RIGHTING THE PYRAMID · Escalate issues not leverage insight 6 . The science of visualisation...

RIGHTING THE PYRAMID

EMPOWERING ORGANISATIONS THROUGH VISUALISATION

DAVID BURGESS

FOUNDER, BURGESS CONSULTING

Burgess Consulting

1

Do things sometimes feel upside down? Burgess Consulting

Transformation Partnering

2

Disruption at an unprecedented pace Burgess Consulting


Industrial Revolution Social Revolution Survival

3

50%

Back to school, back to the future Burgess Consulting


4

Knowledge v skill, memory,

exam-centric, mass production

Ancient Greece - σχολή Today - education

Rhetoric, culture & intellect,

mentoring for role in society

Future – immersive learning?

Soft skills, collaboration,

technology & analysis,

behaviours & curiosity

Self-worth dictated by tests

Backward looking focus Rounded individuals

Ready for the city state

Rounded & future ready

Ready for Business/Society

70/20/10

https://en.wiktionary.org/wiki/%CF%83%CF%87%CE%BF%CE%BB%CE%AE



Running to stand still Burgess Consulting


Reactive

Proactive

Demands on agenda

Setting own agenda

Winning

Strategy

5

Leadership and operations disconnected Burgess Consulting


Strategy informed by operations

Operations informed by strategy

Uninformed strategy

Operations cannot join the dots

Taverna di Cecco, Siena Italy

Pinch point of disconnection

Chasing value without insight

Escalate issues not leverage insight

6

The science of visualisation Burgess Consulting


3M 60,000x 90%

MIT 13 msec

Fact 1 Mln v 30 K

Remember a childhood memory.

7

A picture speaks a thousand words Burgess Consulting


8

Which person has not

attended safety training?

Gaining an enterprise overview Burgess Consulting


Consistent data (begin with easy to measure outcomes)

Internal benchmark & prioritisation

Where to start

9

Visual management of operations Burgess Consulting


10

Taiichi Ohno (1912 –1990)

Father of the Toyota Production System.

“Your workplace can be understood by everyone at a glance.

Progress or delay is immediately apparent, problems can

be discovered immediately, and everyone can initiate

improvement plans.”

Make the situation easily understood merely by looking at it

”Mieruka”

Teams see what happening & make connections Burgess Consulting


11

DELIVER RESULTS IN CONTROL

IMPROVE SET FOR SUCCESS

E2E Process Visualisation

Visual Management Board

Name Op

Bal M T W T F Wk1 Wk2 Wk3 Wk4 Target

Fred

Mary

Name Op

Bal M T W T F Wk1 Wk2 Wk3 Wk4 Target

Fred

Mary

Plan Do Act Check

CI WHEEL

Enabling Metric – Unapplied > 15 days

Outcome KPI - Overdues “The Biggest Loser” Credit Block Release correctly approved

Clear Instruction to customers

Better data from bank

Issues

due to

Invoice

quality

High effort

on small

customers

Too many

credit

blocks

Visualise

Manage Huddle

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Published Performance MI

Monthly Process Dashboards

Weekly VM Board

Daily VM Board

Organisation with

Stakeholders

Process Head with Managers

Managers with Supervisors

Supervisor with Team

Build a common understanding of trapped value Burgess Consulting


Measure own

performance

Measure own

performance & inputs

impacting own

performance.

Measure all performance

inputs that impact the

E2E process outcomes.

Follower

Partner

Leader

Using data to set governance & accountability Burgess Consulting


Integrated Process Governance

Standard Integrated Processes

Governance Risk &

Assurance Process

Data Process

Continuous Improvement

Process

Design Model and Operational Management System

Enabling

Processes

Finance

IT

HR H

t

R

Rt

R

Facilities Management

Strategy & Planning

Procurement

R

t

P

Customer Operations

Sales Supply Chain

O

t

C

Metrics on Value Drivers & Pain Points

Standard offer

Standard orders

Billing accuracy

Cash auto-matched

Integrated Strategy & Performance Oversight

O2C

Process

Owner

Sales Customer

Operations

Finance

Credit

Integrated Process Strategy

Monthly Process Governance

Supply

Chain

2013 2014 2017

Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-142013

Target

2014

Target

Aspiratio

nal

1 Customer Satisfaction - Global Commercial 8.2 8.3 8.4 8.4 8.5 8.4 8.3 8.4 8.3 8.4 8.5 8.5 8.5 8.5 >8.5

2 Customer Satisfaction - Retailers 6.6 7.9 7.6 7.8 8.2 8.0 7.9 8.2 8.0 8.0 8.6 8.2 8.5 8.5 >8.5

3 Customer Satisfaction - Commercial Fleet 7.8 7.9 7.9 7.8 7.7 7.8 7.7 7.8 7.7 7.6 7.8 7.7 8.5 8.5 >8.5

4 Customer Satisfaction - T&S Products 7.9 8.0 8.3 8.6 8.7 8.3 8.1 8.6 8.2 8.5 >8.5

5 Net Effort Score (NES) – High Value Accounts 53.4% 52.4% 52.7% 53.2% 52.6% 53.0% 52.2% 56.1% 53.0% 60.0% 65.0%

6 Standard Orders (Global Lubes only) 64.5% 65.7% 66.1% 64.0% 64.5% 65.2% 64.8% 64.1% 64.8% 65.0% 68.8% 70.0% 72.8% 80.0%

