Visual Management – Info Centre's Lean Training, Schneider IO 8th December 2010

Ground rules Be vocal, ask questions, if it is not clear then you are not the only one – ASK ! 20101019_OperationLeanTraining.pptx

Agenda Introductions & Ground Rules 15 mins Delivery Plan for Visual Management 5 mins Info Centres Daily Meetings 10 mins Actions / Next steps Q&A / Close

How will we implement Visual Management in Schneider? Diagnostic Implement / Sustain 2 w.c 8/11 3 w.c 15/11 4 w.c 22/11 5 w.c 29/11 6 w.c 6/12 7 w.c. 13/12 8 w.c. 3/1 9 10 11 Tailor / Design Training Christmas Break We are here ! Roll out to Team Managers Train Team Members Design, Agree and Implement Trial Information Centre – one hour workshop for each workstream Info Centre Installed and Used Support Team and Team Leaders, coaching behaviours and modifying Info Centre if necessary Document KPI collection / updating methods

Discussion topic What are potential issues around communication within your team or the organisation? What types of communication would you like to see / would be of benefit?

What is Visual Management? Project KPI Board Info Centre Test Team Information Centre 6

Information Centre: Examples Information Centres can take different sizes, shapes and colours. They can be adapted to suit the team but the main theme of a daily place to meet, understand performance and drive improvement must remain. 7

What’s in it for me? “Make your workplace into a showcase that can easily be understood by anyone at a glance”. Taiichi Ohno Seeing your process clearly Bottom up and Top Down communication through Layered Approach Having a method to improve issues Having a method to escalate issues quickly Being able to see your own performance Choosing your own KPI’s, including customer service Choosing your own levels at which to react Quality - An info centre seeks to make errors and issues immediately apparent. Quantity - An info centre shows progress or delays against plans 8

The Info centre makes internal communication easier Info sharing Performance indicators Exchange of information within the team (events, etc) Owner: Whole team Frequency: daily Contractual KPI and communication of client assessment Owner: Project director Frequency: monthly The team Voice of the customer Orga chart (FO project, BO project, client) Owner: DP Frequency: depends on changes Client vision / expectations Owner: DP Frequency: monthly Zoom Zoom on an ongoing project (today: BAU Lean) Owner: Project leader Frequency: Weekly Twice a month, Project Director gathers the whole team in the front of the project Info centre for an internal communication meeting

What Information is on an Info Centre? NAME OF TEAM Info Centre CONTINUOUS IMPROVEMENT PEOPLE PERFORMANCE Team Specific Metrics Resource Plan Daily Task List CCC Strips Productivity Lead Time BAU ‘U’ Training Plan Skills Matrix Quality Cost Contact List Behavioural Successes The long term section of the board contains the people, planning and direction setting for the team. Performance is monitored against the standards to drive towards targets Graphs should be simple, focused, easy to understand and easy to update The CCC Board controls the continuous improvement section of the Information centre. The CCC Strips can be used for problems or ideas to track them through to implementation. 10

1 – People / Long Term Learns… Success!! The long term section of the board contains the people, planning and direction setting for the team. The Shift Plan and Skills Matrix make sure the right people are in to cover all vital duties. Plans VSM Successes Skills / Availability Success!! Learns… A lessons learned / success area of the board can be powerful in communicating the teams achievements, positive client feedback and key lessons learned Other documents can include Standard Work and Value Steam Maps to highlight the teams key roles and responsibilities. 11

A Skills matrix is made up of 3 parts 1 The matrix with all skills An overview on functional skills: per team… The same for technical skills 2 3 Age quotidienc … on the whole project 2 3 Instructions 20101019_OperationLeanTraining.pptx

Example of a skills matrix Age quotidienc 20101019_OperationLeanTraining.pptx

Team Mood: How did you feel today? TRANSPARENCY : do you really care about your team mood ? If not, what are you managing for ?

