Getting Better...But Not Quite Right
I do like to tell this to people and I and I caution you when we talk about get the day to get the fax um let's be careful teo express uh fact not opinion that's easier said than done it really is for example, if we were to go over to the shore right now look out at the horizon over the sea um could you argue that the earth is flat from that data from that perspective you bet you could people did for hundreds and hundreds and hundreds of years here with this flat just look at it could you argue that the earth isn't moving city here now if somebody were sadie we're not actually wrong the earth's moving at sixty eight thousand miles an hour through space and it's spending by the way at about eleven hundred miles an hour might you think that person's like maybe lost it alright oh, by the way the earth round what? So data? Well, you think we got it right? We think we have the fax and the real truth is we don't know much at all that's humbling to say but as soon as we think we have it all f...
igured out we have nothing figured out and that is probably the root cause to so much pain and suffering in the world end of business today so in this module we're going to get into the a and domestic analysis and dig down beneath the surface and look at things from different perspectives to see if in fact, maybe the earth is round. Maybe it is hurling through space at sixty eight thousand miles an hour and spinning it eleven hundred plus, and we just don't have the facts straight ourselves from in a whole nother perspective, the day you can look very different and that's ah that's a powerful awakening that was certainly for me, because so often, you know, is trained as we might be, um, to get the fate to get the facts, to get the day that the order to do our analysis it's truly a matter of perspective. So I know then that in the book half full um how do you how do you see the world? How do you see your life? How do you see your outcomes? Half full, half empty that's the all of course, the old, the old challenge, and so often what we think is half empty or discouraging or painful, uh, reveals itself later on is a blessing in disguise a true awakening, and we learned a lot more about who we are and what we're capable of. Uh, so we turn lost jobs into whole new careers and adventures lost loved ones in tow, new loved ones and uh wow that's what that's what life is really all about? So we're going to get into some analysis now and talk through uh this uh this segment einstein said this you've noticed I like quoting einstein a lot just because he was so uh intriguing and his insights and his discoveries and he said the significant problems we face today cannot be solved at the same level of thinking we were at when we created them what I thought somebody else created my problems I thought I was a victim of some sort that you calling me the problem's creator and the answer is that yeah actually we create our own problems more often than we think so when we do this root cause analysis we gotta drill down and say, what can we do differently all right to resolve these problems if you're solo preneurs open your business, start up most entrepreneurs who are going to make it get this very early that when I hear the bankers say no, you can't get the loan sorry for different reasons the successful entrepreneur the zen entrepreneurs going to say ok, what do I need to do differently to be more credible? Teo get to get what I need if I can't get my boss to agree with me on whatever it is I'm tryingto motivators faras change I'm not going to blame the boss what am I going to do gonna look in the mirror and say what I need to do differently this is what I'd say it was talking about we create a lot of our own problems and we don't even realize they're doing it and then we think it's somebody else's falter responsibility to solve it so this is about internal locus of control internal place of control when there's a problem, I'm going to look within to find out what I can change what I could do differently to manifest different results we indeed reap what we sow sow in this section all right, we're going to use to make go back to that discipline if you will to focus on the a and to make the analysis piece analyzing the current state we'll go back to arlene sigma game toe as a metaphor for business and life teo play with it and we can identify root causes to the top beauties and identify this system constraints the bottlenecks and then we begin to analyze potential solutions and hypotheses we test things we might wanna try changing up all right, so that's the purpose in this session so we start with these beauties early we're talking about undesirable effects what are they? Um well, they are number one they're undesirable there's things happening that we'd rather not have happened and uh they're factual, they're measurable, they're not opinions were not just winging it so we think about that simulation we played earlier and we think about some of the beauties and that simulation well consider the customer challenges the customer wasn't happy that's a uti why weren't they happy late deliveries lousy quality when they got the delivery I never knew when I was going to get the delivery okay let alone it was late what else was undesirable? We had lots of internal quality issues we have inventory piling up we had people overworked underworked lot imbalances okay and at the end of the day we had uh a big loss of money um and risk risk of survival things like that we start toe really drill into this we might say well let's let's just call our top ten you tease these ten and this is in no specific order but I want you to think and for those of you at home think about your business think about your place in your business wherever you might be brainstorm think through what? What are the top beauties and I be able