to BPI. By embedding these behaviors into the DM process, organizations can drive the desired corporate culture and ensure operational excellence.
The final aspect of the DM mindset involves empowering your team in a healthy way. Situational Leadership®, developed by Blanchard and Hersey, emphasizes adapting your leadership style to meet the unique needs of each situation or task. This approach is not one-size-fits-all and depends on factors such as team tenure and experience with the DM process. To foster learning and growth, leaders must encourage creativity and experimentation within their teams. This spirit of continuous improvement requires leaders to align with their teams, striving for autonomy while maintaining guidance and support.
The DM mindset is a critical component of effective leadership and operational success. By leveraging DM meetings to practice servant leadership, connect to corporate culture, uphold BPI principles, and empower teams through Situational Leadership®, leaders can drive continuous improvement and build high-performing teams. The structured yet flexible nature of DM meetings provides a unique platform for these efforts, ensuring that both leaders and team members can grow and succeed together. Regularly reflecting on and adapting the DM mindset helps maintain its relevance and effectiveness, ultimately contributing to sustained organizational performance and integrity.
Chapter 12: Your DM
The objective of this second module has been to provide you with foundational knowledge and insights into the Daily Management (DM) process. We have comprehensively covered the Why, What, and How of DM, including an introduction to metrics, various types of boards, stakeholder mapping, the setup of the DM process, DM meeting guidance, and softer topics around culture, leadership, and mindset.
During the first month of this program, you had the opportunity to reflect on the DM setup within your organization. This period allowed you to establish a baseline or Current State and potentially introduce some initial changes. Armed with a wealth of DM theory, real-life cases, and practical exercises, you are now equipped to further refine and enhance your team’s DM process. The goal is to ensure that your DM system is well-connected both vertically and horizontally within your organization, promoting seamless integration and improved performance.
To effectively engage in continuous improvement, it is recommended to use the Plan-Do-Check-Act (PDCA) approach, also known as the Deming Cycle. This structured method for continuous improvement involves a four-step cycle:
Plan: Define the desired outcome or new DM functionality and develop a detailed improvement plan. This step involves setting clear objectives, identifying the necessary resources, and outlining the steps needed to achieve the desired results.
Do: Implement the planned improvement on a small scale. This allows you to test the changes in a controlled environment, minimizing risks and making it easier to manage any unforeseen issues.
Check: Analyze the results of the implementation to determine if the desired outcome was achieved. This involves collecting data, comparing the actual results to the expected outcomes, and identifying any discrepancies.
Act: Based on the analysis, either standardize the improvement if it was successful or adjust the plan and try again. This step ensures that only effective improvements are integrated into the standard processes, fostering a culture of data-driven decision-making.
The cyclical nature of the PDCA approach allows for ongoing refinement and ensures that improvements are based on concrete data rather than assumptions. By continuously cycling through these steps, you can systematically enhance your DM process, making it more effective and resilient over time.
As you prepare for the next workshop (WDP3), it is essential to consolidate the outcomes of your PDCA experiments so far. This preparation will involve gathering data, documenting the results, and reflecting on the successes and challenges encountered during the implementation phase. During the upcoming workshop, we will reflect on these outcomes, providing further insights into DM and its connection to effective problem-solving.
The journey through this module has equipped you with the tools and knowledge necessary to establish a robust DM process within your organization. By applying the PDCA approach, you can engage in continuous improvement, ensuring that your DM system evolves to meet the changing needs of your business. The next workshop will build on these foundations, offering deeper insights into DM and problem-solving, and helping you to further integrate these practices into your organizational culture. Regular reflection and adaptation will be key to maintaining the relevance and effectiveness of your DM process, ultimately driving sustained business performance and integrity.
Curriculum
Business Performance Integrity – Workshop 2 – Daily Management
- What is DM
- Why DM
- How DM
- DM Metrics
- Board Basics
- Other Boards
- Stakeholder Mapping
- Organizing DM
- Stage Setting
- DM Meeting
- DM Mindset
- Your DM
Distance Learning
Introduction
Welcome to Appleton Greene and thank you for enrolling on the Business Performance Integrity corporate training program. You will be learning through our unique facilitation via distance-learning method, which will enable you to practically implement everything that you learn academically. The methods and materials used in your program have been designed and developed to ensure that you derive the maximum benefits and enjoyment possible. We hope that you find the program challenging and fun to do. However, if you have never been a distance-learner before, you may be experiencing some trepidation at the task before you. So we will get you started by giving you some basic information and guidance on how you can make the best use of the modules, how you should manage the materials and what you should be doing as you work through them. This guide is designed to point you in the right direction and help you to become an effective distance-learner. Take a few hours or so to study this guide and your guide to tutorial support for students, while making notes, before you start to study in earnest.
Study environment
You will need to locate a quiet and private place to study, preferably a room where you can easily be isolated from external disturbances or distractions. Make sure the room is well-lit and incorporates a relaxed, pleasant feel. If you can spoil yourself within your study environment, you will have much more of a chance to ensure that you are always in the right frame of mind when you do devote time to study. For example, a nice fire, the ability to play soft soothing background music, soft but effective lighting, perhaps a nice view if possible and a good size desk with a comfortable chair. Make sure that your family know when you are studying and understand your study rules. Your study environment is very important. The ideal situation, if at all possible, is to have a separate study, which can be devoted to you. If this is not possible then you will need to pay a lot more attention to developing and managing your study schedule, because it will affect other people as well as yourself. The better your study environment, the more productive you will be.
Study tools & rules
Try and make sure that your study tools are sufficient and in good working order. You will need to have access to a computer, scanner and printer, with access to the internet. You will need a very comfortable chair, which supports your lower back, and you will need a good filing system. It can be very frustrating if you are spending valuable study time trying to fix study tools that are unreliable, or unsuitable for the task. Make sure that your study tools are up to date. You will also need to consider some study rules. Some of these rules will apply to you and will be intended to help you to be more disciplined about when and how you study. This distance-learning guide will help you and after you have read it you can put some thought into what your study rules should be. You will also need to negotiate some study rules for your family, friends or anyone who lives with you. They too will need to be disciplined in order to ensure that they can support you while you study. It is important to ensure that your family and friends are an integral part of your study team. Having their support and encouragement can prove to be a crucial contribution to your successful completion of the program. Involve them in as much as you can.
Successful distance-learning
Distance-learners are freed from the necessity of attending regular classes or workshops, since they can study in their own way, at their own pace and for their own purposes. But unlike traditional internal training courses, it is the student’s responsibility, with a distance-learning program, to ensure that they manage their own study contribution. This requires strong self-discipline and self-motivation skills and there must be a clear will to succeed. Those students who are used to managing themselves, are good at managing others and who enjoy working in isolation, are more likely to be good distance-learners. It is also important to be aware of the main reasons why you are studying and of the main objectives that you are hoping to achieve as a result. You will need to remind yourself of these objectives at times when you need to motivate yourself. Never lose sight of your long-term goals and your short-term objectives. There is nobody available here to pamper you, or to look after you, or to spoon-feed you with information, so you will need to find ways to encourage and appreciate yourself while you are studying. Make sure that you chart your study progress, so that you can be sure of your achievements and re-evaluate your goals and objectives regularly.
Self-assessment
Appleton Greene training programs are in all cases post-graduate programs. Consequently, you should already have obtained a business-related degree and be an experienced learner. You should therefore already be aware of your study strengths and weaknesses. For example, which time of the day are you at your most productive? Are you a lark or an owl? What study methods do you respond to the most? Are you a consistent learner? How do you discipline yourself? How do you ensure that you enjoy yourself while studying? It is important to understand yourself as a learner and so some self-assessment early on will be necessary if you are to apply yourself correctly. Perform a SWOT analysis on yourself as a student. List your internal strengths and weaknesses as a student and your external opportunities and threats. This will help you later on when you are creating a study plan. You can then incorporate features within your study plan that can ensure that you are playing to your strengths, while compensating for your weaknesses. You can also ensure that you make the most of your opportunities, while avoiding the potential threats to your success.
Accepting responsibility as a student
Training programs invariably require a significant investment, both in terms of what they cost and in the time that you need to contribute to study and the responsibility for successful completion of training programs rests entirely with the student. This is never more apparent than when a student is learning via distance-learning. Accepting responsibility as a student is an important step towards ensuring that you can successfully complete your training program. It is easy to instantly blame other people or factors when things go wrong. But the fact of the matter is that if a failure is your failure, then you have the power to do something about it, it is entirely in your own hands. If it is always someone else’s failure, then you are powerless to do anything about it. All students study in entirely different ways, this is because we are all individuals and what is right for one student, is not necessarily right for another. In order to succeed, you will have to accept personal responsibility for finding a way to plan, implement and manage a personal study plan that works for you. If you do not succeed, you only have yourself to blame.
Planning
By far the most critical contribution to stress, is the feeling of not being in control. In the absence of planning we tend to be reactive and can stumble from pillar to post in the hope that things will turn out fine in the end. Invariably they don’t! In order to be in control, we need to have firm ideas about how and when we want to do things. We also need to consider as many possible eventualities as we can, so that we are prepared for them when they happen. Prescriptive Change, is far easier to manage and control, than Emergent Change. The same is true with distance-learning. It is much easier and much more enjoyable, if you feel that you are in control and that things are going to plan. Even when things do go wrong, you are prepared for them and can act accordingly without any unnecessary stress. It is important therefore that you do take time to plan your studies properly.
Management
Once you have developed a clear study plan, it is of equal importance to ensure that you manage the implementation of it. Most of us usually enjoy planning, but it is usually during implementation when things go wrong. Targets are not met and we do not understand why. Sometimes we do not even know if targets are being met. It is not enough for us to conclude that the study plan just failed. If it is failing, you will need to understand what you can do about it. Similarly if your study plan is succeeding, it is still important to understand why, so that you can improve upon your success. You therefore need to have guidelines for self-assessment so that you can be consistent with performance improvement throughout the program. If you manage things correctly, then your performance should constantly improve throughout the program.
Study objectives & tasks
The first place to start is developing your program objectives. These should feature your reasons for undertaking the training program in order of priority. Keep them succinct and to the point in order to avoid confusion. Do not just write the first things that come into your head because they are likely to be too similar to each other. Make a list of possible departmental headings, such as: Customer Service; E-business; Finance; Globalization; Human Resources; Technology; Legal; Management; Marketing and Production. Then brainstorm for ideas by listing as many things that you want to achieve under each heading and later re-arrange these things in order of priority. Finally, select the top item from each department heading and choose these as your program objectives. Try and restrict yourself to five because it will enable you to focus clearly. It is likely that the other things that you listed will be achieved if each of the top objectives are achieved. If this does not prove to be the case, then simply work through the process again.
Study forecast
As a guide, the Appleton Greene Business Performance Integrity corporate training program should take 12-18 months to complete, depending upon your availability and current commitments. The reason why there is such a variance in time estimates is because every student is an individual, with differing productivity levels and different commitments. These differentiations are then exaggerated by the fact that this is a distance-learning program, which incorporates the practical integration of academic theory as an as a part of the training program. Consequently all of the project studies are real, which means that important decisions and compromises need to be made. You will want to get things right and will need to be patient with your expectations in order to ensure that they are. We would always recommend that you are prudent with your own task and time forecasts, but you still need to develop them and have a clear indication of what are realistic expectations in your case. With reference to your time planning: consider the time that you can realistically dedicate towards study with the program every week; calculate how long it should take you to complete the program, using the guidelines featured here; then break the program down into logical modules and allocate a suitable proportion of time to each of them, these will be your milestones; you can create a time plan by using a spreadsheet on your computer, or a personal organizer such as MS Outlook, you could also use a financial forecasting software; break your time forecasts down into manageable chunks of time, the more specific you can be, the more productive and accurate your time management will be; finally, use formulas where possible to do your time calculations for you, because this will help later on when your forecasts need to change in line with actual performance. With reference to your task planning: refer to your list of tasks that need to be undertaken in order to achieve your program objectives; with reference to your time plan, calculate when each task should be implemented; remember that you are not estimating when your objectives will be achieved, but when you will need to focus upon implementing the corresponding tasks; you also need to ensure that each task is implemented in conjunction with the associated training modules which are relevant; then break each single task down into a list of specific to do’s, say approximately ten to do’s for each task and enter these into your study plan; once again you could use MS Outlook to incorporate both your time and task planning and this could constitute your study plan; you could also use a project management software like MS Project. You should now have a clear and realistic forecast detailing when you can expect to be able to do something about undertaking the tasks to achieve your program objectives.
Performance management
It is one thing to develop your study forecast, it is quite another to monitor your progress. Ultimately it is less important whether you achieve your original study forecast and more important that you update it so that it constantly remains realistic in line with your performance. As you begin to work through the program, you will begin to have more of an idea about your own personal performance and productivity levels as a distance-learner. Once you have completed your first study module, you should re-evaluate your study forecast for both time and tasks, so that they reflect your actual performance level achieved. In order to achieve this you must first time yourself while training by using an alarm clock. Set the alarm for hourly intervals and make a note of how far you have come within that time. You can then make a note of your actual performance on your study plan and then compare your performance against your forecast. Then consider the reasons that have contributed towards your performance level, whether they are positive or negative and make a considered adjustment to your future forecasts as a result. Given time, you should start achieving your forecasts regularly.
With reference to time management: time yourself while you are studying and make a note of the actual time taken in your study plan; consider your successes with time-efficiency and the reasons for the success in each case and take this into consideration when reviewing future time planning; consider your failures with time-efficiency and the reasons for the failures in each case and take this into consideration when reviewing future time planning; re-evaluate your study forecast in relation to time planning for the remainder of your training program to ensure that you continue to be realistic about your time expectations. You need to be consistent with your time management, otherwise you will never complete your studies. This will either be because you are not contributing enough time to your studies, or you will become less efficient with the time that you do allocate to your studies. Remember, if you are not in control of your studies, they can just become yet another cause of stress for you.
With reference to your task management: time yourself while you are studying and make a note of the actual tasks that you have undertaken in your study plan; consider your successes with task-efficiency and the reasons for the success in each case; take this into consideration when reviewing future task planning; consider your failures with task-efficiency and the reasons for the failures in each case and take this into consideration when reviewing future task planning; re-evaluate your study forecast in relation to task planning for the remainder of your training program to ensure that you continue to be realistic about your task expectations. You need to be consistent with your task management, otherwise you will never know whether you are achieving your program objectives or not.
Keeping in touch
You will have access to qualified and experienced professors and tutors who are responsible for providing tutorial support for your particular training program. So don’t be shy about letting them know how you are getting on. We keep electronic records of all tutorial support emails so that professors and tutors can review previous correspondence before considering an individual response. It also means that there is a record of all communications between you and your professors and tutors and this helps to avoid any unnecessary duplication, misunderstanding, or misinterpretation. If you have a problem relating to the program, share it with them via email. It is likely that they have come across the same problem before and are usually able to make helpful suggestions and steer you in the right direction. To learn more about when and how to use tutorial support, please refer to the Tutorial Support section of this student information guide. This will help you to ensure that you are making the most of tutorial support that is available to you and will ultimately contribute towards your success and enjoyment with your training program.
Work colleagues and family
You should certainly discuss your program study progress with your colleagues, friends and your family. Appleton Greene training programs are very practical. They require you to seek information from other people, to plan, develop and implement processes with other people and to achieve feedback from other people in relation to viability and productivity. You will therefore have plenty of opportunities to test your ideas and enlist the views of others. People tend to be sympathetic towards distance-learners, so don’t bottle it all up in yourself. Get out there and share it! It is also likely that your family and colleagues are going to benefit from your labors with the program, so they are likely to be much more interested in being involved than you might think. Be bold about delegating work to those who might benefit themselves. This is a great way to achieve understanding and commitment from people who you may later rely upon for process implementation. Share your experiences with your friends and family.
Making it relevant
The key to successful learning is to make it relevant to your own individual circumstances. At all times you should be trying to make bridges between the content of the program and your own situation. Whether you achieve this through quiet reflection or through interactive discussion with your colleagues, client partners or your family, remember that it is the most important and rewarding aspect of translating your studies into real self-improvement. You should be clear about how you want the program to benefit you. This involves setting clear study objectives in relation to the content of the course in terms of understanding, concepts, completing research or reviewing activities and relating the content of the modules to your own situation. Your objectives may understandably change as you work through the program, in which case you should enter the revised objectives on your study plan so that you have a permanent reminder of what you are trying to achieve, when and why.
Distance-learning check-list
Prepare your study environment, your study tools and rules.
Undertake detailed self-assessment in terms of your ability as a learner.
Create a format for your study plan.
Consider your study objectives and tasks.
Create a study forecast.
Assess your study performance.
Re-evaluate your study forecast.
Be consistent when managing your study plan.
Use your Appleton Greene Certified Learning Provider (CLP) for tutorial support.
Make sure you keep in touch with those around you.
Tutorial Support
Programs
Appleton Greene uses standard and bespoke corporate training programs as vessels to transfer business process improvement knowledge into the heart of our clients’ organizations. Each individual program focuses upon the implementation of a specific business process, which enables clients to easily quantify their return on investment. There are hundreds of established Appleton Greene corporate training products now available to clients within customer services, e-business, finance, globalization, human resources, information technology, legal, management, marketing and production. It does not matter whether a client’s employees are located within one office, or an unlimited number of international offices, we can still bring them together to learn and implement specific business processes collectively. Our approach to global localization enables us to provide clients with a truly international service with that all important personal touch. Appleton Greene corporate training programs can be provided virtually or locally and they are all unique in that they individually focus upon a specific business function. They are implemented over a sustainable period of time and professional support is consistently provided by qualified learning providers and specialist consultants.
Support available
You will have a designated Certified Learning Provider (CLP) and an Accredited Consultant and we encourage you to communicate with them as much as possible. In all cases tutorial support is provided online because we can then keep a record of all communications to ensure that tutorial support remains consistent. You would also be forwarding your work to the tutorial support unit for evaluation and assessment. You will receive individual feedback on all of the work that you undertake on a one-to-one basis, together with specific recommendations for anything that may need to be changed in order to achieve a pass with merit or a pass with distinction and you then have as many opportunities as you may need to re-submit project studies until they meet with the required standard. Consequently the only reason that you should really fail (CLP) is if you do not do the work. It makes no difference to us whether a student takes 12 months or 18 months to complete the program, what matters is that in all cases the same quality standard will have been achieved.
Support Process
Please forward all of your future emails to the designated (CLP) Tutorial Support Unit email address that has been provided and please do not duplicate or copy your emails to other AGC email accounts as this will just cause unnecessary administration. Please note that emails are always answered as quickly as possible but you will need to allow a period of up to 20 business days for responses to general tutorial support emails during busy periods, because emails are answered strictly within the order in which they are received. You will also need to allow a period of up to 30 business days for the evaluation and assessment of project studies. This does not include weekends or public holidays. Please therefore kindly allow for this within your time planning. All communications are managed online via email because it enables tutorial service support managers to review other communications which have been received before responding and it ensures that there is a copy of all communications retained on file for future reference. All communications will be stored within your personal (CLP) study file here at Appleton Greene throughout your designated study period. If you need any assistance or clarification at any time, please do not hesitate to contact us by forwarding an email and remember that we are here to help. If you have any questions, please list and number your questions succinctly and you can then be sure of receiving specific answers to each and every query.
Time Management
It takes approximately 1 Year to complete the Business Performance Integrity corporate training program, incorporating 12 x 6-hour monthly workshops. Each student will also need to contribute approximately 4 hours per week over 1 Year of their personal time. Students can study from home or work at their own pace and are responsible for managing their own study plan. There are no formal examinations and students are evaluated and assessed based upon their project study submissions, together with the quality of their internal analysis and supporting documents. They can contribute more time towards study when they have the time to do so and can contribute less time when they are busy. All students tend to be in full time employment while studying and the Business Performance Integrity program is purposely designed to accommodate this, so there is plenty of flexibility in terms of time management. It makes no difference to us at Appleton Greene, whether individuals take 12-18 months to complete this program. What matters is that in all cases the same standard of quality will have been achieved with the standard and bespoke programs that have been developed.
Distance Learning Guide
The distance learning guide should be your first port of call when starting your training program. It will help you when you are planning how and when to study, how to create the right environment and how to establish the right frame of mind. If you can lay the foundations properly during the planning stage, then it will contribute to your enjoyment and productivity while training later. The guide helps to change your lifestyle in order to accommodate time for study and to cultivate good study habits. It helps you to chart your progress so that you can measure your performance and achieve your goals. It explains the tools that you will need for study and how to make them work. It also explains how to translate academic theory into practical reality. Spend some time now working through your distance learning guide and make sure that you have firm foundations in place so that you can make the most of your distance learning program. There is no requirement for you to attend training workshops or classes at Appleton Greene offices. The entire program is undertaken online, program course manuals and project studies are administered via the Appleton Greene web site and via email, so you are able to study at your own pace and in the comfort of your own home or office as long as you have a computer and access to the internet.
How To Study
The how to study guide provides students with a clear understanding of the Appleton Greene facilitation via distance learning training methods and enables students to obtain a clear overview of the training program content. It enables students to understand the step-by-step training methods used by Appleton Greene and how course manuals are integrated with project studies. It explains the research and development that is required and the need to provide evidence and references to support your statements. It also enables students to understand precisely what will be required of them in order to achieve a pass with merit and a pass with distinction for individual project studies and provides useful guidance on how to be innovative and creative when developing your Unique Program Proposition (UPP).
Tutorial Support
Tutorial support for the Appleton Greene Business Performance Integrity corporate training program is provided online either through the Appleton Greene Client Support Portal (CSP), or via email. All tutorial support requests are facilitated by a designated Program Administration Manager (PAM). They are responsible for deciding which professor or tutor is the most appropriate option relating to the support required and then the tutorial support request is forwarded onto them. Once the professor or tutor has completed the tutorial support request and answered any questions that have been asked, this communication is then returned to the student via email by the designated Program Administration Manager (PAM). This enables all tutorial support, between students, professors and tutors, to be facilitated by the designated Program Administration Manager (PAM) efficiently and securely through the email account. You will therefore need to allow a period of up to 20 business days for responses to general support queries and up to 30 business days for the evaluation and assessment of project studies, because all tutorial support requests are answered strictly within the order in which they are received. This does not include weekends or public holidays. Consequently you need to put some thought into the management of your tutorial support procedure in order to ensure that your study plan is feasible and to obtain the maximum possible benefit from tutorial support during your period of study. Please retain copies of your tutorial support emails for future reference. Please ensure that ALL of your tutorial support emails are set out using the format as suggested within your guide to tutorial support. Your tutorial support emails need to be referenced clearly to the specific part of the course manual or project study which you are working on at any given time. You also need to list and number any questions that you would like to ask, up to a maximum of five questions within each tutorial support email. Remember the more specific you can be with your questions the more specific your answers will be too and this will help you to avoid any unnecessary misunderstanding, misinterpretation, or duplication. The guide to tutorial support is intended to help you to understand how and when to use support in order to ensure that you get the most out of your training program. Appleton Greene training programs are designed to enable you to do things for yourself. They provide you with a structure or a framework and we use tutorial support to facilitate students while they practically implement what they learn. In other words, we are enabling students to do things for themselves. The benefits of distance learning via facilitation are considerable and are much more sustainable in the long-term than traditional short-term knowledge sharing programs. Consequently you should learn how and when to use tutorial support so that you can maximize the benefits from your learning experience with Appleton Greene. This guide describes the purpose of each training function and how to use them and how to use tutorial support in relation to each aspect of the training program. It also provides useful tips and guidance with regard to best practice.
Tutorial Support Tips
Students are often unsure about how and when to use tutorial support with Appleton Greene. This Tip List will help you to understand more about how to achieve the most from using tutorial support. Refer to it regularly to ensure that you are continuing to use the service properly. Tutorial support is critical to the success of your training experience, but it is important to understand when and how to use it in order to maximize the benefit that you receive. It is no coincidence that those students who succeed are those that learn how to be positive, proactive and productive when using tutorial support.
Be positive and friendly with your tutorial support emails
Remember that if you forward an email to the tutorial support unit, you are dealing with real people. “Do unto others as you would expect others to do unto you”. If you are positive, complimentary and generally friendly in your emails, you will generate a similar response in return. This will be more enjoyable, productive and rewarding for you in the long-term.
Think about the impression that you want to create
Every time that you communicate, you create an impression, which can be either positive or negative, so put some thought into the impression that you want to create. Remember that copies of all tutorial support emails are stored electronically and tutors will always refer to prior correspondence before responding to any current emails. Over a period of time, a general opinion will be arrived at in relation to your character, attitude and ability. Try to manage your own frustrations, mood swings and temperament professionally, without involving the tutorial support team. Demonstrating frustration or a lack of patience is a weakness and will be interpreted as such. The good thing about communicating in writing, is that you will have the time to consider your content carefully, you can review it and proof-read it before sending your email to Appleton Greene and this should help you to communicate more professionally, consistently and to avoid any unnecessary knee-jerk reactions to individual situations as and when they may arise. Please also remember that the CLP Tutorial Support Unit will not just be responsible for evaluating and assessing the quality of your work, they will also be responsible for providing recommendations to other learning providers and to client contacts within the Appleton Greene global client network, so do be in control of your own emotions and try to create a good impression.
Remember that quality is preferred to quantity
Please remember that when you send an email to the tutorial support team, you are not using Twitter or Text Messaging. Try not to forward an email every time that you have a thought. This will not prove to be productive either for you or for the tutorial support team. Take time to prepare your communications properly, as if you were writing a professional letter to a business colleague and make a list of queries that you are likely to have and then incorporate them within one email, say once every month, so that the tutorial support team can understand more about context, application and your methodology for study. Get yourself into a consistent routine with your tutorial support requests and use the tutorial support template provided with ALL of your emails. The (CLP) Tutorial Support Unit will not spoon-feed you with information. They need to be able to evaluate and assess your tutorial support requests carefully and professionally.
Be specific about your questions in order to receive specific answers
Try not to write essays by thinking as you are writing tutorial support emails. The tutorial support unit can be unclear about what in fact you are asking, or what you are looking to achieve. Be specific about asking questions that you want answers to. Number your questions. You will then receive specific answers to each and every question. This is the main purpose of tutorial support via email.
Keep a record of your tutorial support emails
It is important that you keep a record of all tutorial support emails that are forwarded to you. You can then refer to them when necessary and it avoids any unnecessary duplication, misunderstanding, or misinterpretation.
Individual training workshops or telephone support
Please be advised that Appleton Greene does not provide separate or individual tutorial support meetings, workshops, or provide telephone support for individual students. Appleton Greene is an equal opportunities learning and service provider and we are therefore understandably bound to treat all students equally. We cannot therefore broker special financial or study arrangements with individual students regardless of the circumstances. All tutorial support is provided online and this enables Appleton Greene to keep a record of all communications between students, professors and tutors on file for future reference, in accordance with our quality management procedure and your terms and conditions of enrolment. All tutorial support is provided online via email because it enables us to have time to consider support content carefully, it ensures that you receive a considered and detailed response to your queries. You can number questions that you would like to ask, which relate to things that you do not understand or where clarification may be required. You can then be sure of receiving specific answers to each individual query. You will also then have a record of these communications and of all tutorial support, which has been provided to you. This makes tutorial support administration more productive by avoiding any unnecessary duplication, misunderstanding, or misinterpretation.
Tutorial Support Email Format
You should use this tutorial support format if you need to request clarification or assistance while studying with your training program. Please note that ALL of your tutorial support request emails should use the same format. You should therefore set up a standard email template, which you can then use as and when you need to. Emails that are forwarded to Appleton Greene, which do not use the following format, may be rejected and returned to you by the (CLP) Program Administration Manager. A detailed response will then be forwarded to you via email usually within 20 business days of receipt for general support queries and 30 business days for the evaluation and assessment of project studies. This does not include weekends or public holidays. Your tutorial support request, together with the corresponding TSU reply, will then be saved and stored within your electronic TSU file at Appleton Greene for future reference.
Subject line of your email
Please insert: Appleton Greene (CLP) Tutorial Support Request: (Your Full Name) (Date), within the subject line of your email.
Main body of your email
Please insert:
1. Appleton Greene Certified Learning Provider (CLP) Tutorial Support Request
2. Your Full Name
3. Date of TS request
4. Preferred email address
5. Backup email address
6. Course manual page name or number (reference)
7. Project study page name or number (reference)
Subject of enquiry
Please insert a maximum of 50 words (please be succinct)
Briefly outline the subject matter of your inquiry, or what your questions relate to.
Question 1
Maximum of 50 words (please be succinct)
Maximum of 50 words (please be succinct)
Question 3
Maximum of 50 words (please be succinct)
Question 4
Maximum of 50 words (please be succinct)
Question 5
Maximum of 50 words (please be succinct)
Please note that a maximum of 5 questions is permitted with each individual tutorial support request email.
Procedure
* List the questions that you want to ask first, then re-arrange them in order of priority. Make sure that you reference them, where necessary, to the course manuals or project studies.
* Make sure that you are specific about your questions and number them. Try to plan the content within your emails to make sure that it is relevant.
* Make sure that your tutorial support emails are set out correctly, using the Tutorial Support Email Format provided here.
* Save a copy of your email and incorporate the date sent after the subject title. Keep your tutorial support emails within the same file and in date order for easy reference.
* Allow up to 20 business days for a response to general tutorial support emails and up to 30 business days for the evaluation and assessment of project studies, because detailed individual responses will be made in all cases and tutorial support emails are answered strictly within the order in which they are received.
* Emails can and do get lost. So if you have not received a reply within the appropriate time, forward another copy or a reminder to the tutorial support unit to be sure that it has been received but do not forward reminders unless the appropriate time has elapsed.
* When you receive a reply, save it immediately featuring the date of receipt after the subject heading for easy reference. In most cases the tutorial support unit replies to your questions individually, so you will have a record of the questions that you asked as well as the answers offered. With project studies however, separate emails are usually forwarded by the tutorial support unit, so do keep a record of your own original emails as well.