Standard Work can be updated and staff re-trained. 2 – Performance / KPI Performance is monitored against the standards to drive towards targets Graphs should be simple, focused, easy to understand and easy to update (by hand!) The performance charts on the KPI board then show the performance over a week, month etc. Start / End KPI Board If there is a dip in performance or a worrying spike then a Concern Strip is raised to investigate. An Ideas Strip may also be raised if a better way of completing the process is found Targets / times are set Process changes are then trialled and success monitored to ensure the route cause has been eliminated. Standard Work can be updated and staff re-trained. Problem Solving techniques such as Pareto and 5 Why’s can be used to solve the route cause of the problems 15

Production KPIs Dashboard of delivery KPIs Profitability / productivity indicators Process steps Rework rate Code review rate Profitability indicator Productivity indicator Quality indicators Profitability per order Productivity per step and per order Overall profitability per teams 20101019_OperationLeanTraining.pptx

Examples of delivery boards Demand list Cycle phases Production Board Daily tasks Schedule Week days Problems met Team members Daily task plan by a programmer, supporting the daily stand-up meeting Age quotidienc Info. on progress 20101019_OperationLeanTraining.pptx

3– Continuous Improvement /Structured Problem Solving: Concern, Containment and Countermeasure (CCC) A concern around KPI’s or other areas can be raised and summarised onto the CCC Strip. This starts the problem solving process CCC Board A containment action is agreed and put in place to stop the problem getting worse The CCC Board controls the continuous improvement section of the Information centre. The CCC Strips can be used for problems or ideas to track them through to implementation. Problem solving activities such as 5 Why’s and Fishbone diagrams help to find a countermeasure to eliminate the route cause The tracking area provides the frequency to check to ensure the problem is solved before removing the CCC Strip from the Information centre 18

Discussion topic Question: Visual Management is… The use of displays and controls as a communication tool to ensure that key information is always at hand. It enables you to identify any issues or problems that arise and ensure that they are acted upon quickly Question: Where you have seen examples of Visual Management being used

Examples of Visual Management… So now you know what Visual Management is, how do you use it?

Daily Meetings A short and focused day to day meeting provides a vehicle for :- Team communication Business performance management Continuous improvement Correct use of Information centres & meetings provide the foundation for:- Target reviewing and setting Communicating key information Capturing concerns about performance and process Solving concerns at the appropriate level Informing, involving, and engaging all employees Showcasing to other areas/visitors the active management of the area Key messages: A vehicle to show what the as-is state is and to promote constant improvement It enables effective information transferring and engagement of all staff It identifies, localises and visualises areas of concern

5 minute meetings: why is it so important...  help those who bring their Added Value to the client producing in the best conditions …For the team leader? Condition the team to be productive Listen to issues and sort them… Steer delivery Distribute the work across team members Share results with the team Give the tempo Motivate the group Reinforce team spirit Create interactions Promote synergies …For team members?  Rugby scrum instead of relay race …To make it happen daily? The quickest a concern is identified, the less costly it will be for the organization

Stop all sources of disruption!! Meeting’s Must-Have Force participants to focus on important topics It will prevent participants impacting their own schedules… Stick to the timing!! Meeting is short but efficient One of the meeting’s goals is to align the team on the different topics, hence it requires full attention from all of them No phones, blackberrys or laptops! Stop all sources of disruption!! A more dynamic and voluntary posture Force to listen and focus Force to be pragmatic and direct, in order to avoid standing up for too long Stand-up meeting!!!

Daily Stand-Up meeting is supported by visual boards enabling to have a view on… … delivery status … other information By name 2 modes: 2-week schedule By cycle phase Vacation / training schedule …KPIs … Skills matrix Productivity / cost Delay Quality Mood …Concerns / action log An action has: Name / short description with a verb Owner Deadline Problem resolution board … overall project / entity Project Info Centre Anyone should be able to get a clear view on the situation anytime he / she comes on the floor  Make IT visible ! It also support the whole team in steering their delivery 20101019_OperationLeanTraining.pptx

Standard structure of a daily stand-up meeting (Proposal) How did you feel yesterday? (Mood reporting) What did you do / deliver yesterday? What are you going to do / deliver today What concerns did you meet? Progress status on action plan This daily meeting is action-oriented. It happens in the front of visual supports. They enable to display the progress status and give an overview of the situation in a flash. 20101019_OperationLeanTraining.pptx

