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Improve the Sales & Marketing process at the firm, to impact the revenues of the organization. Kaizen Workshop will be used to identify the problems, address root causes and propose solutions. February 20th, 2010

HR587 – Organizational Management Prof. M. Luckett

Author : Hector A. Rodriguez 305-588966 – achiles6408@hotmail.com

Contents 1. Executive Summary ............................................................................................................................... 3

2. Organization .......................................................................................................................................... 4

3. Need for Change- Scope ....................................................................................................................... 6

4. Project Approach .................................................................................................................................. 6

5. Research Plan ........................................................................................................................................ 8

5.1 Purpose ............................................................................................................................................... 9

5.2 The Workshop Structure ..................................................................................................................... 9

5.3 The Team ........................................................................................................................................... 11

6. Workshop ............................................................................................................................................ 12

6.1 Introduction ...................................................................................................................................... 12

6.2 Brainstorming .................................................................................................................................... 13

6.3 Idea Grouping.................................................................................................................................... 13

6.4 Idea Voting - Prioritizing.................................................................................................................... 15

6.5 Problems Table Results ..................................................................................................................... 16

7. Problem Analysis and Solutions .......................................................................................................... 17

8. Conclusion ........................................................................................................................................... 19

8.1 Evaluation Efforts .............................................................................................................................. 19

8.2 Workshop Experience ....................................................................................................................... 20

9. References .......................................................................................................................................... 22

1. Executive Summary

Lead360 is a brand new organization, intending to lead the way in Lean and Productive

Management. As any other new organization is full of challenges and new projects and its seek

for perfection is infinite. All the operations and products strategies of Lead360 are defined, and

you can see our range of products at www.lead360inc.com . However, an inconvenient is still

present in the marketing, sales and promotion activities, which are the key to bring new

customers, more income and revenues to the company. As Lean experts, we have decided to

perform what is called a Kaizen or Continuous Improvement workshop, following the

philosophy of lean culture. The purpose of the Kaizen workshop is to identify problems and

causes to the slow sales and promotion of Lead360 products and services. We are following the

Star Model as our Change Organization Management model, so we look for the Strategy,

Process, Structure, Reward System and Human Resource as our categories to implement

change. We are going to follow the steps through a Kaizen workshop ensuring that our

solutions and actions plans relate to the 5 Star Model, to address issues that will touch each of

the five components of this change model. The failure and success of the workshop will depend

on the understanding and commitment of the participants.

As part of this project, we are going to prove how following the Kaizen workshop and the 5

Start model we can motivate our team, keep our members committed to this entrepreneurial

endeavor, while instilling a culture for change, and start cultivating that behavior in our

partners, the seek for perfection, to constantly find ways to do leaner, better and faster.

As conclusion, we see how this workshop was not only productive as to the ways to improve

our Sales and Marketing process, but also help to consolidate the different phase of team

building: Formation, , Norming, Performing. We are committed to build LEAN behaviors and

culture, staring from our own.

2. Organization

Lead360, Inc is an organization that was founded 2009 with the mission to “ To transform

organizations from the inside-out, aiming at leaner, better and faster working environments,

promoting a culture of efficiency, waste and defect elimination, with value added to your

business.” Currently the firm is form of three, all professional with more than 15 years of

experience working for Fortune 500 companies. The world economic downturn motivated the

three members to start their own consulting business, and assist other companies, institutions

and organizations in Lean Training and Project implementation, while provide a broad range of

services that goes from Lean Training to Grant writing and Business Plan assessment. I am the

VP of Operations in charge of the project planning, training manual development, and strategic

planning. My role in the organization is to lead the products and services to fit the customers

and to promote our motto: “Give a man a fish and he eats for a day, teach him to fish and he

eats for a lifetime.” The organization is composed of four lines of services as shown in the next

page. As any new and start up business there are many challenges, and changes to face.

3. Need for Change- Scope

The Company has the business plan ready, and the preparation of trainings manual is on-going.

We have developed some trouble to meet the marketing and sales goals. We have found that

none of the members are experts on sales or marketing, so a learning process is currently in

process. However, this is affecting on the most important goal of the business which is to gain

customers and revenues. We need to bring more customers, to build a strong reputation in the

market to win more contracts. All three members are ready for change, we all come from

working experiences in companies that are used to constant change in the manufacturing

world, adapting to all external and internal situations. Our sales are stagnated and we need to

push them to bring more revenues to the firm, and set a growth pattern in 2010.

