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Azure Lamb

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Hi, and welcome to Be The Flagship with our podcast host, Jeff Parsons.

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This is where we tackle the day-to-day talent management challenges you face, particularly

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in hospice and small healthcare organizations.

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And now over to our host.

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Take it away, Jeff.

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Hello, happy new year and welcome to Be The Flagship.

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I'm your podcast host, Jeff Parsons.

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I hope you had a great holiday season and you're ready to get 2024 off to a great start.

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I know I am.

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So I've dedicated all of the episodes in January to topics related to process improvement and

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healthcare.

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So I hope we brought a notepad and a pen because you're really going to want to take notes.

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And we're starting off with an exceptional guest speaker.

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So let's take a quick break and I'll be back with the introduction.

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Is your team in need of alignment?

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Do you need to develop your team through a team building event?

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If so, contact a team building expert today.

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Contact Jeff at 1-800-530-4189.

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Extension 101.

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And take your team to the next level.

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Okay.

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Let's talk about our guest speaker.

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And his name is Terry Norris, MBA and a Lean Certified Master Black Belt.

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He is a full-time Lean Consultant, Speaker and author of the book, How to Make Lean Work

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in Your Hospital.

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He has trained over 1,800 hospital leaders and 150 plus hospitals on Lean concepts, principles

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and specifically on how to lead a Lean transformation.

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As a consultant, he's helped multiple hospitals develop a Lean strategic implementation plan.

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He's led dozens of frontline rapid improvement events in all major hospital departments,

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saving millions of dollars through efficiencies and significantly increasing revenue through

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new strategic options.

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Terry's Lean experience is diverse and extensive.

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He's provided Lean consulting services for the federal government, the military and multiple

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industries.

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Some of these industries include manufacturing, healthcare, pharmaceuticals, airlines, construction,

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public utilities, professional services and cellular services.

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Terry also served in the US Air Force for 25 plus years.

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Thank you for your service, Terry.

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In his last role, he was the Lean leader for a complex organization with 5,500 people at

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five locations in four European countries.

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Terry established the organization's Lean structure and developed a strategic and tactical

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plan that delivered 55 major improvement projects, saving millions of dollars through direct

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savings and cost avoidance.

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Terry has also taught graduate and undergraduate courses in Lean deployment, strategic management

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leadership, operations management and project management for 18 years.

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So again, we're privileged and honored to have with us today, Terry Norris.

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So Terry, thank you for joining us today.

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For sure.

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Thanks for the opportunity.

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So this episode is an introduction to Lean in healthcare.

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So let's just start with Lean itself, Terry.

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So can you briefly tell us the origins of Lean, where it came from?

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Yes, and I will give you just that, a brief overview of it.

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Because it's quite detailed and it goes back for centuries, the little nuances and the

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tools and things like that.

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But Toyota originated or Toyota, Lean originated with Toyota from the Toyota production system.

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And that's really the origin of Lean as we know it today.

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You can say Toyota production system or Lean and you're essentially saying the same thing.

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There's been a few minor changes in America, especially with the Lean compared to that,

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but it's very, very close.

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It's again, almost the same.

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Okay.

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So again, with Toyota, so it sounds like a manufacturing concept.

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So can you define Lean healthcare?

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Yes, and I will say too, it definitely was a manufacturing concept.

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It was used there and the ideas and the concepts came from there.

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But the principles and the ability to solve problems and to make things better and all

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that, that's very universal.

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And I'd like to preface the definition of healthcare too by saying it this way.

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When I got into Lean kind of full time, especially when I was on my own as an independent Lean

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consultant and I'm talking to people about it, when I give the standard definition of

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Lean, talking about a management system to eliminate waste and all that, most people

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would, I could almost literally see them starting to yawn.

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So I realized early on that in order for people to understand really what Lean should be,

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I created a different description.

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So anyways, this is the description that I came up with to help people understand Lean

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healthcare and really Lean in general.

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But it goes like this, Lean is a function of leadership, a secret weapon that will significantly

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improve patient care and give your hospital an unfair competitive advantage.

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Lean healthcare is a system-wide strategy for achieving excellence.

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And then that's really the big part I want leadership to understand.

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And then I go on with a couple of bullets or three bullets by creating value from the

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customer's perspective, by creating a culture of continuous performance improvement and

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working to eliminate all waste of resources and time, by creating high quality stable

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processes and emphasizing respect for people throughout the organization.

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So that definition is really more of a description, although it includes what you would generally

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hear from the definition.

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But it helps people see that it's much bigger than just tools and eliminating waste, which

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is not really clear to a lot of people anyway when you first say that.

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So hopefully it helps people understand what you're getting into when you say you want

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to get into Lean healthcare.

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Okay.

