Two-dozen leaders from 11 Center for Operational Excellence member companies are gathered at Huntington National Bank, overlooking downtown Columbus and looking to learn from each other.
One company distributes pharmaceuticals. Another is keeping the lights on in the room itself. Yet another makes forklifts. And another sells insurance.
Spread across a variety of industries, they’re allowing the rest of the group a look under the hood of the operational excellence transformations they’re all sustaining in the hope that their challenges and successes help others – and that they walk away with new insights, too.
“We need help seeing things,” Huntington Chief Continuous Improvement Officer Jeff Sturm tells the group as the morning begins. “We base this on the idea that we’re better together and we need each other.”
This late January meeting marks the third occasion a group of leaders from COE member companies has gathered at a host company for an informal benchmarking session. At the meetings, attendees take advantage of the casual atmosphere to open up about some of the most crucial challenges in process improvement – sustainability, leadership behavior, metrics – and field questions from others. It’s a quick procession of slide decks and Q&As that offers a snapshot of how these companies are injecting structure and momentum into transformations that, in so many companies, fail from a lack of either.
The benchmarking group launched in August of last year at COE member KeyBank in Cleveland. Deb Lindway, Key’s enterprise director of Lean Six Sigma, reached out to COE about bringing leaders to its headquarters to connect.
“We’ve realized tremendous value from participating in COE events, but we wanted to pull together a subset of COE members from service-based companies to share our stories and leverage our collective experiences,” Lindway said.
Fewer than a dozen attendees from several member companies got the group started in August. A follow-up session in November at member Grange Insurance attracted a larger group, and now the gathering has doubled from its original size.
One regular attendee is Tim Krall, deputy director of LeanOhio, the group formed after Gov. John Kasich took office in 2011 and made process improvement at state agencies a key priority. LeanOhio joined COE last year and Krall is presenting a breakout session at April’s Leading Through Excellence summit.
Krall himself is a continuous improvement veteran who’s spent time at COE member Owens Corning along with Emerson Network Power and Sandvik, where he was serving as a continuous improvement leader when he joined LeanOhio more than a year ago.
“Getting a chance to meet with my peers from other industries really ignites my excitement for continuous improvement,” he said. “It’s great that others share openly both the good and bad, giving others a chance to learn from their experience.”
COE Executive Director Peg Pennington, who’s served as emcee of the benchmarking sessions, said she sees the gatherings as a start of something new – and potentially transformative – at the center.
“The most visible aspect of COE is its event roster, but COE is more than that – it’s a community of people committed to solving problems and learning from each other,” Pennington said. “I really see groups like this as the future of our center. It’s exciting to see these connections get made and keep growing.”
If you’re interested in becoming a part of the benchmarking sessions, contact Pennington at email@example.com.
Being a top hospital in the country, Cleveland Clinic is home to countless great ideas poised to transform into life-altering, even life-saving, medical advancements.
Getting those ideas out of the heads of its top-ranked physicians and onto the market has been the focus of a remarkable collaboration between the hospital and one of its neighbors in the Cleveland economic scene: Manufacturer Parker Hannifin Corp.
This partnership, which began quietly nearly a decade ago and was formally announced in 2014, is the focus of the afternoon keynote at the Center for Operational Excellence’s Dec. 2 seminar. At the event, Parker Hannifin VP Pete Buca will share details on the Cleveland Clinic collaboration, which has become a bustling pipeline of medical device ideas the company is working to bring to life using its own product development process, dubbed “Winovation.”
Recently ranked the No. 2 hospital in the country, Cleveland Clinic sees more than 5 million patient visits a year and employs more than 3,000 caregivers. That same U.S. News & World Report ranking called it the No. 1 hospital in the country for cardiology and heart surgery and one of the top five for diabetes and endocrinology, gastroenterology, orthopedics and pulmonology, among others.
Parker Hannifin, meanwhile, is an $11 billion-a-year maker of motion and control technologies that spent about $360 million on research and development in its latest fiscal year. It’s a supplier to more than 400,000 customers that span just about every significant manufacturing, transportation and processing industry in the economy: Food and beverage, life sciences, renewable energy, agriculture and aerospace, just to name a few.