4. Project Approach

In order to resolve the Sales and Marketing stagnation, we have decide to perform a Kaizen

workshop ( Continuous Improvement), to find the possible causes and solutions that will aid to

better perform in the Sales and Marketing activities. I’m a Kaizen (word for Continuous

Improvement in Japanese) Coach, and as such I will be leading the workshop, to bring new

ideas to the group and prepare and action plan to boost the Sales in the organization.

Kaizen: “teams are generally comprised of employees from all areas involved in the process

who understand it and can implement changes on the spot. Improvement is immediate,

exciting and satisfying for all those involved in the process”. (Evans & Lindsay, 2008). “ Kaizen is

an intense and rapid improvement process in which a team or department throw all its

resources into an improvement project over a short time period, as opposed to traditional

Kaizen applications, which are performed on a time basis.” (Evans & Lindsay, 2008).

The Kaizen workshops follow the Deming Cycle of Quality, constitute of four Steps: Plan, Do,

Check, Act.

Figure No. 1 Deming Cycle

Plan: is the problem identification phase, and where problems are address.

Do: is to find alternative solutions to the problem, and to address the root cause.

Implement the solution.

Check: This phase is intended to see the effect of the solution and look for

improvement.

Act: This phase is to follow any action plan developed to address any failures or

improvement of possible solutions. A plan to implement and follow up with the

solutions and its consequences.

5. Research Plan

A Kaizen workshop will be conducted to identify root causes to the problem. Several Total

Quality Management tools such as Fishbone diagrams, 5-Whys, Prioritizing, are used to address

the current state and to identify “waste” in the process or system under study. Our intention to

perform the workshop is to validate our results will comply with the Five Star Model, providing

solutions that will cover the five aspect of this change model.

Figure No. 2 Star Model

5.1 Purpose

The purpose of the workshop is to understand the effects of change management through the

Five Star Model, and to discover new behaviors in the team. The workshop will put in practice

some of the tools offer to customers, while teaching other members about the Kaizen

methodology. A final survey after the workshop will be performed to check the impact of this

kind of methodology for continuous improvement.

The intention of the workshop exercise is to identify problems and issues within the Sales and

Marketing process. The teams need to design a better process flow and identify risk and

opportunities within this process. The goal behind performing the workshop is to improve the

revenues goals for 2010.

5.2 The Workshop Structure

A Kaizen workshop is structure in 5 steps: (General Motors, 2007).

Activity Moderators Content Results Time

Introduction •Champion

•Coaches GoFast!

• Present sense of urgency• Identify issues where you can

implemente sense of urgentcy, problem processes

• Set norms and expectations for the workshop

•The Champion is focus to results and decision making•Set norms to participants

30 minutes

Problem indentification

•Coaches GoFast! Identify:•Barriers agains sense or urgency •Sources of Bureocracy•Adicional Work with no Value •Sources of damages, hits, mutilations•Unnecessary Activiites

•List of burocratic problems•Agreement over problems•Division of problems in subgroups

1 hour

Analysis of problems and Solutions

•Coaches GoFast! •Prepare recommendations about the work done, what is to stop doing, start or support•Review recommendations•Summarize the results in groups•Ensure uniformity and eliminate duplication

•Specifics Measures to increase sense of urgency •Group recommendations to increase sense of urgency

1 hour

Recommendations Preparation

•Coaches GoFast! •Incorporate Comments•Complete the presentation materials and Action Plans

•Presentation Materials 1 hour

Present recommendations

•Sponsor•Champion•Decision Panel•Coaches GoFast!

•Share final recommendations•Decide:

1. YES2. NO3. Postpone

•Recommendations •Decisions Making on action plan

30 minutes

1. Introduction: present the process of a Kaizen workshop and introduction to terms.

2. Problem Definition: Define the problem; identify issues with the current process.

3. Root Cause Analysis: find possible causes to the problem, identify wastes in the process.

4. Solution Generation & Selection: find new ideas and solutions to the future state.

5. Action Planning: Prepare an plan of activities to perform and eradicate the problem.

The process of transformation of the Kaizen workshop will depend on the team integration. The

process is shown in Figure No.3.

Figure No. 3 (Go Fast – Kaizen Workshop Steps)

5.3 The Team

In order to implement this kind of workshop a define team needs to be in place in order to

make effective decision. The following table shows the minimum roles and responsibilities.