* Remember to be positive and friendly in your emails. You are dealing with real people who will respond to the same things that you respond to.
* Try not to repeat questions that have already been asked in previous emails. If this happens the tutorial support unit will probably just refer you to the appropriate answers that have already been provided within previous emails.
* If you lose your tutorial support email records you can write to Appleton Greene to receive a copy of your tutorial support file, but a separate administration charge may be levied for this service.
How To Study
Your Certified Learning Provider (CLP) and Accredited Consultant can help you to plan a task list for getting started so that you can be clear about your direction and your priorities in relation to your training program. It is also a good way to introduce yourself to the tutorial support team.
Planning your study environment
Your study conditions are of great importance and will have a direct effect on how much you enjoy your training program. Consider how much space you will have, whether it is comfortable and private and whether you are likely to be disturbed. The study tools and facilities at your disposal are also important to the success of your distance-learning experience. Your tutorial support unit can help with useful tips and guidance, regardless of your starting position. It is important to get this right before you start working on your training program.
Planning your program objectives
It is important that you have a clear list of study objectives, in order of priority, before you start working on your training program. Your tutorial support unit can offer assistance here to ensure that your study objectives have been afforded due consideration and priority.
Planning how and when to study
Distance-learners are freed from the necessity of attending regular classes, since they can study in their own way, at their own pace and for their own purposes. This approach is designed to let you study efficiently away from the traditional classroom environment. It is important however, that you plan how and when to study, so that you are making the most of your natural attributes, strengths and opportunities. Your tutorial support unit can offer assistance and useful tips to ensure that you are playing to your strengths.
Planning your study tasks
You should have a clear understanding of the study tasks that you should be undertaking and the priority associated with each task. These tasks should also be integrated with your program objectives. The distance learning guide and the guide to tutorial support for students should help you here, but if you need any clarification or assistance, please contact your tutorial support unit.
Planning your time
You will need to allocate specific times during your calendar when you intend to study if you are to have a realistic chance of completing your program on time. You are responsible for planning and managing your own study time, so it is important that you are successful with this. Your tutorial support unit can help you with this if your time plan is not working.
Keeping in touch
Consistency is the key here. If you communicate too frequently in short bursts, or too infrequently with no pattern, then your management ability with your studies will be questioned, both by you and by your tutorial support unit. It is obvious when a student is in control and when one is not and this will depend how able you are at sticking with your study plan. Inconsistency invariably leads to in-completion.
Charting your progress
Your tutorial support team can help you to chart your own study progress. Refer to your distance learning guide for further details.
Making it work
To succeed, all that you will need to do is apply yourself to undertaking your training program and interpreting it correctly. Success or failure lies in your hands and your hands alone, so be sure that you have a strategy for making it work. Your Certified Learning Provider (CLP) and Accredited Consultant can guide you through the process of program planning, development and implementation.
Reading methods
Interpretation is often unique to the individual but it can be improved and even quantified by implementing consistent interpretation methods. Interpretation can be affected by outside interference such as family members, TV, or the Internet, or simply by other thoughts which are demanding priority in our minds. One thing that can improve our productivity is using recognized reading methods. This helps us to focus and to be more structured when reading information for reasons of importance, rather than relaxation.
Speed reading
When reading through course manuals for the first time, subconsciously set your reading speed to be just fast enough that you cannot dwell on individual words or tables. With practice, you should be able to read an A4 sheet of paper in one minute. You will not achieve much in the way of a detailed understanding, but your brain will retain a useful overview. This overview will be important later on and will enable you to keep individual issues in perspective with a more generic picture because speed reading appeals to the memory part of the brain. Do not worry about what you do or do not remember at this stage.
Content reading
Once you have speed read everything, you can then start work in earnest. You now need to read a particular section of your course manual thoroughly, by making detailed notes while you read. This process is called Content Reading and it will help to consolidate your understanding and interpretation of the information that has been provided.
Making structured notes on the course manuals
When you are content reading, you should be making detailed notes, which are both structured and informative. Make these notes in a MS Word document on your computer, because you can then amend and update these as and when you deem it to be necessary. List your notes under three headings: 1. Interpretation – 2. Questions – 3. Tasks. The purpose of the 1st section is to clarify your interpretation by writing it down. The purpose of the 2nd section is to list any questions that the issue raises for you. The purpose of the 3rd section is to list any tasks that you should undertake as a result. Anyone who has graduated with a business-related degree should already be familiar with this process.
Organizing structured notes separately
You should then transfer your notes to a separate study notebook, preferably one that enables easy referencing, such as a MS Word Document, a MS Excel Spreadsheet, a MS Access Database, or a personal organizer on your cell phone. Transferring your notes allows you to have the opportunity of cross-checking and verifying them, which assists considerably with understanding and interpretation. You will also find that the better you are at doing this, the more chance you will have of ensuring that you achieve your study objectives.
Question your understanding
Do challenge your understanding. Explain things to yourself in your own words by writing things down.
Clarifying your understanding
If you are at all unsure, forward an email to your tutorial support unit and they will help to clarify your understanding.
Question your interpretation
Do challenge your interpretation. Qualify your interpretation by writing it down.
Clarifying your interpretation
If you are at all unsure, forward an email to your tutorial support unit and they will help to clarify your interpretation.
Qualification Requirements
The student will need to successfully complete the project study and all of the exercises relating to the Business Performance Integrity corporate training program, achieving a pass with merit or distinction in each case, in order to qualify as an Accredited Business Performance Integrity Specialist (APTS). All monthly workshops need to be tried and tested within your company. These project studies can be completed in your own time and at your own pace and in the comfort of your own home or office. There are no formal examinations, assessment is based upon the successful completion of the project studies. They are called project studies because, unlike case studies, these projects are not theoretical, they incorporate real program processes that need to be properly researched and developed. The project studies assist us in measuring your understanding and interpretation of the training program and enable us to assess qualification merits. All of the project studies are based entirely upon the content within the training program and they enable you to integrate what you have learnt into your corporate training practice.
Business Performance Integrity – Grading Contribution
Project Study – Grading Contribution
Customer Service – 10%
E-business – 05%
Finance – 10%
Globalization – 10%
Human Resources – 10%
Information Technology – 10%
Legal – 05%
Management – 10%
Marketing – 10%
Production – 10%
Education – 05%
Logistics – 05%
TOTAL GRADING – 100%
Qualification grades
A mark of 90% = Pass with Distinction.
A mark of 75% = Pass with Merit.
A mark of less than 75% = Fail.
If you fail to achieve a mark of 75% with a project study, you will receive detailed feedback from the Certified Learning Provider (CLP) and/or Accredited Consultant, together with a list of tasks which you will need to complete, in order to ensure that your project study meets with the minimum quality standard that is required by Appleton Greene. You can then re-submit your project study for further evaluation and assessment. Indeed you can re-submit as many drafts of your project studies as you need to, until such a time as they eventually meet with the required standard by Appleton Greene, so you need not worry about this, it is all part of the learning process.
When marking project studies, Appleton Greene is looking for sufficient evidence of the following:
Pass with merit
A satisfactory level of program understanding
A satisfactory level of program interpretation
A satisfactory level of project study content presentation
A satisfactory level of Unique Program Proposition (UPP) quality
A satisfactory level of the practical integration of academic theory
Pass with distinction
An exceptional level of program understanding
An exceptional level of program interpretation
An exceptional level of project study content presentation
An exceptional level of Unique Program Proposition (UPP) quality
An exceptional level of the practical integration of academic theory
Preliminary Analysis
Online Article
PDCA (Plan Do Check Act)
By the Mind Tools Content Team
Imagine that your customer satisfaction score on a business ratings website has dipped. When you look at recent comments, you see that your customers are complaining about late delivery, and that products are being damaged in transit.
So, you decide to run a small pilot project for a month, using a new supplier to deliver your products to a sample set of customers. And you’re pleased to see that the feedback is positive. As a result, you decide to use the new supplier for all your orders in the future.
What you’ve just done is a single loop called the PDCA Cycle. This is an established tool for achieving continuous improvement in your business.
The PDCA approach was pioneered by Dr William Deming, and we’ve worked closely with The Deming Institute to produce this article. In it, we outline the key principles of PDCA, and explain when and how to put them into practice.
What Is PDCA?
In the 1950s, management consultant Dr William Edwards Deming developed a method of identifying why some products or processes don’t work as hoped. His approach has since become a popular strategy tool, used by many different types of organizations. It allows them to formulate theories about what needs to change, and then test them in a “continuous feedback loop.”
The Four Phases of the PDCA Cycle
With the PDCA cycle you can solve problems and implement solutions in a rigorous, methodical way. Let’s look at each of the four stages in turn:
1. Plan:
First, identify and understand your problem or opportunity. Perhaps the standard of a finished product isn’t high enough, or an aspect of your marketing process should be getting better results.
Explore the information available in full. Generate and screen ideas, and develop a robust implementation plan.
Be sure to state your success criteria and make them as measurable as possible. You’ll return to them later in the Check stage.
2. Do:
Once you’ve identified a potential solution, test it safely with a small-scale pilot project. This will show whether your proposed changes achieve the desired outcome – with minimal disruption to the rest of your operation if they don’t. For example, you could organize a trial within a department, in a limited geographical area, or with a particular demographic.
As you run the pilot project, gather data to show whether the change has worked or not. You’ll use this in the next stage.
3. Check:
Next, analyze your pilot project’s results against the criteria that you defined in Step 1, to assess whether your idea was a success.
If it wasn’t, return to Step 1. If it was, advance to Step 4.
You may decide to try out more changes, and repeat the Do and Check phases. But if your original plan definitely isn’t working, you’ll need to return to Step 1.
4. Act:
This is where you implement your solution. But remember that PDCA/PDSA is a loop, not a process with a beginning and end. Your improved process or product becomes the new baseline, but you continue to look for ways to make it even better.
The four stages of the cycle are illustrated in Figure 1, below:
When to Use PDCA
The PDCA/PDSA framework works well in all types of organizations. It can be used to improve any process or product, by breaking them down into smaller steps or development stages, and exploring ways to improve each one.
It’s particularly helpful for implementing Total Quality Management or Six Sigma initiatives, and for improving business processes generally.
However, going through the PDCA/PDSA cycle can be much slower than a straightforward, “gung ho” implementation. So, it might not be the appropriate approach for dealing with an urgent problem.
It also requires significant buy-in from team members, and offers fewer opportunities for radical innovation – which may be what your organization needs instead.
How to Use PDCA to Improve Personal Performance
While PDCA/PDSA is an effective business tool, you can also use it to improve your own performance:
First, Plan: Identify what’s holding you back personally, and how you want to progress. Look at the root causes of any issues, and set goals to overcome these obstacles.
Next, Do: When you’ve decided on your course of action, safely test different ways of getting the results that you want.
Then, Check: Review your progress regularly, adjust your behavior accordingly, and consider the consequences of your actions.
Finally, Act: Implement what’s working, continually refine what isn’t, and carry on the cycle of continuous improvement.
If you would like to read this article, please visit:
https://www.mindtools.com/as2l5i1/pdca-plan-do-check-act
Online Article
Leading vs Lagging Indicators: What’s The Difference?
By Stephen Watts
Key performance indicators (KPIs) are values that measure your organization’s success at meeting its objectives. KPIs provide insight into business conditions like:
• Predictability
• Early return on investment (ROI)
• Product quality
• And more
In practice, KPIs measure how a company will strategically grow.
However, behind every KPI is the implication that current conditions influence trends and inform predictions for future growth. Leading and lagging indicators are qualifiers that assess a business’s current state (lagging indicator) and predict future conditions (leading indicator), so companies can achieve accurate projections.
What are leading & lagging indicators?
Leading and lagging indicators help enterprise leaders understand business conditions and trends. They are metrics that inform managers that they are on track to meet their enterprise goals and objectives.
Leading indicator
Leading indicators are sometimes described as inputs. They define what actions are necessary to achieve your goals with measurable outcomes. They “lead” to successfully meeting overall business objectives, which is why they are called “leading”.
A leading indicator encourages business stakeholders to ask:
• What processes can I employ to achieve this goal to higher levels of success?
• What skills can the team improve to better achieve the desired outcome?
• What steps can be taken to speed up product development?
Leading indicators do this by providing benchmarks that, if met, will be indicative of meeting overall KPIs and objectives. Some examples of leading indicators for an enterprise business software company with an annual subscription fee might be:
• Percent of customers that sign up for two-year agreements
• Number of customers that renew software at or before mid-term alerts
• Number of customers that purchase software add-ons
Lagging indicator
If a leading indicator informs business leaders of how to produce desired results, a lagging indicator measures current production and performance. While a leading indicator is dynamic but difficult to measure, a lagging indicator is easy to measure but hard to change. They are opposites, and as such a lagging indicator is sometimes compared to an output metric.
A lagging indicator encourages business stakeholders to ask:
• How many people attended an event?
• How much product was produced?
• What response did it receive?
Lagging indicators measure output that’s already occurred to gain insight on future success. They do this by measuring things like:
• Profit
• Expenses
• Customer participation
• Renewal rates
• Revenue
How to use lagging indicators
Lagging indicators are always triggered by an event that has just occurred, and, in that sense, are a little more self-explanatory than leading indicators.
If you’re measuring the outcome of an event, product release, sales training program or what have you, you’re using lagging indicators to determine, in retrospect, who attended, what was produced, or how it was received by attendees.
Lagging indicators are best used in conjunction with leading indicators to determine trends and if outcomes were met. This can be made simple with the right technology infrastructure that compares leading and lagging indicators, offering insight.
How to use leading indicators
Leading indicators are trickier to measure than lagging indicators. That’s because they tend to be more abstract.
As mentioned, a leading indicator is a measure of where your business is going. For instance, if you stick to lagging measurements, like revenue, you may completely miss an important, but relatively small, segment of your market that is purchasing from another geographical location in which you don’t have a presence.
That’s where leading indicators enter the scene. By creating measurements like tracking individual purchases outside of certain zip codes or regions, you can learn where your company could potentially establish a new foothold.
That’s an insight you can’t understand by looking at overall revenue alone. When you have a question that asks you to look into future growth and success, it’s the right time to use a leading indicator.
If you would like to read this article in full, please visit:
https://www.bmc.com/blogs/leading-vs-lagging-indicators/
Online Paper
Daily Management (DM) as a Key Driver of Process Improvement, Consistency and Reliability at the Level of the Work
By Henry Ford Health
Summary: DM is the key accountability sub-system for managers to continually improve their operations in a structured and visible manner with their teams by reflecting on metrics of select processes that are a priority but have failed in the prior 24 hour cycle.
Daily Management as a Management
System Numerous work and management systems have been created over the past 13 years to sustain our Lean culture of continuous improvement in these Henry Ford Laboratories, whose credo is “relentlessly pursuing perfection.” These include 4 key management subsystems that create structure for consistent behaviors that enable continuous improvement and create process stability at the level of the work. These are diagrammed in the figure below as 1) Team Leader System; 2) Deviation Management System; 3) Improvement Management System (PDCA); and 4) Daily Management System. Each is integral to a highly functioning Lean system. Note, the Tool Kit is only consistently functional in the hands of trained carpenters who follow the Lean discipline defined by the systems to solve problems.
In any organization, progress toward goal achievement can come from above through major executivedirected change initiatives and technologic innovations, but progress toward daily goal achievement must come from below at the level of the gemba by managers and teams who are empowered and accountable to understand and improve the quality of their work product or service. Just how this is accomplished at the level of the work and aligned with the organization’s goals in a Lean culture is the subject of this piece.
The simplest definition of DM was offered by Liker and Convis in their book The Toyota Way to Lean Leadership (2012) as “the process of checking actual versus target results and engaging the team in creative problem solving.” But their reflection that “the goal is as much to develop people as to get the results” is key in understanding how DM reinforces the cultural expectation of continuous improvement at the ground level of any organization. The concept and practice of DM may, therefore, be viewed differently based on maturity levels of Lean adoption, so I will frame this discussion along several lines as DM is a management subsystem for leaders, managers, and the workforce to promote engagement and continuous improvements aligned with corporate goals.
The prerequisites are a trained workforce who understands the goals and rules of continuous improvement and the establishment of a blame-free culture that enables work defects to be consistently identified and analyzed as the basis for daily improvement at the level of the work site. The last element is a dedicated and aligned manager without whom the DM process may die on the vine.
Function of DM
The DM subsystem visually holds managers and teams responsible for executing their piece of the strategic plan at the local level by providing structure and discipline for managers and work teams to link work group performance to departmental metrics and organizational objectives. The business systems of advanced and successful Lean corporations like Toyota and Danaher rely on DM to make visible each team’s contribution, success, or failure in achieving corporate goals so that adjustments and countermeasure solutions derived from sound problem solving can be addressed sooner and in a locally meaningful way.
One of the most important structures for continuous improvement from the base of the organization is a daily visual management system. For example, the Toyota Floor Management Development System focuses the current performance of the work group relative to expected targets organized by major key performance indicator categories of Safety, Quality, Productivity (delivery, service), Cost, and People (human resource development, engagement). The DM boards of Danaher Corporation’s business entities revolve around Safety, Quality, Delivery, Inventory, and Productivity. Through our interaction with Danaher, we evolved the DM system of the Henry Ford Production System laboratories to focus process improvements in the categories of Quality, Time (delivery), Inventory (work in process, batch size, instrument or equipment availability), Productivity (may capture elements related to cost), and Safety. These DM measures are represented by the acronym QTIPS.
What DM Is
DM is a powerful visual management subsystem that provides managers and teams with local structure, alignment, focus, and accountability for continuous improvements of their group’s product or service. When structured by sequential workstations along the path of workflow, DM serves to make visible defective work design resulting in substandard quality. In this fashion, DM also serves to break down barriers of control and isolation that preclude the achievement of continuous flow that is so vital to Lean success.
What DM Is Not
DM is not a display of stable production or operational efficiency numbers or a posting of weekly collected data measures. DM is a daily problem-solving tool for managers and teams to identify daily countermeasures and opportunities to eliminate work problems that miss local area targets through datadriven problem solving. Therefore, philosophically, DM measures should not be fixed but should change as teams identify opportunities, understand root causes, improve, and bring the situation under control to stability. The visual trend of “red” days transitioning to “green” is the simplistic signal to all that strategically aligned goals have been achieved in a stable work system. This simple color- coded designation of a successful “green” day allows all to visually know immediately at a glance whether the operation is stable or requires intervention, a “red day.”
DM Metrics
Before jumping into DM, consideration should be given to what critical process is failing and then what measure within a 24 hour period would most accurately reflect the performance failure(s) so that root causes can be assessed. The nature of the measure is important, as described below, as is participation by all team members in the process of identifying incidents, root causes, interventions taken to correct and finally process changes adopted by the group that improves the condition as reflected in the daily measure.
If you would like to read this paper in full, please visit:
Course Manuals 1-12
Course Manual 1: What is DM
Daily Management (DM) is an organised approach that ensures business processes run smoothly, meet performance standards, and align with strategic goals. To understand DM, we can use the analogy of a large European train station where a central dashboard displays the status of trains—whether they are on time or delayed. This information is vital for passengers, station staff, management, and train operators, just as DM is essential for ensuring processes within a business run efficiently and meet customer demands.
In the “Running the Business (Perform)” space, Daily Management (DM) plays a crucial role in overseeing and controlling business processes to ensure they operate efficiently and meet customer demands consistently. It involves the continuous monitoring of key performance indicators (KPIs) to track the timeliness and completeness of deliveries, ensuring that operational targets are met. This aspect of DM focuses on maintaining the stability and reliability of current operations, addressing any deviations swiftly to prevent disruptions. On the other hand, in the “Change the Business (Transform)” space, DM is instrumental in fostering innovation and driving the development of next-generation processes and capabilities.
This involves strategic initiatives aimed at enhancing the organization’s competitive edge, much like the advancement of high-speed rail systems in transportation. Here, DM supports the planning, execution, and tracking of transformational projects, ensuring they align with strategic goals and progress as planned. By balancing these dual focuses—maintaining operational excellence while enabling strategic growth—DM ensures that the organization not only sustains its current performance but also adapts and evolves to meet future challenges and opportunities.
The 3-Tool System in DM
A core aspect of Daily Management (DM) is the 3-tool system, encompassing performance monitoring tools, problem-solving tools, and continuous improvement tools. This comprehensive system is essential for maintaining the integrity and stability of the business’s process foundation. Performance monitoring tools enable the constant tracking of key performance indicators (KPIs), providing real-time insights into operational performance. When these KPIs indicate that performance is falling behind set standards, it triggers the use of problem-solving tools.
These tools facilitate ‘fit-for-purpose’ problem-solving techniques, tailored to address specific issues efficiently and effectively. By identifying root causes and implementing corrective actions promptly, the business can return to standard performance levels. Continuous improvement tools further support this system by driving ongoing enhancements, ensuring that processes are not just maintained but are also incrementally improved over time. This integrated approach allows the business to consistently meet its commitments, enhancing reliability and fostering a culture of excellence and continuous growth.
Moreover, DM drives incremental process improvements by continuously raising standards. Strategy Deployment plays a crucial role in this context, helping build new processes and capabilities to stay ahead of the competition. As these processes mature, they are integrated into the standard DM framework, ensuring they benefit from ongoing monitoring and improvement.
Time Allocation: Breakthroughs vs. Daily Management
Time allocation between breakthroughs and DM varies across organizational levels. In a mature performance management and continuous improvement culture, all associates participate in DM and continuous improvement (Kaizen) to some extent. Frontline associates primarily focus on executing processes and ensuring they run smoothly. They may also be involved in breakthroughs if their processes are targeted for significant improvements.
As associates move up the organizational hierarchy, their involvement in breakthroughs increases. Mid-level managers balance maintaining current process performance with leading improvement initiatives. Top management, ideally, spends up to 70% of their time on strategic initiatives, driving long-term growth and competitive advantage. This strategic focus is possible because of the robust DM systems built at lower levels, enabling top management to delegate daily operational oversight.
Maturity in Daily Management
Developing Daily Management (DM) capability is crucial for establishing a robust foundation of continuous improvement within an organization. When DM practices are mature, teams are equipped with the skills and tools necessary to independently identify and resolve performance issues. This self-sufficiency reduces the need for constant oversight from higher management, allowing for more efficient and agile operations. Creating a culture that values DM and continuous improvement involves comprehensive training programs that empower employees at all levels.
By fostering an environment where every team member is actively engaged in DM practices, organizations ensure that improvement initiatives are driven from the ground up. This empowerment leads to greater ownership of processes, higher levels of accountability, and a proactive approach to problem-solving. The result is a dynamic and resilient organization where continuous improvement is embedded in the daily routines of all employees, driving sustained excellence and adaptability in an ever-changing business landscape.
Effective DM practices should cascade throughout the organization. Each level must have the necessary tools, training, and support to implement DM effectively. This cascading effect ensures that performance management is proactive and continuous, leading to sustained improvements and operational excellence.
Defining Daily Management (DM)
Daily Management (DM) can be defined as a collaborative, visual process that is conducted at regular intervals to maintain process discipline and drive improvements around the most critical performance metrics. This team-based approach ensures that all members are engaged and accountable for monitoring key indicators and identifying deviations from targets. The visual nature of DM, often utilizing dashboards and boards, makes it easy to track and communicate performance status, facilitating quick recognition of issues. Regular cadence, such as daily or weekly meetings, ensures that the process remains consistent and that any arising problems are addressed promptly.
Being process-oriented, DM focuses on the systematic management of business operations, ensuring that processes are running efficiently and effectively. It is also metric-driven, emphasizing the importance of using quantifiable data to guide decision-making and measure progress. When performance deviates from established targets, DM requires the team to employ structured problem-solving techniques, such as Root Cause Analysis (RCA) or the Plan-Do-Check-Act (PDCA) cycle, to identify underlying issues and implement corrective actions swiftly. This action-oriented and problem-solving characteristic of DM ensures that the organization can respond with urgency to performance issues, maintaining high standards and continuous improvement.
Regular DM meetings are held to review performance, discuss issues, and plan actions. These meetings are typically visual, utilizing dashboards and boards to display current KPIs and highlight deviations from targets. This visual approach helps the team quickly understand the current status and identify areas requiring attention.
Team Collaboration and Accountability
Daily Management (DM) fosters a collaborative environment where team members work together to achieve common goals, creating a cohesive and unified workforce. Regular meetings are a cornerstone of this approach, providing a dedicated platform for discussing performance metrics, sharing valuable insights, and coordinating necessary actions. These meetings facilitate open communication, ensuring that every team member is aware of current performance levels, challenges, and successes. Each team member is held accountable for specific metrics and actions, which ensures that responsibilities are clearly defined and understood.
This clear delineation of duties promotes a sense of ownership and accountability, as team members know exactly what is expected of them and can see how their contributions impact overall performance. Prompt follow-up actions are integral to this process, as they ensure that identified issues are addressed swiftly and effectively, preventing minor problems from escalating into significant obstacles. This structured approach to collaboration and accountability not only enhances performance but also builds a strong, supportive team culture where continuous improvement and mutual support are paramount.
Problem-Solving and Continuous Improvement
When metrics fall off track, the team engages in structured problem-solving to identify root causes and develop effective solutions. This systematic approach often involves techniques such as Root Cause Analysis (RCA), which helps to pinpoint the fundamental reasons behind performance deviations, and the Plan-Do-Check-Act (PDCA) cycle, a methodical process for testing and implementing improvements. The PDCA cycle starts with planning the necessary corrective actions, executing those plans on a small scale, checking the outcomes against expected results, and then acting to standardize successful strategies or revisit the plan if needed.
The focus of these problem-solving activities is on taking immediate and effective actions to address issues, ensuring that performance levels are swiftly brought back to standard. This proactive approach not only resolves current problems but also prevents future disruptions by stabilizing processes. By maintaining this vigilance and readiness to act, organizations can minimize operational interruptions and ensure continuous process stability, fostering an environment of ongoing improvement and reliability.
DM is not just about maintaining standards but also about continuously improving processes. Regular reviews and adjustments help the team raise the bar and achieve higher performance levels over time. This continuous improvement mindset ensures that processes evolve and improve, adapting to changing conditions and maintaining high performance standards.
The Role of DM in Organizational Hierarchy
Understanding how Daily Management (DM) fits into different organizational levels is crucial for its effective implementation and overall success. Frontline associates are deeply involved in DM as they are closest to the operational processes and directly influence daily performance outcomes. Their engagement in DM is essential because their activities, observations, and immediate actions significantly impact the efficiency and effectiveness of the processes they manage. These associates provide valuable insights into potential issues and areas for improvement, making their active participation critical.
Mid-level managers play a supervisory role, overseeing the DM practices carried out by frontline associates. They ensure that these practices are consistently applied and adhered to, fostering a standardized approach across different teams and departments. Additionally, mid-level managers analyze aggregated data from various sources to identify larger trends and issues that might not be visible at the operational level. They address these broader challenges by coordinating with other managers and developing strategic solutions that align with the organization’s goals. This hierarchical involvement ensures that DM is integrated at all levels, promoting a cohesive effort towards continuous improvement and operational excellence.
Top management primarily concentrates on strategic initiatives, such as long-term planning, growth opportunities, and innovation. However, their involvement in Daily Management (DM) is crucial for setting the tone and expectations across the organization. By actively participating in DM, top leaders demonstrate their commitment to process discipline and continuous improvement, which permeates throughout the company and reinforces its importance at all levels. They rely heavily on the robust DM practices established at the lower levels of the organization to ensure that day-to-day operations are managed effectively and efficiently. This reliance allows top management to delegate operational oversight, freeing up their time to focus on strategic planning and growth initiatives.
Maintaining this balance between operational focus and strategic oversight is key to sustaining a competitive edge and driving long-term success. While the frontline associates and mid-level managers handle the immediate operational challenges and continuous improvement efforts, top management can concentrate on steering the company towards future goals. This synergy ensures that while the organization is optimized for current performance, it is also well-positioned to capitalize on future opportunities and navigate potential challenges. By supporting and leveraging DM, top management helps create a resilient, adaptable organization that excels in both operational efficiency and strategic growth.
Building a Strong DM Culture
Building a strong Daily Management (DM) culture requires a concerted effort and commitment from all levels of the organization. It begins with leadership setting clear expectations about the importance and benefits of DM practices, ensuring that everyone understands how these practices contribute to overall business performance and success. Leaders must also provide the necessary resources, such as time, tools, and technology, to support effective DM implementation. This includes investing in robust performance monitoring systems, visual management tools, and problem-solving frameworks that facilitate DM activities.
Training and development programs are crucial in equipping associates with the skills and knowledge they need to effectively participate in DM. These programs should cover the fundamentals of DM, including how to track and analyze key performance indicators (KPIs), use visual management tools, and apply structured problem-solving techniques like Root Cause Analysis (RCA) and the Plan-Do-Check-Act (PDCA) cycle. Continuous training opportunities should be provided to keep employees updated on best practices and new methodologies. Additionally, creating a supportive environment where employees feel encouraged to engage in DM and contribute to continuous improvement efforts is essential. By fostering a culture that values and prioritizes DM, organizations can ensure that these practices are consistently applied, driving sustained operational excellence and long-term success.
Regular communication and feedback loops help reinforce the importance of DM. Celebrating successes and recognizing improvements foster a positive attitude towards continuous improvement. Over time, as DM becomes ingrained in the organizational culture, it drives a collective effort towards operational excellence and strategic achievement.
Visual Management in DM
Visual management is a cornerstone of effective DM. By using dashboards and visual boards, teams can easily track performance metrics and identify areas needing attention. These tools provide a clear, at-a-glance understanding of the current status, facilitating quick decision-making and problem-solving.
Visual tools should display key performance indicators prominently, with color codes to indicate whether metrics are on track (green) or off track (red). Trend charts show performance over time, helping teams understand patterns and predict future performance. Action logs and Pareto charts are also useful for tracking the progress of problem-solving efforts and identifying the most impactful issues to address.
