How to Agreeably Make the Tough Decisions

© Copyrighted 2012 by David J. McClaskey. All rights reserved.

David McClaskeyPresident

Pal’s Business Excellence Institute

“We cannot solve our problems with the same thinking we used when we created them.”

Decision Making

1. The problem2. Causes of Poor Decision Making3. A Remedy: Process for Effective

Decision Making

The problem Poorly Made Decisions

“Confidence in the U.S. system of government has dropped to a new low in more than 35 years. Only 26 percent of Americans in a new ABC News/Washington Post poll say they're optimistic about "our system of government and how well it works” March 2011

Trust in Government

Gallup Poll. Nov. 28-Dec. 1, 2011. N=1,012 adults nationwide. Margin of error ± 4 percentage points.

."In your opinion, which of the following will be the biggest threat to the country in the future: big business, big labor, or big government?"

.

Bigbusiness

Big labor

Biggovernment Unsure

% % % %11/28 - 12/1/11

26 8 64 2

Criteria for Effective Decision Makinga. Effectiveness first: the best way to support

the mission/visionb. Sustainable: stays in place over timec. Efficiency: the cheapest way to get the best

wayd. Buy-in and commitment: a group of people

with diverse interests committed to taking the actions necessary to implement the decision in a way that creates sustained value

Causes of Poor Decision Making

Key Causes for Poor Decisions1. Watching out for lower level interests first; and

the higher level common good second2. Everyone having a different set of facts and

data leading to different conclusions as to the best path forward

3. Putting Efficiency before Effectiveness4. Settling for “OR’s” (win/lose) rather than

“AND’s” (win/win)5. Not doing the work to get the buy-in and

commitment to implement the decision and maintain the gain before going forth

Tom Brokaw: "The Time of Our Lives“

1.John Gardner: People rewarded for Single minded pursuit for an item on their group’s agenda

2.Intolerance to others view is a key problem

3.(Democrats/Republicans): Talking to each other, has never been worse

Key Cause: Lack of Execution 1. Primary Cause is NOT lack of discipline*2. Primary Cause is having enough buy-in to the

vision/mission to be willing to do “whatever it takes” (consistent with your values) to get it to happen*

3. Need a common mission and vision to relentlessly work toward achieving a sustainable vision of excellence

*Steven R. Covey, Seven Habits of Highly Effective People Audio Tape (points 1 and 2 above)

©2012 by Pal’s Business Excellence Institute. All Rights Reserved.

It is not the person in the job ….

It is the decision making process

Key Cause

Process for Effective Decision Making

(MDDB)

M/V/V Data Design Buy in/Commitment

MDDB

Process for Effective Decision Making (MDDB)

1. Mission/Vision 2. Data3. Design solution as best fit to mission

using data4. Buy-in and commitment

Process for Effective Decision Making

1. Mission/Vision: Aligned and linked to higher level Mission/Vision/Customer requirements (this is the “Why”)

• All management is contextual

• The context is the mission linked to the vision and higher level missions

Linkage of the vision and missionKey Customer Requirements

Mission/Vision of the organization that your unit is a

part of

Mission/Vision of Your organization

1.Differences leads to harmony but only if they have a common vision, mission, and values

2.Without a common vision, mission, and values, differences leads to chaos.

3.Need to create a climate for listening

Stephen R. Covey

Process for Effective Decision Making(MDDB)

1. Mission: Aligned to your and higher level Mission/Vision/Customer requirements (this is the “Why”)

2. Data: Get everyone the same pertinent, unbiased, balanced facts and data

3. Design: Use the mission/vision/data to design the best way to accomplish the mission/vision consistent with higher level missions/visions/ customer requirements and value alignment

Criteria for Effective Design of the Solution(has to accomplish all)

Effective

Buy-In/Commitment

Efficient

Mission• Vision• Values• Key Customer

Requirements

Sustainable

Process for Effective Decision Making(MDDB)

1. Mission: Align to your and higher level Mission/Vision/Customer requirements (this is the “Why”)

2. Data: Get everyone the same pertinent, unbiased, balanced facts and data

3. Design: Use the mission/vision/data to design the best way including value alignment

4. Buy-in and commitment: needed to create value and sustain gain

Key to Buy-In and Commitment to Effective Solutions

Gain agreement by: • doing what is best for the higher

mission/vision/purpose (one that unites a variety of views)

• Sharing all the facts and data that related to the decision (not just the facts supportive of your view)

• Take the time for communication and dialogue; listen for changes make it work

Key to Buy-In and Commitment to Effective Solutions

Assess and adjust against key measures of requirements which reflect mission/vision/key customer requirements

Case Study: Pal’s Sudden Service

Improved TrainingPal’s Sudden Service: Pal Barger; Thom CrosbyTaught by: Pal’s Business Excellence Institute

1. Mission/Vision 2. Data3. Design to mission using data4. Buy-in and commitment

1. Pal’s Sudden Service Mission

Delight customers in a way that creates loyalty

© 2012 by David J. McClaskey. All Rights Reserved.

