June, 2008   
Stampede! A monthly heads-up from your pals at the Maverick Institute.
The Maverick Institute is a think tank and consulting firm for operations and execution excellence.
Contact us today to see how we can help your organization be faster, better and more profitable.


Time for a Learning Revolution

Okay. Sit down. Because I’m about to tell you something that sounds crazy.

Here it is: Knowledge transfer today is like building Chevrolets 20 years ago.

In 1988 I worked at a GM assembly plant. The “car math” back then was this: If you wanted to get 100 good cars to market, you had to--first--build the 100 cars.

Forty of these cars didn’t work when they rolled off the line, so dozens of mechanics tore them apart to get them to run. Then, after these 100 cars sold, 20 failed within 90 days and had to be repaired under warrantee. So, in the end, to get 100 good cars you had to build and repair 160 cars. That’s AT LEAST 60% inefficient.


Here’s the “learning math” I see at organizations around the world today. If a company teaches 100 hours of content, the trainee “doesn’t get” 40 hours. The pace was too fast or too slow. Too much was taught at one time, the examples were confusing, etc. This 40 hours must be taught again, usually on the job. Then, over time, the trainee forgets 20 hours of material. Again, this material must be retaught.

You get the point: These learning numbers are bad.

In today’s auto plants, all the cars work when they roll off the line, and the standard warranty is 5 years/50,000 miles. What happened? Better design. Automation. Six Sigma. LEAN. Building cars became a well-understood process that reliably delivered results.

In 1988, you could run an auto plant poorly and still make oodles of money. Not in 2008. High labor and equipment costs, rapid technological changes, and cut-throat competition eat poor performers alive.

We Don't Have the Luxury to Re-Teach

Ten years ago, we could live with inefficient training. So what if people retained less than 20% of what they were taught after 3 weeks (that’s a real number by the way). We had the time and resources to teach them again. And again. And again.

NOT TODAY. Squeezed headcounts, tight deadlines, rapid change and global business make ineffective knowledge transfer a serious problem. Throw in the imminent retirement of the Baby Boomers and all the M&As going on and we’re way past serious and into ‘yowza!’ territory.

In today’s fast-paced, far-flung economy, everything depends on knowledge transfer. If you want your company to compete, you must make knowledge transfer a well-understood process that reliably delivers results.

I feel so strongly about this that I’m going to devote the next several issues of the Stampede! to new and exciting ways to do knowledge transfer. Come along with me and see how you can improve your own company’s ‘learning math.’

Let’s ride!


Todd Hudson
Head Maverick
Ph: 303.819.6662
Todd@MaverickInstitute.com


What's New

TODD IN OREGON IN JULY!
Todd will be riding into Oregon for the entire month of July. Join us for one of these Maverick events or call Todd for lunch or coffee.

July 10
5:30 pm - 8:00 pm
Cornelius Pass Roadhouse
4045 NW Cornelius Pass Rd.
Hillsboro, OR

July 17
5:30 am - 8 pm
Laurelwood Pub
5115 NE Sandy Blvd
Portland, OR

...............

LEAN LEARNING
Join us for a brown bag briefing and learn how you can achieve whole new levels of knowledge transfer at your organization.
July 22
Noon to 1:30 pm
Portland, Oregon
(location to be announced)
Register

...............

ACHIEVE BIG COST REDUCTIONS
WITH DESIGN FOR MANUFACTURING

Learn how you can save BIG
on operations costs with DFM
in this two-hour
executive briefing.
Learn More
Register

July 8
8:30 am - 10:30 am
Portland, OR



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