Information Centres: The Capgemini Standards Focused on a team (or sometimes a process) Made up of a Whiteboard or Interactive whiteboard – Permanence is key. Daily 15 minute meetings – not once a week, not 3 times a week… Daily Content must be clear, simple to understand (the 3-minute rule), easy to update (preferably by hand) The board must contain the team’s mood Teams must be able to influence the KPI’s, ideas, issues and problems on the board Teams are made up of individuals… therefore highlighting individual performance is a requirement The group’s vision is for the whole company to be using Visual Management by end-2011… now is the time to shape what it looks like Video

What do we need to do to make Visual Management successful? Get the process right Meeting structure, attendance, frequency, team reviews, countermeasure close-out, 3 minute mgt. Have appropriate content Appropriate KPI’s in place i.e. measures that the teams can affect, linked to company cascaded KPI’s Ensure right behaviours Respect for individual, follow-up/process confirmation outside of meetings (Go, Look & See), structured problem solving

How will we implement Visual Management in Schneider? Diagnostic Implement / Sustain 2 w.c 8/11 3 w.c 15/11 4 w.c 22/11 5 w.c 29/11 6 w.c 6/12 7 w.c. 13/12 8 w.c. 3/1 9 10 11 Tailor / Design Training Christmas Break Roll out to Team Managers Train Team Members Design, Agree and Implement Trial Information Centre – one hour workshop for each workstream Info Centre Installed and Used Support Team and Team Leaders, coaching behaviours and modifying Info Centre if necessary Document KPI collection / updating methods Here is an example of a draft Info Centre for DCS ‘Other’ IT Costs......

DCS ‘Other’ IT Costs – Draft Info Centre

Please bring your thoughts to the Info Centre Workshop Actions….. What could an Information centre for your team look like? What Information would you like to see on your Info Centre? How can we implement this for your workstream successfully Please bring your thoughts to the Info Centre Workshop

Any questions?....

Appendices

Information Centre Ground Rules A stand up meeting. 10 minutes at the boards. Full attendance on time. One conversation at a time. Manage by exception. KPIs updated before the meeting. Deal with data and facts not opinions. Don’t problem solve during the meeting. Provide a recap on what you have covered so far and explain that you are now going to look at the meeting. As with any meetings there are some implicit and explicit ways of conducting the event. Discuss the ground rules. Acknowledge that it may feel awkward at first but the benefits and transparency of the process will soon outweigh and overcome these feelings. It is not just about business metrics, as the process is interactive, people focused and relevant / informative. Ask the participants for their view of the benefits of Information Centres before showing the next slide.

Leading an Information Centre Meeting Responsibilities: Managing attendance and timing. Establishing that the board is up to date. Maintain focus. Practise / Support “Go and See”. Ensure concerns are raised for “No Good” conditions. Ensure that root causes of concerns are addressed. Offer coaching and support. Talk through the responsibilities when leading an Information Centre meeting and ask them to explain the importance of these points. Ensure that the following are covered. Lead the meeting – Control the flow of the meeting, making sure that people keep to the point and do not distract the meeting away from the discussion points. As an Information Centre meeting is new to most staff, lead by example with positive behaviour and discourage any negative behaviour that deviates the meeting from its main focus. Control the timing – Keep the meeting moving at a good pace to ensure that the meeting does not last longer than is necessary. Any item which needs further discussion should be arranged between the interested parties after the meeting. Establish that the board is updated before the meeting – ensure that the board is updated before the meeting starts and that participants understand any ‘No Good’ conditions. The task can be delegated but the responsibility cannot. So if you have asked one of your staff to update the data, make sure they have. This will help to make the meeting run smoothly. Practice ‘Go and See’ when discussing the problem – staff appreciate seeing leaders discussing their problems, rather than discussing the problems in the comfort of an office. “Go and See” supports genuine understanding of concerns by the organisation’s leadership, only when a concern is truly understood can it be resolved. Raise concerns for ‘No Good’ conditions – If a ‘No Good’ condition is present in the metrics, ensure that a concern strip is raised with an owner and a containment, and make it clear that feedback of the initial investigation is due the next day. Offer coaching and support – where needed and if appropriate offer coaching and support, for Team Leaders if there is a concern which is outside of the scope of the team you may wish to pursue it on their behalf. Escalation Process – Design agree or know (if existing) escalation process for issues which are bigger than the team n question.

