Copyright © 2009 Process Management International Ltd. All rights reserved. The statements made herein do not constitute an offer and are expressed in.

Copyright © 2009 Process Management International Ltd. All rights reserved.

The statements made herein do not constitute an offer and are expressed in good faith.

Leading enduring performance by using Natural Systems Principles,

World Quality DaySellafieldNovember 2009

Jane Seddon, Chairman Jan Gillett, Deputy Chairman

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Copyright © 2009 Process Management International Ltd

Purpose of our presentation

To share with you our perspective on the perennial questions;● How do we create enduring value to our

enterprise?● How do we maintain momentum for our

business improvement efforts?

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Improvement Practitioners can be reassured. Some things can be relied on!

‘Quality tools’ ● ......a pedigree extending to Shewhart in 1929,

Ishikawa from the 1950s

Systematic methodologies and structures● ....examples range from the Japanese QC story

in the 1960s to DMAIC etc

Full time teams on difficult problems● .....As initially proposed by Juran in the 1960s

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These ingredients can be relied on to work,

But our experience shows them to be insufficient in themselves for long term enduring success.

What is needed is transformation

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Copyright © 2009 Process Management International Ltd 5

Transformation is not just a new word for ‘change’ ● It works on a deep level of people’s beliefs, philosophy,

principles and aspirations about what is possible.● Therefore… transformation is personal as well as

organisational.

The outcome of transformation is an effective, evolving and enduring organisation; creating prosperity for the long term as well as the results for today.

‘Transformation.’ What’s in a name?


Transformation is not a ‘project’; it has continual learning as its life blood


Basic elements in anything we try to do, including transformation

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Some of our clients

Since 1984, Hundreds of companies, Thousands of people In every continent Commercial, government, not for profit Every sector; Service, Manufacturing, Transport

Our approach is based upon Dr Deming’s System of Profound Knowledge, especially on Plan Do Study Act

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A new and unique perspective on the challenge

Natural Systems Principles A systemic leadership approach for

sustainable improvement

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Some natural systems


Natural system principles

1. Interdependence: ● Everything in nature is connected to

everything else.

2. Self Organisation: ● Natural entities have simple rules for

development inherent inside themselves

3. Differentiation: ● Nature renews itself without losing its

core identity and still generates variety.

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Some man-made systems


Effective organisations show natural system characteristics;

1. Interdependence● Clear purpose and process for the long-term● Conscious of their wider system

2. Self-organisation● Predictable product and service● Listen to employees● Generate improvements from within

3. Differentiation● Address variation systematically● Respect diversity● Variety and flexibility to suit the customer

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Natural Systems; a new insight

We use these principles to understand the “grain” of the organisation, and then help clients to lead its transformation.

Our book, “Working with the Grain” explores these and other themes

Available through www.pmi.co.uk

and at Amazon

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Working with the Natural System Principles;

1. Interdependencies Create consciousness of

the whole system by: ● Helping clients

understand their wider system including suppliers, and customers

● Clarifying and communicating the purpose of the organisation and of the change programme

● Learning to approach all work in terms of process.

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Aerospace supply chain: ● The customer and

supplier agreed they were in the same system, even though separated by the Atlantic

● The objective was to create a stable operation to the benefit of both

● We started by witnessing the actual work, including packaging and logistics



2. Self organisation

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Build increased energy and competence:● Learning how to make

step change improvements in the flow of products and services

● Uncovering and enabling the natural desire for all employees to help improve the work

● Developing understanding of how to monitor and improve everyday work

Service centre in Manila● Global improvement projects,

integrating with visual displays for local supervisors—

● The people in the process wanted to improve it – just needed the method



3. Differentiation Manage continual

change, differentiation and variety, ● Appreciating,

respecting and capitalising on the diversity of people, the environment, everything!

● Recognising and addressing undesirable variation in a systematic way

● Learning to economically create deliberate variety and flexibility in the service of the customer.

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Service centre in Mumbai● Self evident need to get

alongside whoever one is working with

● Getting processes “on target with minimum variation”

● Actively generating variety is a major necessary challenge in a mindset of standardisation


Typical combinations of tangible and intangible benefits we have seen

Client A, Global post merger simplification● $1.3 Billion in savings estimated, 4,500 staff positions saved in

2008● “this approach plays to peoples’ intrinsic motivation to improve

their business”● “Improved cross function and cross border collaboration and

cooperation” Client B, Global supply chain,

● Improving schedule adherence from 28% to over 95%, reducing lead time and simplifying packaging and handling

● “your approach enabled trust, transparency and problem solving …. We have a desire to work together with you, more than anyone else”

The intangible benefits for our clients persist long after the numbers have faded.


Ambitions go far beyond project-based improvement into strategic, whole system and everyday operations.

It is founded on learning by testing—through PDSA.

The approach encompasses everyone’s thinking, behaviour, culture and values

Its attention to context, enables the organisation to remain of enduring value to the wider system and society

Success requires a different orientation of leadership


Transformation is not a ‘project’; continual learning is its life blood


Works with the Natural Systems Principles; Has a vision for transformation not just improvement Optimises the whole system to provide value for its

customers, stakeholders and the wider environment; Appreciates that people and their intrinsic motivation are

key to success; Sponsors and models strategic step change and

improvement; Is a good ‘project’ sponsor and also...ensures that

everyday processes work effectively and efficiently.

A Systemic Leader


Using PDSA to learn about the organisation

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Launching the journey

Understand learning and

benefits 6. Lead an enduring

transformation

Develop leadership principles

3. Understand the current situation

2. Settle on initial

priorities

1. Understand why we need to do something

4. Build an improvement

system

5. Deliver improvementsAddress

problem(s)

Study

Do

Act

Plan and study?

Study

Act


Using the principles of Natural Systems increases the chance of success in a Systemic improvement (transformation) efforts

These principles encompass systemic leadership

Continual application of PDSA is the practical vehicle for making enduring progress

Summary


This presentation has been designed and developed by Process Management International Ltd. The statements made herein do not constitute an offer and are expressed in good faith.

Copyright © 2009 Process Management International Ltd. All rights reserved. No part of this presentation may be copied or reproduced in any form or by any means without written permission from:

Process Management International Ltd ● Villiers Court ● Meriden Business Park ● Birmingham Road ● Meriden CV5 9RN United KingdomWeb site: www.pmi.co.uk

Copyright © 2009 Process Management International Ltd. All rights reserved. The statements made herein do not constitute an offer and are expressed in.

Documents

terms of process

logistics slide

natural system principles

natural system characteristics

life blood slide

natural entities

natural desire

wider system