The PDCA Cycle in DM
The Plan-Do-Check-Act (PDCA) cycle is integral to Daily Management (DM) and continuous improvement, providing a structured, iterative approach to problem-solving and process enhancement. This cyclical process helps teams systematically plan actions, implement them, evaluate the results, and act based on their findings, ensuring that improvements are not just one-time fixes but are continuously refined and enhanced over time.
Plan: The cycle begins with the planning phase, where the team identifies the problem or area for improvement, sets clear objectives, and develops a detailed plan to address the issue. This step involves thorough data gathering to understand the current state and the root causes of the problem. By defining specific, measurable goals, the team sets a clear direction for the improvement effort.
Do: In the implementation phase, the team puts the plan into action on a small scale to test its effectiveness. This controlled implementation allows the team to manage potential risks and make necessary adjustments based on initial feedback. It’s a critical step to ensure that the proposed solution works as intended without causing significant disruption.
Check: After implementing the plan, the team moves to the evaluation phase. Here, they analyze the results of the implementation, comparing actual performance against the expected outcomes. This analysis helps determine whether the plan was successful in addressing the problem and achieving the defined objectives. The team looks for variances and understands why they occurred, gathering insights that will inform future actions.
Act: Based on the analysis, the team decides the next steps. If the plan was successful, they proceed to implement it on a larger scale, institutionalizing the improvement across the relevant areas. If the plan did not achieve the desired outcomes, the team refines the plan based on the feedback and repeats the PDCA cycle. This iterative approach ensures that learning and improvement are ongoing processes, allowing for continuous refinement and enhancement of the solution.
The PDCA cycle embodies a proactive and systematic approach to problem-solving and continuous improvement. By repeatedly cycling through these steps, organizations can ensure that processes are consistently reviewed and enhanced, leading to sustained operational excellence and adaptability in a dynamic business environment. The iterative nature of the PDCA cycle helps embed a culture of continuous improvement within the organization, where teams are always striving to do better and make processes more efficient and effective.
Benefits of a Strong DM System
A robust DM system offers numerous benefits, including operational excellence, continuous improvement, and strategic agility. It ensures that day-to-day operations run smoothly, meeting performance standards and customer demands. By fostering a culture of continuous improvement, DM helps teams constantly look for ways to enhance performance and adapt to changing conditions.
Strategic agility is another significant benefit. With a strong DM foundation, organizations can respond quickly to new opportunities and challenges. This agility allows them to pursue breakthroughs and innovations while maintaining operational stability. Empowering associates and building a strong DM culture at all levels fosters accountability, operational excellence, and strategic agility, ultimately contributing to long-term success.
Daily Management (DM) is a comprehensive framework that supports both operational efficiency and strategic transformation. By integrating the 3-tool system and applying the PDCA cycle, organizations can maintain robust processes, drive continuous improvement, and achieve Business Performance Integrity. DM ensures that processes are not only running smoothly but are also continuously evolving to meet changing demands and stay competitive.
Case Study: Toyota’s Application of the PDCA Cycle
Toyota Motor Corporation, one of the largest automotive manufacturers in the world, is renowned for its commitment to quality and continuous improvement. A core component of Toyota’s success is its use of the Plan-Do-Check-Act (PDCA) cycle, a fundamental aspect of its Toyota Production System (TPS). This case study highlights how Toyota effectively applied the PDCA cycle to address and solve a specific manufacturing problem.
Toyota identified a recurring issue in one of its assembly lines: a high defect rate in the welding process. These defects were leading to increased rework and production delays, ultimately affecting the overall efficiency and cost-effectiveness of the manufacturing process.
Plan: The planning phase began with a thorough analysis of the welding defects. The team gathered data on the types and frequency of defects, the conditions under which they occurred, and the specific points in the process where they were most prevalent. They used root cause analysis techniques, such as the “5 Whys” and fishbone diagrams, to identify the underlying causes of the defects. Based on their analysis, the team set clear objectives: reduce the welding defect rate by 50% within three months. They developed a detailed plan that included:
• Implementing standardized work procedures to ensure consistency in the welding process.
• Introducing additional training for welders to enhance their skills and knowledge.
• Adjusting the settings and maintenance schedules for welding equipment to optimize performance.
Do: In the implementation phase, Toyota executed the plan on a small scale within a controlled environment. They selected one assembly line to pilot the new procedures and adjustments. This pilot allowed them to test the effectiveness of the changes and gather initial feedback without disrupting the entire production process. The team meticulously documented the implementation process, noting any challenges and unexpected issues that arose. They provided ongoing support and training to the welders, ensuring they understood and followed the new procedures.
Check: After the pilot implementation, the team entered the evaluation phase. They collected data on the welding defect rate from the pilot assembly line and compared it with the defect rate prior to the changes. The team also gathered qualitative feedback from the welders about the new procedures and equipment adjustments. The analysis showed a significant reduction in the defect rate, achieving a 40% decrease within the first month. However, the team identified some areas for further improvement, such as the need for more precise equipment calibration and additional training on specific welding techniques.
Act: Based on the results of the pilot and the feedback received, Toyota refined the plan. They made further adjustments to the equipment settings and enhanced the training program to address the identified gaps. With these refinements, the team rolled out the updated plan to all assembly lines.
The PDCA cycle did not end there. Toyota continued to monitor the welding process, using the PDCA cycle iteratively to ensure continuous improvement. They maintained regular reviews of the defect rates and conducted periodic retraining sessions for the welders. This ongoing application of the PDCA cycle allowed Toyota to achieve and sustain a substantial reduction in welding defects, ultimately enhancing overall production efficiency and quality.
Toyota’s application of the PDCA cycle in addressing welding defects is a prime example of how this iterative process can drive significant improvements in manufacturing. By systematically planning, implementing, checking, and acting on their findings, Toyota was able to reduce defects, optimize their processes, and maintain high standards of quality. This case study illustrates the power of the PDCA cycle in fostering a culture of continuous improvement and operational excellence.
Exercise 2.1: Applying DM in Your Organization
Course Manual 2: Why DM
To understand the importance of Daily Management (DM), consider the sports analogy of a team huddle. When sports teams huddle, they are not focused on discussing the current score because the score is prominently displayed around the stadium, visible to everyone at a glance. Instead, the team assesses the effectiveness of their current strategy in their pursuit of winning the game. They discuss what is working, what is not, and why certain tactics need to change. The focus is on identifying necessary adjustments and determining who needs to take specific actions.
The goal is for everyone to commit to consistent improvement to get the team back on track to win. Similarly, in the corporate world, we all strive to be on the winning team. On a DM board, the score—the status of key performance indicators (KPIs)—is displayed so it can be seen at a glance. If a metric is in the red, the main goal of DM meetings is to define the actions needed to get back to green. Just as in a sports huddle, where the focus is on changing the strategy rather than discussing the score, the purpose of a DM meeting is not to merely report ‘the news’ (the KPI status); it is to ‘make the news’ by defining strong, actionable steps.
Monitoring and Managing Performance
Effective Daily Management (DM) necessitates the constant monitoring and managing of performance to ensure that business operations run smoothly and efficiently. This process involves the regular assessment of key performance indicators (KPIs) and the quick identification of any deviations from desired performance levels. The primary objective is to stay on top of our processes, allowing us to react swiftly to any issues that arise. By maintaining this vigilant oversight, we can uphold a high level of operational efficiency and consistently meet our goals. Rather than allowing problems to escalate unnoticed, DM encourages immediate action. Teams are tasked with analyzing performance data, identifying emerging trends, and addressing potential issues before they become significant problems. This continuous vigilance not only helps maintain process stability but also fosters sustained operational excellence. By proactively managing performance and addressing issues in real-time, organizations can avoid the disruptions that unchecked problems can cause and ensure a steady trajectory towards their objectives.
Visual management plays a pivotal role in Daily Management (DM) by providing clear and immediate visibility of performance data, much like the scoreboard in a sports game. Just as the score is visible from any angle of the stadium, performance metrics should be easily accessible to all team members within an organization. Visual tools such as dashboards and boards are essential for displaying key performance indicators (KPIs) and highlighting any deviations from targets. These tools enable quick understanding and facilitate timely decision-making, as they allow team members to instantly see where performance is lagging and direct their efforts towards those areas. Furthermore, visual management tools support transparency and accountability, ensuring that everyone in the organization can see the same data and understand the current status of processes. This shared visibility promotes a unified approach to problem-solving and improvement, as all team members are informed and can collaborate effectively to address issues and enhance performance.
Driving Strategic Adjustments
Daily Management (DM) meetings are not merely about tracking performance; they are crucial for driving strategic adjustments. When performance metrics indicate that we are off track, it signals the need to reassess our strategies and tactics. During these meetings, teams come together to discuss necessary changes and determine who needs to take action to realign with objectives. This strategic focus is essential for fostering continuous improvement. By regularly reviewing performance and making the necessary adjustments, organizations can ensure they are always progressing towards their goals. This iterative process of assessment and adjustment helps in refining strategies, addressing issues proactively, and improving overall performance. The ability to pivot and adapt based on real-time performance data keeps the organization agile and responsive, facilitating sustained growth and success.
The primary purpose of Daily Management (DM) meetings is to transition from merely reporting performance to taking decisive action. While understanding the status of key performance indicators (KPIs) is important, the true value of DM meetings lies in defining and implementing actions that will enhance performance. These meetings provide a platform for teams to identify problems, develop effective solutions, and assign responsibilities to ensure follow-through. By focusing on actionable steps, DM meetings drive continuous improvement within the organization.
Teams are encouraged to think critically about their performance, analyze underlying issues, and take ownership of the necessary actions. This proactive approach not only addresses current challenges but also prevents future issues, fostering a culture of accountability and continuous improvement. This emphasis on proactive problem-solving and accountability is crucial for achieving business performance integrity, ensuring that the organization remains agile, efficient, and aligned with its strategic goals.
The Car Dashboard Analogy
Another effective analogy for understanding the importance of DM is comparing it to driving a car. When driving, you need to monitor all critical metrics on the dashboard, such as speed, fuel level, and engine temperature. The most critical few metrics are larger and centered, allowing you to check them at a glance and react quickly if something is wrong. Similarly, in DM, the team should regularly challenge whether they are monitoring the right critical metrics and adjust them if they are not driving the necessary course correction actions in a dynamic and changing environment. In newer cars, you have the option to customize some elements of the dashboard to focus on the metrics most relevant to your driving conditions. Likewise, DM should be adaptable, with teams periodically reviewing and customizing their performance metrics to ensure they remain aligned with the current business environment and strategic objectives. This flexibility ensures that the most critical aspects of performance are always under scrutiny, enabling swift and effective responses to any issues that arise.
The Importance of Regular Cadence
The definition of DM also includes the term ‘with regular cadence.’ This means that the team decides the frequency of DM meetings and ensures that they occur at those regular intervals—be it hourly, daily, weekly, or monthly. The frequency of these meetings depends on various factors such as the need for course correction actions, decision-making requirements, and the availability of relevant data. As DM maturity increases within an organization, the meetings often become more frequent. This increase in frequency can lead to earlier identification of issues and more timely interventions, thus improving overall performance.
A key concept in DM is ‘Short Interval Control,’ which becomes more feasible as organizations move towards real-time data availability. Short Interval Control involves closely monitoring performance at short intervals and making quick adjustments as needed.
This proactive approach is illustrated by the analogy of a ship captain, crew, and passengers who need to assess how important it is not to lose time on their journey to an island. Similarly, a CEO driving along a slightly winding desert road with zero traffic may be asked to close her eyes. The time she feels comfortable with her eyes shut indicates the frequency of her business reviews. The less time she dares to have her eyes closed, the more frequent and diligent her reviews should be to ensure she remains on the right track.
The Critical Necessity of Strong DM for Leadership
As a leader, it is imperative to recognize the critical necessity of strong Daily Management (DM) practices. Without robust DM, sustaining your company’s performance becomes significantly challenging. Effective DM practices create ‘focus and alignment,’ which are essential conditions for achieving a ‘team-based customer focus’ and a ‘focus on winning.’ By ensuring that everyone in the organization is aligned with the same goals and understands their role in achieving them, DM fosters a cohesive and motivated team environment.
Utilizing visual management tools allows leaders and teams to quickly identify when performance expectations are not being met. These tools provide clear and immediate visibility of key performance indicators (KPIs), making it easy to pinpoint areas where efforts need to be concentrated to get back on track. By addressing performance issues promptly and strategically, leaders can guide their teams towards continuous improvement and sustained success. The clarity and accountability provided by visual management tools ensure that everyone is aware of the current status and understands the necessary actions to achieve the desired outcomes, thereby enhancing overall organizational performance.
Given that many processes and value streams within an organization are cross-functional, the most effective DM teams are cross-functional as well. This setup ensures that decision-making and problem-solving are pushed to the point of impact (POI)—where the work is actually done. This decentralization of decision-making empowers teams at the operational level, providing them with the ownership and transparency needed to know if they are winning or losing. When the DM foundation is strong, ensuring that ‘trains are running on time,’ it allows leaders to focus their strategy deployment efforts on achieving real breakthroughs.
Strong DM practices also foster a culture of accountability and transparency, where problem ownership sits primarily with the team responsible for the work. This approach not only drives performance improvements but also promotes a sense of ownership and engagement among team members. By pushing decision-making closer to the point of impact, organizations can ensure that problems are addressed promptly and effectively, leading to sustained performance and strategic success.
‘Why DM’
‘Why DM’ boils down to the necessity for a process that provides transparency on performance status and accountability for timely triggering and follow-up of necessary course correction actions and fit-for-purpose problem-solving. DM ensures that everyone within the organization has a clear understanding of current performance levels and what needs to be done to improve. It establishes a system where accountability is distributed throughout the team, empowering individuals to take ownership of their areas and collaborate effectively on solving problems.
Transparency is critical as it allows all team members to see how their contributions impact overall performance and where adjustments need to be made. This openness fosters a culture of continuous improvement, where the focus is always on getting better and achieving higher standards. By providing a structured approach to monitoring performance and addressing issues, DM helps organizations stay agile and responsive to changes, ensuring sustained success and growth.
Case Study: General Electric (GE)
General Electric (GE), a multinational conglomerate, is known for its diversified portfolio ranging from aviation to healthcare. GE’s success has long been attributed to its rigorous management practices and commitment to operational excellence. A key element of GE’s management strategy has been the use of Daily Management (DM) practices to ensure clarity, accountability, and transparency throughout the organization.
In the late 2000s, GE faced challenges in its healthcare division. Despite significant investments in new technologies and processes, the division was struggling with inefficiencies and customer complaints about product quality and service delivery. These issues threatened GE Healthcare’s market position and customer satisfaction levels.
To address these challenges, GE Healthcare implemented a comprehensive Daily Management (DM) system. The initiative focused on three main areas: clarity, accountability, and transparency.
GE Healthcare introduced visual management tools such as dashboards and performance boards in all major departments. These tools displayed key performance indicators (KPIs) prominently, making it easy for employees at all levels to understand current performance against targets. The clarity provided by these visual tools ensured that everyone knew what metrics were critical and how their work contributed to overall goals.
GE established clear accountability by assigning specific KPIs to individual team members and departments. Each team member had a defined role and was responsible for specific metrics. Daily meetings were held to review these KPIs, discuss any deviations from targets, and assign corrective actions. This structure ensured that everyone knew their responsibilities and was held accountable for their performance.
Transparency was enhanced by making performance data accessible to all employees. Regularly updated dashboards were available for viewing, and open forums were held to discuss performance and challenges. This openness fostered a culture of trust and collaboration, as employees could see how their contributions impacted overall performance and were encouraged to share insights and solutions.
The implementation of these DM practices led to significant improvements in GE Healthcare’s operations. Defect rates decreased, customer satisfaction scores improved, and operational efficiency increased. The clarity provided by visual management tools ensured that everyone was aligned with the organization’s goals. Accountability mechanisms ensured that issues were promptly addressed, and the transparency fostered a collaborative environment where employees felt valued and motivated.
GE Healthcare’s use of Daily Management practices demonstrates the power of clarity, accountability, and transparency in driving organizational success. By implementing visual management tools, establishing clear accountability, and fostering transparency, GE was able to overcome significant challenges and improve its performance. This case study highlights the importance of these principles in achieving operational excellence and sustaining competitive advantage.
Exercise 2.2: Reflecting on DM in Your Organization
Course Manual 3: How DM
Daily Management (DM) is designed to enhance business performance by ensuring continuous monitoring and improvement of processes. The vital elements of DM include Leadership, Objectives and Metrics, Tiered Accountability and Meeting Cadence, and Visual Management (DM Boards). These elements form the backbone of a robust DM system and are crucial for its successful implementation.
Leadership is essential for driving the DM process. Leaders set the tone and direction for DM by establishing clear goals, providing necessary resources, and fostering a culture of accountability and continuous improvement. Effective leadership ensures that DM practices are integrated into the daily operations and that all team members are committed to achieving the set objectives.
Objectives and Metrics are the targets and measures used to track performance. Clear, specific, and measurable objectives help teams understand what is expected of them and how their performance will be evaluated. Key performance indicators (KPIs) should be relevant to the business goals and provide actionable insights.
Tiered Accountability and Meeting Cadence refer to the structured approach of assigning responsibilities and scheduling regular meetings. Accountability should be tiered across different levels of the organization, ensuring that each team member knows their role and is responsible for specific outcomes. Regular DM meetings, held at appropriate intervals (daily, weekly, monthly), help maintain focus and ensure timely course corrections.
Visual Management (DM Boards) involves the use of visual tools to display performance data. DM boards provide a clear and immediate view of key metrics, making it easy for team members to understand the current status and identify areas needing attention. These visual tools support transparency and facilitate quick decision-making.
DM Process
DM is not just a set of practices but a dynamic system that can always be improved. The DM process follows a structured approach that applies regardless of the maturity level of your team’s DM practices. This approach includes three key steps: Prepare, Install, and Sustain and Improve. This cycle aligns with the Plan-Do-Check-Act (PDCA) methodology of continuous improvement, ensuring that DM practices remain effective and responsive to changes in the business environment.
1. Prepare:
The preparation phase is the foundation for a successful DM implementation. It involves several critical activities to ensure alignment with business goals and stakeholder needs:
Gain Leadership Commitment and Upper-Tier Support: Secure the commitment of leadership and upper management to develop or improve the DM process. Their support is crucial for allocating resources, fostering a culture of accountability, and ensuring the initiative’s success.
Securing the commitment of leadership and upper management is a foundational step in developing or improving the Daily Management (DM) process. This support is crucial for several reasons. Firstly, it ensures that the necessary resources—such as time, budget, and personnel—are allocated to implement and sustain DM practices effectively. Leadership commitment also signals to the entire organization that DM is a strategic priority, fostering a culture of accountability and continuous improvement. When upper management is visibly engaged and supportive, it sets a tone of seriousness and importance, encouraging all levels of the organization to buy into the process.
This top-down support helps in overcoming resistance to change, aligning organizational goals, and driving collective effort towards achieving desired outcomes. Moreover, it provides the authority needed to address any obstacles that may arise during the implementation, ensuring that the DM initiative is not just a passing directive but a deeply ingrained aspect of the organization’s operations and culture. Ultimately, leadership commitment and upper-tier support are essential for the long-term success and sustainability of the DM process, enabling the organization to achieve and maintain high performance standards.
Determine Business Needs: Understand what is critical for your superiors to measure related to the team’s scope of deliveries. This involves identifying key performance indicators (KPIs) that align with business objectives and provide actionable insights.
Understanding business needs is a crucial step in the Daily Management (DM) process, as it involves identifying what is critical for superiors to measure in relation to the team’s scope of deliveries. This process begins with a thorough analysis of the organization’s strategic goals and the specific objectives that leadership aims to achieve. By aligning these goals with the team’s operational activities, it becomes possible to identify key performance indicators (KPIs) that are most relevant and impactful.
Identifying KPIs requires a deep dive into the processes and outputs that the team is responsible for. These KPIs should not only reflect the efficiency and effectiveness of the team’s work but also provide actionable insights that can drive improvements. For instance, if the business objective is to enhance customer satisfaction, relevant KPIs might include on-time delivery rates, quality metrics, and customer feedback scores. These indicators help in tracking performance against business objectives and highlight areas needing attention.
Moreover, KPIs should be specific, measurable, and aligned with the overall business strategy. They should enable teams to monitor progress, identify trends, and make data-driven decisions. By understanding what is critical for superiors to measure, teams can ensure that their efforts are directed towards activities that support the broader organizational goals. This alignment helps in creating a coherent strategy where every level of the organization works towards common objectives, thus enhancing overall performance and effectiveness.
Identify Internal and External Customers: Map out who your internal and external customers are and what is important to them. Determine the indicators of good or poor quality and delivery from their perspective. Understanding these needs helps tailor the DM process to meet customer expectations effectively.
Identifying internal and external customers is a critical step in tailoring the Daily Management (DM) process to meet customer expectations effectively. This begins with mapping out who your customers are within and outside the organization. Internal customers could include departments or teams that rely on your outputs to perform their functions, while external customers are the end-users or clients who purchase or benefit from your products or services.
Understanding what is important to these customers involves engaging with them to determine their needs and expectations. This can be achieved through surveys, feedback sessions, and direct conversations. For internal customers, this might include understanding their requirements for timely and accurate information, resources, or support that your team provides. For external customers, it involves knowing what aspects of your product or service are most valued, such as quality, reliability, speed of delivery, or customer service.
Once you have identified these needs, it is crucial to determine the indicators of good or poor quality and delivery from the customers’ perspective. These indicators might include metrics such as delivery time, defect rates, customer satisfaction scores, and response times to inquiries or issues. Understanding these indicators helps in aligning your DM process to focus on areas that directly impact customer satisfaction and loyalty.
Assess Current State Processes: Identify the current processes that your team interacts with to understand the scope of your DM efforts. Ensure all relevant stakeholders and existing metrics are identified and considered in the DM process.
Assessing current state processes is a fundamental step in understanding the scope of your Daily Management (DM) efforts. This involves identifying all the existing processes that your team interacts with on a daily basis. The aim is to gain a comprehensive understanding of how these processes function, their interdependencies, and their impact on overall performance.
To begin, map out the workflows and procedures that your team follows. This can involve creating detailed process maps that outline each step in the workflow, from initial inputs to final outputs. By documenting these processes, you can visualize the entire operational landscape, making it easier to pinpoint areas of strength and areas that require improvement.
Involving all relevant stakeholders in this assessment is crucial. Stakeholders can provide valuable insights into the nuances of each process and help identify any bottlenecks or inefficiencies. This group typically includes team members, managers, and other departments that interact with your processes. Gathering input from these stakeholders ensures that you have a well-rounded understanding of the current state and helps in building a more effective DM system.
Additionally, review existing metrics that are used to measure performance. Determine whether these metrics are still relevant and effective in providing actionable insights. This review helps in identifying any gaps where new metrics might be needed or where current metrics need to be refined. Metrics should align with both team objectives and broader business goals, providing a clear picture of how well processes are performing and where improvements are necessary.
Define Desired Behaviors: Determine the behaviors you want to drive within your team. Identify team indicators that reflect whether these behaviors are being achieved. Consider what makes a good day versus a bad day for the team and use this understanding to shape your DM process.
Defining desired behaviors within your team is a critical component of an effective Daily Management (DM) process. This step involves determining the specific behaviors and practices that will drive success and align with the organization’s goals. Desired behaviors might include proactive problem-solving, effective communication, collaboration, adherence to standard procedures, and continuous improvement.
To begin, clearly outline what these behaviors look like in practice. For example, proactive problem-solving could involve team members identifying potential issues early and taking initiative to address them before they escalate. Effective communication might entail regular updates and transparent sharing of information. Collaboration could be defined as working seamlessly across different functions and supporting each other to achieve common goals.
Once you have identified these desired behaviors, it is essential to establish team indicators that reflect whether these behaviors are being achieved. These indicators should be specific and measurable. For instance, the number of issues resolved proactively, the frequency and quality of team communications, and instances of cross-functional collaboration can serve as indicators. Monitoring these indicators helps in assessing how well the team is adopting the desired behaviors and where there might be gaps.
Consider what makes a good day versus a bad day for the team. A good day might be characterized by high productivity, smooth operations, effective problem resolution, and positive team morale. Conversely, a bad day might involve missed deadlines, operational disruptions, unresolved issues, and low morale. Understanding these contrasts helps in shaping the DM process to reinforce positive behaviors and address negative ones.
DM Process
2. Install:
The installation phase is where the DM system is put into action. This phase involves several key steps to ensure the DM process is effectively implemented and tailored to the team’s needs:
Narrow Down Metrics: The preparation exercise will produce a comprehensive catalog of possible metrics for your board. However, it is essential to challenge yourself and your team to narrow down this list to 4-6 critical metrics. These should be the most relevant KPIs that align with business objectives and provide actionable insights. Engaging your team in this decision-making process ensures buy-in and focus on the most impactful metrics.
Decide on Visual Management Strategy: Once the critical metrics are chosen, determine the scope and design of your visual management tools, such as DM boards. These tools should meet the needs of the team and stakeholders involved in DM meetings. Consider whether you need only a performance board or additional boards for managing resources or process flows. The design should facilitate quick understanding and decision-making, supporting transparency and accountability.
Develop the DM Process: Establish a DM process at the location where the team works. This includes agreeing on the frequency of DM meetings, participants, responsibilities for updating metrics before meetings, and the execution of the meeting itself. These ‘rules of engagement’ are consolidated in a ‘Terms of Reference’ document, ensuring clarity and consistency in DM practices. This document serves as a guide for all team members, outlining expectations and procedures for effective DM meetings.
DM Process
3. Sustain and Improve:
The sustain and improve phase is where the regular cadence of DM meetings and practices is activated. Whether you are implementing a newly built DM process or improving an existing one, this phase is crucial for maintaining and enhancing the DM system. Here are the key steps:
Activate Regular Cadence: Establish and maintain a regular schedule for DM meetings. Consistent meetings are essential for ongoing monitoring and timely course corrections. This regular cadence helps embed DM practices into the daily operations and ensures that performance metrics are continuously tracked and addressed.
Apply DM Leadership Principles: Revisit and apply the Daily Management leadership principles and characteristics discussed earlier. Effective leadership is critical in sustaining the DM process. Leaders should foster a culture of continuous improvement, encourage open communication, and ensure that team members are engaged and accountable.
Emphasize Continuous Improvement: Continuous improvement is a core principle of DM. Agree with your team on the number of meetings to be conducted before reassessing the DM process. Use problem-solving techniques and the PDCA (Plan-Do-Check-Act) cycle to identify areas for improvement and implement changes. This iterative approach ensures that the DM process remains effective and responsive to evolving business needs.
By following these steps, organizations can sustain and improve their DM practices, leading to enhanced performance and sustained success.
DM Leadership Characteristics
Effective leadership is the cornerstone of successful Daily Management (DM). Leaders must create a ‘winning team’ environment where employees can ‘work in teams.’ While this concept may sound simple, it requires vigilance to prevent dysfunctional behaviors that can derail team efforts. Leaders need to recognize when to step in and assist teams, ensuring that everyone is aligned with the goals and processes of the organization.
Creating a ‘safe’ environment is crucial, where employees feel comfortable bringing up issues without fear of reprisal. This openness allows for honest discussions about what is not working, fostering a culture of continuous improvement. Leaders must be present and actively involved in the DM process, providing guidance and support to ensure that DM practices are sustained.
Daily Management must be driven by a sense of urgency to address and solve problems quickly. Leaders play a pivotal role in instilling this urgency and helping teams implement effective problem-solving behaviors. By seizing ‘teaching and coaching’ moments during DM meetings, leaders can provide valuable feedback and encourage a strong learning environment. Asking questions to check for understanding and inviting team members to ask questions themselves helps create a robust learning culture where issues are promptly addressed and learning opportunities are maximized.
Empowering the team by delegating ownership of metrics to the appropriate team members is vital. This delegation promotes accountability, ensuring that team members feel responsible for both the meeting outcomes and the follow-up actions needed if metrics are in the red. As leaders mature in their DM roles, they also develop a sense of when to take discussions offline versus addressing them in the meeting. This discernment is crucial for keeping meetings short, focused, and productive. Situations where insufficient information is available, key people are missing, the team is guessing, or the matter is highly technical are best handled offline to maintain meeting efficiency.
DM is not about merely reporting the news; it is about making the news through actionable decisions and follow-ups. Leaders play a critical role in this process by ensuring that DM meetings result in concrete actions. A well-run DM meeting requires a solid process for identifying issues, assigning ownership, and following up on actions that cannot be addressed within the meeting itself. By driving this process, leaders ensure that DM practices lead to tangible improvements and sustained success.
Case Study: Unilever
Unilever, a multinational consumer goods company, faced challenges with operational efficiency and maintaining consistent product quality across its diverse product lines. To address these issues and improve overall performance, Unilever decided to implement a robust Daily Management (DM) system across its manufacturing plants.
Phase 1: Prepare
Leadership Commitment and Support The first step was to secure leadership commitment and upper-tier support. The CEO and senior management team at Unilever recognized the importance of DM and committed to providing the necessary resources. They communicated the strategic importance of DM to the entire organization, emphasizing its role in achieving operational excellence and competitive advantage. This top-down support was crucial for fostering a culture of accountability and continuous improvement.
Determining Business Needs Unilever’s leadership team conducted a thorough analysis to understand what was critical for their superiors to measure in relation to the team’s scope of deliveries. They identified key performance indicators (KPIs) that aligned with the company’s strategic goals, such as production efficiency, defect rates, and on-time delivery. These KPIs provided actionable insights that were essential for driving improvements and meeting customer expectations.
Identifying Internal and External Customers The team mapped out their internal and external customers, including other departments within the company and their end-users. They conducted surveys and feedback sessions to understand what was important to these customers. For internal customers, timely and accurate information was critical, while external customers valued high-quality products and reliable delivery. This understanding helped tailor the DM process to meet customer needs effectively.