Parker and Cleveland Clinic began collaborating several years ago in an effort to connect the engineering and product development prowess of the former with the critical insights into health-care challenges at the latter. To translate these two capabilities into action, Parker employees sat in on surgeries and communicated with surgeons, leaders told Crain’s Cleveland Business. Interactions like these spawned the 100-plus ideas that initially populated the partnership’s pipeline.
One product seeking to eventually make its way to the market is what’s called the Cleveland Multiport Catheter (CMC), a bold attempt to advance the treatment of brain cancers. Gliomas – a type of tumor in the glue-like supportive tissue of the brain – are resistant to radiation and other common therapies, largely because of the natural barrier in the body that keeps circulating blood out of the brain.
Surgical catheters that pump cancer drugs directly into the brain have been used on a trial basis for the past few decades, according to an October 2015 article by a CMC inventor, but have key limitations. Two in particular, according to the article, must be used in a special operating room, and left in only for several hours. The CMC, which began development in 2009, can be implanted in any neurological OR then be left in place for several days, ultimately delivering more cancer drugs, wrote inventor Dr. Michael Vogelbaum.
Cleveland Clinic partnered with Parker Hannifin to manufacture the CMC and treated its first patient with the device about two years ago. A March update revealed seven patients have undergone treatment with the CMC, which now has an Investigational New Drug application formally on file with the U.S. Food and Drug Administration. Dr. Vogelbaum said in a CMC update video that the device ultimately could help treat other neurological conditions such as Alzheimer’s Disease, Parkinson’s Disease and epilepsy.
At COE’s Dec. 2 seminar, Buca will share other exciting developments with Cleveland Clinic and detail how other organizations can learn from their collaborative innovation efforts. The featured keynote at the seminar’s morning session is Fisher College of Business Prof. Aravind Chandrasekaran, an award-winning researcher who will be sharing keys to collaboration.
The next time you think your organization’s process problems are so singular they couldn’t be happening anywhere else, ask Joe Langlitz and his colleagues how they spent the first month of their summer this year.
Langlitz and fellow Fisher College of Business MBA students James Goetter and Wenzhao Bi closed out their first year in the program with an 8,000-mile trip below the equator to Gaborone, Botswana. They were one of eight groups of students sent overseas through Fisher’s Global Applied Projects (GAP) program to work up-close with a corporation to solve a business challenge. Sponsoring the students’ gap team was the Botswana arm of British banking giant Barclays, where Fisher alumnus Jeff Davis serves as Chief Risk Officer.
Looking back at the work Langlitz and his team completed, Davis says they’ve helped lay the groundwork for some major improvements in Barclays’ business loan approval process. Getting there, however, entailed a frenzied three-week mission to hunt down process waste that put to work what each team member brought from the classroom and enlisted the help of a few Center for Operational Excellence members, too.
‘I wanted a revolution’
Davis cut his teeth in the birthplace of lean manufacturing, working with automakers and suppliers as they applied lean/Six Sigma principles. Today he’s a top officer at Barclays Botswana, which employs 1,200 at its corporate office and 42 branches and ranks as the second-largest bank in the market.
“When I got into financial services later in life, I would see our processes through the lens of the learnings I had in the automotive industry and would get frustrated at our inability to do true lessons and root-cause analysis in our pursuit of simple, repeatable processes.”
A particular target of Davis’ frustration was the corporate loan approval process at Barclays Botswana, which could – and often did – take as few as two days but also could stretch past six months in some instances, putting average turnaround just shy of four months.
“I wanted a revolution,” Davis said. “I wanted 500 percent better.”
Davis took his first steps toward a solution by connecting with the GAP program at his alma mater, eventually bringing the trio from Fisher to Gaborone and pairing them with two MBA students from the University of Botswana. The project team had zero formal corporate banking experience – and that’s exactly what Davis wanted.
“We wanted an injection of new ideas,” he said.
Langlitz admits to a dose of culture shock upon arrival. Gaborone is the governmental and economic capital of a country with a fast-growing economy, but one that also still relies heavily upon mining and the cattle trade. It’s the latter – particularly their penchant for wandering onto busy roads in Gaborone – that struck the team in their early days.
