The High Velocity Edge Leadership Innovation and World

The High Velocity Edge: Leadership, Innovation, and World Class Competition Steven J. Spear Senior Lecturer, Massachusetts Institute of Technology Senior Fellow, Institute for Healthcare Improvement http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

Outline • Competition by innovation. • Why look at Toyota? • ‘Lean’ learnings… • High velocity innovation • Other examples • Q + A http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

1964 and 2010… http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

Why Toyota? Performance -- Efficiency -- Quality -- Variety -- Speed T T GM Ford Chrysler T GFC General Motors Ford Chrysler Toyota 1965 1973 http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com 1985 1995 2005 © Steven J. Spear 2010

Learnings: Chaos Out, Stability In Job Shop to Focus� ed Factory Drill Mill Drill Polish Mill Lathe Polish Lathe Mill Drill Lathe a SHIP Drill Polish Lathe Drill SHIP Polish Lathe Requests Chaotic Push to Self P� acing Pull Drill Schedule Production Control Drill Polish Schedule Drill Polish Ship Polish Deliveries Customer Improvisation to Repeatable Standard http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

4: Leadership High Velocity Improvement… -- Manage systems -- Cascade capability 3: Knowledge sharing -- Apply discoveries systemically. Stamp Weld Ship Stamp Weld 2: Problem solving -- Stop spread -- Build knowledge 1: System design -- Best approach -- See problems Steel Coils Tool ‘n Die http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com Stamp Weld Ship © Steven J. Spear 2010 Ship

Alcoa’s Pursuit of Perfect Workplace Safety 1: Manage work to see problems 2: Solve problems as seen 3: Share what is learned http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com 4: Develop people for 1 -3 © Steven J. Spear 2010

Health care: Good News Bad News Chance of Successful Outcome Potential Actual: Great Actual: Poor Surgery Post-Op Time http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

Pratt&Whitney Engineering Standard Work 2: Pathway: WORKFLOW MAPS… Who does what work for whom in what order? 3: Connections: DESIGN CRITERIA Expected handoffs Request Response 1: System Output: DESIGN OBJECTIVES What does the customer need? Request Response External Customer 4: Methods: ACTIVITY PAGES, PROFICIENCY TESTS, TECHNOLOGY ASSESSMENT How to do work? http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

US Navy: Nuclear Propulsion • See Problems • Solve Problems • Share Learnings • Lead http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

Selected Publications • BOOK: Chasing the Rabbit: How Market Leaders Outdistance Their Competition, Mc. Graw Hill, (Fall 2008) • “Who Was Caring for Mary: Revisited, ” with Frederick Southwick, Academic Medicine (December 2009). • “Fixing Healthcare from the Inside: Teaching Residents to Heal Broken Delivery Processes As They Heal Sick Patients, ” Academic Medicine. 81(10) Suppl: S 144 -S 149, (2006). • “Better Care for More People at Less Cost, ” with Don Berwick Boston Globe op-ed (October 2007) • “Learning from the Masters: By learning from Toyota and Alcoa how to manage complex work processes, hospitals can improve performance, ” Cerner Quarterly, (2006). • “Fixing Healthcare from the Inside: Teaching Residents to Heal Broken Delivery Processes As They Heal Sick Patients, ” Academic Medicine. (2006). • “Using Real-Time Problem Solving to Eliminate Central Line Infections, ” with Richard Shannon and other co-authors. Joint Commission Journal on Quality and Patient Safety, (2006) • “Operational Failures and Interruptions in Hospital Nursing Work, ” with Anita Tucker, Health Services Research, (2006). • “The Health Factory, ” New York Times [op ed], (2005). • (#) (*) “Fixing Healthcare from the Inside, Today, ” Harvard Business Review (2005). • “Ambiguity and Workarounds as Contributors to Medical Error, ” with Mark Schmidhofer, Annals of Internal Medicine (2005). • “Medical Education as a Process Management Problem, ” with Elizabeth Armstrong and Marie Mackey, Academic Medicine (2004). • (*) “Learning to Lead at Toyota, ” Harvard Business Review, (2004) • “Driving Improvement in Patient Care, ” with Debra Thompson and Gail Wolf, Journal of Nursing Administration (2003). • (*) “The Essence of Just in Time, ” Productivity, Planning, and Control, (2002). • (x) “When Problem Solving Prevents Organizational Learning, ” with Anita Tucker and Amy Edmondson, Journal of Organizational Change Management, (2002). • (*) “Decoding the DNA of the Toyota Production System, ” with H. Kent Bowen, Harvard Business Review, (1999). (#): Mc. Kinsey Award, One of top two articles in Harvard Business Review, 2005. (*): Shingo Prize winning articles. (x): Best paper proceedings, Academy of Management conference, 2001. http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010

Speaker Profile Steve Spear, senior lecturer at MIT and senior fellow at the Institute for Healthcare Improvement, is internationally recognized as an expert in innovation, operational excellence, and organizational learning, with deep experience in industry and health care. His reputation stems from award winning articles such as Harvard Business Review’s "Decoding the DNA of the Toyota Production System" and "Fixing Healthcare from the Inside, Today, " and his critically acclaimed and prize winning book Chasing the Rabbit: How Market Leaders Outdistance the Competition. Spear focuses on creating organizational capacity for high speed, broad based, improvement and innovation. He has both studied already outstanding organizations and has also helped ordinary organizations become outstanding. Along those lines he helped create the Alcoa Business System and the Perfecting Patient Care System used by hospitals in Pittsburgh, and his work was the foundation for Pratt and Whitney’s Engineering Standard Work for jet engine design. All are credited with marked increases in quality and capacity and reductions in cost. His publications have appeared in Harvard Business Review, Annals of Internal Medicine, Academic Medicine, the New York Times, and the Boston Globe. Awards for his writing include five Shingo Research Prizes, a Mc. Kinsey Award from HBR, and a USA Books National Business Book Award. Spear received his doctorate from Harvard Business School, masters of science in Mechanical Engineering and in Management from MIT, and his bachelors degree with a concentration in Economics from Princeton University. http: //Chasing. The. Rabbit. Book. com Chasing@Steven. JSpear. com © Steven J. Spear 2010