Sunday, June 16, 2019

New Book Part 26

In my last post we demonstrated how, as a team, the Goal Tree was constructed.  In today's post we will briefly discuss how this team used the completed Goal Tree to assess the current state of their organization. This series of posts was taken from my latest book, The Focus and Leverage Improvement Book - Locating and Eliminating the Constraining Factor of Your Lean Six Sigma Initiative, published by Routledge/Productivity Press.

As a refresher, here is the completed Goal Tree.




Using the Goal Tree as an Assessment Tool
Bright and early the next morning, the executive team began filing into their conference room, full of anticipation on just what they would do with their completed Goal Tree.  The CEO hadn’t given them any instructions on how to prepare for today’s work, so they were all eager to have the events of the day unfold.  When everyone was seated, the CEO welcomed them and offered his congratulations again on the great job they had done the day before.  “Good morning everyone,” he said as everyone responded with a “good morning” back to him.  As he scanned the room, he noticed that there was one person missing, the Junior Accountant.  When he asked the CFO where she was, he explained that she was working on the monthly report and wouldn’t be joining them today.  The CEO looked the CFO square in his eyes and told him that nothing was more important than what they were going to do today.  “Go get her!” he stated emphatically.  The CFO left and returned minutes later with the Junior Accountant and the CEO welcomed her.  He then said, “We created this as a complete team and we’re going to finish it as a complete team.”

The CEO explained, “When the Goal Tree was originally created by [2] Bill Dettmer, it was to be used as a precursor to the creation of a Current Reality Tree (CRT).  That is, he used it as the first logic tree in TOC’s Thinking Processes to help create the CRT.”  He continued, “And although I fully support this approach, I have found a way to use it to accelerate the development of an improvement plan.”  The CEO passed out copies of the completed Goal Tree and began.

“I want everyone to study our logic tree, focusing on the lower level NC’s first,” he explained.  “As we look at these NC’s, I want everyone to think about how we are doing with each of these,” he continued.  “By that I mean, is what we said needed to satisfy a CSF or upper level NC, in place and functioning as it should be.”  “We’re going to use a color-code scheme to actually evaluate where we stand on each one,” he said.  “If you believe that what we have in place is good and that it doesn’t need to be improved, I want you to color it green.  Likewise, if we have something in place, but it needs to be improved, color it yellow.  And finally, if each NC is either not in place or is not “working” in its current configuration, color it red,” he explained.  “Does everyone understand?” he asked, and everyone nodded in agreement.  “It’s important that we do this honestly so be truthful or this exercise will all be for not."


The CFO raised his hand and asked, “How will we use our color-coded tree?”  “Good question,” said the CEO.  Once we have reviewed our Goal, CSF’s and NC’s we will start with the red entities first and develop plans to turn them into either yellows or greens.  Likewise, we’ll then look at the yellows and develop plans to turn them into green ones,” he explained.  As he was explaining his method the CEO could see heads nodding in the affirmative meaning that everyone understood his instructions.  With that, the CEO passed out green, yellow and red pencils.  “I want everyone to do this individually first and then we’ll discuss each one openly until we arrive at a consensus,” he explained.  “While you’re considering the state of each entity, I also want everyone to also think about a way we can measure the status of many of these in the future,” he said.  “I’ll be back in a couple of hours, so please feel free to discuss your color selections as a group,” he added. With the instructions complete, the team began reviewing their Goal Tree and applying the appropriate colors to each entity.

Right on schedule, the CEO returned and asked how the session was coming.  The Plant Manager spoke first, “I was amazed at how much disagreement we had initially, but after we discussed each item, we eventually came to an agreement on how we believe we’re doing.”  The CFO jumped into the conversation and added, “I was amazed at how we came together as a team just by creating our Goal Tree.”  “I have to admit that when you told me to go get our Junior Accountant, I was a bit taken back.  But at the end of the day, she was a very important addition to this team,” he added.  And with that, the Junior Accountant was somewhat embarrassed, but thanked the CFO for recognizing her contribution to the effort.

“So, where is it?” asked the CEO. “Where is your finished product….your Goal Tree?” The CFO went to the flip chart and there it was. The CEO then asked, “Did you also discuss what kind of metrics we might use to measure how we’re doing?”  “Yes, we did,” said the CFO.  “And?” the CEO asked.  “We need to do more work on that,” he answered.  “So, what’s next?” asked the CFO.  After studying the finished product, the CEO thanked everyone for their effort and then said, “Let’s take a break and come back later and I’ll explain how we can use this tree to develop our final improvement plan,” said the CEO.

The team reassembled later that day to discuss their next steps.  Everyone seemed enthusiastic about what they would be doing going forward.  When everyone was seated, the CEO turned to the group and asked, “So how does everyone feel about this process so far?”  The Plant Manager was the first to respond, “I can’t speak for anyone else, but the development of the Goal Tree was a real eye-opener for me.  I never imagined that we could have analyzed our organization so thoroughly in such a short amount of time.  I mean think about it, when you add up the total amount of time we’ve spent so far, it’s not even been a full day’s work!”  As he spoke, everyone was nodding their heads in agreement.

The CFO was next to speak and said, “I can absolutely see the benefit from using this tool and one of the things that impressed me the most is that everyone contributed. But what really captivated me is that for the first time since I started working here, we actually are looking at the system rather than isolated parts of it.  One of the things that I will take away from this is that the total sum of the localized improvements does not necessarily result in an improvement to the system.  The Goal Tree forces us to look at and analyze all of the components of our organization as one entity.”  The figure below is their Goal Tree after completing their assessment on how each entity was functioning.


In my next post we will complete our discussion on how to use the completed Goal Tree to create an improvement plan.

Bob Sproull


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