Assessing Current State Processes Unilever assessed their current state processes by creating detailed process maps of their workflows. They identified all relevant stakeholders and existing metrics, ensuring that no critical aspect of their operations was overlooked. This comprehensive assessment provided a clear picture of the operational landscape and highlighted areas that needed improvement.
Defining Desired Behaviors The company defined the desired behaviors that would drive success, such as proactive problem-solving, effective communication, and collaboration. They established team indicators to reflect whether these behaviors were being achieved, such as the number of issues resolved proactively and the frequency of cross-functional collaboration. Understanding what constituted a good versus a bad day for the team helped shape the DM process to reinforce positive behaviors.
Phase 2: Install
Narrowing Down Metrics During the installation phase, Unilever challenged themselves to narrow down the comprehensive catalog of possible metrics to 4-6 critical KPIs. These KPIs were the most relevant to their business objectives and provided actionable insights. Engaging the team in this decision-making process ensured buy-in and focus on the most impactful metrics.
Deciding on Visual Management Strategy The team decided on the scope and design of their visual management tools, such as performance boards. These tools were designed to meet the needs of both the team and stakeholders involved in DM meetings. The visual management strategy facilitated quick understanding and decision-making, supporting transparency and accountability.
Developing the DM Process Unilever established a DM process at the location where the team worked. This included agreeing on the frequency of DM meetings, participants, responsibilities for updating metrics before meetings, and the execution of the meeting itself. These ‘rules of engagement’ were consolidated in a ‘Terms of Reference’ document, ensuring clarity and consistency in DM practices.
Phase 3: Sustain and Improve
Activating Regular Cadence The company established and maintained a regular schedule for DM meetings, ensuring consistent monitoring and timely course corrections. This regular cadence embedded DM practices into daily operations and ensured that performance metrics were continuously tracked and addressed.
Applying DM Leadership Principles Leadership revisited and applied the Daily Management leadership principles, fostering a culture of continuous improvement. They encouraged open communication and ensured that team members were engaged and accountable.
Emphasizing Continuous Improvement Continuous improvement was a core principle of Unilever’s DM process. The team agreed on the number of meetings to be conducted before reassessing the DM process. They used problem-solving techniques and the PDCA (Plan-Do-Check-Act) cycle to identify areas for improvement and implement changes. This iterative approach ensured that the DM process remained effective and responsive to evolving business needs.
The implementation of the DM process at Unilever led to significant improvements in operational efficiency and product quality. The clear and specific KPIs provided actionable insights that helped the team focus on critical areas. The visual management tools facilitated quick understanding and decision-making, while the regular meetings ensured timely course corrections. The commitment of leadership and the active involvement of all team members fostered a culture of accountability and continuous improvement. As a result, Unilever not only improved its performance but also enhanced customer satisfaction and gained a competitive edge in the market.
Unilever’s successful implementation of Daily Management (DM) demonstrates the importance of securing leadership commitment, determining business needs, identifying customers, assessing current processes, and defining desired behaviors. By following a structured approach to prepare, install, and sustain the DM process, the company achieved significant operational improvements and positioned itself for long-term success.
Exercise 2.3: Evaluation Visual Management Tools
Course Manual 4: DM Metrics
SMART goals are a widely recognized framework for setting effective metrics. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. This framework ensures that the metrics are clear and actionable, driving the desired outcomes.
• Specific: Metrics should be well-defined and focused. Specific metrics provide clarity and eliminate ambiguity, ensuring that all team members understand what is being measured and why it is important. For instance, instead of setting a vague goal like “improve productivity,” a specific metric would be “increase production output by 15% over the next quarter.”
• Measurable: The metrics must be quantifiable to track progress and assess performance objectively. This involves defining the criteria by which success will be measured. Measurable metrics allow teams to monitor progress and make data-driven decisions. For example, “reduce defect rates to below 2% per batch” is a measurable goal.
• Achievable: Goals should be realistic and attainable, considering the available resources and constraints. This aspect emphasizes setting targets that are challenging yet possible to achieve with the current capabilities. An achievable goal might be “train 90% of the staff on new quality control procedures within six months.”
• Relevant: Metrics should align with the broader business objectives and be pertinent to the team’s responsibilities. Relevant metrics ensure that efforts are focused on areas that significantly impact the organization’s success. For example, “improve customer satisfaction scores by 10% by enhancing product quality” aligns with overall business goals.
• Time-bound: Every goal should have a clear deadline or timeframe. Time-bound metrics create a sense of urgency and help prioritize tasks. For instance, “reduce lead time by 20% within the next three months” provides a specific timeframe for achieving the goal.
Evolution of SMART Metrics
In Doran’s original version of SMART (1981), the ‘A’ stood for ‘Assignable’, and the ‘R’ stood for ‘Realistic’. Over time, other versions have emerged with variations such as ‘Attainable’ or ‘Actionable’. The terms achievable, assignable, and attainable highlight the importance of setting goals that are within the team’s capacity to achieve. Realistic emphasizes setting practical targets that are not overly ambitious.
In the context of DM, the term ‘Actionable’ becomes highly relevant. A metric is actionable if the team can identify specific actions to take when the metric falls below the desired standard. If the team cannot envision actionable steps to improve the metric, it may not be a useful measure. Ideally, the actions should fall within the team’s sphere of control, ensuring they have the ability and authority to implement necessary changes.
Critical Metrics in DM
Critical metrics are those that are essential for tracking and achieving key business objectives. These metrics should provide actionable insights and drive continuous improvement. Critical metrics often include performance indicators such as production efficiency, quality control, on-time delivery, and customer satisfaction. Understanding and selecting the right critical metrics is vital for ensuring that teams focus on the most impactful areas, thereby driving overall business performance and integrity.
Examples of Critical Metrics:
Production Efficiency:
• Metric: Overall Equipment Effectiveness (OEE)
• OEE measures the efficiency and effectiveness of manufacturing operations. It combines data on equipment availability, performance, and quality to provide a comprehensive view of production efficiency. If OEE falls below a certain threshold, it indicates problems with equipment downtime, slow production rates, or high defect rates. Teams can take specific actions such as preventive maintenance, process optimization, or quality improvement initiatives.
Quality Control:
• Metric: Defect Rate
• The defect rate measures the percentage of products that fail to meet quality standards. It is a key indicator of manufacturing quality and process control. A high defect rate signals issues in the production process or materials used. Teams can implement root cause analysis to identify and rectify the sources of defects, improving overall product quality.
On-Time Delivery:
• Metric: Delivery Performance (DP)
• DP measures the percentage of orders delivered on or before the promised delivery date. It is crucial for assessing the reliability of the supply chain and meeting customer expectations. Low DP indicates bottlenecks in production or logistics. Teams can review and optimize supply chain processes, enhance coordination between departments, or improve inventory management to boost on-time delivery rates.
Customer Satisfaction:
• Metric: Net Promoter Score (NPS)
• NPS measures customer loyalty by asking how likely customers are to recommend the company’s products or services to others. It provides a direct indicator of customer satisfaction and brand reputation. A low NPS suggests dissatisfaction among customers. Teams can analyze feedback to understand customer pain points and implement strategies to improve customer experience, such as product enhancements, better customer service, or loyalty programs.
Financial Performance:
• Metric: Return on Investment (ROI)
• ROI measures the profitability of investments made by the company. It compares the gain from an investment to its cost, providing insight into the financial efficiency of business decisions. Low ROI indicates that investments are not yielding expected returns. Teams can reevaluate investment strategies, optimize resource allocation, or explore new growth opportunities to enhance financial performance.
Employee Productivity:
• Metric: Revenue per Employee
• This metric measures the average revenue generated by each employee, providing insight into overall workforce productivity and efficiency. If revenue per employee is low, it may indicate inefficiencies in processes or inadequate resource utilization. Teams can implement training programs, process improvements, or technology upgrades to boost productivity.
Operational Efficiency:
• Metric: Cycle Time
• Cycle time measures the total time taken to complete a process from start to finish. It is a critical indicator of operational efficiency and process effectiveness. Long cycle times can reveal process bottlenecks or inefficiencies. Teams can conduct process mapping and time-motion studies to identify and eliminate waste, streamlining operations to reduce cycle time.
Identifying Critical Metrics:
To identify critical metrics, teams should consider the following questions:
What are the primary objectives of our business or department?
Identify the core goals that drive the business, such as increasing profitability, improving customer satisfaction, or enhancing product quality.
Which metrics will help us understand if we are meeting these objectives?
Select metrics that directly align with these goals and provide clear indicators of performance in these areas.
Are these metrics aligned with our strategic goals?
Ensure that the chosen metrics support the broader strategic vision of the company, facilitating alignment and coherence in efforts across different levels of the organization.
Can we take specific actions to improve these metrics if they are not meeting targets?
Choose metrics that offer actionable insights, enabling teams to implement targeted improvements when performance falls short of expectations.
Through focusing on critical metrics, teams can ensure that their efforts are directed towards the most impactful areas, driving overall business performance and integrity. These metrics not only provide a clear picture of current performance but also guide decision-making and strategic planning, fostering a culture of continuous improvement and accountability.
Characteristics of Good Metrics
Good metrics are customer-focused and reflect the purpose and scope of the processes within the team’s domain. They should be simple and repeatable, allowing the team to track progress toward goals and visualize historical trends. This ensures that the metrics are easily understood and consistently measured over time.
Customer-focused metrics ensure that the team’s efforts align with the expectations and needs of both internal and external customers. These metrics should highlight areas that directly impact customer satisfaction and loyalty. For example, metrics related to product quality, delivery time, and service responsiveness are critical in maintaining high customer satisfaction levels.
Simplicity and repeatability are key characteristics of good metrics. Simple metrics are easy to understand and communicate, reducing the likelihood of misinterpretation. Repeatable metrics ensure consistency in measurement, enabling the team to track progress accurately over time. For instance, tracking the number of defects per production batch consistently allows for clear trend analysis and targeted improvements.
The team should perceive the metrics as fair and helpful, leading to actionable insights. Fair metrics provide an accurate reflection of performance without bias or unrealistic expectations. Helpful metrics guide the team toward areas that need improvement and encourage proactive problem-solving. If a metric is not perceived as fair or helpful, it may lead to resistance or disengagement from the team.
Actionable Metrics
The principle that “the team should only measure what it can countermeasure” is fundamental in DM. Metrics should lead to action; they must highlight areas where the team can take specific steps to improve performance. For example, if a metric shows a decline in on-time deliveries, the team should be able to analyze the causes and implement corrective actions such as process optimization or resource reallocation.
Actionable metrics empower the team to make informed decisions and drive continuous improvement. They provide clear indications of performance issues and guide the team on where to focus their efforts. Metrics that cannot be influenced by the team’s actions may not be useful, as they do not contribute to practical improvements.
Leading versus Lagging Indicators
Understanding the concept of leading indicators is paramount in Daily Management (DM). Leading indicators are proactive metrics that look ahead to measure activities intended to lead to future desired outcomes. These indicators are crucial because they allow teams to anticipate and influence future performance rather than merely reacting to past events. By focusing on leading indicators, teams can be proactive in securing desired outcomes and controlling their destiny. For example, the number of sales leads generated is a leading indicator for future sales performance. An increase in sales leads today typically translates to higher sales figures in the future. By monitoring this metric, teams can take preventative actions such as adjusting marketing strategies, improving sales techniques, or allocating resources more effectively to capitalize on the increased leads. This proactive approach helps in identifying potential issues early, making necessary adjustments, and preventing problems from escalating. Leading indicators thus provide a valuable early warning system that enables teams to stay ahead of the curve, ensuring that they are well-positioned to achieve their goals and maintain a competitive advantage.
Lagging indicators, on the other hand, are reactive metrics that look at past performance to provide historical data for analysis and statistics. These indicators are essential for scorekeeping as they provide insights into what has already happened, allowing teams to evaluate the effectiveness of their efforts. For instance, monthly revenue is a lagging indicator that shows how well the sales efforts translated into income. By reviewing this data, teams can assess whether their strategies and actions were successful in meeting the financial goals set for the period. While lagging indicators are valuable for understanding the outcomes of past activities and confirming if the goals were met, they do not provide the means to influence future outcomes directly. Instead, they serve as a reflective tool that helps teams learn from past performance, identify trends, and make informed decisions for future planning. However, because they reflect past events, relying solely on lagging indicators can limit a team’s ability to respond quickly to emerging issues. Therefore, while lagging indicators are crucial for validating results and driving long-term strategic planning, they need to be complemented with leading indicators to create a balanced and responsive performance management system.
To effectively manage performance and drive improvements, it is crucial to balance both leading and lagging indicators. Each type of indicator serves a distinct purpose, and together they provide a comprehensive view of an organization’s performance. Leading indicators are proactive, offering early warnings and allowing teams to take preventative actions to secure desired outcomes. For example, tracking the number of new customer inquiries can help predict future sales, enabling the team to adjust marketing efforts or sales strategies in advance. Lagging indicators, such as quarterly revenue or customer satisfaction scores, reflect the results of past activities, helping teams understand what was effective and whether their goals were achieved. For the DM process to be truly effective, and for the team to have a degree of control over their future success, a handful of strong leading indicators are essential. These indicators enable timely course corrections when metrics fall below standards, ensuring that minor issues are addressed before they escalate into significant problems. By maintaining a balance between leading and lagging indicators, teams can not only validate past performance but also actively shape their future outcomes, driving continuous improvement and achieving sustained success.
In a Key Performance Indicator (KPI) hierarchy, there exists a vertical cause-and-effect relationship that connects lower-level leading indicators to upper-level lagging indicators. This relationship means that optimizing strong leading indicators at the operational level can have a positive impact on higher-level lagging indicators. For instance, if lower-level indicators such as production cycle time and defect rates are improved, this efficiency and quality enhancement will likely lead to better overall productivity and higher customer satisfaction, which are the upper-level lagging indicators. By focusing on and maintaining green status for these foundational metrics, organizations can ensure that the performance improvements trickle up through the KPI hierarchy, thereby enhancing broader business outcomes.
On the horizontal axis, the interaction between processes can create situations where an outcome that is a lagging indicator for one process becomes a leading indicator for another. For example, sales leads generated by the marketing department are viewed as a lagging indicator from the marketing perspective because they measure the success of past marketing efforts. However, these same sales leads serve as a leading indicator for the sales department, predicting future sales performance. This interconnectedness illustrates how metrics can provide different insights depending on the perspective, emphasizing the need for coordinated efforts across departments. By understanding and leveraging these relationships, organizations can better align their strategies and actions to drive continuous improvement and achieve their overarching goals.
By utilizing the SMART framework, understanding the importance of customer-focused and actionable metrics, and balancing leading and lagging indicators, teams can ensure that their goals are specific, measurable, achievable, relevant, and time-bound. This approach not only enhances clarity and accountability but also provides actionable insights that drive continuous improvement and strategic success.
Case Study: Coca-Cola
Coca-Cola, one of the world’s largest beverage companies, has a complex global supply chain and a diverse product portfolio. To maintain its competitive edge and ensure continuous improvement, Coca-Cola needed a robust system for monitoring performance and driving strategic decisions. The company implemented a balanced approach using both leading and lagging indicators to manage its operations effectively.
Coca-Cola faced challenges in aligning its operational activities with its strategic goals, particularly in areas such as production efficiency, product quality, and customer satisfaction. The company needed to ensure that its manufacturing processes were efficient, its products met high-quality standards, and customer satisfaction remained high. However, relying solely on lagging indicators like quarterly sales reports and customer feedback meant that problems were often identified too late to make timely adjustments.
To address these challenges, Coca-Cola developed a comprehensive performance management system that integrated both leading and lagging indicators. This system allowed the company to proactively manage its operations and react quickly to any emerging issues.
1. Leading Indicators:
• Production Cycle Time: Coca-Cola tracked the time taken to produce each batch of beverages. By monitoring production cycle times, the company could identify inefficiencies and bottlenecks in the manufacturing process. For instance, if the cycle time increased, it could indicate a problem with machinery or supply chain delays.
• Defect Rates: Coca-Cola implemented quality control checks at various stages of production. By tracking defect rates in real-time, the company could quickly identify and address quality issues, ensuring that only high-quality products reached the market.
• Sales Leads: The marketing department tracked the number of new sales leads generated through campaigns and promotions. This leading indicator helped predict future sales performance and allowed the sales team to prioritize their efforts.
2. Lagging Indicators:
• Quarterly Sales Reports: Coca-Cola analyzed its sales data quarterly to assess overall performance. These reports provided insights into how well the company’s strategies were working and highlighted areas needing improvement.
• Customer Satisfaction Scores: The company regularly surveyed customers to gather feedback on product quality, availability, and overall satisfaction. This lagging indicator helped Coca-Cola understand the effectiveness of its customer service and product offerings.
By implementing a balanced approach with both leading and lagging indicators, Coca-Cola was able to achieve several significant improvements:
• Increased Production Efficiency: By monitoring production cycle times and defect rates, Coca-Cola identified and addressed inefficiencies in its manufacturing processes. This led to a reduction in production costs and increased throughput.
• Enhanced Product Quality: Real-time tracking of defect rates enabled Coca-Cola to maintain high-quality standards and reduce the number of defective products reaching customers.
• Improved Customer Satisfaction: The company’s proactive approach to managing sales leads and quality issues resulted in higher customer satisfaction scores. Customers received better quality products and experienced fewer delays, enhancing their overall experience with the brand.
• Better Strategic Alignment: By analyzing quarterly sales reports and customer feedback, Coca-Cola could align its operational activities with its strategic goals more effectively. The company was able to make informed decisions that supported long-term growth and success.
Coca-Cola’s use of leading and lagging indicators provided a comprehensive view of its operations and enabled the company to manage performance proactively. Leading indicators allowed Coca-Cola to anticipate and address issues before they became significant problems, while lagging indicators validated the effectiveness of their strategies. This balanced approach ensured continuous improvement and helped Coca-Cola maintain its competitive edge in the global market.
Exercise 2.4: Analyzing Leading vs. Lagging Indicators
Course Manual 5: Board Basics
Historically, Daily Management (DM) boards originated from manufacturing environments, where the need for clear and effective communication of performance metrics was paramount. Over time, visual standards evolved to make these boards universally understandable and participatory, ensuring that all team members, regardless of their role, could easily comprehend the information presented. These boards became integral in tracking performance metrics such as production rates, quality control, and safety measures, providing real-time visibility into the operational health of the manufacturing process.
By displaying key performance indicators (KPIs) in a visual format, DM boards facilitated immediate recognition of areas needing attention, fostered accountability, and enabled swift decision-making. Their role in promoting transparency and collaboration across teams made them essential tools for effective daily management, driving continuous improvement and operational excellence. As a result, the principles of DM boards have been adapted and implemented in various other sectors beyond manufacturing, underscoring their versatility and importance in performance management.
The +QDIP/SQDIP Format
One of the most common formats for DM boards in manufacturing is the +QDIP or SQDIP format. Each letter at the top of the board represents a different domain:
• S/+ for Safety (or People): Safety and people are given the highest priority, emphasizing the importance of a safe working environment and the well-being of employees.
Safety and people are given the highest priority in the DM board framework, reflecting the fundamental importance of a safe working environment and the well-being of employees. A focus on safety ensures that all operations adhere to strict safety protocols, minimizing the risk of workplace accidents and injuries. This not only protects the health and welfare of the workforce but also fosters a culture of care and responsibility. Regular safety audits, incident tracking, and corrective actions are integral parts of this metric. Additionally, employee well-being initiatives, such as ergonomic assessments, health and wellness programs, and mental health support, are tracked to ensure that the workforce remains healthy, motivated, and productive. By prioritizing safety and people, organizations can reduce downtime due to accidents, boost employee morale, and enhance overall operational efficiency.
• Q for Quality: Ensures that products meet quality standards, which is critical for customer satisfaction and reducing rework.
Quality is a critical metric that ensures products meet established standards and specifications, which is essential for maintaining customer satisfaction and reducing the costs associated with rework and returns. On the DM board, quality metrics typically include defect rates, adherence to specifications, and the results of quality control inspections. By tracking these indicators, teams can identify trends and root causes of quality issues, enabling them to implement corrective measures promptly. Quality assurance processes such as Six Sigma or Total Quality Management (TQM) can be integrated into this metric to continuously improve product quality. High-quality standards not only satisfy customers but also enhance the company’s reputation and competitiveness in the market, leading to increased customer loyalty and repeat business.
• D for Delivery: Tracks on-time delivery performance, ensuring that products are delivered to customers as promised.
Delivery metrics track the on-time delivery performance, ensuring that products are delivered to customers as promised. This metric is crucial for customer satisfaction and retention, as timely delivery directly impacts the customer’s experience and trust in the company. Delivery performance can be monitored through indicators such as the percentage of orders delivered on time, average delivery time, and fulfillment rates. By tracking these metrics, organizations can identify and address bottlenecks in the supply chain, optimize logistics, and improve coordination between production and shipping departments. Effective delivery management reduces lead times, minimizes delays, and ensures that customers receive their products when expected, thereby enhancing overall service quality and customer satisfaction.
• I for Inventory: Monitors inventory levels to balance supply and demand efficiently.
Inventory metrics monitor inventory levels to balance supply and demand efficiently, ensuring that the right amount of stock is available to meet customer orders without overstocking or stockouts. Key inventory indicators include inventory turnover ratio, days inventory outstanding (DIO), and stock accuracy. By closely monitoring these metrics, companies can optimize their inventory management processes, reduce holding costs, and improve cash flow. Effective inventory management involves accurate demand forecasting, efficient ordering processes, and robust inventory tracking systems. Maintaining optimal inventory levels helps prevent production delays due to material shortages, reduces excess stock that ties up capital, and ensures that customers’ needs are met promptly and accurately.
• P for Productivity: Measures the efficiency of production processes and overall productivity.
Productivity metrics measure the efficiency of production processes and overall productivity. These metrics provide insights into how well resources such as labor, equipment, and materials are utilized to produce goods and services. Common productivity indicators include units produced per hour, machine utilization rates, and labor efficiency. By tracking productivity metrics, organizations can identify areas where resources are not being used optimally and implement process improvements to enhance efficiency. Techniques such as lean manufacturing, just-in-time (JIT) production, and continuous improvement methodologies can be applied to boost productivity. High productivity levels lead to lower production costs, increased output, and improved competitiveness, ultimately contributing to the company’s profitability and growth.
The letters should be large and clearly show the status (green for good, red for needs attention) of each metric below them. The order of these letters is intentional, reflecting the cause-and-effect relationships between them. For example, poor quality can lead to late deliveries, increased costs, and lower productivity. Ensuring that human resources are fit for the task can lead to good quality, which in turn impacts delivery, cost, and productivity positively.
Adapting +QDIP for Office Environments
While the +QDIP concept is primarily used in manufacturing, it can be adapted for office environments by adjusting the metrics to fit non-manufacturing processes. In office settings, the I (Inventory) and P (Productivity) are often combined into a C for Cost, leading to the PQDC format:
• P for People: Focuses on employee well-being and safety.
In an office environment, the focus on people encompasses employee well-being, safety, and engagement. This metric involves tracking factors such as employee satisfaction, absenteeism rates, and workplace safety incidents. By prioritizing people, organizations can create a supportive and healthy work environment that fosters high morale and productivity. Regular surveys and feedback mechanisms can be used to gauge employee satisfaction and identify areas for improvement. Safety programs and ergonomic assessments ensure that the office environment is safe and conducive to long-term health. Investing in people leads to increased job satisfaction, reduced turnover, and a more motivated and engaged workforce, all of which contribute to the overall success of the organization.
• Q for Quality: Measures the quality of work or output.
Quality in an office setting measures the standard of work or output produced by employees. This includes the accuracy and completeness of work, adherence to project specifications, and customer feedback on service quality. Quality metrics might include error rates, customer satisfaction scores, and compliance with standards or regulations. Maintaining high quality in office processes ensures that outputs meet or exceed expectations, which is critical for client satisfaction and maintaining a strong reputation. Continuous improvement initiatives, training programs, and quality assurance processes help maintain high standards and encourage a culture of excellence. By focusing on quality, organizations can enhance the value of their services and build lasting relationships with clients.
• D for Delivery: Tracks timely completion and delivery of tasks or projects.
Delivery in an office context tracks the timely completion and delivery of tasks or projects. This metric ensures that deadlines are met and that projects are delivered on schedule. Key indicators might include on-time project completion rates, milestone adherence, and task turnaround times. Effective delivery management requires good project planning, clear communication, and efficient workflows. Regular status meetings and project management tools can help teams stay on track and address any delays promptly. Ensuring timely delivery enhances customer satisfaction, builds trust, and supports the organization’s reputation for reliability and efficiency. It also allows for better resource allocation and more predictable workflow management.
• C for Cost: Monitors costs, productivity, and efficiency in operations.
In an office environment, cost metrics monitor the expenses associated with operations, including productivity and efficiency. This encompasses tracking budget adherence, cost savings from process improvements, and overall operational efficiency. Key indicators might include cost per project, budget variance, and return on investment (ROI) for office initiatives. By closely monitoring costs, organizations can identify areas where expenses can be reduced without compromising quality or delivery. Efficient cost management leads to better financial health, allowing for reinvestment in growth and innovation. Tools like financial dashboards and regular budget reviews can help maintain visibility and control over costs, ensuring that resources are used optimally and sustainably.
Q and D are customer-focused metrics, while I and P (or C) are internally focused. This distinction helps teams understand which metrics directly impact customer satisfaction and which ones are more about internal efficiencies.
Customizing DM Boards
DM teams can decide on their own set of KPIs, which do not necessarily have to follow the PQDC or +QDIP format. When designing a DM board, teams should consider whether their current metrics cover all necessary aspects of performance. Thinking about Quality, Delivery, or Cost aspects of their process performance can spark new ideas for potential KPIs. Teams might also create unique acronyms or sets of letters that give their boards a distinctive identity within the office environment.
Critical Visual Elements of DM Boards
Another aspect of the DM board is the critical visual elements needed on it. Starting from top to bottom, we have what we will refer to as ‘The end-to-end problem-solving vertical.’
Status Indicators: The letter at the top shows on a given day or week if the letter metric is in green (good) or red (needs attention). These fields cover workdays in a month or weeks in a quarter/half year, depending on the frequency of the meetings. Fields are colored green or red before the meeting so everyone in the environment can see where to focus and how many days the team has been in red.
Trend Charts: Below the status indicators, a trend chart shows the performance of the metric over time, displaying both the planned (dotted blue line) and actual (solid line) curves. The trend chart gives an idea of where the metric is heading and changes color to red when the actual performance deviates unfavorably from the plan/standard.
Metric Definitions and Ownership: It is common to post a metric definition and ownership along with the trend chart. This ensures clarity about what is being measured and who is responsible for tracking and improving it.
Pareto Chart: Below the trend chart, a Pareto Chart supports problem-solving by breaking down the gap between the current plan and actual numbers. It displays occurrences in descending order, allowing the team to focus on the 20% of the occurrences that have an 80% impact on the gap that needs to be closed to get back to the standard.
Action Log: The action log is at the bottom of the board, defining the issue to address, the action to take, who is responsible, and the completion date. This ensures accountability and helps track follow-up actions to resolve issues identified during the DM meetings.
DM boards are essential tools for visual management, fostering transparency, accountability, and continuous improvement. Whether using the traditional +QDIP format in manufacturing or adapting it to PQDC for office environments, the goal is to create a clear and effective visual representation of key performance indicators. By incorporating critical visual elements such as status indicators, trend charts, Pareto charts, and action logs, organizations can drive better performance and achieve their strategic objectives.
Case Study: Implementing +QDIP at Boeing
Boeing, a leading aerospace company, has complex manufacturing processes that require rigorous management to ensure safety, quality, delivery, inventory, and productivity. To enhance its operational efficiency and performance, Boeing implemented the +QDIP (Safety, Quality, Delivery, Inventory, and Productivity) framework across its production facilities.
Boeing faced challenges in maintaining high standards across various performance metrics simultaneously. Issues in one area often cascaded into others, such as quality defects leading to delayed deliveries, increased inventory costs, and lower productivity. The company needed a structured approach to monitor and manage these interrelated metrics effectively.
Boeing adopted the +QDIP framework to create a visual management system that could track and improve key performance indicators (KPIs) across its manufacturing operations. This system was designed to ensure safety, enhance quality, meet delivery schedules, optimize inventory levels, and boost productivity.
1. S/+ for Safety (or People):
o Safety Initiatives: Boeing placed a high priority on safety, implementing stringent safety protocols and regular training programs for all employees. Safety metrics, such as incident rates and near-miss reports, were prominently displayed on the DM boards.
o Employee Well-being: Initiatives to improve ergonomics and reduce workplace stress were also tracked. Regular safety audits and feedback mechanisms ensured a continuous focus on creating a safe working environment.
2. Q for Quality:
o Quality Control: Boeing established rigorous quality control processes, including frequent inspections and real-time monitoring of production quality. Defect rates and rework statistics were tracked daily.
o Continuous Improvement: The company used root cause analysis and Six Sigma methodologies to identify and eliminate sources of defects, driving continuous improvement in product quality.
3. D for Delivery:
o On-Time Delivery: Delivery performance metrics, such as on-time delivery rates and lead times, were monitored to ensure that production schedules were met. Any delays were immediately flagged, and corrective actions were taken.
o Customer Communication: Boeing also focused on improving communication with customers regarding delivery schedules, enhancing transparency and trust.
4. I for Inventory:
o Inventory Management: The company optimized its inventory management by tracking inventory turnover rates, days inventory outstanding (DIO), and stock accuracy. This helped balance supply with production needs.
o Lean Practices: Lean manufacturing principles were applied to minimize excess inventory and reduce holding costs, ensuring a just-in-time (JIT) approach to inventory management.
5. P for Productivity:
o Efficiency Measures: Productivity metrics, such as units produced per hour and machine utilization rates, were closely monitored. Boeing aimed to maximize the efficiency of its production processes.
o Process Optimization: Continuous process optimization initiatives, including automation and workflow improvements, were implemented to enhance overall productivity.