“The first week we were there, it really sunk in: ‘We’re on the opposite side of the equator,’” he said.
The more time the team spent in country, however, the more familiar it became – and the more Langlitz and others saw how universal challenges such as those at Barclays are.
“They’re just like any institution,” he said. “They’re trying to figure out better ways to serve the customer.”
The GAP team and their University of Botswana colleagues took on what Barclays dubbed “Project Firefly,” an extensive effort to visualize the loan approval process flow in the form of a value stream map and, importantly, flag non-value-added elements therein. The long-term goal is to slash average loan-processing time a staggering 90 percent to only 10 days.
Mapping the process required interviewing numerous stakeholders across different offices and navigating at-times fraught situations.
“With the overall process so fragmented, teams tend to be myopic when dissecting which processes are adding to uncompetitive turnaround times,” Davis said. “We asked the team to hold a mirror up and tell our people what’s going on without placing blame, and they did a nice job of lowering defenses.”
In addition to receiving regular coaching from COE Executive Director Peg Pennington, the Project Firefly team also sought insights on the challenge at hand from two member companies: Huntington National Bank and KeyCorp.
“A lot of the pain points they had,” Langlitz said, “were pain points Barclays has been dealing with.”
Jeremy Winstel, a senior manager of enterprise lean/Six Sigma for Key, said reducing customer hassle has been a regular focus for the bank in its process improvement efforts. His insights served as a key early benchmarking opportunity for the project team before and during their stint in Gaborone.
“Providing this knowledge transfer assistance has been a great way to get plugged in to Fisher and try to help out,” Winstel said. “That’s what the COE’s about, holistically.”
Kevin Plaugher, senior vice president and business banking credit manager at Huntington, also spent time walking the team through the credit approval process and imparting a key bit of wisdom:
“It’s like physics,” Plaugher said. “If you want to extend credit to the customer, there are certain things you have to do, and you can’t pretend steps in the process can be skipped or eliminated. Still, even with the most manual processes, there are tools to make it faster, simpler, and clearer.”
Langlitz said benchmarking with Huntington and Key “sent us down the right path” to ultimately making this key discovery: More than half of the time Barclays Botswana spent processing loans was non-value-added. This opened the door to substantial improvements.
Just the beginning
The Project Firefly team capped their nearly three-week stint with Barclays Botswana by reporting out their findings and recommendations to the bank’s executive leadership team and its Managing Director, the region’s top-ranking official. Langlitz said the team took particular pride in the fact that none of its recommendations came strictly from qualitative information.
“All our recommendations were data-driven,” Langlitz said. “These weren’t just because we heard someone say it was a good idea.”
The results and recommendations provided major clarity for Barclays going forward, even if Davis and his colleagues already knew process waste was a problem.
“We knew there was a lot of waste in the system, but we’d never been able to measure it,” he said. “They did a great job of taking a complicated set of data from a lot of locations and distilling it down to a very clear story to tell.”
Through the summer, Barclays Botswana began hiring additional associates and making its first strides in implementing some of the Project Firefly recommendations. Improvement efforts are set to ramp up through the fall, Davis said, for what is expected to be an ongoing process.
As for the students, Langlitz said he and his colleagues gained invaluable process improvement skills, through an unforgettable experience, no less.
“Being able to say I’ve been there, done business in a different culture, I’m a lot more comfortable now.”
Full abstracts for the five rounds of breakout sessions offered April 13-14 are now available on the official summit site. During each of these rounds, summit attendees will have the chance to select from one of four offered presentations. Across the two days, these sessions – delivered by a mix of researchers and industry leaders – tackle questions including:
How can I be a more effective leader by asking the right questions?
How can I work better with “resisters” inside my organization to gain buy-in and build consensus?
How can I make meetings more valuable – and kill the ones that aren’t?
How should I react when a project suddenly changes scope?
How can my organization leverage visual tools and storytelling to execute on strategy?
Along the way, leaders at organizations including Nationwide, Honda, GE Aviation, American Electric Power Company and Progressive Insurance will be giving inside looks at their process improvement journeys. And chief summit sponsor MoreSteam.com will be offering a limited-capacity, competitive workshop outlining the key principles of Agile Process Design.