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Yeah, I mean, I'm aware of healthcare professionals who have attended Lean in healthcare certification

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workshops.

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And one of their frustrations is that when they walk away, they're still in their mind

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is not that link in terms of knowledge versus application.

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So hopefully we can address that as we have our discussion.

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So let's get into, I mean, Lean has numbers, right?

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Two Lean pillars, five principles of Lean, eight types of waste.

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So let's start with the two Lean pillars.

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What are they?

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The two Lean pillars are continuous improvement and respect for people.

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And this is from the Toyota Way model house.

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And within those two pillars, when I do Lean training, I tell folks, I say, listen, you

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know, I realize that some of you guys are never going to become Lean zealots, but there

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are things that you're going to listen to, you're going to hear, you're going to learn

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that can help you no matter what you ever do.

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And this is, these are a couple of those.

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So the idea of continuous improvement, when I think of that and I think of the fifth principle

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of Lean perfection, which we may get to, they're really interconnected.

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And so to say continuous improvement, just one, the idea of the words kind of give you

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what the idea is to continuously make things better and continue to do so over time.

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But unless that becomes part of your culture and the mindset of the people that work there,

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it's not, it's probably not going to happen.

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And that's more the general idea of continuous improvement is changing the culture and having

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a mindset where people think that way.

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So the second pillar is respect for people.

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And with that, it can make all the difference in the world with the first pillar, that the

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idea of changing the culture.

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But when you think of respect for people, people generally think of what's most common,

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that you treat people like you want to be treated, that you're kind, that you ask for

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people's opinion.

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And all of that is true.

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And things like schedule, work-life balance should all be taken into consideration.

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But with Lean, the idea of respect for people is a bit different.

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The idea of, it's more like, the best way I can describe it is think back in your life

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when somebody, whether it's a parent or coach or music teacher or professor, somebody, they

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pushed you to perform better than you are currently performing.

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They didn't allow the mediocre or even just the normal good.

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They pushed you.

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Those are the people that we generally think about, that we respect, that we admire, that

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they brought us along, that helped us become who we are now.

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And that's more the idea of respect for people.

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So when you have a culture where you're pushing people, you're challenging people, you're

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pushing in a good way, but you're challenging them to become better and better and better,

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those are, that's the type of organization, the culture with the continuous improvement

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and respect for people that can really make all the difference in the world.

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Okay.

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That's interesting.

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And it's certainly, when you describe it in that manner, it's certainly universal to all

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types of businesses and industries and organizations.

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It's a mindset and it's a cultural phenomenon.

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Yes.

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Absolutely true.

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Most of the things that we will talk about, they work in the same way.

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They would be applicable across industry.

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So let's talk about the five principles of lean, Terry.

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Okay.

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With a quick summary, the five principles are value, value stream, flow, full, and perfection.

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And I'll talk just a little bit about each.

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So for me, value and value stream are easier to explain together.

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But the idea of value is what's considered value from the perspective of the customer.

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And we all think that sort of, you know, intuitively, well, that's kind of a norm.

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However, when you look at it from a lean perspective, we go just a little bit deeper.

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The idea of lean and the value, it's an emphatic about what's the customer understanding and

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what the customer wants.

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And then the value streams are all the steps in the process.

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And because of that, it forces us, even if we have 150 steps, we look at each one and

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say, does that add value?

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Does that add value all the way through?

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And then we have a much better picture of what adds value from the customer's perspective.

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So value stream is simply all the steps in the process.

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And the third principle is flow.

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And the idea that that value flows perfectly without stop, without rework, it just flows

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nicely.

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And a matter of fact, all the tools that we use and everything that we do generally is

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to help things flow, help processes flow by eliminating waste and all of that.

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Then you have pull, which is probably one of the least understood, I would suppose,

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especially outside of manufacturing.

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But I'll give you a quick healthcare example.

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And I will try to not get into the great level of details, but this actually happened and

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the story isn't exaggerated to make a point.

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But I was doing observations and surgery one morning, had a mid-size hospital.

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And at eight o'clock in the morning, all the people that were having surgeries for the

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whole day were already checked in.

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And I asked the registration director there, the patient access director, I said, so where's

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everybody at?

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You know, and they were, they're like, they've all been checked in and the individual was

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serious.

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So I said, okay.

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And even if they had a surgeon at 2.30, like, yes.

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I went to the pre-op area and of course there was a lot of people there.

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You know, I saw, I asked the people that worked there, I said, so what does your patients

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think of this?

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You know, and they were very nice people.

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They're like, just smile and said, they hate it, you know, especially the one that have

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later surgeries.

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And then I went to the holding area, which where they repeated the same thing that happened

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in pre-op and it was near surgery on another floor.

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And there was a lot of people there, a lot of people there, people that were going to

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be having surgery several hours later.