By implementing the +QDIP framework, Boeing achieved significant improvements in its manufacturing operations:
• Enhanced Safety: The focus on safety reduced incident rates and created a safer working environment, boosting employee morale and productivity.
• Improved Quality: Defect rates decreased, leading to higher product quality and reduced costs associated with rework and warranty claims.
• On-Time Deliveries: Delivery performance improved, with a higher percentage of orders being delivered on time, enhancing customer satisfaction.
• Optimized Inventory: Inventory levels were better managed, reducing holding costs and improving cash flow while ensuring materials were available when needed.
• Increased Productivity: Productivity metrics showed a marked improvement, with more efficient use of resources and increased production output.
Boeing’s implementation of the +QDIP framework demonstrates how a structured visual management system can drive significant improvements across multiple performance metrics. By focusing on safety, quality, delivery, inventory, and productivity, Boeing was able to enhance its operational efficiency, meet customer expectations, and maintain a competitive edge in the aerospace industry. This case study highlights the importance of an integrated approach to performance management and the value of visual tools in fostering transparency, accountability, and continuous improvement.
Exercise 2.5: Design Your Own DM Board
Course Manual 6: Other Boards
In the Daily Management system, various types of boards play a crucial role in tracking performance, ensuring transparency, and facilitating continuous improvement. While the Performance Board is a foundational tool, other types of boards, including Workflow Boards, Resource Planning Boards, and Virtual Boards, provide additional capabilities to support different aspects of the DM process. This section will delve into the specifics of these boards, their benefits, and practical implementation strategies.
Performance Boards
The basic board, is commonly referred to as a Performance Board. It accommodates timely course correction by displaying the key metrics that tell you if ‘your trains are running on time’ and, as the metrics are always displayed with a target and an actual, it shows you the gap (i.e., the problem) to address. As the board is designed with an ‘end-to-end problem-solving vertical’ for every metric, it truly accommodates problem-solving and defined actions.
Key Features of Performance Boards:
Target vs. Actual: The Performance Board always displays metrics with both target and actual values. This clear comparison allows team members to quickly see if they are meeting their goals or if there are discrepancies that need attention.
Identifying Gaps: By highlighting the gap between target and actual performance, the board pinpoints areas that require immediate action. This transparency ensures that problems are visible and can be prioritized accordingly.
End-to-End Problem-Solving Vertical: Each metric on the board includes an end-to-end problem-solving vertical, which means there is a designated space for identifying the root cause of issues and defining specific actions to address them. This structure supports continuous improvement by regularly reviewing and refining processes based on the metrics.
Benefits of Using Performance Boards:
Visibility and Transparency: The clear display of metrics ensures that everyone on the team can see where they stand in relation to their goals. This transparency fosters accountability and encourages proactive problem-solving.
Focused Problem-Solving: By providing a structured approach to identifying and addressing gaps, the Performance Board helps teams focus their efforts on the most critical issues, ensuring that resources are used efficiently.
Enhanced Communication: The board serves as a central communication tool, facilitating discussions about performance and enabling team members to collaborate effectively on problem-solving efforts.
Alignment with Goals: By consistently tracking performance against targets, the Performance Board ensures that the team remains aligned with organizational goals and objectives.
To implement a Performance Board effectively, consider the following steps:
Identify Key Metrics: Determine which metrics are most critical to your team’s success. These should align with overall business objectives and reflect the key performance indicators (KPIs) that matter most.
Set Targets and Actuals: Establish clear targets for each metric and regularly update the board with actual performance data. This ongoing comparison will help identify gaps in real time.
Design the Problem-Solving Vertical: For each metric, create a dedicated space for identifying issues, analyzing root causes, and defining actions. Ensure that this process is followed consistently.
Review and Adjust: Regularly review the Performance Board with your team to discuss progress, address any issues, and make necessary adjustments to the process.
By following these steps, you can create a Performance Board that effectively supports your DM process, enhances transparency, and drives continuous improvement within your team.
Workflow Boards
To ensure that “trains run on time,” it is essential to visually follow what is happening in your processes both during and between your DM meetings. The board designed for this purpose is known as a “Workflow Board.” This board displays items moving from left to right, either along a timeline (weeks or months) or through the main steps of a process, effectively putting the process on the wall. The items tracked can include quotes, orders, products, complaints, projects, service orders, or even problems, progressing from problem identification to sustained countermeasures.
Workflow Boards are versatile tools that provide a clear visual representation of the progress of various items through different stages of a process. They ensure that all team members can easily monitor the status of key items and identify any bottlenecks or delays.
Visualizing Process Flow:
Timeline or Process Steps: Workflow Boards can display items along a timeline or through specific process steps. This visual representation helps team members understand where each item is in the process and what the next steps are.
Items in Process: The board tracks various items that are processed, such as quotes, orders, products, complaints, projects, service orders, or problems. Each item moves from left to right, showing its progression through the process stages.
Post-It Notes or Pre-Designed Cards: Items on the board can be represented by Post-It notes or pre-designed cards that contain necessary and standardized fields to fill. This standardization ensures consistency and clarity in the information presented.
Types of Workflow Boards:
• Kanban Boards: The simplest form of a workflow board is a Kanban Board. Originally used in Lean Manufacturing, the Kanban Board has been adapted for agile software development. It visually represents tasks, their status, and progress through columns such as “To Do,” “In Progress,” and “Done.”
• Process-Specific Boards: Workflow boards can be tailored to specific processes. For example, in a sales organization, a workflow board might track the progression of quotes from “Request for Quotation” to “Quotation Sent to Customer.” These boards provide a clear visual of the process and help ensure timely follow-up and completion of tasks.
Benefits of Workflow Boards:
Workflow Boards offer several advantages that make them valuable tools for managing processes:
Transparency and Visibility: By displaying the progress of items visually, Workflow Boards ensure transparency and visibility for all team members. This helps in identifying bottlenecks and addressing them promptly.
Improved Collaboration: The visual nature of the board facilitates communication and collaboration among team members, ensuring everyone is on the same page regarding the status of various items.
Efficient Monitoring: Workflow Boards provide a quick and efficient way to monitor the status of items, enabling timely interventions and course corrections as needed.
Enhanced Accountability: By clearly showing the status and progression of items, Workflow Boards help hold team members accountable for their responsibilities and ensure that tasks are completed on time.
To effectively implement a Workflow Board, consider the following steps:
Identify Key Processes: Determine which processes need to be visualized on the Workflow Board. These should be critical to your team’s success and aligned with overall business objectives.
Design the Board: Decide whether the board will follow a timeline or specific process steps. Create columns or sections that represent different stages of the process.
Standardize Items: Use Post-It notes or pre-designed cards with standardized fields to represent items on the board. Ensure that the information is clear and consistent.
Monitor and Update: Regularly update the board to reflect the current status of items. Monitor the board during DM meetings and between them to ensure timely progress.
Review and Adjust: Periodically review the effectiveness of the Workflow Board and make adjustments as needed to improve its functionality and relevance.
By following these steps, you can create a Workflow Board that enhances transparency, improves collaboration, and drives process efficiency within your team.
Resource Planning Boards
The last type of board introduced in this workbook is a “Resource Planning Board.” These boards can take on various shapes and forms, tailored to the specific needs of an organization. Resource Planning Boards play a crucial role in ensuring that “trains run on time” by making sure that all necessary resources are available and properly managed. These resources can include staff, machinery, systems, and other critical assets that support the efficient operation of processes.
Key Features of Resource Planning Boards:
Resource Planning Boards provide a visual representation of resource allocation and management, ensuring that processes are adequately resourced to achieve optimal performance. These boards help teams monitor and adjust resource levels, preventing bottlenecks and ensuring smooth operations.
Types of Resources Managed:
• Staff: Resource Planning Boards can track the availability and skills of staff members, ensuring that there are enough skilled employees to meet the demands of the process. This includes managing shift schedules, training needs, and workload distribution.
• Machinery: These boards can monitor the maintenance schedules and availability of machinery, ensuring that all equipment is in good working condition and available when needed. This helps in preventing downtime and maintaining productivity.
• Systems: Resource Planning Boards can also track the status and maintenance of systems, such as IT infrastructure, ensuring that they are functioning correctly and supporting the processes effectively.
• Other Resources: Depending on the organization’s needs, Resource Planning Boards can also manage other resources, such as raw materials, tools, and supplies, ensuring that they are available in the right quantities at the right time.
Visualizing Resource Allocation:
• Resource Availability: The board displays the availability of resources in a clear and concise manner, making it easy to see at a glance whether there are enough resources to meet the demands of the process.
• Resource Utilization: Resource Planning Boards also show how resources are being utilized, highlighting any underutilization or overutilization issues that need to be addressed.
• Maintenance and Training Schedules: These boards can include maintenance and training schedules, ensuring that resources are well-maintained and staff are adequately trained to perform their tasks.
Benefits of Resource Planning Boards:
Resource Planning Boards offer several advantages that make them essential tools for managing resources effectively:
Improved Resource Management: By providing a clear visual representation of resource allocation and availability, these boards help teams manage resources more efficiently, ensuring that processes are adequately resourced.
Enhanced Planning and Scheduling: Resource Planning Boards support better planning and scheduling by highlighting resource needs and availability. This helps in preventing resource shortages and ensuring that all necessary resources are available when needed.
Increased Accountability: By tracking resource allocation and utilization, Resource Planning Boards promote accountability among team members, ensuring that resources are used efficiently and effectively.
Reduced Downtime: By monitoring the maintenance schedules of machinery and systems, these boards help in preventing downtime and maintaining productivity.
To effectively implement a Resource Planning Board, consider the following steps:
Identify Key Resources: Determine which resources are critical to your processes and need to be managed on the board. This includes staff, machinery, systems, and other essential assets.
Design the Board: Create a layout that clearly displays resource availability, utilization, and maintenance schedules. Ensure that the information is easy to read and understand.
Standardize Resource Information: Use standardized fields and formats to represent resource information on the board. This helps in maintaining consistency and clarity.
Monitor and Update: Regularly update the board to reflect the current status of resources. Monitor the board during DM meetings and between them to ensure that resource levels are adequate and any issues are addressed promptly.
Review and Adjust: Periodically review the effectiveness of the Resource Planning Board and make adjustments as needed to improve its functionality and relevance.
By following these steps, you can create a Resource Planning Board that enhances resource management, improves planning and scheduling, and drives process efficiency within your team.
Virtual Boards
While a physical board generally provides the best conditions for a DM meeting due to its size, accessibility, and the immediacy of interaction, not all organizations have the luxury of having all team members in the same location. Virtual boards have become increasingly necessary, particularly highlighted during the 2020-2022 COVID-19 pandemic, which made physical meetings and boards impractical.
Benefits of Physical Boards:
• Accessible Overview: The size of a physical board allows for an accessible overview of all metrics and processes. Nothing is hidden on another screen view, which ensures full visibility for all team members.
• Immediate Interaction: Physical boards allow team members to stand around the board and move items around with no delay. This real-time interaction enhances collaboration and decision-making during DM meetings.
• Accountability Through Handwriting: The act of writing decisions and actions by hand on a physical board drives a high level of accountability. The “power of the pen” ensures that action owners are committed to timelines and responsibilities.
Transition to Virtual Boards:
• Remote Participation: With the rise of remote work, many organizations have had to accommodate remote participation in DM meetings. Tools such as webcams and video conferencing (e.g., FaceTime) have facilitated this transition, allowing team members to participate in meetings from different locations.
• The Shift During the Pandemic: The COVID-19 pandemic accelerated the need for virtual board solutions. As social distancing became necessary, teams that relied on physical boards had to adapt quickly to virtual formats.
Building Virtual Boards:
• Principles and Challenges: The principles for building virtual boards remain the same as for physical boards; however, the screen format presents limitations. For instance, displaying the entire “end-to-end problem-solving vertical” and side-by-side metric verticals on a single screen can be challenging. Similarly, workflow boards, such as a sales funnel, can be difficult to visualize fully in a virtual format.
• Advantages of Virtual Boards: Despite these challenges, virtual boards offer several advantages. Large organizations often build connected data systems that enable teams to delve deep into board KPIs and understand gap breakdowns during DM calls. In some cases, these systems provide access to real-time data, allowing for timely reactions to red metrics.
• Accessibility and Flexibility: One of the significant benefits of virtual boards is their accessibility from any location and at any time. This flexibility ensures that team members can stay informed and engaged with the DM process, regardless of their physical location.
Combining Physical and Virtual Boards:
• Hybrid Approach: Teams should consider a hybrid approach, combining physical and virtual boards. The value of physically standing as a team in front of a board cannot be underestimated, as it fosters collaboration and accountability. However, virtual boards can complement this by providing accessibility and real-time data capabilities.
• Implementing Virtual Boards: To implement virtual boards effectively, follow these steps:
1. Select Appropriate Tools: Choose virtual board tools that best fit your organization’s needs, such as Trello, Asana, or Microsoft Teams.
2. Maintain Visual Clarity: Ensure that the virtual board is designed to maintain visual clarity, with clear sections for metrics, trends, and actions.
3. Integrate Data Systems: Leverage connected data systems to provide real-time data and detailed insights during DM meetings.
4. Encourage Engagement: Foster engagement by encouraging team members to interact with the virtual board regularly, updating metrics, and tracking actions.
5. Regular Reviews: Conduct regular reviews to assess the effectiveness of the virtual board and make necessary adjustments to improve its functionality.
Following these steps, organizations can create effective virtual boards that enhance their DM process, ensuring continued performance management and improvement even in a remote work environment.
Various types of boards, including Performance Boards, Workflow Boards, Resource Planning Boards, and Virtual Boards, are essential tools for managing different aspects of the Daily Management process. These boards enhance visibility, transparency, and accountability, enabling teams to monitor performance, manage resources effectively, and drive continuous improvement. By implementing these boards and combining physical and virtual formats, organizations can ensure that their DM processes remain robust and effective, regardless of physical location or external challenges.
Case Study: Siemens AG
Siemens AG, a global technology powerhouse in industries ranging from energy and healthcare to infrastructure and manufacturing, has long been a proponent of lean management practices to enhance operational efficiency and drive continuous improvement. As part of its commitment to operational excellence, Siemens implemented a hybrid board system that combined physical and virtual boards to manage its diverse and geographically dispersed teams effectively.
In 2018, Siemens faced the challenge of integrating its Daily Management (DM) practices across multiple global locations. The company had traditionally relied on physical boards for DM meetings, which worked well in centralized locations but posed difficulties for teams spread across different countries and time zones. The need for real-time data access, enhanced collaboration, and maintaining transparency and accountability across all levels of the organization became more pressing.
Physical Performance Boards:
• On-Site Teams: For manufacturing plants and centralized offices, Siemens continued to use physical performance boards. These boards displayed key performance indicators (KPIs) related to safety, quality, delivery, inventory, and productivity (the +QDIP system). The physical boards allowed on-site teams to quickly identify gaps between targets and actual performance, fostering immediate problem-solving discussions during daily stand-up meetings.
• Enhanced Accountability: Physical boards facilitated accountability as team members wrote down actions and updates by hand, reinforcing their commitment to addressing issues promptly.
Workflow Boards:
• Process Visualization: Siemens introduced workflow boards to track the progress of critical processes, such as order processing and product development. These boards displayed the stages of each process, from initiation to completion, allowing teams to monitor progress and identify bottlenecks.
• Standardized Information: The workflow boards used standardized cards for each item, detailing essential information such as task owner, due date, and status. This standardization ensured consistency and clarity across all locations.
Resource Planning Boards:
• Resource Management: Siemens implemented resource planning boards to manage the allocation and utilization of critical resources, including personnel, machinery, and materials. These boards tracked availability, utilization rates, and maintenance schedules, ensuring that resources were efficiently allocated to meet production demands.
Virtual Boards:
• Remote Teams: To integrate remote teams and maintain seamless communication, Siemens adopted virtual boards using digital tools such as Microsoft Teams and Trello. Virtual performance boards mirrored the physical boards, displaying the same KPIs and trends.
• Real-Time Data Access: The virtual boards were linked to Siemens’ data systems, providing real-time updates on performance metrics. This connectivity allowed remote teams to access up-to-date information and participate fully in DM meetings, regardless of their location.
• Collaboration and Flexibility: Virtual boards facilitated collaboration among dispersed teams. Team members could update metrics, track actions, and engage in problem-solving discussions from any location, ensuring that the DM process remained robust and inclusive.
Outcome
Improved Transparency and Accountability: The hybrid board system enhanced transparency across Siemens’ global operations. Both physical and virtual boards provided a clear, real-time view of performance metrics, ensuring that all team members were informed and accountable.
Enhanced Collaboration: The combination of physical and virtual boards fostered better collaboration among on-site and remote teams. Daily stand-up meetings became more efficient, with team members actively participating and contributing to problem-solving efforts.
Increased Efficiency and Responsiveness: Real-time data access enabled Siemens to respond more quickly to performance issues. Teams could identify and address gaps promptly, leading to improved process stability and operational efficiency.
Sustained Continuous Improvement: The structured approach to DM, supported by the hybrid board system, reinforced Siemens’ culture of continuous improvement. Teams were empowered to take ownership of their metrics, engage in proactive problem-solving, and drive incremental improvements in their processes.
Adaptability During COVID-19: The hybrid system proved invaluable during the COVID-19 pandemic. With the sudden shift to remote work, Siemens’ existing virtual board infrastructure ensured that DM processes continued uninterrupted. Teams adapted quickly to the new normal, maintaining productivity and performance standards despite the challenges.
Siemens’ implementation of a hybrid board system illustrates the effectiveness of combining physical and virtual boards to manage diverse and dispersed teams. By leveraging the strengths of both formats, Siemens enhanced transparency, accountability, and collaboration, ensuring that its DM processes remained robust and effective. This approach not only improved operational efficiency but also reinforced the company’s commitment to continuous improvement and excellence in business performance integrity.
Exercise 2.6: Designing and Implementing a Hybrid Board System
Course Manual 7: Stakeholder Mapping
Daily Management stakeholder mapping is an essential and recurrent exercise that ensures the DM process remains relevant and effective. This activity is particularly crucial whenever there are changes in the environment of a DM board process, such as organizational restructuring, shifts in business strategy, or changes in stakeholder priorities. Conducting stakeholder mapping helps to identify and understand the needs, expectations, and influence of all relevant stakeholders, ensuring that their perspectives are adequately represented in the DM process.
This is fundamental when establishing a DM board for the first time, as it lays the groundwork for a comprehensive and inclusive approach to performance management. However, stakeholder mapping should not be a one-time activity; it must be revisited regularly to ensure continued alignment with evolving business needs and stakeholder expectations. Regular updates to the stakeholder map help to adapt to changes in the internal and external business environment, ensuring that the DM process remains dynamic, responsive, and aligned with the overall goals of the organization.
The Importance of Stakeholder Mapping
Stakeholder mapping plays a vital role in the effectiveness of a DM system. By identifying and understanding the key stakeholders involved in or affected by the DM processes, teams can ensure that the right metrics are tracked, and the appropriate actions are taken to meet stakeholder expectations. This process helps in creating a more targeted and efficient DM board that can drive continuous improvement and accountability.
Initial Brainstorming Session
The stakeholder mapping process begins with a brainstorming session. During this session, the team aims to identify as many potential stakeholder Key Performance Indicators (KPIs) as possible. This creative exercise encourages team members to consider all possible angles and perspectives, ensuring a comprehensive list of KPIs that reflect the interests and needs of various stakeholders.
Steps in the Brainstorming Session:
1. Gather the Team: Assemble a diverse team that includes members from different departments and levels within the organization to get a broad perspective on stakeholder needs.
2. Identify Stakeholders: List all internal and external stakeholders who are involved in or affected by the DM processes. This may include employees, managers, customers, suppliers, and regulatory bodies.
3. Generate KPIs: Encourage team members to suggest KPIs that each stakeholder might consider important. These KPIs should cover various aspects of performance, such as quality, delivery, cost, and customer satisfaction.
4. Document Ideas: Use tools like whiteboards, sticky notes, or digital collaboration platforms to document all suggested KPIs during the brainstorming session.
Narrowing Down KPIs
After the brainstorming session, the next step is to rationalize the extensive list of potential KPIs and narrow it down to the critical few that will be displayed on the DM board. This process involves evaluating each KPI based on its relevance, measurability, and impact on the organization’s objectives.
Steps in Narrowing Down KPIs:
1. Evaluate Relevance: Assess how each KPI aligns with the organization’s strategic goals and stakeholder expectations. Focus on KPIs that directly influence business performance and stakeholder satisfaction.
2. Assess Measurability: Ensure that each KPI can be measured accurately and consistently. KPIs should have clear definitions and standardized measurement methods.
3. Determine Impact: Prioritize KPIs based on their potential impact on the organization’s performance. Select KPIs that drive significant improvements and provide actionable insights.
4. Reach Consensus: Engage the team in discussions to reach a consensus on the final set of critical KPIs. Ensure that everyone agrees on the importance and relevance of the selected KPIs.
Continuous Review and Adjustment
Stakeholder mapping is not a one-time activity. It should be revisited regularly to ensure that the DM board remains relevant and effective in meeting stakeholder needs. Changes in the business environment, strategic priorities, or stakeholder expectations may necessitate adjustments to the KPIs tracked on the DM board.
Steps in Continuous Review:
1. Schedule Regular Reviews: Set regular intervals (e.g., quarterly or bi-annually) to review and update the stakeholder map and KPIs.
2. Gather Feedback: Solicit feedback from stakeholders to understand their evolving needs and expectations. Use surveys, interviews, or feedback sessions to gather insights.
3. Analyze Performance: Review the performance of current KPIs and assess whether they are providing the desired insights and driving improvements.
4. Make Adjustments: Based on feedback and performance analysis, make necessary adjustments to the stakeholder map and KPIs to ensure continued alignment with organizational goals.
Effective stakeholder mapping ensures that DM boards are aligned with the needs and expectations of key stakeholders. By regularly engaging in this process, organizations can create DM systems that drive continuous improvement, accountability, and stakeholder satisfaction. This foundational activity is crucial for establishing and maintaining a robust DM system that supports Business Performance Integrity (BPI).
The Boss’s Perspective
From the boss’s perspective, stakeholder mapping involves understanding the vertical KPI cascade from upper management down to the team level. This perspective is crucial as it links the efforts of individual teams directly to the higher-level objectives and metrics that senior leadership is focused on. By aligning a team’s activities with these upper-tier KPIs, it ensures that the team’s efforts contribute effectively to the overall success of the organization. This alignment helps in maintaining a clear line of sight from the strategic goals set by leadership to the day-to-day operations of the team, thereby fostering a cohesive and coordinated approach to achieving business objectives. Additionally, this perspective facilitates the identification of key performance indicators that are critical for measuring progress towards these goals, allowing for more informed decision-making and resource allocation. Understanding this vertical alignment also aids in prioritizing initiatives and actions that will have the most significant impact on the organization’s success, ensuring that the team’s contributions are both relevant and valuable to the overarching strategic plan.
Understanding Upper-Tier KPIs
Upper-tier KPIs are often broad and strategic, focusing on the overall performance of the organization. These KPIs can include metrics such as overall profitability, market share, customer satisfaction, and operational efficiency. As these KPIs trickle down through the organization, they become more specific and actionable at each level. It is essential to understand these KPIs and how they cascade down to the team level.
For example, at the organizational level, profitability might be measured as overall profit margins. This KPI could cascade down to a team as a focus on cost reduction or revenue enhancement strategies. Similarly, upper management might track customer satisfaction scores, which could translate to KPIs related to quality assurance, on-time delivery, or customer feedback response times at the team level.
Connecting Team Efforts to Upper-Level KPIs
To effectively align team efforts with upper-level KPIs, it is crucial to identify how the activities and processes managed by the team contribute to these broader goals. This involves breaking down the upper-level KPIs into more granular, actionable metrics that the team can influence directly.
Steps to Connect Team Efforts to Upper-Level KPIs:
1. Identify Relevant Upper-Tier KPIs: Start by identifying which upper-tier KPIs are relevant to the team’s scope of work. This requires a clear understanding of the strategic goals and performance metrics set by senior leadership.
2. Break Down KPIs: Decompose these high-level KPIs into specific, actionable metrics that the team can impact. For example, if customer satisfaction is an upper-level KPI, break it down into metrics such as response time to customer inquiries, defect rates, and delivery times.
3. Align Team Activities: Map the team’s activities and processes to these specific metrics. Ensure that every team member understands how their work contributes to the broader organizational goals.
4. Develop Leading Indicators: Use the insights gained to develop leading indicators at the team level. These indicators should provide early warning signs and actionable insights that help keep the upper-level KPIs in the green. For example, tracking the number of customer complaints resolved within 24 hours can be a leading indicator for overall customer satisfaction.
5. Monitor and Adjust: Regularly monitor these metrics and adjust team activities as needed to ensure alignment with the upper-level KPIs. Use the DM board to display these metrics clearly, highlighting areas that need attention and celebrating successes.
Consider a scenario where a team is responsible for manufacturing a key product. The upper management has set a strategic goal to improve overall customer satisfaction by reducing delivery times. In this case, the team’s efforts to streamline production processes, minimize downtime, and improve quality control directly contribute to achieving this goal.
Example Metrics:
• Production Efficiency: Measure the percentage of products completed on time.
• Quality Control: Track defect rates and aim to reduce them.
• Process Optimization: Monitor the time taken for each production stage and identify bottlenecks.
By focusing on these specific metrics, the team can help ensure that the broader goal of improving customer satisfaction is met, thereby aligning efforts with the organization’s strategic objectives.
Understanding and aligning with the boss’s perspective is essential for effective stakeholder mapping. By connecting team activities to upper-level KPIs, it is possible to drive performance improvements that contribute to the overall success of the organization. This alignment not only ensures that team efforts are focused on what matters most but also fosters a sense of purpose and accountability within the team.
The Customer Perspective
The customer perspective in stakeholder mapping is critical for understanding how a team’s activities impact the end users or customers of its products or services. This perspective involves identifying who the customers are, gaining a deep understanding of their needs and expectations, and ensuring that the team’s performance aligns with customer satisfaction and success. By focusing on the customer perspective, teams can better tailor their processes and outputs to meet or exceed customer expectations, leading to improved customer loyalty and positive business outcomes. This approach requires continuous engagement with customers to gather feedback, monitor satisfaction levels, and adapt strategies to address any emerging needs or issues. Ultimately, integrating the customer perspective into stakeholder mapping ensures that the team’s efforts are always oriented towards delivering value and enhancing the customer experience, which is crucial for long-term success and competitiveness in the market.
Identifying Customers and Their Needs
Customers can be both internal and external to the organization. Internal customers might include other departments or teams within the company that rely on your team’s output to achieve their objectives. External customers are the end users of your products or services.
Steps to Identify Customers:
List Internal Customers: Identify other teams or departments that depend on your team’s deliverables. For example, if you are in the manufacturing department, your internal customers could include the sales and logistics teams.
List External Customers: Identify the end users of your products or services. This could be individual consumers, businesses, or other organizations that purchase and use your products.
Understand Customer Needs: Engage with your customers to understand their needs, expectations, and pain points. This could involve surveys, feedback sessions, or direct conversations.
What Customers Measure on Their DM Boards
Understanding what your customers measure on their DM boards provides insight into what they value most. These metrics can vary widely depending on the nature of the customer and the industry but often include:
• Quality Metrics: Measures of product or service quality, such as defect rates, error rates, or satisfaction scores.
• Delivery Metrics: Timeliness of delivery, including on-time delivery rates and lead times.
• Cost Metrics: Cost efficiency and value for money.
• Service Metrics: Customer service responsiveness, such as resolution times for complaints or queries.
Aligning Team Activities with Customer Expectations
To keep customer teams happy, it is essential to align your team’s activities with the metrics that your customers are measuring. This involves translating customer-focused metrics into actionable KPIs for your team.
Steps to Align Activities:
Map Processes: Identify the processes through which your team delivers products or services to the customers. Understand how each process step impacts the customer’s experience.
Identify Key Metrics: Determine the key metrics that reflect customer satisfaction and success. These should be measurable and directly linked to your team’s activities.
Develop Leading Indicators: Create leading indicators that provide early warnings of potential issues. These indicators should be actionable and help your team take proactive steps to meet customer expectations.
Examples of Leading Indicators for Customer Satisfaction
Quality Assurance:
• Defect Rate Monitoring: Track the rate of defects in products before they reach the customer. A decreasing defect rate indicates improving quality.
• Customer Complaints: Monitor the number of complaints received. A high number of complaints could indicate issues with quality or service.
Delivery Performance:
• On-Time Delivery Rate: Measure the percentage of deliveries made on time. Consistently high on-time delivery rates reflect reliability and efficiency.
• Order Fulfillment Time: Track the average time taken to fulfill an order from receipt to delivery. Shorter fulfillment times enhance customer satisfaction.
Service Responsiveness:
• Response Time: Measure the time taken to respond to customer inquiries or complaints. Faster response times improve customer perceptions of service quality.
• Resolution Time: Track the time taken to resolve customer issues. Quick resolution times indicate effective problem-solving and customer care.
Practical Application
Consider a scenario where your team is responsible for manufacturing components for a larger product assembled by another department. The internal customer in this case is the assembly department, which relies on timely and high-quality components to meet its production schedules.
Example Metrics:
• Internal Quality Score: Measure the quality of components before they leave your department. Aim for a low defect rate.
• Internal Delivery Schedule Adherence: Track adherence to internal delivery schedules to ensure components reach the assembly department on time.
• Internal Customer Satisfaction: Conduct regular feedback sessions with the assembly team to gather insights on performance and areas for improvement.
By focusing on these metrics, your team can ensure that it meets the expectations of the internal customer, thereby contributing to the overall efficiency and effectiveness of the organization.