Whether you’re already registering or still making plans to attend, check out the full list of abstracts and begin planning the path most valuable to you and your team.
As the summit approaches, here are some other key things to know:
We’re approaching sell-out: Leading Through Excellence 2016 is already 75 percent booked, and three offered tours have already reached full capacity. Check out the list of remaining opportunities on Tuesday, April 12, and act fast as a number of sessions are nearing capacity, including our featured workshop: The Pit Crew Experience.
Hotel rooms are filling up, too: The official summit block at the Hilton Garden Inn has reached full capacity. A secondary block at a similar price point has some rooms available – our lodging page has more details.
Early bird pricing is over, but you can still save: Automatic discounts for the summit have expired, but group sign-ups of five or more attendees can still save 5% on the final total. Contact Matt at firstname.lastname@example.org with questions.
by guest author Aravind Chandrasekaran, associate professor of management sciences, Fisher College of Business
Anyone who has taught lean principles grounded in the famous Toyota Production System (TPS) to organizations outside the manufacturing industry has – at least once – heard this common refrain: “(Insert industry here) isn’t cars on an assembly line. This doesn’t apply to my work.”
Leading lean thinkers, of course, have learned how to work with individuals and teams to move past this roadblock and garner buy-in – that’s why the practices and tools intrinsic to TPS have made their way into countless industries. Lean still can be a target for criticism, though, and one need look no further for proof than an article published earlier this year in the New England Journal of Medicine – and the debate it ignited.
The January issue of NEJM featured an article called “Medical Taylorism” where authors and physicians Pamela Hartzband and Jerome Groopman assert that lean principles “cannot be applied to many vital aspects of medicine. If patients were cars, we would all be used cars of different years and models …” This tipped off a flurry of rebuttals, including one from Lean Enterprise Institute CEO John Shook boldly titled “Malpractice in the New England Journal of Medicine.” In his piece, which itself attracted widespread attention, Shook writes that the foundational lean principles of continuous improvement and respect for people are critically important in the health-care system.
Shook is right, but I’d like to approach this discussion from a different angle, namely that this line of criticism has emerged elsewhere – and it’s rooted in a lack of understanding of lean deployment.
One of my initial research areas sought to understand how standardization and “smart application” of Six Sigma principles can aid R&D and innovation efforts. I pursued this as a number of business press publications and industry practitioner blogs lamented the damage Six Sigma does to creativity and praised the need for variation for innovation. Several years of research with my colleagues in Fortune 500 companies made us realize such sentiments don’t hold much water. We found, in fact, that principles of Six Sigma – when applied to the innovation process correctly (hence the “smart” in “smart application’) – can help reduce unnecessary variation and stop worthless innovation activities that consume R&D funding.
I’ve more recently collaborated with researchers and physicians to tackle similar questions in health care. Once again, the findings – published in several academic and practitioner outlets – are very similar: The smart application of lean and continuous improvement principles can help develop a safe and patient-centered health-care system.
In arguing that patients aren’t cars, the NEJM’s authors are absolutely right – but they’re dead-wrong in concluding there’s no place for lean in “many vital aspects of medicine.” As with our R&D research, we’ve found that lean deployment in hospital settings minimizes unnecessary variation that comes from care providers, not patients. In fact, it frees up time and effort to cater to the necessary variability in a population diverse in its illnesses, economic backgrounds, languages and more.
As an example, I spent years with other researchers – including somephysicians – looking at Ohio State University’s Wexner Medical Center, specifically a lean deployment effort in its kidney transplant discharge process. Medical research has found that transplant recipients after discharge must drink at least three liters of fluid a day – failure to do so can spike creatine levels, elevating blood pressure and increasing the likelihood of readmission. In our study, we found variations in how nurses delivered these instructions to patients: One nurse, for example, recommended drinking “a lot of fluids” while another suggested 100 ounces. Interestingly, nurses varied their wording across patients, while one patient would receive different instructions from more than one nurse. This wasn’t a matter of intentional deception, but the inconsistencies confused patients as they took in a tremendous overload of instructions.