to back these up with data but what are the top beauties I'm experiencing and work? I think time, money, relationships, service levels things like that so we said well one one ut was that we missed deliveries and we had late deliveries and we could put numbers and dollars on that if you said to me john show me the day to prove that I could do it couldn't we could all do it all right well the wing the client and they'll tell you until tell you right now they wanted thirty in ten minutes they get zero okay when they did get there first order it wasn't any good so we had missed in late deliveries here's the data wait poor quality right can I prove it course I can we had forty nine out of sixteen defects at the customer not to mention what we had internally with long cycle times can you prove it well it took fourteen and a half minutes in terms of total cycle time to get into the client and if we measure the individual cycle times to do one sheet and added it up well we took a very long time to do something that could have taken under a minute perhaps high inventory can you prove it yes negative customer feedback can you prove it here's the data a lot of these change events that we run these caissons and things will actually get riel clients to either come in or will get quotes from them will blow him up and stick him up on the wall and when we bring the leadership team in to get grounded in reality get grounded in the current state we look so here's a here's a quote from this company thiss customer here's a quote from this company or this customer um and they're brutal so that's like so like the undercover boss kind of thing um way lost revenue not another word we left money on the table can we prove it? Well, yeah, but instead of these uh fourteen that got rejected um if they would have been good that was that's one hundred and forty dollars in this game so we left revenue top line on the table and only captured twenty dollars here we lost money we gotta read dollar symbol there yes, indeed low productivity we don't know exactly how low in terms of reference to something else but we could find out we will okay, I'll give you a clue. Um we expect at least point seven five productivity when we're done with us point seven five where at point zero to those two numbers aren't even close. Imagine going from point zero two two point seven five okay, I mean, approving improving it tenfold I would move it from point oh to two point two we need to get the point seven five that's a significant increase. High overtime costs we had to run a four and a half minutes of overtime. We didn't charge time and a half for extra payments for that but just the same it was a high cost and we had employee morale issues with people just saying, you know, I'm I'm frustrated this is ridiculous I'm on a losing team maybe I should just polish up my resume and come up with a better of the career plan or whatever so that kind of thing happens incidentally, all of these beauties were identified before you even played the game, so the game you went through in round one is very predictable it's a bad system it doesn't matter who you are how good you are it's sticking dots are dark drawing diamonds it shows up every time it's a good people in a bad system bad system wins so these top ten you tease show up all that the numbers change obviously you know, if some of the actual numbers but the udi's don't there there every time, every time in round one so if we say you know what these are top ten we could go on and on we could dig up more you tease but we're not gonna boil the ocean let's figure out what what's behind these top ten beauties how do we do that? What we pull out our analysis piece of domestic now here's the important thing about domestic so far so often and you could challenge me on this if you like when we're facing a problem or some conflict oftentimes we skip d m and a and we go right to I know what we should do here's the here's what we gotta do here's the solution and we often make things worse so we solve one problem and create two or three more so the idea of jamaica's rigorous is it might be is to say time out we're going to get aligned as a team we're going to figure this out together and we're going to start with definition so the idea is as a team we need to agree on current state and be aligned we need to agree on the baseline the before the fax and get a line next we need to agree on the root causes and get a line I'll tell you what if we're aligned here here and here by the time we get to hear we're a team we're not fighting over solutions and ideas here's what we should do and I disagree we should do this now I disagree I think we should do this we're not in conflict because where we've already built some credibility and trust among the team so we're more aligned this then becomes much more of a synergistic effort as opposed to a competition between option a or option b it's it's critical okay so in the measure phase we uh during the analysis face following the measure phase we've got our top beauties were gonna introduce them cause and effect tools this is where knowledge is gained so far all we have his data and data is not knowledge data is data and knowledge is something different so we're going to look a tte gaining knowledge of cause and effect tools were going to be looking for what I like to call the major levers you give me a lever long enough I can move the world that kind of concept so what are those leverage points I mean if I could just solve one leverage point and make twelve beauties go away or ten you tease go away wow that'd be that'd be impactful I don't wanna have twelve different projects for twelve different ut he's all right if I consult twelve beauties with one or ten you tease with one that's that's that's ingenious so that's what we're looking at here all right so what does major levels levers