Presidents’ Kaizen, also known as Baseline, is a fact-based problem solving process for setting priorities and taking action by creating ‘common knowledge’ and organizational motivation to overcome inertia and act. This management diagnostic approach analyzes the entire business and can powerfully motivate and aligning people to make change by:
- making waste visible and quantify the waste
- determining the root causes of waste
- identifying high impact activities to attack the causes
- generating common understanding based upon facts
- establishing one plan based upon consensus to attack and eliminate wastes
- quantify the costs and benefits, both financial and intangible
Imagine you get something like this in your mailbox.
In recent months we have seen a downturn in our business and increased pressure on price and margins. The leadership team and I have decided that it is time to take a step back and do a complete assessment of our business so that we can prioritize the right improvement initiatives going forward. Because of your proven leadership you have been chosen to participate in this process.
We will need to Baseline or entire business. You will be learning a lot more about the Baseline Kaizen process over the next few weeks. We’ll let you know more on project timing at an initial Kickoff and Training webinar next Monday. While we are all very busy it is important that you give this initiative your top priority. You will be asked to help with data collection and will be invited to attend my kaizen to be held in four weeks.
Thank you for your participation in this very critical initiative. If you have any questions, please don’t hesitate to reach out to me directly.
Bob, President and CEO
The Baseline Kaizen process is to Study and Do:
- Subteams gather data, analyze business dimensions, identify wastes & variation
- “Hook it all together” by displaying the analysis “on the wall”
- Develop a system view of the enterprise
- Prioritize opportunities and actions
- Develop improvement plan
- Gain ‘buy-in’ and alignment
Baseline Kaizen process scope is the entire enterprise and Value Stream. Some know this approach as Hoshin Kanri, True North, Policy Deployment, Goal Deployment, Presidents’ Kaizen. Whatever you call it the typical scope includes both material and information flows, organization and culture, management systems, customers and suppliers and can be categorized in these segments:
- Customer & Market
- Physical Value
- Knowledge Flow
- Management Systems
- Organization & Culture
- Turn data into understanding, understanding into a plan, plan into action
- Make processes and wastes visible for all to see
- Use data and facts to identify and quantify waste
- Leverage common Root Causes
- Develop One Plan
Unlike Strategic Planning or traditional goal setting, Baseline involves more people and more levels in an organization. When enough people get uncomfortable enough they may be motivated enough to do somethings differently.
Why do a Baseline?
- Different perspectives, often in conflict, little consensus and inertia
- Businesses are complex systems, and systems are hard to see and diagnose
- Wastes are generally invisible until investigated in an organized way
- Determine and quantify the gaps between as-is and future state, is a start
- Highlight and focus on projects that close the gap
- Define necessary resources (people, time, money)
- Quantify the benefits (tangible and intangible)
- Generate ‘buy-in’ and alignment
Baseline Kaizen Tools include:
- Voice of the Customer
- SWOT and environment scans
- Value Stream Map
- Business Model canvas
- Process Mapping
- Cause and Effect Diagram
- Reality Tree
- Root Cause Analysis
- Capacity Analysis
- Process Maturity Analysis
The typical Baseline Kaizen week typically follows this schedule:
- Current State Conclusions
- Root Cause Analysis
- Preliminary Solutions
- Final Solutions
- Implementation Plan
Do You Need Help With Baseline?
Why not get in touch and see how Flow Consulting can help you with Baseline improvements.