© 2012 by David J. McClaskey. All Rights Reserved.

1. Pal’s Vision

To be the preferred Quick Service Restaurant in our market

(largest market share)

© 2012 by David J. McClaskey. All Rights Reserved.

1. Pal’s Key Customer Requirements

• Quality (prefer the taste of the food)

• Accuracy

• Hospitality

• Speed

• Cleanliness

• Value

1. Linkage and Alignment

Vision

Mission Key Customer Requirements

Values

Measures

© 2012 by David J. McClaskey. All Rights Reserved.

© 2012 by David J. McClaskey. All Rights Reserved.

Pal’s Sudden Service striving for but not getting:

• 100% right orders every time• 0% waste• 100% repeat business

Others Restaurants:• 90% right good enough• Average waste• Average Repeat business

2. Data

Training Standard

When fully trained you will have the habit of meeting 100% of the standards; 100% of the time; at 100% production volume. (Triple 100)

3. DesignPosition Observation Checklist

Used to confirm that you have the habit of doing the job skills for a given position 100% to standard, 100% of the time at full production pace

Provides for opportunity for more intensive feedback, refinement, and coaching

4. Buy-in and Commitment Was piloted in one store and one job;

demonstrated it worked with facts and data Piloted in 3 stores one job; demonstrated it

worked with facts and data; most/all Owner-Operators voted to make the standard

Spread to all stores for one job; demonstrated it worked with facts and data

Standard for all routine jobs for all stores; demonstrated it worked with facts and data

Been in place for over 10 years (Sustained and effective)

4. Position Observation Checklist

Effect Has Been Improved: Product Consistency Product Accuracy Training Verification

AND’s not OR’s

4 times faster AND 1/10 the error rate AND Great service AND Half the Industry Turnover AND Have the best health scores ANDHigh Profitability

© 2012 by David J. McClaskey. All Rights Reserved.

Pal’s Sudden Service

“One of the Best Managed Companies in the Country”

First of Only Two Restaurant to Win Malcolm Baldrige National Quality Award

© 2012 by David J. McClaskey. All Rights Reserved.

Suggested Revision to U.S. Healthcare SystemArchimedes Movement/ We Can Do Better

John Kitzhaber, M.D., Governor of State of Oregon from 1995 to 2003; 2010 - current

1. Mission 2. Data3. Design to mission using data4. Buy-in and commitment

Suggested Revision to U.S. Healthcare System

1. Missiona. Old mission: Determine who is going to pay for

the ever increasing cost of acute healthcareb. New Mission: Get the best population health for

the public money spent while being fair and equitable (capable with the countries values)

Suggested Revision to U.S. Healthcare System2. Data

Current system is: 1. unsustainable financially (Baby-boomers full medical

liability is estimated to be over $60 trillion); 2. does not stress prevention or health but instead stresses

acute care and infectious disease care 3. leaves increasing number of people uninsured4. it is unclear who pays for the uninsured who can not pay5. was not designed as a holistic system but is a patchwork of

4 or more major laws and many minor ones 6. is funded mainly by the workforce for people over 657. 10% of people required 70% of government healthcare

dollars spent8. Debate focuses on who will pay for it (mostly acute care)

Suggested Revision to U.S. Healthcare System3. Design: Use the mission/vision/data to design the best way

including value alignment (notice these are AND’s and not OR’s)

Suggested health system will have the Triple Aim, which guides our strategies and areas of policy focus. Three objectives must be approached simultaneously in order to sustainably transform the health system:

1. improved health of a defined population;2. reduced (or contained) per capita costs; and3. an improved experience of care for the users of the

systema. Outcomesb. Safetyc. Satisfaction

Suggested Revision to U.S. Healthcare System3. Design: Use the mission/vision/data to design the best way

including value alignment

1. Little to no cost sharing for services that are highly effective and rank high in terms of population health

2. As services are less highly effective, then government pays less of % until 100% covered by patient

3. Maintain costs to be financially sustainable4. Do not spend more on healthcare, allocated public money to best

value related to health; not health care

Suggested Revision to U.S. Healthcare System4. Buy-in and commitment: needed to create value and

sustain gain

a. Piloting in Oregon as modification for Medicare and Medicaid and use facts and data to assess

b. Having lots of open 2-way conversations for many years using many communication mechanisms and an open process with a lot of input as to what benefits to cover with money available

c. Setting up national group (Archimedes Movement/ We Can Do Better) whose sole purpose is to share facts about the healthcare system and discuss best remedies leading to buy-in and action

Process for Effective Decision Making (MDDB)

1. Mission 2. Data3. Design to best accomplish the mission/

vision using data4. Buy-in and commitment

M/V/V Data Design Buy in/Commitment

MDDB

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