The customer perspective in stakeholder mapping ensures that your team’s activities are aligned with the needs and expectations of both internal and external customers. By understanding what customers measure and value, you can develop leading indicators that help your team proactively meet customer demands and enhance satisfaction. This alignment not only improves customer relationships but also drives overall business performance and integrity.
The Team Perspective
The team perspective in stakeholder mapping is crucial yet often overlooked. Engaging with team members to understand their views and experiences can significantly enhance the Daily Management process. This involves actively seeking input from the team about what contributes to their sense of success and what challenges they face. By focusing on these insights, leaders can identify key factors that influence team morale and performance. Addressing these factors not only improves the DM process but also fosters a sense of ownership and accountability among team members. When team members feel that their contributions are valued and their concerns are addressed, they are more likely to be engaged and committed to achieving the team’s goals. This sense of ownership and accountability is essential for an effective DM system, as it ensures that everyone is aligned with the team’s objectives and motivated to continuously improve their performance.
Importance of the Team Perspective
Understanding the team perspective is key to creating a Daily Management (DM) process that resonates with those directly involved in day-to-day operations. This approach ensures that the DM system is not only top-down but also incorporates valuable insights from the bottom up. When team members feel heard and their inputs are valued, they are more likely to be engaged and committed to the DM process.
Brainstorming with the Team:
A practical way to incorporate the team perspective is through brainstorming sessions. These sessions aim to identify what specific recurrent successes or failures make team members feel accomplished or frustrated. This exercise helps in pinpointing the leading indicators that truly matter to the team and can drive performance improvements.
Steps for a Team Brainstorming Session:
Gather the Team: Bring together all team members in a comfortable setting where they can freely share their thoughts and experiences.
Set the Context: Explain the purpose of the session, emphasizing the importance of their input in shaping the DM process.
Ask Key Questions: Encourage the team to reflect on their daily or weekly experiences. Ask questions like:
• What achievements make you feel proud at the end of the day?
• What recurring issues or challenges do you face that affect your performance?
• What aspects of your work do you believe contribute most to the team’s success?
Document Responses: Use tools like whiteboards, sticky notes, or digital platforms to capture all responses. Ensure that everyone’s input is recorded.
Connecting Team Insights to DM
The insights gained from the brainstorming session can provide valuable information for developing leading team indicators. These indicators should reflect the team’s perspective on what constitutes success and areas for improvement.
Examples of Leading Team Indicators:
Daily Accomplishments: Track the number of tasks completed successfully each day. This could include production targets met, quality checks passed, or customer queries resolved.
Recurring Issues: Identify common challenges or bottlenecks that team members face regularly. Monitoring these can help in developing proactive solutions.
Team Morale: Conduct regular surveys or feedback sessions to gauge team morale and satisfaction. High morale often correlates with better performance and engagement.
Behavioral Aspects: Highlight any specific behaviors that contribute to team success, such as collaboration, communication, or problem-solving skills. Recognizing and encouraging these behaviors can drive continuous improvement.
Practical Application
Consider a scenario where a team is responsible for customer support. Engaging with the team might reveal that quick resolution of customer issues and positive feedback from customers make their day. Conversely, frequent technical issues or unresolved queries might be sources of frustration.
Example Metrics:
First Contact Resolution (FCR) Rate: Measure the percentage of customer issues resolved on the first contact. A high FCR rate indicates efficient problem-solving and customer satisfaction.
Customer Feedback Scores: Track feedback scores provided by customers after each interaction. Positive feedback reflects good performance.
Technical Issue Reports: Monitor the number of technical issues reported by the team. Addressing these promptly can improve team efficiency and morale.
By focusing on these metrics, a DM process can be created that not only aligns with the organization’s goals but also addresses the team’s needs and enhances their performance. This balanced approach ensures that team members feel valued and motivated, leading to a more effective and cohesive DM system.
The team perspective in stakeholder mapping is vital for creating a DM process that is inclusive and effective. By understanding and incorporating what makes the team members feel successful or challenged, you can develop leading indicators that drive performance improvements and foster a sense of ownership and accountability. This approach ensures that the DM system is robust, dynamic, and aligned with the experiences of those who are directly involved in executing the processes.
Mapping Key Processes
Mapping key processes is an essential step in stakeholder mapping. This activity involves identifying the critical processes where the team plays a crucial role and understanding how these processes impact the overall performance of the organization. Through this mapping, teams can pinpoint their responsibilities and the specific activities that contribute to broader organizational goals. By visualizing these processes, teams can identify key areas where their input is most significant, enabling them to develop relevant and effective leading indicators. These indicators are aligned with the team’s responsibilities and objectives, ensuring that their efforts are focused on activities that drive performance and achieve desired outcomes. This systematic approach not only clarifies the team’s role within the larger organizational context but also enhances accountability and precision in performance management.
The Importance of Process Mapping
Process mapping provides a clear and visual representation of the workflows and activities that your team engages in. It helps identify the critical steps, inputs, and outputs of each process and highlights any potential bottlenecks or inefficiencies. This understanding is crucial for improving processes, enhancing performance, and ensuring that your team’s efforts are aligned with organizational goals.
Steps for Process Mapping:
The first step is to identify the key processes that your team is involved in. These core activities significantly impact your team’s and organization’s performance. Examples might include product development, customer service, sales operations, or manufacturing processes. Engaging the team in the process mapping exercise is essential, as their firsthand knowledge and insights are invaluable for accurately mapping the processes and identifying critical steps.
SIPOC
Using the SIPOC (Suppliers, Inputs, Process, Outputs, Customers) analysis is a useful tool for process mapping. It helps in defining the scope of the process and identifying all the essential elements. Once the key processes are identified, create visual maps of these processes. Use flowcharts, diagrams, or software tools to create a clear and detailed representation of each process, including all significant steps, decision points, and interactions. Clearly define the inputs required for each process step and the expected outputs. This helps in understanding the dependencies and ensuring that all necessary resources are available. Identify and highlight the critical steps in each process, which are the steps that have the most significant impact on the overall outcome and performance. Based on the process mapping, develop leading indicators that can be tracked to monitor performance and identify areas for improvement. These indicators should be specific, measurable, and actionable.
Example of SIPOC Analysis:
Consider a scenario involving the customer service process. The suppliers might include customer service representatives, the technical support team, and the product development team. Inputs would consist of customer inquiries, product information, and support tickets. The process steps might include receiving customer inquiries, logging inquiries into the system, assessing the nature of the inquiry, providing an initial response or solution, escalating to technical support if needed, following up with the customer, and closing the inquiry. Outputs would be resolved customer inquiries, customer feedback, and service reports. The customers would be end-users and internal stakeholders, such as the sales team and management.
Developing Leading Indicators
From the process mapping and SIPOC analysis, key points where leading indicators are needed can be identified. For the customer service process, potential leading indicators might include response time, which measures the average time taken to respond to customer inquiries. Shorter response times can indicate better efficiency and customer satisfaction. The First Contact Resolution (FCR) rate tracks the percentage of inquiries resolved on the first contact. A higher FCR rate suggests effective problem-solving and service quality. The escalation rate monitors the rate at which inquiries are escalated to technical support. A lower escalation rate may indicate that customer service representatives are well-trained and capable of resolving most issues. The customer satisfaction score collects feedback from customers after their inquiries are resolved to gauge satisfaction levels.
Practical Application
Consider a scenario where your team is involved in the product development process. Mapping this process can help identify key steps such as idea generation, design, prototyping, testing, and product launch. By understanding each step’s inputs and outputs, leading indicators such as the idea generation rate, which tracks the number of new product ideas generated per month, can be developed. The prototype approval rate measures the percentage of prototypes approved in the first review, and the time to market monitors the average time taken from product concept to market launch. By focusing on these indicators, the product development process can be ensured to be efficient and aligned with the organization’s strategic goals.
Mapping key processes is a vital component of stakeholder mapping. It provides a clear understanding of how team activities fit into the larger organizational framework and identifies areas where performance can be improved. Using tools like SIPOC analysis helps create a detailed map of processes, leading to the development of effective leading indicators. This approach ensures that team efforts are targeted, measurable, and aligned with both customer and organizational needs.
Case Study: Stakeholder Mapping at Starbucks
Starbucks, the global coffeehouse chain, is known for its commitment to customer satisfaction and quality service. However, as the company expanded rapidly, it faced challenges in maintaining consistent quality and operational efficiency across its numerous locations worldwide. To address these issues, Starbucks implemented a comprehensive Daily Management (DM) process, starting with stakeholder mapping.
Initial Situation: Starbucks identified several key stakeholders, including corporate executives, store managers, baristas, customers, and suppliers. Each group had distinct expectations and metrics for success. The company’s rapid expansion led to inconsistencies in service quality, customer experience, and operational efficiency.
Step 1: Understanding Upper-Tier KPIs The first step was to understand the key performance indicators (KPIs) from the perspective of upper management. The corporate executives prioritized financial performance, brand consistency, customer satisfaction, and sustainability. For instance, the CEO emphasized the need to maintain a consistent brand experience and improve profitability while adhering to sustainable practices.
Action: The regional managers translated these strategic goals into specific KPIs at the store level. For example, profitability goals were linked to store-level sales targets and cost management initiatives, while brand consistency was monitored through customer feedback and mystery shopper reports.
Step 2: Engaging with Customers Starbucks then focused on the customer perspective. They conducted surveys, focus groups, and analyzed social media feedback to understand customer satisfaction and preferences. Customers highlighted the importance of fast service, friendly staff, and consistent product quality.
Action: Based on this feedback, store managers developed leading indicators such as average wait time, customer satisfaction scores, and product quality ratings. They also introduced initiatives like mobile order and pay to reduce wait times and improve the customer experience.
Step 3: Incorporating the Team Perspective Starbucks recognized the importance of involving their employees in the DM process. They conducted workshops and team meetings to gather input from baristas and store managers about their daily challenges and successes. Employees emphasized the need for clear communication, adequate staffing, and recognition for their hard work.
Action: The store managers integrated these insights into their DM boards. They created metrics for tracking employee engagement, training completion rates, and shift coverage. For instance, they monitored the ratio of trained staff to total staff to ensure that all team members were adequately prepared to meet customer expectations.
Step 4: Mapping Key Processes Starbucks then mapped out its key processes using the SIPOC (Suppliers, Inputs, Process, Outputs, Customers) methodology. For example, in their beverage preparation process, they identified the following elements:
• Suppliers: Coffee bean suppliers, equipment manufacturers, packaging providers
• Inputs: Coffee beans, milk, syrups, cups, brewing equipment
• Process: Ordering, brewing, serving
• Outputs: Prepared beverages, customer satisfaction, sales receipts
• Customers: Coffee drinkers, local communities, corporate clients
Action: From this mapping, they identified leading indicators such as the time taken to prepare each beverage (process efficiency) and the consistency of beverage quality (output). This helped them streamline operations and ensure a high level of service quality.
Results: By implementing a structured stakeholder mapping process, Starbucks achieved significant improvements:
• Alignment: Enhanced alignment between store operations and corporate strategic goals, leading to a more cohesive effort across all levels of the company.
• Customer Satisfaction: Improved customer satisfaction scores due to faster service and consistent product quality.
• Employee Engagement: Increased employee engagement and morale, as team members felt their contributions were recognized and valued.
• Operational Efficiency: Streamlined key processes, resulting in reduced wait times and higher efficiency in beverage preparation.
Starbucks’ experience with stakeholder mapping demonstrates the importance of understanding and aligning the perspectives of all key stakeholders. By integrating the views of corporate executives, customers, and employees, Starbucks successfully implemented a robust DM process that drove performance improvements and supported strategic objectives. This case highlights the value of a structured approach to stakeholder mapping in achieving Business Performance Integrity.
Exercise 2.7: Visual KPI Catalog and Process Map
Course Manual 8: Organizing DM
We have delved into the essential inputs required for creating or revising your Daily Management (DM) board. Whether you are just starting to build your DM from scratch, already have a DM board in place, or are running your DM process in a virtual environment, the fundamental method remains consistent. This includes conducting stakeholder mapping, narrowing down to the critical few Key Performance Indicators (KPIs), and considering the types of boards required to meet the needs of your stakeholders (Boss, Customer, Team). This section provides comprehensive guidance on organizing your DM process effectively.
Stakeholder Mapping and Identifying Key KPIs
While stakeholder mapping was introduced in Course Manual 7 as a foundational activity for understanding the needs and expectations of key stakeholders, its inclusion in Course Manual 8 is essential for a more practical application in the context of organizing Daily Management (DM). In Course Manual 7, stakeholder mapping helped identify whose needs the DM process should address. Now, as we move into organizing the DM framework, it is important to revisit this mapping to ensure that the KPIs and DM boards designed truly reflect those identified needs.
Whether creating a new DM board or refining an existing one, stakeholder mapping serves as a reference point for selecting the critical KPIs and designing the appropriate boards (performance, workflow, or resource planning). By aligning the DM design directly with stakeholder expectations, organizations can ensure that their DM processes remain focused and effective, directly serving the needs of their bosses, customers, and team members. This connection between stakeholder mapping and DM organization helps ensure continuity between the planning stages of DM and its practical implementation.
The initial step in organizing your DM process involves conducting a comprehensive stakeholder mapping exercise. This crucial activity entails identifying and understanding the specific needs and expectations of key stakeholders, who typically include your boss, customers, and team members. By engaging in a thorough stakeholder mapping exercise, you can gain a clear picture of what each stakeholder values and expects, allowing you to determine the most relevant Key Performance Indicators (KPIs) that align with both the overall goals of the organization and the specific needs of these stakeholders.
Narrowing down to the critical few KPIs is a vital part of this process. Although it might be tempting to track numerous metrics, focusing on just 4-6 essential KPIs ensures that your team remains focused and that the board remains manageable and effective. These KPIs should be strategically selected to directly tie into the objectives of your stakeholders. For instance, your boss might be primarily interested in overall financial performance metrics, customers might prioritize service delivery and satisfaction metrics, and your team might focus on operational efficiency and productivity metrics. By aligning these KPIs with the goals and needs of your stakeholders, you create a streamlined and focused DM process that drives performance and accountability.
Steps for Effective Stakeholder Mapping:
Identify Stakeholders: Start by identifying all relevant stakeholders who have an interest in the performance of your team. These can include internal stakeholders such as senior management, other departments, and team members, as well as external stakeholders such as customers and suppliers.
Identifying stakeholders is the foundational step in setting up an effective Daily Management (DM) process. This involves recognizing all individuals and groups who have a vested interest in the performance and outcomes of your team. Begin by listing internal stakeholders, such as senior management, who are concerned with strategic objectives and overall company performance. Additionally, consider other departments that interact with your team and depend on your output to achieve their own goals.
Team members themselves are crucial stakeholders, as their engagement and performance are directly impacted by the DM process. On the external side, customers who rely on your team for products or services are key stakeholders, as their satisfaction and loyalty hinge on your team’s performance. Suppliers, who provide essential materials and services, also have a stake in your team’s efficiency and reliability. By thoroughly identifying all relevant stakeholders, you can ensure that the DM process is comprehensive and aligned with the expectations and needs of those who influence or are affected by your team’s performance.
Determine Stakeholder Needs: Understand the specific needs and expectations of each stakeholder group. This involves engaging with them directly through meetings, surveys, or feedback sessions to gather their input.
Determining stakeholder needs is a critical step in organizing your DM process, as it ensures that the metrics and actions taken are aligned with what matters most to those who are invested in your team’s performance. This involves engaging directly with each stakeholder group to gain a deep understanding of their specific needs and expectations. For internal stakeholders like senior management, this could involve discussions about strategic priorities and performance goals during meetings or one-on-one sessions. For other departments that rely on your team’s output, collaborative meetings or cross-functional workshops can help uncover their operational needs and expectations.
Team members’ needs can be assessed through surveys or feedback sessions, providing insights into their daily challenges and what they require to perform effectively. For external stakeholders such as customers and suppliers, structured feedback mechanisms such as surveys, interviews, or focus groups can provide valuable information about their satisfaction levels and areas for improvement. By actively engaging with all stakeholder groups, you can gather comprehensive input that informs the development of relevant and actionable KPIs, ensuring that your DM process addresses the real-world needs of those who impact or are impacted by your team’s performance.
Align with Organizational Goals: Ensure that the identified KPIs are aligned with the broader organizational goals and strategies. This alignment helps in maintaining a cohesive approach to performance management.
Aligning the identified KPIs with broader organizational goals and strategies is essential for creating a cohesive and effective performance management system. This alignment ensures that the efforts of your team directly contribute to the overarching objectives of the organization, fostering unity and purpose. To achieve this, start by thoroughly understanding the strategic goals and vision of the organization. Engage with senior management to gain insights into key priorities and performance targets. Once you have a clear picture of these higher-level goals, map them to the specific KPIs for your team.
For example, if the organization’s strategic goal is to enhance customer satisfaction, your team’s KPIs might include metrics related to service quality, response times, and customer feedback scores. By ensuring that each KPI directly supports the organization’s broader objectives, you create a clear line of sight from individual and team activities to the overall success of the company. This alignment not only helps in maintaining a cohesive approach to performance management but also motivates team members by showing them how their work contributes to the larger mission and goals of the organization. It fosters a sense of shared purpose and accountability, driving more focused and effective efforts across the board.
Select Critical KPIs: Narrow down to the critical few KPIs that are most relevant and impactful. These should be specific, measurable, achievable, relevant, and time-bound (SMART).
Selecting critical KPIs involves a careful and strategic process to ensure that the chosen metrics are the most relevant and impactful for your team and organization. Start by gathering a comprehensive list of potential KPIs that align with the needs and expectations of your stakeholders, as well as the broader organizational goals. Once you have this list, apply the SMART criteria—Specific, Measurable, Achievable, Relevant, and Time-bound—to evaluate each KPI. Specific KPIs clearly define what is being measured and why it is important. Measurable KPIs allow for tracking progress and quantifying success. Achievable KPIs are realistic and within the team’s capacity to influence.
Relevant KPIs directly contribute to the strategic objectives of the organization. Time-bound KPIs have clear deadlines or timeframes for achievement. By rigorously applying these criteria, you can narrow down the extensive list to a critical few KPIs—typically around 4-6—that provide the most valuable insights and drive performance improvements. This focused approach ensures that the KPIs are not only aligned with strategic priorities but also manageable and actionable, allowing the team to concentrate their efforts on areas that truly matter and have the greatest potential for impact.
Designing the DM Board
Once the critical KPIs have been identified, the next step is to design the actual DM board(s).
Physical Board Setup: If using physical boards, large whiteboards on wheels are ideal. These allow for flexibility, enabling you to utilize the back side for ad hoc or temporary work, including problem-solving sessions.
Visible Header: The board should have a simple, visible header that identifies the DM scope and/or team (organization unit). This header sets the context and ensures that everyone knows which team or process the board represents.
Performance Board Design: For the performance board, there are three essential design criteria to emphasize:
• The Three-Second Rule: The board should be designed so that anyone can see from a distance and within a couple of seconds if the team is winning (green) or not (red) on the 4-6 metrics displayed. This quick visibility allows team members and others to focus on areas that need attention.
• Trend Visualization: The board should clearly show the trend of the individual metrics, including the planned number/goal, actual performance, and any gaps. This helps in understanding the urgency and justification of any actions required when a metric is red.
• Action Tracking: It should be evident what actions are coming out of the meeting. This ensures accountability and follow-through on the decisions made during DM meetings.
Detailed KPI Vertical Setup
Starting from the top of the end-to-end problem-solving vertical, here is a detailed setup for each KPI:
KPI Definition and Ownership: Clearly define each KPI and state who the team owner of that KPI is, including a substitute. It may be that the person updating the numbers before the meeting is different from the owner.
Trend Chart: Below the KPI definition, include a trend chart that displays the status and trend of the metric. This chart should have a title and an explanatory legend to make it easily understandable.
Pareto Charts: Below the trend chart, include Pareto charts that depict one or more breakdowns of any gap shown in the trend chart. These charts help in problem-solving by highlighting the most significant factors contributing to the gap.
Action Tracker: Finally, include an action tracker that concludes the vertical for every metric. A good action tracker template includes:
• Date of Identification
• Issue Description
• Action(s)
• Person Responsible for Completing the Action
• Due Date
• Status
Ensure that the entire board is utilized so everything can be as large and readable as possible. If people can’t read what is on the board, they cannot contribute effectively.
Workflow Planning Boards
Workflow planning boards are designed to visually represent the flow of items (e.g., tasks, products, services) from left to right, either along a timeline or through the main steps of a process. This type of board helps teams track the progress of work items and ensures that everything is moving according to plan.
Identify Key Processes: Start by identifying the key processes that your team is involved in. These processes should be mapped out clearly on the board, showing each step from start to finish.
Visual Representation: Use visual elements such as columns, cards, and color coding to represent different stages of the process and the status of work items. For example, a sales team might use columns for stages like “Lead,” “Contacted,” “Proposal Sent,” and “Deal Closed.”
Flow Monitoring: Ensure that the board makes it easy to see if items are moving at the right speed. If items are stuck in a particular stage for too long, it should be highly visible so that the team can take timely action to address the issue.
Action Tracking: Similar to performance boards, workflow planning boards should include an action tracker to monitor and follow up on any issues or delays.
Resource Planning Boards
Resource planning boards help ensure that all necessary resources (e.g., staff, machinery, systems) are available and adequately maintained to meet process demands.
Here’s how to set up a resource planning board:
Resource Identification: Identify all the resources that are critical for your team’s processes. This includes both human resources (staff) and physical resources (equipment, systems).
Capacity Planning: Use the board to visually represent the availability and capacity of these resources. For example, a manufacturing team might track the availability of machinery and the skills of staff members.
Threshold Monitoring: The board should highlight any critical thresholds for resource availability. If resource levels fall below these thresholds, it should be clearly visible so that the team can take prompt action to resolve the issue.
Action Tracking: Just like other boards, include an action tracker to monitor and follow up on resource-related issues.
Implementation in Virtual Environments
In the modern workplace, many teams operate in virtual environments, making physical DM boards impractical. However, the principles for building virtual boards are the same as those for physical boards.
Digital Tools: Utilize digital tools and platforms that allow for real-time collaboration and updates. Tools like Microsoft Teams, Trello, or specialized DM software can be used to create virtual boards.
Accessibility: Ensure that the virtual boards are easily accessible to all team members, regardless of their location. This includes providing training on how to use the digital tools effectively.
Visibility and Interaction: Design virtual boards to maximize visibility and interaction. For instance, use color coding (green for winning, red for not winning) and ensure that the key metrics are prominently displayed.
Regular Updates: Just like physical boards, virtual boards should be updated regularly before DM meetings to keep them relevant and ensure that the meetings are focused on action rather than data gathering.
Combining Physical and Virtual: If possible, consider a hybrid approach where physical boards are used in the main office while virtual boards are accessible to remote team members. This ensures that everyone stays aligned and engaged.
Best Practices for DM Meetings
The success of the DM process largely depends on the effectiveness of DM meetings. To run successful DM meetings, preparation is key. Ensure that all necessary documents, dashboards, and data are prepared and available before the meeting. This preparation helps keep the meeting focused and efficient, allowing team members to engage meaningfully without wasting time on gathering information during the meeting.
Agenda setting is another critical aspect. Stick to a predefined agenda to ensure that the meeting stays on track. Spend minimal time discussing green metrics, as these indicate areas that are performing well. Instead, focus more on red metrics that need attention. This approach helps prioritize the discussion on areas that require immediate action and improvement.
Role clarity is essential for smooth DM meetings. Define and assign clear roles for each team member involved in the DM process. This includes designating who updates the board, who leads the meeting, and who follows up on action items. Clear roles prevent confusion and ensure that everyone knows their responsibilities, leading to more efficient and productive meetings.
Active participation from all team members should be encouraged. Everyone should feel empowered to contribute and share their insights. This inclusive approach fosters a collaborative environment where diverse perspectives can lead to better problem-solving and decision-making.
The primary goal of DM meetings should be to define and implement actions that improve performance. Therefore, it is crucial to ensure that action items are clearly documented, assigned, and tracked. Being action-oriented keeps the team focused on continuous improvement and drives accountability.
Finally, regular follow-up on action items is necessary to ensure they are completed. Use the action tracker to monitor progress and hold team members accountable. Regular follow-up not only keeps the momentum going but also reinforces the importance of the actions agreed upon during the meetings, leading to sustained performance improvements.
Organizing DM effectively requires a well-thought-out approach to stakeholder mapping, KPI selection, and board design. By focusing on the critical few KPIs, utilizing clear and accessible board designs, and maintaining robust action tracking, teams can ensure that their DM processes are effective and aligned with organizational goals. Whether operating in a physical or virtual environment, the principles of good DM remain the same, emphasizing visibility, accountability, and continuous improvement.
Case Study: General Motors (GM)
General Motors (GM), one of the largest automobile manufacturers in the world, has been known for its continuous efforts to improve operational efficiency and product quality. In the early 2000s, GM faced significant challenges in maintaining consistent performance across its numerous production plants. Issues such as frequent delays, quality control problems, and inefficiencies in resource utilization were prevalent. To address these challenges, GM decided to overhaul its Daily Management (DM) system by implementing a structured approach to organize and streamline their processes.
GM began by conducting a thorough stakeholder mapping exercise to identify key stakeholders and their needs. This included senior management, production teams, quality control departments, and external customers.
Stakeholder Mapping and Identifying KPIs
1. Identifying Stakeholders: GM identified relevant stakeholders, including internal stakeholders such as senior management, other departments (procurement, logistics), production teams, and external stakeholders like customers and suppliers.
2. Determining Stakeholder Needs: Through meetings and feedback sessions, GM gathered inputs from stakeholders. Senior management emphasized the need for improved operational efficiency and profitability. Production teams highlighted issues related to resource allocation and process bottlenecks, while customers focused on product quality and timely delivery.
3. Aligning with Organizational Goals: The identified KPIs were aligned with GM’s broader organizational goals of enhancing operational efficiency, improving product quality, and ensuring timely delivery. This alignment helped maintain a cohesive approach to performance management across all levels of the organization.
4. Selecting Critical KPIs: GM narrowed down to a few critical KPIs that were most relevant and impactful. These included production efficiency, defect rates, on-time delivery, and resource utilization. These KPIs were specific, measurable, achievable, relevant, and time-bound (SMART).
Designing and Implementing the DM Boards
1. Performance Boards: GM designed performance boards for each production plant. These boards displayed key metrics indicating whether the ‘trains were running on time’. Each metric was shown with a target and actual performance, highlighting any gaps that needed addressing. The boards were designed with an end-to-end problem-solving vertical for every metric, accommodating problem-solving and defining actions.
2. Workflow Boards: To visually follow what was happening in the processes during and between DM meetings, workflow boards were introduced. These boards showed the movement of items through the main steps of the production process. For instance, they tracked the progress of car assembly from initial assembly to final inspection. The simplest workflow board used was a Kanban Board adapted from agile software development.
3. Resource Planning Boards: Resource planning boards were created to ensure that processes were resourced to win. These boards tracked the availability and allocation of critical resources, such as skilled staff and machinery maintenance schedules. This helped in proactively managing resources to avoid bottlenecks and delays.
Best Practices for Running DM Meetings
Preparation: All necessary documents, dashboards, and data were prepared and available before the meetings. This helped keep the meetings focused and efficient.
Agenda Setting: A predefined agenda was followed, with minimal time spent on green metrics and more focus on red metrics that needed attention.
Role Clarity: Clear roles were defined and assigned for each team member, including who updated the board, who led the meeting, and who followed up on action items.
Active Participation: Active participation from all team members was encouraged, fostering a collaborative environment where diverse perspectives could contribute to better problem-solving.
Action-Oriented: The primary goal of the meetings was to define and implement actions that improved performance. Action items were clearly documented, assigned, and tracked.
Follow-Up: Regular follow-up on action items was conducted to ensure completion. The action tracker was used to monitor progress and hold team members accountable.
By organizing their DM process and implementing these improvements, GM saw significant benefits. Production efficiency improved by 15%, defect rates dropped by 20%, and on-time delivery rates increased by 25%. The new DM boards and structured meetings fostered a culture of accountability and continuous improvement, aligning the efforts of the production teams with the overall strategic goals of the organization.
Exercise 2.8: Organizing DM
Course Manual 9: Stage Setting
The cornerstone of a successful Daily Management process hinges on the coherence and organization established by the DM board and its accompanying Terms of Reference (TOR). These foundational components not only establish a clear operational framework but also cultivate alignment, accountability, and concentration within DM meetings. The DM board acts as a visual tableau, displaying vital Key Performance Indicators (KPIs) and metrics pivotal for monitoring and enhancing organizational performance. Concurrently, the TOR delineates essential procedural guidelines, meeting logistics, and rules of engagement crucial for fostering productive and impactful DM sessions. Together, these elements provide structure and clarity, ensuring that DM activities are purposeful, well-coordinated, and geared towards driving continuous improvement across the organization.
Defining Terms of Reference (TOR) for DM Meetings
The Terms of Reference (TOR) for DM meetings are instrumental in establishing a standardized and streamlined approach to Daily Management within an organization. This document serves as a comprehensive guide, encompassing critical aspects necessary for the efficient execution of DM processes. By detailing the timing, logistics, and frequency of meetings, along with the roles and responsibilities of participants, the TOR ensures consistency and alignment across teams and departments.
The TOR defines the meeting objectives, sets forth the inputs and outputs, and outlines the agenda, thereby providing a structured framework that facilitates focused and productive DM sessions. It acts as a foundational document that not only clarifies the rules of engagement but also enhances transparency and accountability within the DM process. By adhering to the TOR, organizations can effectively monitor performance metrics, drive continuous improvement initiatives, and foster a culture of proactive problem-solving and collaboration among team members.
Key components typically included in the TOR are:
Timing and Logistics: Clearly defining the timing, frequency, duration, and location of DM meetings ensures that all participants are aware of when and where these sessions occur. This clarity fosters punctuality and preparedness among team members, facilitating smooth and efficient meetings.