(General Motors, 2007)

Table No 1. Workshop Composition

Roles in the Workshop

Key Activities

Sponsor Helps identify the topic of discussion and establish some expectations

Selects the Champion for the Workshop

Provide resources ( e.g. money, time, systems) and monitors the implementation

Champion Plans and determines the scope of the workshop ( natural owner)

Make decision related to the recommendations in the workshop

Remove roadblocks, monitors the implementation and reports results

Decision Panel Decision Making to recommendations

Work as a road blocker remover, to eliminate any barriers and help through the approved recommendations

Participants Employees related to the topic of the workshop. Develop and present recommendations to the Decision Panel.

Participate in all activities of the workshop and act as guidance to implement the recommended actions after the workshop

Coach Plans the workshop and act as a facilitator, focusing on the group and leading them to think wisely

Acts as a facilitator

Expert Support with specific knowledge in matters before, during and after the workshop ( e.g. usually an IT )

6. Workshop

6.1 Introduction

The first step to do in a Kaizen workshop is to give a brief introduction to the purpose of Kaizen

or Continuous Improvement. The Kaizen workshops follow a similar structure and plan, and

they try to increase the sense of urgency in process that are short, concise and with clear

problems. When process become to complex and required deeper analysis a Value Stream

Mapping workshop will work better. For our case, the Sales and Marketing process of the

company is in trouble, we are having difficulty bringing more customers and sales to the

company. So Decide to go over the following process:

Figure No. 4- Workshop Preparation

Select Issue, Workshop Champion and Define Workshop

Scope

Select Workshop

Participants and

Leadership Panel

Coach Leadership Panel

Hold Workshop

Follow-Through and Implement

Before the Workshop During the

Workshop

After the

Workshop

Champion Activities

• Select a good topic

• Clearly scope the

workshop issue

• Select the right

people to attend

• Confirm logistics

with Lead Coach

• Prepare workshop

opening remarks

• Introduce and

close workshop

with key objectives

and goals

• Emphasize the

importance of

implementation,

ensure

recommendations

are doable

• At end of

workshop, meet

with drivers and

schedule 30-60-90

day progress

reporting

• Communicate

decisions and

progress

• Track and monitor

implementation

• Hold 30-60-90 day

review sessions on

implementation

status

• Recognize and

reward success

6.2 Brainstorming

During the Brainstorming phase, the team must identify problems, issues with the process. Not

focusing yet on solutions or root causes which are a later part of the workshop.

Our list of problems, was define for each participant to bring 5 big problems they find in the

Sales and Marketing Process. Have the group generate as many unique, creative ideas as

possible using brainstorming techniques:

No idea is wrong or off limits!,

Write legibly on large post-its.

Ensure they frame issues as problems, not solutions or questions

Remind them to be specific and concise

Have a participant gather ideas into logical groupings or categories (pre clustering)

Identify duplicates and/or related issues and group them accordingly (twins and cousins)

Gain consensus on the groupings (clustering)

Keep everyone engaged throughout the whole process

Once this is complete you will proceed to dot voting

6.3 Idea Grouping

We group our problems in the following structure: when post-it are overlap, it means ideas as

duplicated. Three groups of problems were discovered: Marketing Plan, Sales Strategies,

Product and Process.

Marketing Plan Sales Strategies Product

Development

Process

Don’t have a clear

target and how to

promote

Don’t know how

to approach our

customers or

target customers

Don’t know what

are our quick wins,

and quick

products

Don’t know our

promotion

channels clearly

Find quick

attention getter

including pricing

for quick wins

There is no clear

target or

segmentation of

customers by

products

There is not

enough exposure

of marketing

materials in the

network Products are not

innovative

Not 100% full time

dedication to Sales

There is no

Marketing and

Sales Process

define

1

2

3

4

5

6

7

8

There is lack of

communication

for marketing and

sales

Lack of

mentorship,

partnership with

experts

Product is too

common, not easy

to sale

There is no place

to office place to

concentrate, and

be more

productive

9

10

11

6.4 Idea Voting - Prioritizing

Prioritized categories from the Gallery of Issues go into the breakout sessions for resolution.

Each participant is give a red dot (5 points) , a yellow dot (3 points) and a blue dot (1 point) .

Each participant is supposed to pick the three most critical issues they can identify from the

group of problems. One the voting is over, pick the activities that were mostly voted and

prepare to identify root causes and solutions. This is the result from the team’s votes.