were going to some process analysis so what's that process you know look like and capable of and then we'll take off just a little bit of time on something called theory of constraints toc and that's to queue up a kaizen we will do in the next session and in the next segment all right where we uh we actually do ah a theory of constraints type kaisa and that'll be fun a lot of exercise exercise is coming up um to bring this all to life so let's start with a cause and some of the cause and effect tools that I'm goingto cover here I'm going to start with something called the aipo diagram which stands for input process output diagram this is a great tool for gaining knowledge we'll also take a look at something called the issue cow a diagram with a fishbone chart very simple tool but it's an organized way to brainstorm and gain knowledge the five wise is brilliant great toyota tool among others um the causal circle and the causal circles a brilliant tool to look at are you tease in relation to one another so we could play with that? We could look at a cause and effect matrix that's another useful tool and a reality tree or a logic diagram so these air just a combination of different tools so here's the idea you know again the plumber shows up and they've got one hundred tools in there took you don't want him using all of them, but you do want him to use the ones that are going to make the most difference in the most simple and timely and meaningful way. So a lot of times it's more like what tool though I need to use in what circumstance uh and that's how these tools are designed, they all have strengths and they all have limitations we have to know and given the circumstances which tools should I use in which circumstance and I'll and I'll talk to it through so let's start with the I p o and incidentally ah well we're repeating here and shifting back to this translation this transformation, if you will, from this, I think approach to life and approach the business to the I know. So this is again this is about knowledge and, uh, one of the most simple yet impactful knowledge getting tools I know is this aipo diagram, so it works like this, we have a process and it could be anything, and we have outputs from that process that we measure, and this is where are you? Tease will show up these air effects and we have inputs. So this is, uh, probably something you learned as in algebra is why is a function of x the transfer function back? And maybe I don't know seventh grade or something like that. So why the's air the wise? And these are the x variables? Why is a function of x, which is this simply another way of saying we reap what we saw? We reap what we sow here's what we're sewing here's, what we're reaping, and it can't be any different the world and the universe is in perfect harmony and balance all the time, we just don't think it think that it is we don't see it that way, but if we don't have contrast, we don't know anything we can't know up if we don't have down we can't know light if we don't have dark without contrast we know nothing so when you start to look at life that way and you start to look at business that way in this yin and yang of the world wow all of a sudden things change way the world's not flat it's not standing still it's it's a whole different perspective so we start by saying all right, well, what process do we want to look at and I like teo for simplicity's sake let's just let's pick a process we all might have some knowledge about like um you know the human body we'll have one of those so the body is processing things all the time and what might be some of the critical outputs of a human being in a human body? Well, do I feel good or did I feel lousy? All right, um I in a good mood or not good mood. All right, what's my, uh how physically how am I doing? I can I can look at critical to measure outputs critical to what quality outputs uh in consultation with my doctor. Okay. Cholesterol levels. Bodyweight alright uh blood sugar levels whateveryou wantto deals are all measurable critical outputs now knowledge is when we know the relationship between the exes and the wise we know that if we tweak this x and eliminate this what the axe and substitute this acts with the different x we're going to get a totally different why totally different output and we can predict it that's true knowledge so when we run designed experiments and things like that to know ahead of time where something's gonna land where something's going toe how something's going to perform that's knowledge we know ahead of time when I'm going to get my order and that it's going to be right first time because we've designed it into our business into our business model and our business system and into our measures so this is where we really start to learn that you know if I eat certain things and avoid eating other things and I do certain things and avoid doing other things and I know all of the critical inputs to a healthy lively proffer edible productive joyful output wow this is where tools like this supply at home as well as it worked no question about it and years ago is when I would be instructing black belts and people like that on these tools and say here's your homework assignment do one of these on yourself see in the morning you can try that doing I peel on yourself and and see where it takes you because you could put any kind of number that any kind of measures over here financial performance in your life debt load things like that relationships and things like that physical of course um you know and then that's ah it's a way for us to really gain knowledge about x's and y's inputs and outputs causes these would be the causes and these would be the effects so we take a process and we look at to the diamond department we say, well, we've got kurt over there maybe we need teo get somebody besides kurt to do it