Establishing clear parameters around the timing, frequency, duration, and location of Daily Management (DM) meetings is essential for maintaining organizational efficiency and effectiveness. By specifying when and where these sessions take place, teams can ensure that all participants are well-informed and prepared. Clear communication of meeting times and locations reduces confusion and minimizes disruptions, allowing team members to prioritize their schedules accordingly. Moreover, defining the frequency and duration of DM meetings sets expectations for the regularity and duration of these sessions, promoting consistency and routine in organizational processes.
When participants know the expected duration, they can allocate their time more effectively, optimizing their engagement and contribution during the meetings. Additionally, specifying the location of DM meetings, whether physical or virtual, ensures accessibility and convenience for all team members, further enhancing their ability to participate actively and contribute meaningfully to the DM process. Overall, clear timing and logistics in DM meetings support punctuality, preparedness, and seamless collaboration among team members, ultimately driving improved organizational performance and goal attainment.
Participants: Listing the names of regular participants and identifying any ad hoc members who may contribute intermittently ensures that all relevant stakeholders are involved in DM discussions. This inclusivity promotes transparency and collaborative decision-making.
Ensuring comprehensive participation in Daily Management (DM) meetings involves meticulously listing regular attendees and identifying ad hoc members who may contribute intermittently. By clearly delineating these roles, organizations promote transparency and inclusivity in their decision-making processes. Regular participants, typically comprising key stakeholders from various departments and hierarchical levels, bring diverse perspectives and insights to the table. Their consistent involvement ensures continuity and alignment with organizational goals and priorities across different functional areas.
Meanwhile, ad hoc members, such as subject matter experts or project-specific contributors, enrich discussions by offering specialized knowledge or addressing specific issues as they arise. This structured approach to participant identification fosters collaborative engagement and collective ownership of DM outcomes. It also underscores the importance of involving all relevant stakeholders in the DM process, ensuring that decisions are well-informed and supported by a broad spectrum of expertise and perspectives. Ultimately, by promoting inclusivity and transparency through participant listing, organizations enhance the effectiveness and impact of DM meetings in driving continuous improvement and achieving strategic objectives.
Meeting Objectives: Articulating the specific objectives of DM meetings—whether they are focused on performance review, problem-solving, or strategic alignment—ensures that participants understand the purpose and expected outcomes of each session. This clarity helps maintain focus and drive meaningful discussions.
Clearly articulating the objectives of Daily Management (DM) meetings is paramount to ensuring their effectiveness in organizational operations. By explicitly defining whether the meetings are geared towards performance review, problem-solving, strategic alignment, or a combination thereof, participants gain a clear understanding of the session’s purpose and expected outcomes. This clarity not only helps in setting the agenda but also directs discussions towards achieving specific goals and addressing pertinent issues. For instance, if the objective is performance review, the focus might be on analyzing key performance indicators (KPIs) to assess progress against targets and identify areas needing improvement.
Conversely, if the meeting aims at strategic alignment, discussions may revolve around ensuring that departmental activities align with broader organizational strategies and objectives. By establishing precise meeting objectives, organizations foster a culture of accountability and goal-oriented collaboration among participants. This structured approach enhances decision-making processes during DM meetings, ensuring that actions taken are aligned with organizational priorities and contribute to overall performance excellence.
Inputs and Outputs: Specifying the required inputs (e.g., data, reports) and expected outputs (e.g., decisions, action items) of DM meetings ensures that discussions are well-informed and productive. This information flow is critical for driving actionable insights and facilitating timely decision-making.
Defining the inputs and outputs of Daily Management (DM) meetings is essential for ensuring their effectiveness and productivity within an organization. By specifying the required inputs such as relevant data, reports, and updates that participants need to bring to the meeting, organizations ensure that discussions are grounded in accurate and comprehensive information. This preparation not only streamlines the meeting process but also enables meaningful analysis and informed decision-making based on real-time data.
Similarly, outlining the expected outputs of DM meetings, which may include decisions made, action items identified, and follow-up tasks assigned, sets clear expectations for participants. This clarity helps in driving accountability and ensuring that discussions lead to concrete outcomes that contribute to achieving organizational goals. For example, if the input involves financial performance data, the output may be decisions on budget allocations or action items to improve cost-efficiency.
Establishing a structured flow of information from inputs to outputs enhances the efficiency of DM meetings by minimizing ambiguity and maximizing the use of meeting time. This systematic approach not only fosters collaboration and alignment among team members but also strengthens the overall DM process by ensuring that every meeting contributes towards improving operational performance and addressing key challenges proactively. By focusing on clear inputs and outputs, organizations can optimize the impact of DM meetings and drive continuous improvement across all levels of the organization.
Agenda: A structured agenda outlining the topics to be discussed and the time allocated to each agenda item ensures that DM meetings stay on track and adhere to the scheduled timeframe. It provides a roadmap for discussions, guiding participants through the meeting agenda efficiently.
A well-defined agenda is the cornerstone of effective Daily Management (DM) meetings, ensuring that discussions remain focused, productive, and aligned with organizational priorities. By clearly outlining the topics to be addressed and allocating specific time slots for each agenda item, the agenda serves as a roadmap that guides participants through the meeting process systematically. This structured approach not only helps in prioritizing key issues but also ensures that all relevant aspects of performance monitoring, problem-solving, or strategic alignment are covered within the designated timeframe.
For instance, a typical DM agenda may include reviewing critical Key Performance Indicators (KPIs), discussing operational challenges or bottlenecks, and determining action items to address identified issues. By setting clear expectations for what will be discussed and the expected outcomes of each agenda item, the agenda enhances transparency and accountability among team members. It also allows for efficient use of meeting time by minimizing digressions and ensuring that discussions contribute directly to achieving predefined meeting objectives.
An agenda encourages proactive preparation among participants, prompting them to gather necessary data and insights in advance. This preparation fosters informed decision-making during the meeting, as participants come ready to engage in meaningful discussions and propose actionable solutions. Overall, a well-structured agenda not only facilitates the smooth flow of DM meetings but also enhances their effectiveness in driving continuous improvement and operational excellence within the organization.
Board KPIs and Metrics: Central to the TOR are the KPIs and metrics displayed on the DM board. These indicators serve as benchmarks for assessing organizational performance, tracking progress toward goals, and identifying areas for improvement. The TOR specifies which metrics are displayed, ensuring alignment with strategic objectives and operational priorities.
At the heart of the Terms of Reference (TOR) for Daily Management meetings are the key performance indicators (KPIs) and metrics showcased on the DM board. These metrics play a pivotal role in providing a clear, visual representation of organizational performance, offering insights into how well the team or department is progressing towards its objectives. By delineating which specific KPIs are to be prominently displayed, the TOR ensures that the DM board reflects the strategic goals and operational priorities of the organization.
For example, these KPIs could encompass various aspects such as financial performance, customer satisfaction levels, production efficiency, or quality metrics, depending on the nature of the business and its strategic focus areas. The TOR defines not only the selection of these metrics but also their relevance in measuring success and driving continuous improvement initiatives. This clarity helps in maintaining alignment across different levels of the organization, from frontline teams to senior management, fostering a shared understanding of what constitutes success and where efforts should be concentrated.
By standardizing the selection and presentation of KPIs, the TOR facilitates consistency in performance monitoring and reporting across teams and departments. This consistency is crucial for effective decision-making during DM meetings, as stakeholders can quickly grasp performance trends, identify deviations from targets, and prioritize actions for improvement. Ultimately, the defined board KPIs and metrics outlined in the TOR serve as critical tools for promoting transparency, accountability, and strategic alignment within the organization’s daily management processes.
Rules of Engagement: Establishing clear guidelines for participation, communication, and decision-making within DM meetings promotes an environment of transparency, respect, and collaboration. Rules of engagement define how discussions are conducted, ensuring that all viewpoints are considered and decisions are made effectively.
The establishment of clear rules of engagement within Daily Management (DM) meetings is essential for fostering an environment conducive to effective collaboration and decision-making. These rules serve as guiding principles that outline expectations for how participants should interact, communicate, and contribute during the meeting process. By setting forth guidelines on how discussions are conducted, the rules of engagement ensure that all voices are heard and respected, promoting transparency and inclusivity.
For instance, these guidelines may include protocols for raising concerns or suggestions, ensuring that every participant has an opportunity to share their insights without interruption. They may also outline decision-making processes, such as consensus-building or delegation to specific roles, to streamline the resolution of issues and implementation of actions. By adhering to these rules, teams can mitigate potential conflicts, maintain focus on the agenda, and achieve productive outcomes from DM meetings.
The rules of engagement underscore the importance of mutual respect and professionalism among team members. By fostering a culture of open communication and constructive feedback, these guidelines encourage collaboration and collective ownership of outcomes. This not only enhances the efficiency of DM meetings but also strengthens team dynamics and accountability within the organization. Ultimately, clear rules of engagement ensure that DM meetings are conducted with purpose and clarity, driving continuous improvement and alignment with organizational goals.
Customization of TOR
The customization of Terms of Reference (TOR) for Daily Management (DM) meetings is critical to aligning the structure and content with the unique needs and characteristics of an organization. Several factors influence how TORs are tailored to suit specific contexts, beginning with the organizational domain and industry focus. Different industries prioritize distinct KPIs and metrics that reflect their operational priorities and strategic objectives. For example, a manufacturing company may emphasize metrics related to production efficiency and quality control, whereas a service-oriented organization might prioritize customer satisfaction and service delivery metrics.
Furthermore, the hierarchical level within an organization impacts the depth and complexity of TOR components. TORs for senior management meetings, for instance, may include strategic KPIs that align with overarching corporate goals and long-term performance metrics. In contrast, TORs at operational levels might focus on more granular KPIs that directly influence day-to-day operational effectiveness and efficiency.
The strategic focus of an organization—whether it is geared towards performance improvement or transformative change—also dictates TOR customization. Organizations in a “Perform” phase typically emphasize incremental improvements in operational metrics and efficiencies. In contrast, those in a “Transform” phase prioritize initiatives aimed at driving significant organizational change, such as new product launches or market expansions. TORs in these contexts would reflect the specific goals and metrics aligned with these strategic initiatives.
Organizational culture is another pivotal factor influencing TOR customization. Cultural nuances and behavioral norms within an organization shape how meetings are conducted, how decisions are made, and how participants interact during DM sessions. Tailored rules of engagement within TORs help address these cultural dynamics, fostering an environment of trust, respect, and open communication. For example, organizations with a collaborative culture may emphasize consensus-building and shared decision-making processes, whereas more hierarchical cultures might outline clear roles and responsibilities for decision authority.
By customizing the TOR to reflect these contextual factors, organizations ensure that their DM processes are not only relevant but also effective in driving continuous improvement and achieving strategic objectives. This customization promotes engagement and ownership among participants, enhances the clarity and structure of DM meetings, and ultimately contributes to organizational success and resilience in a dynamic business environment.
Pre-Meeting Preparation and Engagement
Effective pre-meeting preparation and engagement are critical pillars supporting the success and efficiency of Daily Management meetings within organizations. At the heart of this process is the timely updating of the DM board with current data, trends, and relevant insights prior to each meeting. This preparatory step allows participants to familiarize themselves with the latest information, review performance metrics, and identify any critical issues or trends that require attention. By ensuring the DM board is up-to-date before the meeting begins, organizations minimize the time spent on data dissemination during the session itself, thus optimizing the discussion period for strategic decision-making and problem-solving.
Punctuality and early engagement from team members before the meeting start time play a crucial role in maximizing meeting efficiency. Arriving promptly and engaging with the DM board early allows participants to digest the information, clarify uncertainties, and mentally prepare to contribute meaningfully right from the outset. This proactive approach fosters a collaborative environment where all attendees are well-informed and prepared to discuss agenda items, share insights, and propose solutions. It also reinforces a culture of accountability and commitment to meeting objectives promptly and effectively.
Encouraging pre-meeting readiness and engagement not only streamlines the flow of discussions but also enhances the overall productivity and impact of DM practices within the organization. Participants who arrive prepared are more likely to actively participate, contribute innovative ideas, and engage in constructive dialogue aimed at addressing performance gaps, implementing corrective actions, and driving continuous improvement initiatives. Ultimately, by prioritizing pre-meeting preparation and engagement, organizations can elevate the effectiveness of their DM processes, foster team cohesion, and achieve better outcomes aligned with strategic goals and operational excellence.
Flexibility and Ownership in Roles and Metrics
Flexibility and ownership in roles and metrics within Daily Management meetings are crucial for fostering a dynamic and adaptable organizational culture. While assigning clear roles and responsibilities for KPIs and metrics ensures accountability and clarity, some organizations find value in adopting a flexible approach to role distribution. This flexibility can manifest through periodically rotating roles among team members or involving cross-functional representatives in specific discussions. By diversifying role assignments, organizations promote a deeper understanding of different aspects of their operations and encourage team members to develop versatile skill sets.
Furthermore, embracing a culture of shared responsibility enhances participation and engagement during DM meetings. When team members have ownership over specific metrics or are involved in different roles, they gain broader insights into organizational performance and operational challenges. This holistic perspective not only nurtures a collaborative environment but also stimulates innovative thinking and problem-solving. Team members feel empowered to contribute diverse viewpoints, propose creative solutions, and take collective ownership of meeting objectives.
Promoting flexibility and ownership in roles and metrics also strengthens an organization’s ability to respond proactively to changing circumstances and strategic priorities. It enables teams to adapt quickly to evolving challenges, leverage cross-functional expertise, and implement effective solutions. Moreover, this approach cultivates a sense of accountability across the organization, as team members understand their roles in achieving shared goals and driving continuous improvement initiatives.
By balancing structured role assignments with flexibility and shared ownership, organizations enhance their agility, teamwork, and decision-making capabilities within DM meetings. This collaborative approach not only optimizes operational performance but also cultivates a culture of continuous learning and adaptation essential for long-term success in today’s competitive business landscape.
Establishing a robust DM board and defining comprehensive Terms of Reference are critical steps in setting the stage for effective DM practices within organizations. These foundational elements provide clarity, structure, and alignment necessary for conducting productive DM meetings that drive organizational performance and facilitate informed decision-making. By adhering to established TOR guidelines and promoting a culture of preparedness, engagement, and flexibility, organizations enhance their agility and resilience in achieving strategic objectives and sustaining long-term success.
Case Study: Toyota Production System (TPS)
Toyota Motor Corporation is renowned for its Toyota Production System (TPS), which exemplifies rigorous daily management practices and effective stage setting strategies. TPS emphasizes continuous improvement, efficiency, and quality across its manufacturing processes.
Stakeholder Engagement and KPI Alignment: In Toyota’s TPS, stakeholder engagement is integral to the DM process. Key stakeholders include production line workers, supervisors, engineers, and management. Each stakeholder group plays a crucial role in identifying KPIs aligned with Toyota’s overarching goal of lean manufacturing and operational excellence. For instance, production line workers focus on metrics like cycle time, defect rates, and inventory levels, while management tracks overall equipment effectiveness (OEE) and production costs.
Clear Terms of Reference (TOR): Toyota’s TOR for DM meetings outlines precise guidelines and expectations to ensure consistency and alignment across its global production facilities. The TOR specifies meeting frequencies, agenda items, and the roles and responsibilities of participants. This structured approach helps maintain operational standards and promotes continuous improvement initiatives.
Flexibility and Ownership in Roles and Metrics: Toyota practices flexibility in roles and metrics ownership within its DM framework. Team members are encouraged to rotate roles periodically, allowing them to gain diverse insights into different aspects of production and problem-solving. Cross-functional collaboration is also encouraged, enabling engineers, quality assurance personnel, and production managers to collectively address challenges and drive innovation.
Pre-Meeting Preparation and Engagement: Preparation is paramount in Toyota’s DM process. Before each meeting, teams update visual management boards with real-time production data, quality metrics, and any emerging issues. This proactive approach minimizes meeting time spent on data sharing and focuses discussions on identifying root causes and implementing corrective actions promptly.
Continuous Improvement and Adaptability: Toyota’s commitment to continuous improvement and adaptability is exemplified by its Kaizen philosophy embedded in TPS. Through regular DM meetings and stage setting practices, Toyota identifies inefficiencies, streamlines processes, and implements innovative solutions. This systematic approach has enabled Toyota to maintain high-quality standards, reduce waste, and enhance productivity across its global operations.
Toyota’s implementation of Daily Management and stage setting through TPS underscores the importance of stakeholder engagement, clear TOR, flexibility in roles and metrics ownership, and rigorous pre-meeting preparation in achieving operational excellence. By adhering to these principles, Toyota has not only sustained its leadership in the automotive industry but also set a benchmark for organizations worldwide seeking to optimize performance and drive continuous improvement.
Exercise 2.9: TOR
Course Manual 10: DM Meeting
The duration and structure of Daily Management meetings are critical factors that vary significantly depending on organizational needs and the scope of discussions required. In many organizations, the frequency and purpose of DM meetings dictate their length and format, from brief daily standups to more extensive monthly reviews.
Daily standup meetings, typical in manufacturing units and agile environments, are designed to be concise yet impactful. These meetings often last around 10 minutes, allowing teams to quickly review key metrics, address daily challenges, and make rapid decisions. The short duration ensures that the focus remains on immediate issues and operational adjustments, fostering alignment across team members and departments. Preparation is key here; having all necessary documents, dashboards, and data readily available before the meeting ensures that discussions are streamlined and decisions can be made promptly. This approach minimizes the need for data retrieval during the meeting, maximizing the efficiency of the limited time available.
Conversely, monthly operations reviews in larger organizations serve a broader purpose of comprehensively analyzing performance across various departments. These meetings can span up to 4 hours or longer, depending on the complexity of the organization and the depth of analysis required. The extended duration allows for in-depth discussions on strategic initiatives, financial performance, market trends, and operational challenges. Thorough preparation remains crucial in these meetings to ensure that participants are equipped with the latest data and insights. By preparing in advance, teams can delve directly into substantive discussions, leveraging the meeting time to identify root causes of issues, evaluate progress toward goals, and strategize for the future.
Regardless of meeting frequency or duration, the overarching goal of DM meetings is to maintain focus on organizational objectives and drive continuous improvement. Emphasizing adherence to a structured agenda is essential in both daily and monthly meetings. Clear agendas outline the topics to be discussed, allocate time for each agenda item, and prioritize discussions around metrics that are off-track (red metrics). This strategic approach ensures that critical issues receive the necessary attention and that decisions are grounded in data-driven insights.
Furthermore, effective DM meetings prioritize actionable outcomes. Team members are encouraged to collaborate on identifying solutions, assigning responsibilities, and defining clear action plans to address challenges highlighted during the meeting. By focusing on actionable outcomes, DM meetings become catalysts for operational improvement and alignment across teams.
The duration and effectiveness of DM meetings are shaped by their frequency, scope, and preparation. Shorter daily standups optimize decision-making and alignment, while longer monthly reviews facilitate comprehensive analysis and strategic planning. Preparation, structured agendas, and a focus on actionable outcomes are foundational elements that ensure DM meetings drive continuous improvement and contribute to organizational success. Adjusting meeting formats and durations based on organizational needs allows DM processes to remain dynamic and responsive to evolving challenges and opportunities.
Meeting Structure and Facilitation
Meeting Structure and Facilitation are crucial elements in ensuring the effectiveness of Daily Management meetings, where the role of the team lead is pivotal in orchestrating productive sessions that drive organizational performance and alignment.
At the outset of a DM meeting, the team lead assumes responsibility for setting the stage and ensuring that all participants are fully engaged. This begins with a brief check-in to gauge the readiness and focus of team members. Addressing any immediate concerns or issues raised by team members establishes a conducive atmosphere for collaboration and decision-making. This proactive approach not only enhances team morale but also ensures that discussions can proceed smoothly without distractions.
Following the check-in, the meeting progresses with metric owners presenting updates on their assigned key performance indicators (KPIs). Each metric owner provides a comprehensive overview that includes recent performance data, trends, and any deviations from established targets. This segment of the meeting is critical as it allows the team to assess progress, identify areas needing improvement, and take proactive measures to address challenges.
Input and participation from team members are actively solicited during these updates. This collaborative approach encourages diverse perspectives and ensures that decisions are well-informed and collectively supported. Team members are encouraged to share insights, propose solutions, and raise any concerns related to the metrics under review. This inclusive dialogue not only enriches the discussion but also fosters a sense of ownership and accountability among team members towards achieving organizational goals.
Once all KPIs have been reviewed and discussed, the team lead synthesizes the key takeaways and actions identified during the meeting. This summary session is crucial for clarifying next steps, assigning responsibilities, and establishing timelines for implementation. Clear and actionable outcomes ensure that the discussions translate into tangible results and facilitate continuous improvement across the organization.
Throughout the meeting, adherence to a structured agenda is paramount. The agenda serves as a roadmap, guiding discussions through predefined topics and allocating time appropriately for each agenda item. This disciplined approach helps maintain focus on critical performance areas and prevents tangential discussions from derailing the meeting’s objectives.
Facilitation skills are central to the team lead’s role in DM meetings. Beyond managing the flow of discussions, effective facilitation involves fostering a collaborative environment where all team members feel valued and empowered to contribute. This requires active listening, empathy, and the ability to navigate differing viewpoints towards consensus-building and decision-making.
Furthermore, a brief evaluation session concludes the meeting, allowing participants to reflect on the effectiveness of the discussions and decisions made. This reflection fosters continuous improvement in meeting facilitation and ensures that future DM meetings are even more impactful and aligned with organizational priorities.
In summary, the structure and facilitation of DM meetings underpin their effectiveness in driving organizational performance. By emphasizing proactive engagement, collaborative discussion, and structured decision-making, the team lead ensures that DM meetings are not only productive but also contribute to a culture of continuous improvement and operational excellence within the organization.
Application to Different Boards
Application of the Daily Management meeting structure to various types of boards, such as performance boards, workflow boards, and resource planning boards, underscores its versatility in driving organizational effectiveness and performance improvement.
Performance boards serve as a cornerstone in DM meetings, focusing on critical key performance indicators (KPIs) that measure progress towards strategic objectives. These boards provide a visual representation of performance metrics, highlighting areas where targets are met (green metrics) and where there are deviations or underperformance (red metrics). The structured DM meeting approach ensures that discussions on performance boards are data-driven and action-oriented. Metric owners present updates on KPIs, including current performance levels, trends, and any underlying issues impacting results. This enables the team to identify root causes of performance gaps and initiate corrective actions promptly.
Workflow boards, on the other hand, are designed to monitor the flow of tasks, processes, and activities within operational workflows. These boards are instrumental in identifying bottlenecks, inefficiencies, or delays that impede workflow efficiency and effectiveness. During DM meetings focused on workflow boards, team members analyze workflow metrics, such as cycle times, throughput rates, and process completion milestones. By visualizing workflow data and discussing real-time performance insights, the team can collaborate to streamline processes, optimize task sequencing, and improve overall operational agility. The structured approach of DM meetings ensures that workflow issues are addressed proactively, with clear actions defined to enhance operational efficiency and meet performance expectations.
Similarly, resource planning boards play a crucial role in DM meetings by overseeing the allocation and utilization of critical resources—whether they are human resources, financial resources, or equipment. These boards provide visibility into resource availability, utilization rates, and allocation effectiveness. During DM meetings focused on resource planning boards, discussions revolve around resource allocation strategies, capacity planning, and resource deployment to support operational demands. By reviewing resource metrics and analyzing utilization trends, the team can make informed decisions to optimize resource allocation, mitigate resource shortages, and enhance overall resource efficiency. The structured DM meeting framework ensures that resource-related challenges are addressed promptly, with clear accountability for implementing resource optimization initiatives.
Across all types of boards, the consistent application of the DM meeting structure ensures alignment with organizational objectives and strategic priorities. The structured approach facilitates a systematic review of performance metrics, promotes cross-functional collaboration, and drives continuous improvement initiatives. Moreover, by maintaining consistency in DM processes while adapting to the specific needs of different board types, organizations enhance operational transparency, decision-making agility, and overall performance management effectiveness.
In conclusion, the application of the DM meeting structure to performance boards, workflow boards, and resource planning boards exemplifies its versatility and effectiveness in driving operational excellence. By leveraging a structured approach to identify performance gaps, address operational challenges, and define actionable improvements, organizations can optimize their DM processes and achieve sustained performance improvement across diverse operational domains.
Key Characteristics of Effective DM Meetings
Effective Daily Management (DM) meetings are characterized by several fundamental aspects that contribute to their success in driving organizational performance and continuous improvement. These meetings serve as critical forums for reviewing key performance indicators (KPIs), addressing operational challenges, and aligning team efforts with strategic objectives.
Preparation is a cornerstone of effective DM meetings, ensuring that participants come equipped with relevant data, reports, and insights necessary for informed discussions. This proactive approach minimizes time spent on data retrieval during the meeting, enabling participants to delve directly into analyzing performance metrics and identifying areas for improvement. By reviewing data beforehand, team members can contribute meaningfully to discussions, propose informed solutions, and make timely decisions to address performance gaps.
Role clarity and adherence to designated responsibilities are essential for maintaining focus and efficiency in DM meetings. Each participant is expected to contribute insights based on their expertise and functional role within the organization. This structured approach ensures that discussions are comprehensive, covering diverse aspects of organizational performance relevant to each team member’s area of responsibility. Collaboration is actively encouraged, fostering an environment where diverse viewpoints are valued and considered in decision-making processes. Team members collaborate to leverage collective knowledge and experience, generating innovative solutions and strategies to optimize performance and achieve shared goals.
Flexibility and adaptability are also crucial attributes of effective DM meetings. These sessions often highlight areas for improvement or unexpected challenges that require adaptive responses and agile decision-making. Participants must remain open to change, ready to pivot strategies, and implement corrective actions based on emerging insights and evolving circumstances. A culture that embraces flexibility enables organizations to respond swiftly to market dynamics, customer needs, and internal operational changes, thereby enhancing resilience and agility.
A skilled team leader plays a pivotal role in facilitating effective DM meetings. They set the tone for the meeting by fostering a supportive and inclusive environment where team members feel valued and encouraged to contribute. The team leader demonstrates empathy and emotional intelligence, understanding the individual motivations and concerns of team members. This empathetic approach builds trust and camaraderie among team members, promoting open communication and constructive dialogue.
Accountability is another critical aspect of effective DM meetings. Discussions are anchored in factual analyses of performance metrics, ensuring that decisions and action plans are grounded in data-driven insights. The team leader guides discussions towards identifying root causes of performance issues, facilitating consensus on corrective actions, and establishing clear accountability for implementation. Regular follow-up on action items ensures that progress is monitored, obstacles are addressed promptly, and commitments are upheld, thereby driving continuous improvement and performance excellence.
In conclusion, effective DM meetings are characterized by thorough preparation, role clarity, collaboration, flexibility, empathetic leadership, and accountability. These key characteristics contribute to productive discussions, informed decision-making, and proactive problem-solving, ultimately driving organizational success and fostering a culture of continuous improvement. By embracing these attributes, organizations can optimize their DM processes, enhance operational efficiency, and achieve sustainable growth in a dynamic business environment.
Challenges and Best Practices for Leaders
Leaders overseeing Daily Management (DM) meetings encounter various challenges that require adept management and implementation of best practices to ensure the effectiveness of these crucial sessions. DM meetings serve as pivotal forums for monitoring organizational performance, addressing challenges, and driving continuous improvement initiatives.
One of the primary challenges faced by leaders in DM meetings is the risk of discussions becoming overly prolonged or deviating from the intended agenda. This phenomenon, often referred to as “meeting drift,” can undermine meeting efficiency and detract from achieving actionable outcomes. Leaders must exercise keen time management skills and maintain strict adherence to the agenda to mitigate this challenge effectively. By setting clear time limits for each agenda item and enforcing disciplined discussion practices, leaders can ensure that DM meetings remain focused and productive.
Another significant challenge for leaders is navigating complex discussions and knowing when to defer detailed or unresolved issues for further offline discussion. This challenge underscores the importance of distinguishing between issues that require immediate resolution during the meeting and those that warrant deeper exploration or analysis outside the meeting environment. Leaders should facilitate a structured approach to discussing performance metrics, encouraging a fact-based dialogue that prioritizes actionable insights and concrete solutions. This approach ensures that discussions remain productive and aligned with achieving organizational goals.
Effective course correction is essential in DM meetings to address identified performance gaps promptly and prevent issues from escalating. Leaders play a critical role in guiding discussions toward identifying root causes of performance issues, facilitating consensus on corrective actions, and assigning clear accountability for implementation. By fostering a culture of accountability and ownership among team members, leaders can ensure that action plans are implemented effectively and results are monitored rigorously to drive continuous improvement.
Leadership in DM meetings also requires cultivating an environment where team members feel empowered to contribute ideas and perspectives openly. Encouraging active participation and collaboration fosters a culture of innovation and continuous learning within the organization. Leaders should leverage their emotional intelligence to understand the individual motivations and concerns of team members, creating a supportive atmosphere where diverse viewpoints are valued and respected.
Moreover, effective communication is critical for leaders in DM meetings to articulate strategic priorities, clarify expectations, and align team efforts with organizational objectives. Transparent communication builds trust and alignment among team members, ensuring that everyone is working towards common goals. Leaders should leverage communication channels to disseminate meeting outcomes, action plans, and progress updates effectively, fostering transparency and accountability throughout the organization.
Leaders overseeing DM meetings face challenges such as maintaining meeting efficiency, navigating complex discussions, implementing effective course correction actions, and fostering a collaborative environment. By adhering to best practices such as time management, disciplined agenda adherence, facilitating fact-based dialogues, and promoting accountability, leaders can mitigate these challenges effectively. These efforts contribute to creating a dynamic DM environment where continuous improvement thrives, enabling organizations to achieve sustainable growth and success in a competitive business landscape.
Case Study: Amazon
Amazon is a multinational technology company based in Seattle, Washington, known primarily for its e-commerce, cloud computing, and artificial intelligence ventures. With a vast global footprint and diverse business operations, Amazon places a strong emphasis on operational efficiency and customer-centricity.
