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Insourcing at GE: The Real Story of Process, Change, Culture and Profit

Insourcing at GE: The Real Story of Process, Change, Culture and Profit | Change Leadership Watch | Scoop.it

"The focus has been on jobs coming back. It's really a process and a culture story."

GE Appliances is proving once again that the balance of process and people, aligned with a clearly articulated and understood purpose and vision, is the source of improved performance and capability development. With leadership engagement and support, this system will thrive


Excerpted:


  • There was a fishbone diagram of the production flow
  • A cardboard mockup of the factory layout which also showed how the equipment would look.
  • At 7:45 a.m. each day leaders met, then at 8:00 a.m. everyone met to review the prior day, and what they would do that day.
  • Then at 4:15 p.m. everyone met again to review what they'd done.


The water heater that resulted was a new design, with better performance: 20% fewer parts and 50% less labor.


Inventory was reduced 60%, labor efficiency improved 30%, time-to-produce was reduced 68%, and space required for the line came down by 80%.


The development team was extremely cohesive. But the problem was, the culture needed to change outside the "Big Room" and very few cultural change efforts had been made since 1994.

As the leadership began to introduce a new way of working together it had to solidify trust in the workforce and instill a level of confidence that continuous improvement was not just another initiative that would pass. This would be a journey.


Deb Nystrom, REVELN's insight:

The insourcing story of GE is actually a process & culture change story, which is how it comes to be shared here on Change Leadership Watch.  ~  D

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No More Waiting Room? Change Health Care is Implementing, as Learned From Toyota

No More Waiting Room?  Change Health Care is Implementing, as Learned From Toyota | Change Leadership Watch | Scoop.it

"Eliminating waiting rooms?  Medical Assistants that act as project managers for physicians?  The Toyota method reaches healthcare for increasing efficiency and reducing cost."


New healthcare efficiencies were featured in a special report on PBS this week.  Cleveland Clinic is shown eliminating waiting rooms.  


Virgina Mason is featured highligting the "flow director" status of medical assistants.  A crisis drove change at Virgina Mason, which brings up the idea of danger:  crises + opportunity.  How they fared:



____________________


For... routine or uncomplicated back pain, Mecklenburg offered a surprising conclusion...“most of our care process was no help at all.”


____________________



Excerpted:


A crisis drove an innovative breakthrough at Virginia Mason Medical Center. Robert Mecklenburg, MD, was chief of medicine at the hospital in 2004 when the insurance company Aetna threatened to exclude Mecklenburg’s healthcare organization from an elite network.


Aetna was in a powerful position as a purchaser of care for such major companies in the Greater Seattle area as Starbucks, Costco, and Alaska Airlines, among others.


  • At Virginia Mason, the patient was at the top of the pyramid that embodied...its vision to transform health care. But ...employers paid the bills. ...Mecklenburg realized that neither he nor his physician colleagues had ever really considered the companies paying the bills as customers.


Mecklenburg invited Starbucks and Aetna to join with Virginia Mason in forming a marketplace collaborative to identify and solve the quality and costs issues around the treatment of routine or uncomplicated back pain.


Mecklenburg found that money and time were being wasted on expensive visits with primary care physicians and specialists that added little relief to the patients’ conditions.

  

____________________

  

Mecklenburg found money and time were being wasted on expensive visits with ...physicians and specialists that added little relief to the patients’ conditions.

____________________


   

Mecklenburg offered a surprising conclusion...“The value stream showed that most of our care process was no help at all.”

  

A Virginia Mason marketplace collaborative delivered the following benefits.


  • Increased patient capacity. By reducing the number of patients who obtained procedures and tests unnecessarily
  
  • Improved treatment pathways for other health conditions including migraine headaches; breast nodules; shoulder, knee, and hip pain; acid reflux; and cardiac disease.
   
  • Evidence-based scheduling of expensive imaging tests. Using a Toyota principle called “mistake proofing” patients check boxes on a questionnaire to determine their need for MRIs and other imaging tests.


Read the full article here.


Photo credit:  frances1972 (Waiting Room) on Flickr.com


Excerpt is from Pursuing the Triple Aim: Seven Innovators Show the Way to Better Care, Better Health and Lower Costs by Maureen Bisognano and Charles Kenney. Copyright (c) 2012 by John Wiley & Sons Inc.

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What Behavior Characteristics Do the Best Change Leaders Exhibit? | Daryl Conner

What Behavior Characteristics Do the Best Change Leaders Exhibit? | Daryl Conner | Change Leadership Watch | Scoop.it

How can you be fully prepared to help assess senior-level leaders for change roles?