7 Standard Orders - Value leakage (k USD) $266 $209 $201 $235 $205 $221 $219 $243 $226 $232 $139 0 0

8 Sales Order OTIF Lubes - Direct Business 93.2% 93.6% 93.2% 92.1% 93.2% 92.5% 91.6% 91.7% 93.0% 92.1% 92.0%

9 Line Item OTIF Lubes - Indirect Business 91.3% 89.9% 90.7% 89.5% 89.9% 89.0% 90.9% 92.2% 93.5% 91.2% 92.0%

10 DFA Lubes 68.6% 65.1% 59.7% 65.3% 65.6% 68.1% 68.0% 66.5% 66.5% 63.5% 62.2% 67.8% 70.0% 70.0% 70.0%

11 OTIF Fuels Road Transport 92.9% 91.7% 90.8% 94.5% 92.2% 95.0% 94.6% 94.8% 94.7% 94.6% 94.6% 94.2% 91.0% 93.0% 95.0%

12 Fuels VMI Stockouts (Retail only) 2.6% 3.1% 4.8% 0.9% 1.1% 1.0% 1.1% 1.0% 0.9% 1.7% 1.2% 0.8% 1.4% 0.9% 0.7%

13 DFA Fuels 81.4% 80.0% 80.5% 79.3% 77.7% 80.0% 79.9% 83.1% 83.0% 83.8% 82.4% 81.9% 86.9% 86.9% 91.0%

14 Customer Satisfaction Proactive Comms (GC only) 8.5 8.6 8.5 8.5 8.6 8.5 8.4 8.6 8.6 9.0 >9.0

15 Invoice Accuracy 99.1% 99.2% 99.1% 99.1% 99.1% 99.1% 99.2% 99.2% 99.2% 99.1% 99.3% 99.4% 99.3% 99.4% 99.5%

16 Invoice Accuracy - Value leakage (k USD) $454 $333 $578 $879 $884 $851 $708 $706 $683 $528 $492 $372 0 0

17 Customer Satisfaction - Disputes (excluding Gen Public) 6.9 7.0 6.9 7.4 7.2 7.4 7.5 7.6 7.1 7.6 7.0 7.7 8.0 >8.0

18 Dispute Resolved within SLA (5 days) 81.7% 80.6% 77.7% 80.8% 79.8% 81.0% 82.7% 80.5% 78.4% 79.5% 80.3% 85.9% 90.0% 90.0% 90.0%

19 Value of open disputes at month end (k USD) $15,383 $6,091 $19,993 $16,280 $8,269 $7,834 $4,917

20142013

Disputes

Resolution

Global - Downstream

Voice of

Customer

Delivery

Experience

Invoicing

Experience

Ordering

Experience

$ $ $ $

13

201320142017

Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14Jul-14Aug-14Sep-142013

Target

2014

Target

Aspiratio

nal

1Customer Satisfaction - Global Commercial8.28.38.48.48.58.48.38.48.38.48.58.58.58.5>8.5

2Customer Satisfaction - Retailers6.67.97.67.88.28.07.98.28.08.08.68.28.58.5>8.5

3Customer Satisfaction - Commercial Fleet7.87.97.97.87.77.87.77.87.77.67.87.78.58.5>8.5

4Customer Satisfaction - T&S Products7.98.08.38.68.78.38.18.68.28.5>8.5

5Net Effort Score (NES) – High Value Accounts53.4%52.4%52.7%53.2%52.6%53.0%52.2%56.1%53.0%60.0%65.0%

6Standard Orders (Global Lubes only)64.5%65.7%66.1%64.0%64.5%65.2%64.8%64.1%64.8%65.0%68.8%70.0%72.8%80.0%

7Standard Orders - Value leakage (k USD)$266$209$201$235$205$221$219$243$226$232$13900

8Sales Order OTIF Lubes - Direct Business93.2%93.6%93.2%92.1%93.2%92.5%91.6%91.7%93.0%92.1%92.0%

9Line Item OTIF Lubes - Indirect Business91.3%89.9%90.7%89.5%89.9%89.0%90.9%92.2%93.5%91.2%92.0%

10DFA Lubes68.6%65.1%59.7%65.3%65.6%68.1%68.0%66.5%66.5%63.5%62.2%67.8%70.0%70.0%70.0%

11OTIF Fuels Road Transport92.9%91.7%90.8%94.5%92.2%95.0%94.6%94.8%94.7%94.6%94.6%94.2%91.0%93.0%95.0%

12Fuels VMI Stockouts (Retail only)2.6%3.1%4.8%0.9%1.1%1.0%1.1%1.0%0.9%1.7%1.2%0.8%1.4%0.9%0.7%