Challenge: As Amazon expanded rapidly across various product lines and geographical regions, maintaining consistent operational performance and customer satisfaction became increasingly complex. The company needed a structured approach to monitor and improve key performance indicators (KPIs) across its diverse business units.
Implementation of DM Meetings: Amazon implemented Daily Management (DM) meetings as part of its operational strategy to drive continuous improvement and operational excellence. These meetings were designed to provide real-time insights into performance metrics, facilitate proactive problem-solving, and promote cross-functional collaboration.
Meeting Structure and Process:
• Timing and Frequency: DM meetings at Amazon are held daily or weekly, depending on the team or department. For example, fulfillment centers might conduct daily stand-ups to review order fulfillment metrics and safety records, while software development teams might hold weekly reviews to discuss project milestones and customer feedback.
• Agenda: The agenda typically includes a review of KPIs relevant to the team’s objectives, such as customer delivery times, inventory turnover rates, defect rates, and employee productivity metrics. Each KPI is owned by a designated team member responsible for presenting updates and insights.
• Metrics Review: Metric owners utilize digital dashboards and reporting tools to present real-time data during DM meetings. Red metrics indicating performance deviations trigger focused discussions on root causes, potential impacts, and actionable solutions. Green metrics are acknowledged to reinforce successful outcomes and best practices.
• Problem-Solving: Teams engage in structured problem-solving discussions during DM meetings, leveraging methodologies like root cause analysis, DMAIC (Define, Measure, Analyze, Improve, Control), or PDCA (Plan, Do, Check, Act) cycles. Cross-functional collaboration ensures that issues are addressed comprehensively, with clear action plans and accountability.
By implementing structured DM meetings, Amazon has been able to enhance operational visibility, drive performance improvements, and foster a culture of continuous learning and innovation. The proactive monitoring of KPIs and timely problem-solving have contributed to Amazon’s ability to scale its operations while maintaining high standards of customer service and operational efficiency.
Exercise 2.10: Daily Management Meeting Simulation
Course Manual 11: DM mindset
Daily Management meetings transcend mere administrative routines, emerging as pivotal platforms for nurturing and demonstrating effective leadership. These sessions serve as crucial touchpoints where leaders, regardless of their experience level, engage directly with their teams to drive operational success and strategic alignment. For emerging leaders, DM meetings offer a unique opportunity to develop confidence and decision-making skills by handling real-time data and immediate feedback. Experienced leaders use these interactions to reinforce organizational goals, cultivate a culture of accountability, and model behaviors that reflect the organization’s values.
During DM meetings, leaders actively participate in the analysis and discussion of key performance indicators (KPIs), making them instrumental in identifying challenges and spearheading collaborative problem-solving efforts. This hands-on approach ensures that leaders are not merely overseeing but are integrally involved in the workflows and outcomes. Such involvement not only enhances the leader’s understanding of the team’s day-to-day operations but also boosts the team’s morale, as they witness their leaders’ commitment to both the team’s and the organization’s success.
Furthermore, DM meetings provide leaders with a structured environment to practice and refine various leadership styles—from directive to supportive—depending on the needs of the team and the situation at hand. By continuously adapting their approach to meet the dynamic needs of their team, leaders foster a resilient and flexible work culture that can respond adeptly to market changes and internal challenges. Thus, DM meetings are essential for any leader seeking to enhance their effectiveness, foster a positive work environment, and drive their team towards achieving excellence in all aspects of their operations.
Building Leadership through DM Meetings
Enhanced Engagement: Leaders spend significant time during DM meetings focusing on vital business indicators. This hands-on involvement allows them to guide the team effectively, ensuring that deliverables meet agreed standards of quality and timing.
Enhanced engagement in Daily Management (DM) meetings allows leaders to dedicate substantial time and attention to the most crucial business indicators. By doing so, they can more effectively guide their teams toward achieving key operational goals. This direct involvement not only helps ensure that the team’s output aligns with the agreed standards of quality and timeliness but also fosters a deeper connection between leadership and the operational aspects of the business. When leaders are actively engaged in these meetings, they can provide immediate feedback and direction, which helps clarify expectations and drive the team toward more efficient practices and better outcomes.
This active leadership role in DM meetings demonstrates commitment to the team’s success, which can significantly boost team morale and engagement. It communicates to the team that their work is critical to the organization’s success and that their efforts are recognized at the highest levels. Additionally, by focusing on these critical indicators during DM meetings, leaders can identify potential issues before they escalate, enabling more proactive management and less reactive firefighting. This not only optimizes operational efficiency but also ensures that the team remains focused on strategic goals, ultimately leading to a more agile and responsive organization.
Servant Leadership: Effective leaders use DM meetings to foster a supportive environment, acting as both coach and mentor. They delegate responsibilities clearly, empowering team members to own their roles fully. This setup not only drives accountability but also bolsters team morale and cohesiveness by making each member feel valued and integral to the team’s success.
Servant leadership is exemplified in the way leaders conduct Daily Management meetings, where they adopt roles that are both supportive and instructional, positioning themselves as mentors and coaches rather than just supervisors. By clearly delegating responsibilities, leaders empower team members to take full ownership of their tasks. This empowerment is crucial as it enhances accountability and motivates individuals by showing trust in their capabilities. It also fosters a sense of importance among team members, reinforcing that their contributions are vital to the team’s overall success.
In DM meetings, servant leaders focus on the growth and well-being of their team members, offering guidance and support to help them overcome challenges and improve their skills. This approach not only helps resolve immediate operational issues but also builds a strong foundation for long-term team development. The supportive environment cultivated in these meetings encourages open communication, where team members feel safe to express concerns, share ideas, and ask for help when needed. This openness leads to more innovative solutions and more cohesive team dynamics, as members work collaboratively towards common goals. Overall, the practice of servant leadership within DM meetings significantly enhances team morale and cohesiveness, making it a cornerstone of effective team management.
Strategic Alignment: By regularly reviewing key performance indicators with the team, leaders ensure that everyone is aligned with the organization’s goals. This alignment helps in making informed decisions that steer the team towards achieving business objectives.
Strategic alignment within the context of Daily Management meetings is critical for ensuring that every team member is not only aware of the organization’s goals but is actively working towards them. Leaders play a pivotal role in this process by regularly reviewing key performance indicators (KPIs) during these meetings, which helps to reinforce the team’s understanding of their targets and how their daily activities impact the broader organizational objectives. This ongoing review process ensures that everyone remains on the same page, reducing discrepancies in team efforts and enhancing the effectiveness of decision-making.
During DM meetings, leaders can pinpoint where the team’s efforts align with the organization’s strategic goals and where realignment might be necessary. This clarity is crucial for maintaining operational efficiency and ensuring that resources are allocated correctly to maximize productivity and meet organizational standards. Regularly aligning team objectives with those of the organization not only optimizes outcomes but also boosts morale, as team members see how their contributions directly affect the company’s success. Additionally, this strategic alignment fosters a proactive culture within the team, encouraging members to anticipate challenges and propose solutions that align with long-term business goals, thereby enhancing the organization’s ability to adapt to changes and seize new opportunities.
The influence of corporate culture on Daily Management meetings is profound and multifaceted, affecting both the conduct and outcomes of these essential organizational interactions. Corporate culture, often delineated through mission statements and core values, sets the tone for operational behavior and strategic focus, embedding principles such as customer focus, quality, integrity, and continuous improvement into the fabric of daily operations.
Cultural Integration: DM meetings serve as critical platforms where an organization’s declared values are transformed into tangible actions. For example, if an organization prioritizes customer satisfaction, this focus will directly influence the metrics monitored during DM meetings, such as customer service response times or product quality indicators. This alignment ensures that every team member is not only aware of these values but is also actively engaged in achieving them. By involving team members from the lowest levels in these meetings, organizations cultivate a sense of ownership and accountability, empowering employees to take initiative and make decisions that align with corporate values. This bottom-up approach in metric oversight ensures that values like integrity and quality are not just top-down mandates but are integrated into the decision-making processes at all operational levels.
Behavioral Impact: The settings of DM meetings provide a stage for the practical application and reinforcement of the organization’s cultural values. For instance, in a culture that esteems transparency and openness, DM meetings are structured to encourage open dialogue about challenges and failures without fear of reprisal. This environment supports a learning culture where mistakes are seen as opportunities for growth and improvement. Similarly, in cultures that value innovation and agility, DM meetings focus on rapid problem-solving and flexible response strategies, encouraging creative solutions and adaptive tactics to meet evolving market demands and operational challenges.
Feedback Loops: DM meetings facilitate continuous feedback loops between management and operational teams, allowing for real-time adjustments and fostering an adaptive operational environment. This responsiveness is particularly crucial in cultures that prioritize agility and resilience. The feedback obtained during these meetings helps refine strategies and processes, ensuring they remain aligned with external conditions and internal capabilities.
Development of Leadership Skills: Beyond operational metrics, DM meetings are breeding grounds for developing future leaders. In cultures that value leadership development, these meetings provide opportunities for emerging leaders to hone skills such as strategic thinking, decision-making, and team management in a controlled, supportive setting. The exposure to critical business functions and the opportunity to lead discussions or problem-solving sessions help in nurturing leadership qualities among team members.
Enhancement of Employee Engagement: By linking everyday tasks to broader organizational goals, DM meetings enhance employee engagement. Employees who see how their daily work impacts overall business success are more likely to feel valued and invested in their roles. This sense of purpose can elevate job satisfaction and loyalty, which are vital for long-term business success and employee retention.
The influence of corporate culture on DM processes is undeniable, shaping not only how meetings are conducted but also their effectiveness in achieving business objectives. The integration of cultural values into DM meetings ensures that these values are lived and practiced, making them integral to the organizational identity and operational excellence.
Sustaining Business Performance Integrity (BPI)
DM’s role in supporting Business Performance Integrity (BPI) cannot be overstated:
Operational Excellence: The primary aim of BPI is to deliver consistently on business promises, which directly ties into the effectiveness of DM processes. By ensuring transparency and accountability in DM meetings, leaders can promptly address deviations and align efforts with the company’s Annual Operating Plan (AOP).
Operational excellence is at the heart of Business Performance Integrity (BPI), emphasizing the critical role of consistency in delivering on business promises. This concept underscores the necessity for an effective Daily Management (DM) system that not only monitors but also enhances the performance of organizational processes. The cornerstone of achieving operational excellence through DM lies in the robust implementation of transparency and accountability mechanisms within DM meetings.
Transparency in DM meetings ensures that every participant, from top-tier leaders to front-line employees, has a clear understanding of the current performance metrics against the benchmarks set by the company’s Annual Operating Plan (AOP). This visibility is crucial because it allows all team members to see where the organization stands in real-time in terms of meeting its strategic goals. It creates a culture where data and facts drive decisions, not assumptions or incomplete information. This approach minimizes biases and enhances the decision-making process, leading to more accurate and effective management actions.
Accountability, on the other hand, ensures that individuals and teams are not only aware of their responsibilities but are also answerable for their contributions towards achieving these goals. In DM meetings, when deviations from planned performance are identified, accountability measures ensure that there is a clear delineation of responsibility for addressing these gaps. This involves not just identifying issues but also assigning action items to specific individuals or teams, along with deadlines and expected outcomes. This process ensures that every part of the organization contributes to the corrective measures necessary to realign with the AOP.
Furthermore, the integration of accountability and transparency fosters a proactive environment where potential issues can be addressed before they escalate into larger problems. Leaders play a pivotal role in this context by not only setting the expectations for performance but also by being actively involved in the review processes. Their engagement is crucial in reinforcing the importance of meeting AOP targets and in motivating teams to continually strive for improvement.
Ultimately, operational excellence through effective DM meetings enables an organization to consistently deliver on its promises, thus fulfilling the core objectives of BPI. It aligns daily operations with strategic objectives, ensuring that every action taken is a step toward overall business success. This alignment is vital for sustaining competitive advantage and achieving long-term viability in a dynamic business environment.
Real-time Adjustments: The dynamic nature of DM allows for immediate corrective actions, which are crucial for maintaining operational integrity and meeting strategic targets. This agility ensures that the organization remains on a path of continuous improvement and adaptability.
The framework of Daily Management is fundamentally designed to facilitate real-time adjustments, making it a critical component for maintaining operational integrity and achieving strategic objectives. This agility is pivotal in ensuring that an organization not only responds swiftly to immediate operational challenges but also aligns continuously with evolving business goals.
Real-time adjustments in DM meetings allow teams to quickly address performance discrepancies as they are identified. This capability is crucial in fast-paced business environments where delays in response can lead to escalated problems or missed opportunities. By integrating real-time data and feedback into the DM process, leaders and teams can make informed decisions that directly impact the day-to-day operations and longer-term strategic goals.
This approach ensures that the organization does not merely react to changes but proactively manages its operations in a way that adapts to internal and external pressures. For instance, if a particular metric such as production output falls short of the target, the issue can be immediately addressed in the DM meeting, with corrective actions planned and implemented swiftly. This could involve reallocating resources, adjusting workflows, or implementing additional quality checks.
Moreover, the capacity for real-time adjustments fosters a culture of continuous improvement within the organization. It encourages teams to constantly seek ways to enhance their work processes and outputs. This ongoing adaptation is vital in maintaining operational excellence and can lead to significant innovations that drive competitive advantage.
Ultimately, the real-time adjustment capability within DM meetings exemplifies how agile methodologies can be effectively applied to business management. It not only ensures that the organization remains responsive and resilient in the face of change but also promotes a proactive stance towards business challenges, ensuring that the organization is always poised for improvement and ready to meet its strategic targets efficiently. This adaptability is crucial for sustained success in a rapidly changing business landscape.
Empowerment through Adaptive Leadership
Empowerment through adaptive leadership is a transformative approach that plays a pivotal role in the success of Daily Management processes. This approach, which centers on understanding and adapting leadership styles to the specific needs of the team and the situation, is crucial for fostering an environment where each team member can thrive and contribute effectively to the organization’s goals.
Situational Leadership®
Situational Leadership® is a model that advocates for adjusting leadership styles according to the development level of team members involved in the DM process.
This strategy recognizes that there is no one-size-fits-all approach to leadership. Instead, it requires leaders to be dynamic and responsive, adapting their methods based on the competency and commitment levels of their team members. For example, a team member who is new to a task may require a more directive and hands-on approach, whereas an experienced member might benefit more from a delegative style, which promotes autonomy and trust.
The flexibility inherent in Situational Leadership® allows leaders to effectively address and harness the diverse potentials within their teams during DM meetings. By tailoring their approach, leaders can provide more targeted support, guidance, and motivation, thus enhancing the team’s overall productivity and engagement.
Fostering Innovation
In addition to flexible leadership, empowering teams to innovate is essential for driving continuous improvement and adaptation within the DM framework. Leaders who encourage creativity and experimentation unlock the potential for groundbreaking solutions that can lead to significant enhancements in performance and customer satisfaction. This might involve creating opportunities for team members to challenge existing processes, propose new ideas, or explore alternative solutions without fear of failure.
Encouraging a culture of innovation requires leaders to foster an environment where taking calculated risks is seen as an integral part of the development process. This environment should celebrate creative attempts, even when they do not yield successful results, recognizing that each attempt provides valuable learning opportunities. For instance, a leader might facilitate brainstorming sessions during DM meetings where team members can freely share unconventional ideas, or they might allocate resources for pilot projects that test new methods or technologies.
Implementing the DM Mindset for Adaptive Leadership and Innovation
The “DM Mindset” aims to equip leaders with the skills necessary to implement these adaptive and innovative leadership strategies effectively. It stresses the importance of:
• Developing Emotional Intelligence: Understanding and managing one’s emotions and the emotions of others to enhance decision-making and leadership effectiveness.
• Communication Skills: Articulating ideas clearly and listening actively to feedback, fostering an open and inclusive dialogue within DM meetings.
• Resilience and Flexibility: Being able to bounce back from setbacks and adapt to changing circumstances, ensuring that the team remains focused and motivated.
• Strategic Thinking: Integrating forward-thinking and strategic planning into the DM process to ensure that actions are aligned with broader organizational goals.
By focusing on these areas, leaders will be able to conduct DM meetings that are not only effective in managing day-to-day operations but also instrumental in advancing long-term strategic objectives. The ultimate goal is to foster a culture of excellence and continuous improvement, where each DM meeting serves as a catalyst for operational excellence and innovation. This mindset not only empowers teams but also aligns with the broader organizational culture, driving significant improvements in business performance and customer satisfaction.
Case Study: Intel Corp. Copy Exactly!
This method is part of Intel’s approach to quality management and operational excellence across its global manufacturing operations. By standardizing processes exactly across all facilities, Intel ensures that every team, regardless of location, uses the same materials, tools, and processes. This uniformity enables them to achieve high reliability and performance standards while minimizing variability in output. Leaders at Intel foster a mindset of precision and adherence to proven practices, which empowers teams to maintain high standards and contribute to continuous improvement efforts. This approach has helped Intel maintain its position as a leader in the semiconductor industry, demonstrating the effectiveness of a disciplined DM mindset in achieving and sustaining business performance integrity.
Exercise 2.11: DM Mindset
Course Manual 12: Your DM
This second module of the course aims to lay a comprehensive foundation in Daily Management by exploring its core components and significance. It addresses the fundamental questions of why DM is necessary, what elements it involves, and how it can be effectively implemented within an organization. Through the course, a variety of tools and concepts essential for DM, such as metrics, different types of DM boards, and stakeholder mapping have been covered. Additionally, the course delves into the softer aspects that influence DM’s effectiveness, including organizational culture, leadership, and mindset. This holistic approach ensures that learners not only grasp the technicalities of setting up and running DM processes but also understand the broader implications on team dynamics and organizational success.
The initial phase of the program focused on immersing individuals in a deep analysis of their Daily Management systems, leading to the creation of a comprehensive baseline for each organizational setup. This stage was enriched with an extensive exploration of DM principles through theoretical frameworks, practical case studies, and interactive exercises. The goal was to enable a robust development of DM practices, ensuring tighter integration across both vertical and horizontal organizational structures. This foundational period set the stage for more nuanced enhancements and a systematic improvement of DM processes across various operational levels.
The PDCA approach, also known as the Deming Cycle, is highly recommended for managing improvements within Daily Management systems. This structured method encompasses four iterative steps aimed at fostering continuous improvement. The process starts with planning, where a clear outcome or functionality for the DM process is defined alongside a detailed improvement plan. The subsequent phase involves the implementation of this plan on a limited scale to manage risks. Following implementation, the process is evaluated to assess whether the improvements meet the intended objectives. Finally, actions are taken based on the evaluation—either standardizing the change if it proves successful or revising the strategy for further improvements. This cycle’s repetitive nature ensures that enhancements are not only based on theoretical assumptions but are also validated through practical application and data analysis.
In preparation for the upcoming Workshop 3, it is crucial to consolidate the outcomes of previous PDCA cycles. This preparatory step involves gathering and synthesizing the data and insights from earlier improvement initiatives conducted under the PDCA framework. The next workshop will delve deeper into the practical applications of Daily Management, emphasizing the integral connection between DM practices and effective problem-solving. This session aims to build on the foundational DM activities by exploring advanced strategies and techniques to enhance problem-solving capabilities within organizations.
PDCA Cycle
Exploring the PDCA (Plan-Do-Check-Act) cycle’s applications across various industries provides valuable insights into its versatility and effectiveness. For instance, in the healthcare sector, PDCA has been instrumental in improving patient care processes by systematically addressing inefficiencies in patient workflows. Hospitals implement PDCA to reduce waiting times and enhance the quality of care, leading to higher patient satisfaction and safety.
In manufacturing, PDCA is applied to streamline production lines and improve product quality. A case study might detail a car manufacturer using PDCA to address defects in assembly lines, resulting in reduced waste, lower costs, and improved production efficiency. The cycle allows for quick adaptations based on real-time feedback, which is critical in a fast-paced manufacturing environment.
The service industry also benefits from PDCA, especially in areas like hospitality and retail, where customer satisfaction is paramount. Hotels use PDCA to refine guest services, from check-in procedures to room service efficiency, ensuring that guest feedback directly informs service improvements.
In each of these scenarios, PDCA supports continuous improvement by allowing organizations to test changes on a small scale, evaluate results, and refine processes before full-scale implementation. This methodical approach ensures that improvements are data-driven and aligned with strategic objectives, demonstrating PDCA’s adaptability to different challenges and industries.
Summary
Introduction to Daily Management
• Foundations of BPI: BPI is defined through a three-step approach emphasizing a solid action plan, transparency about performance, and timely course corrections.
• Purpose of DM: DM focuses on ensuring teams understand performance status at all times through effective monitoring and management practices.
Business Performance Integrity (BPI) is strategically defined through a methodical three-step process designed to enhance organizational efficiency and reliability. The process begins with the establishment of a solid action plan, which lays a robust foundation for setting clear and achievable goals. This is coupled with stringent measures for ensuring transparency in performance metrics, enabling stakeholders to have a clear understanding of the organization’s status and progress at any given time. The final step involves implementing timely course corrections, which are crucial for addressing any deviations from the set goals promptly and effectively. This adaptive approach ensures that the organization remains agile and responsive to changing conditions, maintaining integrity in its operations and commitments.
Daily Management is pivotal in ensuring that teams are consistently aware of their performance and operational status. It centers around the systematic monitoring and management of daily activities, allowing teams to stay aligned with the organization’s overall objectives. DM practices are instrumental in identifying performance gaps and operational inefficiencies in real-time. By fostering an environment where information is continuously updated and made visible, DM empowers teams to make informed decisions quickly. This ongoing vigilance enhances the team’s ability to respond to challenges proactively and maintains a steady course towards achieving business targets, underscoring the integral role of DM in driving organizational success.
Implementation of Daily Management
• Key Elements of DM: Involves leadership, clear objectives and metrics, structured accountability, and visual management tools like DM boards for displaying performance data.
• Process of DM Implementation: DM is structured in phases—preparation, installation, and sustainment—incorporating PDCA cycles for continuous improvement.
Daily Management incorporates several critical elements that contribute to its effectiveness in maintaining and enhancing performance within organizations. At its core, DM requires strong leadership to guide the initiative and foster a culture of continuous improvement. Clear objectives and metrics are essential, as they provide tangible targets for teams to strive towards and measure progress against. Structured accountability mechanisms ensure that all team members know their roles and responsibilities, enhancing the overall coherence and efficiency of operations. Additionally, visual management tools, such as DM boards, play a pivotal role by providing a clear, immediate display of performance data. These tools help in quick decision-making and keep everyone aligned with the organization’s goals.
The implementation of DM is methodically structured into distinct phases to ensure a comprehensive and effective integration into organizational processes. The preparation phase involves gaining leadership commitment and clearly defining the scope and objectives of the DM initiative. During the installation phase, the focus shifts to setting up the necessary tools and frameworks, such as DM boards, and establishing the rules and procedures that will govern the DM process. The sustainment phase focuses on maintaining and improving the processes established. Throughout these phases, the PDCA (Plan-Do-Check-Act) cycle is a critical component, providing a framework for continuous improvement. By cyclically assessing the effectiveness of DM practices and making necessary adjustments, organizations can adapt to new challenges and ensure that improvements are effectively integrated and sustained over time.
Tools and Boards in DM
• Performance Boards: Essential for visualizing key metrics and performance status, aiding in quick decision-making and accountability.
• Workflow and Resource Planning Boards: These tools track process flows and resource allocation, critical for operational efficiency.
Performance Boards are vital tools within the Daily Management framework, serving as the central hub for visualizing critical performance metrics. These boards enable teams and leaders to monitor key performance indicators (KPIs) at a glance, fostering a culture of accountability and transparency. By displaying data such as production rates, quality levels, and service delivery times, performance boards facilitate quick decision-making. They highlight areas that are performing well (green indicators) and those requiring immediate attention (red indicators), thus ensuring that all team members are aware of their progress towards organizational goals.
Workflow and Resource Planning Boards are specialized tools designed to optimize the flow of processes and the allocation of resources within an organization. Workflow boards visually map out the steps of a process, from inception to completion, allowing teams to identify any bottlenecks or inefficiencies that may be affecting operational timelines. Similarly, resource planning boards provide a clear overview of the distribution and utilization of critical resources, such as personnel, equipment, and materials. By tracking these elements, these boards help managers ensure that resources are adequately planned and deployed to meet demand without overextension, thereby enhancing overall operational efficiency and productivity.
Stakeholder Engagement in DM
• Stakeholder Mapping: Identifies key influencers and their requirements, aligning DM processes with stakeholder expectations for more effective outcomes.
• Importance of Alignment: Ensures that DM efforts are congruent with organizational goals and stakeholder needs, enhancing efficacy and strategic focus.
Stakeholder Mapping is a crucial component in the Daily Management process, focusing on identifying all critical stakeholders and understanding their specific needs and expectations. This proactive approach helps in aligning the DM activities with the interests and requirements of different groups, including internal teams, management, customers, and suppliers. By accurately mapping stakeholders, organizations can tailor their DM processes to address the most pertinent issues, ensuring that each decision and action taken is informed by a comprehensive understanding of stakeholder impacts and expectations.
The alignment of DM efforts with organizational goals and stakeholder needs is fundamental for the effectiveness of the management process. This alignment ensures that all DM activities are strategically focused and contribute directly to the organization’s overarching objectives. It also enhances the efficacy of DM processes by ensuring that they are not only responsive to the immediate operational needs but also supportive of long-term strategic ambitions. Proper alignment fosters a unified approach, reducing conflicts and redundancies while maximizing resource utilization and operational synergy across the organization.
Organizing and Conducting DM Meetings
• Structure and Conduct: DM meetings are structured to focus on critical metrics, with roles clearly defined to ensure efficient and effective sessions.
• Engagement and Adaptability: Meetings are designed to foster an environment of collaboration and flexibility, crucial for addressing real-time challenges and fostering a culture of continuous improvement.
Daily Management meetings are carefully structured to enhance focus and efficiency. These sessions are meticulously planned to center around critical metrics that reflect the organization’s immediate and strategic performance needs. The roles of each participant are clearly defined and communicated beforehand to avoid any ambiguity during the meeting. This structure ensures that every session is effective, with discussions sharply focused on evaluating metrics, solving problems, and making informed decisions swiftly and efficiently.
DM meetings are not only about monitoring and reporting but are designed to foster an environment of active engagement and adaptability. The format of these meetings encourages open dialogue and collaborative problem-solving, ensuring that all team members can contribute their insights and expertise. This engagement is crucial for addressing real-time challenges that may arise, making the meetings adaptive to the needs of the moment. Such a dynamic setting is essential for promoting a culture of continuous improvement, where the team collectively and proactively works towards refining processes and enhancing outcomes.
Developing a DM Mindset
• Leadership in DM: Emphasizes the role of leaders in cultivating a supportive environment where accountability and learning are paramount.
• Cultural Influence: Explores how organizational culture influences DM practices, and the importance of aligning DM processes with corporate values and behavior expectations.
Leadership within the context of Daily Management plays a pivotal role in shaping the effectiveness of the process. Leaders are expected to cultivate a supportive environment that emphasizes accountability and fosters continuous learning. By setting clear expectations and demonstrating commitment to the DM processes, leaders encourage team members to take ownership of their roles and contribute proactively to the team’s objectives. This leadership approach not only enhances individual performance but also strengthens the team’s overall capacity to meet its goals.
The influence of organizational culture on Daily Management practices cannot be overstated. Culture shapes how DM processes are perceived and executed within an organization. Aligning DM practices with the organization’s core values and behavioral expectations is crucial for their success. A culture that values transparency, quality, and continuous improvement will naturally support DM processes that are robust and effective. Conversely, a misalignment can lead to challenges in implementation and sustainability. Therefore, understanding and integrating cultural elements into DM practices is essential for fostering an environment that upholds corporate values and promotes operational excellence.
Case Study: HSBC
An example of a company that effectively implemented strategies aligned with Daily Management principles is HSBC. In their approach, HSBC emphasized three core areas: digital enablement, process effectiveness, and enhancing people manager capabilities. They introduced an HR mobile application that allowed for real-time performance tracking and feedback, emphasizing flexible and remote working arrangements without compromising outcomes. This tool enabled everyday performance monitoring and development, allowing managers and employees to engage in meaningful feedback exchanges regularly.
The emphasis was also placed on process effectiveness through regular goal setting and check-ins, fostering strong manager-employee relationships and maintaining high productivity levels. Furthermore, HSBC invested in developing people manager capabilities, providing continuous coaching and support resources. This holistic approach not only streamlined their DM processes but also significantly enhanced the overall employee engagement and management quality within the organization.
Exercise 2.12: DM Evaluation
Project Studies
Project Study (Part 1) – Customer Service
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 2) – E-Business
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 3) – Finance
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 4) – Globalization
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 5) – Human Resources
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 6) – Information Technology
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 7) – Legal
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 8) – Management
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 9) – Marketing
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 10) – Production
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 11) – Logistics
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Project Study (Part 12) – Education
The Head of this Department is to provide a detailed report relating to the Daily Management process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is DM
02. Why DM
03. How DM
04. DM Metrics
05. Board Basics
06. Other Boards
07. Stakeholder Mapping
08. Organizing DM
09. Stage Setting
10. DM Meeting
11. DM Mindset
12. Your DM
Please include the results of the initial evaluation and assessment.
Program Benefits
Management
- Increased predictability
- Mission control
- Strategy execution
- Leadership effectiveness
- Performance Improvement
- Timely intervention
- Increased focus
- Effective problem-solving
- Employee empowerment
- Transparent accountability
Human Resources
- Increased productivity
- Employee satisfaction
- Higher engagement
- Reduced stress
- Team collaboration
- Success criteria
- Improved communication
- Employee development
- Leadership development
- Improved problem-solving
Operations
- Improved quality
- Process improvement
- Timely Problem-solving
- Improved resilience
- Team effectiveness
- Inclusive environment
- Better alignment
- Tiered accountability
- Skilled problem-solvers
- Problem ownership
Client Telephone Conference (CTC)
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