Daryl Conner, one of the earliest practitioners, author and consultancy for the modern change management practice, is sharing gems in a 2 part series about change leader behaviors.


__________________________


...surfacing obstacles and addressing risks are inherent

to successfully managing change

__________________________


The lists of Leader behaviors are useful references when looking at the leader case studies and examples on this curation stream.


Here are some excerpts from Daryl's 2 part series:

.

  • Approaches change as a process rather than an event
  • Guards the most important change priorities
  • Matches responsibility with authority when assigning change-related tasks/roles
.

                     - Ensures people understand that surfacing

                        obstacles and addressing risks are inherent

                        to successfully managing change

      

                     - Instills a culture where problems that are       

                       surfaced and mitigated early are seen in a positive

                       light, rather than as something to be hidden 

                        

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Leading the Continuous Innovation INFOGRAPHIC: Culture, Fringe Experiments, Customer Immersion

Leading the Continuous Innovation INFOGRAPHIC: Culture, Fringe Experiments, Customer Immersion | Change Leadership Watch | Scoop.it

How can change leaders support high performance, innovative teams? The infographic below cites 10 innovation strategies.  This is close.  There will be more of these process charts and innovation graphics.  


This one features:


Step 2:  Working at the organization's edges, the fringe & close to customers (I've heard Dr. Jeff DeGraff talk about fringe teams this year.)


Step 3:  Culture that  supports experimentation, failure.  This is ubiquitous in mention, scarce in after-the-fact reporting.  Better known examples, 3M (Post-Its) and Google (Google Lab: Buzz, Wave, etc.)


Step 6: Customer immersion, pain points


Step 10:  Metrics, measures

 

Sources include:  Christensen & Raynor, The Innovator's Solution: Creating & Sustaining Successful Growth, 2003  


Note the continuous improvement language, adjusted slightly, a 'la W. Edwards Deming:  Ready, Aim, Fire, Adjust.  Like Plan, Do, Check, Act.


Via Jonha Revesencio
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Target Managing Change, Unique & Standard, Starting With the CIO

Target Managing Change, Unique & Standard, Starting With the CIO | Change Leadership Watch | Scoop.it

"Target Corp. is among the top three or four U.S. retailers, ...a coveted position in such a volatile industry.  IT is a critical player in each move, if not a keystone."


The CIO of Target provides insight into how the giant retailer accomplished major change in the last 2-3 years.  For readers from larger companies with IT responsible for helping support major change, how does their story resonate with what you've experienced with IT as an accelerator or lever?

_________________________

  

We're making changes where [project] life cycle is a matter of days or weeks...

_________________________


Excerpts:

Target brought over Beth Jacob from an operations post, an unconventional move. Jacob was vice president of guest operations when she was tapped to lead IT as executive vice president and CIO with a budget of over $1 billion.


She oversaw Target.com's switch from Amazon.com's e-commerce platform to one that was home-grown.


At the other end of the big-project spectrum, Jacob has introduced projects that capitalize on mobile computing, such as smartphone coupons.


CIO Insight: The nature or change has changed, hasn't it? It seems that change isn't always iterative... You can't attack fires the same way because the fire's never the same.


Jacob: You're spot on. …change management is …going to be more important than ever. ...Change is something we lean into.


Because of that, the TTS team has had to change almost everything, including the way it partners [internally and externally]. And the way it approaches different organizational change initiatives.


...In the last year or so, the pace of change has significantly increased. We're making changes where the [project] life cycle is a matter of days or weeks - think about the mobile capabilities we've implemented.


CIO Insight: ...days and weeks. Can you expand on that?


Jacob: We have to be ready to bring a company offering to our guests and staff, both of whom are more tech savvy. One example would...mobile [device] coupons. Last holiday, we created a mobile-coupon program tied to our toy catalog in just a few days. ...The coupons are very easy for guests to use, very easy for our team members to work with.


[Ed. note: Target claims to be the first national retailer to offer a scanable mobile-coupon program, in 2010. Shoppers who opt in get a text-message link to a mobile Web page that can contain multiple with offers, all accessible through a single bar code. Coupons are then redeemed by a cashier scanning the bar code on the shopper's phone at checkout.]


CIO Insight: You took a big gamble ...when Target decided to abandon Amazon.com's e-commerce platform for one you built yourselves. 


Jacob: It took us just over two years to get off the Amazon platform and onto our own. Overall, it went well.


Photo source:  Wikipedia.org (en)


Click on the title or photo to read the full article.


From Deb,  Change Management is an engagement focus. Exert too much control, and you stifle it. Here's more about control issues within a project implementation:


   
    
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Cultural awareness 80% of Change Management Success, Lean Change, Internationally

Cultural awareness 80% of Change Management Success, Lean Change, Internationally | Change Leadership Watch | Scoop.it

Culture consciousness and people management present challenges greater than those related to cost trimming when implementing change, via Lebanese-born Dr. Joe Khoury.