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So there's much more to that story.

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But the idea is that they, they pushed people through the system.

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Registration wasn't ready to have all that, that many people come in at 5.30 or six in

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the morning.

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Pre-op wasn't ready to handle that many people in surgery.

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It definitely wasn't.

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So they pushed them through the system.

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So if it was pulled, they would have scheduled the surgeries an hour and a half or whatever

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the workup time was prior to surgery throughout the day.

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Have people come in, do pre-op and go straight into surgery.

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Straight into surgery throughout the day.

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And that's more the idea of pull.

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And then the last one is perfection that I've hit on a little bit already.

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And that's the idea where your people, they start, they start thinking that idea of continuous

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improvement and they're trained, they're taught, they understand how to do it and they're rewarded

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for doing it.

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And they're always looking and thinking that way.

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How can I make something better?

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And the technical definition is, you know, to continuously work, to eliminate all waste

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of resources and time.

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And that is correct.

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But if you can't get that in the minds of the people, they won't go very far.

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So in summary, it's value, value stream, flow, pull and perfection.

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Thank you, Terry.

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And that's a, that's a great example, by the way.

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So you know, lean really focuses on waste elimination.

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That's my understanding, at least correct me if I'm wrong.

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So can you walk us through the various types of waste?

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Yes.

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And it's funny.

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I feel like lean, one of the most well-known things, I suppose, even if you just take a

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course on lean or whatever, you're going to say, well, lean is about eliminating waste.

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Which is true, but I feel like waste gets all of the notoriety when it's really flow.

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You know, why do we even bother eliminating waste and all that stuff?

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It's because we want things to flow.

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Victoria came up with something they refer to as seven deadly waste.

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And one of the things that made them so successful is because they relentlessly go after these

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seven deadly waste.

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Now over time, there has been one added and I'll mention that when I get to that.

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But of the eight types of waste are emotion, transportation, weighting, defects, inventory,

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and it's really excess inventory, overproduction, over-processing.

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And then the eighth one is underutilization of your staff, of your folks.

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And I can give you just one or two examples that ease in a healthcare environment, like

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for defects, it could be incorrect or missing information on forms, repeat visits, things

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like anything that goes wrong.

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Defects is probably the easiest one to explain.

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For weighting, okay, I'll take it back.

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Weighting is the easiest one.

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We've all done that in all aspects of our life.

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But weighting for results, weighting to see a doctor, weighting for transportation.

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And inventory, again, excess inventory having more than what you need and there's a lot

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can be said about that, but I'll leave it at that.

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Overproduction is a little bit less understood, but it's really doing more than you're required

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to do and doing it sooner than required to do.

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And that one can be confusing, especially in a competitive environment.

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So don't you want us to do more?

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And the answer is we want to give the customer more than they expect.

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Yes, but do we want to do more in our processes?

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No.

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For example, mixing 10 doses of medication when you only need seven, making multiple

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copies of forms that are rarely used.

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That's overproduction.

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Overprocessing is doing more to something than required.

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So let's say you need three signatures for something, but you really only need two, but

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you have to get three.

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That would be overprocessing.

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Multiple reviews, approval, things like that.

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Transportation is moving things.

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Moving things are people unnecessarily so excessively doing more than required.

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Moving patients, specimens, supplies, equipment, long distances, multiple bed assignments,

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moving patients, things like that.

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Motion is moving yourself, basically searching for patients, looking for supplies, reaching

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across things in an unsafe way.

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It's movement.

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It's human movement.

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And the underutilization of people is the one that's been added over time.

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When Toyota was asked, well, why don't you include that, it was more like, well, that's

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a given.

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We're going to do that.

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We're going to utilize our people.

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So they think just a little bit differently.

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So if you have people and there's no cross-training, there's no capturing best practices, no considering

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suggestions, ideas, things like that, that would be considered some examples of underutilizing

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people.

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So let's talk about the standard work.

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You refer to it as the heart of lane, so can you tell us more about that?

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Yes.

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So for standard work, in order to be lean at all or to even pretend to be lean, you

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have to have standard work.

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And I have over the years became, it's became one of my, I don't know, you hate to say passion,

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but it's one of the things that I understand that if you don't do it, you're not going

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to be able to be lean.

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You're not going to have the highest level of consistent quality and things like that.

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So the idea of standard work is simply everyone doing the same job the best known way.

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And then when somebody makes it better, everybody makes an adjustment and makes it better as

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well.

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And that's really the most basic definition, but it's the one that I found that people

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understand the most.

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And it's funny too, as we just talk about standard work, people sometimes resist it.

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They're like, you know, I'm not a robot.

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You know, I have, you know, I'm a human, so I make different decisions and things like

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that.

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I don't want to do it this way.