13DFA Fuels81.4%80.0%80.5%79.3%77.7%80.0%79.9%83.1%83.0%83.8%82.4%81.9%86.9%86.9%91.0%

14Customer Satisfaction Proactive Comms (GC only)8.58.68.58.58.68.58.48.68.69.0>9.0

15Invoice Accuracy99.1%99.2%99.1%99.1%99.1%99.1%99.2%99.2%99.2%99.1%99.3%99.4%99.3%99.4%99.5%

16Invoice Accuracy - Value leakage (k USD)$454$333$578$879$884$851$708$706$683$528$492$37200

17Customer Satisfaction - Disputes (excluding Gen Public)6.97.06.97.47.27.47.57.67.17.67.07.78.0>8.0

18Dispute Resolved within SLA (5 days)81.7%80.6%77.7%80.8%79.8%81.0%82.7%80.5%78.4%79.5%80.3%85.9%90.0%90.0%90.0%

19Value of open disputes at month end (k USD)$15,383$6,091$19,993$16,280$8,269$7,834$4,917

2014 2013

Disputes

Resolution

Global - Downstream

Voice of

Customer

Delivery

Experience

Invoicing

Experience

Ordering

Experience

A platform for continuous improvement Burgess Consulting


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Disrupted by disruption?

Auto billing & cash allocation on payment

Auto credit release / reassessment

Payment history, returns, disputes

Sell on standard offer

Outcompeting

Visual clarity on priorities Burgess Consulting


Priorities for the year

1. 2. … … 59. 60.

Policy & Guidance Materials

Competencies Needed

Employee Engagement

Webcast

Type here to ask a question

Safety priorities

PLAN & RESOURCE

ENGAGE & MOTIVATE

ASSURE WORK QUALITY

RECRUIT & ONBOARD

COACH & DEVELOP

MANAGE PERFORMANCE

The difference between supervision & leadership

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Visualisation keeps it honest Burgess Consulting


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Daily_ Mon Tue Wed Thu Fri

VM Huddle

Floor walk

Coaching (1-2-1)

Go-see (real time observation)

Weekly_

CI session

Monthly_

Controls review

Feedback (1-2-1)

Recognition session

A contract

between team

supervisor and

team members

PLAN & RESOURCE

ENGAGE & MOTIVATE

ASSURE WORK QUALITY

RECRUIT & ONBOARD

COACH & DEVELOP

MANAGE PERFORMANCE

Supervisor Standard Work_

Supporting more effective ways of working Burgess Consulting


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One Team at “working level” -

more consistent ways of working

Standard agenda

Process

metrics

Monthly

meeting Shared

issue Log

Escalation CI Funnel Performance

One Team Work-

shops

Bank the

$ value

trapped in

boundaries

DEATH BY EMAIL “WALK TALK EMAIL”

o Shared understanding of operational cause & effect

o Streamlined operational issue resolution

o Uses process metric data to drive accountability & improvement

o Two-way feedback

e.g. Customer

Operations & Finance:

Understanding how

billing impacts cash

collection

A picture that engages & retains talent Burgess Consulting


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Clear Job Goals

Quantifiable Performance that

delivers TCM targets

Quality

Efficiency

Business Impact

Collaboration

Improvement

Control

Leadership

Self Manage

Source of Skills

Individual Accountability for Closing Skill Gaps

Career Tree

Lateral & Vertical Progression

Possible

On the Job

•Experience

•Projects

Interaction

•Coaching

•Shadowing

Formal Training

•Classroom

•Virtual

Competency

Ladder

Sets Skill Expectation,

Offers Value Proposition

Intermediate

Skilled

Expert

Foundation

Competency - seeing what is expected Burgess Consulting


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• Clear statements of what expected in each box of the grid

• Each job identifies the level of skill and competency to be achieved

Competency

Ladder

Sets Skill Expectation, Offers Value

Proposition

Intermediate

Skilled

Expert

Foundation

Transparent performance assessment Burgess Consulting


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Operational delivery: • Achieved

targets • Took on more

complex activities

• Good feedback

Control & Improvement: • Took initiative to

improve job aid • Diligent control

execution • Shared best

practice

People: • Addressed a

competency gap

• Helped colleagues to…

• Ran Visual Management

Evidence of delivery against team & personal targets

Evidence-based individual performance assessment

Clear Job Goals Quantifiable

Performance that delivers on targets

Quality

Efficiency

Business Impact

Collaboration

Improvement

Control

Leadership

Self Manage

Competency Ladder

Sets Skill Expectation, Offers Value Proposition

Intermediate

Skilled

Expert

Foundation

10% 15%

Managed

Turnover

Role

model

Make successes visible Burgess Consulting


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Best Supervisor Award

Value of role models Power of storytelling

Reinforcing behaviours Resetting perception

Thank You

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RIGHTING THE PYRAMID · Escalate issues not leverage insight 6 . The science of visualisation...

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