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Behavior-Based Performance Excellence

Behavior-Based Performance Excellence. Fuller, Jones & Associates, Inc. “A Radically Simple Approach to Improving Performance”. Leading Enterprises …. Identify and Avoid Unnecessary Costs Maintain Superior Levels of Customer Satisfaction Optimize Organizational Performance.

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Behavior-Based Performance Excellence

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  1. Behavior-Based Performance Excellence Fuller, Jones & Associates, Inc. “A Radically Simple Approach to Improving Performance” Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  2. Leading Enterprises … • Identify and Avoid Unnecessary Costs • Maintain Superior Levels of Customer Satisfaction • Optimize Organizational Performance What Are the Barriers to Achieving the Above? Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  3. Feedback Loop What Are The Barriers To Success? System Barriers Business flows(inputs) Performance indicators (outputs) Waste Focus of Lean People and process Quality Material Cost Variability Focus of 6s Inflexibility Focus of Theory Of Constraints Information Time Waste = High Cost Variability = Low Customer Satisfaction Inflexibility = Sub-optimization Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  4. The Manifestation of Barriers“The Iceberg Analogy” • Cost Of Poor Quality • “Above The Waterline” • ~5% of Operating Expense* • Examples: • Scrap • Rework • Downtime • Warranty • Cost Of Poor Quality • “Below The Waterline” • ~35% of Operating Expense* • Examples: • Incorrect Billing • Improper Tools • Lack of Training • Overtime • Unclear Requirements • Absenteeism / Tardiness • Lack of Process • Accidents * Philip Crosby & Associates Estimate Does Your Organization Understand the Hidden COST of Poor Quality? Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  5. What Choices Existed Before BBPE? Many Choices To Traditional Approaches, All Essentially The Same Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  6. Drawbacks to the Traditional Approaches Why Can’t You… • Leverage existing people/practices • Have management lead and train their employees • Deploy in all areas at once, with focus on key problems • Use your existing infrastructure • Reduce problem solving cycles • Generate results beyond traditional expectations • Transform management and staff behaviors Many Of The Drawbacks To 6s, Lean, etc Are Attributable To The Overemphasis Given To Sophisticated, Rarely Used Tools. Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  7. Responding to Industry’s Needs The Evolution of Performance Excellence (PE) This Evolution From Contemporary Tools To Progressive Behavior Change Is Achieving Greater Results In Shorter Time In All Areas Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  8. What is Behavior-Based Performance Excellence? • The BBPE methodology contains two key components: • Process Management: Changes leadership and management practice behaviors • Process Improvement: Changes problem solving behaviors Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  9. The Behavior-Based Performance Excellence Model Document and Benchmark Process, Metrics & Objectives Identify Key Process Leverage Points Process Management Activities Process Improvement Activities Review Performance And Identify Opportunities Behavior-Based Process Improvement Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  10. Combining Process Creation and Process Improvement Select Existing New Design/Develop New Process/Product Improve Existing Process/Product Significantly New Feature / Process Yes No Yes More Improvement Needed? No Monitor Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  11. Behavior-Based Process Creation Typically Requires Only Basic Tools Such As • Run Charts, • Pareto Charts, • 5-Why Analysis, • Basic Stat, • Simple DOE, • etc Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  12. Behavior-Based Process Improvement Typically Requires Only Basic Tools Such As • Run Charts, • Pareto Charts, • 5-Why Analysis, • Value Stream, • Risk Analysis, • etc Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  13. Better Better Better Better BBPE Optimizes Cost, Time, Effectiveness and Development Leadership / Organizational Development Low High Behavior-Based Performance Excellence Training 7-Step PDCA Short (weeks) Low 8D Traditional Green Belt Six Sigma Training Cycle Time Training Cost Traditional Lean Manufacturing Training TOC Traditional Black Belt Six Sigma Training Business Process Reengineering High Long (months) Problem Solving Effectiveness Low High Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  14. BBPE Is Highly Effective • Works Across the Enterprise • Employees, Managers, Leaders all follow the same methodology • BBPE permanently changes behavior and the way staff do their jobs each day • Eliminates process waste and reduces variability • Solves problems for the “last” time • Identifies and develops future leaders BBPE Is Based On An Integration Of Best Practices From Leading Process Excellence Methods Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  15. BBPE Enables More Rapid Leadership and Organizational Development BBPE Supports Organizational Transformation and Leadership Development: Skills And Traits Of Successful Leaders Include: • Open minded, willing and able to change • Data driven, process oriented • Customer focused • Must be able to teach, then learn, then teach and be an effective coach • Consistently models winning behaviors • Facilitates top-down and bottom-up change across the organization • Identifies and develops the next generation of leaders • Compliments other leadership development programs • Leaders serve as the problem solving experts capable of leading and training their own team • Problem solving behaviors demonstrated as part of their normal work activity Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  16. FJ&A Experience Deploying Performance Excellence Many leading Fortune 100 and 500 Companies including: Lexar Media Lockheed Martin Cisco Systems Seagate Technology Extreme Networks Solectron Corporation GMAC Mortgage SonyBMG, USA Ingram Micro Logistics Arvato Services, Inc. Lawrence Livermore Lab PeopleSoft Sony Pictures Intuit Cholestech SonyBMG, International High Tech, Software, Medical, Finance, Defense, Entertainment, Manufacturing Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  17. BBPE Success Stories – Achieving Results in 6-8 Wks , by Regular Staff as Part of Their Normal Work • Improved Customer Fulfillment to 99.7% from 89% • Conventional Wisdom: Most orders arriving were incomplete • FJ&A approach showed missing information not an issue; equipment and timeliness of information were the major obstacles • Reduced Cycle Time Avg, Variability & WIP 50% • Conventional Wisdom: Testing equipment was a bottleneck, needed to purchase more equipment and hire more people • FJ&A approach showed test equipment idle ~50% of the time; upstream product grouping and synchronization were the primary issues • Reduced Complaint Mean Time To Resolution (MTTR) by 50% • Conventional Wisdom: People not working hard enough or competent • FJ&A approach showed no clear operational definitions for prioritizing, navigating and escalating issues • Business Goal Returns Rate of < 12% from 19% • Conventional Wisdom: Industry is too unpredictable to manage shipments • FJ&A approach showed initial shipment sell-off highly variable but initial ship eventually consumed, and reshipments recreated exposure and very predictable Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  18. Thank You! FULLER, JONES & ASSOCIATES, INC. www.fullerjonesassociates.com 4000 Pimlico Drive, Suite 114 Pleasanton, CA 94588 Tel: 866-479-4979 Fax: 925-931-0136 Dr. Howard T. Fuller Andrew M. Jones, MBA hfuller@fullerjonesassociates.comajones@fullerjonesassociates.com Direct: 925-413-2255 Direct: 925-922-1225 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

  19. Background Dr. Howard T. Fuller: • Corporate VP of Quality & Reliability – SanDisk • Corporate VP of Quality & Functional Excellence – Solectron Corporation • Corporate Director of Design For Six Sigma – Seagate Technology • Manager, Process Improvement – LifeScan, a Johnson & Johnson Co. • Adjunct Professor at San Jose State University ISE • Ph.D. in Quality Engineering, M.S. in Math/Statistics • Published over 25 papers in leading journals Andrew M. Jones, MBA: • Director, Process Excellence - Intuit • Director, Performance Improvement Office – GMAC Mortgage • Sr. Manager, Business Process Development Group - Cisco • Consultant, Reengineering & Change Management Office – Sony Pictures • Sr. Examiner, Baldrige National Quality Program • Six Sigma Program Manager, Master Black Belt • MBA, International Business Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.

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