Participating in an Information Centre Meeting Responsibilities: Update KPIs before the meeting. Raise a concern strip if your KPI is in the red. Attend the meeting on time. Stay focused. Provide brief clear feedback on your concerns. Support concern resolution. Talk through the responsibilities when participating in an Information Centre meeting and ask them to explain the importance of these points. Ensure that the following are covered. Update your KPIs before the meeting starts – People will want to see what the issues are, the visual display on the information centre is the most efficient way of communicating this to a group of people. If your KPI is in the red make sure you understand why - raise a concern strip. Attend the meeting on time – The meeting needs to start on time so that it can finish on time, which allows people to get on with the business for the day. Respect the role of the leader of the meeting – The meeting leader has the difficult role of keeping the meeting on track and on schedule. Participants can help with this by keeping to the point, as raised by the KPIs on the Information Centre. Stay focused and provide brief, but clear feedback on concerns in your area – This is the opportunity to let your leadership know what the concerns are and to ask for help and support in dealing with those concerns. Do not waste this opportunity, be honest, provide clear and concise information, as there is a lot of information to get through. Remember to deal with data and facts not opinions.

Summary Information Centres record and display key metrics to empower all business levels to make informed data based decisions. They provide a clear and visual representation of your part of the business at a given moment. Information flows up and down the organisation in a clear and immediate way. Deal with Data and Facts not opinions. It is your Information Centre - it may not right first time, so be willing to vary the KPIs. Summarise the session and deal with any outstanding issues and questions.

CCC - What triggers a concern? What are the next steps? 1- All problems affecting process / performance should prompt a concern – priority calls may need to be made to focus efforts 2- Concern and Countermeasure Strips are raised Concern is new, with a containment in place within that shift Countermeasure is known and planned (PLAN) Countermeasure is being implemented (DO) Countermeasure is complete and being tracked for effectiveness (CHECK) Countermeasure was successful, standards are updated (ACT) Key messages: 3 basic visual tools are used to highlight and track issues that arise in the area The concern and countermeasure strips help show concerns raised, which are categorized as; logged, tracked; actioned and solved. 3- Countermeasures are tracked against the plan with the PDCA cycle 37

CCC strip process (Concern-Containment-Countermeasure) Start Here Raise concern Allocate responsibility Agree and implement Containment Investigate if countermeasure (C/M) is within team’s capacity C/M and plan date Agree C/M and date If problem not resolved Update standard Move strips to “In progress” status NOTE confirm process, have they documented a different process somewhere? Talk the participants through the CCC process using the flowchart. CCC strips are displayed in the Information Centre and summarised in a format that demonstrates Visual Management which can be understood in seconds. Raising concerns: If a new concern needs raising it is raised before the daily review meeting and posted on the board. Whoever raises an issue writes the date raised on the strip. It is absolutely key that the concern description must be as concise and specific as possible, as it is difficult to review an issue that cannot be understood. Providing a name also gives the Manager the opportunity to thank individuals who make a contribution. Allocating responsibility: Allocate responsibility for the CCC strip at the first meeting in which the strip appears. The responsible person is the individual who is accepting overall responsibility for ensuring the actions are delivered by the set target date. This person will not necessarily partake in the physical execution of the work, that can be delegated, but the responsible person will be held accountable at the review. Containment: Containment is a fast `band aid` to stop to the problem temporarily. If it is a problem then it must be contained. If it is not a problem then consider why it is raised? If a containment is not obvious then the issue must be allocated for immediate follow and the containment populated before to the next meeting. Countermeasure: The target is 72 hours from when the concern is raised. Innovation before expenditure - when deciding upon a countermeasure, the mindset should be to implement it with existing resources. Ideally we should also be able to say that this problem will never happen again. If we cannot honestly make this statement then there is a need to think again. Remember the countermeasure should come from the team, the Team Leaders role is to provide their team with the means to implement it. Target date: As soon as a countermeasure is identified a target date needs to be set. The date needs to be achievable but challenging. Wherever possible, avoid target dates greater than one month. Status: Talk participants through the quadrant system that shows an up to date status of progress towards countermeasure. Success – Enter onto success log Tracking period complete Move strip to tracking section Move strip to review section Implement