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Topics covered: Lean, Six Sigma, Theory of Constraints, Design Thinking, Service Design, Agile

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May
17

The End of Best in Market

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Best in Market has really become a myth in today’s world. These companies that believe this are typically product focused and determine their position by the amount of features and benefits that they have over the competition. Many times market share is not a consideration. It is also believed that continuous improvement on processes, people and product will maintain that “Best in Market” position.

The competitive advantage in the “Best in Market” approach is dead wrong. Trying to outsell your competition based on these principles will at best (no pun attended) lead to only short term wins in profitability and in market share. These gains will diminish relatively quickly as competitors respond with their own improvements and innovations.

The slide show below demonstrates the new world and how the view from the  SD-Logic (The Service-Dominant Logic of Marketing by Stephen Vargo and Robert Lusch) perspective may very well be the user centric approach required. The truth is that SD-Logic thinking has struggled moving out of academia. However, it is reviving itself thanks to the thinking of many in the Service Design arena. I go one step further in the presentation stating that SD-Logic needs a process such as Lean Thinking to put it into practice.  

The End of Best in Market
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Inspiration for this presentation came from: The End of Teaching As We know it

Related Information:
Path to Participation
Do You Know the Right Job For Your Products?
Lean Canvas for Lean EDCA-PDCA-SDCA
Blog Carnival Annual Roundup 2011: Graham Hill at CustomerThink

Categories : Lean
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May
14

Root Cause Anaylsis of Success

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One of the Lean tools that is used to determine the root cause of a problem is the Fishbone Diagram, also known as the Cause and Effect Diagram or Ishikawa Diagram. It identifies and explores on a single chart the 5 – Why technique, The aim is to work down through the causes to identify basic root causes of a problem by asking the question why, 5 times.

It appears very simple but the results are outstanding. As a result, it is used very often and one that should be mastered. Why would you use it?

  • Allows various categories of causes to be explored.
  • Encourages creativity through a brainstorming process.
  • Provides a visual image of the problem and potential categories of causes
  • Analyze Complex problems that seem to have many interrelated causes

The basic layout for manufacturing consists of six categories: Materials, Machine, Measurement, Methods, Manpower and Milieu (Environment). The basic layout for administrative processes consists of four categories: Personnel, Plant Facilities, Policies and Procedures.

Cause&Effect

Depending on the situation, other categories are possible. The application is very similar in each:

  1. Select the Problem Statement, or Effect, shortened into a few key words and place it in a box on the right side of the new diagram.
  2. Use the categories above or create your own depending on the situation and connect them with a straight line to the “backbone” of the diagram.
  3. Brainstorm or determine data-driven causes for each category.
  4. Continue driving down, identifying further lower-level Root Causes.

This classic method is a powerful tool in problem solving methodology. However, can it be equally powerful for creating an analysis of strengths or successes. In the book, Appreciative Leadership , the authors use the Fishbone diagram, depicted below to illustrate the positive core or a group or team.

SAV843_Positive Change

The authors discuss this approach:

Not only does a root-cause-of-success analysis give you information about your team and your organization at its best; it also shines the light on daily acts of excellence that all too often go unrecognized. It gives credit to high performers and sets the expectation that every-
one else should follow their lead. By illuminating the best of people, processes, teams, Appreciative Leadership signals to others, “do it this way and we will all benefit.”

These institutional habits are as hard or harder to change than personal habits. One way to change the "squeaky wheel gets the attention syndrome" is with a root-cause-of-success analysis. By inviting team members or a cross-functional group of people to identify and discuss what causes their success when they are at their best, you send a clear message that what you value and want to understand is success.

The field of Appreciative Inquiry inspires me, finding it quite intriguing. After decades of problem solving, it is not an easy journey to create an appreciative look at business. It is just not a natural instinct for any of us. Using a Positive Fishbone can provide a good visual indicator for teams and leadership.

The authors also gave us 5 core strategies for successful Appreciative Leadership that I found equally enlightening.

  1. Inquiry lets people know that you value them and their contributions.
  2. Illumination helps people understand how they can best contribute.
  3. Inclusion gives people a sense of belonging.
  4. Inspiration provides people with a sense of direction.
  5. Integrity lets people know that they are expected to give their best
    for the greater good and that they can trust others to do the same.

 Accentuate the Positive, Eliminate the Negative is a recent podcast on the subject. Sounds like a good song doesn’t it? My favorite rendition of the song is a Bette Midler & Bing Crosby rendition.

Related Information:
Appreciative Inquiry instead of Problem Solving
My Engagement Strategy – Appreciative Inquiry
Mastering Positive Change

Categories : Lean
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May
10

Defining Lean IT with Steve Bell

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The Business901 podcast guest this week is Steve Bell, the founder of Lean IT Strategies LLC. Steve is a Lean Enterprise Institute faculty member, Shingo Research Prize winning author, and Lean IT pioneer. A recent blog post, When Standard Work and Customer Focus come together contains an excerpt from the podcast.

In the podcast, we started out focusing on Lean IT but it evolved into a much broader discussion. Steve has a knack of taking the complicated and making it simple. A rare quality that I typically find only in the most knowledgeable practitioners. This podcast is suited for anyone thinking about continuous improvement.


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Download Podcast: Click and choose options: Download Here  or go to the Business901 iTunes Store.

For more than twenty five years, Steve Bell has delivered a balance of Lean, business process improvement, and management consulting services. Steve published Lean Enterprise Systems: Using IT for Continuous Improvement helping to introduce the emerging discipline of Lean IT. Steve and his partner Mike Orzen later published Lean IT: Enabling and Sustaining Your Lean Transformation.

Steve is on of the keynotes at the upcoming, North American Lean IT Summit, bringing together a community of lean and agile practitioners and thought leaders from around the globe.

Related Information:
Lean Marketing Creates Knowledge for the Customer
Lean Marketers concentrate on SOAR vs. SWOT
Will the Mvp crush the Lean Startup?
Lean Thinking: Prototype early and often

Categories : Lean
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