Overhauled through the lean deployment via standard work design, nurses in our medical center now clearly explain the specific volume of fluid, use a jug to visually illustrate, and discuss the consequences of not following the instructions. Preliminary findings show this approach soothes patients’ anxiety levels and has reduced the chances of readmissions in the first month after transplant.
This isn’t just a lean approach to a problem – it’s a smart lean approach. And in an environment that, yes, isn’t cars on an assembly line, that matters more than ever.
Too Late: The Tuesday, April 12, morning tour of global brewing giant Anheuser-Busch InBev is completely sold out. Luckily …
Nearly Sold Out: Limited seating remains for the Tuesday afternoon Anheuser-Busch InBev tour. Another tour offered Tuesday afternoon, to Cardinal Health’s Fuse software development operation, has a scant few slots remaining.
Gaining Steam: Planning on taking part in our marquee workshop for this year’s summit, The Pit Crew Experience? A number of seats already are pre-booked, while additional tickets are selling quickly. We expect this option to sell out by late February. Another tour gaining popularity among registrations is the trip to longtime COE member Abbott Nutrition, whose massive Columbus operation employs thousands in the region.
You might not have ever heard the name “Diageo,” but perhaps these ring a bell?
Johnnie Walker, Crown Royal, Smirnoff, Ketel One, Captain Morgan, Bailey’s, Tanqueray, Guinness – the list goes on.
Not a household name itself, the brands Diageo owns are; today, the company claims the title as the world’s largest producer of spirits, and it’s a major producer of beer and wine.
In a nod to COE’s upcoming seminar, which features Diageo’s North American supply chain leader, Paul Gallagher, here are some interesting facts about the company whose supply chain excellence journey will be shared in just a few weeks:
The North American region, whose supply chain Paul Gallagher leads, is the company’s most robust contributor to the top and bottom lines. That region accounted for about one-third of its €10.8 billion ($11.7 billion) total sales and nearly half of its €3 billion ($3.3 billion) operating profit in the most recently closed fiscal year.
Diageo’s North American distribution network is huge, with more than 100 spirits distributors and brokers, and more than 400 beer distributors. That’s on top of 11 bottling, distilling and blending sites on the continent, the closest of which is in Louisville, Ky.
Diageo is part of the reason you know more about what you’re drinking. The company was a major voice in a responsible-drinking push that worked with consumer and public health advocates to eventually include alcohol content and nutritional information on packaging. This is an initiative Diageo is rolling out worldwide.
Diageo’s 2015 revenue leader? Scotch, followed by beer and vodka.
Diageo’s roots stretch back nearly 300 years: The company’s current iteration didn’t come around until 1997, but the namesake of one of its flagship brands, Guinness, signed a 9,000-year lease in Dublin in the late 18th century.
Burger King and booze? Diageo at one point owned the Burger King and Pillsbury brands. It sold those in 2000, three years after taking on its current corporate structure, and began picking up more spirits and wine businesses in 2001.
Diageo employs more than 33,000 around the globe. About 10 percent of those employees are in North America, while nearly two-thirds are in Europe and Asia.
COE’s upcoming seminar is a can’t-miss for continuous improvement leaders, supply chain and procurement professionals, and anyone else who works with an extended network of suppliers and vendors. Diageo is a leader in mastering its complicated delivery network, and its strategies contain actionable insights for any industry.
A partnership between Fisher College of Business and organizations inside and outside The Ohio State University is ensuring the undergraduates hit the job market the with real-world problem-solving experience managers need.
Fisher students recently presented the results of 15 projects undertaken through the semester at a range of nonprofit entities in Ohio State and around the community. External projects touched a range of sectors but focused on service-minded nonprofits such as organ donation coordinator Lifeline of Ohio.
Jordan Ross (pictured), a junior at Fisher, participated in the Lifeline project, which sought to bring much-needed efficiency to the organization’s phone-call system, a time-sensitive and critical element of the donation process. According to Lifeline, only about one in 100 people in the U.S. will die after given the brain-death classification that paves the way for organ donation – this condition isn’t necessary for tissue donation – and getting to the right donation candidates quickly can literally be a matter of life and death.