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And I understand that.

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And honestly, I felt that way before in my lifetime, early in my life, in my career.

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But when you think about it from a broader perspective, you want people to do things

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the same way, right?

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It reduces variation.

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So if you show up for an appointment today, it doesn't matter who's working, you're going

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to get the same level of service.

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But if you don't have standard work, you're just hoping and praying that this other person's

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working and not that one, because you know, they do things quite differently.

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So we want people to do things standardized.

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It makes it easier to train.

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It makes you, it helps your quality go up, your safety is much better.

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So standard work is a big, big deal when it comes to lean.

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Gotcha.

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So, Terry, let's talk about how lean applies to small healthcare.

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When I say small healthcare, I'm referring to, you know, hospice and home health and,

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you know, smaller hospitals and things of that nature.

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So talk to me about how it applies to small healthcare.

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In general, it applies the same in general.

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And then we can talk about specifics as we think about what are some of the issues and

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problems that people in small healthcare come up against, especially when you think of one

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person going into someone's home or in the case of hospice or home healthcare, either

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one.

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So it helps people, you know, go back to those most famous words, eliminates waste in their

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processes and things like that.

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But again, that generally doesn't mean anything to people unless you look at what the process

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is and what does that really mean?

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Can I spend less time doing something that I do now, but actually make it safer and higher

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level of quality?

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So that elimination of waste, that looking at your processes like that is, you know,

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is a way.

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Again, very general.

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Communication is improved in a lean organization.

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So whether it's a small or large, how you communicate and how you communicate results

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and things like that are looked at and that is improved.

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Safety and quality, as I mentioned, is a big part of the improvement because of the standardization.

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So I've worked in organizations where, and I've surveyed organizations where they've

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had let's say 15 people go out in the home care.

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They have 15 different nurses goes out.

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And I'm pretty sure that the 15 different nurses did things 15 different ways, you know,

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because that's just sort of human nature anyway.

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There was no emphasis on standard work.

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But if you train people in a certain way, and of course there were certain protocols

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for each, but that basic type of training with all of the different nurses, that means

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that that particular company would deliver the same level of care, ideally, throughout,

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you know, with all the different people, 15 different folks, no matter who went out.

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So standard work is pretty important in a small or large organization.

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And when you start looking at things like metrics and a couple of things that say, okay,

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did we do good today?

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How do we know if we did good?

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We look at those metrics and it helps us, it really starts uncovering problems and things

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that we don't really talk about much.

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We just kind of live with or do workarounds or whatever we need to do.

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And when you can eliminate some of the things that waste time, it helps the nurses in particular,

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people that are dealing with people, spend more time with the people, whether a nurse

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or a staff.

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It helps eliminate those, I don't know, things that frustrate throughout the day that just,

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I'll share this, one of the things I've done survey work and some of it, you ask questions

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like something that happens poorly.

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How often does that happen?

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People will say, I don't know, I never really tracked it.

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What does it happen weekly?

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Oh yeah, yeah.

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Three or four times?

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Yes, yes, for sure.

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So you have something happen three or four times a week at least, every week, and it's

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never dealt with.

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In a lean environment, you would look at that and you'd say, that's a problem.

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You would identify it and then you would take some action to make it better, make it go

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away, make an improvement.

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So you're not dealing with the same thing.

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So just like in a big organization, you can use the same ideas, the concepts, the principles

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to make things better, smoother, safer, higher quality for everybody that's involved.

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Thank you, Terry.

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So let's wrap up our discussion today, Terry, and we'll pick it back up next week on why

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lean fails and what we can do about it in healthcare.

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Let's go to a commercial, then let's come back.

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I'll end this episode with a quote and we'll go from there.

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Do you need to schedule a strategic planning session, but don't want it to waste your team's

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time?

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00:23:26,520 --> 00:23:30,760
If so, you need an expert facilitator who knows how to make the most of your session

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and give you the deliverables you need.

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Contact Jeff today at 1-800-530-4189.

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Extension 101.

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Get your new year off to a great start with a great strategic planning session.

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Okay.

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I hope you enjoyed this episode and I would like to end it with a quote from a legendary

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NFL coach by the name of Vince Lombardi.

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The quote is, perfection is not attainable, but if we chase perfection, we can catch excellence.

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And again, that's by the great legendary Vince Lombardi.

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I hope that gives you some encouragement to move forward with your process improvement

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initiatives.

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I look forward to you joining us again next week when we continue our discussion with

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Terry on lean and healthcare.

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Goodbye, everyone.

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Take care.

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Thank you for listening to this episode of Be the Flagship with Jeff Parsons.

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We hope you enjoyed it.

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If you did like it, please subscribe and share with others.

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Until next time, take the step to become the flagship in your marketplace.