Marketing Plan Sales Strategies Product

Development

Process

Don’t have a clear

target and how to

promote

Don’t know how

to approach our

customers or

target customers

Don’t know what

are our quick wins,

and quick

products

Don’t know our

promotion

channels clearly

Find quick

attention getter

including pricing

for quick wins

There is no clear

target or

segmentation of

customers by

products

There is not

enough exposure

of marketing

materials in the

network

Products are not

innovative Not 100% full

time dedication to

Sales

There is no

Marketing and

Sales Process

define

1

2

3

4

5

6

7

8

There is lack of

communication

for marketing and

sales

Lack of

mentorship,

partnership with

experts

Product is too

common, not easy

to sale

There is no place

to office place to

concentrate, and

be more

productive

9 10

11

6.5 Problems Table Results

Summarizing, after the voting phase we consolidate the problems and count the points. After

our voting exercise these were our problems results in order of importance:

Table No 2. Priorities

Problem

ID

5

Points

3

Points

1

Point

Total

1 We don’t have a clear target and how to promote There is no clear target or segmentation of customers by products

5 3 1 9

7 Products are not innovative Product is too common, not easy to sale

5 3 8

8 There is no Marketing and Sales Process define

5 5

5 Not 100% full time dedication to Sales

3 1 4

11 There is no place to office place to concentrate, and be more productive

1 1

10 Lack of mentorship, partnership with experts

0

9 There is lack of communication for marketing and sales

0

6 We don’t know what are our quick wins, and quick products Find quick attention getter including pricing for quick wins

0

4 There is not enough exposure of marketing materials in the network

0

3 We don’t know how to approach our customers or target customers

0

2 We don’t know our promotion channels clearly

0

7. Problem Analysis and Solutions

Once the problems have been categorized and grouped, we proceed to the analysis of root

causes and solution generation process.

After reviewing our potential

problems list we have team up to

formulate the problems and find

their root cause analysis using the

5-Why’s methodology and the

ISIKAWA Fishbone diagram which

usually leads to the root cause and

to possible solution in factors like

environment, people, measure, procedures. Figure No. 4 Ishikawa Diagram

Problem Definition

Key Activities OutcomeProcess Step

Root Causes Analysis

Solution Generation

Solution Selection

Action Planning

• Cluster and prioritize problems; address in

order of importance

• Formulate problem statement

• Concise problem

statement

• Evaluate and identify the cause(s) of the

problem

• Root cause(s)

identified

• Brainstorm solutions to problem that address

root cause

• Alternative solutions

generated

• Evaluate and select solution(s) that best solve

the problem, can be addressed by workshop participants, and are implementable within 90 days

• Final

recommendation(s) selected

• Build action plan that will be used to implement

recommendation

• Action plan outlined

Breakout Group Tasks

We have defined 5 Problems in our workshop and their potential root causes and solutions.

Table No 3. Results and Action Plans

Problem Root Causes Solution and Action Plan Not Clear Target and Market Segmentation

1. Poor Marketing Plan and market research

2. Lack of Human Resource

3. Lack of team Communication

1. Review marketing plan and market research to define potential customer and promotion strategy

2. Develop and Portfolio Strategy and Selection Criteria

3. Setup weekly meetings for Marketing Review

Generic Product, Not Innovative

1. Focusing on current offer only

2. Did not apply Blue Ocean Strategy

3. Did not tested the product first

1. Apply blue Ocean strategy to develop new products

2. Validate product before launching 3. Look for Project Funds

No Marketing Sales Process Define

1. Too many task for too many people

2. Did not have computer aid tools to draw faster process

3. Lack of meeting places and conflicts

1. Draw the marketing and sales process in IGrafx

No Sales force 1. No financial resources budget for sales

2. No expertise in Sales and Marketing from the team

1. Find a salesperson under commission

Unproductive Working Environment

1. No financial resources to rent a place

1. Look for office space to meeting and produce better work results.

8. Conclusion

Our conclusions include the evaluation of the workshop process, the experience we

experimented during the workshop and how this will impact our approach to change

management.

8.1 Evaluation Efforts

We have considered using the Star Model for our analysis because it pertains much about

strategy and team participation. We know from Managing Organizational Change (Evans &

Lindsay, 2008), that the Star Model covers five (5) pillars, and that its impact is based on

identifying the strength and weakness on each one of them. In our workshop we try to cover

each of the terms of the Five Star Model, ensuring we include solutions that will reform the

current situation. We are listing our solutions under each of the Star Model categories, so we

can validate the improvement and be consistent with the model for change management.

Strategy Structure Process&

Lateral

Capabilities.