  

Deep change expertise, communication & inclusion in goal achievement lean process is key to this review. ~  Deb

 

Excerpted:

 

__________________


...people were working 12- to 13-hour days unnecessarily – they were, after all, only paid for eight.


__________________

   

Dr. Khoury was one of three engineers lined up to relate success stories of lean principles’ implementation.


“Never underestimate the importance of culture,” Dr. Khoury cautioned.  "...Understanding your people will take you a long way towards reaching your lean goals.”


__________________

   

Through ...illustrating where teams were at in reaching their targets ...people were able to take corrective action sooner.

__________________

   

Dr. Khoury and others from the wider Methode family, including former manager Edward Chetcuti, now a lean adviser and coach, devised the VAVE (value added, value engineering) process to deliver value more efficiently.

 

The process was implemented successfully in China, where labor costs are traditionally lower, and later in the US.

 

The team also created customized software, able to provide a snapshot of the movements of major contributors to raw material cost. The software was later patented.

 

In Mr. Chetcuti earlier project, he examined behavior and processes and found that people were working 12- to 13-hour days unnecessarily – they were, after all, only paid for eight.

 

__________________


   

Information must be cascaded so that everyone within the organisation is aware of the goals,” ~ Antoine Bonello

 

_________________________

 

After classroom training & simulation, Mr Chetcuti and the team took the principles to the shopfloor. People learned to see waste and took ownership of the mission to reduce it and to get things right first time.

 

Through ...illustrating where teams were at in reaching their targets ...people were able to take corrective action sooner. Creative flow of value to the customer began soon after the company stabilised. Within eight months, profits improved significantly.

  
“Information must be cascaded so that everyone within the organisation is aware of the goals,” Betfair’s global head of process improvement Antoine Bonello, explained.

   

“We expect people to learn by themselves, but even in the best companies, employees can score very low on knowledge of what they are doing. Value engineering prevents mistakes from being replicated. ”

 

Read the full article here.

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Top Reasons Cultural Transformations Fail, Leadership Behaviors & Supporting New Structure

Top Reasons Cultural Transformations Fail, Leadership Behaviors & Supporting New Structure | Change Leadership Watch | Scoop.it

"Managers’ leadership behaviors & operational decisions get to the root of the problem with failing change efforts including cultural transformations."


“…studies show that upper management is only aware of about 4% of all the problems...”


From a post today by Graham Garrison:

.

  • “…studies show that upper management is only aware of about 4% of all the problems in the workplace while those on the bottom rung are aware of 100%.

.

  • “A huge factor is engaging managers and frontline workers before changes are implemented. The frontlines know what is working and what isn’t; get their perspective and making them a part of the change.”

.

In change, it's getting both the leadership & management behaviors & actions to aligned realization, reference Daryl Conner (Managing at the Speed of Change) and his Commitment Curve.  Garrision highlights:

.

  • Our experience is BOTH leadership and management are needed. 
.
  • Focusing on the “soft” side of culture, such as purposeful connections to the heart, an energizing vision, engaging through core values, or strengthening leadership behaviors are vital. 

.

  • [They must be] backed up by realigning operational processes and shifting key support systems 

.

  • Otherwise you'll end up with "highly motivated people who come to feel manipulated and powerless against 'the bureaucracy.'"
.

It is in the tactical and operational structures of IT, metrics/measurement, org structure and HR  (compensation, what gets people hired, fired, and promoted) where leadership & manager values become "rhetoric or reality," says Garrison.

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The Classic Change Commitment Curve, Daryl Conner's 8 Stages | Change Thinking

The Classic Change Commitment Curve, Daryl Conner's 8 Stages  | Change Thinking | Change Leadership Watch | Scoop.it

Many imitators, one original (from the 80's.)


Daryl Conner's Change Commitment Curve has been copied in many places.  This post clarifies the orgins of this classic, and often copied, with a word tweak or two, model.


Another rendition of it is listed in this recent blog post focused on managing resistance via Daryl Conner's 1993 book:  Managing at the Speed of Change.


Daryl's research from long ago spotted consistent patterns.  His model highlights a fairly predictable path organization members must travel when managing their own anxiety around change.


This path typically moves along the timeline:

  • Uniformed Optimism (blissful ignorance)
  • Informed Pessimism (informed anguish)
  • Checking out
  • Overt (public)
  • Covert (private)
  • Hopeful Realism (coming to terms)
  • Informed Optimism (realistic support)
  • Completion



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