The current state, Ross said, was unnecessarily siloed with scheduling issues. Using the five-step DMAIC (Define, Measure, Analyze, Improve, Control) problem-solving process outlined in the Six Sigma methodology, Fisher students outlined a phone tree and shared calendar that established a formal communication system at Lifeline.
The students’ recommendations were simple, Ross said, but they could make a difference for the organization – and certainly made an impression on him.
“I learned a lot of problems have simple solutions,” Ross said, “but because of hierarchies and communication issues, they’re not simply resolved.”
Another undergraduate project became an fortuitous collaboration with Fisher students and a graduate of the college’s Master of Business Operational Excellence program, Dublin City Schools Superientendent Todd Hoadley. The longtime education administrator asked Fisher students to examine the district’s contracting process for athletics administrators, which had little visibility as it progressed and was missing targeted completion windows.
Students scrutinized the process and eventually create a future state map aimed at increasing visibility. Hoadley said he and the district were extremely impressed by the results of the students’ project.
“It’s evident these students have been exposed to a rich curriculum and been held to high standards of learning,” he said.
The nuts and bolts of problem solving, however, are only part of the education students get out of the project work. Allison Johnson, a senior who worked on the project, said working with high-level employees was initially daunting – especially as students were in a position to identify shortcomings in the process – but ultimately valuable.
“It’s challenging coming in so young,” Johnson said,” but I really learned a lot of communication skills I’ll be able to build on in the future.”
Those “soft” skills are an added – but very important – bonus to the projects as they blend in-class and real-world experience, said Cheryl Dickerson, a senior lecturer at Fisher and coach for the program.
“Students start out thinking they know solutions, but this causes them to be more thoughtful,” Dickerson said. “They’re developing critical thinking and people skills, all at the same time.”
Looking for the latest pulse on the manufacturing industry from leaders who live it every day?
The Ohio State University’s Ohio Manufacturing Institute this week released the latest edition of its Manufacturing Tomorrow podcast, a twice-monthly sit-down with leaders in the trade. The featured guest this week is Vance Greene, senior director of global quality and operational excellence at COE member Clopay Plastic Products.
Mason-based specialty plastics maker Clopay joined the COE last year. The company makes specialty plastic films used in everything from infant diapers and feminine hygiene products to equipment covers and product packaging. Its fascinating history began in 1930 and picked up steam during World War II when the company made waterproof laminated paper and board for overseas packaging. The company later entered the burgeoning plastics market (if that conjures a movie reference, it’s one not lost on podcast host Marty Kress, either) – and the rest is history.
A graduate of the Fisher College of Business’ trailblazing Master of Business Operational Excellence program, Greene chats about everything from the company’s global growth prospects to the value of applying op-ex principles throughout the organization.
Clopay is the latest COE-affiliated company to be featured on the podcast, which you can listen to here. Past speakers also include Abbott Nutrition’s Matthew Roberts and Anheuser-Busch InBev’s Becky Bach, both recent keynotes at center events.
Check out the full back catalogue of Manufacturing Tomorrowhere.
Of all the words that might come to mind when describing a great workplace, Rich Sheridan has built a national reputation on one that likely wouldn’t top the list: Joy.
Nearly 15 years into his tenure as the leader of Ann Arbor, Mich.-based Menlo Innovations, Sheridan is now a sought-after speaker on the national scene while his software development firm is a must-see tour site that draws more than 2,000 visitors a year. This is thanks, in no small part, to the publication of Sheridan’s Joy Inc., an inside look at the tight-knit, bureaucracy-free world he’s built at Menlo that has challenged conventional notions about organizational culture and inspired countless leaders.
According to his bio, Sheridan started out as a programmer in 1973 and worked his way through a number of technology companies in the Ann Arbor region. He was deep into revamping his management approach when the dot-com bubble burst and he found himself jobless. Menlo Innovations was created in June 2001 and Sheridan was a Forbes cover story in just two years.
Sheridan’s vision for a “joyful culture” is one of many great stories we’re featuring at the 2015 summit. Check out our full roster of featured keynote speakers and our line-up of workshops and tours. Registration is discounted up to 20% through Dec. 31!