Reward

System

People

Practices

1. Review marketing

plan and market

research to

define potential

customer and

promotion

strategy

2. Develop and

Portfolio Strategy

and Selection

Criteria

3. Apply blue Ocean

strategy to

develop new

products

1. Find a

salesperson

under

commission

1. Draw the

marketing and

sales process in

IGrafx

2. Setup weekly

meetings for

Marketing Review

3. Validate product

before launching

1. Look for office

space to meeting

and produce

better work

results.

1. Apply blue Ocean

strategy to

develop new

products

2. Look for Project

Funds before they

are launch

As we can see from our results, we have touched all 5 categories of the Star Model, which

consolidates an integral proposal for change, to remain sustainable and to be implemented by

the team.

8.2 Workshop Experience

We conclude that in our brief workshop and concise actions, we have address the 5 points of

the Star Model, leading towards a good result for change and sustainability of a more solid

process for Sales and Marketing. In order to promote LEAN behaviors in our organization, we

must understand that sustainability of any process must rely of its documentation and

reliability, on a process that can be performed by any individual in the organization, and that

can be repeated with constant quality results.

"We created a lean improvement team and conducted a comprehensive campaign to kaizen the

organization's key value streams. And we had dramatic results. Faster patient flows. Better

outcomes. Lower costs. But we couldn't sustain the gains. The improvement efforts weren't

connected to the way the organization was managed and the value streams started to regress

to the mean as soon as the improvement team left. After I left the organization, the whole

program came to an end. What a shame." (J.Womack)

To build solid and mature processes, we must design them robust, and for people who are the

ones to perform the tasks and activities.

This was our first Kaizen event and we have experience a lot of transformation change in the

team, some of the effects of participating in the workshop were:

Higher commitment to the business

Increase of ownership of the business and products

Team building efforts : formation, norming and performing is improving

Motivation from the group has impacted our results

“One core principle of lean is respect for the individual. While employees do not represent the

entirety of lean impacted humanity, they are the primary learners, doers, beneficiaries and

sometimes, when kaizen events are improperly applied, “victims.” They are also enablers,

adopters and/or saboteurs of change. Resistance is rooted in the human side at least as much

as the technical”. (Wolfe)

Organization Change Management brings much of the philosophy of handling with change, is

not only about implementing tools and methodologies, is more about instilling a cultural impact

shift in the organization. As we try to promote in our organization, we want to build LEAN

BEHAVIORS, not only teach how Lean can benefit your process and systems, but for everyone in

the organization to be committed with Lean Thinking, its benefits and flaws, its cultura impact

to constantly “seek for perfection”.

“ The concept of perfection in lean production means that there are endless opportunities for

improving the utilization of all types of assets. The systematic elimination of waste will reduce

the costs of operating the extended enterprise and fulfills customer's desire for maximum value

at the lowest price. While perfection may never be achieved, its pursuit is a goal worth striving

for because it helps maintain constant vigilance against wasteful practices.” (The Manufacturing

Edge).

9. References

1. (2008). Managing for Quality and Performance Measurement. In J. R. Evans, & W. M.

Lindsay, Managing for Quality and Performance Measurement (pp. 677,678). West

Eagan, MN, USA: Thomson, SouthWestern.

2. General Motors. (2007). Go Fast Coach Clinic Manual. Detroit: General Motors.

3. General Motors ( 2006). Value Stream Mapping Clinic Manual. Detroit: General Motors

4. Managing organizational Change (2009). In Ian Palmer & Richard Dunford & Gib Akin

5. Lean Enterprise Memory Jogger(2002), Lean Enterprise Institute.

6. Gembutsu Consulting Newsletter. How to Conduct a Kaizen Workshop

http://www.gembutsu.com/newsletters/newsletter8-

07/ConductWeeklyKaizenWorkshop.htm

7. Defense Industry Daily . Want and Effective Kaizen Event? Don’t Forget the Human side.

Mark R. Hamel and Charles J. Wolfe

http://www.defenseindustrydaily.com/Want-an-Effective-Kaizen-Event-Dont-Forget-

the-Human-Side-06139/

8. The Nation Business. The Toyota Way – Road to Marketing Excellence. P.Changsorn

http://www.nationmultimedia.com/2009/01/14/business/business_30093187.php

9. Lean Enterprise Institute. The problem of sustainability. J. Womack

http://www.lean.org/common/display/?o=752

10. The Manufacturing Edge. Intro to Lean.

http://www.mamtc.com/lean/intro_intro.asp#Perfection

11. Lean Enterprise Institute. Principles of Lean

http://www.lean.org/WhatsLean/Principles.cfm