or no, maybe maybe it's not kurt maybe it's that ruler at that rulers? Not exactly user friendly. All right, maybe we've got policies that's got got him handcuffed procedures and methods that are messing things up. Maybe it's the environment, the culture itself that's uh, that's the problem, these could be any number of things. These air just examples. All right, this would be like if we're if we're baking a pumpkin pie. Okay, we've got tased. We've got look, we've got ah ah, I don't know what you like and pumpkin pie you know cinnamon you got you got you so it's warm it's tasty looks good, it's all right, so what? Where we have to have over here to get that predictable, repeatable, uh absolutely wonderful pumpkin pie for for a baker, okay, so it's, uh, well, we've gotta have ah baker, who knows what they're doing because cap who says I have a feeling that turn around what it would have been higher if the job of drawing diamonds had been given to the artist identifying the right person to do the right activity is critical, right? Yes. Except that you put a good artist in a bad system who wins, so I get, you know, yeah, absolutely. We could have tried to put a we could have. We could have put another person in there. Um and I would love to run if we had the time to run that experiment. Um, sadly, we would not make money. We would, uh, here's the punch line. We cannot make money in round one that's not possible. So whatever we went through in the first round was just totally normal because this is it was the system, not the people and that but there's an illusion and that a lot of people think no, no, no it's, not the system. It's the people I know I could have done a better job or somebody else could have done a better job. Um, prove it because the data repeatedly say kurt's ready to give up the pen? Yeah, yeah, proven, but but and I'm not trying to be difficult, I'm just trying to say that's how that's, how powerful the system is and we have tio we can try to cheat it we can try to manipulate it, but if we can't recognize the system and come up with a way to actually influence change in the system itself uh that's where we uh we just end up working harder and harder and harder and falling further behind for not clever. So this is the aipo diagram and it's just a great way tio interrogate and drill down into the relationship between exes and wise can use it on anything and I do highly recommend that little homework assignment play with the sign yourself it'll make all the difference in the world when you start thinking about what a my sewing in my life uh that's it's it's propagating to what I'm reaping you can actually start backwards, which is what we do. We start with the duties and take it upstream it's a little bit easier and more practical way to do it let's start with something that I'm not real happy about take it upstream by the way, you know, one of the most profound not talking but more about this and uh in session three and segment for a the end is, um thought what we think is one of the most profound inputs of all so what we think if we think it long enough becomes belief and what we believe manifests into reality so right or wrong what we think or believe right iran will reveal itself to us as a personal truth it doesn't make it a universal truth issue cow a professor issue kala is well known for this uh diagram called the fishbone anybody want to guess why it's called a fish bone so it's ah it's away it's an organized way to do ah a root cause analysis on one ut so the limitation with this tool is what we got ten you tease identified we're going to do ten of these well we could certainly but maybe not the best tool for the job when we have ten ut staring at us like we had in the in the game but if we had one specific ut like um tails and the diamonds okay well why do we have tails and the diamonds and so the wise because because root cause analysis is all about asking why which many times his kids were told stop it I told you why I don't ask that again annoying question and business and consulting and in root cause analysis wise one of the most important questions we can ask that there's a whole chapter on why in the books entrepreneur and there's a whole chapter on why not theirs you yet in your yang as well so why are we experiencing tails and the diamonds that really hurt us um I'm going to do it thea the materials were using you know I was going to do with the people training the instruction gunning to do with our measurement system maybe the customers just being too difficult too picky maybe we don't have a good measurement system you're going to do with the equipment we're using the ruler all right and uh about the method maybe it's the method and kurt even talked about I'm tryingto come up with a more efficient method and figure out a better method could be the method it could be a number you know some some miscellaneous category um but what why we're getting tails and this would be a tool to then I really think that through and just say wow well there's with that ruler you know it's easy to go past the dot maybe it's kurt's eyesight that's when you know the idea is we need to deal dig down and find out why all right it's a great tool for organized brainstorming and it's it's especially helpful because it gets us thinking about categories that we might not otherwise think about she's I never thought about the measurement system maybe we thought they were good in the customer thought they weren't we're on two different measurement systems that never happens yes it does so uh or maybe we've got a lousy method ok, so the fish bone is a great way when we're dealing with a single beauty and we're trying to find solutions to that single ut when you see an arrow often arrow that's a third level of why so why this because of the machine what machine? The ruler well why is the ruler a problem? Because there's no stopping point on it it's easy tio go past the dot why is there no stopping point so we could actually have a fishbone chart with arrows coming off arrows coming off eros which makes it really look like a very bony fish and the way fill that out again this isn't the course material so people you all have access to this but way pull a team together to identify the various causes to a specific problem all right, so we stayed the undesirable fact we put that at the head of the fish we construct the actual chart incidentally, the chart I used here was what's often referred to as the six six m's they're all m words uh but there's different categories you can customize it the way you want sometimes people use the peas for example procedures people process product policy things like that so you can you can customize these any number of different ways the idea is that we got we got all of the the main categories covered so that we don't miss anything and then you drill down you just start brainstorming and you just continue to ask why is this going on? Why why, why? Why why and we interpret the data for ted to test the root causes you know, and we're looking for those things that keep showing up so that you know the ruler keeps showing up maybe or the measurement system just keeps showing up so maybe we need to drill down and find out some alternatives what could we do in lieu of a ruler? What could we do in lieu of the measurement system? And then I'm always challenging teams to think in terms of mistake proofing or polka yoking ah process making it so that it can't go wrong you'll notice pokey yolk all around you there's only there's only certain ways plug certain chords into certain outlets it's not it's the only way it's going in there okay, so you've got like on the side of your lap top you got different types of uh, places to plug things in but they're not all the same they're purposely designed to be different so you don't put the wrong thing in the wrong hole and mess up your computer okay? So poky oh, you know your your lights go off in your car now automatically or they remind you to shut him off those they're all pokey oaks saying um don't leave your lights on reminders automatic shutoffs fuse boxes, seat belts, air bags, all pokey oaks okay, so we're looking for ah root cause it's goingto then eliminate perhaps multiple undesirable effects so if we did something about uh that ruler something multiple effects might go away not just the one we were a minute that would be a leverage point five wise is one of my favorites and we can build the five wise into the fishbone ishikawa that we just looked at um because the idea of the five wise is tio drill deep so uh to drill deep into the five wise would be things like um why are we delivering late first answer would be because we don't have the right product at the right time well okay, so uh why don't we have the right product at the right time because uh because we take too long to produce it that's maybe one y one reason why or we produced two an inaccurate forecast so we're producing to a forecast it's not accurate so we got too much of the wrong stuff and not enough of the right stuff things like that well why did we take too long to produce it? So we're drilling down to these these five wise well because we don't have the right materials think about the fishbone now here's material I don't have enough people to produce it there's your manpower we don't have enough uh we don't have efficient equipment there's your machinery methods inefficient, inefficient work methods so why don't we have ah fishing equipment and you get down too somebody's just decided it's not a good idea that we don't say I'm not seeing a good return on investment or nobody's made a good business case we're ignorant we don't know any better things like that so you get down to that fourth or fifth level of why and you're almost always to something really interesting here's the challenge most of us never get past the second maybe there's be first why first of second why why was uh I was kate late for work our car wouldn't start well why didn't our car started the battery was dead well she should be reprimanded being late for words not acceptable that's that's about the second level of y ou r that's where it takes you okay or maybe we should have somebody besides kurt drawn the diamonds or you know that kind of thing well I wouldn't have car started the battery was dead why was the battery dead? She left her lights on why should leave the lights on? She forgot there was no reminder now we're at to poke a yoke level so this is where the engineers were saying well why don't we shut him off for you? Why don't we give you a bell or a whistle to tell you that they're on okay? And so this is where we design in success and design out failure that's uh it's often known as pokey oaks it's it's awesome all right so the five wise it's, just a wonderful tool. I could say so why you just in the ruler so much, kurt? My half too. Why do you have to? So only way I can connect all these dots, you know, to make diamonds. Why is that the only way we'll it's specified right here in the procedure? And, you know, you get down to that third fourth level, it starts to get interesting. Well, maybe there's an alternative, right? Why you flipping the pages so much? Everybody was flipping pages, that's, a lot of motion and non value added work. Why we flipping all these pages? Because there's a staple in it, why is there a staple in it? Because that's procedure, why is that a procedure? It's based on policy, we have two batch. Why we batch in more efficient. We're at assumption. And we're at a level where we we we really have ah, opportunity to test certain hypotheses and find out maybe that's not quite right. That's where it really gets interesting. I love the five wise. I love this tool.